When Ann Carlson began teaching at UCLA School of Law, there were a lot of empty seats in her environmental law classes.
But over time, as the prevalence of environmental issues and regulations has increased, she’s become quite a draw.
Ten years ago, 143 students signed up for environmental law courses; last year, 246 took classes in the subject. There were five classes taught 10 years ago; today there are eight.
“I have never seen such enthusiasm for environmental law like there is today,” said Carlson, an environmental law professor for 14 years.
Environmental lawyers have also become more sought after by local firms, which in recent years have created and expanded land use, climate change and alternative energy practice groups.
This special section of the Business Journal profiles the leading environmental attorneys working in Los Angeles, and lists all the others at L.A.’s top 50 law firms with environmental law practice groups.
A key driving force in the growth of firms’ environmental departments has been California’s role as a leader in enacting legislation on environmental issues.
In addition, industry insiders said the state’s comprehensive Global Warming Solutions Act of 2006, otherwise known as AB 32, has been a significant generator of business for firms and their environmental lawyers. Attorneys are now advising clients doing business in California on the requirements outlined by the law. These include a program that limits the amount of pollutants that can be emitted and creates a “cap-and-trade” marketplace, which allows companies with low emissions to sell “credits” to businesses that exceed the limits.
“Compliance with new and proposed legislation and regulation is something that is developing rapidly,” said Lyndon Parker, an L.A.-based recruiter with Mestel & Co. “And that ties into energy, real estate and land development. There is always going to be a crossover where some environmental impact will cause all areas of the law to intersect.”
The Global Warming Solutions Act mandates a statewide 20 percent reduction in greenhouse gas emissions by 2020, and the California Air Resources Board will begin to enforce the greenhouse gas emission limitations in January 2010. Therefore, lawyers are working with clients to navigate the complex provisions as the law takes effect.
Mayor Antonio Villaraigosa and the Los Angeles City Council have also pushed a green agenda by launching the Green LA plan, which aims to reduce the city’s greenhouse gas emissions by 35 percent by 2030.
“A lot of work is going to be regulatory compliance,” said Daniel Selmi, an environmental law professor at Loyola Law School. “There will be a lot of clients that are going to have to start being concerned about emissions. You will see midsize companies looking to environmental lawyers for how to comply.”
With increasing mandates on climate change issues, clients are going to call upon environmental lawyers to understand and meet regulations, and to fight some of the requirements.
As a result, the stakes have grown higher and law firms are finding that environmental litigation can command higher hourly billing rates.
“Firms have considered environmental work lower-rate work,” Parker said. “Now, at many of the large firms, it can be profitable in terms of fee generation because so many businesses are finding that environmental issues have become bet-the-company litigation.”
Project structuring
Transactional lawyers are also capitalizing on green issues.
Because of requirements to reduce greenhouse gas emissions, alternative energy providers will be cutting deals with utility companies looking for cleaner sources of power. That’s where transactional lawyers come in.
“Projects will be in the works or will come on line and require financing and structuring,” said Carlson.
It’s a growth sector, because restrictions on greenhouse gas emissions and promotion of alternative energy are likely to become more prevalent over time.
Land-use lawyers are also finding their own environmental niche as their real estate developer clients are focusing on green buildings.
In 2000, the U.S. Green Building Council adopted requirements to promote environmentally friendly buildings. Developers often look to their lawyers to ensure their buildings receive Leadership in Energy and Environmental Design certification.
Some legal recruiters said the number of environmental lawyers practicing in Los Angeles leaves room for more.
Plus, the landscape is shifting as new rules take effect, and depending on the philosophies of the next administration, even more requirements could be coming down the road.
“It’s one of those areas where people are organizing new departments,” said Dan Hatch, a partner with search firm Major Lindsey & Africa LLC. “It’s very amorphous. Local environmental lawyers are thinking of going to a national firm because they think they will have to be at a national firm to tackle those issues.”
