Loading...
HomeMy WebLinkAbout19 LEGISLATIVE REPORTS 10-07-08TUSTIN AGENDA REPORT MEETING DATE: COTOBER 7, 2008 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: LEGISLATIVE REPORT -SENATE BILL (SB) 375 SUMMARY: SB 375 generally can be summarized as follows: 1) Requires the Air Resources Board to provide each region with greenhouse gas emission reduction targets for the automobile and light truck sector; 2) Requires a regional transportation plan to include a Sustainable Communities Strategy designed to achieve the targets for greenhouse gas emission reduction; 3) Requires the California Transportation Commission to maintain guidelines for travel demand models; 4) Requires cities and counties, in general, to revise their housing elements every eight years in conjunction with the regional transportation plan and complete any necessary rezonings within a specific time period; and 5) Relaxes CEQA requirements for housing developments that are consistent with a Sustainable Communities Strategy. RECOMMENDATION: That the City Council receive and file. FISCAL IMPACT: On September 30, 2008, Governor Schwarzenegger signed SB 375 (See Attachment D - Press Release). Local jurisdictions that are not in compliance with the adopted sustainable communities strategy will not be eligible for federal and state funding for regional transportation projects. This fiscal impact would be significant. BACKGROUND: Assembly Bill (AB) 32 and Greenhouse Gas (GHG) Emission Reductions In 2006, the Legislature enacted AB 32 (Nunez), Chapter 488, the Global Warming Act of 2006, which requires the Air Resources Board (ARB) to establish a statewide greenhouse gas emissions limit such that by 2020 California reduce its greenhouse gas emissions to the level they were in 1990. Thereafter, the ARB must adopt the maximum feasible and cost-effective reduction in greenhouse gas emissions for sources subject to City Council Report SB 375 October 7, 2008 Page 2 the Act. One of the potential strategies for reducing greenhouse gas emissions is to promote more compact land use that reduces the number and length of vehicle trips. In response to AB 32, Senator Steinberg proposed SB 375. SB 375 requires the ARB, by September 30, 2010, to provide each region that has a Metropolitan Planning Organization or MPO (for Orange County, Southern California Association of Government or SCAG is the MPO for the southern California region) with greenhouse gas emission reduction targets for the automobile and light truck sector for 2020 and 2035, respectively. With respect to greenhouse gas emission reduction targets, SB 375 specifically requires the following: • Requires the ARB, no later than January 31, 2009, to appoint a Regional Targets Advisory Committee (RTAC), as specified, to recommend factors to be considered and methodologies to be used for setting greenhouse gas emission reduction targets for the regions. • Requires the RTAC to transmit its recommended factors and methodologies to the ARB no later than December 31, 2009. • Requires the ARB, prior to setting the targets for a region, to exchange technical information with the MPO, the Department of Transportation (Caltrans), and the local air district. • Allows an MPO to recommend a target for the region. • Requires the ARB to release draft greenhouse gas emission reduction targets for each affected region by June 30, 2010 and final targets by September 30, 2010 for the automobile and light truck sector for 2020 and 2035, respectively. • Requires the ARB, after exchanging technical information with Caltrans, the MPOs, local governments, and affected air districts and engaging in a consultative process with public and private stakeholders, to update the regional greenhouse gas emission reduction targets every eight (8) years consistent with each MPO's timeframe for updating its regional transportation plan under federal law until 2050. Regional Transportation Plan Current law requires the California Transportation Commission (CTC) to adopt the State Transportation Improvement Plan (STIP), which lists all capital improvement projects that are expected to receive an allocation of state transportation funds from CTC during the following five fiscal years. The STIP includes both the Interregional Transportation Improvement Program (ITIP) and the Regional Transportation Improvement Programs (RTIPs) developed by federally-designated MPOs. Seventy- five (75) percent of STIP funding is programmed by the regions through the RTIPs. Twenty-five (25) percent of STIP funding is programmed by Caltrans through the ITIP. City Council Report SB 375 October 7, 2008 Page 3 Current law also requires the MPOs to adopt Regional Transportation Plans (RTPs) directed at achieving a coordinated and balanced regional transportation system, including, but not limited to, mass transportation, highway, railroad, maritime, bicycle, pedestrian, goods movement, and aviation facilities and services. The RTP must contain a policy element, an action element, and a financial element and is the source for projects programmed in the RTIP. SB 375 requires that an RTP include a Sustainable Communities Strategy (SCS) designed to achieve the ARB targets for greenhouse gas emission reduction and that the SCS and all other elements of the RTP be internally consistent. With respect to the RTP, SB 375 specifically: 1) Requires that an SCS: ^ Identify the general location of uses, residential densities, and building intensities within the region. ^ Consider the state housing goals and identify areas within the region sufficient to house all economic segments of the population over the course of the planning period, including areas sufficient to house the eight-year projection of the regional housing need (RHNA) for the region. ^ Identify a transportation network to service the transportation needs of the region. ^ Set forth a forecasted development pattern for the region, which, when integrated with the transportation network and other transportation measures and policies, will reduce the greenhouse gas emissions from automobiles and light trucks to achieve, if feasible, the greenhouse gas emission reduction targets approved by ARB. 2) Requires the MPO, if an SCS is unable to reach the ARB target, to prepare an Alternative Planning Strategy (APS) identifying the principal impediments to achieving the targets through the SCS and showing how the ARB targets would be achieved through alternative development patterns, infrastructure, or additional transportation measures or policies. The APS shall be a separate document from the RTP. 3) States that an SCS or APS does not supersede or interfere with the land use authority of cities and counties, does not require a city or county's land use policies and regulations to be consistent with the SCS or APS, and does not limit ARB's authority under any other provision of law. 4) Provides that an SCS or APS shall not affect any transportation project programmed for funding on or before December 31, 2011, if it is contained in the 2007 or 2009 STIP, funded through the Transportation Congestion Relief Program, or specifically listed in a local transportation sales tax ballot measure approved prior to December 31, 2008. Nor does an SCS or APS require a transportation sales tax authority to change the funding allocations approved by the voters for City Council Report SB 375 October 7, 2008 Page 4 categories of transportation projects in a sales tax measure adopted prior to December 31, 2010. Housing Element The Planning, Zoning, and Development Law requires each city, county, or city and county to prepare and adopt a general plan for its jurisdiction that contains certain mandatory elements, including a housing element. Cities and counties must revise their housing elements every five years. Before each revision, each community is assigned its fair share of housing for each income category through the regional housing needs assessment (RHNA) process. A housing element must identify and analyze existing and projected housing needs, identify adequate sites with appropriate zoning to meet its share of the RHNA. To the extent that a city or county does not have adequate sites within its existing inventory of residentially zoned land, then it must adopt a program to rezone land at appropriate densities to accommodate the jurisdiction's housing need for all income groups. Each year, every city and county must also submit to HCD a housing element progress report that includes the number of housing units constructed by income category and the progress in implementing programs within the element. SB 375 would require cities and communities to review their housing elements every eight (8) years in conjunction with the region's RTP, identify in the housing element specific sites to be rezoned, and complete any necessary rezonings within a time period of three (3) years. With respect to the Housing Element, SB 375 specifically mandates the following: • Changes the RHNA cycle from five (5) years to (8) eight years for regions that adopt an RTP every four years (applicable to Southern California region). • Allows a COG to request that HCD use population and household forecast assumptions from the region's RTP. • Requires that a COG's allocation of the RHNA to individual cities and counties be consistent with the SCS, provided that the aggregate regional RHNA is maintained and that every jurisdiction receives an allocation of housing need for very low- and low-income households. • Requires a city or county to establish for each program in its housing element a timeline for implementation, such that there will be beneficial impacts of the program within the planning period. • Requires a city or county to include in its annual housing element progress reports a description of actions taken by the local government to implement the element's programs by the specified deadlines. City Council Report SB 375 October 7, 2008 Page 5 • Requires a city or county, to the extent that rezoning of sites is needed to accommodate its RHNA allocation, to identify in the housing element the specific sites to be rezoned. • Requires a city or county under an eight-year planning period to complete the rezoning of any sites needed to accommodate the RHNA no later than three (3) years. • Allows the deadline to complete rezonings to be extended by one (1) year if the local government has completed rezonings at densities sufficient to accommodate at least 75% of the RHNA need for the very low and low-income categories and makes specified findings. • Provides that a city or county that fails to complete the rezonings by the deadline may only disapprove any housing development located on a site required to be rezoned that is at least 49% affordable to low- and moderate-income households, by making a finding that the housing development project would have a specific, adverse impact upon the public health or safety and there is no feasible method to satisfactorily mitigate or avoid the adverse impact. This provision is known as the builder's remedy. • Permits the developer or any interested person to bring a court action to enforce the builder's remedy and places the burden of proof on the city or county. Permits any interested person to bring an action to enforce the requirements and deadlines associated with rezonings or the removal of governmental constraints at any time during the planning period. • Generally requires all regions on an eight-year housing element cycle to begin the next planning period no later than 18 months after the adoption of the first RTP to be adopted after September 30, 2010. California Environmental Quality Act (CEQA) CEQA requires that local government conduct an analysis of the environmental impacts associated with projects, including private housing developments subject to a discretionary review. In cases where a full analysis is required, the local government must certify an environmental impact report (EIR). CEQA provides for limited statutory and categorical exemptions for qualified infill housing or mixed-use housing developments, unless the project creates aproject-specific impact or leads to a significant cumulative impact. CEQA also allows local governments to adopt specific plans and establishes standards and criteria by which development will proceed. Within a specific plan area, any residential development project that is consistent with a specific plan for which an EIR City Council Report SB 375 October 7, 2008 Page 6 has been certified is exempt from further review under CEQA unless substantial changes have occurred or new information has become available since the EIR was certified. SB 375 would exempt a transit priority project from CEQA when the project meets certain requirements and is declared by the legislative body of a local jurisdiction to be a Sustainable Communities Project. Specifically, SB 375 would mandate the following: 1) Defines a "transit priority project" as one that: • Is consistent with the general land use designation, density, building intensity, and applicable policies specified for the project area in either an approved SCS or APS, if implemented, achieve the greenhouse gas emission reduction targets. • Contains at least 50% residential use, based on total building square footage and, if the project contains between 26% and 50% nonresidential uses, a floor area ratio of not less than 0.75; • Provides a minimum net density of at least 20 dwelling units per acre; and, • Is located within one-half mile of an existing or planned major transit stop or high-quality transit corridor included in the RTP. 2) Exempts a transit priority project from CEQA if all of the following conditions are met: • The project site is not more than eight (8) acres in total area. • The project does not contain more than 200 residential units. • The project does not result in any net loss in the number of affordable housing units. • The project does not include any single level building that exceeds 75,000 square feet. • Any applicable mitigation measures or performance standards set forth in prior environmental impact reports will be incorporated into the project. • The project is determined not to conflict with nearby operating industrial uses. • The project and other approved projects can be adequately served by existing utilities, and the project applicant has committed to pay all applicable in-lieu or development fees. • The site of the project does not contain wetlands or riparian areas and does not have significant value as a wildlife habitat, and the transit priority project does not harm any protected species. • The project is not located on developed open space. • The project does not have a significant impact on historical resources. City Council Report SB 375 October 7, 2008 Page 7 • The site of the project is not included on any list of contaminated facilities and sites. • A preliminary endangerment assessment has been prepared for the site and any hazardous substances have been mitigated to a level of insignificance. • The site is not subject to unusually high risk of fire or explosion from materials stored or .used on nearby properties, risk of an excessive public health exposure, or unmitigated wildland fire, seismic, landslide, or flood risk. • The project provides one of the following: 1) At least 20 percent of the units affordable to moderate income households, at least 10 percent of units affordable to low income households, or at least 5 percent of units affordable to very low income households, or the developer will pay an equivalent amount of in-lieu fees; or 2) public open space of at least five acres per 1,000 residents of the project. 3) Provides that a transit priority project that has incorporated all feasible mitigation measures and performance standards set forth in prior applicable EIRs does not need to analyze off-site alternatives to the transit priority project. 4) Provides that any residential development, or any mixed-use development that devotes at least 75% of the square footage to residential uses, that is consistent with an ARB-approved SCS or APS and incorporates the mitigation measures required by an applicable prior environmental document need not describe or discuss in any CEQA document growth inducing impacts, any project specific or cumulative vehicle impacts on global warming or the regional transportation network, or a reduced residential density alternative to vehicle impacts. Cost Reimbursement 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. ANALYSIS Purpose of the SB 375 According to the author, this bill will help implement AB 32 by aligning planning for housing, land use, transportation, and greenhouse gas emissions for the 17 MPOs in the state. The environmental organizations sponsoring this legislation maintain that AB 32 goals cannot be met without changes in land use. Fuel-efficient cars and low-carbon fuels can reduce greenhouse gas emissions, but reducing driving by building housing closer to jobs, schools, and shopping venues will also be necessary. City Council Report SB 375 October 7, 2008 Page 8 This bill seeks to change land use practices in California by giving each region a greenhouse gas emission reduction target and requiring the regions to adopt regional growth strategies that can achieve these targets. The regions will then assign housing needs to cities and counties under housing element law in a manner consistent with the growth strategy and ensure that regional transportation spending plans are consistent with the strategy. While local governments are not required to implement the growth strategy directly, they will be required to rezone land needed to accommodate their housing needs within three (3) years of the beginning of the housing element planning period. Lastly, the bill facilitates infill development by granting CEQA relief to housing developments that are consistent with the growth strategy. Concerns with SB 375 The language proposed in SB 375 is of concern for the following reasons: • SB 375 combines RTP, Housing Element, and GHG emission and Climate Change processes and requirements. The bill loads too much of the process for developing a regional planning scenario within the RTP, thus creating convoluted local mandate programs and updates that cities are responsible to implement. • RTPs and SCS (which SCAG is promoting) are two distinct documents. RTPs are conduits for federal transportation funding, not overarching planning documents that try to resolve the regions' other planning related issues i.e. housing needs, CEQA, local land use authority, etc. The SCS should forecast realistic development and should be endorsed by local government before being incorporated into the RTP. • SB 375 states that the City's General Plan is not required to be consistent with the regional SCS. This suggests that adoption of the SCS is optional. However, since each city is mandated to update the housing element to meet its share of RHNA, and RHNA is subject to consistency with the SCS, each city is indirectly forced to adopt the SCS and therefore not optional. • SB 375 mandates that transportation projects be consistent with the SCS to receive State funding which could be problematic if the City does not endorse or agree with adopted the SCS. • The SCS can identify a growth pattern fora region, but individual local governments must retain full discretion over local land use decisions. • The bill requires cities to rezone properties within three (3) years. This three- year requirement is not realistic and imposes burdens on local governments especially during the uncertainty of local housing market. In addition, without proper legal protection, cities cannot impose zone changes involving multiple property owners without proper due process. City Council Report SB 375 October 7, 2008 Page 9 • The bill does not include a