State and federal officials move forward plans and policies for water conservation, conveyance, and climate resilience.

By Michael G. Romey, Lucas I. Quass, John Detrich, Cody M. Kermanian, and Julie Miles

The winter of 2022-23 brought historic levels of precipitation to California after years of deep drought, dwindling reservoirs, and groundwater depletion. In the first quarter of 2023, most of the state received rainfall exceeding historic averages, with some areas experiencing 200%, or even 300% of average levels. According to the US Drought Monitor, the state is currently drought-free, although some regions are still considered abnormally dry. Despite heavy precipitation over the past year, California’s drought resilience remains in question, as critical infrastructure projects face staunch opposition and climate change increases the likelihood of extreme and prolonged droughts. Regulators and water managers had a busy 2023 as they grappled with persistently low groundwater levels, planned for additional water storage and conveyance, and continued to advance water conservation initiatives.

This blog post summarizes key actions taken by state and federal officials in 2023 with respect to California’s water supply and provides an outlook for 2024.

A district court has ruled that federal law does not preempt an indirect source rule that targets emissions associated with warehouses in Southern California.

By Joshua Bledsoe, Nick Cox, and Jennifer Garlock

On December 14, 2023, a US federal judge rejected claims that federal law preempts the South Coast Air Quality Management District’s (SCAQMD or the District) adoption of Rule 2305 (Rule), upholding the first-in-the-nation Rule[1] that regulates trucking emissions from warehouses.

Rule 2305 is the Warehouse Indirect Source Rule (ISR) — Warehouse Actions and Investments to Reduce Emissions (WAIRE) Program. As described in this Latham blog post, the WAIRE Program applies to certain warehouses in the South Coast Air Basin and imposes a compliance obligation based on the number of truck visits to that warehouse per year. Warehouse operators can meet that obligation by taking any number of emissions-reducing actions, either from the “WAIRE Menu” or through a custom plan approved by the District.

Regulators are pursuing steep fines in response to widespread alleged noncompliance with an emissions rule still subject to potential reversal by the courts.

By Joshua T. Bledsoe, James Friedland, and Jennifer Garlock

Key Points:

  • The enforcement action alleges 1,400 warehouses are noncompliant.
  • Noncompliance can result in fines of up to $11,710 per day.
  • Litigation challenging this program remains pending, with no quick end in sight.

On September 20, 2023, the South Coast Air Quality Management District (SCAQMD or the District) announced an enforcement initiative for Rule 2305, also known as the Warehouse Indirect Source Rule (ISR), which is part of the Warehouse Actions and Investments to Reduce Emissions (WAIRE) Program. As described in this June 2021 blog post, the WAIRE Program applies to warehouses in the South Coast Air Basin over 100,000 square feet, with a phased implementation based on warehouse size. The ISR imposes a compliance obligation based on the number of truck visits to that warehouse per year, which warehouse operators can meet through emissions-reducing actions, either from the “WAIRE Menu” or through a custom plan approved by the District.

Public agencies prevailed in 71% of decisions involving the California Environmental Quality Act in 2022.

By Marc Campopiano, Lucas Quass, Natalie Rogers, and Kevin Homrighausen

Latham lawyers tracked key developments in California Environmental Quality Act (CEQA) case law throughout 2022. On April 20, 2023, Latham lawyers held a webcast highlighting important cases from the past year, summarizing practical takeaways, and covering trends in CEQA. (See the webcast and the corresponding 2022 CEQA Year in Review presentation.) Below is a compilation of the information from that annual review and patterns that emerged.

We analyze the key CEQA cases from 2022 and how they have impacted development in California.

By Marc Campopiano, Winston Stromberg, Daniel Brunton, Lauren Glaser, Kevin Homrighausen, and Natalie Rogers

The California Supreme Court and the Courts of Appeal issued 50 published and unpublished opinions on the California Environmental Quality Act (CEQA) in 2022. We review these cases in our forthcoming “CEQA Case Report: Understanding the Judicial Landscape for Development.”

Our annual comprehensive report summarizes

The state must dramatically expand its energy infrastructure and renewable energy sources to satisfy growing demand for electricity while meeting ambitious climate goals, according to California Independent System Operator’s Draft 2022-2023 Transmission Plan.

By Marc Campopiano, Joshua Bledsoe, Julie Miles, and Shawna Strecker

California has committed to ambitious carbon reduction targets and pledged to become carbon neutral no later than 2045.[1] However, to meet these lofty goals while providing reliable energy for millions, the state must commit to an unprecedented degree of renewable power and transmission line development.

