Bertha owns land located outside Centre City. Bertha sells the land to Disposal & Recycling, Inc, which establishes a hazardous waste disposal facility at the site. Disposal & Recycling accepts only waste transported by Eco Trucking Inc exclusively from
Federated Industries, Inc Several years later, Disposal & Recycling closes its facility and sells the land to Garden Variety Retail Corporation, which builds a Home & Yard store on the site. Meanwhile, some of Centre City's citizens complain to the Environmental Protection Agency (EPA) that the city's municipal water supply is polluted. The EPA investigates and discovers that the sources of the pollution are leaks of hazardous waste from what is now the Home & Yard site. The EPA cleans up the site. Who can be held liable for the cost of cleaning up the site? What standards must Centre City meet regarding the water?
Disposal & Recycling, Eco Trucking, Federated Industries, or Home & Yard may be held liable for the cost of cleaning up the site.
Under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), or Superfund, the EPA can recover the cost of cleaning up a leaking hazardous waste disposal site from the party who generated the waste disposed of at the site, the party who transported the waste to the site, the party who owned or operated the site at the time of the disposal, or the current owner of the site. These potentially responsible parties are jointly and severally liable: a party who generates only a fraction of the waste, for example, can be held liable for the entire cleanup cost. Of course, whoever is held liable for the cost can bring a contribution action against any other person who is, or who may be, liable for a percentage of the expense.
Under the Safe Drinking Water Act, Centre City, as an operator of a municipal water supply system, is required to meet the EPA's standards for the levels of pollutants in public water systems. Centre City must use the best available technology that is economically and technologically feasible to meet these standards.
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