The California Coastal Act of 1976 requires any person wishing to perform or undertake any development in the coastal zone, as defined, in addition to obtaining any other permit required by law from any local government or from any state, regional, or local agency, to obtain a coastal development permit, as provided. The act requires the issuance of a coastal development permit if the proposed development is in conformity with the certified local coastal program. The act provides for the certification of local coastal programs by the California Coastal Commission. The act authorizes the requirement of having to obtain a permit to be waived when immediate action by a person or public agency performing a public service is required to protect life and public property from imminent danger, or to restore, repair, or maintain public works, utilities, or services destroyed, damaged, or interrupted by natural disaster, serious accident, or in other cases of emergency, as specified. The act provides that this waiver provision does not authorize the permanent erection of structures valued at more than $25,000.

This bill would increase the above-described amount to $125,000, adjusted annually for inflation pursuant to the consumer price index.

The California Coastal Act of 1976 requires any person wishing to perform or undertake any development in the coastal zone, as defined, in addition to obtaining any other permit required by law from any local government or from any state, regional, or local agency, to obtain a coastal development permit, as provided. The act requires the issuance of a coastal development permit if the proposed development is in conformity with the certified local coastal program. The act provides for the certification of local coastal programs by the California Coastal Commission. The act authorizes the requirement of having to obtain a permit to be waived when immediate action by a person or public agency performing a public service is required to protect life and public property from imminent danger, or to restore, repair, or maintain public works, utilities, or services destroyed, damaged, or interrupted by natural disaster, serious accident, or in other cases of emergency, as specified. The act provides that this waiver provision does not authorize the permanent erection of structures valued at more than $25,000.

This bill would increase the above-described amount to $125,000, adjusted annually for inflation pursuant to the consumer price index.

The California Coastal Act of 1976 requires any person wishing to perform or undertake any development in the coastal zone, as defined, in addition to obtaining any other permit required by law from any local government or from any state, regional, or local agency, to obtain a coastal development permit, as provided. The act requires the issuance of a coastal development permit if the proposed development is in conformity with the certified local coastal program. The act provides for the certification of local coastal programs by the California Coastal Commission. The act authorizes the requirement of having to obtain a permit to be waived when immediate action by a person or public agency performing a public service is required to protect life and public property from imminent danger, or to restore, repair, or maintain public works, utilities, or services destroyed, damaged, or interrupted by natural disaster, serious accident, or in other cases of emergency, as specified. The act provides that this waiver provision does not authorize the permanent erection of structures valued at more than $25,000.

This bill would increase the above-described amount to $125,000. $125,000, adjusted annually for inflation pursuant to the consumer price index.

The California Coastal Act of 1976 requires any person wishing to perform or undertake any development in the coastal zone, as defined, in addition to obtaining any other permit required by law from any local government or from any state, regional, or local agency, to obtain a coastal development permit, as provided. The act requires the issuance of a coastal development permit if the proposed development is in conformity with the certified local coastal program. The act provides for the certification of local coastal programs by the California Coastal Commission. The act authorizes the requirement of having to obtain a permit to be waived when immediate action by a person or public agency performing a public service is required to protect life and public property from imminent danger, or to restore, repair, or maintain public works, utilities, or services destroyed, damaged, or interrupted by natural disaster, serious accident, or in other cases of emergency, as specified. The act provides that this waiver provision does not authorize the permanent erection of structures valued at more than $25,000.

This bill would increase the above-described amount to $125,000.

 CONSENT  

Bill No: AB 584

Author: Hart (D)

Amended: 3/6/23 in Assembly

Vote: 21

SENATE NATURAL RES. & WATER COMMITTEE: 11-0, 6/22/23

AYES: Min, Seyarto, Allen, Dahle, Grove, Hurtado, Laird, Limón, McGuire, Padilla, Stern

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 60-0, 3/30/23 (Consent) - See last page for vote

SUBJECT: California Coastal Act of 1976: coastal development: emergency waiver

SOURCE: Author

DIGEST:

This bill expands the eligibility criteria for certain coastal zone projects requiring immediate action for an emergency waiver of permitting requirements by increasing the value of permanent structures erected under an emergency permitting waiver to $125,000 from $25,000, and authorizes the annual indexing of the cap on the value of these structures based upon the Consumer Price Index, as provided.

