CUÉLLAR, J.
We granted review to address the following question: Under what circumstances, if any, does the California Environmental Quality Act (CEQA) (Pub. Resources Code,
In light of CEQA's text, statutory structure, and purpose, we conclude that agencies subject to CEQA generally are not required to analyze the impact of existing environmental conditions on a project's future users or residents. But when a proposed project risks exacerbating those environmental hazards or conditions that already exist, an agency must analyze the potential impact of such hazards on future residents or users. In those specific instances, it is the project's impact on the environment—and not the environment's impact on the project—that compels an evaluation of how future residents or users
Moreover, special CEQA requirements apply to certain airport, school, and housing construction projects. In such situations, CEQA requires agencies to evaluate a project site's environmental conditions regardless of whether the project risks exacerbating existing conditions. The environmental review must take into account—and a negative declaration or exemption cannot issue without considering—how existing environmental risks such as noise, hazardous waste, or wild land fire hazard will impact future residents or users of a project. That these exceptions exist, however, does not alter our conclusion that ordinary CEQA analysis is concerned with a project's impact on the environment, rather than with the environment's impact on a project and its users or residents.
Accordingly, we hold that CEQA does not require an agency to consider the impact of existing conditions on future project users except in the aforementioned circumstances. We reverse the Court of Appeal's judgment and remand for proceedings consistent with our decision.
The Bay Area Air Quality Management District (District) is a regional agency authorized to adopt and enforce regulations governing air pollutants from stationary sources such as factories, refineries, power plants, and gas stations in the San Francisco Bay Area. The District's purpose is to achieve and maintain compliance, in its regional jurisdiction, with state and federal ambient air quality standards. (Health & Saf. Code, §§ 39002, 40000, 40001, subd. (a), 40200.)
The Resources Agency, meanwhile, is the agency with primary responsibility for statewide implementation of CEQA. It carries out this task in part by adopting administrative guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.)
A decade later, in 2009, the District drafted new proposed thresholds of significance partly in response to the Legislature's adoption of laws addressing greenhouse gases (GHGs).
During the public hearing process, CBIA expressed concern that the District's proposed thresholds and guidelines were too stringent and would make it difficult to complete urban infill projects located near existing sources of air pollution.
The District was not persuaded. In June 2010, the District's board of directors passed resolution No. 2010-06, adopting new thresholds of significance for air pollutants, including the TAC "receptor thresholds" and thresholds for GHGs and PM
CBIA filed a petition for writ of mandate challenging these thresholds. (Code Civ. Proc., § 1085.) After rejecting CBIA's contentions that state law preempts the thresholds, the superior court conducted a hearing on the merits of the following claims: (1) the District should have conducted a CEQA review of the thresholds before their promulgation because they constitute a "project" within the meaning of CEQA; (2) the TAC/PM
The superior court determined that the District's promulgation of the 2010 thresholds was indeed a "project" under CEQA, and that the District was therefore bound to evaluate the thresholds' potential impact on the environment. Because the District issued the thresholds without the required CEQA review, the court entered judgment in favor of CBIA without addressing CBIA's other arguments. The court then issued a writ of mandate directing the District to set aside its approval of the thresholds, without addressing CBIA's claim that the District's TAC/PM
The Court of Appeal reversed. In ordering the superior court to vacate its writ of mandate, the Court of Appeal concluded, among other things, that the District's promulgation of the 2010 thresholds was not a project subject to CEQA review. It also rejected CBIA's various challenges to the substance of the thresholds, including its challenge to the validity of the receptor thresholds—the thresholds for "new receptors" consisting of residents and workers who will be brought into the area as a result of a proposed project. CBIA had argued the receptor thresholds are invalid because CEQA does not require analysis of the impacts that existing hazardous conditions will have on a new project's occupants. The Court of Appeal more narrowly determined that the receptor thresholds have valid applications irrespective of whether CEQA requires an analysis of how existing environmental conditions impact a project's future residents or users, and therefore are "not invalid on their face." Finding that CBIA was "no longer a successful party," the Court of Appeal reversed the trial court's award of attorney fees and awarded the District its ordinary costs on appeal.
