BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 743
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          Date of Hearing:  September 11, 2013

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                           K.H. "Katcho" Achadjian, Chair
                 SB 743 (Steinberg) - As Amended:  September 6, 2013

                               AS PROPOSED TO BE AMENDED
           
           SENATE VOTE  :   Vote not relevant
           
          SUBJECT  :   Environmental quality: judicial review streamlining  
          for environmental          leadership development projects and  
          entertainment and sports center in the City of Sacramento.

           SUMMARY  :   Establishes special administrative and judicial  
          review procedures under the California Environmental Quality Act  
          (CEQA) for the City of Sacramento's proposed entertainment and  
          sports center project.  Specifically,  this bill  :   

          1)Make a number of legislative findings about the unemployment  
            rates in Sacramento County, the need for a new, more efficient  
            entertainment and sports center located in downtown Sacramento  
            and how Sacramento would benefit from the addition of a  
            multipurpose event center, the number of jobs such a project  
            would create, and the unprecedented opportunity to implement  
            innovative measures that will reduce traffic and air quality  
            impacts and mitigate the greenhouse gas emissions resulting  
            from the project.

          2)Declare that it is in the interest of the state to expedite  
            judicial review of the entertainment and sport center project,  
            as appropriate, while protecting the environment and the right  
            of the public to review, comment on, and if necessary, seek  
            judicial review of, the adequacy of the environmental impact  
            report (EIR) for the project.

          3)Define the following terms:

             a)   "Applicant" to mean a private entity or its affiliates  
               that proposes the project and its successors, heirs, and  
               assignees.

             b)   "City" to mean the City of Sacramento.

             c)   "Downtown arena" to mean the following components of the  








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               entertainment and sports center project from demolition and  
               site preparation through operation:

               i)     An arena facility that will become the new home to  
                 the City of Sacramento's National Basketball Association  
                 (NBA) team that:

                  (1)       Receives Leadership in Energy and  
                    Environmental Design (LEED) gold certification for new  
                    construction within one year of the completion of the  
                    first NBA season;

                  (2)       Minimizes operational traffic congestion and  
                    air quality impacts through either or both project  
                    design and the implementation of feasible mitigation  
                    measures that will do all of the following:

                    (a)         Achieve and maintain carbon neutrality or  
                      better by reducing to at least zero the net  
                      emissions of greenhouse gas emissions, as defined,  
                      from private automobile trips to the downtown arena  
                      as compared to the baseline as verified by the  
                      Sacramento Metropolitan Air Quality Management  
                      District; 

                    (b)         Achieve a per-attendee reduction in  
                      greenhouse gas emissions from automobiles and light  
                      trucks compared to per attendee greenhouse gas  
                      emissions associated with the existing arena during  
                      the 2012-2013 NBA season that will exceed the carbon  
                      reduction targets for 2020 and 2035 achieved in the  
                      sustainable communities strategy (SCS) prepared by  
                      the Sacramento Area Council of Governments (SACOG)  
                      for the Sacramento region pursuant to SB 375  
                      (Steinberg), Chapter 728 of the Statutes of 2008;  
                      and,

                    (c)         Achieve and maintain  
                      vehicle-miles-traveled (VMT) per attendee for NBA  
                      events at the downtown arena that is no more than  
                      85% of the baseline.

               ii)    Associated public spaces; and,

               iii)   Facilities and infrastructure for ingress, egress,  








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                 and use of the arena facility.

             d)   "Entertainment and sports center project" or "project"  
               to mean a project that substantially conforms to the  
               project description for the entertainment and sports center  
               project set forth in the notice of preparation released by  
               the City of Sacramento on April 12, 2013.

          4)Allows the City to prosecute eminent domain actions for 545  
            and 600 K Street, Sacramento, California and surrounding  
            publicly accessible areas and rights of ways within 200 feet  
            of 600 K Street, Sacramento, California, through order of  
            possession pursuant to the Eminent Domain Law prior to  
            completing environmental review under CEQA, and specifies that  
            this provision shall not apply to any other eminent domain  
            actions prosecuted by the City of Sacramento or to eminent  
            domain actions based on a finding of blight.

