BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  SB 731
          Author:   Steinberg (D) and Hill (D)
          Amended:  5/24/13
          Vote:     21

           
           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  8-0, 5/1/13
          AYES:  Hill, Gaines, Calderon, Corbett, Hancock, Jackson, Leno,  
            Pavley
          NO VOTE RECORDED:  Fuller

           SENATE APPROPRIATIONS COMMITTEE  : 7-0, 05/23/13
          AYES: De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg


            SUBJECT  :    Environment:  California Environmental Quality Act  
                      and sustainable communities strategy

           SOURCE  :     Author


           DIGEST  :    This bill makes various changes and clarifications to  
          the California Environmental Quality Act (CEQA).

           ANALYSIS  :    

          Existing law, under CEQA:

           1. Requires lead agencies with the principal responsibility for  
             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  
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             various statutory exemptions, as well as categorical  
             exemptions in the CEQA guidelines). 

           2. States the intent of the Legislature that all agencies of  
             the state government which regulate activities of private  
             individuals, corporations, and public agencies which are  
             found to affect the quality of the environment, shall  
             regulate such activities so that major consideration is given  
             to preventing environmental damage, while providing a decent  
             home and satisfying living environment for every Californian.  
              

           3. States the intent of the Legislature to "[t]ake all action  
             necessary to provide the people of this state with clean air  
             and water, enjoyment of aesthetic, natural, scenic, and  
             historic environmental qualities, and freedom from excessive  
             noise."  

           4. States the intent of the Legislature to "[e]nsure that the  
             long-term protection of the environment, consistent with the  
             provision of a decent home and suitable living environment  
             for every Californian, shall be the guiding criterion in  
             public decision." 

           5. Exempts from CEQA, a residential development project that is  
             undertaken to implement, and is consistent with, a specific  
             plan for which an EIR has been certified.  Provides that this  
             exemption does not apply if, after certification of the EIR  
             for the specific plan, a specified event occurs (as described  
             in Public Resources Code Section 21166), unless a  
             supplemental EIR for the specified plan is certified.  

           6. Establishes the Strategic Growth Council (Council) to award  
             grants and loans for planning and developing sustainable  
             communities' strategies.  

           7. Requires, in making a finding of overriding considerations,  
             the public agency to base its finding on substantial evidence  
             in the record.  

           8. Requires a public agency to adopt a reporting or monitoring  
             program of mitigation measures and ensure their  
             enforceability.  


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           9. Defines "environment" as the physical conditions which exist  
             within the area which will be affected by the proposed  
             project, including land, air, water, minerals, flora, fauna,  
             noise, objects of historic or aesthetic significance.

           10.Establishes a procedure for preparing and certifying the  
             record of proceedings for an action against a public agency  
             on the grounds of noncompliance with CEQA.  

           11.Establishes requirements for a court order for  
             noncompliance.  

          This bill:  

           1. Establishes the position of Advisor on Renewable Energy  
             Facilities in the Governor's Office and sunsets the position  
             on January 1, 2017.

           2. Expands the exemption for a residential development project  
             that is undertaken to implement a specific plan by providing  
             that new information triggering an environmental review does  
             not include new information consisting solely of argument,  
             speculation, unsubstantiated opinion or narrative, evidence  
             that is clearly inaccurate or erroneous, or evidence of  
             social or economic impacts that do not contribute to, or are  
             caused by, physical impacts on the environment. 

           3. States that it is the intent of the Legislature to  
             appropriate $30 million in the annual state budget to the  
             Council for Sustainable Communities Strategy project grants.

           4. Authorizes a renewable energy project applicant to present  
             to the public agency, orally or in writing, the benefits of  
             the project such as reducing traffic or improving air  
             quality.

           5. Requires, in making a finding of overriding considerations,  
             that those findings be made available in draft form for  
             review by the public at least 15 days prior to approval of  
             the proposed project.  Requires the lead agency to provide  
             notice of the draft findings through specified methods,  
             including electronically.

           6. Requires a lead agency to prepare an annual report on  

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             project compliance with mitigation measures as part of the  
             mitigation monitoring plan.  The lead agency may cease  
             reporting once all mitigation measures are completed.

