BILL ANALYSIS                                                                                                                                                                                                    �



                                                               SB 1380
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2011-2012 Regular Session
                                           
           BILL NO:    SB 1380
           AUTHOR:     Rubio
           AMENDED:    April 10, 2012
           FISCAL:     No                HEARING DATE:     April 30, 2012
           URGENCY:    No                CONSULTANT:       Randy Pestor
            
           SUBJECT  :    CALIFORNIA ENVIRONMENTAL QUALITY ACT

            SUMMARY  :    
           
            Existing law  :

           1)Under the California Environmental Quality Act (CEQA):

              a)   Requires lead agencies with the principal 
                responsibility for carrying out or approving a proposed 
                discretionary project to prepare a negative declaration, 
                mitigated 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).  
                (Public Resources Code �21000 et seq.).  If there is 
                substantial evidence, in light of the whole record before 
                a lead agency, that a project may have a significant 
                effect on the environment, the lead agency must prepare a 
                draft EIR.  (CEQA Guidelines �15064(a)(1), (f)(1)).

              b)   Contains categorical exemptions relating to bicycle 
                facilities that include, for example:

                i)     Minor public or private alterations to land, 
                  water, or vegetation, including, but not limited to:  
                  "creation of bicycle lanes on existing rights-of-way."  
                  (CEQA Guidelines �15304(h)).

                ii)         Restriping of streets or highways to relieve 
                  traffic congestion.  (Public Resources Code �21080.19).

              c)   Requires thresholds of significance adopted as part of 









                                                               SB 1380
                                                                 Page 2

                a lead agency's environmental review process to be 
                developed through a public review process.  A threshold 
                of significance is "an identifiable quantifiable, 
                qualitative or performance level of a particular 
                environmental effect, non-compliance with which means the 
                effect will normally be determined to be significant by 
                the agency and compliance with which means the effect 
                normally will be determined to be less than significant." 
                 When adopting thresholds of significance, a lead agency 
                may consider thresholds of significance previously 
                adopted or recommended by other public agencies or 
                recommended by experts.  (CEQA Guidelines �15064.7).

           2)Under the California Bicycle Transportation Act, authorizes 
             a city or county to prepare a bicycle transportation plan, 
             which must include certain elements (e.g., proposed land use 
             and settlement patterns, existing proposed bikeways and 
             bicycle facilities, bicycle safety and education facilities, 
             project priorities for implementation, past expenditures and 
             future financial needs).  (Streets and Highways Code 
             �891.2).
            
           This bill  enacts the California Public Health and 
           Environmental Standards Act (CPHESA) that:

           1) Provides legislative intent that:

              a)    CEQA was enacted in 1970 to maintain a quality 
                 environment, and that in the 40 years following 
                 enactment "Congress and the Legislature have each 
                 adopted dozens of laws to protect environmental quality 
                 in 14 of the 17 topical areas required to be 
                 independently evaluated under CEQA."

              b)    Reference various environmental laws, "all enacted 
                 after 1970 . . ." while asserting that "Environmental 
                 laws and regulations identify compliance obligations of 
                 general applicability and thereby provide greater 
                 clarity than the project-by-project ad hoc review 
                 process that was created by CEQA in 1970" and in 
                 enacting CPHESA "avoiding the sometimes conflicting and 
                 often duplicative ad hoc environmental review and 










                                                               SB 1380
                                                                 Page 3

                 mitigation requirements under CEQA regarding the 
                 development and adoption of a bicycle transportation 
                 plan."

           2) Requires an environmental document prepared under CEQA for 
              a bicycle transportation plan to disclose all applicable 
              environmental laws, and defines "applicable environmental 
              laws" to be those referenced in CPHESAs legislative intent 
              relevant to a bicycle transportation plan that does any of 
              the following:

              a)    Includes a policy determination, or directs or 
                 authorizes an appropriate standard for analysis and 
                 mitigation under CEQA, and compliance with the standard 
                 must be "the exclusive means of evaluating and 
                 mitigating environmental impacts under �CEQA] regarding 
                 the subject of the law, notwithstanding any other 
                 provision of law."

              b)    Identifies analytical methods or approaches, or 
                 directs or authorizes procedures and practices that 
                 include those approaches, regarding a standard.  
                 Disclosure of those analytical methods "must be the 
                 exclusive means of evaluating potential project impacts 
                 under �CEQA] regarding the relevant law, notwithstanding 
                 any other provision of law."

              c)    Identifies permissible practices for mitigating or 
                 minimizing adverse impacts, or directs or authorizes 
                 procedures and practices for mitigation, and compliance 
                 with these practices must be the "exclusive means of 
                 mitigating environmental impacts under �CEQA] regarding 
                 the subject of the relevant law, notwithstanding any 
                 other provision of law."

