BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1886


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          Date of Hearing:  May 3, 2016


                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES


                                 Das Williams, Chair


          AB 1886  
          (McCarty) - As Introduced February 11, 2016


          SUBJECT:  California Environmental Quality Act:  transit  
          priority projects


          SUMMARY:  Revises the definition of a "transit priority project"  
          for purposes of qualifying for exemption or abbreviated review  
          under the California Environmental Quality Act (CEQA) to permit  
          up to 50% of the parcels within the project to be farther than  
          1/2 mile from a major transit stop or high-quality transit  
          corridor, as defined.


          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)Requires metropolitan planning organizations (MPOs) to include  
            a sustainable communities strategy (SCS), as defined, in their  
            regional transportation plans, or an alternative planning  








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            strategy (APS), for the purpose of reducing greenhouse gas  
            (GHG) emissions; aligns planning for transportation and  
            housing; and creates specified incentives for the  
            implementation of the strategies, including CEQA exemption or  
            abbreviated review for residential or mixed-use residential  
            "transit priority projects," if the 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.  [SB 375 (Steinberg), Chapter 728,  
            Statutes of 2008]  

             a)   Requires a "transit priority project" to meet the  
               following conditions:

               i)     Contain at least 50% residential use;

               ii)    Provide at least 20 dwellings per acre; and

               iii)   Be within 1/2 mile of a major transit stop or  
                 high-quality transit corridor.  To qualify, all parcels  
                 within the project must have no more than 25% of their  
                 area farther than 1/2 mile from transit and not more than  
                 10% of the residential units or 100 units, whichever is  
                 less, may be farther than 1/2 mile from transit.

             b)   Defines "major transit stop" as a site containing an  
               existing rail transit station, a ferry terminal served by  
               either a bus or rail transit service, or the intersection  
               of two or more major bus routes with a frequency of service  
               interval of 15 minutes or less during the morning and  
               afternoon peak commute periods.





             c)   Defines "high-quality transit corridor" as a corridor  
               with fixed route bus service with service intervals no  
               longer than 15 minutes during peak commute hours. 








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          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 the Office of Planning and  
            Research (OPR) to develop CEQA guidelines to implement its  
            infill provisions, including statewide standards to promote  
            smart growth, reduction of GHG emissions, reduction in water  
            use, energy efficiency improvements, and protection of public  
            health.

          4)Exempts from CEQA residential, mixed-use, and "employment  
            center" projects, as defined, located in "transit priority  
            areas" within one-half mile of an existing or planned major  
            transit stop, if the project is consistent with an adopted  
            specific plan and specified elements of a SCS or APS adopted  
            pursuant to SB 375.  [SB 743 (Steinberg), Chapter 386,  
            Statutes of 2013]

          5)Exempts from CEQA specified residential housing projects which  
            meet detailed criteria established to ensure the project does  
            not have a significant effect on the environment, including  
            urban infill housing projects not more than 100 units on a  
            site and not more than 4 acres in size which is within 1/2  
            mile of a major transit stop.  [SB 1925 (Sher), Chapter 1039,  
            Statutes of 2002] 

          6)The CEQA Guidelines further exempt infill projects meeting the  
            following conditions:

             a)   The project is consistent with the applicable general  
               plan designation and all applicable general plan policies,  
               as well as with applicable zoning designation and  








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               regulations.

             b)   The proposed development occurs within city limits on a  
               project site of no more than five acres substantially  
               surrounded by urban uses.

             c)   The project site has no value as habitat for endangered,  
               rare, or threatened species.

             d)   Approval of the project would not result in any  
               significant effects relating to traffic, noise, air  
               quality, or water quality.

             e)   The site can be adequately served by all required  
               utilities and public services.

          THIS BILL revises the definition of a "transit priority project"  
          for purposes of the SCS provisions of CEQA to permit up to 50%  
          of the area of parcels within the project to be farther than 1/2  
          mile from a major transit stop or high-quality transit corridor.
          
          FISCAL EFFECT:  Non-fiscal


          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 the project would not have 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, the lead  
            agency must prepare an 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.  


             CEQA includes various statutory exemptions, as well as  
            categorical exemptions in the CEQA Guidelines.  Since 1985,  
            any residential development project can be exempt from CEQA if  
            the project is consistent with a specific plan for which an  
            EIR has been certified.  In 2002, SB 1925 established CEQA  
            exemptions for 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.  For purposes of qualifying for the  
            CEQA exemption for urban infill housing, projects must be  
            within one-half mile of a major transit stop.


            More recently, the Legislature has enacted CEQA exemptions and  
            streamlining for residential and certain other projects in  
            infill areas.  SB 375 (2008) provided a CEQA exemption for a  
            narrow set of eligible residential projects in infill areas  
            adjacent to transit, as well as alternatives of abbreviated  
            EIR and mitigated negative declaration review.  SB 226 (2011)  
            provided abbreviated CEQA review procedures for a broader set  
            of urban infill projects, including retail, commercial, and  
            public buildings, with no requirement regarding proximity to  
            transit.  SB 743 (2013) established a new exemption for  
            residential, mixed-use, and "employment center" projects  
            located within one-half mile of a major transit stop, if the  
            project is consistent with an adopted specific plan and  
            specified elements of a SB 375 strategy.  SB 743 also required  








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            OPR to propose revisions to the CEQA Guidelines for  
            transportation impacts to better support infill development. 