           7. Provides that aesthetic impacts of a residential, mixed-use  
             residential, or employment center project, as defined, within  
             a transit priority area, as defined, shall not be considered  
             significant impacts on the environment.  Clarifies that this  
             provision does not affect or change the authority of a lead  
             agency to consider aesthetic impacts pursuant to local design  
             review ordinances or other discretionary powers.

           8. Requires the Office of Planning and Research (OPR) to  
             prepare revisions to the CEQA guidelines establishing  
             thresholds of significance for noise, and for transportation  
             and parking impacts on residential, mixed-use residential or  
             employment centers within transit priority areas.  Provides  
             that this provision does not affect the authority of a public  
             agency from establishing transportation or parking standards  
             applicable to projects requiring more stringent thresholds of  
             significance.

           9. Allows the statute of limitations for an action against a  
             public agency for noncompliance to be suspended, for a  
             maximum of four years, by mutual agreement of the parties.

           10.Requires a lead agency, at the request of a project  
             applicant, to prepare a record of proceedings concurrently  
             with the preparation of an environmental review document.   
             Requires all documents in the record of proceedings be posted  
             on the lead agency's Internet Web site.

           11.Authorizes the statute of limitations to be suspended by  
             mutual agreement of the parties.  Provides that the period of  
             time for tolling may not exceed four years in such an  
             agreement but authorizes the extension of the tolling period.

           12.Requires the Attorney General report annually to the  
             Legislature with information on actions or proceedings  
             brought under CEQA.

           13.Authorizes a court to direct an agency to revise only those  
             portions of a CEQA document found not to be in compliance  
             with CEQA and includes specific requirements to be met for a  

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             court to do so.

           Background
            
           CEQA:  The environmental review process  .  A CEQA environmental  
          review document is a public document.  It provides for  
          transparency as well as an opportunity for citizens to comment  
          on the document and participate in the environmental review  
          process.  

          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  
          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.

           CEQA litigation  .  Enforcement of CEQA is primarily through  
          citizens' lawsuits challenging a project's environmental review  
          in court.  Some contend that CEQA litigation delays, if not  
          kills, projects and that vexatious litigation abounds.  However,  
          the total number of CEQA cases filed is actually quite small,  
          averaging only about 200 cases per year statewide.  CEQA cases  

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          make up 0.02% of 1,100,000 civil cases filed annually in  
          California.  In addition, the California Attorney General's  
          office conducted a case study of CEQA challenges in the City and  
          County of San Francisco from July 2011 through December 2011 and  
          found that 18 lawsuits were filed out of 5,203 projects  
          considered under CEQA.  However, some parties argue that the  
          simple threat of a lawsuit is an impetus for extra costs and  
          delays of a project subject to environmental review.

           FISCAL EFFECT :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Senate Appropriations Committee:

             One-time costs of $73,000 for fiscal year 2013-14 and  
             $109,000 annually thereafter from the General Fund for the  
             Department of Justice for annual reporting requirements.

             One-time costs of $500,000 to $750,000 from the General Fund  
             for the OPR to develop threshold standards for noise,  
             transportation, and parking impacts.

             Ongoing costs of approximately $120,000 for the creation of  
             the Advisor on Renewable Energy Facilities within the Office  
             of the Governor.

             Cost pressure of $30 million to the General Fund for local  
             assistance grants for planning activities administered by the  
             Council.

           SUPPORT  :   (Verified  5/23/13)

          California Association of Realtors
          California Chamber of Commerce
          California League of Conservation Voters
          California Manufacturers and Technology Association
          Silicon Valley Leadership Group


           ARGUMENTS IN SUPPORT  :    According to the author's office, this  
          bill is a comprehensive reform measure to strengthen CEQA's  
          protection of the state's environment and residents while  
          modernizing the law to aid California's economic growth.  The  
          author states, "today's bill is the result of months of  

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          discussion and negotiation with key representatives from the  
          business, environmental, and organized labor communities."   
          These changes were key issues identified by a CEQA working group  
          of experts brought together by Senator Steinberg this past fall.  
           The author states, "Taken together they will help reduce  
          litigation and delays from CEQA while protecting the legitimate  
          uses of the statute."


          RM:k  5/24/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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