Supreme Court Settles Riverbed Battle

Environmental Litigation

The Supreme Court recently issued its opinion in the closely watched case of PPL Montana, LLC v. State of Montana, 565 U.S. __ (2012), unanimously reversing and remanding a controversial Montana State Supreme Court decision granting Montana ownership of riverbeds underlying ten hydroelectric facilities on three of the state’s rivers.  The Supreme Court’s ruling relieved PPL of its obligation to pay the state of Montana $41 million in back rent for use of the riverbeds, and likely quelled any fears in the hydropower industry that similar ownership theories would be advanced by other states seeking to fill empty coffers with millions of dollars in back rental payments.  The Supreme Court’s opinion, while providing clarity on the proper application of the federal navigability-for-title test, limits its reasoning on navigability to those instances in which property rights between the states and the federal government are in question, and is explicitly inapplicable to determinations of whether waters are “navigable” for purposes of federal regulatory programs.

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Settling Party Barred from Bringing a CERCLA Section 107(a) Claim

Contaminated Property

This week, in the case of Solutia, Inc. and Pharmacia Corp. v. McWane, Inc. (Solutia), the Eleventh Circuit held that a party that performs a cleanup in compliance with a consent decree has no right under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) section 107(a) to recover its cleanup costs.  This case represents a continuance of the courts’ clarification of when claims can be brought under CERCLA sections 107(a) and 113(f).  To understand the significance of this case, it is best to start by examining the United States Supreme Court cases that proceeded it, beginning with the Supreme Court’s decision in Cooper Indus., Inc. v. Aviall Servs., Inc., 543 U.S. 157 (2004).

In Cooper v. Aviall, the Supreme Court turned decades of CERCLA jurisprudence on its head.  Relying on the plain language of CERCLA section 113(f), the court held that a potentially responsible party (“PRP”) can only seek contribution under section 113(f) from other parties “during or following” a civil action under CERCLA section 106 or 107.  Therefore, a party that had not been sued and had not entered into a settlement could not seek contribution under CERCLA section 113(f).  The court did not address when a party could bring an action under section 107. 

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SHORT-CIRCUITING THE FAST-ACTING : 6 COUNTRIES START A PROGRAM TO CUT SHORT-LIVED CLIMATE CHANGE POLLUTANTS

Last week, the State Department announced the formation of the Climate and Clean Air Coalition to Reduce Short-Lived Climate Pollutants (Coalition).  In what many are calling a response to the extremely slow pace at which the international community is working to negotiate a global climate change treaty, the United States and five other countries are launching the program in an effort to reduce emissions of the most common short-lived, fast-acting climate change pollutants. 

Representatives from Canada, Bangladesh, Ghana, Mexico, and Sweden joined Hillary Clinton in ushering in the effort which will target emissions of methane, hydrofluorocarbons (HFCs) and black carbon, which are responsible for about one-third of the global warming problem.  These three pollutants stay in the atmosphere for just days or years, unlike carbon dioxide, which remains for about 100 years. 

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PERC-ED UP: EPA HAS RELEASED FINAL HEALTH ASSESSMENT

Contaminated Property

Okay, so it will probably come as no surprise to those readers that know anything about perc (also known as PCE, short for perchloroethylene, another name for tetrachloroethylene – whew!) that, when the U.S. Environmental Protection Agency (EPA) released it’s final health assessment for the chemical this week, EPA essentially concluded “yep, it’s still bad stuff.”  More specifically (and much more scientifically), the assessment characterized it as a “likely human carcinogen.”  In addition, the assessment cited non-cancer long-term health effects including harm to the nervous system, kidney, liver, immune and hematologic systems. 

Perc is best known for being the chemical solvent widely used in the dry-cleaning industry.  Discharges of perc (mainly from dry-cleaning facilities) have contributed to contamination at many properties.  According to EPA, hundreds of Superfund sites in the country have perc as a contaminant. 

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State Water Board May Soon Adopt the Low-Threat UST Case Closure Policy

Contaminated Property

Last week, the California State Water Resources Control Board (SWRCB) gave notice of public opportunity to comment on its proposed April adoption of the Water Quality Control Policy for Low-Threat Underground Storage Tank Case Closure (Low-Threat Closure Policy). This should come as welcome news for the thousands of underground storage tank (UST) sites in California because the Low-Threat Closure Policy will hopefully make it easier to obtain closure. 

The Low-Threat Closure Policy recognizes that many petroleum release cases pose a low-threat to human health and the environment. The policy’s purpose is to establish consistent California statewide case closure criteria for low-threat petroleum UST sites. To potentially qualify for closure, the site must satisfy eight general criteria (applicable to all sites), as well as media-specific criteria as it pertains to groundwater, vapor intrusion to indoor air and direct contact, and outdoor air exposure. Below is a brief description of each of these criteria.

