BILL ANALYSIS Ó SB 731 Page 1 SENATE THIRD READING SB 731 (Steinberg) As Amended September 6, 2013 Majority vote SENATE VOTE :39-0 NATURAL RESOURCES 6-1 LOCAL GOVERNMENT 7-0 ----------------------------------------------------------------- |Ayes:|Chesbro, Garcia, |Ayes:|Achadjian, Levine, Alejo, | | |Muratsuchi, Skinner, | |Bradford, Gordon, Mullin, | | |Stone, Williams | |Rendon | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Patterson | | | | | | | | ----------------------------------------------------------------- APPROPRIATIONS 11-0 ----------------------------------------------------------------- |Ayes:|Gatto, Bocanegra, | | | | |Bradford, | | | | |Ian Calderon, Campos, | | | | |Eggman, Gomez, Hall, Pan, | | | | |Quirk, Weber | | | |-----+--------------------------+-----+--------------------------| | | | | | ----------------------------------------------------------------- SUMMARY : Makes various clarifications and revisions to the California Environmental Quality Act (CEQA), including limiting the scope of review for certain residential, mixed-use, and commercial "employment center" projects near existing or planned transit stops. Specifically, this bill : 1)Requires the Office of Planning and Research (OPR), on or before July 1, 2014, to propose revisions to the CEQA Guidelines to establish criteria for determining the significance of transportation impacts of projects within "transit priority areas," which may address a project's vehicle miles traveled, vehicle miles traveled per capita, automobile trip generation rates, automobile trips generated, or other metrics that promote the reduction of greenhouse gas emissions, the development of multimodal transportation networks, and a diversity of land uses. SB 731 Page 2 a) Authorizes OPR to also establish criteria for models used in determining these impacts in order to be sure the models are accurate, reliable, and consistent with the intent of this section. b) Provides that automobile delay, as described solely by level of service or similar measures of capacity or congestion within a transit priority area, shall not support a finding of significance pursuant to CEQA once these guidelines are certified. c) Defines "transit priority area" as an area within one-half mile of a major transit stop that is either existing or planned, if the planned stop is scheduled to be completed within the planning horizon of a specified federal transportation plan. d) Provides that aesthetic and parking impacts of projects subject to this section shall not be considered significant impacts on the environment for purposes of CEQA, while also stating that the authority of a lead agency to consider aesthetic impacts pursuant to local design review ordinances or other discretionary powers in not affected. 2)Amends the Congestion Management Act (Government Code Section 65088, et seq.) to expand the definition of "infill opportunity zone" to include areas within one-half mile of an existing or planned major transit stop (to be consistent with the definition of "transit priority area" in this bill), and authorize a city or county to designate an infill opportunity zone (currently subject to a December 31, 2009, sunset and other limiting conditions), for the purpose of obtaining an exemption from the application of "level of service standards" (LOS, a threshold that defines a deficiency on the congestion management program highway and roadway system which requires the preparation of a deficiency plan). The effect of these provisions is to reinstate prior law allowing local governments to opt out of LOS requirements in infill areas. 3)Requires OPR to propose by July 1, 2015, and the Secretary of the Natural Resources Agency to adopt by January 1, 2016, revisions to the CEQA Guidelines establishing criteria for a lead agency to assess the need for translating specified CEQA notices into non-English languages. SB 731 Page 3 4)Clarifies, for purposes of the existing exemption for a residential development project that is consistent with a specific plan for which an EIR has been prepared, that "new information" which would invalidate the exemption does not include "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 not caused by, physical impacts on the environment" (making the meaning of "new information" consistent with the existing meaning of "substantial evidence" in CEQA). 5)Requires, when a public agency finds that specific economic, legal, social, technological, or other considerations make infeasible the mitigation measures or alternatives identified in the EIR and finds that specific overriding economic, legal, social, technological, or other benefits of the project outweigh the significant effects on the environment, that the agency's findings be published for review for at least 10 days prior to approval of the project, and provides specified procedures for publication and transmittal to specified parties. 6)Authorize the procedures of the Ralph M. Brown Act to be substituted for the above 10-day notice requirement (effectively reducing the notice requirement to three days). 7)Requires a lead agency to prepare and publish a report on a project's compliance with mitigation measures adopted pursuant to CEQA, upon request of a member of the public. 8)Provides that the statute of limitations for bringing a CEQA lawsuit may be tolled for successive periods up to four years each by agreement of the parties (petitioner, public agency and real party in interest/applicant). 