This action was brought under the California Environmental Quality Act (CEQA)
The Parker Place Project is proposed by CityCentric Investments, LLC, and Parker Place Group, LLC, and was approved by the Berkeley City Council.
The three parcels are currently occupied by a car dealership, Berkeley Honda. The showroom, offices, and service garage are located at 2600 Shattuck Avenue, and a sales lot is located at 2598 Shattuck Avenue and 2037 Parker Street. Since 1923, 2600 Shattuck Avenue has been the site of a car dealership and service garage, and from at least 1922 to 1960, 2598 Shattuck Avenue was the site of a service station.
These recommendations were accepted, and the results were described in the phase II report issued in March 2006. The ground-penetrating-radar study located a suspected underground storage tank under the sidewalk next to 2600 Shattuck Avenue and recommended its removal. It also identified a concrete pad at 2598 Shattuck Avenue that might conceal an underground storage tank. The ground-contamination investigation collected soil samples from 20 borings near areas of potential contamination, and water samples were collected where the borings encountered groundwater. Various volatile organic compounds (VOCs) were detected in two soil samples and a water sample, but they did not "exceed the San Francisco Regional Water Quality Control Board ... Environmental Screening Levels ..., or there are no [environmental-screening levels] established for the contaminant." The report recommended additional soil and water sampling in other areas of concern, including under the concrete pad to determine if there was petroleum in the soil and thus whether an underground storage tank might be there.
This recommendation was accepted, and the results were announced in a supplemental phase II report. Although petroleum hydrocarbons, arsenic, and cobalt were detected in amounts exceeding San Francisco Regional Water Quality Control Board (Regional Board) environmental-screening levels for commercial/industrial land use, the report noted that the hydrocarbon contamination was "not likely" to "require cleanup" and that the arsenic and cobalt were probably "naturally occurring." No contaminants were detected in amounts exceeding environmental-screening levels for groundwater that was not a potential source of drinking water. The supplemental report also determined that there was no underground storage tank or soil contamination under the concrete pad.
In January 2007, the Regional Board issued a closure letter finding that no further corrective action related to the petroleum contamination was necessary at the project's site. A printout of a State Water Resources Control Board Web site identifying sites on the Cortese list showed that the project's site remained on the list but was given the status of "case closed" the day after the Regional Board's closure letter was issued.
Almost two years later, in December 2008, CityCentric applied to begin constructing the project. A use permit was finally approved in 2010 after the City determined that CEQA did not apply because the project fell under a regulatory exemption for urban "In-Fill Development Projects."
Parker Shattuck brought a writ of mandate to challenge the City's approval of the project in Parker Shattuck Neighbors v. Berkeley City Council (Super. Ct. Alameda County, 2011, No. RG10544097). Although the trial court rejected Parker Shattuck's various arguments under CEQA, finding they were not raised at the administrative level, it granted the writ and ordered the City to vacate approval of the project after it found that the City had allowed the project to be modified without first holding a public hearing. The City vacated the project's approval in October 2011.
In the second round of administrative proceedings, the City assumed the CEQA exemption for urban in-fill projects (Guidelines, § 15332) was inapplicable. On November 1, 2011, the City released for public comment a proposed mitigated negative declaration (MND), which incorporated the initial study.
The proposed MND found that the project would potentially affect several environmental factors, including the category entitled "Hazards & Hazardous
Parker Shattuck submitted comments on the proposed MND, including comments from Matthew Hagemann, a hydrogeologist and expert on air quality. Relying on Hagemann's comments, Parker Shattuck argued that an EIR was required because the MND's mitigation measures failed adequately to address the health threat of the toxic soil contamination to construction workers and future residents of the project. A week later, Parker Shattuck submitted additional comments, which primarily discussed comments on the MND submitted by the East Bay Municipal Utilities District (EBMUD). EBMUD's letter informed the City that the utilities district "[would] not inspect, install or maintain pipeline or services" in soil or groundwater that was contaminated above certain levels and until the district was able to review contamination data and remediation plans. Parker Shattuck argued that these comments further demonstrated that the MND's mitigation measures were insufficient.
The Berkeley Zoning Adjustments Board held a public hearing on December 8 and adopted the MND. Parker Shattuck appealed the decision to the Berkeley City Council. In January 2012, the Berkeley City Council approved the project.
