BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1096
                                                                  Page 1

          Date of Hearing:  April 16, 2007

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                 Loni Hancock, Chair
                    AB 1096 (DeVore) - As Amended:  March 27, 2007
           
          SUBJECT  :  California Environmental Quality Act (CEQA):   
          agricultural, affordable and urban infill housing projects.

           SUMMARY  :  Exempts from CEQA, until 2013, any agricultural  
          housing, affordable housing, or urban infill housing.
           
          EXISTING LAW  :

          1)CEQA requires lead agencies with the principal responsibility  
            for carrying out or approving a proposed project to prepare a  
            negative declaration, mitigated declaration, or environmental  
            impact report (EIR) for this action, unless the project is  
            exempt from CEQA (CEQA includes various statutory exemptions,  
            as well as categorical exemptions in the CEQA guidelines).   
            (AB 889 (Knox), Chapter 154, Statutes of 1972, as amended)

          2)Exempts specified residential housing projects which meet  
            extensive criteria established to ensure the project does not  
            have a significant effect on the environment.  The exemption  
            is available to:  
               a.     affordable agricultural housing projects not more  
                 than 45 units within a city, or 20 units within an  
                 agricultural zone, on a site not more than five acres in  
                 size; 
               b.     affordable urban housing projects not more than 100  
                 units on a site not more than five acres in size; and,
               c.     urban infill housing projects not more than 100  
                 units on a site not more than four acres in size which is  
                 within one-half mile of a major transit stop.  
                 (SB 1925 (Sher), Chapter 1039, Statutes of 2002)

          3)Requires local agencies to file notice of the SB 1925  
            exemptions with the Office of Planning and Research (OPR),  
            however, failure to file this notice does not affect the  
            validity of the project.  (AB 677 (Firebaugh), Chapter 677,  
            Statutes of 2003)

           THIS BILL  exempts from CEQA, until 2013, any agricultural  
          housing, affordable housing, or urban infill housing.








                                                                  AB 1096
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           FISCAL EFFECT  :  Unknown

           COMMENTS  :

           1)Background - General
           
            CEQA provides a process for evaluating the environmental  
            effects of applicable projects undertaken or approved by  
            public agencies.  If a project is not exempt from CEQA, an  
            initial study is prepared to determine whether the project may  
            have a significant effect on the environment.  If the initial  
            study shows that there would not be a significant effect on  
            the environment, the lead agency must prepare a negative  
            declaration.  If the initial study shows that the project may  
            have a significant effect on the environment, the lead agency  
            must prepare an EIR.

            Generally, an EIR must accurately describe the proposed  
            project, identify and analyze each significant environmental  
            impact expected to result from the proposed project, identify  
            mitigation measures to reduce those impacts to the extent  
            feasible, and evaluate a range of reasonable alternatives to  
            the proposed project.  Prior to approving any project that has  
            received environmental review, an agency must make certain  
            findings.  If mitigation measures are required or incorporated  
            into a project, the agency must adopt a reporting or  
            monitoring program to ensure compliance with those measures.

            If a mitigation measure would cause one or more significant  
            effects in addition to those that would be caused by the  
            proposed project, the effects of the mitigation measure must  
            be discussed but in less detail than the significant effects  
            of the proposed project.

           2)Background - Specific
           
            SB 1925, enacted in 2002, exempts from CEQA certain  
            residential projects providing affordable urban or  
            agricultural housing, or located on an infill site within an  
            urbanized area, and meeting specified unit and acreage  
            criteria.  The stated intent of the Legislature in enacting  
            those provisions included "creating a streamlined procedure  
            for agricultural employee housing, affordable housing, and  
            urban infill housing projects that do not have an adverse  








                                                                  AB 1096
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            effect on the environment."

            AB 677, enacted in 2003, requires a local agency or specified  
            person, when the local agency determines that a project is  
            exempt from CEQA for certain reasons, and it approves or  
            determines to carry out the project, to file notice of the  
            determination with the OPR.  According to OPR, it has received  
            just one notice of exemption pursuant to the SB 1925  
            provisions as of January 2007.  However, this does not provide  
            a complete picture of the use of exemptions, either under SB  
            1925 or existing categorical exemptions, for at least two  
            reasons.  First, failure to file a notice of exemption with  
            OPR does not affect the validity of the project, so there's  
            little incentive to file and, perhaps, a lack of recognition  
            of the need to file.  Second, notices of exemptions obtained  
            under other provisions of CEQA don't need to be filed with OPR  
            unless a state agency permit is required.  Purely local  
            projects file only with the appropriate County Clerk.

          3)Need for the Bill
             
            According to the author, "capital for the construction of much  
            needed agricultural employee housing and urban infill housing  
            projects should be expended on construction, rather than on  
            items that do not result in shelter.  For this reason, and  
            given the results of AB 677 have shown that?SB 1925 has not,  
            in fact, resulted in the appreciable construction of shelter,  
            it is the intent of the Legislature to declare a 'CEQA  
            holiday' (per this bill).  Nothing in this bill would prohibit  
            or impede the regular zoning and construction approval  
            authority of local permitting authorities."




           4)A More Modest Proposal?
           
             The author and the committee may wish to consider  amending  
            this bill to eliminate the new CEQA exemption and instead  
            require OPR to study and report on the conditions in  
            affordable housing development affecting the use of the  
            existing SB 1925 exemptions.

           5)Prior Legislation
           








                                                                  AB 1096
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            SB 832 (Perata, 2005) proposed to expand the SB 1925 urban  
            infill exemption from 100 units/four acres to 200-300 units/10  
            acres in a city over 200,000, if approved by the city council  
            (otherwise applicable minimum city size is 100,000).  SB 832  
            was held on the Assembly Floor and later amended to address an  
            unrelated subject.

           6)Related Legislation
           
          AB 872 (Davis), pending in this committee, exempts "urban infill  
          affordable housing" projects less than 300 units from CEQA.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Apartment Association

           Opposition 
           
          Sierra Club California
           

          Analysis Prepared by  :  Lawrence Lingbloom / NAT. RES. / (916)  
          319-2092