BILL ANALYSIS Ó SB 731 Page 1 Date of Hearing: September 11, 2013 ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT K.H. "Katcho" Achadjian, Chair SB 731 (Steinberg) - As Amended: September 6, 2013 AS PROPOSED TO BE AMENDED SENATE VOTE : 39-0 SUBJECT : Environment: California Environmental Quality Act. SUMMARY : Enacts the California Environmental Quality Act (CEQA) Modernization Act of 2013 and makes a number of changes to provisions of CEQA law. Specifically, this bill : 1)States that this act shall be known, and may be cited, as the CEQA Modernization Act of 2013. 2)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. 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 SB 731 Page 2 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. 3)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. 4)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. 5)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. 6)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). 7)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 SB 731 Page 3 reimburse the lead agency for the costs incurred to prepare the record. Applies to projects determined to be of 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. 8)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. 9)Requires, when a court finds that a public agency has not complied with CEQA, that the court enter a judgment directing the issuance of 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. 10)Requires, on or before January 1, 2015, OPR to prepare a report on economic displacement, and specifies that the report include all of the following: a) A review of social scientific literature on economic displacement; b) An explanation and analysis of any causes of economic displacement; c) A review of the individual and community impacts of economic displacement; d) A discussion and evaluation of available measures to prevent or mitigate the impacts of economic displacement; e) A discussion of any further research needs on economic displacement, if necessary. SB 731 Page 4 11)Allows OPR to make recommendations based on that report, as appropriate, and defines the term "economic displacement." 12)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. 13)Establishes, until January 1, 2017, the position of "Advisor on Renewable Energy Facilities" in the office of the Governor. 14)Declares the intent of the Legislature regarding CEQA issues addressed in the operative provisions of the bill. EXISTING LAW : 1)Requires lead agencies with the principal responsibility for carrying out or approving a proposed project to prepare a negative declaration, mitigated negative declaration, or EIR for this action, unless the project is exempt from CEQA. 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; and, 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. 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 SB 731 Page 5 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. 5)Requires the Office of Planning and Research (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. 6)Requires metropolitan planning organizations to include a sustainable communities strategy (SCS), as defined, in their 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. 7)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. 8)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 SB 731 Page 6 planning activities administered by the Strategic Growth Council. Unknown cost pressures for the California Research Bureau to report annually. COMMENTS : 1)Background on the CEQA Modernization Act of 2013 . This bill enacts the CEQA Modernization Act of 2013 and is intended to update CEQA law and streamline project review. According to the author, this bill is the outgrowth of an effort that began last summer at the end of session (2012) when Senator Steinberg held SB 317 (Rubio), a last minute 'gut and amend' effort to rewrite the law. Senator Steinberg pledged to come back in 2013 with legislation to update and streamline the law, and to take it through a full public process. Last fall, Senator Steinberg and then-Senator Rubio convened a series of experts in working groups to review key issues and identify areas of consensus for new legislation, and in February 2013, SB 731 was introduced. 2)AS PROPOSED TO BE AMENDED : The author is offering amendments to the September 9th version of the bill, to be adopted in this Committee, that would do the following: a) Strike out Sections 7, 9 and 10 in the existing bill; b) Strike out unnecessary definitions (page 15, line 29 - page 16, line 16); c) Add in provisions regarding economic displacement and require OPR to do a study on economic displacement issues; and, d) Technical corrections to Section 19 of the bill per the Judicial Council. 3)This bill passed the Assembly Natural Resources Committee on September 10, 2013, on a 5-1 vote. REGISTERED SUPPORT / OPPOSITION : Support Unknown SB 731 Page 7 Opposition Unknown Analysis Prepared by : Debbie Michel / L. GOV. / (916) 319-3958