BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                 AB 81XXX|
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                                 THIRD READING


          Bill No:  AB 81XXX
          Author:   Hall (D), et al
          Amended:  As introduced
          Vote:     21

           
           ASSEMBLY FLOOR  :  54-18, 9/10/09 - See last page for vote


           SUBJECT  :    Land use:  City of Industry:  stadium complex

           SOURCE  :     Majestic Realty


           DIGEST  :    This bill waives environmental review and land  
          use planning requirements as they apply to a football  
          stadium project in the City of Industry.

           ANALYSIS  :    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, as defined, or to adopt a negative  
          declaration if it finds that the project will not have that  
          effect, unless the project is exempt from the act. CEQA  
          provides for various exemptions from its requirements.

          Existing law requires cities and counties to prepare,  
          adopt, and amend general plans containing specified  
          elements.

          This bill:
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          1.Exempts the stadium project and the City of Industry's  
            analysis and approval of that project from CEQA and from  
            any legal requirement concerning the content of a general  
            plan or consistency with a general plan. 

          2.Requires the stadium complex and associated development  
            to comply with mitigation measures contained in a  
            mitigation monitoring and reporting program adopted by  
            the City of Industry. 

          3.Provides that the provisions of the bill would apply  
            prospectively and retroactively to any litigation pending  
            at the effective date of this act.

           Background

           CEQA obligates public officials to consider the  
          environmental effects of their decisions.  The lead agency  
          that proposes to approve a project must conduct an initial  
          study to determine if the project may have significant,  
          adverse environmental effects.  If not, the lead agency  
          issues a negative declaration and, after a 30-day review  
          period, proceeds with its review and decision.  If the lead  
          agency finds minor effects that can be mitigated, it issues  
          a mitigated negative declaration and then proceeds. If the  
          lead agency finds that the effects of the project may be  
          significant, it prepares an environmental impact report  
          (EIR), a document that show public officials how to avoid  
          or mitigate the project's environmental effects. 

          Preparing the EIR begins when the lead agency sends notice  
          of preparation to other public agencies, soliciting advice  
          on the EIR's scope.  If the project is of statewide,  
          regional, or area-wide significance, the lead agency holds  
          a scoping meeting with the other agencies.  The lead agency  
          circulates its draft EIR and invites public comments during  
          a 45-day review period.  After this public review, the lead  
          agency issues a final EIR that responds to the comments  
          that it received.  After certifying the final EIR, the lead  
          agency files notice to allow the project to proceed. 

          CEQA allows a lead agency to prepare a supplemental EIR,  
          instead of a completely new EIR, to account for minor  







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          additions or changes to the project not covered in the  
          original EIR.  Conversely, substantial changes to a project  
          would require a lead agency to prepare a new EIR. 

          State law requires each county and each city to adopt a  
          general plan-a comprehensive document that states the  
          long-range development plans of the jurisdiction. General  
          plans must contain seven mandatory elements: land use,  
          circulation, housing, conservation, open space, noise, and  
          safety. General plans must be internally consistent,  
          meaning the various elements that make up a general plan  
          must not conflict with one another, and externally  
          consistent, meaning a jurisdiction's zoning codes and other  
          land use policies must not conflict with its general plan. 

          The City of Industry is small city within heavily urbanized  
          urban Los Angeles County. About 800 people live within the  
          city's 10 square-mile area.  The city is immediately  
          bordered by developed land in the cities of Diamond Bar, La  
          Puente, Pomona and Walnut, several Los Angeles County  
          communities, and the junction of several major freeways.   
          Most of the city's territory is zoned for industrial use,  
          with nearly all remaining land dedicated to commercial  
          activity. 

          In 2004, the city approved the Industry Business Center  
          Project, a 4.8 million square-foot project to include  
          industrial, office, and commercial uses.  Approval included  
          certification of the project's EIR. At that time, no one  
          challenged the EIR. 

          In 2008, the project's developer modified the 2004 project  
          proposal. As modified, the project would cover a smaller  
          area-just over 3 million square feet instead of the 4.8  
          million square feet in the original plan.  The project's  
          land uses also would substantially change to include a  
          football stadium and related facilities capable of seating  
          80,000 people and parking for 25,000 vehicles.  In response  
          to the changes to the proposed project, the city chose to  
          prepare a supplemental EIR-a document typically used to  
          reflect minor changes to a project not captured in an  
          EIR-rather than a wholly new EIR for the project. 

          Earlier this year, the City of Walnut filed suit against  







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          the City of Industry. Walnut's suit challenges the adequacy  
          of the review of the potential environmental effects of the  
          proposed stadium project.  Walnut expressed concern about  
          the noise, traffic, air quality and light effects of the  
          project, all of which might affect Walnut residents who  
          live near the project site. In addition, Walnut  
          specifically contends that the City of Industry: 

          1.Failed to adequately consult with Walnut in its  
            preparation of the supplemental EIR in violation of state  
            land use planning laws. 