          5)Requires, on or before July 1, 2014, the Judicial Council to  
            adopt a rule of court to establish procedures applicable to  
            actions or proceedings brought to attack, review, set aside,  
            void, or annul the certification of the EIR for the project or  
            the granting of any project approvals that require the actions  
            or proceedings, including any potential appeals therefrom, be  
            resolved, to the extent feasible, within 270 days of  
            certification of the records of proceedings, as specified.

          6)Specifies, notwithstanding any other law, that the procedures  
            established pursuant to 5), above, shall apply to an action or  
            proceeding to attack, review, set aside, void, or annul the  
            certification of the EIR for the project or the granting of  
            any project approvals.

          7)Requires the draft and final EIR to include a notice in not  
            less than 12-point type stating the following:

                 THIS EIR IS SUBJECT TO SECTION 21168.6.6 OF THE PUBLIC  
            RESOURCES CODE, WHICH PROVIDES, AMONG OTHER THINGS, THAT THE  
            LEAD AGENCY NEED NOT CONSIDER CERTAIN COMMENTS FILED AFTER THE  
            CLOSE OF THE PUBLIC COMMENT PERIOD FOR THE DRAFT EIR.  ANY  
            JUDICIAL ACTION CHALLENGING THE CERTIFICATION OF THE EIR OR  
            THE APPROVAL OF THE PROJECT DESCRIBED IN THE EIR IS SUBJECT TO  
            THE PROCEDURES SET FORTH IN SECTION 21168.6.6 OF THE PUBLIC  
            RESOURCES CODE.  A COPY OF SECTION 21168.6.6 OF THE PUBLIC  
            RESOURCES CODE IS INCLUDED IN THE APPENDIX TO THIS EIR.  








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          8)Requires the draft EIR and final EIR to contain, as an  
            appendix, the full text of this section of the bill.

          9)Requires, within 10 days after the release of the draft EIR,  
            the lead agency to conduct an informational workshop to inform  
            the public of the key analyses and conclusions of that report.

          10)Requires, within 10 days before the close of the public  
            comment period, the lead agency to hold a public hearing to  
            receive testimony on the draft EIR, and require a transcript  
            of the hearing to be included as an appendix to the final EIR.

          11)Allows, within five days following the close of the public  
            comment period, a commenter on the draft EIR to submit to the  
            lead agency a written request for nonbinding mediation, and  
            require the lead agency and applicant to participate in  
            nonbinding mediation with all commenters who submitted timely  
            comments on the draft EIR and who requested the mediation. 

          12)Specifies that mediation shall end no later than 35 days  
            after the close of the public comment period.

          13)Provides that a request for mediation shall identify all  
            areas of dispute raised in the comment submitted by the  
            commenter that are to be mediated.

          14)Requires the lead agency to select one or more mediators who  
            shall be retired judges or recognized experts with at least  
            five years experience in land use and environmental law or  
            science, or mediation.

          15)Requires the applicant to bear the costs of mediation.

          16)Requires that a mediation session shall be conducted on each  
            area of dispute with the parties requesting mediation on that  
            area of dispute.

          17)Requires the lead agency to adopt, as a condition of  
            approval, any measures agreed upon by the lead agency, the  
            applicant, and any commenter who requested mediation.

          18)Provides that a commenter who agrees to a measure shall not  
            raise the issue addressed by that measure as a basis for an  
            action or proceeding challenging the lead agency's decision to  








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            certify the EIR or to grant one or more initial project  
            approvals.

          19)Specifies that the lead agency need not consider written  
            comments submitted after the close of the public comment  
            period, unless those comments address any of the following:
             a)   New issues raised in the response to comments by the  
               lead agency;

             b)   New information released by the public agency subsequent  
               to the release of the draft EIR, such as new information  
               set forth or embodied in a staff report, proposed permit,  
               proposed resolution, ordinance, or similar documents;

             c)   Changes made to the project after the close of the  
               public comment period;

             d)   Proposed conditions for approval, mitigation measures,  
               or proposed findings, as required, or a proposed reporting  
               and monitoring program, as required, where the lead agency  
               releases those documents subsequent to the release of the  
               draft EIR; and,

             e)   New information that was not reasonably known and could  
               not have been reasonably known during the public comment  
               period.

          20)Requires the lead agency to file the notice required by (a)  
            of Section 21152 within five days after the last initial  
            project approval.