           3) Specifies that the above "disclosure obligations" are 
              intended to foster environmental and public participation 
              in the public review process required under CEQA or other 
              applicable laws, including the Ralph M. Brown Act.

           4) Limits environmental review under CPHESA to those topical 
              areas listed in the legislative intent.










                                                               SB 1380
                                                                 Page 4


           5) Prohibits a cause of action under CEQA based on an 
              environmental topical area listed in the legislative intent 
              if the environmental document "requires compliance with an 
              applicable law," and provides that this does not prohibit a 
              cause of action to enforce compliance with other existing 
              local, state, and federal law.

           6) Provides that CPHESA does not preclude an agency from 
              requiring information or analysis of the bicycle 
              transportation plan, or imposing conditions of approval for 
              that plan, under laws other than CPHESA or CEQA.

            COMMENTS  :

            1) Purpose of Bill  .  According to the Silicon Valley 
              Leadership Group, sponsor of SB 1380, "litigation under 
              CEQA challenging bicycle transportation plans can be 
              expensive and delay or prevent adoption of such plans.  In 
              San Francisco, for example, San Francisco's MTA proposed a 
              bicycle transportation plan that would add 34 miles of new 
              bikes lanes, nearly doubling the current number, to enable 
              key public safety improvements for bicyclists and 
              pedestrians in San Francisco.  After MTA approved the plan, 
              an opponent filed a CEQA lawsuit and in 2006 a trial court 
              issued an injunction preventing implementation of the plan. 
                In 2006, a San Francisco Examiner article estimated that 
              in the 2006 planning year alone the injunction would result 
              in MTA losing $1.1 million in grants to implement the plan. 
               Litigation proceeded slowly, and the trial court did not 
              fully lift the injunction until 2010 thereby allowing MTA 
              to complete implementation of the bike plan.  After nearly 
              four years of delay due to the CEQA litigation, the trial 
              court ruled that 'the City did not abuse its discretion in 
              certifying the EIR as in compliance with CEQA, nor did the 
              City abuse its discretion by the process of approving the 
              EIR.'  This bill would reduce the potential for litigation 
              delays such as those experienced by San Francisco's MTA.  
              As a result, it would help to prevent the loss of grant 
              money that may otherwise be available to achieve health and 
              safety benefits associated with improving a region's 
              bicycle transportation network."










                                                               SB 1380
                                                                 Page 5


           �  NOTE  :  See Comment #3 for more background on the case, 
              including the provision of an environmental document for 
              the project November 26, 2008.]

            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 
              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) Background on San Francisco bicycle plan litigation  .  The 
              San Francisco Board of Supervisors adopted the 2005 Bicycle 
              Plan June 7, 2005, and determined that the plan was exempt 
              from CEQA because there was no possibility that it would 
              have significant impacts on the environment.  The San 
              Francisco County Transportation Authority Commission 
              (composed exclusively of members of the board of 










                                                               SB 1380
                                                                 Page 6

              supervisors) adopted the bicycle plan's "Network 
              Improvement Document," a five-year plan for funding and 
              implementing the Bicycle Plan June 21, 2005.

           Petitioners challenged adoption of the 2005 Bicycle Plan and 
              Network Improvement Document under CEQA, and the Court 
              granted the Petitioner's Petition, finding that the Plan 
              and Document should have been reviewed under CEQA together 
              as one project - and that considered as a whole could have 
              a significant impact on the environment.  The Court issued 
              a Preemptory Writ of Mandate June 18, 2007, requiring San 
              Francisco to conduct adequate environmental review of the 
              Plan and Document, and enjoined the city from implementing 
              any individual improvement projects until the review was 
              completed.