Parker Shattuck filed this lawsuit in February 2012, seeking a writ of mandate to compel the City to set aside approval of the MND and project and to prepare an EIR. The lawsuit also sought injunctive relief, costs, and attorney fees. Although during the administrative proceedings Parker Shattuck had raised other concerns about the project, such as the potential for
The trial court issued a tentative order denying the petition, and a hearing occurred over two days in July 2012. The court then issued an order and proposed statement of decision denying the petition and entered judgment. Parker Shattuck timely appealed.
If the project is not exempt from CEQA, the next step is to conduct an initial study. (Davidon Homes, supra, 54 Cal.App.4th at p. 113.) The initial study determines whether there is "`substantial evidence that the project may have a significant effect on the environment.'" (Architectural Heritage Assn. v. County of Monterey (2004) 122 Cal.App.4th 1095, 1101 [19 Cal.Rptr.3d 469] (AHA).) If there is no such evidence, "`CEQA excuses the preparation of an EIR and allows the use of a negative declaration....'" (Ibid.) If there is such evidence, "`but revisions in the project plans "would avoid the effects or mitigate the effects to a point where clearly no significant effect on the environment would occur" and there is no substantial evidence that the project as revised may have a significant effect on the environment, [an MND] may be used.'" (Ibid.)
The lead agency must prepare an EIR "whenever substantial evidence supports a fair argument that a proposed project `may have a significant effect on the environment.'" (Laurel Heights Improvement Assn. v. Regents of University of California, supra, 6 Cal.4th at p. 1123.) "The fair argument standard is a `low threshold' test for requiring the preparation of an EIR." (Pocket Protectors v. City of Sacramento (2004) 124 Cal.App.4th 903, 928 [21 Cal.Rptr.3d 791].) "[F]acts, reasonable assumptions predicated upon facts, and expert opinion supported by facts" all constitute "[s]ubstantial evidence" of a significant effect on the environment, and "[a]rgument, speculation, unsubstantiated opinion or narrative, or evidence that is clearly inaccurate or erroneous, or evidence that is not credible" do not. (Guidelines, § 15064, subd. (f)(5).) As long as there is substantial evidence of a potential significant environmental effect, "contrary evidence is not adequate to support a decision to dispense with an EIR." (Sierra Club v. County of Sonoma (1992) 6 Cal.App.4th 1307, 1316 [8 Cal.Rptr.2d 473].)
An agency's decision under CEQA is reviewed for abuse of discretion. (§§ 21168, 21168.5; County of Amador v. El Dorado County Water Agency (1999) 76 Cal.App.4th 931, 945 [91 Cal.Rptr.2d 66].) "`Abuse of discretion is shown if (1) the agency has not proceeded in a manner required by law, or (2) the determination is not supported by substantial evidence.'" (County of Amador, at p. 945.) Review is de novo in the sense that "[t]he appellate court reviews the agency's action, not the trial court's decision...." (Vineyard Area Citizens for Responsible Growth, Inc. v. City of Rancho Cordova (2007) 40 Cal.4th 412, 427 [53 Cal.Rptr.3d 821, 150 P.3d 709].)
When reviewing the agency's determination not to prepare an EIR, we "determine whether substantial evidence supported the agency's conclusion as to whether the prescribed `fair argument' could be made." (Friends of "B" Street v. City of Hayward (1980) 106 Cal.App.3d 988, 1002 [165 Cal.Rptr. 514].) "`[T]he sufficiency of the evidence to support a fair argument'" is a question of law. (Sierra Club v. County of Sonoma, supra, 6 Cal.App.4th at p. 1318.) When determining whether sufficient evidence exists to support a
We limit our review to the administrative record because the agency's determination that an MND is appropriate depends on "the absence of `substantial evidence in light of the whole record before the ... agency that the project, as revised, may have a significant effect on the environment.'" (AHA, supra, 122 Cal.App.4th at p. 1111, italics omitted; see §§ 21080, subd. (d), 21082.2, subds. (a), (d) [determination whether project will have a significant effect on the environment and whether EIR must be prepared is made "in light of the whole record before the lead agency"].) Parker Shattuck has the burden of proof "to demonstrate by citation to the record the existence of substantial evidence supporting a fair argument of significant environmental impact." (League for Protection of Oakland's etc. Historic Resources v. City of Oakland (1997) 52 Cal.App.4th 896, 904 [60 Cal.Rptr.2d 821].) "Unless the administrative record contains this evidence, and [plaintiffs] cite[] to it, no `fair argument' that an EIR is necessary can be made." (South Orange County Wastewater Authority v. City of Dana Point (2011) 196 Cal.App.4th 1604, 1612-1613 [127 Cal.Rptr.3d 636] (SOCWA).)
