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HomeMy WebLinkAbout2025-09-25; Impacts and Implications Associated with Assembly Bill 130 (Districts -All); Barberio, GaryCouncil Memorandum September 25, 2025 To: From: Via: Honorable Mayor Blackburn and Members of the City Council Gary Barberio, Deputy City Manager, Community Services Jeff Murphy, Community Development Director Sheila Cobian, Assistant City Manager jjlS.-} {city of Carlsbad Memo ID# 2025055 Re: Impacts and Implications Associated with Assembly Bill 130 (Districts -All) Passed on June 30, 2025, as part of the 2025-26 state budget, Assembly Bill (AB) 130 is the latest in a series of state housing laws that aim to address the state's housing shortage by expediting local housing approval and construction. Among other things, AB 130 established a new exemption from the California Environmentally Quality Act (CEQA) for eligible housing projects. This Council Memorandum provides an overview of this new state legislation. Background There are several key provisions included in AB 130, which are reflected below. The first two listed items are further covered in the "Discussion" section of this memorandum. • Limits local governments' ability to adopt new/modify existing residential building standards between 2025 and 2031. • Introduces a new CEQA exemption for housing projects. • Makes permanent various provisions from the Housing Accountability Act and the Permit Streamlining Act, including a permanent five-hearing limit for housing projects (the five-hearing limit provision was due to sunset in 2035). • Limits fines imposed by Homeowner Associations (HOAs) to a maximum of $100 per violation. • Increases the renter's tax credit and adds reporting requirements for housing programs. Discussion Local Development Standards Moratorium From October 1, 2025, to June 1, 2031, cities and counties are prohibited from modifying state residential building standards unless specific conditions are met, such as an emergency or necessary safety update. Put another way, AB 130 represents a statewide freeze on building standards updates affecting residential development for the next six years. The logic behind the moratorium was that it will provide enhanced regulatory certainty for housing projects by restricting the ability of jurisdictions from imposing new or increasingly stringent "reach codes" that exceed established statewide Community Services Branch Community Development Department 1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-2600 t Council Memo -Impacts and Implications Associated with Assembly Bill 130 (Districts -All} September 25, 2025 Page 2 standards. In doing so, it is argued that the moratorium is anticipated to streamline the permitting process, reduce compliance costs and expedite the timeline for bringing proposed developments into conformance with applicable building codes. This change does not immediately affect the city's Climate Action Plan but will limit the city's ability to impose more stringent energy building codes on new development should the city start falling behind its 2035 and/or 2045 GHG emission targets. Broad Housing CEQA Exemption A new CEQA exemption was introduced under AB 130, which is commonly referred to as the Broad Housing Exemption. Unlike the more commonly applied categorical CEQA exemptions for housing projects, this is a statutory CEQA exemption 1. Statutory exemptions are absolute, meaning that if a project meets the exemption criteria, the project's environmental review and CEQA compliance requirements are complete regardless of the potential for environmental impacts ---no exceptions. The Broad Housing Exemption applies to housing development projects meeting certain conditions relating to size, density, location, and use, and are not located on hazardous or environmentally sensitive sites. The exemption requires local governments to notify California Native American tribes affiliated with the project site and invite consultation within set timeframes ---this is the first and currently the only CEQA exemption requiring tribal consultation. AB 130 also requires that prevailing wage requirements apply to 100% affordable housing projects, even if the project is not classified as a public work project. Additionally, AB 130 mandates the use of a skilled and trained workforce for any buildings exceeding 85 feet in height. Next Steps The city's Community Development Department has updated its CEQA info bulletin (IB-150} to address recent City Council changes involving CEQA exemption processing (Attachment A) and added a new section called "special exemptions for housing," which includes an overview of the Broad Housing Exemption, amongst others. A copy of the updated info bulletin is attached (Attachment B} and is available on the city's website2. Staff will direct community members and applicants to the info bulletin/website should they have general questions about this new law. Attachments: A. City Council staff report, dated January 28, 2025 (on file with the City Clerk's Office) B. Informational Bulletin IB-150 1 Statutory exemptions are written and adopted by the state legislature and excludes a project from CEQA consideration regardless of the potential for environmental impacts. A common statutory exemption is the one applied to ministerial (building) permits. Categorical exemptions, in contrast, are adopted by the California Secretary for the Natural Resources Agency and subject to disqualifying exceptions. In other words, a project that falls within a categorical exemption may still not be exempt from CEQA given its unusual or cumulative environmental impacts. A common categorical exemption is the "infill housing development exemption," which has been used by many local housing projects. 