BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 900|
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                                 THIRD READING


          Bill No:  AB 900
          Author:   Buchanan (D) and Gordon (D)
          Amended:  9/8/11 in Senate
          Vote:     21

           
          PRIOR VOTES NOT RELEVANT 


           SUBJECT  :    Jobs and Economic Improvement Through 
          Environmental 
                      Leadership Act

           SOURCE  :     Author


           DIGEST  :    This bill enacts the Jobs and Economic 
          Improvement Through Environmental Leadership Act of 2011, 
          and establishes specified judicial review procedures for 
          the judicial review of the environmental impact report 
          (EIR) and approvals granted for a leadership project 
          related to the development of a residential, retail, 
          commercial, sports, cultural, entertainment, or 
          recreational use project, or clean renewable energy or 
          clean energy manufacturing project.  The Act authorizes the 
          Governor to certify a leadership project for streamlining 
          pursuant to the act if certain conditions are met.  This 
          bill repeals the Act as of January 1, 2015.

           ANALYSIS  :    Existing law, under the California 
          Environmental Quality Act (CEQA):

          1. Requires lead agencies with the principal responsibility 
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             for carrying out or approving a proposed discretionary 
             project to prepare a negative declaration, mitigated 
             declaration, or EIR for this action, unless the project 
             is exempt from CEQA (CEQA includes various statutory 
             exemptions, as well as categorical exemptions in the 
             CEQA guidelines).  (Public Resources Code §21000 et 
             seq.).

          2. Sets requirements relating to preparation, review, 
             comment, approval and certification of environmental 
             documents, as well as procedures relating to an action 
             or proceeding to attack, review, set aside, void, or 
             annul various actions of a public agency on the grounds 
             of noncompliance with CEQA.

          This bill enacts the Jobs and Economic Improvement Through 
          Environmental Leadership Act of 2011, setting procedures 
          relating to an "environmental leadership development 
          project" (ELDP) which:

          1. Require an ELDP to be one of the following (§21180(b)):

             A.    A residential, retail, commercial, sports, 
                cultural, entertainment, or recreational use project 
                that is LEED certified (silver or better); achieves a 
                10% greater standard for transportation efficiency 
                (as defined) than for comparable projects; located on 
                an infill site; and, if within a metropolitan 
                planning organization where a sustainable communities 
                strategy or alternative planning strategy is in 
                effect, is consistent with certain requirements 
                specified for that project in the strategy while 
                meeting certain related requirements.

             B.    A clean renewable energy project that generates 
                electricity exclusively through wind or solar, but 
                not including waste incineration or conversion.

             C.    A clean energy manufacturing project that 
                manufactures products, equipment, or components used 
                for renewable energy generation, energy efficiency, 
                or for production of clean alternative fuel vehicles.

          2. Define an "applicant" to be a "public or private entity 

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             or its affiliates, or a person or entity that undertakes 
             a public works project, that proposes a project and its 
             successors, heirs, and assignees."  (§21180(a)).

          3. Prohibit the Act from applying to a project if the 
             applicant fails to notify a lead agency prior to release 
             of the draft EIR for public comment that the applicant 
             is electing to proceed pursuant to the Act.  The lead 
             agency must notify the Secretary of the Natural 
             Resources Agency if the applicant fails to provide this 
             notice.  (§21181).

          4. Set procedures relating to the governor for an ELDP 
             which:

             A.    Authorize a person proposing to construct an ELDP 
                to apply to the governor for certification that the 
                ELDP is eligible for streamlining under the Act.  The 
                person must supply evidence and materials that the 
                governor deems necessary to make a decision on the 
                application, which must be made available to the 
                public at least 15 days before the governor certifies 
                a project.  (§21182).

             B.    Authorize the governor to certify an ELDP for 
                streamlining if certain conditions are met (e.g., 
                project will result in a minimum investment of $100 
                million; project creates high wage, highly skilled 
                jobs that pay prevailing wages and living wages; 
                project does not result in any net additional 
                emission of greenhouse gases, as determined by the 
                State Air Resources Board; project applicant has 
                entered into a binding and enforceable agreement that 
                all mitigation measures will be conditions of project 
                approval; project applicant pays Court of Appeal 
                costs in hearing and deciding any case, including 
                costs for appointment of a special master, and costs 
                of preparing the administrative record).  (§21183).