Parker Shattuck contends that the City is required to prepare an EIR because the MND contains inadequate measures to mitigate environmental effects that will be caused by "excavating and disturbing toxic soil." It argues that the project will have a significant effect on the environment by threatening the health of construction workers and future residents. We conclude that Parker Shattuck has failed to identify substantial evidence supporting a fair argument that potential health risks to workers and future residents might constitute a significant environmental impact. Accordingly, we need not consider whether the MND contained adequate mitigation measures because such "measures are not required for effects which are not found to be significant." (Guidelines, § 15126.4, subd. (a)(3).)
The City argues that this case is not about the project affecting the environment, but is instead about the environment (i.e., any contaminated soil or groundwater at the site) affecting the project. In support of its position, it relies on several cases holding that the environment's impact on a project is not a "`significant effect on the environment.'" But these decisions, with one exception, are not directly applicable here because the projects in those cases, unlike the project here, did not involve a physical change in the environment.
This holding was premised on the finding that the project would not cause a physical change related to the contamination. The court specifically rejected the plaintiff's contention "that the construction of the facility `may expose or exacerbate the existing ground contamination'" because all the contamination sources were several hundred feet away from the building site, and there was no evidence that the project would disturb contaminated soil. (Baird, supra, 32 Cal.App.4th at p. 1468, fn. 1.) The observation implies that the court would have considered the disturbance of contaminated soil an effect on the environment, further supporting our conclusion that disturbing contaminated soil is a physical change that, under the right circumstances, may cause an environmental effect that is cognizable under CEQA.
In another case relied upon by the City, SOCWA, the plaintiff operated a sewage treatment plant next to the site of a proposed development and contended that an EIR was necessary to consider the effect of the plant's odors on the development. (SOCWA, supra, 196 Cal.App.4th at pp. 1608, 1613.) The court held that CEQA could not be used "to defend the proposed project (the future residences) from a purportedly adverse existing environment (smells from the sewage treatment plant)." (SOCWA, at p. 1614.) The court concluded that an EIR was unnecessary because the plaintiff had failed to identify any relevant effect on the environment. (Id. at p. 1616.) And the same result was reached in yet another case relied upon by the City, Ballona Wetlands Land Trust v. City of Los Angeles (2011) 201 Cal.App.4th 455 [134 Cal.Rptr.3d 194] (Ballona), where the court held that an EIR did not need to address impacts relating to "sea level rise resulting from global climate change" on a proposed mixed-use development where the project itself would not cause sea levels to rise. (Id. at pp. 462-464, 475.) Thus, neither Baird, SOCWA, nor Ballona involved a project that would itself physically change the environment. By contrast, Parker Shattuck has identified an aspect of the project — the disturbance of contaminated soils — that will physically change the environment.
We also do not accept Parker Shattuck's argument that an EIR is necessarily required for every project proposed to be built on a site that is mentioned on the Cortese list. In arguing that soil contamination at a project site is sufficient to trigger an EIR, Parker Shattuck cites CEQA's exception to categorical exemption for projects to be built on sites included on the Cortese list, and the legislative history of Assembly Bill No. 869 (1991-1992 Reg. Sess.), the bill adding that exception. (§ 21084, subd. (d); Stats. 1991, ch. 1212, § 1, p. 5908; see § 21092.6, subd. (a) [requiring lead agency to determine whether a project is on a Cortese list site and disclose that information in CEQA documents].) We agree that the Legislature intended that projects on these sites should not be categorically exempt from CEQA because they may be more likely to involve significant effects on the environment. But whether a project should be categorically exempt from CEQA is different from whether the project involves a significant effect on the environment. The finding that an exception to exemption applies ensures an initial study to investigate whether there is a potential significant effect on the environment but does not establish that such an effect exists. (See Davidon Homes, supra, 54 Cal.App.4th at p. 113.) As the City points out, a site may stay on the Cortese list even after a determination is made that no further remediation is required, and this is precisely what occurred in this case. In short, we are not persuaded that projects built on sites identified on the Cortese list necessarily involve a significant effect on the environment.
