BILL ANALYSIS                                                                                                                                                                                                    �




                     SENATE GOVERNANCE & FINANCE COMMITTEE
                            Senator Lois Wolk, Chair
          

          BILL NO:  SB 1155                     HEARING:  4/24/14
          AUTHOR:  Lieu                         FISCAL:  Yes
          VERSION:  4/21/14                     TAX LEVY:  No
          CONSULTANT:  Ewing                    

                   ALQUIST-PRIOLO EARTHQUAKE FAULT ZONING ACT
          

          Revises standards for local agencies issuing building  
          permits on projects near earthquake faults.


                           Background and Existing Law 

          Enacted after the 1971 San Fernando Earthquake destroyed  
          two hospitals, the Alquist-Priolo Earthquake Fault Zoning  
          Act prevents local agencies from issuing permits to build  
          on top of active faults.  The State Geologist publishes  
          maps which are the basis for developing regulations within  
          recognized Earthquake Fault Zones.

          The Alquist-Priolo Act applies to any subdivision subject  
          to the Subdivision Map Act and which contemplates the  
          eventual construction of homes.  The Alquist-Priolo Act  
          also applies to home construction that did not involve a  
          review at the subdivision phase.  The Act does not apply to  
          single family homes with no more than two stories that are  
          not part of a development of four or more dwellings.   
          Exceptions also are allowed for:
                 Condominium conversions, 
                 Historic landmarks, 
                 Certain alterations of existing structures, 
                 Pre-1975 homes, with some exceptions, and 
                 Structures damaged by the 1991 Oakland Hills fires,  
               if an exemption is issued by the State Geologist.  

          Under the Act, property that is sold or transferred must  
          include disclosure information when it is located in an  
          Earthquake Fault Zone.

          The Alquist-Priolo Act, along with the Seismic Hazard  
          Mapping Act, restricts the authority of cities and counties  
          to approve projects for occupancy unless they meet terms  
          established in regulation by the State Mining and Geology  




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          Board.  Prior to approving a project that is within an  
          established Earthquake Fault Zone, cities and counties must  
          require a geologic report identifying any hazard for  
          surface fault rupture.  Implementing regulations specify  
          that no structure can be placed across an active fault.  If  
          a city or county finds that no undue hazard exists, the  
          required geologic report can be waived, with approval from  
          the State Geologist.

          Some stakeholders are concerned that because of budget  
          limitations, the state is not working fast enough to update  
          its maps of Earthquake Fault Zones or new maps for  
          otherwise unmapped areas.  There also is concern that local  
          agencies are approving projects that result in housing  
          being built atop or near earthquake faults.


                                   Proposed Law  

          SB 1155 extends the requirements of the Alquist-Priolo  
          Earthquake Fault Zoning Act to areas where earthquake  
          faults have visibly ruptured the ground, and are considered  
          to be active, as defined by the State Mining and Geology  
          Board, but which are not yet included in official  
          Earthquake Fault Zone maps issued by the California State  
          Geologist.

                               State Revenue Impact
           
          No estimate.


                                     Comments  

          1.   Purpose of the bill  .  SB 1155 extends the protections  
          of the Alquist-Priolo Earthquake Fault Zoning Act to  
          potential housing construction in fault zones that have not  
          yet been officially established through the process of  
          issuing Earthquake Fault Zone maps.  The state has made  
          considerable progress in identifying earthquake fault  
          hazards, but many faults have not been adequately mapped by  
          the state, even though they may be mapped by the federal  
          government, local agencies, private geology firms or  
          academic and research institutions.  SB 1155 does not  
          prohibit construction near earthquake faults.  It requires  
          a geologic investigation to ensure that local agencies do  





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          not knowingly permit the construction of housing on parcels  
          subject to earthquake fault ruptures.  

          2.  Undue uncertainty  .  The Alquist-Priolo Earthquake Fault  
          Zoning Act creates a partnership between the state and  
          local agencies, resulting in certainty.  Under the Act, the  
          state identifies potential hazards by issuing Earthquake  
          Fault Zone maps.  Before local agencies issue permits to  
          build housing on parcels within those zones, they must  
          first require a geologic study to identify any earthquake  
          faults on the parcel.  If none are found, permits can be  
          issued.  If faults are found, permits can be issued only if  
          housing is set back to prevent a shift in the fault from  
          ripping apart a home.  The statute results in certainty  
          because local agencies know when they can and cannot issue  
          permits.  Under SB 1155, rather than relying on state  
          issued Earthquake Fault Zone maps, each local agency would  
          be charged with documenting earthquake faults, or require  
          geological studies for every permit.  Recent budget  
          challenges have slowed the state's mapping efforts and the  
          issuance of new maps, yet the Governor has proposed  
          increasing funding for the mapping process.  Rather than  
          creating undue uncertainty in the permitting process, it  
          may make greater sense to augment funding for the state to  
          accelerate the mapping of Earthquake Fault Zones. 

          3.  Clarification  .  SB 1155 adds Section 2623.5 to the  
          Alquist-Priolo Act, stating that it shall apply where the  
          ground surface has been mapped but the Earthquake Fault  
          Zone maps have not been completed.  It is unclear how the  
          phrase, "has been mapped," is defined.  The Committee may  
          wish to consider clarifying amendments to state that  
          Section 2623.5 applies where official state Earthquake  
          Fault Zone maps have not been completed or updated, and  
          more recent information is available from the California  
          Geological Survey, the U.S. Geological Survey, local  
          government agencies, accredited academic and research  
          institutions, and professional licensed geologists or other  
          experts, which indicate a newly identified potential risk  
          of an earthquake fault hazard.  

          4.  Crowdsource fault mapping  .  The Alquist-Priolo Act  
          directs the California State Geologist to map specific  
          earthquake faults and others deemed sufficiently active and  
          well-defined to constitute a potential hazard to  
          structures. The State Geologist is not the only entity that  





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          can map earthquake faults, and the statute directs the  
          State Geologist to regularly review new geologic and  
          seismic data.  However, the state could receive and use  
          information from licensees, including geologists and real  
          estate professionals, who develop or receive information on  
          earthquake faults through their professionally licensed  
          activities.  To speed the official state process of mapping  
          potential earthquake hazards, the Committee may wish to  
          consider expanding disclosure and related reporting  
          requirements to enhance information available to the State  
          Geologist on earthquake faults and related hazards and make  
          that information available to the public.

          5.  Consistency, ambiguity and safety  .  The statutory  
          requirements for documenting earthquake and related seismic  
          hazards, and regulating land use decisions near those  
          hazards, are inconsistent.  The Alquist-Priolo Earthquake  
          Fault Zoning Act directs the State Geologist to map  
          ruptures in the ground.  In contrast, the Seismic Hazard  
          Mapping Act requires mapping of Seismic Hazard Zones, which  
          are defined in regulation as areas subject to amplified  
          shaking, liquefaction and earthquake-induced landslides.   
          While there is consistency across these acts, there also is  
          ambiguity.  The Committee may wish to consider directing  
          the California State Geologist to convene an expert  
          technical advisory committee, with participation from  
          relevant legislative committees, to propose legislation to  
          update existing code sections to create greater consistency  
          across both direct and indirect risks from seismic and  
          related hazards and related land use regulations.  As part  
          of that review, recognizing that the Alquist-Priolo Act  
          applies only to specified structures, the Committee may  
          wish to consider directing the technical advisory committee  
          to explore the need to extend seismic safety reviews to a  
          broader set of structures. 


                         Support and Opposition  (4/21/14)

           Support  :  Unknown.

           Opposition  :  Unknown.