Under CERCLA, "Owner" Means Owner When Cleanup Costs Are Incurred, Not When Reimbursement Is Sought

California Dep't of Toxic Substances Control v. Hearthside Residential Corp., No. 09-55389 (9th Cir. July 22, 2010)

By Betsy McDaniel and Adam Bailey

On July 22, the Ninth Circuit Court of Appeals held that under the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA," commonly referred to as the "Superfund" law), the owner of a contaminated site when cleanup costs are incurred is the "current owner" for liability purposes. The decision will provide clarity to state agencies or other entities that engage in the remediation of contaminated lands. In the event that a landowner refuses to accept responsibility for cleanup, the entity that performed the cleanup can easily determine whom to sue for repayment.

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2nd Circuit Allows Public Nuisance Suit Against Greenhouse Gas Emitters

Connecticut v. American Electric Power Company Inc., ____F.3d ____, No. 05-5104 (2nd Cir. 2009)

By James Rusk

States and private plaintiffs may sue utility operators under the federal common law of nuisance to abate carbon dioxide ("CO2") emissions that contribute to global warming, the Second Circuit Court of Appeals held this month. Although the 139-page opinion appears to open a new front in the fight over climate change, its full import is uncertain. The court held only that plaintiffs had standing, that they had stated public nuisance claims under the federal common law and that those claims were justiceable. It did not reach the merits of plaintiffs' claims, and it expressly noted that those common law claims could yet be displaced by federal legislative or rulemaking action. With that in mind, the case could prove more significant as an additional impetus for national greenhouse gas regulation than as a tool for judicial control of emissions.

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U.S. Supreme Court Holds Superfund's Traditional Joint and Several Liability and Arranger Liability Have Their Limits: Bar May Be Lowered For Demonstrating Apportionment Liability

By Randolph C. Visser, Jeffrey W. Forrest, & Michael Hansen

On May 4, the U.S. Supreme Court handed down its 8 to 1 decision in the much anticipated case of Burlington Northern & Santa Fe Railway Co., et al v. United States et al. (556 U.S.___ (2009)), which challenged the traditional notion of joint and several liability under the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA" or "Superfund") and challenged a new, expansive notion of arranger liability under CERCLA. The Supreme Court overturned the Ninth Circuit Court of Appeals' broad interpretation of arranger liability and may have lowered the bar for how Potentially Responsible Parties ("PRPs") can demonstrate apportionment liability, therefore avoiding CERCLA's expansive joint and several liability scheme.

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California Budget Plan Will Delay Off-Road Diesel Emissions Regulations

By Kyndra Joy Casper

On February 19, 2009, California legislators ended a three-month-long stalemate and passed a budget designed to meet the $41 billion budget shortfall through 2010. A major provision in the bill package adopted as part of the proposed budget would delay the retrofitting of heavy diesel equipment, which would save the construction industry millions of dollars but hurt efforts to reduce harmful emissions.

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What You Need To Know About SF's Green Building Ordinance

By Misti Schmidt and Aaron Foxworthy

On August 4, 2008, San Francisco Mayor Gavin Newsom signed a new Green Building Ordinance (“Ordinance”) into law, amending the existing Building Code by inserting Chapter 13C. The goal of the Ordinance is to reduce the city’s carbon emissions to 20% below 1990 levels by 2012. The Ordinance aims to achieve that goal by phasing in more stringent building requirements over the next four years. The Ordinance provides that it will take effect 90 days from its adoption by the City (November 2, 2008), if the California Energy Commission (“CEC”) approves it by that time.[1]

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Loss of Power? AQMD rules Designed to Spur Development of Newer, Cleaner Electrical Power Plants Recently Vacated in LA Superior Court

By Olivier Theard

Summary

Two new rules promulgated by the South Coast Air Quality Management District (AQMD) that were designed to encourage development of newer, cleaner electric power plants by replacing older, more-polluting ones were recently vacated in a case pending in the Superior Court in Los Angeles.  The court decided that, in implementing the rules, the AQMD, which has broad jurisdiction to control air pollution in most of Southern California, violated the California Environmental Quality Act (CEQA) by failing to analyze the rules’ health and environmental impacts prior to their adoption.

