BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 359
                                                                  Page  1

          Date of Hearing:   August 12, 2013

               ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
                                   Ed Chau, Chair
                    SB 359 (Corbett) - As Amended:  April 1, 2013

          SENATE VOTE  :   36-0
           
          SUBJECT  :   Environment:  CEQA exemption: housing projects.

           SUMMARY  :  Increases the maximum retail use from 15 percent of  
          floor area to 25 percent of building square footage in the  
          definition of "residential" for purposes of the existing  
          California Environmental Quality Act (CEQA) exemption for infill  
          housing projects meeting specified criteria.

           EXISTING LAW  

          1)Exempts from CEQA a residential infill project of not more  
            than 100 units on a site not more than four acres in size that  
            is located in an urbanized area and within one-half mile of a  
            major transit stop (Public Resources Code Section 21159.24).

          2)Defines "residential" for purposes of the infill exemption to  
            mean a use that consists of either residential units only or  
            residential units and primarily neighborhood-serving goods,  
            services, or retail uses that do not exceed 15 percent of the  
            total floor area of the project (Public Resources Code Section  
            21159.24).

           FISCAL EFFECT  :   According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.

           COMMENTS  :   

          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, the lead agency  
          must prepare an initial study 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 environmental impact report (EIR).  








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           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.
           
           SB 1925 (Sher), Chapter 1039, Statutes of 2002, exempted 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."

          With respect to the exemption for infill housing, projects that  
          include neighborhood-serving services and retail in addition to  
          residential units qualify so long as the non-residential space  
          does not exceed 15 percent of the total floor area of the  
          project. SB 359 increases that percentage to 25 percent and  
          replaces the term floor area with building square footage. The  
          two terms are functionally identical. 
           
           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 where they live.  
             This type of design encourages lower vehicle miles traveled  
             (VMT) due to local residents' ability to access stores and  
             services by walking or biking instead of traveling by car.  
             Lowering VMT improves air quality, reduces greenhouse gas  
             (GHG) emissions, lessens the need for new roads, and extends  
             the life of existing roads.  
              
             One method pursued by many local jurisdictions to implement  
             VMT-reducing policies is by encouraging building design that  
             incorporates ground-floor retail, such as coffee shops and  








                                                                  SB 359
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             corner stores, with residential housing on the floors above.  
             For projects using this design, however, the current 15% (or  
             1/7) 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% (or ) of the total building square footage would allow  
             for a four-story project of this type to meet the exemption  
             requirements."
             
           This bill was also referred to the Natural Resources Committee,  
          where it passed on June 24 with a vote of 9-0.  
           
           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          American Planning Association, California Chapter
          California State Association of Counties
          Urban Counties Caucus
           
            Opposition 
           
          None on file

          Analysis Prepared by  :    Anya Lawler / H. & C.D. / (916)  
          319-2085