BILL ANALYSIS                                                                                                                                                                                                    Ó



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          ASSEMBLY THIRD READING


          AB  
          1886 (McCarty)


          As Amended  May 11, 2016


          Majority vote


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          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Natural         |8-1  |Williams, Jones,      |Mark Stone          |
          |Resources       |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Cristina Garcia,      |                    |
          |                |     |Gomez, Hadley,        |                    |
          |                |     |Harper, McCarty, Wood |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
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          SUMMARY:  Revises the definition of a "transit priority project"  
          for purposes of qualifying for abbreviated review under the  
          Sustainable Communities Strategy (SCS) provisions of the  
          California Environmental Quality Act (CEQA) to permit up to 50%  
          of the parcels within the project to be farther than one-half  
          mile from a major transit stop or high-quality transit corridor,  
          as defined.  










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          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 SCS, in their regional transportation plans, or an  
            alternative planning 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 one-half 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 one-half mile from transit and not more  
                 than 10% of the residential units or 100 units, whichever  
                 is less, may be farther than one-half mile from transit.


             b)   Defines "major transit stop" as a site containing an  








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               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.


          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  








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            urban infill housing projects not more than 100 units on a  
            site and not more than 4 acres in size which is within  
            one-half 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  
               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.


          FISCAL EFFECT:  None


          COMMENTS:  


          CEQA provides a process for evaluating the environmental effects  








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          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.  


           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  








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


          SB 375 provide three alternative forms of relief for CEQA review  
          of transit priority projects:  exemption, sustainable  
          communities environmental assessment, and abbreviated EIR.  The  
          amendments made by this bill apply to the latter two, but not to  
          the exemption.


          According to the author:


            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  








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            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  
            OPR, Infill Builders, the City of Sacramento, environmental  
            and labor groups, we found that the use of a streamlined EIR  
            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.


            A streamlined EIR, as allowed for transit priority projects,  
            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 [Public  
            Resources Code] 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 one-half 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 one-half mile  
            distance to mass transit.


          Environmental groups opposed to the bill contend that the  
          one-half-mile limit is not just about proximity of transit to  
          housing, but also to jobs and retail:









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            AB 1886 maintains that no more than 10% 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, 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.   





          Analysis Prepared by:                                             
                          Lawrence Lingbloom / NAT. RES. / (916) 319-2092   
                                                                      FN:  
          0002980


















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