BILL ANALYSIS Ó SENATE COMMITTEE ON ENVIRONMENTAL QUALITY Senator Wieckowski, Chair 2015 - 2016 Regular Bill No: SB 240 ----------------------------------------------------------------- |Author: |Stone | ----------------------------------------------------------------- |-----------+-----------------------+-------------+----------------| |Version: |4/6/2015 |Hearing |4/29/2015 | | | |Date: | | |-----------+-----------------------+-------------+----------------| |Urgency: |No |Fiscal: |Yes | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant:|Joanne Roy | | | | ----------------------------------------------------------------- SUBJECT: California Environmental Quality Act: exemption: renewable energy projects on disturbed land ANALYSIS: Existing law: 1. Under the California Environmental Quality Act (CEQA), requires lead agencies with the principal responsibility for carrying out or approving a proposed discretionary 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). (Public Resources Code §21000 et seq.) 2. Creates the Local Government Renewable Energy Self-Generation Program, which authorizes a local government entity to receive a credit on their electric bill for power generated from a renewable energy facility that generates more energy than is needed to serve the electrical load of governmental entity owned or controlled site where the facility is located. (Public Utilities Code §2830 et seq.) This bill: 1. Exempts from CEQA specified renewable energy projects of limited duration on disturbed land, as defined, that meet specified requirements. 2. Defines "disturbed land" as real property that is any of the SB 240 (Stone) Page 2 of ? following: A. A brownfield; B. Property with at least 25% of the area covered by nonnative species; C. Property that was formerly used for agricultural or grazing purposes; or, D. Property that was historically used for timber harvesting or mining purposes. 3. Defines "limited durations" as not more than 25 years. 4. Defines a "renewable energy project" as a project with a generation capacity of not more than 25 megawatts and that will provide electrical service pursuant to the Local Government Renewable Energy Self-Generation Program. Background 1. CEQA: Environmental Review Process. CEQA provides a process for 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 (ND). If the initial study shows that the project may have a significant effect on the environment, then 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 an 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. SB 240 (Stone) Page 3 of ? 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. 2. 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, cultural resources, and tribal 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 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. Comments 1. Purpose of Bill. According to the author, "Throughout the state, we have programs that seek to protect land for a variety of reasons (e.g. endangered species protection, watershed value, sensitive habitats, parks and recreation, open space, etc.). While considerable effort and financial resources have been dedicated to land acquisitions, often lacking are the funds to provide management and restoration costs. Indeed, many of the acres acquired are not perfectly pristine, and often contain areas of significant degradation, invasive non-native species, soils contamination, or other issues. Senator Stone proposes a unique program to provide a new opportunity where a CEQA SB 240 (Stone) Page 4 of ? exemption could be used in order to facilitate renewable energy projects. These projects can be temporarily installed on degraded lands, and will contribute to the ultimate restoration of the land and generate a net benefit to the region, while also helping to meet the goals of our current and increasing renewable portfolio standards in the state." The author further states, "In partnership with San Diego State University, a pilot project is proposed that meets the goals of this project, provides cost savings to local governments on their electric bills, restored nearly 22 acres of habitat that is covered by eucalyptus forest (a highly invasive species and significant fire risk), and supports a long-term research study on how we can design renewable energy projects that integrate the principles of habitat compatibility and watershed management." 2. Maybe a Negative Declaration or Mitigated Negative Declaration Applies. The author states, "This bill seeks to create an efficient pathway by which renewable energy projects can efficiently navigate environmental review if (and only if) the underlying benefit is restoration and/or remediation." It may be noted that not all projects subject to CEQA are required to do an EIR. In fact, based on the number of documents submitted to the State Clearinghouse, data shows that most projects do not trigger an EIR. If the initial study shows that there would not be a significant effect on the environment, then the lead agency must prepare a ND. If the initial study shows potentially significant impacts but the applicant revises the project plan, which would avoid or mitigate those impacts, before the proposed ND and initial study are released for public review, then the lead agency must prepare a mitigated negative declaration (MND). These types of environmental reviews tend to be less expensive and time-consuming than an EIR. Perhaps, such a project as described in SB 240 would qualify for an ND/MND. However, if a project may have a significant impact, then an EIR must be prepared; and if this is the case, then is it not to the benefit of everyone concerned to make sure that the project is as environmentally sound as it can be? SB 240 (Stone) Page 5 of ? 3. What Is Lost With An Exemption From CEQA? It is not unusual for some interests to assert that a particular exemption will expedite construction of a particular type of project and reduce costs. This, however, frequently overlooks the benefits of adequate environmental review where lead and responsible agencies are legally accountable for their actions: 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. If a project is exempt from CEQA, certain issues should be addressed. For example: How can decisionmakers and the public be aware of impacts, mitigation measures, and alternatives of a project because of the exemption? Is it appropriate for the public to live with the consequences when a project is exempt and impacts may not be mitigated and alternatives may not be considered regarding certain matters, such as air quality, water quality, and noise impacts? Because adverse project impacts do not disappear when they are not identified and mitigated, does an exemption result in a direct transfer of responsibility for mitigating impacts from the applicant to the public (i.e., taxpayers) if impacts are ultimately addressed after completion of the project? If taxpayers, rather than the project applicant, are ultimately responsible for mitigating certain impacts of such a project after project completion, what assessments or taxes will be increased to fund mitigation or pay for alternatives at a later date? It is also not unusual for certain interests to blame CEQA lawsuits. However, according to a study on the issue, "Despite criticisms that CEQA often results in litigation, CEQA-related SB 240 (Stone) Page 6 of ? litigation is relatively rare." The study noted that the number of lawsuits to the number of CEQA reviews "yields an estimate of one lawsuit per 354 CEQA reviews." Those citing CEQA and CEQA litigation as a problem do not indicate the result of that litigation. 