APPEALS COURT NIXES EIR EFFECT ON NEWHALL LAND PROJECT WATER SUPPLY UNCERTAIN.

Byline: Kathleen Sweeney Staff Writer

SANTA CLARITA - An appellate court has thrown out an environmental impact report that proposes water transfers from Kern County to Santa Clarita for future housing developments, including the Newhall Ranch project.

The 2nd District Court of Appeals in Los Angeles rejected the report Thursday, saying it relies on information in another environmental report that was discredited by the state Supreme Court - a ruling environmentalists are calling a victory in protecting the water supply and the Santa Clara River.

The Castaic Lake Water Agency relied on information in the 1995 Monterey Agreement between the Department of Water Resources and various State Water Project contractors. That agreement permitted transfers of water entitlements between contractors, and CLWA used information about environmental impacts to Kern County in its own EIR regarding the transfer of 41,000 acre-feet of water to Santa Clarita.

``It's unfortunate and costly and creates confusion in some camps,'' said Robert Sagehorn, CLWA general manager, adding that the decision says there are no environmental flaws in the local agency's EIR other than it relies on information in the Monterey Agreement.

The Castaic Lake Water Agency has several options: To rewrite its environmental report, to wait for a Superior Court decision on the discredited report, or to appeal the recent court judgment.

Friends of the Santa Clara River filed suit against the water wholesaler, claiming the CLWA failed to comply with the California Environment Quality Act, which requires EIRs for most construction projects.

``This is very significant because it affects every water supply certification in the region,'' said Ron Bottorff, chairman of the environmental group. ``We're satisfied to see the court uphold the California Environment Quality Act.''

Though environmentalists say this will hinder the future of the 22,000- home Newhall Ranch project, officials with The Newhall Land and Farming Company believe the ruling will have little impact on the development.

``We would probably build out three-quarters of Newhall Ranch without relying on the State Water Project,'' said Marlee Lauffer, Newhall Land spokeswoman.

The project requires 17,600 acre-feet of water, of which only 1,600 acre- feet is state water, she said. Newhall Land officials are reviewing the decision.

The county Board of Supervisors is expected to vote on the Newhall Ranch EIR on Jan. 22, and it's unclear whether the appellate court ruling will affect the board's ruling. The supervisors approved the proposed project a few years ago when they thought it was going to receive state water.