BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                              Senator Wieckowski, Chair
                                2015 - 2016  Regular 
           
          Bill No:            AB 1749
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          |Author:    |Mathis                                               |
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          |Version:   |6/15/2016              |Hearing      |6/29/2016       |
          |           |                       |Date:        |                |
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          |Urgency:   |No                     |Fiscal:      |No              |
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          |Consultant:|Joanne Roy                                           |
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          SUBJECT:  California Environmental Quality Act: exemption: City  
          of Porterville.

            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 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 §21000 et seq.).  Exemptions relating  
             to pipelines include:

             a)    A project of less than one mile in length within a  
                public street or highway, or another public right-of-way  
                for the installation of a new pipeline or maintenance,  
                repair, restoration, reconditioning, relocation,  
                replacement, removal, or demolition of an existing  
                pipeline.  "Pipeline" means "subsurface pipelines and  
                subsurface or surface accessories or appurtenances to a  
                pipeline, such as mains, traps, vents, cables, conduits,  
                vaults, valves, flanges, manholes and meters."   
                (§21080.21).

                i)         Requires a resource agency to consider only the  
                     length of pipeline that is within its legal  







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                     jurisdiction in determining the applicability of this  
                     exemption to a natural gas pipeline safety  
                     enhancement activity under review by the resource  
                     agency.  (§21080.21).

                ii)        Defines "natural gas pipeline" to mean a public  
                     utility activity as part of a program to enhance the  
                     safety of intrastate natural gas pipelines in  
                     accordance with a decision, rule, or regulation  
                     adopted by the Public Utilities Commission; and  
                     defines "resource agency" to mean the State Lands  
                     Commission, California Coastal Commission, Department  
                     of Fish and Game, or the State Water Resources  
                     Control Board, and local or regional agencies with  
                     permitting authority under the California Coastal Act  
                     of 1976 or regional water quality control board  
                     requirements.  (§21080.21).

                iii)       Sunsets the provisions above, in §21080.21, on  
                     January 1, 2018.  (§21080.21).

             b)    The inspection, repair, restoration, reconditioning,  
                relocation, replacement, or removal of an existing  
                pipeline less than eight miles in length, or any valve,  
                flange, meter, or other equipment directly attached to the  
                pipeline if certain conditions are met (e.g., "pipeline"  
                is covered under the Elder California Pipeline Safety Act  
                of 1981 [for transporting hazardous liquid substances or  
                highly volatile liquid substances], project is not less  
                than eight miles from any section of pipeline that has  
                been subject to this exemption in the past 12 months,  
                certain notice is provided, project is located within an  
                existing right-of-way and restored to its condition prior  
                to the project, notice requirements).  (§21080.23). 

             c)    Development and approval of building standards by state  
                agencies for recycled water systems until July 1, 2017.  
                (§21080.45).

             d)    During the drought state of emergency proclaimed by the  
                Governor on January 17, 2014, for a public agency to  
                mitigate drought conditions by building or expanding a  
                recycled water pipeline and related groundwater  
                replenishment infrastructure if it is within an existing  








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                right-of-way, does not impact wetlands or sensitive  
                habitat, and where the construction impacts are fully  
                mitigated.  This authority remains operative until the  
                state of emergency has expired or until January 1, 2017,  
                whichever occurs first.  (§21080.08).

             e)    Operation, repair, maintenance, or minor altercation of  
                existing private or public structures involving negligible  
                or no expansion, including existing facilities of both  
                investor and publicly owned utilities used to provide  
                electric power, natural gas, sewage, or other public  
                utility services.  (CEQA Guidelines §15301(b)).

             f)    Replacement or reconstruction of existing structures  
                and facilities where the new structure will be located on  
                the same site as the structure replaced and will have  
                substantially the same purpose and capacity, including  
                replacement or reconstruction of existing utility systems  
                or facilities involving negligible or no expansion of  
                capacity.  (CEQA Guidelines §15301(c)).

          2) Defines "recycled water" to mean 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. (Water Code  
             §13050(n)).

