BILL ANALYSIS SB 375 Page 1 SENATE THIRD READING SB 375 (Steinberg) As Amended August 13, 2008 Majority vote SENATE VOTE :21-15 LOCAL GOVERNMENT 5-1 TRANSPORTATION 8-5 ----------------------------------------------------------------- |Ayes:|Caballero, De La Torre, |Ayes:|Nava, Carter, DeSaulnier, | | |Lieber, Saldana, Soto | |Galgiani, | | | | |Karnette, Portantino, | | | | |Ruskin, Solorio | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Smyth |Nays:|Duvall, Garrick, Horton, | | | | |Huff, Soto | ----------------------------------------------------------------- APPROPRIATIONS 11-4 ----------------------------------------------------------------- |Ayes:|Leno, Caballero, Davis, | | | | |DeSaulnier, Furutani, | | | | |Huffman, Karnette, | | | | |Krekorian, Lieu, Ma, Nava | | | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Walters, Emmerson, La | | | | |Malfa, Nakanishi | | | ----------------------------------------------------------------- SUMMARY : Requires metropolitan planning organizations (MPOs) to include sustainable communities strategies (SCS), as defined, in their regional transportation plans (RTPs) for the purpose of reducing greenhouse gas emissions, aligns planning for transportation and housing, and creates specified incentives for the implementation of the strategies. Specifically, this bill : 1)Makes findings and declarations concerning the need to make significant changes in land use and transportation policy in order to meet the greenhouse gas reduction goals established by AB 32 (Nunez & Pavley), Chapter 444, Statutes of 2006. SB 375 Page 2 2)Requires the California Air Resources Board (ARB), no later than January 31, 2009, to appoint a Regional Targets Advisory Committee (committee) to recommend factors to be considered and methodologies to be used for setting greenhouse gas emission reduction targets for the affected regions, and specifies the composition of the committee. 3)Requires the committee to transmit a report with its recommendations to ARB no later than December 31, 2009, and requires ARB to consider the report prior to setting targets. 4)Provides that, in recommending factors to be considered and methodologies to be used, the committee may consider any relevant issues, including, but not limited to, data needs, modeling techniques, growth forecasts, the impacts of regional jobs-housing balance on interregional travel and greenhouse gas emissions, economic and demographic trends, the magnitude of greenhouse gas reduction benefits from a variety of land use and transportation strategies, and appropriate methods to describe regional targets and to monitor performance in attaining those targets. 5)Requires that, prior to setting the targets for a region, ARB exchange technical information with the MPO and the affected air district, which may include a recommendation for a target for the region. 6)Requires the MPO to hold at least one public workshop within the region after receipt of the report from the committee. 7)Requires ARB to update the regional greenhouse gas emission reduction targets every eight years consistent with each MPO's timeframe for updating its RTP under federal law until 2050. 8)Authorizes ARB to revise the targets every four years based on changes in specified factors, and requires ARB to exchange technical information with the MPOs, local governments, and affected air districts and engage in a consultative process with public and private stakeholders prior to updating these targets. 9)Requires the RTP for specified regions to include an SCS, as specified, designed to achieve certain goals for the reduction of greenhouse gas emissions from automobiles and light trucks in a region. SB 375 Page 3 10)Requires each MPO to conduct at least two informational meetings in each county within the region for members of the board of supervisors and city councils on the SCS and alternative planning strategy (APS), if any, subject to specified conditions and exceptions. 11)Requires each MPO to adopt a public participation plan for development of the SCS and an APS, as specified. 12)Requires an MPO to quantify the reduction in greenhouse gas emissions projected to be achieved by the SCS and set forth the difference, if any, between the amount of that reduction and the target for the region established by ARB. 13)Requires that, if an SCS is unable to reach the ARB target, the MPO prepare an APS to the SCS, as a separate document from the RTP, showing how those greenhouse gas emission (GHG) targets would be achieved through alternative development patterns, infrastructure, or additional transportation measures or policies, as specified. 14)Requires that, prior to starting the public participation process, the MPO submit a description to ARB of the technical methodology it intends to use to estimate the GHG from its SCS and, if appropriate, its APS, and requires ARB to respond to the MPO in a timely manner with written comments about the technical methodology, including specifically describing any aspects of the methodology that will not yield accurate estimates of GHGs, and suggested remedies. 15)Requires that, after adoption, an MPO submit an SCS or an APS, if one has been adopted, to ARB for review, including the quantification of the GHG reductions the plan would achieve and a description of the technical methodology used to obtain that result. 16)Limits ARB review to acceptance or rejection of the MPO's determination that the strategy submitted would, if implemented, achieve the GHG reduction targets, and require ARB to complete its review within 60 days. 17)Requires that, if ARB determines that the strategy submitted would not, if implemented, achieve the GHG reduction targets, the MPO revise its strategy or adopt an APS, if not previously SB 375 Page 4 adopted, and submit the strategy for review. 