BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 122 (Jackson) - California Environmental Quality Act:  record  
          of proceedings
          
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          |Version: April 20, 2015         |Policy Vote: E.Q. 5 - 1         |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: May 4, 2015       |Consultant: Marie Liu           |
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          This bill meets the criteria for referral to the Suspense File. 


          Bill  
          Summary:  SB 122 would require the Governor's Office of Planning  
          and Research (OPR) to implement a public database of all  
          environmental documents and notices required by the California  
          Environmental Quality Act (CEQA). This bill would also allow a  
          lead agency, upon request of a project applicant, to prepare the  
          record of proceeding concurrently with the administrative  
          process.


          Fiscal  
          Impact:  
           One-time costs of $200,000 from the General Fund to establish  
            the database at the Office of Technology, including necessary  
            training.
           Ongoing costs of $45,000 from the General Fund to the Office  
            of Technology to host and update the database. These costs may  
            be offset by savings to various special funds and the General  
            Fund for reduced administrative costs to state lead agencies.







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           One-time costs of $20,000 from the General Fund to OPR to  
            provide training for lead agencies on the new database.
           Unknown costs to state agencies, to the extent they are lead  
            agency under CEQA, to concurrently prepare the record of  
            proceeding (various special funds and General Fund). These  
            costs should be fully reimbursed by project applicants who  
            request the record of proceedings to be prepared concurrently  
            with the administrative process.


          Background:  CEQA provides a process for evaluating the environmental  
          effects of a project. Under CEQA, lead agencies with the  
          principal responsibility for carrying out or approving a  
          proposed discretionary project are required to prepare a  
          negative declaration, mitigated negative declaration, or  
          environmental impact report (EIR) for the project, unless the  
          project is exempt. The purpose of CEQA is to identify  
          significant environmental impacts, including impacts on  
          archaeological resources, and then mitigate those impacts to the  
          extent feasible.
          Under existing law, OPR is responsible for maintaining a public  
          clearinghouse of CEQA notices of exemption, preparation,  
          determination, and completion that must be available on the  
          internet. This clearinghouse is known as CEQAnet. 


          The concurrent preparation of the proceedings during the CEQA  
          environmental review process is not specifically prohibited  
          under existing law. However, existing law specifically allows  
          the concurrent preparation of documents, upon request of the  
          project application, for certain projects designated as  
          "environmental leadership development projects."




          Proposed Law:  
            This bill would require OPR to establish a complete database  
          of documents that would include both environmental documents as  
          well the various notices required by CEQA. Like the existing  
          clearinghouse, this database would be required to be available  
          to the public online. OPR would be explicitly authorized to  
          coordinate with another state agency to host and maintain the  
          database. OPR would also be authorized to phase in the use of  








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          the database by local and state agencies. 
          This bill would require OPR to develop a budget for the  
          development, hosting, and maintenance of the database which must  
          submitted to the Department of Finance for consideration and  
          approval.


          This bill would also explicitly authorize a lead agency to  
          concurrently prepare the record of proceedings with the  
          administrative process under CEQA upon request by the project  
          applicant. This bill would specify the process by which the  
          project applicant would make such a request and requires the  
          project applicant and lead agency to mutually agree on the terms  
          of the preparation. The project applicant would be required to  
          agree to pay all of the lead agency's costs of preparing and  
          certifying the record of proceeding in a manner specified by the  
          lead agency.




          Related  
          Legislation:  SB 731 (Steinberg, 2013), SB 37 (Perea, 2013), SB  
          984(Simitian, 2012), and AB 1570 (Perea, 2012) all proposed  
          explicit authorization for a lead agency to concurrently prepare  
          the record of proceedings. None of these measures were passed by  
          the Legislature.
          AB 900 (Buchanan and Gordon) Chapter 354, Statutes of 2011  
          authorized the concurrent preparation of the record of  
          proceedings for projects designated as an environmental  
          leadership development project.




          Staff  
          Comments:  CEQAnet is currently hosted by the University of  
          California, Davis at no charge to the state. However, the  
          database required by the bill would be a large expansion of  
          CEQAnet and would exceed the capacity of the arrangement with  
          UCD. Should this bill pass, OPR would work with the Office of  
          Technology (OTech) in the Government Operations Agency to host  
          and manage the expanded database. OTech estimates that they  
          would have one-time costs of $200,000 to move and upgrade  








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          CEQAnet. 
          OTech also estimates having ongoing costs of approximately  
          $45,000 annually to manage the database. Staff notes that the  
          ongoing cost is based on a database with more functionality than  
          is required by the bill, such as having the database linked to a  
          map. While these functions would certainly add to the usefulness  
          of the database, a more simplified and less expensive version of  
          the database seems to be possible.


          OPR also estimates one-time costs of $20,000 for to conduct  
          training and workshops for lead agencies on how to use the new  
          database.


          OPR notes that there would be savings to the state agencies,  
          particularly when acting as the lead agency, by having all CEQA  
          documents in one publically available database. OPR requested  
          that the California Research Bureau (CRB) gather information to  
          estimate the state's CEQA-related document management cost  
          savings if an online database held all CEQA-related documents,  
          as would be required under this bill. CRB estimated that there  
          would be at least $250,000 in annual savings due to reduced  
          clerical processing and handling of CEQA-related documents  
          spread among various state agencies with CEQA responsibilities.  
          This estimate is substantially higher if savings for materials,  
          supplies, and delivery services are also included. However, the  
          CRB notes that these may not all be true savings as few, if any,  
          state agencies have clerical staff exclusively dedicated to  
          CEQA-related document management. 


          The bill specifically requires OPR to submit a budget proposal  
          to the Department of Finance for review and consideration.  Staff  
          recommends  that this language be deleted as it unnecessarily  
          specifies that OPR comply with a required step in the budget  
          process.


          State agencies who are acting as lead agencies may also have  
          costs under this bill to concurrently prepare the record of  
          proceedings with the CEQA administrative process. This cost is  
          unknown because it is dependent on the number of project  
          applicants that request concurrent preparation and the scope of  








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          the project. However, the bill specifically requires the project  
          proponent to agree to pay all of the lead agency's costs  
          associated with the concurrent preparation.




          Recommended  
          Amendments:  On page 6, delete lines 36-39 and add Sen.  
          Hertzberg as a co-author, per author's request.





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