In Vichy Springs Resort, Inc. v. City of Ukiah (2024) 101 Cal.App.5th 46, the First District Court of Appeal reversed the trial court’s judgment sustaining a demurrer to claims that a project to demolish an existing shooting range, and construct a new one, should have been subjected to CEQA review. In the published portion of the opinion, the court held that the claim raised by Petitioner Vichy Springs Resort, Inc. that Mendocino County improperly declined to exercise its regulatory authority over the project, was sufficient to state a CEQA cause of action. The court also held that completion of the project did not moot the CEQA claims.
Background
Ukiah Rifle and Pistol Club operates a shooting range in an unincorporated area of the County, on land that it leases from the City of Ukiah. When the Club sought to demolish the existing range and construct a new range, Vichy sued the City and County, alleging that both entities violated CEQA. According to Vichy’s petition for writ of mandate, the County erroneously determined that it had no regulatory authority over the project, and therefore improperly allowed the project to proceed without first completing CEQA review. Vichy similarly alleged that the City improperly determined that the project was not subject to CEQA. Vichy did not seek a preliminary injunction and the Club completed the project while the case was pending in the trial court.
The County demurred to Vichy’s CEQA cause of action, arguing that the County’s alleged failure to exercise its regulatory authority was not a “project” subject to CEQA. Additionally, the Club and the City demurred to the CEQA cause of action, arguing that it became moot when the Club completed the project. The trial court sustained the demurrers without leave to amend. Vichy appealed.
Court of Appeal’s Decision
The Court of Appeal reversed the trial court’s judgment. In the published portion of its opinion, the court held that the Petition properly alleged a violation of CEQA by the County and that the Project’s completion did not render Vichy’s CEQA cause of action moot.
CEQA claim was not moot after project completion
As a threshold matter, the court held that the CEQA claims were not moot because the petition alleged that some of the project’s environmental impacts could still be alleviated. The court noted that the petition included examples of post-completion measures that could mitigate the project’s alleged significant environmental impacts, such as developing a lead removal program, implementing a pollution prevention plan, limiting the hours and scope of shooting range operations, and requiring lead-free ammunition. Additionally, while acknowledging that it would have been preferable for Vichy to seek a preliminary injunction to halt the project, the court nevertheless concluded that Vichy’s failure to do so did not require a finding that the CEQA claims were moot.
The court distinguished other cases holding that completion of the project rendered CEQA claims moot, explaining that the petitioners in those cases did not adequately allege or demonstrate that post-completion modifications or mitigation measures could remedy the claimed CEQA violations.
County’s failure to exercise its regulatory authority could give rise to a CEQA violation
The court also held that the petition properly alleged a CEQA violation by the County. The County argued that its decision to not regulate the project did not rest on any provision of CEQA such that Vichy could properly sue the County “on the grounds of noncompliance” with CEQA’s statutory requirements. The court, however, concluded that the County’s proposed interpretation of CEQA was “overly formalistic,” as Vichy’s ultimate contention was that the County would have been required to comply with CEQA had it properly exercised its authority.
The court similarly rejected the County’s arguments that the petition did not describe a “project” for purposes of CEQA and that CEQA applies only to project approvals but not to governmental inaction. The court explained that the “project” at issue in the litigation was the shooting range demolition and construction—not the County’s alleged failure to regulate. Thus, because the County’s inaction allowed the project to proceed without environmental review that might have otherwise been required had the County exercised its authority over the project, Vichy properly alleged a CEQA violation by the County.
– Natasha Roland