BILL ANALYSIS                                                                                                                                                                                                    



                                                                AB 499
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2009-2010 Regular Session
                                           
           BILL NO:    AB 499
           AUTHOR:     Hill
           AMENDED:    June 18, 2009
           FISCAL:     Yes               HEARING DATE:     June 22, 2009
           URGENCY:    No                CONSULTANT:       Randy Pestor
            
           SUBJECT  :    CALIFORNIA ENVIRONMENTAL QUALITY ACT

            SUMMARY  :    
           
            Existing law  , under the California Environmental Quality Act  
           (CEQA):

           1) Requires a notice of determination (NOD) to be filed by a  
              state or local agency approving or determining to carry out  
              a project that is subject to CEQA, and authorizes a notice  
              of exemption (NOE) to be filed by a state or local agency  
              approving or determining to carry out a project.  State  
              agencies file the notices with the Office of Planning and  
              Research and local agencies file notices with the county  
              clerk.

           2) Requires a petitioner or plaintiff to name, as a real party  
              in interest, any recipient of an approval that is the  
              subject of an action or proceeding brought pursuant to  
              certain provisions of CEQA, and to serve the petition or  
              complaint on that real party in interest no later than 20  
              business days following service of the petition or  
              complaint on the public agency.

           3) Provides that failure to name potential persons, other than  
              those real parties in interest identified above, is not  
              grounds for dismissal.

           4) Provides definitions for certain terms.

            This bill  :

           1) Requires any recipient of approval to be identified in a  









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              NOD or NOE.

           2) Authorizes a court to dismiss the petition or complaint if  
              the petitioner or plaintiff fails to serve a recipient of  
              approval as identified in the NOD or NOE.  The court must  
              issue an order providing additional time for, and specify  
              the manner of, service of the recipient of approval if the  
              petitioner or plaintiff demonstrates to the court's  
              satisfaction that a good faith effort to effect service to  
              the recipient of approval has been made.

           3) Clarifies that failure to name potential persons (rather  
              than parties), other than those real parties in interest  
              identified above as identified by the public agency in its  
              NOD or NOE, is not grounds for dismissal.

           4) Defines "recipient of approval" to be the project applicant  
              on the date of final public agency action as identified in  
              the public agency's record of proceedings.

           5) Provides that the above amendments do not apply to a  
              proceeding for judicial review filed pursuant to certain  
              CEQA requirements and pending on or before December 31,  
              2009, or to an action for which a NOD or NOE was filed on  
              or before December 31, 2009, and the applicable law in  
              effect on that date must continue to apply to that  
              proceeding.

           6) Makes related technical and clarifying amendments.

            COMMENTS  :

            1) Purpose of Bill  .  According to the author, "In 2007, the  
              Court of Appeal declared in County of Imperial v. Superior  
              Court 152 Cal. App. 4th 13, that any person who, years  
              after project approval, claims to be a recipient of  
              approval can be considered an 'indispensable party' who  
              needed to be named in a CEQA lawsuit brought within 30 days  
              of project approval; failure to have named the party within  
              that 30-day period requires categorical dismissal of the  
              lawsuit.  Such dismissal is required, the Court held in  
              interpreting existing section 21167.6.5 of the Public  










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              Resources Code, even though the party not named had  
              asserted in both the administrative proceeding and in court  
              that it did not need the approval in question and did not  
              claim to be 'indispensable'."

           The author notes that "This bill would eliminate the current  
              inefficiencies by specifying that only those parties  
              actually identified in the lead agency's CEQA approval as a  
              recipient of that approval must be named.  If parties not  
              so named want to nonetheless participate in the litigation,  
              existing law allows them to intervene on their own  
              initiative."

            2) Brief background on CEQA  .  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, 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 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.










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            3) Background on Public Resources Code 21167.6.5  .  SB 1393  
              (Kuehl) Chapter 1121, Statutes of 2002, made various  
              revisions to CEQA, including requirements for naming a real  
              party in interest, serving the petition or complaint, and  
              providing certain agencies with notice of the action or  
              proceeding.  This provision also provides that failure to  
              name potential parties, other than those specified (  i.e.  ,  
              recipient of approval, certain agencies) is not grounds for  
              dismissal.

           AB 2814 (Simitian) Chapter 522, Statutes of 2004, clarified  
              that failure to name potential parties, other than those  
              identified real parties in interest (i.e., recipient of  
              approval), is not grounds for dismissal.

           SB 68 (Kuehl) of 2008 revised these procedures to require the  
              petitioner or plaintiff to name as a real party in  
              interest, any recipient of an approval as identified by the  
              public agency in its NOD or NOE.  If the petitioner or  
              plaintiff fails to serve any recipient of an approval  
              identified in the public agency's NOD or NOE, the petition  
              or complaint must be subject to dismissal on the motion of  
              any party interested in the proceeding.  Failure to name  
              potential persons other than those identified (i.e.,  
              recipient of approval), as identified in the NOD or NOE, is  
              not grounds for dismissal.  In vetoing SB 68, Governor  
              Schwarzenegger indicated that "it provides no clarification  
              on the meaning of [recipient of approval] and it is unclear  
              as to how lead agencies would comply with the requirements  
              of this bill."

            4) Responding to Governor's concerns  .  AB 499 seeks to respond  
              to the Governor's SB 68 veto message by:  a) amending  
              Public Resources Code 21108 and 21152 to require that  
              NODs and NOEs name the recipient of approval, b) defining  
              "recipient of approval," and c) clarifying the dismissal  
              provisions.

            SOURCE  :        Planning and Conservation League  

           SUPPORT  :       California Council for Environmental and  










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                          Economic Balance, California League of  
                          Conservation Voters, California Native Plant  
                          Society, California State Parks Foundation,  
                          Clean Water Action, Environmental Defense Fund,  
                          Natural Resources Defense Council, Sierra Club  
                          California  

           OPPOSITION  :    None on file