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)? Also, challenges to CEQA determinations must be commenced within an unusually short 30 days of an agency's filing of a notice of determination. In addition, no later than 20 days from the date of service upon a public agency, the public agency must file a notice with the court setting a time and place for all parties to meet and attempt to settle the litigation. 1. Is Ignoring Significant, and Possibly Permanent, Impacts by Renewable Energy Projects Prudent? Although increasing renewable energy usage is a laudable goal, renewable energy generation can sometimes have a negative impact on the environment. For example, wind turbines along Altamont Pass have generated clean electricity for decades but at the cost of killing thousands of birds, including American kestrels, burrowing owls (considered a Bird Species of Special Concern in California), golden eagles (listed as a fully protected species in California), and red-tailed hawks. Solar energy farms can threaten wildlife as well. In 2013, the National Fish and Wildlife Forensics Laboratory recovered 233 birds from the site of three solar power plants as part of a federal investigation and concluded that many of the birds had been fatally singed, broken, or otherwise fatally crippled by the facilities. ("Streamers" is a name given to birds as their feathers ignite, mid-air, after flying through a concentrated beam of sunlight.) One of the dead birds found was a Yuma clapper rail - fewer than 1,000 of this species are thought to still be alive. According to the investigation, much of the problem appears to lie in the "lake effect," in which birds and their insect prey can mistake a reflective solar facility for a water body, or spot water ponds at the site, then hone in on it. Because of the power of the lake effect, the federal SB 240 (Stone) Page 7 of ? report described such solar farms as "mega-traps." Also, renewable energy projects can displace terrestrial animals such as the threatened desert tortoise in the Mojave Desert where the sun shines more than 300 days each year, which is beneficial for producing solar energy. The examples above are not simply about the impact on that one type of animal, but rather entire ecosystems - analyzing and mitigating for the one species helps preserve the ecosystem of which it is a part. Under CEQA, a project's environmental impacts, such as the ones mentioned above, would be analyzed in order to avoid or mitigate the impacts. 2. "Renewable Energy". This bill defines "renewable energy project" as "a project with a generation capacity of not more than 25 megawatts and that will provide electrical service pursuant to Section 2830 of the Public Utilities Code." However, what is considered "renewable energy"? Is it limited to solar and wind, or does it include biomass and/or natural gas? The bill is unclear on the types of renewable energy generation that would be subject to this bill. 3. "Disturbed Land". SB 240 provides that the exemption may apply to renewable energy projects on "disturbed land," including, a brownfield, property with at least 25% of the area covered by nonnative species, property formerly used for agriculture or grazing, or property that was historically used for timber harvesting or mining. Such qualifications may be considered too broad. For example, none of these properties have a limit to how expansive they may be, such as a maximum number of acres. Although the renewable energy project is limited to 25 megawatts, the project may sit on a much more substantial piece of property with other ancillary activities on it that may have an impact on the environment, but would proceed without an environmental review. Also, "brownfields" is a broad term. As defined in 42 USC §9601, the term "brownfield site" means real property, the expansion, redevelopment, or reuse of which may be complicated by the SB 240 (Stone) Page 8 of ? presence or potential presence of a hazardous substance, pollutant, or contaminant" and includes a list of exclusions. A brownfield can be almost any piece of property, such as a residence with a septic tank, an agricultural field that has pesticides and herbicides used on it, or a gas station. In addition, if a property has 25% of the area covered by nonnative species, but 50% of the property is critical habitat for a state listed endangered species, then would it not be prudent to do an environmental review and avoid/mitigate for that significant environmental impact? 4. "Limited Duration". This bill provides that the exemption proposed applies to a "renewable energy project of limited duration" and defines limited duration as no more than 25 years. Solar panels and wind turbines typically last 20-25 years and can be replaced. For example, the Altamont Pass wind farm, which was commissioned in 1981, has been there for about 34 years, and is replacing nearly half of the smaller turbines with the expected completion date of sometime this year. 5. Immediate and Long-Term Benefits. The bill provides that the project must be designed to provide both "immediate benefit to ecosystem services, such as watershed function or habitat restoration, for the disturbed land during the first five years of the project and long-term benefits for the disturbed land." However, a benefit does not necessarily have to directly address a significant environmental impact. There are no standards or requirements placed on what is to be considered an "immediate benefit to ecosystem services" or the more ambiguous "long-term benefits" - the bill does not specify that the long-term benefits need to be environmental; those benefits could be for a variety of purposes such as financial, community, energy-related, or solely for the benefit of the property owner. Also, considering the bill does not specify what a "long-term benefit" is, it seems possible that a "long-term benefit" could include the continuance of a renewable energy project beyond the 25-year duration. SOURCE: Dr. Matt Rahn SB 240 (Stone) Page 9 of ? SUPPORT: None on file OPPOSITION: Sierra Club California -- END --