BILL ANALYSIS Ó AB 2438 Page 1 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 AB 2438 Page 2 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 AB 2438 Page 3 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 AB 2438 Page 4 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 AB 2438 Page 5 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. AB 2438 Page 6 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 AB 2438 Page 7 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