SAN DIEGO -- The annual New Year's Eve fireworks show over San Diego Bay has been canceled after an environmental group threatened to sue over pollution concerns, it was announced Tuesday.

The cancellation comes after the Coast Law Group, on behalf of the nonprofit Coastal Environmental Rights Foundation, sent a notice of intent to file a Clean Water Act lawsuit against the Port of San Diego over fireworks shows on the bay. The port and San Diego Port Tenants Association sponsor the annual shows.

The notice stated that firework displays on New Year's Eve and the Fourth of July release "substantial amounts of pollution into San Diego Bay" in violation of the Clean Water Act.

"This, of course, raises doubt about the future of the July 4th fireworks as well," said Sharon Cloward, president of the Port Tenants Association. "Fireworks over San Diego Bay may be a thing of the past."

"I think it's terrible," said one resident.

"Not to have fireworks for New Years, it sounds like it ruins the celebration," another resident told 10News.

Marco Gonzalez, an attorney with the Coast Law Group, which was retained to represent the Coastal Environmental Rights Foundation, said his clients aren't looking to shut down the shows, but want the Port of San Diego and Port Tenants Association to get the appropriate permit from the San Diego Regional Water Quality Control Board.

"People who think we are trying to stop these shows are wrong," Gonzalez said. "We are just trying to make them legal and safe for the environment."

Officials with the Port Tenants Association said they are working to address the concerns, but there isn't enough time to save next week's scheduled fireworks show.

"Unfortunately we were not afforded enough time for the New Year's Eve show," Cloward said. "It is a free public event that is supposed to be enjoyed by all San Diegans."

Gonzalez said he notified the port 50 days ago, but they "did nothing."

The legal notice outlines a number of hazardous compounds contained in fireworks that could pollute the bay including arsenic, strontium, lithium, calcium, sodium, barium, cadmium, copper, aluminum, titanium, lead, mercury and magnesium.

"Many of these compounds are often constituents of fireworks for the purpose of creating color and light effects," the notice reads. "These constituents have a potential to adversely impact and contribute to the degradation of water and sediment quality in San Diego Bay and the Pacific Ocean."

Gonzalez said other county agencies and cities that put on fireworks shows over water will be getting similar letters soon.

"We're very confident that we are on very solid grounds that the pollutants discharged by fireworks needs to be regulated," he said.

Cloward said she knows The Port has been conducting fireworks with out a permit for years, but it's not as simple as writing a check. "There's a lot of requirements that need to be negotiated and we ran out of time. There would be no way to do that by New Years," she told 10News.

Cloward said they are working on a permit for 2010. Checks went out Tuesday refunding all the businesses financing this years $17,000 fireworks display.

Three years ago, SeaWorld temporarily suspended its nightly fireworks show in response to complaints that the pyrotechnics are polluting Mission Bay. The theme park was able to resume the shows after securing a permit from the SDRWQB. Under the terms of the permit, SeaWorld was required to monitor the water and sediment of Mission Bay.