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Home My WebLink About2025-08-06; Planning Commission; 02; Overview of the California Environmental Quality Act and new legislationMeeting Date: Aug. 6, 2025 Item 2 To: Planning Commission Staff Contact: Eric Lardy 442-339-2721, eric.lardy@carlsbadca.gov Subject: Overview of the California Environmental Quality Act and new legislation Location: Citywide Case Numbers: n/a Applicant/Representative: City of Carlsbad Community Development Department Permit Type(s): ☐SDP ☐ CUP ☐ CDP ☐ TM/TPM ☐ GPA ☐ REZ ☐ LCPA☒Other: N/A CEQA Recommendation: ☒Not a Project ☐ Exempt ☐ IS/ND or IS/MND ☐ EIR ☐Other: Commission Action: ☐Decision ☐ Recommendation to City Council ☒ Informational (No Action) Recommended Action Receive a report and presentation on the California Environmental Quality Act (CEQA) changes. Project Description The requirements and procedures for complying with CEQA are contained in the CEQA statute (Public Resources Code Section 21000 et seq.), the CEQA Guidelines (California Code of Regulations, Title 14, Section 15000 et seq.), published court decisions interpreting CEQA, and locally adopted CEQA procedures. CEQA requires public agencies to inform themselves of the environmental effects of their proposed action, carefully consider all relevant information before they act, provide an opportunity for public comment on environmental issues, and avoid or reduce significant environmental impacts when feasible. Because CEQA’s provisions are enforced, as necessary, by the public through litigation and the threat of litigation, CEQA has turned in to being one of the most important state laws affecting local planning decisions. On Sept. 24, 2024, the City Council directed the City Manager to change this process and draft amendments to Chapter 19.04 of the Municipal Code to require exemptions be decided upon by decision-making authority responsible for deciding on the project. These amendments were approved by the City Council on Feb. 4, 2025 through approval of Ordinance No. CS-485 (Exhibit 1). New State Laws In June 2025, as part of the budget, two budget trailer bills were signed into law. They are Assembly Bill 130 and Senate Bill 131. These bills create a new CEQA Exemption for Urban Infill Housing Development Projects, create exemptions for specified types of projects, and makes other CEQA Reforms. The full impacts of these bills are being evaluated, but the presentation will include the initial feedback and overview of the items currently anticipated to most impact Carlsbad. Aug. 6, 2025 Item #2 1 of 3 Conclusion At the Aug. 6, 2025 Planning Commission meeting, staff will facilitate an overview of CEQA and opportunity for questions. This overview will include information regarding the environmental review process and the role the Planning Commission plays in that process making recommendations on some, and serving as the decision maker of other types of projects. It is intended that this overview will be the first of many that goes over CEQA, specific topic areas, and other documents in completion of the Planning Commission’s Work Program for Fiscal Year 2025- 2026. Exhibits 1.City Council Ordinance No. CS-485 (on file with the City Clerk) Aug. 6, 2025 Item #2 2 of 3 Exhibit 1 City Council Ordinance No. CS-485 (on file with the City Clerk) Aug. 6, 2025 Item #2 3 of 3 Overview of the California Environmental Quality Act (CEQA) and New Legislation Eric Lardy, City Planner Mike Strong, Assistant Director Community Development August 6, 20251 CEQA Overview and Discussion 22 CEQA makes environmental protection a mandatory part of a decision-making process. CEQA applies to all projects subject to public agency discretionary action. Intent is to inform decisionmakers about the potential environmental effects of the proposed activities What is CEQA? CEQA Overview and Discussion 33 The statute – Public Resources Code Sections 21000 et seq. The Guidelines – California Code of Regulations Title 14, Section 15000 et seq. The courts – ongoing case law. Local procedures – CMC Chapter 19.04. Where are the CEQA rules? CEQA