Amended in Assembly June 21, 2016

Amended in Assembly May 19, 2016

Amended in Senate June 2, 2015

Senate BillNo. 734

Introduced by Senator Galgiani

February 27, 2015

An act to amend Sectionsbegin insert 21178,end insert 21181, 21183, 21189.1, and 21189.3begin delete ofend deletebegin insert of, and to add Section 21184.5 to,end insert the Public Resources Code, relating to environmental quality, and declaring the urgency thereof, to take effect immediately.


SB 734, as amended, Galgiani. Environmental quality: Jobs and Economic Improvement Through Environmental Leadership Act of 2011.

(1) The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.

The Jobs and Economic Improvement Through Environmental Leadership Act of 2011 authorizes the Governor, until January 1, 2016, to certify projects meeting certain requirements, including the requirement that the project creates high-wage, highly skilled jobs that pay prevailing wages and living wages, for streamlining benefits provided by that act. The act provides that if a lead agency fails to approve a project certified by the Governor before January 1, 2017, then the certification expires and is no longer valid. The act requires a lead agency to prepare the record of proceedings for the certified project concurrent with the preparation of the environmental documents. The act is repealed by its own terms on January 1, 2017.

This bill would extend the authority of the Governor to certify a project to January 1, 2018. The bill would provide that the certification expires and is no longer valid if the lead agency fails to approve a certified project before January 1, 2019. If a project is certified by the Governor, the bill would require contractors and subcontractors to pay to all construction workers employed in the execution of the project at least the general prevailing rate of per diem wages and would provide for the enforcement of this requirement. The bill would repeal the act on January 1, 2019. Because the bill would extend the obligation of the lead agency to prepare concurrently the record of proceedings, this bill would impose a state-mandated local program.

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This bill would, notwithstanding any other law, require a multifamily residential project certified pursuant to the act to provide private vehicle parking spaces that are priced and rented or purchased separately from dwelling units, except as provided.

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(2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

(3) This bill would declare that it is to take effect immediately as an urgency statute.

Vote: 23. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 21178 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
2amended to read:end insert



The Legislature finds and declares all of the following:

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P3    1(a) The overall unemployment rate in California is 12 percent,
2and in certain regions of the state that rate exceeds 13 percent.

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end delete

4begin insert(a)end insert The California Environmental Quality Act (Division 13
5(commencing with Section 21000) of the Public Resources Code)
6requires that the environmental impacts of development projects
7be identified and mitigated.

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end delete

9begin insert(b)end insert The act also guarantees the public an opportunity to review
10and comment on the environmental impacts of a project and to
11participate meaningfully in the development of mitigation measures
12for potentially significant environmental impacts.

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end delete

14begin insert(c)end insert There are large projects under consideration in various
15regions of the state that would replace old and outmoded facilities
16with new job-creating facilities to meet those regions’ needs while
17also establishing new, cutting-edge environmental benefits to those

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end delete

20begin insert(d)end insert These projects are privately financed or financed from
21revenues generated from the projects themselves and do not require
22taxpayer financing.

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24begin insert(e)end insert These projects further will generate thousands of full-time
25jobs during construction and thousands of additional permanent
26jobs once they are constructed and operating.

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end delete

28begin insert(f)end insert These projects also present an unprecedented opportunity to
29implement nation-leading innovative measures that will
30significantly reduce traffic, air quality, and other significant
31environmental impacts, and fully mitigate the greenhouse gas
32emissions resulting from passenger vehicle trips attributed to the

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35begin insert(g)end insert These pollution reductions will be the best in the nation
36compared to other comparable projects in the United States.

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38begin insert(h)end insert The purpose of thisbegin delete actend deletebegin insert chapterend insert is to provide unique and
39unprecedented streamlining benefits under the California
40Environmental Quality Act for projects that provide the benefits
P4    1described above for a limited period of time to put people to work
2as soon as possible.


begin deleteSECTION 1.end delete
begin insertSEC. 2.end insert  

Section 21181 of the Public Resources Code is
5amended to read:



This chapter does not apply to a project if the Governor
7does not certify the project as an environmental leadership
8development project eligible for streamlining pursuant to this
9chapter prior to January 1, 2018.


begin deleteSEC. 2.end delete
begin insertSEC. 3.end insert  

Section 21183 of the Public Resources Code is
12amended to read:



The Governor may certify a leadership project for
14streamlining pursuant to this chapter if all the following conditions
15are met:

16(a) The project will result in a minimum investment of one
17hundred million dollars ($100,000,000) in California upon
18completion of construction.

19(b) (1) The project creates high-wage, highly skilled jobs that
20pay prevailing wages and living wages and provide construction
21jobs and permanent jobs for Californians, and helps reduce
22unemployment. For purposes of this subdivision, “jobs that pay
23prevailing wages” means that all construction workers employed
24in the execution of the project will receive at least the general
25prevailing rate of per diem wages for the type of work and
26 geographic area, as determined by the Director of Industrial
27Relations pursuant to Sections 1773 and 1773.9 of the Labor Code.
28If the project is certified for streamlining, the project applicant
29shall include this requirement in all contracts for the performance
30of the work.