funding source for either planning or funding the infill infrastructure that will be necessary to facilitate the type of infill necessary to reduce GHG emissions. The bill also does not include necessary funding for necessary infrastructure improvements to accommodate increase density, intensity, and capacity as suggested by the Bill. • 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. Benefits of SB 375 • SB 375 would align RHNA and RTP processes and extend the time frame for updating housing element to 8 years which is more reasonable considering the time and costs burden by each city in preparing a Housing Element Update. • While the exemption might prove limited (must meet certain definition), CEQA streamlining is available for projects; for example, amixed-use project that is consistent with the sustainable communities plan would not have to undergo analysis of greenhouse gas emissions, cumulative traffic impacts or growth- inducing impacts, and a reduced density alternative would not be required. Request for Veto Finally, on September 10, 2008, the League of California Cities, Orange County Division sent letters to all mayors and council members and Governor Schwarzenegger requesting a veto to SB 375 (Attachment B). In general, orange county cities believe that while the bill requires local agencies to plan for greenhouse gas (GHG) reduction, the bill provides regional planning agencies the ability to override local decisions. Moreover, the bill encourages infill development, yet does not provide money for the related infrastructure improvements that are necessary to support such development. Justina Willkom Scott Reekstin Principal Planner Senior Planner Elizabeth A. Binsack Community Development Director City Council Report SB 375 October 7, 2008 Page 10 Attachments: A. SB 375 B. League of California Cities Request for Veto - SB 375 C. SCAG - SB 375 Point Summary D. Office of the Governor Press Release ATTACHMENT A SB 375 Senate Bill No. 375 Passed the Senate August 30, 2008 Secretary of the Senate Passed the Assembly August 25, 2008 Chief Clerk of the Assembly This bill was received by the Governor this day of , 2008, at o'clock M. Private Secretary of the Governor SB 375 - 2 - CHAPTER An act to amend Sections 65080, 65400, 65583, 65584.01, 65584.02, 65584.04, 65587, and 65588 of, and to add Sections 14522.1, 14522.2, and 65080.01 to, the Government Code, and to amend Section 21061.3 of, to add Section 21159.28 to, and to add Chapter 4.2 (commencing with Section 21155) to Division 13 of, the Public Resources Code, relating to environmental quality. LEGISLATIVE COUNSEL'S DIGEST SB 375, Steinberg. Transportation planning: travel demand models: sustainable communities strategy: environmental review. (1) Existing law requires certain transportation planning activities by the Department of Transportation and by designated regional transportation planning agencies, including development of a regional transportation plan. Certain of these agencies are designated under federal law as metropolitan planning organizations. Existing law authorizes the California Transportation Commission, in cooperation with the regional agencies, to prescribe study areas for analysis and evaluation. This bill would require the commission to maintain guidelines, as specified, for travel demand models used in the development of regional transportation plans by metropolitan planning organizations. The bill would require the commission to consult with various agencies in this regard, and to form an advisory committee and to hold workshops before amending the guidelines. This bill would also require the regional transportation plan for regions of the state with a metropolitan planning organization to adopt a sustainable communities strategy, as part of its regional transportation plan, as specified, designed to achieve certain goals for the reduction of greenhouse gas emissions from automobiles and light trucks in a region. The bill would require the State Air Resources Board, working in consultation with the metropolitan planning organizations, to provide each affected region with greenhouse gas emission reduction targets for the automobile and light truck sector for 2020 and 2035 by September 30, 2010, to appoint a Regional Targets Advisory Committee to recommend factors and methodologies for setting those targets, and to update 86 3 - SB 375 those targets every 8 years. The bill would require certain transportation planning and programming activities by the metropolitan planning organizations to be consistent with the sustainable communities strategy contained in the regional transportation plan, but would state that certain transportation projects programmed for funding on or before December 31, 2011, are not required to be consistent with the sustainable communities strategy process. To the extent the sustainable communities strategy is unable to achieve the greenhouse gas emission reduction targets, the bill would require affected metropolitan planning organizations to prepare an alternative planning strategy to the sustainable communities strategy showing how the targets would be achieved through alternative development patterns, infrastructure, or additional transportation measures or policies. The bill would require the State Air Resources Board to review each metropolitan planning organization's sustainable communities strategy and alternative planning strategy to determine whether the strategy, if implemented, would achieve the greenhouse gas emission reduction targets. The bill would require a strategy that is found to be insufficient by the state board to be revised by the metropolitan planning organization, with a minimum requirement that the metropolitan planning organization must obtain state board acceptance that an alternative planning strategy, if implemented, would achieve the targets. The bill would state that the adopted strategies do not regulate the use of land and are not subject to state approval, and that city or county land use policies, including the general plan, are not required to be consistent with the regional transportation plan, which would include the sustainable growth strategy, or the alternative planning strategy. The bill would also require the metropolitan planning organization to hold specified informational meetings in this regard with local elected officials and would require a public participation program with workshops and public hearings for the public, .among other things. The bill would enact other related provisions. Because the bill would impose additional duties on local agencies, it would impose astate-mandated local program. (2) The Planning and Zoning Law requires each city, county, or city and county to prepare and adopt a general plan for its jurisdiction that contains certain mandatory elements, including a housing element. Existing law requires the housing element to 86 SB 375 - 4 - identify the existing and projected housing needs of all economic segments of the community. Existing law requires the housing element, among other things, to contain a program which sets forth a 5-year schedule of actions of the local government to implement the goals and objectives of the housing element. Existing law requires the program to identify actions that will be undertaken to make sites available to accommodate various housing needs, including, in certain cases, the rezoning of sites to accommodate 100% of the need for housing for very low and low-income households. This bill would instead require the program to set forth a schedule of actions during the planning period, as defined, and require each action to have a timetable for implementation. The bill would generally require rezoning of certain sites to accommodate certain housing needs within specified times, with an opportunity for an extension time in certain cases, and would require the local government to hold a noticed public hearing within 30 days after the deadline for compliance expires. The bill would, under certain conditions, prohibit a local government that fails to complete a required rezoning within the timeframe required from disapproving a housing development project, as defined, or from taking various other actions that would render the project infeasible, and would allow the project applicant or any interested person to bring an action to enforce these provisions. The bill would also allow a court to compel a local government to complete the rezoning within specified times and to impose sanctions on the local government if the court order or judgment is not carried out, and would provide that in certain cases the local government shall bear the burden of proof relative to actions brought to compel compliance with specified deadlines and requirements. Existing law requires each local government to review and revise its housing element as frequently as appropriate, but not less than every 5 years. This bill would extend that time period to 8 years for those local governments that are located within a region covered by a metropolitan planning organization in a nonattainment region or by a metropolitan planning organization or regional transportation planning agency that meets certain requirements. The bill would also provide that, in certain cases, the time period would be reduced to 4 years or other periods, as specified. 86 - 5 - SB 375 The bill would enact other related provisions. Because the bill would impose additional duties on local governments relative to the housing element of the general plan, it would thereby impose a state-mandated local program. (3) 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 (EIR) 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. This bill would exempt from CEQA a transit priority project, as defined, that meets certain requirements and that is declared by the legislative body of a local jurisdiction to be a sustainable communities project. The transit priority project would need to be consistent with a metropolitan planning organization's sustainable communities strategy or an alternative planning strategy that has been determined by the State Air Resources Board to achieve the greenhouse gas emission reductions targets. The bill would provide for limited CEQA review of various other transit priority projects. The bill, with respect to other residential or mixed-use residential projects meeting certain requirements, would exempt the environmental documents for those projects from being required to include certain information regarding growth inducing impacts or impacts from certain vehicle trips. The bill would also authorize the legislative body of a local jurisdiction to adopt traffic mitigation measures for transit priority projects. The bill would exempt a transit priority project seeking a land use approval from compliance with additional measures for traffic impacts, if the local jurisdiction has adopted those traffic mitigation measures. (4) 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. 86 SB 375 - 6 This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. The people of the State of California do enact as follows: SECTION 1. The Legislature finds and declares all of the following: (a) The transportation sector contributes over 40 percent of the greenhouse gas emissions in the State of California; automobiles and light trucks alone contribute almost 30 percent. The transportation sector is the single largest contributor of greenhouse gases of any sector. (b) In 2006, the Legislature passed and the Governor signed Assembly Bill 32 (Chapter 488 of the Statutes of 2006; hereafter AB 32), which requires the State of California to reduce its greenhouse gas emissions to 1990 levels no later than 2020. According to the State Air Resources Board, in 1990 greenhouse gas emissions from automobiles and light trucks were 108 million metric tons, but by 2004 these emissions had increased to 135 million metric tons. (c) Greenhouse gas emissions from automobiles and light trucks can be substantially reduced by new vehicle technology and by the increased use of low carbon fuel. However, even taking these measures into account, it will be necessary to achieve significant additional greenhouse gas reductions from changed land use patterns and improved transportation. Without improved land use and transportation policy, California will not be able to achieve the goals of AB 32. (d) In addition, automobiles and light trucks account for 50 percent of air pollution in California and 70 percent of its consumption of petroleum. Changes inland use and transportation policy, based upon established modeling methodology, will provide significant assistance to California's goals to implement the federal and state Clean Air Acts and to reduce its dependence on petroleum. (e) Current federal law requires regional transportation planning agencies to include a land use allocation in the regional transportation plan. Some regions have engaged in a regional 86 - 7 - SB 375 "blueprint" process to prepare the land use allocation. This process has been open and transparent. The Legislature intends, by this act, to build upon that successful process by requiring metropolitan planning organizations to develop and incorporate a sustainable communities strategy which will be the land use allocation in the regional transportation plan. (f) The California Environmental Quality Act (CEQA) is California's premier environmental statute. New provisions of CEQA should be enacted so that the statute encourages developers to submit applications and local governments to make land use decisions that will help the state achieve its climate goals under AB 32, assist in the achievement of state and federal air quality standards, and increase petroleum conservation. (g) Current planning models and analytical techniques used for making transportation infrastructure decisions and for air quality planning should be able to assess the effects of policy choices, such as residential development patterns, expanded transit service and accessibility, the walkability of communities, and the use of economic incentives and disincentives. (h) The California Transportation Commission has developed guidelines for travel demand models used in the development of regional transportation plans. This act assures the commission's continued oversight of the guidelines, as the commission may update them as needed from time to time. (i) California local governments need a sustainable source of funding to be able to accommodate patterns of growth consistent with the state's climate, air quality, and energy conservation goals. SEC. 2. Section 14522.1 is added to the Government Code, to read: 14522.1. (a) (1) The commission, in consultation with the department and the State Air Resources Board, shall maintain guidelines for travel demand models used in the development of regional transportation plans by federally designated metropolitan planning organizations. (2) Any revision of the guidelines shall include the formation of an advisory committee that shall include representatives of the metropolitan planning organizations, the department, organizations knowledgeable in the creation and use of travel demand models, local governments, and organizations concerned with the impacts of transportation investments on communities and the environment. 86 SB 375 - 8 - Before amending the guidelines, the commission shall hold two workshops on the guidelines, one in northern California and one in southern California. The workshops shall be incorporated into regular commission meetings. (b) The guidelines shall, at a minimum and to the extent practicable, taking into account such factors as the size and available resources of the metropolitan planning organization, account for all of the following: (1) The relationship between land use density and household vehicle ownership and vehicle miles traveled in a way that is consistent with statistical research. (2) The impact of enhanced transit service levels on household vehicle ownership and vehicle miles traveled. (3) Changes in travel and land development likely to result from highway or passenger rail expansion. (4) Mode splitting that allocates trips between automobile, transit, carpool, and bicycle and pedestrian trips. If a travel demand model is unable to forecast bicycle and pedestrian trips, another means may be used to estimate those trips. (5) Speed and frequency, days, and hours of operation of transit service. SEC. 3. Section 14522.2 is added to the Government Code, to read: 14522.2. (a) A metropolitan planning organization shall. disseminate the methodology, results, and key assumptions of whichever travel demand models it uses in a way that would be useable and understandable to the public. (b) Transportation planning agencies other than those identified in paragraph (1) of subdivision (a) of Section 14522.1, cities, and counties are encouraged, but not required, to utilize travel demand models that are consistent with the guidelines in the development of their regional transportation plans. SEC. 4. Section 65080 of the Government Code is amended to read: 65080. (a) Each transportation planning agency designated under Section 29532 or 29532.1 shall prepare and adopt a regional transportation plan directed at achieving a coordinated and balanced regional transportation system, including, but not limited to, mass transportation, highway, railroad, maritime, bicycle, pedestrian, goods movement, and aviation facilities and services. The plan 86 - 9 - SB 375 shall be action-oriented and pragmatic, considering both the short-term and long-term future, and shall present clear, concise policy guidance to local and state officials. The regional transportation plan shall consider factors specified in Section 134 of Title 23 of the United States Code. Each transportation planning agency shall consider and incorporate, as appropriate, the transportation plans of cities, counties, districts, private organizations, and state and federal agencies. (b) The regional transportation plan shall be an internally consistent document and shall include all of the following: (1) A policy element that describes the transportation issues in the region, identifies and quantifies regional needs, and describes the desired short-range and long-range transportation goals, and pragmatic objective and policy statements. The objective and policy statements shall be consistent with the funding estimates of the financial element. The policy element of transportation planning agencies with populations that exceed 200,000 persons may quantify a set of indicators including, but not limited to, all of the following: (A) Measures of mobility and traffic congestion, including, but not limited to, daily vehicle hours of delay per capita and vehicle miles traveled per capita. (B) Measures of road and bridge maintenance and rehabilitation needs, including, but not limited to, roadway pavement and bridge conditions. (C) Measures of means of travel, including, but not limited to, percentage share of all trips (work and nonwork) made by all of the following: (i) Single occupant vehicle. (ii) Multiple occupant vehicle or carpool. (iii) Public transit including commuter rail and intercity rail. (iv) Walking. (v) Bicycling. (D) Measures of safety and security, including, but not limited to, total injuries and fatalities assigned to each of the modes set forth in subparagraph (C). (E) Measures of equity and accessibility, including, but not limited to, percentage of the population served by frequent and reliable public transit, with a breakdown by income bracket, and 86 SB 375 -10 percentage of all jobs accessible by frequent and reliable public transit service, with a breakdown by income bracket. (F) The requirements of this section may be met utilizing existing sources of information. No additional