Overview and Discussion 44 “Discretionary project” means a project which requires the exercise of judgment or deliberation when the public agency or body decides to approve or disapprove a particular activity, as distinguished from situations where the public agency or body merely has to determine whether there has been conformity with applicable statutes, ordinances, regulations, or other fixed standards. The key question is whether the public agency can use its subjective judgment to decide whether and how to carry out or approve a project. (CEQA Guidelines 15357) Applies to all Discretionary Actions CEQA Overview and Discussion 55 “Ministerial“ describes a governmental decision involving little or no personal judgment by the public official as to the wisdom or manner of carrying out the project. The public official merely applies the law to the facts as presented but uses no special discretion or judgment in reaching a decision. A ministerial decision involves only the use of fixed standards or objective measurements, and the public official cannot use personal, subjective judgment in deciding whether or how the project should be carried out.…A building permit is ministerial if the ordinance requiring the permit limits the public official to determining whether the zoning allows the structure to be built in the requested location, the structure would meet the strength requirements in the Uniform Building Code, and the applicant has paid his fee. (CEQA Guidelines 15363) Some actions are Ministerial Types of Actions for Planning Commission 1.Quasi-Judicial Land Use Permits (Site Development Plans, Tentative Maps) 2.Recommendations on Legislative Actions (General Plan Amendment, Rezones) 3.Appeals of City Planner Decisions 6 CEQA Overview and Discussion Main Types of Compliance •Statutory and Categorical Exemptions •Negative Declarations and Mitigated Negative Declarations (ND or MNDs) •Environmental Impact Reports (EIRs) •Tiering Documents, Subsequent/Supplemental, Addendums, 15183 Findings Carlsbad Premium Outlets Kiosk Program 7 Prepare Initial Study CEQA Process Simplified Determine if Action is a Project Review for Exemptions Identify Significant Impact(s) Identify Mitigation Prepare EIR Prepare MND Prepare ND Prepare DRAFT Notice of Exemption Prepare Addendum, Supplement, or Subsequent Review for past CEQA No CEQA YES YES YES YES YES No No No No No Initial Study CEQA Process “Simplified” Exemption Process 1.City Planner approved all exemptions (Prior to February 2025) 2.All Exemptions approved by Decision Maker (City Council, Planning Commission, or Administrative Action) 19.04.070 3.DRAFT Notice of Exemptions – Posted 30 days before action 9 CEQA Overview and Discussion Three Types of Exemptions 1.Statutorial – blanket exemptions given by Legislature. 2.Categorical – types or classes of projects determined to not have a significant impact. 3.“Common sense” or general rule – CEQA only applies to projects with potential for significant impact on environment. 10 CEQA Overview and Discussion Statutory Exemptions 11 CEQA Overview and Discussion Ongoing projects.Emergency repairs.Feasibility and planning studies. Ministerial approvals (absence of discretion). Common Categorical Exemptions 1.Class 1: Existing facilities. •Limited scope of activity (addition of ≤ 50% or 10k SF) •Examples include alterations, restoration, rehabilitation and minor additions 2.Class 2: Replacement or reconstruction. •Applies to replacing or rebuilding structures on the same site with substantially the same purpose and capacity •Covers schools/hospitals (≤ 50% capacity increase), commercial buildings, utility systems, and electric undergrounding •Projects must involve negligible or no expansion beyond the original facility’s function 3.Class 3: New construction or minor conversion of small structures. •Applies to small-scale construction such as single-family homes (up to three in appropriately zoned urban areas), duplexes (up to four units), and commercial structures (≤ 2,500 SF or ≤ 10,000 SF in urbanized zones) with no significant hazardous substance use •Includes minor