BILL ANALYSIS Ó AB 1749 Page 1 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 AB 1749 Page 2 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 AB 1749 Page 3 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 AB 1749 Page 4 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 AB 1749 Page 5 Opposition Clean Water Action California Natural Resources Defense Council Sierra Club California Analysis Prepared by:Lawrence Lingbloom / NAT. RES. / (916) 319-2092