EPA and California may recover $32 million in cleanup costs from a massive hazardous waste spill in the Sierra Nevada foothills that released toxic amounts of arsenic into local groundwater supplies, a federal appeals court ruled Monday. In a divided ruling, the 9th U.S. Circuit Court of Appeals said the United States and California were not liable for the costs of cleaning up the Lava Cap Mine Superfund site in Nevada City, Calif.

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