CORRIGAN, J. —
The City of Newport Beach (the City) approved a project for the development of a parcel known as Banning Ranch. Banning Ranch Conservancy (BRC) opposed the project and sought a writ of mandate to set aside the approval. It alleged two grounds for relief: (1) the environmental impact report (EIR) was inadequate, and (2) the City violated a general plan provision by failing to work with the California Coastal Commission (Coastal Commission) to identify wetlands and habitats. The trial court found the EIR sufficient, but granted BRC relief on the ground that the general plan required the City to cooperate with the Coastal Commission before approving the project.
The Court of Appeal agreed that the EIR complied with the requirements of the California Environmental Quality Act (CEQA).
In this court, the parties have briefed and argued both the general plan and CEQA questions. The CEQA dispute centers on whether an EIR must identify areas that might qualify as environmentally sensitive habitat areas (ESHA) under the California Coastal Act of 1976 (Coastal Act; § 30000 et seq.), and account for those areas in its analysis of project alternatives and mitigation measures. We hold that CEQA so requires. The City's EIR is inadequate because it omitted any consideration of potential ESHA on the project site, as well as ESHA that were already identified. Because BRC is entitled to relief on its CEQA claims, we need not address the general plan issues.
Banning Ranch is a privately owned 400-acre tract of largely undeveloped property, containing both oilfield facilities and wildlife habitat. Significantly, it lies in the coastal zone that the Legislature has designated for special protection under the Coastal Act. (§ 30001.5.) Most development in the coastal zone requires a coastal development permit. (§ 30600.)
Although most of Banning Ranch is in unincorporated Orange County, all of it falls within the City's "sphere of influence" for zoning and planning purposes. (See Gov. Code, § 56425 et seq.) The City's general plan sets out two alternative goals for the area. The preferred option is community open space, with development limited to nature education facilities and a park. The second alternative would allow construction of up to 1,375 residential units, 75,000 square feet of retail facilities, and 75 hotel rooms. As to both alternatives, the plan calls for consolidating the oil operations and restoring wetlands and wildlife habitats. A general plan "strategy" titled "Coordination with State and Federal Agencies" requires the City to "[w]ork with appropriate state and federal agencies to identify wetlands and habitats to be preserved and/or restored and those on which development will be permitted." (City of Newport Beach, General Plan (July 2006) ch. 3, Land Use Element, p. 3-76.)
In addition to having a general plan, every local government in the coastal zone must submit a local coastal program for Coastal Commission approval. The program consists of a coastal land use plan (CLUP) and implementing regulations. The CLUP may be completed first, with regulations developed later. (Yost v. Thomas (1984) 36 Cal.3d 561, 566 [205 Cal.Rptr. 801, 685 P.2d 1152]; § 30500.) The City had yet to enact its regulatory component, or to adopt procedures for issuing coastal development permits, and thus did not have a certified local coastal program. (See § 30600, subd. (b)(1).) Accordingly, the Coastal Commission exercised permitting authority over development on Banning Ranch. (See § 30600, subd. (c).)
The City did have a certified CLUP, but chose to exclude Banning Ranch from its scope. The general plan explains that "Banning Ranch is a Deferred Certification Area ... due to unresolved issues related to land use, public access, and the protection of coastal resources." (City of Newport Beach, General Plan, supra, ch. 13, Implementation Program, p. 13-8.) The CLUP defines ESHA in the same terms as section 30107.5, part of the Coastal Act: "`any area in which plant or animal life or their habitats are either rare or
The Coastal Act specifies that "[e]nvironmentally sensitive habitat areas shall be protected against any significant disruption of habitat values, and only uses dependent on those resources shall be allowed within those areas." (§ 30240, subd. (a).) "Development in areas adjacent to environmentally sensitive habitat areas ... shall be sited and designed to prevent impacts which would significantly degrade those areas, and shall be compatible with the continuance of those habitat ... areas." (§ 30240, subd. (b).)
