BILL ANALYSIS Ó AB 880 Page 1 Date of Hearing: May 27, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 880 (V. Manuel Perez) - As Amended: May 10, 2011 Policy Committee: Natural ResourcesVote:8-1 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill expands the types of projects for which use of a focused environmental impact report (EIR) is authorized to include installation of a direct greenhouse gas emissions reduction required by a rule adopted pursuant to the California Global Warming Solutions Act (AB 32). FISCAL EFFECT 1)Negligible state costs. 2)Potential minor state savings, to the extent state agencies are lead agencies able to complete a focused EIR instead of a full EIR. COMMENTS 1)Rationale . The author contends a lead agency that undertakes measures to reduce greenhouse gases pursuant to AB 32 should be allowed to use a focused EIR, as currently is allowed for required installation of pollution control equipment. 2)Background. a) Environmental Impact Reports . CEQA obligates public officials to consider the environmental effects of their decisions. The public agency that proposes to approve a project-known as the "lead agency"-must conduct an initial study of the project to determine if it may have significant, adverse environmental effects. AB 880 Page 2 As a result of this initial study, the lead agency may issue (i) a "negative declaration," meaning the project will have no negative environmental effects; (ii) a "mitigated negative declaration," meaning the project will have environmental effects that are easily remedied; or (iii) an EIR, a document that show public officials how to avoid or mitigate the serious environmental effects of a project. CEQA allows specified lead agencies to issue less extensive EIRs, known as focused EIRs, when a project is to install pollution control equipment required by those agencies. In such cases, the lead agency completed a generic EIR contemplating all possible environmental effects of installation of the pollution control equipment prior to requiring its installation. The lead agencies authorized to issue focused EIRs are the Air Resources Board (ARB), local air districts, state and regional water boards, the Department of Toxic Substances Control, and the Integrated Waste Management Board. b) AB 32 (Núñez, Chapter 488, Statutes of 2006) requires California to limit its emissions of GHGs so that, by 2020, those emissions are equal to what they were in 1990. To that end, AB 32 requires ARB to quantify the state's 1990 GHG emissions and to adopt, by January 1, 2009, a "scoping plan" that describes the board's plan for achieving the maximum technologically feasible and cost-effective reductions of GHG emissions reductions by 2020. In keeping with AB 32, ARB adopted its AB 32 scoping plan in December of 2008. Numerous state agencies soon will issue rules and regulations limiting GHG emissions, consistent with AB 32. 3)Related Legislation. AB 1846 (V.M. Perez, Chapter 195, Statutes of 2010) expands current law to allow use of a focused EIR for installation of pollution control equipment that reduces GHGs to comply with AB 32. 4)Support. This bill is supported by a long list of commercial interests that could employ focused EIRs in place of full EIRs. 5)Opposition. This bill is opposed by the City of Richmond and several organizations that advocate for the environment and AB 880 Page 3 public Health. Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081