          2.Chose to prepare a supplemental EIR for the revised  
            project rather than a project-specific EIR, in violation  
            of CEQA. 

          3.Failed to analyze in the supplemental EIR environmental  
            effects associated with the stadium project. 

           Comments
           
          The author and the City of Industry contend this bill will  
          allow construction of a major project-an NFL stadium and  
          other facilities-to move forward, thereby providing needed  
          jobs and other economic activity. Proponents described the  
          project as a "green" project that has received legally  
          adequate and extensive review of the project's potential  
          environmental effects.  The City of Walnut nonetheless has  
          filed suit to challenge the adequacy of the City of  
          Industry's review of the environmental effects of the  
          project.  Absent this bill, proponents argue, the project  
          will be delayed needlessly, possibly by several years, as  
          the courts resolve the legal challenges to the project.   
          Proponents fear such a delay will jeopardize the project's  
          financing and postpone the project's economic benefits. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Assembly Appropriations Committee, no  
          direct state costs, and potential indirect costs of an  
          unknown amount, but possibly in the millions of dollars, to  
          state and local agencies, such as Caltrans or local public  
          works departments, that undertake projects to mitigate the  







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          environmental effects of the stadium project to the extent  
          such mitigation measures are not included in the city's  
          mitigation and reporting program. 

           SUPPORT  :   (Verified  10/14/09)

          Majestic Realty (source)
          California Labor Federation
          California-Nevada Conference of Operating Engineers
          California State Council of Laborers
          California State Pipe Trades Council
          California Teamsters Public Affairs Council
          City of Industry
          International Brotherhood of Electrical Workers
          Los Angeles County Federation of Labor, AFL-CIO
          State Building and Construction Trades Council
          United Food & Commercial Workers
          UNITE HERE!  
           
           OPPOSITION  :    (Verified  10/14/09)

          American Lung Association
          American Planning Association California Chapter
          Breathe California
          California League of Conservation Voters
          City of Walnut
          Clean Water Action
          Coalition for Clean Air
          County of Los Angeles
          Defenders of Wildlife
          Environment California
          Heal the Bay
          Jerry Sanders, Mayor, San Diego
          June Wentworth, former Mayor of Walnut
          National Parks Conservation Association
          Natural Resources Defense Council
          Planning and Conservation League
          Sierra Club California

           ARGUMENTS IN SUPPORT  :    The City of Industry contends it  
          adequately identified and planned for mitigation of the  
          environmental effects associated with the stadium project  
          when it approved the EIR for the original industrial  
          project and the supplemental EIR.  The City of Walnut,  







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          however, disagrees and filed suit. Normally, a court would  
          evaluate the competing claims and rule accordingly, a  
          process that may take more than a year.  This bill  
          circumvents this process by waiving CEQA and state land use  
          requirements as they apply to the stadium project.   
          Proponents contend the jobs and economic activity the  
          stadium project would generate:  120,000 construction jobs,  
          6,700 permanent jobs, and over $760 million in annual  
          economic activity, according to the bill's sponsors-as well  
          as the city's previous environmental analysis, justify this  
          circumvention of the normal CEQA and land use litigation  
          process.

           ARGUMENTS IN OPPOSITION  :    Opponents contend that the  
          criteria this bill applies to the City of Industry stadium  
          project could be applied to other large-scale,  
          job-generating projects throughout the state.  If a waiver  
          is justified in the case of a stadium in the City of  
          Industry, then similar waivers also may be justified in  
          other pending development projects.  The County of Los  
          Angeles notes that, while there are many reasons to support  
          construction of an NFL-worthy football stadium in Los  
          Angeles County, there is also reason to insist that the  
          stadium project be subject to the same environmental  
          regulations applicable to most any other project in  
          California.  Hospitals, police stations, freeways and other  
          major infrastructure projects, the county observes, are  
          being built without CEQA exemptions.  
           

           ASSEMBLY FLOOR  :
          AYES:  Adams, Beall, Bill Berryhill, Tom Berryhill,  
            Blakeslee, Vacancy, Charles Calderon, Carter, Conway,  
            Cook, Coto, Davis, De La Torre, De Leon, Emmerson, Eng,  
            Evans, Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani,  
            Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill,  
            Huber, Jeffries, Jones, Knight, Lieu, Logue, Ma, Mendoza,  
            Miller, Nestande, John A. Perez, V. Manuel Perez,  
            Portantino, Ruskin, Silva, Smyth, Solorio, Audra  
            Strickland, Swanson, Torlakson, Torres, Torrico,  
            Villines, Bass
          NOES:  Anderson, Arambula, Block, Buchanan, Caballero,  
            Chesbro, DeVore, Feuer, Fletcher, Garrick, Huffman,  
            Monning, Nava, Niello, Nielsen, Salas, Saldana, Yamada







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          NO VOTE RECORDED:  Ammiano, Blumenfield, Brownley, Duvall,  
            Krekorian, Bonnie Lowenthal, Skinner, Tran


          DLW:nl  10/14/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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