COUNTY OF BUTTE, Plaintiff and Appellant, v. DEPARTMENT OF WATER RESOURCES, Defendant and Respondent; STATE WATER CONTRACTORS, INC., et al., Real Parties in Interest and Respondents.
C071785
IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA THIRD APPELLATE DISTRICT (Yolo)
Filed 4/7/2023
CERTIFIED FOR PUBLICATION; (Super. Ct. No. CVCV091258)*; OPINION ON TRANSFER
COUNTY OF PLUMAS et al., Plaintiffs and Appellants, v. DEPARTMENT OF WATER RESOURCES, Defendant and Respondent; STATE WATER CONTRACTORS, INC., et al., Real Parties in Interest and Respondents.
* Two cases (Nos. 144282, 144283) were consolidated and transferred from the Butte County Superior Court to the Yolo County Superior Court (No. CVCV091258).
Bruce Alpert, Brad J. Stephens, County Counsel; Rossmann and Moore, Antonio Rossmann, Roger B. Moore, Barton Lounsbury; Law Office of Roger B. Moore, Roger B. Moore; Shute Mihaly & Weinberger and Ellison Folk for Plaintiff and Appellant County of Butte.
R. Craig Settlemire, Gretchen Stuhr, County Counsel; Law Office of Roger B. Moore, Roger B. Moore; Law Offices of Michael B. Jackson and Michael B. Jackson for Plaintiffs and Appellants County of Plumas and Plumas County Flood Control and Water Conservation District.
E. Robert Wright for Friends of the River and the California Sportfishing Protection Alliance as Amici Curiae on behalf of Plaintiffs and Appellants.
Kamala D. Harris, Xavier Becerra, and Rob Bonta, Attorneys General, Robert W. Byrne, Assistant Attorney General, Randy L. Barrow, Tracy L. Winsor, Deborah L. Barnes, Russell B. Hildreth and Matthew J. Goldman, Deputy Attorneys General, for Defendant and Respondent.
The Sohagi Law Group, Margaret M. Sohagi, Philip A. Seymour; Duane Morris, Thomas M. Berliner, Paul J. Killion, Jolie-Anne S. Ansley; Downey Brand, David R.E. Aladjem, Meredith Nikkel and Rebecca R.A. Smith for Real Parties in Interest and Respondents.
This case concerns California‘s efforts to relicense its hydropower facilities at Oroville Dam (the Oroville Facilities). Federal authorities initially licensed these facilities—which are part of the State Water Project (SWP)—in 1957 for a 50-year period. Before the license expired, California‘s Department of Water Resources (DWR) began the
Three local governments—Butte County, Plumas County, аnd Plumas County Flood Control and Water Conservation District (together, the Counties)—afterward filed writ petitions challenging the sufficiency of DWR‘s EIR. They raised four principal arguments. First, they asserted the EIR failed to adequately account for climate change. Second, they contended the EIR failed to properly evaluate fiscal impacts to Butte County and public health impacts from toxic contaminants. Third, they alleged the EIR wrongly assumed that current facility operations comply with water quality standards. And fourth, they contended the EIR failed to account for potential changes to the SWP that could affect the Oroville Facilities. But the trial court found none of these arguments persuasive and entered judgment in DWR‘s favor.
On appeal, we consider this case for the third time. In our first decision, we found the Counties’ challenge largely preempted by the Federal Power Act (
BACKGROUND
I
The Oroville Facilities and the State Water Project
In 1951, the California Legislature authorized the construction of a major water storage and delivery system. (Planning & Conservation League v. Department of Water Resources (2000) 83 Cal.App.4th 892, 898.) The resulting development, the SWP, is one of the largest water storage and delivery systems in the United States. (San Luis & Delta-Mendota Water Authority v. Jewell (9th Cir. 2014) 747 F.3d 581, 592; In re Bay-Delta etc. (2008) 43 Cal.4th 1143, 1154.)
The Oroville Facilities, located on the Feather River in Butte County, are part of the SWP. In the words of the EIR here, the Oroville Facilities are “a critical part of the SWP, providing much of the system‘s water collection and storage, flood management, and power production capacity.” These facilities include, among other features, Oroville Dam, several smaller dams, the Oroville reservoir (i.e., Lake Oroville), a power plant, two pumping plants, a wildlife area, a fish hatchery, and numerous recreational facilities. Together, these facilities serve multiple purposes, including water supply, hydropower production, flood control, water quality improvement, recreation, and fish and wildlife enhancement.
II
The Licensing of the Oroville Facilities
California obtained a 50-year federal license for the Oroville Facilities in 1957. The state needed to obtain a federal license because then, as now, federal law required a federal license for the construction, operation, and maintenance of dams, reservoirs, and hydroelectric power plants. (
In 1999, DWR—which operates the SWP—began public preparations to apply to FERC for renewal of the Oroville Facilities license. (County of Butte, supra, 13 Cal.5th at p. 621; Planning & Conservation League v. Department of Water Resources, supra, 83 Cal.App.4th at p. 899.) At the time DWR undertook the relicensing process, FERC regulations allowed applicants to pursue the traditional licensing process or an alternative licensing process. (County of Butte, at p. 621.) DWR opted for the latter process—a process “designed to achieve consensus among interested parties on the terms of the FERC license before the licensing application is submitted.” (Ibid.) This process requires those with interest in the project to cooperate in a series of hearings, consultations, and negotiations, and it is intended to conclude with the stakeholders settling their differences and entering into a settlement agreement describing the terms of the proposed license. (Ibid.) That agreement “then becomes the centerpiece of the license application and serves as the basis for FERC‘s ‘orderly and expeditious review’ in setting the terms of
From 2001 to 2006, DWR and stakeholders from various entities—including five federal agencies, five state agencies, seven local government entities, five Native Amеrican tribes, four local water agencies, and 13 nongovernmental organizations—participated in the alternative licensing process for the proposed relicensing of the Oroville Facilities. (County of Butte, supra, 13 Cal.5th at p. 621Id. at p. 622.) The Counties were among those that initially participated in this process, though they elected not to sign the settlement agreement. (Ibid.)
The settlement agreement‘s main provisions are described in two appendices. One appendix contains more than 40 pages of provisions that the agreement‘s signers intended to be included in the new FERC license. (County of Butte, supra, 13 Cal.5th at p. 622.) “These provisions address environmental protection, recreation, protection of cultural properties, flood control, land use, and expenditures.” (Ibid.) “A second appendix added nearly 20 pages of further provisions that were not intended for inclusion in the new license, but which, as DWR told the trial court, DWR ‘nonetheless agreed to undertake to obtain consensus.’ ” (Ibid.) These provisions include, among others, a provision requiring the creation of a fund to benefit communities near the project.
Following the settlement agreement, both FERC and DWR completed environmental review in connection with the proposed relicensing. FERC prepared an environmental impact statement under the National Environmental Policy Act (
