BILL ANALYSIS                                                                                                                                                                                                    



                                                               AB 1846
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2009-2010 Regular Session
                                           
           BILL NO:    AB 1846
           AUTHOR:     V. Manuel Perez
           AMENDED:    April 14, 2010
           FISCAL:     Yes               HEARING DATE:     June 14, 2010
           URGENCY:    No                CONSULTANT:       Randy Pestor
            
           SUBJECT  :    CALIFORNIA ENVIRONMENTAL QUALITY ACT

            SUMMARY  :    
           
            Existing law  , under expedited environmental review procedures  
           for environmental mandated projects under the California  
           Environmental Quality Act (CEQA):

           1) Provides that these procedures apply to the following state  
              entities:  The State Air Resources Board (ARB), air  
              pollution control district or air quality management  
              district, State Water Resources Control Board, regional  
              water quality control boards, Department of Toxic  
              Substances Control, and California Integrated Waste  
              Management Board (CIWMB).  (Public Resources Code  
              21159.4).

           2) Requires certain agencies to perform an environmental  
              analysis of reasonably foreseeable methods of compliance  
              when adopting a rule or regulation requiring installation  
              of pollution control equipment, or a performance standard  
              or treatment requirement.  The analysis must include an  
              analysis of:  a) the reasonably foreseeable environmental  
              impacts of the methods of compliance, b) reasonably  
              foreseeable feasible mitigation measures, and c) reasonably  
              foreseeable alternative means of compliance with the rule  
              or regulation.  (21159).

           3) Authorizes a focused Environmental Impact Report (EIR) to  
              be used for a project consisting solely of the installation  
              of pollution control equipment required by a rule or  
              regulation if certain conditions are met.  (21159.1)  
            









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           This bill :

           1) Revises the list of state entities subject to the above  
              provisions by repealing a reference to the CIWMB and adding  
              a reference to the Department of Resources Recycling and  
              Recovery, as well as adding the California Energy  
              Commission (CEC) and California Public Utilities Commission  
              (PUC) for rules and regulations adopted pursuant to the  
              California Global Warming Solutions Act of 2006 (CGWSA).

           2) Requires the specified environmental analysis to also apply  
              to a rule or regulation requiring installation of pollution  
              control equipment or a performance standard or treatment  
              requirement, under the CGWSA.  The analysis must also  
              include reasonably foreseeable greenhouse gas (GHG)  
              emission impacts of the methods of compliance for a rule or  
              regulation adopted pursuant to the CGWSA.

           3) Authorizes a focused EIR to also be used for a project that  
              reduces GHGs to comply with a rule or regulation adopted  
              pursuant to the CGWSA.

            COMMENTS  :

            1) Purpose of Bill  .  According to the author, "To ensure  
              timely compliance with California's climate change  
              regulations, AB 1846 (V. M. Perez) allows state-regional  
              water and air agencies the discretion to utilize a focused  
              [EIR] for projects seeking to install pollution control  
              equipment or that propose to change their raw material  
              formulations to a more sustainable product for the purposes  
              of complying with AB 32.  This bill also expands the list  
              of state agencies which can use these focused EIR  
              provisions to also include the [CEC] and the [PUC].

           The author notes that "Potential projects may include: energy  
              efficiency projects, diesel heater/boiler replacements to  
              steam generators, combined heating and cooling, tank  
              infrastructure upgrades to comply with the low carbon fuel  
              standard (LCFS), as well as the replacement of natural gas  










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              compressors to electric compressors."

           Finally, according to the author, "AB 1846 (V.M. Perez) seeks  
              to conform AB 32 regulations to existing law, assist in the  
              reduction of California's GHG emissions, and spur job  
              creation at projects seeking to upgrade technologically."

            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.

            3) Master EIRs, focused EIRs and expedited review for certain  
              projects  .  AB 1888 (Sher) Chapter 1131, Statutes of 1993,  
              amended and added various provisions of CEQA, including  
              provisions for master EIRs, focused EIRs, and expedited  
              environmental review for certain "environmentally mandated  










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              projects."  A master EIR may be prepared for certain  
              projects, allowing for limited review of subsequent  
              projects described in the master EIR.  A focused EIR is an  
              EIR on a subsequent project identified in a master EIR.

           AB 1888 also established procedures for "environmentally  
              mandated projects" for certain state agencies requiring  
              certain analysis for rules and regulations requiring  
              installation of pollution control equipment, and allowing  
              focused EIRs for pollution control equipment required by  
              rules or regulations under certain conditions.  AB 1846  
              revises the list of state entities subject to these  
              provisions, adds CGWSA-related projects subject to these  
              provisions, and revises the type of analysis required for  
              rules and regulations subject to these provisions.

            4) Clarification needed  .  Clarification is needed to:  a)  
              ensure that references in this bill to a rule or regulation  
              under the CGWSA or all projects reducing GHGs under the  
              CGWSA instead refer to a rule or regulation requiring the  
              installation of pollution control equipment required under  
              the CGWSA; b) on page 3, lines 11 and 12, strike out "the  
              methods of compliance identified as required by this  
              section" and insert "compliance with the rule or  
              regulation"; c) on page 4, line 26, strike out "The" and  
              insert "A"; and d) on page 4, lines 30 to 34, clarify  
              references to PUC rules.

            SOURCE  :        California Council for Environmental and  
                          Economic Balance  

           SUPPORT  :       American Council of Engineering Companies,  
                          Association of Environmental Professionals,  
                          California Apartment Association, California  
                          Business Properties Association, California  
                          Chamber of Commerce, California Forestry  
                          Association, California Special Districts  
                          Association, California State Council of  
                          Laborers, Chambers of Commerce Alliance,  
                          Greater Riverside Chambers of Commerce,  
                          Regional Council of Rural Counties, Santa  
                          Barbara County, Southern California Edison   










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           OPPOSITION  :    None on file