BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 731
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          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         
           
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          |Ayes:|Chesbro, Garcia,          |Ayes:|Achadjian, Levine, Alejo, |
          |     |Muratsuchi, Skinner,      |     |Bradford, Gordon, Mullin, |
          |     |Stone, Williams           |     |Rendon                    |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Patterson                 |     |                          |
          |     |                          |     |                          |
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           APPROPRIATIONS      11-0                                        
           
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          |Ayes:|Gatto, Bocanegra,         |     |                          |
          |     |Bradford,                 |     |                          |
          |     |Ian Calderon, Campos,     |     |                          |
          |     |Eggman, Gomez, Hall, Pan, |     |                          |
          |     |Quirk, Weber              |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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           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.








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             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.








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          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  








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            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  








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            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  








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            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  








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          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 


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