Plaintiff and appellant City of Irvine (Irvine) sued to compel defendants and respondents County of Orange and the County of Orange Sheriff-Coroner (collectively, County) to set aside their decision to approve and submit an application for state funding to expand one of the County's jail facilities. Irvine alleged the County's application constituted a project approval under the California Environmental Quality Act (Pub. Resources Code, § 21000 et seq.; CEQA)
We affirm. The County's application did not constitute a project approval under CEQA because it did not commit the County to a definite course of action regarding the expansion of its jail facilities. The application was merely a preliminary step in the state process for counties to seek funding for jail expansion. Indeed, the state's process did not require the County to initiate a CEQA review of its expansion plans until after the County submitted its application and received conditional approval to fund the project.
For more than 40 years, the County has operated the James A. Musick Facility (Musick Facility) on 100 acres of unincorporated land it owns adjacent to Irvine. The facility originally operated as an honor farm and later was expanded to house slightly more than 700 minimum security inmates, but in recent years it regularly has housed more than 1,200 inmates because of a steep increase in the jail population.
In 1996, the County prepared Environmental Impact Report No. 564 (EIR 564) for the phased expansion of the Musick Facility to a maximum capacity of 7,584 inmates with the ability to house minimum, medium, and maximum security inmates. The first phase called for the addition of 864 beds. EIR 564 noted the timing and precise phasing for the expansion depended on funding availability. In November 1996, the County certified EIR 564 as complete and adequate under CEQA and the County "approve[d] ... and authorize[d] the pursuit of funding, the initiation of design, and the construction of the James A. Musick Jail Expansion ... in accordance with the Master Site Plan."
While that appeal was pending, the County nonetheless revised EIR 564 to address the trial court's concerns. In October 1998, the County certified the revised EIR 564 and again "approve[d] ... and authorize[d] the pursuit of funding, the initiation of design, and the construction of the James A. Musick Jail Expansion ... in accordance with the Master Site Plan." The County did not proceed with the expansion, however, because it lacked funding.
In 2007, the Legislature passed Assembly Bill No. 900 (2007-2008 Reg. Sess.) (Assembly Bill 900) to provide funding for local jail construction in two separate phases totaling up to $1.2 billion. (Assem. Bill 900 (2007-2008 Reg. Sess.).) In "Phase I," Assembly Bill 900 allowed counties to apply for a portion of approximately $750 million. (Id., § 4; see Gov. Code, § 15820.903.) In "Phase II," Assembly Bill 900 allowed counties to apply for a portion of an additional $470 million after counties reached certain benchmarks under Phase I. (Assem. Bill 900 (2007-2008 Reg. Sess.) § 5; see Gov. Code, § 15820.913; Gov. Code, former § 15820.918.)
In 2008, the County applied for $100 million under Assembly Bill 900 Phase I to expand the Musick Facility by adding 1,536 beds. The state conditionally approved the County's application, but the County ultimately declined the funds because of the conditions the state imposed, including a requirement the County pay at least 25 percent of the expansion costs and construct a state reentry facility as part of the project.
In 2011, the Legislature passed legislation to shift responsibility for jailing certain lower level offenders from the state to counties and thereby increased the need for additional space in local jails. (Assem. Bill No. 109 (2011-2012 Reg. Sess.).) To accommodate this need, the Legislature amended Assembly Bill 900's Phase II funding provisions. Specifically, the Legislature increased the amount of funds available during Phase II to $602,881,000, eliminated Phase I's requirement that counties reach various benchmarks before receiving state funds, and reduced the counties' required contributions from 25 percent to 10 percent of the project costs. (Assem. Bill No. 94 (2011-2012 Reg. Sess.) §§ 3, 5; Assem. Bill No. 111 (2011-2012 Reg. Sess.) §§ 3, 5, 9.)
In October 2011, the County expressed its interest in receiving state funds under Assembly Bill 900 Phase II and the state invited the County to submit
On December 6, 2011, the County Board of Supervisors (Board of Supervisors) passed a resolution "[a]pprov[ing] the attached Request for Application (RFA) and authoriz[ing] Sheriff-Coroner Sandra Hutchens to execute the RFA and submit it to the California Department of Corrections and Rehabilitation, Corrections Standards Authority for funding." In the resolution, the Board of Supervisors provided various assurances the state required as part of the Application and resolved to comply with CEQA before accepting any state funds.