          21)Requires the lead agency to prepare and certify the record of  
            the proceedings in accordance with the provisions in the bill  
            and in accordance with Rule 3.1365 of the California Rules of  
            Court, and require the applicant to pay the lead agency for  
            all costs of preparing and certifying the record of  
            proceedings.

          22)Requires the lead agency to make available to the public in a  
            readily accessible electronic format, no later than three  
            business days following the date of the release of the draft  
            EIR, the draft EIR and all other documents submitted to or  
            relied on by the lead agency in the preparation of the draft  
            EIR.  Requires the document prepared by the lead agency or  
            submitted by the applicant after the date of the release of  








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            the draft EIR that is a part of the record of the proceedings  
            to be made available to the public in a readily accessible  
            electronic format within five business days after the document  
            is prepared or received by the lead agency.

          23)Clarifies that documents submitted to or relied on by the  
            lead agency that were not prepared specifically for the  
            project and are copyright protected are not required to be  
            made readily accessible in an electronic format,  
            notwithstanding 22), above.  Specifies, for those copyright  
            protected documents, that the lead agency shall make an index  
            of documents available in an electronic format no later than  
            the date of the release of the draft EIR, or within five  
            business days if the document is received or relied on by the  
            lead agency after the release of the draft EIR.  Provide that  
            the index must specify the libraries or lead agency offices in  
            which hardcopies of the copyrighted materials are available  
            for public review.

          24)Specifies that the lead agency shall encourage written  
            comments on the project to be submitted in a readily  
            accessible electronic format, and shall make any such comment  
            available to the public in a readily accessible electronic  
            format within five days of its receipt.

          25)Requires, within seven days after the receipts of any comment  
            that is not in an electronic format, the lead agency to  
            convert that comment into a readily accessible electronic  
            format and make it available to the public in that format.

          26)Requires the lead agency to indicate in the record of the  
            proceedings comments received that were not considered by the  
            lead agency, as specified, and need not include the content of  
            the comments as a part of the record.

          27)Requires, within five days after the filing of the notice  
            required by (a) of Section 21152, the lead agency to certify  
            the record of the proceedings for the approval or  
            determination and to provide an electronic copy of the record  
            to a party that has submitted a written request for a copy.   
            Allows the lead agency to charge and collect a reasonable fee  
            the fore reasonable cost of reproducing that copy.

          28)Requires, within 10 days after being served with a complaint  
            or a petition for a writ of mandate, the lead agency to lodge  








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            a copy of the certified record of proceedings with the  
            superior court.

          29)Requires any dispute over the content of the record of the  
            proceedings to be resolved by the superior court.  Requires,  
            unless the superior court directs otherwise, a party disputing  
            the content of the record to file a motion to augment the  
            record at the time it files its initial brief.

          30)Requires the contents of the records to be set forth as  
            specified in (e) of Section 21167.6.
                                                             
          31)Requires, as a condition of approval of the project, the lead  
            agency to require the applicant, with respect to any measures  
            specific to the operation of the downtown arena, to implement  
            those measures that will meet the requirements by the end of  
            the first NBA regular season or June of the first NBA regular  
            season, whichever is later, during which an NBA team has  
            played at the downtown arena.

          32)Requires the lead agency, to maximize public health,  
            environmental, and employment benefits, to place the highest  
            priority on feasible measures that will reduce greenhouse gas  
            emission on the downtown arena site and in the neighboring  
            communities of the downtown arena.  Mitigation measures that  
            shall be considered, and implemented, if feasible, include,  
            but are not limited to:

             a)   Temporarily expanding the capacity of a public transit  
               line, as needed, to serve downtown arena events;

             b)   Providing private charter buses or other similar  
               services, as needed, to serve downtown arena events; and,

             c)   Paying its fair share of the cost of measures that  
               expand the capacity of a public fixed or light rail station  
               that is used by spectators attending downtown arena events.

          33)Allows offset credits to be employed by the applicant only  
            after the feasible local emission reduction measures have been  
            implemented.  Requires the applicant to, to the extent  
            feasible, place the highest priority on the purchase of offset  
            credits that produce emission reductions within the city or  
            the boundaries of the Sacramento Metropolitan Air Quality  
            Management District.








