BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 226
                                                                  Page 1

          Date of Hearing:  August 22, 2011

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                   SB 226 (Simitian) - As Amended:  August 17, 2011

           SENATE VOTE  :  36-0 (not relevant)
           
          SUBJECT  :  Environmental quality

           SUMMARY  :  Establishes exemptions and limits to environmental 
          review under the California Environmental Quality Act (CEQA) for 
          specified projects.

           EXISTING LAW  :

          1)Requires lead agencies with the principal responsibility for 
            carrying out or approving a proposed project to prepare a 
            negative declaration, mitigated negative 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)Requires the Office of Planning and Research and the Natural 
            Resources Agency to prepare, adopt and periodically update 
            CEQA guidelines, including identifying classes of projects 
            determined to have no significant effect on the environment 
            and therefore eligible for a categorical exemption, as well as 
            guidelines for the mitigation of greenhouse gas (GHG) 
            emissions.

          3)Exempts from CEQA specified residential housing projects which 
            meet criteria established to ensure the project does not have 
            a significant effect on the environment, including 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.  (SB 1925 (Sher), Chapter 1039, Statutes 
            of 2002)

          4)Requires metropolitan planning organizations (MPOs) 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, 
            aligns planning for transportation and housing, and creates 








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            specified incentives for the implementation of the strategies, 
            including CEQA exemption or abbreviated review for residential 
            or mixed-use residential "transit priority projects" if the 
            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.  (SB 375 
            (Steinberg), Chapter 728, Statutes of 2008)  

          5)Requires a lead agency to call at least one scoping meeting 
            for a proposed project of statewide, regional, or area-wide 
            significance.  Notice of at least one scoping meeting must be 
            provided to certain entities, including a county or city 
            bordering a county or city within which the project is 
            located.  Requires a planning agency to refer a proposed 
            action to adopt or substantially amend a general plan to 
            certain entities for comment, including a city or county 
            within or abutting the area covered by the proposal, prior to 
            legislative body's action on that general plan.

           THIS BILL  :

          1)Exempts from CEQA review the installation of a "solar energy 
            system" on the roof of an existing building.  "Solar energy 
            system" includes solar electric (photovoltaic) and solar hot 
            water projects, and associated equipment not located on the 
            roof, including connections to the electric grid adjacent to 
            the parcel, but excludes a substation.  (Section 3)

          2)Requires the Natural Resources Secretary, by March 1, 2012, to 
            amend the CEQA guidelines to exempt from CEQA review solar 
            photovoltaic projects not more than 10 megawatts/100 acres 
            located on disturbed agricultural lands, as defined.  Eligible 
            lands must have been used for agricultural production for at 
            least five years and determined by a qualified biologist to 
            have no significant habitat value.  Projects may not be 
            located on prime farmland or other farmland designated as 
            important farmlands by the Department of Conservation.  This 
            provision sunsets January 1, 2015.  (Section 6)

          3)Provides that a project's greenhouse gas emissions shall not 
            by itself cause the project to be ineligible for a categorical 
            exemption from CEQA review if the project complies with 
            regulations adopted to implement related statewide, regional, 
            or local plans as provided in the CEQA guidelines.  (Section 
            5)








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          4)Establishes interim abbreviated CEQA review procedures for 
            specified "transit proximity projects," defined as urban 
            residential mixed-use projects with housing density of at 
            least 20 units per acre located within one quarter mile of a 
            transit stop or corridor.  The abbreviated procedures permit 
            transit proximity projects to be reviewed via a sustainable 
            communities environmental assessment (SCEA) or an 
            environmental impact report (EIR) where consideration of 
            cumulative effects and alternatives to the project are 
            limited.  This provision applies only to projects within an 
            MPO, ceases to apply once that MPO has adopted a SCS under SB 
            375, and sunsets January 1, 2015.  (Sections 1 and 7)

