BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1185
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          Date of Hearing:  May 2, 2011

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                    AB 1185 (Torres) - As Amended:  April 26, 2011
           
          SUBJECT  :  California Environmental Quality Act:  retail 
          facilities:  project review

           SUMMARY  :  Establishes, until January 1, 2015, an exemption from 
          the California Environmental Quality Act (CEQA) for alterations 
          of existing vacant retail structures not more than 60,000 square 
          feet and meeting specified requirements.

           EXISTING LAW  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).

           THIS BILL  :

          1)Establishes an exemption from CEQA for a project that consists 
            of the alteration of a vacant retail structure that existed 
            prior to January 1, 2008, is not more than 60,000 square feet 
            and meets the following requirements:

             a)   The project is proposed by a person that employs less 
               than 500 employees in total.

             b)   The project improves the energy efficiency of the 
               structure at least 25 percent above Title 24 building 
               standards, as determined by the California Energy 
               Commission (CEC).

             c)   The project reduces water consumption to at least 20 
               percent below the previous five-year annual average for 
               similar retail structures, as determined by the local water 
               agency.

             d)   The project, including any replacement signage, is 
               consistent with any applicable general plan, specific plan, 
               or local coastal plan, including any mitigation measures 








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               required by the plan, and any applicable zoning ordinance 
               or local ordinance.

             e)   The project does not increase the size of the 
               structure's footprint, floor plan, or floor area ratio.

          2)Sunsets the above provisions January 1, 2015.

          3)Requires a scoping meeting notice to be provided to any entity 
            that has filed a written request for the notice and is not 
            otherwise required to receive notice for CEQA projects of 
            statewide, regional or area-wide significance.

           FISCAL EFFECT  :  Unknown







































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           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.

            This bill exempts from CEQA review projects that would now be 
            subject to review IF the change in use resulted in new 
            significant effects on the environment.  The bill requires the 
            benefits of a 25 percent improvement in required energy 
            efficiency and a 20 percent reduction in water use for the 
            structure.  However, other environmental effects that would 
            result from the change in use, such as changes in the volume 
            or flow of traffic, will not be analyzed and mitigated 
            pursuant to CEQA.  

          2)Conditions for exemption seem impractical.   In order to 
            qualify for this exemption, a project proponent would have to 
            demonstrate to the satisfaction of the local lead agency that 
            (a) the CEC has determined the project improves the energy 
            efficiency of the structure at least 25 percent above Title 24 
            building standards and (b) the local water agency has 
            determined the project reduces water consumption to at least 
            20 percent below the previous five-year annual average for 
            similar retail structures.  The CEC and water agencies are not 
            obligated to issue speculative determinations based on project 
            plans.  Even if they were willing to make the determinations, 








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            they would seem to require measurement of energy and water use 
            once the project is completed.  It's not clear determinations 
            could be made with certainty based on project design at the 
            application stage.  

             In addition, the lead agency would have to determine whether 
            the person proposing the project employs less than 500 people. 
             This is intended to exclude large retail chains from the 
            exemption, but seems like an inappropriate condition for CEQA 
            because it has nothing to do with the effect of the project on 
            the environment.  It also seems a difficult and inappropriate 
            assignment for a lead agency to verify the number of people 
            employed by the project proponent.  

             Clearly, a primary issue in CEQA review for a retail reuse 
            project will be traffic impacts.  If the traffic generated by 
            the new store is measured against a baseline of a vacant 
            store, as opposed to the previous retail use, the traffic 
            impacts will be considered more significant and more 
            mitigation will be required.  As an alternative to the 
            exemption proposed by this bill,  the author and the committee 
            may wish to consider  amendments to specifically address the 
            traffic baseline issue by requiring the lead agency to compare 
            the traffic associated with the project to the traffic 
            generated by the previous retail use and require mitigation 
            only to the extent the new use increases traffic over the old 
            use.  
           
           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Associated Builders and Contractors of California
          County of San Bernardino

           Opposition 
           
          California Labor Federation
          California Teamsters Public Affairs Council
          Sierra Club California
          Western States Council of the United Food & Commercial Workers

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








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