California has enacted two new laws on corporate disclosure of direct and indirect greenhouse gas (GHG) emissions and climate-related financial risks. Senate Bill (SB) 253, the Climate Corporate Data Accountability Act, expands state GHG emissions reporting requirements to large U.S. companies doing business in California. SB 261 requires biennial disclosure of climate-related financial risks.Continue Reading California’s New Climate-Related Disclosure Laws
Allison Smith
Allison Smith focuses her practice in environmental and energy law. Her experience includes CEQA and land use litigation, conducting environmental due diligence, and permitting solar, wind, biomass, geothermal and gas-fired energy facilities. Allison also counsels companies on federal and state air quality and greenhouse gas regulations.
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Effective Immediately, California Energy Commission Jurisdiction Expands to Include Non-Thermal Projects Greater Than 50 MW
On June 30, 2022, California Governor Gavin Newsom signed Assembly Bill 205 (“AB 205”), which, among various other things, expands the siting jurisdiction of the California Energy Commission (“CEC”) to include non-thermal generating facilities, such as solar and wind projects, with a capacity of 50 megawatts (MW) or more. The CEC’s siting jurisdiction was previously…
Southern California Environmental Law Update
This is the first in a series of posts to provide the latest on environmental and legal developments affecting oil and gas operations and development and other industries in Los Angeles and adjacent counties, as well as the southern San Joaquin Valley. In this post, we’ll provide an update on legislation proposed in 2019 that affects industry in southern California, implementation of significant legislation previously adopted, and initiatives in Los Angeles to limit oil and gas operations.
AB 617 Implementation
The stated goal of AB 617 (Garcia, 2017) is to protect communities with disproportionate levels of air emissions and provide stricter penalties for certain infractions by regulated entities. In line with AB 617, the California Air Resources Board (CARB) is implementing the Community Air Protection Program and finalized its first annual selection of communities for participation in the Program in September 2018. Air districts are now identifying candidate communities to be considered for the second year of the Community Air Protection Program. CARB isn’t likely to vote on the selections until later in 2019.
In the first round of community selection, South Coast Air Quality Management District (South Coast Air District) chose (1) Wilmington/West Long Beach/Carson; (2) San Bernardino/Muscoy; and (3) Boyle Heights/East Los Angeles/West Commerce. On September 6, 2019, South Coast Air District’s Governing Board approved Community Emission Reduction Programs for these areas. Most of the plans set goals for action, and enhanced enforcement, rulemaking and incentive grants will follow. The plan for San Bernardino/Muscoy focuses on truck, rail bus traffic, warehouses (as an indirect source), concrete and asphalt batch plants, and rock and aggregate plants. The plan for Boyle Heights/East Los Angeles/West Commerce focuses on neighborhood and freeway truck and bus traffic, railyards, metal processing facilities, rendering facilities, auto body shops, and general industrial facilities, along with reducing exposure at schools, childcare facilities, community centers, libraries, and public housing projects.
Continue Reading Southern California Environmental Law Update
Exclusive Jurisdiction by the California Supreme Court Over Judicial Review of Thermal Power Plant Licenses Held Unconstitutional
The Alameda Superior Court recently declared portions of the Warren-Alquist Act unconstitutional in Communities for a Better Environment v. Energy Resources Conservation and Development Commission (CBE v. Energy Commission). The Court found that California Public Resources Code section 25531(a) and a portion of section 25531(b) ― provisions of the Warren-Alquist Act concerning judicial review ―…
Court of Appeal Rules Challenge to Constitutionality of Power Plant Licensing Appeals Process is Ripe for Judicial Review
California’s process to challenge thermal power plants will likely be put to the judicial test in the coming years. The California Court of Appeal has granted publication of its recent opinion in Communities for a Better Environment v. State Energy Resources Conservation and Development Commission, (Dec. 22, 2017, No. A141299) __Cal.App.5th __, which reverses the trial court’s dismissal of a complaint by environmental groups Communities for a Better Environment and Center for Biological Diversity (collectively “Communities”), challenging the constitutionality of the limited judicial review available for thermal power plant licenses issued in California. You can find our previous post detailing Communities’ complaint here.