The City was unable to raise the funds to buy Banning Ranch for open space. In August 2008 Newport Banning Ranch LLC (NBR) submitted a proposal for a residential and commercial village reaching the maximum levels of development permitted by the general plan. At the City's request, the proposal included a report on "the extensive field survey work" by NBR's biological consultant "on potential special status habitats (potential ESHA)." The proposal explained that the project was designed to avoid all areas of ESHA as defined by the CLUP, with one exception. A major access road would have unavoidable impacts on 0.06 acre of potential scrub ESHA and 0.02 acre of potential riparian ESHA. These impacts would be fully mitigated. A map included in the biological report showed numerous potential ESHA throughout Banning Ranch.
The City was not satisfied with NBR's proposed road network. Banning Ranch is bordered by the Santa Ana River and other wetland areas to the west, and by 19th Street to the north. (For a map of the area, with the roadway plan ultimately approved by the City, see appen. A.) West Coast Highway, which runs along the coastline, forms the southern boundary. The eastern boundary is intersected or approached by 15th, 16th, 17th, and 18th Streets. The southeastern corner of the site is bordered by Sunset Ridge Park, a separate City project that was in progress at the time of NBR's proposal. NBR's plans called for a new "Bluff Road," running north from the highway and curving east to meet 15th Street, with another segment extending northward. The Orange County master plan of arterial highways (MPAH) envisioned Bluff Road as a six-lane divided road running north and south through the eastern portion of Banning Ranch, connecting 19th Street with
The mayor and city council wanted Bluff Road to run all the way to 19th Street. NBR submitted a revised plan, saying it would accommodate the "road circulation network requested by the City of Newport Beach as a public benefit." NBR's biological consultant pointed out that the changes "would significantly impact scrub, wetlands, and riparian habitat that would be considered [ESHA] pursuant to the City's [CLUP] as well as the California Coastal Act.... It is important to note that impacts to ESHA are prohibited [by the] California Coastal Act except for certain allowable uses, and the proposed connectors would be problematic to the California Coastal Commission."
Under CEQA, the "lead agency" is "the public agency which has the principal responsibility for carrying out or approving a project." (§ 21067.) As lead agency for the NBR project, the City was responsible for preparing an EIR. (See § 21100, subd. (a).) The process entails circulation of a notice of preparation, followed by draft and final EIRs. The public may submit comments on the notice of preparation and the draft EIR. (Cal. Code Regs., tit. 14, §§ 15082, 15087, 15089.)
The City retained its own environmental consultant. In March 2009, it gave notice that it would prepare a draft EIR for the Banning Ranch project. The notice stated that the project "includes areas that may be defined and regulated under the California Coastal Act ... as either wetlands or environmentally sensitive habitat areas (ESHAs)." The notice also explained that because the City did not have a certified local coastal program, it could not issue coastal development permits for the project. If the City approved the project plans, NBR would apply for a coastal development permit from the Coastal Commission.
A number of public comments on the notice mentioned the need to identify ESHA in the EIR. The City of Costa Mesa suggested that "[g]iven the significance of the project site, the EIR should consider the Coastal Commission thresholds for impacts to wild life and endangered species." A consultant and a board member for BRC, the group that eventually brought this lawsuit, also urged the City to use Coastal Commission standards to assess ESHA on the site. Another BRC member commented that the proposed Bluff Road extension crossed ESHA, and would not be approved by the commission.
The parties formalized a stipulation that commission staff's ESHA findings would be determinative only as to the two areas at issue, and that the commission would undertake a separate analysis of other areas in any future proceedings. The City and NBR noted their disagreement with the findings and retained the right to present evidence on whether other areas were ESHA. The commission adopted the staff findings, which included a determination that the unpermitted activity was inconsistent with policies in the City's CLUP.