           San Francisco planning department published a draft EIR 
              November 26, 2008.  According to the Court, "The bulk of 
              the Draft EIR's analysis concerned impacts on 
              transportation, particularly impacts from the 60 near-term 
              improvements on 63 different intersections located 
              throughout San Francisco, as well as impacts on 12 'transit 
              corridors,' 10 transit 'spot studies,' and 13 parking and 
              loading corridors."  The Court also noted that the EIR 
              identified mitigation measures to minimize or eliminate 
              many of the significant environmental impacts identified in 
              the EIR, including measures such as adding or modifying 
              traffic signals at intersections (lengthening green light 
              time or adding a green arrow), or modifying roadway 
              striping (changing shared lanes to exclusive turn lanes, 
              narrowing travel lanes, or eliminating or restricting 
              on-street parking).

           The Planning Commission certified the EIR June 25, 2009; the 
              MTA board of directors adopted the 2009 Bicycle Plan and 
              approved the traffic changes necessary to implement 45 of 
              the 60 improvements, and made the required CEQA findings.  
              The Petitioners appealed the Planning Commissioner's 
              certification of the EIR to the Board of Supervisors July 
              15, 2009; and the Board of Supervisors heard the appeals 
              August 4, 2009, and denied the appeals.  The city filed a 
              Notice of Determination August 14, 2009, and filed a Return 










                                                               SB 1380
                                                                 Page 7

              to the Writ of Mandate September 18, 2009, to which the 
              Petitioners objected.  The Court found that the city 
              complied with CEQA and the Court's orders to conduct 
              environmental review of the Bicycle Plan, including its 
              policies and goals and individual improvement projects 
              August 6, 2010.

            4) Thresholds of significance and regulatory standards  .  As 
              noted above, under current law, a threshold of significance 
              is "an identifiable quantifiable, qualitative or 
              performance level of a particular environmental effect, 
              non-compliance with which means the effect will normally be 
              determined to be significant by the agency and compliance 
              with which means the effect normally will be determined to 
              be less than significant."

           Under SB 1380, for a bicycle transportation plan, "compliance 
              with the applicable standards for impacts that occur or 
              might occur as a result of approval of the project shall be 
              the exclusive means of evaluating and mitigating 
              environmental impacts under �CEQA] regarding the subject of 
              that law, notwithstanding any other provision of law."

           Such reliance on a regulatory standard, as required under SB 
              1380, is inconsistent with current law.  For example, in 
              Kings County Farm Bureau v. City of Hanford, 221 Cal. App. 
              3d 692, 270 Cal. Rptr. 650 (1990), the court found that a 
              lead agency incorrectly determined that air quality impacts 
              would be less than significant when the smokestack 
              emissions for a proposed cogeneration plant would comply 
              with applicable air quality regulations and standards, 
              because the agency failed to consider "on-site" 
              (smokestack) and "secondary" (train and truck traffic to 
              deliver coal, the proposed fuel) emissions together in 
              assessing the significance of the overall project's 
              impacts.

           The court came to a similar conclusion in Riverwatch v. San 
              Diego County (Palomar Aggregates), 76 Cal. App. 4th 1428, 
              91 Cal. Rptr. 2d 322 (1999), where the court held that an 
              EIR for a proposed rock quarry failed to evaluate all air 
              quality impacts resulting from the quarry operation.  The 










                                                               SB 1380
                                                                 Page 8

              county believed emission levels would meet San Diego Air 
              Pollution Control District (APCD) standards, and the court 
              found that the EIR considered only the quarry process 
              emissions and not particulate emissions caused by drilling, 
              handling, storage, and transport of the rock and sand.  
              While the APCD standards were for the stationary source 
              (quarry), CEQA requires the EIR to evaluate significance of 
              all project-related pollution emissions.

            5) Project impact "topic areas"  .

           SB 1380 specifies that the CEQA Guidelines currently provide 
              that project impacts be evaluated based on 17 topics - a 
              provision of this bill that is not limited to bicycle plans 
              and could therefore apply to other projects.  Nothing in 
              current law limits CEQA to 17 topic areas.  Apparently the 
              author is referencing Appendix G of the CEQA Guidelines, 
              the "environmental checklist form."

