BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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          |SENATE RULES COMMITTEE            |                  SB 1622|
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                                 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  
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            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  







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          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  







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          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. 







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           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

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