BILL ANALYSIS Ó AB 2417 Page 1 Date of Hearing: April 28, 2014 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Wesley Chesbro, Chair AB 2417 (Nazarian) - As Amended: March 28, 2014 SUBJECT : California Environmental Quality Act: exemption: recycled water pipelines SUMMARY : Establishes an exemption from the California Environmental Quality Act (CEQA) for installation of new, and maintenance of existing, recycled water pipelines less than eight miles in length. EXISTING LAW : 1)Requires lead agencies with the principal responsibility for carrying out or approving a proposed project to prepare a negative declaration, mitigated negative 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). 2)Provides that CEQA does not apply to a pipeline project less than one mile in length within a public street or highway or any other public right-of-way for the installation of a new pipeline or the maintenance, repair, restoration, reconditioning, relocation, replacement, removal, or demolition of an existing pipeline. Excludes any surface facility related to the operation of the underground pipeline. 3)Provides that CEQA does not apply to a pipeline project less than eight miles in length consisting of inspection, maintenance, repair, restoration, reconditioning, relocation, replacement, or removal of an existing intrastate liquid pipeline subject to the Pipeline Safety Act, subject to specified conditions, including: a) Construction and excavation activities are not undertaken over more than one half mile at a time. b) The section of pipeline is not less than eight miles from any section that has received an exemption in the past 12 months. AB 2417 Page 2 c) Project activities are undertaken within an existing right-of-way and the right-of-way is restored to its pre-project condition. d) The diameter of the pipeline is not increased. 4)Defines "recycled water" as water which, as a result of treatment of waste, is suitable for a direct beneficial use or a controlled use that would not otherwise occur and is therefore considered a valuable resource. THIS BILL : 1)Exempts from review under CEQA a project of less than eight miles in length within a public street, highway, or right-of-way for the construction and installation of a new recycled water pipeline, or the maintenance, repair, restoration, reconditioning, relocation, replacement, removal, or demolition of an existing recycled water pipeline. 2)Defines "pipeline" to include subsurface pipelines and subsurface or surface accessories or appurtenances to a pipeline, such as mains, traps, vents, cables, conduits, vaults, valves, flanges, manholes, and meters. 3)Requires the lead agency to do all of the following: a) File a notice of exemption with the Office of Planning and Research and in the office of the county clerk of each county in which the project is located within 20 days of the approval of the project. b) Ensure that the underlying property owner has given permission to access the property, in the case of a right-of-way over private property, if access is not granted in the express terms of the right-of-way. c) Ensure the restoration of the public street, highway, or right-of-way to a condition consistent with all applicable local laws or regulations, or a negotiated agreement. AB 2417 Page 3 4)Requires the project applicant to comply with all applicable laws and regulations, including Chapter 3 (commencing with Section 60301) of Division 4 of Title 22 of the California Code of Regulations (i.e., water recycling criteria). 5)Makes findings related to the drought and the benefits of recycled water. FISCAL EFFECT : Unknown COMMENTS : 1)Background . CEQA provides a process for evaluating the environmental effects of applicable projects undertaken or approved by public agencies. If a project is not exempt from CEQA, an initial study is prepared to determine whether the 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. CEQA includes limited exemptions for relatively small-scale pipeline maintenance and installation projects. A general exemption is available for projects under one mile in length. A more specific exemption is available for projects up to eight miles in length involving maintenance and replacement, but not expansion, of pipelines regulated under the Pipeline Safety Act (e.g., petroleum pipelines). AB 2417 Page 4 This bill proposes an exemption for pipeline projects significantly broader than any existing exemption. It would apply to both existing and new pipelines with none of the limiting conditions that apply to the existing eight-mile exemption for maintenance of existing petroleum pipelines. 2)If an exemption is justified by the drought emergency, it should be limited in time to promote rapid deployment of recycled water pipes and permit review of its use and effects . Essentially, this bill proposes the drought as a blanket "overriding consideration" of any significant effects that may be caused by recycled water pipeline projects. In response to the drought emergency, the State Water Resources Control Board approved $800 million in low-interest loans for recycled water projects that can be completed by January 2017. If the committee is convinced that drought relief justifies the exemption, a short-lived CEQA exemption may provide a complementary incentive to get the projects done quickly and give the Legislature a sample to see how it's working. The author and the committee may wish to consider amending the bill to sunset its provisions January 1, 2018. 3)Conditions should be imposed to limit potential significant effects . A water pipeline project could have significant environmental effects related to construction activity, such as noise, traffic disruptions, disturbance of contaminated soils, cultural or historical resources and impacts on habitat. Depending on its purpose, a water pipeline project could have growth-inducing impacts or contribute to pollution, such as a water pipeline to support hydraulic fracturing. Of course, these impacts are not known prior to a project-specific analysis, and this bill would prevent that analysis. The author and the committee may wish to consider the following limitations on the application of this exemption: a) Prohibit segmenting larger projects to qualify for the exemption or claiming of serial exemption for adjacent sections of pipeline. b) Exclude projects in "resource areas" such as parks, open space, protected habitat areas, and lands subject to conservation easements. c) Prohibit construction and excavation activities AB 2417 Page 5 undertaken over more than one half mile at a time. d) Require a lead agency, prior to determining a project is exempt, to hold noticed public hearings and include measures to mitigate potential traffic impacts. REGISTERED SUPPORT / OPPOSITION : Support Association of California Water Agencies Browns Valley Irrigation District California Association of Sanitation Agencies California Chamber of Commerce California Council for Environmental and Economic Balance California Special Districts Association Calleguas Municipal Water District City of Corona City of Healdsburg City of Pasadena Civil Justice Association of California Coachella Valley Water District Eastern Municipal Water District El Dorado Irrigation District Helix Water District Inland Empire Utilities Agency Las Virgenes - Triunfo Joint Powers Authority Monte Vista Water District Olivenhain Municipal Water District Otay Water District Riverside Public Utilities Rural County Representatives of California Valley Center Municipal Water District Vista Irrigation District Opposition Azul California Native Plant Society Clean Water Action Natural Resources Defense Council AB 2417 Page 6 Planning and Conservation League Sierra Club California Analysis Prepared by : Lawrence Lingbloom / NAT. RES. / (916) 319-2092