In January 2012, Irvine filed this lawsuit seeking a writ of mandate (1) compelling the County to vacate the Board of Supervisors's resolution approving the Phase II Application and (2) enjoining the County from proceeding with the Assembly Bill 900 Phase II process until the County complied with CEQA. Irvine alleged the County's approval of its Phase II Application was a project approval under CEQA, and therefore the County could not approve the Application until it prepared and certified an EIR or other appropriate CEQA document addressing the current environmental impacts associated with expanding the Musick Facility. The trial court denied Irvine's writ petition and Irvine timely appealed.
We previously granted the County's unopposed request to judicially notice certain facts occurring after the trial court denied Irvine's writ petition. Specifically, the state approved the County's Phase II Application in March 2012 and conditionally awarded funds to the County. In August 2012, the County released for public review and comment a draft of "Supplemental EIR 564," which it believed addressed the environmental impacts associated with its latest plans to expand the Musick Facility. In December 2012, the County certified Supplemental EIR 564 as complete under CEQA and approved the 2012 James A. Musick Site and Facilities Master Plan. Shortly thereafter, Irvine filed a new lawsuit challenging the County's decision certifying Supplemental EIR 564 and approving the new master plan for the Musick Facility. That lawsuit remains pending in the trial court.
Judicial review in any action under CEQA is limited to whether the public agency committed a "prejudicial abuse of discretion." (§ 21168.5.) "Abuse of discretion is established if the agency has not proceeded in a manner required by law or if the determination or decision is not supported by substantial evidence." (Ibid.) "`Judicial review of these two types of error differs significantly: While we determine de novo whether the agency has employed the correct procedures, "scrupulously enforc[ing] all legislatively mandated CEQA requirements" [citation], we accord greater deference to the agency's substantive factual conclusions.' [Citation.]" (Save Tara, supra, 45 Cal.4th at p. 131.)
"A claim ... that the lead agency approved a project with potentially significant environment effects before preparing and considering an EIR for the project `is predominantly one of improper procedure' [citation] to be decided by the courts independently. The claim goes not to the validity of the agency's factual conclusions but to the required timing of its actions." (Save Tara, supra, 45 Cal.4th at p. 131, original italics.)
Although Irvine contends the County improperly seeks to piecemeal its environmental review of the Musick Facility expansion by defining the
In Save Tara, the Supreme Court confronted the question whether a city's conditional development agreement with a private developer constituted an approval requiring CEQA compliance. The developer proposed constructing approximately 35 low-income, senior housing units on city-owned property. To help the developer obtain a federal grant for the project, the city granted the developer an option to purchase the property at "`negligible cost.'" (Save Tara, supra, 45 Cal.4th at pp. 122-123.) After the developer obtained the federal grant, the city approved a conditional development agreement that committed the city to convey its property to the developer and also loan the developer $1 million to "`facilitate development of the project and begin[] the process of working with tenants [who resided on the property] to explore relocation options.'" (Id. at p. 124.)
A citizens group filed a lawsuit challenging the city's approval of the development agreement because the city did not prepare and certify an EIR before approving the agreement. The group argued any agreement between a governmental agency and a developer is "an `approval' requiring prior preparation of CEQA documentation if at the time it was made the project was sufficiently well defined to provide `"meaningful information for environmental assessment."' [Citation.]" (Save Tara, supra, 45 Cal.4th at p. 136.) In opposition, the city argued the development agreement did not constitute an approval under CEQA because it did not irrevocably vest any development rights in the developer. (45 Cal.4th at p. 134.) According to the city, the condition requiring future CEQA compliance eliminated the need to present any environmental documentation before the city approved the development agreement. (45 Cal.4th at p. 132.)
Applying this standard, the Save Tara court concluded the development agreement was an approval under CEQA because the "[c]ity committed itself to a definite course of action regarding the project before fully evaluating its environmental effects." (Save Tara, supra, 45 Cal.4th at p. 142.) Specifically, the court found the following circumstances demonstrated the city was committed to approving the project regardless of what a future CEQA review disclosed: (1) the agreement declared its purpose was to develop the property according to the developer's plans; (2) the city's repeated public pronouncements it was committed to developing the project; (3) the city's commitment to transfer its property to the developer "`at negligible cost'"; (4) the substantial loan commitment the city made to the developer with no obligation to repay nearly half of it if the city did not finally approve the project; (5) the city's commitment to pursue relocating tenants from the property before it finally approved the project; and (6) the CEQA compliance condition merely required preparation of an EIR, but no provision permitted the city to reject the project based on environmental impacts identified in the EIR. (45 Cal.4th at pp. 123, 140-142.)
