BILL ANALYSIS SB 375 Page 1 SENATE THIRD READING SB 375 (Steinberg) As Amended August 22, 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 LOCAL GOVERNMENT 5-1 ----------------------------------------------------------------- |Ayes:|Leno, Caballero, Davis, |Ayes:|Caballero, De La Torre, | | |DeSaulnier, Furutani, | |Hancock, Saldana, | | |Huffman, Karnette, | |DeSaulnier | | |Krekorian, Lieu, Ma, Nava | | | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Walters, Emmerson, La |Nays:|Smyth | | |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)States legislative intent that future projects, other than those defined in this bill, that are consistent with a sustainable communities strategy or an alternative planning strategy that has been accepted by the State Air Resources Board may, to the extent authorized by provisions of the California Environmental Quality Act (CEQA), tier from the analysis in an environmental impact report prepared by an metropolitan planning organization of the impacts on global warming from the greenhouse gas emissions of cars and light trucks. 3)Requires the California Transportation Commission (CTC), in consultation with the California Air Resources Board (ARB) and the Department of Transportation (Caltrans), to maintain travel demand models used in the development of RTPs by federally designated MPOs. 4)Requires 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, including, but not limited to, local transportation agencies. 5)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. 6)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. 7)Requires that, prior to setting the targets for a region, ARB exchange technical information with Caltrans, the MPO, and the affected air district, which may include a recommendation for a target for the region. SB 375 Page 3 8)Requires the MPO to hold at least one public workshop within the region after receipt of the report from the committee. 9)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. 10)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. 11)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. 12)Specifies how the Metropolitan Transportation Commission (MTC) and the Association of Bay Area Governments (ABAG) are to collaborate in the preparation of the SCS. 13)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. 14)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. 15)Requires each MPO to adopt a public participation plan for development of the SCS and an APS, as specified. 16)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. 17)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 targets would be achieved through alternative development patterns, SB 375 Page 4 infrastructure, or additional transportation measures or policies, as specified. 18)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 greenhouse gas emissions 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 greenhouse gas emissions, and suggested remedies. 19)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 greenhouse gas emission reductions the plan would achieve and a description of the technical methodology used to obtain that result. 20)Limits ARB 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 ARB to complete its review within 60 days. 21)Requires that, if ARB 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. 22)Requires, at a minimum, that the MPO must obtain ARB acceptance that an APS would, if implemented, achieve the greenhouse gas emission reduction targets established for that region. 23)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; SB 375 Page 5 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 ARB's 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. 24)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. 25)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. 26)Authorizes MPOs in specified Central Valley counties to work together to develop and adopt multi-regional goals and prepare multi-regional SCS. 27)Adds areas designated for agricultural uses and agricultural elements of general plans to the definition of "resource areas." SB 375 Page 6 28)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. 29)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. 30)Changes the regional housing needs allocation (RHNA) cycle from five years to eight years. 31)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. 32)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. 33)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 substantial evidence, makes specified findings. 34)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 SB 375 Page 7 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. 35)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). 36)Provides that a local government that fails to complete its rezoning may disapprove a housing development 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. 37)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. 38)Provides that, in an action brought against a local government for failing to complete rezoning, the burden of proof shall be borne by the local government. 39)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 SB 375 Page 8 households at monthly housing costs with an affordable housing cost or affordable rent, as defined, for the period required by the applicable financing. 40)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. 41)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. 42)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. 43)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 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 SB 375 Page 9 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. 44)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. 45)Requires a local government that does not adopt a housing element within 120 days of the statutory deadline for the adoption of the housing element to revise its housing element as appropriate, but not less than every four years, rather than eight years. 46)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. 47)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. 48)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. 49)Defines "planning period" as the time period for periodic revision of a jurisdiction's housing element. 50)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 ARB has accepted an MPO's determination that the SCS or APS would, if implemented, SB 375 Page 10 achieve the greenhouse gas emission reduction targets. 51)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) provides 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. 52)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 one-half mile from a transit stop or corridor and that no more than 10% or 100 residential units, whichever is less are less than one-half mile from a transit stop or corridor. 53)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 community's project. 54)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 specified criteria, the lead agency shall determine whether cumulative impacts have been both adequately addressed and adequately mitigated in prior certified EIRs. 55)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. 56)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 accepted the MPO's determination that the SCS or the APS SB 375 Page 11 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. 57)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. 58)Defines "regional transportation network" as all existing and proposed transportation improvements, including the state transportation system, 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. 59)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. 60)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. 61)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. FISCAL EFFECT : According to the Assembly Appropriations Committee: 1)Substantial costs to MPOs to incorporate sustainable community strategies into their regional transportation plans. MPOs SB 375 Page 12 have authority to use federal funds to cover planning costs, as well as to charge member local governments to cover costs, but total costs and composition of funding sources are unspecified. 2)Unknown net cost impact on cities. Aside from potential charges from MPOs, cities would also face higher costs related to: a) the increased complexity of general plan housing elements; b) the requirement that cities rezone land within three years after the housing element is adopted; and, c) the likelihood that they will receive additional requests for amendments to their general plans to accommodate developments consistent with sustainable communities strategies (costs for granting these requests can be charged to the developer). Offsetting these costs is the shift from a five-year to eight-year regional housing needs planning cycle, which implies less frequent updates to housing elements. The bill states that if the Commission on State Mandate determines that the bill contains local costs mandated by the state, reimbursements will be provided. 3)Preliminary estimates from ARB indicate that it will incur one-time costs of $740,000 and ongoing costs of about $440,000 relating to setting regional greenhouse gas emission reduction targets for the auto and light truck sector, and reviewing MPO's sustainable communities strategies. Costs are for two new positions ($340,000 annually) and contracts with the University of California for technical assistance ($400,000 one-time and $100,000 ongoing). 4)CTC would incur one-time costs about $200,000 for the adoption of modeling guidelines, and potential minor ongoing costs associated with updating guidelines and reviewing regional models. 5)The Office of Planning and Research (OPR) would incur one-time costs of about $86,000 to update general plan and CEQA guidelines. 6)HCD, which is responsible for reviewing housing elements of local general plans, would face both costs and savings under the bill, which it believes would be largely offsetting. Increased complexity of local housing elements would result in added time and expense associated with each plan review. However, this will be offset by less-frequent revisions (from SB 375 Page 13 once every five years to once every eight years) of local general plans' housing elements, and a consequent reduction in the number of reviews that it must perform each year. 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 ARBon 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. This bill 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 . This bill requires ARB, 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. ARB may accept or 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 SB 375 Page 14 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. This bill 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 ARB 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 available to projects with a density of 20 dwelling units/acre that are within one-half 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 SB 375 Page 15 mitigation standards for local traffic impacts. Analysis Prepared by : J. Stacey Sullivan / L. GOV. / (916) 319-3958 FN: 0007495