On remand from the California Supreme Court, the First Appellate District has issued its second ruling in California Building Industry Assn. v. Bay Area Air Quality Management District. In this case, CBIA challenged BAAQMD’s 2010 “CEQA Air Quality Guidelines”—specifically, the Guidelines’ thresholds and methods for assessing the effects of siting new sensitive receptors (residences) near existing sources of toxic air contaminants and other harmful air emissions, such as freeways. Last year, the California Supreme Court held that CEQA “does not generally require an agency to consider the effects of existing environmental conditions on a proposed project’s future users or residents” (so-called ‘CEQA-in-Reverse’). Requiring analysis of the existing environment’s effects on a project, the Supreme Court emphasized, would “impermissibly expand the scope of CEQA.” The Supreme Court remanded the case to the First District Court of Appeal to apply its general ruling to the specific aspects of the BAAQMD Guidelines still in dispute.
White House Council on Environmental Quality Issues Final Guidance on Consideration of Climate Change in NEPA Review
Guest author Darrin Gambelin, a Downey Brand associate, contributes today’s post.
On August 1, The White House Council on Environmental Quality (CEQ) issued its Final Guidance for Federal Departments and Agencies on Consideration of Greenhouse Gas Emissions and the Effects of Climate Change in National Environmental Policy Act Reviews (Guidance), which provides federal agencies with a framework for analysis of greenhouse gas emissions and climate change in connection with environmental review under the National Environmental Policy Act (NEPA). This is a significant step in the developing law of climate impact analysis, as state and federal agencies alike continue to struggle to measure, analyze, and mitigate for localized, incremental contributions to this global problem.
The Guidance advises federal agencies to examine both the effects of the proposed project on climate change and the effects of climate change on the project. The guidance does not apply retroactively to projects with a completed NEPA review, but CEQ encourages agencies to adopt these procedures for projects currently under review. As guidance, the policies within are not binding, but in practice agencies generally defer to CEQ; so, applicants can expect federal agencies to apply the new policies to projects moving forward.
Appellate Court Rejects Urban Decay Claim Based on Lay Witness Opinion, Upholds Mitigated Negative Declaration
When cities and counties conduct CEQA review of a large-scale commercial development project including a major national chain like Wal-Mart or Costco, a common objection is that the project will displace existing, locally owned retail establishments, resulting in a significant impact on the environment, in the form of urban decay (or “blight”). This is generally understood to involve abandoned buildings or shopping centers physically deteriorating and becoming a magnet for graffiti, gang/drug activity, and illegal dumping. This claim is often brought in CEQA litigation resulting from approval of such retail projects.
Recently, Division Two of the Fourth Appellate District issued its decision in Joshua Tree Downtown Business Alliance v. County of San Bernardino (June 15, 2016; certified for partial publication on July 13, 2016), upholding a mitigated negative declaration and addressing a key issue for lead agencies and courts evaluating an urban decay claim: when do the comments or testimony of a lay witness constitute substantial evidence of an urban decay impact? The appellate court also rejected a claim of general plan inconsistency, affirming the broad discretion that local governments enjoy in interpreting their general plans.
Appellate Court Upholds Bay Area’s SB 375 Sustainable Communities Strategy
Since the passage of AB 32 in 2006, the methods for climate change analysis under CEQA have taken a number of turns. Most recently, the California Supreme Court in Center for Biological Diversity v. Department of Fish & Wildlife (2015) 62 Cal.4th 204, concluded that an EIR for a major development project (Newhall Ranch) lacked substantial evidence to show that the project’s reductions in emissions would be consistent with AB 32’s statewide goal for greenhouse gas (GHG) reductions by the year 2020. In a harbinger of its impending opinion in Cleveland National Forest v. San Diego Assoc. of Governments, the Court suggested that AB 32’s goal for 2020 may become less and less relevant as 2020 fast approaches. The Supreme Court’s opinion did state, however, that “[w]hile the burden of CEQA’s mandate in this context can be substantial, methods for complying with CEQA do exist”—expressly referencing consistency with regional climate action plans or sustainable communities strategies under SB 375.
On June 30, the First Appellate District issued an opinion that offered some hope to agencies struggling with climate analysis by rejecting a challenge to the regional GHG reduction mandates of “Plan Bay Area,” the sustainable communities strategy developed by the Metropolitan Transportation Commission (MTC) and Association of Bay Area Governments (ABAG) to comply with the requirements of SB 375. In Bay Area Citizens v. Association of Bay Area Governments, the appeals court rejected petitioner’s argument that the EIR for the Plan should have taken into account reductions in GHGs that will occur under statewide GHG reduction mandates.
Appellate District in Newhall Ranch Case Limits its Jurisdiction to Supervise Agency Compliance with Rulings in CEQA Cases
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s we reported last year, the California Supreme Court in Center for Biological Diversity v. California Department of Fish and Wildlife invalidated the greenhouse gas analysis and mitigation for the fully-protected unarmored stickleback on review of an environmental impact report (“EIR”) prepared for the Newhall Ranch development in northern Los Angeles County. In its ruling, the Supreme Court remanded the case to the lower appeals court to determine two issues left undecided—the project’s impacts on tribal cultural resources and the endangered steelhead trout.
