Don't Procrastinate: Make Your Comments on Environmental Analyses Early and Often

Recent appellate cases have once again brought to the fore the critical importance of the “exhaustion of administrative remedies” for any potential challenger to an agency action based on noncompliance with the California Environmental Quality Act (“CEQA”), the National Environmental Policy Act (“NEPA”) and other laws meant to protect the environment and public.

In California, as example, public projects such as road construction, airport development, and power facilities, as well as private projects such as shopping centers are challenged on the basis of the failure to exhaust administrative remedies, or to present the alleged grounds of noncompliance “to the public agency orally or in writing . . . during the public comment period provided by this division or prior to the close of the public hearing . . .” Cal. Pub. Res. Code § 21177.

All too often, individuals, environmental organizations and public agencies wait to make their decisions to challenge the analysis of a project’s environmental impacts until their frustration peaks, and the time for filing a legal challenge arrives. [The usual time for filing a CEQA challenge is very short – 30 days from the filing by the agency of its Notice of Determination (“NOD”) which marks the final agency action in the CEQA process. NEPA is normally 60 days from the signing of the Record of Decision (“ROD”).] By that time, however, it is too late, because “exhaustion of administrative remedies is a jurisdictional prerequisite to maintenance of a CEQA action.” Bakersfield Citizens for Local Control v. City of Bakersfield, 124 Cal.App.4th 1184, 1199 (2004).
 

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California High-Speed Rail Project Could Be Derailed

Proponents of California’s proposed high-speed rail project envision a high-speed rail network connecting Sacramento, San Francisco, Central Valley, Los Angeles, Orange County, the Inland Empire and San Diego. However, there are many obstacles, real or imagined, that could delay or derail the project. First, the House Subcommittee on Transportation voted to fund only $1.4 billion for high-speed rail in FY 2011, compared to the $4 billion they approved last year. The project appears to be plagued by unreliable cost, ridership and revenue projections, uncertainty about private investment and, given the State of California’s finances, the possibility that taxpayers may have to subsidize the project if revenue projections are not met. A high-speed rail system would reduce revenues for Metrolink and Amtrak. A number of cities and communities along the proposed routes oppose the project. Finally, the proposed project will require environmental review. Environmental review will include at least two alternatives (in addition to the mandatory “no-action” alternative) – a “shared track” alternative and a “dedicated track” alternative. Both present problems.

 

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Forget His Investments - Judge Feldman is Wrong for All the Right Reasons

Much has been made by progressive bloggers and commentators of the 17 energy investments owned by Judge Martin Feldman of the Federal District Court in New Orleans. Judge Feldman recently granted a preliminary injunction to energy company challengers to the Obama Administration’s May 22, 2010 moratorium on deep water drilling in the Gulf of Mexico. Those commentators missed the point. While Judge Feldman may, or may not, have breached the Canon of Judicial Ethics by deciding a case in which he had a financial interest, it is Chevalier, Allen & Lichman’s view, based on extensive experience in litigation against government agencies in the Federal courts, that Judge Feldman made manifest errors of law by failing to grant deference to the Department of the Interior in its determination that further drilling without additional safety inspections would endanger the public safety, and by allowing the economic interests of drilling companies to carry the weight in the balance of harms.

 

 

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The California Supreme Court Clarifies Environmental Review Baselines Under the California Environmental Quality Act (CEQA)

The California Supreme Court recently weighed in on the critical issue of the proper baseline to be used in assessing the environmental impacts of a proposed project under the California Environmental Quality Act (CEQA). [Agencies must use a “baseline” from which to determine whether a project’s environmental effects will be “significant.”]  In Communities For a Better Environment v. South Coast Air Quality Management District, et al., 48 Cal. App. 4th 310 (2010), ConocoPhillips Company argued that the proper baseline for environmental analysis of a project at a petroleum refinery employing existing equipment should be the maximum permitted operating capacity of the equipment, even if the equipment is operating below those levels at the time the environmental analysis is commenced. The Court rejected that argument, holding that the baseline for CEQA analysis must be the “existing physical conditions in the effected area” (i.e., “real conditions on the ground”), rather than the level of development or activity that “could” or “should” have been present according to a plan or regulation. This confirms the California CEQA Guidelines requirement that the baseline consist of the physical environmental conditions in the vicinity of the project as they exist at the time the notice of preparation of the EIR is published or at the time the environmental analysis begins. 14 Cal. Code Regs. §15125(a).
 