           It is noteworthy, however, that Appendix G is prefaced by the 
              following:

           NOTE: The following is a sample form and may be tailored to 
              satisfy individual agencies' needs and project 
              circumstances. It may be used to meet the requirements for 
              an initial study when the criteria set forth in CEQA 
              Guidelines have been met. Substantial evidence of potential 
              impacts that are not listed on this form must also be 
              considered. The sample questions in this form are intended 
              to encourage thoughtful assessment of impacts, and do not 
              necessarily represent thresholds of significance.

           Not only does SB 1380 freeze these 17 topics in statute, 
              rather than allowing analysis of any other potential 
              significant impacts, this bill also precludes CEQA from 
              filling in the gaps in existing laws.  CEQA also addresses 
              other matters, such as cumulative impacts, direct and 
              indirect impacts, and mandatory findings of significance.

           Emerging issues addressed under CEQA may also precede a 
              particular state or federal law.  For example, the analysis 
              of greenhouse gas (GHG) impacts under laws like CEQA, and 










                                                               SB 1380
                                                                 Page 9

              its federal counterpart National Environmental Policy Act 
              (NEPA), did not commence with the passage of the California 
              Global Warming Solutions Act of 2006.

           Guidance for addressing GHG issues under the NEPA for federal 
              environmental documents was provided October 8, 1997.  
              According to the Chairman of the Council on Environmental 
              Quality in 1997, "Because of the potentially substantial 
              health and environmental impacts associated with climate 
              change, the Council on Environmental Quality is issuing 
              this guidance today calling on federal agencies to 
              consider, in the context of the NEPA process, both how 
              major federal actions could influence the emissions and 
              sinks of greenhouse gases and how climate change could 
              potentially influence such actions."

           In 2003, in  Border Power Plant Working Group v. U.S. 
              Department of Energy  (S.D. Cal 2003) 20 F.Supp2d 997, 
              1028-1029, a federal district court found that NEPA 
              requires consideration of potential environmental impacts 
              from a proposed natural gas turbine's generation of carbon 
              dioxide, a greenhouse gas, and rejected the argument that 
              consideration of this impact is not required.

           Former Attorney General Bill Lockyer also commented on the 
              lack of analysis of GHG issues in environmental documents 
              prior to enactment of the CGWSA (note, for example, the 
              March 30, 2006, letter regarding the Orange County 
              Transportation Authority 2006 Long-Range Transportation 
              Plan Draft EIR).

           SB 97 (Dutton) Chapter 185, Statutes of 2007, subsequently 
              required OPR, on or before July 1, 2009, to prepare, 
              develop, and transmit to the Resources Agency amendments to 
              the CEQA guidelines to assist public agencies in the 
              mitigation of GHG's or the effects of GHG's as required 
              under CEQA, including the effects associated with 
              transportation and energy consumption, and required the 
              Resources Agency to certify and adopt those guidelines by 
              January 1, 2010.

            6) Setting standard in SB 1380 overrides fair argument 










                                                               SB 1380
                                                                 Page 10

              standard  .  If there is substantial evidence, in light of 
              the whole record before a lead agency, that a project may 
              have a significant effect on the environment, the lead 
              agency must prepare a draft EIR.

           SB 1380 overrides the fair argument standard for a bicycle 
              transportation plan because under this bill "compliance 
              with the applicable standards for impacts that occur or 
              might occur as a result of approval of the project shall be 
              the exclusive means of evaluating and mitigating 
              environmental impacts under �CEQA] regarding the subject of 
              that law, notwithstanding any other provision of law."  
              Also, under SB 1380,  "A cause of action shall not be 
              commenced . . . for noncompliance with �CEQA] based on an 
              environmental topical area �listed in SB 1380] for which 
              the environmental document prepared for purposes of 
              �CPHESA] discloses a requirement of compliance with an 
              applicable environmental law . . ." (another provision that 
              is not limited to bicycle plans).

           This issue was addressed when Communities for A Better 
              Environment, Environmental Protection Information Center, 
              and Desert Citizens Against Pollution challenged several 
              1998 revisions to the CEQA Guidelines.  The California 
              Building Industry Association was allowed to intervene in 
              the action.  Communities for a Better Environment v. 
              California Resources Agency, 103 Cal. App. 4th 98, 126 Cal. 
              Rptr. 441 2d (2002).

           The trial court invalidated several Guidelines sections, 
              including a provision where a lead agency is directed to 
              determine that an effect is not significant, regardless of 
              whether other substantial evidence would support a fair 
              argument that the effect may be environmentally 
              significant, if a proposed project has an environmental 
              effect that complies with a regulatory standard as defined 
              under the Guidelines provision.

