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)). AB 1665 Page 2 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. AB 1665 Page 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 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 AB 1665 Page 4 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) AB 1665 Page 5 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)). AB 1665 Page 6 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 AB 1665 Page 7 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. AB 1665 Page 8 SOURCE : California Public Utilities Commission SUPPORT : Alameda Corridor-East Construction Authority, American Council of Engineering Companies OPPOSITION : None on file.