BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  SB 674
          Author:   Corbett (D)
          Amended:  1/6/14
          Vote:     21

           
           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  7-0, 1/15/14
          AYES:  Hill, Corbett, Fuller, Hancock, Jackson, Leno, Pavley
          NO VOTE RECORDED:  Gaines, Vacancy

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    California Environmental Quality Act:  exemption:   
          residential infill projects

           SOURCE  :     Author


           DIGEST  :    This bill revises the residential infill exemption by  
          increasing the amount of allowable neighborhood-serving goods,  
          services, or retail uses from 15% of the total project floor  
          area to 25% of the total building square footage.

           ANALYSIS  :    Existing law under the California Environmental  
          Quality Act (CEQA), requires lead agencies with the principal  
          responsibility for carrying out or approving a proposed  
          discretionary project to prepare a negative declaration,  
          mitigated negative declaration, or environmental impact report  
          (EIR) for this action, unless the project is exempt from CEQA.  

          A residential project on an infill site is exempted from CEQA  
          under specified conditions.  "Residential" is defined to be  
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          either: 

          1.Residential units only; or 

          2.Residential units and primarily neighborhood-serving goods,  
            services, or retail uses that do not exceed 15% of the total  
            project floor area.

          This bill revises the residential infill exemption by increasing  
          the amount of allowable neighborhood-serving goods, services, or  
          retail uses from 15% of the total project floor area to 25% of  
          the total building square footage.

           Background
           
          CEQA provides a process for evaluating the environmental effects  
          of a project, and includes statutory exemptions as well as  
          categorical exemptions in the CEQA guidelines.  If a project is  
          not exempt from CEQA, an initial study is prepared to determine  
          whether a 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,  
          then 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 an 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.

          If a mitigation measure would cause one or more significant  
          effects in addition to those that would be caused by the  
          proposed project, the effects of the mitigation measure must be  
          discussed but in less detail than the significant effects of the  
          proposed project.

           Revising infill provisions  .  SB 1925 (Sher, Chapter 1039,  

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          Statutes of 2002), consolidated provisions relating to housing,  
          established a residential infill exemption, revised affordable  
          housing exemptions, and revised certain definitions, terms and  
          conditions.

          The SB 1925 residential infill exemption applies if certain  
          conditions are met (e.g., project site is not more than four  
          acres, project does not contain more than 100 residential units,  
          project promotes higher density development).  Under this  
          exemption, "residential" is either: a) residential units only;  
          or b) residential units and primarily neighborhood-serving  
          goods, services, or retail uses that do not exceed 15% of the  
          total project floor area.

          SB 375 (Steinberg, Chapter 728, Statutes of 2008), contains  
          provisions in CEQA for certain projects that are consistent with  
          a sustainable communities strategy or alternative planning  
          strategy, including a provision where a residential or mixed-use  
          project consists of at least 75% of the total building square  
          footage for residential use.  By increasing the SB 1925  
          residential infill exemption percentage from 15% to 25% for the  
          allowable non-residential uses, this bill makes this provision  
          more consistent with the percentage specified under SB 375.

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

           SUPPORT  :   (Verified  1/21/14)

          American Planning Association, California Chapter
          California Building Industry Association
          California Business Properties Association
          California Chamber of Commerce
          California State Association of Counties
          Urban Counties Caucus

           ARGUMENTS IN SUPPORT  :    According to the author, "Over the last  
          decade, smart growth planning principles have continued to  
          encourage the integration of residents' day-to-day needs within  
          close proximity of those same residences.  This type of design  
          encourages lower vehicle miles traveled (VMT) due to local  
          residents' ability to access these services by walking or biking  
          instead of traveling by car.  Lowering VMT improves air quality,  
          reduces greenhouse gas emissions, lessens the need for new roads  

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          and extends the life of existing roads.  One method pursued by  
          many local jurisdictions to implement these VMT-reducing  
          policies in an urbanized setting is to encourage building design  
          that incorporates ground-floor neighborhood-servicing uses on  
          the bottom floor, with residential housing on the floors above.   
          This means that for projects using this design, the current 15%  
          limit for neighborhood-serving uses confines the use of this  
          exemption to only those projects that are at least seven stories  
          tall.  This is much taller than many jurisdictions allow, even  
          though the project would otherwise meet all other infill 
          and environmental review requirements.  An increase to 25% of  
          the total building square footage would allow for a four-story  
          project of this type to meet the exemption requirements."

          RM:nl  1/22/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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