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Counsel outlines liability and regulatory risks of local treatment versus Solvang connection

Los Olivos Community Services District · May 29, 2025
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Summary

Legal counsel reviewed regulatory, operational and third‑party liability differences between owning a local treatment plant (higher exposure, insurance and compliance costs) and sending wastewater to Solvang (shared/regional exposure); counsel also flagged PFAS and CEQA/exposure risk for larger environmental documents.

Board counsel delivered a high‑level liability overview distinguishing regulatory (uninsurable) exposure, facility/infrastructure liability and third‑party claims. Counsel said that if the district sends wastewater to a regional plant (Solvang), much of the treatment liability is shared or borne by Solvang under contract; by contrast, operating a local plant would make the district responsible for biosolids, changing standards and ongoing regulatory compliance.

Counsel cited multi‑district litigation trends (PFAS-related examples in other states) to illustrate the scope of potential future regulatory changes and the costs of operating a treatment facility over decades. Counsel also said larger environmental documents (EIRs) create greater exposure to legal challenge and delay; the Solvang option typically requires more limited environmental review and may therefore carry lower legal‑challenge risk.