BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                               Senator Wieckowski, Chair
                                 2015 - 2016  Regular 
           
          Bill No:            SB 1018
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          |Author:    |Liu                                                  |
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          |Version:   |2/11/2016              |Hearing      |4/6/2016        |
          |           |                       |Date:        |                |
          |-----------+-----------------------+-------------+----------------|
          |Urgency:   |Yes                    |Fiscal:      |Yes             |
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          |Consultant:|Joanne Roy                                           |
          |           |                                                     |
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          SUBJECT:  California Environmental Quality Act:  State Route 710  
          North Study

            ANALYSIS:
          
          Existing law:  
          
          1) Pursuant to the National Environmental Policy Act, 

             a)    Provides that "[i]f a cost-benefit analysis is relevant  
                to the choice among environmentally different alternatives  
                being considered for the proposed action, it shall be  
                incorporated by reference of appended to the statement as an  
                aid in evaluating the environmental consequences?." (40 Code  
                of Federal Regulations (CFR) 1502.23).

          2) Under the California Environmental Quality Act (CEQA), 

             a)    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.)

             b)    Authorizes economic or social information to be included  
                in an EIR or presented in whatever form the agency desires,  
                but specifies that economic or social effects of a project  







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                may not be treated as significant effects on the  
                environment.  (CEQA Guidelines §15131).

             c)    Requires the lead agency to evaluate comments on  
                environmental issues received from persons who reviewed the  
                draft EIR (DEIR) and prepare a written response; and  
                specifies that the written response must describe the  
                disposition of significant environmental issues raised (e.g.  
                revisions to the proposed project to mitigate anticipated  
                impacts or objections).  (CEQA Guidelines §15088).

          This bill:  

          1) Deems a specified cost-benefit analysis (CBA) prepared for the  
             State Route 710 North Study to be a technical study and  
             requires the CBA to be included in the draft environmental  
             impact report/environmental impact statement (DEIR/DEIS).

          2) Requires the lead agency to consider and respond to comments  
             regarding the CBA submitted during the public comment period  
             for the DEIR/DEIS.

          3) Requires the comments on the CBA and the lead agency's  
             responses to be deemed part of the record of proceedings for  
             purposes of CEQA. 

          4) Deems this bill an urgency statute.

            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.  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  







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             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.

          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.

          3) CEQA:  Economic and social effects not considered unless they  
             relate to physical changes.

          CEQA analysis looks at physical changes in the environment caused  
             by a project.  Economic and social effects are not considered  
             environmental effects but may be used to determine the  







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             significance of physical changes caused by the project.  When  
             an economic or social effect is not related to a physical  
             change in the environment, the evaluation of that effect is  
             generally treated as optional - agencies may, but are not  
             required to, evaluate them.

          4) CEQA: Public review period.

          Public participation is one of the fundamental purposes of CEQA.   
             The public review period is an opportunity for public  
             involvement in the environmental review process of a project  
             and serves several goals, including:  sharing expertise,  
             disclosing agency analysis, checking for accuracy, detecting  
             omissions, discovering public concerns, and soliciting counter  
             proposals.  The lead agency must respond to comments pertaining  
             to environmental issues in the draft environmental review  
             document.  Comments submitted orally or in writing become part  
             of the administrative record for the project and are responded  
             to in writing in the response to comments in the final  
             environmental review document. In general, the minimum public  
             review period for a DEIR is 30 days, and the maximum is 60  
             days; but may be extended for a longer amount of time by the  
             lead agency.  

          5) North State Route 710 (SR-710) project.

          SR-710 is a major north-south transportation link through Los  
             Angeles County.  SR-710 terminates at Valley Boulevard, and the  
             traffic coming off SR-710 continues on local streets within the  
             cities of Alhambra, South Pasadena, and Los Angeles causing  
             major traffic congestion.  The extension of the SR-710 project  
             has been in the planning stages for several decades.  A surface  
             freeway had been proposed, which led to the issuance of a  
             Record of Decision in 1998 by the Federal Highway  
             Administration (FHWA), but was rescinded by FHWA 2003 citing  
             changes in project circumstances such as funding uncertainty  
             and the opening of the Metro Gold line in Pasadena.  In 2006,  
             Caltrans and Metro conducted two tunnel feasibility assessments  
             to evaluate the feasibility of constructing a tunnel to  
             complete the planned SR-710 freeway route that would lessen the  
             potential impacts associated with a surface route.  The  
             assessments showed that a tunnel could be a feasible solution  
             and would warrant more detailed evaluation.  

