BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 743
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          SENATE THIRD READING
          SB 743 (Steinberg)
          As Amended  September 12, 2013
          Majority vote 

           SENATE VOTE  :Vote not relevant  
           
           NATURAL RESOURCES   8-0         LOCAL GOVERNMENT    6-1         
           
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          |Ayes:|Chesbro, Grove, Bigelow,  |Ayes:|Achadjian, Alejo,         |
          |     |Garcia, Muratsuchi,       |     |Bradford, Gordon, Mullin, |
          |     |Skinner, Stone, Williams  |     |Rendon                    |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Levine                    |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 

           SUMMARY  :

          1)Establishes special administrative and judicial review  
            procedures under the California Environmental Quality Act  
            (CEQA) for the City of Sacramento's (City) proposed  
            entertainment and sports center project (i.e., Sacramento  
            Kings arena) intended to decrease potential impediments to  
            construction of the project.

          2)Revises a previous CEQA streamlining bill (AB 900 (Buchanan),  
            Chapter 354, Statutes of 2011) to correct legal defects and  
            extend its operation.

          3)Requires the Office of Planning and Research (OPR) to propose  
            revisions to the CEQA Guidelines to establish new criteria for  
            determining the significance of transportation impacts of  
            projects.

          4)Establishes a new CEQA exemption for residential, mixed-use,  
            and "employment center" projects, as defined, located within  
            "transit priority areas," as defined, if the project is  
            consistent with an adopted specific plan and specified  
            elements of a sustainable communities strategy or alternative  
            planning strategy adopted pursuant to SB 375 (Steinberg),  
            Chapter 728, Statutes of 2008.








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          Specifically, this bill  :   

          1)Establishes findings related to the arena project.

          2)Establishes definitions for purposes of the bill, including:

             a)   "Downtown arena" means an arena that will be certified  
               Leadership in Energy and Environmental Design (LEED) Gold  
               within one year of the first National Basketball  
               Association (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 greenhouse gas (GHG)  
                 emissions from private automobile trips to the arena as  
                 compared to the baseline (existing arena), as verified by  
                 the Sacramento Metropolitan Air Quality Management  
                 District.

               ii)    Achieve per attendee reduction in GHG emissions from  
                 automobiles and light trucks, compared to existing arena  
                 during 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.

               iii)   Achieve and maintain vehicle-miles traveled per  
                 attendee for NBA events that is no more than 85% of the  
                 baseline (i.e., 15% less than existing arena).

             b)   "Entertainment and sports center project" means a  
               project that substantially conforms to the project  
               description set forth in the City's notice of preparation  
               (NOP).  (According to the City's NOP, the proposed project  
               would be located on the Downtown Plaza property and on  
               other property that may transferred to applicant and would  
               include demolition of portions of the existing buildings,  
               the construction and operation of an approximately 18,500  
               seat arena, and up to 1,500,000 square feet of office,  
               retail, housing and hotel uses at the project site.  The  
               arena would serve as the home for the Sacramento Kings, as  
               well as a venue for other sports, entertainment, civic and  
               cultural events.)









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          3)Authorizes the City to prosecute an eminent domain action  
            associated with the downtown arena prior to completing CEQA  
            review for the project.  Limits the application of the eminent  
            domain provision to 545 and 600 K Street and surrounding  
            publicly accessible areas and rights-of-way within 200 feet of  
            600 K Street (i.e., Men's Macy's property), and provides 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)Establishes special procedures applicable to an action or  
            proceeding brought to attack, review, set aside, void, or  
            annul the certification of the EIR for the project or the  
            granting of any project approvals, including requiring  
            Judicial Council to adopt a rule of court, by July 1, 2014,  
            requiring lawsuits and any appeals to be resolved, to the  
            extent feasible, within 270 days of certification of the  
            record of proceedings (which must occur within five days of  
            the lead agency filing the notice of determination on the  
            project).

          5)Establishes special procedures for public participation in  
            CEQA review of the project:

             a)   Requires the project EIR to include a specified notice  
               that the EIR is subject to the provisions of the section  
               added by this bill.

             b)   Requires the lead agency to conduct an informational  
               workshop within 10 days of release of the Draft EIR and  
               hold a public hearing within 10 days before close of the  
               public comment period.

             c)   Requires the lead agency and applicant to participate in  
               nonbinding mediation with any party who submitted comments  
               on the Draft EIR and requested mediation within five days  
               of the close of the public comment period, with the cost to  
               be paid by the applicant.  Requires mediation to end within  
               35 days of the close of the public comment period.

             d)   Requires the lead agency to adopt any measures agreed  
               upon in mediation.  Prohibits a commenter from raising an  
               issue addressed by that measure in a lawsuit.









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             e)   Permits the lead agency to ignore written comments  
               submitted after the close of the public comment period,  
               with specified exceptions for materials addressing new  
               information released after the close of the public comment  
               period.

             f)   Requires the lead agency to provide all EIR documents  
               and comments in an electronic format (with the exception of  
               certain copyright-protected documents), certify the record  
               within five days of filing the notice of determination,  
               provide the record to a party upon written request, and  
               provide the record to the superior court within 10 days of  
               the filing of a petition for review.

