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A unanimous Supreme Court held, on March 21, 2012, that parties who receive administrative compliance orders from the U.S. Environmental Protection Agency ("EPA") under the authority of the federal Clean Water Act are entitled to "pre-enforcement review," that is, they may bring lawsuits to challenge the jurisdictional basis for such orders in court. When EPA determines that a person is discharging a pollutant into the "waters of the United States" without a permit, the Clean Water Act requires EPA either to issue a compliance order or to file a lawsuit to enforce the Act's requirements. Compliance orders have become a preferred tool for EPA to obtain quick remediation through "voluntary compliance." Parties who questioned the government's assertion of federal jurisdiction over their property either had to obey the government's compliance order, thereby losing the benefits of their ownership of their land, or refuse to comply, thereby risking ruinous liability for penalties of up to $37,500 per day if EPA decided to sue and the court decided that the government had properly asserted federal jurisdiction.

California agencies and private enforcers are likely to pay close attention to whether construction projects are in compliance with the detailed requirements of California's revised construction stormwater general permit, which took effect on July 1, 2010. The permit applies to all construction activities of one acre or more, except for projects in the Lake Tahoe watershed, which are subject to a separate permit. The revised permit has several provisions which will especially challenge those who are not prepared. Some experts estimate that compliance could increase the cost of a project by 10% or more.

Operators of Stationary Refrigeration Systems are Subject to New California Air Regulations. As of January 1, 2011, owners and operators of stationary refrigeration systems (other than air conditioners) in California may be subject to a new California Air Resources Board ("CARB") regulation in addition to EPA's regulation. Businesses in the Los Angeles Area may be subject to new rule for air conditioners and a revised rule for stationary refrigeration systems adopted by the South Coast Air Quality Management District ("SCAQMD").