          5)Provides that CEQA does not require a public agency to 
            consider written materials submitted after the close of the 
            public comment period, with specified exceptions for materials 
            addressing new information released after the close of the 
            public comment period, and permits a lead agency to elect to 
            ignore written materials submitted after the close of the 
            public comment period and provides that such material shall 
            not be raised in judicial review.  This provision sunsets 
            January 1, 2016.  (Section 8)

          6)Authorizes referral of a proposed action to adopt or 
            substantially amend a general plan to an adjacent city or 
            county to be conducted concurrently with the scoping meeting 
            required by CEQA for a project of statewide, regional or 
            area-wide significance, and authorize the city or county to 
            submit its comments on the proposed general plan action at the 
            CEQA scoping meeting.  (Sections 2 and 4)

          7)Contains an urgency clause allowing the bill to take effect 
            immediately upon enactment.  (Section 10)

           FISCAL EFFECT  :  Unknown

















                                                                  SB 226
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           COMMENTS  :  

           1)Background.   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 lead agency must base its 
            determination of significant effects on substantial evidence.

            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.

            According to the author, SB 226 responds to concerns relating 
            to scoping meetings for certain projects, use of categorical 
            exemptions for projects resulting in greenhouse gas emissions, 
            environmental review for infill and solar projects, and late 
            public comments on environmental documents.

           2)Rooftops, plus?   In most cases, installation of solar panels 
            or hot water systems on rooftops of existing buildings would 
            not be subject to CEQA, and the committee has not identified 
            any instance where application of CEQA has been a burden or 
            impediment to rooftop solar projects.  As it relates to 
            rooftop solar energy systems and associated ground equipment 
            inside or adjacent to the building, the exemption in this bill 
            is reasonable, though arguably unnecessary.  However,  the 
            author and the committee may wish to consider  whether the bill 
            should more clearly define the extent to which it applies to 
            off-site wires connecting the project to the electric grid so 
            that the exemption doesn't include new transmission lines and 
            towers located on another property.









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           3)Disturbed lands.   By excluding farmland designated by the 
            Department of Conservation as "important," this exemption 
            appears limited to a very small minority of agricultural lands 
            that have been cultivated at some point in the past, but not 
            irrigated for at least several years.  Additional conditions, 
            such as limits on project size and acreage, requiring a 
            biologist's determination that the land has no significant 
            habitat value, and prohibiting repeated uses of the exemption 
            in the same vicinity or ownership, further limit the 
            application of the exemption.  However, some of these 
            conditions seem arbitrary and have little or nothing to do 
            with CEQA's purposes.   The author and the committee may wish 
            to consider  letting the absence of significant effects be the 
            standard and instead direct the Secretary to identify a class 
            of solar projects on disturbed agricultural lands that would 
            be eligible for a categorical exemption based on a 
            determination that the class of projects will not have a 
            significant effect on the environment.

           4)Prioritizing proximity.   This bill's "transit proximity 
            project" provision advances some of the CEQA streamlining 
            available under SB 375 so that it could apply in the next 
            couple years to urban regions within an MPO.  Eligibility is 
            limited to dense (20 units/acre) residential projects very 
            near (1/4 mile) transit.  In opposition, developers contend 
            that the combination of requiring projects to be within 1/4 
            mile of a major transit stop or high-quality transit corridor 
            and requiring the project to incorporate all mitigation 
            measures or best practices recommended by the local air 
            district make the provision unusable.  They cite mitigation 
            measures recommended by the Bay Area Air Quality Management 
            District that recommend projects be located away from roadway 
            to protect residents from air pollution.  However, it appears 
            the bill's conditions can be reconciled with the BAAQMD 
            standards so that this provision could be used to some extent 
            for projects in the Bay Area and other urban regions.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          None on file
           
           Opposition 
           








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          American Council of Engineering Companies
          California Building Industry Association
          California Business Properties Association
          California Chamber of Commerce
          California Farm Bureau Federation (prior version)


           Analysis Prepared by  :  Lawrence Lingbloom / NAT. RES. / (916) 
          319-2092