utility extensions and accessory structures like garages, fences, pools, and patios that support such development 4.Others: a total of 30+ categories. •Vary in scope but all apply to projects with little to no environmental impact 12 CEQA Overview and Discussion Common Categorical Exemptions 1.Class 32: Infill. A.Plan & Zoning Compliance: The project must align with applicable general plan and zoning designations and policies. B.Site Characteristics (must meet all requirements) I.Development must be within city limits II.On ≤ 5 acres III.Surrounded by urban uses with no habitat value for sensitive species C.Environmental & Infrastructure Suitability: The project must avoid significant impacts to biological resources, traffic, noise, air, or water quality, and be fully served by necessary public utilities and services. 13 CEQA Overview and Discussion Categorical Exemptions Cont’d Further review may still be required if: 1.There are unusual circumstances; or 2.There are exceptions to the use of a categorical exemption such as a sensitive location, cumulative impact, scenic highways, etc. 14 CEQA Overview and Discussion Preparation of an Exemption 1.If eligible, staff assembles evidence and prepares supporting documentation. 2.Draft Exemptions for Permits posted online 30- days before Planning Commission Hearing 3.Decision Maker has option to approve project or remand back to staff 15 CEQA Overview and Discussion Environmental Documents 1.Initial study – identify potential environmental impacts. 2.Three potential environmental review documents. - No significant impacts (ND). - Significant impacts that can be mitigated (MND). - Some impacts that cannot be avoided or mitigated (EIR). 16 CEQA Overview and Discussion 17 What Do Initial Studies under CEQA Cover? Aesthetics Agriculture Air Quality Biological Resources Cultural Resources Geology and Soils Greenhouse Gas Emissions Energy Use Hazards and Hazardous Materials Hydrology and Water Quality Land Use and Planning Mineral Resources Noise Population and Housing Public Services Recreation Tribal Cultural Resources Transportation and Traffic Utilities and Service Systems Wildfire 17 Preparation of a ND / MND / EIR 1.Draft ND / MND / EIR. 2.Fair argument standard. 3.Public review period. 4.State agency review. 5.Public hearings. 6.Recirculation. 18 CEQA Overview and Discussion Other CEQA Findings 1.Use of “within a scope” finding (15162). 2.Use of addenda (15164). 3.Use of subsequent environmental document. 4.Consistency with Community Plan or Zoning (15183 Exemption) Carlsbad Premium Outlets Kiosk Program 19 AB 130 & SB 131 (Trailer Bills 6/30/35) 1.AB 130 – Infill Housing NEW Statutory Exemption 2.AB 131 – “Near Miss” Streamlining and new Statutory Exemptions 20 CEQA Overview and Discussion AB 130 Infill Housing NEW Statutory Exemption •Up to 20 Acres •Within Urban Area (75 percent urban uses) •Consistent with General Plan and Zoning •At least 15 units per acre •Senate Bill 35 Eligibility requirements (no historic structures, wetlands, prime farmland) •NEW Tribal Consultation Guidelines •Phase 1 Environmental required 21 SB 131 1.“Near Miss” Streamlining 2.New Statutory Exemptions: 22 CEQA Overview and Discussion Infill Housing Farmworker Housing Housing Element Rezoning State Climate Adaptation Strategy Linear Broadband Right of Way Public Park and Recreational Trail Small, Disadvantaged Water and Sewer System High-Speed Rail Stations and Maintenance Facilities (under certain conditions) Day Care, Health Center, Rural Health Clinic, Nonprofit Food Bank, Food Pantry, and Advanced ManufacturingWildfire Risk Reduction Projects Community Water System Questions, Public Testimony, and Discussion 23 Overview of the California Environmental Quality Act (CEQA) and New Legislation Eric Lardy, City Planner Mike Strong, Assistant Director Community Development August 6, 202524 Planning Application submittal attempt CEQA review REQUIRED: Within CEQA time limits Decision making REQUIRED: Within PSA time limits Application Deemed Complete Application Intake Checklist Review REQUIRED: Minimum submittal intake requirements