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Everything You Wanted To Know About Thresholds of Significance:
How To Formulate, Apply and Defend Them
Sign-Up to the Environment & Land Use Groups

Stephen Kostka, Esq.              Marie Cooper, Esq.

McCutchen, Doyle, Brown & Enersen, LLP

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1. Introduction

2. Identifying Standards Of Significance
    A. Formal Thresholds Of Significance Adopted By The Lead Agency
    B. Environmental Standards Of General Application
    C. Significance Standards In The CEQA Guidelines

3. Some Unresolved Questions Relating To Standards Of Significance
    A.  May agencies rely on thresholds of significance that do not meet          the requirements of Guideline § 15064(h) or 15064.7?
    B.  How should agencies treat conflicting environmental standards?
    C.  Can adopted standards be used to support a Negative Declaration
         if there is disagreement among experts over the significance of the          impact?

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1. INTRODUCTION

Any analysis of environmental impacts under California Environmental Quality Act ("CEQA") includes an assessment of the nature and extent of each impact expected to result from the project, together with a comparison of each impact against the threshold of significance to determine whether the impact will be treated as significant or less than significant.

The determination whether an impact is to be considered significant involves a judgment call on the part of the lead agency regarding the level of impacts that will be considered acceptable in the community.

Accordingly, CEQA gives lead agencies discretion whether to classify a particular environmental impact as significant. "The determination of whether a project may have a significant effect on the environment calls for careful judgment on the part of the public agency involved." 14 Cal Code Regs § 15064(b). The CEQA Guidelines also recognize that "the significance of an activity may vary with the setting" and, as a result, an inflexible definition of significant effects is neither possible nor advisable. Id. See National Parks & Conservation Assn. v County of Riverside (1999) 71 CA4th 1341, 1357 (agency has discretion to use thresholds of significance that vary depending on the nature of the area affected.)

Ultimately, formulation of a standard of significance requires the lead agency to make a policy judgment about where the line should be drawn distinguishing adverse impacts it considers significant from those that are not deemed significant. This judgment must, however, be based on scientific information and other evidence to the extent possible. 14 Cal Code Regs § 15064(b).

2. IDENTIFYING STANDARDS OF SIGNIFICANCE

Standards of significance used in an EIR are often developed by the consultants and agency staff preparing the EIR on a case by case basis, based on their assessment of the evidence relating to each impact. EIR preparers often rely on ordinances, regulations or plans adopted by the lead agency that provide standards relating to environmental issues as guidance when formulating such standards. See National Parks & Conservation Assn. v County of Riverside (1999) 71 CA4th 1341, 1358 (court upheld EIR's use of county residential noise standards as the standard for assessing the significance of the project's noise impacts to nonwilderness areas of a national park).

The CEQA Guidelines also suggest several other appropriate sources of standards of significance:

A. Formal Thresholds Of Significance Adopted By The Lead Agency.

Section 15064.7 of the CEQA Guidelines encourages lead agencies to adopt and publish "thresholds of significance" for general use in determining whether environmental impacts are significant. A threshold of significance is defined as "an identifiable quantitative, qualitative or performance level of a particular environmental effect." 14 Cal Code Regs § 15064.7(a).

Once such thresholds are established, an impact which complies with the applicable threshold will "normally" be found insignificant and an impact which does not comply with the applicable threshold will "normally" be found significant. Id.

Such thresholds of significance must be adopted by ordinance, resolution, rule, or regulation, be developed through a public review process, and be supported by substantial evidence. 14 Cal Code Regs § 15064.7(b).

B. Environmental Standards Of General Application.

Under section 15064(h) of the CEQA Guidelines, a change to the environment is not a significant environmental effect if the change complies with an adopted environmental standard of general application. 14 Cal Code Regs § 15064(h)(1)(A). The premise of this Guideline is that an environmental impact ordinarily should not be found significant if it is consistent with a formal standard adopted by a regulatory agency to protect the environment.

To qualify as a standard of general application, specific requirements must be met. The standard must: (i) specify a quantitative, qualitative or performance requirement and be contained in a statute, ordinance, resolution, rule, regulation, order, or other agency action of general application;

(ii) be adopted for purposes of environmental protection;

(iii) implement, interpret, or make specific the law enforced or administered by the agency and be adopted through a public review process;

(iv) govern the same environmental effect as is evaluated in the CEQA document; and

(v) be applicable within the jurisdiction where the project will be located. 14 Cal Code Regs § 15064(h)(3).

Note that the provisions of this Guideline are not limited to standards adopted by regulatory agencies. Significance thresholds adopted by the lead agency which meet these requirements may also serve as an applicable "environmental standard." 14 Cal Code Regs § 15064(h)(4).

Under Guideline § 15064(h)(1)(A), an impact that complies with an environmental standard of general application should ordinarily be treated as less than a significant effect. A lead agency may, however, determine that it is not appropriate to apply a relevant standard of general application to a particular project as long as such a determination is supported by substantial evidence in light of the whole record. 14 Cal Code Regs § 15064(h)(1)(C). The agency then must determine whether the effect will be significant in accordance with the other provisions of the Guidelines. Id.

