California Environmental Quality Act: exemption: qualified opportunity zones.

The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. CEQA exempts certain projects from its requirements. Existing federal law authorizes the governor of a state to nominate a specified number of census tracts that meet certain requirements as a qualified opportunity zone and authorizes the Treasury Secretary to designate those tracts as qualified opportunity zones. Existing federal law provides certain federal tax incentives to a taxpayer who invests in a qualified opportunity fund, which is an investment vehicle organized for the purpose of investing in qualified opportunity zone property, as prescribed. This bill would exempt a project that is financed by a qualified opportunity fund and that meets certain requirements from CEQA. The bill would require the project proponent to make certain certifications regarding the project. The bill would require a lead agency, before making a determination that the project is exempt from CEQA, to hold a noticed public hearing on the project, as specified. The bill would require the lead agency, if it determines that a project is exempt from CEQA under the above exemption and determines to approve or carry out the project, to file a specified notice with the Office of Planning and Research. Because a lead agency would have to determine the applicability of the exemption, to take certain specified action before determining that a project is exempt, and to file a notice with the Office of Planning and Research, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.