BILL ANALYSIS Ó SB 743 Page 1 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 SB 743 Page 2 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, SB 743 Page 3 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. SB 743 Page 4 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 SB 743 Page 5 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 SB 743 Page 6 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 SB 743 Page 7 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. SB 743 Page 8 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 SB 743 Page 9 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. SB 743 Page 10 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 SB 743 Page 11 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. SB 743 Page 12 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 SB 743 Page 13