BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 617| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SB 617 Author: Evans (D), et al. Amended: 5/28/13 Vote: 21 SENATE ENVIRONMENTAL QUALITY COMMITTEE : 7-2, 5/1/13 AYES: Hill, Calderon, Corbett, Hancock, Jackson, Leno, Pavley NOES: Gaines, Fuller SENATE APPROPRIATIONS COMMITTEE : 5-2, 5/23/13 AYES: De León, Hill, Lara, Padilla, Steinberg NOES: Walters, Gaines SUBJECT : California Environmental Quality Act SOURCE : Author DIGEST : This bill requires assessments under the California Environmental Quality Act (CEQA) to consider the exposure of people to natural hazards or adverse environmental conditions; makes various changes to CEQA reporting requirements; requires the Office of Planning and Research (OPR) to make CEQA notices publically available on an online database; and repeals obsolete exemptions. ANALYSIS : Existing law, under CEQA: 1.Requires lead agencies with the principal responsibility for CONTINUED SB 617 Page 2 carrying out or approving a proposed discretionary 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 exemptions from the requirements of CEQA for the California Men's Colony West Facility, a prison facility at or in the vicinity of Corcoran, a prison facility in the County of King, and the Napa Valley Wine Train. 3.Requires a lead agency preparing an EIR or negative declaration to provide public notice specifying the period during which comments will be received on the draft EIR or negative declaration; the date, time, and place of any public meetings or hearings on the proposed project; a brief description of the proposed project and its location; the significant effects on the environment, if any, anticipated by the project; and the address where copies of the draft EIR or negative declaration, and all documents referenced in the draft EIR or negative declaration, are available for review. 4.Requires a lead agency to call at least one scoping meeting for specific types of projects. 5. Requires a state lead agency to file a notice of approval or determination with OPR, and requires a local lead agency to file a notice of approval or determination with the county clerk in which the project is located. Requires a public agency to file a notice of completion for an EIR with OPR. This bill: 1.Adds to the definition of "environment" to include "the health and safety of people affected by the physical conditions at the location of a project." 2.Adds to the definition of "significant effect on the environment" to include "exposure of people, either directly or indirectly, to substantial existing or reasonably foreseeable natural hazard or adverse condition of the environment." CONTINUED SB 617 Page 3 3.Requires a notice of determination be filed with both the OPR and the county clerk where the project is located. Requires OPR and the county clerk to return the notice to the filing agency with a notation showing the period of time the notice was posted. 4.Requires a lead agency to post a notice of a public scoping meeting and provide copies of the notice to specified entities, including tribal governments. 5.Expands the requirements for posting of notices to include electronic posting of notices by OPR, requires OPR to retain a physical copy of the notice for a specified period of time, and return the notice to the filing agency with a notation of the period it was posted. Authorizes OPR to require the filing agency to pay an administrative fee not to exceed $10 per notice. 6.Requires an EIR to include a statement on "any significant effects that may result from locating the proposed project near, or attracting people to, existing or reasonably foreseeable natural hazards or adverse environmental conditions." 7.Requires lead agencies, both state and local, to file a notice of approval or determination and notice of completion with the county clerk of each county the project is located in and OPR. Background 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, then the lead agency must prepare an EIR. Generally, an EIR must accurately describe the proposed project, identify and analyze each significant environmental impact CONTINUED SB 617 Page 4 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 an 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. 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. Ballona Wetlands . In the case of Ballona Wetlands Land Trust et al. v. City of Los Angeles (Ballona Wetlands), the petitioners alleged that the revised EIR failed to adequately analyze the impacts of potential sea level rise from global warming on the project under CEQA Guidelines. The appellate court held that CEQA does not require analysis of the effects on a project caused by the environment. On March 21, 2012, the California Supreme Court denied the petition for review and requests for depublication of the Second District Court of Appeal's opinion in Ballona Wetlands. Some have referred to this as a converse CEQA analysis. The provision at issue is in the CEQA Guidelines, and states: The EIR shall also analyze any significant environmental effects the project might cause by bringing development and people in to the area affected. For example, an EIR on a subdivision astride an active fault line should identify as a significant effect the seismic hazard to future occupants of the subdivision. The subdivision would have the effect of attracting people to the location and exposing them to the hazards found there. Similarly, the EIR should evaluate any potentially significant impacts of locating development in other areas susceptible to hazardous conditions (e.g., floodplains, coastlines, wildfire risk areas) as identified in authoritative hazard maps, risk assessments or in land use plans addressing such hazard areas. CONTINUED SB 617 Page 5 It should be noted that although the Second District Court of Appeals held that CEQA does not require analysis of the effects on a project caused by the environment and may be considered persuasive in the other district courts of appeal, the holding is not necessarily binding on those other appellate districts. Also, it is unknown whether California Supreme Court's decision not to hear the case is an endorsement of the holding in Ballona Wetlands. OPR and the Natural Resources Agency have kept the provision in Section 15126.2(a) in place after previous decisions with similar conclusions. For example, in 1995, the First District Court of Appeals in Baird v. County of Contra Costa, 32 Cal.App.4th 1464, held that the effect of the environment on the project is "beyond the scope of CEQA." It appears that OPR is not currently planning on repealing the challenged language and may be relying on footnote 9 in Ballona Wetlands to support its position. Footnote 9 states: the statement in Guidelines Section 15126.2, subdivision (a) that 'the EIR should evaluate any potentially significant impacts of locating development in other areas susceptible to hazardous conditions (e.g. floodplains, coastlines, wildfire risk areas) as identified in authoritative hazard maps, risk assessments or in land use plans addressing such hazard areas' is consistent with CEQA only to the extent that such impacts constitute impacts on the environment caused by the development rather than impacts on the project caused