In Barclay Lofts LLC v. PPG Industries, Inc., Case No. 20-CV-1694, 2024 WL 4224731 (E.D. Wis. Sept. 18, 2024), a United States District Court in Wisconsin, after deciding several threshold issues under CERCLA, allocated liability for past and future response costs to clean up a contaminated site based upon a detailed analysis of the operational and material handling practices of the potentially responsible parties.  The decision offers insights about the facts that a court may find compelling and the factors that a court may apply to reach an equitable CERCLA allocation among responsible parties. Read More »

Share | Email| Comments|  Topics: Allocation, CERCLA, Cleanup, Contamination, Contribution, Cost Recovery, Operator Liability, Owner Liability, PCBs, Potentially Responsible Parties, Remediation, Solvents, Superfund

On September 27, 2024, in Short Creek Development, LLC v. MFA Incorporated, No. 22-05021-CV-SW-WBG, 2024 WL 4326815 (W.D. Mo. Sept. 27, 2024), Magistrate Judge W. Brian Gaddy determined Plaintiffs’ claim under Section 107(a) of the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) was barred by the applicable statute of limitations as “physical on-site construction of the remedial action” occurred more than six years prior to when Plaintiffs brought their lawsuit.  Specifically, the Magistrate Judge found that costs related to a leachate collection system constructed approximately a year before the adoption of a Record of Decision (“ROD”) amendment outlining a permanent remedy for the Orongo-Duenweg Mining Belt Superfund Site (the “Site”) was the beginning of the six-year limitations period.   In doing so, the Court rejected adoption of a “bright-line” rule that remedial actions begun before adoption of a final remedial plan do not trigger the limitations period.  Read More »

Share | Email| Comments|  Topics: CERCLA, Cleanup, Contamination, Cost Recovery, Groundwater, Landfill, Mining, Missouri, Remediation, Removal, Statute of Limitations, Superfund, Waste

The United States District Court for the Western District of Louisiana, Lake Charles Division, on August 22, 2024 issued an injunction barring the United States Environmental Protection Agency (EPA) and the United States Department of Justice (DOJ) from enforcing regulations based on Title VI of the Civil Rights Act, 42 U.S.C. 200d, et seq., in the State of Louisiana (the “State”). The ruling in State of Louisiana v. US Environmental Protection Agency, et al., No. 2:23-CV-00692, 2024 WL 3904868, at *1 (W.D. La. Aug. 22, 2024), effectively prohibits these federal agencies from implementing regulations that implicate Title VI’s disparate impact prohibition.   Read More »

Share | Email| Comments|  Topics: Air, Clean Air Act, Disparate Impact, Environmental Justice, Injunction, Louisiana, Permits, Rulemaking, Title VI

In the wake of the Supreme Court’s decision in Loper Bright Enters. v. Raimondo, 244 S.Ct. 2244 (2024), the general breadth and scope of agency decision-making has been called into question. In its recent decision, Huntsman Petrochemical LLC v. EPA, No. 23-1045, 2024 WL 3763355 (D.C. Cir. Aug. 13, 2024), the D.C. Circuit has made it clear that where statutory interpretation is not implicated, the Court will continue to afford EPA’s conclusions involving technical expertise a significant degree of deference. While neither the parties nor the Court attempted to address or reference Loper Bright, the Court articulated a clear standard applicable to agency actions involving statistical and modeling analyses: the Court will examine each step of an agency’s analysis to satisfy themselves that the agency has not “departed from a rational course.” Only where a statistical model “bears no rational relationship to the characteristics of data to which it was applied” will agency action be deemed arbitrary and capricious. Accordingly, regulated entities should be aware that the concept of deference lives on when challenging agency decision-making, even in the wake of the fall of Chevron Deference. Read More »

Share | Email| Comments|  Topics: Air, Chevron Deference, Clean Air Act, D.C. Circuit, Emissions, EPA, HAPs, Hazardous Air Pollutants, Rulemaking

This entry was authored by MGKF Summer Associate Ryan Raynor

Next term, the United States Supreme Court will decide the extent to which federal agencies must consider environmental impacts beyond their control in performing environmental reviews. On June 24, 2024, the Supreme Court granted certiorari to the Seven County Infrastructure Coalition and the Uinta Basin Railway, LLC to determine whether the National Environmental Policy Act (“NEPA”) requires a federal agency conducting an environmental impact statement (“EIS”) to study environmental impacts beyond the proximate effects of the action over which the agency has regulatory authority. Eagle Cnty., Colorado v. Surface Transportation Bd., 82 F.4th 1152, 1179 (D.C. Cir. 2023), cert. granted sub nom. Seven Cnty. Coalition v. Eagle Cnty., Co, 2024 WL 3089539 (U.S. June 24, 2024). Read More »

