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

This is the first update on environmental regulatory and legal developments in Los Angeles and adjacent counties, as well as the Southern San Joaquin l Valley.  Let us know what you think.  Your comments on this Update will be considered for inclusion in future updates.

South Coast Air Quality Management District

*New Management:  The Governing Board has appointed Wayne Nastri, former Regional Administrator of USEPA for the Pacific Southwest and Hawaii, as interim replacement for Dr. Barry Wallerstein, dismissed by the Board in early March.  While the Board’s April appointment of Nastri was disrupted by community activists protesting the appointment as anti-environmental, some wearing clown suits, Nastri has also been praised by a leading environmental group.  Quoted in the Los Angeles Times, Joel Reynolds, western director and senior attorney at the Natural Resources Defense Council said, “He has a strong environmental record, a good sense of strategy and an understanding of how important the public is in environmental decision-making,” Others describe Nastri as flexible, open and collaborative.
Continue Reading Southern California Environmental Update #1

On May 27, 2016, the Bureau of Ocean Energy Management (“BOEM”) and the Bureau of Safety and Environmental Enforcement (“BSEE”) jointly released a Programmatic Environmental Assessment (“PEA”) for well stimulation treatment activities at operations on the Outer Continental Shelf (“OCS”) of offshore California.  The agencies identified and studied the environmental impacts of 43 lease areas at 23 active wells that could undergo well stimulation treatments, which includes hydraulic fracturing (“fracking”).

As required under the National Environmental Policy Act, the PEA evaluated a range of potential impacts including air quality, water quality, commercial and recreational fisheries, recreation and tourism, and environmental justice.  In conducting the analysis, the agencies adopted definitions contained in California’s Senate Bill 4.  For example, well stimulation treatments “include, but are not limited to, hydraulic fracturing treatments and acid well stimulations.”Continue Reading Part the Seas: Federal Report Finds Offshore Fracking has No Significant Impact

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 has moved one step closer to implementing the Sustainable Groundwater Management Act (“SGMA”), California’s landmark groundwater legislation. On Wednesday, May 18, the California Water Commission adopted a set of regulations that will govern the creation of groundwater sustainability plans (“GSPs”) by local Groundwater Sustainability Agencies (“GSAs”). The emergency regulations, developed by the Department of Water Resources (“DWR”), take effect in June.

The new regulations will have some real impacts on GSAs and their implementation of SGMA. The most significant requirements include:
Continue Reading New Regulations for California Groundwater Management

Last summer, the Third District Court of Appeal issued a sweeping ruling in Siskiyou County Farm Bureau v. Department of Fish and Wildlife, which made any substantial diversions of water subject to the streambed alteration agreement provisions of the California Fish and Game Code (“CDFW”).  The court ruled that California Fish and Game Code

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