The Attorney General's opposition centers on PHMSA's controversial reclassification of Lines CA-324 and CA-325 from intrastate to interstate pipelines on December 17, 2025, which purportedly shifted regulatory oversight from California's Office of the State Fire Marshal to federal authorities. PHMSA subsequently issued Sable an emergency permit waiving compliance with safety regulations requiring evaluation and remediation of pipeline corrosion, though that emergency permit has since expired and is being challenged in ongoing litigation by the California Department of Justice.
Bonta argues that PHMSA illegally asserted exclusive federal jurisdiction over the onshore pipelines and lacks authority to issue any special permit because the pipelines remain intrastate and therefore subject to state regulation. The pipelines had been shut down for a decade following the 2015 Refugio Beach oil spill, when a corroded segment ruptured and released more than 120,000 gallons of crude oil near Santa Barbara, with at least 21,000 gallons entering the Pacific Ocean and causing serious environmental and economic damage.
The Attorney General's comment letter asserts that PHMSA cannot unilaterally modify or disregard the federal court-approved Consent Decree that acknowledges the State Fire Marshal's role in reviewing pipeline restarts, and that the agency has failed to justify the need for an emergency permit or conduct robust environmental analysis including National Environmental Protection Act review. The opposition comes as part of broader litigation challenging both the pipeline reclassification and DOE Secretary Chris Wright's "Pipeline Capacity Prioritization and Allocation Order" issued under the Defense Production Act.
The dispute stems from President Trump's "National Energy Emergency" Executive Order, which Bonta has also challenged, and PHMSA's December 22, 2025 approval of Sable's plan to restart oil production based on that order. The Attorney General is seeking to halt the use of the DPA order as the basis for Sable's pipeline restart, arguing it unlawfully purports to supersede state law, state court orders, and the federal Consent Decree.
"Let's be clear: we do not have a 'National Energy Emergency.' President Trump is simply prioritizing the fossil fuel industry, ensuring that they can continue to line their own pockets by illegally restarting oil transportation through California's pipelines at the expense of our public health and environment," said Attorney General Bonta. "We are making it crystal clear once again that these pipelines fall under California's jurisdiction, and the federal government cannot illegally help Sable evade state regulation and federal safety requirements by granting this permit."
The 2015 Refugio Beach spill that led to the pipeline shutdown caused widespread environmental damage, sickening communities through hazardous oil and fumes, contaminating coastal waters, harming hundreds of marine mammals and seabirds, and forcing months-long closures of beaches and fisheries. The resulting Consent Decree, to which PHMSA is a party, expressly acknowledges and approves the State Fire Marshal's regulatory role over any planned pipeline restart.
The Attorney General's challenge represents the latest escalation in a jurisdictional battle between California and federal authorities over pipeline regulation, with broader implications for state versus federal authority over energy infrastructure and environmental protection. The ongoing litigation could determine whether federal agencies can unilaterally reclassify intrastate pipelines to circumvent state safety oversight.