traffic counts, household surveys, or other sources of data shall be required. (2) A sustainable communities strategy prepared by each metropolitan planning organization as follows: (A) No later than September 30, 2010, the State Air Resources Board shall provide each affected region with greenhouse gas emission reduction targets for the automobile and light truck sector for 2020 and 2035, respectively. (i) No later than January 31, 2009, the state board shall appoint a Regional Targets Advisory Committee to recommend factors to be considered and methodologies to be used for setting greenhouse gas emission reduction targets for the affected regions. The committee shall be composed of representatives of the metropolitan planning organizations, affected air districts, the League of California Cities, the California State Association of Counties, local transportation agencies, and members of the public, including homebuilders, environmental organizations, planning organizations, environmental justice organizations, affordable housing organizations, and others. The advisory committee shall transmit a report with its recommendations to the state board no later than September 30, 2009. In recommending factors to be considered and methodologies to be used, the advisory committee may consider any relevant issues, including, but not limited to, data needs, modeling techniques, growth forecasts, the impacts of regional jobs-housing balance on interregional travel and greenhouse gas emissions, economic and demographic trends, the magnitude of greenhouse gas reduction benefits from a variety of land use and transportation strategies, and appropriate methods to describe regional targets and to monitor performance in attaining those targets. The state board shall consider the report prior to setting the targets. (ii) Prior to setting the targets for a region, the state board shall exchange technical information with the metropolitan planning organization and the affected air district. The metropolitan planning organization may recommend a target for the region. The metropolitan planning organization shall hold at least one public workshop within the region after receipt of the report from the s6 -11- SB 375 advisory committee. The state board shall release draft targets for each region no later than June 30, 2010. (iii) In establishing these targets, the state board shall take into account greenhouse gas emission reductions that will be achieved by improved vehicle emission standards, changes in fuel composition, and other measures it has approved that will reduce greenhouse gas emissions in the affected regions, and prospective measures the state board plans to adopt to reduce greenhouse gas emissions from other greenhouse gas emission sources as that term is defined in subdivision (i) of Section 38505 of the Health and Safety Code and consistent with the regulations promulgated pursuant to the California Global Warming Solutions Act of 2006 (Division 12.5 (commencing with Section 38500) of the Health and Safety Code). (iv) The state board shall update the regional greenhouse gas emission reduction targets every eight years consistent with each metropolitan planning organization's timeframe for updating its regional transportation plan under federal law unti12050. The state board may revise the targets every four years based on changes in the factors considered under clause (iii) above. The state board shall exchange technical information with the Department of Transportation, metropolitan planning organizations, local governments, and affected air districts and engage in a consultative process with public and private stakeholders prior to updating these targets. (v) The greenhouse gas emission reduction targets may be expressed in gross tons, tons per capita, tons per household, or in any other metric deemed appropriate by the state board. (B) Each metropolitan planning organization shall prepare a sustainable communities strategy, subject to the requirements of Part 450 of Title 23 of, and Part 93 of Title 40 of, the Code of Federal Regulations, including the requirement to utilize the most recent planning assumptions considering local general plans and other factors. The sustainable communities strategy shall (i) identify the general location of uses, residential densities, and building intensities within the region; (ii) identify areas within the region sufficient to house all the population of the region, including all economic segments of the population, over the course of the planning period of the regional transportation plan taking into account net migration into the region, population growth, household 86 SB 375 - 12 formation and employment growth; (iii) identify areas within the region sufficient to house an eight-year projection of the regional housing need for the region pursuant to Section 65584; (iv) identify a transportation network to service the transportation needs of the region; (v) gather and consider the best practically available scientific information regarding resource areas and farmland in the region as defined in subdivisions (a) and (b) of Section 65080.01; (vi) consider the state housing goals specified in Sections 65580 and 65581; (vii) set forth a forecasted development pattern for the region, which, when integrated with the transportation network, and other transportation measures and policies, will reduce the greenhouse gas emissions from automobiles and light trucks to achieve, if there is a feasible way to do so, the greenhouse gas emission reduction targets approved by the state board; and (viii) allow the regional transportation plan to comply with Section 176 of the federal Clean Air Act (42 U.S.C. Sec. 7506). Within the jurisdiction of the Metropolitan Transportation Commission, as defined by Section 66502, the Association of Bay Area Governments shall be responsible for clauses (i), (ii), (iii), (v), and (vi), the Metropolitan Transportation Commission shall be responsible for clauses (iv) and (viii); and the Association of Bay Area Governments and the Metropolitan Transportation Commission shall jointly be responsible for clause (vii). (C) In the region served by the multicounty transportation planning agency described in Section 130004 of the Public Utilities Code, a subregional council of governments and the county transportation commission may work together to propose the sustainable communities strategy and an alternative planning strategy, if one is prepared pursuant to subparagraph (H), for that subregional area. The metropolitan planning organization may adopt a framework for a subregional sustainable communities strategy or a subregional alternative planning strategy to address the intraregional land use, transportation, economic, air quality, and climate policy relationships. The metropolitan planning organization shall include the subregional sustainable communities strategy for that subregion in the regional sustainable communities strategy to the extent consistent with this section and federal law and approve the subregional alternative planning strategy, if one is prepared pursuant to subparagraph (H), for that subregional area to the extent consistent with this section. The metropolitan planning 86 13 - SB 375 organization shall develop overall guidelines, create public participation plans pursuant to subparagraph (E), ensure coordination, resolve conflicts, make sure that the overall plan complies with applicable legal requirements, and adopt the plan for the region. (D) The metropolitan planning organization shall conduct at least two informational meetings in each county within the region for members of the board of supervisors and city councils on the sustainable communities strategy and alternative planning strategy, if any. The metropolitan planning organization may conduct only one informational meeting if it is attended by representatives of the county board of supervisors and city council members representing a majority of the cities representing a majority of the population in the incorporated areas of that county. Notice of the meeting shall be sent to the clerk of the board of supervisors and to each city clerk. The purpose of the meeting shall be to present a draft of the sustainable communities strategy to the members of the board of supervisors and the city council members in that county and to solicit and consider their input and recommendations. (E) Each metropolitan planning organization shall adopt a public participation plan, for development of the sustainable communities strategy and an alternative planning strategy, if any, that includes all of the following: (i) Outreach efforts to encourage the active participation of a broad range of stakeholder groups in the planning process, consistent with the agency's adopted Federal Public Participation Plan, including, but not limited to, affordable housing advocates, transportation advocates, neighborhood and community groups, environmental advocates, home builder representatives, broad-based business organizations, landowners, commercial property interests, and homeowner associations. (ii) Consultation with congestion management agencies, transportation agencies, and transportation commissions. (iii) Workshops throughout the region to provide the public with the information and tools necessary to provide a clear understanding of the issues and policy choices. At least one workshop shall be held in each county in the region. For counties with a population greater than 500,000, at least three workshops shall be held. Each workshop, to the extent practicable, shall include urban simulation computer modeling to create visual 86 SB 375 -14 - representations of the sustainable communities strategy and the alternative planning strategy. (iv) Preparation and circulation of a draft sustainable communities strategy and an alternative planning strategy, if one is prepared, not less than 55 days before adoption of a final regional transportation plan. (v) At least three public hearings on the draft sustainable communities strategy in the regional transportation plan and alternative planning strategy, if one is prepared. If the metropolitan transportation organization consists of a single county, at least two public hearings shall be held. To the maximum extent feasible, the hearings shall be in different parts of the region to maximize the opportunity for participation by members of the public throughout the region. (vi) A process for enabling members of the public to provide a single request to receive notices, information, and updates. (F) In preparing a sustainable communities strategy, the metropolitan planning organization shall consider spheres of influence that have been adopted by the local agency formation commissions within its region. (G) Prior to adopting a sustainable communities strategy, the metropolitan planning organization shall quantify the reduction in greenhouse gas emissions projected to be achieved by the sustainable communities strategy and set forth the difference, if any, between the amount of that reduction and the target for the region established by the state board. (H) If the sustainable communities strategy, prepared in compliance with subparagraph (B) or (C), is unable to reduce greenhouse gas emissions to achieve the greenhouse gas emission reduction targets established by the state board, the metropolitan planning organization shall prepare an alternative planning strategy to the sustainable communities strategy showing how those greenhouse gas emission targets would be achieved through alternative development patterns, infrastructure, or additional transportation measures or policies. The alternative planning strategy shall be a separate document from the regional transportation plan, but it may be adopted concurrently with the regional transportation plan. In preparing the alternative planning strategy, the metropolitan planning organization: 86 -15 - SB 375 (i) Shall identify the principal impediments to achieving the targets within the sustainable communities strategy. (ii) May include an alternative development pattern for the region pursuant to subparagraphs (B) to (F), inclusive. (iii) Shall describe how the greenhouse gas emission reduction targets would be achieved by the alternative planning strategy, and why the development pattern, measures, and policies in the alternative planning strategy are the most practicable choices for achievement of the greenhouse gas emission reduction targets. (iv) An alternative development pattern set forth in the alternative planning strategy shall comply with Part 450 of Title 23 of, and Part 93 of Title 40 of, the Code of Federal Regulations, except to the extent that compliance will prevent achievement of the greenhouse gas emission reduction targets approved by the state board. (v) For purposes of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), an alternative planning strategy shall not constitute a land use plan, policy, or regulation, and the inconsistency of a project with an alternative planning strategy shall not be a consideration in determining whether a project may have an environmental effect. (I) (i) Prior to starting the public participation process adopted pursuant to subparagraph (E) of paragraph (2) of subdivision (b) of Section 65080, the metropolitan planning organization shall submit a description to the state board of the technical methodology it intends to use to estimate the greenhouse gas emissions from its sustainable communities strategy and, if appropriate, its alternative planning strategy. The state board shall respond to the metropolitan planning organization in a timely manner with written comments about the technical methodology, including specifically describing any aspects of that methodology it concludes will not yield accurate estimates of greenhouse gas emissions, and suggested remedies. The metropolitan planning organization is encouraged to work with the state board until the state board concludes that the technical methodology operates accurately. (ii) After adoption, a metropolitan planning organization shall submit a sustainable communities strategy or an alternative planning strategy, if one has been adopted, to the state board for review, including the quantification of the greenhouse gas emission 86 SB 375 -16 reductions the strategy would achieve and a description of the technical methodology used to obtain that result. Review by the state board shall be limited to acceptance or rejection of the metropolitan planning organization's determination that the strategy submitted would, if implemented, achieve the greenhouse gas emission reduction targets established by the state board. The state board shall complete its review within 60 days. (iii) If the state board determines that the strategy submitted would not, if implemented, achieve the greenhouse gas emission reduction targets, the metropolitan planning organization shall revise its strategy or adopt an alternative planning strategy, if not previously adopted, and submit the strategy for review pursuant to clause (ii). At a minimum, the metropolitan planning organization must obtain state board acceptance that an alternative planning strategy would, if implemented, achieve the greenhouse gas emission reduction targets established for that region by the state board. (J) Neither a sustainable communities strategy nor an alternative planning strategy regulates the use of land, nor, except as provided by subparagraph (I), shall either one be subject to any state approval. Nothing in a sustainable communities strategy shall be interpreted as superseding the exercise of the land use authority of cities and counties within the region. Nothing in this section shall be interpreted to limit the state board's authority under any other provision of law. Nothing in this section shall be interpreted to authorize the abrogation of any vested right whether created by statute or by common law. Nothing in this section shall require a city's or county's land use policies and regulations, including its general plan, to be consistent with the regional transportation plan or an alternative planning strategy. Nothing in this section requires a metropolitan planning organization to approve a sustainable communities strategy that would be inconsistent with Part 450 of Title 23 of, or Part 93 of Title 40 of, the Code of Federal Regulations and any administrative guidance under those regulations. Nothing in this section relieves a public or private entity or any person from compliance with any other local, state, or federal law. (K) Nothing in this section requires projects programmed for funding on or before December 31, 2011, to be subject to the provisions of this paragraph if they (i) are contained in the 2007 s6 17 - SB 375 or 2009 Federal Statewide Transportation Improvement Program, (ii) are funded pursuant to Chapter 12.49 (commencing with Section 8879.20) of Division 1 of Title 2, or (iii) were specifically listed in a ballot measure prior to December 31, 2008, approving a sales tax increase for transportation projects. Nothing in this section shall require a transportation sales tax authority to change the funding allocations approved by the voters for categories of transportation projects in a sales tax measure adopted prior to December 31, 2010. For purposes of this subparagraph, a transportation sales tax authority is a district, as defined in Section 7252 of the Revenue and Taxation Code, that is authorized to impose a sales tax for transportation purposes. (L) A metropolitan planning organization, or a regional transportation planning agency not within a metropolitan planning organization, that is required to adopt a regional transportation plan not less than every five years, may elect to adopt the plan not less than every four years. This election shall be made by the board of directors of the metropolitan planning organization or regional transportation planning agency no later than June 1, 2009, or thereafter 54 months prior to the statutory deadline for the adoption of housing elements for the local jurisdictions within the region, after a public hearing at which comments are accepted from members of the public and representatives of cities and counties within the region covered by the metropolitan planning organization or regional transportation planning agency. Notice of the public hearing shall be given to the general public and by mail to cities and counties within the region no later than 30 days prior to the date of the public hearing. Notice of election shall be promptly given to the Department of Housing and Community Development. The metropolitan planning organization or the regional transportation planning agency shall complete its next regional transportation plan within three years of the notice of election. (M) Two or more of the metropolitan planning organizations for Fresno County, Kern County, Kings County, Madera County, Merced County, San Joaquin County, Stanislaus County, and Tulare County may work together to develop and adopt multiregional goals and policies that may address interregional land use, transportation, economic, air quality, and climate relationships. The participating metropolitan planning organizations 86 SB 375 -18 - may also develop a multiregional sustainable communities strategy, to the extent consistent with federal law, or an alternative planning strategy for adoption by the metropolitan planning organizations. Each participating metropolitan planning organization shall consider any adopted multiregional goals and policies in the development of a sustainable communities strategy and, if applicable, an alternative planning strategy for its region. (3) An action element that describes the programs and actions necessary to implement the plan and assigns implementation responsibilities. The action element may describe all transportation projects proposed for development during the 20-year or greater life of the plan. The action element shall consider congestion management programming activities carried out within the region. (4) (A) A financial element that summarizes the cost of plan implementation constrained by a realistic projection of available revenues. The financial element shall also contain recommendations for allocation of funds. A county transportation commission created pursuant to Section 130000 of the Public Utilities Code shall be responsible for recommending projects to be funded with regional improvement funds, if the project is consistent with the regional transportation plan. The first five years of the financial element shall be based on the five-year estimate of funds developed pursuant to Section 14524. The financial element may recommend the development of specified new sources of revenue, consistent with the policy element and action element. (B) The financial element of transportation planning agencies with populations that exceed 200,000 persons may include a project cost breakdown for all projects proposed for development during the 20-year life of the plan that includes total expenditures and related percentages of total expenditures for all of the following: (i) State highway expansion. (ii) State highway rehabilitation, maintenance, and operations. (iii) Local road and street expansion. (iv) Local road and street rehabilitation, maintenance, and operation. (v) Mass transit, commuter rail, and intercity rail expansion. (vi) Mass transit, commuter rail, and intercity rail rehabilitation, maintenance, and operations. (vii) Pedestrian and bicycle facilities. (viii) Environmental enhancements and mitigation. 