2 www.carlsbadca.gov/departments/community-development/departmental-information-bulletins Council Memo -Impacts and Implications Associated with Assembly Bill 130 (Districts -All) September 25, 2025 Page 3 cc: Geoff Patnoe, City Manager Cindie McMahon, City Attorney Paz Gomez, Deputy City Manager Mike Calderwood, Fire Chief Christie Calderwood, Police Chief Darcy Davidson, Fire Marshal C. Dalton Sorich, Assistant City Attorney Jason Haber, Intergovernmental Affairs Director Jamie Wood, Environmental Sustainability Director Mike Strong, Assistant Director Eric Lardy, City Planner Community Development Department | 1635 Faraday Ave. | Carlsbad, CA 92008 | www.carlsbadca.gov California Environmental Quality Act IB-150 The California Environmental Quality Act (CEQA) is one of the most significant state environmental protection laws affecting project-related processing and decision- making in the public sector. CEQA is an evolving policy that has been updated by the state legislature and interpreted by the courts many times over the years. Since CEQA is mainly a process, this Info- Bulletin only summarizes relevant laws and outlines the city’s processing requirements and CEQA’s role in development. Please consult the applicable state and local laws and guidelines for a complete understanding of the requirements. BACKGROUND The California Environmental Quality Act, which became law in 1970, is our state’s landmark environmental law. CEQA applies to all discretionary actions undertaken or funded by a public agency. Its basic purpose has been to foster transparency and integrity in public decision making so that consideration is given to preventing or minimizing the damage public decisions may have on the environment before the action is approved or carried out. CEQA’s fundamental goals are relatively basic: •Disclose potential significant adverse impacts of a project to the public and decision-making body. •Prevent or minimize damage to the environment through project alternatives and mitigate significant impacts when feasible. •Offer opportunities for public and other agencies to become involved in the review process. •Require decision-makers to consider the balance between development and the environment. While there are several elements and components to CEQA that help determine whether a project may adversely impact the environment and what requirements need to be met if impacts are identified, CEQA regulatory authority essentially comes from two complimentary state code sections. CEQA STATUTE CEQA’s legislative authority is imbedded within Public Resources Codes (PRC) §21000 et seq and sets forth the overarching regulation and policy for environmental review and protection. This is referred to as CEQA statute. CEQA statute does not directly regulate land uses, but it codifies a statewide requirement that all state and local agencies must make environmental review a mandatory part of the decision-making process in regulating public and private activities. CEQA GUIDELINES The Governor’s Office of Land Use & Climate Innovation (LCI) is responsible for drafting updates and developing new guidelines to reflect the requirements set forth in the PRC, as well as court decisions interpreting the statute and practical planning considerations. The proposed guidelines are then transmitted to the California Secretary for the Natural Resources Agency (CNRA), who considers, certifies and adopts LCI draft guidelines. Attachment B Ccityof Carlsbad Informational Bulletin IB-150_CEQA_Sept. 2025 Page 2 of 12 The regulatory authority for the guidelines is found in the CA Title 14 Code of Regulations (CCR) §15000 et seq, which set forth the steps on how to determine whether an activity is subject to environmental review, what steps are involved in the environmental review process, and the required content of environmental documents. CARLSBAD ENVIRONMENTAL PROCEDURES The city adopted Carlsbad Municipal Code Chapter 19.04, which establishes the procedures for evaluating the environmental impacts of public and private projects and for administering the city’s responsibility under CEQA. This chapter follows CEQA statute and supplements CEQA guidelines. BASIC ELEMENTS OF CEQA REVIEW CEQA is not a permit, and it does not grant cities any special powers to regulate property. CEQA is a process through which public agencies, project developers, and the public must evaluate a project, understand its environmental impacts, and develop measures to reduce those impacts which must be publicly vetted before a decision can be made. And as with any process, there are steps that must be followed. ONLY “PROJECTS” ARE SUBJECT TO CEQA When the term “CEQA review” is used, visions of technical studies and detailed analysis often