In this case the court ruled that the exhaustion-of-administrative-remedies requirement set forth in subdivision (a) of section 21177 applies to a public agency’s decision that a proposed project is categorically exempt from CEQA compliance as long as:
(1) the public agency gives notice of the ground for its exemption determination, and
(2) that determination is preceded by public hearings at which members of the public had the opportunity to raise any concerns or objections to the proposed project.
As explained in the case summary:
“In this case, a developer applied to a county planning department for approval to build a housing subdivision. The department and the developer gave written notice to various agencies, to neighbors, and to interested parties. The notice described the proposed project, mentioned the department’s determination that the project was categorically exempt from environmental law requirements, and solicited comments. After holding public hearings, the county determined that the proposed project was categorically exempt from compliance with environmental law requirements, and approved it. The county’s approval was then challenged in court. At issue here is a statutory provision stating that a public agency’s approval of a proposed project can be challenged in court only on grounds that were “presented to the public agency orally or in writing by any person during the public comment period . . . or prior to the close of the public hearing on the project before the issuance of the notice of determination.” (Pub. Resources Code, § 21177, subd. (a).) Does this exhaustion-of-administrative-remedies provision apply to a public agency’s decision that a project is categorically exempt from environmental law requirements? We hold that it does.”
As noted by the court:
“Subdivision (a) of section 21177 states that a court action alleging a public agency’s failure to comply with CEQA may be brought only if “the alleged grounds for noncompliance with [CEQA] were presented to the public agency orally or in writing by any person during the public comment period provided by this division or prior to the close of the public hearing on the project before the issuance of the notice of determination.” (Italics added.) Subdivision (e) of section 21177 states that the statute’s exhaustion-of-administrative-remedies requirement “does not apply to any alleged grounds for noncompliance with [CEQA] for which there was no public hearing or other opportunity for members of the public to raise those objections orally or in writing prior to the approval of the project . . . .” As the above-italicized statutory language shows, application of subdivision (a)’s exhaustion-of-administrative-remedies provision requires either (1) a public comment period provided by CEQA (the public comment provision) or (2) an opportunity for public comment at public hearings before issuance of a notice of determination (the public hearing provision).”
The court thus held:
“For the reasons given above, we conclude that the exhaustion-of-administrative-remedies requirement set forth in subdivision (a) of section 21177 applies to a public agency’s decision that a proposed project is categorically exempt from CEQA compliance as long as the public agency gives notice of the ground for its exemption determination, and that determination is preceded by public hearings at which members of the public had the opportunity to raise any concerns or objections to the proposed project. (Accord, Hines, supra, 186 Cal.App.4th at pp. 852-855.) {Slip Opn. Page 10}”