BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 674
                                                                  Page 1

          Date of Hearing:  June 16, 2014

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                   SB 674 (Corbett) - As Amended:  January 6, 2014

           SENATE VOTE  :  33-0
           
          SUBJECT  :  California Environmental Quality Act:  exemption:   
          residential infill projects

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

           EXISTING LAW  :

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

             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; and,

             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 percent of the  
               total floor area of these projects.









                                                                  SB 674
                                                                  Page 2

          3)Establishes abbreviated CEQA review procedures for specified  
            infill projects, where only specific or more significant  
            effects on the environment which were not addressed in a prior  
            planning-level EIR need be addressed.  An EIR for such a  
            project need not consider alternative locations, densities,  
            and building intensities or growth-inducing impacts.  Infill  
            projects may include residential, retail, commercial, transit  
            station, school, or public office building projects located  
            within an urban area (SB 226 (Simitian), Chapter 469, Statutes  
            of 2011).  SB 226 requires OPR to develop CEQA guidelines to  
            implement its infill provisions, including statewide standards  
            to promote smart growth, reduction of greenhouse gas (GHG)  
            emissions, reduction in water use, energy efficiency  
            improvements and protection of public health.

          4)Requires metropolitan planning organizations 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  
            specified incentives for the implementation of the strategies  
            (SB 375 (Steinberg), Chapter 728, Statutes of 2008).  As it  
            relates to the provisions of this bill, SB 375 specifies that,  
            if a residential or mixed-use residential project (defined as  
            a project where at least 75 percent of the total building  
            square footage of the project consists of residential use or a  
            project that is a transit priority 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, and if the project incorporates the  
            mitigation measures required by an applicable prior  
            environmental document, any findings or other determinations  
            for an exemption, a negative declaration, a mitigated negative  
            declaration, an EIR, or addenda prepared or adopted for the  
            project pursuant to CEQA shall not be required to reference,  
            describe, or discuss growth inducing impacts or any project  
            specific or cumulative impacts from cars and light-duty truck  
            trips generated by the project on global warming or the  
            regional transportation network.

           THIS BILL  increases the maximum retail use from 15 to 25 percent  
          for purposes of the SB 1925 infill housing exemption referenced  
          above and changes the metric in the calculation from "floor  
          area" to "building square footage."









                                                                  SB 674
                                                                  Page 3

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

           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.  

             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, enacted in 2002, exempts 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."  

















                                                                 SB 674
                                                                  Page 4


          2)Author's statement:

                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 these  
               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  
               these VMT-reducing policies is by encouraging building  
               design that incorporates ground-floor retail, such as  
               coffee shops and 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 (7) 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 (4) story project of this type to meet the exemption  
               requirements.
             
          3)Double referral.   This bill is double-referred to the Assembly  
            Local Government Committee.  
           
           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Association of California Cities - Orange County
          California Building Industry Association
          California Business Properties Association
          California Chapter of the American Planning Association
          California Chamber of Commerce
          California State Association of Counties
          City of Brea
          Urban Counties Caucus
           
            Opposition 








                                                                 SB 674
                                                                  Page 5

           
          None on file


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