BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1846
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1846 (V. Manuel Perez)
          As Amended  June 21, 2010
          Majority vote
           
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          |ASSEMBLY:  |74-0 |(May 6, 2010)   |SENATE: |33-0 |(August 5,     |
          |           |     |                |        |     |2010)          |
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           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  








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               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  








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          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 


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