ANALYSIS:

Existing law:

1. Establishes the California Coastal Commission (commission) in the California Natural Resources Agency.
2. Includes legislative findings and declarations that the basic goals of the state for the coastal zone include:
   1. Protect, maintain, and, where feasible, enhance and restore the overall quality of the coastal zone environment and its natural and artificial resources, and
   2. Maximize public access to and along the coast and maximize public recreational opportunities in the coastal zone consistent with sound resources conservation principles and constitutionally protected rights of private property owners, among other things. (PRC §30001.5)
3. Provides for the planning and regulation of development within the coastal zone, as defined.
   1. A person planning to perform or undertake any development in the coastal zone is required to obtain a coastal development permit (CDP) from the commission or local government enforcing a certified local coastal program (LCP). (PRC §30600)
      1. Development means, among other things, the placement or erection of any solid material or structure on land or in water. Structure means building, road, pipe, flume, conduit, and electrical power transmission and distribution lines, among other things. (PRC §30106)
      2. The coastal zone means the coastal land and waters of California, and includes the lands that extend inland generally 1,000 yards from the mean high tide line, as specified, with various exceptions including the San Francisco Bay. (PRC §30103)
4. Requires the commission to provide, by regulation, for the issuance of an emergency coastal development permit, as provided, in certain situations. (PRC §30624)
5. Authorizes the waiver of the requirement of having to obtain a permit when immediate action by a person or public agency performing a public service is required to protect life and public property from imminent danger, or to restore, repair, or maintain public works, utilities, or services destroyed, damaged, or interrupted by natural disaster, serious accident, or in other cases of emergency, as specified. Provides that the waiver provision does not authorize the permanent erection of structures valued at more than $25,000. (PRC §30611)

This bill expands the eligibility criteria for certain coastal zone projects requiring immediate action for an emergency waiver of permitting requirements from the commission by increasing the value of permanent structures erected under an emergency permitting waiver to $125,000 from $25,000, and authorizes the annual indexing of the cap on the value of these structures based upon the Consumer Price Index, as provided, among other provisions.

Background

The commission was established by voter initiative in 1972. The Legislature later made the commission permanent through the adoption of the Coastal Act. The commission plans for and regulates the use of land and water in the coastal zone (which excludes the San Francisco Bay).

The commission is an independent, quasi-judicial state agency, and its mission statement states that it “is committed to protecting and enhancing California’s coast and ocean for present and future generations.” The commission does so “through careful planning and regulation of environmentally sustainable development, rigorous use of science, strong public participation, education, and effective intergovernmental coordination.”

Development activities in the coastal zone generally require a CDP issued by the commission or by a local government with a LCP certified by the commission. Coastal Act policies are the standards the commission uses to determine the permissibility of proposed developments subject to its jurisdiction.

In the event of a disaster or similar situation where emergency work necessary to protect life and property and for repairs to certain public facilities and infrastructure, the commission has multiple mechanisms under law and regulation to authorize emergency actions or projects within the coastal zone. These include:

• Permitting exemptions for public agencies and public utilities for projects to protect public safety and the maintenance, repair, or restoration of certain public roads.
• Emergency permitting waivers for a person or public agency performing a public service where immediate action is needed to protect public safety or to restore, repair, or maintain public works, utilities, or services damaged by a natural disaster or other emergency where any permanent structures are valued at $25,000 or less. Emergency permitting waivers are for work that is development, but does not raise any Coastal Act issues.
• Emergency CDPs where the proposed development is necessary to address a sudden unexpected occurrence, immediate action is necessary, the proposed development is the minimum necessary to respond to the emergency, and other requirements are met. An emergency CDP requires a follow up CDP for the work to ensure that any work done under emergency conditions will be either removed or modified to be consistent with the Coastal Act in the long-term, if necessary.

