BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 892|
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                                 THIRD READING


          Bill No:  AB 892
          Author:   Carter (D)
          Amended:  7/13/11 in Senate
          Vote:     21

           
           SENATE TRANSPORTATION & HOUSING COMMITTEE :  9-0, 6/7/11
          AYES:  DeSaulnier, Gaines, Harman, Huff, Kehoe, Lowenthal, 
            Pavley, Rubio, Simitian

           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  7-0, 7/6/11
          AYES:  Simitian, Strickland, Blakeslee, Hancock, Kehoe, 
            Lowenthal, Pavley

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 8/15/11
          AYES:  Kehoe, Walters, Alquist, Emmerson, Lieu, Pavley, 
            Steinberg
          NO VOTE RECORDED:  Price, Runner

           ASSEMBLY FLOOR  :  77-0, 5/16/11 (Consent) - See last page 
            for vote


           SUBJECT  :    National Environmental Policy Act delegation to 
          the 
                      Department of Transportation 

           SOURCE  :     Department of Transportation


           DIGEST  :    This bill extends the sunset date from January 
          1, 2012 to January 1, 2017 to waive the states 11th 
          amendment right to sovereign immunity from lawsuits filed 
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          against the Department of Transportation (Caltrans) under 
          the National Environmental Policy Act (NEPA) in order to 
          allow Caltrans to continue its assumption of NEPA 
          responsibilities.

           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 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:

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          1. Extends the sunset date from January 1, 2012 to January 
             1, 2017, waiving the state's 11th amendment right to 
             sovereign immunity from lawsuits filed under NEPA.

          2. Requires Caltrans to prepare a report analyzing the 
             costs and benefits of participating in the program and 
             to submit the report to the Legislature by January 1, 
             2016.

           Comments  

           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. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)
           
          Major Provisions                2011-12     2012-13     2013-14    
              Fund
           
          NEPA review staff costs       $750      $1,500$1,500      
          Special*


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          NEPA lawsuit liability        $50                 
          $100-$200$100-$200                            Special*

          Project delivery savingsunknown, potentially significant 
          savings   Special*
                              resulting from avoided construction 
          cost
                              escalation 

          *State Highway Account

           SUPPORT  :   (Verified  8/16/11)

          Department of Transportation (source)
          Alameda Corridor-East Construction Authority
          Associated General Contractors - The California Chapters
          Automobile Club of Southern California and AAA Northern 
          California
          California State Association of Counties 
          City of Fowler
          City of Kingsburg
          City of Merced - Office of the Mayor
          City of Selma
          Contra Costa Transportation Authority
          County of San Bernardino 
          Fresno Council of Governments
          Kern Council of Governments
          League of California Cities
          Metropolitan Transportation Commission
          Monterey County Board of Supervisors
          Orange County Transportation Authority 
          Professional Engineers in California Government 
          San Bernardino Associated Governments 
          San Diego Association of Governments 
          Transportation Agency for Monterey County
          Tulare County Association of Governments 
          Ventura County Transportation Commission 


           ASSEMBLY FLOOR  : 
          AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill 
            Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Butler, Charles Calderon, Campos, 
            Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, 

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            Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, 
            Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove, 
            Hagman, Halderman, Hall, Harkey, Hayashi, Roger 
            Hern�ndez, Hill, Huber, Hueso, Huffman, Jeffries, Jones, 
            Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mendoza, 
            Miller, Mitchell, Monning, Morrell, Nestande, Nielsen, 
            Olsen, Pan, Perea, V. Manuel P�rez, Portantino, Silva, 
            Skinner, Smyth, Solorio, Swanson, Torres, Valadao, 
            Wagner, Wieckowski, Williams, Yamada, John A. P�rez
          NO VOTE RECORDED: Gorell, Mansoor, Norby


          JJA:do  8/17/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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