California Environmental Law & Policy Update - May 2016 #3

Allen Matkins
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Environmental and Policy Focus

In sharp reversal, California suspends mandatory water restrictions

New York Times - May 18 The State Water Resources Control Board (SWRCB) on Wednesday suspended its mandatory statewide 25 percent reduction in urban water use, allowing local communities to set their own conservation standards based on their own projections of water supplies. The new rules are a sharp change in policy for a state struggling to manage one of the worst droughts in its history. They followed a winter in which El Niño storms fell short of what meteorologists projected, particularly in the southern part of the state, but still partly filled parched reservoirs in Northern California and, more critically, partly replenished the mountain snowpack that provides water into the spring and summer. The rules will take effect on June 1 and are likely to mean a huge rollback, and in some places, an elimination, of water reduction mandates that have forced residents, businesses and governments to curb watering of gardens and lawns, take shorter showers and flush toilets less frequently. The SWRCB will review the rules again in January 2017 and could return to mandatory reductions if communities revert to water-wasting habits or if next year is dry again.

Plains All American Pipeline indicted in Santa Barbara oil spill

Reuters - May 17 Houston-based Plains All American Pipeline LP has been indicted by a Santa Barbara County grand jury on 46 criminal charges, including four felonies, stemming from a major oil spill last year that forced beach closures, killed wildlife, and fouled miles of shoreline near Santa Barbara in May 2015. The company estimates 3,400 barrels of crude oil were released during the spill. Attorney General Kamala Harris said the company, if convicted, faces penalties of $1 million to $2.8 million, and a company employee who was also indicted, could face up to three years in prison if found guilty. The company said criminal prosecution was unwarranted, adding it has spent more than $150 million on spill response, cleanup, and related efforts.

Governor Brown's housing proposal could mean sweeping Bay Area changes

San Francisco Business Times - May 17 In what could be California's most significant housing policy change in years, Governor Jerry Brown has proposed sweeping statewide legislation that would allow new market-rate projects with onsite affordable housing to be approved "as of right."  The proposal has big ramifications for the Bay Area, where many cities and well-organized residents' groups have long fought residential development. Under the proposal, cities would be prohibited from requiring conditional use permits, planned unit development permits or other discretionary review for new projects with 20 percent affordable housing for tenants making no more than 80 percent of the area median income or projects with 10 percent affordable housing near transit. That would be a sharp break from the current policy of most Bay Area cities, including San Francisco, where each new housing project is subject to discretionary review and usually takes years for approval.  A vote on the bill is expected by the budget deadline of June 15.

Gas company hit with $2.25 million fine over pipeline safety

L.A. Daily News - May 17 The California Public Utilities Commission (CPUC) has fined Southern California Gas Co. (SoCalGas) $2.25 million for neglecting to maintain 125 “cathodic protection packages” – devices that apply a small electric current to the pipeline to prevent corrosion – between 2011 and 2015. Under the Commission’s order, SoCalGas has until May 23 to fix the devices or submit a compliance plan. It can also appeal the fine. Forty of the 45 devices cited by the CPUC have been fixed and are working, company spokesman Chris Gilbride said, and the five others should be fixed in the next few months. CPUC spokesman Christopher Chow said the citation is not associated with the massive natural gas leak at the company’s Aliso Canyon storage facility above Porter Ranch.

California Coastal Commission endorses legislation banning ex-parte communications

Los Angeles Times - May 12 At its monthly meeting in Newport Beach, the California Coastal Commission last week voted 6 to 5 to support a bill by state Sen. Hannah-Beth Jackson (D-Santa Barbara) that would prohibit so-called ex-parte communications -- private verbal or written communications between a commissioner and an interested party -- related to decisions pending before the commission, such as the approval of development projects. Jackson contends the measure will remove the possibility of backroom decision-making, improve transparency, and help restore public confidence in the commission after the firing in February of Charles Lester, the agency's executive director, with little public explanation despite overwhelming opposition to his termination.

State tentatively supports broadening approved oil field injection zone

Bakersfield Californian - May 12 The California Division of Oil, Gas, and Geothermal Resources (DOGGR), with concurrence of the State Water Resources Control Board, voiced tentative support last week for allowing oil producers to continue injecting wastewater or steam into federally protected aquifers about nine miles northeast of central Bakersfield in the Round Mountain oil field. DOGGR's consideration of the proposal launches a public review that could lead to a formal request by the state that U.S. Environmental Protection Agency (EPA) officials exempt several aquifers from the federal Safe Drinking Water Act. If such an application is approved, it would permanently allow injection work important to petroleum production in the area. Without a formal exemption from the EPA, some Round Mountain injection wells will have to close by December 31.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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