Background: The State Environmental Policy Act (SEPA). The SEPA establishes a review process for state agencies and local governments to identify possible environmental impacts that may result from government actions. The actions include project actions involving decisions on specific projects, such as the issuance of a permit, and nonproject actions involving decisions on policies and plans, including the adoption of land-use plans and regulations. The information collected through the SEPA review process may be used to change a proposal to mitigate likely impacts, or to condition or deny a proposal when adverse environmental impacts are identified.

Provisions of the SEPA generally require a project applicant to complete an environmental checklist. An environmental checklist includes questions about the potential environmental impacts of the proposal. This checklist is then reviewed by the lead agency – one agency identified and responsible for compliance with the procedural requirements of SEPA – to determine whether the proposal is likely to have a significant adverse environmental impact. This environmental threshold determination is made by the lead agency and is documented in either a determination of nonsignificance or a determination of significance. A determination of significance requires the preparation of an environmental impact statement (EIS) by the lead agency. The EIS must include detailed information about the environmental impact of the project and any adverse environmental effects that cannot be avoided if the proposal is implemented. The EIS must also include alternatives, including mitigation, to the proposed action.

The National Environmental Policy Act (NEPA). The NEPA establishes a review process that is similar to the SEPA process to determine the environmental impact of federal undertakings. There are three levels of analysis that can be undertaken pursuant to NEPA:

categorical exclusion determination, which determines if the project meets certain criteria which have been previously determined to indicate that the project will have no significant environmental impact;
environmental assessment, which requires the preparation of a written assessment of whether the project will have a significant impact on the environment; and
environmental impact assessment, which is a more detailed evaluation of the proposed project and potential alternatives.

Coastal Zone Management Program (CZMP). The CZMP is a federal program administered by the National Oceanic and Atmospheric Administration, which encourages and assists states to develop and implement CZMPs. States prepare CZMPs that describe their coastal resources and how they are managed. In general, federal or federally permitted activities that affect any land use, water use, or natural resource of a state's coastal zone must comply with the enforceable policies contained in the CZMP.

Clean Water Act. The federal Clean Water Act sets effluent-based limitations on pollutant discharges into navigable waters. The Environmental Protection Agency has delegated federal Clean Water Act authority to the Department of Ecology, which issues a variety of permits under state and federal laws that stipulate conditions for discharges into state waters.

Summary of Bill: Legislative findings state that SEPA should not unreasonably delay or prevent economic growth and development of infrastructure. The Legislature reaffirms its desire for job retention and growth and finds that public agencies should coordinate environmental reviews to avoid unnecessary delay and encourage investment in the state.

The governmental entities with responsibility for SEPA review must adopt the scope of analysis contained in the federal review for proposals that have an environmental analysis under NEPA. There are exceptions; for example, if there is a finding that the environmental analysis is inadequate.

A governmental entity responsible for SEPA must complete its environmental review no later than 30 days after publication of a categorical exclusion determination, a finding of no significant impact, or a final EIS that is prepared under NEPA for the same proposal. If the governmental entity fails to comply with the deadline, the SEPA requirements are waived for the proposal. For projects not requiring review under NEPA, the governmental entity must issue a threshold determination no later than 60 days after submitting the completed application. Environmental reviews of a project must be completed no later than 12 months after submission of a complete application. If the governmental entity fails to comply with the deadline, the SEPA requirements are waived for the proposal. For projects where the governmental entity responsible for SEPA compliance is a city or county, and all or a portion of the funding is provided by the city or county, the time period for complying with SEPA does not begin until the project is referred to another agency for review.

Certifications under the CZMP or Section 401 of the Clean Water Act are exempt from the requirements of SEPA.