BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                              Senator Wieckowski, Chair
                                2015 - 2016  Regular 
           
          Bill No:            AB 2438
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          |Author:    |Waldron, Nazarian                                    |
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          |Version:   |2/19/2016              |Hearing      |6/29/ 2016      |
          |           |                       |Date:        |                |
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          |Urgency:   |No                     |Fiscal:      |Yes             |
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          |Consultant:|Joanne Roy                                           |
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          SUBJECT:  California Environmental Quality Act: exemption:  
          recycled water pipelines.

            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 jurisdiction  







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                   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, and 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  
                right-of-way, does not impact wetlands or sensitive  
                habitat, and where the construction impacts are fully  








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                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 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 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.








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             b)    File a notice of exemption with the Office of Planning  
                and Research 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 §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 located in a resource area, such as a  
                park, open space, protected habitat areas, or lands subject  
                to a conservation easement.

             c)    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.

            Background
          
          1) Background on CEQA.  

             a)    Overview of CEQA Process.  CEQA provides a process for  








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                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  
                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  








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                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) Background:  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 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  








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                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 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.
            
          Comments
          
          1) Purpose of Bill.  According to the author, "Water recycling  
             has the greatest potential to provide much needed water  
             resources in our state.  The problem many communities face  








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             when attempting to get the required infrastructure in the  
             ground, even when there is not much of an impact on 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 would help increase the accessibility of recycled water  
             for use by farms, industry or landscape irrigators, including  
             CalTrans; would reduce energy costs and environmental impacts  
             from importing water."

          2) Concerns regarding recycled water.  The author states, "Water  
             recycling has the greatest potential to provide much-needed  
             new water resources for communities throughout California.   
             The public and private sector, including agriculture, would  
             benefit greatly from the availability of more reclaimed  
             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:

             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  








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                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.

             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  








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                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 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, but as  
                noted by the author of this bill, the increase in usage is  
                being encouraged.

             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. 

          3) Is ignoring impacts prudent?  In addition to public health and  
             environmental impacts, there may be other significant impacts  
             that would not be addressed with an exemption as proposed by  
             this bill.  For example, such a pipeline exemption may  








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             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.  Eight miles of new pipeline carrying recycled  
             water may also have long-term, growth-inducing impacts.  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  
             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?  

          4) What kind of recycled water does this exemption apply?  This  
             bill exempts from CEQA the construction and installation of  
             recycled water pipeline.  The bill is silent on the nature/use  
             of recycled water, such as potable or nonpotable use, or the  
             degree/type of treatment to which this exemption applies.   
             Current law provides no definition of "recycled water" in  
             CEQA.  Recycled water is treated to a level that is  
             appropriate for its intended beneficial use.  For example,  
             recycled water for landscape irrigation water is treated at a  
             lower level than recycled water meant for indirect potable  
             use. Is it the intent of the authors for this exemption to  
             apply to recycled water for all beneficial uses or only  
             nonpotable ones? 

          5) SWRCB's recycled water policy and compliance with CEQA.   
             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  








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             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).

          6) 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  
             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 (ND) or 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. 

          7) EIGHT miles of pipeline?  To help put in perspective how long  
             eight miles of pipeline is, consider the following:  
              








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                        The City of San Francisco is seven miles from east  
                  to west.  This bill would allow for new pipeline to be  
                  built across the entire city plus an additional mile  
                  without an environmental review.  
                        The Golden Gate Bridge is 1.7 miles - Eight miles  
                  is the equivalent in distance to more than 4.5 Golden  
                  Gate Bridges placed end-to-end.   
                        Yosemite Valley stretches for 7.5 miles in a  
                  roughly east-west direction.  
                        The approximate distance between Santa Monica Pier  
                  and Beverly Hills Blvd. in Beverly Hills is eight miles.  
                        The length of 140.8 football fields placed  
                  end-to-end is equal to eight miles.   
              