come to mind. Actually, however, there are several city actions and activities that are either exempt from or otherwise do not require review under CEQA. Before initiating any environmental review, the city must first determine whether the action or activity being considered even requires review under CEQA. City actions and activities requiring review pursuant to CEQA are referred to as a “project.” PRC §21065, CCR §15060(c)(3), and CCR §15378 provide definitions, but generally, a CEQA project includes any action taken by a public agency where discretion is applied and if approved, the action has the potential to cause one of the following: • A direct physical change in the environment; or, • A reasonably foreseeable indirect physical change in the environment. Actions taken by the city that typically do not qualify as a “project” under CEQA include, but not limited to proclamations, presentations, service agreements, appointments, donations, elections, fees, budgets, and grant awards. CERTAIN “PROJECTS” MAY BE EXEMPT If the action is found to be a “project,” the city then determines whether the project is exempt from further environmental review under CEQA. There are three primary types of exemptions to consider as outlined in CCR §15061. To learn more about CEQA exemptions unique to residential and mixed-use residential development, refer to the section titled “SPECIAL EXEMPTIONS FOR HOUSING” starting on page 8 of this bulletin. Statutory Exemptions Statutory exemptions are written and adopted by the state legislature (PRC §21080) and found in CEQA Guidelines (CCR §15260 et seq). Statutory exemptions are absolute, meaning that if a project falls under the exemption, there are no exceptions and the project's environmental review and CEQA compliance requirements are complete. Common statutory exemptions include the following: • Ministerial (building) permits (CCR §15268) • Business licenses (CCR §15268) • Feasibility & planning studies (CCR §15262) • Emergency projects (CCR §15269) • Approval of new permit fees (CCR §15273) IB-150_CEQA_Sept. 2025 Page 3 of 12 Categorical Exemptions Categorical exemptions are certified/adopted by the CNRA, authorized under state law (PRC §21084) and found in CEQA Guidelines (CCR §15300 et seq), with the following being the most applied. • In-fill development (CCR §15332) • Leasing agreements (CCR §15301) • Minor alteration to land (CCR §15304) • Minor land divisions (CCR §15315) • Existing facilities (CCR §15301) However, unlike statutory exemptions that are absolute, a project that falls within a categorical exemption may still not be exempt from CEQA under the following conditions: • Reasonable possibility of a significant effect on the environment due to unusual circumstances. • Significant cumulative impacts from projects of the same type will result. • The project will have impacts on a “uniquely sensitive environment.” Regarding the third condition, city code (§19.04.070.C) provides specificity on what qualifies as “uniquely sensitive environment” such as impacts to sensitive, rare, endangered, or threatened habitat, wetlands, hazardous materials, archaeological or cultural resources, or other factors requiring special review. Common Sense Exemptions Common Sense Exemptions (CCR §15061(b)(3)) apply to projects where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. City Selection of Applicable Exemption When determining the appropriate exemption for a project, pursuant to CCR §15061(b), the city starts with the list of statutory exemptions, followed by categorical exemptions, and concludes with the common sense exemption. A project may qualify for multiple exemptions, but statutory exemptions take precedence over categorical and common sense exemptions --- this is because statutory exceptions are established by the state legislature and are the most legally defensible. INITIAL STUDY If the project does not fall under an exemption, the city then undertakes an “initial study” to determine what type of environmental document is needed to support the continued processing of the application. An initial study is a preliminary analysis comprised of a series of questions prepared by the “lead agency” (typically, the city) to determine if the project may have a significant impact on a specified environmental resource, thereby requiring mitigation measures or project changes in order to reduce the impacts to a level of less than significant (PRC §21080(c) & (d); CCR §15063). Generally, the city utilizes the initial study template found in CCR Appendix G (Environmental Checklist Form) to assist city staff with the preparation and analysis of environmental documents. Included in the checklist are environmental issues presented in the form of questions that are intended to identify the potential impacts of proposed projects. The city also developed an Environmental Impact Assessment Information, Form P-1(D) to help facilitate the environmental review process. In terms of addressing potentially significant adverse impacts, the impact threshold questions provided in CCR Appendix G may be used as guidelines to determine the level of significance for any given impact, provided that they are relevant to a project's environmental effects and supplemented as necessary