Environment, Energy, and Resources Law: The Year in Review 2017

439 Pages·2017·3.51 MB·English

2017
2017
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Environment, Energy, and Resources Law 2017
The Year in Review 2017
2017
2017
2017
2017
2017
ISBN: 978-1-64105-150-7
ISSN: 1946-9640

Copyright 2018 American Bar Association. All rights reserved. No part of this publication
may be reproduced, stored in a retrieval system, or transmitted in any form or by any
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The material contained herein does not necessarily express the views or position of the
American Bar Association, the Section of Environment, Energy, and Resources, or The
University of Tulsa College of Law.
The materials contained herein represent the opinions of the authors and editors and should
not be construed to be those of either the American Bar Association or the Section of
Environment, Energy, and Resources unless adopted pursuant to the bylaws of the
Association. Nothing contained herein is to be considered as the rendering of legal advice
for specific cases, and readers are responsible for obtaining such advice from their own
legal counsel. These materials and any forms and agreements herein are intended for
educational and informational purposes only.
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ABA SECTION OF ENVIRONMENT, ENERGY, AND RESOURCES
2017-2018

COUNCIL
Executive Committee

Chair
JOHN E. MILNER

Chair-Elect Vice Chair Secretary Budget Officer
AMY L. EDWARDS KAREN A. MIGNONE JEFFERY S. DENNIS MICHELLE
DIFFENDERFER

Education Officer Membership and Publications Officer Immediate Past Chair
WENDY BOWDEN Diversity Officer JONATHAN W. KAHN SETH A. DAVIS
CROWTHER SEAN T. DIXON
Section Delegates to the ABA House of Delegates
PAMELA E. BARKER and SHEILA SLOCUM HOLLIS

Council Members
NORMAN A. DUPONT PAMELA K. ELKOW PETER J. GIOELLO, JR.
SUSAN MARGARET FLOYD RICHARD J. ERICSSON IGNACIA S. MORENO
ROGER R. MARTELLA, JR. STEPHEN J. HUMES MARGARET E. PELOSO
CHANNING J. MARTIN DAVID JOHNSON LAURAN M. STURM
ANGELA R. MORRISON CHRISTINE Y. LEBEL

Special Committee on The Year in Review Co-Chairs: ERIN POTTER SULLENGER and
MARY ELLEN TERNES
Section Director: DANA JONUSAITIS

THE UNIVERSITY OF TULSA COLLEGE OF LAW
EDITORIAL BOARD

Faculty Advisor: ROBERT BUTKIN

Student Editors

Editor-in-Chief
WILLIAM BOYD

Executive Editors
TYLER EZELL MORGAN VAUGHN

Staff Editors
JARED CANNON ALI HAUSNER MORGAN SMITH
CAITLIN A. GETCHELL ROBERT HILL AARON W. WRIGHT

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SUMMARY OF CONTENTS

Introduction ................................................................................................................... xvii
Highlights of The Year in Review 2017...................................................................... xviii

Environmental Committees
Chapter 1 • Agricultural Management ...........................................................................1
Chapter 2 • Air Quality ..................................................................................................8
Chapter 3 • Endangered Species ..................................................................................32
Chapter 4 • Environmental Disclosure .........................................................................41
Chapter 5 • Environmental Enforcement and Crimes .............................................….49
Chapter 6 • Environmental Litigation and Toxic Torts ...............................................59
Chapter 7 • Environmental Transactions and Brownfields ..........................................69
Chapter 8 • Pesticides, Chemical Regulation, and Right-to-Know .............................80
Chapter 9 • Superfund and Natural Resource Damages Litigation .............................95
Chapter 10 • Waste and Resource Recovery .............................................................110
Chapter 11 • Water Quality and Wetlands .................................................................121