As of February 3, 2023, the December 2022/January 2023 atmospheric rivers that struck California required the issuance of 10 Emergency CDPs and one emergency permitting waiver to public agencies for replacement of revetments and similar activities. In addition, Caltrans and other public agencies qualified for multiple permitting exceptions for roadway repair. Apparently it can be difficult for an entity to qualify for emergency permitting waivers due to the limitation on the value of the permanent structure which has not been increased in almost 50 years. While having a cap on the value of the permanent structure can help to ensure major development projects are not subject to the emergency permitting waiver, the $25,000 may be overly restrictive given increasing construction costs and inflation, among other factors.

Comments

The appropriate value for the permanent structure cap under the emergency permitting waiver? The $25,000 cap was set in 1976, and inflation over time makes that equivalent to approximately $130,000 today. The new $125,000 cap with annual indexing is roughly equivalent. The annual indexing should allow the cap to reasonably maintain its real value in constant dollars and expand the number of projects that qualify for the waivers, rather than Emergency CDPs.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

SUPPORT: (Verified 7/3/23)

California Association of Realtors

California Special Districts Association

City of Carlsbad

City of Goleta

City of Rancho Palos Verdes

County of Santa Cruz

League of California Cities

OPPOSITION: (Verified 7/3/23)

None received

ARGUMENTS IN SUPPORT: According to the author, “AB 584 is a common-sense measure that will update the value amount used to erect fallen structures in utilizing coastal emergency waivers. Since the Coastal Act was enacted in 1976, the value has not changed. AB 584 will update the threshold from $25,000 to $125,000 to reflect today’s dollars, and update annually pursuant to inflation. At a time when climate change and natural disasters are affecting California’s infrastructure and shores, emergency permits and waivers are critical resources to public agencies and regulatory bodies. AB 584 will allow California’s agencies to clean-up our roads, trails, and oceans to ensure the safety of Californians.”

ASSEMBLY FLOOR: 60-0, 3/30/23

AYES: Addis, Aguiar-Curry, Alanis, Arambula, Bains, Bennett, Berman, Boerner Horvath, Juan Carrillo, Wendy Carrillo, Cervantes, Connolly, Megan Dahle, Davies, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gallagher, Gipson, Haney, Hart, Holden, Hoover, Jackson, Jones-Sawyer, Lackey, Lee, Low, Lowenthal, Maienschein, McKinnor, Muratsuchi, Stephanie Nguyen, Pacheco, Jim Patterson, Joe Patterson, Petrie-Norris, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Weber, Wicks, Wilson, Wood, Zbur, Rendon

NO VOTE RECORDED: Alvarez, Bauer-Kahan, Bonta, Bryan, Calderon, Chen, Dixon, Gabriel, Garcia, Grayson, Irwin, Kalra, Mathis, McCarty, Ortega, Papan, Pellerin, Quirk-Silva, Soria, Ward

Prepared by: Katharine Moore / N.R. & W. / (916) 651-4116

7/5/23 14:55:50

**** END ****

SENATE COMMITTEE ON NATURAL RESOURCES AND WATER

Senator Dave Min, Chair

2023 - 2024 Regular

Bill No: AB 584 Hearing Date: June 22, 2023

Subject: California Coastal Act of 1976: coastal development: emergency waiver

BACKGROUND AND EXISTING LAW

The California Coastal Commission (commission) was established by voter initiative in 1972. The Legislature later made the Coastal Commission permanent through the adoption of the California Coastal Act of 1976 (Coastal Act) (Public Resources Code (PRC) §§30000 et seq.). The Commission plans for and regulates the use of land and water in the coastal zone (which excludes the San Francisco Bay).

The commission is an independent, quasi-judicial state agency, and its mission statement states that it “is committed to protecting and enhancing California’s coast and ocean for present and future generations.” The commission does so “through careful planning and regulation of environmentally sustainable development, rigorous use of science, strong public participation, education, and effective intergovernmental coordination.”

