3.20.08 Gardere
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This issue of GEAR (Gardere Environmental Action Report) is provided as an informational service to clients and friends of the firm. It is designed to provide timely information and links to news and websites with relevant updates on environmental issues. We value your time and input, so please provide comments or questions to Environmental Action Report Inquiry.

Environmental News

Case Updates

CERCLA: Court Rejects Innocent Landowner Defense for Developer who Worsened Contamination

CLEAN AIR ACT: Ninth Circuit Court of Appeals Holds California’s Marine Vessel Rules Preempted by the Federal Clean Air Act

Legislative/Rulemaking

EPA Strengthens Ozone Standard

TCEQ Proposes Regulations for Recycling Computers

Other News

Home Depot Settles Alleged Violations for $1.3 Million

EPA Seeks Comment on U.S. Greenhouse Gas Inventory

Alaska Village Files Climate Change Lawsuit

ASTM Releases New Vapor Intrusion Standard Practice

W.R. Grace Settles Superfund Claim for $250 Million

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Case Updates

CERCLA: Court Rejects Innocent Landowner Defense for Developer who Worsened Contamination

In U.S. v. Honeywell International, Inc., the U.S. District Court for the Eastern District of California held that a developer who had no reason to know of contamination is nevertheless liable for disposing of hazardous substances under CERCLA because the developer performed excavation activities that worsened the contamination. The court rejected the developer’s argument that it was an “Innocent Landowner” under Section 107, noting that the developer could not show that a third party was the “sole” cause of the release.

For more information about this case, contact Gardere's Environmental Team.

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CLEAN AIR ACT: Ninth Circuit Court of Appeals Holds California’s Marine Vessel Rules Preempted by the Federal Clean Air Act

In Pacific Merchant Shipping Association v. Goldstene, the Ninth Circuit Court of Appeals held that California rules limiting emissions from auxiliary diesel engines of oceangoing vessels were preempted by the Federal Clean Air Act. Defendant California Resources Board argued that because the rules regulate the sulfur content of the fuels used by ocean-going vessels, the rules were permissible under Section 209(d) of the Clean Air Act, which gives states “the right . . . to control, regulate, or restrict the use, operation, or movement of registered or licensed motor vehicles.” The court rejected the argument, noting the plain language of the rules regulates emissions, not fuels.

Download opinion (PDF: 70KB.)

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Legislative/Rulemaking

EPA Strengthens Ozone Standard

The EPA announced that it was revising the 8-hour standard for ozone from 0.08 parts per million to 0.075 parts per million. According to EPA, out of 700 counties in the United States that are monitored, 300 will have to make air quality improvements in order to meet the new standard. Ground-level ozone, a key component of smog, is formed when nitrogen oxides react with volatile organic compounds in the presence of sunlight.

Link to EPA press release regarding this change.

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TCEQ Proposes Regulations for Recycling Computers

The TCEQ is developing regulations that will require manufacturers and retailers of computer equipment to take certain actions to encourage recycling of used computer equipment. Among other things, the proposed regulations will require manufacturers to implement a plan that enables consumers to recycle computer equipment without paying a separate fee at the time of recycling. Retailers will not be allowed to sell new computer equipment in Texas from a manufacturer that is not on TCEQ’s list of compliant manufacturers.

Download TCEQ memo about this program (PDF: 128KB).

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Other News

Home Depot Settles Alleged Violations for $1.3 Million

The U.S. Department of Justice recently reported that Home Depot has agreed to pay a $1.3 million penalty and implement a nationwide compliance program to resolve alleged violations of the Clean Water Act. The settlement resolves alleged stormwater violations at 30 Home Depot construction sites in 28 states and comes on the heels of EPA’s announcement of its National Enforcement and Compliance Assurance Priorities for 2008-2010, which target, among other things, stormwater compliance at homebuilding and “big box” construction sites.

Link to DOJ press release about this settlement.

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EPA Seeks Comment on U.S. Greenhouse Gas Inventory

The U.S. EPA is seeking public comment on the draft version of its Inventory of U.S. Greenhouse Emissions and Sinks: 1990-2006. The report, which the U.S. is required to prepare as a party to the United Nations Framework Convention on Climate Change, tracks national greenhouse gases emissions and presents historical emissions from 1990 to 2006. According to the report, overall emissions for 2006 decreased by 1.5% from the previous year.

Link to EPA Climate Change website.

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Alaska Village Files Climate Change Lawsuit

The Alaska village of Kivalina sued 5 oil companies, 14 electric utilities, and the country’s largest coal company, accusing the companies of creating a public nuisance. Specifically, the village contends that the defendants contributed to global warming by emitting millions of tons of greenhouse gases into the atmosphere. The suit alleges that warmer temperatures have resulted in less sea ice, which normally protects the village from erosion caused by waves. The village also contends that some of the defendants engaged in a conspiracy to mislead the public about the science behind global warming.