Energy and Resources Committees
Chapter 12 • Energy Markets and Finance ................................................................137
Chapter 13 • Energy and Natural Resources Litigation .............................................150
Chapter 14 • Energy Infrastructure, Siting, and Reliability .......................................167
Chapter 15 • Forest Resources ...................................................................................176
Chapter 16 • Hydro Power .........................................................................................183
Chapter 17 • Marine Resources .................................................................................189
Chapter 18 • Mining and Mineral Extraction .............................................................205
Chapter 19 • Native American Resources ..................................................................208
Chapter 20 • Nuclear Law ..........................................................................................221
Chapter 21 • Oil and Gas ...........................................................................................227
Chapter 22 • Public Land and Resources ...................................................................268
Chapter 23 • Renewable, Alternative, and Distributed Energy Resources ................277
Chapter 24 • Water Resources ...................................................................................284

Cross Practice Committees
Chapter 25 • Alternative Dispute Resolution .............................................................314
Chapter 26 • Climate Change, Sustainable Development, and Ecosystems ..............321
Chapter 27 • Constitutional Law ................................................................................351
Chapter 28 • International Environmental and Resources Law .................................357
Chapter 29 • Science and Technology .......................................................................375

Council Related Committee
Chapter 30 • Ethics and the Profession ......................................................................382

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TABLE OF CONTENTS

Chapter 1
AGRICULTURAL MANAGEMENT ............................................................................ 1
I. THE FARM BILL ............................................................................................................ 1
II. THE TRUMP ADMINISTRATION AND AGRICULTURAL TRADE ....................................... 2
A. Trans-Pacific Partnership (TPP) ..................................................................... 2
B. North American Free Trade Agreement (NAFTA) ........................................... 2
III. BIOTECHNOLOGY DEVELOPMENTS ............................................................................ 4
A. U.S. Regulatory Updates .................................................................................. 4
B. Gene-Edited Agricultural Products in Regulatory Limbo ................................ 4
C. Litigation Expands Boundaries of Negligence ................................................. 5
D. International Regulation of Agricultural Biotechnology.................................. 6
IV. MERGERS AND ACQUISITIONS ................................................................................... 6

Chapter 2
AIR QUALITY.................................................................................................................. 8
I. JUDICIAL DEVELOPMENTS ............................................................................................ 8
A. Title I—Federal & State Implementation Plans, Conformity, & Federal
Facilities ........................................................................................................... 8
B. Preemption of State Law Claims & Displacement of Federal Law Claims ..... 9
C. New Source Review (NSR), Prevention of Significant Deterioration (PSD),
New Source Performance Standards (NSPS), & Title V Permitting .............. 10
D. Hazardous Air Pollutants ............................................................................... 13
E. Civil & Criminal Enforcement ....................................................................... 14
F. Citizen Suits .................................................................................................... 14
G. Procedural Issues ........................................................................................... 14
H. Greenhouse Gas Emissions ............................................................................ 17
I. Title II—Mobile Sources & Fuels ................................................................... 18
II. REGULATORY DEVELOPMENTS ................................................................................. 19
A. Title I—Federal (FIPs) and State Implementation Plans (SIPs), Conformity,
Federal Facilities............................................................................................ 19
B. New Source Review (NSR), Prevention of Significant Deterioration (PSD),
New Source Performance Standards (NSPS), and Title V Permitting ........... 20
C. Title II—Mobile Sources and Fuels ................................................................ 22
D. Hazardous Air Pollutants ............................................................................... 24
E. Title VI - Stratospheric Ozone ........................................................................ 28
F. Greenhouse Gas Emissions ............................................................................ 29
G. Criteria Air Pollutants .................................................................................... 30

Chapter 3
ENDANGERED SPECIES ............................................................................................ 32
I. LEGISLATIVE DEVELOPMENTS .................................................................................... 32
II. ADMINISTRATIVE DEVELOPMENTS............................................................................ 33
III. JUDICIAL DEVELOPMENTS ....................................................................................... 35
A. Section 4: Listings, Critical Habitat Designation, and Recovery Plans ........ 35
B. Section 5: Habitat Acquisition ........................................................................ 37
C. Section 6: State Cooperative Programs ......................................................... 37
D. Section 7: Federal Agency Conservation Duty, Jeopardy Standard
Consultations, and Incidental Take Statements .............................................. 37
E. Section 9: Take Prohibition ............................................................................ 39
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F. Section 10: Permits and Experimental Populations ....................................... 40
G. Section 11: Enforcement, Citizen Suits, Standing, and Jurisdiction Issues ... 40
H. Miscellaneous ESA Topics and Related Federal and State Laws .................. 40

