Supreme Court makes it harder for EPA to police sewage discharges
U.S. Court News
A divided Supreme Court on Tuesday made it harder for environmental regulators to limit water pollution, ruling for San Francisco in a case about the discharge of raw sewage that sometimes occurs during heavy rains.
By a 5-4 vote, the court’s conservative majority ruled that the Environmental Protection Agency overstepped its authority under the Clean Water Act with water pollution permits that contain vague requirements for maintaining water quality.
The decision is the latest in which conservative justices have reined in pollution control efforts.
Justice Samuel Alito wrote for the court that EPA can set specific limits that tell cities and counties what can be discharged. But the agency lacks the authority “to include ‘end-result’ provisions,” Alito wrote, that make cities and counties responsible for maintaining the quality of the water, the Pacific Ocean in this case, into which wastewater is discharged.
“When a permit contains such requirements, a permittee that punctiliously follows every specific requirement in its permit may nevertheless face crushing penalties if the quality of the water in its receiving waters falls below the applicable standards,” he wrote.
One conservative justice, Amy Coney Barrett, joined the court’s three liberals in dissent. Limits on discharges sometimes still don’t insure water quality standards are met, Barrett wrote.
“The concern that the technology-based effluent limitations may fall short is on display in this case,” Barrett wrote, adding that “discharges from components of San Francisco’s sewer system have allegedly led to serious breaches of the water quality standards, such as ‘discoloration, scum, and floating material, including toilet paper, in Mission Creek.’”
The case produced an unusual alliance of the liberal northern California city, energy companies and business groups.
The EPA has issued thousands of the permits, known as narrative permits, over several decades, former acting general counsel Kevin Minoli said.
The narrative permits have operated almost as a backstop in case permits that quantify what can be discharged still result in unacceptable water quality, Minoli said.
With the new restrictions imposed by the court, “the question is what comes in place of those limits,” Minoli said.
Alito downplayed the impact of the decision, writing that the agency has “the tools needed” to insure water quality standards are met.
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Workers’ Compensation Subrogation of Administrative Fees and Costs
When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.
In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.
In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.