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Ninth Circuit Rules on the Appropriate Economic Analysis Approach in Designating Critical Habitats Under the Endangered Species Act

The Ninth Circuit Court of Appeals recently clarified the proper approach to be applied in analyzing the economic impacts of designating critical habitats for endangered or threatened species under the Endangered Species Act (ESA). In Arizona Cattle Growers' Association v. Salazar, the Court found that the U.S. Fish and Wildlife Service (FWS) properly applied a "baseline" approach in designating approximately 8.6 million acres of Federal land as critical habitat for the Mexican Spotted Owl. The Court also found that the FSW properly interpreted “occupied” as including not only areas where owls are found, but areas where owls are likely to be present as well. See, previous blog dated June 21, 2010.

A decision to list a species as endangered or threatened is made without reference to the economic effects of the decision. In contrast, an agency must consider the economic impacts of designating critical habitat in any particular area. Under the baseline approach used by the FWS, any economic impacts of protecting a species that will occur regardless of the critical habitat designation, such the economic impacts imposed by listing the species, are treated as part of the regulatory “baseline” and are not factored into the economic analysis of effects of the critical habitat designation.

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Ninth Circuit Upholds U.S. Fish and Wildlife Service's Interpretation of "Occupied" Under the Endangered Species Act Critical Habitat Designation Provision

In a recent case, Arizona Cattle Growers Association v. Salazar, the Ninth Circuit Court of Appeals upheld a designation by the U.S. Fish and Wildlife Service of approximately 8.6 million acres of Federal land as critical habitat for the Mexican Spotted Owl, a threatened species under the Endangered Species Act (“ESA”). In making the designation, FWS interpreted the word “occupied” in the ESA’s critical habitat provision to include not only areas where owls are found, but areas where owls are likely to be present as well.

 

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Senate Narrowly Turns Down Sen. Murkowski's (R-AK) Attempt to Overrule EPA's Greenhouse Gas Rules

After all of the debate was over, both on the Senate floor and in the press, it boiled down to a party line vote - again, with six Democrats crossing over to vote for the other side. As Jim Abrams of The Associated Press reported:

The defeated resolution would have denied the Environmental Protection Agency the authority to move ahead with [its] rules [requiring permits for greenhouse gas emissions (“the tailoring rule”)], crafted under the federal Clean Air Act. With President Barack Obama’s broader clean energy legislation struggling to gain a foothold in the Senate, the vote took on greater significance as a signal of where lawmakers stand on dealing with climate change.
 

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Wind Farms and Agricultural Aviation

With the advent of wind energy development, much attention has been given in the aviation community to the impacts wind turbines located near airports might have on aviation safety. However, a not so readily apparent impact that has not been widely addressed is the impact of wind farms on an important segment of aviation, agricultural aviation. Because many of the country’s richest wind resources are located in agricultural areas, an increasing number of wind farms are being built on leased farmland property. Wind farm land leases provide farmland owners a continuing income source. However, in negotiating, preparing and entering into lease agreements, wind energy developers and landowners should consider other potential economic impacts wind farms might have on farming operations which extend beyond the boundaries of the leased property. Continue Reading...

Santa Monica and Logan Airport Health Studies are Targeting the Wrong Problem

Much has been made recently of the studies currently underway in areas around Boston Logan and Santa Monica Airports, aimed at determining the health impacts of those airports on surrounding populations.  While the aim is noble, and the information to be gained useful in structuring individual living choices, the result will have little or no impact on the operation of those airports. 

 

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Proposed Project to Close "710 Gap" Will Require Environmental Review

On Thursday, May 27th, the Los Angeles County Metropolitan Transportation Authority (MTA) will consider approving the preparation of a comprehensive State Route 710 corridor study, which will include alternatives and environmental impacts of a project that would close the 4 mile gap in the Long Beach (710) Freeway between Alhambra and Pasadena. Alternatives will include improvements to surface streets, construction of a surface freeway and a series of tunnels. The project would be subject to environmental review under the National Environmental Policy Act (NEPA) and the California Environmental Quality Act (CEQA). The 710 Freeway Project would also have to comply with the Clear Air Act, Clean Water Act and Historic Preservation Act. The tunnels alternative[s] will present unique issues concerning groundwater, contaminated soils and active fault lines.

