California Environmental Law & Policy Update - October 2015

Allen Matkins
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Environmental and Policy Focus

Royal Dutch Shell suspends Arctic drilling indefinitely

Washington Post - Sep 28

Royal Dutch Shell announced early on September 28, 2015 that it will indefinitely suspend its Arctic drilling off the Alaska coast after finding insufficient oil and gas in one of its exploratory wells to justify costly development. The move puts an end — for now — to the contentious debate over whether oil and gas exploration should take place in the environmentally sensitive area off Alaska’s coast. President Obama has come under intense fire for allowing drilling to proceed, and environmentalists cheered Shell’s announcement. It also highlights the tremendous costs and risks of drilling in the Arctic frontier, which is thought to have vast oil reserves but where little exploration has taken place so far. Alaska natives were "deeply disappointed" in the news as they were depending upon oil exploration to sustain their local economies. “Absent any responsible resource development onshore and offshore, we are facing a fiscal crisis beyond measure,” according to Rex A. Rock, Sr., president of the Arctic Slope Regional Corporation (ASRC), a consortium of Alaska Native companies that recently invested in Shell’s oil prospects.

EPA adopts rules to monitor oil refineries' emissions into neighborhoods

Los Angeles Times - Sep 29

The U.S. Environmental Protection Agency adopted new rules Tuesday that address emissions from oil refineries across the nation, including several located in California. The rules for the first time require refineries to monitor and report levels of benzene, a cancer-causing compound, at the boundaries of their properties and to cut emissions if they are too high. The rules, which target about 150 oil refineries across the nation, strengthen standards on emissions from storage tanks, coker units, pressure relief devices, and flares, which burn off excess gases. EPA stated that the measures are designed to reduce emissions that cause respiratory illness, increase cancer risk, and contribute to smog and global warming, while making refinery operations more efficient. In a statement Tuesday, the American Petroleum Institute said refinery air emissions were already at safe levels and have been declining for decades under existing regulations.

California air regulators restore emissions-cutting fuel rule

KPCC - Sep 25

California regulators last week restored ambitious rules to cut transportation fuel emissions 10 percent within five years. The rules further strengthen California's toughest-in-the-nation carbon emissions standards. But oil producers warn the changes could drive up costs for consumers at the gas pump. The California Air Resources Board voted 9-0 to re-adopt its low-carbon fuel standard. The regulations have been on hold since 2009 because of a court fight. The board says the change would increase costs for a typical commuter by $20 to $24 in 2017, increasing to $52 to $56 annually in 2020. "Dormant Commerce Clause" challenges to the rule, based on the theory that the standards unconstitutionally limit interstate commerce by making it more difficult for out-of-state refiners to compete with in-state producers, are ongoing.

State attorney general seeks to curb Proposition 65 abuse

San Francisco Business Times - Sep 29

State Attorney General Kamala Harris has introduced a series of regulatory changes to the California law known as "Proposition 65" in order to curb what critics describe as frivolous lawsuits brought to enforce the law. The law, originally passed by voters in 1986, requires certain businesses to post warnings about the presence of toxic chemicals in products, homes, and in the workplace. The proposal seeks to ensure that a greater share of civil penalties paid by businesses in settlement of such claims go to fulfilling the law's purpose of protecting public health, said Kristin Ford, press secretary for Harris. Businesses paid more than $29 million in settlements last year related to Proposition 65. Of that total, $21 million went for attorney's fees and costs, according to state documents. The change proposed by the State Attorney General would require private enforcers of the law, mostly environmental and consumer groups, to better define and report how they will spend settlement payments. A 45-day comment period on the proposed changes to Proposition 65 began last Friday.

Volkswagen to refit cars affected by emissions scandal

Reuters - Sep 30

Volkswagen will repair up to 11 million vehicles and overhaul its namesake brand following the scandal over its rigging of emissions tests. New Chief Executive Matthias Mueller said the German carmaker would tell customers in the coming days they will need to have diesel vehicles with illegal software refitted, which some analysts have said could cost the company more than $6.5 billion. U.S. lawmakers asked the automaker to turn over documents related to the scandal, including records concerning the development of a software program intended to defeat regulatory emissions tests. Volkswagen has admitted cheating in diesel emissions tests in the U.S. and Europe and is under significant pressure to address the crisis, which already has reduced the company's market value by more than a third.

 

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