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          34)Specifies, in granting relief in an action or proceeding  
            brought pursuant to the bill's provisions, that the court  
            shall not stay or enjoin the construction or operation of the  
            downtown area unless the court finds either of the following:

             a)   The continued construction or operation of the downtown  
               arena presents an imminent threat to the public health and  
               safety; or,

             b)   The downtown area site contains unforeseen important  
               Native American artifacts or unforeseen important  
               historical, archaeological, or ecological values that would  
               be materially, permanently, and adversely affected by the  
               continued construction or operation of the downtown arena  
               unless the court stays or enjoins the construction or  
               operation of the downtown arena.

          35)Specifies, if the court finds that either clause listed in  
            34), above, is satisfied, that the court shall only enjoin  
            those specific activities associated with the downtown arena  
            that present an imminent threat to public health and safety or  
            that materially, permanently, and adversely affect unforeseen  
            Native American artifacts or unforeseen important historical,  
            archaeological, or ecological values.

          36)Requires an action or proceeding to attack, set aside, void,  
            or annul a determination, finding, or decision of the lead  
            agency granting a subsequent project approval to be subject to  
            the requirements of Chapter 6 (commencing with Section 21165).

          37)Allows, where an action or proceeding challenges aspects of  
            the project other than the downtown arena and those portions  
            or specific project activities are severable from the downtown  
            arena, the court to enter an order as to aspects of the  
            project other than the downtown arena that includes one or  
            more of the remedies, as specified.

          38)Provides that specified provisions of the bill are severable,  
            and specifies that if any provision or its application is held  
            invalid, that invalidity shall not affect other provisions or  
            applications that can be given effect without the invalid  
            provision or application.

          39)Specifies that the bill's provisions do not apply to a  








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            project if the Governor does not certify a project as an  
            environmental leadership development project eligible for  
            streamlining, as provided.

          40)Adds the following definition to the section of law dealing  
            with streamlining for leadership project:

             a)   "Jobs that pay prevailing wages" means that all  
               construction workers employed in the execution of the  
               project will receive at least the general prevailing rate  
               of per diem wages for the type of work and geographic area,  
               as determined by the Director of Industrial Relations  
               pursuant to Section 1773 and 1773.9 of the Labor Code.  If  
               the project is certified for streamlining, the project  
               applicant shall include this requirement in all contracts  
               for the performance of the work.

          41)Requires, on or before July 1, 2014, the Judicial Council to  
            adopt a rule of court to establish procedures applicable to  
            actions of proceedings brought to attack, review, set aside,  
            void, or annul the certification of the EIR for an  
            environmental leadership development project certified by the  
            Governor pursuant to this chapter or the granting of any  
            project approvals that require the actions or proceedings,  
            including any potential appeals therefrom, to be resolved, to  
            the extent feasible, within 445 days of certification of the  
            record of proceedings, as specified.

          42)Provides that documents submitted to or relied on by the lead  
            agency that were not prepared specifically for the project and  
            are copyright protected are not required to be made readily  
            accessible in an electronic format.  For those  
            copyright-protected documents, the lead agency shall make an  
            index of these documents available in an electronic format no  
            later than the date of the release of the draft EIR, or within  
            five business days, as specified.

          43)Provides that disputes arising from the administrative record  
            shall be resolved by the superior court, as specified.

          44)Requires, within 10 days of the Governor certifying an  
            environmental leadership development project, the lead agency  
            to, at the applicant's expense, issue a public notice, as  
            specified, and requires the notice to be distributed by the  
            lead agency as required for specified public notices.








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          45)Finds a declares that a special law is necessary and that a  
            general law cannot be made applicable because of the unique  
            need for the development of an entertainment and sports center  
            project in the City of Sacramento in an expeditious manner.
           
          FISCAL EFFECT  :   Unknown

           COMMENTS  :   

          1)This bill provides relief from injunction during the  
            construction phase of the Sacramento Arena project (new Kings  
            venue), except in cases of imminent threat to the public  
            health or safety, or in cases where there are unforeseen  
            historical, archaeological or ecological issues or Native  
            American artifacts.  The bill makes a number of other changes  
            in order to expedite the project to make NBA timelines for a  
            new arena.