The general criteria are as follows:

  • Site must be in a service area of a public water system:  The policy recognizes that while new water supply wells are unlikely to be installed in the shallow groundwater near former UST release sites, it is difficult to predict whether this will always be the case, particularly in rural areas that are undergoing new development. Therefore, the policy is limited to areas with available public drinking water supplies. Continue reading →

Ninth Circuit Invalidates EPA’s Approval of Valley’s 2004 One-Hour Ozone SIP Based On Failure to Address “Stale” Emissions Data

Environmental Litigation

Recently, Honorable Judge Ronald M. Gould, writing for a panel of the Ninth Circuit Court of Appeals, found the Environmental Protection Agency’s (“EPA”) 2010 approval of the San Joaquin Valley’s 2004 1-hour ozone National Ambient Air Quality Standard plan (“2004 SIP”) was arbitrary and capricious, citing EPA’s failure to adequately address the potential staleness of mobile source emissions data used to formulate the plan’s emissions inventory.  The court’s decision invalidates EPA’s approval of the plan and requires the agency to conduct its review process anew.  The case potentially signals EPA’s more stringent review of the accuracy and currency of emission inventories during its plan approval process. 

Following EPA’s approval of the 2004 SIP, Sierra Club and several environmental groups petitioned the Ninth Circuit Court Appeals to review EPA’s approval on the basis that mobile source data, current at the time the plan was submitted to EPA in 2004, was outdated and inaccurate by the time the plan, which was amended in 2006 and clarified in 2008, was approved in 2010.  During the six-year period between plan submission and approval, California had replaced the computer modeling tool it used to estimate mobile source emissions with the next generation of that modeling tool, which was better able to capture emissions from heavy-duty trucks.  Also during that time period, California had presented EPA with the Valley’s 2007 SIP for the 8-hour ozone standard (“2007 SIP”), which relied on data compiled through the use of the updated tool.  The court noted that a comparison of the emissions inventories in the 2004 and 2007 plans revealed apparent disparities in emissions estimates for nitrogen oxides (NOx), with the 2004 SIP potentially underpredicting total daily NOx emissions in the Valley.  In the court’s opinion, these disparities, which the court attributed to the state’s change in modeling tools, undermined the accuracy and currency of the 2004 SIP emission inventory data.

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READY, OFFSET, GO: A LOOK AT THE FINAL CAP-AND-TRADE REGULATION’S OFFSET PROGRAM

Climate Change

The time has finally come… California’s cap-and-trade regulation finally went into effect in January of 2012 (not without its litigation drama along the way – see here, here, here, here, and here for the full saga).  The crowning jewel of California’s AB 32, the regulation establishes an overall cap on greenhouse gas (GHG) emissions for all covered sources.  There are two “compliance instruments” contemplated as a part of the cap-and-trade regulation.  In other words, there are two different items that a covered facility may obtain to allow them to emit GHGs: (i) allowances, which are a particular facility’s tradable portion of the total GHGs permitted to be emitted under the overall cap, and (ii) offsets, which are projects that will reduce emissions outside of the cap.  This article will focus on the regulation’s offset program which is run by the California Air Resources Board (ARB).

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Greenhouse Gas Data Just a Click Away

Climate Change

Earlier this month, the United States Environmental Protection Agency (EPA) released for the first time comprehensive greenhouse gas (GHG) data through EPA’s GHG Reporting Program. The 2010 GHG data includes publicly accessible information from sources in nine industry groups that directly emit large quantities of GHGs or supply certain fossil fuels. 

The GHG Reporting Program came as result of EPA’s October 2009 issuance of the Mandatory Reporting of GHG Rule (74 FR 56260).  The rule requires certain large sources and suppliers of products that would emit GHGs if released or combusted to report their GHG data and other relevant information starting in 2010.  EPA’s online data publication tool allows the public to review the GHG data in multiple ways including by facility, industry, location or gas. 

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Green Building in Practice: A Success Story

Green Building

Greenberg Glusker client, Structure Home, in partnership with Green Builder Media and others, is well underway in its development of VISION House Los Angeles.  Among the first of its kind in the Los Angeles area, this single family residence is located in the Pacific Palisades community of Los Angeles.  The goal of this project is to raise awareness, educate and advocate green building within our community.  This project will be featured in an upcoming edition of Green Builder Magazine.

Not only will this project comply with the mandatory requirements of California Green Building Standards Code (as known as CALGreen), which went into effect as of January 1, 2011, this project will also comply with the Tier 1 discretionary measures and is also on track to accomplish LEED Certification, California ENERGY STAR Certification, and California Home Energy Efficiency Rating System (CHEERS) Verification, among other certifications and verifications.  For all of the talk in recent memory about the need to go “green” and preserve our natural resources from local citizens all the way to President Obama, Structure Home is actually making it happen.

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Cabazon Band of Mission Indians Agrees to Air Quality Rules

Air Quality

In a landmark agreement, the South Coast Air Quality Management District (SCAQMD) reached a “government-to-government” agreement with the Cabazon Band of Mission Indians to enforce some of the SCAQMD’s air quality regulations on tribal land. 

The SCAQMD is the air pollution control agency for all of Orange County and the urban portions of Los Angeles, Riverside and San Bernardino Counties, but does not have jurisdiction over tribal lands. Under the agreement announced yesterday, the tribe has voluntarily agreed to allow the SCAQMD inspectors to conduct air sampling, monitoring and inspection activities on the 640-acre Cabazon Resource Recovery Park industrial park near Mecca. It also requires facilities operating within the park, including Western Environmental Inc., to comply with applicable SCAQMD rules. The agreement will also allow the SCAQMD to enforce permits issued by the U.S. Environmental Protection Agency to facilities operating within the park.

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