BILL ANALYSIS                                                                                                                                                                                                    �



                                                                 SB 52
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2011-2012 Regular Session
                                           
           BILL NO:    SB 52
           AUTHOR:     Steinberg
           AMENDED:    January 4, 2012
           FISCAL:     Yes                       HEARING DATE:  January 
           11, 2012
           URGENCY:    Yes                        CONSULTANT:     Randy 
           Pestor
            
           SUBJECT  :    CALIFORNIA ENVIRONMENTAL QUALITY ACT

            SUMMARY  :    
           
            Existing law  , under the Jobs and Economic Improvement Through 
           Environmental Leadership Act of 2011 (part of the California 
           Environmental Quality Act (CEQA)), sets procedures relating to 
           an "environmental leadership development project" (ELDP) 
           which:

           1) Provide definitions that:

              a)    Define an "applicant" to be a "public or private 
                 entity or its affiliates, or a person or entity that 
                 undertakes a public works project, that proposes a 
                 project and its successors, heirs, and assignees."  
                 (�21180(a)).

              b)    Define an ELDP to be one of the following 
                 (�21180(b)):

                    i)            A residential, retail, commercial, 
                         sports, cultural, entertainment, or recreational 
                         use project that is LEED certified (silver or 
                         better); achieves a 10% greater standard for 
                         transportation efficiency (as defined) than for 
                         comparable projects; located on an infill site; 
                         and, if within a metropolitan planning 
                         organization where a sustainable communities 
                         strategy or alternative planning strategy is in 
                         effect, is consistent with certain requirements 









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                         specified for that project in the strategy while 
                         meeting certain related requirements.

                    ii)           A clean renewable energy project that 
                         generates electricity exclusively through wind 
                         or solar, but not including waste incineration 
                         or conversion.

                    iii)          A clean energy manufacturing project 
                         that manufactures products, equipment, or 
                         components used for renewable energy generation, 
                         energy efficiency, or for production of clean 
                         alternative fuel vehicles.

              c)    Define "transportation efficiency" to be the number 
                 of vehicle trips by employees, visitors, or customers of 
                 certain types of land uses divided by the total number 
                 of employees, visitors, and customers.

           2) Prohibit the Act from applying to a project if the 
              applicant fails to notify a lead agency prior to release of 
              the draft EIR for public comment that the applicant is 
              electing to proceed pursuant to the Act.  The lead agency 
              must notify the Secretary of the Natural Resources Agency 
              if the applicant fails to provide this notice.  (�21181).

           3) Set procedures relating to the governor for an ELDP which:

              a)    Authorize a person proposing to construct an ELDP to 
                 apply to the governor for certification that the ELDP is 
                 eligible for streamlining under the Act.  The person 
                 must supply evidence and materials that the governor 
                 deems necessary to make a decision on the application, 
                 which must be made available to the public at least 15 
                 days before the governor certifies a project.  (�21182).

              b)    Authorize the governor to certify an ELDP for 
                 streamlining if certain conditions are met (e.g., 
                 project will result in a minimum investment of $100 
                 million; project creates high wage, highly skilled jobs 
                 that pay prevailing wages and living wages; project does 
                 not result in any net additional emission of greenhouse 










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                 gases, as determined by the State Air Resources Board; 
                 project applicant has entered into a binding and 
                 enforceable agreement that all mitigation measures will 
                 be conditions of project approval; project applicant 
                 pays Court of Appeal costs in hearing and deciding any 
                 case, including costs for appointment of a special 
                 master, and costs of preparing the administrative 
                 record).  (�21183).

              c)    Require the governor to make a determination that 
                 each of the above conditions (3 b) has been met prior to 
                 certifying a project, and these findings are not subject 
                 to judicial review.  If the governor determines that an 
                 ELDP is eligible for streamlining pursuant to the Act, 
                 that determination and any supporting information must 
                 be submitted to the Joint Legislative Budget Committee 
                 for review and concurrence or nonconcurrence.  The 
                 Committee must concur or nonconcur within 30 days of 
                 receiving the determination, and failure to concur or 
                 nonconcur on this determination within that period is 
                 deemed ELDP certified.  (�21184(a), (b)).

              d)    Authorize the governor to issue guidelines regarding 
                 application and certification of ELDPs under the Act, 
                 which are not subject to the Administrative Procedure 
                 Act.  (�21184(c)).

           4) Set procedures that apply to any action or proceeding 
              alleging that a public agency has approved or is 
              undertaking an ELDP certified by the governor in violation 
              of CEQA (�21185) which:

              a)    Require the action or proceeding to be filed in the 
                 Court of Appeal with geographic jurisdiction over the 
                 project.

              b)    Require any party bringing a claim to file 
                 concurrently any other claims alleging that a public 
                 agency has granted land use approvals for the ELDP in 
                 violation of the law.  The Court of Appeal must have 
                 original jurisdiction over these claims.











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              c)    Require the Court to issue its decision in the case 
                 within 175 days of the filing of the petition.

              d)    Authorize the Court to appoint a master to assist the 
                 Court in managing and processing the case.

              e)    Authorize the Court to grant extensions of time only 
                 for good cause shown and in order to promote the 
                 interests of justice.

           5) Set requirements for preparation and certification of the 
              administrative record for an ELDP certified by the 
              governor.  (�21186).

