BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          SB 811 (Lara) - State Highway Route 710 expansion project:  
          mitigation.
          
          Amended: May 6, 2013            Policy Vote: T&H 8-0
          Urgency: No                     Mandate: No
          Hearing Date: May 20, 2013      Consultant: Mark McKenzie
          
          This bill meets the criteria for referral to the Suspense File. 

          
          Bill Summary: SB 811 would require the final environmental  
          document for the I-710 expansion project to include an  
          investment in mitigation measures for the affected communities  
          of at least 10 percent of the total project costs.

          Fiscal Impact: 
              Estimated increased project costs, potentially in the range  
              of $250 million, for increased mitigation investments in the  
              I-710 corridor beyond what would otherwise be provided  
              (State Highway Account, Bond Funds).

              Minor costs to Caltrans to report to the Legislature on the  
              identified mitigation measures to be included in the I-710  
              expansion project.

          Background: The California Environmental Quality Act (CEQA)  
          requires lead agencies, such as the Department of Transportation  
          (Caltrans), to prepare an environmental impact report (EIR) for  
          each project it undertakes, unless the project is exempt from  
          CEQA requirements.  The lead agency must develop the EIR before  
          it can move forward with a project, which is done through an  
          iterative public engagement process.  Generally, an EIR  
          describes the proposed project, evaluates a range of reasonable  
          alternatives to the project, identifies and analyzes all  
          expected significant environmental impacts, and determines  
          feasible mitigation measures to reduce those impacts.  At the  
          end of the process, the lead agency formally approves the  
          environmental review.  The public has an opportunity to  
          challenge an EIR in court if it feels the process was inadequate  
          or the lead agency did not consider appropriate alternatives.   
          In this way, CEQA is intended to ensure better environmental  
          outcomes than otherwise would occur through project development.








          SB 811 (Lara)
          Page 1



          The Long Beach Freeway (I-710) is a vital transportation artery,  
          linking the ports of Long Beach and Los Angeles to Southern  
          California and beyond.  An essential component of the regional,  
          statewide, and national transportation system, it serves both  
          passenger and goods movement traffic that travels from the ports  
          to inland railroad facilities.  The existing I-710 Corridor has  
          elevated levels of health risks related to high levels of diesel  
          particulate emissions, traffic congestion, high truck volumes,  
          high accident rates, and many design features in need of  
          modernization (the original freeway was built in the 1950s and  
          1960s).  Caltrans, Los Angeles County Metropolitan  
          Transportation Authority (LACMTA), and other regional partners  
          are preparing an EIR to analyze the range of possible  
          improvement alternatives to the I-710 corridor.  The project  
          study area extends for 18 miles from the waterfront ports to the  
          Pomona Freeway, and encompasses 15 cities and unincorporated  
          areas adjacent to the freeway.  

          Caltrans indicates that the options currently under  
          consideration for the I-710 corridor project will cost between  
          $3 billion and $5 billion, and staff notes that the most likely  
          options are in the higher range.  The project is in the early  
          stages of the environmental review process; Caltrans expects a  
          second draft EIR to be released sometime next year, and approval  
          of a final environmental document is at least four or five years  
          away.  Construction is not anticipated to begin until at least  
          2020.

          Proposed Law: SB 811 would require the final environmental  
          document approved by Caltrans for the I-710 project to include  
          an investment in mitigation measures for the affected  
          communities, including the Los Angeles River, of at least ten  
          percent of the total project costs. Caltrans would be required  
          to consult with interested community organizations and consider  
          alternatives to address the air quality, public health, and  
          mobility impacts the project will have on neighboring  
          communities.  The bill would also require Caltrans to submit a  
          report to the Legislature at least 90 days prior to release of  
          the final environmental document that describes the identified  
          mitigation measures.

          Staff Comments: This bill is intended to ensure that mitigation  
          measures identified in the final environmental document for the  








          SB 811 (Lara)
          Page 2


          I-710 project not only provide for mitigation of the impacts of  
          the proposed project, but also address the freeway's current  
          impacts on communities in the project area that have suffered  
          from adverse public health and environmental impacts for years.   


          Staff notes that requiring the mitigation investments to be at  
          least ten percent of the total project costs will result in  
          substantial increased state costs associated with the I-710  
          project.  In addition, there is no known precedent of  
          identifying a specific percentage of mitigation investments  
          related to a project in statute.  Mitigation is provided as part  
          of the environmental process under current law and there is no  
          way to accurately determine a specific percentage of project  
          costs as mitigation in advance since there is no direct  
          correlation between project costs and the impacts of a project.   
          While somewhat speculative at this early stage, Caltrans is  
          expected to perform approximately $250 million in mitigation  
          measures associated with the I-710 project.  If project costs  
          are $5 billion, this bill would require mitigation investments  
          of at least $500 million, an increase of at least $250 million  
          beyond the currently expected mitigation costs.

          Recommended Amendments: The bill includes codified legislative  
          findings and declarations.  Staff recommends that page 3, lines  
          3-11 be removed and placed in an uncodified stand-alone section,  
          for purposes of clarity in the codes.