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In American Electric Power Co. v. Connecticut,A (June 20, 2011), the U.S. Supreme Court, in an 8-0 opinion, held that federal courts have no authority to apply the federal common law of nuisance to control greenhouse gas emissions.

The U.S. Environmental Protection Agency (EPA) recently finalized two rules related to the capture and long-term storage of carbon dioxide, a process that aims to significantly reduce greenhouse gas (GHG) emissions in the atmosphere: the Geologic Sequestration (GS) rule and a Clean Air Act rule requiring reporting of GHG emissions from GS facilities and all other facilities that inject carbon dioxide (CO2) underground.

Re-published in Law 360.

The stage is set for a three-way convergence (or train wreck, depending on your point of view) on federal climate change policy as all three branches of government wrestle with big-picture questions about whether, when, and how greenhouse gas (GHG) emissions will be controlled. This week, the U.S. Supreme Court agreed to consider the question whether states can seek to control industry emissions of GHGs through the federal common law of public nuisance.

Although no one has yet successfully sued a company for climate change damage allegedly caused by greenhouse gas (“GHG”) emissions, lawsuits blaming industrial emitters for global warming, extreme weather events and other natural disasters are pending in Alaska, Washington, D.C., California and Louisiana. Shareholder resolutions to force companies to limit their carbon emissions are becoming commonplace, and corporate executives and risk managers are becoming ever increasingly concerned about business risks related to climate change.

A complimentary seminar and panel discussion focused on new developments in greenhouse gas regulation in both Washington and Oregon, as well as an update on federal climate change legislation and regulation. We reviewed recent developments that have occurred at the federal level, including the potential impact of the Durban Climate Change Conference, and at the regional and state levels, including the Western Climate Initiative. We also provided a practical overview of the latest developments and general trends both nationally and in our region.

Panelists

  • Jay Austin, Senior Attorney, Environmental Law Institute
  • Manik Roy, Vice President for Strategic Outreach, Center for Climate and Energy Solutions
  • Sandy Mackie, Partner, Perkins Coie
  • Ivan Gold, Partner, Perkins Coie

Topics wecovered include:

  • The Federal Perspective
    • Is federal climate change legislation dead?
    • Will EPA continue to push federal regulations controlling greenhouse gas emissions in the absence of federal legislation?
    • Potential impact of the Durban Climate Change Conference.

  • Washington
    • Legislation without regulation.
    • Can SEPA fill the gaps?

  • Oregon
    • What is the status of the Western Climate Initiative?
    • How may Oregon continue to regulate greenhouse gas emissions?

Climate change has become one of the biggest social, scientific and regulatory issues to come along in decades. All levels of government as well as the private sector, academics and other organizations are analyzing the impact of greenhouse gases and developing strategies to address the effects. On January 11, 2008, the Environmental Law Education Center produced the Second Annual Northwest Conference on Climate Change. Perkins Coie Partner, Tom Lindley chaired and moderated this one-day conference.

This conference brought together the regionas top experts on climate change to explore the initiatives, regulations and strategies to address climate change. They explored the economic impact of climate change and the evolving market-based approaches as well as renewable energy proposals and businesses. Work on climate change is dynamic and evolving. This conference provided an opportunity for education as well as coordination of the many creative approaches to addressing climate change.

Regional Climate Change Initiatives – Webinar and Teleconference

Concerns about climate change have sparked global efforts to regulate carbon dioxide and other “greenhouse gases” (GHGs). Recent, but sometimes inconsistent, developments at various levels of government present significant business risks and opportunities.

Perkins Coie and Fasken Martineau joined together to bring you a series of seminars on cross-border regional climate change initiatives that may affect your business. This seminar provided an opportunity to meet with experienced lawyers from both firms to discuss the Western Climate Initiative’s final design recommendations for a regional cap-and-trade program released in late September
Click here to hear a recording of this seminar

Click here to view the WCI PowerPoint Presentation

Seminar Agenda:

  • Introductory Remarks
  • Overview of the Western Climate Initiative and the Midwestern Accord
  • WCI a Analysis of Final Design Recommendations
  • Midwest Accord a Status and Draft Design Recommendations
  • Effect of Greenhouse Gas Regulation on Industry
  • Closing Remarks
  • Q&A

Climate change has become one of the biggest social, scientific and regulatory issues to come along in decades. All levels of government as well as the private sector, academics and other organizations are analyzing the impact of greenhouse gases and developing strategies to address the effects. On April 17, 2007, the Environmental Law Education Center is producing the Northwest Conference on Climate Change. Perkins Coie Partner, Tom Lindley will be chairing and moderating this one-day conference.

