The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.

CEQA exempts from its requirements a residential project on an urbanized infill site that meets certain requirements, including that the site of the project is not more than 4 acres in total area.

This bill would expand the exemption by increasing the size of a residential project that would qualify for the exemption to include a project of not more than 5 acres in total area. The bill would require a lead agency approving an exempt residential project on an urbanized infill site to file a notice of exemption with the Office of Planning and Research, as specified.

Because the bill would increase the number of residential projects that would qualify for the exemption and would require lead agencies to file notices of exemption with the Office of Planning and Research, thereby increasing the duties of a local agency, it would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Date of Hearing: May 10, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

ABPCA Bill Id:AB 1318

Author:(Luz Rivas) – As Introduced Ver:February 16, 2023

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

SUMMARY:

This bill increases the site limit, from four acres to five acres, for purposes of an existing California Environmental Quality Act (CEQA) exemption for certain urban infill housing projects and requires the lead agency to file a notice of exemption (NOE) with the Office of Planning and Research (OPR).

FISCAL EFFECT:

Negligible state costs.

COMMENTS:

1) Purpose. According to the author, “AB 1318 provides a modest increase in the scope of an existing CEQA exemption for infill housing projects, making the acreage limit for this exemption the same as other existing CEQA exemptions for affordable and farmworker housing.”

2) 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, the lead agency prepares an initial study to determine whether the project may have a significant effect on the environment. If the initial study shows the project would not have a significant effect on the environment, the lead agency must prepare a negative declaration. If the initial study shows the project may have a significant effect, the lead agency must prepare an Environmental Impact Report (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 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.”

The change made by this bill has been recommended by the American Planning Association and other CEQA practitioners to make the site limit for the urban infill exemption consistent with the five-acre limits that apply to the other SB 1925 exemptions for affordable and farmworker housing.

Analysis Prepared by: Nikita Koraddi / APPR. / (916) 319-2081

Date of Hearing: April 26, 2023

ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT

Cecilia Aguiar-Curry, Chair

ABPCA Bill Id:AB 1318 (

Author:Luz Rivas) – As Introduced Ver:February 16, 2023

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

SUMMARY: Increases the site limit from four acres to five acres for purposes of an existing California Environmental Quality Act (CEQA) exemption for urban infill housing projects meeting specified criteria. Requires the lead agency to file a notice of exemption (NOE) with the Office of Planning and Research (OPR).

EXISTING LAW:

1. Requires, pursuant to 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 (Public Resources Code (PRC) §21000, et seq.).
2. Exempts from CEQA specified residential housing projects which meet detailed criteria established to ensure the project does not have a significant effect on the environment, including:
   
   1. 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.
      
   2. Urban affordable housing projects of not more than 100 units on a site not more than five acres in size.
      
   3. Urban infill housing projects of 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 (PRC §21159.20-21159.24).

FISCAL EFFECT: This bill is keyed fiscal and contains a state-mandated local program.

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.

1. Environmental Review of Housing Development Projects. CEQA includes various statutory exemptions, as well as categorical exemptions in the CEQA Guidelines adopted by the OPR for housing projects. A CEQA exemption provides a tremendous benefit to property owners, developers, local governments and other parties involved in the approval of a project as it allows for the project to be completed in an expedited fashion and can insulate the project from CEQA lawsuits. In light of the state’s ongoing housing crisis, the Legislature has created several exemptions to CEQA that are designed to increase the production of housing. The protection of resources afforded by CEQA is not exempted lightly. The Legislature balances the risk of allowing projects to proceed without a full environmental review by limiting exemptions to projects that comply with scores of objective standards and criteria. These standards and criteria are an expression of the state’s values and ensure that exempt projects do not result in harm to public health and safety and the environment.
2. Bill Summary and Author’s Statement. According to the author, “AB 1318 provides a modest increase in the scope of an existing CEQA exemption for infill housing projects, making the acreage limit for this exemption the same as other existing CEQA exemptions for affordable and farmworker housing.”

This bill increases the size limit for the urban infill exemption from four acres to five acres and requires the lead agency for one of these projects to file an NOE with OPR.

This bill is sponsored by the author.

1. Previous Legislation. 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 an urbanized area, and meeting specified unit and acreage criteria.
2. Arguments in Support. The California Apartment Association writes in support, “AB 1318 provides a modest increase in the scope of an existing CEQA exemption for infill housing projects, making the acreage limit for this exemption the same as other existing CEQA exemptions for affordable and farmworker housing.”
3. Arguments in Opposition. None on file.
4. Double-Referral. This bill was double-referred to the Natural Resources Committee, where it passed on a 11-0 vote on April 17, 2023.

REGISTERED SUPPORT / OPPOSITION:

Support

The California Apartment Association

Opposition

None on file

Analysis Prepared by: Hank Brady / L. GOV. / (916) 319-3958

Date of Hearing: April 17, 2023

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Luz Rivas, Chair

ABPCA Bill Id:AB 1318 (

Author:Luz Rivas) – As Introduced Ver:February 16, 2023

SUBJECT: California Environmental Quality Act: exemption: residential projects

SUMMARY: Increases the site limit from four acres to five acres for purposes of an existing California Environmental Quality Act (CEQA) exemption for urban infill housing projects meeting specified criteria. Requires the lead agency to file a notice of exemption (NOE) with the Office of Planning and Research (OPR).

EXISTING LAW:

1. CEQA 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. (Public Resources Code (PRC) 21000, et seq.)
2. Exempts from CEQA specified residential housing projects which meet detailed criteria established to ensure the project does not have a significant effect on the environment, including:
   
   1. 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;
      
   2. Urban affordable housing projects not more than 100 units on a site not more than five acres in size; and,
      
   3. 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.

(PRC 21159.20-21159.24)

THIS BILL increases the site limit for the urban infill exemption from four acres to five acres and requires the lead agency to file a notice of exemption with OPR.

FISCAL EFFECT: Unknown

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.

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 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.”

The change made by this bill has been previously recommended by the American Planning Association and other CEQA practitioners to make the site limit for the urban infill exemption consistent with the five-acre limits that apply to the other SB 1925 exemptions. The same provision was included in a larger bill, AB 2323 (Friedman), which passed this committee in 2020.

1. Author’s statement:

AB 1318 provides a modest increase in the scope of an existing CEQA exemption for infill housing projects, making the acreage limit for this exemption the same as other existing CEQA exemptions for affordable and farmworker housing.

1. Double referral. This bill has been double-referred to the Assembly Local Government Committee.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file

Opposition

None on file

Analysis Prepared by: Lawrence Lingbloom / NAT. RES. /