As this case turns on our interpretation of CEQA statutory provisions implemented through the Resources Agency's Guidelines, it is helpful at the outset to clarify the scope of our analysis before turning to the relevant statutory and Guidelines provisions. We review the Court of Appeal's interpretation of the statute de novo. (Abatti v. Imperial Irrigation Dist. (2012) 205 Cal.App.4th 650, 668 [140 Cal.Rptr.3d 647].) Our goal in interpreting CEQA is to adopt the construction that best gives effect to the Legislature's intended purpose. (Committee for Green Foothills v. Santa Clara County Bd. of Supervisors (2010) 48 Cal.4th 32, 45 [105 Cal.Rptr.3d 181, 224 P.3d 920] (Committee for Green Foothills).) Consistent with that purpose, we interpret CEQA to afford the most thorough possible protection to the environment that fits reasonably within the scope of its text. (Laurel Heights Improvement Assn. v. Regents of University of California (1988) 47 Cal.3d 376, 390 [253 Cal.Rptr. 426, 764 P.2d 278].)
In construing the statute, we also consider the interpretation of the agency charged with its implementation. Even in the absence of quasi-legislative regulations,
CEQA was enacted to advance four related purposes: to (1) inform the government and public about a proposed activity's potential environmental impacts; (2) identify ways to reduce, or avoid, environmental damage; (3) prevent environmental damage by requiring project changes via alternatives or mitigation measures when feasible; and (4) disclose to the public the rationale for governmental approval of a project that may significantly impact the environment. (Tomlinson v. County of Alameda (2012) 54 Cal.4th 281, 285-286 [142 Cal.Rptr.3d 539, 278 P.3d 803] (Tomlinson).)
To further these goals, CEQA requires that agencies follow a three-step process when planning an activity that could fall within its scope. (Tomlinson, supra, 54 Cal.4th at p. 286; see Guidelines, § 15002, subd. (k).) First, the public agency must determine whether a proposed activity is a "[p]roject," i.e., an activity that is undertaken, supported, or approved by a public agency and that "may cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment." (§ 21065.)
Second, if the proposed activity is a project, the agency must next decide whether the project is exempt from the CEQA review process under either a statutory exemption (see § 21080) or a categorical exemption set forth in the CEQA Guidelines (see § 21084, subd. (a); Guidelines, § 15300 et seq.). If the agency determines the project is not exempt, it must then decide whether the project may have a significant environmental effect. And where the project will not have such an effect, the agency "must `adopt a negative declaration to that effect.'" (Tomlinson, supra, 54 Cal.4th at p. 286, quoting § 21080, subd. (c); see Guidelines, § 15070.)
Third, if the agency finds the project "may have a significant effect on the environment," it must prepare an EIR before approving the project. (§§ 21100, subd. (a), 21151, subd. (a), 21080, subd. (d), 21082.2, subd. (d).) Given the statute's text, and its purpose of informing the public about potential environmental consequences, it is quite clear that an EIR is required even if the project's ultimate effect on the environment is far from certain. (Communities for a Better Environment v. California Resources Agency (2002) 103 Cal.App.4th 98, 110 [126 Cal.Rptr.2d 441] [EIR is required "`"whenever it can be fairly argued on the basis of substantial evidence that the project may have significant environmental impact,"' regardless of whether other substantial evidence supports the opposite conclusion"], disapproved on another
When an agency prepares an EIR, it provides public officials and the general public with details about a proposed project's consequences. The EIR also lists the ways to potentially minimize any significant environmental effects, and presents alternatives to the project. (§ 21061; see § 21002.1, subd. (a).) By making this information available to decision makers and the public at a crucial moment when the merits of a project and its alternatives are under discussion, an EIR advances not only the goal of environmental protection but of informed self-government. (In re Bay-Delta etc. (2008) 43 Cal.4th 1143, 1162 [77 Cal.Rptr.3d 578, 184 P.3d 709] [an EIR "give[s] the public and government agencies the information needed to make informed decisions, thus protecting `"not only the environment but also informed self-government"'"].)
