BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2034


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          Date of Hearing:  April 4, 2016 


                        ASSEMBLY COMMITTEE ON TRANSPORTATION


                                 Jim Frazier, Chair


          AB 2034  
          (Salas) - As Amended March 17, 2016


          SUBJECT:  Department of Transportation:  environmental review  
          process:  federal program


          SUMMARY:  Deletes the January 1, 2017, sunset for the California  
          Department of Transportation (Caltrans) to waive its 11th  
          Amendment right to sovereign immunity from lawsuits brought in  
          federal court so that Caltrans can continue, indefinitely, to  
          assume the role of the U.S. Department of Transportation (U.S.  
          DOT) for National Environmental Policy Act (NEPA) decision  
          making.  


          EXISTING LAW:  



          1)Specifies that Caltrans has full possession and control of  
            state highways.  

          2)Establishes the NEPA Assignment program, under federal law,  
            wherein states may assume federal responsibilities for NEPA  
            actions as long as the states also assume associated risks,  
            including responding to citizen lawsuits filed in federal  
            court.  









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          3)Authorizes Caltrans, until January 1, 2017, to waive the  
            state's 11th Amendment sovereign immunity rights and to  
            consent to the jurisdiction of the federal court when sued by  
            any person seeking to enforce rights pursuant to the NEPA  
            delegation program.  

          4)Requires Caltrans to submit a report to the Legislature, on or  
            before January 1, 2016, containing, among other things, a cost  
            benefit analysis with regard to its participation in the NEPA  
            Assignment program.  

          FISCAL EFFECT:  Unknown





          COMMENTS:  According to the author, AB 2034 will allow Caltrans  
          to continue indefinitely the NEPA Assignment program thereby  
          allowing for the continued expediting of environmental review of  
          critical transportation projects.  By allowing projects to be  
          completed sooner than would otherwise be the case, the author  
          believes that NEPA Assignment will create circumstances by which  
          transportation projects can be delivered more quickly to the  
          traveling public resulting in job creation as well as  
          transportation system improvements.

          In the 2005, the Safe, Accountable, Flexible, Efficient  
          Transportation Equity Act:  A Legacy for Users (SAFETEA-LU)  
          established a Surface Transportation Project Delivery Pilot  
          Program (later called the NEPA Assignment).  This pilot program  
          designated California as one of five states eligible to  
          participate in a multi-year program that delegates  
          responsibilities of United States Department of Transportation  
          (U.S. DOT) and the U.S. Federal Highway Administration (FHWA)  
          under NEPA to the states.  These responsibilities subjected  
          states to the same procedural and substantive requirements as if  
          they were carried out by U.S. DOT.  The delegation of this  
          authority to the state made Caltrans the lead agency for  








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          environmental reviews for projects subject to NEPA.  To  
          participate in NEPA Assignment, participating states were  
          required to accept the financial costs associated with the  
          delegated authority, as well as full liability for lawsuits  
          filed under NEPA in federal court.  Therefore, in order to  
          participate, participating states were required to obtain a  
          limited waiver of their 11th Amendment sovereign immunity  
          thereby allowing them to be sued in federal court and providing  
          them the ability to defend against claims that may be brought  
          against the NEPA document. 

          In 2006, the Legislature passed AB 1039 (Núñez), Chapter 31,  
          Statutes of 2006, which, among other things, granted the  
          necessary waiver of sovereign immunity to Caltrans until January  
          1, 2009.  With the waiver in place, Caltrans entered into a  
          memorandum of understanding with FHWA to participate in NEPA  
          Assignment effective July 1, 2007.  In addition to granting the  
          waiver of sovereign immunity, AB 1039 also required that  
          Caltrans report to the Legislature with information regarding  
          the costs and benefits the state's participation in the program.  
           

          In reports provided to the Legislature pursuant to AB 1039, as  
          well as subsequent legislation, Caltrans has reported  
          significant reductions in processing times for NEPA documents  
          and, as a result, the Legislature has twice extended the limited  
          waiver of sovereign immunity first with the passage of AB 2650  
          (Carter), Chapter 248, Statutes of 2008, and again with the  
          passage of SB 892 (Carter), Chapter 482, Statutes of 2011.  Each  
          of these extensions continued Caltrans' reporting requirement,  
          with the last required report submitted to the Legislature on  
          January 1, 2016.

          To date, NEPA Assignment has apparently been successful in  
          reducing the amount of time for reviews and approvals of NEPA  
          documents and also resulted in streamlining the environmental  
          review process for joint NEPA/CEQA documents.  For example,  
          since undertaking NEPA Assignment, Caltrans reports a 20%  
          reduction in the time to complete Final Environmental  








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          Assessments (EAs) and a 72% reduction in the time to complete  
          Final Environmental Impact Studies (EISs).  

          In addition to reporting to the Legislature, Caltrans is also  
          required to report to FHWA pursuant to NEPA Assignment  
          responsibilities.  Caltrans data reported to both the  
          Legislature and FHWA shows that NEPA Assignment has been a  
          success with median time savings of 10.7 months in approving  
          draft EAs, 11.5 months for final EAs, 22.9 months for draft  
          EISs, and 130.8 months for final EISs.  

          When AB 1039 first passed, providing Caltrans with the ability  
          to participate in NEPA Assignment, the Legislature added a  
          sunset provision to the limited waiver of sovereign immunity so  
          that the program could be discontinued in the event that  
          Caltrans' involvement in the program proved costly.  To date,  
          however, Caltrans' has been involved in a seven minor NEPA  
          lawsuits and has expended minimal time, comparatively,  
          addressing these lawsuits.  With respect to cost and time  
          savings achieved by NEPA Assignment, the benefits clearly  
          outweighed by the costs.  

          With regard to reporting, Caltrans has continued responsibility  
          to report to U.S. DOT with regard to the program along with  
          ongoing FHWA monitoring requirement.  Caltrans provides the  
          results of this reporting on its Internet Web site so all the  
          documentation with regard to the program continues to be  
          accessible, making the need for ongoing reporting to the  
          Legislature unnecessary.

          Previous legislation:  SB 892 (Carter), Chapter 482, Statutes of  
          2011, provided for an extension of Caltrans' NEPA delegation  
          authority by extending a waiver of sovereign immunity.





          AB 2650 (Carter), Chapter 248, Statutes of 2008, extended the  








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          state's existing limited waiver of its 11th Amendment sovereign  
          immunity from citizens' lawsuits, thereby enabling Caltrans to  
          continue its assumption of NEPA responsibilities under an  
          ongoing pilot program.



          AB 1039 (Núñez), Chapter 31, Statutes of 2006, was part of a  
          package of bills placing several infrastructure-related bond  
          authorizations on the November 7, 2006, statewide ballot that  
          contained other environmental streamlining provisions and  
          allowed Caltrans to waive the state's 11th Amendment sovereign  
          immunity from lawsuits as a prerequisite for taking on the  
          federal responsibilities.  



          REGISTERED SUPPORT / OPPOSITION:




          Support


          Automobile Club of Southern California


          California Transportation Commission




          Opposition


          None on file










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          Analysis Prepared by:Victoria Alvarez / TRANS. / (916) 319-2093