AWWA ACE91119

In many states, when a water source is contaminated, the water supplier--whether public or private--must demonstrate that it has sought out the persons responsible for the pollution and exhausted legal means of recovering the costs of assessment and cleanup, before the water supplier can try to recoup the losses through rate increases. Good faith cost recovery may include attempts to recover cleanup costs from insurers as well as from polluters. This article describes an array of statues and common law causes of action available to the public water utility to recover costs from third parties who are potentially responsible for source water contamination assessment and cleanup costs. Discussed are hazardous waste litigation options, including CERCLA, RCRA, and the Clean Water Act. In addition, several states have statutory provisions for cost recovery by private parties; as an illustration of such statutes, the Massachusetts Oil and Hazardous Material Release Prevention Act is described. Other legal routes for cost recovery include nuisance action, charges of negligence, strict liability, and trespass.