86 -19 - SB 375 (ix) Research and planning. (x) Other categories. (C) The metropolitan planning organization or county transportation agency, whichever entity is appropriate, shall consider financial incentives for cities and counties that have resource areas or farmland, as defined in Section 65080.01, for the purposes of, for example, transportation investments for the preservation and safety of the city street or county road system and farm to market and interconnectivity transportation needs. The metropolitan planning organization or county transportation agency, whichever entity is appropriate, shall also consider financial assistance for counties to address countywide service responsibilities in counties that contribute towards the greenhouse gas emission reduction targets by implementing policies for growth to occur within their cities. (c) Each transportation planning agency may also include other factors of local significance as an element of the regional transportation plan, including, but not limited to, issues of mobility for specific sectors of the community, including, but not limited to, senior citizens. (d) Except as otherwise provided in this subdivision, each transportation planning agency shall adopt and submit, every four years, an updated regional transportation plan to the California Transportation Commission and the Department of Transportation. A transportation planning agency located in a federally designated air quality attainment area or that does not contain an urbanized area may at its option adopt and submit a regional transportation plan every five years. When applicable, the plan shall be consistent with federal planning and programming requirements and shall conform to the regional transportation plan guidelines adopted by the California Transportation Commission. Prior to adoption of the regional transportation plan, a public hearing shall be held after the giving of notice of the hearing by publication in the affected county or counties pursuant to Section 6061. SEC. 5. Section 65080.01 is added to the Government Code, to read: 65080.01. The following definitions apply to terms used in Section 65080: (a) "Resource areas" include (1) all publicly owned parks and open space; (2) open space or habitat areas protected by natural 86 SB 375 - 20 - community conservation plans, habitat conservation plans, and other adopted natural resource protection plans; (3) habitat for species identified as candidate, fully protected, sensitive, or species of special status by local, state, or federal agencies or protected by the federal Endangered Species Act of 1973, the California Endangered Species Act, or the Native Plan Protection Act; (4) lands subject to conservation or agricultural easements for conservation or agricultural purposes by local governments, special districts, or nonprofit 501(c)(3) organizations, areas of the state designated by the State Mining and Geology Board as areas of statewide or regional significance pursuant to Section 2790 of the Public Resources Code, and lands under WilliamsonActcontracts; (5) areas designated for open-space or agricultural uses in adopted open-space elements or agricultural elements of the local general plan or by local ordinance; (6) areas containing biological resources as described in Appendix G of the CEQA Guidelines that may be significantly affected by the sustainable communities strategy or the alternative planning strategy; and (7) an area subject to flooding where a development project would not, at the time of development in the judgment of the agency, meet the requirements of the National Flood Insurance Program or where the area is subject to more protective provisions of state law or local ordinance. (b) "Farmland" means farmland that is outside all existing city spheres of influence or city limits as of January 1, 2008, and is one of the following: (1) Classified as prime or unique farmland or farmland of statewide importance. (2) Farmland classified by a local agency in its general plan that meets or exceeds the standards for prime or unique farmland or farmland of statewide importance. (c) "Feasible" means capable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, enviromnental, legal, social, and technological factors. (d) "Consistent" shall have the same meaning as that term is used in Section 134 of Title 23 of the United States Code. (e) "Internally consistent" means that the contents of the elements of the regional transportation plan must be consistent with each other. s6 21- SB 375 SEC. 6. Section 65400 of the Government Code is amended to read: 65400. (a) After the legislative body has adopted all or part of a general plan, the planning agency shall do both of the following: (1) Investigate and make recommendations to the legislative body regarding reasonable and practical means for implementing the general plan or element of the general plan, so that it will serve as an effective guide for orderly growth and development, preservation and conservation of open-space land and natural resources, and the efficient expenditure of public funds relating to the subjects addressed in the general plan. (2) Provide by April 1 of each year an annual report to the legislative body, the Office of Planning and Research, and the Department of Housing and Community Development that includes all of the following: (A) The status of the plan and progress in its implementation. (B) The progress in meeting its share of regional housing needs determined pursuant to Section 65584 and local efforts to remove governmental constraints to the maintenance, improvement, and development of housing pursuant to paragraph (3) of subdivision (c) of Section 65583. The housing element portion of the annual report, as required by this paragraph, shall be prepared through the use of forms and definitions adopted by the Department of Housing and Community Development pursuant to the rulemaking provisions of the' Administrative Procedure Act (Chapter 3.5 (commencing with. Section 11340) of Part 1 of Division 3 of Title 2). Prior to and after adoption of the forms, the housing element portion of the annual report shall include a section that describes the actions taken by the local government towards completion of the programs and status of the local government's compliance with the deadlines in its housing element. That report shall be considered at an annual public meeting before the legislative body where members of the public shall be allowed to provide oral testimony and written comments. (C) The degree to which its approved general plan complies with the guidelines developed and adopted pursuant to Section 65040.2 and the date of the last revision to the general plan. 86 SB 375 - 22 - (b) If a court finds, upon a motion to that effect, that a city, county, or city and county failed to submit, within 60 days of the deadline established in this section, the housing element portion of the report required pursuant to subparagraph (B) of paragraph (2) of subdivision (a) that substantially complies with the requirements of this section, the court shall issue an order or judgment compelling compliance with this section within 60 days. If the city, county, or city and county fails to comply with the court's order within 60 days, the plaintiff or petitioner may move for sanctions, and the court may, upon that motion, grant appropriate sanctions. The court shall retain jurisdiction to ensure that its order or judgment is carried out. If the court determines that its order or judgment is not carried out within 60 days, the court may issue further orders as provided by law to ensure that the purposes and policies of this section are fulfilled. This subdivision applies to proceedings initiated on or after the first day of October following the adoption of forms and definitions by the Department of Housing and Community Development pursuant to paragraph (2) of subdivision (a), but no sooner than six months following that adoption. SEC. 7. Section 65583 of the Government Code is amended to read: 65583. The housing element shall consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing. The housing element shall identify adequate sites for housing, including rental housing, factory-built housing, mobilehomes, and emergency shelters, and shall make adequate provision for the existing and projected needs of all economic segments of the community. The element shall contain all of the following: (a) An assessment of housing needs and an inventory of resources and constraints relevant to the meeting of these needs. The assessment and inventory shall include all of the following: (1) An analysis of population and employment trends and documentation of projections and a quantification of the locality's existing and projected housing needs for all income levels, including extremely low income households, as defined in subdivision (b) of Section 50105 and Section 50106 of the Health 86 - 23 - SB 375 and Safety Code. These existing and projected needs shall include the locality's share of the regional housing need in accordance with Section 65584. Local agencies shall calculate the subset of very low income households allotted under Section 65584 that qualify as extremely low income households. The local agency may either use available census data to calculate the percentage of very low income households that qualify as extremely low income households or presume that 50 percent of the very low income households qualify as extremely low income households. The number of extremely low income households and very low income households shall equal the jurisdiction's allocation of very low income households pursuant to Section 65584. (2) An analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. (3) An inventory of land suitable for residential development, including vacant sites and sites having potential for redevelopment, and an analysis of the relationship of zoning and public facilities and services to these sites. (4) (A) The identification of a zone or zones where emergency shelters are allowed as a permitted use without a conditional use or other discretionary permit. The identified zone or zones shall include sufficient capacity to accommodate the need for emergency shelter identified in paragraph (7), except that each local government shall identify a zone or zones that can accommodate at least one year-round emergency shelter. If the local government cannot identify a zone or zones with sufficient capacity, the local government shall include a program to amend its zoning ordinance to meet the requirements of this paragraph within one year of the adoption of the housing element. The local government may identify additional zones where emergency shelters are permitted with a conditional use permit. The local government shall also demonstrate that existing or proposed permit processing, development, and management standards are objective and encourage and facilitate the development of, or conversion to, emergency shelters. Emergency shelters may only be subject to those development and management standards that apply to residential or commercial development within the same zone except 86 SB 375 - 24 - that a local government may apply written, objective standards that include all of the following: (i) The maximum number of beds or persons permitted to be served nightly by the facility. (ii) Off-street parking based upon demonstrated need, provided that the standards do not require more parking for emergency shelters than for other residential or commercial uses within the same zone. (iii) The size and location of exterior and interior onsite waiting and client intake areas. (iv) The provision of onsite management. (v) The proximity to other emergency shelters, provided that emergency shelters are not required to be more than 300 feet apart. (vi) The length of stay. (vii) Lighting. (viii) Security during hours that the emergency shelter is in operation. (B) The permit processing, development, and management standards applied under this paragraph shall not be deemed to be discretionary acts within the meaning of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). (C) A local government that can demonstrate to the satisfaction of the department the existence of one or more emergency shelters either within its jurisdiction or pursuant to a multijurisdictional agreement that can accommodate that jurisdiction's need for emergency shelter identified in paragraph (7) may comply with the zoning requirements of subparagraph (A) by identifying a zone or zones where new emergency shelters are allowed with a conditional use permit. (D) A local government with an existing ordinance or ordinances that comply with this paragraph shall not be required to take additional action to identify zones for emergency shelters. The housing element must only describe how existing ordinances, policies, and standards are consistent with the requirements of this paragraph. (5) An analysis ofpotential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities 86 - 25 - SB 375 as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures. The analysis shall also demonstrate local efforts to remove governmental constraints that hinder the locality from meeting its share of the regional housing need in accordance with Section 65584 and from meeting the need for housing for persons with disabilities, supportive housing, transitional housing, and emergency shelters identified pursuant to paragraph (7). Transitional housing and supportive housing shall be considered a residential use of property, and shall be subject only to those restrictions that apply to other residential dwellings of the same type in the same zone. (6) An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the availability of financing, the price of land, and the cost of construction. (7) An analysis of any special housing needs, such as those of the elderly, persons with disabilities, large families, farmworkers, families with female heads of households, and families and persons in need of emergency shelter. The need for emergency shelter shall be assessed based on annual and seasonal need. The need for emergency shelter may be reduced by the number of supportive housing units that are identified in an adopted 10-year plan to end chronic homelessness and that are either vacant or for which funding has been identified to allow construction during the planning period. (8) An analysis of opportunities for energy conservation with respect to residential development. (9) An analysis of existing assisted housing developments that are eligible to change from low-income housing uses during the next 10 years due to termination of subsidy contracts, mortgage prepayment, or expiration of restrictions on use. "Assisted housing developments," for the purpose of this section, shall mean multifamily rental housing that receives governmental assistance under federal programs listed in subdivision (a) of Section 65863.10, state and local multifamily- revenue bond programs, local redevelopment programs, the federal Community Development Block Grant Program, or local in-lieu fees. "Assisted housing developments" shall also include multifamily rental units 86 SB 375 - 26 - that were developed pursuant to a local inclusionary housing program or used to qualify for a density bonus pursuant to Section 65916. (A) The analysis shall include a listing of each development by project name and address, the type of governmental assistance received, the earliest possible date of change from low-income use and the total number of elderly and nonelderly units that could be lost from the locality's low-income housing stock in each year during the 10-year period. For purposes of state and federally funded projects, the analysis required by this subparagraph need only contain information available on a statewide basis. (B) The analysis shall estimate the total cost of producing new rental housing that is comparable in size and rent levels, to replace the units that could change from low-income use, and an estimated cost of preserving the assisted housing developments. This cost analysis for replacement housing may be done aggregately for each five-year period and does not have to contain a project-by-project cost estimate. (C) The analysis shall identify public and private nonprofit corporations known to the local government which have legal and managerial capacity to acquire and manage these housing developments. (D) The analysis shall identify and consider the use of all federal, state, and local financing and subsidy programs which can be used to preserve, for lower income households, the assisted housing developments, identified in this paragraph, including, but not limited to, federal Community Development Block Grant Program funds, tax increment funds received by a redevelopment agency of the community, and administrative fees received by a housing authority operating within the community. In considering the use of these financing and subsidy programs, the analysis shall identify the amounts of funds under each available program which have not been legally obligated for other purposes and which could be available for use in preserving assisted housing developments. (b) (1) A statement of the community's goals, quantified objectives, and policies relative to the maintenance, preservation, improvement, and development of housing. (2) It is recognized that the total housing needs identified pursuant to subdivision (a) may exceed available resources and the community's ability to satisfy this need within the content of s6 - 27 - SB 375 the general plan requirements outlined in Article 5 (commencing with Section 65300). Under these circumstances, the quantified objectives need not be identical to the total housing needs. The quantified objectives shall establish the maximum number of housing units by income category, including extremely low income, that can be constructed, rehabilitated, and conserved over a five-year time period. (c) A program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the