BILL ANALYSIS Ó SENATE COMMITTEE ON ENVIRONMENTAL QUALITY Senator Wieckowski, Chair 2015 - 2016 Regular Bill No: AB 291 ----------------------------------------------------------------- |Author: |Medina | ----------------------------------------------------------------- |-----------+-----------------------+-------------+----------------| |Version: |6/10/2015 |Hearing | 7/1/2015 | | | |Date: | | |-----------+-----------------------+-------------+----------------| |Urgency: |No |Fiscal: |Yes | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant:|Joanne Roy | | | | ----------------------------------------------------------------- SUBJECT: California Environmental Quality Act: local agencies: notice of determination: water. ANALYSIS: Existing law, under the California Environmental Quality Act (CEQA): 1)Requires lead agencies with the principal responsibility for carrying out or approving a proposed discretionary project to prepare a negative declaration, mitigated declaration, or environmental impact report (EIR) for this action, unless the project is exempt from CEQA (CEQA includes various statutory exemptions, as well as categorical exemptions in the CEQA Guidelines). (Public Resources Code (PRC) §21000 et seq.). 2)When a project is approved or carried out by a local agency, requires the local agency to file a notice of approval or determination (NOD) within five working days after the approval or determination becomes final, with the county clerk of each county in which the project will be located. (PRC §21152). a) Requires the following to be included in an NOD (PRC §21152(a)): i) Identification of the project applicant, indication whether the project will have a significant effect on the environment; and, AB 291 (Medina) Page 2 of ? ii) Statement on whether an EIR has been prepared. iii) If an EIR has been prepared, also inclusion of certification that the final EIR, along with comments and responses, is available to the public. b) If a project has been determined not to be subject to CEQA and the local agency approves or determines to carry out the project, authorizes the local agency or project applicant to file a notice of exemption (NOE) with the county clerk of each county in which the project will be located. (PRC §21152(b)). c) Requires the notice to be (PRC §21152(c)): i) Available for public inspection; ii) Posted within 24 hours of receipt of the county clerk; and, iii) Remain posted for 30 days. 3)If an NOD is not filed, requires legal challenges under CEQA begin within 180 days from the date of the public agency's decision to carry out or approve the project. (PRC §21167(a)). 4)If an NOD is filed, legal challenges under CEQA begin 30 days from the date of the NOD filing. (PRC §21167(b), (c), and (e)). This bill: 1) Establishes an alternative and optional procedure for filing an NOD for a local agency water project relating to water rights; conjunctive use of surface water and groundwater supplies; or, change in the point of discharge, place of use, or purpose of use. 2) For the alternative NOD filing procedure, provides that the local agency "may take all of the following actions": a) File the NOD in the form required in current law with the county clerk of the county in which the local agency's principal office is located. AB 291 (Medina) Page 3 of ? b) Make payment of the Department of Fish and Wildlife (DFW) filing fee, pursuant to Fish and Game Code (FGC) §711.4 to the county clerk of the county in which the local agency's principal office is located. c) File the NOD with the Office of Planning and Research (OPR) without further payment to DFW. d) Transmit a copy of the NOD, which must state when the NOD was filed with OPR, to the county clerk of each county in which the project will be located in a specified manner. 3) Requires the county clerk receiving the NOD to comply with posting requirements as specified in current law, such as posting the NOD within 24 hours of receipt for a period of 30 days. 4) Requires all NODs filed with the Office of Planning and Research (OPR) under this alternative filing procedure to be available for public inspection at OPR and requires a list of those NODs be posted on a weekly basis in OPR for 30 days each. 5) Prohibits a county clerk from requiring an original NOD, any information regarding the filing of the NOD with OPR other than the date on which the NOD was filed with OPR, or any additional information from the local agency. 6) Authorizes a county to charge a $75 fee for handling and posting the NOD. 7) Requires the statute of limitations for filing a lawsuit, regarding a project subject to the alternative NOD filing process, begin on the date that the NOD is filed with OPR. Background 1) CEQA: Environmental review process. CEQA provides a process for evaluating the environmental effects of a project, and includes statutory exemptions as well as categorical exemptions in the CEQA guidelines. If a project is not exempt from CEQA, an initial study is prepared to determine whether a project may have a significant effect on the AB 291 (Medina) Page 4 of ? 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, then 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. Prior to approving any project that has received an environmental review, an agency must make certain findings. 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. If a mitigation measure would cause one or more significant effects in addition to those that would be caused by the proposed project, the effects of the mitigation measure must be discussed but in less detail than the significant effects of the proposed project. 