BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 674
                                                                  Page  1

          Date of Hearing:  June 25, 2014

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                           K.H. "Katcho" Achadjian, Chair
                   SB 674 (Corbett) - As Amended:  January 6, 2014

           SENATE VOTE  :  33-0
           
          SUBJECT  :  California Environmental Quality Act: exemption:  
          residential infill projects.

           SUMMARY :  Increases the maximum retail use from 15 to 25% in the  
          definition of "residential" and changes the metric in the  
          calculation from "floor area" to "building square footage," for  
          purposes of an existing California Environmental Quality Act  
          (CEQA) exemption for infill housing projects meeting specified  
          criteria. Specifically,  this bill  :   

           EXISTING LAW  :

          1)Requires, under CEQA, 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.

          2)Includes, under CEQA, various statutory exemptions, as well as  
            categorical exemptions in the CEQA guidelines.

          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, as follows:

             a)   Affordable agricultural housing projects not more than  
               45 units within a city, or 20 units within an agricultural  
               zone, on a site not more than five acres in size;

             b)   Affordable urban housing projects not more than 100  
               units on a site not more than five acres in size; and,

             c)   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.  Among other  
               criteria, retail uses may not exceed 15% of the total floor  
               area of these projects.








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          4)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.

           FISCAL EFFECT  :   According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible costs.

           
          COMMENTS  :   

           1)Background on CEQA  .  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.

            SB 1925 (Sher), Chapter 1039, Statutes of 2002, exempts from  
            CEQA certain residential projects providing affordable urban  
            or agricultural housing, or located on an infill site within  








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            an urbanized area, and meeting specified unit and acreage  
            criteria.  The stated intent of the Legislature in enacting  
            those provisions included "creating a streamlined procedure  
            for agricultural employee housing, affordable housing, and  
            urban infill housing projects that do not have an adverse  
            effect on the environment."

           2)Purpose of this bill  .  This bill modifies the definition of  
            "residential" for purposes of an existing CEQA exemption for  
            infill housing projects.  First, the bill increases the  
            maximum retail use from 15 to 25%.  Second, the bill changes  
            the metric in the calculation in that definition from "floor  
            area" to "building square footage."
             
             This bill is author-sponsored.

           3)Author's statement  .  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 (GHG) emissions, lessens  
            the need for new roads 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-serving 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."

           4)Arguments in support  .  Supporters argue that this bill would  
            make it easier for cities to pursue infill projects, which are  
            critically important in order to meet SB 375 and other land  
            use and housing laws mandated by the state.








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           5)Arguments in opposition  .  None on file.

           6)Double-referral  .  This bill was heard by the Natural Resources  
            Committee on June 16, 2014, where it passed with a 9-0 vote.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          American Planning Association, California Chapter
          Association of California Cities - Orange County
          California Building Industry Association
          California Business Properties Association
          California Chamber of Commerce
          City of Brea
          California Retailers Association
          California State Association of Counties
          Urban Counties Caucus
           
            Opposition 
           
          None on file

           Analysis Prepared by  :    Debbie Michel / L. GOV. / (916)  
          319-3958