California Environmental Quality Act: exemptions.

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Added an entirely new Section 1 amending Public Resources Code Section 21159.24 to create a categorical CEQA exemption for residential projects on urbanized infill sites meeting specific criteria, including affordable housing requirements, transit proximity (within half mile of a major transit stop), maximum 100 units, and density thresholds.

The site size threshold for the exemption is set at 5 acres (amended up from 4 acres during the amendment process), allowing larger residential projects to qualify for the CEQA exemption.

Established detailed eligibility criteria for the new exemption: project must be on an infill site in an urbanized area, community-level environmental review certified within 5 years, not more than 5 acres total area, not more than 100 residential units, at least 10 percent moderate-income sold or 10 percent low-income rented or 5 percent very low-income rented (or equivalent in-lieu fees paid), no single-level building exceeding 100,000 square feet, and must promote higher density infill housing.

Added a requirement that lead agencies approving an exempt residential project must file a notice of exemption with the Office of Land Use and Climate Innovation in the manner specified in Section 21152(b).

Added Section 2 providing that no state reimbursement is required under Article XIII B of the California Constitution because local agencies have authority to levy service charges, fees, or assessments sufficient to cover the mandated program costs.

Fiscal committee designation changed from 'no' to 'yes' and state-mandated local program designation changed from 'no' to 'yes', reflecting that the new CEQA exemption provisions impose duties on local agencies.

New Section 21080.38 exempts CEQA from applying to the issuance of lake/stream agreements, incidental take permits under the California Endangered Species Act, and waste discharge requirements by regional water quality control boards when issued for renewable energy projects.

New Section 21080.39 exempts CEQA from applying to transmission wire or cable projects (inspection, maintenance, repair, restoration, reconditioning, reconductoring with advanced conductors, replacement, or removal) that are undertaken within an existing right of way and where the applicant enters a legally binding agreement to restore the right of way.

The prior version's legislative intent statement directing future legislation to adopt permit streamlining guidance for GHG-reducing projects was removed entirely, replaced by the actual substantive exemptions now in the bill.

The legislative findings section was completely rewritten. The old findings focused on climate change impacts (wildfire, drought, heat waves), carbon capture and sequestration, and general GHG reduction goals. The new findings focus specifically on California's clean energy buildout targets (100% Clean Energy Act, Clean Energy Jobs and Affordability Act), the 6-12 month delay caused by Fish and Wildlife and water board permits, and reconductoring as a low-impact method to increase transmission capacity.

For the new transmission line exemption (Section 21080.39), lead agencies must file a notice of exemption with both the Office of Land Use and Climate Innovation and the county clerk in each affected county, adding a reporting obligation not present in the prior version.

The fiscal committee answer changed from 'no' to 'yes' and the state-mandated local program designation changed from 'no' to 'yes,' reflecting that the new exemptions impose additional duties on local agencies (filing notices of exemption) that trigger reimbursement analysis under the California Constitution.

The residential infill exemption in Section 21159.24 was retained with the same substantive changes (expanding site size from 4 to 5 acres, correcting 'low income' to 'low-income'), but its position in the bill shifted from being the primary section to a secondary one following the new energy-related exemptions.