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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

Stanford University released a study this week stating that California has three times more useable groundwater located in deep aquifers than previously estimated.  This might come as welcome news to a state that continues to suffer through a historic drought.  The researchers found that fresh groundwater was available at depths previously thought to be too deep to contain fresh water.

At the outset, readers should note that “freshwater” and “drinking water” are terms of art having regulatory and legal distinctions, and ultimately making a difference for the public welfare. The definition of freshwater varies depending on the state or federal agency; however, freshwater is generally defined as having less than 3,000 mg/L of total dissolved solids (“TDS”).  Underground Sources of Drinking Water (“USDW” or “drinking water”) as defined by the Environmental Protection Agency include groundwater aquifers with less than 10,000 mg/L TDS.  For reference, seawater contains approximately 35,000 mg/L TDS.

Historically, California’s fresh groundwater supply was thought to be limited to water found above 1,000 feet. However, the researchers determined that the mean base of fresh water (“BFW”) in five Central Valley counties (Kern, Fresno, Solano, Colusa, and Yolo) ranged from 1,345 feet (Colusa) to 2,204 feet (Kern).  The base of drinking water is considerably deeper than the freshwater.  Specifically, USDW can be found in Kern and Los Angeles Counties at depths deeper than 8,200 feet.
Continue Reading Does California Bear A Water “Windfall” From Deep-Aquifer Sources?

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

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

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 October 8, the California Department of Conservation (“DOC”) released a Renewal Plan for Oil and Gas Regulation (“Renewal Plan”) to revamp its regulatory program.  The goal of the Renewal Plan is to continue the DOC’s focus on environmental protection and public health, and it will shape the DOC’s regulatory decisions for the next two years.

The Renewal Plan contains four objectives: (1) regulatory overhaul, (2) new regulations for “new realities,” (3) modernization of data management, and (4) ensuring a high-quality workforce.  California’s Underground Injection Control (“UIC”) program is a key focus, and the Renewal Plan calls for a review of aquifer exemptions.  Exempt aquifers are those that are permitted to receive injection of Class II fluids (fluids associated with the production of oil and gas).  The review of exempt aquifers will ensure that Class II fluids are not being injected into potential drinking water sources.
Continue Reading Bunn’s “Renewal Plan” will Overhaul Oil & Gas Regulation in California Starting Next Year

October 11, 2015, marked the deadline by which Governor Brown had to act on legislation submitted to him by the legislature in September. In addition to those bills the Governor signed, we note below legislation that has been identified as two-year legislation. Stoel Rives’ Water Law Team has been monitoring water-related legislation, especially given California’s historic drought. We will continue to monitor bills identified as two-year bills, as well as any bills introduced in the second half of the 2015-2016 Legislative Session. We will provide periodic updates as these bills move through the legislative process. Below is the status and summary of some of the bills Stoel Rives is monitoring.

Supply and Groundwater

AB-307 (Mathis): Graywater: groundwater recharge
STATUS: Currently identified as a two-year bill.
If passed by the legislature and signed into law, AB-307 would state the intent of the Legislature to enact legislation to explicitly permit the usage of residential, commercial and industrial graywater for the recharge of a groundwater basin or aquifer.

AB-453 (Bigelow): Groundwater Management
STATUS: Currently identified as a two-year bill and pending in the Senate.
If passed by the legislature and chaptered, this bill would authorize, until a groundwater sustainability plan is adopted, a local agency to amend an existing groundwater management plan in furtherance of, and consistent with, the groundwater management plan’s objectives.

AB-647 (Eggman): Beneficial use: storing of water underground
STATUS: Currently identified as a two-year bill and pending in the Senate.
If signed into law, this bill would:

  • declare that the storing of water underground constitutes a beneficial use of water if the diverted water is used while it is in underground storage for specified purposes;
  • state the intent of the Legislature that this storage of water underground not injure any legal user of the water involved; and,
  • provide that the period for the reversion of a water right does not include any period when the water is being used in the aquifer or storage area or is being held in storage for later application to beneficial use, as prescribed.

Continue Reading Update on California Water Legislation Regarding Groundwater, Recycled Water and More

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Few firms view their Environment, Land Use, and Natural Resources practices as core legal services. Stoel Rives is one of them. The firm ranks #8 in the United States according to Law360’s list of the largest practices of its kind. Our sophisticated compliance counseling, permitting, regulatory development, and litigation practices continue a long tradition of specialization and deep experience. Our environment, land use, and natural resource attorneys incorporate prior agency experience, technical acumen, and industry knowledge into their legal advice. They also build strong relationships with agency officials and industry associations. Our litigation successes include landmark decisions. More than 60 attorneys, paralegals, and compliance analysts comprise Stoel Rives’ nationwide Environment, Land Use & Natural Resources practice.