31(2) (A) If the project is certified pursuant to this chapter,
32contractors and subcontractors shall pay to all construction workers
33employed in the execution of the project at least the general
34prevailing rate of per diem wages.

35(B) Except as provided in subparagraph (C), the obligation of
36the contractors and subcontractors to pay prevailing wages pursuant
37to subparagraph (A) may be enforced by the Labor Commissioner
38through the issuance of a civil wage and penalty assessment
39pursuant to Section 1741 of the Labor Code, which may be
40reviewed pursuant to Section 1742 of the Labor Code, within 18
P5    1months after the completion of the project, or by an underpaid
2worker through an administrative complaint or civil action. If a
3civil wage and penalty assessment is issued, the contractor,
4subcontractor, and surety on a bond or bonds issued to secure the
5payment of wages covered by the assessment shall be liable for
6liquidated damages pursuant to Section 1742.1 of the Labor Code.

7(C) Subparagraph (B) does not apply if all contractors and
8subcontractors performing work on the project are subject to a
9project labor agreement that requires the payment of prevailing
10wages to all construction workers employed in the execution of
11the project and provides for enforcement of that obligation through
12an arbitration procedure. For purposes of this subparagraph,
13“project labor agreement” has the same meaning as set forth in
14paragraph (1) of subdivision (b) of Section 2500 of the Public
15Contract Code.

16(c) The project does not result in any net additional emission
17of greenhouse gases, including greenhouse gas emissions from
18employee transportation, as determined by the State Air Resources
19Board pursuant to Division 25.5 (commencing with Section 38500)
20of the Health and Safety Code.

21(d) The project applicant has entered into a binding and
22enforceable agreement that all mitigation measures required
23pursuant to this division to certify the project under this chapter
24shall be conditions of approval of the project, and those conditions
25will be fully enforceable by the lead agency or another agency
26designated by the lead agency. In the case of environmental
27mitigation measures, the applicant agrees, as an ongoing obligation,
28that those measures will be monitored and enforced by the lead
29agency for the life of the obligation.

30(e) The project applicant agrees to pay the costs of the Court of
31Appeal in hearing and deciding any case, including payment of
32the costs for the appointment of a special master if deemed
33appropriate by the court, in a form and manner specified by the
34Judicial Council, as provided in the Rules of Court adopted by the
35Judicial Council pursuant to Section 21185.

36(f) The project applicant agrees to pay the costs of preparing
37the administrative record for the project concurrent with review
38and consideration of the project pursuant to this division, in a form
39and manner specified by the lead agency for the project.

P6    1begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 21184.5 is added to the end insertbegin insertPublic Resources Codeend insertbegin insert,
2to read:end insert

begin insert

begin insert21184.5.end insert  

(a) Notwithstanding any other law, except as provided
4in subdivision (b), a multifamily residential project certified under
5this chapter shall provide unbundled parking, such that private
6vehicle parking spaces are priced and rented or purchased
7separately from dwelling units.

(b) Subdivision (a) shall not apply if the dwelling units are
9subject to affordability restrictions in law that prescribe rent or
10sale prices, and the cost of parking spaces cannot be unbundled
11from the cost of dwelling units.

end insert

begin deleteSEC. 3.end delete
begin insertSEC. 5.end insert  

Section 21189.1 of the Public Resources Code is
14amended to read:



If, prior to January 1, 2019, a lead agency fails to
16approve a project certified by the Governor pursuant to this chapter,
17then the certification expires and is no longer valid.


begin deleteSEC. 4.end delete
begin insertSEC. 6.end insert  

Section 21189.3 of the Public Resources Code is
20amended to read:



This chapter shall remain in effect until January 1,
222019, and as of that date is repealed unless a later enacted statute
23extends or repeals that date.


begin deleteSEC. 5.end delete
begin insertSEC. 7.end insert  

No reimbursement is required by this act pursuant to
26Section 6 of Article XIII B of the California Constitution because
27a local agency or school district has the authority to levy service
28charges, fees, or assessments sufficient to pay for the program or
29level of service mandated by this act, within the meaning of Section
3017556 of the Government Code.


begin deleteSEC. 6.end delete
begin insertSEC. 8.end insert  

This act is an urgency statute necessary for the
33immediate preservation of the public peace, health, or safety within
34the meaning of Article IV of the Constitution and shall go into
35immediate effect. The facts constituting the necessity are:

36In order to reauthorize the Governor to certify projects as
37environmental leadership development projects in 2016 and prevent
38a one-year gap in this authorization, it is necessary that this act
39take effect immediately.


Amended Date--Page 1.


Corrected 6-21-16—See last page.     96