Link to New York Times article about this suit.

Download Kivalina lawsuit (PDF: 208KB).

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ASTM Releases New Vapor Intrusion Standard Practice

On March 4, 2008, ASTM released its new standard practice for Assessment of Vapor Intrusion into Structures on Property involved in Real Estate Transactions. The purpose of the standard practice is to define good commercial and customary practice for conducting vapor intrusion assessments on real property involved in real estate transactions. A vapor intrusion condition may exist on a parcel of real property if there exists or is likely to exist on or in close proximity to the parcel of real estate soil or groundwater contamination. Volatile chemicals (both organic and inorganic) may vaporize; coupled with the right geological conditions, a vapor intrusion condition may exist that could effect a present or planned structure.

The vapor intrusion standard sets forth a 4-tier approach for assessing and evaluating vapor intrusion conditions. The vapor intrusion standard practice may be used as a voluntary supplement to ASTM Practice E1527 (Phase I environmental site assessment) and is currently not a requirement of “all appropriate inquiries” under CERCLA.

For more information, please contact Kevin L. Colbert.

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W.R. Grace Settles Superfund Claim for $250 Million

W.R. Grace agreed to pay $250 million to the federal government for costs related to the investigation and remediation of asbestos contamination in Libby, Montana. W.R. Grace, a global supplier of specialty chemicals, owned and operated a vermiculite mine and vermiculite processing facilities in Libby from 1963 to 1990. The company and 61 affiliated companies filed for bankruptcy in April 2001. The settlement resolves a bankruptcy claim filed by the federal government to recover funds necessary to cleanup contaminated schools, homes, and businesses in Libby.

Link to Forbes article about this settlement.

Link to DOJ press releases about W.R. Grace settlement.

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Environmental Team News

Upcoming Events and Articles

  • On April 2, 2008, Richard Faulk will speak at a conference hosted by RTM Communications, Inc. titled "Sustainable Property Transactions - New Trends, New Deals & Redevelopments" in Philadelphia, Pennsylvania. Mr. Faulk will present on "U.S. Supreme Court Environmental Decisions Affecting Business and Real Estate Transactions."

    Link to conference website.

  • On April 7 and 8, 2008, Richard Faulk will participate in a roundtable discussion titled, "Research Roundtable: Expansion of Liability Under Public Nuisance" at the Searle Center on Law, Regulation, and Economic Growth at Northwestern University School of Law, Chicago, Illinois. Other confirmed participants include professors from Yale Law School, Boston University College of Law, and Emory Law School.

    Link
    to roundtable website.

  • Kevin Colbert will participate in a Mock Daubert Hearing on “Admissibility of Causation Expert Opinions” before the Honorable Cynthia Rufe of the Eastern District of Pennsylvania. Also among the panelists is Dean Hartley of Hartley & O’Brien PLLC. The mock hearing is part of ABA’s Tort Trial & Insurance Practice Section conference scheduled for April 10-12, 2008 in Phoenix, Arizona. This year’s conference is entitled “Convergence of Worlds: Kryptonite And Other Toxins in the Courtroom- A Forum for Lawyers, Scientists and Judges.” Gardere is a section sponsor of this event.

    Download more information.

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  • On April 25, 2008, Kevin Colbert will speak at the Second Annual Global Sustainability Conference hosted by the University of Dallas Graduate School of Management Center for Global Sustainability and Ethics. The event, titled “The Business Case for Sustainability,” will take place from 9 a.m. to 3 p.m. at the Las Colinas Country Club in Irving, Texas. Gardere is a sponsor of this event.

    Link to University of Dalllas press release about this event.

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  • Gardere is sponsoring and presenting at a conference organized by the United States Chamber of Commerce titled “The Costs of Doing Business in a Cap-and-Trade World.” The event will take place on May 20, 2008 in Washington, D.C. and will focus on how companies’ day-to-day operations would be affected if the Lieberman-Warner Climate Security Act or similar legislation becomes law.

    Link to conference website.

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Announcement

  • Congratulations to Latosha T. Lewis who was recently selected as a 2008 Texas Rising Star. The full Rising Stars list appears in both the April 2008 issue of Texas Monthly and Texas Rising Stars 2008, published by Law & Politics Media Inc.

    Download press release (PDF: 30KB).

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Recent Articles and Presentations

The content of this newsletter is for informational purposes only, and is not intended to constitute legal or professional advice. The information is not guaranteed to be complete,accurate or timely, and you should not rely upon it for any purpose in lieu of seeking direct legal advice from a qualified attorney who is made aware of the specific circumstances which may apply to your situation.

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