          This bill:  

          1) Exempts from CEQA a water treatment project determined by the  
             City of Porterville as the best option based on a feasibility  
             study regarding long-term solutions to water supply issues in  
             the unincorporated area known as East Porterville. 

          2) Specifies that the project may be one of the following  
             options:

             a)    The construction of a series of satellite water  
                treatment facilities adjacent to to existing water  
                distribution line.

             b)    The construction of an advanced water recycling  
                treatment facility located either adjacent to the city's  
                existing wastewater treatment facility or at a preferred  








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                location.

             c)    Upgrades to the city's existing wastewater treatment  
                facility to allow for tertiary treatment of the city's  
                wastewater.

          3) Sunsets the provisions of this bill January 1, 2021.

            Background
          
          1) Background on CEQA.  

             a)    Overview of CEQA 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 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, 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.

             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.

             b)    What is analyzed in an environmental review?  Pursuant  








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                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, and 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, allowable conditions.

             c)    CEQA provides hub for multi-disciplinary regulatory  
                process.  A CEQA exemption does not alleviate a project  
                proponent from its obligation to obtain mandatory permits  
                or adhere to specified regulatory programs.  CEQA assists  
                in moving a project through the multi-disciplinary,  
                regulatory process because responsible agencies rely on  
                the lead agency's environmental documentation in acting on  
                the aspect of the project that requires its approval and  
                must prepare its own findings regarding the project.  A  
                variety of issues, many of which involve permitting and/or  
                regulatory program requirements, should be coordinated and  
                analyzed together as a whole.  CEQA provides a  
                comprehensive analysis of a project's impacts in those  
                subject areas.

          2) Recycled water.  

             a)    Overview of Recycled Water.  Recycled water is treated  
                wastewater from various sources such as domestic sewage,  
                industrial wastewater, and stormwater runoff, and is  
                conveyed to a water treatment plant.  Before recycled  
                water can be used for these beneficial uses, the regional  
                water quality control boards (RWQCBs) and the Department  
                of Public Health (DPH) require treatment to remove  








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                pollutants that could be harmful to the beneficial use.   
                Recycled water is used for nonpotable (not for drinking)  
                purposes, such as agriculture, landscape, public parks,  
                and golf course irrigation.  Other nonpotable applications  
                include cooling water for power plants and oil refineries,  
                industrial process water for such facilities as paper  
                mills and carpet dyers, toilet flushing, dust control,  
                construction activities, concrete mixing, and artificial  
                lakes.  

             Recycled water can satisfy many nonpotable water demands, as  
                long as it is adequately treated to ensure water quality  
                appropriate for the use.  Most recycled water treatment  
                plants produce tertiary treated water, meaning the water  
                has been through three levels of treatment including  
                filtration and disinfection.  In uses where there is a  
                greater chance of human exposure to the water, more  
                treatment is required.  As for any water source that is  
                not properly treated, health problems can arise from  
                drinking or being exposed to recycled water if it contains  
                disease-causing organisms or other contaminants.

             Although most water recycling projects have been developed to  
                meet nonpotable water demands, a number of projects use  
                recycled water indirectly for potable purposes.  These  
                projects include recharging groundwater aquifers and  
                augmenting surface water reservoirs with recycled water.   
                For example, Orange County has a wastewater-recycling  
                program where wastewater is treated to a level meeting  
                state and federal drinking water standards and is then  
                released into local groundwater recharge basins, where it  
                will eventually be re-drawn for municipal or private use. 

             b)    Regulatory Authorities of Recycled Water in California.  
                 A number of regulatory agencies have adopted requirements  
                that must be followed when producing, distributing, and  
                using recycled water.  DPH has adopted strict public  
                health and safety requirements and guidelines, which help  
                protect the public from any potential risk associated with  
                use of recycled water (Titles 17 and 22 of the California  
                Code of Regulations).  The State Water Resources Control  
                Board (SWRCB) and RWQCBs grant permits to oversee  
                production, conveyance, and use of recycled water.  Local  
                Departments of Public Health may also have guidelines and  








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                inspection requirements for the use of recycled water,  
                such as requirements for the use of backflow devices to  
                prevent mixing of recycled water with potable water.  The  
                sanitation districts have adopted ordinances and  
                requirements for recycled water users pertaining to the  
                use of recycled water that incorporate requirements and  
                regulations imposed upon the sanitation districts by other  
                regulatory agencies.