This conference brings together the regionas top experts on climate change to explore the initiatives, regulations and strategies to address climate change. They will also explore the economic impact of climate change and the evolving market-based approaches as well as renewable energy proposals and businesses. Work on climate change is dynamic and evolving. This conference provides an opportunity for education as well as coordination of the many creative approaches to addressing climate change.

Whether the planetis warming is no longer in serious debate. The federal government has acknowledged the existence of global warming and its origin in greenhouse gas emissions(GHG)from human activities. TheU.S.Supreme Court has declared thatGHGsare air pollutants under the Clean Air Actandsubject to regulation by the Environmental Protection Agency(EPA). BoththeEPA and Congress are looking into regulatingGHGs. The issue, therefore, is not whetherGHG regulation is coming, but when and in what form.

Like clean air regulation, GHG issues are environmentally driven. However,they affect corporate governance and disclosure, directors’ obligations and due diligence for transactions. Many business leaders are aware of GHG issues. Some have programs in place, but some are not yet focusing on them.In a conferencepresented by EUCI and is co-sponsored by Perkins Coie and URS Corporation, speakersprovided a sounding board forexisting programs and illustrated the types of resources available to develop a carbon management strategy. Please scroll down to download presentations and handouts from the event.

Introduction and Overview
Ivan Gold, Head, Energy Industry Team, Perkins Coie, LLP
The Business of Greenhouse Gas

Keynote Address
Sadhu Johnston, Commissioner, City of Chicago Department of Environment
The Greening of Chicago

Presentation
Tom Lindley, Chair of Environment & Natural Resources Practice, Perkins Coie, LLP
Climate Change Regulatory Developments: Business Risks and Responses

Panel: Where We Are and Where We’re Going

Ivan Gold, Head, Energy Industry Team, Perkins Coie, LLP
Where We Are and Where We’re Going: The Business of Greenhouse Gas

Tom Cushing, VP, Membership & Business Development, Chicago Climate Exchange
The Business of Greenhouse Gas

Peter Passell, Editor, Milken Institute Review, Milken Institute
Handout: “A Green Thumb for the Invisible Hand” by Ricardo Bayon
Handout: “A Cap-and-Trade Program Design for Greenhouse Gases”, the Milken Institute
Handout: “Beyond Kyoto: Getting Serious About Climate Change” by Robert N. Stavins

Andy Kruger, Vice President, Evolution Markets
The Greenhouse Gas Markets

Panel: Why Act Now?

Henry Henderson, Director, Midwest Regional Office, Natural Resources Defense Council
Climate Change: Why We Must Act Now

Thomas Stoner, Chief Executive Officer, Econergy
“Why Act Now?”: The Business of Greenhouse Gas

Panel: SEC, Corporate Disclosure and Credit Implications

Andrew Bor, Partner, Perkins Coie, LLP
Greenhouse Gas: Disclosure Issues for Public Companies
Handout: “Excerpt from AEP’s Annual Report”

Denise Furey, Senior Director, Global Power Group, Fitch Ratings
Credit Implications of Compliance with Environmental Regulations

Panel: Getting Started: Inventory & Assessment

Bruce Dumdei, Principal, Air Services, URS Corporation
GHG Programs: Getting Started – Inventory and Assessment

Terri Shires, Senior Engineer, URS Corporation
Is the Greenhouse Gas Science Debate Over?