to address additional environmental effects specific to the proposed project, the project site, and its surroundings. IB-150_CEQA_Sept. 2025 Page 4 of 12 The preparation of the initial study should be based on a comprehensive project description, initial research, site visit, technical studies (if determined necessary), and other available and relevant documentation. GUIDELINES FOR DETERMINING SIGNIFICANCE To assist in determining whether a specific impact is significant under CEQA, public agencies are encouraged to develop administrative guidance often referred to as thresholds of significance. Thresholds help establish a clear bright line or standard for when a city determines an impact is significant under CEQA. That is, a threshold for a given environmental impact defines the level above which the city will normally consider impacts to be significant, and below which it will normally consider impacts to be less than significant. Thresholds may be defined either as quantitative or qualitative standards, or sets of criteria, whichever is most applicable to each specific type of environmental impact. For example, quantitative criteria are often applied to traffic, air quality, and noise impacts, while aesthetic impacts are typically evaluated using qualitative thresholds. A city may gather and apply thresholds of significance from a variety of places including, but not limited to, general plan policies, ordinances, resolutions, other agencies’ thresholds, and industry standards. Often thresholds change in response to CEQA case law; refinement of recognized scientific analysis of impact thresholds; or changes in federal, state, and local regulations. In some cases, a city may utilize project- specific significance thresholds. For Carlsbad, the city developed and maintains significance determination thresholds, which provide general technical guidance in evaluating the potential significance of a project’s impact on each environmental issue (Form P-1(D)). SCREENING CRITERIA In another method similar to creating significance thresholds, public agencies are encouraged to develop “screening criteria” to help quickly and easily screen out projects that are likely not to cause significant environmental impacts. The city has developed and maintains screening criteria for a few resources. Projects that meet established screening criteria are presumed to not have a significant environmental impact on a particular environmental resource and therefore do not require additional mitigation. In some cases, applicants may need to prepare an analysis to prove that their project meets established screening criteria. Projects that do not meet the screening criteria may be required to complete additional analysis (technical studies) and compare the findings with the appropriate threshold of significance and mitigate the impacts accordingly. TECHNICAL STUDIES Technical studies are often required to assist in preparing the initial study, or to determine and document whether a project has a less than significant impact. These studies may be prepared by staff or an outside consultant. If prepared by a consultant, the study shall be reviewed by city staff, or a third-party consultant hired by the city. To help ensure the quality, accuracy, and completeness of technical reports and increase the efficiency of the environmental review process and avoid unnecessary time delays, the city encourages consultants to follow the Report Format and Content Requirements for each study type as established by the County of San Diego. IB-150_CEQA_Sept. 2025 Page 5 of 12 MINIMIZING ENVIRONMENTAL IMPACTS If potential adverse environmental impacts are identified, the CEQA process next attempts to identify ways to prevent or reduce these impacts to a level of less than significant by requiring consideration of mitigation measures. Pursuant to CCR §15370, mitigation includes: o Avoiding the impact altogether by not taking a certain action or parts of an action. o Minimizing impacts by limiting the degree or magnitude of the action and its implementation. o Rectifying the impact by repairing, rehabilitating, or restoring. o Reducing or eliminating the impact over time by preservation and maintenance operations during the life of the action. o Compensating for the impact by replacing or providing substitute resources or environments. Project revisions may also be utilized to reduce impacts, with changes in design, location, operations, or scope. Effective project revisions will achieve any or all of the above objectives. In reaching its conclusions, the city must use its own independent and objective judgment, based on the information before it, to determine that "clearly no significant effect on the environment would occur" (PRC §21064.5). Further, there must be evidence in the record as a whole to support the conclusion that the level of mitigation or project revision sufficiently avoids or eliminates a potential significant effect. Upon approval, the city must also adopt a mitigation monitoring or reporting program (CCR §15097). TYPES OF CEQA DOCUMENTS PREPARED Following completion of the initial study, the public agency then must determine what type of environmental document to prepare (PRC §21080.1 & §21080.3; CCR §15063 & 