Development activities in the coastal zone generally require a coastal development permit (CDP) issued by the commission or by a local government with a local coastal program (LCP) certified by the commission. Coastal Act policies are the standards the Coastal Commission uses to determine the permissibility of proposed developments subject to its jurisdiction.

In the event of a disaster or similar situation where emergency work necessary to protect life and property and for repairs to certain public facilities and infrastructure, the commission has multiple mechanisms under law and regulation to authorize emergency actions or projects within the coastal zone. These include:

• Permitting exemptions for public agencies and public utilities for projects to protect public safety and the maintenance, repair, or restoration of certain public roads.
• Emergency permitting waivers for a person or public agency performing a public service where immediate action is needed to protect public safety or to restore, repair, or maintain public works, utilities, or services damaged by a natural disaster or other emergency where any permanent structures are valued at $25,000 or less. Emergency permitting waivers are for work that is development, but does not raise any Coastal Act issues.
• Emergency CDPs where the proposed development is necessary to address a sudden unexpected occurrence, immediate action is necessary, the proposed development is the minimum necessary to respond to the emergency, and other requirements are met. An emergency CDP requires a follow up CDP for the work to ensure that any work done under emergency conditions will be either removed or modified to be consistent with the Coastal Act in the long-term, if necessary.

As of February 3, 2023, the December 2022/January 2023 atmospheric rivers that struck California required the issuance of 10 Emergency CDPs and one emergency permitting waiver to public agencies for replacement of revetments and similar activities. In addition, Caltrans and other public agencies qualified for multiple permitting exceptions for roadway repair. Apparently it can be difficult for an entity to qualify for emergency permitting waivers due to the limitation on the value of the permanent structure which has not been increased in almost 50 years. While having a cap on the value of the permanent structure can help to ensure major development projects are not subject to the emergency permitting waiver, the $25,000 may be overly restrictive given increasing construction costs and inflation, among other factors.

Existing law, pursuant to the Coastal Act:

1. Establishes the commission in the California Natural Resources Agency.
2. Includes legislative findings and declarations that the basic goals of the state for the coastal zone include:
   1. Protect, maintain, and, where feasible, enhance and restore the overall quality of the coastal zone environment and its natural and artificial resources, and
   2. Maximize public access to and along the coast and maximize public recreational opportunities in the coastal zone consistent with sound resources conservation principles and constitutionally protected rights of private property owners, among other things. (PRC §30001.5)
3. Provides for the planning and regulation of development within the coastal zone, as defined.
   1. A person planning to perform or undertake any development in the coastal zone is required to obtain a CDP from the commission or local government enforcing a certified LCP. (PRC §30600)
      1. Development means, among other things, the placement or erection of any solid material or structure on land or in water. Structure means building, road, pipe, flume, conduit, and electrical power transmission and distribution lines, among other things. (PRC §30106)
      2. The coastal zone means the coastal land and waters of California, and includes the lands that extend inland generally 1,000 yards from the mean high tide line, as specified, with various exceptions including the San Francisco Bay. (PRC §30103)
4. Requires the commission to provide, by regulation, for the issuance of an emergency coastal development permit, as provided, in certain situations. (PRC §30624)
5. Authorizes the waiver of the requirement of having to obtain a permit when immediate action by a person or public agency performing a public service is required to protect life and public property from imminent danger, or to restore, repair, or maintain public works, utilities, or services destroyed, damaged, or interrupted by natural disaster, serious accident, or in other cases of emergency, as specified. Provides that the waiver provision does not authorize the permanent erection of structures valued at more than $25,000. (PRC §30611)

PROPOSED LAW

This bill would expand the eligibility criteria for certain coastal zone projects requiring immediate action for an emergency waiver of permitting requirements by increasing the value of permanent structures erected under an emergency permitting waiver to $125,000 from $25,000, and would authorize the annual indexing of the cap on the value of these structures based upon the Consumer Price Index, as provided.