In March 2011, shortly before the consent orders were finalized, City and NBR representatives met with Coastal Commission staff to talk about Banning Ranch. Topics included attempts by commission staff to visit the project site, and the fact that there had been "no recent contacts with [commission] staff." Several months later the City's planning manager e-mailed the NBR project manager, asking what revisions would be made as a result of the commission's designation of ESHA on the site. The NBR manager responded, "No revisions. We will have to fight for our project — just as the City will for its park — but it can be built as proposed after re-vegetating the
The reference to the City's park was to Sunset Ridge Park, the separate project bordering Banning Ranch to the southeast. The final EIR for the park project had been certified a year earlier. (See Banning Ranch Conservancy v. City of Newport Beach (2012) 211 Cal.App.4th 1209, 1219 [150 Cal.Rptr.3d 591] (Banning Ranch I).) The Sunset Ridge Park EIR designated no area of the park as ESHA under the City's CLUP, but acknowledged that two areas might be considered ESHA by the Coastal Commission. (Banning Ranch I, at pp. 1233-1234.) The proposed public access to the park was a road over Banning Ranch, the size and location of which became a significant issue.
Commission staff issued a report in October 2011 recommending that a coastal development permit be denied for Sunset Ridge Park. The report explained that the City sought access to its park through Banning Ranch under an agreement with NBR. The proposed access road crossed ESHA that were occupied by the endangered California gnatcatcher. After working with the City and considering several alternatives, staff had identified a route that would avoid direct impacts on gnatcatcher habitat. Staff was prepared to recommend approval of this alignment if the road was restricted to two lanes with limited daily usage and gnatcatcher habitat was created on each side, with some other habitat improvements.
The City and NBR would not agree to these conditions. The draft EIR for the Banning Ranch project, which had just circulated, proposed widening the road to four lanes. It would serve both the park and the NBR development, becoming a major arterial road used by thousands of vehicles a day. Commission staff observed that such a road would directly affect the ESHA already identified, and others that were likely to be determined. The staff report concluded: "To summarize, staff has been working earnestly with the City to identify a [park] project that could be approved pursuant to modifications and special conditions to bring it into compliance with the Coastal Act. However, after further review, and after further communication with the City and with [NBR], it has become clear that they cannot address the threshold issue of foreclosing future expansion of the park access road, so that ESHA, buffers, and the California gnatcatcher that relies on them, are permanently protected.... Compromises on the widths and kinds of uses within buffers would also be required, that could only be offset by revegetating the buffers with [plants] suitable for use by gnatcatchers, and permanently preserving
In a responding letter, the City claimed it had no legal authority to revegetate the roadside areas, which would "create a new resource" instead of providing a buffer. The letter said "it continues to be the position of the City that its proposed park access road is not a precursor for future [NBR development]." However, the City acknowledged that the proposed arterial road for the Banning Ranch project was "double the size of the park road," and that the park road was "located with aforethought in the approximate location" of the arterial road. The City protested the restrictions on the park access road as a "preemptive strike on future development" that was beyond the scope of the Coastal Commission's permitting authority. It noted that foreclosing the construction of an arterial road on Banning Ranch would conflict with the circulation element of the City's general plan, the County's master plan, and countywide transportation funding requirements.
The City circulated a draft EIR for the Banning Ranch project in September 2011. The document explained that while the City could not issue coastal development permits, it did "review[] pending development projects for consistency with the General Plan, Zoning regulations, and the CLUP" before applicants sought coastal development permits from the Coastal Commission. The draft EIR did not identify potential ESHA or discuss the subject in any substantive detail. It noted in various places that the project would require a permit from the commission, which would determine whether Banning Ranch contained ESHA. The City acknowledged that in doing so, the commission would take guidance from the CLUP.
Many comments on the Banning Ranch draft EIR complained about the omission of an ESHA analysis. One comment asserted that the avoidance of any ESHA determination was "egregious" because both NBR and the City knew there were ESHA on Banning Ranch because of the Coastal Commission consent orders. A consultant retained by BRC claimed that while the draft EIR did not include a map of probable ESHA, a computer search would
The Coastal Commission submitted 15 pages of staff comments, noting they "should not be construed as representing the opinion of the Coastal Commission itself." Staff said the City's CLUP provided "strong guidance" even though no local coastal program was in place. They suggested the EIR address whether the proposed development was consistent with policies in both the CLUP and the Coastal Act. Several comments pertained to ESHA.
