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Certain Environmental Cleanup Costs May Not Be Covered by Insurance Where Administrative Orders Were Not “Adversarial” or “Coercive” Enough



by Steven L. Hoch
Morris Polich & Purdy LLP - Los Angeles Office

July 28, 2014

Previously published on July 14, 2014

Here is a huge generality, but it’s mostly true. Environmental groups usually support the issue of environmental justice and they are mostly unimpressed with any smokestack industry attempt to follow various environmental rules. However, in the case of carbon trading, at least here in California, there seems to be a reversal in this generality. This is important on a national level as President Obama announced new rules last month for power plants meant to reduce greenhouse gas emissions. Among other things he directed the EPA to establish carbon pollution standards for both new and existing power plants. One of the questions is, if the EPA does establish such standards, will they adopt and / or recommend a carbon trading program like California has put in place?


 

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