BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2313
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          Date of Hearing:  April 19, 2010

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                   AB 2313 (Buchanan) - As Amended:  April 5, 2010
           
          SUBJECT  :  Greenhouse gas emissions:  significant effects

           SUMMARY  :  Provides that a project's greenhouse gas (GHG)  
          emissions are not subject to review under the California  
          Environmental Quality Act (CEQA) if the project meets specified  
          criteria.

           EXISTING LAW  :

          1)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.

          2)Pursuant to CEQA, requires a lead agency with the principal  
            responsibility for carrying out or approving a proposed  
            discretionary project to evaluate the environmental effects of  
            its action and prepare a negative declaration, mitigated  
            negative declaration, or environmental impact report (EIR).   
            If an initial study shows that the project may have a  
            significant effect on the environment, the lead agency must  
            prepare an EIR.  A lead agency must base its determination of  
            significant effects on substantial evidence.

          3)Requires the Office of Planning and Research and the Natural  
            Resources Agency to prepare, adopt and periodically update  
            guidelines for the mitigation of GHG emissions as required by  
            CEQA.

          4)Requires metropolitan planning organizations (MPOs) to include  
            sustainable communities strategies (SCS), as defined, in their  
            regional transportation plans (RTPs) for the purpose of  
            reducing GHG emissions, aligns planning for transportation and  
            housing, and creates specified incentives for the  
            implementation of the strategies (SB 375 (Steinberg), Chapter  
            728, Statutes of 2008).  Specifically, SB 375:

             a)   Requires ARB to appoint a Regional Targets Advisory  








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               Committee (RTAC) to recommend factors to be considered and  
               methodologies to be used for setting GHG emission reduction  
               targets for the affected regions.

             b)   Requires the RTP for specified regions to include an  
               SCS, as specified, designed to achieve certain goals for  
               the reduction of GHG emissions from automobiles and light  
               trucks in a region.

             c)   Requires that, if an SCS is unable to reach the ARB  
               target, the MPO must prepare an alternative planning  
               strategy (APS) to the SCS, as a separate document from the  
               RTP, showing how those GHG emission targets would be  
               achieved through alternative development patterns,  
               infrastructure, or additional transportation measures or  
               policies, as specified.

             d)   Requires that, after adoption, an MPO submit an SCS or  
               an APS, if one has been adopted, to ARB to accept or reject  
               the MPO's determination that the strategy submitted would,  
               if implemented, achieve the GHG emission reduction targets,  
               and requires ARB to complete its review within 60 days.

             e)   Requires certain transportation planning and programming  
               activities to be consistent with the SCS in order to obtain  
               funding, but states that transportation projects funded by  
               specified measures are not required to be consistent with  
               the SCS.

             f)   Specifies that, if a residential or mixed-use  
               residential project is consistent with the use designation,  
               density, building intensity, and applicable policies  
               specified for the project area in either an approved SCS or  
               APS, and if the project incorporates the mitigation  
               measures required by an applicable prior environmental  
               document, any findings or other determinations for an  
               exemption, a negative declaration, a mitigated negative  
               declaration, an EIR, or addenda prepared or adopted for the  
               project pursuant to CEQA shall not be required to  
               reference, describe, or discuss growth inducing impacts or  
               any project specific or cumulative impacts from cars and  
               light-duty truck trips generated by the project on global  
               warming or the regional transportation network.

           THIS BILL:  








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          1)Provides that a project's GHG emissions shall not be subject  
            to CEQA review, if the project meets one of the following  
            criteria:

             a)   The project complies with applicable provisions of a  
               local, regional, or statewide GHG emissions reduction plan.

             b)   The project adopts best performance standards for GHG  
               reductions, if those best performance standards have been  
               adopted by a public agency. For purposes of this section,  
               "best performance standards" are feasible means that are  
               achieved in practice for reducing or limiting GHG  
               emissions.

             c)   The project reduces project-specific GHG emissions by 30  
               percent from business-as-usual.

          2)Provides that the bill does not limit the application to  
            proposed projects of any other applicable laws, rules, or  
            regulations relating to GHG emissions or emissions reductions  
            or the authority of a local, state, or federal agency to  
            directly regulate GHG emissions under other statutory  
            authority.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :

          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.  A lead agency must base its determination  
          of significant effects on substantial evidence.

          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  








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          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.

