ELR Citation: 42 ELR 20206
No(s). C064280 (Cal. Ct. App. 3d Dist. Oct 4, 2012)

A California appellate court reversed in part a lower court decision granting a petition to vacate an irrigation district's approval of an agreement to provide water to a casino on tribal land. In approving the agreement, the irrigation district determined that the agreement was not subject to certain conditions limiting the amount of water it could provide to the tribal land that were imposed when the land was first annexed into the district on grounds that the conditions were unconstitutional. It also determined that the project was exempt from review under the California Environmental Quality Act (CEQA). The lower court correctly determined that the irrigation district had no authority to disregard the annexation conditions or determine their constitutionality. And the lower court correctly determined the project did not qualify for the categorical exemption for small construction projects. The project's unusual circumstances created a potential for environmental impact, thereby triggering an exception to the categorical exemption. But the lower court exceeded its authority when it mandated the irrigation district to prepare an environmental impact report. How an agency complies with CEQA is a matter first left to the agency's discretion. On remand, the lower court must order the irrigation district to conduct further proceedings in accordance with CEQA.