BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                               Senator Wieckowski, Chair
                                 2015 - 2016  Regular 
           
          Bill No:            SB 1415
           ----------------------------------------------------------------- 
          |Author:    |Bates                                                |
           ----------------------------------------------------------------- 
          |-----------+-----------------------+-------------+----------------|
          |Version:   |2/19/2016              |Hearing      |4/6/2016        |
          |           |                       |Date:        |                |
          |-----------+-----------------------+-------------+----------------|
          |Urgency:   |No                     |Fiscal:      |No              |
           ------------------------------------------------------------------ 
           ----------------------------------------------------------------- 
          |Consultant:|Joanne Roy                                           |
          |           |                                                     |
           ----------------------------------------------------------------- 
          
          SUBJECT:  California Environmental Quality Act:  water projects:   
          exemption

            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 (PRC) §21000 et seq.)

          2) Exempts from CEQA during the drought state of emergency  
             proclaimed by the Governor on January 17, 2014, for a public  
             agency to mitigate drought conditions by building or expanding  
             a recycled water pipeline and related groundwater replenishment  
             infrastructure if it is within an existing right-of-way, does  
             not impact wetlands or sensitive habitat, and where the  
             construction impacts are fully mitigated.  This authority  
             remains operative until the state of emergency has expired or  
             until January 1, 2017, whichever occurs first.  (PRC  
             §21080.08).

          3) Exempts from CEQA the development and approval of building  
             standards by state agencies for recycled water systems until  
             July 1, 2017.  (PRC §21080.45).







          SB 1415 (Bates)                                         Page 2 of  
          ?
          
          

          4) Exempts from CEQA a local government's adoption of an ordinance  
             to limit or prohibit the drilling of new or deeper groundwater  
             wells, or to limit or prohibit increased extractions from  
             existing groundwater wells, through stricter conditions on the  
             issuance of well permits or changes in the intensity of land use  
             that would increase demand on groundwater.  Sunsets July 1,  
             2017, or so long as the state of emergency declared January 17,  
             2014, remains in effect.  (PRC §21080.46).











































          SB 1415 (Bates)                                         Page 3 of  
          ?
          
          

          This bill:  

          1)Exempts from CEQA a project that meets the following criteria:

             a)   The project is proposed by one or more public agencies, or  
               a combination of public agencies and private organizations,  
               for the purpose of mitigating drought conditions for which  
               the Governor has declared a state of emergency; and,

             b)    The project is drought-oriented and primarily intended to  
               provide, or preserve and maintain water to any degree or  
               quality:  
                   i)         Storage capacity; 
                   ii)        New, increased, or preserved production; or, 
                   iii)       Treatment.

          2)Provides that an exempt project that has commenced in any form  
            or to any degree will remain exempt regardless of whether the  
            state of emergency has ended.

          3)Provides that the term, "drought-oriented project" is to be  
            broadly interpreted.

          4)Provides that an exempted project cannot be combined with a  
            non-drought-oriented project for purposes of making both  
            projects exempt.

          5)Prohibits the separation of elements of a larger project, for  
            purposes of timely advancing of a project, from being deemed in  
            violation of the Public Contract Code.

            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  








          SB 1415 (Bates)                                         Page 4 of  
          ?
          
          
             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.

          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








          SB 1415 (Bates)                                         Page 5 of  
          ?
          
          
          
          1) Purpose of Bill.  

