County of San Luis Obispo Prevails in Its Appeal Over Court-Ordered Water Releases from Lopez Lake
Author: Public Works
Date: 12/4/2025 3:16 PM
The successful appeal vacates a lower court order to release more water from Lopez Lake into Arroyo Grande Creek.
On December 3, 2025, the United States Court of Appeals for the Ninth Circuit ruled in favor of the County of San Luis Obispo in a legal battle over water releases from Lopez Lake. A group of non-profit environmental groups sued the County alleging that the County’s operation of the dam violated the Endangered Species Act and sought an injunction while the case is pending. The lower court had ordered the County to release hundreds of millions of additional gallons of water from the lake to protect steelhead trout.
The County appealed that decision arguing such an increase could impact other protected species like California red-legged frogs and tidewater goby, in addition to impacts to local water supply for 50,000 County residents. The Ninth Circuit agreed, and in its three-panel decision the Justices wrote:
“This rationale, however, collapses where protecting one listed species might jeopardize another—as here. This conflict is not merely between unchecked development and conservation. It is additionally between the interests of multiple protected species. The injunction at issue seeks to protect the SCCC steelhead. But evidence presented to the district court also shows that the injunction could harm the California red-legged frog and the tidewater goby, both of which are also entitled to ESA protection.”
While this was an important milestone victory, the case is still proceeding in court. The appellate court determined that the district court’s analysis did not satisfy the standard for a mandatory preliminary injunction and ordered the district court to “weigh the balance of equities and the public interest solely as they bear on those other species.”
District Four Supervisor Jimmy Paulding praised the ruling. “The County has always been committed to balancing protection of the creek’s natural habitat with maintaining a vital water resource for the communities it serves,” he said. “This ruling underscores the complexity of the creek system and the importance of relying on the appropriate regulatory agencies rather than the courts. We recognize the frustration this situation has caused our south county communities, and we remain committed to working together to reach a resolution.”
Chair of the Board and District 3 Supervisor Dawn Ortiz-Legg added, “We look forward to closing this chapter and continuing to work toward a resolution with the plaintiffs. It is essential that the County be able to move forward with the process of securing approval of the Habitat Conservation Plan and implementing it through collaboration, not litigation.”
Public Works Director John Diodati said his staff has worked hard over many years on an updated habitat conservation plan application that was submitted to the National Marine Fisheries and U.S. Fish and Wildlife Service in October. “Our priority has always been a healthy watershed and a reliable water supply. This ruling reinforces the balanced approach we've taken for years, and it allows us to continue working with federal experts on the submitted Habitat Conservation Plan that is intended to protect species and our community,” said Diodati.
A copy of that decision is here.