          3) Tulare County and emergency water needs.  Due to the number  
             of private shallow wells in Tulare County, the county's  
             population has had serious challenges related to water supply  
             and quality.  The county has been working the past two years  
             to address its emergency water needs and to develop long-term  
             solutions.  As of April 2016, the state has allocated over  
             $148.4 million toward emergency drought response and  
             long-term solutions throughout Tulare County, including the  
             following:

             a)    $7.3 million from the State Water Resources Control  
                Board (SWRCB) for emergency bottled water delivery to an  
                estimated 1,000 homes; connection of homes with dry wells  
                to community systems; and consolidation of water systems.

             b)    $5.8 million in funding from the California Office of  
                Emergency Services (OES) to set up and maintain nearly 600  
                temporary household water tanks for residents with dry  
                wells.

             c)    $133.5 million in SWRCB grants to permanently address  
                water contamination issues; expand and upgrade water and  
                wastewater systems; and drill new wells in several  
                communities.

             d)    $1.8 million in Department of Water Resources (DWR)  
                funding to establish new wells to support the communities  
                of East Porterville, Monson, Okieville, and the Tule River  
                Tribe.

             Such efforts are making a significant difference for  
             thousands of residents throughout Tulare County.  

          4) City of Porterville and unincorporated East Porterville.  The  
             City of Porterville has a population of approximately 55,500  








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             people.  East Porterville is an unincorporated community of  
             approximately 7,500 residents, many of whom are farmworkers  
             with many of them having lost jobs picking, processing, and  
             packaging vegetables and fruits due to drought-stricken  
             farms.

          Groundwater generally supplies most domestic uses in Tulare  
             County, including both the City of Porterville and East  
             Porterville.  The City has a municipal water system hooked up  
             to a deep, industrial-grade well and has not gone dry.   
             However, East Porterville lacks such public infrastructure.  
             Since Tulare County started tracking private well failures in  
             September 2014, 996 were reported as of April 2015, many of  
             them in East Porterville.  As of May 2016, 12% of the state's  
             failed wells are in East Porterville. The state is currently  
             spending over $500,000/month on tank and bottled water  
             programs in the area.

          5) City of Porterville water and wastewater.  According to the  
             City of Porterville, the city "has jurisdiction over water  
             and wastewater services within the city limits and within its  
             Urban Development Boundary (which includes the vast majority  
             of the East Porterville area), and accordingly, has  
             jurisdiction over the sources of recycled water and/or the  
             potential service area.  The City's Wastewater Treatment  
             Facility (WWTF) treats sewer flows from residential,  
             commercial, and industrial users within the city's  
             boundaries, including East Porterville area by virtue of an  
             agreement between the City and the Porter Vista Public  
             Utility District.  Collectively, the City's WWTF treats on  
             average at least 4 million gallons of effluent per day, which  
             equates to more than 12 acre-feet per day and approximately  
             5,000 acre-feet per year.  

          The city has traditionally depended on groundwater from the Tule  
             Sub-basin of the Tulare Lake Hydrological Region to supply  
             drinking water, through a network of 35 potable supply wells.  
              The Tule Sub-basin, along with many other sub-basins in the  
             surrounding area, has been classified in a critical overdraft  
             condition, as determined by the State.
            
          Comments
          
          1) Purpose of Bill.  According to the author, "AB 1749 is a  








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             simple yet vital measure aimed at ensuring California is able  
             to adequately mitigate the effects of the existing drought,  
             while also preparing for future droughts.  California should  
             continue to encourage projects that preserve our precious  
             water supply and promote water sustainability, such as  
             groundwater replenishment and recycled water programs, rather  
             than hindering them with strict CEQA regulations."