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Ninth Circuit Says EPA Must Regulate Marine Discharges, Including Ballast Water

Northwest Environmental Advocates, et al. v. United States Environmental Protection Agency (July 23, 2008, 9th Cir. Case Nos. 03-5760, 06-17187, and 06-17188) __ F.3d ___

By Misty Calder

Plaintiffs Northwest Environmental Advocates, San Francisco Baykeepers, and The Ocean Conservancy (“plaintiffs”) challenged a regulation originally promulgated by the Environmental Protection Agency (“EPA”) in 1973 exempting certain marine discharges from the permitting scheme of sections 301(a) and 402 of the Clean Water Act (“CWA”).  That regulation, 40 C.F.R. § 122.3(a), provides that the following vessel discharges into the navigable waters of the United States do not require permits pursuant to the National Pollutant Discharge Elimination System (“NPDES”):  (1) discharge of effluent from properly functioning marine engines; (2) discharge of laundry, shower, and galley sink wastes from vessels; and (3) any other discharge incidental to the normal operation of a vessel, including the discharge of ballast water.  The Ninth Circuit Court of Appeal upheld the ruling of the District Court that the regulation exempting the discharges was invalid.

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EPA Releases Advance Notice Of Proposed Rulemaking Regarding Regulation Of Greenhouse Gas Emissions Under Clean Air Act

By Kyndra Casper and Olivier Theard

On July 11, 2008 the U.S. Environmental Protection Agency (EPA) released an Advance Notice of Proposed Rulemaking (ANPR) in response to the U.S. Supreme Court’s April 2007 decision in Massachusetts v. EPA, 549 U.S. 497 (2007).  In Massachusetts, the Court ruled that greenhouse gases (carbon dioxide, methane, nitrous oxide and hydrofluorocarbons) satisfy the Clean Air Act’s (CAA) definition of “air pollutant,” and thus can be regulated under the CAA if the EPA finds that greenhouse gas emissions constitute an “endangerment” to public health or welfare.

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Update On Proposed Draft Regulation To Reduce Emissions Of Diesel Particulate Matter, And Other Pollutants From In Use On Road Heavy Duty Diesel-Fueled Engines

By Kyndra Joy Casper

On July 10 the Air Resources Board (ARB) released information about its revised draft regulation that will require retrofits and engine replacements on diesel-powered trucks and buses traversing California roadways beginning in 2012.  In contrast to the January, 2008 proposal to have fleets replace trucks twice in a nine-year span, the revised proposal will heavily rely on retrofitting during the first two years and will thereafter require only one truck replacement over eleven years.  This revised proposal will preserve important public health benefits at a lower cost.

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Reducing Greenhouse Gas Emissions: California Air Resources Board Releases Draft AB 32 Scoping Plan

By Randolph C. Visser and Kyndra Joy Casper

The Global Warming Solutions Act of 2006 (AB 32) requires the California Air Resources Board (ARB) to prepare a Scoping Plan to achieve reductions in greenhouse gas (GHG) emissions in California.  The AB 32  Draft Scoping Plan contains the main strategies California will use to reduce the GHGs that cause climate change.  On June 26, 2008 the ARB presented the initial Draft Scoping Plan to the ARB Board for review.

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No Idling: California Air Resources Board Adopts New Off-Road Diesel Rule

By Olivier F. Theard and Kyndra Joy Casper

In an effort to reduce airborne diesel pollution, the California Air Resources Board has adopted a "no idling" rule for in-use off-road diesel-fueled vehicles, limiting idling for such vehicles to no more than 5 minutes.  The new rule will go into effect June 16, 2008.  This rule adds to a host of other off-road diesel-fueled vehicle regulations to reduce diesel particulate matter and criteria pollutant emissions.

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City of Los Angeles Adopts Green Building Ordinance on Earth Day

By James E. Pugh

On April 22, 2008, the City of Los Angeles passed Ordinance No. 179820 and thereby established a city-wide “Green Building Program.”  The program is modeled after the U.S. Green Building Council’s Leadership in Energy and Environmental Design (“LEED”) building standards.  The program addresses five key areas including: (1) site location; (2) water efficiency; (3) energy and atmosphere; (4) materials and resources; and (5) indoor environmental quality.  The new ordinance amends the Los Angeles Municipal Code (“LAMC”) by adding new Sections 16.10 and 16.11, which will likely have a considerable affect on the type of developments the City will approve.

