BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                               AB 1665
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2011-2012 Regular Session
                                           
           BILL NO:    AB 1665
           AUTHOR:     Galgiani
           AMENDED:    April 18, 2012
           FISCAL:     Yes               HEARING DATE:     July 2, 2012
           URGENCY:    No                CONSULTANT:       Randy Pestor
            
           SUBJECT  :    CALIFORNIA ENVIRONMENTAL QUALITY ACT

            SUMMARY  :    
           
            Existing law  :

           1)Under the California Environmental Quality Act (CEQA):

              a)   Requires lead agencies with the principal 
                responsibility for carrying out or approving a proposed 
                discretionary project to prepare a negative declaration, 
                mitigated declaration, or environmental impact report 
                (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.).

              b)   Contains exemptions relating to railroad projects that 
                include, for example:

                i)     Any railroad grade separation project that 
                  eliminates an existing grade crossing or reconstructs 
                  an existing grade separation.  (§21080.13).

                ii)         The institution or increase of passenger or 
                  commuter services on rail or highway rights-of-way 
                  already in use, including modernization of existing 
                  stations and parking facilities.  (§21080(b)(10)).

                iii)        Facility extensions not to exceed four miles 
                  in length required to transfer passengers from or to 
                  exclusive public mass transit guideway or busway public 
                  transit services.  (§21080(b)(12)).









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           2)Under the Public Utilities Act, provides various powers to 
             the California Public Utilities Commission (PUC) relating to 
             railroad crossings.  (Public Utilities Code §1201 et seq.).
            
           This bill  exempts the closure of a railroad crossing from CEQA 
           by order of the PUC, pursuant to the above powers of the PUC 
           under the Public Utilities Act, if the PUC finds the crossing 
           to present a threat to public safety.

            COMMENTS  :

            1) Purpose of Bill  .  According to the PUC, sponsor of AB 1665, 
              this bill "would clarify the ĘPUC's] authority over rail 
              crossings in California with specific respect to closing 
              dangerous at-grade crossings without adverse consequences 
              to the purposes and provisions of ĘCEQA].  Current law now 
              leaves ĘPUC's] jurisdiction in this regard in question 
              following passage of AB 660 (Galgiani) Chapter 315, 
              Statutes of 2008."

           The ĘPUC] also asserts that "In the wake of the tragic gas 
              pipeline explosion in San Bruno on September 9, 2010, the 
              ĘPUC] has redoubled its efforts to identify any and all 
              potential threats to public safety or potential hindrances 
              to achieving the state's safety objectives.  While 
              unrelated to gas pipelines, AB 1665 touches on a topic that 
              has been identified by the ĘPUC] as a potential safety 
              threat and in need of statutory clarity."

            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.











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           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.

            3) Blaming CEQA  .  It is not unusual for certain interests to 
              assert that a particular exemption will expedite 
              construction of a particular type of project and reduce 
              costs.  This, however, frequently overlooks the benefits of 
              adequate environmental review where lead and responsible 
              agencies are legally accountable for their actions:  to 
              inform decisionmakers and the public about project impacts, 
              identify ways to avoid or significantly reduce 
              environmental damage, prevent environmental damage by 
              requiring feasible alternatives or mitigation measures, 
              disclose to the public reasons why an agency approved a 
              project if significant environmental effects are involved, 
              involve public agencies in the process, and increase public 
              participation in the environmental review and the planning 
              processes.

           If a project is exempt from CEQA, certain issues should be 
              addressed.  For example:

                  How can decisionmakers and the public be aware of 
                impacts, mitigation measures, and alternatives of a 
                project because of the exemption?

                  Is it appropriate for the public to live with the 










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                consequences when a project is exempt and impacts may not 
                be mitigated and alternatives may not be considered 
                regarding certain matters, such as air quality, water 
                quality, and noise impacts?

                  Because adverse project impacts do not disappear when 
                they are not identified and mitigated, does an exemption 
                result in a direct transfer of responsibility for 
                mitigating impacts from the applicant to the public 
                (  i.e.  , taxpayers) if impacts are ultimately addressed 
                after completion of the project?

                  If taxpayers, rather than the project applicant, are 
                ultimately responsible for mitigating certain impacts of 
                such a project after project completion, what assessments 
                or taxes will be increased to fund mitigation or pay for 
                alternatives at a later date?

              It is also not unusual for certain interests to blame CEQA 
              lawsuits.  However, according to a study on the issue, 
              "Despite criticisms that CEQA often results in litigation, 
              CEQA-related litigation is relatively rare."  The study 
              noted that the number of lawsuits to the number of CEQA 
              reviews "yields an estimate of one lawsuit per 354 CEQA 
              reviews."

              Those citing CEQA and CEQA litigation as a problem do not 
              indicate the result of that litigation.  Were significant 
              impacts that were not evaluated in the initial document 
              ultimately addressed?  What would have been the result if 
              those impacts had not been mitigated (  e.g.  , flooding, 
              exposure of people to hazards, inadequate public services, 
              congestion)?

              When some suggest that CEQA "reforms" may be needed, others 
              note various provisions of CEQA that already provide 
              streamlined approaches, including master and focused EIRs; 
              transit priority and residential project streamlining 
              (enacted by SB 375 (Steinberg, Ducheny) Chapter 728, 
              Statutes of 2008); expedited review for environmental 
              mandated projects; special procedures for various types of 
              housing projects (enacted by SB 1925 (Sher, Polanco) 










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              Chapter 1039, Statutes of 2002); various litigation, 
              mediation, tiering, and other revisions (SB 1456 (Simitian) 
              Chapter 496, Statutes of 2010); amendments to procedures 
              relating to findings of overriding consideration (AB 231 
              (Huber) Chapter 432, Statutes of 2010); infill project and 
              other streamlining provisions (SB 226 (Simitian) Chapter 
              469, Statutes of 2011); and several categorical exemptions 
              contained in the CEQA Guidelines.  Challenges to CEQA 
              determinations must be commenced within an unusually short 
              30 days of an agency's filing of a notice of determination. 
               Also, no later than 20 days from the date of service upon 
              a public agency, the public agency must file a notice with 
              the court setting a time and place for all parties to meet 
              and attempt to settle the litigation.