In January 2014, the Alameda County Superior Court dismissed Communities’ claims that statutory provisions of California’s power plant siting law, the Warren-Alquist Act, violated article VI, section 10 of the California Constitution. Under this unique facet of the Warren-Alquist Act, any challenge to a decision by the California Energy Commission on a thermal power plant license must be appealed directly to the California Supreme Court. (Cal. Pub. Resources Code, § 25531(a).) The trial court sided with the Energy Commission and the California State Controller, who argued that the case was not grounded in any actual existing controversy among Communities and the Commission, sought an advisory opinion only, and was not ripe for review. The trial court concluded that Communities had failed to meet its burden to show how its complaint could be amended to state a justiciable cause of action, and, thus, it dismissed the matter with prejudice and entered judgment in favor of the Energy Commission and the Controller.Continue Reading Court of Appeal Rules Challenge to Constitutionality of Power Plant Licensing Appeals Process is Ripe for Judicial Review
Three Air Quality Regulatory Actions Ripe for Litigation in 2017
Which air quality regulatory actions are most likely to see noteworthy litigation activity in 2017? My colleagues Krista McIntyre and Rachel Cox are guest-blogging today with commentary on key areas we’re watching: the Clean Power Plan, Boiler MACT and Methane Rule.
All eyes are on the D.C. Circuit Court of Appeals for a decision on…
New Law Takes Aim at GHG Associated with California’s Water Sector
The recent wave of climate change legislation in California also included a new and not particularly well-known law aimed at curbing greenhouse gas (“GHG”) emissions associated with water use. SB 1425 will create a voluntary registry to track the water sector’s energy use and GHG emissions.
According to Senator Pavley, the author of SB 1425, “While some of the water-energy related climate pollution is already covered in the state’s cap-and-trade program (via the electricity generation sector), the state does not currently have a clear accounting of the total greenhouse gas emissions associated with the water system.”
SB 1425 requires CalEPA to oversee the development of a registry for GHG emissions that result from the “water-energy nexus” using the best-available data. Participation in the registry is voluntary and open to water agencies, large water consumers, businesses and others conducting business in the state. SB 1425 provides that entities participating in the registry may qualify for GHG emission reduction incentives.
Continue Reading New Law Takes Aim at GHG Associated with California’s Water Sector
What You Need to Know about the Proposed Revisions to Cap and Trade
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
U.S. Supreme Court Hears Oral Arguments on EPA’s Mercury and Air Toxics Standard
Yesterday the U.S. Supreme Court heard oral argument in Michigan v. EPA, a Clean Air Act case involving hazardous air pollutant regulations, with implications for fossil fuel-fired power plant owners and operators in California and across the country. Below you’ll find guest blogger Tom Wood‘s insight into the case and the arguments:
On Wednesday, the U.S. Supreme Court heard arguments from a large group of states challenging EPA’s approach in developing the Mercury and Air Toxics Standard (MATS) rule. The MATS rule imposes stringent hazardous air pollutant (HAP) standards on coal-fired and oil-fired power plants. The rule is expected to cost the industry nearly $10 billion per year to comply. 21 states and a variety of impacted industries argued to the court that EPA had not appropriately accounted for cost in determining whether to regulate hazardous air pollutants from these power plants.
In considering the Supreme Court case, it is important to understand that Congress established a different regulatory approach for power plants than for other industries. EPA regulates HAPs emitted from other industries by determining Maximum Achievable Control Technology (MACT) and requiring that it be implemented within a relatively short time frame (typically 3 years). After MACT is established, EPA is supposed to perform a residual risk determination and consider whether the risk after implementing MACT justifies additional requirements.
Continue Reading U.S. Supreme Court Hears Oral Arguments on EPA’s Mercury and Air Toxics Standard
U.S. Supreme Court Declines to Hear Dispute over California Low Carbon Fuel Standard
Today, the U.S. Supreme Court denied petition for review in Rocky Mountain Farmers Union v. Corey. In Rocky Mountain Farmers, the Ninth Circuit addressed the constitutionality of California’s Low Carbon Fuel Standard (LCFS), focusing specifically on whether the LCFS discriminates against out-of-state businesses and thus violates the dormant Commerce Clause. Read our September…
U.S. Supreme Court Curtails EPA’s Power to Regulate Greenhouse Gases under Clean Air Act
This morning, the U.S. Supreme Court issued a surprising decision in Utility Air Regulatory Group v. Environmental Protection Agency on the U.S. Environmental Protection Agency’s (EPA) authority to regulate greenhouse gases under the Clean Air Act (CAA). The Supreme Court has held that EPA cannot regulate stationary sources under the CAA Prevention of Significant…