BILL ANALYSIS Ó AB 880 Page 1 ASSEMBLY THIRD READING AB 880 (V. Manuel Pérez) As Amended May 10, 2011 Majority vote NATURAL RESOURCES 8-1 APPROPRIATIONS 17-0 ----------------------------------------------------------------- |Ayes:|Chesbro, Knight, |Ayes:|Fuentes, Harkey, | | |Brownley, Dickinson, | |Blumenfield, Bradford, | | |Grove, Halderman, | |Charles Calderon, Campos, | | |Huffman, Monning | |Davis, Donnelly, Gatto, | | | | |Hall, Hill, Lara, | | | | |Mitchell, Nielsen, Norby, | | | | |Solorio, Wagner | |-----+--------------------------+-----+--------------------------| |Nays:|Skinner | | | | | | | | ----------------------------------------------------------------- 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 installation of a direct emission reduction required by a rule or regulation adopted by the Air Resources Board (ARB) pursuant to the California Global Warming Solutions Act (AB 32). EXISTING LAW : 1)Requires, pursuant to CEQA, 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. 2)Authorizes, pursuant to CEQA, 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., 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 AB 880 Page 2 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. 3)Requires, pursuant to AB 32, ARB 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. FISCAL EFFECT : According to the Assembly Appropriations Committee, negligible state costs and potential minor state savings, to the extent state agencies are lead agencies able to complete a focused EIR instead of a full EIR. 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 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 AB 880 Page 3 required to address growth-inducing impacts or cumulative impacts, and discussion of alternatives is limited to alternative means of compliance. AB 1846 (V. Manuel Perez), Chapter 195, Statutes of 2010, enacts 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. AB 880 (V. Manuel Pérez) proposes another modest expansion to include direct emission reduction projects required by a regulation adopted by ARB, when the regulation itself was review pursuant to CEQA. Analysis Prepared by : Lawrence Lingbloom / NAT. RES. / (916) 319-2092 FN: 0001061