18)Requires, at a minimum, that the MPO must obtain ARB acceptance that an APS would, if implemented, achieve the GHG reduction targets established for that region. 19)States that: a) An SCS or APS does not regulate the use of land, nor shall it be subject to any state approval other than the ARB action referred to above; b) Nothing in an SCS or APS shall be interpreted as superseding or interfering with the exercise of the land use authority of cities and counties within the region; c) Nothing in this bill shall be interpreted to authorize the abrogation of any vested right whether created by statute or by common law; d) Nothing in this bill requires a city's or county's land use policies and regulations, including its general plan, to be consistent with the RTP or an APS; e) Nothing in this bill requires an MPO to approve an SCS or APS that would be inconsistent with specified federal regulations; and, f) Nothing in this bill relieves a public or private entity or any person from compliance with any other local, state, or federal law. 20)Requires certain transportation planning and programming activities to be consistent with the SCS in order to obtain funding, but states that certain transportation projects programmed for funding on or before December 31, 2011, are not required to be consistent with the SCS. 21)Specifies that nothing in this bill requires a transportation sales tax authority, as defined, to change the funding allocations approved by the voters for categories of transportation projects in a sales tax measure adopted prior to December 31, 2010. 22)Requires that, prior to the adoption of specified forms, the SB 375 Page 5 housing element portion of the annual progress report of a planning agency on implementation of its general plans must include a section that describes the actions taken by the local government towards completion of the programs and status of the local government's compliance with the deadlines in its housing element. 23)Changes the regional housing needs allocation (RHNA) cycle from five years to eight years. 24)Requires that rezoning of sites needed to meet RHNA requirements, including adoption of minimum density and development standards, shall be completed no later than three years after either the date the housing element is adopted or the date that is 90 days after receipt of comments from the Department of Housing and Community Development (HCD), whichever is earlier, unless this deadline is extended, as specified. 25)Allows the deadline for completing required rezoning to be extended by one year if the local government has completed the rezoning of at least 75% of the sites for each income group and if the legislative body at the conclusion of a public hearing determines, based upon substantial evidence, makes specified findings. 26)Prohibits a local government that fails to complete the rezoning by the deadline, as it may be extended, from disapproving a housing development project, or requiring a conditional use permit, planned unit development permit, or other locally imposed discretionary permit or condition that would render the project infeasible, if the housing development project is proposed to be located on a site required to be rezoned pursuant to the program required by that subparagraph and complies with applicable, objective general plan and zoning standards and criteria, including design review standards, described in the program required by that subparagraph. 27)Provides that any such subdivision of sites shall be subject to the Subdivision Map Act but shall not constitute a "project" for purposes of the California Environmental Quality Act (CEQA). 28)Provides that a local government that fails to complete its SB 375 Page 6 rezoning may disapprove a housing development described in paragraph only if it makes written findings supported by substantial evidence on the record that the housing development project would have a specific, adverse impact upon the public health or safety unless the project is disapproved or approved upon the condition that the project be developed at a lower density, and that there is no feasible method to satisfactorily mitigate or avoid the adverse impact other than the disapproval of the housing development project or the approval of the project upon the condition that it be developed at a lower density. 29)Permits the applicant or any interested person to bring an action to enforce these provisions, and specifies that if a court finds that the local agency disapproved a project or conditioned its approval in violation of these provisions, the court shall issue an order or judgment compelling compliance within 60 days, retain jurisdiction to ensure that its order or judgment is carried out, and, if it determines that its order or judgment has not been carried out within 60 days, the court may issue further orders to ensure that the purposes and policies of this paragraph are fulfilled. 30)Defines "housing development project" as a project to construct residential units if the project developer provides sufficient legal commitments to the appropriate local agency to ensure the continued availability and use of at least 49% of the housing units for very low-, low-, and moderate-income households at monthly housing costs with an affordable housing cost or affordable rent, as defined, for the period required by the applicable financing. 31)Specifies that rental units shall be affordable for at least 55 years, and that ownership units shall be subject to resale restrictions or equity sharing requirements for at least 30 years. 