           6) Require the draft and final EIR to include a specified 
              notice in no less than 12-point type regarding the draft 
              and final EIR being subject to the Act.  (�21187).

           7) Provide that provisions of the Act are severable, and if 
              any provision or its application is held to be invalid, 
              that invalidity cannot affect any other provision or 
              application that can be given effect without the invalid 
              provision or application.  (�21188).

           8) Provide that nothing in the Act affects the duty of any 
              party to comply with CEQA, except as otherwise provided in 
              the Act.  (�21189).

           9) Prohibit the Act from applying to an ELDP if a lead agency 
              does not certify an EIR for an ELDP on or before June 1, 
              2014, and the lead agency must notify the Secretary of the 
              Natural Resources Agency by July 1, 2014, if an EIR subject 
              to the Act has not been certified by that date.  
              (�21189.1(a)).

           10)Provide that certification of the ELDP expires and is no 
              longer valid if, prior to June 1, 2014, a certification 
              issued pursuant to the Act has not been used or the time 
              period during which an action or proceeding filed under the 
              Act has not elapsed.  (�21189.1(b)).

           11)Require the Judicial Council to report to the Legislature 










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              on or before January 1, 2015, on the effects of the Act, 
              which must include, but not be limited to, a description of 
              the benefits, costs, and detriments of the certification of 
              ELDPs pursuant to the Act.  (�21189.2).

           12)Provide that the Act becomes operative only if SB 292 
              (Padilla) is enacted and takes effect on or before January 
              1, 2012.

           13)Contain related legislative intent.  (�21178).

           14)Sunset January 1, 2015.  (�21189.3).

            This bill  :

              1)   Provides a technical clarification to the definition 
                of "applicant," clarifies that the use must be designed 
                to be LEED silver or better, and provides that the 
                definition of "transportation efficiency" refers to 
                private automobile trips rather than vehicle trips.  
                (�21180).

              2)   Requires the lead agency to notify the Secretary of 
                the Natural Resources Agency if the applicant provides 
                notification, rather than fails to provide notification, 
                and corrects a cross reference.  (�21181).

              3)   Clarifies that the $100 million minimum project 
                investment is spent on planning, design, and project 
                construction; provides that priority for greenhouse gas 
                emission reductions occur on the project site and in 
                neighboring communities, and provides offset credit 
                procedures for these reductions; clarifies that special 
                master costs are not limited to appointment of the 
                special master; and makes other clarifying amendments.  
                (�21183).

              4)   Clarifies that procedures relating to an action or 
                proceeding alleging a violation of CEQA apply to the lead 
                agency, rather than a public agency, and strikes a 
                requirement to file concurrent claims; and authorizes the 
                court to order, rather than grant, extensions of time 










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                only for good cause.  (�21185).

              5)   Clarifies cross references in the specified notice 
                (�21187); revises the Judicial Council reporting 
                requirement to reference justice administration issues 
                rather than project certification issues (�21189.2); and 
                clarifies legislative intent to, among other things, 
                reference public projects (�21178).

            COMMENTS  :

            1) Purpose of Bill  .  According to the intent of the Jobs and 
              Economic Improvement Through Environmental Leadership Act 
              of 2011, enacted by AB 900 (Buchanan and Gordon) Chapter 
              354, Statutes of 2011, the Act "provides streamlining 
              benefits under CEQA for a limited period of time to put 
              people to work as soon as possible" and these projects 
              "present an unprecedented opportunity to implement 
              nation-leading innovative measures that will significantly 
              reduce traffic, air quality, and other significant 
              environmental impacts, and fully mitigate the greenhouse 
              gas emissions resulting from passenger vehicle trips 
              attributed to the project."

           The purpose of SB 52 is to clarify certain provisions of AB 
              900.

            2) Brief background on CEQA  .  CEQA provides a process for 
              evaluating the environmental effects of a project, and 
              includes statutory exemptions, as well as categorical 
              exemptions in the CEQA guidelines.  If a project is not 
              exempt from CEQA, an initial study is prepared to determine 
              whether a 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 










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              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.

           If a mitigation measure would cause one or more significant 
              effects in addition to those that would be caused by the 
              proposed project, the effects of the mitigation measure 
              must be discussed but in less detail than the significant 
              effects of the proposed project.

            3) Clarifying the Jobs and Economic Improvement Through 
              Environmental Leadership Act of 2011  .  When AB 900 was 
              heard and approved by the Senate Environmental Quality 
              Committee September 9, 2011 (5-1), authors of the bill 
              wanted to address certain issues in 2012 that were raised 
              regarding the bill.  For example, Assemblymembers Buchanan 
              and Gordon submitted a letter to the Journal September 9, 
              2011, regarding LEED certification, legislative intent 
              relating to public and private projects, and court orders 
              for extension of time.  SB 52 amendments clarify these 
              issues.

           SB 52 also responds to issues raised by others by, for 
              example, correcting cross references; clarifying 
              definitions; specifying priorities for greenhouse gas 
              emission reductions and providing for offset credits; 
              clarifying special master costs to be paid by the 
              applicant; and clarifying that the Act applies to an action 
              or proceeding alleging a violation of CEQA by the lead 
              agency.

            SOURCE  :        Senator Steinberg and Assemblymembers Buchanan 
                          and Gordon  

           SUPPORT  :       None on file.  

           OPPOSITION  :    None on file.  










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