BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 973|
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                                 THIRD READING


          Bill No:  SB 973
          Author:   Vargas (D), et al.
          Amended:  5/2/12
          Vote:     21

           
           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  7-0, 4/23/12
          AYES:  Simitian, Strickland, Blakeslee, Hancock, Kehoe, 
            Lowenthal, Pavley

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 5/24/12
          AYES:  Kehoe, Walters, Alquist, Dutton, Lieu, Price, 
            Steinberg


           SUBJECT  :    Environmental Quality Act exemption:  limited 
          duration 
                      events

           SOURCE :     San Diego Regional Chamber of Commerce


           DIGEST  :    This bill allows a lead agency to grant an 
          annual firework display an exemption from the California 
          Environmental Quality Act (CEQA) subject to limitations.  
          This bill enables the Office of Planning and Research (OPR) 
          to evaluate issues related to firework displays and to 
          develop guidelines to assist local agencies in addressing 
          and mitigation impacts from these displays.  This bill also 
          specifies it would not affect the resolution of an action 
          or proceeding filed before January 1, 2013.

           ANALYSIS  :    CEQA requires a lead agency, as defined, to 
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          prepare, or cause to be prepared, and certify the 
          completion of, an environmental impact report (EIR) on a 
          project that it proposes to carry out or approve that may 
          have a significant effect on the environment or to adopt a 
          negative declaration if it finds that the project will not 
          have that effect.  CEQA also requires a lead agency to 
          prepare a mitigated negative declaration for a project that 
          may have a significant effect on the environment if 
          revisions in the project would avoid or mitigate that 
          effect and there is no substantial evidence that the 
          project, as revised, would have a significant effect on the 
          environment.  CEQA exempts certain specified projects from 
          its requirements.

          This bill allows a lead agency to grant a CEQA exemption to 
          an annual firework display.  A lead agency would be 
          restricted to offering one exemption per year for a 
          specific public site or venue.  This bill also allows OPR 
          to evaluate issues related to firework displays and to 
          develop guidelines to assist local governments in 
          addressing and mitigating impacts of a firework display 
          event and developing ordinances for such events.

          This bill will not affect the resolution of an action or 
          proceeding filed before January 1, 2013, alleging a public 
          agency is undertaking, or has granted approval for, a 
          fireworks display in violation of CEQA.

          This bill also allows OPR to evaluate issues related to 
          events that include fireworks displays and identify 
          potential environmental issues relating to fireworks 
          displays, including air and water quality, debris, display 
          duration and timing, fire hazards, and wildlife.  Based on 
          this evaluation, OPR may develop guidelines to assist local 
          agencies in both of the following:  (1) addressing and 
          mitigating impacts at an event that includes fireworks 
          displays, and (2) developing ordinances for events that 
          include fireworks displays.

           Background  

           San Diego litigation  .  San Diego requires a Parks Use 
          Permit, which is intended to be a ministerial permit, for 
          certain public facility events.  The city's Special Events 

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          Permit for certain other organized activities is considered 
          a discretionary permit.  CEQA applies to discretionary 
          projects.  The Court held that a decision to issue a Park 
          Use Permit is not ministerial because the city's ordinance 
          gives the Park and Recreation Department leeway in 
          determining whether to issue the permit due to such factors 
          as congestion or interference with vehicular or pedestrian 
          traffic.  The Court issued an order staying enforcement of 
          the order.  San Diego has revised Park Use Permit and 
          Special Events Permit requirements so that the Park Use 
          Permit is ministerial, and a fireworks event is subject to 
          the Park Use Permit and not subject to the Special Events 
          Permit.

          The Court has not issued a final judgment in the initial 
          Coastal Environmental Rights Foundation (CERF) case since 
          San Diego revised the Park Use Permit and Special Events 
          Permit requirements in response to the Court's proposed 
          order regarding the stay on enforcement of the judgment.  
          This initial case is referred to as "CERF I" because the 
          plaintiff subsequently challenged San Diego on the alleged 
          practice of not complying with CEQA for (1) the practice of 
          issuing Special Events permits ("CERF II"), (2) the first 
          set of permit ordinance amendments and the exception of 
          fireworks displays from the Special Events ordinance ("CERF 
          III"), and (3) the second set of ordinance amendments 
          relating to the Park Use Permit and setting capacity 
          thresholds for fireworks displays ("CERF IV").

           Related Legislation  

          AB 206 (Harkey, 2011), which failed in the Assembly Natural 
          Resources Committee, would have exempted a municipal 
          fireworks display from the California Coastal Act of 1976 
          and CEQA.  According to the Assembly Natural Resources 
          Committee analysis of AB 206, the Court of Appeal held that 
          a fireworks display in Gualala produces both solid and 
          gaseous waste in the coastal zone and is a "development" 
          under the Coastal Act, requiring a coastal development 
          permit.  The Commission required a coastal development 
          permit for a 2008 fireworks display sponsored by the 
          Gualala Festivals Committee (GFC) that was situated near 
          the Gualala River estuary and Gualala Point Island.  The 
          committee analysis notes that "The Commission cited a 2006 

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          report on fireworks displays prepared by the National 
          Oceanic and Atmospheric Administration, National Marine 
          Fisheries Service, and Monterey Bay National Marine 
          Sanctuary that analyzed how portions of certain firework 
          devices containing chemicals fall back to the ground or 
          water during displays."

