BILL ANALYSIS                                                                                                                                                                                                    



                                                               SB 1622
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                               Byron D. Sher, Chairman
                              1999-2000 Regular Session
                                           
           BILL NO:    SB 1622
           AUTHOR:     Senator Alarcon
           AMENDED:    April 24, 2000
           FISCAL:     Yes               HEARING DATE:     April 24, 2000
           URGENCY:    No                CONSULTANT:       Randy Pestor
            
           SUBJECT  :    ENVIRONMENTAL JUSTICE

            SUMMARY  :    
           
            Existing law  :

           1) Under Environmental Justice Law, requires the California  
              Environmental Protection Agency (Cal-EPA) to meet certain  
              requirements relating to environmental justice, and to  
              develop a model environmental justice mission statement for  
              boards, departments, and offices within the agency.

           2) Under the Warren-Alquist State Energy Resources  
              Conservation and Development Act, establishes the State  
              Energy Resources Conservation and Development Commission  
              (CEC) with various energy responsibilities, including  
              planning and forecasting, assistance, research and  
              development, and power facility and site certification.

           3) Requires the Governor's Office of Planning and Research  
              (OPR) to be the coordinating agency in state government for  
              environmental justice programs and requires the OPR  
              director to carry out certain related responsibilities.

            This bill  :

           1) Under Environmental Justice Law, requires Cal-EPA, in  
              consultation with the Resources Agency and CEC, to also  
              develop a model environmental justice mission statement for  
              the CEC.

           2) Under the Warren-Alquist State Energy Resources  
              Conservation and Development Act, requires the CEC on or  









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              before January 1, 2002, to adopt regulations that will  
              ensure the CEC is in conformance with applicable federal  
              guidance relating to environmental justice when certifying  
              sites and related facilities.

            COMMENTS  :

            1) Purpose of Bill  .  SB 115 (Solis) Chapter 690, Statutes of  
              1999, enacted the Environmental Justice Law and requires  
              OPR to be the coordinating agency in state government for  
              environmental justice programs (#1, 3 above).

           According to the author, "With applications for 42 new power  
              plants currently pending or anticipated in the next few  
              years, the California Energy Commission is a major state  
              environmental permitting entity.  However, because the  
              Energy Commission is part of the Resources Agency instead  
              of Cal-EPA, it is not covered by SB 115.  Moreover, Title  
              VI of the federal Civil Rights Act of 1964 prohibits  
              recipients of federal financial assistance from  
              discriminating on the basis of race, color, or national  
              origin in their programs or activities.  To ensure that the  
              Energy Commission fully complies with this federal mandate,  
              it is necessary for the siting process to adequately  
              identify and address environmental justice concerns."

            2) Background.   Environmental justice refers to the fair  
              treatment of people of all races, cultures, and income with  
              respect to the development, adoption, implementation, and  
              enforcement of environmental laws, regulations, and  
              policies.  On February 11, 1994, President Clinton signed  
              Executive Order 12898 regarding "federal actions to address  
              environmental justice in minority populations and  
              low-income populations."  The executive order directs  
              federal agencies to address human health and environmental  
              issues in low-income communities and minority communities,  
              and followed a 1992 Environmental Protection Agency (EPA)  
              report indicating that "communities of color and low-income  
              populations experience higher than average exposures to  
              selected air pollutants, hazardous waste facilities, and  
              other forms of environmental pollution."  

           The President also directed each federal agency to address  









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              effects of actions on these communities when analysis is  
              required under the National Environmental Policy Act  
              (NEPA).  The Council on Environmental Quality (CEQ) has  
              oversight of federal government compliance with the  
              executive order and NEPA, and the CEQ has developed  
              guidance to assist federal agencies with their NEPA  
              procedures (  NOTE  :  Enacted in 1970, CEQA was modeled after  
              NEPA which was enacted by Congress in 1969).
           EPA's Office of Civil Rights also processes complaints filed  
              under Title VI of the Civil Rights Act of 1964, "alleging  
              discriminatory intent or effect based on race, color, or  
              national origin resulting from the issuance of pollution  
              control permits by State or local governmental agencies  
              that receive EPA funding." 

