BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          AB 52 (Gatto) - Native Americans: California Environmental  
          Quality Act.
          
          Amended: July 2, 2014           Policy Vote: EQ 6-0
          Urgency: No                     Mandate: Yes (see staff comment)
          Hearing Date: August 14, 2014                     Consultant:  
          Marie Liu     
          
          SUSPENSE. AS AMENDED.
          
          
          Bill Summary: AB 52 would establish procedures and requirements  
          under CEQA for the purpose of avoiding or minimizing impacts to  
          tribal cultural resources.

          Fiscal Impact (as approved on August 14, 2014): 
              One-time costs to the General Fund for the Office of  
              Planning and Research (OPR) to revise its CEQA Guidelines
              One-time costs of $3 to $5 million to the General Fund to  
              the Native American Heritage Commission (NAHC) to develop a  
              database identifying traditional and cultural areas and the  
              lead agencies that overlap these areas. 
              Ongoing costs of $600,000 to the General Fund to the NAHC  
              to assist lead agencies and maintain the required database.
              Unknown costs to the General Fund and various special funds  
              for increased CEQA costs for projects which the state is the  
              lead agency or the project proponent.

          Background: The California Environmental Quality Act (CEQA)  
          provides a process for evaluating the environmental effects of a  
          project. 

          OPR is required to develop guidelines for the implementation of  
          CEQA ("CEQA Guidelines") and to update these guidelines every  
          two years. Though they are referred to as "guidelines," the CEQA  
          guidelines are adopted regulations adopted by the Natural  
          Resources Agency upon recommendation of OPR. 

          Proposed Law:  This bill would require that public agencies must  
          seek to avoid damaging effects to any tribal cultural resource.  
          To this end, under CEQA, a lead agency would be required to  
          consult with a federally- recognized Native American tribe that  








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          is traditionally and culturally affiliated with the geographic  
          area of the proposed project, if the tribe has requested to be  
          involved. The consulting tribe or tribes would be able to  
          propose mitigation measures to avoid or lessen potential  
          significant impacts to a tribal cultural resource. Agreed upon  
          mitigations would be required to be included in the  
          environmental impact report and in an adopted mitigation  
          monitoring program. These requirements would apply to projects  
          that submit a notice of preparation or notice of negative  
          declaration or mitigated negative declaration on or after  
          January 1, 2015.

          This bill would require the NAHC, by July 1, 2016, to provide  
          each federally-recognized tribe with a list of all public  
          agencies, and their contact information, that may be a lead  
          agency under CEQA within the geographic area with which the  
          tribe is traditionally and culturally affiliated. The NAHC would  
          also be required to assist a lead agency in identifying the  
          traditionally and culturally affiliated Native American tribes  
          within a project area.

          This bill would define a tribal cultural resource as a resource  
          that meets one of several criteria, one of which is a resource  
          that is listed on the NAHC's Sacred Lands File for which a tribe  
          has submitted sufficient evidence demonstrating that the sacred  
          places are of special religious or social significance.

          This bill would require the OPR to prepare and develop  
          recommended amendments to the CEQA Guidelines to separate the  
          consideration of paleontological resources from cultural  
          resources and add the consideration of tribal cultural  
          resources.

          Staff Comments: In order for the NAHC to provide each  
          federally-recognized Native American tribe with a list of  
          potential lead agencies that have jurisdictions that overlap the  
          geographic area for which the tribe is traditionally and  
          culturally affiliated, the NAHC would have to identify the  
          tribes' traditional and cultural areas and then overlay the  
          geographical jurisdictional boundaries of a myriad of federal,  
          state, and local agencies who could serve as a lead agency under  
          CEQA. This activity will necessitate the creation of a  
          geographically-based database at a cost of $3 to $5 million to  
          the NAHC. 








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          The NAHC would also have ongoing costs to update the database as  
          needed, assist lead agencies with identifying relevant  
          federally-recognized Native American Tribes, and determining  
          whether there is sufficient evidence supporting a sacred place.  
          Staff notes that the NAHC has largely deferred to tribes to  
          determine the religious or social significance of their sacred  
          places, with some reference to ethnographic histories, when  
          determining resources on the current Sacred Lands File.  
          Determining "sufficient" evidence could be challenging and  
          time-intensive especially if there are conflicting claims  
          between tribes. On-going costs are estimated at $600,000  
          annually.

          OPR would be required to amend the CEQA Guidelines to update  
          Appendix G of Chapter 3, as specifically required by this bill,  
          and to generally update the Guidelines to reflect the  
          consultation process outlined in the bill. OPR anticipates that  
          these updates would cause a significant amount of staff time and  
          would likely involve substantial public input and involvement.  
          Staff notes that the consultation processes created by this bill  
          only applies to federally-recognized tribes while other existing  
          Native American-related CEQA provisions apply to both  
          federally-recognized and non-federally-recognized tribes. The  
          guidelines would have to be updated to make this distinction.  
          The guidelines would have to be updated to make this  
          distinction. OPR is likely to incur guideline update costs in  
          the mid-hundreds of thousands of dollars, which would be  
          consistent with OPR's costs to update the CEQA Guidelines  
          regarding mitigating greenhouse gas emissions as required by SB  
          97 (Dutton) Chapter 185, 2007.

          This bill would also result in unknown costs to the state as a  
          lead agency or as a project proponent. Presumably the  
          consultation required in this bill will result in increased CEQA  
          compliance costs for increased staff time for consultations and  
          potential mitigations, some of which may have occurred  
          regardless of passage of this bill. While these costs are  
          indeterminable, staff notes that the state is the project  
          proponent for billions of dollars of projects that are subject  
          to CEQA annually.

          This bill creates a state-mandated local program as it would  
          require actions of a local agency serving as the lead agency  








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          under CEQA. However, the local lead agency would have fee  
          authority, which makes the mandate non-reimbursable by the  
          states.

          Author Amendments: 
           Change intent language to recognize California Native American  
            tribes.
           Define "California Native American tribe" as a federally or  
            nonfederally recognized tribe located in California. 
           Specify consultation and other requirements in the bill are  
            required with a federally recognized California Native  
            American tribe.
           Allow the confidential exchange of information regarding  
            tribal cultural resources submitted by a California Native  
            American tribe among the lead agency, the tribe, and project  
            applicant. 
           Require confidential information to be published in a  
            confidential appendix.
           Revise the requirements that must be met before a lead agency  
            certifies an environmental impact report.
           Require a lead agency to "evaluate and select" instead of  
            "consider" feasible mitigations if there will be a significant  
            effect to a tribal cultural resource but there are no agreed  
            upon mitigation measures or the mitigation measures are not  
            included in the environmental document.
           Clarification amendments.