Tag Archives: California regulation

Wastewater conspiracy allegations – Governor, Chevron sued

Repost from the San Francisco Chronicle

Lawsuit: Conspiracy by Gov. Brown, oil companies tainted aquifers

By David R. Baker, June 3, 2015 4:35pm
Kern County farmer Mike Hopkins says he lost a cherry orchard to oil-industry wastewater contamination. Photo: Leah Millis, The Chronicle
Kern County farmer Mike Hopkins says he lost a cherry orchard to oil-industry wastewater contamination. Photo: Leah Millis, The Chronicle

A conspiracy involving Gov. Jerry Brown, state regulators, Chevron Corp. and the oil industry let petroleum companies inject their wastewater into California aquifers despite the devastating drought, a lawsuit filed Wednesday alleges.

Gov. Jerry Brown is accused of firing California’s top oil regulator after she started subjecting some of the oil companies’ operations to greater scrutiny. Photo: Rich Pedroncelli, Associated Press
Gov. Jerry Brown is accused of firing California’s top oil regulator after she started subjecting some of the oil companies’ operations to greater scrutiny. Photo: Rich Pedroncelli, Associated Press

The suit claims that Brown in 2011 fired California’s top oil regulator under pressure from the industry after she started subjecting some of the oil companies’ operations to greater scrutiny, particularly requests to dispose of oil field wastewater underground. Brown then replaced her with someone who promised to be more “flexible” with the oil companies, according to the complaint.

Federal officials have since determined that oil companies have injected billions of gallons of their wastewater into aquifers that should have been protected by law, aquifers that could be used for drinking or irrigation. California regulators have now pledged to end the practice, although some of the injection wells may be allowed to keep pumping until 2017.

“California is experiencing the greatest drought of this generation, and protecting fresh water is of paramount concern,” said R. Rex Parris, lead attorney representing Central Valley farmers on the suit, which was filed in U.S. District Court for the Central District of California.

California’s oil reservoirs contain large amounts of salty water that must be separated from the petroleum and disposed of, usually by pumping it underground. Oil production companies can’t extract oil without some way of handling the left-over water, also known as “produced water.” The urge to boost California oil production prompted the conspiracy, Parris said.

“The fundamental goal of the … conspiracy was to preserve and expand the ability to inject underground chemicals and toxic waste, thereby expanding their oil production and maximizing profits, including tax revenues,” he said.

The governor’s office declined to comment on the suit Wednesday, as did the state’s oil regulating agency, the Division of Oil, Gas and Geothermal Resources. The division is named as a defendant in the suit, as are Chevron, Occidental Oil, two oil industry associations and several state and local officials. A Chevron spokesman said protecting water resources is one of the company’s core values.

The suit marks the latest twist in a long-building problem that burst into the open last year when the division abruptly shut down several wells that it feared could be injecting oil-field wastewater into aquifers already used for irrigation or drinking. Since then, the number of injection wells closed by the state has increased to 23. But the division insists it has not yet found any drinking or irrigation wells that have been tainted by the injections.

The lawsuit argues, however, that at least one Central Valley farmer lost an orchard to contamination from the oil industry’s produced water. Mike Hopkins, one of the plaintiffs in the suit, had to tear out 3,500 cherry trees whose leaves kept shriveling up and turning brown. Tests of the water showed unusually high levels of salt and boron. A former wastewater injection well lay across a rural road from his Kern County orchard.

Much of the suit involves a 2011 episode that until this year received little attention outside Sacramento and the Central Valley’s oil fields.

Oil companies and their political allies complained that the division under its supervisor at the time, Elena Miller, had bogged down the process of applying for underground injection permits. In addition to wastewater disposal, California oil companies need the permits to inject steam or water into aging oil fields as a way of flushing out more petroleum.

Miller had held the position since 2009 and was considered an outsider by the industry. According to the suit, Miller insisted that the law required oil companies to submit detailed engineering and geological studies for each proposed injection well before the division could issue a permit.