9)For certain projects and upon a project applicant's request, authorizes a lead agency to prepare concurrently with the administrative process the record of proceedings that would be used in a judicial challenge to an agency's action or decision under CEQA. Specifies procedures for preparation and publication of the record. Requires the project applicant to reimburse the lead agency for the costs incurred to prepare the record. Applies to projects determined to be of SB 731 Page 4 statewide, regional, or area-wide environmental significance; infill projects for which an EIR was certified for a city or county's planning level decision; a project implementing a sustainable communities strategy pursuant to SB 375 (Steinberg), Chapter 728, Statutes of 2008; or any other project for which the lead agency consents to prepare the record of proceedings pursuant to the above requirements. 10)Requires the California Research Bureau, subject to the availability of funds, to report annually to the Legislature regarding CEQA lawsuits, including the parties involved, the type of action and violation alleged, and the disposition of the case. 11)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. Requires the writ include only those mandates necessary to achieve compliance and only those project activities in noncompliance, and permits a writ to direct the agency to revise only those portions of a CEQA document found not to be in compliance, provided the non-compliant issues are severable from the remainder of the project. 12)Declares the intent of the Legislature to appropriate $30 million to the Strategic Growth Council to provide competitive grants to local agencies for planning activities related to implementing SB 375. 13)Authorizes the applicant for a project, including a renewable energy project, to present to the public agency the onsite or offsite benefits of the project. 14)Establishes, until January 1, 2017, the position of "Advisor on Renewable Energy Facilities" in the office of the Governor. 15)Declares the intent of the Legislature regarding CEQA issues addressed in the operative provisions of the bill. 16)Titles the bill the "CEQA Modernization Act of 2013." EXISTING LAW : 1)Requires, under CEQA, lead agencies with the principal SB 731 Page 5 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)Requires an EIR to identify and analyze: a) Significant effects on the environment that would occur if the project is approved, unless the agency finds that alternatives to the project or mitigation measures would address the effects, or specific overriding economic, legal, social, technological, or other benefits of the project outweigh them. b) Cumulative impacts of a project when, considered in the context of environmental change occurring over time, the incremental effect is cumulatively considerable. 3)Exempts from CEQA specified residential housing projects which meet criteria established to ensure the project does not have a significant effect on the environment, including urban infill housing projects not more than 100 units on a site not more than four acres in size which is within one-half mile of a major transit stop. (SB 1925 (Sher), Chapter 1039, Statutes of 2002) 4)Establishes abbreviated CEQA review procedures for specified infill projects, where only specific or more significant effects on the environment which were not addressed in a prior planning-level EIR need be addressed. An EIR for such a project need not consider alternative locations, densities, and building intensities or growth-inducing impacts. Infill projects may include residential, retail, commercial, transit station, school, or public office building projects located within an urban area. Requires OPR to develop CEQA guidelines, including statewide standards to promote smart growth, reduction of greenhouse gas (GHG) emissions, reduction in water use, energy efficiency improvements and protection of public health. (SB 226 (Simitian), Chapter 469, Statutes of 2011) 5)Requires metropolitan planning organizations to include a sustainable communities strategy (SCS), as defined, in their SB 731 Page 6 regional transportation plans, or an alternative planning strategy (APS), for the purpose of reducing GHG emissions, aligns planning for transportation and housing, and creates specified incentives for the implementation of the strategies, including CEQA exemption or abbreviated review for eligible residential projects. (SB 375 (Steinberg), Chapter 728, Statutes of 2008) 6)Authorizes judicial review of CEQA actions taken by public agencies, following the agency's decision to carry out or approve the project. Challenges alleging improper determination that a project may have a significant effect on the environment, or alleging an EIR does not comply with CEQA, must be filed in the Superior Court within 30 days of filing of the notice of approval. 7)Establishes that a record of proceeding includes, but is not limited to, all application materials, staff reports, transcripts or minutes of public proceedings, notices, written comments, and written correspondence prepared by or submitted to the public agency regarding the proposed project. Establishes a procedure for the preparation, certification, and lodging of the record of proceedings. FISCAL EFFECT : According to the Assembly Appropriations Committee, one-time General Fund (GF) costs to OPR of approximately $500,000 to develop threshold standards for noise, transportation, and parking impacts. Ongoing GF costs of approximately $120,000 for the creation of the Advisor on Renewable Energy Facilities within the Office of the Governor. GF cost pressure of $30 million for local assistance grants for planning activities administered by the Strategic Growth Council. Unknown cost pressures for the California Research Bureau to report annually. COMMENTS : 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. A lead agency must base its SB 731 Page 7 determination of significant effects on substantial evidence. 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. 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 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." Analysis Prepared by : Lawrence Lingbloom / NAT. RES. / (916) 319-2092 FN: 0002641