Chapter 4
ENVIRONMENTAL DISCLOSURE ........................................................................... 41
I. GOVERNMENTAL ACTION ........................................................................................... 41
A. SEC Rules and Proposals ............................................................................... 41
B. ExxonMobil Climate Change Investigation and Litigation ............................ 43
C. Hydraulic Fracturing Disclosure Rules ......................................................... 44
II. SHAREHOLDER LITIGATION ....................................................................................... 44
III. SHAREHOLDER RESOLUTIONS .................................................................................. 47
IV. NONGOVERNMENT ORGANIZATIONS ........................................................................ 47

Chapter 5
ENVIRONMENTAL ENFORCEMENT AND CRIMES ........................................... 49
I. ENVIRONMENTAL ENFORCEMENT RESULTS ............................................................... 49
II. ENVIRONMENTAL ENFORCEMENT INITIATIVES ......................................................... 49
A. Reducing Air Pollution from the Largest Sources .......................................... 49
B. Cutting Hazardous Air Pollutants .................................................................. 49
C. Ensuring Energy Extraction Activities Comply with Environmental Laws .... 50
D. Reducing Pollution from Mineral Processing Operations ............................. 50
E. Reducing Risks of Accidental Releases at Industrial and Chemical
Facilities ......................................................................................................... 50
F. Keeping Raw Sewage and Contaminated Stormwater Out of Our Nation’s
Waters ............................................................................................................. 50
G. Preventing Animal Waste from Contaminating Surface and Ground Water . 50
H. Keeping Industrial Pollutants Out of the Nation’s Waters ............................. 51
III. SUMMARY OF SIGNIFICANT CASES .......................................................................... 51
A. Criminal Cases ............................................................................................... 51
B. Civil Cases ...................................................................................................... 55

Chapter 6
ENVIRONMENTAL LITIGATION AND TOXIC TORTS ...................................... 59
I. COMMON LAW CLAIMS .............................................................................................. 59
A. Statute of Limitations ...................................................................................... 59
B. Prospective Tort ............................................................................................. 60
C. Injunctive Relief .............................................................................................. 60
D. Other Limitations ............................................................................................ 60
E. Jurisdiction ..................................................................................................... 61
II. MASS TORT & GROUNDWATER CONTAMINATION .................................................... 62
III. PUBLIC-ENTITY PLAINTIFFS ..................................................................................... 63
A. State-Led PCB Litigation................................................................................ 63
B. Municipality-Led PCB Litigation ................................................................... 64
C. Other Public Plaintiffs .................................................................................... 64
IV. LONE PINE ............................................................................................................... 65
V. PREEMPTION ............................................................................................................. 66
VI. CORPORATE OFFICER LIABILITY ............................................................................. 67
VII. MEDICAL MONITORING .......................................................................................... 68

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Chapter 7
ENVIRONMENTAL TRANSACTIONS AND BROWNFIELDS ............................. 69
I. CONTRACTUAL LIABILITY .......................................................................................... 69
II. BANKRUPTCY ............................................................................................................ 70
III. LENDER LIABILITY .................................................................................................. 70
IV. BROWNFIELDS LEGISLATIVE UPDATE ...................................................................... 71
A. Federal Legislation......................................................................................... 71
B. State Legislation ............................................................................................. 73
V. ENVIRONMENTAL INSURANCE .................................................................................. 75
VI. INSTITUTIONAL CONTROLS AND OTHER CONTINUING OBLIGATIONS ...................... 76
A. Private Sector Activities ................................................................................. 76
B. Federal Agency Activities ............................................................................... 76
C. State Activities ................................................................................................ 77
VII. ENVIRONMENTAL INVESTIGATIONS/DUE DILIGENCE ............................................. 78
VIII. EFFECT OF BUILDING ISSUES ON TRANSACTIONS .................................................. 78
A. Vapor Intrusion Developments ....................................................................... 78
B. Lead-Based Paint ........................................................................................... 79
C. Radon .............................................................................................................. 79