             Taking into account the sheer distance of a project that would  
             have no environmental review pursuant to this bill, do the  
             ends justify the means?  Is it prudent to ignore up to eight  
             miles worth of potentially significant impacts?

          1) Segmenting a project.  Considering that AB 2438 exempts up to  
             eight miles of new pipeline, it is possible that this may be  
             part of a larger water recycling project.  CEQA requires that  
             a project must be treated and analyzed as a whole and not  
             segmented into multiple, individual projects.  So, for  
             example, if a new pipeline is connected to a new wastewater  
             facility, the AB 2438 proposed exemption would not apply - The  
             new pipeline cannot be segmented as a separate project and  
             must be considered as part of the project as a whole.   
           
          2) 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.









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          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  
               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,  
             including constructing up to eight miles of new pipeline, pose  
             challenges, risks, and serious consequences, such as the  
             potential for urban sprawl, that should be assessed and  
             subject to environmental review.

          1) CEQA litigation.

          It is not unusual for certain interests to blame CEQA lawsuits  
             for causing problems to a project.  However, it should be  
             noted that the only tool for enforcing CEQA is litigation.   
             Those citing CEQA litigation as a problem do not indicate the  








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             result of that litigation.  For example, were significant  
             impacts that were not evaluated in the initial document  
             ultimately addressed?  What would have been the result if  
             those impacts had not been mitigated (e.g., flooding, exposure  
             of people to hazards, inadequate public services, congestion)?

          The total number of CEQA cases filed averages about 200 cases per  
             year statewide and make up approximately 0.02% of 1,100,000  
             civil cases filed annually in California.  

          The California Attorney General's office conducted a case study  
             of CEQA challenges in the City and County of San Francisco  
             from July 2011 through December 2011 and found that 18  
             lawsuits were filed out of 5,203 projects considered under  
             CEQA. 

          According to the Natural Resources Defense Council, a review of  
             CEQA challenges in the City of Los Angeles from January 2011  
             through July 20, 2012, shows that of 1,182 projects reviewed  
             under CEQA, 18 were challenged, which is a litigation rate of  
             1.5%.

          Although certain interests believe CEQA litigation to be a  
             swathing impediment to some projects, the numbers above seem  
             to indicate otherwise.  And if a project is the subject of  
             litigation, perhaps the cause of action has merit and ensures  
             compliance with the law.  The volume of CEQA litigation is low  
             considering the thousands of projects subject to CEQA each  
             year as well as the volume of civil litigation in general  
             statewide.  

          2) 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 minimized  
             when feasible?  

          Considering the multiple issues raised above, the Committee may  








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             wish to consider if this bill adds significant enough benefit  
             to warrant the potential known significant harms.

            Related/Prior Legislation

          AB 1749 (Mathis) exempts from CEQA a water treatment project as  
          determined by the City of Porterville.  AB 1749 will be heard by  
          the Senate Environmental Quality Committee on June 29, 2016.

          SB 88 (Budget and Fiscal Review Committee, Chapter 27, Statutes  
          of 2015), 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 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:               

          American Council of Engineering Companies
          California Chamber of Commerce
          California Farm Bureau Federation
          Castaic Lake Water Agency
          City of Camarillo, Mayor Mike Morgan
          City of Santa Barbara, Mayor Helene Schneider
          County of Riverside








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          Grangetto Ranches, Inc.
          Mountain Counties Water Resources Association
          Rainbow Municipal Water District
          Rincon del Diablo Municipal Water District
          San Diego County Farm Bureau
          San Diego County Water Authority
          San Diego Unincorporated Communities Governmental Affairs  
                         Committee
          San Gabriel Valley Water Association
          Santa Margarita Water District
          South Coast Water District
          South Tahoe Public Utility District
          Southwest California Legislative Council
          Valley Center Municipal Water District
           
           OPPOSITION:    

          California League of Conservation Voters
          Sierra Club California  


           
                                           
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