BILL ANALYSIS                                                                                                                                                                                                    



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          SENATE THIRD READING
          SB 375 (Steinberg)
          As Amended August 13, 2008
          Majority vote

           SENATE VOTE  :21-15  
           
           LOCAL GOVERNMENT    5-1         TRANSPORTATION      8-5         
           
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          |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                |
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          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.









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          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.








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          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  








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            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  








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            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  








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            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  








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               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  








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            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  








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            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  








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            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  








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          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  








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          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                                               


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