The industry balked and took its complaints directly to the governor, urging Brown to fire Miller. A few Central Valley politicians had already done the same. Some environmentalists, meanwhile, had criticized Miller for what they considered her hands-off approach to hydraulic fracturing.

Chevron spokesman Kurt Glaubitz said Wednesday that the company had not urged Brown to remove Miller.

In November 2011, Brown removed Miller. She was replaced by Tim Kustic, who according to the suit dropped the requirement that the companies submit the disputed studies before receiving injection permits. Kustic is also named as a defendant in the suit.

 

 

California Senate passes climate change bills

Repost from the San Francisco Chronicle, SFGate

State lawmakers pass bills combatting climate change

By Melody Gutierrez, 4:11 pm, Wednesday, June 3, 2015

SACRAMENTO — California lawmakers passed ambitious proposals Wednesday aimed at reaffirming California’s commitment to combatting global warming.

The bills, which still need to be voted on by the full Legislature, would translate into law the framework set by Gov. Jerry Brown in his inaugural speech in January and in an executive order in April that called for lowering the state’s greenhouse gas emissions to 40 percent below 1990 levels by 2030.

The 2030 target expands on the landmark AB32 California Global Warming Solutions Act adopted by the Legislature in 2006, which made the state a world leader in fighting climate change by calling for carbon emissions to be reduced to 1990 levels by 2020. The state is on track to meet the goals set in that law.

Both houses of the Legislature approved a handful of climate-change bills Wednesday. One bill approved by the Senate was B350, by Senate President Pro Tem Kevin de Leon, D-Los Angeles, and Sen. Mark Leno, D-San Francisco, that sets 2030 as the deadline for three big environmental feats: cutting petroleum use in half by reducing driving and increasing the use of fuel-efficient cars; boosting energy efficiency in buildings by 50 percent; and requiring the state to get half of its electricity from renewable sources.

The Senate approved SB350 in a 24-14 vote Wednesday. The bill now heads to the state Assembly.

De Leon said the bill would ensure that California continues to build “the new economy of tomorrow.”

“Let’s get it done. Let’s continue to lead the world,” de Leon said.

The Senate also approved SB185 by de Leon, which calls for the nation’s two largest state pension systems — California’s public employee and teacher retirement systems — to divest from thermal coal. The bill passed 22-14 and heads to the Assembly.

“We’ve already proven we can lower utility bills and rebuild our energy infrastructure, all the while cleaning up the air we breathe into our lungs and reducing our contribution to climate change,” de Leon said.

Many Republicans spoke against the climate-change bills, saying they will increase utility bills for consumers and businesses, and cost working-class jobs.

“We have a very lofty and noble goal, but other than feeling good about it, what has it actually accomplished?” asked Senate Republican Leader Bob Huff of Diamond Bar (Los Angeles County).

Repost from the Vallejo Times-Herald

California Senate approves legislation to combat global warming

By Jessica Calefati, Bay Area News Group, 06/04/15, 7:00 AM PDT

SACRAMENTO ­­>> The state Senate on Wednesday approved a far-reaching array of bills designed to cement the Golden State’s reputation as an international leader in the fight against climate change.

If enacted, the legislation will trigger a fundamental shift in the kinds of cars and trucks Californians drive and the way they power their homes. New targets would force industries to create more renewable energy, make more vehicles that don’t burn gasoline and further slash greenhouse gas emissions.

Democrats roundly praised the bills, which were inspired by goals Gov. Jerry Brown outlined in his inaugural address. They said the legislation is needed to help the environment and create jobs.

“We’re talking about creating a new economy for tomorrow,” Senate President Pro Tem Kevin de Leon said.

But Republicans railed against the legislation on the Senate floor. They called it “coastal elitism at its worst” and insisted the proposals would hurt the Central Valley, the region hit hardest by the Great Recession and the devastating four-year drought.

Sen. Jeff Stone, R-Temecula, seethed as he told his Democratic colleagues that Senate Bill 350 would “kill thousands of blue and white collar jobs in the Central Valley.” Sen. Jean Fuller, R-Bakersfield, pleaded with her Democratic colleagues to vote no. “I beg you,” she said.