15365). Negative Declaration A Negative Declaration (ND) is a document used to show that a proposed project will not have a significant effect on the environment and therefore does not require a full Environmental Impact Report. Essentially, it's a way for public agencies to declare that a project's potential environmental impacts are either non- existent or less-than-significant level (CCR §15070 et seq). Mitigated Negative Declaration The primary purpose of a Mitigated Negative Declaration (MND) is to address and mitigate potential significant environmental effects of a project, thereby avoiding the need for a more extensive analysis and review. A MND signifies that a project's potential adverse impacts have been reduced to a less than significant level through specified mitigation measures (CCR §15070 et seq). Environmental Impact Report Environmental Impact Report (EIR) is a document required to analyze the potential environmental effects of a project and identify ways to minimize harm. Its primary purpose is to inform decision-makers and the public about a project's potential environmental impacts, propose mitigation measures, and explore feasible alternatives. This document is often reserved for projects that cannot fully mitigate their impacts to a level of less than significance. In order to approve the project, the IB-150_CEQA_Sept. 2025 Page 6 of 12 city must find, supported by substantial evidence, that the economic and social benefits of the project override any significant environmental impacts that would result from the project, commonly referred to as a Statement of Overriding Consideration (PRC §21100; CCR §15080 et seq & CCR §15120 et seq). Once a project has been approved, the public agency’s role is completed, unless further discretionary approval on that project is required. Altered conditions, changes, or additions to the description of a project (or subsequent discretionary approvals) that occur after an exemption, ND, MND, or EIR adoption may require additional analysis under CEQA or the public agency may determine that no further env. review is required. KEY CEQA PROCESSING TIMELINES Most permit processing timelines are driven by statute. The section below highlights the most common deadlines, but for more information on the entire process flows for discretionary permits, refer to the Community Development Department’s Permit & Service Delivery Guide. STARTS WITH A COMPLETE APPLICATION The Permit Streamlining Act (GOV §65920 et seq) was enacted in 1977 in order to expedite the processing of permits for development projects by imposing time limits within which local agencies must either approve or disapprove permits. Once an application is submitted, the city has 30 days to inform the applicant whether the application is complete (CCR §15060(a) & CCR §15101). If incomplete, the applicant addresses the deficiencies and then resubmits the application, which starts a new 30-day review period. If the agency fails to inform the applicant within the 30-day period, the application is "deemed complete" (GOV §65943) and the city is limited in requesting any new information from the applicant. Environmental processing commences after a development application is determined to be complete for processing and the permit applicant provides the necessary reports, studies, and documents required for environmental review. TIMELINES FOR EXEMPTIONS For projects that are eligible for a statutory, categorical, or common-sense exemption. • A draft Notice of Exemption (NOE) is prepared by city staff, which is a document essentially announcing that the project does not require a full environmental review process because it falls under a specific exemption. • The draft NOE is posted on the city’s website for public review at least 30 days before the project is considered for final decision (e.g., 30 days before the Planning Commission meeting). • The preliminary exemption determination and relevant findings are made part of the NOE and also included in the recitals within the approving resolution/ordinance that is prepared for discretionary permit/action. • The approved NOE is filed with the County Clerk within five days following approval of the project. A timely filed NOE establishes a 35-day statute of limitations for challenging project approvals that are deemed exempt, starting from the date the project was approved). NOEs not filed timely extends the legal filing period to 180 days. • In the staff report, the preliminary environmental determination is listed first, followed by the resolution and/or ordinance approving the project. After reviewing the environmental documents, the decision-maker usually approves both actions simultaneously. The decision maker can modify or make recommendations on the preliminary determination if it is consistent with law. There are additional restrictions and limitations in state housing law and CEQA Guidelines affecting housing projects. TIMELINES FOR ND AND MND • The ND or MND must be completed and presented for decision within 180 days from the date when the city deems the application complete. Timelines may be longer depending on the timeliness of submittals and resubmittals. IB-150_CEQA_Sept. 2025 Page 7 of 12 • Notice of Intent to Adopt must be posted for 20 