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provisions of the bill would be repealed on May 1, 2012.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.