BILL ANALYSIS Ó SB 359 Page 1 Date of Hearing: August 21, 2013 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair SB 359 (Corbett) - As Amended: April 1, 2013 Policy Committee: Housing and Community Development Vote: 7-0 Natural Resources 9-0 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill modifies the CEQA exemption for infill housing projects by changing the definition of residential within the exemption. Specifically, this bill changes the definition by increasing the maximum retail use from 15% of floor area to 25% of total building square footage. FISCAL EFFECT Negligible State Costs. COMMENTS 1)Purpose and Background. According to the author, current growth planning principles encourage the integration of services within close proximity of residences. This design reduces vehicle miles travelled (VMT) due to the ability to access services by walking or biking instead of travelling by car. Lowering VMT improves air quality, reduces greenhouse gas emissions and reduces the need to repair or build new roads. CEQA requires a lead agency 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) unless the project is exempt. SB 1925, enacted in 2002, established a CEQA exemption for certain residential projects providing affordable urban or SB 359 Page 2 agricultural housing, or located on an infill site within an urbanized area, and meeting specified unit and acreage criteria. Specifically, the current exemption includes: 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. 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% of the total floor area of these projects. The current 15% retail limit confines the use of this exemption to only those projects that are at least seven stories. An increase to 25% of the total building square footage will allow a four story project to meet the CEQA exemption requirements. Analysis Prepared by : Jennifer Galehouse / APPR. / (916) 319-2081