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In less than two weeks, California voters will decide whether to pass Proposition 10, which would allow cities and counties across the state to expand rent control.

Supporters of the measure say it will protect tenants during a time of unprecedented housing affordability problems in California. Opponents argue that the measure will stall housing construction—the levels are already low—and further increase costs.

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Pillsbury attorneys Anthony Cavender and Amy Pierce recently published their Law360 article titled 6th Circ. Creates Deep Divide Over Reach Of CWA. Their article discusses recent decisions from the federal appellate courts that have raised new questions about the scope of Clean Water Act-related (CWA) issues that once seemed settled. These issues include, for example

  • Whether discharges into groundwater that reach navigable waters are subject to the jurisdiction of the Environmental Protection Agency or the U.S. Army Corps of Engineers and, therefore,  require the issuance of a National Pollution Discharge Elimination System permit.
  • Whether a regulated “point source” can also include landfills and other waste disposal and storage areas used for handling coal ash waste.
  • Whether there are temporal limitations to the invocation of “ongoing violations” of the CWA when the initial violations were corrected years ago.

These decisions have created uncertainty within the regulated community affecting many industries and commercial activities. For that reason, and the fact that petitions for certiorari are piling up at the U.S. Supreme Court, the Court is expected to decide to review these cases and resolve this stark conflict between the circuits.

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On September 21, 2018, the U.S. Court of Appeals for the Ninth Circuit decided the case of Tin Cup, LLC v. U.S. Army Corps of Engineers. A divided panel of the Court of Appeals (although all members concurred in the result) held that legislative language in a 1993 appropriations act does not require the U.S. Army Corps of Engineers (Corps) to continue to use its 1987 Clean Water Act (CWA) wetlands guidance beyond 1993. The Ninth Circuit noted that it approaches the interpretation of budget bills somewhat differently.

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In Hurricane Florence: Maximizing Insurance Recoveries, Pillsbury’s Joe Jean and Peter Gillon discuss the immediate and proactive steps affected businesses and other organizations should take to maximize their insurance recovery.

1. Obtain and Review Your Insurance Policies.
2. Assess All Possible Coverages.
3. Place All Insurers on Notice.
4. Document and Mitigate Your Losses.
5. Detail Your Business Interruption and Contingent Business Interruption Claims.
6. Engage Experts.
7. Follow the Policy to Preserve the Claim.
8. Consider Government Funds for Nonprofits Providing Critical Infrastructure and Essential Services.

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The Clean Water Act (CWA) authorizes citizen suits to enforce the provisions of the law which requires a permit to discharge a pollutant from a point source into navigable waters. Earlier this year, the U.S. Court of Appeals for the Fourth Circuit, in Upstate Forever v. Kinder Morgan Energy Partners, held that discharges into groundwater, not surface water, could also trigger the regulatory authority of the CWA if there was a hydrological connection between the groundwater and the navigable, surface, waters. In its a closely-watched case, Sierra Club v. Virginia Electric & Power Company (“VEPCO”), which also involved discharges into groundwater, the Fourth Circuit was bound by this this new and controversial precedent (a Supreme Court review is very likely), but the plaintiffs in the VEPCO case could not establish that the landfill and the settling ponds used by VEPCO were “point sources”—another important element that must be established.

Unless this decision is reversed by an en banc Fourth Circuit ruling or the Supreme Court, VEPCO will avoid millions of dollars in cleanup costs, and this is also a restatement of the limiting conditions placed on CWA citizen suits.

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In Hurricane Florence: Is Your Company Prepared for a Disaster?, Pillsbury’s Joe Jean, Tamara Bruno, and Janine Stanisz discuss how important it is for companies to understand how their insurance policies cover the company’s risk in the event of an unexpected or catastrophic loss. Having the correct insurance policies in place is only the first step.

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It was already the case that in order to offer to install California residential solar energy systems, a contractor must be licensed by the California Contractors State License Board (CSLB) and must hold an appropriate specialty classification. Under AB 1070 enacted late last year (Chapter 662, Statutes of 2017), special consumer protections are being deployed for the benefit of homeowners. Those protections are steadily rolling out.

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In Is the Pendulum Swinging on Agency and Government Contractor Cooperation?, Pillsbury attorneys Mike Rizzo, Glenn Sweatt and Kevin Massoudi discuss comments from the Department of Defense as well as recent good faith and fair dealing court decisions that point to and encourage improved contractor/government relationships. Their key takeaways include

  • Government officials are actively encouraging collaboration with, and less antagonism of, industry contractors.
  • Recent Boards and Court of Federal Claims construction decisions suggest a growing trend of awarding damages to contractors when the government breaches the duty of good faith and fair dealing.
  • Contractors seeking to take advantage of these trends should explore formal partnering with their government  clients to reduce future claims and early alternative dispute resolution options to resolve existing disputes.

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In The Fiscal Year 2019 NDAA Imposes Government-Wide Limitations on the Use of Lowest-Price Technically Acceptable Procurements, Pillsbury attorneys Dick Oliver and Aaron Ralph are optimistic that contractors will soon have additional legal authority to demonstrate to civilian agencies that a best value tradeoff process should be employed.

  • Congress’ trend of limiting the use of the much-derided lowest price, technically acceptable (LPTA) procurement process continues.
  • Many of the Department of Defense’s (DoD) limitations on the use of LPTA process will be extended to civilian agencies.
  • The recently enacted John S. McCain National Defense Authorization  Act (NDAA) requires that the Federal Acquisition Regulation be updated by December 11, 2018, to incorporate these limitations.

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On August 24, the U.S. Court of Appeals for the Ninth Circuit, in U.S. ex rel. Scott Rose, et al., v. Stephens Inst., dba Acad. of Art Univ., affirmed the U.S. District Court for the Northern District of California’s order denying the defendant’s motion for summary judgment in a qui tam action brought under the False Claims Act. The Ninth Circuit address questions of law posed in the wake of the U.S. Supreme Court’s decision in Universal Health Serv., Inc. v. United States ex rel. Escobar, regarding the tests for establishing falsity and materiality.

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