          2) Five years until construction begins.  According to the City  
             of Porterville, "It is estimated that the feasibility study,  
             selection of option and financing, design, and finally  
             beginning construction will likely take up to five years."   
             Five years is ample time for the lead agency to conduct an  
             environmental review for this project.  The project, lead  
             agency, and the community would benefit from the CEQA process  
             because an environmental review helps decisionmakers make an  
             informed decision by assessing each option/alternative, the  
             design, how best to proceed with construction, and potential  
             impacts on the community; as well as provide transparency and  
             an opportunity for public participation.  

          The City will not begin construction for approximately five  
             years - Conducting an environmental review in that time frame  
             is not an issue.  It would be prudent for the City to act  
             responsibly by using the five-year time period to conduct an  
             environmental review pursuant to CEQA to ensure that its  
             long-term water solution is safe and viable; and that it is  
             not trading unnecessary expediency for unintended  
             consequences.

          3) National Environmental Policy Act (NEPA).  The City of  
             Porterville has submitted a funding application to SWRCB.   
             The Clean Water State Revolving Fund uses federal  
             capitalization grants, state match funds, loan repayments,  
             and interest earnings to offer low cost financing for a  
             variety of water quality projects.  If the Porterville  
             project receives such funding, an environmental review will  
             be required pursuant to NEPA.  It is not uncommon for a  
             project to be subject to both NEPA and CEQA.  

          If the project is subject to NEPA, no expediency would be gained  
             from an exemption from CEQA because the lead agency must  
             still conduct an environmental review pursuant to NEPA.  A  
             joint CEQA/NEPA environmental review document could be done.








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          4) East Porterville Emergency Water Project.  Three state  
             agencies, DWR, OES, and SWRCB, are working with Tulare County  
             local governments on an emergency water supply project to  
             provide drinking water to homes in East Porterville where  
             numerous private water wells are not usable because they are  
             either contaminated or have gone dry during California's  
             drought.  Homes without a sustainable supply of safe drinking  
             water have received water deliveries under an emergency  
             Household Tank Program since 2014.  

          A new water distribution system is being designed that will  
             connect East Porterville residences without usable water to a  
             City of Porterville well with existing water distribution  
             lines for some residences or new pipes that will be laid  
             along East Porterville streets.  Approximately 1,800  
             properties will benefit from this permanent water solution  
             and eventually will be annexed to the City of Porterville,  
             with the state paying connection costs for homes whose owners  
             agree at the outset of the project to the terms and  
                                                                 conditions of an Extraterritorial Service Agreement.  

          The East Porterville Emergency Water Project is divided into two  
             phases.  Phase 1will begin connecting 500 homes this summer.   
             Phase 2 has the remaining 1,300 residences scheduled to  
             receive service through a new system by the end of 2017.   
             Phase 1 is exempted from CEQA as an emergency project.  For  
             Phase 2, DWR is conducting a CEQA environmental review, which  
             is expected to be completed in the next six months.

          Considering that DWR is proceeding with a CEQA review for the  
             Phase 2 East Porterville water supply project and expects  
             residents to receive service through the new system by the  
             end of next year, a question arises as to the need for a CEQA  
             exemption for a related project that has yet to be determined  
             and will not begin construction until five years from now.

          5) Concerns regarding recycled water.  Although recycled water  
             is generally understood to be a positive means for  
             supplementing/increasing water supply in the state, it has  
             its share of concerns that could benefit from being analyzed  
             and addressed in a project's environmental review.  For  
             example:









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             a)    Corrosion of water system pipes.  The recent water  
                crisis in Flint, Michigan, serves as a strong reminder  
                that water infrastructure can have many vulnerabilities,  
                such as corrosion.  Recycled water can corrode pipes.   
                Corrosion is an electro-chemical reaction on metallic  
                surfaces caused by the presence of highly reactive ions in  
                recycled water, such as chloride, sulfide, or sulfate, and  
                can be increased by high pH levels, alkalinity, and  
                reduced oxygen concentrations.  The rate of corrosion is  
                related to factors, such as:  pH of the water, amount of  
                oxygen in the water, chemical makeup of the water,  
                temperature of the water, velocity/pressure of water in  
                the pipe.  The internal corrosion of piping systems may  
                raise health concerns including the negative impacts  
                associated with the leaching of lead, copper and other  
                harmful metals from water pipes into the drinking water  
                supply.

