BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 1622| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: SB 1622 Author: Alarcon (D) Amended: 5/23/00 Vote: 21 SENATE ENERGY, U.&C. COMMITTEE : 6-2, 4/11/00 AYES: Bowen, Alarcon, Hughes, Peace, Solis, Vasconcellos NOES: Brulte, Kelley NOT VOTING: Mountjoy, Murray, Speier SENATE ENV. QUALITY COMMITTEE : 6-2, 4/24/00 AYES: Sher, Alarcon, Alpert, Chesbro, O'Connell, Solis NOES: Rainey, Wright NOT VOTING: Hayden, McPherson SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 SUBJECT : State Energy Resources SOURCE : Author DIGEST : This bill: 1.Requires the California Environmental Protection Agency, on or before July 1, 2001, in consultation with the Office of Planning and Research to develop and adopt an environmental justice mission statement for the State Energy Resources Conservation and Development Commission. 2.Requires the State Energy Resources Conservation and Development Commission, on or before January 1, 2002, to CONTINUED SB 1622 Page 2 adopt regulations that will ensure the commission is in conformance with the environmental justice mission statement (#1 above) and applicable federal guidance relating to environmental justice when certifying sites and related facilities. ANALYSIS : 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, requires 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 Director of OPR to carry out certain related responsibilities. Comments 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's office, "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 SB 1622 Page 3 Energy Commission fully complies with this federal mandate, it is necessary for the siting process to adequately identify and address environmental justice concerns." 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 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) 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 SB 1622 Page 4 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). 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 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. 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), in the Senate Appropriations Committee, creates the Environmental Justice Technical Assistance Grant Demonstration Project. SB 1622 Page 5 FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No SUPPORT : (Verified 5/23/00) California League of Conservation Voters Center on Race, Poverty and the Environment Communities for a Better Environment Greenlining Institute Planning and Conservation League Sierra Club California Southeast Alliance for Environmental Justice OPPOSITION : (Verified 5/23/00) California Chamber of Commerce California Council for Environmental and Economic Balance California Manufacturers and Technology Association Independent Energy Producers Western States Petroleum Association ARGUMENTS IN SUPPORT : Supporters of this bill 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." ARGUMENTS IN OPPOSITION : 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." CP:cm 5/23/00 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****