This is the third update on environmental regulatory and legal developments in Los Angeles and adjacent counties, as well as the Southern San Joaquin Valley.  We welcome your comments and updates.

South Coast Air Quality Management District

*Governing Board Shift:  New Governing Board Member Sheila Kuehl replaced Mike Antonovich, returning the Board to a Democratic Majority.  Ms. Kuehl calls upon the South Coast Air Quality Management District (District) to use its full regulatory power, and she has strong ties with the California Legislature.  New emphases now include further regulations of stationary facilities, such as warehouses and shopping malls that are considered “indirect sources” of air emissions because they attract emissions from cars and trucks, as well as a termination of the RECLAIM Program.  Questions on the latter include when (2025, 2023, 2031?), treatment of credits from shutdowns, and how companies that invested in long-term credits will be dealt with.  In addition, the District wants to achieve the NOx shave under RECLAIM and at the same time sunset the Program.  Collaterally, the District is pushing the California Air Resources Board (CARB) and US EPA to do their “fair share” to regulate mobile sources so that further efforts to improve air quality will not be piled on the backs of stationary businesses.Continue Reading SOUTHERN CALIFORNIA ENVIRONMENTAL UPDATE #3 – APRIL 24, 2017

In a narrow win for plaintiff Wild Fish Conservancy (“Plaintiff”), the U.S. District Court for the Eastern District of Washington held that the biological opinion (“BiOp”) for the Leavenworth National Fish Hatchery (“Hatchery”) was arbitrary and capricious because the National Marine Fisheries Service (“NMFS”) failed to adequately consider the effects of climate change.

This case concerns a Hatchery located on Icicle Creek about three miles south of Leavenworth, Washington.  The purpose of the Hatchery is to replace spawning habitat impacted by construction of the Grand Coulee Dam, and it is operated by the U.S. Fish and Wildlife Service (“FWS”) and the Bureau of Reclamation (“BOR”).  Icicle Creek is home to two Endangered Species Act (“ESA”) listed species: the Upper Columbia River Chinook salmon and the Upper Columbia River steelhead.Continue Reading Up the Creek Without a Paddle: District Court Holds that Biological Opinion Must Consider Climate Change Impacts

On July 14, 2016, the California Environmental Protection Agency (“EPA”) announced a “landmark set of regulations to strengthen workplace and environmental safety at oil refineries across the state.”  The refinery safety rules consist of two sets of regulations:  one amending the California Occupational Safety & Health (“OSHA”) worker safety regulations as they apply to refineries, and the other revising the California Accidental Release Prevention program (“CalARP”) regulations.  The regulations implement recommendations from Governor Jerry Brown’s Interagency Working Group on Refinery Safety, which was convened following a chemical release and fire at a refinery in August 2012.
Continue Reading Proposed Oil Refinery Regulations Tackle Safety Concerns

Late Tuesday, the California Air Resources Board (ARB) released draft amendments to the state’s cap and trade regulation, including revisions to the current program in place through 2020, an extension of the program through 2030, and setting the stage for continued emissions reductions under the program through 2050.  ARB’s proposed amendments come in the middle of a recent milieu of uncertainty:  pending litigation challenging the legality of the existing program, an opinion from Legislative Counsel that ARB lacks authority under AB 32 to continue cap and trade past 2020, unprecedented weak demand at the most recent allowance auction, and legislation to establish a statutory emissions reductions mandate for 2030 still in process this session.  With all of these balls in the air, ARB has doubled down and drafted regulations dropping the program’s emissions cap from 334.2 million metric tons (MMT) of CO2e in 2020 to 200.5 MMT in 2030, with major elements of the cap and trade regulation continuing in effect past 2020 to achieve the emissions reductions.
Continue Reading What You Need to Know about the Proposed Revisions to Cap and Trade

June 3, 2016 was the final deadline for oil- and gas-related bills introduced in the 2015-2016 legislative session to move through their house of origin.  Below is a summary of those bills, many of which relate to natural gas storage following the Aliso Canyon natural gas well leak.  Stoel Rives is monitoring these bills and will provide updates as the bills move through the legislative process.
Continue Reading Updated Status of Oil- and Gas-Related Bills Proposed in California’s 2015-2016 Legislative Session

Not to be outdone by its federal counter-parts, the California Air Resources Board (“ARB”) released Greenhouse Gas Emission Standards for Crude Oil and Natural Gas Facilities (“proposed rule”) for methane emissions on Tuesday, May 31, following a slew of recent federal regulations targeting reduction of methane emissions.  Cal. Code Regs. tit. 14, §§ 95665-95676 (proposed).  The federal Bureau of Land Management released proposed regulations for reducing waste and methane emissions in oil and gas operations in January 2016.  Then, in May 2016, the U.S. Environmental Protection Agency also began regulating methane when it released final regulations to curb emissions of methane and volatile organic compounds from additional new, modified, and reconstructed sources in the oil and gas industry.

While methane is the current emissions target for regulators’ greenhouse gas reduction efforts, the oil and gas sector is the industry target.  The proposed rule is part of California’s plan to reduce emissions from short-lived climate pollutants, including methane emissions, by 40-45% by 2025.  This follows the Obama Administration’s similar methane emissions reduction goal.Continue Reading The Other Shoe Just Dropped on Methane Emissions from the Oil and Gas Industry

On June 4, 2016, the City of Los Angeles rolls out its much-discussed Clean Up Green Up (CUGU) pilot program for three communities: Boyle Heights, Wilmington and Pacoima. Ordinance 184246, approved by Mayor Garcetti on April 22, 2016, adds new rules to the City’s Planning and Zoning Code and Building Code. CUGU is controversial. Communities and their advocates say that the cumulative environmental impacts from multiple businesses in these neighborhoods expose residents to higher levels of pollution than other City neighborhoods. They also say the program is designed to help neighborhood businesses obtain permits and comply with regulations. Businesses and their advocates assert that the program has abandoned promises for meaningful incentives and assistance to local businesses. They also say that the program will discourage business improvement because major improvements or additions bring down the new regulations on the heads of existing businesses.
Continue Reading Clean Up Green Up—Supplemental Use Districts—more regulation for three LA City Neighborhoods

California’s Office of Environmental Health Hazard Assessment (“OEHHA”) added Bisphenol A (“BPA”) to the Proposition 65 (“Prop 65”) list as a chemical known to cause reproductive toxicity, on May 11, 2015. Prop 65 provides companies with a one year grace period before having to comply with newly listed chemicals, meaning that as of May 11,

Earlier this week, environmental consultant Susanne Heim of Panorama Environmental and Stoel Rives water lawyer Wes Miliband hosted the second part of the California Water Webinar series about the Sustainable Groundwater Management Act (SGMA).

In this webinar, Susanne and Wes covered implications of the recently adopted emergency regulations to amend groundwater basin boundaries, as well