ARGUMENTS IN SUPPORT

According to the author, “AB 584 is a common-sense measure that will update the value amount used to erect fallen structures in utilizing coastal emergency waivers. Since the Coastal Act was enacted in 1976, the value has not changed. AB 584 will update the threshold from $25,000 to $125,000 to reflect today’s dollars, and update annually pursuant to inflation. At a time when climate change and natural disasters are affecting California’s infrastructure and shores, emergency permits and waivers are critical resources to public agencies and regulatory bodies. AB 584 will allow California’s agencies to clean-up our roads, trails, and oceans to ensure the safety of Californians.”

ARGUMENTS IN OPPOSITION

None received

COMMENTS

The appropriate value for the permanent structure cap under the emergency permitting waiver?

The $25,000 cap was set in 1976, and inflation over time makes that equivalent to approximately $130,000 today. The new $125,000 cap with annual indexing is roughly equivalent. The annual indexing should allow the cap to reasonably maintain its real value in constant dollars and expand the number of projects that qualify for the waivers, rather than Emergency CDPs.

SUGGESTED AMENDMENTS: none

SUPPORT

California Association of Realtors

California Special Districts Association

City of Carlsbad

City of Goleta

City of Rancho Palos Verdes

County of Santa Cruz

League of California Cities

OPPOSITION

None Received

-- END --

Date of Hearing: March 22, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

ABPCA Bill Id:AB 584

Author:(Hart) – As Amended Ver:March 6, 2023

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill increases the value of a structure, from $25,000 to $125,000, eligible for an exemption from the permit requirements under the California Coastal Act under specified conditions and adjusts the value of the cap annually for inflation, pursuant to the Consumer Price Index.

FISCAL EFFECT:

The California Coastal Commission (Commission) does not anticipate any costs to the Commission as a result of this bill. The Commission notes this bill will expand the pool of public works projects eligible for emergency coastal development permit waivers, which could result in future cost savings for the Commission of an undetermined amount.

COMMENTS:

1) Purpose. According to the author:

At a time when climate change and natural disasters are affecting California’s infrastructure and shores, emergency permits and waivers are a critical resource to public agencies and regulatory bodies. AB 584 is a simple but essential legislation to give the Coastal Commission more flexibility in issuing emergency waivers to restore fallen structures after natural disasters. The measure would allow California’s departments and agencies to clean-up our roads, trails, and oceans swiftly and ensure the safety of Californians.

2) Background. Generally, any “development” activity in the coastal zone requires a coastal development permit from the Commission or local government with a certified Local Coastal Program. Public Resources Code Section 30611 states that when immediate action by a person or public agency performing a public service is required to protect life and public property from imminent danger, or to restore, repair, or maintain public works, utilities, or services destroyed, damaged, or interrupted by natural disaster, serious accident, or in other cases of emergency, the requirements of obtaining a permit may be waived upon notification of the Commission of the type and location of the work within three days of the disaster or discovery of the danger, whichever occurs first. Permanent erection of structures valued at more than $25,000 is prohibited. If immediate action is not allowed under PRC Section 30611, applicants must secure an emergency permit from the Commission before any work can commence. Emergency permits require a follow-up coastal development permit for the work to ensure that any work done under emergency conditions will be either removed or modified to be consistent with the Coastal Act in the long-term. 

While having a monetary cap on the emergency permit waiver is important because it ensures the Commission is not waiving major projects that truly should be processed through an emergency permit, the low dollar amount in statute – accounting for inflation – effectively limits the Commission’s ability to provide emergency permit waivers. As a recent example, as detailed in the Assembly Natural Resources Committee analysis of this bill, the California Department of Transportation (Caltrans) needed to replace some rockfall netting that had been damaged along Highway 1 in Big Sur. This type of work is an example of a project that could benefit from an emergency permit waiver because Caltrans was simply replacing something that was already there. However, though the project was relatively small, Caltrans staff informed the Commission that neither the rockfall netting nor anything else Caltrans constructs is worth less than $25,000, thereby making an emergency waiver generally unavailable to them. The affected 44.6-mile stretch of Highway 1 was closed until Caltrans could clear the debris, which ended up costing Caltrans a $1.3 million emergency contract.