Panel: Carbon Management Tools & Strategies

Katie Panczak, Director, Business Development, DTE Energy Resources
DTE Energy: A Partner in Energy Management

Carrie Cullen Hitt, VP Product Management, Renewable Resources, Constellation NewEnergy
The Business of Greenhouse Gas: A Program for Business and Industry

Virtually every facet of resources law is affected or will be affected in significant ways by climate change.A Coal is under great stress. New coal plants are challenged in virtually every venue, from agency permitting proceedings, to Congress, to utility company executive suites. Californiaas Greenhouse Gas Procurement Standard is but the most visible impediment to future coal-based energy. At the same time, enormous amounts of time and resources are being devoted to carbon capture and storage (CCS), which in turn raises significant regulatory, property rights, liability, and jurisdictional issues.A

This seminar, sponsored by Rocky Mountain Mineral Law Foundation, A seeks to address this issue and various others pertaining to Resources Development and Climate Change.

Partner Tom Lindley willA give aA presentation titled “Coal Plant Challenges: Strategies for Permitting and Development.”

I’ve previously opined on this blog and elsewhere that global warming litigation — at least cases in which individuals seek damages from companies that emit greenhouse gasses — has no leg to stand on because causation is so attenuated and the issue is tied up with important political questions that are committed to the expertise of federal agencies like the EPA, as well as Congress.

My viewpoint was confirmed a few years ago in a case called Comer, in which a Mississippi federal court dismissed a class action filed by Hurricane Katrina victims who sought to blame their loss on various energy and mining companies. The trial court had held that the chain of causation was too attenuated to confer constitutional standing on the plaintiffs, and it further held that the case should be dismissed under the political question doctrine because it required the federal court to decide policy questions about greenhouse gas emissions that were committed to the province of the political branches.

Comer had a curious subsequent history. Plaintiffs appealed to the Fifth Circuit, where they won a partial victory, with the appellate court reversing the judgment on the state law claims of public and private nuisance, trespass, and negligence. The defendants, however, petitioned for rehearing en banc, and the Fifth Circuit granted the petition and vacated the three-judge panel’s decision. Then, a Fifth Circuit judge was recused, resulting in the loss of a quorum for an en banc panel to act. The Fifth Circuit thus dismissed the appeal and reinstated the District Court’s opinion. Plaintiffs did not petition the U.S. Supreme Court for certiorari, but instead petitioned for a writ of mandamus to require the Fifth Circuit to reinstate the appeal. The Supreme Court denied plaintiffs’ petition, and thus the District Court’s opinion dismissing the lawsuit remained the law of the case.

In May 2011, Ned Comer and the other plaintiffs filed a virtually identical lawsuit in the same District Court asserting the causes of action the three-judge panel had said should have been remanded: public and private nuisance, trespass, and negligence. Plaintiffs sued the same defendants, and added a few more. Feeling as if it was Groundhog’s Day, the defendants once again moved to dismiss.

Yesterday the court issued an opinion unsurprisingly granting the defendants’ motion to dismiss. See Comer v. Murphy Oil USA, Inc., No. 1:11CV220-LG-RHW, Slip op. (S.D. Miss. Mar. 20, 2012). The court’s primary holding is that the suit is barred by the doctrines of res judicata and collateral estoppel. The 11 plaintiffs in Comer I are the same plaintiffs who have brought Comer II. The district court’s order in Comer I was a final order dismissing the case for lack of jurisdiction, which is a decision on the merits for the purposes of res judicata. Plaintiffs had a full and fair opportunity to argue the issue in the first suit. The two suits involve the same “transaction,” namely damages arising out of the occurrence of Hurricane Katrina. Moreover, the admitted purpose of the second lawsuit is to convince the court that it was wrong in the first lawsuit.

The district court’s res judicata holding should have ended the issue. However the court, “out of an abundance of caution,” went on to address the defendants’ additional arguments.

The court held that plaintiffs lacked Article III standing to assert their state law claims. The court focused on the causation element of the standing inquiry. It noted that the U.S. Supreme Court found that a state had standing to bring a lawsuit to force the EPA to issue greenhouse gas regulations in Massachusetts v. EPA, 549 U.S. 497 (2007). However, the Supreme Court gave special deference to a state suing in its capacity as a quasi-sovereign, and expressly reserved the question of whether an individual would have standing to bring a global warming claim. Moreover, the Supreme Court had acknowledged that causation regarding greenhouse gases emissions was a difficult global problem, and that any domestic reductions in emissions likely would be offset by increases in developing countries.