           On appeal, the Court of Appeal agreed with the trial court on 
              this matter:  "The direction �of this Guidelines change] 
              relieves the agency of a duty it would have under the fair 
                                                                     argument approach to look at evidence beyond the regulatory 










                                                               SB 1380
                                                                 Page 11

              standard, or in contravention of the standard, in deciding 
              whether an EIR must be prepared.  Under the fair argument 
              standard, any substantial evidence supporting a fair 
              argument that a project may have a significant effect would 
              trigger the preparation of an EIR.  A well-known CEQA 
              treatise recognized this dilemma as well, stating:  
              '�S]ubdivision (h) . . . appears to dispense with the 
              traditional 'fair argument' standard otherwise applicable 
              to the decision whether to prepare a�n] . . . EIR . . . 
              Notably, where existing regulatory standards, as defined, 
              address a particular category of impact, the lead agency 
              need not treat the impact as potentially significant 
              whenever any substantial evidence in the record supports a 
              conclusion.'"

            7) Support and opposition concerns  .  According to the 
              California Retailers Association in supporting SB 1380, "As 
              an employer we seek to encourage our employees to find and 
              utilize alternative means of transportation to and from 
              work.  Bicycles are one of the most affordable and we 
              believe, environmentally benign.  Thoughtful bicycle 
              transportation plans by communities like San Francisco 
              shouldn't be allowed to be tied up in CEQA lawsuits for 
              years on end where they can demonstrate having met 
              applicable environmental laws."  According to the Silicon 
              Valley Bicycle Coalition, "This bill would help communities 
              achieve the benefits of local bicycle plans by reducing 
              costs and delays associated with �CEQA] litigation."

           According to opponents, while supporting "more walkable and 
              bikable communities, it is vital to maintain the public's 
              right to make a fair argument under CEQA that a project 
              contains significant environmental impacts, even if another 
              environmental law has also set standards for the impact in 
              question.  Environmental laws are frequently subject to 
              business and industry capture.  Standards set by a federal 
              or state environmental law may have a one-size-fits-all 
              policy, or may be promulgated by the business or industry 
              itself.  For example, the EPA is counter-intuitively 
              prohibited from regulating fracking (hydraulic fracturing) 
              by the Safe Drinking Water Act.  Thus, the standards in an 
              environmental law may not be enough to ensure that an 










                                                               SB 1380
                                                                 Page 12

              individual project does not have adverse environmental 
              impacts - especially for those with the most devastating 
              environmental effects.  Passing a bill of this nature would 
              create a slippery slope for further legislation to come and 
              open up the flood gates to similar requests for such more 
              leniency in this department - something that would 
              completely undermine one of the major reason CEQA was put 
              in place: to allow the opportunity for public review."

            8) Alternative way to address bikeway environmental issues 
              with bikeway plans in certain locations  ?  If the committee 
              believes that bicycle plans should not be subject to 
              environmental review under certain conditions, then rather 
              than overriding the fair argument standard, procedures 
              relating to thresholds of significance and other CEQA 
              provisions, as provided under SB 1380, it may be 
              appropriate to instead:  a) replace provisions in this bill 
              with a statutory exemption for a bikeway plan for an 
              urbanized area consisting of restriping existing streets 
              and highways, signal timing to improve intersection 
              operations, signage, and bicycle storage, if certain 
              requirements are met (e.g., measures to address bike and 
              pedestrian safety, noticed public hearings); b) sunset the 
              exemption within a certain period (e.g., five years) so 
              that the exemption can be evaluated and any unanticipated 
              consequences considered; and c) require a notice of 
              exemption for a plan to be filed with the Office of 
              Planning and Research to assist in this evaluation.

            SOURCE  :        Silicon Valley Leadership Group  

           SUPPORT  :       California Bicycle Coalition, California 
                          Council for Environmental and Economic Balance, 
                          California Retailers Association, Silicon 
                          Valley Bicycle Coalition  

           OPPOSITION  :    California Coastal Protection Network, 
                          California Native Plant Society, Defenders of 
                          Wildlife, Planning and Conservation League, 
                          Sierra Club California
            
            










                                                               SB 1380
                                                                 Page 13