Earth Island Institute, Inc. v. Southern California Edison

166 F. Supp. 2d 1304, 2001 U.S. Dist. LEXIS 13469, 2001 WL 995239
CourtDistrict Court, S.D. California
DecidedAugust 17, 2001
DocketCIV. 90CV1535-B(JFS)
StatusPublished
Cited by1 cases

This text of 166 F. Supp. 2d 1304 (Earth Island Institute, Inc. v. Southern California Edison) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Earth Island Institute, Inc. v. Southern California Edison, 166 F. Supp. 2d 1304, 2001 U.S. Dist. LEXIS 13469, 2001 WL 995239 (S.D. Cal. 2001).

Opinion

ORDER GRANTING JOINT MOTION TO AMEND CONSENT DECREE [247-1]

STIVEN, United States Magistrate Judge.

I. INTRODUCTION

On June 7, 2001, Plaintiffs Earth Island Institute (“Earth Island”), Donald May *1305 and David Jeffries (collectively “Plaintiffs”), together with Defendant Southern California Edison Company (“SCE”), filed a joint motion to amend the existing Consent Decree in this matter, wherein the parties requested that the Court replace the existing Section III.A. of the Consent Decree with a new Section III.A. The parties contend their revised Section III.A. is designed to accomplish effective wetlands restoration in the Southern California area as contemplated by the original Consent Decree.

On July 5, 2001, at 3:30 p.m., the Court heard oral argument on the parties’ joint motion. 1 This Court has reviewed all of the documents submitted in support of this motion and attached exhibits and hereby GRANTS the joint motion to amend the Consent Decree.

II. BACKGROUND

Originally filed in 1990, this case arose out of Defendant SCE’s operation of the San Onofre Nuclear Generating Station (“SONGS”). Alleging nuisance and violations of the Federal Water Pollution Control Act (“Clean Water Act”), 33 U.S.C. §§ 1251 et seq. (West 1986 & Supp.2001), Plaintiffs originally sought declaratory and injunctive relief, the imposition of statutory and civil penalties, other compensatory and punitive damages, the establishment of an environmental trust fund, and attorneys’ fees and costs. See Earth Island Institute v. S. Cal. Edison Co., 838 F.Supp. 458, 460 (S.D.Cal.1993). Specifically, Plaintiffs contend that SCE violated the Clean Water Act by discharging certain substances into the Pacific Ocean from its SONGS facility.

In August, 1992, the parties arrived at a four-part settlement that provided, inter alia, that SCE would spend $7.5 million on the acquisition and restoration of wetlands in the San Dieguito lagoon and river valley near Del Mar, California. On April 19 and 21, 1993, the Hon. Rudi M. Brewster, United States District Judge, heard Plaintiffs’ motion for approval of the settlement and consent decree, and on June 14, 1993, issued an Order granting Plaintiffs’ motion. Specifically, and as pertains to the instant motion, Section III.A. of the original Consent Decree requires SCE to acquire additional acreage, or the right to restore additional acreage, adjacent to or near the acreage previously acquired (and to be restored) under another restoration project in the San Dieguito area . 2 Thus, the restoration project described Section III.A. has come to be known as the “Additional Acreage” project and at the time the Consent Decree was entered into the cost for acquisition and restoration was valued at approximately $7.5 million. 3

SCE agreed to begin implementation of the Additional Acreage restoration project *1306 within five days of the effective date of the Consent Decreé, and it was originally anticipated that the restoration would be fully accomplished within two to three years thereafter. However, and despite the fact that in 1996 the California Public Utilities Commission permitted SCE to recover from ratepayers approximately $60 million for the entire wetlands restoration project, including the $7.5 million called out for the Additional Acreage restoration specifically contemplated by the Consent Decree, as late as December of 1997 SCE had yet to begin successful implementation the Additional Acreage project. Consequently, on December 17, 1997, and after several attempts at arbitration, the undersigned Magistrate Judge issued an Order directing SCE to set up, establish or otherwise make available a separate fund specifically designated for the Additional Acreage restoration project contemplated by Section III.A. of the Consent Decree. The undersigned further ordered that the fund consist of $7.5 million, plus interest at the rate of 5.25% per annum, compounding monthly and accruing from May 23, 1996, and continuing to accrue until the fund is fully expended for its intended purpose (or as the parties may otherwise agree or the Court may otherwise order). 4 The Court ordered that the fund be established no later than December 31, 1997. The Court projected that SCE would be in a position to go forward with the actual implementation of the Additional Acreage restoration plan no later than January 1, 1999 and, as such, ordered SCE to submit quarterly reports to the Court during the forthcoming year indicating the progress made toward said implementation. Subsequent Orders from this Court extended the period of time during which SCE would submit periodic reports.

From April 30, 1998 to September 1, 2000, SCE duty submitted periodic status reports to the Couzd; documenting its efforts to comply with Section III.A. of the Consent Decree, i.e. efforts at determining appropriate locations for wetlands restoration, conducting cost analyses, obtaining the requisite environmental impact studies, reports and agency approvals, and, most importantly, the submission of a Final Restoration Plan to the California Coastal Commission for approval. Further, each report provided a status of the amount of funds then present in the separate fund the Court ordered SCE to establish including interest accrued as of that time. As of the date of the final status report submitted on September 1, 2000, SCE had yet to present a Final Restoration Plan to the California Costal Commission as required by the Consent Decree. Moreover, it was discovered that the “fund” SCE established was not really a fund at all but, rather, a mere internal accounting measure. In short, Defendant had not physically segregated any funds whatsoever into a separate account.

On January 30, 2001, Plaintiff Earth Island Institute filed a motion to amend the *1307 Consent Decree, which was opposed both by the remaining Plaintiffs, Donald May and David Jeffries, and by Defendant SCE. Generally, Earth Island sought an amendment of the original Consent Decree that would (1) transfer the monies represented in the fund to Earth Island who would in turn administer the funds to restore wetlands, the location of which Earth Island would determine in its somewhat fettered discretion, or, in the alternative, (2) deem the funds held in a constructive trust by SCE relating back to December 17, 1997. The Court heard oral argument from all parties on February 27, 2001, and issued an Interim Order on March 1, 2001, directing the parties to further brief the constructive trust issue. On March 23, 2001, the Court issued an Order Imposing Constructive Trust holding that the funds are subject to a constructive trust relating back to December 17, 1997, and requiring SCE to account for and keep the funds in a separate interest-bearing account. According to SCE’s most recent calculation, on April 1, 2001, the amount held in the constructive trust totaled $9,713,640.00, and it presently continues to accrue interest at the rate of 5.25% compounded monthly.

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Bluebook (online)
166 F. Supp. 2d 1304, 2001 U.S. Dist. LEXIS 13469, 2001 WL 995239, Counsel Stack Legal Research, https://law.counselstack.com/opinion/earth-island-institute-inc-v-southern-california-edison-casd-2001.