            1) Seeking clarification or misinterpreting the law  ?  Current 
              law exempts any railroad grade separation project that 
              eliminates an existing grade crossing or reconstructs an 
              existing grade separation.

           As noted above, the PUC indicates that AB 1665 is needed 
              because AB 660 (Galgiani) Chapter 315, Statutes of 2008, 
              leaves PUC jurisdiction in question.  AB 660 amended 
              provisions relating to a program for funding grade 
              separation projects (Streets and Highways Code §2450 et 
              seq.).

           This current grade crossing program includes definitions for 
              certain terms, including "grade separation" and "project."  
              "Grade separation" means the structure necessary to 
              separate the roadway from the railroad grade for the number 
              of lanes on the existing highway.  "Project" means "the 
              grade separation and other structures that actually 
              separate the vehicular roadway from the railroad tracks . . 
              ."  The project may consist of:  a) alteration or 
              reconstruction of existing grade separations, or b) 
              construction of new grade separations to eliminate existing 
              grade crossings.  AB 660 repealed a third definition of 
              "project" - removal or relocation of highways or railroad 
              tracks to eliminate existing grade crossings (formerly 
              §2450(b)(3)).











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           PUC asserts that Streets and Highways Code §2450(b)(3) was 
              stricken by AB 660, and that by striking this section, "the 
              removal or relocation of a highway or railroad tracks 
              (i.e., crossing closure removing the street or highway from 
              the railroad tracks) is no longer within the definition of 
              a grade crossing for purposes of the CEQA exemption."

           However, removal or relocation of a street or highway is still 
              part of a grade separation under this program.  Also, there 
              was no reference in the current CEQA grade separation 
              exemption (Public Resources Code §21080.13) to the 
              definitions in Streets and Highways Code §2450 - even if 
              those definitions ever referenced closure of a railroad 
              grade crossing - and the definitions in §2450 are clearly 
              "For purposes of this chapter" (i.e., the grade separation 
              program).

           The PUC even admits that "While Streets and Highways Code 
              Section 2450 states explicitly that its provisions apply 
              for purposes of Chapter 10 of Division 3 of the Streets and 
              Highways Code, legal counsel for the ĘPUC], the railroad 
              industry and local agencies have traditionally used Streets 
              and Highways Code Section 2450 for guidance in helping 
              interpret Public Resources Code Section 21080.13 and the 
              meaning of a 'grade separation project' in lieu of a 
              definition provided anywhere else in statute." 

           It is not clear how the PUC could reach such a conclusion, 
              even before AB 660.  Moreover, the legislative history of 
              SB 549 (Johnson) Chapter 58, Statutes of 1982, that enacted 
              the current CEQA grade separation exemption, makes no 
              reference to railroad grade crossing closures or to any 
              definition in the Streets and Highways Code or other 
              provision of law.  AB 1665, therefore, does not merely 
              provide "clarity" following passage of AB 660.

            2) Clearing the way for high-speed rail (HSR) related road 
              closures  ?  The proposed HSR project would result in several 
              at grade crossing closures.  Although grade separation and 
              closure issues are considered part of the HSR project and 
              program EIRs, certain organizations have challenged the 
              adequacy of some of those EIRs.  AB 1665 could enable the 










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              HSR Authority to begin approving crossing closures with the 
              AB 1665 CEQA exemption while litigation is pending on these 
              HSR EIRs.

           The governor also recently announced the following recommended 
              amendments to CEQA:  a) allow the HSR Authority to 
              "piecemeal" certain parts of the project; b) prohibit 
              project injunctions if the HSR Authority does not comply 
              with CEQA and certain conditions are met; and c) provide 
              legislative intent that the HSR program EIR is certified.

            3) Outstanding issues  ?  As noted above, current law exempts a 
              grade separation project from CEQA that eliminates or 
              reconstructs an existing grade separation.

           Should the closure of a railroad grade crossing by order of 
              the PUC based on a public safety threat finding also be 
              exempt from CEQA?  If the committee believes that this 
              crossing closure should be exempt from CEQA, then this 
              exemption should not be used for the high-speed rail 
              project and there should be a sunset on this provision so 
              that the Legislature can consider the effect of this 
              exemption.  The PUC should also be required to file the 
              notice of exemption with the Office of Planning and 
              Research.

            4) Related legislation  .  AB 890 (Olsen) exempts certain 
              roadway improvement projects, and AB 2245 (Smyth) exempts a 
              project for Class II bikeways undertaken by a city or 
              county within an existing right-of-way under certain 
              conditions.  The Senate Environmental Quality Committee 
              will also hear these bills July 2, 2012.

           SB 1380 (Rubio) exempts a bicycle plan for an urbanized area 
              from CEQA for restriping of streets and highways, bicycle 
              parking and storage, signal timing to improve street and 
              highway intersection operations, and related signage for 
              bicycles, pedestrians, and vehicles.  SB 1380 was approved 
              by the Senate Environmental Quality Committee April 30, 
              2012 (6-0), and will be heard by the Assembly Natural 
              Resources Committee July 2, 2012.











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            SOURCE  :        California Public Utilities Commission  

           SUPPORT  :       Alameda Corridor-East Construction Authority, 
                          American Council of Engineering Companies  

           OPPOSITION :    None on file.