BILL ANALYSIS                                                                                                                                                                                                    



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          Date of Hearing:   August 19, 2008

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                             Anna Marie Caballero, Chair
                  SB 375 (Steinberg) - As Amended:  August 18, 2008

          SENATE VOTE  :  21-15
           
          SUBJECT  :  Transportation planning: travel demand models:  
          sustainable communities strategy: environmental review.

           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.

          2)Requires the California Air Resources Board (CARB), 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, including, but not  
            limited to, local transportation agencies.

          3)Requires the committee to transmit a report with its  
            recommendations to CARB no later than December 31, 2009, and  
            requires CARB 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.








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          5)Requires that, prior to setting the targets for a region, CARB  
            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 CARB 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 CARB to revise the targets every four years based  
            on changes in specified factors, and requires CARB 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.

          10)Specifies how the Metropolitan Transportation Commission  
            (MTC) and the Association of Bay Area Governments (ABAG) are  
            to collaborate in the preparation of the SCS.

          11)Specifies how the sub-regional councils of governments within  
            the Southern California Association of Governments (SCAG) will  
            be involved in the preparation of an SCS.

          12)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. 

          13)Requires each MPO to adopt a public participation plan for  
            development of the SCS and an APS, as specified.

          14)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  








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            and the target for the region established by CARB.

          15)Requires that, if an SCS is unable to reach the CARB target,  
            the MPO prepare an APS to the SCS, as a separate document from  
            the RTP, showing how those greenhouse gas emission targets  
            would be achieved through alternative development patterns,  
            infrastructure, or additional transportation measures or  
            policies, as specified.

          16)Requires that, prior to starting the public participation  
            process, the MPO submit a description to CARB of the technical  
            methodology it intends to use to estimate the greenhouse gas  
            emissions from its SCS and, if appropriate, its APS, and  
            requires CARB 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 greenhouse gas emissions,  
            and suggested remedies.

          17)Requires that, after adoption, an MPO submit an SCS or an  
            APS, if one has been adopted, to CARB for review, including  
            the quantification of the greenhouse gas emission reductions  
            the plan would achieve and a description of the technical  
            methodology used to obtain that result.

          18)Limits CARB review to acceptance or rejection of the MPO's  
            determination that the strategy submitted would, if  
            implemented, achieve the greenhouse gas emission reduction  
            targets, and require CARB to complete its review within 60  
            days.



          19)Requires that, if CARB determines that the strategy submitted  
            would not, if implemented, achieve the greenhouse gas emission  
            reduction targets, the MPO revise its strategy or adopt an  
            APS, if not previously adopted, and submit the strategy for  
            review.

          20)Requires, at a minimum, that the MPO must obtain CARB  
            acceptance that an APS would, if implemented, achieve the  
            greenhouse gas emission reduction targets established for that  
            region.

          21)States that:








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             a)   An SCS or APS does not regulate the use of land, nor  
               shall it be subject to any state approval other than the  
               CARB 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 shall be interpreted to limit  
               CARB'a authority under any other provision of law;

             e)   Nothing in this bill requires a city or county's land  
               use policies and regulations, including its general plan,  
               to be consistent with the RTP or an APS;

             f)   Nothing in this bill requires an MPO to approve an SCS  
               or APS that would be inconsistent with specified federal  
               regulations; 

             g)   Nothing in this bill relieves a public or private entity  
               or any person from compliance with any other local, state,  
               or federal law; and,

             h)   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 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.

          23)Creates a mechanism by which an MPO, or regional  
            transportation agency not within an MPO, that is currently on  
            a five-year RTP cycle may elect to adopt an RTP on a four-year  
            cycle in order to conform with the other provisions of this  
            bill.








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          24)Authorizes MPOs in specified Central Valley counties to work  
            together to develop and adopt multi-regional goals and prepare  
            multi-regional SCS.

          25)Adds areas designated for agricultural uses and agricultural  
            elements of general plans to the definition of "resource  
            areas."

          26)Defines "consistent" as having the same meaning as in a  
            specified provision of federal law, and define "internally  
            consistent" as meaning that the elements of the RTP must be  
            consistent with one another.

          27)Requires that, prior to and after the adoption of specified  
            forms, the 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.

          28)Changes the regional housing needs allocation (RHNA) cycle  
            from five years to eight years.

          29)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.

          30)Requires a local government that has failed to adopt a  
            housing element within 120 days of the statutory deadline for  
            doing so to complete the rezoning of sufficient RHNA sites no  
            later than three years and 120 days from the deadline to adopt  
            its housing element.

