BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    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  
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            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."


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          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  

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          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.


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               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.


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          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

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          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  

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          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  

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          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

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