Application Routed for 30-Day City Review REQUIRED: Minimum submittal intake requirements * All preliminary exemption determinations (marked as “draft”) should be posted to the website when completed. The goal is to have a minimum 30-day posting period before action taken by PC/CC. CEQA TIME LIMITSEnvironmental Review Activity # Days until Activity is Complete Starting Point Preliminary Exemption determination or Initial Study of potential environmental effects 30 days Day application accepted as complete* Completion of Negative Declaration 180 days Day application accepted as complete* Completion of Environmental Impact Report 14 days Day application accepted as complete* PSA TIME LIMITS Environmental Review Status # Days until Decision Required Ending Point Preliminary Exemption determination or Initial Study of potential environmental effects 60 days TBD Completion of Negative Declaration 60 days PC/CC certification Completion of Environmental Impact Report 60 days PC/CC certification Standard CEQA Timeline Planning Application submittal attempt CEQA review REQUIRED: Within CEQA time limits Decision making REQUIRED: Within PSA time limitsAB 130 Tribal Consultation (133-148 days) Application Deemed Complete Application Intake Checklist Review REQUIRED: Minimum submittal intake requirements Application Routed for 30-Day City Review REQUIRED: Minimum submittal intake requirements AB 130 Tribal Timelines # Days until Activity is Complete Starting Point Tribe Notification or Notice of Exemption 14 days Day application accepted as complete Ability for Tribe to Accept Consultation Invite 60 days Receipt of notice? Unclear Initiation of Consultation Period 14 days Accept of Consultation Consultation Period 45 days (subject to one- time 15-day extension upon tribal request) Initiation of Consultation * would have an exemption determination * max of 5 public hearings * All preliminary exemption determinations (marked as “draft”) should be posted to the website when completed. The goal is to have a minimum 30-day posting period before action taken by PC/CC. CEQA TIME LIMITS Environmental Review Activity # Days until Activity is Complete Starting Point Preliminary Exemption determination or Initial Study of potential environmental effects 30 days Day application accepted as complete* Completion of Negative Declaration 180 days Day application accepted as complete* Completion of Environmental Impact Report 14 days Day application accepted as complete* PSA TIME LIMITS Environmental Review Status # Days until Decision Required Ending Point Preliminary Exemption determination or Initial Study of potential environmental effects 60 days TBD Completion of Negative Declaration 60 days PC/CC certification Completion of Environmental Impact Report 60 days PC/CC certification AB 130 Timeline Item 1 Government Code §65915: Allows a developer to increase density (total # homes) allowed per GP Allows reductions in development standards (e.g. height limits, setbacks, etc.) when standards prevent achieving density allowed per state law Specifies a certain number of the new dwelling units must be reserved as affordable housing 27 STATE DENSITY BONUS LAW TYLER STREET HOMES Government Code §65589.5 Cities shall not disapprove a housing development project or impose a condition requiring lower density unless the city finds based on a preponderance of evidence that the project would have a specific, adverse impact on public health or safety, and there is no feasible method to satisfactorily mitigate or avoid such adverse impact 28 HOUSING ACCOUNTABILITY ACT TYLER STREET HOMES Government Code §65589.5 Only objective design standards can be applied to eligible housing development projects. Development standards that are subject to interpretation and subjective in nature cannot be applied to the project Objective Standards are provided in CMC and Village & Barrio Master Plan 29 HOUSING ACCOUNTABILITY ACT TYLER STREET HOMES Government Code §66300 Establishes pre-application process Sets limit of public hearings for a Housing Development Project to five Establishes requirements that a city cannot reduce density or add development restrictions 30 STATE HOUSING CRISIS ACT 31 Household incomes/limits: Income group AMI Family of Four Density Extremely Low <30% AMI <$49,600 26.5 du/ac Very Low 30-50% AMI $49,601 – $82,700 26.5 du/ac Low 50-80% AMI $82,699- $132,399 26.5 du/ac Moderate 80-120% AMI $132,400 - $156,949- 11.5 du/ac Above Moderate >120% AMI >$156,950 <11.5 du/ac “du/ac” = dwelling units per acre 32 The 2025 area median income (AMI) for a family of four is $130,800. 