By: Jennifer Novak
California lawmakers are considering a new bill, AB 1234, that could change how businesses and real estate developers deal with water regulations. If passed, this law would expand permit requirements, increase penalties for violations, and strengthen the state's control over water quality. But will it pass? Similar bills have failed before, so let’s take a closer look.
What Would the New Law Change?
- More Permit Requirements – Businesses would need to prove they are enrolled in a water discharge permit program when applying for licenses or construction permits, especially for projects disturbing over an acre of land.
- Tougher Drinking Water Standards – California must adopt federal water quality standards as of January 2025 and keep them in place until 2030.
- Expanded State Authority – The State Water Board could set water quality rules for more water bodies, not just those covered by federal law.
- Higher Fines and Penalties – Starting in 2026, fines for violating water laws would increase every year.
- New Legal Risks – If this law passes, individuals could sue businesses in state court over water pollution violations. Currently, citizen lawsuits are only allowed for violations of federal permits and discharges into federally protected waters. This bill would expand citizen enforcement to include violations of state permits and pollution discharges into state waters, significantly increasing legal exposure for businesses.
- Stricter Reporting – Developers and businesses would need to report water pollution issues for a broader range of water sources.
Why Has Similar Legislation Failed Before?
Previous efforts to expand California’s water regulations have faced strong opposition from businesses, farmers, and developers. Many argue that additional permits and legal risks will slow down projects and increase costs. On the other hand, environmental groups and state officials believe these measures are necessary to protect California’s water supply, especially with changing federal policies that weaken environmental protections.
What Are the Chances This Bill Will Pass?
Several factors could influence the bill’s success:
- Federal Rollbacks – Recent federal decisions have weakened water protections, which could motivate California lawmakers to act. For example:
- In Sackett v. Environmental Protection Agency, 598 U.S. ___ (2023), the Supreme Court significantly narrowed the definition of “waters of the United States,” reducing federal oversight over many wetlands and streams.
- The Trump administration’s Navigable Waters Protection Rule (2020) removed federal protections from millions of acres of wetlands, a move that was only partially reversed under the Biden administration.
- The 2023 revision of the Clean Water Act Section 401 rule limited states’ ability to block projects that could harm water quality, restricting their authority over federal permits.
- Legal Precedents – With the federal government stepping back from regulating certain waters, California may feel the need to step in with its own laws to maintain environmental protections.
- Political Landscape – California has a history of strict environmental laws, but opposition from industries could still make passage difficult.
What This Means for Businesses and Developers
If this bill becomes law, businesses and real estate developers will need to navigate new regulatory hurdles. More permits, stricter compliance measures, and higher fines could impact project costs and timelines. The expansion of citizen lawsuits to state-level water violations adds another layer of legal risk, making compliance even more critical.
Where Is the Bill Now?
AB 1234 is currently in committee and set for a hearing on April 15, 2025. If it passes committee, it will move to a full vote in the state legislature. Stay tuned for updates on whether California will push forward with tougher water protections or face another legislative roadblock.