             C.    Require the governor to make a determination that 
                each of the above conditions (4 b) has been met prior 
                to certifying a project, and these findings are not 
                subject to judicial review.  If the governor 
                determines that an ELDP is eligible for streamlining 

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                pursuant to the Act, that determination and any 
                supporting information must be submitted to the Joint 
                Legislative Budget Committee for review and 
                concurrence or nonconcurrence.  The Committee must 
                concur or nonconcur within 30 days of receiving the 
                determination, and failure to concur or nonconcur on 
                this determination within that period is deemed ELDP 
                certified.  (§21184(a), (b)).

             D.    Authorize the governor to issue guidelines 
                regarding application and certification of ELDPs 
                under the Act, which are not subject to the 
                Administrative Procedure Act.  (§21194(c)).

          5. Set procedures that apply to any action or proceeding 
             alleging that a public agency has approved or is 
             undertaking an ELDP certified by the governor in 
             violation of CEQA (§21185) which:

             A.    Require the action or proceeding to be filed in 
                the Court of Appeal with geographic jurisdiction over 
                the project.

             B.    Require any party bringing a claim to file 
                concurrently any other claims alleging that a public 
                agency has granted land use approvals for the ELDP in 
                violation of the law.  The Court of Appeal must have 
                original jurisdiction over these claims.

             C.    Require the Court to issue its decision in the 
                case within 175 days of the filing of the petition.

             D.    Authorize the Court to appoint a master to assist 
                the Court in managing and processing the case.

             E.    Authorize the Court to grant extensions of time 
                only for good cause shown and in order to promote the 
                interests of justice.

          6. Set requirements for preparation and certification of 
             the administrative record for an ELDP certified by the 
             governor.  (§21186).

          7. Require the draft and final EIR to include a specified 

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             notice in no less than 12-point type regarding the draft 
             and final EIR being subject to the Act.  (§21187).

          8. Provide that provisions of the Act are severable, and if 
             any provision or its application is held to be invalid, 
             that invalidity cannot affect any other provision or 
             application that can be given effect without the invalid 
             provision or application.  (§21188).

          9. Provide that nothing in the Act affects the duty of any 
             party to comply with CEQA, except as otherwise provided 
             in the Act.  (§21189).

          10.Prohibit the Act from applying to an ELDP if a lead 
             agency does not certify an EIR for an ELDP on or before 
             June 1, 2014, and the lead agency must notify the 
             Secretary of the Natural Resources Agency by July 1, 
             2014, if an EIR subject to the Act has not been 
             certified by that date.  (§21189.1(a)).

          11.Provide that certification of the ELDP expires and is no 
             longer valid if, prior to June 1, 2014, a certification 
             issued pursuant to the Act has not been used or the time 
             period during which an action or proceeding filed under 
             the Act has not elapsed.  (§21189.1(b)).

          12.Require the Judicial Council to report to the 
             Legislature on or before January 1, 2015, on the effects 
             of the Act, which must include, but not be limited to, a 
             description of the benefits, costs, and detriments of 
             the certification of ELDPs pursuant to the Act.  
             (§21189.2).
          13.Provides that this Act becomes operative only if SB 292 
             (Padilla) is enacted and takes effect on or before 
             January 1, 2012.

          14.Contain related legislative intent.  (§21178).

          15.Contain an urgency clause.  (SEC. 4).

          16.Sunset January 1, 2015.  (§21189.3).

           Background


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           CEQA provides a process for evaluating the environmental 
          effects of a project, and includes statutory exemptions, as 
          well as categorical exemptions in the CEQA guidelines.  If 
          a project is not exempt from CEQA, an initial study is 
          prepared to determine whether a 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.

          If a mitigation measure would cause one or more significant 
          effects in addition to those that would be caused by the 
          proposed project, the effects of the mitigation measure 
          must be discussed but in less detail than the significant 
          effects of the proposed project.
           
          Comments
           
           Purpose of Bill  .  According to the intent of the Jobs and 
          Economic Improvement Through Environmental Leadership Act 
          of 2011, AB 900 "provides streamlining benefits under CEQA 
          for a limited period of time to put people to work as soon 
          as possible" and these projects "present an unprecedented 
          opportunity to implement nation-leading innovative measures 
          that will significantly reduce traffic, air quality, and 
          other significant environmental impacts, and fully mitigate 
          the greenhouse gas emissions resulting from passenger 
          vehicle trips attributed to the project."

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   

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          Local:  Yes

           SUPPORT  :   (Verified  9/9/11)

          California Labor Federation
          California State Association of Electrical Workers
          California State Pipe Trades Council
          State Sheet Metal Workers  
           
           OPPOSITION :    (Verified  9/9/11)

          Planning and Conservation League
          Sierra Club California


          DLW:mw  9/9/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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