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 AB 52 (Gatto) Page 1 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. AB 52 (Gatto) Page 2 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 AB 52 (Gatto) Page 3 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.