Last month, the executive director of the Commission reported, during the recent atmospheric rivers and collateral storm damage, the Commission approved 10 emergency permits and one emergency waiver for public agencies. While the need for emergency permit waivers is not frequent, at times, there can be a deluge of emergency projects along the coast when use of the emergency permit waivers could be beneficial. In these instances, it could be helpful for the Commission to be able to quickly waive the emergency projects that deserve waivers so that it can focus on all the other emergency projects that need emergency permits.

Writing in support of the bill, the League of California Cities states:

Coastal cities are experiencing sky-rocketing costs of materials (such as concrete), low supply of qualified contractors, and evermore complex projects following emergencies. AB 584 will allow more structural repairs to be completed as swiftly as possible in favor of public health and safety.

Analysis Prepared by: Nikita Koraddi / APPR. / (916) 319-2081

Date of Hearing: March 13, 2023

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Luz Rivas, Chair

ABPCA Bill Id:AB 584 (

Author:Hart) – As Amended Ver:March 6, 2023

SUBJECT: California Coastal Act of 1976: coastal development: emergency waiver.

SUMMARY: Increases the value of a structure from $25,000 to $125,000 to be eligible for an exemption from the permit requirements under the California Coastal Act under specified conditions, and adjusts the value of the cap to be adjusted annually based on the Consumer Price Index.

EXISTING LAW, pursuant to the Coastal Act of 1976 (Public Resources Code § 30000, et seq.):

1. Establishes the California Coastal Commission to protect regional, state, and national interests in assuring the maintenance of the long-term productivity and economic vitality of coastal resources necessary for the well-being of the people of the state, and to avoid long-term costs to the public and a diminished quality of life resulting from the misuse of coastal resources, to coordinate and integrate the activities of the many agencies whose activities impact the coastal zone, and to supplement their activities in matters not properly within the jurisdiction of any existing agency. (PRC § 30004)
2. Requires any person wishing to perform or undertake any development in the coastal zone, in addition to obtaining any other permit required by law from any local government or from any state, regional, or local agency, to obtain a coastal development permit. (PRC § 30600)
3. Defines “structure,” for purposes of development, as any building, road, pipe, flume, conduit, siphon, aqueduct, telephone line, and electrical power transmission and distribution line. (PRC § 30106)
4. Requires issuance of a coastal development permit if the proposed development is in conformity with the certified local coastal program.
5. Authorizes the requirement of having to obtain a permit to be waived when immediate action by a person or public agency performing a public service is required to protect life and public property from imminent danger, or to restore, repair, or maintain public works, utilities, or services destroyed, damaged, or interrupted by natural disaster, serious accident, or in other cases of emergency, as specified. Provides that the waiver provision does not authorize the permanent erection of structures valued at more than $25,000. (PRC § 30611)

FISCAL EFFECT: Unknown.

COMMENTS:

1. Need for the bill. According to the author,

At a time when climate change and natural disasters are affecting California’s infrastructure and shores, emergency permits and waivers are a critical resource to public agencies and regulatory bodies. AB 584 is a simple but essential legislation to give the Coastal Commission more flexibility in issuing emergency waivers to restore fallen structures after natural disasters. The measure would allow California’s departments and agencies to clean-up our roads, trails, and oceans swiftly and ensure the safety of Californians.

1. Coastal Act. When the Coastal Act was enacted in 1976, the Legislature declared that some of the basic goals for the coastal zone, among others, included ensuring orderly, balanced utilization and conservation of coastal zone resources taking into account the social and economic needs of the people of the state.

The California Coastal Commission administers the Coastal Act and works in partnership with local governments to protect shoreline public access and recreation, terrestrial and marine habitats, views of the coast and scenic coastal areas, agricultural lands, and more, by regulating proposed development along the coast and in nearby areas. As such, the Coastal Commission develops criteria for coastal development permits to ensure that development along the coast occurs in a way that conserves, sustains, and makes prudent use of California’s natural and recreational coastal resources.

1. Coastal development. Generally, any “development” activity in the coastal zone requires a coastal development permit from the Coastal Commission or local government with a certified Local Coastal Program. The width of the coastal zone varies, but it can extend up to five miles inland from the shore, including private and public property, and three miles out to sea.

