Environmental groups have joined a lawsuit challenging Los Angeles and the Los Angeles Department of Water and Power (LADWP) over alleged violations of the California Environmental Quality Act (CEQA) related to a hydrogen retrofit project at the Scattergood power plant.
Communities for a Better Environment and Los Angeles Waterkeeper filed the initial lawsuit, and additional environmental organizations have now joined the case. The plaintiffs allege that the city and LADWP failed to complete adequate environmental review before moving forward with plans to retrofit the fossil fuel power plant to burn hydrogen.
The Scattergood Generating Station sits in El Segundo near sensitive coastal ecosystems and residential neighborhoods. The project involves converting the plant's natural gas turbines to run on hydrogen as part of California's push toward decarbonized electricity generation. LADWP has characterized the retrofit as necessary for meeting state climate goals while maintaining grid reliability.
Environmental groups counter that CEQA requires thorough analysis of project impacts before approval. The law mandates public review of potential environmental consequences, including greenhouse gas emissions, air quality effects, water use, and alternatives to proposed projects. The lawsuit argues LADWP's environmental documentation was inadequate and did not fully examine the hydrogen project's real-world implications.
Key concerns include hydrogen production methods. Most commercial hydrogen today comes from steam reforming of natural gas, which releases carbon dioxide. Green hydrogen, produced by electrolysis powered by renewable electricity, remains expensive and limited in supply. The groups argue LADWP failed to specify the hydrogen source and thus could not accurately assess lifecycle emissions.
Air quality impacts matter in the South Bay area, which already struggles with pollution from refineries, ports, and vehicle traffic. Burning hydrogen produces only water vapor, but the lawsuit suggests CEQA review should examine whether retrofitting existing fossil infrastructure diverts resources from full decarbonization through renewable energy and storage.
Water consumption also factored into the environmental groups' concerns. Hydrogen production via electrolysis requires substantial water inputs. CEQA mandates disclosure of water impacts, particularly in drought-prone California.
The lawsuit represents a broader tension in California's climate strategy. State regulators have approved hydrogen pathways as part of the grid's 2045 decarbonization target, recognizing that some industrial and power-sector applications may struggle to electrify. Yet environmental justice advocates argue the state should prioritize renewable energy and storage over maintaining existing power plant infrastructure, even in retrofitted form.
LADWP has not yet publicly responded to the additional groups joining the case. The agency previously defended its environmental review process as compliant with state law.
The litigation unfolds as California transitions its power sector. The state closed its last operating nuclear plant, Diablo Canyon, in 2024 and phased out coal generation. Natural gas plants still provide backup power during peak demand and evening hours when solar generation declines. Hydrogen retrofit proposals attempt to preserve that backup capacity while eliminating carbon emissions, but environmental groups want assurance that such projects receive genuine environmental scrutiny rather than expedited approval.