BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                AB 931
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2011-2012 Regular Session
                                           
           BILL NO:    AB 931
           AUTHOR:     Dickinson
           AMENDED:    September 7, 2011
           FISCAL:     Yes                             HEARING DATE:    
           September 8, 2011
           URGENCY:    No                              CONSULTANT:        
           Randy Pestor
            
           SUBJECT  :    CALIFORNIA ENVIRONMENTAL QUALITY ACT

            SUMMARY  :    
           
            Existing law  under the California Environmental Quality Act 
           (CEQA):

           1) Requires lead agencies with the principal responsibility 
              for carrying out or approving a proposed discretionary 
              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).  (Public 
              Resources Code §21000 et seq.).  A statutory exemption for 
              a residential project on an infill site under certain 
              conditions defines "residential" to be either:  a) 
              residential units only; or b) residential units and 
              primarily neighborhood-serving goods, services, or retail 
              uses that do not exceed 15% of the total project floor 
              area.  (§21159.24).

           2) Allows a "transit priority project" to be subject to 
              certain environmental review procedures pursuant to SB 375 
              (Steinberg) Chapter 728, Statutes of 2008.  (§21155.2).

            This bill, as approved by the Committee July 6, 2011 (April 
           15, 2011 version)  revises the residential infill exemption by 
           increasing the amount of allowable neighborhood-serving goods, 
           services, or retail uses from 15% to 25% of the building 
           square footage.









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           September 2, 2011, and September 7, 2011, amendments  :  a) 
           allow a "transit proximity project" (as defined) to be subject 
           to certain environmental review procedures contained in SB 375 
           until adoption of a sustainable communities strategy, and 
           sunsets January 1, 2015; b) allow an "employment priority 
           project" (as defined) to also be subject to those 
           environmental review procedures; and c) allow an "employment 
           priority project" to also be subject to those environmental 
           review procedures until adoption of a sustainable communities 
           strategy, and sunsets January 1, 2015.

            COMMENTS  :

            1) Purpose of Bill  .  According to the author, AB 931 "seeks to 
              increase the amount of commercial in a development seeking 
              Ýa residential infill exemption].  Existing law allows only 
              15% of a project to be commercial, based upon the total 
              floor space.  This will increase that limit to 25%."  The 
              most recent amendments also revise certain environmental 
              review procedures contained in SB 375 (Steinberg) Chapter 
              728, Statutes of 2008, resulting in this bill being 
              referred to the Environmental Quality Committee pursuant to 
              Senate Rule 29.10.

            2) Brief background on CEQA  .  CEQA provides a process for 
              evaluating the environmental effects of a project, and 
              includes statutory exemptions, as well as categorical 
              exemptions in the CEQA guidelines.  If a project is not 
              exempt from CEQA, an initial study is prepared to determine 
              whether a 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.

           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 










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              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.

           If a mitigation measure would cause one or more significant 
              effects in addition to those that would be caused by the 
              proposed project, the effects of the mitigation measure 
              must be discussed but in less detail than the significant 
              effects of the proposed project.

            1) Revising infill provisions  .  SB 1925 (Sher) Chapter 1039, 
              Statutes of 2002, consolidated provisions relating to 
              housing, established a residential infill exemption, 
              revised affordable housing exemptions, and revised certain 
              definitions, terms and conditions.

           The SB 1925 residential infill exemption applies if certain 
              conditions are met (e.g., project site is not more than 4 
              acres, project does not contain more than 100 residential 
              units, project promotes higher density development).  Under 
              this exemption, "residential" is either:  a) residential 
              units only; or b) residential units and primarily 
              neighborhood-serving goods, services, or retail uses that 
              do not exceed 15% of the total project floor area.

           SB 375 (Steinberg) Chapter 728, Statutes of 2008, contains 
              provisions in CEQA for certain projects that are consistent 
              with a sustainable communities strategy or alternative 
              planning strategy, including a provision where a 
              residential or mixed-use project consists of at least 75% 
              of the total building square footage for residential use 
              (§21159.28).  By increasing the SB 1925 residential infill 
              exemption percentage from 15% to 25% for the allowable 
              non-residential uses, AB 931 makes this provision more 
              consistent with the percentage specified under SB 375.

           SB 375 also allows a "transit priority project" to be reviewed 
              through a sustainable communities environmental assessment 
              or an EIR that meets certain requirements.  AB 931 allows a 










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              "transit proximity project" (which includes a major transit 
              stop as part of the project, or is located within   mile 
              of an existing major transit stop or existing high-quality 
              transit corridor) to be subject to that same environmental 
              review process.  This provision applies to a project 
              located within a metropolitan planning organization, no 
              longer applies when a sustainable communities plan is 
              adopted, and sunsets January 1, 2015.

           AB 931 also allows an "employment priority project" (which is 
              a project located on property zoned for commercial uses 
              with a specified floor area ratio and that is located with 
               mile of a major transit stop or high-quality transit 
              corridor included in a regional transportation plan) to be 
              reviewed through these SB 375 environmental review 
              procedures.  The project must be located within a 
              metropolitan planning organization and designated as an 
              employment priority project in an approved sustainable 
              community strategy or alternative planning strategy.

           AB 931 also allows an employment priority project to be 
              reviewed under the above SB 375 environmental review 
              procedures until a sustainable community plan is adopted, 
              and under these procedures a transit proximity project or 
              employment priority project must incorporate all feasible 
              mitigation measures or best practices recommended for 
              protection of public health by the local air pollution 
              control district.

            2) Related legislation  .  The provision in AB 931 relating to a 
              transit proximity project is similar to a provision in SB 
              226 (Simitian), except that AB 931 adds "employment 
              priority projects" to this provision.

            3) Technical issue  .  On page 6, line 8, "project" should be 
              inserted after "priority."  This technical omission can be 
              corrected in a Committee omnibus bill in 2012.

            SOURCE  :        California State Association of Counties  

           SUPPORT  :       County of Sacramento Board of Supervisors  











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           OPPOSITION  :    American Council of Engineering Companies, 
                          California Building Industry Association, 
                          California Business Properties Association, 
                          California Chamber of Commerce