             b)    Natural contaminants, e.g. arsenic, are contaminants  
                nonetheless.  According to the United States Geological  
                Survey (USGS), natural contaminants, such as arsenic,  
                occur at high concentrations in about 20% of the  
                groundwater resources used for supply in California.  
                Groundwater provides about one-third of California's  
                drinking supply in a typical year, but more during drought  
                conditions.  According to USGS, 11% of groundwater used by  
                public water operators shows arsenic levels exceeding the  
                10 parts per billion arsenic threshold.

             According to the World Health Organization (WHO), arsenic is  
                one of WHO's ten chemicals of major public health concern.  
                 Inorganic arsenic is acutely toxic.  Intake of inorganic  
                arsenic over a long period can lead to chronic arsenic  
                poisoning.  Effects, which can take years to develop  
                depending on the exposure level, include skin lesions,  
                peripheral neuropathy, diabetes, cardiovascular diseases,  
                and cancer.  Human exposure to elevated levels of  
                inorganic arsenic occurs mainly through the consumption of  
                groundwater containing naturally high levels of inorganic  
                arsenic, food prepared with this water, and food crops  
                irrigated with high arsenic water sources.  For example,  
                in one estimate, arsenic-contaminated, potable groundwater  
                in Bangladesh alone was attributed 9,100 deaths and  
                125,000 Disability Adjusted Life Years in 2001.








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             As mentioned above, Orange County has a wastewater-recycling  
                program where wastewater is treated to a level meeting  
                state and federal drinking water standards and is then  
                released into local groundwater recharge basins, where it  
                will eventually be re-drawn for municipal or private use.   
                In August 2015, Scott Fendorf, a biogeochemist at Stanford  
                University published a study and found that when highly  
                purified wastewater was stored in an Orange County  
                aquifer, the water caused arsenic to escape from clay  
                sediments in a way that naturally infiltrating water did  
                not.  In some instances, researchers said that arsenic  
                concentrations exceeded the drinking water limit of 10  
                micrograms per liter; the increases were temporary and  
                levels eventually returned to normal.  According to the  
                researchers at Stanford University and the Orange County  
                Water District's Groundwater Replenishment System, the  
                root of the problem was that the purified, recycled water  
                lacked the minerals that native water acquires as it soaks  
                into the earth or flows along rivers.  Professor Fendorf  
                said that this may be the first time highly purified water  
                was identified as a trigger by which arsenic can  
                contaminate groundwater.  (Monte Morin, "Purified  
                wastewater triggers release of arsenic within aquifer,  
                study finds," The Los Angeles Times, September 4, 2015.)  

             c)    A side of pharmaceuticals with your vegetables.   
                Studies have found a variety of drugs in crops, such as  
                cholesterol medications, caffeine, and triclosan.  In a  
                recent study, researchers found that the anticonvulsive  
                epilepsy drug, carbamazepine, which is released in urine,  
                can accumulate in crops irrigated with recycled water and  
                end up in the urine of produce-eaters not on the drug.   
                Pharmaceuticals may get trapped in an infinite  
                urine-to-vegetable-to-urine cycle, which exposes consumers  
                to drug doses with unknown health effects.  (Beth Mole,  
                "Prescription meds get trapped in disturbing  
                pee-to-food-to-pee loop," Environmental Science &  
                Technology, April 20, 2016).  The researchers found that  
                while the amounts of the drug in a produce-eater's urine  
                were four orders of magnitude lower than what is seen in  
                the urine of patients purposefully taking the drug, there  
                is a possibility that trace amounts could still have  
                health effects in some people, such as those with a  








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                genetic sensitivity to the drugs, pregnant women,  
                children, and those who eat a lot of produce, such as  
                vegetarians.  With the growing practice of reclaiming  
                wastewater for crop irrigation, the produce contamination  
                could become more common and more potent.  California,  
                which grows a large portion of US produce, currently uses  
                reclaimed water for 6% of its irrigation needs.