But Democrats refused to budge. “Markets change. We transform. That’s who we are,” said Sen. Bob Hertzberg, D-Van Nuys. “Welcome to America, baby!”

Many energy experts say Californians won’t know the true impact of the legislation on their daily lives for many years because the formula needed to achieve these ambitious goals — and the cost of such bold change for taxpayers and business owners — remains murky.

“I’m quite dubious about our ability to accomplish these goals we’re getting so many kudos for setting,” said James Sweeney, director of Stanford University’s Precourt Energy Efficiency Center.

“It’s going to be up to future governors and future lawmakers to make these goals work,” Sweeney said. “Unless we come up with a plan that’s not terribly disruptive to average Californians’ lives, they’re never going to follow through.”

If the legislation becomes law, it will be up to the California Air Resources Control Board to implement two of the measures’ toughest goals: cutting petroleum use by cars and trucks in half over the next 15 years and slashing greenhouse gas emissions to 80 percent below 1990 levels over the next 35 years.

To achieve the first goal, the board has suggested getting Californians to drive less by using more mass transit, dramatically increasing the fuel economy of cars and doubling the use of alternative fuels. But the board has publicized few additional details about how to get there — and that omission makes the legislation impossible to support, opponents say.

“Most of California’s businesses and families rely on petroleum for their day-to-day transportation needs and (the legislation) has the ability to compromise the availability of transportation fuels,” the California Chamber of Commerce wrote last month to lawmakers.

An oil industry trade group said it’s hoping for better luck and a different outcome when the measure is considered by the state Assembly.

“We will continue to educate consumers and businesses on the enormous negative impact the legislation will have on all Californians and hope members of the Assembly are more willing to take a critical look at this legislation than did their counterparts in the Senate,” said Catherine Reheis-Boyd, president of the Western States Petroleum Association.

Along with the dramatic reduction of petroleum in gasoline it requires, Senate Bill 350, sponsored by de Leon, D-Los Angeles, and Sen. Mark Leno, D-San Francisco, would also require California utilities to generate at least 50 percent of their electricity from solar, wind and other renewable energy sources by 2030 and require state agencies to toughen building standards.

The Senate approved the measure on a 24-14 vote, with all Republicans voting no.

Billionaire activist Tom Steyer was one among many environmental advocates who praised the Senate’s action on the climate package as a “bold step forward” that tackles climate change “head on.”

“We owe it to our kids and our grandkids to protect them, and that means addressing climate change before it’s too late,” Steyer said in a statement.

The Senate’s endorsement of the legislation comes several weeks after Brown signed an agreement between California and 11 other U.S. states and foreign provinces to sharply limit emissions of greenhouse gases by 2050.

That same commitment is the backbone of Senate Bill 32, sponsored by Sen. Fran Pavley, D-Agoura Hills, which would extend California’s landmark climate law, signed by former Gov. Arnold Schwarzenegger in 2006. The new bill — which passed the Senate 22-15 —would lock into law a goal that Schwarzenegger had set: cutting greenhouse gas emissions 80 percent below 1990 levels by midcentury.

Other pieces of legislation the Senate approved Wednesday would establish a committee to advise the Legislature on climate policies that could create jobs; require that California’s pension funds for teachers and state workers divest from coal companies; and spur farmers to reduce greenhouse gas emissions.

California may not know precisely how it will achieve these goals, but UC Berkeley energy expert Dan Kammen said he isn’t worried. He expects the Golden State’s brightest minds to create new technologies to cover any ground we can’t with today’s tools.

“These are decades-long goals,” Kammen said. “The way to get there is to have a strategy that we know we must update and modify as we innovate.”