          As directed by SB 97 (Dutton), Chapter 185, Statutes of 2007,  
          the Natural Resources Agency adopted amendments to the CEQA  
          Guidelines for greenhouse gas emissions on December 30, 2009.   
          The CEQA Guidelines (Section 15064.4) now provide guidance to  
          lead agencies for determining significant effects of GHG  
          emissions, but stop short of articulating a clear quantitative  
          standard.  As is common with CEQA, lead agencies have  
          discretion, bounded by the basic requirement that a lead agency  
          must base its determination of significant effects on  
          substantial evidence relevant to the project in question.

          While the author's intent to establish certainty and uniformity  
          for CEQA analysis of GHG emissions is a laudable goal, the three  
          alternative standards proposed in this bill are not certain, are  
          unlikely to be uniformly applied and appear to have practical  
          implementation problems:

           1)The project complies with applicable provisions of a local,  
            regional, or statewide GHG emissions reduction plan  - There  
            are no definitions or prevailing standards for such plans.   
            While ARB may articulate a statewide plan pursuant to ARB and  
            some regions may adopt a plan pursuant to SB 375, these may  
            not be relevant to every project subject to CEQA.   
            Furthermore, the standards and measures that might be included  
            in a local climate plan are completely unpredictable and may  
            not be relevant to the project in question in any event.

           2)The project adopts best performance standards for GHG  
            reductions that have been adopted by a public agency  -  
            Similarly, there are no definitions, prevailing standards, or  
            requirements for public agencies to adopt "best performance  
            standards."

           3)The project reduces project-specific GHG emissions by 30  
            percent from business-as-usual  - This standard, drawn from the  
            estimated statewide GHG emissions reduction necessary to meet  
            AB 32's 2020 limit, is impractical in that, for many typical  
            land use projects, there is no accepted method to measure GHG  








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            emissions at the project level with enough specificity to  
            determine business as usual minus 30 percent.  Assuming a  
            legitimate calculation could be made for a project, this  
            threshold may be too low for the long term considering the 30  
            percent reduction is a statewide cap for AB 32 purposes, and  
            is merely an interim target for 2020, while this bill proposes  
            to apply the standard to projects which will produce GHG  
            emissions well beyond 2020.

          In addition, there is no clear evidence that any of these  
          standards, if met by a project, would in fact reduce the effects  
          of GHG emissions to a level of insignificance.  In practice, the  
          standards are likely to be a new source of litigation and  
          uncertainty.  Thresholds of significance are not usually set in  
          statute.  The issue of GHG thresholds may be better addressed  
          through the public process of adopting revisions to the CEQA  
          guidelines, unless a more workable and less controversial  
          approach can be adopted by the Legislature.  If the committee  
          desires to approve this bill as a vehicle for negotiating such  
          an approach, it may wish to consider striking the current  
          provisions of the bill and replacing with the following:

                  SECTION 1.   It is the intent of the Legislature to  
               enact legislation regarding the determination of  
               significant effects resulting from greenhouse gas  
               emissions.
                  SEC. 2.  Section 21083.03 is added to the Public  
               Resources Code, to read:  
                  21083.03.  (a) On or after January 1, 2011, at the time  
               of the next review of the guidelines prepared and developed  
               to implement this division pursuant to subdivision (f) of  
               Section 21083, the Office of Planning and Research shall  
               prepare, develop, and transmit to the Secretary of the  
               Natural Resources Agency recommended proposed changes or  
               amendments to the guidelines implementing this division  
               regarding standards for determining significant effects  
               resulting from greenhouse gas emissions.
                  (b) Upon receipt and review, the Secretary of the  
               Natural Resources Agency shall certify and adopt the  
               recommended proposed changes or amendments prepared and  
               developed by the Office of Planning and Research pursuant  
               to subdivision (a).

           REGISTERED SUPPORT / OPPOSITION  :









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           Support 
          
          American Council of Engineering Companies
          Building Owners & Managers Association of California
          California Alliance for Jobs
          California Building Industry Association
          California Business Properties
          California Chamber of Commerce
          California Farm Bureau
          California Forestry Association
          California Major Builders Council
          California Retailers Association
          Commercial Real Estate Development Association
          Industrial Environmental Association
          Lumber Association of California & Nevada
          NAIOP of California
          Western States Petroleum Association

           Opposition 
           
          American Lung Association
          Bay Area Air Quality Management District
          Breathe California
          California League of Conservation Voters
          California Native Plant Society
          Center for Biological Diversity
          Coalition for Clean Air
          Communities for a Better Environment
          Defenders of Wildlife
          Environmental Defense Center
          Friends of the Earth
          Pacific Forest Trust
          Planning and Conservation League
          Sacramento Audubon Society
          Sierra Club California
          Union of Concerned Scientists
           

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