Chapter 8
PESTICIDES, CHEMICAL REGULATION, AND RIGHT-TO-KNOW ............... 80
I. TOXIC SUBSTANCES CONTROL ACT (TSCA) .............................................................. 80
A. Implementation of the Frank R. Lautenberg Chemical Safety for the 21st
Century Act ..................................................................................................... 80
B. New Chemicals Program and Significant New Uses...................................... 81
C. Regulation of Existing Chemicals ................................................................... 82
D. National Program Chemicals ......................................................................... 84
E. Confidential Business Information ................................................................. 84
F. Reporting ........................................................................................................ 85
II. PESTICIDES AND FIFRA ............................................................................................ 86
A. Endangered Species ........................................................................................ 86
B. Pollinators ...................................................................................................... 87
C. Inerts ............................................................................................................... 87
D. Cannabis ......................................................................................................... 87
E. Particular Products ........................................................................................ 88
F. Pesticide Applicator Protections .................................................................... 89
G. State Preemption of Local Pesticide Ordinances ........................................... 89
H. Signifcant Guidance and Science Consultation ……………………………. 89
III. BIOTECHNOLOGY ..................................................................................................... 90
IV. HYDRAULIC FRACTURING ....................................................................................... 91
V. NANOTECHNOLOGY .................................................................................................. 92
VI. EMERGENCY PLANNING AND COMMUNITY RIGHT-TO-KNOW (EPCRA) ................ 93
VII. GREEN CHEMISTRY ................................................................................................ 93
VIII. CONSUMER PRODUCT SAFETY COMMISSION ACTION ON CHEMICALS .................. 94

Chapter 9
SUPERFUND AND NATURAL RESOURCE DAMAGES LITIGATION ............. 95
I. SUPERFUND: ADMINISTRATIVE AND REGULATORY DEVELOPMENTS.......................... 95
II. SUPERFUND: JUDICIAL DEVELOPMENTS .................................................................... 96
A.-C. Constitutional Issues, Jurisdiction, and Standing ....................................... 96
D. Elements of Liability ....................................................................................... 97
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E. Liability of Particular Parties ........................................................................ 98
F. Private Cost Recovery .................................................................................. 100
G. Allocation and Indemnification .................................................................... 101
H. Defenses ........................................................................................................ 103
I. Recoverable Response Costs (Including Attorney’s Fees) ........................... 107
J. Claims against the Government, Including Section 106(b) Actions ............. 108
K. Preemption.................................................................................................... 108
L. Miscellaneous ............................................................................................... 109
III. NATURAL RESOURCE DAMAGES ............................................................................ 109

Chapter 10
WASTE AND RESOURCE RECOVERY ................................................................. 110
I. LITIGATION AND ENFORCEMENT DEVELOPMENTS ................................................... 110
A. D.C. Circuit Court Shrinks EPA’s ‘Sham Recycling’ Rule .......................... 110
B. Intent Not Required for RCRA Criminal Conviction .................................... 111
C. Environmental Interest Group has Standing to Challenge Chemically Treated
Utility Poles under RCRA ............................................................................. 111
D. USEPA Region 6 Reaches Settlement with Macy’s for RCRA Violations .... 112
II. REGULATORY DEVELOPMENTS ............................................................................... 113
A. USEPA Developing E-Manifest System for Hazardous Waste ..................... 113
B. CCR Rule and WIIN Act Implementation, Litigation, and Reconsideration 113
C. California Takes Numerous Steps to Shore Up Waste Diversion Programs 115
III. DEVELOPMENTS IN ELECTRONIC WASTE ............................................................... 116
A. Enforcement and Litigation .......................................................................... 116
B. Federal Legislative Developments ............................................................... 117
C. State Legislative Developments .................................................................... 117
D. International Developments ......................................................................... 119