          31)Allows the deadline for completing required rezoning to be  
            extended by one year if the local government has completed  
            rezoning at densities sufficient to accommodate 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  








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            substantial evidence, makes specified findings.

          32)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.

          33)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).

          34)Provides that a local government that fails to complete its  
            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.

          35)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.

          36)Provides that, in an action brought against a local  








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            government for failing to complete rezoning, the burden of  
            proof shall be borne by the local government.

          37)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.

          38)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.

          39)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.

          40)States legislative intent that:

             a)   Housing planning be coordinated and integrated with the  
               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.

          41)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  








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            within 60 days or the earliest time consistent with public  
            hearing notice requirements in place at the time the action  
            was filed and the overall equities of the circumstances as  
            presented by all parties, 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  
            presented by all parties.

          42)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.

          43)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.

          44)Requires all local governments within an MPO in a  
            non-attainment region, other than those within the  
            jurisdiction of the San Diego Association of Governments  
            (SANDAG), to adopt the fifth revision of their housing  
            elements no later than 18 months after the adoption of the  
            first RTP to be adopted after September 30, 2010.

          45)Requires local governments within SANDAG to adopt their fifth  
            revision no later than five years from the fourth revision,  
            and their sixth revision no later than 18 months after the  
            adoption of the first RTP to be adopted after the fifth  
            revision due date.

          46)Requires local governments within an MPO that has elected to  
            move from a five-year to a four-year RTP cycle to adopt an  
            eight-year RHNA cycle and to adopt their next housing elements  
            18 months after the adoption of the first RTP after the  
            election.









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          47)Defines "planning period" as the time period for periodic  
            revision of a jurisdiction's housing element.

          48)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.

          49)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.

          50)Specifies that, for purposes of defining a transit priority  
            project, all parcels within the project have no more than 25%  
            of their area farther than  mile from a transit stop or  
            corridor and 


          that no more than 10% or 100 residential units, whichever is  
            less are less than  mile from a transit stop or corridor. 

          51)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 specified criteria and is declared to  
            be a sustainable communities project.

          52)Requires that in the initial study for a sustainable  
            communities environmental assessment or environmental impact  
            report (EIR) for a transit priority project that has met  








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            specified criteria, the lead agency shall determine whether  
            cumulative impacts have been both adequately addressed and  
            adequately mitigated in prior certified EIRs.

          53)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.

          54)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 CARB has  
            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 EIR, 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.

          55)Specifies that any EIR 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.

          56)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. 

          57)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.









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          58)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.

          59)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  
            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 EIR 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's July 17, 2007, analysis:

          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)CARB would require one-half of an additional personnel year  
            (PY) in 2007-08 and 2008-09 (annual costs of $72,500), and a  








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            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  :  

          1)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 the goals of AB 32.  Although greenhouse gas emissions  
            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.  SB 375 integrates and aligns planning for housing, land  
            use, transportation and greenhouse gas emissions for the 17  
            MPOs in the state through amendments to provisions in existing  
            law in three major areas.

           2)Regional Transportation Plans  .  SB 375 requires CARB, after  
            considering the recommendations from a broadly based advisory  
            committee, to provide targets to the MPOs for greenhouse gas  
            emission reductions for cars and light duty truck trips from  
            the regional land use and transportation system by July 1,  
            2010.  Each MPO, through significant involvement with the  
            public and its member cities and counties, will then prepare  
            an SCS as a component of its RTP that meets the target, if  
            feasible.  It must use transportation and air emission  
            modeling techniques consistent with guidelines prepared by CTC  
            to document the greenhouse gas emissions.  If the SCS does not  
            meet the target, the MPO must adopt an APS, as a separate  
            document from the RTP that does.  However, the MPO is not  
            required to implement the APS because it may include amounts  
            of transportation funding and changes to land use patterns  
            that go beyond what federal law allows.  CARB may accept or  








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            reject the MPO's determination that the SCS or APS meets the  
            target, but it does not approve the SCS or APS and it may not  
            suggest or require that the MPO make changes to either  
            document.  The adopted RTP must be an "internally consistent"  
            document, and current requirements that transportation funds  
            may only be spent on projects consistent with the RTP are  
            unchanged.  Projects already programmed in the Statewide  
            Transportation Improvement Program (STIP) through 2011, and  
            projects, programs, and categories of projects in any county  
            sales tax measure approved by the voters prior to December,  
            2010 are expressly exempted from the provisions of the bill.   
            Several safeguards in the bill are included to preserve local  
            government land use authority.