Commission staff pointed out that under the Coastal Act, development must avoid impacts to ESHA. They said section 30240 does not permit "non-resource dependent impacts to an ESHA area," even if there is mitigation in other areas. "Rather, Section 30240 requires that proposed new development be located outside of ESHA areas. Additionally, Section 30240 requires siting, design, and appropriate buffers to ensure that development adjacent to ESHA does not result in" ESHA impacts. Staff recommended that the EIR use the CLUP to evaluate sensitive habitat areas and appropriate buffer zones. "[I]t is important that the EIR process incorporate a determination of probable ESHA areas and their required buffers before land use areas and development footprints are established." Staff proposed that ESHA, wetland, and buffer zone delineations be reviewed by commission biologists before the EIR was finalized.
Based on a "preliminary analysis," commission staff found that the proposed Banning Ranch development was inconsistent with the ESHA requirements of the Coastal Act, particularly the four-lane portion of Bluff Road connecting with West Coast Highway. They urged that the EIR "more fully consider alternative intensities of development on the site and alternative means to access the property," because any access road from West Coast Highway would likely be found inconsistent with the Coastal Act. The comment added that some grading and placement of structures appeared to infringe on sensitive areas mapped in the draft EIR, and "[o]nce more fully mapped as recommended herein, the quantity of sensitive habitat areas may be even more extensive. In any event, it's clear that the proposed development would result in the elimination of habitat supporting sensitive species." Staff suggested the City evaluate alternatives to avoid these impacts.
In the final EIR, the City responded to comments but did not change its position on ESHA determinations. Regarding the Coastal Commission consent orders, the City said the agreed-upon restoration plan was being implemented. It acknowledged that the commission had identified two ESHA on the project site. However, it said the commission "has not made an ESHA determination for the remainder of the ... site, and no conclusions of ESHA can and will be made by the City at this time as part of the EIR process that would in any way bind the Coastal Commission or elucidate on the Coastal Commission's ultimate conclusions [sic]. Rather, as appropriate under CEQA, the City has analyzed the impacts of the project, and concluded that they can be reduced to a less-than-significant level or avoided with appropriate measures. As stated in the Consent Orders, a separate analysis will be undertaken by the Coastal Commission in connection with any future Coastal Development Permit application or proceeding before the Coastal Commission involving these properties."
In a general discussion of ESHA, the City emphasized that Sunset Ridge Park and the NBR development were separate projects, and that the park was beyond the scope of the Banning Ranch EIR. Although the Coastal Commission was responsible for ESHA determinations, the City had "taken into consideration ... the policies of the Coastal Act in the Draft EIR and provide[d] a consistency analysis of the proposed Project and those policies." The City referred to a table in the draft EIR finding the project generally consistent with a list of Coastal Act provisions, but without any mention of ESHA. It recognized that "the proposed alignment of Bluff Road is within areas that were identified as ESHA by the Coastal Commission in the Consent Orders. The Coastal Commission has not reviewed the Newport Banning Ranch proposal and has not made any recommendations regarding Bluff Road at this time. The Coastal Commission has, however, reviewed the City's Sunset Ridge Park application which included a park access road in this same area and made recommendations on reconfiguring the entry road to minimize impacts to sensitive coastal resources in a manner that could be found consistent with the Coastal Act and Section 30240 in particular." The City did not mention that it had rejected those recommendations, saying only that it had later "revised its application for Sunset Ridge Park."
The City disavowed any obligation to further consider ESHA. It claimed it had "fulfilled its obligation under CEQA to analyze the significant impacts of a project on the physical environment." It maintained that ESHA findings were "within the discretion of the Coastal Commission, or a local agency as part of its [local coastal plan] certification process. While the Draft EIR must identify a project's impact on the environment, including biological resources
With regard to using the CLUP to analyze environmental impacts, the City noted Banning Ranch's status as a deferred certification area, and argued that "the policies in the City's CLUP are not applicable to the Banning Ranch property.... Because the City does not have a certified [local coastal plan], and the City's CLUP does not include the Banning Ranch property, the City acknowledges that any consideration of a Coastal Development Permit for the Project site would require a finding of consistency with the ... policies of the Coastal Act."
