BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                               Senator Wieckowski, Chair
                                 2015 - 2016  Regular 
           
          Bill No:           SB 240
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          |Author:    |Stone                                                |
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          |-----------+-----------------------+-------------+----------------|
          |Version:   |4/6/2015               |Hearing      |4/29/2015       |
          |           |                       |Date:        |                |
          |-----------+-----------------------+-------------+----------------|
          |Urgency:   |No                     |Fiscal:      |Yes             |
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          |Consultant:|Joanne Roy                                           |
          |           |                                                     |
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          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  






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             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.







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          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  







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             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?







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          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  







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             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  







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             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  







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             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  







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           SUPPORT:               
          None on file  
           OPPOSITION:    
          Sierra Club California 
                                           
                                       -- END --