          According to the committee analysis, "The Commission did 
          not invoke the 'temporary event' exception under the 
          Coastal Act because it had evidence that the planned 
          fireworks display would have significant adverse impacts 
          upon coastal resources.  Specifically, the Bureau of Land 
          Management and the federal Fish and Wildlife Service issued 
          a report after a similar fireworks display conducted by GFC 
          in 2007.  The report explained that the 2007 fireworks 
          display caused a visible effect on nesting seabirds on 
          Gualala Point Island.  A significant number of these birds 
          abandoned their nests as a result of the fireworks display, 
          leaving eggs and chicks behind to die."  The analysis also 
          noted that the 2008 GFC fireworks display is the only 
          fireworks related event against which the Commission 
          obtained a cease-and-desist order; the Commission rarely 
          asserts its authority over fireworks displays, and has 
          worked cooperatively with fireworks display organizers at 
          Seacliff State Beach, Morro Bay, and Sea World.  GFC made 
          no attempt to file a coastal development permit and simply 
          notified the Commission a few months before the event.

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

          According to the Senate Appropriations Committee, there 
          would be a one-time cost pressure of approximately $50,000 
          to the General Fund for the evaluation of the impacts of 
          firework displays and the development of associated 
          guidelines.

           SUPPORT  :   (Verified  4/23/12) (per Senate Environmental 
          Quality Committee analysis - unable to reverify at time of 
          writing)

          San Diego Regional Chamber of Commerce (source) 
           American Council of Engineering Companies of California
          Bay Area Council

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          Brea Chamber of Commerce
          California Alliance for Golf
          California Chamber of Commerce
          California Hotel & Lodging Association
          California Outdoor Recreation Partners
          California Park & Recreation Society
          California State Club Association
          California Travel Association
          City of Folsom Parks & Recreation District Director Robert 
          Goss
          City of Orangevale Recreation & Park District
          City of San Diego
          City of Vista
          College Area Business District
          County of San Diego
          Donate Life California
          Fireworks & Stage FX America
          Indio Chamber of Commerce
          Kern County Board of Supervisors
          La Jolla Fireworks Foundation
          Los Angeles Area Chamber of Commerce
          Los Angeles County Economic Development Corporation Member 
            Lari Sheehan
          North Bay Leadership Council
          North Orange County Legislative Alliance
          Ocean Beach Main Street Association Executive Director 
          Denny Knox
          Orange County Business Council
          Orangeville Recreation and Park District Administrator Greg 
          A. Foell
          Rancho Simi Recreation and Park District Chair Kathleen 
          O'Brien
          Roseville Mayor Pauline Roccucci
          San Diego Armed Services YMCA Board of Management Member 
            Lari Sheehan
          San Diego Regional EDC
          San Francisco Chamber of Commerce
          San Gabriel Valley Economic Partnership
          San Jose Silicon Valley Chamber of Commerce
          Sheraton San Diego Hotel & Marina General Manager Scott 
          Hermes
          Signal Hill Mayor Larry Forester
          Silicon Valley Leadership Group
          Simi Valley Chamber of Commerce

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          Solano Avenue Association
          Southwest Riverside County Legislative Council
          State Park Partners Coalition
          Susan G. Komen for the Cure (seven California Affiliates)

           OPPOSITION  :    (Verified  4/23/12) (per Senate 
          Environmental Quality Committee analysis - unable to 
          reverify at time of writing)

          California League of Conservation Voters
          California Coastal Protection Network
          California Native Plant Society
          Coastal Environmental Rights Foundation
          Planning and Conservation League
          Sierra Club California

           ARGUMENTS IN SUPPORT  :    The bill's sponsor, San Diego 
          Regional Chamber of Commerce, is concerned about recent 
          litigation relating to the permitting of a Fourth of July 
          fireworks show at La Jolla Cove by the City of San Diego, 
          and is seeking a broad CEQA exemption for a "limited 
          duration event."  According to the sponsor, "CEQA has been 
          subject to litigation from exploitive attorneys who seek to 
          distort CEQA's original intent, as seen in the May 2011 
          court case, Coastal Environmental Rights Foundation v. City 
          of San Diego.  Recently, the Superior Court of California 
          ruled that temporary special event and park use permits 
          issued by the City of San Diego are subject to CEQA 
          review."

           ARGUMENTS IN OPPOSITION  :    According to opponents that 
          note current exemptions under CEQA for events, "In the 
          rare, limited, and fact-specific situation in which a park 
          use or special event would cause irreparable damage to the 
          environment, CEQA review may be desirable.  For example, a 
          fireworks show over a sensitive coastal zone, in which 
          water quality, air quality, human health, marine mammals, 
          and marine bird species would be greatly affected, should 
          require environmental analysis.  Likewise, a city or county 
          may be interested in analyzing the environmental 
          consequences of a land-intensive off-road competition or 
          obstacle races.  In short, SB 973 offers a statewide CEQA 
          exemption where a city or county case-by-case determination 
          is more appropriate."

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           DLW:mw  5/25/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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