           3)Regional Housing Needs Assessments  .   Each MPO would be  
            required to update RHNA every eight years instead of every  
            five years as required by current law.  This will allow the  
            RHNA process to align with updates to the RTPs, which federal  
            law requires to be done every four years.  SB 375 amends the  
            HCD process for setting the regional housing allocations for  
            MPOs to encourage planning for sufficient housing for the  
            projected employment growth in a region.  The MPO's allocation  
            of RHNA shares to each of the cities and counties in its  
            jurisdiction will be required to be consistent with the SCS.    
            Local governments would be required to rezone sites to be  
            consistent with their updated housing elements within three  
            years (four years if the local government has completed 75% of  
            its rezoning by the third year and meets one of three  
            conditions: circumstances out of its control, lack of  
            infrastructure to serve the sites, or need for a major update  
            to its general plan to meet its RHNA allocation).  If a local  
            government does not update its housing element within 120 days  
            of the statutory deadline, it will be required to update its  
            RHNA every four years.

           4)California Environmental Quality Act  .  Residential and  
            mixed-use projects that are consistent with an SCS or APS that  
            CARB accepts as meeting its greenhouse gas target will not  
            have to be analyzed under CEQA for growth-inducing impacts or  
            impacts on global warming or on the regional transportation  
            network.  A lead agency would not be required to consider a  
            reduced density alternative because of car and light duty  
            truck trips.  A limited set of projects that meet a very  
            stringent series of environmental and other criteria would be  
            exempt from any CEQA analysis.  Limited CEQA review would be  








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            available to projects with a density of 20 dwelling units/acre  
            that are within 1/2 mile of current or planned high quality  
            transit service for any impacts that are sufficiently analyzed  
            and mitigated in the RTP's EIR.  Finally, qualifying local  
            governments would be able to establish their own mitigation  
            standards for local traffic impacts.


           5)Recent amendments  .  After long and intense negotiations  
            between the author and stakeholders, the current August 13,  
            2008 version of SB 375 incorporates numerous amendments that  
            address concerns raised by this Committee and various  
            stakeholder groups.  The application of the bill has been  
            limited to federally-designated metropolitan planning areas,  
            thus eliminating some small counties.  The Regional Targets  
            Advisory Committee has been created to consider various  
            technical issues and to recommend greenhouse gas emission  
            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 found in earlier iterations of  
            the bill, 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.  The document formerly referred to as  
            the "supplement" is now the APS.  This is intended to clarify  
            further that this document is not a part of the sustainable  
            communities strategy nor the RTP. New provisions require an  
            APS to include the most practicable policies for actually  
            achieving the greenhouse gas emission reduction targets.  An  
            MPO will be required to submit its SCS/APS to CARB for its  
            certification that the strategy, if implemented, would  
            actually achieve the emission targets.  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.  An important change eliminates certain descriptions  
            of habitat areas and substitutes the phrase "biological  
            resources" as defined in Appendix G of the CEQA Guidelines.   
            Changes have been made to the modeling provisions reflecting  
            the adoption of the new guidelines by the CTC.

          6)Concerning CEQA, the requirement that a local government would  








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            have to amend its general plan to be consistent with an SCS  
            before being eligible for CEQA-related benefits has been  
            deleted.  The CEQA provisions of the bill are now all  
            project-specific.  New provisions are added to CEQA that would  
            apply to residential or residential mixed use projects that  
            were consistent with a CARB 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.  These provisions address concerns  
            raised by this Committee last year that the CEQA provisions of  
            SB 375 were insufficiently "user-friendly."  The provisions of  
            CEQA in the March 24 version of this bill would now apply only  
            to projects that were consistent with a CARB certified SCS/APS  
            and that were "transit priority projects."  The sponsors of  
            this bill refer to the criteria a project would have to meet  
            in order to obtain full exemption as a sustainable communities  
            project as the "platinum standard" that is intentionally hard  
            to achieve.  However, with the addition of the new provisions,  
            less onerous alternatives now exist by which projects may  
            obtain significant, if only partial, relief from CEQA  
            obligations.

          7)Perhaps the biggest change to SB 375 made by the August 13  
            amendments is the incorporation of RHNA into the framework of  
            the bill.  The amendments align the RHNA and RTP processes 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 process.  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.  The proponents believe that, in  
            addition to the land use and 
          greenhouse gas reduction benefits, the net benefits of the bill  
            to the planning and construction of affordable housing are  
            significant.