California State Senate vote on climate change, June 3

Press Release from NextGenClimate

FOR IMMEDIATE RELEASE:

Tuesday, June 2, 2015
CONTACT: NGC Press Office, 415-802-2423
or press@nextgenclimate.org 

CALIFORNIA STATE SENATE’S OPPORTUNITY TO CONTINUE TO LEAD ON CLIMATE CHANGE

Tomorrow, the California State Senate has a chance to decisively move our state towards a clean energy future and reduce carbon pollution.

The Senate is scheduled to vote tomorrow on SB 32 and SB 350—bills introduced by Senator Fran Pavley and Senate President pro Tempore Kevin de León respectively—that take ambitious steps to ensure that California continues to lead the nation when it comes to addressing climate change. Based on the framework laid out by Governor Jerry Brown, this commonsense legislation would reduce carbon pollution by 80 percent from 1990 levels by the year 2050 and would reduce fossil fuel use in cars and trucks by 50 percent, ensure that 50 percent of California’s electricity comes from renewable sources and increase energy efficiency in buildings by 50 percent—all  by 2030.

“This commonsense legislation will increase our use of clean energy sources like wind and solar, reduce carbon pollution, and create good-paying jobs,” said NextGen Climate spokesperson Suzanne Henkels.

Under California’s landmark climate legislation, our economy continues to make progress while reducing carbon pollution to protect our children’s future. More than 430,000 people are employed by an advanced energy business in California—that’s more than in the motion picture, television, and radio industries combined—and these jobs are projected to grow by 17 percent this year.

With tomorrow’s vote, the Senate is on the verge of taking this record of success to the next level. We’re confident they’ll continue California’s long history of leadership in solving climate change and accelerate the transition to the advanced energy economy that our kids deserve.

# # #

NextGen Climate

NextGen Climate is focused on bringing climate change to the forefront of American politics. Founded by investor and philanthropist Tom Steyer in 2013, NextGen Climate acts politically to prevent climate disaster and promote prosperity for all Americans.

NextGen Climate’s Tom Steyer: If Oil Company Executives Won’t Answer Questions They Should Face Subpoena

Press Release by NextGen Climate

NEXTGEN CLIMATE FOUNDER & PRESIDENT TOM STEYER CALLS FOR ANSWERS FROM BIG OIL ON GAS PRICE SPIKE IN CALIFORNIA

Steyer Says If Oil Company Executives Won’t Answer Questions They Should Face Subpoena  

May 5, 2015 3:53 PM

SAN FRANCISCO—NextGen Climate Founder and President Tom Steyer today spoke at a Chevron gas station about the recent gas price spike in California and called on the State Senate to subpoena oil company executives if they refuse to provide answers to basic questions about their pricing and oil refining practices.

“As everyone knows, the oil companies have been charging Californians up to $1 billion per month more for gasoline than if we paid the national average,” Steyer said. “It’s time to put an end to the Big Oil giveaway, and start giving Californians a fair shake.”

Steyer also highlighted recent comments made by Chevron during its first quarter earnings call with investors last week. Chevron’s general manager of investor relations, Jeff Gustavson, noted that refining margins “increased earnings by $435 million driven by unplanned industry downtime and tight product supply on the U.S. West Coast.”

As Steyer noted, Chevron is saying for the  oil industry, “their problems were good for their profits.” Steyer also highlighted the problem with the lack of transparency into the oil industry’s business practices, saying “we don’t have the facts we need in order to know if we’re paying fair prices based on the market, or if oil companies are deliberately taking actions which lower supplies and drive profits higher.”

Oil company executives had the opportunity to show up for a Senate hearing in March, to answer questions and allow Californians to judge whether they are being unfairly gouged at the pump. But industry executives refused to show up, instead sending a paid economist who then claimed he didn’t speak for the oil companies. If these executives continue refusing to answer for their business practices, the State Senate should subpoena these executives to force them to answer to Californians. Once Big Oil answers this call, we can begin to fix California’s rigged gasoline market and give Californians the fair shake they deserve.

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NextGen Climate is focused on bringing climate change to the forefront of American politics. Founded by Tom Steyer in 2013, NextGen Climate acts politically to prevent climate disaster and promote prosperity for all Americans.