BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2417
                                                                  Page  1

          Date of Hearing:   May 14, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    AB 2417 (Nazarian) - As Amended:  May 7, 2014 

          Policy Committee:                              Natural  
          ResourcesVote:7-1

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

           SUMMARY  

          This bill exempts, until January 1, 2018, the installation and  
          maintenance of existing recycled water pipelines less than eight  
          miles in length from the California Environmental Quality Act  
          (CEQA).  Before determining if a project is eligible for  
          exemption, this bill requires a lead agency to hold a noticed  
          public hearing to consider and adopt mitigation measures for  
          potential traffic impacts.  This bill prohibits the following  
          actions or projects from qualifying for the exemption:

          1)Segmenting larger projects to, or claiming serial exemptions  
            for, adjacent sections of pipeline.

          2)Projects in resource areas such as parks, open space,  
            protected habitat areas, and lands subject to conservation  
            easements.

          3)Construction and excavation activities undertaken over more  
            than one-half mile at a time. 

           FISCAL EFFECT  

          No additional state costs.

           COMMENTS  

           1)Rationale.   In response to the current drought emergency, the  
            State Water Resources Control Board (SWRCB) approved $800  
            million in low-interest loans for recycled water projects that  
            can be completed before January 2017.   









                                                                 AB 2417
                                                                  Page  2

             This bill provides a short-term, narrow CEQA exemption to help  
            expedite projects.  

          2)Background.   CEQA provides a process for evaluating the  
            environmental effects of applicable projects undertaken or  
            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 environmental  
            impact report (EIR).

            There is currently a CEQA exemption for relatively small-scale  
            pipeline maintenance and installation projects less than one  
            mile in length.  A more specific exemption is available for  
            projects up to eight miles in length involving maintenance and  
            replacement, but not expansion, of pipelines, such as  
            petroleum pipelines regulated under the Pipeline Safety Act.  



           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081