          In March 2011, Caltrans published a Notice of Intent pursuant to  







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             NEPA and a Notice of Preparation under CEQA to initiate the  
             environmental review process for the "Interstate 710 North Gap  
             Closure" project.  For purposes of NEPA, the California  
             Department of Transportation (Caltrans) is the lead agency;  
             and, for purposes of CEQA, the Los Angeles County Metropolitan  
             Transportation Authority (Metro) is the lead agency for this  
             project.  

          An environmental review must describe a reasonable range of  
             alternatives to the project that could feasibly attain most of  
             the basic objectives and would avoid or substantially lessen  
             any of the significant environmental impacts of the proposed  
             projects.  The five alternatives being considered for this  
             project include:

                a)  No Build option that would leave conditions as they are.

                b)  A traffic management system to upgrade and synchronize  
                signals and improvements to local street intersections to  
                more quickly move traffic.

                c)  A rapid bus line featuring high frequency service with  
                minimal stops and potentially a dedicated bus lane.  The  
                proposed route is approximately 12 miles.

                d)  A 7.5-mile light rail line, including 3 miles of aerial  
                segments and 4.5 miles of bored tunnel segments, to carry  
                passengers between East Los Angeles and Pasadena.

                e)  A 6.3-mile freeway tunnel, of which 4.2 miles would be  
                completely underground, that would extend the SR-710.

             On March 6, 2015, the DEIR/DEIS was released and the public  
             review period for the document commenced.  On June 19, 2015,  
             Caltrans and Metro extended the public comment period for the  
             DEIR/DEIS until August 5, 2015.  By mid-August 2015, Caltrans  
             had received more than 2,500 letters.  The Final EIR/EIS has  
             yet to be certified.

             In June 2010, the Metro Board directed the chief executive  
             officer to conduct a parallel CBA concurrently with the  
             DEIR/DEIS.  The purpose of the CBA is to apply economic value  
             to each alternative in order to compare them in terms of  
             monetary costs and benefits.  On June 19, 2015, the CBA for the  
             SR-710 North study alternatives was released.  Caltrans states  







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             that the CBA will be considered in conjunction with the  
             information provided in the DEIR/DEIS during identification of  
             the preferred alternative.
            
          Comments
          
          1) Purpose of Bill.  

          According to the author:

               The saga of the highly controversial North State Route 710  
               project transcends over 50 years.  Caltrans, the lead agency  
               for NEPA, and Metro, the lead agency for CEQA, are trying to  
               conclude the long process of producing a joint EIR/EIS  
               evaluating construction of a tunnel and alternatives  
               including light rail, express bus, and transportation demand  
               management to address the local congestion, air quality, and  
               mobility issues the project is intended to relieve.  The  
               project study area includes Pasadena, South Pasadena,  
               Alhambra and the City of Los Angeles community of El Sereno.   
               There has been significant confusion surrounding the process  
               including confusion over the status of the Cost Benefit  
               Analysis (CBA) which has bearing on the feasibility of the  
               tunnel but is asserted by Metro to not be part of the  
               EIR/EIS.  SB 1018 is designed to bring clarity to the legal  
               status of the CBA so the public can meaningfully participate  
               in the Final EIR/EIS development and final decision processes  
               and be assured that their comments on the CBA will be  
               substantially addressed and considered.

          2) The Cost-Benefit Analysis (CBA).

          The "Analysis of Costs and Benefits for the State Route 710 North  
             Study Alternatives" (June 19, 2015) evaluates the following  
             factors:  travel time benefits, capital expenditures  
             (construction and right-of-way costs), vehicle operating costs,  
             system operations and maintenance costs, safety effects,  
             emissions effects, employment benefits, and residual values  
             that have a life of more than 20 years (the residual value for  
             assets such as tunnels and right-of-way).  Concerns have been  
             raised about the adequacy of the CBA such as the CBA may  
             overvalue and underprice the project.

