BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                SB 359
                                                                       

                        SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                                Senator Jerry Hill, Chair
                                2013-2014 Regular Session
                                             
           BILL NO:    SB 359
           AUTHOR:     Corbett
           AMENDED:    April 1, 2013
           FISCAL:     Yes               HEARING DATE:     May 1, 2013
           URGENCY:    No                CONSULTANT:       Joanne Roy
            
           SUBJECT  :    CEQA EXEMPTION:  HOUSING PROJECTS

            SUMMARY  :    
           
            Existing law  under the California Environmental Quality Act  
           (CEQA), requires lead agencies with the principal responsibility  
           for carrying out or approving a proposed discretionary 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). (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: 

              1) Residential units only; or 

              2) Residential units and primarily neighborhood-serving goods,  
               services, or
                    retail uses that do not exceed 15% of the total project  
               floor area. (§21159.24).

            This bill  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.

            COMMENTS  :

            1) Purpose of Bill  .  According to the author, "Over the last  
              decade, smart growth planning principles have continued to  
              encourage the integration of residents' day-to-day needs within  
              close proximity of those same residences.  This type of design  









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              encourages lower vehicle miles traveled (VMT) due to local  
              residents' ability to access these services by walking or  
              biking instead of traveling by car.  Lowering VMT improves air  
              quality, reduces greenhouse gas emissions, lessens the need for  
              new roads and extends the life of existing roads.  One method  
              pursued by many local jurisdictions to implement these  
              VMT-reducing policies in an urbanized setting is to encourage  
              building design that incorporates ground-floor  
              neighborhood-servicing uses on the bottom floor, with  
              residential housing on the floors above.  This means that for  
              projects using this design, the current 15% limit for  
              neighborhood-serving uses confines the use of this exemption to  
              only those projects that are at least seven stories tall.  This  
              is much taller than many jurisdictions allow, even though the  
              project would otherwise meet all other infill and environmental  
              review requirements.  An increase to 25% of the total building  
              square footage would allow for a four-story project of this  
              type to meet the exemption requirements."

            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, then 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 reasonable alternatives to  
              the proposed project.  Prior to approving any project that has  
              received an 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  









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              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.

            3) 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 four  
              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 buiding  
              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, SB 359 makes this  
              provision more consistent with the percentage specified under  
              SB 375.

            4) Previous legislation  .  SB 359 is similar to a provison in AB  
              931 (Dickinson) (2011) relating to a transit proximity project.

            SOURCE  :        Author  

           SUPPORT  :       California State Association of Counties
                          Urban Counties Caucus
            
           OPPOSITION  :    None on file  

            










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