BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1444
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          Date of Hearing:  April 23, 2012

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                    AB 1444 (Feuer) - As Amended:  March 29, 2012
           
          SUBJECT  :  Environmental quality:  record of proceedings

           SUMMARY :  Requires the lead agency for a project reviewed under 
          CEQA to prepare and certify the record of proceedings 
          concurrently with the administrative process for certain 
          environmental documents.  For CEQA actions challenged in court, 
          requires the court to schedule a hearing regarding the record of 
          proceedings within 30 days of respondent's filing of the 
          statement of issues.

           EXISTING LAW  :

          1) Requires lead agencies with the principal responsibility for 
             carrying out or approving a proposed discretionary project to 
             prepare a negative declaration, mitigated negative 
             declaration, or environmental impact report (EIR) for this 
             action, unless the project is exempt from CEQA (CEQA includes 
             various statutory exemptions, as well as categorical 
             exemptions in the CEQA guidelines).

          2) Establishes requirements relating to preparation, review, 
             comment, approval and certification of environmental 
             documents, as well as procedures relating to an action or 
             proceeding to attack, review, set aside, void, or annul 
             various actions of a public agency on the grounds of 
             noncompliance with CEQA.  Challenges alleging improper 
             determination that a project may have a significant effect on 
             the environment, or alleging an EIR doesn't comply with CEQA, 
             must be filed in the Superior Court within 30 days of filing 
             of the notice of approval.  At the time an action or 
             proceeding is filed in court, the plaintiff must file a 
             request that the respondent public agency prepare the record 
             of proceedings, which must be served personally upon the 
             public agency no later than 10 business days from the date 
             the action or proceeding was filed.  The public agency must 
             prepare and certify the record no later than 60 days from the 
             date the request was made by the plaintiff.   Upon 
             certification the public agency must lodge a copy of the 
             record with the court.  The plaintiff may elect to prepare 








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             the record of proceedings or the parties may agree to an 
             alternative method of preparation of the record.  The courts 
             are required to give CEQA actions preference over all other 
             civil actions.  

          3) Establishes special procedures relating to an "environmental 
             leadership" project under the Jobs and Economic Improvement 
             Through Environmental Leadership Act (AB 900), which includes 
             requirements for preparation and certification of the 
             administrative record concurrently with the administrative 
             process and certain related requirements.

           THIS BILL :

          1) Provides procedures for a lead agency to prepare and certify 
             the record of proceedings concurrently with the 
             administrative process for environmental documents, and to 
             promptly post all documents on the Internet.

          2) Requires these procedures for any project upon the request of 
             the project applicant and agreement of the project applicant 
             to pay the lead agency's costs of preparation.

          3) For CEQA actions challenged in court, requires the court to 
             schedule a hearing within 30 days of respondent's filing of 
             the statement of issues at which the parties shall:

             a)    Identify any objections to the record of proceedings.

             b)    Agree upon a physical copy of those portions of the 
                record that the parties intend to refer to in their 
                briefs.

             c)    Provides that parties may refer to other portions of 
                the record if an appendix containing relevant portions of 
                the record is prepared and lodged.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :

           1)Background.   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 








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            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.

            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.  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.

            Generally, CEQA actions taken by local public agencies can be 
            challenged in Superior Court once the agency approves or 
            determines to carry out the project.  CEQA appeals are subject 
            to unusually short statutes of limitations.  Under current 
            law, court challenges of CEQA decisions generally must be 
            filed within 30-35 days, depending on the type of decision.  
            The courts are required to give CEQA actions preference over 
            all other civil actions.  However, the schedules for briefing, 
            hearing, and decision are less definite.  The petitioner must 
            request a hearing within 90 days of filing the petition and, 
            generally, briefing must be completed within 90 days of the 
            request for hearing.  There is no deadline specified for the 
            court to render a decision.