          As noted by the lead agency, the CBA will be considered in  
             conjunction with the information provided in the DEIR/DEIS  







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             during identification of the preferred alternative.

          3) Is the CEQA review process the appropriate forum to address the  
             CBA?

          The purpose of CEQA is not to analyze economic effects or  
             considerations, but to analyze impacts on the physical  
             environment.  Comments and responses should focus on the  
             sufficiency of the document regarding the identification of  
             environmental impacts and methods to avoid or mitigate those  
             environmental impacts.  

          The author is concerned that without the bill, Metro and Caltrans  
             could disregard the cost-benefit aspects of the tunneling  
             alternative, stating, "It is possible they will not respond to  
             public comments on it, which were substantial."  However, CEQA  
             Guidelines specifies that the lead agency must evaluate and  
             respond to comments on environmental issues in the  
             environmental review.  For comments related to the CBA, the  
             lead agency would be required to respond to those comments only  
             to the extent that they relate to environmental issues;  
             otherwise, the comments are outside the scope of CEQA and would  
             be inappropriate to address in the environmental review.  

          In addition, in a staff report, Metro states, "Metro and Caltrans  
             are committed to responding to comments on the CBA.  Metro is  
             committed to an open and transparent process in its decision  
             making and we believe the CBA has a role in the fund decision  
             making process."

          A question arises as to whether the environmental review process  
             is the appropriate means for ensuring that Metro responds to  
             all comments related to the CBA.

          4) Too late in the environmental review process?

          This bill requires the lead agency to respond to comments  
             regarding the CBA submitted during the public comment period  
             for the DEIR/DEIS.  The comment period for the Draft EIR closed  
             approximately 8 months ago.  Is it reasonable to require the  
             lead agency to respond to oral comments in public hearings that  
             took place almost a year ago?  What if there are no recordings  
             of those hearings?  

          This bill limits responses to only comments received during that  







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             time.  The CBA was released in the middle of the comment period  
             and was not part of the DEIR/DEIS.  This bill would not provide  
             the same amount of time for public review and comment on the  
             CBA even though the bill would deem the CBA as part of the  
             DEIR/DEIS.  

          Also, is it fair to the public who did not provide comment on the  
             CBA during the public comment period knowing the CBA was not  
             part of the DEIR/DEIS at the time; and then change the rules  
             almost eight months after the opportunity to comment has  
             closed?  

          A question arises as to whether this bill provides the public  
             adequate opportunity to be heard after the fact.

          5) A different option to ensure that public concern about the CBA  
             is addressed.

          Public participation is an important element of governmental  
             decisionmaking.  The author seeks to make sure that public  
             comments to the CBA are responded to by Metro.  However, this  
             bill cannot fully realize this intent because CEQA limits  
             comments and responses to environmental issues - a CBA  
             considers economic concerns, not environmental effects of a  
             project.  Also, this bill does not provide the public adequate  
             or reasonable opportunity to comment on the CBA.  

          In order to ensure that Metro responds to comments on the CBA, and  
             due to the issues raised above, it would be prudent to address  
             this issue outside of CEQA and have a separate process for  
             addressing public comments on the CBA. The Committee may wish  
             to consider replacing the contents of SB 1018 with amendments  
             to require Metro to provide opportunities for public comment on  
             the CBA such as hold three noticed public hearings and provide  
             a 90-day, noticed public comment period.  The Committee may  
             also wish to require Metro to respond to those comments on the  
             CBA in a stand-alone document, which must be posted on its  
             website and considered by Metro prior to making a final  
             decision on the SR-710 project.


          DOUBLE REFERRAL:    

            If this measure is approved by the Senate Environmental Quality  
          Committee, the do pass motion must include the action to re-refer  







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          the bill to the Senate Transportation and Housing Committee.  
           


          SOURCE:                    Author  

           SUPPORT:               

          None received  

           OPPOSITION:    

          City of Monterey Park
          City of Rosemead
          City of San Gabriel
          City of San Marino  


           
                                           
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