housing element through the administration of land use and development controls, the provision of regulatory concessions and incentives, and the utilization of appropriate federal and state financing and subsidy programs when available and the utilization of moneys in a low- and moderate-income housing fund of an agency if the locality has established a redevelopment project area pursuant to the Community Redevelopment Law (Division 24 (commencing with Section 33000) of the Health and Safety Code). In order to make adequate provision for the housing needs of all economic segments of the community, the program shall do all of the following: (1) Identify actions that will be taken to make sites available during the planning period of the general plan with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city's or county's share of the regional housing need for each income .level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Section 65584.09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. (A) Where the inventory of sites, pursuant to paragraph (3) of subdivision (a), does not identify adequate sites to accommodate 86 SB 375 - 28 - the need for groups of all household income levels pursuant to Section 65584, rezoning of those sites, including adoption of minimum density and development standards, for jurisdictions with an eight-year housing element planning period pursuant to Section 65588, shall be completed no later than three years after either the date the housing element is adopted pursuant to subdivision (f) of Section 65585 or the date that is 90 days after receipt of comments from the department pursuant to subdivision (b) of Section 65585, whichever is earlier, unless the deadline is extended pursuant to subdivision (fj. Notwithstanding the foregoing, for a local government that fails to adopt a housing element within 120 days of the statutory deadline in Section 65588 for adoption of the housing element, rezoning of those sites, including adoption of minimum density and development standards, shall be completed no later than three years and 120 days from the statutory deadline in Section 65588 for adoption of the housing element. (B) Where the inventory of sites, pursuant to paragraph (3) of subdivision (a), does not identify adequate sites to accommodate the need for groups of all household income levels pursuant to Section 65584, the program shall identify sites that can be developed for housing within the planning period pursuant to subdivision (h) of Section 65583.2. The identification of sites shall include all components specified in subdivision (b) of Section 65583.2. (C) Where the inventory of sites pursuant to paragraph (3) of subdivision (a) does not identify adequate sites to accommodate the need for farmworker housing, the program shall provide for sufficient sites to meet the need with zoning that permits farmworker housing use by right, including density and development standards that could accommodate and facilitate the feasibility of the development of farmworker housing for low- and very low income households. (2) Assist in the development of adequate housing to meet the needs of extremely low, very low, low-, and moderate-income households. (3) Address and, where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove 86 - 29 - SB 375 constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (4) Conserve and improve the condition of the existing affordable housing stock, which may include addressing ways to mitigate the loss of dwelling units demolished by public or private action. (5) Promote housing opportunities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability. (6) Preserve for lower income households the assisted housing developments identified pursuant to paragraph (9) of subdivision (a). The program for preservation of the assisted housing developments shall utilize, to the extent necessary, all available federal, state, and local financing and subsidy programs identified in paragraph (9) of subdivision (a), except where a community has other urgent needs for which alternative funding sources are not available. The program may include strategies that involve local regulation and technical assistance. (7) The program shall include an identification of the agencies and officials responsible for the implementation of the various actions and the means by which consistency will be achieved with other general plan elements and community goals. The local government shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort. (d) (1) A local government may satisfy all or part of its requirement to identify a zone or zones suitable for the development of emergency shelters pursuant to paragraph (4) of subdivision (a) by adopting and implementing a multijurisdictional agreement, with a maximum of two other adjacent communities, that requires the participating jurisdictions to develop at least one year-round emergency shelter within two years of the beginning of the planning period. (2) The agreement shall allocate a portion of the new shelter capacity to each jurisdiction as credit towards its emergency shelter need, and each jurisdiction shall describe how the capacity was allocated as part of its housing element. 86 SB 375 - 30 - (3) Each member jurisdiction of a multijurisdictional agreement shall describe in its housing element all of the following: (A) How the joint facility will meet the jurisdiction's emergency shelter need. (B) The jurisdiction's contribution to the facility for both the development and ongoing operation and management of the facility. (C) The amount and source of the funding that the jurisdiction contributes to the facility. (4) The aggregate capacity claimed by the participating jurisdictions in their housing elements shall not exceed the actual capacity of the shelter. (e) Except as otherwise provided in this article, amendments to this article that alter the required content of a housing element shall apply to both of the following: (1) A housing element or housing element amendment prepared pursuant to subdivision (e) of Section 65588 or Section 65584.02, when a city, county, or city and county submits a draft to the department for review pursuant to Section 65585 more than 90 days after the effective date of the amendment to this section. (2) Any housing element or housing element amendment prepared pursuant to subdivision (e) of Section 65588 or Section 65584.02, when the city, county, or city and county fails to submit the first draft to the department before the due date specified in Section 65588 or 65584.02. (f) The deadline for completing required rezoning pursuant to subparagraph (A) of paragraph (1) of subdivision (c) shall be extended by one year if the local government has completed the rezoning at densities sufficient to accommodate at least 75 percent of the sites for low- and very low income households and if the legislative body at the conclusion of a public hearing determines, based upon substantial evidence, that any of the following circumstances exist: (1) The local government has been unable to complete the rezoning because of the action or inaction beyond the control of the local government of any other state federal or local agency. (2) The local government is unable to complete the rezoning because of infrastructure deficiencies due to fiscal or regulatory constraints. 86 31- SB 375 (3) The local government must undertake a major revision to its general plan in order to accommodate the housing related policies of a sustainable communities strategy or an alternative planning strategy adopted pursuant to Section 65080. The resolution and the findings shall be transmitted to the department together with a detailed budget and schedule for preparation and adoption of the required rezonings, including plans for citizen participation and expected interim action. The schedule shall provide for adoption of the required rezoning within one year of the adoption of the resolution. (g) (1) If a local government fails to complete the rezoning by the deadline provided in subparagraph (A) of paragraph (1) of subdivision (c), as it maybe extended pursuant to subdivision (f), except as provided in paragraph (2), a local government may not disapprove a housing development project, nor require a conditional use permit, planned unit development permit, or other locally imposed discretionary permit, or impose a condition that would render the project infeasible, if the housing development project (A) is proposed to be located on a site required to be rezoned pursuant to the program action required by that subparagraph; and (B) complies with applicable, objective general plan and zoning standards and criteria, including design review standards, described in the program action required by that subparagraph. Any subdivision of sites shall be subject to the Subdivision Map Act. Design review shall not constitute a "project" for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. (2) A local government may disapprove a housing development described in paragraph (1) if it makes written findings supported by substantial evidence on the record that both of the following conditions exist: (A) The housing development project would have a specific, adverse impact upon the public health or safety unless the project is disapproved or approved upon the condition that the project be developed at a lower density. As used in this paragraph, a "specific, adverse impact" means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. 86 SB 375 - 32 (B) There is no feasible method to satisfactorily mitigate or avoid the adverse impact identified pursuant to paragraph (1), other than the disapproval of the housing development project or the approval of the project upon the condition that it be developed at a lower density. (3) The applicant or any interested person may bring an action to enforce this subdivision. If a court finds that the local agency disapproved a project or conditioned its approval in violation of this subdivision, the court shall issue an order or judgment compelling compliance within 60 days. The court shall retain jurisdiction to ensure that its order or judgment is carried out. If the court determines that its order or judgment has not been carried out within 60 days, the court may issue further orders to ensure that the purposes and policies of this subdivision are fulfilled. In any such action, the city, county, or city and county shall bear the burden of proof. (4) For purposes of this subdivision, "housing development project" means a project to construct residential units for which the project developer provides sufficient legal commitments to the appropriate local agency to ensure the continued availability and use of at least 49 percent of the housing units for very low, low-, and moderate-income households with an affordable housing cost or affordable rent, as defined in Section 50052.5 or 50053 of the Health and Safety Code, respectively, for the period required by the applicable financing. (h) An action to enforce the program actions of the housing element shall be brought pursuant to Section 1085 of the Code of Civil Procedure. SEC. 8. Section 65584.01 of the Government Code is amended to read: 65584.01. (a) For the fourth and subsequent revision of the housing element pursuant to Section 65588, the department, in consultation with each council of governments, where applicable, shall determine the existing and projected need for housing for each region in the following manner: (b) The department's determination shall be based upon population projections produced by the Department of Finance and regional population forecasts used in preparing regional transportation plans, in consultation with each council of governments. If the total regional population forecast for the 86 33 - SB 375 planning period, developed by the council of governments and used for the preparation of the regional transportation plan, is within a range of 3 percent of the total regional population forecast for the planning period over the same time period by the Department of Finance, then the population forecast developed by the council of governments shall be the basis from which the department determines the existing and projected need for housing in the region. If the difference between the total population growth projected by the council of governments and the total population growth projected for the region by the Department of Finance is greater than 3 percent, then the department and the council of governments shall meet to discuss variances in methodology used for population projections and seek agreement on a population projection for the region to be used as a basis for determining the existing and projected housing need for the region. If no agreement is reached, then the population projection for the region shall be the population projection for the region prepared by the Department of Finance as may be modified by the department as a result of discussions with the council of governments. (c) (1) At least 26 months prior to the scheduled revision pursuant to Section 65588 and prior to developing the existing and projected housing need for a region, the department shall meet and consult with the council of governments regarding the assumptions and methodology to be used by the department to determine the region's housing needs. The council of governments shall provide data assumptions from the council's projections, including, if available, the following data for the region: (A) Anticipated household growth associated with projected population increases. (B) Household size data and trends in household size. (C) The rate of household formation, or headship rates, based on age, gender, ethnicity, or other established demographic measures. (D) The vacancy rates in existing housing stock, and the vacancy rates for healthy housing market functioning and regional mobility, as well as housing replacement needs. (E) Other characteristics of the composition of the projected population. (F) The relationship between jobs and housing, including any imbalance between jobs and housing. 86 SB 375 - 34 - (2) The department may accept or reject the information provided by the council of governments or modify its own assumptions or methodology based on this information. After consultation with the council of governments, the department shall make determinations in writing on the assumptions for each of the factors listed in subparagraphs (A) to (F), inclusive, of paragraph (1) and the methodology it shall use and shall provide these determinations to the council of governments. (d) (1) After consultation with the council of governments, the department shall make a determination of the region's existing and projected housing need based upon the assumptions and methodology determined pursuant to subdivision (c). The region's existing and projected housing need shall reflect the achievement of a feasible balance between jobs and housing within the region using the regional employment projections in the applicable regional transportation plan. Within 30 days following notice of the determination from the department, the council of governments may file an objection to the department's determination of the region's existing and projected housing need with the department. (2) The objection shall be based on and substantiate either of the following: (A) The department failed to base its determination on the population projection for the region established pursuant to subdivision (b), and shall identify the population projection which the council of governments believes should instead be used for the determination and explain the basis for its rationale. (B) The regional housing need determined by the department is not a reasonable application of the methodology and assumptions determined pursuant to subdivision (c). The objection shall include a proposed alternative determination of its regional housing need based upon the determinations made in subdivision (c), including analysis of why the proposed alternative would be a more reasonable application of the methodology and assumptions determined pursuant to subdivision (c). (3) If a council of governments files an objection pursuant to this subdivision and includes with the objection a proposed alternative determination of its regional housing need, it shall also include documentation of its basis for the alternative determination. Within 45 days of receiving an objection filed pursuant to this section, the department shall consider the objection and make a 86 - 35 - SB 375 final written determination of the region's existing and projected housing need that includes an explanation of the information upon which the determination was made. SEC. 9. Section 65584.02 of the Government Code is amended to read: 65584.02. (a) For the fourth and subsequent revisions of the housing element pursuant to Section 65588, the existing and projected need for housing may be determined for each region by the department as follows, as an alternative to the process pursuant to Section 65584.01: (1) In a region in which at least one subregion has accepted delegated authority pursuant to Section 65584.03, the region's housing need shall be determined at least 26 months prior to the housing element update deadline pursuant to Section 65588. In a region in which no subregion has accepted delegation pursuant to Section 65584.03, the region's housing need shall be determined at least 24 months prior to the housing element deadline. (2) At least six months prior to the department's determination of regional housing need pursuant to paragraph (1), a council of governments may request the use of population and household forecast assumptions used in the regional transportation plan. This request shall include all of the following: (A) Proposed data and assumptions for factors contributing to housing need beyond household growth identified in the forecast. These factors shall include allowance for vacant or replacement units, and may include other adjustment factors. (B) A proposed planning period that is not longer than the period of time covered by the regional transportation improvement plan or plans of the region pursuant to Section 14527, but a period not less than five years, and not longer than six years. (C) A comparison between the population and household assumptions used for the Regional Transportation Plan with population and household estimates and projections of the Department of Finance. (b) The department shall consult with the council of governments regarding requests submitted pursuant to paragraph (2) of subdivision (a). The department may seek advice and consult with the Demographic Research Unit of the Department of Finance, the State Department of Transportation, a representative of a contiguous council of governments, and any other party as deemed 86 SB 375 - 36 - necessary. The department may request that the council of governments revise data, assumptions, or methodology to be used for the determination of regional housing need, or may reject the request submitted pursuant to paragraph (2) of subdivision (a). Subsequent to consultation with the council of governments, the department will respond in writing to requests submitted pursuant to paragraph (1) of subdivision (a). (c) If the council of governments does not submit a request pursuant to subdivision (a), or if the department rejects the request of the council of governments, the determination for the region shall be made pursuant to Sections 65584 and 65584.01. SEC. 10. Section 65584.04 of the Government Code is amended to read: 65584.04. (a) At least two years prior to a scheduled revision required by Section 65588, each council of governments, or delegate subregion as applicable, shall develop a proposed