32)Requires that a council of governments (COG) provide HCD with data assumptions about the relationship between jobs and housing in the region, if available, to assist HCD in determining the region's RHNA. 33)States legislative intent that: a) Housing planning be coordinated and integrated with the SB 375 Page 7 RTP; b) To achieve this goal, the allocation plan shall allocate housing units within the region consistent with the development pattern included in the SCS; c) The final allocation plan shall ensure that the total regional housing need, by income category, is maintained, and that each jurisdiction in the region receive an allocation of units for low- and very low-income households; and, d) The resolution approving the final housing need allocation plan shall demonstrate that the plan is consistent with the SCS in the RTP. 34)Directs a court that finds that a city, county, or city and county has failed to complete the required rezoning, as that deadline may be extended, to issue an order or judgment compelling the local government to complete the rezoning within 60 days or the earliest time consistent with public hearing notice requirements and the overall equities of the circumstances, to retain jurisdiction to ensure that its order or judgment is carried out, and, if the court determines that its order or judgment is not carried out, to issue further orders, including ordering that any required rezoning be completed within 60 days or the earliest time consistent with public hearing notice requirements, and may impose sanctions on the city, county, or city and county, taking into account the overall equities of the circumstances. 35)Permits any interested person to bring an action to compel compliance with the specified deadlines and requirements, and specify that in any such action, the city, county, or city and county shall bear the burden of proof. 36)Requires a local government that does not adopt a housing element within 90 days after receipt of comments from HCD on its draft housing element, or the date the legislative body takes action subsequent to HCD determining that the draft housing element does not substantially comply, whichever is earlier, to revise its housing element as appropriate, but not less than every four years, rather than eight years. 37)Specifies that all housing element revisions after the fourth SB 375 Page 8 revision shall be completed in not less than eight year intervals in conjunction with the development of RTPs. 38)Specifies that, with one exception, the Implementation of the Sustainable Communities Strategy chapter of CEQA applies only to a transit priority project that is consistent with the general use designation, density, building intensity, and applicable policies specified for the project area in either an SCS or an APS, for which CARB has accepted an MPO's determination that the SCS or APS would, if implemented, achieve the greenhouse gas emission reduction targets. 39)Requires a transit priority project to: a) Contain at least 50% residential use, based on total building square footage and, if the project contains between 26% and 50% nonresidential uses, a floor area ratio of not less than 0.75; b) Provide a minimum net density of at least 20 dwelling units per acre; and, c) Be within one-half mile of an existing or planned major transit stop, as defined,, or high-quality transit corridor, as defined, as set forth in the applicable regional transportation plan. 40)Provides that no additional review is required pursuant to CEQA for a transit priority project if the legislative body of a local jurisdiction finds, after conducting a public hearing, that the project meets certain criteria and is declared to be a sustainable communities project. 41)Authorizes the legislative body of a local jurisdiction to adopt traffic mitigation measures for future residential projects that meet specified criteria, and exempts such a residential project seeking a land use approval from compliance with additional measures for traffic impacts, if the local jurisdiction has adopted those traffic mitigation measures. 42)Specifies that, if a residential or mixed-use residential project is consistent with the use designation, density, building intensity, and applicable policies specified for the project area in either an SCS or an APS, for which ARB has SB 375 Page 9 accepted the MPO's determination that the SCS or the APS would, if implemented, achieve the greenhouse gas emission reduction targets and if the project incorporates the mitigation measures required by an applicable prior environmental document, any findings or other determinations for an exemption, a negative declaration, a mitigated negative declaration, an environmental impact report, or addenda prepared or adopted for the project pursuant to CEQA shall not be required to reference, describe, or discuss growth inducing impacts or any project specific or cumulative impacts from cars and light-duty truck trips generated by the project on global warming or the regional transportation network. 43)Specifies that any environmental impact report prepared for a project described above shall not be required to reference, describe, or discuss a reduced residential density alternative to address the effects of car and light-duty truck trips generated by the project. 44)Defines "regional transportation network" as all existing and proposed transportation improvements that were included in the transportation and air quality conformity modeling, including congestion modeling, for the final RTP adopted by the MPO, but shall not include local streets and roads. 45)Specifies that nothing in the foregoing relieves any project from a requirement to comply with any conditions, exactions, or fees for the mitigation of the project's impacts on the regional transportation network or local streets and roads. 