BILL ANALYSIS                                                                                                                                                                                                    �






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: AB 892
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  carter
                                                         VERSION: 5/10/11
          Analysis by:  Art Bauer                        FISCAL:  yes
          Hearing date:  June 7, 2011



          SUBJECT:

          National Environmental Policy Act (NEPA) delegation to the 
          Department of Transportation (Caltrans)


          DESCRIPTION:

          This bill extends the sunset date from January 1, 2012 to 
          January 1, 2019 to waive the state's 11th amendment right to 
          sovereign immunity from lawsuits filed against Caltrans under 
          NEPA in order to allow Caltrans to continue its assumption of 
          NEPA responsibilities, requires Caltrans to prepare reports 
          analyzing the cost and benefits of the program and eliminates 
          the sunset date for the waiver of the state's 11th amendment 
          right to sovereign immunity lawsuits filed under NEPA.

          ANALYSIS:

          Under federal law, transportation projects in California that 
          use federal funds, require a federal permit, are proposed to be 
          built on federal land, or are jointly undertaken by a federal 
          agency are subject to environmental review under NEPA.  The 
          Federal Highway Administration (FHWA), on behalf of the U.S. 
          Department of Transportation (USDOT), has responsibility for 
          reviewing and approving NEPA documents prepared for federal-aid 
          highway projects proposed for construction in the state.  DOT 
          assumes liability for the project in the event lawsuits are 
          filed under NEPA.  

          The last federal transportation authorization act - the Safe, 
          Accountable, Flexible, Efficient Transportation Equity Act:  A 
          Legacy for Users (SAFETEA-LU) - established the Surface 
          Transportation Project Delivery Pilot Program (pilot program).  
          The pilot program designates California as one of five states 
          eligible to apply to participate in a multi-year program that 
          delegates to the state the responsibilities of USDOT and the 
          FHWA under NEPA.  The responsibilities delegated to the state 




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          are subject to the same procedural and substantive requirements 
          as if they were carried out by USDOT.  The delegation to the 
          state makes Caltrans the lead agency for environmental reviews 
          of projects covered by NEPA.  To participate in the program, the 
          state must accept the financial costs associated with this 
          delegated authority, as well as full liability for lawsuits 
          filed under NEPA in federal court, necessitating a limited 
          waiver of sovereign immunity. 

          In 2006, the Legislature passed AB 1039 (Nu�ez), Chapter 31, to 
          grant the necessary waiver until January 1, 2009.  Following the 
          Legislature's action, Caltrans entered into a memorandum of 
          understanding with FHWA to participate in the program effective 
          July 1, 2007.  AB 2650 (Carter) Chapter 248, Statutes of 2008 
          extended the pilot program as well as the 11th amendment waiver 
          to January 1, 2012. 

           This bill  :

             1.   Extends the sunset date from January 1, 2009 to January 
               1, 2012, waiving the state's 11th amendment right to 
               sovereign immunity from lawsuits filed under NEPA.

             2.   Requires Caltrans to prepare reports analyzing the costs 
               and benefits of participating in the program and to submit 
               the reports by January 1, 2015 and January 1, 2019.

             3.   Eliminates the sunset date for the limited waiver of the 
               11th amendment right to sovereign immunity from lawsuits 
               filed under NEPA for the federal Categorical Exclusion (CE) 
               Assignment program authorized by SAFETEA-LU.

          COMMENTS:

           1.Purpose  .  This bill continues California's participation in 
            the five state pilot program authorized by SAFETEA-LU to 
            demonstrate that delegating the authority for NEPA can 
            expedite project delivery in states such as California, which 
            has some of the most complex and environmentally sensitive 
            highway projects in the country. 

           2.Categorical Exclusion Assignment program  . By eliminating the 
            sunset date for CEs, the state permanently waives the 11th 
            amendment right to sovereign immunity for decisions of CE 
            projects.  CE projects do not involve individual or 
            cumulatively significant impacts to the environment.  




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            Typically, CE projects are within the existing right-of-way of 
            a highway and do not add roadway capacity.  The actions 
            covered by the CE do not induce significant impacts to planned 
            growth or land use for the area affected by a project.  In 
            addition, CEs do not require the relocation of people, do not 
            significantly impact any natural, cultural, recreational, 
            historic, or other resources.  Further, CEs do not involve 
            significant air, noise, or water quality impacts, and do not 
            impact travel patterns.  The cost of reviewing projects that 
            are candidates for the CE assignment program is small.  
            Lastly, litigation on CEs is very infrequent. 

           3.Impacts on Caltrans of managing pilot program  .  Caltrans 
            submitted a report on the impacts of the schedule for delivery 
            of highway projects last January, as required by AB 2650. 
            Caltrans reports:

               The analyses conducted for this report indicate that 
               NEPA environmental approvals under the Pilot Program 
               have taken substantially less time than before the 
               Pilot Program.  These time savings have been achieved 
               by eliminating one layer of government review formerly 
               conducted by FHWA and consolidating NEPA reviews with 
               Caltrans.  The analysis also shows that the time that 
               it takes to delivery Caltrans' projects has also been 
               substantially shortened. 

            By assuming responsibility for NEPA reviews under the 
            pilot program, as well as continuing its responsibility 
            under CEQA, environmental reviews for projects are 
            consolidated under one agency which provides clarity in 
            decision-making for the public and enhances departmental 
            efficiency. 

           4.Double Referral  . This bill is also referred to the 
            Environmental Quality Committee. 

          Assembly Votes:
               Floor:    77-0
               Appr: 17-0
               Trans:    12-0

          POSITIONS:  (Communicated to the Committee before noon on 
          Wednesday, 
                     June 1, 2011)





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               SUPPORT:  Caltrans (sponsor)
                         Automobile Club of Southern California 
                         California State Association of Counties
                         California State Automobile Association  
                         City of Fowler
                         City of Kingsburg
                         City of Merced
                         City of Selma
                         Fresno Council of Governments
                         Kern Council of Governments
                         League of California Cities
                         Monterey County Board of Supervisors
                         Orange County Transportation Authority
                         Professional Engineers in California Government 
                         San Diego Association of Governments 
                         Transportation Agency for Monterey County
                         Tulare County Association of Governments 
                         Ventura County Transportation Commission 

          
               OPPOSED:  None received.