BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1846
                                                                  Page  1

          Date of Hearing:  April 12, 2010

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                AB 1846 (V. Manuel Perez) - As Amended:  April 5, 2010
           
          SUBJECT  :  CEQA:  expedited environmental review:  climate change  
          regulations.

           SUMMARY  :  Amends the California Environmental Quality Act (CEQA)  
          to expand the authorized use of a "focused" environmental impact  
          report (EIR) for installation of mandated pollution control  
          equipment also to include a pollution control project that  
          reduce greenhouse gas (GHG) emissions to comply with AB 32.

           EXISTING LAW  :

          1)Pursuant to CEQA:

             a)   Requires lead agencies with the principal responsibility  
               for carrying out or approving a proposed project to prepare  
               a negative declaration, mitigated negative declaration, or  
               EIR for this action, unless the project is exempt from  
               CEQA.  

             b)   Authorizes use of a "focused" EIR (an EIR that evaluates  
               potential impacts on a limited number of environmental  
               issue areas because a prior EIR has evaluated the full  
               range of impacts) for projects that consist solely of the  
               installation of pollution control equipment required by  
               specified agencies [i.e., Air Resources Board (ARB), local  
               air districts, state and regional water boards, Department  
               of Toxic Substances Control, and the Integrated Waste  
               Management Board].

          2)Pursuant to the California Global Warming Solutions Act (AB  
            32), requires ARB to adopt a statewide GHG emissions limit  
            equivalent to 1990 levels by 2020 and to adopt rules and  
            regulations to achieve maximum technologically feasible and  
            cost-effective GHG emission reductions.

           THIS BILL  :

          1)Indicates that the intent of the measure is to conform and  
            clarify, and not to supersede, existing law.








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          2)Amends CEQA to clarify that expedited review procedures for  
            projects to install mandated pollution control equipment,  
            including authority to utilize a focused EIR, apply to  
            projects that reduce GHG emissions to comply with AB 32.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :

           1)Background.   CEQA provides a process for evaluating the  
            environmental effects of applicable projects undertaken or  
            approved by public agencies.  If a project is not exempt from  
            CEQA, an initial study is prepared to determine whether the  
            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.

            In 1993, as part of a package of CEQA reforms, the Legislature  
            authorized the use of a "focused" EIR for specified projects,  
            including installation of pollution control equipment pursuant  
            to air, water, toxics, and waste regulations.  A focused EIR  
            expedites the review process by limiting the analysis to  
            project-specific significant effects that were not discussed  
            in the analysis of the underlying regulation.

           2)Purpose of the bill.   According to the author:

            A number of (AB 32) regulations will require many  
            California-based industries to make significant technological  
            investments on their facilities for the purposes of complying  








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            with AB 32.  California's existing environmental laws allow  
            state-regional water and air agencies to utilize a focused  
            (EIR) for projects seeking to install pollution control  
            equipment...There is nothing in current law that prescribes  
            this same flexibility for projects seeking to install  
            pollution control equipment?for the purposes of complying with  
            AB 32.    

           3)Proposed author's amendments.   The author's office has  
            indicated a desire to expand the list of state agencies whose  
            regulations may serve as the basis for a focused EIR for  
            purposes of the bill to include the California Energy  
            Commission and the California Public Utilities Commission.   
            The addition of these agencies appears consistent with the  
            intent of the bill.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Council for Environmental and Economic Balance  
          (sponsor)
          California Apartment Association
          California Business Properties Association
          California Chamber of Commerce
          California Forestry Association
          Southern California Edison

           Opposition 
           
          None on file

           Analysis Prepared by  :  Lawrence Lingbloom / NAT. RES. / (916)  
          319-2092