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Corps And EPA Issue Important New Mitigation Rule

On April 10, 2008, the Army Corps of Engineers ("Corps") and the Environmental Protection Agency ("EPA") issued a final rule governing mitigation requirements for unavoidable impacts to wetlands and other waters of the United States under the section 404 program of the Clean Water Act.  70 Fed. Reg. 19594. This rule is a major change to the Section 404 program.  It was published with nearly 80 pages of preamble in the Federal Register, and the rules itself is more than 30 pages.  It will take some time for the Corps staff and the regulated community to learn the new rule.  The rule is sufficiently complex that it will be many years before the effect of the changes will be fully understood.

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Clash of the Titans

California Battles The United States Environmental Protection Agency Over the Right to Curb Greenhouse Gas Emissions From Vehicles

By Olivier Theard

December and January were pivotal months in the continuing struggle over implementation of California's stringent automobile greenhouse gas regulations.  California has tried for some time to impose its limits, adopted as regulations under AB 1493, which would require a 30% reduction in vehicle emissions by 2016, with phased cuts starting in model year 2009.  California's push to cut vehicle emissions is a major component of its mandate under the Global Warming Solutions Act, which requires a reduction in greenhouse gas emissions to 1990 levels by 2020.  However, recent developments at the federal level have undermined California's efforts.  After a whirlwind of court decisions and passage of a federal energy bill, the EPA denied California a waiver under the Clean Air Act that would allow California to implement its laws.  California has sued to reverse the decision.

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California Sues U.S. Environmental Protection Agency, Seeks Permission To Enforce Own Standards Regulating Greenhouse Gas Emissions

By Olivier F. Theard and Maria J. Gangemi

I. Introduction

On November 5, California filed suit for an injunction to compel EPA to rule on California's requested waiver from the Clean Air Act's prohibitions of states enforcing their own greenhouse gas emissions standards for automobiles.  Several other states have intervened, seeking to adopt California's standards as well.

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THANK YOU FOR READING THE REAL ESTATE AND CONSTRUCTION LAW BLOG

Thanks also to LexisNexis for listing this blog as one of its "Top Blogs" on the topic of environmental law and global climate change.

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California Air Resources Board Issues Proposed Regulations to Require Facilities to Report Greenhouse Gas Emissions Under the Global Warming Solutions Act

By Randolph Visser and Olivier Theard

I. Businesses in Major Economic Sectors Are Affected by Reporting Requirements

A. Summary of the Proposed Regulations

Pursuant to the Global Warming Solutions Act (which requires that California reduce greenhouse gas emissions to 1990 levels by 2020), the California Air Resources Board (ARB) has issued draft final regulations that will require California businesses across most major economic sectors to account for and report on their greenhouse gas emissions.  Emissions reporting is the first of many significant provisions under the Act that will affect the operation of California businesses, especially those in industries that emit high levels of greenhouse gases.  ARB estimates that the sectors which will be required to report emit 94% of the total greenhouse gases produced in California from industrial and commercial stationary sources.

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California Air Resources Board Proposes Additional Early Action Measures Pursuant to the Global Warming Solutions Act (AB 32)

By Randolph C. Visser and Olivier F. Theard

Pursuant to AB 32 (the Global Warming Solutions Act) the California Air Resources Board (CARB) recently announced that it would go beyond the minimum statutory requirements and has proposed additional “early action measures” designed to help California achieve its statutory goal of reducing greenhouse gas emissions to 1990 levels by the year 2020.  If adopted, the new measures will significantly increase the current list of early action measures which were approved by CARB in June 2007.

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Summary of Proposed Draft Regulation to Reduce Emissions of Diesel Particulate Matter, and Other Pollutants From In-Use On-Road Heavy-Duty Diesel-Fueled Engines

By Randolph C. Visser and Olivier F. Theard

Introduction: The California Air Resources Board (ARB) has proposed a new regulation aimed at reducing emissions of diesel particulate matter (PM), oxides of nitrogen and greenhouse gases from in-use, on-road diesel-fueled vehicles.