The function CEQA assigns to an EIR, in fact, epitomizes the statute's focus on informed decisionmaking and self-government. The statute does not necessarily call for disapproval of a project having a significant environmental impact, nor does it require selection of the alternative "most protective of the environmental status quo." (San Franciscans Upholding the Downtown Plan v. City and County of San Francisco (2002) 102 Cal.App.4th 656, 695 [125 Cal.Rptr.2d 745].) Instead, when "economic, social, or other conditions" make alternatives and mitigation measures "infeasible," a project may be approved despite its significant environmental effects if the lead agency adopts a statement of overriding considerations and finds the benefits of the project outweigh the potential environmental damage. (§§ 21002, 21002.1, subd. (c); see Guidelines, § 15093; City of Irvine v. County of Orange (2013) 221 Cal.App.4th 846, 855 [164 Cal.Rptr.3d 586].)
Reflecting the need for further elaboration of these requirements in implementation, CEQA entrusts to the Governor's Office of Planning and Research (OPR) the responsibility of drafting the aforementioned Guidelines. Once OPR completes this process, the Secretary of the Resources Agency may certify and adopt the Guidelines in compliance with the Government
What the Guidelines are supposed to contain is also specified in section 21083. The Guidelines "shall specifically include criteria for public agencies to follow in determining whether or not a proposed project may have a `significant effect on the environment.'" (§ 21083, subd. (b) (section 21083(b).) Most relevant is the provision's express command that "[t]he criteria shall require a finding that a project may have a `significant effect on the environment' if one or more of" a set of certain conditions exist. (Ibid., italics added.) These conditions include a "proposed project['s] . . . potential to degrade the quality of the environment, curtail the range of the environment, or to achieve short-term, to the disadvantage of long-term, environmental goals" and circumstances where a project's "possible effects . . . are individually limited but cumulatively considerable." (Id., subd. (b)(1), (2).) Section 21083, subdivision (b)(2) defines "cumulatively considerable" as the "incremental effects of an individual project . . . when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects." The final condition listed under section 21083 is where "[t]he environmental effects of a project will cause substantial adverse effects on human beings, either directly or indirectly." (§ 21083, subd. (b)(3), italics added (section 21083(b)(3)).)
Through these Guidelines, the Resources Agency gives public agencies a more concrete indication of how to comply with CEQA—including whether such agencies must determine the impact of existing environmental conditions on a proposed project's residents and users. The Guidelines also prove consequential given that under section 21082, CEQA requires agencies subject to its provisions—such as the District—to adopt "objectives, criteria and procedures" for evaluating projects and preparing environmental documents. These agencies may, in turn, adopt the Guidelines by reference to
Especially relevant to the question before us is one such provision of the Guidelines, section 15126.2, subdivision (a) (Guidelines section 15126.2(a)). Promulgated pursuant to section 21083 of the statute, Guidelines section 15126.2(a) reflects the Resources Agency's interpretation of CEQA. It calls for an EIR to "identify and focus on the significant environmental effects of the proposed project," including "any significant environmental effects the project might cause by bringing development and people into the area affected." (Italics added.) The Guideline then continues by providing an example, indicating that an EIR for a project "on a subdivision astride an active fault line should identify as a significant effect the seismic hazard to future occupants of the subdivision" because that "subdivision would have the effect of attracting people to the location and exposing them to the hazards found there." (Guidelines, § 15126.2(a).) The Guideline likewise calls for an EIR to "evaluate any potentially significant impacts of locating development in other areas susceptible to hazardous conditions (e.g., floodplains, coastlines, wildfire risk areas) as identified in authoritative hazard maps, risk assessments or in land use plans addressing such hazards areas." (Guidelines, § 15126.2(a).)