In response to commission staff's ESHA comments, the City stated: "The purpose of the Draft EIR is to analyze a proposed project's impact on the physical environment. It is not, in and of itself, a policy consistency analysis, except to the extent that such inconsistencies reveal environmental impacts that otherwise are not discussed.... [T]he Draft EIR analyzes the proposed Project's impact on biological resources, including federal and State listed endangered and threatened species, sensitive plant and animal species, and specific habitats such as wetlands and vernal pools. All impacts to these resources would be mitigated or avoided with the Mitigation Program.... The Draft EIR acknowledges that the Coastal Commission makes the determination as to whether any or all of these constitute ESHA under the Coastal Act, and application of the policies of the Coastal Act to the existing conditions on the Project site would be undertaken as part of the Coastal Commission's Coastal Development Permit process." The City did not directly respond to staff's concern about the identification of potential ESHA "before land use areas and development footprints are established." It did not respond at all to the suggestion that ESHA and buffer zone delineations be reviewed by commission staff before the EIR was finalized.
The City's response concluded: "Bluff Road through the property is reflected in the City's General Plan Circulation Element Master Plan of Streets and Highways and the Orange County MPAH. The City cannot eliminate this planned circulation improvement without amending its Circulation Element, and cannot unilaterally amend the County's MPAH. Further, eliminating Bluff Road would place the City in conflict with its obligations assumed in connection with its acceptance of Measure M funds. Finally, eliminating Bluff Road access from West Coast Highway would not substantially lessen impacts to biological resources and would eliminate an alternative means of coastal access."
The City certified the final EIR in July 2012. It also approved NBR's master development plan, a development agreement, and zoning changes for Banning Ranch. BRC challenged the project approval by seeking a writ of mandate. It contended the EIR did not adequately disclose or analyze environmental impacts and mitigation measures with respect to ESHA, instead deferring these critical functions. BRC also alleged that the City had violated its obligation under the general plan to work with the Coastal Commission to identify areas on Banning Ranch to be protected from development.
The City responded that CEQA does not require an EIR to include ESHA determinations. It defended its exercise of discretion under the general plan. The trial court rejected the CEQA claims, relying on Banning Ranch I, supra, 211 Cal.App.4th 1209. In that case, the Court of Appeal held it was sufficient for the City's Sunset Ridge Park EIR to note potential ESHA and acknowledge that the Coastal Commission's designation of ESHA might lead it to reject proposed mitigation measures. However, the trial court granted BRC's petition, finding that the City had failed to meet its obligations under the general plan.
"[A]n agency may abuse its discretion under CEQA either by failing to proceed in the manner CEQA provides or by reaching factual conclusions unsupported by substantial evidence. (§ 21168.5.) 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' (Citizens of Goleta Valley v. Board of Supervisors (1990) 52 Cal.3d 553, 564 [276 Cal.Rptr. 410, 801 P.2d 1161]), we accord greater deference to the agency's substantive factual conclusions. In reviewing for substantial evidence, the reviewing court `may not set aside an agency's approval of an EIR on the ground that an opposite conclusion would have been equally or more reasonable,' for, on factual questions, our task `is not to weigh conflicting evidence and determine who has the better argument.' (Laurel Heights [Improvement Assn. v. Regents of University of California (1988)] 47 Cal.3d [376,] 393 [253 Cal.Rptr. 426, 764 P.2d 278]." (Vineyard Area Citizens for Responsible Growth, Inc. v. City of Rancho Cordova (2007) 40 Cal.4th 412, 435 [53 Cal.Rptr.3d 821, 150 P.3d 709] (Vineyard).)
