BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1846
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          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  









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           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  








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               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