BILL ANALYSIS Ó AB 931 Page 1 Date of Hearing: April 25, 2011 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Wesley Chesbro, Chair AB 931 (Dickinson) - As Amended: April 15, 2011 SUBJECT : Environment: CEQA exemption: housing projects SUMMARY : Increases the maximum retail use from 15 to 25 percent in the definition of "residential" for purposes of an existing California Environmental Quality Act (CEQA) exemption for infill housing projects meeting specified criteria. EXISTING LAW : 1)CEQA requires lead agencies with the principal responsibility for carrying out or approving a proposed project to prepare a negative declaration, mitigated declaration, or environmental impact report (EIR) for this action, unless the project is exempt from CEQA (CEQA includes various statutory exemptions, as well as categorical exemptions in the CEQA guidelines). 2)Exempts from CEQA specified residential housing projects which meet criteria established to ensure the project does not have a significant effect on the environment (SB 1925 (Sher), Chapter 1039, Statutes of 2002). The SB 1925 exemptions are available to: a) affordable agricultural housing projects not more than 45 units within a city, or 20 units within an agricultural zone, on a site not more than five acres in size; b) affordable urban housing projects not more than 100 units on a site not more than five acres in size; and, c) urban infill housing projects not more than 100 units on a site not more than four acres in size which is within one-half mile of a major transit stop. Among other criteria, retail uses may not exceed 15 percent of the total floor area of these projects. 3)Requires metropolitan planning organizations to include a sustainable communities strategy (SCS), as defined, in their regional transportation plans, or an alternative planning strategy (APS), for the purpose of reducing GHG emissions, AB 931 Page 2 aligns planning for transportation and housing, and creates specified incentives for the implementation of the strategies (SB 375 (Steinberg), Chapter 728, Statutes of 2008). Specifically, as it relates to the provisions of this bill, SB 375 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 approved SCS or APS, 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. FISCAL EFFECT : Unknown COMMENTS : 1)CEQA overview. CEQA provides a process for evaluating the environmental effects of applicable projects undertaken or approved by public agencies. If a project is not exempt from CEQA, an initial study is prepared to determine whether the project may have a significant effect on the environment. If the initial study shows that there would not be a significant effect on the environment, the lead agency must prepare a negative declaration. If the initial study shows that the project may have a significant effect on the environment, the lead agency must prepare an EIR. a) Generally, an EIR must accurately describe the proposed project, identify and analyze each significant environmental impact expected to result from the proposed project, identify mitigation measures to reduce those impacts to the extent feasible, and evaluate a range of reasonable alternatives to the proposed project. Prior to approving any project that has received environmental review, an agency must make certain findings. If mitigation measures are required or incorporated into a project, the agency must adopt a reporting or monitoring program to ensure compliance with those measures. 2)Existing housing exemptions. SB 1925, enacted in 2002, AB 931 Page 3 exempts from CEQA certain residential projects providing affordable urban or agricultural housing, or located on an infill site within an urbanized area, and meeting specified unit and acreage criteria. The stated intent of the Legislature in enacting those provisions included "creating a streamlined procedure for agricultural employee housing, affordable housing, and urban infill housing projects that do not have an adverse effect on the environment." a) SB 1925 defines "infill site" as a site in an urbanized area that meets either of the following criteria: b) Immediately adjacent parcels are developed with qualified urban uses or at least 75 percent of the perimeter of the site adjoins parcels that are developed with qualified urban uses and the remaining 25 percent of the site adjoins parcels that have been previously developed for qualified urban uses, and the site itself has not been developed for urban uses and no parcel within the site has been created within the past 10 years. c) The site itself has been previously developed for qualified urban uses. 3)Double referral. This bill is double-referred to the Housing and Community Development Committee. REGISTERED SUPPORT / OPPOSITION : Support : None on file Opposition : None on file Analysis Prepared by : Lawrence Lingbloom / NAT. RES. / (916) 319-2092