days for an ND and 30 days for an MND. • Like exemptions, the decision-making authority for the discretionary permit/action considers and approves the ND or MND as part of their decision on the discretionary permit and/or action. • The environmental determination, relevant findings, and required mitigation/monitoring is incorporated into a separate approving resolution and/or ordinance. • In the staff report, the environmental determination is listed first, followed by the resolution and/or ordinance approving the project. The decision-maker usually approves both actions simultaneously. • The Notice of Determination (NOD) must be filed with the County Clerk within five days following approval of the project. A timely filed NOD establishes a 35-day statute of limitations for challenging project approvals that are deemed exempt, starting from the date the project was approved. NOEs that are not timely filed extends the legal filing period to 180 days. TIMELINES FOR AN EIR • An EIR must be completed and certified within 365 days of application completeness. Timelines may be longer depending on the timeliness of submittals and resubmittals (CCR 15109). • Prepare/complete the Initial Study, determine EIR required, and release a Notice of Preparation (NOP). The NOP must be issued within 30 days of determination and specify project. • Notice of Completion to be filed with state clearinghouse. • Public review: Notices sent to affected agencies, surrounding property owners, and requesting individuals. • The review and consultation period must be at least 30 days, 45 days when submitted to the state clearinghouse. • Final EIR. Certification prior to project approval and within one year from complete application. • Findings and Statement of Overriding Consideration needed for approvals with remaining unmitigated significant effects. • EIR Notice of Determination to be filed within five days of project approval. • The statute of limitations to challenge an EIR is 30 days. Notwithstanding, city procedures provide that the time limit to complete and approve, adopt, or certify the environmental document may be extended once for not more than 90 days upon consent of the applicant. PUBLIC ENGAGEMENT As previously noted, CEQA’s basic purpose is to foster transparency and integrity in public decision- making so that consideration is given to minimizing damage public decisions may have on the environment before the action is approved or carried out. As such, there are opportunities for the public to comment. IB-150_CEQA_Sept. 2025 Page 8 of 12 PUBLIC NOTICING Public involvement starts when an application is filed with the city pursuant to City Council Policy No.84 (Development Project Public Involvement Policy). Any public comments following that initial notification are used to help determine what environmental impacts will be studied and what type of environmental document will be needed. The public is also given an opportunity to comment on the environmental determination, during the times specified in the section entitled “Key CEQA Processing Timelines.” PUBLIC HEARINGS There are hearings, sometimes during and always after the public comment period. Public hearing notice requirements are covered by Government Code sections §65090 et seq. The possible approval, adoption, or certification of the environmental determinations will be announced as part of the public hearing notice provided for the discretionary action(s) required for project approval. The public is invited to be a part of this decision-making process. DECISION-MAKING BODY DELIBERATIONS Before making its decision whether to carry out the proposed project, the decision-making body (e.g., Planning Commission, City Council) needs to independently review and consider all relevant documents, reports, studies, or other materials that comprise the full environmental assessment of the project. The decision-maker must also review and consider all written and oral evidence submitted to the city in connection with the environmental assessment and the proposed project itself. The decision-making body should not approve a project as proposed if there are feasible alternatives/mitigation measures available which would substantially lessen the environmental effects or unless specific economic, social, or other conditions make the project alternatives or mitigation measures infeasible, and specific findings of overriding considerations have been made per CEQA. APPROVING PROJECTS WITH IMPACTS Although the State Legislature established policies concerning the maintenance of a quality environment and control of environmental pollution, the city also has obligations to balance public objectives, including economic and social factors, in determining whether and how a project should be approved, conditionally approved, or denied. In that regard, the decision-making body may balance environmental objectives with economic/social objectives in arriving at a final decision by weighing any adverse environmental effects against any positive effects/benefits to the public which could result from the proposed project. SPECIAL EXEMPTIONS FOR HOUSING The high cost of housing in California, especially in coastal cities, has been a concern for decades. New housing built over