BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Kevin de León, Chair SB 754 (Evans) - California Environmental Quality Act. Amended: May 6, 2013 Policy Vote: EQ 6-2 Urgency: No Mandate: Yes Hearing Date: May 23, 2013 Consultant: Marie Liu SUSPENSE FILE. Bill Summary: SB 754 would require CEQA documents to be prepared either by the lead agency or consultants under the direct contract and supervision of the lead agency, remove the cap on the costs of mitigation measures related to archaeological resources, prohibit the tiering-off of an EIR more than seven years old, and create a new private right of action. Fiscal Impact: Unknown, possibly in the hundreds of thousands to millions of dollars annually, from special and General Funds for the development of a new EIR where a previous EIR was more than seven years old. Background: CEQA provides a process for evaluating the environmental effects of a project. Under CEQA, lead agencies with the principal responsibility for carrying out or approving a proposed discretionary project are required to prepare a negative declaration, mitigated negative declaration, or environmental impact report (EIR) for the project, unless the project is exempt. The CEQA documents must be prepared directly, or under contract to, the lead agency. The purpose of CEQA is to identify significant environmental impacts, including impacts on archaeological resources, and then mitigate those impacts to the extent feasible. Existing law caps the maximum dollar amount of mitigation that a project proponent can be required to do in order to mitigate impacts to archaeological resources. Proposed Law: This bill would make various changes to CEQA. Specifically, this bill would: Require that if a public agency contracts out the preparation of a draft EIR, EIR, negative declaration, or mitigated negative declaration, it may only be with an "environmental consultant" under the direct contract and supervision of the SB 754 (Evans) Page 1 lead agency. Remove the cap on the costs of required mitigations for impacts to archaeological resources. Prohibits a later project or infill project from tiering off a previous EIR if that EIR is more than seven years old. Create a new private right of action or proceeding to enforce the implementation of mitigation measures should the project applicant fail to implement those measures. Staff Comments: This bill may increase the number of EIRs that may need to be prepared because an older EIR, which could have been tiered off from because it meets the existing requirements for validity, is older than seven years. There would be costs to the state under these provisions if the state is the project proponent or the state is the lead or responsible agency and its activities are not fully recovered by a fee paid by the project proponent. Given that the cost of the new EIR would greatly depend on the project specifics, staff estimates that this portion of the bill may cause ten to hundreds of thousands dollars to millions of dollars for new CEQA analyses annually. Judicial Council does not anticipate an impact on the courts should the new private right of action under this bill be signed into law. This bill clarifies that if a public agency contracts out to prepare a draft EIR, EIR, negative declaration, or mitigated negative declaration, it must be with an "environmental consultant." Staff notes that the term "environmental consultant" is not defined in the bill. Staff notes that this bill contains findings and declarations language regarding the Legislature's intent to provide limited modifications to improve CEQA function. The findings list several desired modifications, such as requiring translation of initial notices and clarifying the baseline from which to assess environmental impacts, which are not contained in this bill. It is unclear whether the author's intent is to address these issues at a later date or whether this is language is unnecessary. SB 754 (Evans) Page 2