2) What is analyzed in an environmental review? Pursuant to CEQA, an environmental review analyzing the significant direct and indirect environmental impacts of a proposed project, may include water quality, surface and subsurface hydrology, land use and agricultural resources, transportation and circulation, air quality and greenhouse gas emissions, terrestrial and aquatic biological resources, aesthetics, geology and soils, recreation, public services and utilities such as water supply and wastewater disposal, cultural resources, and tribal cultural resources. The analysis must also evaluate the cumulative impacts of any past, present, and reasonably foreseeable projects/activities within study areas that are applicable to the resources being evaluated. A study area for a proposed project must not be limited to the footprint of the project because many environmental impacts of a development extend beyond the identified project boundary. Also, CEQA stipulates that the environmental impacts must be measured against existing physical conditions within the project area, not future, AB 291 (Medina) Page 5 of ? allowable conditions. 3) What is an NOD and how is it filed? An NOD is a brief notice filed by a public agency after it approves or determines to carry out a project. The NOD must include the project name, description, location, lead agency's name, and the date of project approval. For an EIR, it also must summarize the project's significant impacts and state whether mitigation measures were made as conditions of approval, findings were prepared, a mitigation monitoring or reporting program was adopted, and a statement of overriding considerations was adopted. Within five working days of project approval, if the lead agency is a local agency, the NOD must be filed with the county clerk (or multiple county clerks if the project is located in more than one county); and, if any state agency discretionary approval is required, with OPR. The county clerk must post the NOD within 24 hours of receipt for 30 days during regular business hours and retained in the agency files for at least 12 months. The notice must also be sent to anyone previously requesting notice. After the 30 days of posting, the clerk must return the notice to the local agency with a notation of the period it was posted. 4) Statute of limitations. According to the Judicial Council of California, "A statute of limitations is a deadline for filing a lawsuit. Most lawsuits MUST be filed within a certain amount of time. In general, once the statute of limitations on a case 'runs out,' the legal claim is not valid any longer." Depending on the type of lawsuit, the time period for a statute of limitations varies, e.g. injury to a person is two years from the date of injury, contracts in writing is four years from the date the contract was broken, or latent defects/unknown problems in real property improvements is 10 years from the date construction was mostly finished. Under CEQA, parties wishing to challenge agency approval of a project must seek court review within the following time periods: 30 days after an agency has filed an NOD (for either a negative declaration or an EIR). AB 291 (Medina) Page 6 of ? 35 days after an agency has filed an NOE. 180 days after an agency decides to carry out or approve a project; or 180 days from commencement of a project for those without a formal decision (when no NOE or NOD has been filed). The statute of limitations begins to run on the date on which the notice is actually posted and made available for public review. When an NOD or NOE is not filed, then the statute of limitations for filing a lawsuit to attack, review, set aside, void, or annul acts or decisions of a public agency on grounds of noncompliance with CEQA is 180 days from the date of the agency's decision to approve or carry out a project. Comments 1) Purpose of Bill. According to the author, "The current process provides little public notice outside of an agency's home county, where the public presumably is particularly aware of an agency's activities. Additionally, it creates significant confusion for local agencies filing the notices because different county clerks have different requirements for posting notices. The current process undermines CEQA's policy for ensuring prompt resolution of disputes about environmental reviews because non-compliance with CEQA's requirements for technical errors in posting notices can result in a much longer statute of limitations applying to such a dispute." 2) Filing of NOD triggers shorter statute of limitations. If an NOD is not filed, the statute of limitations period is 180 days after the public agency's decision to carry out or approve the project. When a public agency files an NOD in compliance with specified requirements, the statute of limitations for CEQA legal challenges related to negative declarations and EIRs is 30 days from the date of filing the NOD. Thus, the filing of an NOD significantly reduces the window of time in which a lawsuit may be filed. 