             As mentioned above, although recycled water is an important  
             component in addressing water supply issues in this state,  
             recycled water is not without its concerns and should be  
             analyzed and addressed to ensure public health and  
             environmental safety. 

          6) SWRCB's recycled water policy.  SWRCB's report, Policy for  
             Water Quality Control for Recycled Water (last revised in  
             January 2013), states, "We strongly encourage local and  
             regional water agencies to move toward clean, abundant, local  
             water for California by emphasizing appropriate water  
             recycling, water conservation, and maintenance of supply  
             infrastructure and the use of stormwater (including  
             dry-weather urban runoff) in these plans; these sources of  
             supply are drought-proof, reliable, and minimize our carbon  
             footprint and can be sustained over the long-term."  Among  
             the goals adopted, is to "increase the use of recycled water  
             over 2002 levels by at least one million acre-feet per year  
             (afy) by 2020 and by at least two million afy by  
             2030?Included in these goals is the substitution of as much  
             recycled water for potable water as possible by 2030."  
             (SWRCB, Policy for Water Quality Control for Recycled Water,  
             p. 1).  

          SWRCB's Recycled Water Policy includes ways to expedite the  
             implementation of recycled water projects.  The report makes  
             no mention that CEQA is an impediment to either reaching  
             these goals or increasing the use of recycled water in the  
             state, but rather encourages public agencies to use the  
             presumption that recycled water has a beneficial impact "in  
             evaluating the impacts of recycled water projects on the  
             environment as required by [CEQA]." (Ibid, p. 3).

          7) Recycled water projects complying with CEQA. The State  
             Clearinghouse's CEQA database shows that in the past few  
             years, there have been multiple recycled water pipeline  








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             projects that involve constructing recycled water pipeline  
             and have complied with CEQA.  Many of these projects required  
             a mitigated negative declaration (MND) as opposed to an EIR.   
              

          CEQA provides that if an initial study shows that there would  
             not be a significant effect on the environment, then the lead  
             agency must prepare a negative declaration or a mitigated  
             negative declaration (ND/MND).  The lead agency then prepares  
             a draft ND/MND and publishes the document for public review  
             for at least 21 days.  After comments are considered, the  
             lead agency can either recirculate the ND/MND if public  
             comments required the project scope to change, or the lead  
             agency can adopt the document.  The lead agency must file a  
             Notice of Determination after adopting the document and there  
             is a 30-day statute of limitations for legal challenge.  

          The benefit to the project proponent, by complying with CEQA and  
             preparing an ND/MND when there is no significant impact, is  
             that these environmental documents can be completed more  
             quickly, at less cost, and have a shorter statute of  
             limitations for legal challenge than an EIR.  The benefit to  
             the public is transparency, informed decisionmaking, public  
             comment, and the knowledge that the project's impacts are  
             less than significant.

          Considering that the City of Porterville is looking at multiple  
             options, it is possible that the project the city ends up  
             choosing may only require an ND/MND.  

          8) Is Ignoring Impacts Prudent?  In addition to potential  
             effects on water quality and supply there may be other  
             significant impacts that would not be addressed with an  
             exemption as proposed by this bill.  For example, such an  
             exemption may adversely affect roads and may cause conflicts  
             with entrances to nearby homes and businesses considering a  
             right-of-way can be fairly expansive such as 50 feet or more  
             in width.  There may also be adverse noise and air quality  
             impacts for area residents, or sensitive uses such as  
             schools, senior centers, and hospitals. With a CEQA  
             exemption, as provided by this bill, there would be no  
             consideration of these and other impacts under the Act.

          The CEQA review process provides an avenue for decisionmakers to  








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             make informed decisions.  Does bypassing CEQA potentially  
             create more of a liability for those decisionmakers who  
             should have known about potential impacts, but chose not to?   
             Also, does the short-term benefit of expediency justify  
             potentially long-term, permanent consequences/damages to the  
             community? 

