BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 731
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          Date of Hearing:  September 10, 2013

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                 SB 731 (Steinberg) - As Amended:  September 9, 2013

          SENATE VOTE  :  39-0
           
          SUBJECT  :  California Environmental Quality Act (CEQA)

           SUMMARY  :  Enacts the "CEQA Modernization Act of 2013," making  
          various clarifications and revisions to CEQA, including updating  
          the standard for analyzing transportation impacts of projects  
          near existing or planned transit stops.  Specifically,  this  
          bill  :

          1)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.

          2)Requires the Office of Planning and Research (OPR) to propose  
            revisions to the CEQA Guidelines to establish new, non-LOS  
            criteria for determining the significance of transportation  
            impacts of projects within "transit priority areas." 

             a)   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.

             b)   Requires the criteria to promote the reduction of  
               greenhouse gas emissions, the development of multi-modal  
               transportation networks, and a diversity of land uses.








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             c)   Requires OPR to recommend potential metrics to measure  
               transportation impacts, including vehicle miles traveled,  
               vehicle miles traveled per capita, automobile trip  
               generation rates, or automobile trips generated.

             d)   Authorizes OPR to establish criteria for models used to  
               analyze transportation impacts to ensure the models are  
               accurate, reliable, and consistent with the intent of this  
               section. 

             e)   Provides that automobile delay, as described solely by  
               LOS 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 by the Secretary of the Natural Resources Agency.

             f)   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 is not affected.  

          3)Authorizes OPR to adopt CEQA Guidelines establishing metrics  
            for analysis of transportation impacts that are alternatives  
            to LOS to be used outside transit priority areas.

          4)Requires OPR to prepare a report on "economic displacement,"  
            which the bill defines as the involuntary departure of  
            residents and businesses from a community due to increased  
            housing or rental costs attributable to specific private or  
            public investments.  Requires OPR to include specified items  
            in the report, circulate a draft report on or before July 1,  
            2014, and transmit the report to the Secretary of the Natural  
            Resources Agency.  Requires OPR and the Agency to incorporate  
            some or all of the report's recommendations into the CEQA  
            Guidelines.

          5)Requires the Office of Planning and Research (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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          6)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, clarifies 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).  

          7)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 the agency's adoption of the findings, and provides  
            specified procedures for publication and transmittal to  
            specified parties.   

          8)Authorize the procedures of the Brown Act to be substituted  
            for the above 10-day notice requirement (potentially reducing  
            the notice period to three days).

          9)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.  

          10)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).  

          11)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.  

          12)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.  

          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.   
            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.  

          14)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.  

          15)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.  

          16)Establishes, until January 1, 2017, the position of "Advisor  
            on Renewable Energy Facilities" in the office of the Governor.  
             

          17)Declares the intent of the Legislature regarding CEQA issues  
            addressed in the operative provisions of the bill.  

          18)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 doesn't 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, "(this) 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."
           
          REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Boilermakers International
          Boilermakers Local 92
          Breathe California of Los Angeles County
          Bricklayers & Allied Craftworkers Local 3
          Building & Construction Trades Council of Alameda County
          Building & Construction Trades Council of Humboldt and Del Norte  
          Counties
          Building & Construction Trades Council of Marin County
          Building & Construction Trades Council of Stanislaus, Merced,  
          Tuolumne & Mariposa Counties
          California Association of Sanitation Agencies
          California Labor Federation
          California League of Conservation Voters
          Cement Masons Local 400
          Cement Masons Local 600
          Construction Trades Council of San Bernardino & Riverside  








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          Counties
          Contra Costa Building & Construction Trades Council
          District Council of Ironworkers
          East Bay Bicycle Coalition
          Elevator Constructors Local 8
          Elevator Constructors Local 18
          Fresno, Madera, Kings & Tulare Counties Building & Construction  
          Trades Council
          Frost Insulators & Allied Workers Local 16
          Greenbelt Alliance
          IBEW Local 11
          IBEW Local 332
          IBEW Local 428
          Imperial County Building & Construction Trades Council
          Insulators & Allied Workers 5
          International Brotherhood of Teamsters
          Los Angeles County Bicycle Coalition
          Los Angeles County Federation of Labor
          Los Angeles/Orange Counties Building & Construction Trades  
          Council
          Mid Valley Building & Construction
          Monterey/Santa Cruz Counties Building & Construction Trades  
          Council
          Napa-Solano Counties Building & Construction Trades Council
          Natural Resources Defense Council
          Nature Conservancy
          Painters & Allied Trades District Council 36
          Roofers & Waterproofers 40
          Roofers & Waterproofers Local 220
          San Diego County Building & Construction Trades Council
          San Francisco Bicycle Coalition
          San Francisco Building & Construction Trades Council
          San Mateo County Building & Construction Trades Council
          Santa Clara & San Benito Counties Building & Construction Trades  
          Council
          Sheet Metal Workers 104
          Sheet Metal Workers Local 206
          Sierra Building and Construction Trades Council
          State Building and Construction Trades Council
          Sonoma, Mendocino, Lake Counties Building & Construction Trades  
          Council
          Southern California District Council of Laborers
          Southern California Pipe Trades District Council 16
          Teamsters Heavy Highway Building & Construction Commission
          TransForm








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          Tri-Counties Building & Construction Trades Council
          UFCW Western States Council
          Union of Painters and Allied Trades District Council 16
          WalkSanDiego
           
            Opposition 
           
          Association of California Healthcare District
          Association of California School Administrators
          California Association of School Business Officials
          California's Coalition for Adequate School Housing
          California Special Districts Association
          California State Association of Counties
          League of California Cities
          Los Angeles Area Chamber of Commerce
          Rural Counties Representatives of California
          Small School Districts' Association
          Urban Counties Caucus

           Analysis Prepared by  :  Lawrence Lingbloom / NAT. RES. / (916)  
          319-2092