3) Concerns with this bill's effect on statute of limitations. As noted above, the statute of limitations for filing a lawsuit regarding a negative declaration or EIR is 30 days after an agency has filed an NOD. When a project approved by a local agency will be located in more than one county, AB 291 (Medina) Page 7 of ? failure to file the notice in each county may result in a denial of the shorter statute of limitations. Although no court has ruled on this issue, this is likely the result considering the strict interpretation of the statute by the courts. This bill requires the statute of limitations, for a local agency's water project subject to this bill, to begin on the date that the NOD is filed with OPR. The bill provides that the local agency has up to five working days after a local agency has approved or determined to carry out a water project to file the NOD with OPR and the county clerk's office in each county the project is located. Based on the requirements of this bill, it is possible that the public may not be given the full 30 days to review an NOD. For example, a local agency files the NOD with OPR on Day 1 (July 1, Wednesday), but files the NOD with Counties A, B, and C on Day 5 (Tuesday, July 7th, the next week). The counties have an additional 24 hours from the time of receipt to post the notice, and the NOD is posted in those counties on Day 6 (Wednesday, July 8th). People who rely on the NOD postings at the county clerk's office will not have the opportunity to see the NOD until a full week after the clock has already started ticking on the statute of limitations; approximately 25% of the statute of limitations has been automatically shaved off before they receive notice to make a claim. Although this process provides certainty to the lead agency, it does not provide fairness to the public. a) Fundamental Fairness. As shown in the example above, the running of the statute of limitations in this bill can begin a substantial amount of time ahead of when a person has been given actual notice at the county level. Is it fundamentally fair that the statute of limitations would begin days, if not a full week, before a person has had the chance to look at the NOD in a county clerk's office? b) Potentially limits public disclosure and participation. In Committee for Green Foothillls v. Santa Clara County Bd. Of Supervisors (2010) 48 Cal.4th 32 at page 43, the California Supreme Court states that NODs "alert the public about environmental decisions?.Public notification AB 291 (Medina) Page 8 of ? serves the public's right to be informed in such a way that it can intelligently weigh the environmental consequences of any contemplated action and have an appropriate voice in the formulation of any decision." In addition, the first appellate court in Latinos Unidos de Napa v. City of Napa (2011) (196 Cal.App. 4th 1154) states, "Predictability and certainty are the twin guiding virtues that enable people to comply with legal requirements?Busy, concerned persons in a community are entitled to a full 30 days of posting in a public place?" Although this bill requires a county to post an NOD for a full 30 days, this bill may reduce the amount of time for people, who are relying on notice at the county level, to prepare and initiate a challenge to a lead agency's environmental review. Litigation is the only enforcement mechanism for CEQA - is it prudent to essentially allow a local agency to shorten the time for which the public is entitled to notice a claim? 4) Multi-county projects are not limited to water projects. Sponsors of the bill state that water projects are unique for local agency projects in that they can span multiple counties. However, it does not seem all that uncommon for non-water related projects to be located in more than one county. For example, several local air districts' jurisdictions and projects may overlay multiple counties, such as San Joaquin Valley Air Pollution Control District, which is made up of eight counties, and the Bay Area Air Quality Management District, which is made up of nine counties. Many multi-county special districts and projects exist in the Bay Area alone, such as: Bay Area Rapid Transit, Alameda Contra Costa Transit District, East Bay Regional Park District, Midpeninsula Open Space District. Also, energy/utility projects may span multiple counties with utility- or pipelines. Even a housing development project may be located in multiple counties such as when it crosses county lines for road access. AB 291 (Medina) Page 9 of ? Considering that water projects are not unique in spanning across multiple counties, a question arises as to the need for creating special NOD filing requirements in statute to accommodate them. 5) NOD posting requirements: Beyond one's control? NODs must remain posted for the full 30 days; premature removal of a posted notice, even if by a few hours, will result in application of the 180-day statute of limitations. Sponsors of the bill contend that it is unfair for a local lead agency, on a water project covering multiple counties, to be held accountable should a county clerk located far away err in the NOD posting requirements, such as not keeping an NOD posted for the entire 30 days. However, they do not cite any incidences or cases in which a water agency has had such an issue or been subject to litigation because of violations of NOD requirements. If a lead agency is concerned that a county may fail to post the NOD for the entire 30-day period, then it would likely behoove the lead agency to communicate with the county clerk's office to make sure the county clerk's office is aware of this requirement. 