Hog, I will help you... let's change the situation. Tennessee really has no remedy to force any type of regulation on Kentucky as far as EPA type regulation without the federal government.
Okay, lets say Corporation X which is domiciled in Kentucky, but Kentucky does not regulate pollution and in the example given, Title 40 and the EPA do not exist. Corporation X runs a few very large plants that are on Dale Hollow Lake, they emit large amount of every type of pollutant without regard to the harm to either the people in Kentucky or Tennessee.
Lets say the people that live on the Dale Hollow Lake in Tennessee sue Corporation X in a federal court for damages. Okay, completely possible as far as I know. The problem is multiple fold:
1. How much pollutant was discharged? there is no requirement to even keep records as there is no EPA and no state EPA to have the corporation comply, nor licensing, and testing under the example given.
2. How much of the pollutant that ended up on the property of Tennessee was from Corporation X, if there are many other corporations on the Kentucky side of the lake doing the same thing? No records, no testing, etc.
3. How do you prove all this stuff? Very hard as no records and many sources of potential pollution - who caused the damages.
4. Lets say Corporation X has no real assets and has no insurance as there is no requirement for them to have it because what they are doing isn't regulated - how does the person get remedy?
5. The State of Tennessee would still have no real ability to stop Corporation X or other corporations on the Kentucky side of the Lake from putting pollution into the Lake, so it would just keep happening - start no or limited asset Corporation X, lease plant from Corporation A, when Corporation X gets sued, start no or limited asset Corporation Y to lease the plant again.
6. The State of Tennessee has no ability to force Kentucky to regulate, which is why the EPA was created.
Do individuals have the ability to sue in federal court over damages regardless of whether Title 40 exists? I can't see why not, but as far as pollution coming in from the State of Kentucky under this circumstance there is basically no remedy that I can see for the State of Tennessee without the EPA to stop pollution from coming in. I guess war is an option.
This is the reason why a ton of manufacturing is done in China and other parts of the world - they than don't have to worry about the waste.