Share | Email| Comments|  Topics: Energy, FERC, Greenhouse Gas, Natural Gas, NEPA, Oil and Gas, Pipelines, Railroad, United States Supreme Court

On July 18, 2024, in Shirley v. Pennsylvania Legislative Reference Bureau, No. 85 MAP 2022, 2024 WL 3450536 (Pa. July 18, 2024), the Pennsylvania Supreme Court reversed the denial of three nonprofit organizations’ application to intervene in the litigation challenging the Pennsylvania Department of Environmental Protection (PADEP) regulation implementing Pennsylvania’s participation in the Regional Greenhouse Gas Initiative (the RGGI Regulation).  After rejecting several arguments regarding the appealability of the order denying intervention, the Court found that the nonprofits’ interest in defending the RGGI Regulation under the Pennsylvania Constitution’s Environmental Rights Amendment (ERA) was not adequately represented by the PADEP and therefore the lower court erred in denying intervention.  Because of this ruling, the three nonprofit organizations (Citizens for Pennsylvania’s Future, Clean Air Council, and the Sierra Club) (Nonprofits) are now able to pursue an appeal of the Commonwealth Court’s final order permanently enjoining the RGGI Regulation from going into effect.  Read More »

Share | Email| Comments|  Topics: Air, Clean Air Act, Environmental Rights Amendment, Greenhouse Gas, Hazardous Air Pollutants, Intervention, Pennsylvania, Pennsylvania Department of Environmental Protection, Rulemaking, Standing

This month, in Markmik, LLC v. Packer (unreported decision, No. 23-P-736), the Massachusetts Appeals Court affirmed a trial court’s finding that a less expensive cleanup option requiring buyers to accept an activity and use limitation (“AUL”), with no diminution in value damages, was appropriate given a guaranty by sellers that was silent about the level of cleanup committed to. Read More »

Share | Email| Comments|  Topics: Breach of Contract, Cleanup, Contamination, Cost Recovery, Damages, Groundwater, Massachusetts, Property Value, Real Estate, Remediation, Vapor Intrusion

This entry was authored by MGKF Summer Associate Karina Zakarian

On June 28, 2024, the United States Supreme Court overruled Chevron U.S.A., Inc. v. Natural Resources Defense Council to the extent that the earlier decision had instructed federal courts to defer to agencies’ reasonable interpretations of ambiguous statutes. See Loper Bright Enterprises v. Raimondo, 603 U.S. ___ (2024). The decision stems from a challenge to the Magnuson-Stevens Act by several fishery businesses, but the sole issue before the Court was whether Chevron should be overturned. In a divisive 6-3 decision, the Court’s conservative majority held in the affirmative, entombing Chevron deference based upon the Court’s interpretation of the Administrative Procedure Act (“APA”). As a result, federal agencies like the Environmental Protection Agency (“EPA”) are now deprived of a doctrine they had long relied upon to defend their regulatory agendas. Read More »

Share | Email| Comments|  Topics: Administrative Procedures Act, Chevron Deference, United States Supreme Court

This entry was authored by MGKF Summer Associate Autumn Chassie

On May 28, 2024, the Supreme Court agreed to decide City and County of San Francisco v. Environmental Protection Agency. This case arose after the Environmental Protection Agency (“EPA”) required San Francisco to update its long-term control plan for combined sewer overflows and to re-evaluate alternatives for discharges during heavy rains when the system’s capacity is exceeded. 75 F.4th 1074 (9th Cir. 2023). The primary issue is whether the Clean Water Act (“CWA”) allows EPA to impose general prohibitions in National Pollutant Discharge Elimination System (“NPDES”) permits, which could subject permit holders to enforcement actions for violating water quality standards without specifying exact discharge limits. Read More »

Share | Email| Comments|  Topics: Clean Water Act, Enforcement, NPDES, United States Supreme Court

In a 5-4 decision, a divided Supreme Court stayed the enforcement of the Environmental Protection Agency’s (“EPA”) Federal Implementation Plan (“FIP”) holding that the emission control measures set to be used in upwind states to improve ozone levels in downwind states was arbitrary and capricious. Ohio et al. v. Env’t Prot. Agency, No. 23A349, No. 23A350, No. 23A351, No. 23A384, 2024 WL 3187768 at *11 (S. Ct. June 27, 2024). The Court reasoned that EPA’s FIP rested on the assumption that all upwind states would adopt emission-reduction measures to ensure effective downwind air quality improvements. EPA, however, failed to reasonably explain if the FIP would be operable if some upwind states fell out of the plan. In the short term, the stay provides temporary relief to industry groups and states that challenged various aspects of the FIP in the D.C. Circuit; in the long term, the Court’s ruling spells trouble for the FIP’s efficacy if and when federal courts rule on the merits of the rule’s legality.      Read More »

Share | Email| Comments|  Topics: Administrative Procedures Act, Clean Air Act, United States Supreme Court