The 710 Freeway was originally planned to extend from Long Beach to Pasadena. The Long Beach to Valley Boulevard segment was opened in 1965. However, since that time the segment between Valley Boulevard and Pasadena has been stalled by public controversy and court actions, resulting in the “710 gap.” Opponents argued that completion of the Valley View to Pasadena segment would require destruction of hundreds of homes and some historic properties. Residents in other areas complained about noise and air pollution caused by heavier traffic on other freeways and surface streets because of 710 gap, and supported completion of the freeway. In 1999 a U.S District Court Judge ruled that the project, as then proposed, violated the Clear Air Act, NEPA and the Historic Preservation Act. Rather than remedy the violations, the Federal Highways Administration (FHWA) rescinded its Record of Decision (ROD) and the California Transportation Commission withdrew its Notice of Determination.

Wind Farm Projects - Federal and Local Environmental and Legal Issues

In the midst of much debate as to whether a threat of “global warming” and “global climate change” actually exists and, if it does, further debate as to whether wind-generated energy would reduce carbon-dioxide emissions sufficiently to have a measurable impact on global temperatures, one thing is certain – wind farms are here, and more are planned. And, as with all forms of energy generation, the siting, construction and operation of wind farms present a number of Federal and local environmental and legal issues.

At the Federal level, wind farm projects may be subject to environmental review under the National Environmental Policy Act (NEPA). They may also be subject to challenge under the Clean Water Act, Endangered Species Act, Migratory Bird Treaty Act, Rivers and Harbors Act and the Outer Continental Shelf Lands Act. (The Mineral Management Services (MMS) has authority to regulate alternative energy projects on the Outer Continental Shelf.) Other regulatory issues include Bureau of Land Management (BLM) policies for wind energy projects proposed for land managed by BLM, and U.S. Forest Service (USFS) special use permit requirements for wind energy projects proposed on USFS managed land. Wind farm projects proposed near airports or military airfields must be evaluated by the Federal Aviation Administration (FAA) to determine if they would be an obstruction or hazard to air navigation or interfere with surveillance radar. Wind farm projects can sometimes impact tribal rights.

Potential state and local issues include state environmental review, project siting, permitting and licensing, zoning and surrounding land uses, land leases and easements, turbine noise, vibration (“aerodynamic modulation”), shadow flicker, visual impacts and aesthetic concerns, perceived health effects of wind turbines, interference with electromagnetic transmissions (radio, television and cell phone signals) and claims for declines in tourism and property values. There can also be issues concerning technical requirements, safety, insurance and liabilities on the part of developers, landowners and operators.

These and other wind farm related issues are being litigated, and will continue to be litigated in increasing numbers, in state and Federal courts. The litigation ranges from a case pending in a North Dakota District Court, in which the City of Wishek is seeking to force a homeowner to remove a single wind turbine from his yard, to the 130-turbine Cape Wind project, located in waters five miles off Cape Cod and recently approved by the FAA and the Department of Interior, which opponents have vowed will “be in litigation for years.”

CEQ's Steps to Modernize and Reinvigorate NEPA Includes Reporting on Climate Change Effects of Federal Actions

The Council on Environmental Quality, on February 18, 2010, proposed three substantive steps to “modernize and reinvigorate” the National Environmental Policy Act (NEPA). According to Nancy Sutley, the Chair of the White House-based CEQ, these measures “will assist Federal agencies to meet the goals of NEPA, enhance the quality of public involvement in governmental decisions relating to the environment, increase transparency and ease implementation.”

These three steps include when and how Federal agencies must consider greenhouse gas emissions and climate change in their proposed actions; clarifying appropriateness of “Findings of No Significant Impact” and specifying when there is a need to monitor environmental mitigation commitments; and clarifying use of categorical exclusions. The CEQ is requesting public comment on all three of the draft guidances.

The Effects of Climate Change and Greenhouse Gas Emissions Must be Considered in the NEPA Process

Perhaps the most critical element to this modernization of the NEPA process is the CEQ’s draft guidance on when and how Federal agencies must consider greenhouse gas emissions and climate change in their proposed actions. According to the CEQ:

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