THE RED HOOK AND NORTH RIVER FACILITIES JOINTLY DISCHARGE ABOUT 200 MILLION GALLONS PER DAY OF RAW SEWAGE INTO THE HUDSON RIVER AND THE EAST RIVER, IN VIOLATION OF THEIR NPDES PERMITS. EPA COMMENCED AN ENFORCEMENT ACTION IN JANUARY OF 1977, WHICH REQUIRED THE CITY TO CONSTRUCT SECONDARY TREATMENT FACILITIES AT RED HOOK BY 12/1/84, AND AT NORTH RIVER BY 8/1/86. WHEN THE CITY BECAME UNABLE TO MEET THIS SCHEDULE, EPA, THE CITY, AND THE STATE OF NY NEGOTIATED AN AMENDMENT TO THE CONSENT DECREE WHICH: 1. EXTENDED THE DATES FOR FINAL COMPLETION TO 9/1/87 AND 3/1/88. 2. PROVIDED FOR STIPULATED PENALTIES FOR VIOLATIONS OF THE REVISED SCHEDULES. 3. APPOINTED A SPECIAL MASTER TO ASSIST THE COURT IN MONITORING COMPLIANCE WITH THE AMENDED DECREE. THE CITY COMPLIED WITH EACH MILESTONE IN THE REVISED SCHEDULE UNTIL 2/82 WHEN THE CITY SUBMITTED A REPORT TO THE SPECIAL MASTER STATING THAT SUBSTANTIAL REDUCTIONS IN THE AVAILABLE FEDERAL FUNDING MADE IT IMPOSSIBLE FOR THE CITY TO MEET THE CONSENT DECREE SCHEDULE. THE CITY CON- TENDED THAT THE UNAVAILABILITY OF FEDERAL FUNDS CONSTITUTED 'CIRCUMSTANCES BEYOND THE CITY'S REASONABLE CONTROL' SUFFICIENT TO REQUIRE AN EXTENSION OF THE CONSTRUCTION SCHEDULES ACCORDING TO PARAGRAPH VIII OF THE CONSENT DECREE, AND TO RELIEVE IT FROM PAYIN