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,

February 19, 2016 was the deadline for lawmakers to introduce legislation to the 2015-2016 California Legislative Session, and the Legislature’s ever-growing appetite for regulating the energy industry in California shows no signs of being satiated anytime soon.  More bills than ever proposing to add new regulations on the oil and gas industry have been introduced.  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.

ASSEMBLY BILLS

AB 1759 (Bonta): Hydrogen fluoride: notice of use: substitution

This bill would require an owner or operator of an oil refinery that uses hydrogen fluoride, hydrofluoric acid, or modified hydrofluoric acid in its operations to send out biannual notices to each business, school, child care facility, library, church, community facility, senior facility, and residence within a 3.5-mile radius of the refinery.  The cost of the notice must be paid by the owner or operator of the refinery, and the owner or operator must file a copy of the notice and distribution list with the California Air Resources Board.Continue Reading Status of Oil- and Gas-Related Bills Proposed in California’s 2015-2016 Legislative Session

Despite the wet start of 2016, many parts of California continue to face severe water shortages.  The state has grown ever more tapped with groundwater production wells as Californians seek to utilize aquifers to meet their water needs.  However, experts have warned that this modern-day “gold rush” for water from underground aquifers may carry serious consequences for the environment and the future, as well as groundwater users (particularly as implementation of the Sustainable Groundwater Management Act gets underway).

In response, Senator Lois Wolk (D-Davis) has introduced legislation that will halt the development of new water wells in aquifers at risk of overdraft. The Aquifer Protection Act would require cities or counties overlying groundwater basins designated as high- or medium-priority under the Sustainable Groundwater Management Act (Water Code section 10722.4) to require conditional use permits for new water wells.  The bill prohibits new well permits in basins of critical overdraft and basins that are in probationary status.

Cities and counties can avoid the requirements of the Aquifer Protection Act by passing their own limits, which is easier said than done given the hotly contested fights over access to water and water rights. Wells yielding small amounts of water and replacement wells are exempt from the Act.
Continue Reading Aquifer Protection Act – Slowing the Flow from California Aquifers

On Wednesday, February 10, Senators Dianne Feinstein and Barbara Boxer (Dem.-California) introduced a draft bill with the explicit purpose to “provide short-term water supplies to drought-stricken California and provide for long-term investments in drought resiliency throughout the Western United States.”  Entitled, “California Long-Term Provisions for Water Supply and Short-Term Provisions for Emergency Drought Relief Act” (hereinafter “bill”), the 184-page bill lays out mandates for the use of funds for water projects, water infrastructure improvements and storage, emergency drought relief, and protection of listed and endangered species.

Technology and financing for water supply and re-use are also focuses of the bill. Notably, the bill supports the use of desalination and water recycling.  With regard to desalination, the bill identifies 26 desalination projects throughout California that are capable of producing more than 330,000 acre-feet of water per year.  The bill proposes adding long-term funding to support desalination projects.  In addition, the bill recognizes the need for conservation and water re-use by authorizing the expenditure of $200 million in funds for the Bureau of Reclamation’s water recycling and reuse program.  This money would be used to fund projects to reclaim and reuse wastewaters and naturally impaired ground and surface water.Continue Reading Fish versus Farms: Proposed Federal Legislation Seeks a Balance for California Water Supplies

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

California’s unique geography and climate have allowed the State to become one of the most productive agricultural regions in the world. Over a third of the country’s vegetables and two-thirds of the country’s fruits and nuts are grown in California. In an average year California’s agricultural industry irrigates 9.6 million acres using roughly 34 million acre-feet of water.

California’s growing demand for water has increased the pressure on California’s agriculture industry to use water more efficiently. To encourage the efficient use of agricultural water, the Department of Water Resources (“DWR”) operates the Agricultural Water Use Efficiency Grants Program (“Grant Program”). The Grant Program is funded with $30 million for agricultural water use efficiency projects.

Grants are available for two types of projects: “Implementation Projects” and “Other Projects.” “Implementation Projects” are projects that create measurable water conservation benefits.  “Other Projects” create potential water conservation benefits, such as research, training, education, and public outreach.
Continue Reading DWR Put’s Money Where Its Mouth Is In Ag Water Efficiency Grant Program

On January 29, 2016, the Bureau of Ocean Energy Management (“BOEM”) and the Bureau of Safety and Environmental Enforcement (“BSEE”), agencies within the federal Department of the Interior (“DOI”), agreed to put a temporary moratorium on issuance of fracking permits in the Pacific Outer Continental Shelf until environmental review is conducted.  The temporary moratorium is the result of a settlement agreement between the DOI and the Center for Biological Diversity (“CBD”).  CBD sued the federal agencies in February 2015, alleging violations of the National Environmental Policy Act (“NEPA”), the Outer Continental Shelf Lands Act, and other federal statutes.  The litigation culminated in this settlement agreement.
Continue Reading No Issuance of Federal Offshore Fracking Permits Until May 2016

On January 20, 2016, the Governor’s Office of Planning and Research (“OPR”) released a revised draft of thresholds for measuring transportation impacts under the California Environmental Quality Act (“CEQA”). These draft thresholds are designed to promote the reduction of greenhouse gas emissions (“GHG”) pursuant to its mandate under Senate Bill 743 (Steinberg, 2013). The initial draft was released for review in August 2014.

OPR’s revised draft is fundamentally similar to its initial draft. In particular, under both drafts, the focus of a project’s transportation impacts analysis under revised Guidelines would shift from analyzing the project’s potential to increase traffic delays to the project’s effects on GHG emissions by focusing on vehicle miles traveled (“VMT”). The CEQA Guidelines have always focused a project’s potential transportation impacts analysis on the project’s potential to increase traffic delays by analyzing the project’s level of service (“LOS”).
Continue Reading Updates to CEQA Guidelines for Transportation Impacts Analysis Under SB 743

Taking effect earlier this month, Senate Bill 88 was approved overwhelmingly last legislative session and signed by the Governor as another effort to combat drought and water supply shortage conditions in the State of California. Senate Bill 88 – among other things – authorized the State Water Resources Control Board (“State Water Board”) to adopt

On January 15, 2016, the Department of Conservation gave notice of an interim rulemaking package to regulate underground natural gas storage facilities.  The proposed rulemaking comes in response to the continuing gas leak at an underground gas storage facility in Aliso Canyon.

Governor Brown called for the new regulations in his emergency proclamation, which