BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2438


                                                                    Page  1





          ASSEMBLY THIRD READING


          AB  
          2438 (Waldron and Nazarian)


          As Introduced  February 19, 2016


          Majority vote


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Natural         |8-1  |Williams, Jones,      |Mark Stone          |
          |Resources       |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Cristina Garcia,      |                    |
          |                |     |Gomez, Hadley,        |                    |
          |                |     |Harper, McCarty, Wood |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |15-0 |Bigelow, Bloom,       |                    |
          |                |     |Bonilla, Bonta,       |                    |
          |                |     |Calderon, Chang,      |                    |
          |                |     |Daly, Eggman,         |                    |
          |                |     |Gallagher,            |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Roger Hernández,      |                    |
          |                |     |Obernolte, Quirk,     |                    |
          |                |     |Santiago, Wagner,     |                    |
          |                |     |Wood                  |                    |
          |                |     |                      |                    |








                                                                    AB 2438


                                                                    Page  2





          |                |     |                      |                    |
           ------------------------------------------------------------------ 


          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.  Specifically, 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.









                                                                    AB 2438


                                                                    Page  3






             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 Code of Regulations Chapter 3  
            (commencing with Section 60301) of Division 4 of 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.


          EXISTING LAW:  


          1)Requires lead agencies with the principal responsibility for  








                                                                    AB 2438


                                                                    Page  4





            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  
            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 eight 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.









                                                                    AB 2438


                                                                    Page  5






          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 (Budget and  
            Fiscal Review Committe), 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  
            therefore considered a valuable resource.


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, no additional state costs.


          COMMENTS:  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  
          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  








                                                                    AB 2438


                                                                    Page  6





          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.


          According to the author:


            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.


          There is 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  








                                                                    AB 2438


                                                                    Page  7





          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.




          Analysis Prepared by:                                             
                          Lawrence Lingbloom / NAT. RES. / (916) 319-2092   
                                                                      FN:  
          0002780