          6)Requires the lead agency, as a condition of approval of the  
            project, to require the applicant to implement mitigation  
            measures required by CEQA by the end of the first NBA season  
            during which an NBA team has played at the arena.  

          7)Requires the lead agency to consider, and implement if  
            feasible and necessary to achieve the GHG and traffic  
            reduction objectives specified in the bill, the following  
            mitigation measures as a condition of project approval:

             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.

             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.

          8)Requires the lead agency to place highest priority on feasible  
            emission reduction measures on the arena site and downtown  
            area.  Requires use of offset credits only after feasible  
            local measures have been implemented, and requires that the  
            applicant 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.

          9)Prohibits, generally, a court, in granting relief, from  








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            staying or enjoining the construction or operation of the  
            arena and provides that a court may only enjoin those specific  
            activities associated with the arena that present an imminent  
            threat to public health and safety or that materially,  
            permanently, and adversely affect unforeseen important Native  
            American artifacts or unforeseen important historical,  
            archaeological, or ecological values.

          10)Provides that the provisions of the bill related to the arena  
            (Section 2) are severable, and do not apply if the applicant  
            fails to notify the lead agency prior to release of the Draft  
            EIR that the applicant is electing to proceed pursuant to the  
            provisions of the bill.

          11)Revises AB 900 (Buchanan), which establishes procedures for  
            expedited judicial review by the Court of Appeal for  
            "environmental leadership" projects certified by the Governor  
            and meeting specified conditions, including LEED  
            silver-certified infill site projects, clean renewable energy  
            projects, and clean energy manufacturing projects, as follows:

             a)   Repeals provision giving original jurisdiction to the  
               Court of Appeal and requiring the court to issue its  
               decision within 175 days.

             b)   Instead requires Judicial Council to adopt a rule of  
               court, by July 1, 2014, requiring lawsuits and any appeals  
               to be resolved within 270 days.

             c)   Defines "prevailing wages" for purposes of AB 900's  
               requirement that environmental leadership projects pay  
               prevailing wages.

             d)   Extends the deadline for certification of projects under  
               AB 900 from June 1, 2014, to January 1, 2016.

             e)   Extends AB 900's sunset from January 1, 2015, to January  
               1, 2017.

          12)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  








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            authorizes 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.

          13)Requires 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 (i.e., rail transit  
               station, a ferry terminal served by either a bus or rail  
               transit service, or the intersection of two or more major  
               bus routes) 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)   Defines "employment center project" as a project located  
               on property zoned for commercial uses, with a floor area  
               ratio of no less than 0.75, located within one-half mile of  
               a major transit stop or high-quality transit corridor  
               included in a regional transportation plan.

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

             d)   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.

             e)   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. 









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             f)   Provides that automobile delay, as described solely by  
               LOS or similar measures of capacity or congestion, shall  
               not support a finding of significance pursuant to CEQA,   
                except in locations specifically identified in the  
               guidelines, if any, once these guidelines are certified by  
               the Secretary of the Natural Resources Agency.

             g)   Provides that aesthetic and parking impacts of  
               residential, mixed-use, and employment center projects on  
               infill sites 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.  

          14)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.

          15)Establishes a new CEQA exemption for a residential,  
            mixed-use, and employment center project, including any  
            subdivision or zoning change, that meets the following  
            conditions:

             a)   The project is located within a transit priority area.

             b)   The project is undertaken to implement and is consistent  
               with a specific plan for which an EIR has been certified.

             c)   The project is consistent with the general use  
               designation, density, building intensity, and applicable  
               policies specified for the project area in either a  
               sustainable communities strategy or alternative planning  
               strategy adopted pursuant to SB 375.

             d)   Requires further environmental review only if any of the  
               following events have occurred:

               i)     Substantial changes are proposed in the project  
                 which will require major revisions of the EIR.

               ii)    Substantial changes occur with respect to the  
                 circumstances under which the project is being undertaken  
                 which will require major revisions in the EIR.








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               iii)   New information, which was not known and could not  
                 have been known at the time the EIR was certified as  
                 complete, becomes available.

           FISCAL EFFECT  :  Unknown

           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.

          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.  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.

          CEQA actions taken by local public agencies can be challenged in  
          Superior Court once the agency approves or determines to carry  
          out the project.  CEQA appeals are subject to unusually short  
          statutes of limitations.  Under current law, court challenges of  
          CEQA decisions generally must be filed within 30-35 days,  
          depending on the type of decision.  The courts are required to  
          give CEQA actions preference over all other civil actions.  The  
          petitioner must request a hearing within 90 days of filing the  
          petition and, generally, briefing must be completed within 90  
          days of the request for hearing.  There is no deadline specified  
          for the court to render a decision.

          In 2011, AB 900 and SB 292 (Padilla), Chapter 353, Statutes of  
          2011, established expedited judicial review procedures for a  
          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  








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          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.  The bill would also authorize OPR to  
          update the standard for analyzing transportation impacts of  
          projects to replace LOS in transit priority areas and as an  
          alternative to LOS in locations outside of transit priority  
          areas, to the extent authorized by the Congestion Management Act  
          [these provisions are consistent with provisions in SB 731  
          (Steinberg)].  Finally, today's amendments add a new CEQA  
          exemption for mixed-use and employment center projects in  
          transit priority areas.


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


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