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