by the environment. SB 617 addresses Ballona Wetlands by requiring an EIR to include "any significant effects that may result from locating development near, or attracting people to, existing or reasonably foreseeable natural hazards or adverse environmental conditions." Related /Prior Legislation SB 436 (Jackson), clarifies the entities that must receive public notice regarding the period to comment on an environmental document. Each bill amends different provisions of the same section. If SB 436 and SB 617 are both approved by the Senate, double-jointing language will be necessary to amend each bill in the Assembly. CONTINUED SB 617 Page 6 AB 209 (Ammiano, Chapter 171, Statutes of 2011), requires a lead agency preparing an EIR or negative declaration under CEQA to include a description of how the draft EIR or negative declaration could be provided in an electronic format FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes According to the Senate Appropriations Committee: Ongoing costs, varying annually in the hundreds of thousands of dollars, from the General Fund and special funds, depending on the project, for additional analysis under CEQA with some costs being recovered through fees. Possible one-time costs, likely in the high tens of thousands to low hundreds of thousands of dollars from the General Fund for OPR to create an expanded database for CEQA notices. SUPPORT : (Verified 5/28/13) California Coastkeeper Alliance Center on Race, Poverty & the Environment Clean Water Action Endangered Habitats League Environmental Protection Information Center Laguna Greenbelt, Inc. League of Women Voters of California Nichols Berman Environmental Planning Planning and Conservation League Santa Clarita Organization for Planning and the Environment Sierra Club California OPPOSITION : (Verified 5/28/13) American Council of Engineering Companies, California Associated Builders and Contractors of California Association of California Water Agencies California Apartment Association California Association of Realtors California Chamber of Commerce California Grocers Association California League of Food Processors CONTINUED SB 617 Page 7 California Manufacturers and Technology Association California Special Districts Association Chemical Industry Council of California Civil Justice Association of California Large-Scale Solar Association Rural Counties Representatives of California South Coast Air Quality Management District ARGUMENTS IN SUPPORT : According to supporters, "SB 617 updates CEQA and uses available technology to ensure public access to the CEQA process." "CEQA is meant to be an environmental bill of rights, allowing people to comment on projects that may affect their communities. This bill ensures that the law can actually function as it is intended, by making four critical changes: 1.This bill fixes the misguided decision in Ballona Wetlands Trust, in which a court decided that environmental review could not take into account the effects of the physical environment on the project. That decision could lead to projects being built on floodplains, areas of high seismic activity, or areas of high wildlife risk - without these risks even being permitted to be discussed in the environmental review. 2.This bill consolidates and clarifies the confusing notice-posting requirements of CEQA. These notices are critical to the process, since they alert the public to short periods to comment on projects. SB 617 will ensure that notices are timely posted and are available both electronically and in a physical copy. 3.SB 617 provides that a record of the entire proceedings will be prepared, and made available electronically, as soon as a case is filed, minimizing delays in project review. 4.Finally, with all the changes made to CEQA over the years, a number of now mooted or repealed provisions remain in Code, making it more difficult to read. SB 617 will delete these mooted or repealed provisions." "SB 617 (Evans) is a logical step towards keeping the state's CONTINUED SB 617 Page 8 cornerstone environmental review functional and accessible." ARGUMENTS IN OPPOSITION : Opponents write, "SB 617 is an attack on the core of the CEQA, namely that CEQA requires consideration of the impacts of a project on the environment, not the other way around. A variety of other California laws already address issues such as floods, fire hazards, and earthquakes (eg., natural issues that may impact projects). SB 617 ignores these robust bodies of law and injects into CEQA further uncertainty and increased litigation costs for projects ranging from affordable housing and hospitals to schools and infrastructure." "Compliance with CEQA imposes considerable costs on project proponents, and the state is one of the largest project proponents. By expanding the range of factors that must be considered under a CEQA analysis, AB 953 increases the cost to the state for performing those analyses. In addition, AB 953 would provide new opportunities for litigation, allowing project opponents to challenge the adequacy of an EIR for a host of reasons." They continue, "The natural hazards SB 617 seeks to address are already addressed in a myriad of substantive laws in California." [These include flood hazards, fire hazards, and seismic hazards.] "All three of these are covered in the Natural Hazards Disclosure Statement and many more are covered in other disclosure laws. These are a myriad of potential impacts of the existing environment on a project that are required to be addressed in substantive ways outside of, and more effectively than by injecting them into CEQA, in order to protect the occupants of new development." "Furthermore, this issue has been litigated multiple times and courts have repeatedly held that CEQA is not concerned with the effect of the environment on proposed projects. Consideration of the effect of the environment on the project is beyond the scope of CEQA." "The review and approval of proposed projects in California are governed by a host of laws to ensure the health, safety, and environmental protection of our citizens and the communities in which we live. SB 617 ignores these laws and assumes CEQA is the only law in the land. Ironically, one of the results of SB 617 would be to drive development away from infill sites and CONTINUED SB 617 Page 9 towards the urban fringe- a dynamic that flies in the face of SB 375 and a host of smart growth policies throughout the state." "SB 617's requirements duplicate existing laws that are more effective than CEQA. Finally, SB 617 also imposes additional requirements to file notices of approval and notices of determination with both the Governor's Office of Planning and Research and the county clerk's office. While public notice is important, there is no need to have both posted. These notices are issued after the CEQA process is complete and no further public comment is possible. The notice serves only to begin the running statute of limitations to file a lawsuit. Dual public notification could act to delay litigation over projects rather than streamline the process. If it makes sense to post these notices on OPR's Internet Web site, then the requirement to post at the county clerk's office should be deleted." RM:ej 5/28/13 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED