BILL ANALYSIS                                                                                                                                                                                                    �



                                                                 AB 37
                                                                       

                     SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                             Senator Jerry Hill, Chair
                             2013-2014 Regular Session
                                          
           BILL NO:    AB 37
           AUTHOR:     Perea
           AMENDED:    March 18, 2013
           FISCAL:     Yes               HEARING DATE:     June 19,  
           2013
           URGENCY:    No                CONSULTANT:       Joanne Roy
            
           SUBJECT  :    CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):   
                          RECORD OF PROCEEDINGS

            SUMMARY  :    
           
            Existing law  , under the California Environmental Quality Act  
           (CEQA):

           1) 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.).

           2) Sets requirements relating to preparation, review,  
              comment, approval and certification of environmental  
              documents, as well as procedures relating to an action or  
              proceeding to dispute, review, set aside, void, or annul  
              various actions of a public agency on the grounds of  
              noncompliance with CEQA.  At the time an action or  
              proceeding is filed, the plaintiff must file a request  
              that the respondent public agency prepare the record of  
              proceedings, which must be served personally upon the  
              public agency no later than 10 business days from the  
              date the action or proceeding was filed.  (�21167.6(a)).   
              The public agency must prepare and certify the record no  
              later than 60 days from the date the request was made by  
              the plaintiff, and upon certification the public agency  










                                                                 AB 37
                                                                 Page 2

              must lodge a copy of the record with the court.   
              (�21167.6(b)).  The plaintiff may elect to prepare the  
              record of proceedings or the parties may agree to an  
              alternative method of preparation of the record.   
              (�21167.6(b)).  

           3) Sets procedures relating to an "environmental leadership  
              development project" (ELDP) under the Jobs and Economic  
              Improvement Through Environmental Leadership Act of 2011  
              (part of CEQA)) (�21178 et seq.), which also includes  
              requirements for preparation and certification of the  
              administrative record concurrently with the  
              administrative process and certain related requirements  
              for an ELDP certified by the Governor.  (�21186).  These  
              ELDP procedures sunset January 1, 2015.  (�21189.3)


            This bill  requires the lead agency, upon request of a  
           project applicant, to prepare and certify the record of  
           proceedings concurrently with the administrative process for  
           projects subject to CEQA review.  Specifically,  this bill  :

           1) Applies to specific types of projects, including:  a)  
              projects of statewide, regional, or areawide  
              significance; b) infill and transit priority projects;  
              and c) projects for which the project applicant requests  
              and the lead agency consents to prepare the record of  
              proceeding concurrently pursuant to specified  
              requirements.

           2) For concurrent preparation of the record of proceedings,  
              requires the lead agency to do the following:

              a)    Post all record of proceedings on a website.

              b)    Make publicly available, in a readily accessible  
                 electronic format, the draft environmental review  
                 document and related materials.

              c)    Make publicly available, in electronic format, a  
                 document, which is either prepared by the lead agency  
                 or submitted by the applicant after the release of the  










                                                                 AB 37
                                                                 Page 3

                 draft environmental document and that is part of the  
                 record of proceeding, within a specified time period.

              d)    For a written comment submitted in a readily  
                 accessible electronic format, make the comment  
                 publicly available in an electronic format within five  
                 days of receipt.  Provides that the lead agency does  
                 not need to adhere to this requirement if the comment  
                 is submitted less than five days prior to the decision  
                 on the project.

              e)    For a written comment not in electronic format when  
                 submitted, convert the comment into a readily  
                 accessible electronic format and make publicly  
                 available in an electronic format within seven days of  
                 receipt.  Provides that the lead agency does not need  
                 to adhere to these requirements if the comment is  
                 submitted less than seven days prior to the decision  
                 on the project.

           3) Requires the lead agency to certify the record of  
              proceedings within 30 days after the filing of the notice  
              of approval or determination with the Office of Planning  
              and Research (OPR) or county clerk.

           4) Requires environmental review documents subject to the  
              provisions of this bill to include a specific notice  
              stating that the environmental review document requires  
              the concurrent preparation of the record of proceedings  
              with the administrative process and that the lead agency  
              will post the documents on its website "in a timely  
              manner."

           5) Requires the project applicant to reimburse the lead  
              agency for costs incurred in preparing the record of  
              proceeding concurrently with the administrative process.

           6) Sunsets these provisions on January 1, 2017.

            COMMENTS  :

            1) Purpose of Bill  .  According to the author, "Environmental  










                                                                 AB 37
                                                                 Page 4

              documents that are prepared under CEQA are often  
              challenged if the construction project is controversial.   
              One specific delay that occurs during the litigation  
              process is that the record of proceedings, which is  
              required for litigation to move forward, can only be  
              prepared after a lawsuit is filed.  Preparing the record  
              can take weeks and sometimes even months - currently the  
              statute provides 60 days to prepare the record of  
              proceedings.  Delays in projects can increase  
              construction costs and prevent Californians from  
              working."

           The author also notes, "This bill does  not  require that the  
              administrative record be concurrently prepared for all  
              projects under CEQA, because the vast majority of  
              projects are never subject to a lawsuit, and a record of  
              proceedings is unnecessary."

            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.

           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.










                                                                 AB 37
                                                                 Page 5


           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) Concurrent preparation of the record of proceedings with  
              the administrative process  .  AB 900 (Buchanan and  
              Gordon), Chapter 354, Statutes of 2011, enacted The Jobs  
              and Economic Improvement Through Environmental Leadership  
              Act of 2011, to set procedures relating to an ELDP  
              selected by the Governor.  An ELDP must meet certain  
              requirements and one of the provisions given for an ELDP  
              is that the record of proceedings must be prepared  
              concurrently with the administrative process.  

           Since the enactment of AB 900, the author states that  
              stakeholders have been interested in providing for the  
              record of proceedings to be prepared concurrently with  
              the administrative process at the request of the  
              applicant in order to save time and effort in the event  
              of a challenge to a project under CEQA review.  This bill  
              requires that documents and other materials placed in the  
              record of proceedings be posted on the lead agency's  
              Internet website.

            4) Late Comments and Document Dumping  .  AB 37 provides that  
              when preparing the record of proceedings pursuant to this  
              bill, the lead agency is not required to make written  
              comments, which are submitted five or seven days prior to  
              the decision on the project (depending on the format),  
              publicly available in an electronic format.  This  
              provision attempts to address comments received late in  
              the process and document dumping.  Sometimes opponents to  
              a project may submit comments late in the review process  
              and perhaps voluminous amounts of content in their  
              comment as a tactic to delay a project.  The California  
              Supreme Court has stated, "We cannot, of course,  
              overemphasize our disapproval of the tactic of  
              withholding objections?solely for the purpose of  
              obstruction and delay," and stressed that strategically  










                                                                 AB 37
                                                                 Page 6

              delaying commenting on a project is not a "game to be  
              played by persons who?are chiefly interested in scuttling  
              a particular project."  (Citizens of Goleta Valley v.  
              Board of Supervisors of Santa Barbara County (1990) 52  
              Cal. 3rd 553, 368).

           However, this may not always be the case - interested  
              parties, who submit late comments, may be raising  
              genuine, significant issues that were not adequately  
              addressed in the environmental review or provide  
              important information that was not available earlier in  
              the process.  Although this bill does not prevent  
              comments from being submitted late, AB 37 could  
              unintentionally penalize valid comments, regardless of  
              their importance or quality, simply due to their timing  
              and preventing such information from being readily  
              accessible in the same manner as other written comments.   


            5) "In a Timely Manner"  .  AB 37 requires an environmental  
              review document, subject to the provisions of this bill,  
              to include a specific notice stating that the review  
              requires the concurrent preparation of the record of  
              proceedings with the administrative process and that the  
              lead agency will post documents related to the project on  
              its website "in a timely manner."  A question arises as  
              to what "timely" is - timely to whom?  The phrase is  
              vague and could be subject to litigation.  
            
            6) Related legislation  .  SB 731 (Steinberg and Hill) makes  
              various changes and clarifications to CEQA, including  
              provisions related to concurrent preparation of record of  
              proceedings.  AB 37 is mostly similar to SB 731 but does  
              contain significant conflicting elements to SB 731.   
              Specifically, SB 731 does not contain the provisions  
              found in AB 37, which are noted in Comments #4 (late  
              comments) and #5 (posting notices "in a timely manner.").  
               SB 731 passed out of this committee on May 1, 2013 with  
              a vote of 8-0 and was approved on the Senate Floor on May  
              29, 2013 with a vote of 39-0.

           If both SB 731 and AB 37 are enacted, they will directly  










                                                                 AB 37
                                                                 Page 7

              conflict with one another as noted above.  Because the  
              Senate Environmental Quality Committee supported SB 731,  
              the Committee should not support a conflicting measure  
              and therefore should hold AB 37.


            SOURCE  :        Author  

           SUPPORT  :       American Council of Engineering Companies,  
                          California
           American Planning Association, California Chapter
           California Building Industry Association
           California Business Properties Association
           California Chamber of Commerce
           California Council for Environmental and Economic Balance
           California Grocers Association
           City of Fowler
           City of Mendota
           City of Selma
           Civil Justice Association of California
            

           OPPOSITION  :    None on file