           8)Proposed Amendments  .  The Committee and author may wish to  
            consider two other amendments to SB 375 to address subjects of  
            continued concern:









                                                                  SB 375
                                                                  Page  16

             a)   Government Code Sec. 65400(a)(2)(B).  As proposed to be  
               amended, the bill will require that "[p]rior to and after  
               adoption of the forms, the housing element portion of the  
               annual report shall 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."  The  
               first sentence of this paragraph states that, "[t]he  
               housing element portion of the annual report, as required  
               by this paragraph, shall be prepared through the use of  
               forms and definitions adopted by the Department of Housing  
               and Community Development pursuant to the rulemaking  
               provisions of the Administrative Procedure Act."  These  
               forms have never been adopted in the 13 years since this  
               provision became law.  The statute seems to be clear that  
               the existence of the forms is a necessary precondition to  
               the existence of the report, at least as far as the housing  
               element portion is concerned.  Consequently, no report can  
               exist prior to the existence of the forms, so the provision  
               in SB 375 positing that there could be a housing element  
               portion of the annual report in which the desired  
               information can be reported prior to the adoption of the  
               forms is absurd.  The Committee may wish to request that  
               the author delete the words "prior to and after adoption of  
               the forms" from SB 375.

             b)   Government Code Sec. 65583(c)(1)(A).  As proposed to be  
               amended, SB 375 requires a local government that has failed  
               to adopt a housing element within 120 days of the statutory  
               deadline for doing so to complete the rezoning of  
               sufficient RHNA sites no later than three years and 120  
               days from the deadline to adopt its housing element.  The  
               question arises as to why a delinquent jurisdiction is  
               being given an additional two months to complete its  
               rezoning.  The Committee may wish to ask the author to  
               delete the 120-day addendum and require the jurisdiction to  
               complete its rezoning within three years.

           9)Further Questions  .  The Committee may wish to ask the author  
            and proponents of SB 375 to address the following questions:

             a)   While the language of SB 375 has changed to no longer  
               explicitly state that transportation funding will be  
               withheld from MPOs that fail to adopt an SCS/APS, the  
               effect still seems to be the same.  In the past, the author  








                                                                  SB 375
                                                                  Page  17

               and sponsors of SB 375 have referred to this provision of  
               the bill as an "incentive," which appears to do violence to  
               the commonly accepted meaning of that word.  Does SB 375 in  
               fact create a penalty for jurisdictions that choose not to  
               follow its provisions?  Does this penalty consist of the  
               withholding of funds for which the jurisdiction is  
               currently eligible?  If an MPO creates an SCS/APS but fails  
               to meet its target, are there consequences in terms of  
               transportation funding?

             b)   This leads to a second area of concern.  SB 375 states  
               that an SCS or APS does not regulate the use of land, nor  
               shall it be subject to any state approval other than the  
               CARB action referred to above; that 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; and  
               that nothing in the 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.  However, while  
               fulfilling the provisions of SB 375 is technically  
               voluntary in many cases, it appears that the reality may be  
               different.  How can an MPO create a CARB-acceptable SCS/APS  
               without involving local general plans and other land use  
               policies?  How is an SCS going to work at the ground level?  
                Will the targets created by CARB carry the legal force of  
               regulations?  Will the prospect of the loss of funds for  
               locally significant transportation projects create a de  
               facto coercive pressure on local governments?  While one  
               hopes that the admirable example of the Sacramento Area  
               Council of Governments (SACOG) bringing jurisdictions  
               together to create a regional blueprint on a voluntary  
               basis can be replicated, what happens in areas where  
               inter-governmental relationships are not so relatively  
               benign?

             c)   Another issue that the Committee may also wish the  
               author and proponents of SB 375 to address is the impact  
               and benefit of the bill on rural jurisdictions.  While SB  
               375 has been amended to include agriculture in the  
               definition of resource areas and require MPOs to consider  
               so-called "rural sustainability" incentives, it is unclear  
               whether the bill adequately recognizes that the types of  
               actions that agricultural regions may be asked to take in  








                                                                  SB 375
                                                                  Page  18

               order to meet greenhouse gas emissions targets are very  
               different from those undertaken in more urbanized areas.   
               Will communities with farmers and ranchers who have been  
               engaged in carbon emission-reducing, environmentally  
               beneficial practices for years receive adequate credit for  
               these achievements?  Regarding SB 375's CEQA provisions, it  
               appears that it will be nearly impossible for many smaller  
               cities in agricultural counties to meet the definition of  
               "transit priority projects" or otherwise avail themselves  
               of the relief from CEQA obligations offered by this bill.

