BILL NUMBER: SB 696 AMENDED
BILL TEXT
AMENDED IN SENATE SEPTEMBER 1, 2009
AMENDED IN SENATE JUNE 17, 2009
AMENDED IN SENATE JUNE 9, 2009
AMENDED IN SENATE MAY 5, 2009
AMENDED IN SENATE APRIL 13, 2009
INTRODUCED BY Senator Wright
FEBRUARY 27, 2009
An act to add Sections 40440.12 and 40440.13 to the
Health and Safety Code, relating to air quality, and declaring the
urgency thereof, to take effect immediately. An act to
add and repeal Section 40440.13 of the Health and Safety Code,
relating to the South Coast Air Quality Management District, and
declaring the urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 696, as amended, Wright. Air quality: CEQA exemptions:
emission reduction credits. South Coast Air Quality
Management District: CEQA: permits.
(1) The California Environmental Quality Act (CEQA) requires a
lead agency, as defined, to 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.
Under existing law, every air pollution control district or air
quality management district in a federal nonattainment area for any
national ambient air quality standard is required to establish by
regulation, a system by which all reductions in emissions of air
contaminants that are to be used to offset certain future increases
in the emission of air contaminants are banked prior to use. The
South Coast Air Quality Management District (district) promulgated
various rules establishing offset exemptions, providing Priority
Reserve offset credits, and creating or tracking credits used for
offset exemption or Priority Reserve projects. In Natural Resources
Defense Council v. South Coast Air Quality Management District
(Super. Ct. Los Angeles County, 2007, No. BS 110792), the superior
court found the promulgation of certain of these district rules to be
in violation of CEQA.
This bill would authorize the district to issue permits under
specified circumstances, notwithstanding this court decision. The
provisions of the bill would be repealed on May 1, 2012.
(2) This bill would state the findings and declarations of the
Legislature concerning the need for special legislation.
(3) This bill would declare that it is to take effect immediately
as an urgency statute.
(1) The California Environmental Quality Act (CEQA) requires a
lead agency, as defined, to 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.
Under existing law, every air pollution control district or air
quality management district in a federal nonattainment area for any
national ambient air quality standard is required to establish, by
regulation, a system by which all reductions in emissions of air
contaminants that are to be used to offset certain future increases
in the emission of air contaminants are banked prior to use. Pursuant
to this requirement the South Coast Air Quality Management District
(district) promulgated various rules establishing offset exemptions,
providing Priority Reserve offset credits, and creating or tracking
credits used for offset exemption or Priority Reserve projects. In
Natural Resources Defense Council v. South Coast Air Quality
Management District (Super. Ct. Los Angeles County, 2007, No. BS
110792), the superior court found the promulgation of certain of
these district rules to be in violation of CEQA.
This bill would exempt from the requirements of CEQA, except as
specified, the adoption and implementation of specified district
rules relating to emission credits. Because a lead agency would be
required to determine whether the use of the credits qualifies for an
exemption, this bill would impose a state-mandated local program.
(2) This bill would state the findings and declarations of the
Legislature concerning the need for special legislation.
(3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
(4) This bill would declare that it is to take effect immediately
as an urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: yes
no . State-mandated local program: yes
no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all
of the following:
(a) As a result of the superior court decision in Natural
Resources Defense Council v. South Coast Air Quality Management
District (Super. Ct. Los Angeles County, 2007, No. BS 110792) holding
that the South Coast Air Quality Management District (district)
violated the requirements of the California Environmental Quality Act
(CEQA) (Division 13 (commencing with Section 21000) of the Public
Resources Code) in the promulgation of certain district rules, the
district is unable to issue over a thousand pending permits that rely
on the district's internal offset bank to offset emissions.
(b) The district may also have to set aside several thousand
permits that were previously issued in reliance on the district's
internal offset bank.
(c) Prompt legislative action is necessary as an interim measure;
otherwise projects will be stopped from going forward or frozen in
place, representing significant losses to the economy and the loss of
numerous well-paying jobs.
(d) Nothing in the case described in subdivision (a) requires the
setting aside of any permit issued by the South Coast Air Quality
Management District to any essential public service, that relied on
Rule 1309.1, nor any permit that relied on Rule 1304, between
September 8, 2006, and November 3, 2008.
SEC. 2. Section 40440.13 is added to the
Health and Safety Code , to read:
40440.13. (a) Notwithstanding the decision of the court in
Natural Resources Defense Council v. South Coast Air Quality
Management District (Super. Ct. Los Angeles County, 2007, No. BS
110792), the south coast district may issue permits in reliance on,
and in compliance with, south coast district Rule 1304, as amended on
June 14, 1996, except for an electrical generation facility, and
Rule 1309.1, as amended May 3, 2002, for essential public services,
as defined in subdivision (m) of Rule 1302, as amended December 6,
2002.
(b) Nothing in this section affects the decision in the case
described in subdivision (a) concerning the adoption, readoption, or
amendment, or environmental review, of south coast district Rule
1315.
(c) In implementing subdivision (a), the south coast district
shall rely on the emission reduction credit tracking system used
prior to the adoption of Rule 1315, until a new tracking system is
approved by the United States Environmental Protection Agency and is
in effect, at which point that new system shall be used by the south
coast district in implementing subdivision (a). The south coast
district shall make information concerning the credits, and the
tracking of these credits, available to the public.
(d) This section shall remain in effect only until May 1, 2012,
and as of that date is repealed, unless a later enacted statute, that
is enacted before May 1, 2012, deletes or extends that date.
SEC. 3. The Legislature finds and declares that a
special law is necessary and that a general law cannot be made
applicable within the meaning of Section 16 of Article IV of the
California Constitution because of unique circumstances concerning
the South Coast Air Quality Management District.
SEC. 4. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
Due to the court decision in Natural Resources Defense Council v.
South Coast Air Quality Management District (Super. Ct. Los Angeles
County, 2007, No. BS 110792), the South Coast Air Quality Management
District is unable to issue over a thousand pending permits that are
either exempt from offset requirements or qualified to use offset
credits from the district's Priority Reserve and is required to set
aside thousands of permits already issued. Therefore, in order to
allow the district to issue permits in an expeditious manner as an
urgent interim measure, it is necessary that this act take effect
immediately. All matter omitted in this version of the bill
appears in the bill as amended in Senate, June 17, 2009 (JR11)