46)Defines a "residential or mixed-use residential project" as a project where at least 75% of the total building square footage of the project consists of residential use or a project that is a transit priority project. 47)States that, if the Commission on State Mandates determines that this bill contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant applicable sections of the Government Code. EXISTING LAW : 1)Requires certain transportation planning activities by the California Department of Transportation and by designated SB 375 Page 10 regional transportation planning agencies, including development of an RTP. 2)Authorizes CTC, in cooperation with the regional agencies, to prescribe study areas for analysis and evaluation. 3)Requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. 4)Requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. FISCAL EFFECT : According to the Assembly Appropriations Committee of the March 24, 2008, version of this bill: 1)CTC would incur one-time costs of up to $200,000 in 2007-08 for the adoption of modeling guidelines. Potential minor ongoing costs associated with updated guidelines and reviews of regional models. 2)ARB would require one-half of an additional personnel year (PY) in 2007-08 and 2008-09 (annual costs of $72,500), and a full additional PY thereafter (annual cost of $145,000) for the workload associated with this bill. 3)The requirement that regional transportation planning agencies develop enhanced travel demand models and preferred growth scenarios may result in a reimbursable state mandate, potentially resulting in state costs exceeding several millions of dollars. COMMENTS : According to the author, this bill provides a mechanism for reducing greenhouse gases from the single largest sector of emissions, cars and light trucks. The environmental organizations sponsoring this legislation maintain that changes in land use and transportation policy must be made to achieve SB 375 Page 11 the goals of AB 32. Although GHGs can be reduced by producing more fuel efficient cars and using low carbon fuel, reductions in vehicle miles traveled will also be necessary. Thus, the travel demand models used by MPOs to develop RTPs must assess the effects of land use decisions, transit service, and economic incentives. According to the author, this bill will help implement AB 32 by amending programs that are beyond the current authority of ARB. It creates new provisions for the preparation of sustainable communities strategies as part of RPTs, aligns the RTP and RHNA processes to achieve integrated regional land use strategies, and creates new provisions in CEQA to encourage the implementation of plans for greenhouse gas reductions at the local level. After long and intense negotiations between the author and stakeholders, this bill has been amended to do the following. The application of the bill has been limited to federally-designated metropolitan planning areas, thus eliminating some small counties. A Regional Targets GHG reduction targets for the regions. A new provision makes consideration of local general plans explicit in the development of a sustainable communities strategy. The planning priority provisions, which have been criticized as creating "concentric circles," have been eliminated. The regions will "gather and consider" information about, rather than identify, important resources and farmlands. A provision has been added requiring the first "analysis year" (normally about eight years out) of the sustainable communities strategy be consistent with RHNA. The document formerly referred to as the "supplement" is now called the "alternative planning strategy". This is intended to clarify further that this document is not a part of the sustainable communities strategy nor the RTP. There are new provisions that require APS to include the most practicable policies for actually achieving the GHG reduction targets. There is a new provision which requires a region to submit its SCS/APS to ARB for its certification that the strategy, if implemented, would actually achieve the targets. If ARB disapproves, the region must revise the strategy. A new rural sustainability element is added to the RTP authorizing regions to consider financial incentives for jurisdictions that have resource areas or farmlands and contribute to GHG reductions by encouraging growth within the urban footprint. The definitions of resource areas and farmlands have been modified. The most important change eliminates certain descriptions of habitat areas and substitutes the phrase "biological resources" as defined in SB 375 Page 12 Appendix G of the CEQA Guidelines. Changes have been made to the modeling provisions reflecting the adoption of the new guidelines by the CTC. In the areas of RHNA and CEQA, this bill aligns the RHNA and RTP programs by requiring that the housing element be updated every eight years rather than its current five-year cycle. A new statutory deadline for completing rezoning would be added to the RHNA program. If a local government failed to rezone within the new deadline, remedies would be created for affordable housing development projects and for a writ of mandate to compel rezoning. New provisions would be added to CEQA that would apply to residential or residential mixed use projects that were consistent with an ARB certified SCS/APS. These projects would not have to analyze their growth inducing impacts or their impacts on global warming or on the regional transportation network. A lead agency would not be required to address a reduced density alternative because of car and light duty truck trips. The provisions of CEQA in the March 24 version of this bill would now apply only to projects that were consistent with an ARB certified SCS/APS and that were "transit priority projects." Analysis Prepared by : J. Stacey Sullivan / L. GOV. / (916) 319-3958 FN: 0006937