methodology for distributing the existing and projected regional housing need to cities, counties, and cities and counties within the region or within the subregion, where applicable pursuant to this section. The methodology shall be consistent with the objectives listed in subdivision (d) of Section 65584. (b) (1) No more than six months prior to the development of a proposed methodology for distributing the existing and projected housing need, each council of governments shall survey each of its member jurisdictions to request, at a minimum, information regarding the factors listed in subdivision (d) that will allow the development of a methodology based upon the factors established in subdivision (d). (2) The council of governments shall seek to obtain the information in a manner and format that is comparable throughout the region and utilize readily available data to the extent possible. (3) The information provided by a local government pursuant to this section shall be used, to the extent possible, by the council of governments, or delegate subregion as applicable, as source information for the methodology developed pursuant to this section. The survey shall state that none of the information received may be used as a basis for reducing the total housing need established for the region pursuant to Section 65584.01. (4) If the council of governments fails to conduct a survey pursuant to this subdivision, a city, county, or city and county may 86 - 37 - SB 375 submit information related to the items listed in subdivision (d) prior to the public comment period provided for in subdivision (c). (c) Public participation and access shall be required in the development of the methodology and in the process of drafting and adoption of the allocation of the regional housing needs. Participation by organizations other than local jurisdictions and councils of governments shall be solicited in a diligent effort to achieve public participation of all economic segments of the community. The proposed methodology, along with any relevant underlying data and assumptions, and an explanation of how information about local government conditions gathered pursuant to subdivision (b) has been used to develop the proposed methodology, and how each of the factors listed in subdivision (d) is incorporated into the methodology, shall be distributed to all cities, counties, any subregions, and members of the public who have made a written request for the proposed methodology. The council of governments, or delegate subregion, as applicable, shall conduct at least one public hearing to receive oral and written comments on the proposed methodology. (d) To the extent that sufficient data is available from local governments pursuant to subdivision (b) or other sources, each council of governments, or delegate subregion as applicable, shall include the following factors to develop the methodology that allocates regional housing needs: (1) Each member jurisdiction's existing and projected jobs and housing relationship. (2) The opportunities and constraints to development of additional housing in each member jurisdiction, including all of the following: (A) Lack of capacity for sewer or water service due to federal or state laws, regulations or regulatory actions, or supply and distribution decisions made by a sewer or water service provider other than the local jurisdiction that preclude the jurisdiction from providing necessary infrastructure for additional development during the planning period. (B) The availability of land suitable for urban development or for conversion to residential use, the availability of underutilized land, and opportunities for infill development and increased residential densities. The council of governments may not limit 86 SB 375 - 38 - its consideration of suitable housing sites or land suitable for urban development to existing zoning ordinances and land use restrictions of a locality, but shall consider the potential for increased residential development under alternative zoning ordinances and land use restrictions. The determination of available land suitable for urban development may exclude lands where the Federal Emergency Management Agency (FEMA) or the Department of Water Resources has determined that the flood management infrastructure designed to protect that land is not adequate to avoid the risk of flooding. (C) Lands preserved or protected from urban development under existing federal or state programs, or both, designed to protect open space, farmland, environmental habitats, and natural resources on a long-term basis. (D) County policies to preserve prime agricultural land, as defined pursuant to Section 56064, within an unincorporated area. (3) The distribution of household growth assumed for purposes of a comparable period of regional transportation plans and opportunities to maximize the use of public transportation and existing transportation infrastructure. (4) The market demand for housing. (5) Agreements between a county and cities in a county to direct growth toward incorporated areas of the county. (6) The loss ofunits contained in assisted housing developments, as defined in paragraph (9) of subdivision (a) of Section 65583, that changed tonon-low-income use through mortgage prepayment, subsidy contract expirations, or termination of use restrictions. (7) High-housing cost burdens. (8) The housing needs of farmworkers. (9) The housing needs generated by the presence of a private university or a campus of the California State University or the University of California within any member jurisdiction. (10) Any other factors adopted by the council of governments. (e) The council of governments, or delegate subregion, as applicable, shall explain in writing how each of the factors described in subdivision (d) was incorporated into the methodology and how the methodology is consistent with subdivision (d) of Section 65584. The methodology may include numerical weighting. (f) Any ordinance, policy, voter-approved measure, or standard of a city or county that directly or indirectly limits the number of a6 - 39 - SB 375 residential building permits issued by a city or county shall not be a justification for a determination or a reduction in the share of a city or county of the regional housing need. (g) In addition to the factors identified pursuant to subdivision (d), the council of governments, or delegate subregion, as applicable, shall identify any existing local, regional, or state incentives, such as a priority for funding or other incentives available to those local governments that are willing to accept a higher share than proposed in the draft allocation to those local governments by the council of governments or delegate subregion pursuant to Section 65584.05. (h) Following the conclusion of the 60-day public comment period described in subdivision (c) on the proposed allocation methodology, and after making any revisions deemed appropriate by the council of governments, or delegate subregion, as applicable, as a result of comments received during the public comment period, each council of governments, or delegate subregion, as applicable, shall adopt a final regional, or subregional, housing need allocation methodology and provide notice of the adoption of the methodology to the jurisdictions within the region, or delegate subregion as applicable, and to the department. (i) (1) It is the intent of the Legislature that housing planning be coordinated and integrated with the regional transportation plan. To achieve this goal, the allocation plan shall allocate housing units within the region consistent with the development pattern included in the sustainable communities strategy. (2) The final allocation plan shall ensure that the total regional housing need, by income category, as determined under Section 65584, is maintained, and that each jurisdiction in the region receive an allocation of units for low- and very low income households. (3) The resolution approving the final housing need allocation plan shall demonstrate that the plan is consistent with the sustainable communities strategy in the regional transportation plan. SEC. 11. Section 65587 of the Government Code is amended to read: 65587. (a) Each city, county, or city and county shall bring its housing element, as required by subdivision (c) of Section 65302, into conformity with the requirements of this article on or 86 SB 375 - 40 before October 1, 1981, and the deadlines set by Section 65588. Except as specifically provided in subdivision (b) of Section 65361, the Director of Planning and Research shall not grant an extension of time from these requirements. (b) Any action brought by any interested party to review the conformity with the provisions of this article of any housing element or portion thereof or revision thereto shall be brought pursuant to Section 1085 of the Code of Civil Procedure; the court's review of compliance with the provisions of this article shall extend to whether the housing element or portion thereof or revision thereto substantially complies with the requirements of this article. (c) If a court finds that an action of a city, county, or city and county, which is required to be consistent with its general plan, does not comply with its housing element, the city, county, or city and county shall bring its action into compliance within 60 days. However, the court shall retain jurisdiction throughout the period for compliance to enforce its decision. Upon the court's determination that the 60-day period for compliance would place an undue hardship on the city, county, or city and county, the court may extend the time period for compliance by an additional 60 days. (d) (1) If a court finds that a city, county, or city and county failed to complete the rezoning required by subparagraph (A) of paragraph (1) of subdivision (c) of Section 65583, as that deadline may be modified by the extension provided for in subdivision (f) of that section, the court shall issue an order or judgment, after considering the equities of the circumstances presented by all parties, compelling the local government to complete the rezoning within 60 days or the earliest time consistent with public hearing notice requirements in existence at the time the action was filed. The court shall retain jurisdiction to ensure that its order or judgment is carried out. If the court determines that its order or judgment is not carried out, the court shall issue further orders to ensure that the purposes and policies of this article are fulfilled, including ordering, after considering the equities of the circumstances presented by all parties, that any rezoning required by subparagraph (A) of paragraph (1) of subdivision (c) of Section 65583 be completed within 60 days or the earliest time consistent with public hearing notice requirements in existence at the time 86 41- SB 375 the action was filed and may impose sanctions on the city, county, or city and county. (2) Any interested person may bring an action to compel compliance with the deadlines and requirements of paragraphs (1), (2), and (3) of subdivision (c) of Section 65583. The action shall be brought pursuant to Section 1085 of the Code of Civil Procedure. An action may be brought pursuant to the notice and accrual provisions of subdivision (d) of Section 65009. In any such action, the city, county, or city and county shall bear the burden of proof. SEC. 12. Section 65588 of the Government Code is amended to read: 65588. (a) Each local government shall review its housing element as frequently as appropriate to evaluate all of the following: (1) The appropriateness of the housing goals, objectives, and policies in contributing to the attainment of the state housing goal. (2) The effectiveness of the housing element in attainment of the community's housing goals and objectives. (3) The progress of the city, county, or city and county in implementation of the housing element. (b) Except as provided in paragraph (7) of subdivision (e), the housing element shall be revised as appropriate, but not less than every eight years, to reflect the results of this periodic review, by those local governments that are located within a region covered by (1) a metropolitan planning organization in a region classified as nonattainment for one or more pollutants regulated by the federal Clean Air Act or (2) a metropolitan planning organization or regional transportation planning agency that is required, or has elected pursuant to subparagraph (L) of paragraph (2) of subdivision (b) of Section 65080, to adopt a regional transportation plan not less than every four years, except that a local government that does not adopt a housing element within 120 days of the statutory deadline for adoption of the housing element shall revise its housing element as appropriate, but not less than every four years. The housing element shall be revised, as appropriate, but not less than every five years by those local governments that are located within a region covered by a metropolitan planning organization or regional transportation planning agency that is required to adopt a regional transportation plan not less than every a6 SB 375 - 42 five years, to reflect the results of this periodic review. Nothing in this section shall be construed to excuse the obligations of the local government to adopt a revised housing element no later than the date specified in this section. (c) The review and revision of housing elements required by this section shall take into account any low- or moderate-income housing provided or required pursuant to Section 65590. (d) The review pursuant to subdivision (c) shall include, but need not be limited to, the following: (1) The number of new housing units approved for construction within the coastal zone after January 1, 1982. (2) The number of housing units for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, required to be provided in new housing developments either within the coastal zone or within three miles of the coastal zone pursuant to Section 65590. (3) The number of existing residential dwelling units occupied by persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, that have been authorized to be demolished or converted since January 1, 1982, in the coastal zone. (4) The number of residential dwelling units for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, that have been required for replacement or authorized to be converted or demolished as identified in paragraph (3). The location of the replacement units, either onsite, elsewhere within the locality's jurisdiction within the coastal zone, or within three miles of the coastal zone within the locality's jurisdiction, shall be designated in the review. (e) Notwithstanding subdivision (b) or the date of adoption of the housing elements previously in existence, each city, county, and city and county shall revise its housing element according to the following schedule: (1) Local governments within the regional jurisdiction of the Southern California Association of Governments: June 30, 2006, for the fourth revision. (2) Local governments within the regional jurisdiction of the Association of Bay Area Governments: June 30, 2007, for the fourth revision. a6 - 43 - SB 375 (3) Local governments within the regional jurisdiction of the Council of Fresno County Governments, the Kern County Council of Governments, and the Sacramento Area Council of Governments: June 30, 2002, for the third revision, and June 30, 2008, for the fourth revision. (4) Local governments within the regional jurisdiction of the Association of Monterey Bay Area Governments: December 31, 2002, for the third revision, and June 30, 2009, for the fourth revision. (5) Local governments within the regional jurisdiction of the San Diego Association of Governments: June 30, 2005, for the fourth revision. (6) All other local governments: December 31, 2003, for the third revision, and June 30, 2009, for the fourth revision. (7) (A) All local governments within a metropolitan planning organization in a region classified as nonattainment for one or more pollutants regulated by the federal Clean Air Act (42 U.S.C. Sec. 7506), except those within the regional jurisdiction of the San Diego Association of Governments, shall adopt the fifth revision of the housing element no later than 18 months after adoption of the first regional transportation plan to be adopted after September 30, 2010. (B) All local governments within the regional jurisdiction of the San Diego Association of Governments shall adopt their fifth revision no more than five years from the fourth revision and their sixth revision no later than 18 months after adoption of the first regional transportation plan to be adopted after the fifth revision due date. (C) All local governments within the regional jurisdiction of a metropolitan planning organization or a regional transportation planning agency that has made an election pursuant to subparagraph (L) of paragraph (2) of subdivision (b) of Section 65080 shall be subject to the eight-year planning period pursuant to subdivision (b) of Section 65588 and shall adopt its next housing element 18 months after adoption of the first regional transportation plan following the election. (f) For purposes of this article, "planning period" shall be the time period for periodic revision of the housing element pursuant to this section. a6 SB 375 - 44 SEC. 13. Section 21061.3 of the Public Resources Code is amended to read: 21061.3. "Infill site" means a site in an urbanized area that meets either of the following criteria: (a) The site has not been previously developed for urban uses and both of the following apply: (1) The site is immediately adj acent to parcels that are developed with qualified urban uses, or at least 75 percent of the perimeter of the site adjoins parcels that are developed with qualified urban uses, and the remaining 25 percent of the site adjoins parcels that have previously been developed for qualified urban uses. (2) No parcel within the site has been created within the past 10 years unless the parcel was created as a result of the plan of a redevelopment agency. (b) The site has been previously developed for qualified urban uses. SEC. 14. Chapter 4.2 (commencing with Section 21155) is added to Division 13 of the Public Resources Code, to read: CHAPTER 4.2. IMPLEMENTATION OF THE SUSTAINABLE COMMUNITIES STRATEGY 21155. (a) This chapter applies only to a transit priority project that is consistent with the general use designation, density, building intensity, and applicable policies specified for the project area in either a sustainable communities strategy or an alternative planning strategy, for which the State Air Resources Board, pursuant to subparagraph (H) of paragraph (2) of subdivision (b) of Section 65080 of the Government Code, has accepted a metropolitan planning organization's determination that the sustainable communities strategy or the alternative planning strategy would, if implemented, achieve the greenhouse gas emission reduction targets. (b) For purposes of this chapter, a transit priority project shall (1) contain at least 50 percent residential use, based on total building square footage and, if the project contains between 26 percent and 50 percent nonresidential uses, a floor area ratio of not less than 0.75; (2) provide a minimum net density of at least 20 dwelling units per acre; and (3) be within one-half mile of a major transit stop or high-quality transit corridor included in a 86 - 45 - SB 375 regional transportation plan. A major transit stop is as defined in Section 21064.3, except that, for purposes of this section, it also includes major transit stops that are included in the applicable regional transportation plan. For purposes of this section, a high-quality transit corridor means a corridor with fixed route bus service with service intervals no longer than 15 minutes during peak commute hours. A project shall be considered to be within one-half mile of a major transit stop orhigh-quality transit corridor if all parcels within the project have no more than 25 percent of their area farther than one-half mile from the stop or corridor and if not more than 10 percent of the residential units or 100 units, whichever is less, in the project are farther than one-half mile from the stop or corridor. 