BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2438


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          Date of Hearing:  April 11, 2016


                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES


                                 Das Williams, Chair


          AB 2438  
          (Waldron) - As Introduced February 19, 2016


          SUBJECT:  California Environmental Quality Act:  exemption:   
          recycled water pipelines


          SUMMARY:  Establishes an exemption from the California  
          Environmental Quality Act (CEQA) for installation of new, and  
          maintenance of existing, recycled water pipelines less than  
          eight miles in length. 


          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 (CEQA includes various statutory  
            exemptions, as well as categorical exemptions in the CEQA  
            Guidelines).

          2)Provides that CEQA does not apply to 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  








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            demolition of an existing pipeline.  Excludes any surface  
            facility related to the operation of the underground pipeline.

          3)Provides that CEQA does not apply to a pipeline project less  
            than eight miles in length consisting of inspection,  
            maintenance, repair, restoration, reconditioning, relocation,  
            replacement, or removal of an existing intrastate liquid  
            pipeline subject to the Pipeline Safety Act, subject to  
            specified conditions, including:

             a)   Construction and excavation activities are not  
               undertaken over more than one half mile at a time.

             b)   The section of pipeline is not less than 8 miles from  
               any section that has received an exemption in the past 12  
               months.

             c)   Project activities are undertaken within an existing  
               right-of-way and the right-of-way is restored to its  
               pre-project condition.

             d)   The diameter of the pipeline is not increased.

          4)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  
            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).

          5)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  








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            therefore considered a valuable resource.

          THIS BILL:

          1)Exempts from review under CEQA a project of less than eight  
            miles in length within a public street, highway, or  
            right-of-way for the construction and installation of a new  
            recycled water pipeline, or the maintenance, repair,  
            restoration, reconditioning, relocation, replacement, removal,  
            or demolition of an existing recycled water pipeline.

          2)Defines "pipeline" to include 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.

          3)Requires the lead agency to do all of the following:

             a)   Hold a noticed public hearing to consider and adopt  
               mitigation measures for potential traffic impacts of the  
               project.

             b)   File a notice of exemption with the Office of Planning  
               and Research (OPR) and in the office of the county clerk of  
               each county in which the project is located within 20 days  
               of the approval of the project.

             c)   Ensure that the overlaying property owner has given  
               permission to access the property, in the case of a  
               right-of-way over private property, if access is not  
               granted in the express terms of the right-of-way.

             d)   Ensure the restoration of the public street, highway, or  
               right-of-way to a condition consistent with all applicable  
               local laws or regulations, or a negotiated agreement.

          4)Requires the project applicant to comply with all applicable  
            laws and regulations, including California Code of Regulations  
            Chapter 3 (commencing with Section 60301) of Division 4 of  








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            Title 22 (i.e., water recycling criteria).

          5)Provides that the exemption does not apply to any of the  
            following:

             a)   A project that is a part of a recycled water pipeline  
               project greater than eight miles.

             b)   A project that is adjacent to another project for which  
               a claim of exemption has been made.

             c)   A project that is located in a resource area, such as a  
               park, open space, protected habitat areas, or lands subject  
               to a conservation easement.

             d)   A project for which an excavation activity that is more  
               than one-half mile in length at any one time will be  
               undertaken.

          6)Sunsets January 1, 2020.

          7)Makes findings related to the drought and the benefits of  
            recycled water.

          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 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  








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            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 limited exemptions for relatively small-scale  
            pipeline maintenance and installation projects.  A general  
            exemption is available for projects under one mile in length.   
            A more specific exemption is available for projects up to  
            eight miles in length involving maintenance and replacement,  
            but not expansion, of pipelines regulated under the Pipeline  
            Safety Act (e.g., petroleum pipelines).  This bill proposes an  
            exemption for pipeline projects significantly broader than any  
            existing exemption.  It would apply to both existing and new  
            pipelines.  

          2)Author's statement:  


           Water recycling has the greatest potential to provide much  
          needed water resources in our state.  The problem many  
          communities face when attempting to get the required  
          infrastructure in the ground, even when there is not much of an  
          impact to the environment, is that the project must still comply  
          with the cumbersome CEQA process.  In most cases the recycled  
          water pipelines are going in the ground next to existing water  
          pipelines, which are found on streets and roadways in public  
          right-of-ways, but the CEQA process requires a project to comply  
          with numerous potential impacts creating extensive time delays  
          and costs.









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          3)No evidence that CEQA is an unreasonable impediment to  
            recycled water projects.  A review of CEQA notices submitted  
            to OPR shows that 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.  Categorical exemptions are available for  
            maintenance, replacement and reconstruction of existing public  
            utility facilities, involving negligible or no expansion of  
            capacity.  In June 2015, SB 88, a drought relief budget  
            trailer bill, added an exemption for recycled water projects  
            to mitigate drought conditions under the current drought state  
            of emergency.

          4)Prior legislation.  This bill is identical to AB 2417  
            (Nazarian), which passed this Committee on April 28, 2014 by a  
            vote of 7-1.  AB 2417 was later held in the Senate  
            Environmental Quality Committee.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          California Chamber of Commerce


          Los Angeles County Economic Development Corporation


          Rincon del Diablo Municipal Water District


          San Diego County Water Authority








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          San Diego Unincorporated Communities


          Southwest California Legislative Council


          Valley Center Municipal Water District




          Opposition


          California League of Conservation Voters


          Sierra Club California




          Analysis Prepared by:Lawrence Lingbloom / NAT. RES. / (916)  
          319-2092