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An unusual Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA, known also as Superfund) remedial action has resulted in a broad ruling that Environmental Protection Agency (EPA) remedial actions and their implementation by EPA contractors may be entitled to broad protection from liability insofar as the Federal Tort Claims Act (FTCA) is involved. The case is Gadsden Industrial Park LLC v. United States of America, CMC Inc., and Harsco Corporation, an unpublished opinion released by the court on November 30, 2018.

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Most contractors are diligent about making sure that they pay their licensing fees, renew worker’s compensation insurance, and maintain the required bonds. What may be less obvious is how critically important it is to have current company personnel listed on the company’s licensing records with the Contractor’s State Licensing Board. Only personnel listed on the CSLB’s records are authorized to act on behalf of the licensee with respect to CSLB-related matters.

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In September 2017, the California legislature and Gov. Jerry Brown enacted Senate Bill 35 (SB 35) to streamline housing development in cities that are not meeting their housing needs. SB 35 is aimed at easing California’s severe housing shortage and affordability crisis but was highly controversial due to concerns about loss of local control over housing development. In the year since SB 35 was enacted, several development projects in the San Francisco Bay Area have invoked SB 35 to bypass local opposition or cumbersome permitting timelines.

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On December 3, the Environmental Protection Agency (EPA) published a Federal Register notice advising the regulated community that EPA’s controversial Clean Air Act (CAA) stationary source Risk Management Program (RMP) rules are effective as of December 3, 2018 – the Final Rule: Accidental Release Prevention Requirements: Risk Management Programs Under the Clean Air Act (83 FR 62268). The initial package of the RMP rules was promulgated in 1996, but a series of chemical explosions prompted the development of new rules, whose process safety, third party auditing, emergency response, preparedness and information sharing provisions were designed to confront these challenges.

The latest iteration of these rules was published on January 13, 2017, or only a few days before the new administration took office. The new administration took various administrative steps to delay them for a while. However, the U.S. Court of Appeals for the District of Columbia Circuit, in its August 17, 2018 decision in Air Alliance Houston, et al., v EPA, held that the arguments made to delay the effective date of these rules were not consistent with the relevant provisions of the CAA. The Court of Appeals also stated that EPA retains authority under the CAA to ”substantially amend the programmatic requirements of the Chemical Disaster Rule, and pursuant to that authority, revise its effective and compliance dates, subject to arbitrary and capricious review.”

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transportationLet’s say you run a business, but public transit doesn’t serve your location very well. You want to offer transportation to your customers or your employees. Maybe you want to offer an airport shuttle to customers or pick up employees for their daily commute in vans or buses. Maybe you want to build an aerial gondola to a baseball stadium and charge riders to use it. Or maybe you’re an entrepreneur who wants to sell transportation to other businesses or to the public. You need to know how different kinds of transportation services are regulated, and who regulates them.

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cannabis real estateThroughout 2018, we have discussed the implications of the legalization of marijuana on the real estate industry. In this final year-end edition, we provide a few important considerations and recommendations for property owners, landlords and tenants when purchasing or leasing green property.

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The California Natural Resources Agency (CNRA) recently posted final adopted text for amendments to the CEQA Guidelines.  The result of over five years of development efforts by the Governor’s Office of Planning & Research and CNRA, the amendments are the most comprehensive update to the CEQA Guidelines since 1998.  In “Natural Resources Agency Finalizes Updates to the CEQA Guidelines,” Pillsbury environmental attorneys Kevin Ashe and Eric Moorman explore the wide range of issues covered in the amendments, including the new Vehicle-Miles-Traveled (VMT) methodology for analyzing transportation impacts; use of regulatory standards as significance thresholds; environmental baselines; and numerous procedural and technical improvements.

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On November 23, the latest National Climate Assessment, Fourth National Climate Assessment (NCA4), was released by the U.S. Global Research Program, as required by the Clean Air Act. The Assessment, comprising three volumes and 1600 pages, contains some rather bleak findings which the Report usefully summarizes. Here’s a description of these findings.

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On November 27, 2018, the U.S. Supreme Court issued a ruling vacating and remanding the U.S. Court of Appeals for the Fifth Circuit’s decision in Weyerhaeuser Company v. U.S. Fish and Wildlife Service. The Court of Appeals had affirmed the District Court’s ruling that the U.S. Fish and Wildlife Service (Service) properly designated, under the Endangered Species Act (ESA), a large tract of land located in Louisiana as a critical habitat suitable for the endangered Dusky Gopher Frog, which currently is only found in Mississippi. This is an important ruling under the ESA, and it will be very interesting to see what happens when the case is returned to the Fifth Circuit.

The Louisiana land is owned by the Weyerhaeuser Company and a group of family landowners, who have challenged these decisions of the Service and the lower federal courts. Weyerhaeuser Company v. United States Fish and Wildlife Service was argued on October 1, 2018. Justice Kavanaugh did not participate because he was not on the Court at the time of the oral argument. Continue Reading ›

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This update follows an earlier post discussing Proposition 10’s potential impacts and pre-election prospects, available here.

What happened on Election Day
Despite California’s sky-high rents, voters just rejected a ballot measure that would have allowed cities to expand rent control. With 100% of precincts reporting, 61.7% of voters opposed Prop 10, while 38.3% voted to approve the measure. The ballot measure only achieved a majority in one of California’s fifty-eight counties, San Francisco. In Los Angeles County, 47.2% of voters supported the proposition. However, the ballot measure fared substantially worse in Sacramento, San Diego, Fresno and Orange counties. These results highlight the measure’s widespread unpopularity.

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