BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1749


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          Date of Hearing:  March 14, 2016


                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES


                                 Das Williams, Chair


          AB 1749  
          (Mathis) - As Introduced February 2, 2016


          SUBJECT:  California Environmental Quality Act:  exemption:   
          recycled water pipelines


          SUMMARY:  Extends the sunset, from 2017 to 2022, of a California  
          Environmental Quality Act (CEQA) exemption for specified  
          recycled water projects approved during the current drought  
          state of emergency.


          EXISTING LAW:  


          1)Requires lead agencies with the principal responsibility for  
            carrying out or approving a proposed project to prepare a  
            negative declaration, mitigated negative declaration, or  
            environmental impact report (EIR) for this action, unless the  
            project is exempt from CEQA.

          2)Exempts recycled water projects to mitigate drought conditions  
            for which a state of emergency was proclaimed by the Governor  
            on January 17, 2014, if the project consists of construction  
            or expansion of recycled water pipeline and directly related  
            infrastructure within existing rights of way, and directly  
            related groundwater replenishment, if the project does not  
            affect wetlands or sensitive habitat, and where the  








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            construction impacts are fully mitigated consistent with  
            applicable law.  This exemption remains operative until the  
            current drought state of emergency has expired or until  
            January 1, 2017, whichever occurs first (SB 88, Chapter 27,  
            Statutes of 2015).

          3)Exempts a pipeline project less than one mile in length within  
            a public street or highway or any other public right-of-way  
            for the installation of a new pipeline or the maintenance,  
            repair, restoration, reconditioning, relocation, replacement,  
            removal, or demolition of an existing pipeline.  Excludes any  
            surface facility related to the operation of the underground  
            pipeline.

          4)Defines "recycled water" as water which, as a result of  
            treatment of waste, is suitable for a direct beneficial use or  
            a controlled use that would not otherwise occur and is  
            therefore considered a valuable resource.

          FISCAL EFFECT:  Unknown


          COMMENTS:


          1)Background.  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 the project would not have 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, the lead  
            agency must prepare an EIR.  


             Generally, an EIR must accurately describe the proposed  
            project, identify and analyze each significant environmental  








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            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 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.


            CEQA includes various statutory exemptions, as well as  
            categorical exemptions in the CEQA Guidelines.  In June 2015,  
            SB 88, a drought relief budget trailer bill, added the  
            exemption amended by this bill.  At the time, the project  
            cited as the reason for the exemption was a large water  
            recycling project proposed by the Santa Clara Valley Water  
            District consisting of multiple pipelines, groundwater  
            recharge ponds, injection wells, and related facilities.   
            According to the water district, the exemption has not been  
            used and the entire proposed project may not be eligible for  
            the exemption.  


           2)Author's statement:  


             SB 88 provided much needed assistance in the way of  
            establishing projects designed to mitigate the effects of the  
            current and future droughts.  However, the established  
            exemption date is not conducive to accomplishing the necessary  
            projects needed for a continuation of the drought emergency.   
            If the current sunset date arrives without change, then future  
            drought mitigation projects will not come to fruition due to  
            complex CEQA regulation.


          3)No evidence that CEQA is an unreasonable impediment to  
            recycled water projects.  A review of CEQA notices submitted  
            to the Office of Planning and Research (OPR) shows that  








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            recycled water projects have been routinely approved via  
            exemption or negative declaration.  This bill exempts pipeline  
            projects within existing rights of way.  All such projects are  
            exempt under current law if they are under one mile.  In  
            addition, categorical exemptions are available for  
            maintenance, replacement and reconstruction of existing public  
            utility facilities, involving negligible or no expansion of  
            capacity.  This bill is operative only during the current  
            drought state of emergency, but projects necessary to prevent  
            or mitigate an emergency can be exempted via CEQA, as well as  
            via the Governor's broad authority under the Emergency  
            Services Act.  


             There's no record that the SB 88 exemption has been used to  
            date and no evidence of its necessity or effect on any  
            particular project.  Given the lack of a record, and the fact  
            that the original sunset was only 18 months, a 5-year  
            extension seems excessive.  If the committee feels an  
            extension is warranted, it may wish to consider a shorter  
            extension, as well as the addition of conditions consistent  
            with other exemptions approved by the committee, such as  
            prohibiting impacts on protected species or cultural  
            resources, requiring the lead agency to hold a public hearing  
            and adopt mitigation measures for potential construction  
            impacts, and requiring the notice of exemption to be filed  
            with OPR.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          California Chamber of Commerce









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          Opposition


          Clean Water Action California


          Natural Resources Defense Council


          Sierra Club California




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