(April 23, 2010) An Assembly committee heard comments this week on California Chamber of Commerce-supported bipartisan legislation sponsored by the Governor that would spur job creation by protecting environmentally sound projects from unnecessary lawsuits.
The bill gives a limited number of environmentally sound development projects protection from California Environmental Quality Act (CEQA) lawsuits only after those projects have met CEQA’s stringent environmental requirements.
Job Catalyst
Authored by Assemblyman Charles Calderon (D-Montebello) and Assemblyman Brian Nestande (R-Palm Desert) AB 1805 allows a select number of projects that have met their CEQA requirements to break ground sooner, which will create badly needed jobs and spur economic growth.
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| CalChamber Policy Advocate Robert Callahan voices strong support for job creator legislation to the Assembly Natural Resources Committee. |
Supporters of AB 1805 appearing before the Assembly Natural Resources Committee on April 19 included representatives of labor, engineers, contractors, builders, property owners and manufacturers.
AB 1805 was held in the Assembly policy committee without a vote, much as occurred in February with similar special session legislation in the Senate—SBX8 42 (Correa; D-Santa Ana/Cogdill; R-Modesto).
Calderon told the Assembly committee he wanted to amend the bill in response to comments from critics before asking the committee to vote on the proposal.
Diverse Projects
CalChamber Policy Advocate Robert Callahan emphasized the importance of AB 1805 to boosting the economy and putting people back to work.
The types of projects that could benefit from passage of AB 1805 represent the diverse priorities of California, he noted, including transportation, renewable energy, hospitals and schools.
Costly Delays
AB 1805 addresses the problem of important economic development projects being held up due to unnecessary and costly lawsuits filed under the guise of CEQA.
Nestande pointed out the average time to build a freeway interchange just studied in his district is 13 years—two years of construction and the remaining “11 years of planning and mitigation that drives up tremendously the cost of these projects.”
Calderon gave examples of projects around the state that have been delayed by opponents misusing the CEQA process.
Housing projects, shopping centers, infrastructure projects and more, often are challenged by opponents who simply dislike the project for non-environmental reasons and use CEQA litigation to frustrate, delay or even kill the project.
Ultimately, the economy suffers, jobs are lost and the public and private sectors spend millions of dollars defending themselves in court instead of creating jobs.
Protection
AB 1805 offers protection from CEQA litigation to a limited number of projects that already have been certified as meeting the environmental standards of CEQA.
This bill does not provide an exemption from the CEQA process.
Rather, the benefit of litigation protection is provided to a project only if:
- it has completed a full environmental review under CEQA and had that review certified;
- public hearings have been held in the region;
- it has been identified and approved by the Secretary of the Business Transportation and Housing Agency as having significant economic potential.
Selection Criteria
Projects are to be selected based on the following criteria:
- The number and quality of jobs that will be created by the project.
- The amount of capital investment made by the project.
- A balance between projects sponsored by public and private entities
The proposal will require the Business, Transportation and Housing Agency to select 25 projects each year for five years to protect from unwarranted litigation.
The bill will sunset in 2016.
Staff Contact: Robert Callahan