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.








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             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.








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          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).  








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            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  








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               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
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          Planning and Conservation League
          Sierra Club California
           
          Analysis Prepared by  :    Lawrence Lingbloom / NAT. RES. / (916)  
          319-2092