The challenge is highlighted by the Draft 2022-2023 Transmission Plan (Draft Transmission Plan) published on April 3, 2023, by the California Independent System Operator (CAISO), the independent energy grid operator that serves approximately 80% of California and a small part of Nevada. As of 2018, California had about 80 gigawatts (GW) of total electric generating capacity.[2] CAISO predicts that California will need to almost double that total capacity in the next decade with new renewable generation and greatly expand the transmission grid in order to achieve clean power targets and vast electrification programs as California attempts to phase out fossil fuel usage. This scale of infrastructure buildout will require unprecedented investments, vastly expedited environmental permitting and review by regulatory agencies, and sustained political will to substantially incentivize and streamline priority projects.

This blog post examines the ambitious roadmap outlined in the Draft Transmission Plan, and CAISO’s long-term transmission planning more broadly, to advance California’s climate goals by undertaking 46 transmission projects and adding at least 40 GW, mostly from renewable sources, to the CAISO grid over the next 10 years.

A federal court heard motions for summary judgment in challenge to first-in-nation rule requiring warehouses to adopt clean technologies.

By Joshua Bledsoe, Nick Cox, and Jennifer Garlock

On April 17, 2023, a US federal judge heard arguments in a lawsuit challenging the South Coast Air Quality Management District (SCAQMD or the District) adoption of Rule 2305 and will now decide whether to grant summary judgment to the plaintiffs and vacate the rule.

Rule 2305 is the Warehouse Indirect Source Rule (ISR) — Warehouse Actions and Investments to Reduce Emissions (WAIRE) Program. As described in this June 2021 blog post, the WAIRE Program applies to certain warehouses in the South Coast Air Basin and imposes a compliance obligation based on the number of truck visits to that warehouse per year. Warehouse operators can meet that obligation by taking any number of emissions-reducing actions, either from the “WAIRE Menu” or through a custom plan approved by the District.

The plan accelerates already ambitious climate goals for California and charts a course to carbon neutrality by 2045.

By Joshua Bledsoe, Jen Garlock, and Brian McCall

On December 15, 2022, the California Air Resources Board (CARB) adopted its Final 2022 Scoping Plan for Achieving Carbon Neutrality (Final Scoping Plan). Assembly Bill (AB) 32 requires CARB to develop and update every five years a scoping plan that describes the approach California will take to reduce greenhouse gas emissions (GHGs) to combat climate change. AB 32 originally set a target of reducing emissions to 1990 levels by 2020. After California met this goal, Senate Bill (SB) 32 strengthened the state’s GHG reduction target to at least 40% below 1990 levels by 2030. California committed to even greater targets this year with adoption of AB 1279, which directs the state to become carbon neutral no later than 2045.

California’s first upcoming offshore wind lease sale, scheduled for December 6, 2022, is the next major step forward for clean energy in the Golden State.

By Nikki Buffa, Jennifer K. Roy, Janice M. Schneider, Daniel P. Brunton, Nathaniel Glynn, and Brian McCall

The Bureau of Ocean Energy Management (BOEM) and the State of California have taken significant steps to advance offshore wind development in the lead-up to BOEM’s upcoming auction for the first renewable energy lease sale in federal waters offshore California. The BOEM lease sale will involve a number of new facets not seen in other recent lease sales in New York and North Carolina, including revised bidding credits and lease stipulations. In anticipation of the lease sale, California is developing a permitting roadmap to streamline the state approvals process for any resulting offshore wind projects.

On the federal side, the Biden Administration is deploying significant resources and funding to boost development of floating offshore wind technologies that will be essential off the Pacific Coast. While BOEM’s upcoming lease sale and California’s actions to support offshore wind development represent an important moment for the offshore wind industry, many challenges remain to capture the full resource potential off California’s coast.

The 2020 wildfire season alone released more carbon dioxide than what California reduced through years of emission cuts.

By Marc Campopiano and Joshua Bledsoe

California is a recognized leader in climate policy, but a wildfire crisis is threatening to unwind progress towards the state’s ambitious climate goals. In 2006, with the passage of AB 32, California set a then-unprecedented target of reducing the state’s greenhouse gas emissions (GHGs) to 1990 levels by the year 2020. Having achieved this goal, California dramatically upped the ante with the passage of SB 32, requiring a 40% reduction of GHGs, and again earlier this year with AB 1279, which requires the state to become carbon neutral by 2045 or earlier. Despite notable progress to date, a recent university study found that GHGs emitted from California’s 2020 wildfire season alone equated to more than double of all the GHG reductions the state achieved since 2003.[1]