6) How pressing of an issue is this? This bill prohibits a county from requiring an original notice, any information regarding the filing of the NOD with OPR other than the date on which the notice was filed with OPR, or any additional information from the local agency other than a filing fee for the county or DFW. Sponsors state that filing an NOD in multiple counties can be a "logistical nightmare." They state that confusion may arise because each county has its own set of requirements for filing, e.g. number of copies, original copies, or the environmental review document must be included. However, is this a policy issue that needs to be addressed in statute? Or is it more of a matter of improving preparation and organization on the part of the local agency when filing an NOD? There are a finite number of counties to post an NOD, a maximum of 58; and it is unlikely that any county clerk office changes its filing requirements often. In AB 291 (Medina) Page 10 of ? addition, filing an NOD comes at the end of the environmental review process, so there is likely a substantial amount of time for the lead agency to plan and prepare for each county's filing requirements. In fact, the sponsors produced a chart showing the filing requirements for each county. Perhaps a more practical solution would be for a local agency to have such a tool so that they may more readily meet the filing requirements of each county. 7) Streamlining for one may be additional work and confusion for others. This bill creates a separate set of rules for NODs for specified types of water projects. CEQA's NOD filing requirements in PRC §21152 cover all projects for local agencies. Counties receive and post NODs for a variety of projects in addition to water projects. Rather than have one set of statutory rules for counties to follow regarding all NOD filings, this bill would require counties to keep track and abide by two different sets of rules based on the type of project. Why should a county be obligated to follow a different set of rules for filing and posting a notice simply based on the type of project? Also, does this bill create more opportunities for litigation should a county fail to follow the requirements of this alternative NOD filing procedure? If the concern is that counties may not be executing the requirements of filing and posting an NOD correctly, then does it make sense to mandate additional and different requirements for a special subset of NODs for the counties to abide in order to make things easier for one kind of local lead agency on specified types of projects? Does this bill create more room for error and more opportunity for litigation? 8) Ensuring the needs of the public are met. Counties throughout the state vary from one another and have different ways for meeting the needs of their communities. For example, some counties may be more technologically advanced than others; some counties may have more resources available than others; or, some counties' clerk offices may be more easily accessible than others. It seems prudent to allow the counties the flexibility to have their own reasonable requirements in addition to what is required in statute, such as the number of copies that must be submitted, to ensure AB 291 (Medina) Page 11 of ? that their communities have the information they need. Also, the sponsors believe this bill will address a concern they have regarding when a county clerk has posted the NOD or for how long the notice was posted. However, CEQA already provides the local agency with such information because the county clerk is required to return the notice to the local agency with a notation of the period it was posted. In addition, if a question arises about the posting during the 30-day requirement, it seems that this can be resolved through simple communication, e.g. call the county clerk's office. The issues trying to be resolved by this bill are more appropriately addressed at the implementation level rather than by amending the statute. 9) Filing fee set at $75. The purpose of a filing fee is to cover the cost of performing the service. This bill proposes to set a separate NOD filing fee a county may charge for this alternative process at $75. Pursuant to FGC §711.4(e), a county clerk may charge a processing fee of $50; and additional county fees may apply. They vary by county, but most counties charge approximately $50. For those counties in which it costs $50 to cover the transaction, is it appropriate to mandate a fee that could be potentially 50% higher than the actual cost? 10)Concerns with the language in the bill. a) Adding confusion to the code. By adding a new section in statute for special NOD filing requirements for certain types of water projects, this bill creates confusion in other sections of CEQA. Although the bill attempts to cover some of this in proposed §21152(d), the bill is not thorough - For example, proposed subdivision (d) is not clear that it only applies to a water project where notice has been provided pursuant to this section. Other sections that refer to §21152, such as §21167.6.5, for example, should refer to the proposed §21152.2. However, this bill does not amend other sections to reference proposed §21152.2. A question arises as to how someone using these other sections would know to look at §21152.2 without a cross-reference added to those sections. AB 291 (Medina) Page 12 of ? b) "May take all of the following actions." This bill states that in lieu of filing an NOD pursuant to existing law, a local agency carrying out a specified type of water project "may take all of the following actions" - does this mean that the agency is not required to take all of the actions but is authorized to pick and choose? It seems unlikely that such an interpretation is intended, but the language is unclear. 