BILL ANALYSIS                                                                                                                                                                                                    



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          SENATE THIRD READING
          SB 1456 (Simitian)
          As Amended  August 27, 2010
          2/3 vote.  Urgency 

           SENATE VOTE  :35-0  
           
           NATURAL RESOURCES   9-0         APPROPRIATIONS      17-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Chesbro, Gilmore,         |Ayes:|Fuentes, Conway,          |
          |     |Brownley,                 |     |Bradford,                 |
          |     |De Leon, Hill, Huffman,   |     |Charles Calderon, Coto,   |
          |     |Knight, Logue, Skinner    |     |Davis,                    |
          |     |                          |     |De Leon, Gatto, Hall,     |
          |     |                          |     |Harkey, Miller, Nielsen,  |
          |     |                          |     |Norby, Skinner, Solorio,  |
          |     |                          |     |Torlakson, Torrico        |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           NATURAL RESOURCES   9-0                                         
           
           ----------------------------------------------------------------- 
          |Ayes:|Chesbro, Gilmore,         |     |                          |
          |     |Brownley,                 |     |                          |
          |     |De Leon, Hill, Huffman,   |     |                          |
          |     |Knight, Logue, Skinner    |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Clarifies the circumstances under which cumulative  
          effects are not required to be examined under the California  
          Environmental Quality Act (CEQA) and makes several revisions to  
          mediation and judicial review procedures.  Specifically,  this  
          bill  :  
           
          1)Amends CEQA as follows until January 1, 2016:

             a)   Provides that a cumulative effect is not required to be  
               examined in an EIR or other CEQA document if a lead agency  
               finds that it has been adequately addressed in a prior  
               document, unless the lead agency finds that the incremental  
               effects of the project are cumulatively considerable  
               according to specified criteria (this incorporates existing  







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               provisions of the CEQA Guidelines into the statute);

             b)   Authorizes the Attorney General to request an expedited  
               schedule for resolution of any CEQA lawsuit;

             c)   Provides that a mediation proceeding conducted pursuant to  
               the law governing mediation and resolution of land use  
               disputes (Government Code Section 66030, et seq.) is intended  
               to be conducted concurrently with any judicial proceeding  
               (consistent with a settlement meeting conducted pursuant to  
               CEQA);

             d)   Authorizes any person wishing to file a CEQA lawsuit to  
               first request, within five business days, mediation with the  
               lead agency and the real party in interest.  Provides that  
               the request is deemed denied if the lead agency does not  
               respond within five business days.  If mediation is  
               conducted, provides that CEQA's statute of limitations shall  
               be tolled until the mediation is completed; 

             e)   Authorizes a party to a CEQA lawsuit to request the court  
               impose a penalty on any party making a "frivolous" claim, and  
               authorizes the court to impose a penalty up to $10,000; and,

             f)   For an organization formed after the approval of a project  
               to have standing to file a CEQA lawsuit, requires the  
               organization to have had a member present the alleged grounds  
               for noncompliance to the lead agency during the public  
               comment period or public hearing on the project (in addition  
               to the requirement in current law that a member of the  
               organization simply has objected to the project).

          2)Sunsets the above changes and reenacts existing law effective  
            January 1, 2016.  

          3)Contains a section incorporating amendments made by AB 231  
            (Huber) to resolve a potential chaptering conflict.

          4)Contains an urgency clause allowing this bill to become  
            effective upon enactment.

           EXISTING LAW  :

          1)Requires lead agencies with the principal responsibility for  
            carrying out or approving a proposed project to prepare a  







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            negative declaration, mitigated negative declaration, or  
            environmental impact report (EIR) for this action, unless the  
            project is exempt from CEQA.

          2)Authorizes a lead agency to use a tiered EIR (based on a prior  
            EIR) for a project when the prior EIR has been prepared for a  
            program, plan, policy or ordinance and the project is  
            consistent.  Provides that the tiered EIR is not required to  
            examine effects that were examined at a sufficient level of  
            detail in the prior EIR.

          3)Authorizes judicial review of CEQA actions taken by public  
            agencies, following the agency's decision to carry out or  
            approve the project, subject to statutes of limitations ranging  
            from 30 to 180 days:

             a)   Challenges alleging improper determination that a project  
               may have a significant effect on the environment, or alleging  
               an EIR doesn't comply with CEQA, must be filed within 30 days  
               of filing of the notice of approval;

             b)   Challenges alleging improper determination that a project  
               is exempt from CEQA must be filed within 35 days of filing of  
               the notice of exemption, or 180 days if no notice has been  
               filed; and,

             c)   Challenges alleging an agency has failed to determine  
               whether a project has a significant effect on the environment  
               must be filed within 180 days.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, minor state costs, if any.  Potential state savings of  
          an unknown amount to the extent state agencies serving as lead  
          agencies accept requests for mediation as an alternative to  
          litigation, which typically is less costly than litigation.

           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  







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          prepare an EIR.  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.  

          Generally, CEQA actions taken by local public agencies can be  
          challenged in Superior Court once the agency approves or  
          determines to carry out the project.  CEQA appeals are subject to  
          unusually short statutes of limitations.  Under current law, court  
          challenges of CEQA decisions generally must be filed within 30-35  
          days, depending on the type of decision.  In addition, CEQA  
          requires the courts to give CEQA cases preference over all other  
          civil actions, so that the cases are quickly heard and determined.
           
           According to the author, this bill responds to the need for  
          mediation to resolve CEQA disputes to avoid litigation while  
          ensuring that mediation after an action is filed does not affect  
          the timing of any judicial proceeding; establishing a process for  
          an expedited schedule to resolve cases while allowing any party to  
          request imposition of a penalty for frivolous litigation; ensuring  
          more accountability for an organization challenging a project that  
          is formed after project approval; and, establishing procedures for  
          tiering environmental documents.


           Analysis Prepared by  :  Lawrence Lingbloom / NAT. RES. / (916)  
          319-2092 


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