BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1581|
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                                 THIRD READING


          Bill No:  AB 1581
          Author:   Torres (D), et al
          Amended:  8/20/10 in Senate
          Vote:     21

           
           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  6-1, 6/28/10
          AYES: Simitian, Corbett, Hancock, Lowenthal, Pavley,  
            Strickland
          NOES: Runner

           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  4-2, 8/25/10
          AYES:  Simitian, Runner, Lowenthal, Strickland
          NOES:  Corbett, Hancock
          NO VOTE RECORDED:  Pavley

           ASSEMBLY FLOOR  :  Not relevant


           SUBJECT  :    California Environmental Quality Act:  retail  
          facilities: 
                      project review

           SOURCE  :     California Retailer Association


           DIGEST  :    This bill, until January 1, 2014, exempts the  
          alteration of a vacant retail structure from California  
          Environmental Quality Act (CEQA) if the structure existed  
          prior to January 1, 2008, is not more than 120,000 square  
          feet in area, and meets certain requirements.  This bill  
          also requires a lead agency to provide a scoping meeting  
          notice to other entities not required receiving the notice  
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          pursuant to the CEQA but that have failed a written request  
          for the notice.

           Senate Floor Amendments  of 8/20/10 provide a CEQA exemption  
          for alteration of a large vacant retail structure.

           ANALYSIS  :    Current law, under CEQA, requires lead  
          agencies with the principal responsibility for carrying out  
          or approving a proposed project to prepare a negative  
          declaration, mitigated declaration, or environmental impact  
          report for this action, unless the project is exempt from  
          CEQA.  CEQA also requires a lead agency to call at least  
          one scoping meeting for a proposed project, and to provide  
          notice of the scoping meeting to certain entities.  

          This bill requires a scoping meeting notice to be provided  
          to any entity requesting notice that is not otherwise  
          required to receive the notice.

          This bill, until January 1, 2014, exempts from CEQA  
          requirements a project that consists of the alteration of a  
          vacant retail structure that existed prior to January 1,  
          2008, is not more than 120,000 square feet in area, and  
          meets specified requirements.

           Comments
           
           Purpose of Bill  .  Under CEQA, a scoping meeting notice must  
          be provided to certain public agencies.  An organization or  
          individual may file a written request to receive the  
          notice, but there is no provision allowing an entity to  
          receive a scoping meeting notice upon request if that  
          entity is not otherwise required to receive notice - such  
          as a special district or nearby city that does not border  
          the county or city within which the project is located.   
          This bill, as approved by the Senate Environmental Quality  
          Committee June 29, 2010, provides an opportunity for these  
          entities to file a written request to receive the scoping  
          meeting notice.

          The author added a CEQA exemption to this bill August 20,  
          2010.

           Interest to target former structures for use as  

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          supermarkets  .  According to the sponsor, the California  
          Retailers Association, "AB 1581 seeks to amend CEQA as it  
          applies to vacant/abandoned retail buildings in an effort  
          to encourage their reuse."  The AB 1581 exemption applies  
          to a vacant structure of not more than 120,000 square feet  
          that meets certain conditions.  With the ongoing recession,  
          there may be continuing increases in vacant retail  
          structures that interest certain retailers (Tesco's Fresh &  
          Easy), including those that build big box centers  
          (Wal-Mart).  

          Several recent reports indicate Wal-Mart is interested in  
          buying numerous smaller store sites for new neighborhood  
          oriented supermarkets.  It was recently reported that those  
          "in the commercial real estate business say the company has  
          been aggressively nailing down local sites - mostly former  
          grocery stores - in advance of a major Northern California  
          rollout of its new format."  Purchasing a vacant retail  
          store "blunts the costly, time-consuming challenges  
          Wal-Mart faces from unions and other critics whenever it  
          seeks approvals to build its warehouse-size supercenters."   
          (Shallit, Bob.  "Wal-Mart plans small stores in Sacramento  
          area."   Sacramento Bee  , 26 Jun 2010.)

          "Wal-Mart's going huge next year," said Garrick Brown,  
          research director at Colliers International in Sacramento,  
          California.  "Locally they're looking for sites."  Brown  
          noted that Wal-Mart is pursuing 200 to 300 locations,  
          including vacant buildings that the retailer can lease for  
          cheap.  Wal-Mart spokesman Steve Restivo noted "We'll  
          continue to expand into new channels so customers can shop  
          and experience Wal-Mart when, where, and how they want."   
          (Johnston, Kelly. "Small Targets, Huge Profits."   
           Portfolio.com  .  2 Jun 2010.)

          According to  Supermarket News  , "Actually, it is the boxes  
          that are getting smaller as Wal-Mart finds more efficient  
          ways of doing the same things in ever-shrinking spaces; as  
          it seeks sites in more urbanized locations; and as it looks  
          for ways to skirt big box laws that keep stores of 100,000  
          square feet out of many communities."  This includes a new  
          Wal-Mart Neighborhood Marketplace with 75,000 to 80,000  
          square feet.  (Zwiebach, Elliot.  "Wal-Mart Thinking  
          Smaller to Get Bigger."   Supermarket News  .  28 June 2010.)

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           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (per Senate EQ Committee analysis of 8/20/10)

          California Retailer Association (source)
          Building Owners and Managers Association of California
          California Building Industry Association
          California Business Properties Association
          California Chamber of Commerce
          California Grocers Association
          Construction Employers' Association
          Commercial Real Estate Development Association
          International Council of Shopping Centers
          San Bernardino County

           OPPOSITION :    (per Senate EQ Committee analysis of  
          8/20/10)

          Sierra Club California


          TSM:DLW:do  8/27/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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