Last month, California legislators introduced three bills that relate to hydraulic fracturing. On February 20, 2013, Senator Hannah-Beth Jackson introduced SB 395 to regulate water produced during fracking operations. The other two bills were introduced in the Assembly and relate to DOGGR’s approval of well drilling activities. On February 11, 2013, Assembly Member Marc Levine introduced AB 288 to require fracking-specific approval. On February 22, 2013, Assembly Member Das Williams introduced AB 982 to require an agency-approved groundwater monitoring plan for fracking operations.
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Industries
South Coast Air Quality Management District Holds Third Rule 1304.1 Working Group Meeting
The South Coast Air Quality Management District held its third working group meeting yesterday for the District’s proposed Rule 1304.1. The proposed Rule would impose substantial new fees on developers repowering electrical generating facilities within the District, which encompasses Orange County and parts of Los Angeles, Riverside, and San Bernardino Counties. Under the proposed…
DOGGR Schedules the Second of Three Public Workshops on its Fracking Regulations
The Department of Conservation, Division of Oil, Gas and Geothermal Resources (DOGGR) today announced the second of three public workshops on its draft discussion regulations governing hydraulic fracturing. The agenda includes pre-fracking well testing, advance notification, monitoring, and disclosures, trade secrets and handling relating to fracking fluids.
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California Lawmakers Discuss Proposed Fracking Regulations
On February 12, California lawmakers convened a joint legislative hearing to discuss the proposed regulations governing hydraulic fracturing in California. For further information about the proposed regulations, see the December 19 post. The lawmakers heard from four panels, including the Department of Conservation’s Division of Oil, Gas and Geothermal Resources (DOGGR), Department of Toxic Substances Control, State Water Resources Control Board, Air Resources Board and various local agencies, stakeholders and environmental organizations.
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California Air Resources Board Issues Results of Quarterly Cap and Trade Allowance Auction
On February 19, 2013, the California Air Resources Board held its second auction of greenhouse gas (GHG) emission allowances for its Cap and Trade Program. This was the first quarterly auction for 2013; the first auction was held November 14, 2012. All ‘covered entities’ – GHG emitters regulated under Cap and Trade – were…
DOGGR to Hold the First of Three Public Workshops on its Fracking Regulations
The Department of Conservation, Division of Oil, Gas and Geothermal Resources (DOGGR) announced it will hold the first of three stakeholder workshops next week for input on the discussion draft regulations governing hydraulic fracking that it released in December. The first workshop will be held on February 19 in Los Angeles. DOGGR also plans to hold workshops in Bakersfield and Sacramento.
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California Air Resources Board Issues AB 32 Report
The California Air Resources Board has released its first semi-annual report to the California Legislature on the agency’s AB 32 programs, designed to meet the state’s goal of reducing greenhouse gas emissions to 1990 levels by 2020. The report details recent developments and anticipated milestones for three of CARB’s major AB 32 initiatives: the cap and trade program, the low carbon fuel standard (LCFS), and the advanced clean cars program. For our primer on the cap and trade program, see our earlier post. Some highlights from these programs in 2012 and things to look for in 2013:
- The first auction of cap and trade greenhouse gas emission allowances was held in November 2012, raising $233 million for the state’s investor-owned utilities (for the benefit of ratepayers) and $55 million for the state Greenhouse Gas Reduction Fund. The next auction will take place February 19, 2013 and the first allowance price containment reserve sale will be on March 8, 2013.
- A trial court decision is expected in 1Q 2013 in the lawsuit challenging the offset protocols adopted for the cap and trade program, Citizens Climate Lobby and Our Children’s Earth Foundation v. CARB.
- Sacramento Superior Court will hear arguments at the end of May 2013 in California Chamber of Commerce v. CARB, which challenges the cap and trade auction mechanism.
- In early 2013, Governor Brown will consider the proposed linkage between California’s cap and trade program and Quebec’s program. Public comments will be accepted on the package considered by the Governor.
- Proposed amendments to the cap and trade regulation will be released summer 2013.
- Development of new offset protocols is anticipated for spring 2013.
- Further study has been initiated on several hot topics in cap and trade – leakage, industry benchmarks for efficiency, and affects of cap and trade on the agricultural sector, including food processors.
- For the LCFS, hearings will be held in spring 2013 to add fuel pathways and crude oil carbon intensities.
- Expect amendments to the LCFS in fall 2013, with rulemaking workshops to begin in the first half of 2013. Workshops topics will include specifications for alternative diesel fuel blends, including biodiesel.
- Related to the advanced clean cars program, CARB withdrew its Clean Fuels Outlet regulation in December 2012, which would have required fuel providers to build hydrogen stations once a certain number of fuel cell vehicles were in the California market. Proposed legislation – AB 8 – would reauthorize various clean air fees to fund the hydrogen fueling network. The Assembly Transportation Committee held its first hearing on AB 8 today.
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Center for Biological Diversity Files Another Fracking Suit Against DOGGR
The Center for Biological Diversity filed another lawsuit yesterday in Alameda County Superior Court against the California Department of Conservation, Division of Oil, Gas, and Geothermal Resources (DOGGR) challenging permits issued for oil and gas well operations that allow hydraulic fracturing. The Center alleges in the complaint that DOGGR’s issuance of permits for well operations that include fracking violates the state’s Underground Injection Control (UIC) program and Public Resources Code.
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Stoel Rives Publishes Primer on the Basics of California’s Cap and Trade Program
California’s Cap and Trade Program is now a reality. Businesses needs answers to questions arising from this complex program. Now that the State of California has held its first auction of carbon allowances under the Program and the initial compliance period of 2013-2014 is now underway, Stoel attorneys Michael Mills, Tom Henry and Allison…
Alaska Fracking Regulations Could Influence DOGGR’s Proposed Fracking Rules
On December 20, the Alaska Oil and Gas Conservation Commission (AOGCC) released proposed regulations governing hydraulic fracturing. The regulations would require AOGCC approval to conduct fracking activities. This is in contrast to the California Department of Conservation’s Division of Oil, Gas, and Geothermal Resources Division (DOGGR) recently proposed “discussion draft” of potential fracking regulations (see…