BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 674
                                                                  Page  1

          Date of Hearing:   August 6, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   SB 674 (Corbett) - As Amended:  January 6, 2014 

          Policy Committee:                             Natural  
          ResourcesVote:9-0
                       Local Government                       9-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill modifies the CEQA exemption for infill housing  
          projects by changing the definition of residential within the  
          exemption.  Specifically, this bill changes the definition by  
          increasing the maximum retail use from 15% of floor area to 25%  
          of total building square footage.

           FISCAL EFFECT  

          Negligible state costs. 

           COMMENTS  

           1)Purpose and Background.   According to the author, current  
            growth planning principles encourage the integration of  
            services within close proximity of residences.   This design  
            reduces vehicle miles travelled (VMT) due to the ability to  
            access services by walking or biking instead of travelling by  
            car.  Lowering VMT improves air quality, reduces greenhouse  
            gas emissions and reduces the need to repair or build new  
            roads.

            CEQA requires a lead agency 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) unless the project is  
            exempt.

            SB 1925, enacted in 2002, established a CEQA exemption for  
            certain residential projects providing affordable urban or  








                                                                  SB 674
                                                                  Page  2

            agricultural housing, or located on an infill site within an  
            urbanized area, and meeting specified unit and acreage  
            criteria.   Specifically, the current exemption includes:  
           
             a)   Affordable agricultural housing projects of 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.

             c)   Urban infill housing projects of not more than 100 units  
               on a site not more than four acres in size 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.

            The current 15% retail limit confines the use of this  
            exemption to only those projects that are at least seven  
            stories.  An increase to 25% of the total building square  
            footage will allow a four-story project to meet the CEQA  
            exemption requirements.

           1)Prior Legislation.   This bill is identical to the April 1,  
            2013 version of SB 359 (Corbett) approved by this committee  
            last year.  SB 359 was later amended to provide incentives for  
            zero-emission and hybrid vehicles through California Air  
            Resources Board programs.


           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081