The 9th U.S. Circuit Court of Appeals on Wednesday upheld the review. The court said the drafters of the development plan reasonably concluded that it would not have a significant effect on the lake's water given expected improvements in pollution management.
The ruling comes in a lawsuit by environmental groups that sought to block implementation of the plan adopted in 2012 by the Tahoe Regional Planning Agency. The plan generally restricts future development to areas that are already developed.
The Sierra Club and Friends of the West Shore said it would pose a threat to the lake's ecosystem. Earthjustice, a lawyer for the groups, said it did not immediately know whether it would appeal.
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