            According to the author, the bill has a broad coalition of  
            support. Requested by the Kings and the City of Sacramento, it  
            has the bipartisan support of the Sacramento delegation, both  
            republican and democrat.  It  is also supported by Mayor Kevin  
            Johnson, civic groups, organized labor, the City of  
            Sacramento, the Counties of Sacramento and Yolo, and cities in  
            the region, from West Sacramento to as far away as  
            Placerville, since the arena and surrounding development will  
            have regional economic benefits.

            Additionally the author notes that the arena alone will create  
            approximately 4,000 high wage construction jobs, millions of  
            dollars in annual revenue for the Sacramento region, and  
            billions of dollars in economic activity for the first 30  
            years. 

            According to the author, he proposal is needed "to ensure the  
            Kings can break ground and start building the new arena by the  
            fall of 2014 in accordance with the commitments made to the  
            NBA to have a new facility built and ready to open in October  
            2016.  Senator Steinberg and Mayor Johnson very openly offered  
            to consider this type of approach when they were fighting to  
            keep the NBA from moving the Kings to Seattle last spring." 
                         
          2)In 2011, AB 900 and SB 292 (Padilla), Chapter 353, Statutes of  
            2011, established expedited judicial review procedures for a  








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            limited number of projects.  For AB 900, it was large-scale  
            projects meeting extraordinary environmental standards and  
            providing significant jobs and investment.  For SB 292, it was  
            a proposed downtown Los Angeles football stadium and  
            convention center project achieving specified traffic and air  
            quality mitigations.  For these eligible projects, the bills  
            provided for original jurisdiction by the Court of Appeal and  
            a compressed schedule requiring the court to render a decision  
            on any lawsuit within 175 days.  This promised to reduce the  
            existing judicial review timeline by 100 days or more, while  
            creating new burdens for the courts and litigants to meet the  
            compressed schedule.  AB 900's provision granting original  
            jurisdiction to the Court of Appeal was invalidated earlier  
            this year by a decision in the Alameda Superior Court in  
            Planning and Conservation League v. State of California.  The  
            stadium project subject to SB 292 has not proceeded.

            This bill would establish special CEQA procedures modeled on  
            SB 292 for the proposed Sacramento Kings arena project, as  
            well as revise and extend AB 900

           3)AS PROPOSED TO BE AMENDED.  The author is offering amendments  
            to the September 6th version of the bill, to be adopted in  
            this Committee, that address the following issues:

             a)   Within the definition of "downtown arena" provide that  
               the arena will be certified LEED Gold within one year of  
               the first NBA season and will minimize traffic and air  
               quality impacts through project design or mitigation  
               measures that will do all of the following:

               i)     Reduce to at least zero the net GHG emissions from  
                 private automobile trips to the arena as compared to the  
                 baseline (existing arena) as verified by the Sacramento  
                 Air Quality Management District;

               ii)    Achieve per attendee reduction in GHG emissions from  
                 automobiles and light trucks, compared to the existing  
                 arena during the 2012-13 NBA season, that will exceed the  
                 GHG emission reduction targets for 2020 and 2035 adopted  
                 for the Sacramento region pursuant to SB 375; and,

               iii)   Achieve and maintain VMT per attendee for NBA events  
                 that is no more than 85% of the baseline.









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             b)   Require the lead agency to implement, to the extent  
               feasible, the following mitigation measures as a condition  
               of project approval:

               i)     Temporarily expand the capacity of a public transit  
                 line, as needed, to serve downtown arena events;

               ii)    Providing private charter buses or similar services,  
                 as needed, to serve downtown arena events; and,

               iii)   Paying its fair share of the cost of measures that  
                 expand the capacity of a public fixed or light rail  
                 station that is used by spectators attending downtown  
                 arena events.

             c)   Strike out the additional limitations on court remedies  
               (page 11, lines 19-30).

             d)   Limit the application of the eminent domain provisions  
               to 545 and 600 K Street and surrounding publicly accessible  
               areas and rights of way within 200 feet of 600 K street  
               (the Men's Macy's property), and provide that the provision  
               shall not apply to any other eminent domain actions  
               prosecuted by the City of Sacramento or to eminent domain  
               actions based on a finding of blight.

          4)This bill was heard in the Natural Resources Committee on  
            September 11, 2013, and passed on an 8-0 vote.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Unknown
           
            Opposition 
           
          Unknown

           Analysis Prepared by  :    Debbie Michel / L. GOV. / (916)  
          319-3958 












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