BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                SB 674
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                              Senator Jerry Hill, Chair
                              2013-2014 Regular Session
                                           
           BILL NO:    SB 674
           AUTHOR:     Corbett           
           AMENDED:    January 6, 2014
           FISCAL:     Yes               HEARING DATE:     January 15,  
           2014
           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.  
            (Public Resources Code §21000 et seq.).  

           A residential project on an infill site is exempted from CEQA  
           under specified conditions.  "Residential" is defined 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% of the total project floor  
           area to 25% of the total building square footage.

            COMMENTS  :

            1) Purpose of Bill  .  According to the author, "Over the last  
              decade, smart growth planning principles have continued to  









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              encourage the integration of residents' day-to-day needs  
              within close proximity of those same residences.  This type  
              of design 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  









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              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.

            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 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, SB 674 makes this provision more  
              consistent with the percentage specified under SB 375.

            4) Previous legislation  .  SB 674 is similar to SB 359  
              (Corbett), Chapter 415, Statutes of 2013, as it was heard  
              in this committee last year.  Subsequent amendments adopted  
              in the Assembly deleted the CEQA-related contents of SB 359  
              to instead provide money for California Air Resources Board  
              projects aimed at encouraging the deployment of  









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              zero-emission and hybrid vehicles.  

           AB 931 (Dickinson) (2011), relating to a transit proximity  
              project and included a revision of a CEQA exemption for  
              residential infill by increasing the amount of allowable  
              neighborhood-serving goods, services, or retail uses.  AB  
              931 failed in Senate Environmental Quality Committee (1-5).
            
           SUPPORT  :       American Planning Association, California  
                          Chapter
                          California State Association of Counties
                          Urban Counties Caucus
            
           OPPOSITION  :    None on file