ARTICLE
29 May 2026

California Environmental Law & Policy Update

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Allen Matkins Leck Gamble Mallory & Natsis

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Allen Matkins, founded in 1977, is a California-based law firm with more than 200 attorneys in four major metropolitan areas of California: Los Angeles, Orange County, San Diego, and San Francisco. The firm's areas of focus include real estate, construction, land use, environmental and natural resources, corporate and securities, real estate and commercial finance, bankruptcy, restructurings and creditors' rights, joint ventures, and tax; labor and employment, and trials, litigation, risk management, and alternative dispute resolution in all of these areas. For more information about Allen Matkins please visit www.allenmatkins.com.
The EPA has loosened federal restrictions on hydrofluorocarbons used in cooling equipment, while California regulators advance controversial bans on gas water heaters and furnaces in homes. Meanwhile, enforcement actions target Volvo for alleged emissions violations, and debates continue over water allocation impacts on salmon populations and the timing of vehicle emissions standards.
United States California Environment
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Focus

EPA to formally rescind certain PFAS drinking water regulations

Smart Cities Dive – May 19

The U.S. Environmental Protection Agency (EPA) on Monday proposed two rules rolling back certain regulations limiting per- and poly-fluoroalkyl substance (PFAS) levels under the Safe Drinking Water Act. The first rule would rescind limits for four PFAS types commonly known as GenX. The second rule would allow eligible water utilities to apply for a two-year compliance delay on meeting drinking water standards for PFOS and PFOA, giving them until 2031 if they meet certain requirements. The two rules will now go through a 60-day public comment period. EPA Administrator Lee Zeldin on Monday noted the agency has resources to help with compliance efforts, including $1 billion in the Emerging Contaminants in Small or Disadvantaged Communities grant program.

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News

EPA eases refrigerant rule in a bid to address surging grocery costs

Associated Press – May 21

EPA this Thursday loosened a 2023 federal rule requiring grocery stores and air-conditioning companies to reduce greenhouse gases used in cooling equipment, a step that President Donald Trump said would help lower grocery costs. The 2023 rule imposed steep restrictions on hydrofluorocarbons, or HFCs, starting in 2026. It is not clear how much or how quickly grocery prices could be impacted, and certain industry groups said the change could even raise prices as manufacturers have already redesigned their products.

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California, Volvo reach settlement over emissions in heavy-duty vehicles

Courthouse News Service – May 18

The California Air Resources Board (CARB) announced a settlement this Monday with Volvo Group North America over alleged violations of the state’s heavy-duty engine regulations, with the company agreeing to pay almost $197 million. The enforcement focused on roughly 10,000 diesel engines for model years 2010 through 2016 that used auxiliary emission control devices, which CARB said weren’t properly disclosed during the emissions certification process. Volvo in a statement said that an internal review found no evidence that anyone acted in bad faith. The settlement includes no admission of liability.

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Salmon are at risk with federal plans to give farmers more water from Shasta Lake, critics warn

Los Angeles Times – May 21

The U.S. Bureau of Reclamation says it will increase the water it is sending to Central Valley farmlands this year from Shasta Lake, the state’s largest reservoir, citing “modest improvements” in reservoir levels. In a letter last week, an official with the State Water Resources Control Board warned the plan would “threaten conditions” for returning adult salmon in September and “lead to mortality” of salmon eggs, asking the Bureau to revise the plan.

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EPA releases $2.9 billion for lead pipe replacement across the U.S.

Smart Water Magazine – May 20

EPA has announced nearly $2.9 billion in fiscal year 2026 funding to accelerate the replacement of lead service lines (LSLs) across the country. The money flows to states through the Drinking Water State Revolving Fund, which allocated approximately $3 billion per year specifically for lead pipe replacement from FY2022 through FY2026. The funding includes approximately $27.5 million—the minimum allotment—for California. Funds can be used for identifying lead pipes, planning removal projects, and physically replacing service lines.

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EPA proposes delaying enforcement of vehicle pollution rule

Reuters – May 14

EPA on May 14 proposed delaying the enforcement of a regulation requiring ‌significant cuts in air pollution from vehicles, arguing it would save automakers $1.7 billion. Environmental groups criticized the delay, saying it would lead to an increase in preventable illness and premature deaths. The proposed rule would delay compliance deadlines for light- and medium-duty vehicles for two years until the 2029 model year.

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Bay Area air regulators split on whether to move forward with ban on gas water heaters that will cost homeowners $3,500

SiliconValley.com – May 15

The Bay Area Air District last Wednesday decided to move forward with a final vote in October on controversial rules that would ban the sale and installation of new natural gas water heaters in homes starting Jan. 1. At their board meeting, the directors weighed the air pollution benefits of the rule, which requires homeowners to replace traditional water heaters with electric heat pump models when they break or need to be replaced, with the added costs for consumers. The rule would ban the installation of new gas furnaces by Jan. 1, 2029, in addition to the ban on gas-powered water heaters next year.

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