In Cedar Fair, the Court of Appeal applied the principles articulated in Save Tara to conclude a city's approval of a term sheet with a private developer for the construction of a proposed professional football stadium was not an approval requiring CEQA compliance. (Cedar Fair, supra, 194 Cal.App.4th at pp. 1155-1156, 1161-1167.) Although the term sheet included a highly detailed description of the proposed stadium and the city already had committed substantial resources to its negotiations with the developer, the term sheet "merely `memorialize[d] the preliminary terms' [of the proposed stadium project] and only mandate[d] that the parties use the term sheet as the `general framework' for `good faith negotiations.' Under the express language of the term sheet agreement, the [city] `retain[ed] the absolute sole discretion' to make decisions under CEQA, including deciding `not to proceed with the Stadium project,' and the term sheet create[d] `[n]o legal obligations' `unless and until the parties have negotiated, executed and delivered mutually acceptable agreements based upon information produced from the CEQA environmental review process....'" (Id. at pp. 1167, 1170.) The Cedar Fair court concluded the term sheet did not commit the city to the stadium project because the only legal obligation the city assumed was to continue negotiating with the developer, while the city retained complete discretion over all aspects of the CEQA review process. (194 Cal.App.4th at p. 1170.)
In determining whether a public agency has effectively committed to a project so as to require CEQA compliance it is important to distinguish between advocating or proposing a project and committing to it. Public entities often are required to provide project approvals for their own public projects and also may partner with developers on private projects. (See Cedar Fair, supra, 194 Cal.App.4th at p. 1173 ["a local agency may be a vocal and vigorous advocate of a proposed project as well as an approving agency"].) "But `an agency does not commit itself to a project "simply by being a proponent or advocate of the project...." [Citation.]' [Citation.]" (Ibid.; Neighbors for Fair Planning, supra, 217 Cal.App.4th at pp. 556-557; Sustainable Transportation, supra, 179 Cal.App.4th at p. 121.) "Approval [under CEQA] cannot be equated with the agency's mere interest in, or inclination to support, a project, no matter how well defined. `If having high esteem for a project before preparing an environmental impact report (EIR) nullifies the process, few public projects would withstand judicial scrutiny,
Irvine argues the CEQA guidelines, in California Code of Regulations title 14, section 15004, subdivision (b)(2)(B), provide an alternative standard for determining whether the County's Phase II Application was an approval requiring CEQA compliance because the Musick Facility expansion is a public project. Specifically, Irvine argues that section required the County to comply with CEQA before approving its Phase II Application because the approval gave "impetus" to the expansion project. We reject this argument because it fails to recognize the entire "impetus" standard described in the CEQA guidelines.
Irvine contends the County's decision to approve its Phase II Application and authorize the sheriff-coroner to submit the Application to the state constituted an approval triggering the County's obligation to comply with CEQA. Accordingly, Save Tara and Cedar Fair require us to examine the terms of the County's Application and the surrounding circumstances to determine whether the Application committed the County to the Musick Facility expansion in a manner that effectively precluded it from considering any project alternatives or mitigation measures under CEQA. (Save Tara,
Certain state statutes and regulations guided the Assembly Bill 900 process. The "Request for Applications" inviting the County and others to apply for Assembly Bill 900 Phase II funds further described that process. (Gov. Code, §§ 15820.90 et seq. [Assem. Bill 900 Phase I], 15820.91 et seq. [Assem. Bill 900 Phase II]; Cal. Code Regs., tit. 15, § 1700 et seq. [procedures for both Assem. Bill 900 Phase I and Phase II].) The procedure required the County to submit a statement notifying the state the County was interested in receiving Phase II funds, a detailed application describing the County's need to expand its jail facilities, a description of the proposed expansion project, the budget and construction plans for the project, and the County's plan for operating the new facility. (Cal. Code Regs., tit. 15, § 1730.1.)
The state's Request for Applications made clear the County would receive only a "conditional award" if the state approved the County's application. The Request for Applications emphasized, "A county's receipt of a conditional award for state financing, as described herein, does not guarantee the awarded county will receive any reimbursements .... The conditional award is merely an expression that the county is qualified, at this point, to move forward in the process."
