BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 37
                                                                  Page  1

           nDate of Hearing:   May 1, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                     AB 37 (Perea) - As Amended:  March 18, 2013 

          Policy Committee:                              Natural  
          ResourcesVote:9-0

          Urgency:     No                   State Mandated Local Program:  
          yes    Reimbursable:              No

           SUMMARY

           This bill authorizes the lead agency for certain types of  
          projects subject to the California Environmental Quality Act  
          (CEQA) to prepare and certify the record of proceedings that  
          would be used in a judicial challenge concurrently with the  
          administrative process.  Specifically, this bill:

          1)Requires the lead agency to prepare and certify the record of  
            proceedings concurrently with the administrative process for  
            the following types of projects:
             
             a)   Projects of statewide, regional, or areawide  
               significance.
             b)   Infill projects. 
             c)   Transit priority projects consistent with sustainable  
               communities' strategies or an alternative planning strategy  
               accepted by the Air Resources Board (ARB).

          2)Authorizes a project applicant to request the lead agency  
            prepare and certify the record of proceedings concurrently  
            with the administrative process for all other CEQA projects.

          3)Requires a project applicant to reimburse a lead agency for  
            the cost to prepare and certify the record of proceedings  
            concurrently with the administrative process. 

          4)Generally requires a lead agency to make CEQA permitting  
            documents available online and in electronic format.

          5)Sunsets the bill's requirements as of January 1, 2017.









                                                                  AB 37
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           FISCAL EFFECT  

          1)Unknown costs to state agencies, to the extent they are lead  
            CEQA permitting agencies for projects for which the lead  
            agency must, or agrees to, concurrently prepare the record of  
            proceeding.  The project applicant is required to reimburse  
            the lead agency for the costs incurred but it is unclear how  
            the real costs will be determined and passed along.

          2)Unknown, significant one-time and ongoing GF and special fund  
            costs, likely in the millions of dollars, to state agencies,  
            to the extent they are lead CEQA permitting agencies for  
            projects, to upgrade electronic data management capabilities  
            to allow for the functionality required by this bill, such as  
            posting downloadable forms online and making draft  
            environmental documents available electronically.  

            For example, the Department of Conservation estimates $250,000  
            one-time and $205,000 in ongoing staffing costs and unknown  
            significant information technology costs.  CalFire estimates  
            significant one-time and ongoing staffing and information  
            technology costs totaling over $1 million.  

           COMMENTS  

           1)Purpose.   The author intends to expedite the judicial process  
            on CEQA challenges by allowing the record of proceedings to be  
            prepared earlier than current law allows by extending a  
            procedure currently statutorily authorized for a limited set  
            of projects.   
             
            Projects currently eligible for the expedited process include  
            specific infill site projects, clean manufacturing and  
            renewable energy projects, and a proposed downtown Los Angeles  
            football stadium.  

          2)Background.   CEQA obligates public officials to consider the  
            environmental effects of their decisions. The lead agency that  
            proposes to approve a project must conduct an initial study to  
            determine if the project may have significant, adverse  
            environmental effects. If not, the lead agency issues a  
            negative declaration and, after a 30-day review period,  
            proceeds with its review and decision. If the lead agency  
            finds minor effects that can be mitigated, it issues a  
            mitigated negative declaration and then proceeds. If the lead  








                                                                  AB 37
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            agency finds the effects of the project may be significant, it  
            prepares an environmental impact report (EIR), a document that  
            shows public officials how to avoid or mitigate the project's  
            environmental effects.  
                
            Preparing the EIR begins when the lead agency sends notice of  
            preparation to other public agencies, soliciting advice on the  
            EIR's scope. If the project is of statewide, regional, or  
            area-wide significance, the lead agency holds a scoping  
            meeting with the other agencies. The lead agency circulates  
            its draft EIR and invites public comments during a 45-day  
            review period. 

            After this public review, the lead agency issues a final EIR  
            that responds to the comments that it received. After  
            certifying the final EIR, the lead agency files notice to  
            allow the project to proceed.

            Challenges to CEQA decisions generally must be filed within  
            30-35 days and be heard by the Superior Court. The courts are  
            required to give CEQA actions preference over all other civil  
            actions.   Current law requires a lead agency to prepare a  
            CEQA record of proceeding-typically including all documents  
            relevant to the agency's CEQA action-within 60 days of  
            receiving a plaintiff's request.  

          3)This bill is similar to AB 1570 (Perea) and SB 984 (Simitian)  
            of last year. Both bills failed in the Senate. 
           
          Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081