BILL ANALYSIS AB 1846 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1846 (V. Manuel Perez) As Amended June 21, 2010 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |74-0 |(May 6, 2010) |SENATE: |33-0 |(August 5, | | | | | | |2010) | ----------------------------------------------------------------- Original Committee Reference: NAT. RES. SUMMARY : Amends the California Environmental Quality Act (CEQA) to expand the authorized use of a "focused" environmental impact report (EIR) for installation of mandated pollution control equipment also to include a pollution control project that reduce greenhouse gas (GHG) emissions to comply with the California Global Warming Solutions Act (AB 32). Additionally authorizes the use of a focused EIR for projects consisting solely of GHG pollution control equipment or component installation pursuant to AB 32. The Senate amendments clarify that references in this bill to a rule or regulation under the AB 32 or all projects reducing GHGs under AB 32 instead refer to a rule or regulation requiring the installation of pollution control equipment required under AB 32. EXISTING LAW : 1)Pursuant to CEQA: a) Requires lead agencies with the principal responsibility for carrying out or approving a proposed project to prepare a negative declaration, mitigated negative declaration, or EIR for this action, unless the project is exempt from CEQA. b) Authorizes use of a "focused" EIR (an EIR that evaluates potential impacts on a limited number of environmental issue areas because a prior EIR has evaluated the full range of impacts) for projects that consist solely of the installation of pollution control equipment required by specified agencies [i.e., Air Resources Board (ARB), local air districts, state and regional water boards, Department AB 1846 Page 2 of Toxic Substances Control, and the Integrated Waste Management Board]. 2)Pursuant to AB 32, ARB is required to adopt a statewide GHG emissions limit equivalent to 1990 levels by 2020 and to adopt rules and regulations to achieve maximum technologically feasible and cost-effective GHG emission reductions. AS PASSED BY THE ASSEMBLY , this bill: 1)Indicated that the intent of the measure is to conform and clarify, and not to supersede, existing law. 2)Amended CEQA to clarify that expedited review procedures for projects to install mandated pollution control equipment, including authority to utilize a focused EIR, apply to projects that reduce GHG emissions to comply with AB 32. FISCAL EFFECT : According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, this bill has negligible state costs. COMMENTS : CEQA provides a process for evaluating the environmental effects of applicable projects undertaken or approved by public agencies. If a project is not exempt from CEQA, an initial study is prepared to determine whether the project may have a significant effect on the environment. If the initial study shows that there would not be a significant effect on the environment, the lead agency must prepare a negative declaration. If the initial study shows that the project may have a significant effect on the environment, the lead agency must prepare an EIR. Generally, an EIR must accurately describe the proposed project, identify and analyze each significant environmental impact expected to result from the proposed project, identify mitigation measures to reduce those impacts to the extent feasible, and evaluate a range of reasonable alternatives to the proposed project. Prior to approving any project that has received environmental review, an agency must make certain findings. If mitigation measures are required or incorporated into a project, the agency must adopt a reporting or monitoring program to ensure compliance with those measures. In 1993, as part of a package of CEQA reforms, the Legislature AB 1846 Page 3 authorized the use of a "focused" EIR for specified projects, including installation of pollution control equipment pursuant to air, water, toxics, and waste regulations. A focused EIR expedites the review process by limiting the analysis to project-specific significant effects that were not discussed in the analysis of the underlying regulation. A number of AB 32 regulations will require many California-based industries to make significant technological investments on their facilities or equipment for the purposes of complying with AB 32. California's existing environmental laws allow state-regional water and air agencies to utilize a focused EIR for projects seeking to install pollution control equipment. There is nothing in current law that prescribes this same flexibility for projects seeking to install pollution control equipment for the purposes of complying with AB 32. Analysis Prepared by : Jessica Westbrook / NAT. RES. / (916) 319-2092 FN: 0005669