BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                    SB 97|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                              UNFINISHED BUSINESS


          Bill No:  SB 97
          Author:   Dutton (D)
          Amended:  8/21/07
          Vote:     21

           
          WITHOUT REFERENCE TO FILE

           SENATE FLOOR :  Not relevant

           ASSEMBLY FLOOR  :  60-13, 8/21/07 - See last page for vote


           SUBJECT  :    CEQA:  greenhouse gas emissions

          SOURCE  :     Author


           DIGEST  :    This bill (1) requires the Office of Planning  
          and Research, 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 greenhouse gas (GHG) emissions or the effects  
          of GHG's as required under CEQA, including the effects  
          associated with transportation and energy consumption, (2)  
          requires the Resources agency to certify and adopt those  
          guidelines by January 1, 2010, (3) provides that the  
          failure to adequately analyze the effects of GHG's in  
          documents required under CEQA is not a cause of action, and  
          (4) sunsets on January 1, 2010.

           ANALYSIS  :    

                                                           CONTINUED





                                                                 SB 97
                                                                Page  
          2

           Existing Law

           Under the California Environmental Quality Act (CEQA)  
          (Division 13 commencing with Section 21000 of the Public  
          Resources Code):

          1.Requires lead agencies with the principal responsibility  
            for carrying out or approving a 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).

          2.Requires the Office of Planning and Research (OPR) to  
            prepare and develop proposed guidelines for implementing  
            CEQA, and to transmit the guidelines to the Secretary of  
            Resources for certification and adoption pursuant to the  
            Administrative Procedure Act.  (Public Resources Code  
            21083).

          Under the California Global Warming Solutions Act of 2006  
          (Division 25.5 commencing with Section 38500 of the Health  
          and Safety Code):

          1.Requires the State Air Resources Board (ARB) to determine  
            the 1990 statewide greenhouse gas (GHG) emissions level  
            and approve a statewide GHG emissions limit that is the  
            equivalent to that level, to be achieved by 2020.

          2.Requires the ARB to adopt rules and regulations to  
            achieve the maximum technologically feasible and  
            cost-effective GHG emission reductions from sources or  
            categories of sources of GHG emissions in furtherance of  
            the GHG emissions limit.

          This bill:

          1.On or before July 1, 2009, requires OPR 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 requires the  







                                                                 SB 97
                                                                Page  
          3

            Resources Agency to certify and adopt those guidelines by  
            January 1, 2010.

          2.Provides that the failure to analyze adequately the  
            effects of GHG's in documents required under CEQA is not  
            a cause of action under that Act if both of the following  
            conditions are met:

             A.    The emissions are required to be reduced pursuant  
                to regulations adopted by the ARB under the  
                California Global Warming Solutions Act of 2006.

             B.    The documents are for a transportation  
                infrastructure project approved for funding under the  
                Highway Safety, Traffic Reduction, Air Quality, and  
                Port Security Act of 2006 (Chapter 12.49 commencing  
                with Section 8879.20) of Division 1 of Title 2 of the  
                Government Code-commonly known as "Proposition 1-B")  
                or a flood control project funded under the Disaster  
                Preparedness and Flood Prevention Bond Act of 2006  
                (Chapter 1.699 commencing with Section 5096.800 of  
                Division 5 of the Public Resources Code - commonly  
                known as "Proposition 1E").

          3.Provides that nothing in this section shall be construed  
            as a limitation to comply with any other requirement of  
            CEQA, or of any other provision of law.

          4.Provides that the section shall apply retroactively to  
            documents required under CEQA that have not become final.

          5.Sunsets the section on January 1, 2010.

           Comments

          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  







                                                                 SB 97
                                                                Page  
          4

          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.

           Analyzing Greenhouse Gas Emissions Under NEPA and CEQA Not  
          a New Issue  .  The analysis of GHG impacts under laws like  
          CEQA, and its federal counterpart NEPA, is not new, nor did  
          it commence with the passage of the California Global  
          Warming Solutions Act of 2006.

          Guidance for addressing GHG issues under the National  
          Environmental Policy Act (NEPA) for federal environmental  
          documents was provided October 8, 1997 - almost a decade  
          ago.  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 of 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  







                                                                 SB 97
                                                                Page  
          5

          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.

          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  
          Environmental Impact Report).

           Interaction of AB 32 and CEQA Described.   As noted above,  
          CEQA generally requires lead agencies to analyze the  
          significant environmental effects of projects prior to  
          their approval, and to mitigate, or address, those effects  
          where feasible.    In contrast, AB 32 requires the ARB to  
          adopt rules and regulations to achieve the maximum feasible  
          and cost-effective reductions in GHG emissions from GHG  
          emission sources and categories of sources.  Under AB 32,  
          the Air Board has some discretion over WHEN those  
          regulations may be adopted (though they must be adopted no  
          later than 1/1/2012).  This measure appears to have two  
          substantive effects:  first, it enacts a new requirement  
          for the adoption of CEQA guidelines to assist public  
          agencies in the mitigation of greenhouse gas emissions as  
          required under CEQA, thereby confirming that GHG emissions  
          are a significant adverse effect under the Act and  
          secondly, it provides that where the ARB adopts regulations  
          requiring the reduction of GHG's from Proposition 1-B  
          transportation projects, the failure to analyze those  
          emissions required to be reduced under those regulations is  
          not a cause of action under CEQA.

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


           ASSEMBLY FLOOR  : 
          AYES:  Adams, Aghazarian, Anderson, Arambula, Bass, Beall,  
            Benoit, Berryhill, Blakeslee, Charles Calderon, Carter,  
            Cook, Coto, Davis, De La Torre, De Leon, DeVore, Duvall,  
            Emmerson, Fuller, Gaines, Galgiani, Garcia, Garrick,  
            Hayashi, Horton, Houston, Huff, Jeffries, Jones,  
            Karnette, Keene, La Malfa, Laird, Levine, Lieu, Ma, Maze,  







                                                                 SB 97
                                                                Page  
          6

            Mendoza, Mullin, Nakanishi, Niello, Parra, Plescia,  
            Price, Sharon Runner, Salas, Saldana, Silva, Smyth,  
            Solorio, Soto, Spitzer, Strickland, Torrico, Tran,  
            Villines, Walters, Wolk, Nunez
          NOES:  Brownley, DeSaulnier, Dymally, Evans, Feuer,  
            Hancock, Huffman, Krekorian, Leno, Lieber, Portantino,  
            Ruskin, Swanson
          NO VOTE RECORDED:  Berg, Caballero, Eng, Fuentes,  
            Hernandez, Nava, Richardson


          DLW:cm  8/22/07   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

                                ****  END  ****