BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2577
                                                                  Page 1

          Date of Hearing:  May 7, 2012

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                AB 2577 (Galgiani) - As Introduced:  February 24, 2012
           
          SUBJECT  :  Environmental quality:  public comments

           SUMMARY  :  For purposes of the California Environmental Quality 
          Act (CEQA), provides that the lead agency does not have a duty 
          to consider, evaluate, or respond to comments received after the 
          close of the required public comment period for a draft 
          environmental impact report (EIR) or negative declaration.  
          Prohibits late-filed comments from being part of the 
          administrative record prepared for purposes of judicial review.

           EXISTING LAW  :

          1)Requires lead agencies with the principal responsibility for 
            carrying out or approving a proposed project to prepare a 
            negative declaration, mitigated negative declaration, or EIR 
            for this action, unless the project is exempt from CEQA.

          2)Requires lead agencies to provide specified notice of proposed 
            environmental documents, provide an opportunity to comment, 
            and respond to comments received during the public comment 
            period, which is generally 30-45 days.

          3)Authorizes judicial review of CEQA actions taken by public 
            agencies, following the agency's decision to carry out or 
            approve the project, subject to statutes of limitations 
            ranging from 30 to 180 days.

          4)Prohibits a person from filing a lawsuit challenging a CEQA 
            action unless the alleged grounds for noncompliance were 
            presented to the public agency by any person during the 
            required public comment period or prior to the close of the 
            public hearing on the project.

           FISCAL EFFECT  :  Non-fiscal

           COMMENTS  :

           1)Background.   CEQA provides a process for evaluating the 
            environmental effects of applicable projects undertaken or 








                                                                  AB 2577
                                                                  Page 2

            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.  
             
            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 
            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 noted above, CEQA includes procedures for public comment 
            for environmental documents, including draft EIRs and proposed 
            negative declarations.  Lead agencies are required to respond 
            to comments only if they are submitted during the public 
            comment period.  However, comments may be offered right up 
            until the last public hearing prior to lead agency decision, 
            and the issues can then be raised in litigation.  Late 
            comments can be used as a tactic to frustrate lead agency 
            decision-making and/or create issues for litigation.  On the 
            other hand, there can be legitimate reasons to file comments 
            after the close of the required comment period, such as when 
            others' comments or responses to comments reveal new 
            information, changes to the project, or corrections to the 
            draft EIR.  This bill raises an important question about how 
            late is too late for public participation in the CEQA process, 
            but it also begs a question about the point of a public 
            hearing to certify the EIR if the lead agency can completely 
            disregard public input provided at the hearing.

           2)Need for the bill.   According to the author:  

                In recent years an extra, unintended delay in the (CEQA) 
               process relative to public comments has developed that is 
               needlessly discouraging business expansion and job 
               creation.








                                                                  AB 2577
                                                                  Page 3


               Specifically, this procedural delay is the very late 
               submission of public comments to lead agencies - typically 
               after the public comment period was supposedly closed and 
               right before or even during the final hearing at which the 
               lead agency is supposed to make a final decision.

               These last minute comments put lead agencies in a difficult 
               position.  The lead agency has to make a quick judgment on 
               whether to make a decision as planned or postpone the whole 
               procedure and do more analysis.  The result is either 
               continual backlog and delay, or hasty decisions that may be 
               much more difficult to defend in court.

               These are not isolated instances in the CEQA process.

               Submitting last minute comments for the purpose of delaying 
               and stalling procedures has become a deliberate widespread 
               tactic by project opponents.  Although an existing statute 
               states a specific period for CEQA public comments, the 
               courts have nevertheless permitted litigants to rely on 
               late comments.

               This problem could simply be resolved with a 
               straightforward statute stating that a lead agency has no 
               duty to consider comments received after the existing 
               public comment period has expired.

           3)Proposed solution is one-sided.   Project opponents aren't the 
            only parties who may manipulate information in the CEQA 
            process to gain advantage.  Project proponents, who normally 
            have a distinct information advantage, can withhold 
            information to downplay the effects of their projects, as 
            illustrated by Chevron's proposed Richmond refinery upgrade.  
            In April 2010, the Court of Appeal upheld the trial court 
            decision setting aside the EIR for this project in Communities 
            for a Better Environment v. City of Richmond.  The court found 
            that the EIR's project description was inadequate as a matter 
            of law because it inconsistently and inaccurately described 
            the project.  The EIR at times stated that the project was 
            designed to allow more flexibility in processing streams of 
            crude oil, and at other times stated that the project would 
            not allow processing of heavier crude oil (which results in 
            greater emissions of pollutants).  The court particularly 
            noted that Chevron had stated in a filing with Securities and 








                                                                  AB 2577
                                                                  Page 4

            Exchange Commission that the purpose of the project was to 
            allow the processing of heavier crude.  By giving such 
            inconsistent descriptions, the court found the EIR project 
            description was fundamentally inadequate and misleading.  
            Because the lead agency was complicit in the applicant's 
            deception, it took litigation to discover the true nature of 
            the project and its environmental effects.

           4)Previous legislation.   When 226 (Simitian) was approved by 
            this committee on August 22, 2011, the bill included 
            amendments to address "document dumping."  SB 226 provided 
            that CEQA does not require a public agency to consider written 
            materials submitted after the close of the public comment 
            period, with specified exceptions for materials addressing new 
            information released after the close of the public comment 
            period, and permitted a lead agency to elect to ignore written 
            materials submitted after the close of the public comment 
            period and provided that such material shall not be raised in 
            judicial review.  This provision included a January 1, 2016 
            sunset. However, the document dumping amendments in SB 226 
            were removed in the Assembly Appropriations Committee due to 
            uniform opposition.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          American Association of Engineering Companies
          Association of California Water Agencies
          California Association of Realtors
          California Association of Sanitation Agencies
          California Building Industry Association
          California Business Properties Association
          California Chamber of Commerce
          California League of Food Processors
          California Retailers Association
          Commercial Real Estate Development Association
          Del Norte County Board of Supervisors
          Fullerton Chamber of Commerce
          Glenn County Board of Supervisors
          International Council of Shopping Centers
          Oxnard Chamber of Commerce
          Plumas County Board of Supervisors
          Regional Council of Rural Counties
          Siskiyou County Board of Supervisors








                                                                  AB 2577
                                                                  Page 5

          Southwest California Legislative Council
          Tehama County Board of Supervisors

           


          Opposition 
           
          Defenders of Wildlife
          Pechanga Tribe
          Planning and Conservation League
          Sierra Club California
          Viejas Band of Kumeyaay Indians

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