the past 10 years is only about half as much as what projections say is needed. This lack of supply has created greater demand and higher prices, resulting in what many call a statewide housing crisis. (IB-198). In response, the state legislature has adopted --- and continues to adopt --- legislation that makes it easier and quicker for homes to be built. An area of the legislature’s increasing focus has been to streamline and reform CEQA exemptions for development that includes housing units. IB-150_CEQA_Sept. 2025 Page 9 of 12 BROAD HOUSING EXEMPTION (PRC §21080.66) Passed as a 2025 budget trailer bill (AB 130), housing development projects meeting the following conditions are statutorily exempt from CEQA: Projects Requirements o The project qualifies as a housing development project: o Residential units only. o Mixed use where at least two-thirds of the project is devoted to residential use. o Mixed use where at least 50% of the project includes ≥500 units; none of the units may be dedicated as hotel, motel or other transient lodging. o Transitional, supportive or farm working housing. o The project is consistent with the city’s general plan, zoning, and local coastal program. o The project will result in a minimum density of 15 dwelling units/acre. Project Site Requirements o The site is not larger than 20 acres and meets one of the following: o Site currently/previously developed with residential and/or commercial use. o 75% of the site adjacent perimeter (three of four sides) developed with residential and/or commercial use. o 75% of the land within ¼ mile of the site developed with residential or commercial use. o With limited exceptions, the project site cannot contain any of the following resources or characteristics, even if the project is designed to avoid them: o Wetlands (and for sites within the Coastal Zone, cannot be within 100’ of a wetland even if the wetland is located offsite). o Sensitive habitat listed for state and federally protected species. o Lands identified for conservation in the city’s adopted MHCP. o High fire hazard severity zone. o Mapped FEMA floodway. o Delineated earthquake fault zone. o Lands under conservation plan/easement. o Registered as a hazardous waste site. o Farmland (prime/statewide significance). o Federal, state or local historical structure that requires demolition. Procedural Requirements • Density bonus projects qualify for this exemption. • Eligible for “near miss streamlining” (page 12). • Formal tribal notification and consultation must be completed. This consultation may result in the city imposing binding project conditions resulting from those negotiations. • A complete phase I Environmental Assessment pursuant to PRC §21080.66(c)(1)(A) must be completed and measures completed prior to building permit issuance. • For project sites located within 500 feet from I-5 and CA-78, special heating and ventilation requirements will be required. IB-150_CEQA_Sept. 2025 Page 10 of 12 • Projects where 100% of the units are dedicated to lower income households pay prevailing wage to all workers, except that apprentices may be paid at the applicable apprentice prevailing rate. • Projects that exceed 85 feet above grade pay prevailing wages as described above and use “skilled and trained” workforce. INFILL DEVELOPMENT EXEMPTION (CCR §15332) The infill development project exemption, also known as a “Cat 32” exemption, is a categorical exemption that has been in place for decades and applies to all development types…not just housing. However, considering that many housing applications utilize this exemption, a more detailed summary is provided below: Project Requirements • Consistent with current general plan and zoning designation. • May not result in a significant environmental impact on any one of the following: o Traffic o Noise o Air quality o Water quality Project Site Requirements • No more than five gross acres in size. • The site can be adequately served by all required utilities and public services. • Substantially surrounded by urban uses and development (e.g., three of four sides). • Cannot contain sensitive habitat listed for state or federally protected species, or lands identified for conservation in the city’s adopted MHCP, even if the project is designed to avoid impacts. Procedural Requirements • Density bonus projects qualify for this exemption. • Eligible for “near miss streamlining” (page 12). • Projects are first measured against the city’s significance thresholds to determine whether the project may result in significant effects related to traffic, noise, air quality, or water quality. • The city may require supporting documents and technical studies to substantiate the use of the exemption, including but not limited to biological survey, vehicle miles traveled (VMT) study, air quality analysis and/or noise study. • If analysis or studies identify impacts that must be mitigated to be less than significant, the project cannot utilize the exemption, and an initial study is performed to determine the appropriate CEQA document. RELIANCE ON GENERAL PLAN EIR (CCR §15183) This exemption process is specific to projects that are consistent with the density established by existing zoning and general plan policies, and what was studied as