21155.1. If the legislative body finds, after conducting a public hearing, that a transit priority project meets all of the requirements of subdivisions (a) and (b) and one of the requirements of subdivision (c), the transit priority project is declared to be a sustainable communities project and shall be exempt from this division. (a) The transit priority project complies with all of the following environmental criteria: (1) The transit priority project and other projects approved prior to the approval of the transit priority project but not yet built can be adequately served by existing utilities, and the transit priority project applicant has paid, or has committed to pay, all applicable in-lieu or development fees. (2) (A) The site of the transit priority project does not contain wetlands or riparian areas and does not have significant value as a wildlife habitat, and the transit priority project does not harm any species protected by the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), the Native Plant Protection Act (Chapter 10 (commencing with Section 1900) of Division 2 of the Fish and Game Code), or the California Endangered Species Act (Chapter 1.5 (comrriencing with Section 2050) of Division 3 of the Fish and Game Code), and the project does not cause the destruction or removal of any species protected by a local ordinance in effect at the time the application for the project was deemed complete. 86 SB 375 - 46 - (B) For the purposes of this paragraph, "wetlands" has the same meaning as in the United States Fish and Wildlife Service Manual, Part 660 FW 2 (June 21, 1993). (C) For the purposes of this paragraph: (i) "Riparian areas" means those areas transitional between terrestrial and aquatic ecosystems and that are distinguished by gradients in biophysical conditions, ecological processes, and biota. A riparian area is an area through which surface and subsurface hydrology connect waterbodies with their adjacent uplands. A riparian area includes those portions of terrestrial ecosystems that significantly influence exchanges of energy and matter with aquatic ecosystems. A riparian area is adjacent to perennial, intermittent, and ephemeral streams, lakes, and estuarine-marine shorelines. (ii) "Wildlife habitat" means the ecological communities upon which wild animals, birds, plants, fish, amphibians, and invertebrates depend for their conservation and protection. (iii) Habitat of "significant value" includes wildlife habitat of national, statewide, regional, or local importance; habitat for species protected by the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531, et seq.), the California Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of Division 3 of the Fish and Game Code), or the Native Plant Protection Act (Chapter 10 (commencing with Section 1900) of Division 2 of the Fish and Game Code); habitat identified as candidate, fully protected, sensitive, or species of special status by local, state, or federal agencies; or habitat essential to the movement of resident or migratory wildlife. (3) The site of the transit priority project is not included on any list of facilities and sites compiled pursuant to Section 65962.5 of the Government Code. (4) The site of the transit priority project is subject to a preliminary endangerment assessment prepared by a registered environmental assessor to determine the existence of any release of a hazardous substance on the site and to determine the potential for exposure of future occupants to significant health hazards from any nearby property or activity. (A) If a release of a hazardous substance is found to exist on the site, the release shall be removed or any significant effects of the release shall be mitigated to a level of insignificance in compliance with state and federal requirements. s6 - 47 - SB 375 (B) If a potential for exposure to significant hazards from surrounding properties or activities is found to exist, the effects of the potential exposure shall be mitigated to a level of insignificance in compliance with state and federal requirements. (5) The transit priority project does not have a significant effect on historical resources pursuant to Section 21084.1. (6) The transit priority project site is not subject to any of the following: (A) A wildland fire hazard, as determined by the Department of Forestry and Fire Protection, unless the applicable general plan or zoning ordinance contains provisions to mitigate the risk of a wildland fire hazard. (B) An unusually high risk of fire or explosion from materials stored or used on nearby properties. (C) Risk of a public health exposure at a level that would exceed the standards established by any state or federal agency. (D) Seismic risk as a result of being within a delineated earthquake fault zone, as determined pursuant to Section 2622, or a seismic hazard zone, as determined pursuant to Section 2696, unless the applicable general plan or zoning ordinance contains provisions to mitigate the risk of an earthquake fault or seismic hazard zone. (E) Landslide hazard, flood plain, flood way, or restriction zone, unless the applicable general plan or zoning ordinance contains provisions to mitigate the risk of a landslide or flood. (7) The transit priority project site is not located on developed open space. (A) For the purposes of this paragraph, "developed open space" means land that meets all of the following criteria: (i) Is publicly owned, or financed in whole or in part by public funds. (ii) Is generally open to, and available for use by, the public. (iii) Is predominantly lacking in structural development other than structures associated with open spaces, including, but not limited to, playgrounds, swimming pools, ballfields, enclosed child play areas, and picnic facilities. (B) For the purposes of this paragraph, "developed open space" includes land that has been designated for acquisition by a public agency for developed open space, but does not include lands 86 SB 375 - 48 - acquired with public funds dedicated to the acquisition of land for housing purposes. (S) The buildings in the transit priority project are 15 percent more energy efficient than required by Chapter 6 of Title 24 of the California Code of Regulations and the buildings and landscaping are designed to achieve 25 percent less water usage than the average household use in the region. (b) The transit priority project meets all of the following land use criteria: (1) The site of the transit priority project is not more than eight acres in total area. (2) The transit priority project does not contain more than 200 residential units. (3) The transit priority project does not result in any net loss in the number of affordable housing units within the project area. (4) The transit priority project does not include any single level building that exceeds 75,000 square feet. (5) Any applicable mitigation measures or performance standards or criteria set forth in the prior environmental impact reports, and adopted in findings, have been or will be incorporated into the transit priority project. (6) The transit priority project is determined not to conflict with nearby operating industrial uses. (7) The transit priority project is located within one-half mile of a rail transit station or a ferry terminal included in a regional transportation plan or within one-quarter mile of ahigh-quality transit corridor included in a regional transportation plan. (c) The transit priority project meets at least one of the following three criteria: (1) The transit priority project meets both of the following: (A) At least 20 percent of the housing will be sold to families of moderate income, or not less than 10 percent of the housing will be rented to families of low income, or not less than 5 percent of the housing is rented to families of very low income. (B) The transit priority project developer provides sufficient legal commitments to the appropriate local agency to ensure the continued availability and use of the housing units for very low, low-, and moderate-income households at monthly housing costs with an affordable housing cost or affordable rent, as defined in Section 50052.5 or 50053 of the Health and Safety Code, 86 49 - SB 375 respectively, for the period required by the applicable financing. Rental units shall be affordable for at least 55 years. Ownership units shall be subject to resale restrictions or equity sharing requirements for at least 30 years. (2) The transit priority project developer has paid or will pay in-lieu fees pursuant to a local ordinance in an amount sufficient to result in the development of an equivalent number of units that would otherwise be required pursuant to paragraph (1). (3) The transit priority project provides public open space equal to or greater than five acres per 1,000 residents of the project. 21155.2. (a) A transit priority project that has incorporated all feasible mitigation measures, performance standards, or criteria set forth in the prior applicable environmental impact reports and adopted in findings made pursuant to Section 21081, shall be eligible for either the provisions of subdivision (b) or (c). (b) A transit priority project that satisfies the requirements of subdivision (a) may be reviewed through a sustainable communities environmental assessment as follows: (1) An initial study shall be prepared to identify all significant or potentially significant impacts of the transit priority project, other than those which do not need to be reviewed pursuant to Section 21159.28 based on substantial evidence in light of the whole record. The initial study shall identify any cumulative effects that have been adequately addressed and mitigated pursuant to the requirements of this division in prior applicable certified environmental impact reports. Where the lead agency determines that a cumulative effect has been adequately addressed and mitigated, that cumulative effect shall not be treated as cumulatively considerable for the purposes of this subdivision. (2) The sustainable communities environmental assessment shall contain measures that either avoid or mitigate to a level of insignificance all potentially significant or significant effects of the project required to be identified in the initial study. (3) A draft of the sustainable communities environmental assessment shall be circulated for public comment for a period of not less than 30 days. Notice shall be provided in the same manner as required for an environmental impact report pursuant to Section 21092. (4) Prior to acting on the sustainable communities environmental assessment, the lead agency shall consider all comments received. s6 SB 375 - 50 - (5) A sustainable communities environmental assessment may be approved by the lead agency after conducting a public hearing, reviewing the comments received, and finding that: (A) All potentially significant or significant effects required to be identified in the initial study have been identified and analyzed. (B) With respect to each significant effect on the environment required to be identified in the initial study, either of the following apply: (i) Changes or alterations have been required in or incorporated into the project that avoid or mitigate the significant effects to a level of insignificance. (ii) Those changes or alterations are within the responsibility and jurisdiction of another public agency and have been, or can and should be, adopted by that other agency. (6) The legislative body of the lead agency shall conduct the public hearing or a planning commission may conduct the public hearing if local ordinances allow a direct appeal of approval of a document prepared pursuant to this division to the legislative body subject to a fee not to exceed five hundred dollars ($500). (7) The lead agency's decision to review and approve a transit priority project with a sustainable communities environmental assessment shall be reviewed under the substantial evidence standard. (c) A transit priority project that satisfies the requirements of subdivision (a) may be reviewed by an environmental impact report that complies with all of the following: (1) An initial study shall be prepared to identify all significant or potentially significant effects of the transit priority project other than those that do not need to be reviewed pursuant to Section 21159.28 based upon substantial evidence in light of the whole record. The initial study shall identify any cumulative effects that have been adequately addressed and mitigated pursuant to the requirements of this division in prior applicable certified environmental impact reports. Where the lead agency determines that a cumulative effect has been adequately addressed and mitigated, that cumulative effect shall not be treated as cumulatively considerable for the purposes of this subdivision. (2) An environmental impact report prepared pursuant to this subdivision need only address the significant or potentially significant effects of the transit priority project on the environment 86 51- SB 375 identified pursuant to paragraph (1). It is not required to analyze off-site alternatives to the transit priority project. It shall otherwise comply with the requirements of this division. 21155.3. (a) The legislative body of a local jurisdiction may adopt traffic mitigation measures that would apply to transit priority projects. These measures shall be adopted or amended after a public hearing and may include requirements for the installation of traffic control improvements, street or road improvements, and contributions to road improvement or transit funds, transit passes for future residents, or other measures that will avoid or mitigate the traffic impacts of those transit priority projects. (b) (1) A transit priority project that is seeking a discretionary approval is not required to comply with any additional mitigation measures required by paragraph (1) or (2) of subdivision (a) of Section 21081, for the traffic impacts of that project on intersections, streets, highways, freeways, or mass transit, if the local jurisdiction issuing that discretionary approval has adopted traffic mitigation measures in accordance with this section. (2) Paragraph (1) does not restrict the authority of a local jurisdiction to adopt feasible mitigation measures with respect to the effects of a project on public health or on pedestrian or bicycle safety. (c) The legislative body shall review its traffic mitigation measures and update them as needed at least every five years. SEC. 15. Section 21159.28 is added to the Public Resources Code, to read: 21159.28. (a) If a residential or mixed-use residential project is consistent with the use designation, density, building intensity, and applicable policies specified for the project area in either a sustainable communities strategy or an alternative planning strategy, for which the State Air Resources Board pursuant to subparagraph (I) of paragraph (2) of subdivision (b) of Section 65080 of the Government Code has accepted the metropolitan planning organization's determination that the sustainable communities strategy or the alternative planning strategy would, if implemented, achieve the greenhouse gas emission reduction targets and if the project incorporates the mitigation measures required by an applicable prior environmental document, then any findings or other determinations for an exemption, a negative declaration, a mitigated negative declaration, a sustainable 86 SB 375 - 52 communities environmental assessment, an environmental impact report, or addenda prepared or adopted for the project pursuant to this division shall not be required to reference, describe, or discuss (1) growth inducing impacts; or (2) any project specific or cumulative impacts from cars and light-duty truck trips generated by the project on global warming or the regional transportation network. (b) Any environmental impact report prepared for a project described in subdivision (a) shall not be required to reference, describe, or discuss a reduced residential density alternative to address the effects of car and light-duty truck trips generated by the project. (c) "Regional transportation network," for purposes of this section, means all existing and proposed transportation system improvements, including the state transportation system, that were included in the transportation and air quality conformity modeling, including congestion modeling, for the final regional transportation plan adopted by the metropolitan planning organization, but shall not include local streets and roads. Nothing in the foregoing relieves any project from a requirement to comply with any conditions, exactions, or fees for the mitigation of the project's impacts on the structure, safety, or operations of the regional transportation network or local streets and roads. (d) A residential or mixed-use residential project is a project where at least 75 percent of the total building square footage of the project consists of residential use or a project that is a transit priority project as defined in Section 21155. SEC. 16. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. 86 Approved , 2008 Governor ATTACHMENT B League of California Cities Request for Veto - SB 375 LE-~GL~OF ORANGE COUNTY DIVISION ~.~ 1FO>~ c.~L "~ f>l16 WIi.ST SANTA ANA P(11.'Lf>\':vHD, ti111•I~E?IJ.SAN"L1 :\NA. f':v LIHOH N1:14?7ili C ~ ~ ~~/ tF LEPFI!i NI;' FIJI 4i?-607? I~;IX. 1'IJi 47?-;Nlr; .nr.ul. rr, u..~. r,..:nrc~.mc ` tihcpirtg ueu• f••rrture To~gc~ther ~ %, September 10, 2008 The Honorable Arnold Schwarzenegger State Capitol Building Sacramento, CA 95814 ALISO VIIJU \N:V IGIM RE: SB 375 -Transportation Planning: Travel Models: Review }3xr=A Bl'ENA PARK • REQUEST FOR VETO - SB 375 rA n•IES.~ cos c:vPRESs • Dear Governor Schwarzenegger: r DANA lx)IN FUUNTAIN VALLEY On behalf of the members of the Orange County Division, League of California r-ul_I_rxroN I'iUN1'INGI'UN ftHACFI Cities (the Division), we are writing to convey the Division's continued opposition to nivlNC: Senate Bill 375 (Steinberg) and urge you to veto this bill, which proposes to link I_A FIABRA greenhouse gas reduction goals to regional planning for transportation and housing. LA PAI,.MA LAruNn tlt:Arrl The Division first voted to oppose SB 375 in March 2008. Since that time, there I.AUUNA Ii11..LS have been several amendments to the bill, which.is now supported by the League of L,AGUNA NIGUEI. California Cities. Nonetheless, many concerns remain over this complex bill that LACUNA WOODS will have significant implications for local land use authority, the CEQA process, and LAKE t:oRF:_S~r the Regional Housing Needs Assessment (RHNA). For this reason, we would ask LOS AI_AMITOS [hat you defer consideration of SB 375 until the 2009-10 legislative session to ensure Mrssl°" v[E)o the true impacts of the bill are fully examined. NEWPORT BEACH ORANGE In its current form, SB 375 represents yet another attempt by the state to usurp local PLACENI'IA land use authority. The bill requires local agencies to plan for greenhouse gas (GH{i) RANCHO SANTA M,ARUARl1'A SAN CLE~IENTE reductions, but provides regional planning agencies -which are not accountable to SAN JUAN CAPISTRANO the electorate -with the potential ability to override local decisions. Moreover, the s,wTA ANA bill encourages infill development, yet does not provide money for the related SEAL BE:1CF1 infrastructure improvements that are necessary to support that development. STANTON TUS1'[N For these and many other reasons, the Division opposes SB 375, and we respectfully VILLA PARK request that you veto this bill. If you have any questions or would like further wES-rnnNSTER information regarding the Division's position, please 'contact Lacy Kelly, Orange Y'URBA LINDA County Division Executive Director, at (7l4) 564-3201. Sincerely, ~~~ John Beauman President Orange County Division, League of California Cities cc: League of California Cities Y~ Peter Herzog Advocacy Chair Orange County Division, League of California Cities -I I :I :I .. ~ 1 ! .:. I I F ~S l I r l- } ~. 