BILL ANALYSIS Ó AB 900 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 900 (Buchanan and Gordon) As Amended September 9, 2011 Majority vote ----------------------------------------------------------------- |ASSEMBLY: | |(May 31, 2011) |SENATE: |32-7 |(September 9, | | | | | | |2011) | ----------------------------------------------------------------- (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 AB 900 Page 2 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 AB 900 Page 3 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. AB 900 Page 4 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 AB 900 Page 5 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. AB 900 Page 6 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 AB 900 Page 7 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 AB 900 Page 8 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 AB 900 Page 9 FN: 0002898