Friday, January 1, 2010

Local Government's Decision Not To Renew a CUP was Exempt From CEQA

Sunset Sky Ranch Pilots Association v. County of Sacramento (Taylor) (Dec. 28, 2009, S165861) __ Cal.4th __.

A lead agency’s decision to not renew a conditional use permit (“CUP”) was not considered a “public project” under CEQA. The act of declining to authorize activities that require obtaining permits did not constitute a public agency action taken to cease the operations of the business.

In the case, the County of Sacramento (“County”) declined to renew a CUP for a privately owned airport. Petitioner Sunset Sky Ranch Pilots Association sought a writ of mandamus that would prevent the airport from closing. The trial court denied the petition. On appeal, the appellate court reversed and held that the County’s action amounted to a “project” pursuant to CEQA.

The Supreme Court of California granted review of the case and ultimately held that the Court of Appeal erred because it had misconstrued the nature of the project. The Supreme Court held that declining to renew the permit was not a “public” project under CEQA, because the County did not “directly undertake” an action to close the airport. Instead, the County was not reauthorizing a private activity that required the issuance of a permit. The airport operation was the nature of a reviewable “project” in question in the case. However, such projects that are rejected by a public agency are specifically exempted from CEQA requirements.