5 .. !.. ~ i ~,' I I I S. '.I I I I :is 1'~{ r 1 ~r 1-~.,i•, i•C~ .. .r 1'. . ~. ~ .111. 1.: r 1 r~.!_ r ~. . :-, r Ir 1.t., : i ~k' ri.i:. :....... ,;, : ~ 1~,-~oL~oF` ORANGE COUNTY DIVISION C`-~L~+1~F0~1~~'L~ nOtl Kf:S'I S~1NTr\.ANA 1301 L6l';\L0 til II'F IJ S t+I':\ V \ C 11 Ir l H'vlrl ?;lil /'/./ l,ll(r.~ III I'r fil)NC '. 1i1 vi?.01)7 f:U.~;Idl'1"-I :II _m.n n.r ur,.~ .., ~~ Shuprn,4~ oru' I'ulcu'e 7os;e'lher September 10, 2008 Mayors and Councilmembers of California Cities Al_Iti0 VIElO nNAIIEIM E{RL'1 Re: The Future of Local Control L{UEN.1 F'nRK COS"I'A titl:Sn c1'PRESS Dear Mayors and Councilmembers: unN,1 Pci1N'r POUN"PAIN VALLEY Each of you represents a very unique and wonderful community. There are 11tLL[RTON small and large cities, urbanized, suburban and rural cities, cities with big t1U:'N'r'ING'I'ON I3[~AC'H budgets and small ones, and cities with small staffs and ones with large IRVINE I A H RRA personnel resources. One size does not fit all or address the diversity of people . A r:1 Pnl Mr\ and cities that make up California. And you, not the State of California, truly I_:1cuNA 13EnC1, know and understand how best to enhance the quality of life of the people you L:1C;lJNA H^"i_S serve. 1_nGUw1 NrcuEL I_AGUNr1 WOODS For decades, Mayors and City Councilmembers have been able to meet the LAK{i HoREST • challenges facing their community because they have had that ability, through Los nLnMrT ~s local control, to do so. The Oran e Count Division of the Lea ue of Cities g y g (( 1'~ISS1oN vlF'ao 1, ~1;b1'PORT BEACH believes the vital need to control our destiny is being undermined, particularly ~oRn1vGE over the last 10 years or so, and if the trend continues local control will really no PLACENTA longer exist. RANCHO SANTA MARGAREI'n SAN CLEMEN9'E One area we had been able to protect, by vigorously guarding it, was local land SAN JUAN CAPISTRANO " ' use control. Now, that vital area of local control is being further undermined by s,1N 1 A nNn SB 375. The ro onentS of the bill have called it a "watershed moment" p p SEAL REACH STANTON ° , "landmark legislation" and "the most important land use bill" in decades. You TUSTIN will hear the State League say the bill is better than it was last fall and earlier VILLA PARK this year. That may be true. But, it is still a bad bill that erodes your local land WE5'1'h11NSTER use authority. And not by the Legislature, but by regional bodies and the YORE{A I.INUA regulations and determinations of the California Air Resources Board (GARB), a single purpose regulatory agency with no experience in land planning and no experience in the myriad of issues that go into a community land use plan. Clearly, GARB does not have the same depth of knowledge or understanding of local land use issues and challenges as do the cities themselves. Unfortunately, the first wave of attack on local control and local land use decisions, with respect to global climate change, came with the passage of Assembly Bill 32 (AB32), passed into law by the California Legislature in August 2006. The next step in the further erosion of local control is SB 375, currently awaiting the Governor's signature. I I.;:':li.:l r,h": li: l ~.;: '.~. ~ F..:.. I -r. .i:\'; (. 1. it i:'- 4. _ ~ it '~` r, ~:/.r-: ~.r`III I(. ~-.( I Ir I'~',:'~: C';~_i -. 1':41:'! .:: ~..::I S '!'. i,.. .. :.. .: ... .. .,. .. .. ~ :. -.,.. ... L - , . , I la( .. ,.. ~~ I r~l" ', ri::_ 'F E,~-I- 'I fl:'i ~ ( ~..,. ,. \1 '.±:~~ .. ill 4.~. ,, ~ .._ _ ~. _, nr I„ r ,,",._ !i li 1'J HI f_~T\i~l ~~ S7 i ,TC CI t ~;.,, ~.;,,,, ~.. ~, I ~,.:(~! 14:~ ~~~;,. ~.: ,.,,.. i ~ I~q; .. L E A GUEOF ORANGE COUNTY DIVISION . r ~ ~ 0 ~~~ ~ ' """' ~ 6~i0 WtiSl' S,\N I'4 AYA HOULE:vAIt D, tillf(fi ?1a. 3:>Nl7\ ANTI. I: ~\I_ff:UR~Lt 92781 L ~~ C1T1LS )lfLI~.PN(>NP.: ~7;Si 47 ].OU77 F,\X. ~71a1 4'?b 1fi16 iin~il ui nlic,or.~;.cd~c•..or~: . Sha~)ire,r,~ orrr /~ulurr Tot~clfrer / In summary, here is how SB 375 works. AB 32 gave GARB the statewide regulatory authority regarding compliance with greenhouse gas emissions. SB 375 would establish GARB as the lead agency for implementing AB 32. GARB will decide how much green house gas reductions must be achieved in a given ALlso vnao area. They will then advise the 17 Metropolitan Planning Organizations (MPOs) ANAHeI"' of those goals, and then the MPO must come up with a transportation plan AND `~Itl"~ land use plan, called a Sustainable Communities Strategy (SCS), to meet the ucENA PARK ' reductions oals. The ob'ect of the SCS, accordin to the ro onents, is to have g J g P P osrn n~rs,a c c'.YrltESS "growth in the right direction", not "in the wrong direction." Furthermore, once 1~ANA 1'<J1NT the MPO comes up with the "plan", they have to send it up to GARB. CARB FOUN~'.AIN VALLEY has the absolute, unilateral authority to reject the SCS, even if all the local FuL1.ER-1-')'~ agencies have agreed on it, and send it back to be redone. hIUN"r1NG"rON BF.ACFI 1RV1NE While SB 375 does not technically require you to change your general plans to LAf{ABRA conform to the SCS developed by regional planners, it carries a stick. Future LA PnINMn LAGUNA BEACH transportation funding is linked to the SCS. State and Federal transportation LAGUNA HILLS monies would be funneled to those cities and projects that change their general LAGUNA NIGUEL plan to meet the SCS. It would also affect local self-help sales tax transportation LACUNA ~VOUDS initiatives passed beginning in 201.0 that don't fit the SCS. The entire concept is LAKh Fc)RES•f that transportation projects would only be funded in areas where these other LOSALAMITOS agencies, not your city, decide growth should occur. By only improving MISSION V1EJ(7 NF'wPUR~' BeAC}{ transportation in certain areas, mainly along transit corridors, the central ORANGE planners would force the growth into those locations. So you may not be PLACENTIA "required" to change your general plan, but don't count on getting money to RANCh10 SANTA MARGARITA meet your transportation needs if you don't. SAN CLEMENTE SAN JUAN CAPISTRANO Also, SB 375 will not be the end of this erosion of local land use control. There SANTA ANA is already a great deal of discussion about additional legislation next year to SEAL BEACH S'I'AN"1'UN supposedly "implement" the provisions of SB 375. Some have said this is the ']'US1'lN "first step" towards regional land use planning, and ultimately regional, not VILLA PAkK local, governance. This approach to centralize local land use control should not WfSTMINSI'ER be supported or condoned. l'ORBA LINllA What concerns us the most is how SB 375 was put on the fast track. The version of SB 375 discussed above was not put into print until August 13, 2008. It has since been rushed through the Legislature to meet the August 31 deadline. Eighteen (l8) days on a "landmark" piece of legislation with serious consequences. This process prevented the vast majority of Californians, and even most of the elected city officials, from even knowing the details and consequences of SB 375, much less being able to contact their Legislators with concerns. How tragic for California cities and the people of California. ,: ~~..--. ~-r ~ 'ru,l!. r (; ;-r; , I}~ r. •,.. .i ~: ,. i. -. ~~. .~,. , I•:~r. I. 1-•~„-~. I~:'-.! i i I;: ict."' n ~~:.:;, . c,~, ,~. , ;~~~.. ,:. :~. ;i. •.. ... ,I .. ~.. .. Lt•. I,rCli. + ..'~Ir?.1 :V(r `~;.~ L. ~'.. ~Y.:,, •`;.1 li „.,•_ i ,.. ~ ~ _ ,.. ~: ~.... l k. r.,..: ! : -:: n!. -. i, ::. i:.m. ' i l ~;'. P. I ~, ~,. `.:. ,,. :,..., ~. ~: ~. i' I iQ'li h:.. !.. ~ LEAGUEwO1 F ORANGE COUNTY DIVISION CALIFO~RNZ~ rOn wES"I" S,W TA AN:\ ROULF I'ARD. SUI"1'E '_N. SANTA ANA, CAL.)FfJkN1A o'?nl ~/ ~..ll ir"~ TELEPIii)NG: t~t1) 4;' OtiT? FA\: 17131 472.1X16 email urcibt.. a:~u. cif ies.~: rF~ %/ Sl~npiu,4~ our Future Tnretfter ,i There are two courses of immediate action that are important. First, letters requesting a veto of SB 375 should be sent to the Governor. Secondly, at the upcoming League Annual Conference, the importance and protection of local control in all areas, not just land use control, needs to be seriously discussed and nuso v1EJO reasserted. In fact, the membership may want to consider creating a platform for :,Nnf(EIM the future of the League, which clearly and succinctly states: BREA BuENn PARK "The ri ht of cities to locall control the destinies of their communities, c(>srn Mlsn g y CYPRESS such as in land use, is the most critical element to maintaining the cities' ability DANA I'(11N"r to provide a high quality of life to the people of California. The right of local FOIIN"PAIN VAI_L.'-.Y control is increasingly under attack, especially at the State level, and must be FULLERTOM vigorously protected. The protection and enhancement of local control is the HUNTINC~I'UN BF.ACI1 primary objective of the League of Cities. Therefore, the actions of the League IRVINE and any decisions to support or oppose any legislation, will be guided by LA HABRA 1_A PALM1IA whether that legislation promotes or destroys local control." LACUNA BEACI-I LACUNA tI1LLS LACUNA NIUUEL LAC;IINA W(.X)DS LAK(: F'ORES'1' LUS r\Lr\Ml'I'US 41SSlON VIEJO `_,~EWPC)R'I' BL'AC'K UKANGB PLACGNTIA RANCI IU SAN"fA MARGARIT"A SAN CLEMEN"fE SAN 1UAN CAPISTRANO SANTA ANA SEAL BEACH STA NT'UN TUSTIN VILLA PARK W ESTM I NS"f ER YORBA LINDA Under the guise of preventing global warming and greenhouse gas emissions, central authorities' actions will mean that cities will ttecome increasingly irrelevant in local land use planning and control. Can we afford to silently step aside? As mentioned, the legislative assault on local control will not be over this year. The League of California Cities' states that its mission is, "To RESTORE and PROTECT LOCAL CONTROL for cities through education and advocacy in order to enhance the quality of life for all Californians." Consistent with this mission, the League of California Cities states that its first Core Belief is that, "Local self-governance is the cornerstone of democracy." We believe in these principles and would like to see the League of California Cities stand up for the same on our behalf. Therefore, we look forward to working with you in the future to support your ability to enhance your unique cities, and meet the varied challenges you face without the assistance of or interference from central control by CARB or other state authorized agencies. Sincerely, / /~ .~ G~~ John Beauman Orange County Division, LCC President ~~~ Peter Herzog Orange County Division, LCC Advocacy Chair Cc: League of California Cities ,, ,I,,t ;;~. nl?r.,tl n. r:,,: I ._,,.,:. i ..r„~ i .,I.". siF:,1.,f ,i,<~ I. I~,a., ~ ~_,: ~ ~_.:~.,: if.F ~•~~. ,,.,.,,., ~~ I;. , ,: :,. 1 .,. ,,,, i .,< I ,. ATTACHMENT C SCAG - SB 375 Point Summary SB 375 POINT SUMMARY SCAG discussion draft September 2008 WHAT SB 375 DOES Issues that affect SCAG directly -Directs ARB to develop regional GHG targets, and prescribes a process for doing so. -Mandates inclusion of a "Sustainable Communities Strategy" (a regional growth distribution that reduces emissions, if feasible) in the RTP -Mandates that, if the SCS does not meet the GHG target, an Alternative Planning Strategy will be prepared. The APS is separate from the RTP, but maybe adopted concurrently. -Allows sub-regions (SCAG region only) to prepaze the SCS and APS for their area. -Directs SCAG to develop a planning framework and guidelines for the development of the sub-regional SCS and APS. -Establishes (or re-emphasizes) a requirement for internal consistency within the RTP. -Exempts transportation projects included in sales tax measures prior to the end 2010 from having to be consistent with the SCS. Also exempts projects programmed in the 2007 or 2009 State Transportation Improvement Program (STIP). -Requires that the MPO develop a regional housing needs allocation consistent with SCS. -Adjusts the timeline for Housing Element updates such that the RHNA is performed with every-other RTP. The intent is for the next SCAG RHNA to occur in 2016, but a technical amendment is needed. Issues that affect SCAG indirectly, and/or affect member agencies -Create new requirements for the development of State transportation modeling guidelines. -Streamlines the CEQA review for transit oriented development projects that aze consistent with SCS. -Requires new content for the local Housing Element. DRAFT for discussion September 2008 -Provides new enforcement mechanisms for Housing Element non-compliance. ISSUES FOR SLAG DISCUSSION -Development of Framework and Guidelines for sub-regional SCS and APS. -What will be the GHG target? How will SCAG be involved in the target development process? -What is level of effort to achieve GHG reductions through land use for the region? How can equity around the region be measured. -Follow-up legislation: CEQA streamlining for transportation projects, RHNA timeline DRAFT for discussion September 2008 ATTACHMENT D Office of the Governor Press Release Office of the Governor of the State of California Page 1 of 2 l~,o .~~;;.>ti ' ~'' '4`t ([ [f'^'}; (~'yj ~(1'~~ (may ]~y~ (/'R ~~ ~t e~r* '~fi X.~ p i L( THE PEGPLE'~ GOVEtPNGR F k~f ''•~ At ~ ~ s+~',~ PRESS RELEASE 09/30/2008 GAAS:694:08 FOR IMMEDIATE RELEASE Governor Schwarzenegger Signs Sweeping Legislation to Reduce Greenhouse Gas Emissions through Land-Use Continuing California's environmental leadership in fighting global warming, Governor Arnold Schwarzenegger announced that he has signed SB 375 by Senator Darrell Steinberg (D-Sacramento), which builds on AB 32, California's first-in-the-nation law to reduce greenhouse gas emissions, by adding the nation's first law to control greenhouse gas emissions by curbing sprawl. "This landmark bill takes California's fight against global warming to a whole new level, and it creates a model that the rest of the country and world will use," Governor Schwarzenegger said. "When it comes to reducing greenhouse gases, California is first in tackling car emissions, first to tackle low-carbon fuels, and now with this landmark legislation, we are the first in the nation to tackle land-use planning. What this will mean is more environmentally- friendly communities, more sustainable developments, less time people spend in their cars, more alternative transportation options and neighborhoods we can safely and proudly pass on to future generations." In order to reach the greenhouse gas reduction goals set out in AB 32, the Global Warming Solutions Act of 2006, Californians need to rethink how we design our communities. SB 375 does this by providing emissions-reduction goals around which regions can plan-integrating disjointed planning activities and providing incentives for local governments and developers to follow new conscientiously-planned growth patterns. SB 375 enhances the Air Resources Board's (ARB) ability to reach our AB 32 goals by directing ARB to develop regional greenhouse gas emission reduction targets to be achieved from the automobile and light truck sectors for 2020 and 2035. ARB will also work with California's 18 metropolitan planning organizations to align their regional transportation, housing and land-use plans and prepare a "sustainable communities strategy" to reduce the amount of vehicle miles traveled in their respective regions and demonstrate the region's ability to attain its greenhouse gas reduction targets. Spending less time on the road is the single-most powerful way for California to reduce its carbon footprint. Additionally, SB 375 provides incentives for creating attractive, walkable and sustainable communities and revitalizing existing communities. The bill also allows home builders to get relief from certain environmental reviews under the California Environmental Quality Act if they build projects consistent with the new sustainable community strategies. It will also encourage the development of more alternative transportation options, which will promote healthy lifestyles and reduce traffic congestion. The Governor also signed SB 732 by Steinberg which will provide a comprehensive statutory framework to implement new programs under Proposition 84, the $5.4 billion initiative voters passed in 2006 for safe drinking water, water quality and supply, flood control, natural resource protection and park improvements. The bill also establishes the Strategic Growth Council and will appropriate $500,000 from Prop 84 to the Resources Agency to support the Council and its activities. The bill requires the Council to take certain actions with regard to coordinating programs of various state agencies to do the following: • improve air and water quality, • improve natural resource protection, • increase the availability of affordable housing, • improve transportation, http://gov.ca.gov/index.php?/print-version/press-release/ 10697/ 10/01 /2008 Office of the Governor of the State of California • meet the goals of AB 32, encourage sustainable land use planning and revitalize urban community centers in a sustainable manner. The Council will also manage and award grants and loans to support the planning and development of sustainable communities. California is leading the fight against climate change with the following strong policies, laws and innovations: • Global Warming Solutions Act of 2006 (AB 3~: AB 32 established afirst-in-the-world comprehensive program of regulatory and market mechanisms to achieve real, quantifiable, cost-effective reductions of greenhouse gas emissions. The law will reduce carbon emissions in California to 1990 levels by 2020. • Low Carbon Fuel Standard LCFS :California's LCFS requires fuel providers to reduce the carbon intensity of transportation fuels sold in the state, dramatically expanding the market for alternative fuels. To start, the LCFS will reduce carbon content in all passenger vehicle fuels sold in California by at least 10 percent by 2020 and more thereafter. • Million Solar_Roofs Initiative: The Governor's $2.9 billion incentive plan for home and building owners who install solar electric systems will lead to one million solar roofs in California by the year 2018, provide 3,000 megawatts of clean energy and reduce greenhouse gas emissions by 3 million tons. • Renewable Portfolio Standard RPS :California's RPS calls for more energy to come from clean, renewable sources. In 2003, the Governor called for an acceleration of the RPS, pushing for 20 percent of California's energy to come from renewable energy sources by 2010 rather than 2017, seven years earlier than statute. This accelerated standard became law in 2006 when the Governor signed SB 107. • California's automobile emissions standards: The Governor has been pursuing every avenue possible to enforce California's 2002 law, AB 1493 by Assemblymember Fran Pavley, which allows California to enact and enforce emissions standards to reduce greenhouse gas emissions from automobiles, including a lawsuit against the U.S. Environmental Protection Agency to overturn its decision denying California's waiver request to enforce our standards. Page 2 of 2 http://gov.ca. gov/index.php?/print-version/press-release/ 10697/ 10/01 /2008