We next turn to whether the project will have a significant effect on the environment as a result of the potential health risks to people. We conclude that the health risks to workers and residents identified by petitioners do not constitute "substantial adverse effects on human beings" or otherwise create a fair argument that the disturbance of contaminated soil may have a significant effect on the environment.
For example, in Topanga Beach Renters Assn. v. Department of General Services (1976) 58 Cal.App.3d 188 [129 Cal.Rptr. 739], the plaintiff argued that the demolition of living structures on a beach would adversely affect humans, and thus constitute a significant effect on the environment requiring an EIR, because "the planned demolition [would] evict people from their homes (with consequent adverse effect on those people)...." (Id. at pp. 191, 194.) The court held that the "[a]dverse effect on persons evicted from Topanga Beach cannot alone invoke the requirements of CEQA, for all government activity has some direct or indirect adverse effect on some persons." (Id. at p. 195.) "The issue [was] not whether demolition of structures [would] adversely affect particular persons but whether demolition
We recognize that when a project may cause a physical change to the environment, CEQA requires a consideration whether the change will have a potential impact on people. This is the import of section 21083, subdivision (b)(3)'s requirement that an environmental effect be deemed significant if it will have an adverse effect on people. In addition, if the environmental changes are deemed significant, then an EIR must discuss "health and safety problems caused by the physical changes." (Guidelines, § 15126.2, subd. (a).) None of the authorities cited by Parker Shattuck, however, holds that a significant effect on the environment must be found when potential health risks are confined to people associated with a project. (See Communities for a Better Environment v. South Coast Air Quality Management Dist. (2010) 48 Cal.4th 310, 316-317, 320, 327 [106 Cal.Rptr.3d 502, 226 P.3d 985] [EIR
We also reject Parker Shattuck's argument that CEQA requires consideration of the potential impact Parker Shattuck has identified simply because the MND mentioned a consideration of "the [p]roject's impacts on the public and construction workers" after a box was checked on a form checklist indicating that the site was on the Cortese list. The form checklist comes from appendix G of the Guidelines, which provides a suggested list of potentially significant impacts to be considered when preparing an initial study. We do not believe the MND establishes that the City conceded that CEQA required consideration of health risks limited to workers and future residents. Furthermore, even if the MND's consideration of a potential factor on a form checklist could be construed as some sort of admission, the admission would not offset the weight of authority indicating that an EIR is not required for environmental effects that impact only a limited group of people. (See SOCWA, supra, 196 Cal.App.4th at p. 1616 ["A few questions on a suggested checklist in an appendix to the [G]uidelines do not seem to us to provide a strong enough foundation on which to base a reversal of the entire purpose of CEQA."].)
Ultimately, and notwithstanding the parties' extensive briefing on the issue, we need not decide whether the potential effects of a physical change that
Parker Shattuck relies on Hagemann's comments in support of its argument that disturbing the contaminated soil will have a significant environmental effect due to the health risk the site's contamination poses to workers and future residents.
1,2-dichloroethane, a potential human carcinogen, was present in one groundwater sample from 2600 Shattuck Avenue at the level of 14 ug/L (micrograms/liter). Hagemann stated that the safe level of this compound in drinking water is 0.5 ug/L, the Regional Board recommends a vapor-intrusion study when the level exceeds 0.5 ug/L, and the United States Environmental Protection Agency recommends such a study when the level exceeds 5 ug/L.
Hagemann also contended that construction workers may be exposed to the VOCs by inhaling their vapors and to the VOCs and hydrocarbons through dermal contact. Even assuming that the disturbance of contaminated soil would cause these risks, we conclude Hagemann's contention still fails to amount to substantial evidence supporting a fair argument of a significant effect on the environment. First, while the levels of the two VOCs exceed screening levels for drinking water and, according to Hagemann, suggested the need for a vapor-intrusion study, the levels do not exceed Regional Board levels for nonpotable water. Hagemann provided no explanation why levels below the Regional Board screening levels might pose health risks where the water will not be drunk. Second, Hagemann did not discuss the significance for human health of exposure to petroleum hydrocarbons or challenge the phase II supplemental report's finding that the contamination from the hydrocarbons is not the type that would usually "require cleanup." Instead, he simply claimed that the level of total petroleum hydrocarbons should lead to further investigation.
The judgment is affirmed. Respondents are awarded their costs on appeal.
Reardon, Acting P. J., and Rivera, J., concurred.