Chapter 11
WATER QUALITY AND WETLANDS .................................................................... 121
I. JUDICIAL DEVELOPMENTS ........................................................................................ 121
A. Clean Water Act (CWA) Section 303—Water Quality Standards ................ 121
B. CWA Section 303(d)—Total Maximum Daily Loads (TMDLs) .................... 122
C. CWA Sections 304 and 306–Criteria and Guidelines, and Performance
Standards ...................................................................................................... 122
D. CWA Section 309—Enforcement .................................................................. 123
E. CWA Section 401—State Certification ......................................................... 124
F. CWA Section 402—National Pollutant Discharge Elimination System
(NPDES) Permitting .................................................................................... 125
G. CWA Section 404—Wetlands........................................................................ 130
H. CWA Section 505—Citizen Suits .................................................................. 131
II. ADMINISTRATIVE DEVELOPMENTS.......................................................................... 133
A. CWA Section 303—Water Quality Standards .............................................. 133
B. CWA Section 303(d)—TMDLs...................................................................... 133
C. CWA Sections 304 and 306–Criteria and Guidelines, and Performance
Standards ...................................................................................................... 134
D. CWA Section 309—Enforcement .................................................................. 134
E. CWA Section 401—State Certification ........................................................ 134
F. CWA Section 402—NPDES Permitting ........................................................ 135
G. CWA Section 404—Wetlands........................................................................ 135
III. LEGISLATIVE DEVELOPMENTS ............................................................................... 136
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A. CWA Section 401—State Certification ......................................................... 136
B. CWA Section 402—National Pollutant Discharge Elimination System
(NPDES) Permitting .................................................................................... 136
C. CWA Section 505—Citizen Suits .................................................................. 136

Chapter 12
ENERGY MARKETS AND FINANCE ..................................................................... 137
I. FERC INITIATES NEW PROCEEDING AFTER CONSIDERING PROPOSED DOE GRID
RESILIENCY RULE ..................................................................................................... 137
II. IMPACT OF THE TAX CUTS AND JOBS ACT ON ELECTRICITY MARKETS ................... 139
III. CALIFORNIA ENERGY AND CLIMATE LAW AND POLICY UPDATE ........................... 141
A. Introduction .................................................................................................. 141
B. Renewable Electricity Market ...................................................................... 141
C. 2017 Climate Change Scoping Plan Update ................................................ 143
D. Emissions Trading System (Cap and Trade) ................................................ 144
E. Energy Storage Mandates and Incentives .................................................... 144
F. Zero Emission Vehicles ................................................................................ 145
IV. CALIFORNIA’S CAP AND TRADE EXTENSION LEGISLATION ................................... 146
V. KENTUCKY’S SUSPENSION OF ACTIVITY IN DEMAND SIDE MANAGEMENT
PROGRAMS .............................................................................................................. 147

Chapter 13
ENERGY AND NATURAL RESOURCES LITIGATION ...................................... 150
I. DOMESTIC JUDICIAL DEVELOPMENTS ...................................................................... 150
A. Tenth Circuit Court of Appeals addresses objections to district court approval
of class settlements in the so-called “hot fuel” litigation. .......................... 150
B. Court finds that county ordinance prohibiting storage and permanent disposal
of wastewater was preempted by state law. .................................................. 152
C. Court holds that wind energy developer’s excavation work in construction of
wind turbines constituted “mining” under federal regulations applicable to
the Indian lands. ........................................................................................... 153
D. Court addresses dispute over whether a binding contract to sell oil and gas
properties was formed as a result of e-mail negotiations and
communications. ........................................................................................... 155
E. Widely-followed rulings of the Bankruptcy Court in In re Sabine Oil & Gas
Corp., allowing the debtor to reject midstream services contracts, are
affirmed by the district court. ....................................................................... 160
F. Court resolves venue issues of lawsuit relating to injection wells permitted by
the Texas Railroad Commission. ................................................................. 160
G. Court finds that the transportation of liquid propane is not an ultrahazardous
activity for purposes of strict liability. .......................................................... 161
H. Court affirms dismissal with prejudice of plaintiffs’ suit against operator of
horizontal well for alleged damages to plaintiffs’ older vertical wells, and
discusses important principles of limitations as a defense. ......................... 163
I. Court finds that plaintiff-town’s claims for trespass and nuisance with
respect to natural-gas compressor stations and metering station were
barred by limitations. ................................................................................... 165
J. Tenth Circuit, in a criminal case, finds that Congress never properly
disestablished the Creek Reservation, leaving broad potential implications
for most sectors of the business community and other tribes. ...................... 165

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