BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   AB 499|
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                                 THIRD READING


          Bill No:  AB 499
          Author:   Hill (D)
          Amended:  6/18/09 in Senate
          Vote:     21

           
           SENATE ENV. QUALITY COMMITTEE  :  5-2, 6/22/09
          AYES:  Simitian, Corbett, Hancock, Lowenthal, Pavley
          NOES:  Runner, Ashburn

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8 

           ASSEMBLY FLOOR  :  47-30, 5/28/09 - See last page for vote


           SUBJECT  :     California Environmental Quality Act:  dispute

           SOURCE  :     Planning and Conservation League


           DIGEST  :    This bill revises California Environmental  
          Quality Act (CEQA) judicial review procedures to clarify  
          that only the recipients of a project approval identified  
          by the lead agency are the real parties in interest that  
          must be named by the plaintiff in an appeal of the lead  
          agency's decision.

           ANALYSIS  :    Existing law, under the 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  
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            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  
            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  







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            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
           
          According to the author's office, "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  
          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."

           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  







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          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.

           Background on Public Resources Code Section 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.,  







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          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."

           Responding to Governor's concerns  .  This bill seeks to  
          respond to the Governor's SB 68 veto message by:   a)  
          amending Public Resources Code Sections 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.

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

           SUPPORT  :   (Verified  6/29/09)

          Planning and Conservation League (source) 
          California Council for Environmental and 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


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







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            Villines
          NO VOTE RECORDED:  Chesbro, Evans, Hall


          TSM:nl  6/29/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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