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DOWDALL LAW OFFICES A PROFESSIONAL CORPORATION ATTO R N EYS AT LAW City Council of the City of Santa Ana City of Santa Ana September 16, 2021 Page 19 permissive / automatic 7% per year increase in rents with an additional hearing allowed to consider a just return based on all relevant economic factors. The Legislative Counsel Opinion of August 21, 1981 highlights the need for the preparation of an Environmental Impact Report. "We think that, generally, the enactment of a local rent control ordinance could conceivably have a potential for substantial adverse impact on the environment, thereby necessitating an initial study to determine whether an FIR or a negative declaration is to be prepared. For example, the regulation of residential rents in an urban area could conceivably discourage the development of high density rental development in that city and encourage that type of development in surrounding jurisdictions, with the resultant effect of more distant commutes and increased air pollution, traffic congestion, and energy consumption." Id., p.7. Obviously, the policy and spirit behind CEQA is to provide the fullest possible protection of the environment, and the maximum consideration and deliberation thereof to assure fullest implementation of mitigation measures. As the Legislative Counsel has stated: "The provisions of CEQA are to be interpreted broadly to afford the fullest possible protection to the environment within the reasonable scope of the statutory language (citation omitted). Ibis principle has been specifically applied by the courts with regard to the issue of what constitutes a 'project' under the Act (citation omitted)." Legislative Counsel Opinion, supra, p.5. In view of the probability for adverse environmental consequences, it is therefore imperative that an Environmental hnpact Report be prepared in order to implement all available mitigation measures and for the fullest possible deliberation and consideration of the impact upon the environment of the City. The fact that the action may not have a direct, physical effect is not relevant to whether the action constitutes a project, or whether an Environmental Impact Report is required. As stated in Bozung v. Local Agency Formation Commission (1975) 13 Ca1.3d 263, at 279: "[T]he notion that the project itself must directly have such an effect was effectively scotched in Friends of Mammoth [v. Bd. of Supervisors (1972) 8 Cal.3d 247]. The granting of a conditional use permit - a piece of paper - does not directly affect the environment any more than an annexation approval - another piece of paper. Friends of Mammoth, of course, said that the word'project' appears to emphasize activities culminating in the physical changes to the environment,...." (Emphasis original.) -19-