County of Butte v. Department of Water Resources

The California Supreme Court reversed in part a Court of Appeal’s decision holding that the Federal Power Act (FPA) preempted challenges to the Department of Water Resources’ (DWR) environmental review for renewal of a Federal Energy Regulatory Commission (FERC) license to operate the Oroville Facilities, which included a hydroelectric dam. The petitioners, Butte and Plumas Counties, challenged the sufficiency of the environmental impact report (EIR) prepared pursuant to the California Environmental Quality Act (CEQA), including for failing to adopt mitigation measures with respect to climate change. The Supreme Court concluded that the FPA would not preempt CEQA to the extent that the EIR informed decision-making about “matters outside FERC’s jurisdiction or compatible with FERC’s exclusive licensing authority,” such as DWR’s consideration of whether to request particular terms from FERC.