BILL ANALYSIS Ó AB 1749 Page 1 Date of Hearing: May 3, 2016 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Das Williams, Chair AB 1749 (Mathis) - As Amended April 27, 2016 SUBJECT: California Environmental Quality Act: exemption: recycled water pipeline (Urgency) SUMMARY: Establishes a temporary 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 construction impacts are fully mitigated consistent with AB 1749 Page 2 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. THIS BILL: 1)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: a) Is approved or carried out by a public agency prior to July 1, 2017; b) Consists of construction of a recycled water treatment facility located on city-owned property and directly related pipelines that are less than one mile in length and located within existing developed rights-of-way; and c) Does not affect wetlands or sensitive habitat, and where the construction impacts are fully mitigated consistent with applicable law. AB 1749 Page 3 2)Remains operative until the current drought state of emergency has expired or until January 1, 2018, whichever occurs first. 3)Is an urgency measure. 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 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 an exemption for recycled water projects. At the time, the project cited AB 1749 Page 4 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. This bill would establish a similar, though narrower exemption, with a longer deadline (project approval by July 1, 2017). The bill targets proposed water recycling projects to address the water supply crisis in Porterville in the author's district. 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 recycled water projects have been routinely approved via exemption or negative declaration. 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 AB 1749 Page 5 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. 4)Related legislation. AB 2438 (Waldron) establishes a CEQA exemption for installation of new, and maintenance of existing, recycled water pipelines less than eight miles in length. AB 2438 passed this Committee on April 11, 2016, by a vote of 8-1 and is pending on the Assembly Floor. REGISTERED SUPPORT / OPPOSITION: Support (prior version) Associated Builders and Contractors of California California Chamber of Commerce City of Santa Monica Metropolitan Water District of Southern California Southwest California Legislative Council Opposition (prior version) AB 1749 Page 6 California League of Conservation Voters Clean Water Action California Natural Resources Defense Council Planning and Conservation League Sierra Club California Analysis Prepared by:Lawrence Lingbloom / NAT. RES. / (916) 319-2092