BILL NUMBER: SB 827	CHAPTERED
	BILL TEXT

	CHAPTER  206
	FILED WITH SECRETARY OF STATE  OCTOBER 11, 2009
	APPROVED BY GOVERNOR  OCTOBER 11, 2009
	PASSED THE SENATE  SEPTEMBER 12, 2009
	PASSED THE ASSEMBLY  SEPTEMBER 12, 2009
	AMENDED IN ASSEMBLY  SEPTEMBER 12, 2009
	AMENDED IN ASSEMBLY  SEPTEMBER 4, 2009

INTRODUCED BY   Senator Wright

                        MARCH 19, 2009

   An act to add and repeal Section 40440.13 of the Health and Safety
Code, relating to the South Coast Air Quality Management District.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 827, Wright. South Coast Air Quality Management District: CEQA:
permits.
   (1) The California Environmental Quality Act (CEQA) requires a
lead agency, as defined, to prepare, or cause to be prepared, and
certify the completion of, an environmental impact report (EIR) on a
project that it proposes to carry out or approve that may have a
significant effect on the environment or to adopt a negative
declaration if it finds that the project will not have that effect.
CEQA also requires a lead agency to prepare a mitigated negative
declaration for a project that may have a significant effect on the
environment if revisions in the project would avoid or mitigate that
effect and there is no substantial evidence that the project, as
revised, would have a significant effect on the environment. CEQA
exempts certain specified projects from its requirements.
   Under existing law, every air pollution control district or air
quality management district in a federal nonattainment area for any
national ambient air quality standard is required to establish by
regulation, a system by which all reductions in emissions of air
contaminants that are to be used to offset certain future increases
in the emission of air contaminants are banked prior to use. The
South Coast Air Quality Management District (district) promulgated
various rules establishing offset exemptions, providing Priority
Reserve offset credits, and creating or tracking credits used for
offset exemption or Priority Reserve projects. In Natural Resources
Defense Council v. South Coast Air Quality Management District
(Super. Ct. Los Angeles County, 2007, No. BS 110792), the superior
court found the promulgation of certain of these district rules to be
in violation of CEQA.
   This bill would authorize the district to issue permits under
specified circumstances, notwithstanding this court decision. The
provisions of the bill would be repealed on May 1, 2012.
   (2) This bill would state the findings and declarations of the
Legislature concerning the need for special legislation.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) As a result of the superior court decision in Natural
Resources Defense Council v. South Coast Air Quality Management
District (Super. Ct. Los Angeles County, 2007, No. BS 110792) holding
that the South Coast Air Quality Management District (district)
violated the requirements of the California Environmental Quality Act
(CEQA) (Division 13 (commencing with Section 21000) of the Public
Resources Code) in the promulgation of certain district rules, the
district is unable to issue over a thousand pending permits that rely
on the district's internal offset bank to offset emissions.
   (b) The district may also have to set aside several thousand
permits that were previously issued in reliance on the district's
internal offset bank.
   (c) Prompt legislative action is necessary as an interim measure;
otherwise projects will be stopped from going forward or frozen in
place, representing significant losses to the economy and the loss of
numerous well-paying jobs.
   (d) Nothing in the case described in subdivision (a) requires the
setting aside of any permit issued by the South Coast Air Quality
Management District to any essential public service, that relied on
Rule 1309.1, nor any permit that relied on Rule 1304, between
September 8, 2006, and November 3, 2008.
   (e) Section 40440.13 of the Health and Safety Code is not intended
to affect any pending litigation challenging the district's internal
offset accounts in federal court, or to give an advantage to a party
in that litigation.
   (f) The district shall have the authority to carry out the
provisions of this act.
  SEC. 2.  Section 40440.13 is added to the Health and Safety Code,
to read:
   40440.13.  (a) Notwithstanding the decision of the court in
Natural Resources Defense Council v. South Coast Air Quality
Management District (Super. Ct. Los Angeles County, 2007, No. BS
110792), the south coast district may issue permits in reliance on,
and in compliance with, south coast district Rule 1304, as amended on
June 14, 1996, and Rule 1309.1, as amended May 3, 2002, for
essential public services, as defined in subdivision (m) of Rule
1302, as amended December 6, 2002.
   (b) Nothing in this section affects the decision in the case
described in subdivision (a) concerning the adoption, readoption, or
amendment, or environmental review, of south coast district Rule
1315.
   (c) (1) In implementing subdivision (a), the south coast district
shall rely on the offset tracking system used prior to the adoption
of Rule 1315 of the south coast district until a new tracking system
is approved by the United States Environmental Protection Agency and
is in effect, at which point that new system shall be used by the
south coast district.
   (2) In addition to using the prior offset tracking system, the
district shall also make use of any emission credits that have
resulted from emission reductions and shutdowns from minor sources
since 1990. The district shall make any necessary submissions to the
United States Environmental Protection Agency with regard to the
crediting and use of emission reductions and shutdowns from minor
sources.
   (d) This section shall remain in effect only until May 1, 2012,
and as of that date is repealed, unless a later enacted statute, that
is enacted before May 1, 2012, deletes or extends that date.
  SEC. 3.  The Legislature finds and declares that a special law is
necessary and that a general law cannot be made applicable within the
meaning of Section 16 of Article IV of the California Constitution
because of unique circumstances concerning the South Coast Air
Quality Management District.