California Environmental Quality Act: small disadvantaged community water system: state small water system: exemption.

The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment, or to adopt a negative declaration or mitigated negative declaration, as specified, if it finds that the project will not have that effect. CEQA includes exemptions from its environmental review requirements for numerous categories of projects, as prescribed. This bill would, with certain specified exceptions, exempt from CEQA certain projects consisting solely of the installation, repair, or reconstruction of water infrastructure, as specified, that primarily benefits a small disadvantaged community water system, as defined, or a state small water system, as defined, by improving the small disadvantaged community water system's or state small water system's water quality, water supply, or water supply reliability, by encouraging water conservation, or by providing drinking water service to existing residences within a disadvantaged community, a small disadvantaged community water system, or a state small water system where there is evidence that the water exceeds maximum contaminant levels for primary or secondary drinking water standards or where the drinking water well is no longer able to produce an adequate supply of safe drinking water. To qualify for this CEQA exemption, the bill would require these projects to meet certain labor requirements and certain conditions, including fully mitigating all construction impacts and not affecting wetlands or sensitive habitat. The bill would also define various terms for purposes of this exemption. The bill would require the lead agency, before determining a project is exempt under these provisions, to contact the State Water Resources Control Board to determine whether claiming the exemption will affect the ability of the small disadvantaged community water system or the state small water system from receiving federal financial assistance or federally capitalized financial assistance. If the lead agency approves or carries out a project that is exempt from CEQA by the above provisions, the bill would require the lead agency to file a notice of exemption with the Office of Planning and Research and the county clerk of the county in which the project is located, as provided. Because a lead agency would be required to file the notice of exemption with the Office of Planning and Research and the county clerk, this bill would impose a state-mandated local program. The bill would repeal this exemption on January 1, 2028. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.