BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 731
                                                                  Page  1

          Date of Hearing:   August 21, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                  SB 731 (Steinberg) - As Amended:  August 6, 2013 

          Policy Committee:                             Natural Resources  
          Vote:        6-1
                       Local Government                       7-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill enacts the California Environmental Quality Act (CEQA)  
          Modernization Act of 2013 and makes a series of definitions,  
          findings and revisions to CEQA law.  Specifically, this bill:   

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

          2)Modifies the existing residential exemption to limit what is  
            considered new information that would invalidate the  
            exemption.

          3)States the intent of the Legislature to appropriate the sum of  
            $30 million in the annual Budget Act beginning in the 2014-15  
            fiscal year, to the Strategic Growth Council to provide  
            competitive grants to local agencies for planning activities  
            related to implementing SB 375.

          4)Authorizes a project applicant for a renewable energy project  
            to present environmental or health benefits to the public  
            agency as specified.

          5)Requires a public agency to make draft findings available for  
            public review as specified 15 days prior to project approval.

          6)Requires the lead agency to prepare and electronically post  
            annual mitigation compliance reports until all mitigation  
            measures are completed. 

          7)Requires the Governor's Office of Planning and Research (OPR)  








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            to prepare and submit to the Secretary of the Natural  
            Resources Agency, revisions to the CEQA Guidelines to  
            establish prescribed thresholds of significance for noise and  
            transportation impacts for residential, mixed-use residential,  
            or employment center projects or infill sites within transit  
            priority areas.  Requires OPR to circulate a draft of this  
            revision on or before July 1, 2014.

          8)Prohibits aesthetic and parking impacts of a residential,  
            mixed-use residential, or employment center project on an  
            infill site within a transit priority area from being  
            considered significant impacts on the environment.  States  
            that the provisions do not affect the authority of a lead  
            agency to consider aesthetic impacts pursuant to local design  
            review ordinances or other discretionary powers provided by  
            other laws or policies and establish more stringent thresholds  
            of significance for projects subject to these provisions. 

          9)Allows the statute of limitations for bringing a CEQA lawsuit  
            to be tolled for successive periods up to four years by  
            agreement of the parties as specified.

          10)Authorizes a lead agency, for certain projects and upon a  
            project applicant's request, to prepare concurrently with the  
            administrative process the record of proceedings, as specified  
            that would be used in a judicial challenge.  The lead agency  
            shall certify the record of proceedings within 30 days after  
            the filing of specified notices.

          11)Requires the record of proceedings for the preparation of a  
            negative declaration, mitigated negative declaration, EIR, or  
            other specified documents to meet the concurrent preparation  
            requirements under certain circumstances for specified  
            projects.

          12)Requires the California Research Bureau, subject to the  
            availability of funds and other conditions, to annually submit  
            a report to the Legislature as specified.

          13)Requires, when a court finds that a public agency has not  
            complied with CEQA, that the court issue a peremptory writ of  
            mandate specifying what action is necessary to comply.

           FISCAL EFFECT  









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          1)One-time GF costs to OPR of  approximately $500,000 to develop  
            threshold standards for noise, transportation, and parking  
            impacts.

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

          3)GF Cost pressure of $30 million local assistance grants for  
            planning activities administered by the Strategic Growth  
            Council.

          4)Unknown cost pressures for the California Research Bureau to  
            report annually.

           COMMENTS  

           1)Purpose.  According to the author, this bill makes several  
            substantive changes that will modernize CEQA by making it more  
            efficient to aid California's economic growth.  The author  
            intends this bill to strengthen protection of the environment  
            and reduce both project litigation and delays in project  
            approval.

            This bill is the result of months of negotiations with key  
            experts from the business, organized labor and environmental  
            communities following the identification of key issues by a  
            CEQA working group convened last fall.

           2)Work-in-Progress.  The author continues to meet and negotiate  
            with numerous business, environmental, governmental and other  
            interests to address concerns.   
            Broad concerns have been raised by local agencies about the  
            provisions in the bill.  Local governments serve as the lead  
            agencies on most projects under CEQA.  Local Agencies are  
            concerned that many provisions of the bill will lead to  
            increased litigation, thus increasing costs for local agencies  
            and delaying projects.

            Supporters, such as the Center for sustainable Neighborhoods,  
            argue that the bill will reduce the barriers to building more  
            sustainable development and improve California's social,  
            environmental and economic well-being.

            The majority of the stakeholders continue to seek amendments.








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           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081