C. Significance Standards In The CEQA Guidelines.

An agency may also turn to the environmental impact checklist in Appendix G of the CEQA Guidelines for guidance regarding what impacts should be considered significant. The questions in the Appendix G checklist are derived largely from environmental standards found in various environmental laws and regulations, provisions of the CEQA Guidelines, and significance thresholds that agencies commonly use.

Although Appendix G is designed to provide a checklist that agencies can use as an initial study for determining whether an EIR is required, some lead agencies use the standards in Appendix G as a basis for defining significance thresholds in an EIR.

The CEQA Guidelines also include standards defining impacts to biological, historical and archaeological resources that will trigger the need to complete an EIR. Many agencies use these same standards as significance thresholds in an EIR. For example, Guideline § 15065 states that an EIR must be prepared if a project has the potential to substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, or reduce the number or restrict the range of an endangered, rare or threatened species. 14 Cal Code Regs § 15065(a). Similarly, the statute and Guidelines also contain standards for finding a significant effect when a project may adversely affect historical archaeological resources. Pub Res C §§ 21084.1, 21083.2(a); 14 Cal Code Regs §§ 15064.5(b), (c). Although these mandatory standards apply to determinations whether to prepare an EIR, lead agencies often use these standards as significance thresholds in an EIR.

3. SOME UNRESOLVED QUESTIONS RELATING TO STANDARDS OF SIGNIFICANCE

A. May agencies rely on thresholds of significance that do not meet the requirements of Guideline § 15064(h) or 15064.7?

In National Parks and Conservation Ass'n v. County of Riverside (1999) 71 Cal. App. 4th 1341, project opponents argued that Guideline § 15064(h) defines the exclusive standards that may be used by an agency to determine the significance of environmental effects and urged that standards contained in various federal and state statutes necessitated a finding of significance. Because the amendments to Guideline § 15064(h) were not in effect at the time of project approval, the court did not decide the issue. It appears, however, that this Guideline is not intended to preempt other means for establishing standards of significance.

Guideline § 15064(h) specifically provides that an agency may determine that an otherwise applicable environmental standard is "inappropriate" for a particular project, as long as that determination is supported by substantial evidence. In addition, the procedure in Guideline § 15064.7 is obviously intended to provide an independent method for identifying standards of significance which agencies are encouraged, but not required, to use. Neither Guideline includes any limitations on an agency's discretion to develop significance standards in other ways, or use significance standards specifically tailored for the project under review. In addition, Guideline § 15064(b) still recognizes the policy discretion inherent in setting a standard of significance.

Nevertheless, it should be recognized that Guideline § 15064(h) creates a presumption that lead agencies preparing CEQA documents will rely on environmental standards adopted by resource agencies. If there is no applicable standard which meets the test for an environmental standard of general application, the lead agency must determine whether the effect may be significant under the other applicable provisions of the Guidelines. 14 Cal Code Regs § 15064(h)(2).

When an environmental standard adopted by a resource agency specifically applies to an impact, lead agencies should ordinarily use that standard, instead of using an ad hoc standard, unless it is clear from the evidence that it is reasonable to apply different standard to the project at hand.

B. How should agencies treat conflicting environmental standards?

Under Guideline § 15064(h)(1)(B) the agency must decide, based on substantial evidence, which standard is appropriate when conflicting standards are available. If two or more relevant standards exist, the lead agency has discretion to determine which standard to apply, but its determination must be based upon substantial evidence. 14 Cal Code Regs § 15064(h)(1)(B).

As a practical matter, the need to resolve such conflicts should arise only rarely. The criteria in Guideline § 15064(h) defining environmental standards of general application are precise. Careful application of the requirements that the standard derive from the law enforced or administered by the adopting agency and govern the same environment effect as is examined in the CEQA document will, in most cases, eliminate apparent conflicts.

As a general matter, when such conflicts do arise, it is particularly important for the lead agency's decision to choose one standard over the other to be well documented and amply supported by evidence, particularly when the standard that is employed might be characterized as less protective of the environment than the standard that is rejected.

C. Can adopted standards be used to support a Negative Declaration "if there is disagreement among experts over the significance of an impact?

Under Guideline § 15064(g) "the Lead Agency shall treat the effect as significant and prepare an EIR when experts differ over the significance of an impact." Under this Guideline, if there is a true disagreement among experts - as opposed to citizen complaints about the standard of significance - then an EIR may be required. However, it is doubtful that this rule should apply when a lead agency is relying on an environmental standard of general applicability in accordance with Guideline § 15064(h). Under that Guideline, a change in the environment "is not a significant effect" if it complies with an applicable environmental standard satisfying the requirements of that Guideline. A disagreement with the standard, raised by an expert after the statute of limitations for challenging the ordinance by which the general environmental standard was adopted, should not change that conclusion.

DISCLAIMER: This discussion is general in nature and is not intended to and does not create a lawyer/client relationship. This discussion should in no way be relied upon or construed as legal advice, particularly since most legal outcomes are highly dependent on the facts of a particular case or situation. This discussion is provided on the condition that it cannot be referred to or quoted in any legal proceeding; if this condition is unacceptable to you, immediately delete this email and do not keep a copy of it in any form. The reader or recipient is strongly urged to consult with a lawyer for legal advice on these matters. Any reliance on the discussion information by someone who has not entered into a written retainer agreement with the lawyer providing the discussion information is at the reader's or recipient's own risk.

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