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Update to June 15, 2007 Blog: The California Air Resources Board Passes New Regulations Limiting Off-Road Diesel Engine Emissions (13 CCR SEC. 2449)

By Randolph C. Visser and Olivier F. Theard

On July 27, the California Air Resources Board (ARB) passed new regulations intended to reduce emissions of particulate matter (PM) and nitrous oxide (NOx) from off-road diesel engines.  The regulations require businesses to retrofit or "turn over" their fleets over time.  A summary of these regulations was posted on June 15.  The final version of the regulations contains a few noteworthy revisions, summarized below:

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Private Parties Under CERCLA May Sue Potentially Responsible Parties for Cost Recovery Even if They Are Barred From Suing For Contribution

United States v. Atlantic Research Corporation (2007) __ U.S. ___ [http://www.supremecourtus.gov/opinions/06pdf/06-562.pdf].

By Randy Visser and Olivier Theard

In a boon to private parties who undertake to voluntarily clean-up contaminated sites, the Supreme Court in United States v. Atlantic Research Corporation established that parties who undertake clean-up efforts may bring cost recovery actions under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) against potentially responsible parties (PRPs).  Before this decision, there was a split in the circuit courts regarding whether private parties could recover costs of clean-up, or whether their exclusive remedy was a contribution action which could only be brought after they were sued by the government.  The Supreme Court, in a unanimous opinion by Justice Thomas, ruled that a private party may sue for cost recovery even if that party has not been sued or paid a judgment or settlement to the government.

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CARB Proposes New Diesel Emission Regulations (13 CCR SEC. 2449)

By Randolph C. Visser and Olivier F. Theard

Recognizing that many industrial businesses in California operate using older, and thus more polluting, off-road diesel vehicle fleets, the California Air Resources Board (CARB) has proposed new regulations intended to reduce emissions of particulate matter (PM) and nitrous oxide (NOx) from such vehicles and require businesses to retrofit or "turn over" their fleets over time.

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CREED Case Leaves Questions Regarding Program EIRs

By Michael Wilmar and Jeffrey Forrest

In Citizens For Responsible Equitable Environmental Development (CREED) v. City of San Diego Redevelopment Agency, 2005 Cal. App. LEXIS 1850, the California Court of Appeal, Fourth District, recently rejected the appeal by opponents, CREED, of a hotel development project claiming that the City of San Diego Redevelopment Agency ("City") violated CEQA when the City approved the hotel project without first requiring a project-specific EIR.

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Court of Appeal Rules on Attorneys' Fees in CEQA Cases

By Michael Wilmar

Recently, three separate panels of the California Court of Appeal rendered opinions on the availability of attorneys' fees for plaintiffs who bring CEQA challenges. The decisions make clear that courts have considerable latitude in determining who is the "successful party" and whether there has been a "significant benefit" under the private attorney general statute.

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California Court of Appeal Upholds Dismissal of Claims Based on Overbroad Prop 65 Notices

In Consumer Advocacy Group, Inc. v. Kintetsu Enterprises of America, et al., 129 Cal. App. 4th 540 (2005), the California Court of Appeal (2nd District) reviewed and rejected as invalid certain notices served by plaintiff Consumer Advocacy Group (CAG) on numerous hotels and retail establishments under Proposition 65. The court accordingly upheld the trial court's dismissal of CAG's claims against those defendants upon whom CAG served invalid notices.

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Case Summary - Maintain Our Desert Environment v. Town of Apple Valley

(July 7, 2004) 04 C.D.O.S. 6060

By Maria Pracher

Introduction

In 2002, the Town of Apple Valley approved a project allowing the construction of a 1.2 million square foot distribution center with related outbuildings on a 300 acre site. The City Council certified an EIR for the project, adopted findings, and adopted a statement of overriding considerations for seven significant unavoidable environmental impacts. Neither the EIR nor the various public notices issued in connection with the EIR and the public hearings on the project revealed that Wal-Mart would be the project's end user.

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