Guidelines section 15126.2(a), in short, indicates that CEQA generally requires an evaluation of environmental conditions and hazards existing on a proposed project site if such conditions and hazards may cause substantial adverse impacts to future residents or users of the project. Given that this Guideline seems to furnish a specific answer to the question before us, it is perhaps not surprising that the District and CBIA dispute its validity.
The District and CBIA disagree about this Guideline because they diverge on how to interpret section 21083. The core of their disagreement is what the statute means when it provides that a "project may have a `significant effect on the environment'" (§ 21083(b)) if "[t]he environmental effects of a project will cause substantial adverse effects on human beings, either directly or indirectly." (§ 21083(b)(3).) The District reads the statutory language to encompass the question of how existing environmental conditions or hazards in the vicinity of a proposed project might substantially, and adversely, impact future residents or users. Under this view, when existing environmental conditions on or near the proposed project site pose hazards to humans brought to the site by the project, the project may have potentially significant environmental effects requiring evaluation.
CBIA takes a contrasting view. It asserts that section 21083(b)(3)'s reference to the "environmental effects of a project" only applies to a project's effects on the environment, and does not include the effects of a site's environment on a project, or on its residents and users.
In light of CEQA's text and structure, we conclude that CEQA generally does not require an analysis of how existing environmental conditions will impact a project's future users or residents. The District emphasizes, correctly, that CEQA addresses human health and safety. Section 21083(b)(3)'s express language, for example, requires a finding of a "`significant effect on the environment'" (§ 21083(b)) whenever the "environmental effects of a project will cause substantial adverse effects on human beings, either directly or indirectly." (§ 21083(b)(3), italics added.) And the Legislature has made clear—in declarations accompanying CEQA's enactment—that public health and safety are of great importance in the statutory scheme. (E.g., §§ 21000, subds. (b), (c), (d), (g), 21001, subds. (b), (d) [emphasizing the need to provide for the public's welfare, health, safety, enjoyment, and living environment].) Still, the District reads too much into the phrase "environmental effects of a project."
The rest of the statute's relevant provisions underscore why. Despite the statute's evident concern with protecting the environment and human health, its relevant provisions are best read to focus almost entirely on how projects affect the environment. (E.g., §§ 21060.5 [defining environment], 21068 ["`Significant effect on the environment' means a substantial, or potentially substantial, adverse change in the environment."], 21083(b)(1) [directing that a project shall be found to have a "`significant effect on the environment'" if it "has the potential to degrade the quality of the environment"].) Indeed, the key phrase "significant effect on the environment" is explicitly defined by statute in a manner that does not encompass the environment's effect on the project. (§ 21068 ["`Significant effect on the environment' means a substantial, or potentially substantial, adverse change in the environment."].) And nowhere in the statute is there any provision that cuts against the specificity of that definition by plainly delegating power for the agency to determine whether a project must be screened on the basis of how the environment affects its residents or users.
Consider the alternative: stretching the definition so it encompasses the analysis of how environmental conditions could affect a project's future residents—the kind of analysis that the Guidelines purport to require—would require us to define "environmental effects of a project" in a manner that all but elides the word "environmental." That approach, in turn, would allow the phrase to encompass nearly any effect a project has on a resident or user. Given the sometimes costly nature of the analysis required under CEQA
With this holding in mind, we must distinguish between requirements that consider the environment's effects on a project and those that contemplate the project's impacts on the existing environment. The former, in light of our analysis of section 21083 and other relevant language in CEQA, are invalid. The latter, however, are valid and entirely consistent with CEQA's concerns about environmental protection, public health, and deliberation. Moreover, and consistent with CEQA's general rule, we note that the statute does not proscribe consideration of existing conditions.
