Supreme Court Term of 2008-09 Brings Changes to Industrial Marketplace

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Researched by Industrial Info Resources (Sugar Land, Texas)--Decisions made by the Supreme Court during the 2008-09 term are having an impact on the industrial marketplace. Cases heard recently effect the interpretation of laws regarding environmental protection issues and the handling of hazardous substances.

In May, a Supreme Court ruling tightened the reach of the Comprehensive Environmental Response, Compensation and Liability Act. The decision narrowed the types of companies governed by the act and the extent to which companies could be held financially responsible for chemical cleanups when they are not the direct "arranger" of the disposal of hazardous substances. The court ruled that a supplier's delivery of chemicals to a facility, although it included incidental spills during transfer, did not classify it as an arrangement for the disposal of hazardous substances. The company was held responsible for only 6% of cleanup costs, rather than liable for the entire cost.

In another decision regarding industry and the environment, the Supreme Court ruled that the Environmental Protection Agency (EPA) can use cost-benefit analysis to determine whether to require aging power plants to install cooling systems that use recycled water, rather than fresh water from streams and rivers. The environmental upgrades would protect an estimated 3.4 billion fish each year.

Newly built power plants are required to install environmentally friendlier closed-cycle cooling systems, but the upgrade costs for existing plants are arguably much greater than the environment protection gained. The decision supports the legal interpretation that the Clean Water Act gives the EPA the authority to consider costs and benefits of various technology options involving water pollution regulation of older power plants, despite the difficulty in determining an appropriate value for wildlife.

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