            In 2011, AB 900 and its companion measure, SB 292, established 
            expedited judicial review procedures for a limited number of 
            projects.  For AB 900, it was large-scale projects meeting 
            extraordinary environmental standards and providing 
            significant jobs and investment.  For SB 292, it was a 
            proposed downtown Los Angeles football stadium and convention 
            center project achieving specified traffic and air quality 
            mitigations.  For these eligible projects, the bills provided 
            for original jurisdiction by the Court of Appeal and a 
            compressed schedule requiring the court to render a decision 
            on any lawsuit within 175 days.  As part of their expedited 
            judicial review procedures, these bills required the lead to 
            prepare and certify the record of proceedings concurrently 
            with the administrative process and required the applicant to 
            pay for it.  It was commonly agreed that this would expedite 








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            preparation of the record for trial.  This bill applies that 
            concurrent record preparation process broadly to any project 
            under CEQA where the applicant agrees to pay the lead agency's 
            costs.  The bill further imposes a requirement on the courts 
            to hold a hearing regarding the record with a specified 
            deadline.

           2)Author's statement  :

               One of the issues posed in CEQA litigation is the 
               difficulty of coordinating and preparing the administrative 
               record in the context of the administrative process.  From 
               the lead agency and applicant's point of view, the process 
               of preparing the record once a CEQA challenge has been 
               filed is a costly, time-consuming process that necessarily 
               delays project implementation.  From the point of view of a 
               challenger of the environmental review process and/or 
               decision by the lead agency regarding certification of the 
               environmental documents, wading through the record provided 
               by the lead agency can also be costly and time-consuming. 

               For all parties to a CEQA lawsuit, the process of narrowing 
               the issues in dispute may be complicated by the size and 
               organization of the record, but also by the length of time 
               it takes to reach agreement on issues in dispute.  This 
               bill is intended to bring the parties together with 
               judicial oversight at an earlier stage of the litigation 
               process so that each side has more certainty about the 
               record of proceedings, and the litigation timeline is 
               reduced. 

               CEQA currently establishes a procedure for the preparation 
               and certification of the record of proceedings upon the 
               filing of an action or proceeding challenging a lead 
               agency's action on the grounds of noncompliance with CEQA.  
               This bill would require a lead agency to prepare a record 
               of proceedings concurrently with the administrative 
               process, streamlining the existing process for challenging 
               CEQA environmental documents for a project.  A challenger 
               may request preparation of the administrative record, which 
               shortens the time frame for resolving objections to the 
               record of proceedings. The result will be a more efficient 
               CEQA review process for litigants and the public.
                 
           3)Related legislation.   SB 984 (Simitian), which is pending in 








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            the Senate Appropriations Committee, and AB 1570 (Perea), 
            which passed this committee April 16 and is pending in the 
            Assembly Appropriations Committee, also establish procedures 
            for the preparation and certification of the record of 
            proceedings concurrently with the administrative process.  The 
            three bills all propose to add the same section (Public 
            Resources Code 21167.6.2), are duplicative, and contain minor 
            policy conflicts.  SB 984 and AB 1570 are essentially 
            identical and include some provisions that this bill lacks.  
            For example, SB 984 and AB 1570 include an exception from the 
            publication requirement for trade secret information, include 
            more detail regarding lead agency reimbursement, and mandate 
            the record preparation procedures for specified projects, 
            whereas this bill makes it the applicant's option for all 
            projects.  Finally SB 984 and AB 1570 sunset January 1, 2016.

           4)Hearing requirement may be impractical as proposed.   Judicial 
            Council has expressed concerns (not a formal position) 
            regarding this bill's hearing requirement (Section 3).  
            According to Judicial Council: 

               CEQA cases already have calendar preference under existing 
               statute. Adding new hearing requirements, combined with a 
               tight 30-day timeline, are unworkable and unrealistic for 
               the courts, especially in light of the devastating funding 
               cuts which courts have experienced (not enough judges, 
               staff layoffs and high vacancy rates, reduced clerk hours, 
               etc.).  The 30-day deadline for the hearing runs from the 
               filing of the statement of issues by the respondents and 
               real party in interest.  However, if the parties stipulate 
               to forgo filing the statement of issues, which is sometimes 
               the case, it would be unclear when the clock starts 
               ticking.

            These concerns may be remedied by making the hearing 
            requirement contingent upon request of a party and letting the 
            court determine the date of the hearing.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Manufacturers & Technology Association

           Opposition 








                                                                 AB 1444
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          None on file

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