These sentences are valid to the extent they call for evaluating a project's potentially significant exacerbating effects on existing environmental hazards—effects that arise because the project brings "development and people into the area affected." Both CEQA and the Guideline call explicitly for an analysis of a project's effects on the environment. In this respect, the
Indeed, the statutory language emphasizes how the analysis of a project's potential to exacerbate existing conditions is not an exception to, but instead a consequence of, CEQA's core requirement that an agency evaluate a project's impact on the environment. An example may be illuminating. Suppose that an agency wants to locate a project next to the site of a long-abandoned gas station. For years, that station pumped gasoline containing methyl tertiary-butyl ether (MTBE), an additive—now banned by California—that can seep into soil and groundwater. (See Western States Petroleum Assn. v. State Dept. of Health Services (2002) 99 Cal.App.4th 999, 1003 [122 Cal.Rptr.2d 117]; Cal. Code Regs., tit. 13, § 2262.6, subd. (a) [prohibiting the addition of MTBE to gasoline starting Dec. 31, 2003].) Without any additional development in the area, the MTBE might well remain locked in place, an existing condition whose risks—most notably the contamination of the drinking water supply—are limited to the gas station site and its immediate environs. But by virtue of its proposed location, the project threatens to disperse the settled MTBE and thus exacerbate the existing contamination. The agency would have to evaluate the existing condition—here, the presence of MTBE in the soil—as part of its environmental review. Because this type of inquiry still focuses on the project's impacts on the environment—how a project might worsen existing conditions—directing an agency to evaluate how such worsened conditions could affect a project's future users or residents is entirely consistent with this focus and with CEQA as a whole.
These Guideline sentences reflect the Resources Agency's reading of CEQA—a reading made clear in 2009 when the agency added the final sentence of Guidelines section 15126.2(a). (Cal. Natural Resources Agency, Final Statement of Reasons for Regulatory Action: Amendments to the State CEQA Guidelines Addressing Analysis and Mitigation of Greenhouse Gas Emissions Pursuant to SB97 (Dec. 2009) pp. 42-43 ["[A] lead agency should analyze the effects of bringing development to an area that is susceptible to hazards such as flooding and wildfire, both as such hazards currently exist or may occur in the future. . . . [¶] . . . [T]he addition to [Guidelines section 15126.2(a)] contemplates hazards which the presence of a project could exacerbate. . . ."].)
Two factors add weight to the Resources Agency's interpretation of the statute. First, an agency's expertise and technical knowledge, especially
Second, the Resources Agency adopted the Guidelines pursuant to the Administrative Procedure Act (APA). (Gov. Code, § 11340 et seq.) The APA subjects potential agency interpretations to procedural safeguards that foster accuracy and reliability. (See Yamaha, supra, 19 Cal.4th at p. 13.) Section 21083 prohibits the Resources Agency from adopting the Guidelines without certain of these APA safeguards, including notice, public discussion, and an opportunity to comment. (§ 21083, subd. (e); Gov. Code, §§ 11346.4, 11346.5, 11346.8.) The Guidelines are a product of this process, promulgated in accordance with these important safeguards. (See, e.g., Cal. Reg. Notice Register 97, No. 41-Z, pp. 1956-1957 [notice of proposed regulatory action, setting forth the dates and specifications of public hearings, and inviting comments from interested persons].) As a result, the Resources Agency's interpretation, as embodied in Guidelines section 15126.2(a), carries additional weight.
But such weight may sometimes fail to tip the interpretive scale. While these two sentences withstand scrutiny, the remainder of the challenged portion of the Guidelines goes astray, imposing a requirement too far removed from evaluating a project's impacts on the environment. Accordingly, whatever deference we owe to the Resources Agency's interpretation is not enough to save the following sentences of Guidelines section 15126.2(a), which we find clearly erroneous and unauthorized under CEQA: "[A]n EIR on a subdivision astride an active fault line should identify as a significant effect the seismic hazard to future occupants of the subdivision. The subdivision would have the effect of attracting people to the location and exposing them to the hazards found there." These sentences are inconsistent with section 21083's consideration of significant environmental effects.