          2)Author's statement:



          Past legislative efforts, such as SB 226, SB 375 and SB 743,  
          have sought to update CEQA by creating exemptions and  
          streamlining provisions for projects which meet specific  
          criteria.  The goals of those efforts were to maintain the  
          integrity of CEQA, while recognizing that certain projects do  
          not require as thorough review as others.  These are projects  
          which must be close to mass transit, promote smart growth  
          strategies and are environmentally friendly.  





          These types of development pose significant challenges for both  
          the developer/builder and for the city looking to approve them.   
          Infill projects are complicated and face significant threats of  
          litigation and other hurdles.  This is because the nature of  
          infill means that projects are surrounded by current residents,  
          business or outside groups who may oppose the project despite  
          its benefits to both the environment and the community. After  
          many discussions with the Governor's Office of Planning and  
          Research, Infill Builders, the City of Sacramento, environmental  
          and labor groups, we found that the use of a streamlined EIR  
          (PRC 21155.2) or the CEQA exemption after a public hearing (PRC  
          21155.1) is an effective way to reduce some of the CEQA burden  
          on projects, while still maintaining an avenue for objections to  
          be raised concerning individual projects.  












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          A streamlined EIR, as allowed for transit priority projects (PRC  
          21155.2), is a valuable tool for infill development.  It carries  
          the litigation protection as a full EIR, but is less expensive  
          and less time consuming.  It must still consider environmental  
          impacts of a proposed project and must go through the public  
          process for comments or revisions.  By changing the requirements  
          which have access to streamlined EIRs, cities may have the  
          ability to attract more infill development.





          This bill seeks to encourage more environmentally friendly  
          infill development by making a slight change to PRC 21155 to  
          allow for more flexibility in project design, while still  
          remaining within walking distance to high quality transit.  It  
          changes the current requirement of how much of an entire mixed  
          use or residential infill project of no more than 200  
          residential units is within a  mile from mass transit from 75%  
          to 50%.  This change only affects the non-residential pieces of  
          a project.  Current law would remain the same under this bill,  
          that 90% of residential units be within  mile distance to mass  
          transit.





          3)Three forms of relief.  SB 375 provide three alternative forms  
            of relief for CEQA review of transit priority projects:



               a)     Exemption (Section 21155.1).  This requires a  
                 hearing and findings by the public agency that the  
                 project meets specified criteria, including a variety of  
                 conditions to assure the project has no significant  








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                 environmental impacts.  The project must also be located  
                 within one-half mile of a rail transit station or ferry  
                 terminal, or within one-quarter mile of a high-quality  
                 transit corridor.



               b)     Sustainable communities environmental assessment  
                 [Section 21155.2(b)].  This is equivalent to a mitigated  
                 negative declaration, except that the lead agency's  
                 actions are subject to a more deferential standard of  
                 review (substantial evidence rather than fair argument).



               c)     Abbreviated EIR [Section 21155.2(c)].  This limits  
                 the consideration of cumulative impacts and does not  
                 require analysis of off-site alternatives to the project.



          4)Opposition argument.  Environmental groups opposed to the bill  
            contend that the half-mile limit is not just about proximity  
            of transit to housing, but also to jobs and retail:
               AB 1886 maintains that no more than 10 percent of the  
               residential units in the development, or 100 units,  
               whichever is less, can be located more than one-half mile  
               away from the transit station.  We are pleased to see an  
               effort to honor the original intent of SB 375, to locate  
               the majority of residential units in walking distance from  
               the transit stop.  However, we are concerned about the  
               impacts?on the commercial and retail portions of a project.  
                A report on Transit Oriented Development published by the  
               Public Policy Institute of California recommended a greater  
               emphasis on locating commercial development and jobs near  
               transit to reduce vehicle miles traveled and promote  
               transit ridership.  If the bulk of the jobs are located too  
               far from a station for the transit to be a viable commuting  
               option, this commercial development, while near transit,  








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               may not reduce vehicle miles traveled.  Moreover, AB 1886  
               might result in more, larger projects that choose to locate  
               the full 100 residential units more than one-half mile from  
               transit, rendering transit a less viable option for these  
               residents.  


          5)OPR survey indicates CEQA is not a significant barrier to  
            infill projects.  OPR's "2012 Annual Planning Survey Results"  
            asked city and county planners to explain the primary barriers  
            their jurisdictions have experienced to implementing infill  
            projects.  Based on 238 responses, 25% of jurisdictions  
            reported that infrastructure constraints were a primary  
            barrier to implementing infill projects.  Just under 25%  
            reported that they had problems with assembling parcels of the  
            right size and configuration for infill development.  Only 4%  
            of respondents identified CEQA as a barrier.



          6)Suggested amendment.  The author and the committee may wish to  
            consider amending the bill to clarify that the changes to the  
            one-half mile limit do not apply to the exemption (Section  
            21155.1), which has its own, more-stringent transit proximity  
            requirements. 
          REGISTERED SUPPORT / OPPOSITION:




          Support


          Association of Environmental Professionals


          California Association of Realtors










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          Opposition


          California Bicycle Coalition


          California League of Conservation Voters


          Natural Resources Defense Council


          Safe Routes to School National Partnership


          Sierra Club California




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