BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 892
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          Date of Hearing:   May 4, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 892 (Carter) - As Amended:  April 27, 2011 

          Policy Committee:                              
          TransportationVote:12-0 (Consent)

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:               

           SUMMARY  

          This bill,  as proposed to be amended  , modifies the sunset for 
          the two Caltrans program under which the department streamlines 
          the environmental review process for transportation projects by 
          assuming the federal government's review responsibilities under 
          the National Environmental Policy Act (NEPA).  Specifically, 
          this bill:

          1)Extends the sunset date, from January 1, 2012, to January 1, 
            2019, for Caltrans to continue assuming federal 
            responsibilities pursuant to the NEPA Delegation Pilot Program 
            authorized under the federal Safe Accountable, Flexible, 
            Efficient Transportation Equity Act: A Legacy for Users 
            (SAFETEA-LU).  

          2)Eliminates the sunset date so that Caltrans can indefinitely 
            continue to assume federal responsibilities under NEPA 
            pursuant to the Categorical Exclusion (CE) Assignment Program 
            authorized under SAFETEA-LU.

          3)Requires Caltrans to provide follow-up reports to the 
            Legislature-by January 1, 2015, and again by January 1, 
            2018-describing the program costs and benefits as specifically 
            required in currently law.
           
          FISCAL EFFECT  

          Annual ongoing staff costs in the range of $1 million resulting 
          from extending/eliminating the sunset dates. These costs are 
          likely more than offset by overall project savings related to 
          time savings for environmental reviews that would otherwise be 








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          done by the federal government.  (State Highway Account)

           COMMENTS  

           1)Background  . In 2005, SAFETEA-LU authorized states to assume 
            the Federal Highway Administration's NEPA responsibilities in 
            two ways.  The first was through the CE Assignment Program, 
            which allowed qualifying states on an ongoing basis to 
            determine if a transportation project qualifies for a CE, a 
            type of NEPA action that does not involve significant impacts. 


            The second program was the Pilot Program, which authorized 
            five states (including California) to apply to assume federal 
            authority for all other NEPA actions, such as Environmental 
            Impact Statements (EISs), which are typically produced for 
            larger, more complex projects. Unlike the CE Assignment 
            Program, the Pilot Program was offered only on a limited term 
            with the expiration of the program coinciding with the 
            expiration of SAFETEA-LU. Under both programs, the state is 
            required to enter into an MOU with the Federal Highway 
            Administration (FHWA) and agree to waive its 11th Amendment 
            sovereign immunity to be sued in federal court.

            AB 1039 (Nunez)/Chapter 31 of 2006, authorized Caltrans to 
            carry out the responsibilities assumed under NEPA until 
            January 1, 2009, and identified specific reporting 
            requirements. AB 2650 (Carter)/Chapter 248 of 2008 extended 
            this authority to January 1, 2012.

           2)Purpose  . According to the author, this bill (sponsored by 
            Caltrans) will allow the department to continue participating 
            in the CE assignment program indefinitely and to continue to 
            participate in the Pilot Program through what is expected to 
            be the duration of the new federal transportation bill. (As 
            expiration of SAFETEA-LU neared in 2010, Congress extended the 
            authorization by continuing resolution until August 2012.  
            Caltrans expects the new federal transportation bill to 
            contain a provision for the Pilot Program, however, if it does 
            not, the Pilot Program would end.

           3)Amendments  . The amendments simply modifies the reporting dates 
            to correct a drafting error in the bill.

           Analysis Prepared by :    Chuck Nicol / APPR. / (916) 319-2081 








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