Although CEQA does not generally require an evaluation of the effects of existing hazards on future users of the proposed project, it calls for such an analysis in several specific contexts involving certain airport (§ 21096) and school construction projects (§ 21151.8), and some housing development projects (§§ 21159.21, subds. (f), (h), 21159.22, subds. (a), (b)(3), 21159.23, subd. (a)(2)(A), 21159.24, subd. (a)(1), (3), 21155.1, subd. (a)(4), (6).)
Section 21096 requires a lead agency to use certain technical resources when addressing airport-related safety hazards and noise problems in EIRs for projects near airports (§ 21096, subd. (a)), and prohibits a lead agency from adopting a negative declaration without considering "whether the project will result in a safety hazard or noise problem for persons using the airport or for persons residing or working in the project area." (§ 21096, subd. (b).) Section 21151.8 mandates certain methods to determine if school sites are located on or near sources of hazardous substances or waste or in close proximity to freeways or other operations that might emit hazardous emissions. (§ 21151.8, subd. (a), (a)(2)(A) [detailing health and safety risks and hazardous conditions and setting forth the process for consulting with air quality districts and other agencies].)
A separate cluster of statutes limits the availability of CEQA exemptions where future residents or users of certain housing development projects may be harmed by existing conditions. These limits on exemptions extend to projects located on sites that will expose future occupants to certain hazards and risks—including the release of hazardous substances and sites subject to wild land fire, seismic, landslide or flood hazards—unless (in some cases) the hazards and risks can be removed or mitigated to insignificant levels. (E.g., §§ 21159.21, subds. (f), (h), 21159.22, subds. (a), (b)(3) [agricultural employee housing], 21159.23, subd. (a)(2)(A) [affordable to low-income housing], 21159.24, subd. (a)(1), (3) [infill housing].) Transit priority projects are treated in similar fashion, subject to the same health and safety constraints that limit exemptions for other housing projects. (E.g., § 21155.1, subd. (a)(4), (6) [project meeting same environmental criteria, including where the project site is not subject to on site hazardous substances or fire or seismic risk, may qualify as a sustainable communities project, which excuses further CEQA compliance].) Like the statutes governing certain school and airport construction projects, these statutes reflect an express legislative directive to consider whether existing environmental conditions might harm those who intend to occupy or use a project site.
CBIA cites four Court of Appeal decisions in support of its position: Baird v. County of Contra Costa (1995) 32 Cal.App.4th 1464 [38 Cal.Rptr.2d 93]; City of Long Beach v. Los Angeles Unified School Dist. (2009) 176 Cal.App.4th 889 [98 Cal.Rptr.3d 137]; South Orange County Wastewater Authority v. City of Dana Point (2011) 196 Cal.App.4th 1604 [127 Cal.Rptr.3d 636]; and Ballona Wetlands Land Trust v. City of Los Angeles (2011) 201 Cal.App.4th 455 [134 Cal.Rptr.3d 194]. The conclusion that we reach today is not inconsistent with these cases, all of which implicitly held that CEQA does not generally require an agency to analyze how existing hazards or conditions might impact a project's users or residents. Further, these Courts of Appeal did not have occasion to consider—and therefore did not rule out—the exceptions to the general rule that we elucidate here.
For the foregoing reasons, we hold that CEQA does not generally require an agency to consider the effects of existing environmental conditions on a proposed project's future users or residents. What CEQA does mandate, consistent with a key element of the Resources Agency's interpretation, is an analysis of how a project might exacerbate existing environmental hazards. CEQA also requires such an analysis where the project in question falls into certain specific statutory categories governing school, airport, and certain housing projects under sections 21151.8, 21096, 21159.21, 21159.22, 21159.23, 21159.24, and 21155.1. Accordingly, we find Guidelines section 15126.2(a) valid only in part.
The Court of Appeal denied CBIA's request for writ relief on a variety of grounds, and it reversed the superior court's decision awarding CBIA attorney fees. But the court's analysis of CBIA's petition for writ relief did not
Cantil-Sakauye, C. J., Werdegar, J., Chin, J., Corrigan, J., Liu, J., and Kruger, J., concurred.