“Development” is broadly defined by the Coastal Act, but includes demolition, construction, replacement, or changes to the size of a structure; grading, removal of, or placement of rock, soil, or other materials; clearing of vegetation in, or that provides, sensitive habitat; impeding access to the beach or public recreational trails; changing the intensity of use of land, such as using a single family home as a commercial wedding venue; and, repair or maintenance activities that could result in environmental impacts.

1. Emergency waivers. Under emergency situations, a permit waiver may be granted. When immediate action by a person or public agency performing a public service is required to protect life and public property from imminent danger, or to restore, repair, or maintain public works, utilities, or services destroyed, damaged, or interrupted by natural disaster, serious accident, or in other cases of emergency, permit requirements can be waived by the Coastal Commission within three days before/after the disaster.

Those permit waivers are limited to structures valued at $25,000 or less. While having a monetary cap on the emergency waiver is important because it ensures that the Coastal Commission isn’t waiving major projects that truly should be processed through an emergency permit, the low dollar amount in statute effectively limits the Coastal Commission’s ability to provide emergency permit waivers.

Emergency waivers are rare during “normal” times because the Coastal Commission processes most emergency projects through emergency permits. One reason is that the $25,000 limit on permanent structures has become prohibitively low over the years due to inflation.

As an example, the California Department of Transportation (CalTrans) needed to replace some rockfall netting along Highway 1 in Big Sur that had been damaged. This type of work would be an ideal example for an emergency waiver because CalTrans was just replacing something that was already there. However, though the project was relatively small, the Coastal Commission was informed by CalTrans staff that neither the rockfall netting nor basically anything else CalTrans constructs is worth less than $25,000, so emergency waiver was generally unavailable to them. The affected 44.6-mile stretch of Highway 1 was closed until CalTtrans could clear the debris, which ended up costing the department a $1.3 million emergency contract.

While the need for emergency permit waivers is not frequent, at times there can be a deluge of emergency projects along the coast when use of the emergency waivers would be really beneficial, such as the recent series of atmospheric rivers. In those moments, it’s helpful for Coastal Commission to be able to quickly waive the emergency projects that deserve waivers so that they can focus on all the other emergency projects that need emergency permits.

Last month, the Executive Director of the Coastal Commission reported that, during the atmospheric rivers and collateral storm damage, there were 10 emergency permits given to public agencies and one emergency waiver. These storms brought record-breaking rainfall, winds, storm surge and snowfall to many regions of the state, resulting in devastating flooding, mudslides and storm damage.

Emergency Permits require a follow up coastal development permit for the work to ensure that any work done under emergency conditions will be either removed or modified to be consistent with the Coastal Act in the long-term.  Waivers are just that—they are issued for work that is development under the Coastal Act, but does not raise any Coastal Act issues.

1. Is $125k an appropriate threshold? During the COVID-19 pandemic, the world felt the impacts of the supply chain backup and resultant cost increases on the prices of key commodities and increasing the cost of construction. The White House’s Housing and Inflation report in 2021 noted the pandemic-related market disruptions, like increased demand and rising building costs as well as other long-term supply constraints in the market contributed to record increases in prices.

More simply put – and setting aside today’s cost of building – when $25,000 limit was set in 1976, property values were significantly lower. If using basic inflation calculator to measures the buying power of the dollar over time, $25,000 in 1976 is comparable to $128,000 in today’s market.

Increasing the cap to what it would be today with inflation will allow Coastal Commission staff to re-capture the value of the emergency waiver as a regulatory tool, and in turn will allow staff to serve public agency partners even more nimbly during times of widespread crisis. Additionally adjusting the cap annually for inflation pursuant to the Consumer Price Index will prevent future statutory walls like the current one presents to obtaining emergency permit waivers.

REGISTERED SUPPORT / OPPOSITION:

Support

California Association of Realtors

Opposition

None on file

Analysis Prepared by: Paige Brokaw / NAT. RES. /