BILL ANALYSIS AB 1846 Page 1 Date of Hearing: April 28, 2010 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 1846 (V. Manuel Perez) - As Amended: April 14, 2010 Policy Committee: Natural ResourcesVote:9-0 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill expands current law to allow use of a "focused" environmental impact report (EIR) for installation of pollution control equipment that reduces greenhouse gas emissions (GHGs) to comply with AB 32. Specifically, this bill: 1)Requires any specified public agency to perform an environmental analysis of reasonably foreseeable compliance methods whenever it adopts, pursuant to AB 32, a rule or regulation requiring installation of pollution control equipment or a performance standard or treatment requirement. 2)Specifies the following agencies as those that must perform the analysis described above: the Air Resources Board, the State Water Resources Control Board and the regional boards, the Department of Toxic Substances Control, the Department of Resources Recycling and Recovery, the California Energy Commission (CEC) and the California Public Utilities Commission (CPUC). 3)Amends the California Environmental Quality Act (CEQA) to expand the authorized use of a focused EIR to include installation of pollution control equipment that reduces GHGs to comply with AB 32. FISCAL EFFECT Absorbable costs. COMMENTS AB 1846 Page 2 1)Rationale . Proponents contend that projects undertaken to comply with AB 32's GHG reduction requirements should benefit from the same focused EIR process available to projects to comply with other pollution control requirements. The author indicates the intent of the bill is to conform and clarify existing law, not to supersede it. 1) Background . a) Environmental Impact Reports . CEQA obligates public officials to consider the environmental effects of their decisions. The public agency that proposes to approve a project-known as the "lead agency"-must conduct an initial study of the project to determine if it may have significant, adverse environmental effects. As a result of this initial study, the lead agency may issue (i) a "negative declaration," meaning the project will have no negative environmental effects; (ii) a "mitigated negative declaration," meaning the project will have environmental effects that are easily remedied; or (iii) an EIR, a document that show public officials how to avoid or mitigate the serious environmental effects of a project. CEQA allows specified lead agencies to issue less extensive EIRs, known as focused EIRs, when a project is to install pollution control equipment required by those agencies. In such cases, the lead agency completed a generic EIR contemplating all possible environmental effects of installation of the pollution control equipment prior to requiring its installation. The lead agencies authorized to issue focused EIRs are Air Resources Board (ARB), local air districts, state and regional water boards, Department of Toxic Substances Control, and the Integrated Waste Management Board. b) AB 32 (N??ez, Chapter 455, Statutes of 2006) requires California to limit its emissions of GHGs so that, by 2020, those emissions are equal to what they were in 1990. To that end, AB 32 requires ARB to quantify the state's 1990 GHG emissions and to adopt, by January 1, 2009, a "scoping plan" that describes the board's plan for achieving the maximum technologically feasible and cost-effective reductions of GHG emissions reductions by 2020. In keeping AB 1846 Page 3 with AB 32, ARB adopted its AB 32 scoping plan in December of 2008. Numerous state agencies soon will issue rules and regulations limiting GHG emissions, consistent with AB 32. 1)Support . This bill is supported by business organizations, such as the California Council for the Environment and Economic Balance (the bill's sponsor) and the California Chamber of Commerce, the members of which regularly undertake projects that would be affected by this bill. 2)There is no registered opposition to this bill. Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081