Decisions as to the feasibility of alternatives and mitigation measures are subject to a rule of reason. (Goleta Valley, supra, 52 Cal.3d at p. 565; Laurel Heights Improvement Assn. v. Regents of University of California, supra, 47 Cal.3d at p. 407 (Laurel Heights I); see Guidelines, § 15126.6, subd. (f)(1).) No one factor establishes a categorical limit on the scope of reasonably feasible alternatives to be discussed in an EIR. (Goleta Valley, at p. 566; Guidelines, § 15126.6, subd. (f).) Here, however, the City's EIR omitted any analysis of the Coastal Act's ESHA requirements. It did not discuss which areas might qualify as ESHA, or consider impacts on the two ESHA delineated in the Coastal Commission's consent orders. As a result, the EIR did not meaningfully address feasible alternatives or mitigation measures.
The City claims that identification of potential ESHA would be merely speculative. The argument fails for several reasons. First, no speculation was involved with respect to the two ESHA covered by the consent orders.
It also appears that the City has evaluated ESHA impacts as a matter of course for other projects. The EIR explained that even though it did not have a certified local coastal program and therefore could not issue coastal development permits, the City did review project applications for consistency with its general plan, zoning regulations, and CLUP. Applicants would then seek a coastal development permit from the Coastal Commission. Accordingly, it seems the City routinely applied its CLUP requirements, which include specific ESHA guidelines, even though ultimate ESHA determinations would be made by the commission. The City's excuse for not doing so in this case is that Banning Ranch is not covered by the CLUP. However, the EIR acknowledged that the commission would consider the CLUP's provisions when it assessed ESHA on Banning Ranch. Nothing prevented the City from doing the same, just as it does for projects within the CLUP.
The City's position finds no support in Banning Ranch I, supra, 211 Cal.App.4th 1209. In that case the City identified potential ESHA in Sunset Ridge Park and discussed mitigation measures. BRC argued that the Coastal Commission was likely to disagree but did not claim, as it does here, that the City had entirely failed to designate potential ESHA. The Banning Ranch I court concluded that the Sunset Ridge Park EIR "adequately flagged potential inconsistencies and addressed them in advance through proposed mitigation." (Id. at p. 1234.) Here, the Court of Appeal reasoned that the Banning Ranch EIR also "adequately flagged potential inconsistencies with the Coastal Act
By certifying an inadequate EIR, the City abused its discretion. "[F]ailure to disclose information called for by CEQA may be prejudicial `regardless of whether a different outcome would have resulted if the public agency had complied' with the law (§ 21005, subd. (a))." (Neighbors for Smart Rail v. Exposition Metro Line Construction Authority (2013) 57 Cal.4th 439, 463 [160 Cal.Rptr.3d 1, 304 P.3d 499].) On the other hand, "there is no presumption that error is prejudicial." (§ 21005, subd. (b).) "Insubstantial or merely technical omissions are not grounds for relief. [Citation.] `A prejudicial abuse of discretion occurs if the failure to include relevant information precludes informed decisionmaking and informed public participation, thereby thwarting the statutory goals of the EIR process.'" (Neighbors for Smart Rail, at p. 463; see Sierra Club, supra, 7 Cal.4th at pp. 1236-1237.)
Accordingly, reversal is not called for whenever an agency may have failed to integrate its CEQA review with other environmental review procedures "to the maximum feasible extent." (§ 21003, subd. (a).)
BRC is entitled to relief on its CEQA claim. We express no view on the general plan issues discussed by the courts below.
We reverse the Court of Appeal's judgment and remand for further proceedings consistent with the views expressed herein.
Cantil-Sakauye, C. J., Werdegar, J., Chin, J., Liu, J., Cuéllar, J., and Kruger, J., concurred.
The Douda court, in the course of summarizing the terms of section 30600, which are less than crystalline, suggested that a local agency might be authorized to issue permits without either certifying a local coastal program or following section 30600, subdivision (b)(1). (Douda v. California Coastal Com., supra, 159 Cal.App.4th at p. 1188.) The suggestion is incorrect. The statute leaves no room for such a scenario. (§ 30600, subds. (c) & (d).)