11)Notice requirements for one county but not all? This bill requires the local agency to file an NOD, with the county clerk of the county in which the local agency's principal office is located, in the manner mandated in PRC §21152(a), such as to indicate whether the project will have a significant effect on the environment and include certification that the final EIR, together with comments and responses, is available to the general public. However, this bill is silent as to whether PRC §21152(a) requirements apply to NOD filings in other counties. Is it the intent of this bill to allow a local agency to provide the public in counties, other than where the local agency's principal office is located, with different or less information? 12)Proposed OPR's list of NODs filed under alternative requirements. This bill requires all NODs filed with OPR under this alternative filing procedure to be available for public inspection and requires a list of those NODs be posted on a weekly basis in OPR for 30 days each. What is required to be included in the list? Why is such a list necessary? How does the posting of a list in Sacramento help people located elsewhere, such as Inyo or Humboldt Counties? Is this list meant to be available online? The language is unclear as to the purpose and requirements of this list. 13)Setting a bad precedent. There are likely thousands of projects subject to CEQA annually throughout the state. Lead agencies at the local level can be one of 58 counties, 482 cities, or approximately 2,300 special districts (according to the California Special Districts Association). CEQA is a statute that covers a wide range of projects and lead agencies, and the NOD filing is one step in several of the environmental review process. CEQA is a complex statute; AB 291 (Medina) Page 13 of ? adding special NOD filing requirements for one type of project and catering to one type of local lead agency, as this bill proposes, would seem to further complicate process. If special provisions for NOD filings are made for this scenario, then is it plausible that the Legislature should expect to see more proposals come forward to add separate provisions for various requirements tailored to individual wishes of other, various lead agencies? This bill sets a bad precedent. 14)Conclusion. As mentioned above, the sponsors of this bill do not cite any cases or incidences in which there has been issues concerning filing NODs for water projects located in multiple counties. Also, water projects are not unique in that other types of projects can be located in multiple counties as well. Sponsors' argument that filing NODs in multiple counties is a "logistical nightmare" seems more like an inconvenience that would be better resolved through simple preparation methods of a lead agency rather than legislation. Also, the Senate Environmental Quality Committee has been involved in several stakeholder working groups over the years and recently conducted a survey jointly with Senate Judiciary Committee to explore ways in which CEQA may be improved. Not once has the problem proposed to be addressed in this bill been raised in any of these efforts. This bill may do more harm than good. This bill may potentially shorten the time a person has notice to file a claim, and may limit transparency and public participation, which are two pillars of CEQA. This bill may create more work and confusion for counties. Lastly, this bill may create additional causes of action. If the intent of this bill is to provide certainty when the statute of limitations begins after a notice for a project is filed in multiple counties, and because it is imperative to provide the public the full 30 days to which it is entitled, the Committee may wish to consider striking the contents of the bill and replacing it with clarifying language in PRC §21167 stating that for a project carried out by a local AB 291 (Medina) Page 14 of ? agency that is located in more than one county, the commencement of the time period specified in subdivision (b), (c), (d), or (e) commences on the latest date in which a notice specified in (a) or (b) of Section 21152 has been accepted for filing by an office of the county clerk. SOURCE: Association of California Water Agencies McGeorge Law School Legislative and Public Policy Clinic SUPPORT: Association of Environmental Professionals California Council for Environmental and Economic Balance California Municipal Utilities Association California Special Districts Association Castaic Lake Water Agency City of Corona City of Sacramento Cucamonga Valley Water District East Bay Municipal Utility District Eastern Municipal Water District Mountain Counties Water Resources Association Municipal Water District of Orange County Northern California Water Association San Diego County Water Authority San Luis & Delta-Mendota Water Authority Santa Clara Valley Water District Sonoma County Water Agency Southern California Water Committee Stockton East Water District The Metropolitan Water District of Southern California Three Valleys Municipal Water District Valley Ag Water Coalition Walnut Valley Water District Western Canal Water District Yuba County Water Agency OPPOSITION: California League of Conservation Voters Center for Biological Diversity AB 291 (Medina) Page 15 of ? County of Inyo Board of Supervisors Foothill Conservancy Natural Resources Defense Council Planning and Conservation League Sierra Club California -- END --