BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 900
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 900 (Buchanan and Gordon)
          As Amended  September 9, 2011
          Majority vote
           
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          |ASSEMBLY:  |     |(May 31, 2011)  |SENATE: |32-7 |(September 9,  |
          |           |     |                |        |     |2011)          |
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                                       (vote not relevant)
           
           Original Committee Reference:   ED.  

           SUMMARY  :  Establishes the Jobs and Economic Improvement Through 
          Environmental Leadership Act of 2011 (ACT), which creates an 
          expedited judicial review procedures under the California 
          Environmental Quality Act (CEQA) for various types of LEED 
          silver certified infill site projects, clean renewable energy 
          project, and clean energy manufacturing project.

           The Senate amendments  delete the Assembly version of the bill 
          and instead:  

           1)Make findings and declarations regarding CEQA and the need for 
            the bill.

          2)Environmental Leadership Development Projects.

             a)   Defines "environmental leadership development project," 
               "leadership project," or "project" (all of which are 
               hereinafter referred to as "leadership project") as a 
               project as described in CEQA that is one of the following:

               i)     A residential, retail, commercial, sports, cultural, 
                 entertainment, or recreational use project that is 
                 certified as LEED silver or better by the United States 
                 Green Building Council and, where applicable, that 
                 achieves a 10% greater standard for transportation 
                 efficiency than for comparable projects. 

                  (1)       Requires that these projects be located on an 
                    infill site. 

                  (2)       Requires a project that is within a 
                    metropolitan planning organization for which a 








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                    sustainable communities strategy or alternative 
                    planning strategy is in effect, to be consistent with 
                    the general use designation, density, building 
                    intensity, and applicable policies specified for the 
                    project area in either a sustainable communities 
                    strategy or an alternative planning strategy, for 
                    which the State Air Resources Board has accepted a 
                    metropolitan planning organization's determination 
                    that the sustainable communities strategy or the 
                    alternative planning strategy would, if implemented, 
                    achieve the greenhouse gas emission reduction targets.

                  (3)       Defines "transportation efficiency" as the 
                    number of vehicle trips by employees, visitors, or 
                    customers of the residential, retail, commercial, 
                    sports, cultural, entertainment, or recreational use 
                    project divided by the total number of employees, 
                    visitors, and customers.

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

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

          3)Certifying a Leadership Project for CEQA Streamlining.

             a)   Allows a person proposing to construct a leadership 
               project to apply to the Governor for certification that the 
               leadership project is eligible for streamlining provided by 
               this bill.

               i)     Requires the person to supply evidence and materials 
                 that the Governor deems necessary to make a decision on 
                 the application. 

               ii)    Requires any evidence or materials be made available 
                 to the public at least 15 days before the Governor 
                 certifies a project pursuant to this bill.

             b)   Authorizes the Governor to certify a leadership project 
               for streamlining pursuant to this bill if all of the 








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               conditions are met:

               i)     The project will result in a minimum investment of 
                 $100 million in California upon completion of 
                 construction.

               ii)    The project creates high-wage, highly skilled jobs 
                 that pay prevailing wages and living wages and provide 
                 construction jobs and permanent jobs for Californians, 
                 and helps reduce unemployment.

               iii)   The project does not result in any net additional 
                 emission of greenhouse gases, including greenhouse gas 
                 emissions from employee transportation, as determined by 
                 the State Air Resources Board pursuant to the California 
                 Global Warming Solutions Act of 2006.

               iv)    The project applicant has entered into a binding and 
                 enforceable agreement that all mitigation measures 
                 required pursuant to this division to certify the project 
                 under this chapter shall be conditions of approval of the 
                 project, and those conditions will be fully enforceable 
                 by the lead agency or another agency designated by the 
                 lead agency. In the case of environmental mitigation 
                 measures, the applicant agrees, as an ongoing obligation, 
                 that those measures will be monitored and enforced by the 
                 lead agency for the life of the obligation.

               v)     The project applicant agrees to pay the costs of the 
                 Court of Appeal in hearing and deciding any case, 
                 including payment of the costs for the appointment of a 
                 special master if deemed appropriate by the court, in a 
                 form and manner specified by the Judicial Council.

               vi)    The project applicant agrees to pay the costs of 
                 preparing the administrative record for the project 
                 concurrent with review and consideration of the project 
                 pursuant to CEQA, in a form and manner specified by the 
                 lead agency for the project.

             c)   Requires the Governor, prior to certifying a project, to 
               make a determination that each of the conditions specified 
               in 3 b) above has been met. These findings are not subject 
               to judicial review.









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             d)   Requires that if the Governor determines that a 
               leadership project is eligible for streamlining pursuant to 
               this bill, he or she shall submit that determination, and 
               any supporting information, to the Joint Legislative Budget 
               Committee for review and concurrence or nonconcurrence.

             e)   Requires that within 30 days of receiving the 
               determination, the Joint Legislative Budget Committee shall 
               concur or nonconcur in writing on the determination.

             f)   Deems the leadership project certified if the Joint 
               Legislative Budget Committee fails to concur or nonconcur 
               on a determination by the Governor within 30 days of the 
               submittal.

             g)   Authorizes the Governor to issue guidelines regarding 
               application and certification of projects pursuant to this 
               bill.  These guidelines are not subject to the rulemaking 
               provisions of the Administrative Procedure Act.