The district court also observed that in American Electric Power Co. v. Connecticut, 131 S. Ct. 2527 (2011), the Supreme Court was equally divided on the question whether states had standing to file lawsuits against corporations to reduce greenhouse gas emissions, and it expressly reserved the question whether individuals could assert such standing.

The plaintiffs in Comer II relied on authorities under the Clean Water Act finding standing where the defendants were merely alleged to have contributed to plaintiffs’ injuries. The district court distinguished their authorities, relying in part on Native Village of Kivalina v. Exxonmobil Corp., 663 F. Supp. 2d 863 (N.D. Cal. 2009), which had explained that CWA cases only find “contribution” standing where a presumption of standing arises as a result of a defendant’s violation of federally-mandated pollution limits. Where, as here, there is no such federally-mandated limit on greenhouse gases (and thus no such violation), no presumption can arise. Moreover, even the CWA cases recognized that a point of discharge can be too remote from the plaintiff’s injury to be legally recognized as a contributing cause. See slip op. at 21-22 (citing Friends of the Earth, Inc. v. Crown Cent. Petrol. Corp., 95 F.3d 358 (5th Cir. 1996) (plaintiffs whose injury was 18 miles from discharge did not have standing to sue over the discharge)).

Ultimately, the Comer II court recognized, even plaintiffs admit that global warming is attributable to numerous natural and man-made causes that interact cumulatively over the period of centuries to create climate effects:

The plaintiffs cannot allege that the defendants’ particular emissions led to their property damage. At most, the plaintiffs can argue that the types of emissions released by the defendants, when combined with similar emissions released over an extended period of time by innumerable manmade and naturally-occurring sources encompassing the entire planet, may have contributed to global warming, which caused sea temperatures to rise, which in turn caused glaciers and icebergs to melt, which caused sea levels to rise, which may have strengthened Hurricane Katrina, which damaged the plaintiffs’ property.

It is insufficient for the plaintiffs to allege that the defendants’ emissions contributed to the kinds of injuries that they suffered.

Slip op. at 20-21. The court concluded that such tenuous causation should not allow plaintiffs to send the defendants on a discovery odyssey “that will likely cost millions of dollars.”

The district court in Comer II also held that plaintiffs’ claims were non-justiciable under the political question doctrine as established in Baker v. Carr. Plaintiffs argued that Massachusetts v. EPA had rejected that argument. But the district court held that Massachusetts v. EPA was fundamentally different because it involved the proper construction of a congressional statute. Here, the policy judgments regarding greenhouse gas emission levels were expressly committed to the EPA. Indeed, the district court noted, the Supreme Court had stated “that it possessed neither the expertise nor the authority to evaluate the policy judgments that EPA offered as justification for refusing to regulate motor vehicle emissions, such as issues involving foreign relations.” Slip op. at 26. The Comer II court concluded:

[T]he plaintiffs are asking the Court, or more specifically a jury, to determine without the benefit of legislative or administrative regulation, whether the defendants’ emissions are “unreasonable.” Simply looking to the standards established by the Mississippi courts for analyzing nuisance, trespass, and negligence claims would not provide sufficient guidance to the Court or a jury. . . .

. . . The Supreme Court held that judgments concerning the reasonableness of greenhouse gas emissions are properly committed to the EPA, and if district courts were to make such judgments, those judgments would interfere and potentially conflict with the EPA’s actions.

. . . The Court finds that the claims presented by the plaintiffs constitute non-justiciable political questions, because there are no judicially discoverable and manageable standards for resolving the issues presented, and because the case would require the Court to make initial policy determinations that have been entrusted to the EPA by Congress.

Slip op. at 28-29.

The district court in Comer II also concluded that plaintiffs’ state law causes of action are preempted by the Clean Air Act and the EPA actions that it authorizes, relying primarily on American Electric Power Company v. Connecticut. That case had held that the CAA preempted a federal common law right to seek abatement of carbon dioxide emissions from power plants. The Comer II court reasoned that plaintiffs’ state law claims here required the court to do the same thing the federal common law claim would have in Connecticut: determine the reasonableness of the defendants’ greenhouse gas emissions. Accordingly, it held that the state law claims were similarly preempted.

