California Environmental Law & Policy Update 12.19.25

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Court agrees to rehear $14B climate funding freeze case

Bullet Utility Dive – December 18

The U.S. Court of Appeals for the District of Columbia Circuit on Wednesday ruled that the nonprofit recipients of $14 billion in climate grants frozen by the U.S. Environmental Protection Agency can have their case reheard. Grant recipients included “green bank” nonprofits such as the Climate United coalition, which received almost $7 billion to finance clean energy projects in rural, tribal and low-income communities, and the Coalition for Green Capital, which received $5 billion and was working to design, create and implement other green bank programs. A three-judge panel had ruled 2-1 on September 2 to uphold the freeze on funding from the Greenhouse Gas Reduction Fund (GGRF), which was created by the Inflation Reduction Act of 2022. The nonprofits requested a rehearing by a panel of all judges of the D.C. Circuit court, which was granted. The full court will now hear further oral arguments on February 24, but the grant funding will remain frozen for now.


News

U.S., Mexico sign new agreement on Tijuana River sewage crisis

Bullet The San Diego Union-Tribune - December 15

The United States and Mexico signed a new agreement this Monday aimed at addressing the decades-long Tijuana River sewage crisis. The agreement, known as “Minute 333,” calls for infrastructure projects in Mexico and the U.S., enhanced monitoring and planning for operation and maintenance of wastewater systems to account for future population growth in Tijuana — a component missing from previous agreements, and other requirements. Since 2018, more than 200 billion gallons of toxic sewage, trash and unmanaged stormwater have flowed across the United States-Mexico border into the Tijuana River Valley and neighboring communities, forcing long-lasting beach closures and causing harmful impacts on public health, the environment and water quality.


California blocked Houston-based Sable Offshore’s pipeline permit. Then a federal agency stepped in.

Bullet Houston Chronicle – December 17

Just a day after a California board blocked a permit for Sable Offshore’s pipeline, the federal government stepped in. According to a U.S. Securities and Exchange Commission filing made public this Wednesday, Sable Offshore’s contested pipeline connecting its Santa Ynez Unit to an onshore facility in California has been reclassified as an interstate pipeline. The move seemingly revokes the state and Santa Barbara’s authority over the pipeline and permitting process and instead gives it to the federal Pipeline and Hazardous Materials Safety Administration. The Trump administration has not offered any comment on the Wednesday move. Sable Offshore spent the better part of a year working to fully restore operations off the coast of California at a cluster of offshore oil fields known as the Santa Ynez Unit. Its efforts have been gridlocked in state courts, culminating with the 3-1 vote Tuesday from the Santa Barbara County Board of Supervisors that rejected Sable’s permit.


EPA reverses course on safe formaldehyde exposure threshold

Bullet Chemical & Engineering News – December 15

For the first time, EPA is suggesting there’s a safe threshold for formaldehyde exposure. The agency and other leading public health bodies have long measured the chemical’s health risks by its potential to cause cancer even at imperceptible exposures. In its updated draft risk-calculation memorandum, released December 3, the agency now says that if individuals are not exposed to the chemical at levels that typically cause irritation under its conditions of use, they’re protected against all effects, including cancer. The move has sparked sharp criticism from public health advocates who say the agency is catering to industry and putting more people—especially workers—at risk.


Federal government orders LADWP to inspect nearly 100 drinking water reservoirs, storage tanks

Bullet Los Angeles Times – December 12

EPA has ordered the Los Angeles Department of Water and Power to inspect nearly 100 drinking water reservoirs and storage tanks over concerns about improper maintenance, the agency announced last Thursday. The agency identified violations of the Safe Drinking Water Act, such as unprotected openings and inconsistent storage system cleaning, during a July 2024 inspection, according to a news release. The consent order did not cite evidence of water contamination but noted that if left unaddressed these deficiencies could pose a risk for contamination.


House backs bill to speed permitting reviews for new energy and infrastructure projects

Bullet Associated Press – December 18

The House approved legislation on Thursday aimed at speeding up permitting reviews for new energy and infrastructure projects and limiting judicial review. The bill, dubbed the SPEED Act, would enact the most significant change in decades to the National Environmental Policy Act, which requires federal agencies to consider a project’s possible environmental impacts before it is approved. The bill was approved, 221-196, and now goes to the Senate.

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© Allen Matkins

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