          4)Streamlining CEQA.

             a)   Requires that, notwithstanding any other law, any action 
               or proceeding alleging that a public agency has approved or 
               is undertaking a leadership project certified by the 
               Governor in violation of CEQA shall be conducted in 
               accordance with the following streamlining benefits:

               i)     The action or proceeding shall be filed in the Court 
                 of Appeal with geographic jurisdiction over the project.

               ii)    Any party bringing such a claim shall also file 
                 concurrently any other claims alleging that a public 
                 agency has granted land use approvals for the leadership 
                 project in violation of the law.  The Court of Appeal 
                 shall have original jurisdiction over all those claims.

               iii)   Requires that the Court of Appeal issue its decision 
                 in the case within 175 days of the filing of the 
                 petition.

               iv)    Authorizes the court to appoint a master to assist 
                 the court in managing and processing the case.

               v)     The court may grant extensions of time only for good 








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                 cause shown and in order to promote the interests of 
                 justice.

             b)   Requires on or before July 1, 2012, that the Judicial 
               Council adopt Rules of Court to implement this bill.



           5)Other Provisions.  

             a)   Prohibits the Act from applying to a leadership project 
               if the applicant fails to notify a lead agency prior to the 
               release of the draft EIR for public comment.  

             b)   Sets requirements for preparation and certification of 
               the administrative record for a leadership project 
               certified by the Governor.

             c)   Requires the draft and final environmental impact report 
               (EIR) to include a specified notice in no less than 
               12-point type regarding the draft and final EIR being 
               subject to the Act.  

             d)   Provides that provisions of the bill 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.  

             e)   Provides that nothing in this bill affects the duty of 
               any party to comply with CEQA, except as otherwise provided 
               in the bill.

             f)   Prohibits the bill from applying to a leadership project 
               if a lead agency does not certify an EIR for a project 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 bill has not been certified by 
               that date.  

             g)   Provides that certification of the leadership project 
               expires and is no longer valid if, prior to June 1, 2014, a 
               certification issued pursuant to the bill has not been used 
               or the time period during which an action or proceeding 
               filed under the bill has not elapsed.  








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             h)   Requires the Judicial Council to report to the 
               Legislature on or before January 1, 2015, on the effects of 
               the bill, which must include, but not be limited to, a 
               description of the benefits, costs, and detriments of the 
               certification of the leadership project pursuant to the 
               bill.

             i)   Provides that the bill becomes operative only if SB 292 
               (Padilla) is enacted and takes effect on or before January 
               1, 2012.

             j)   Contain related legislative intent.    

             aa)  Sunset January 1, 2015.  

           EXISTING LAW  

          1)Requires, pursuant to CEQA, a lead agency with the principal 
            responsibility for carrying out or approving a proposed 
            discretionary project to evaluate the environmental effects of 
            its action and prepare a negative declaration, mitigated 
            negative declaration, or EIR.  If an initial study shows that 
            the project may have a significant effect on the environment, 
            the lead agency must prepare an EIR.

          2)Authorizes judicial review of CEQA actions taken by public 
            agencies, following the agency's decision to carry out or 
            approve the project.  Challenges alleging improper 
            determination that a project may have a significant effect on 
            the environment, or alleging an EIR does not comply with CEQA, 
            must be filed in the Superior Court within 30 days of filing 
            of the notice of approval.

           AS PASSED BY THE ASSEMBLY  , this bill authorized public schools 
          to adopt recycling and composting programs.

           FISCAL EFFECT:   

          1)Unknown but likely absorbable costs to the Governor to review 
            and certify "leadership projects" and, potentially, to issue 
            guidelines regarding application and certification of 
            projects.   (General Fund.)

          2)Potential costs of an unknown amount to the state-funded court 








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            system to process and hear challenges to the project's 
            environmental review within the timeframes prescribed by the 
            bill.  (General Fund.)  These costs will be paid by project 
            applicants. It is possible that, absent this bill, the state 
            would face similar costs resulting from challenges to the 
            project that would occur over a period longer than timeframes 
            prescribed by this bill.  In addition, it is possible this 
            bill will result in minor overall savings to the courts to the 
            extent the bill reduces the opportunity for the court to hear 
            legal challenges to the project's environmental review that 
            would otherwise occur.  

          3)Unknown but presumably minor costs, likely no more than 
            $50,000 to $150,000, to Judicial Council to adopt rules of the 
            court to guide implementation of the provisions of this bill 
            and to report to the Legislature.

           COMMENTS  :   

          1)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."

          2)Brief background on CEQA.  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.

          3)Generally, an EIR must accurately describe the proposed 
            project, identify and analyze each significant environmental 
            impact expected to result from the proposed project, identify 








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            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.

          4)Time extensions for the Court.  AB 900 authorizes the court to 
            "grant extensions of time only for good cause shown and in 
            order to promote the interests of justice."  According to the 
            author, this provision allowing the court to grant extensions 
            of time for good cause would apply to both requests by parties 
            to the litigation and to orders made by the court, on its own 
            motion, upon finding that the necessary criteria are met.  
            This is a very important provision, especially for a court 
            that is overburdened with cases and needs extra time in a case 
            to promote the interests of justice.  The intent of the 
            Legislature to provide this provision to the court is good 
            public policy.  

          5)Need for Letter to the Journal and Additional Legislation.  On 
            Friday, September 9, 2011, the Senate Environmental Quality 
            Committee heard this bill.  During testimony and debate, the 
            committee and the author agreed that a letter to the journal 
            may be necessary to clarify that a leadership project only 
            needs to be "designed" as LEED silver certified; the project 
            does not actually need to become certified as LEED silver.   
            Legislation may also be necessary to create a working group 
            and audits for the program.  Additionally, the committee and 
            the author committed to future legislation to create a working 
            group for the program and to possibly authorize a review of 
            the first five leadership projects.


           Analysis Prepared by  :    Mario DeBernardo / NAT RES / 916 
          319-2092










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