BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 226
                                                                  Page  1

          Date of Hearing:   September 8, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                 SB 226 (Simitian) - As Amended:  September 6, 2011 

          Policy Committee:                             Natural 
          ResourcesVote:6-1
                       Agriculture                            5-0

          Urgency:     No                   State Mandated Local Program: 
          Yes    Reimbursable:              No

           SUMMARY  

          This bill establishes exemption and limits to environmental 
          review under the California Environmental Quality Act (CEQA) for 
          specified projects.  Specifically, this bill:

          1)Exempts from CEQA review the installation of a solar energy 
            system on the roof of an existing building or at an existing 
            parking lot.

          2)Defines "solar energy system" to include specified associated 
            equipment, meeting certain environmental and permitting 
            criteria, that might be located on the same parcel of the 
            building or, for equipment that connects the system to the 
            electrical grid or the emergency responder equipment, 
            immediately adjacent to the parcel or immediately adjacent to 
            the parcel and separated only by an improved right-of-way.

          3)Requires the Office of Planning and Research (OPR), by July 1, 
            2012, to develop and send to the Natural Resources Agency 
            proposed CEQA guidelines for statewide standards for the 
            review of infill projects that promote specified state 
            environmental, transportation and land use goals and requires 
            the Secretary of the Natural Resources Agency to certify and 
            adopt the guidelines by January 1, 2013.

          4)Provides that a project's greenhouse gas emissions shall not, 
            by themselves, cause the project to be ineligible for a 
            categorical exemption from CEQA review if the project complies 
            with regulations adopted to implement related statewide, 
            regional or local plans as provided in the CEQA guidelines.

          5)Establishes interim abbreviated CEQA review procedures for 






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            specified transit proximity projects, as specified.

          6)Provides that CEQA does not require a public agency to 
            consider written materials submitted after the close of the 
            public comment period, with exceptions for materials 
            addressing new information released after the close of the 
            public comment period and permits a lead agency to elect to 
            ignore written materials submitted after the close of the 
            public comment period and provides that such materials shall 
            not be raised in judicial review.

          7)Authorizes referral of a proposed action to adopt or 
            substantially amend a general plan to an adjacent local 
            government to be conducted concurrently with a scoping meeting 
            required by CEQA for a project of statewide, regional or 
            area-wide significance, and authorizes a local agency to 
            submit its comments on the proposed general plan action at a 
            CEQA scoping meeting. 

          8)Authorizes the owner of a proposed solar thermal powerplant to 
            petition the California Energy Commission, by June 30, 2012, 
            to review an amendment to an existing and certified permit 
            application to convert the proposed project to solar 
            photovoltaic technology if the owner filed the original 
            application with the commission after August 15, 2007. 

           FISCAL EFFECT  

          1)Potential costs in 2011-12 to OPR to develop CEQA guidelines 
            and to the Secretary to certify and adopt them.  If the work 
            of OPR is part of the normal CEQA guideline development 
            process then costs will be minor and absorbable.  If, however, 
            the work happens outside of the normal CEQA guideline 
            development process then OPR will face one-time costs of as 
            much as $150,000, equivalent to one staff member.  (General 
            Fund or special funds.) 

          2)Minor, absorbable costs the Energy Commission to review 
            amendments to qualifying applications for solar thermal 
            powerplants.   (Special fund.)

           COMMENTS  

           1)Rationale.   The author contends the harm caused by the severe 
            economic recession, particularly to the construction industry, 
            necessitates actions, entailed by this bill, to expedite 
            construction projects that, pursuant to existing statute, seek 






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            to integrate land use planning, transportation investments and 
            climate policy. 

           2)Background.
           
              a)   The California Environmental Quality Act  .  CEQA 
               obligates public officials to consider the environmental 
               effects of their decisions.  The lead agency that proposes 
               to approve a project must conduct an initial study to 
               determine if the project may have significant, adverse 
               environmental effects.  If not, the lead agency issues a 
               negative declaration and, after a 30-day review period, 
               proceeds with its review and decision.  If the lead agency 
               finds minor effects that can be mitigated, it issues a 
               mitigated negative declaration and then proceeds.  If the 
               lead agency finds that the effects of the project may be 
               significant, it prepares an environmental impact report 
               (EIR), a document that show public officials how to avoid 
               or mitigate the project's environmental effects.   
           
               Preparing the EIR begins when the lead agency sends notice 
               of preparation to other public agencies, soliciting advice 
               on the EIR's scope.  If the project is of statewide, 
               regional, or area-wide significance, the lead agency holds 
               a scoping meeting with the other agencies.  The lead agency 
               circulates its draft EIR and invites public comments during 
               a 45-day review period. 

               After this public review, the lead agency issues a final 
               EIR that responds to the comments that it received.  After 
               certifying the final EIR, the lead agency files notice to 
               allow the project to proceed.

               CEQA allows a lead agency to prepare a supplemental EIR, 
               instead of a completely new EIR, to account for minor 
               additions or changes to the project not covered in the 
               original EIR.  Conversely, substantial changes to a project 
               would require a lead agency to prepare a new EIR.

              b)   SB 375 (Chapter 726, Statutes of 2008, Steinberg)   
               requires metropolitan planning organizations to (i) include 
               sustainable communities strategies in their regional 
               transportation plans to reduce greenhouse gas emissions, 
               (ii) align planning for transportation and housing and 
               (iii) create incentives for the implementation of the 
               strategies.  







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          3)Support.   At the time this analysis was prepared, the 
            committee had not received any formal notification of support 
            for this bill.  

          4)Opposition.   This bill is opposed by the California Chamber of 
            Commerce, the California Building Industry Association and 
            other industry groups, who contend the bill's provisions 
            providing limited CEQA exemptions for infill projects make it 
            impossible for any infill project to qualify for the 
            exemption.  
           
           Analysis Prepared by :    Jay Dickenson / APPR. / (916) 319-2081