part of an EIR that was certified by the City Council. Project & Site Requirements • The development project is consistent with the development densities and zoning analyzed in the 2015 General Plan Update EIR or 2024 Housing Element Rezone Update Supplemental EIR. Procedural Requirements • Analysis and studies may be required to confirm that the following determinations can be made: IB-150_CEQA_Sept. 2025 Page 11 of 12 o There are no project specific environmental effects which are peculiar to the project or its site. o There are no project specific environmental impacts which the EIR failed to analyze as significant effects. o There are no potentially significant off-site and/or cumulative environmental impacts which the EIR failed to evaluate. o There is no substantial new information which results in more severe adverse environmental impacts than anticipated by the EIR. • The section does not affect any requirement to analyze potentially significant offsite or cumulative impacts. • Projects proposing density increases under state density bonus are NOT eligible for this exemption. The projects are not consistent with the density assumed in the EIR and therefore the EIR did not analyze the direct and cumulative impacts associated with the increased density. For example, the most recent density bonus provisions allowing a 100% density bonus were adopted after the Notice of Preparation for the 2021 Housing Element EIR was issued. HOUSING ELEMENT SITES (GOV §65583.2) This is not a CEQA specific exemption, but a provision of Housing Element law prohibiting a jurisdiction from requiring discretionary (permit) review for certain housing projects, thereby making it a “ministerial project” that is statutorily exempt under PRC §21080(b)(1), much like building permits. Project Requirements o Must be a qualifying housing project: o Residential units only. o Mixed-use developments consisting of the following conditions:  At least two-thirds of the new or converted square footage is designated for residential use.  At least 50% of the new or converted square footage is designated for residential use and the project meets both of the following: − The project includes at least 500 net new residential units. − No portion of the project is designated for use as a hotel, motel, bed and breakfast inn, or other transient lodging. o The development project proposes a minimum density of 20 dwelling units per acre. o At least 20% of the total units (including density bonus units) are affordable to lower income households. Site Requirements • Located on a site that was rezoned by the city on Jan. 30, 2024, as part of its 2021-2029 Housing Element Program 1.1. Procedural Requirements • This allowance does not supersede other state laws. Projects subject to any one of the following are NOT eligible for this exemption: o Projects proposing the subdivision of land, subject to the State Map Act. o Projects located within the California Coastal Zone, subject to the California Coastal Act. IB-150_CEQA_Sept. 2025 Page 12 of 12 • Except for established fees and objective design/development standards, project specific conditions and requirements cannot be imposed. • Density bonus projects qualify for this exemption. • The project must show compliance with all objective design and development standards. • While qualifying projects are not subject to discretionary review, public notice and public hearing are still required. However, discussion and action are strictly focused on assessing compliance with criteria required for streamlined projects, as well as any reasonable objective design standards. NEAR MISS STREAMLINING (PRC §21080.1) A 2025 budget trailer bill (SB 131) amended CEQA giving certain housing projects the ability to be processed under a simplified and focused environmental review, called “near miss streamlining”. • If a development project would otherwise be found exempt but for a single environmental condition --- e.g., no other environmental impacts identified except the project was found to contain sensitive habitat --- the CEQA document (ND, MND or EIR) is only required to examine the effects caused by the single condition --- i.e., the document is not required to analyze any other environmental impacts except the one. • If the initial study finds that an EIR is required, the EIR is not required to include discussion on alternatives or growth inducing impacts caused by the development, as typically required in EIRs. • Related or similar conditions on a project site (e.g., sensitive habitat is present on the site which has contributed to the area being mapped as high fire hazard) do not count as a single condition and therefore not eligible for near miss streamlining. • CEQA challenges are limited to the single condition being analyzed. • Near miss streamlining applies to the following statutory and categorical exemptions commonly applied to new housing development projects: o Broad housing exemption (PRC §21080.66) o Infill development exemption (CCR §15332) o Minor subdivisions (CCR §15315) o Minor land alterations (CCR §15304) YOUR OPTIONS FOR SERVICE Please contact the Planning Division at 442-339-2600 or via email at Planning@carlsbadca.gov for more information about environmental review and processing.