             The author states:

                 SB 1415 will avoid long delays for water storage projects  
                 due to the CEQA process and allow locals to act more  
                 quickly in dealing with water shortages during emergency  
                 drought conditions throughout California.  This committee  
                 has passed CEQA legislation in the past seeking to exempt  
                 or streamline the eminent domain process. Specifically in  
                 2013, the governor signed SB 743 to streamline the CEQA  
                 and eminent domain process to speed the development of a  
                 downtown arena for the Sacramento Kings. If streamlining  
                 CEQA is good enough for the Kings, why not for local water  
                 districts in located in other geographic regions?  
                 Similarly, the governor signed AB 83 X3 in 2009, providing  
                 a special exemption from CEQA for the construction of a  
                 new National Football League (NFL) sports complex within  
                 the city of Industry. Again, I support injecting capital  
                 and jobs into the Southern California economy, but why are  
                 we supporting just one or two localities in California and  
                 not helping address issues of local control throughout the  
                 state? I believe SB 1415 is a step in the right direction  
                 to aid our locals in times of an emergency drought in  
                 order to provide more water storage at times we need it  
                 most.

          2) What is lost with a CEQA exemption?

          It is not unusual for certain 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  








          SB 1415 (Bates)                                         Page 6 of  
          ?
          
          
               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, the total number of CEQA cases filed  
             averages about 200 cases per year statewide and make up  
             approximately 0.02% of 1,100,000 civil cases filed annually in  
             California.  The California Attorney General's office conducted  
             a case study of CEQA challenges in the City and County of San  
             Francisco from July 2011 through December 2011 and found that  
             18 lawsuits were filed out of 5,203 projects considered under  
             CEQA.  CEQA litigation is low considering the thousands of  
             projects subject to CEQA each year, as well as for the volume  
             of civil litigation in general statewide.

             In addition, those citing CEQA and CEQA litigation as a problem  
             do not indicate the result of that litigation.  Were  








          SB 1415 (Bates)                                         Page 7 of  
          ?
          
          
             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)?

          1) Sprawling exemption.

          SB 1415 specifies that the term, "drought-oriented project" is to  
             be broadly interpreted, which would provide an exemption from  
             CEQA for a vast array of projects, including very large and  
             controversial ones such as new dams.  This bill states that the  
             exemption applies to a project primarily intended to provide,  
             or preserve and maintain: storage capacity to any degree or  
             quality, production of water to any degree or quality, or  
             treatment of water to any degree or quality.  Ensuring an  
             adequate water supply is critical, particularly in times of  
             drought, but to bypass the environmental review process for any  
             project that may even be tangentially "drought-oriented" and be  
             hastily acted upon without the transparency, public  
             participation, and informed decisionmaking provided by CEQA is  
             highly questionable in terms of short- and long-term  
             consequences for public health, the environment, and land use  
             planning.

          2) Need for the bill?

          On January 17, 2014, Governor Brown signed a proclamation  
             declaring a drought State of Emergency in California.  The  
             Governor's Proclamation suspended CEQA to the extent that CEQA  
             otherwise would have applied to specified actions necessary to  
             mitigate the effects of the drought.  On April 25, 2014, the  
             Governor issued an Executive Order to redouble state drought  
             actions.  The Executive Order continued to suspend  
             environmental review required by CEQA to allow actions called  
             for in the proclamation to respond to the drought to take place  
             as quickly as possible. On December 22, 2014, the Governor  
             issued Executive Order B-28-14, which extended the waiver of  
             CEQA contained in the January 17, 2014 and April 25, 2014  
             Proclamations through May 31, 2016.  Last year, the Legislature  
             passed, and the Governor signed, SB 88 (Committee on Budget and  
             Fiscal Review, Chapter 27, Statutes of 2015), which included  
             tailored CEQA exemptions for the purpose of addressing the  
             drought.  








          SB 1415 (Bates)                                         Page 8 of  
          ?
          
          

          Considering the several CEQA-related actions mentioned above by  
             the Governor as well as the Legislature to address this  
             drought, the committee may wish to consider the need for this  
             bill.

            
          SOURCE:                    Author  

           SUPPORT:               

          Association of California Water Agencies
          California Chamber of Commerce
          Civil Justice Association of California
           
           OPPOSITION:    

          California League of Conservation Voters
          Planning and Conservation League
          Sierra Club California  

           
                                           
                                       -- END --