The district court in Comer II also held that plaintiffs’ claims were barred by Mississippi’s three-year statute of limitations. Katrina had hit in 2005, but the lawsuit was filed in 2011. Plaintiffs argued that Mississippi’s savings statute operated to toll the statute of limitations. The savings statute gives a plaintiff a year to commence a new suit where the prior suit has been dismissed or abated because of a defect or other matter not affecting the merits.

The district court held the savings statute did not apply because there was a judgment of dismissal with prejudice entered in Comer I. Plaintiffs could have asked the U.S. Supreme Court for a writ of certiorari, but they did not. Accordingly, the judgment was final.

There is, however, a slim reed of hope for plaintiffs to file a Comer III. In ruling on the statute of limitations, the court concluded that plaintiffs’ allegations about their future risk for more severe storms and loss of property are not yet actionable, in part because plaintiffs did not seek injunctive relief. “As a result, the Court finds that the only actionable claims filed by the plaintiffs are the claims concerning Hurricane Katrina, and those claims are barred by the statute of limitations.” Slip op. at 33. Could another storm or another theory of injury produce a Comer III? It shouldn’t. But with these Plaintiffs, who knows?

Finally, the district court granted the defendants’ motion to dismiss regarding proximate cause, which is a required element of each of plaintiffs’ state law claims. Mississippi defines proximate cause as a cause “‘which in natural and continuous sequence unbroken by any efficient intervening cause produces the injury and without which the result would not have occurred.’” Slip op. at 34 (citation omitted). The court held that plaintiffs’ theory couldn’t meet this standard as a matter of law:

The assertion that the defendants’ emissions combined over a period of decades or centuries with other natural and man-made gases to cause or strengthen a hurricane and damage personal property is precisely the type of remote, improbable, and extraordinary occurrence that is excluded from liability.

Slip op. at 35.

Judge Louis Guirola’s opinion in Comer II is a strong reminder of the many difficulties that private plaintiffs would have trying to impose legal liability on companies for the purported effects of global warming. Although Ido not expect plaintiffs’ counsel to simply vacate the field in the wake of this opinion, the strength of the arguments against liability suggest why there has been no great rush of firms to file suits asserting these theories of liability.

As time ran out on the latest international climate change negotiations, an agreement was reached that includes all significant countries in the effort to reduce greenhouse gases. David Biello reports

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Simmering Planet Keeps Heating
From pheedcontent.com

Despite decades of warnings, greenhouse gas emissions continue to rise, warming the world. Can such pollution peak this decade? David Biello asks

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Changes to the sunspot cycle will have an impact on our weather and climate–but not a very big one. David Biello reports

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Capital Online Revenue Introduces Innovate Business Education Techniques


As an alternative to more traditional methods of learning about business and commerce, Capital Online Revenue introduces a new “earn and learn” training program.

Though business colleges remain in great supply, more and more Americans are turning to alternative sources of training and education, particularly during these days of economic upset and uncertainty. The simple truth is that with layoffs so prevalent and incomes so unsteady, investing in a full-time business education simply isn’t a viable option for many entrepreneurs. Instead, they are looking to business training modules that allow for on-the-job training, providing a way to master the tools of the trade even while making a profit. Capital Online Revenue continues to spearhead this movement with the introduction of its new “earn-and-learn” business training techniques.

Different from both traditional business education courses and even other online endeavors, Capital Online Revenue is a service that extends to customers a wealth of resources for learning about online business. What makes Capital Online Revenue services unique, however, is the fact that its training techniques are implemented in real-time. In other words, customers are both learning about online business and establishing their own online business both at the same time.

Though the notion of a make-money-online opportunity is hardly new, the methods being introduced by Capital Online Revenue are unlike anything yet devised by its competitors. What makes this service different is the emphasis it places on its training aspects. Though the long-term goal is for customers to establish their own online business, this comes hand-in-hand with an array of training resources and materials that include not only tutorial videos, but also a unique training component that includes one-on-one coaching from a team of live experts. Capital Online Revenue extends these services through a variety of media, including online chat, e-mail, and phone.

Capital Online Revenue introduction of these features has already met with enthusiasm from its current customer base. The service continues to define its niche, appealing to retirees, stay-at-home-parents, and working professionals who simply lack the time or resources necessary to attend more conventional business classes.