5th Cycle RHNA vs. 6th Cycle RHNA 5th Housing Cycle (2013 - 2021) Income Category Allocation Permits Issued (2013-2021)% Above Moderate 2,332 3,302 142% Moderate 1,062 420 40% Low 693 295 43% Very Low 912 92 10% Total 4,999 6th Housing Cycle (2021 - 2029) Income Category Allocation Permits Issued (2021-2024*)% Above Moderate 1,029 703 68% Moderate 749 319 43% Low 784 181 23% Very Low 1,311 94 7% Total 3,873 33 ITEM 4: General Plan & Housing Element Annual Progress Report 2024 Cumulative Progress Toward Meeting 6th Cycle RHNA Income level RHNA Annual Rate (8 yrs) Building Permits Issued June 30, 2020 – April 29, 2021 Building Permits Issued April 30, 2021 – Dec. 31 2021 Building Permits Issued 2022 Building Permits Issued 2023 Building Permits Issued 2024 (This Reporting Year) Total Very Low 1,311 163.88 46 1 0 44 3 94 Low 784 98.00 7 2 0 158 14 181 Moderate 749 93.63 55 37 82 94 51 319 Above Moderate 1,029 128.63 86 9 43 344 221 703 Total 3,873 484.14 194 49 125 640 289 1,297 ITEM 4: General Plan & Housing Element Annual Progress Report 2024 34 35 36 Substantial Evidence 1.Standard used to support ND / MND / EIR findings. 2.Facts and expert opinion supported by facts. 3.Not speculation, unsubstantiated opinion, etc. 37 CEQA Overview and Discussion Conclusion 1.CEQA overview 2.Project awareness (code amendments) 38 CEQA Overview and Discussion CEQA Overview and Discussion 3939 The statute – Public Resources Code Sections 21000 et seq. The Guidelines – California Code of Regulations Title 14, Section 15000 et seq. The courts – ongoing case law. Local procedures – CMC Chapter 19.04. Where are the CEQA rules? CEQA Overview and Discussion 4040 1.Inform decision makers and the public. 2.Identify ways to avoid or mitigate environmental damage. 3.Avoid or reduce environmental impacts. 4.Disclose to the public the reasons for approval of projects. CEQA Objectives CEQA Overview and Discussion 4141 Lead Agency – has primary approval authority over the project. Responsible Agency – has approval authority over some aspect of a project. Trustee Agency – has authority over some resources related to a project. Agency Types and Roles Timing of CEQA 1.Completing an application. 2.Preliminary environmental assessment. 3.Environmental clearances. 4.Project consideration/approval. Carlsbad Premium Outlets Kiosk Program 42 Tiers or Phases of CEQA 1.Tier 1 – is the proposed use or activity a “project” subject to CEQA? 2.Tier 2 – is the proposed use or activity exempt from further environmental review? 3.Tier 3 – environmental review and processing. Carlsbad Premium Outlets Kiosk Program 43 Approval of an Exemption 1.Adoption by City Planner with a Notice of Decision. 2.Notice of Exemption filed. Decision-making authority provided by CMC. City Council provided direction to propose changes so that the entity approving the project concurrently reviews the exemption request. 44 CEQA Overview and Discussion Checklist Topics 1.Aesthetics. 2.Agriculture. 3.Air quality. 4.Biological resources. 5.Cultural resources. 6.Others: 20 categories. 45 CEQA Overview and Discussion CEQA Overview and Discussion 4646 Ministerial vs. Discretionary Ministerial projects: 1.Conformance with fixed standards or objective measurements. 2.Requires little or no personal judgement by a public official. Discretionary projects: 1.Requires exercise of judgement or deliberation by a public agency to determine project approval. Approval of a ND / MND / EIR 1.Public hearing is not required by state law but the city requires adoption at public hearing. 2.MMRP (for MND / EIR). 3.Notice of Determination. 47 CEQA Overview and Discussion