BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 880
                                                                  Page 1

          Date of Hearing:  May 2, 2011

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                AB 880 (V. Manuel Perez) - As Amended:  March 25, 2011
           
          SUBJECT  :  Environmental quality:  CEQA:  expedited environmental 
          review

           SUMMARY  :  Amends the California Environmental Quality Act (CEQA) 
          to expand the authorized use of a "focused" environmental impact 
          report (EIR) for installation of required pollution control 
          equipment also to include projects that consist of new or 
          modified equipment, implementation of other facility process 
          changes, or both, necessary or used to achieve compliance with a 
          rule or regulation adopted pursuant to the California Global 
          Warming Solutions Act (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 Ýi.e., Air Resources Board (ARB), local 
               air districts, state and regional water boards, Department 
               of Toxic Substances Control, and the Integrated Waste 
               Management Board].  2010 amendments include installation of 
               pollution control equipment that reduces greenhouse gas 
               (GHG) emissions as required by a rule or regulation 
               pursuant to AB 32, including rules or regulations adopted 
               by the California Energy Commission and the Public 
               Utilities Commission.

          2)Pursuant to AB 32, requires ARB to adopt a statewide GHG 
            emissions limit equivalent to 1990 levels by 2020 and to adopt 








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            rules and regulations to achieve maximum technologically 
            feasible and cost-effective GHG emission reductions.

           THIS BILL  expands eligibility for the focused EIR from 
          installation of pollution control equipment that is required by 
          regulation to new or modified equipment and implementation of 
          other facility process changes that are "necessary or used to 
          achieve compliance with a performance standard, treatment 
          requirement, energy efficiency standard, or compliance mechanism 
          included in a rule or regulation" adopted pursuant to AB 32.

           FISCAL EFFECT  :  Unknown

           COMMENTS :

           1)Background.   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 
            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 focused EIR 
            is not required to address growth-inducing impacts or 








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            cumulative impacts, and discussion of alternatives is limited 
            to alternative means of compliance.

            AB 1846 (V. Manuel Perez), Chapter 195, Statutes of 2010, 
            enacted a modest expansion of the focused EIR for pollution 
            control equipment to clarify that pollution control equipment 
            to reduce GHG emissions required by AB 32 is eligible.

           2)Focused EIR should be limited to discreet emission reduction 
            measures required by regulation.   This bill proposes to 
            redefine eligibility for a focused EIR to include a wide range 
            of measures undertaken to achieve compliance with AB 32.  This 
            could include an unpredictable range of projects undertaken by 
            major GHG emitters, such as refinery and power plant upgrades, 
            that may reduce GHG emissions, but have a range of other 
            significant effects that might not be analyzed and mitigated 
            if a focused EIR is used.  This bill appears to make the 
            focused EIR available to discretionary projects which may 
            achieve incidental GHG reductions, rather than specific 
            pollution control projects required by a regulation.

           3)Is ARB's AB 32 CEQA work an adequate basis for 
            project-specific CEQA relief?   Implementation of AB 32 has 
            been suspended due to a recent court ruling in a lawsuit 
            alleging deficiencies in ARB's CEQA analysis.  On March 18, 
            2011, the San Francisco Superior Court issued an opinion in 
            Association of Irritated Residents, et al v. ARB, finding that 
            ARB had failed to comply with CEQA in adopting its AB 32 
            Scoping Plan and enjoining any further AB 32 rulemaking until 
            ARB remedies its CEQA analysis.  The court found that ARB's 
            discussion of alternatives was inadequate and that ARB 
            improperly approved the Scoping Plan prior to completing its 
            environmental review.




















                                                                  AB 880
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           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          American Council of Engineering Companies of California
          California Chamber of Commerce
          California Construction & Industrial Materials Association
          California Council for Environmental and Economic Balance
          California Manufacturers & Technology Association
          Chamber of Commerce Alliance
          Fullerton Chamber of Commerce
          Industrial Environmental Association
          Oxnard Chamber of Commerce
          Southern California Edison

           Opposition 
           
          American Lung Association
          Asian Pacific Environmental Network
          California League of Conservation Voters
          California Environmental Justice Alliance
          Center for Biological Diversity
          City of Richmond
          Environmental Health Coalition
          Planning and Conservation League
          Sierra Club California
           

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