More importantly, the state's Request for Applications declared the Assembly Bill 900 process did not require the County to even initiate CEQA review until after the state approved the County's Application and the County received a conditional award. The state did not require any form of CEQA documentation as part of the County's Phase II Application. (Cal. Code Regs., tit. 15, § 1730.1.) Although the state requires the County to comply with CEQA, the state's tentative project schedule described in the Request for Applications does not require the County to provide documentation of CEQA compliance until approximately one year after receiving its conditional award.
After receiving a conditional award, the County still must (1) work with the state to complete the County's master plan for the proposed jail facility; (2) conduct a CEQA review to identify and analyze the project's environmental impacts and possible means to avoid or minimize those impacts; (3) negotiate and enter into contracts with the state defining each side's roles, responsibilities, and performance standards; (4) provide all necessary local approvals for the project; and (5) obtain state approval for the final construction plans. (Gov. Code, § 15820.911; Cal. Code Regs., tit. 15, §§ 1747, 1748,
The Assembly Bill 900 process distinguishes this case from Save Tara because its Phase II Application committed the County to nothing. In Save Tara, the city's development agreement with a private developer and numerous surrounding circumstances demonstrated the city's commitment to the developer's project even though the agreement was conditioned on future CEQA compliance. The agreement committed the city to conveying its property to the developer, loaning the developer $1 million (half of which would not be repaid if the city did not finally approve the project), and relocating tenants who lived on the project site before the city even approved the development. The Save Tara court found the CEQA compliance condition was essentially meaningless because it merely required the preparation and certification of an EIR without reserving the city's power to modify or reject the project based on the impacts identified in the EIR. (Save Tara, supra, 45 Cal.4th at pp. 140-142.)
Here, we address an application for funding under a state program that allows the County, if its application is approved, to take the next step in the process. The Application does not commit the County to proceed with the application process or the Musick Facility expansion. Moreover, the County did not seek to defer environmental review of the proposed project by conditioning its Application on future CEQA compliance. Rather, Assembly Bill 900 did not require the County to even initiate CEQA compliance until later in the process, but nonetheless designated the County as the lead agency with discretion to identify, select, and impose the mitigation measures and project alternatives it deemed appropriate. Nothing in the County's application, or the state's later conditional award to the County, committed the County to the Musick Facility expansion in a manner that effectively precluded the County from considering any project alternatives or mitigation measures that CEQA otherwise required. Accordingly, we conclude the County's Application is analogous to the term sheet in Cedar Fair because it did not commit the County to anything. At most, it permitted the County to explore the possibility of using state funds to expand the Musick Facility.
Irvine fails to identify any aspect of the state process or the County's Application that committed the County to expanding the Musick Facility simply by submitting its Application to the state. Irvine contends the assurances the state required the County Board of Supervisors to make in its resolution approving the Application show the County "did much more than
We note the County made these same assurances (and others) when the Board of Supervisors authorized the submission of an application for funding during Assembly Bill 900 Phase I. The state approved the County's Phase I application based on these assurances and conditionally awarded the County the $100 million it requested. The County, however, later turned down that conditional award and declined to proceed with the jail expansion described in the earlier application because the County disliked the conditions the state imposed on the provisional award.
As a practical matter, Irvine argues the County committed itself to the Musick Facility expansion described in its Phase II Application because the County already has dedicated substantial resources to that expansion plan and therefore it is unlikely the County would decline $100 million from the state when the County has repeatedly acknowledged its significant need to expand
As explained above, a public "`agency does not commit itself to a project "simply by being a proponent or advocate of the project ...." [Citation.]' [Citation.]" (Cedar Fair, supra, 194 Cal.App.4th at p. 1173.) Similarly, the County's commitment of both human and financial resources to developing the current expansion plan and preparing the Phase II Application does not demonstrate the commitment required to transform the Application into an approval requiring CEQA compliance. In Cedar Fair, the city spent over $1 million working on the proposed stadium project with the private developer and anticipated spending at least another $ 1 million, but the court concluded "those expenditures do not establish any legal commitment to any feature of the project that effectively foreclosed meaningful environmental review." (Cedar Fair, supra, 194 Cal.App.4th at pp. 1172-1173; see Neighbors for Fair Planning, supra, 217 Cal.App.4th at pp. 556-557.)
The judgment is affirmed. The County shall recover its costs on appeal.
Bedsworth, Acting P. J., and Ikola, J., concurred.