             d)   Finally, some even larger questions have arisen during  
               the evolution of SB 375.  Does the bill create significant  
               new levels of government, so that its efforts at  
               streamlining the planning process may have the unintended  
               effect of making it more unwieldy?  Is the timeline for  
               achievement of the bill's goals too compressed for many  
               local governments?  Should the means of achieving the goals  
               of the bill be more of an iterative, ongoing process with  
               extensive give-and-take between the policy makers in  
               Sacramento and the local jurisdictions doing the work of  
               implementing the policies on the ground on what works and  
               what doesn't?       

           REGISTERED SUPPORT / OPPOSITION  :  

          Support

           CA League of Conservation Voters [CO-SPONSOR]
          Natural Resources Defense Council [CO-SPONSOR]
          Alpine Meadows
          American Farmland Trust
          American Lung Association of CA
          American Planning Association, CA Chapter
          Association of Bay Area Governments


           Support (continued)
           
          Audubon CA
          Bay Area Council (in concept)
          Bay Area Air Quality Management District
          Breathe CA
          CA Association of Environmental Professionals (if amended)
          CA Association of Local Area Formation Commissions








                                                                  SB 375
                                                                  Page  19

          CA Building Industry Association
          CA Council of Land Trusts
          CA Interfaith Power and Light
          CA League of Conservation Voters
          CA Major Builders Council
          CA Nurses Association
          CA Professional Firefighters
          CA State Association of Counties
          Cities of Citrus Heights, Folsom, Huntington Beach, Roseville,  
          and Sacramento
          Coalition for Clean Air
          Congress for a New Urbanism
          County of Los Angeles
          County of Napa (with amendments)
          Defenders of Wildlife
          Endangered Habitats League
          Environment CA
          Environmental Defense Fund
          Environmental Entrepreneurs
          Ford Motor Company
          Fulcrum Properties
          Health Officers Association of CA
          Homewood Mountain Resort
          JMA Ventures
          League of CA Cities
          League of Women Voters
          Los Angeles Mayor Antonio Villaraigosa
          Merced/Mariposa County Asthma Coalition
          Metropolitan Transportation Commission of San Francisco Bay Area
          Moller International
          Natural Resources Defense Council
          New Voice of Business
          Non Profit Housing Association of Northern California
          Pacific Gas and Electric Company
          Planning and Conservation League
          Sacramento Area Fire Fighters, Local 522
          Sacramento Metropolitan Chamber of Commerce
          Sacramento Regional Transit District
          San Francisco Mayor Gavin Newsom
          Santa Cruz County Regional Transportation Commission


           Support (continued)
           
          Sempra Energy








                                                                  SB 375
                                                                  Page  20

          Silicon Valley Leadership Group
          South Coast Air Quality Management District
          State Association of Electrical Workers
          State Building and Construction Trades Council
          State Pipe Trades Council
          Toyota (in concept)
          Transportation and Land Use Coalition
          Trust for Public Land
          Western State Council of Sheet Metal Workers
           
          Opposition
           
          Associated General Contractors of CA
          Automobile Club of Southern CA
          CA Association of Realtors
          CA Business Properties Association
          CA Chamber of Commerce
          CA Contract Cities Association
          CA Hotel & Lodging Association
          CA Manufacturers & Technology Association
          CA Retailers Association
          CA Association of Councils of Governments (unless amended) 
          Consulting Engineers & Land Surveyors of CA
          Contra Costa Transportation Authority
          County of Orange
          Department of Finance
          Howard Jarvis Taxpayers Association
          Inland Empire Transportation Coalition
          Kern County Board of Supervisors
          Merced County Association of Governments
          Orange County Transportation Authority
          Orange County Business Council
          Placer County Transportation Planning Agency
          Resource Landowners Coalition
                  San Bernardino Local Agency Formation Commission
          San Diego Association of Governments
          San Joaquin Valley Regional Policy Council
          Self-Help Counties Coalition
          Sonoma County Transportation Authority
          Southwest CA Legislative Council
          Transportation Agency for Monterey County
          Transportation CA
          Ventura Council of Governments
          Western Riverside Council of Governments









                                                                  SB 375
                                                                  Page  21

           Analysis Prepared by  :    J. Stacey Sullivan / L. GOV. / (916)  
          319-3958