          9) What do we lose with a CEQA exemption?  It is not unusual for  
             certain interests to assert that CEQA impedes on a project  
             coming to fruition or that a particular exemption will  
             expedite construction of a particular type of project and  
             reduce costs.  This, however, frequently overlooks the  
             benefits of environmental review:  to inform decisionmakers  
             and the public about project impacts, identify ways to avoid  
             or significantly reduce environmental damage, prevent  
             environmental damage by requiring feasible alternatives or  
             mitigation measures, disclose to the public reasons why an  
             agency approved a project if significant environmental  
             effects are involved, involve public agencies in the process,  
             and increase public participation in the environmental review  
             and the planning processes.

          If a project is exempt from CEQA, certain issues may not get  
             addressed.  For example:

                 How can decisionmakers and the public be aware of  
               impacts, mitigation measures, and alternatives of an exempt  
               pipeline?

                 Is it appropriate for the public to live with the  
               consequences of exempt projects where impacts are not  
               mitigated and alternatives are not considered regarding  
               certain matters, such as air quality, water quality, noise,  
               cumulative impacts, and growth inducing impacts?

                 Because adverse project impacts do not disappear when  
               they are not identified and mitigated with an exemption,  
               does the exemption result in a direct transfer of  
               responsibility for mitigating impacts from the project  
               applicant/developer to the public (  i.e.  , taxpayers) if  
               impacts are ultimately addressed after completion of the  
               project?

                 If taxpayers, rather than a developer, are ultimately  








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               responsible for mitigating impacts of an exempt project  
               after project completion, what assessments or taxes will be  
               increased to fund mitigation or pay for alternatives at a  
               later date?

             Regardless of the merits of any project, short-term,  
             long-term, and/or permanent consequences of a project should  
             be known by the decisionmakers, the project proponent, and  
             the public before a project is approved, and mitigated or  
             avoided if possible before it is too late - CEQA specifically  
             provides for that informed decisionmaking.  Recycled water  
             projects pose challenges, risks, and serious consequences,  
             such as the potential for urban sprawl, that should be  
             assessed and subject to environmental review.

          1) Conclusion.  CEQA compels public agencies, in a public  
             setting, with public participation, to consider and decide on  
             projects with full knowledge about the environmental  
             conditions and consequences of their actions; and a CEQA  
             environmental review document, which is the result of a  
             meticulous and methodical process, compiles all of the  
             necessary facts in one place.  Bearing in mind that a project  
             may have long-term or permanent environmental impacts, is it  
             not prudent for these determinations to be made in a  
             thoughtful, transparent manner, and that environmental damage  
             caused by a project be avoided or minimized when feasible?

          Considering the multiple issues raised above, in addition to the  
             fact that construction is not expected until five years from  
             now, the Committee may wish to consider whether it would be  
             prudent for the City of Porterville to comply with CEQA and  
             whether this bill is needed.   

            Related/Prior Legislation

          AB 2438 (Waldron, Nazarian) exempts from CEQA the installation  
          of new, and maintenance of existing, recycled water pipelines  
          less than eight miles in length.  AB 2438 is scheduled to be  
          heard in the Senate Environmental Quality Committee on June 29,  
          2016.

          SB 88 (Budget and Fiscal Review Committee, Chapter 27, Statutes  
          of 2015) exempts recycled water water projects to mitigate  
          drought conditions for which a state of emergency was proclaimed  








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          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  
          applicable law.  This exemption remains operative until the  
          current drought state of emergency expires or until January 1,  
          2017, whichever occurs first.

          AB 2417 (Nazarian, 2014) exempted from CEQA the installation of  
          new, and maintenance of existing, recycled water pipelines less  
          than eight miles in length.  AB 2417 was held in Senate  
          Environmental Quality Committee.

          AB 83 (Jeffries, 2011) provided an exemption from CEQA for  
          installation of a new recycled water pipeline less than eight  
          miles in length within a paved public street highway, or  
          right-of-way.  AB 83 failed in the Assembly Natural Resources  
          Committee.
           
          SOURCE:                    Author  

           SUPPORT:               

          None received  

           OPPOSITION:    

          California League of Conservation Voters
          Sierra Club California  
           
                                          
                                      -- END -