           SB 115 (Solis), as approved by the committee, tracked  
              requirements of federal environmental justice provisions by  
              requiring each state agency to make environmental justice  
              part of its mission, requiring OPR to develop an agencywide  
              environmental justice strategy, and requiring changes to  
              the CEQA guidelines so that environmental justice matters  
              are considered in the CEQA process.  SB 115 required OPR to  
              identify communities and populations disproportionately  
              affected by high and adverse environmental effects and to  
              identify communities and populations where existing data or  
              information is insufficient or incomplete and propose  
              strategies for correcting those deficiencies.  SB 115 also  
              required OPR and the secretary to coordinate their efforts  
              with the CEQ and U.S. Environmental Protection Agency.   
              Because of concerns by the Governor and certain interest  
              groups, SB 115 was subsequently amended to strike these  
              provisions and add certain OPR and Cal-EPA requirements  
              (see #1 and 3 above).

            3) Examples of environmental justice matters.   There are a  
              number of factors to be considered in identifying an  
              environmental justice issue.  Factors that could be  
              considered include, for example, a concentration of  
              environmental hazards in an affected area because of the  
              lack of public participation, a lack of adequate protection  
              under health and environmental laws, or unusual  
              vulnerability of a community to hazards.  Examples of  
              environmental justice problems could include inadequate  









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              stormwater protection in a predominately minority populated  
              section of a city compared to systems in other parts of the  
              city, siting a landfill in a community with an  
              overconcentration of other hazards such as Superfund sites,  
              placement of a highway through a low-income and minority  
              community, and unsafe stormwater discharges harming fish  
              that are part of the subsistence diet of Native Americans.   
              Environmental justice concerns, therefore, are not limited  
              to the responsibilities of entities under Cal-EPA.

            4) More clarification needed?   Should the CEC, rather than  
              Cal-EPA, develop the CEC environmental justice mission  
              statement?  Because OPR is the coordinating agency in state  
              government for environmental justice matters, OPR should be  
              consulted in developing a model environmental justice  
              mission statement.  Also, it may be more appropriate for  
              the CEC rules and regulations to conform to that state  
              environmental justice mission statement. 

            5) Related legislation.   SB 89 (Escutia), currently at the  
              Assembly Desk, revises the Environmental Justice Law to  
              require the Cal-EPA Secretary to convene a Working Group  
              with certain responsibilities, to convene a technical  
              advisory group to assist the working group, and to prepare  
              and submit a report to the Governor and the Legislature  
              every three years regarding implementation of the law.

           SB 1408 (Alarcon), to be heard by the committee April 24,  
              2000, creates the Environmental Justice Technical  
              Assistance Grant Demonstration Project.

           6) Support and opposition highlights.   Supporters of SB 1622  
              generally note the need to account for environmental  
              justice considerations in the energy facility siting  
              process, especially because power plants subject to the  
              siting process are "inherently large projects, usually with  
              significant environmental impacts."  Opponents are  
              generally concerned about the reference to conformity with  
              federal environmental justice guidance when OPR and Cal-EPA  
              are "embarking on a separate effort to develop  
              environmental justice policies . . ." and also assert that  
              the CEC is not "an environmental agency."










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            7) Technical considerations.   Environmental Justice Law added  
              Part 3 (commencing with Public Resources Code 72000) to  
              Division 34 of the Public Resources Code.  AB 703 (Lempert)  
              Chapter 849, Statutes of 1999, enacted the Ballast Water  
              Management for Control of Nonindigenous Species Law by  
              adding Division 36 (commencing with 71200) to the Public  
              Resources Code.  To avoid confusion, Environmental Justice  
              Law should therefore be renumbered to commence with 71100  
              of the Public Resource Code.

            SOURCE  :        Senator Alarcon 

           SUPPORT  :       California League of Conservation Voters
           Center on Race, Poverty & the Environment
           Communities for a Better Environment
           Greenlining Institute
                          Planning and Conservation League
                          Sierra Club California
                          Southeast Alliance for Environmental Justice  

           OPPOSITION  :    California Chamber of Commerce
           California Council for Environmental and Economic Balance
           California Manufacturers & Technology Association
           Independent Energy Producers
           Western States Petroleum Association