On July 11, 2016, the Second Appellate District finally issued its ruling after remand from the Supreme Court. In unpublished sections of its opinion, the court provided further direction to the trial court and lead agency on the greenhouse gas analysis and species issues and reiterated its earlier ruling—that the EIR’s evaluation of tribal cultural resources and steelhead trout was supported by substantial evidence. In the only published portion of the opinion, the court grappled with a procedural issue that only a CEQA aficionado could love—whether the appeals court itself can retain jurisdiction to supervise directly the agency’s compliance with its ruling. Appeals court jurisdiction in CEQA cases has witnessed some interesting turns in recent years, as the Legislature has added targeted streamlining provisions and original jurisdiction in the court of appeals in some instances. (See, e.g., Pub. Resources Code, §§ 21168.6 [CPUC challenges], 21185 [environmental leadership projects].) The court here, however, found that it did not have the authority to step into the shoes of the trial court.
Addendum Does Not Save Inadequate Energy Impacts Analysis in EIR, First Appellate District Rules
In 2014, the appellate decision in California Clean Energy Committee v. City of Woodland (“CCEC”) caught many lead agencies and CEQA consultants off-guard, by holding that the type of energy impacts analysis conducted in many EIRs actually fails to comply with CEQA. EIRs prepared post-CCEC have generally included a much more in-depth analysis of energy impacts, to ensure compliance with that decision. But what to do about EIRs certified prior to CCEC, where further approvals are necessary or the EIR is being challenged? A recent decision by the First District Court of Appeal, Ukiah Citizens for Safety First v. City of Ukiah (June 21, 2016) rejects the use of an addendum to address the issue.
In 2011, Costco applied for a use permit and site rezone to allow construction of a 148,000-square-foot retail facility – including a warehouse store, over 600 parking stalls, and a 16-pump gas station – in the City of Ukiah. In December 2013 and January 2014, the City adopted the necessary rezoning legislation, certified the EIR, and adopted a statement of overriding considerations. Ukiah Citizens for Safety First, a local citizens group, filed suit to challenge the EIR in the Mendocino County Superior Court. Shortly after the suit was filed, the Third Appellate District issued its opinion in CCEC (225 Cal.App.4th 173). The City concluded that the CCEC decision required “a more detailed discussion of energy use than was previously understood at the time the EIR was certified,” and thereafter prepared an addendum and lodged the addendum with the trial court, in an effort to satisfy the more exacting standard articulated in CCEC.
Appeals Court Finds Wal-Mart EIR Deficient and Overturns Development Approval Due to Inadequate Map Act Findings
Cities and counties across the state have revised their general plan policies to address the interrelated issues of greenhouse gas (GHG) emissions and energy consumption by new commercial and residential development, often in proactive and innovative ways. However, the rubber only meets the road when those projects undergo CEQA review, and courts evaluate whether those paper policies translate into real-world action. The Fourth Appellate District recently weighed in on one such situation – and found that key information got lost in translation.
In Spring Valley Lake Association v. City of Victorville (May 25, 2016), a local association challenged the construction of an approximately 215,000 square foot commercial retail development in the City of Victorville, which included an approximately 185,000 square foot Wal-Mart store. The challenge included claims under CEQA, state Planning and Zoning Law provisions concerning general plan consistency, and the Subdivision Map Act.
Fifth Appellate District Rejects CEQA and General Plan Consistency Challenges to Modesto Commercial Development
The City of Modesto and Downey Brand client Berberian Holdings, L.P. (“Berberian”), have prevailed in a legal challenge to a commercial development project proposed by Berberian. On June 7, the Fifth District Court of Appeal issued a 45-page unpublished opinion in the action (Naraghi Lakes Neighborhood Preservation Association v. City of Modesto), affirming
Appeals Court Affirms Cadiz Valley Groundwater Project
In a series of sweeping opinions, the Fourth Appellate District on Tuesday, May 10, upheld the Cadiz Valley Water Conservation, Recovery and Storage Project against six separate challenges brought by a host of environmental organizations and a salt mining operation. The Cadiz Project, initiated by the Santa Margarita Water District (SMWD) and Cadiz, Inc. in a public/private partnership, involves plans to pump native groundwater from the Fenner Valley Aquifer System in the Mojave Desert and deliver the water for municipal and industrial uses in Southern California. A later phase of the Project would include importing water for storage in the basin. With this ruling, the Cadiz Project has survived an onslaught of organized opposition. Six legal challenges were directed at overturning approvals granted by SMWD, as the CEQA lead agency, and the County, as the agency responsible for regulating the Project under the County’s own Desert Groundwater Management Ordinance.
Social and Psychological Impacts Related to “Community Character” Not Covered by CEQA
Is the “character” of a community part of the “environment” and therefore subject to analysis under CEQA, or is it instead a subjective state of mind of the people who live there? An appellate court has now weighed in.
In its decision in Preserve Poway v. City of Poway (March 9, 2016), the Fourth District Court of Appeal has upheld the use of a mitigated negative declaration (MND) for a project to subdivide a property currently occupied by an equestrian boarding and training facility. In doing so, the Court held that evidence of the project’s social and psychological impacts to the community does not require preparation of an environmental impact report (EIR), as CEQA does not address such impacts.
The property, located in the City of Poway (which calls itself the “City in the Country”), is currently being used as a boarding facility for approximately 100 horses, and it is located across the street from a 12-acre rodeo and polo grounds operated by the Poway Valley Riders Association (PVRA). The project involves the subdivision of the property into twelve residential lots, grading of the property, extension of an existing sewer line, undergrounding of existing utilities, installation of new curb, gutters, and fire hydrants, and flood channel improvements. No home construction is included in the project – any such construction would be subject to further environmental review and City approval.