BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 226
                                                                  Page 1

          (  Without Reference to File  )

          SENATE THIRD READING
          SB 226 (Simitian and Vargas)
          As Amended  September 9, 2011
          Majority vote

           SENATE VOTE  :36-0  
           
           NATURAL RESOURCES   6-1         AGRICULTURE         5-0         
           
           ----------------------------------------------------------------- 
          |Ayes:|Chesbro, Brownley,        |Ayes:|Galgiani, Bill Berryhill, |
          |     |Dickinson, Huffman,       |     |Hill, Ma, Perea           |
          |     |Monning, Skinner          |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Halderman                 |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           APPROPRIATIONS      12-0                                        
           
           ----------------------------------------------------------------- 
          |Ayes:|Fuentes, Blumenfield,     |     |                          |
          |     |Bradford, Charles         |     |                          |
          |     |Calderon, Campos, Davis,  |     |                          |
          |     |Gatto, Hall, Hill, Lara,  |     |                          |
          |     |Mitchell, Solorio         |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Establishes exemptions and limits to environmental 
          review under the California Environmental Quality Act (CEQA) for 
          specified projects.  Specifically,  this bill:
           
          1)Exempts from CEQA review the installation of a "solar energy 
            system" on the roof of an existing building or at an existing 
            parking lot.  "Solar energy system" includes solar electric 
            (photovoltaic) and solar hot water projects, and associated 
            equipment not located on the roof, including connections to 
            the electric grid adjacent to the parcel, but excludes a 
            substation.









                                                                  SB 226
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          2)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 environmental impact report (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.

          3)Requires adoption of CEQA guidelines to implement the 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)Provides that a project's greenhouse gas (GHG) emissions shall 
            not by itself cause the project to be ineligible for a 
            categorical exemption from CEQA review if the project complies 
            with regulations adopted to implement related statewide, 
            regional, or local plans as provided in the CEQA guidelines.

          5)Authorizes referral of a proposed action to adopt or 
            substantially amend a general plan to an adjacent city or 
            county to be conducted concurrently with the scoping meeting 
            required by CEQA for a project of statewide, regional or 
            area-wide significance, and authorize the city or county to 
            submit its comments on the proposed general plan action at the 
            CEQA scoping meeting.

          6)Permits specified solar thermal powerplant projects recently 
            certified by the California Energy Commission to convert the 
            project to solar photovoltaic technology without filing an 
            entirely new application for certification

           EXISTING LAW  :

          1)Requires lead agencies with the principal responsibility for 
            carrying out or approving a proposed project to prepare a 
            negative declaration, mitigated negative declaration, or 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 the Office of Planning and Research and the Natural 








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            Resources Agency to prepare, adopt and periodically update 
            CEQA guidelines, including identifying classes of projects 
            determined to have no significant effect on the environment 
            and therefore eligible for a categorical exemption, as well as 
            guidelines for the mitigation of GHG emissions.

          3)Exempts from CEQA specified residential housing projects which 
            meet 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 not 
            more than four acres in size which is within one-half mile of 
            a major transit stop.  (SB 1925 (Sher), Chapter 1039, Statutes 
            of 2002)

          4)Requires metropolitan planning organizations (MPOs) 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, 
            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)  

          5)Requires a lead agency to call at least one scoping meeting 
            for a proposed project of statewide, regional, or area-wide 
            significance.  Notice of at least one scoping meeting must be 
            provided to certain entities, including a county or city 
            bordering a county or city within which the project is 
            located.  Requires a planning agency to refer a proposed 
            action to adopt or substantially amend a general plan to 
            certain entities for comment, including a city or county 
            within or abutting the area covered by the proposal, prior to 
            legislative body's action on that general plan.

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee:

          1)Potential costs in 2011-12 to Office of Planning and Research 
            (OPR) to develop CEQA guidelines and to the Secretary to 
            certify and adopt them.  If the work of OPR is part of the 
            normal CEQA guideline development process then costs will be 








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            minor and absorbable.  If, however, the work happens outside 
            of the normal CEQA guideline development process then OPR will 
            face one-time costs of as much as $150,000, equivalent to one 
            staff member.  (General Fund or special funds.) 

          2)Minor, absorbable costs the Energy Commission to review 
            amendments to qualifying applications for solar thermal 
            powerplants.  (Special fund.)

           COMMENTS  :  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.  A lead agency must base its 
          determination of significant effects on substantial evidence.

          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.


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

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