SB328 - California Environmental Quality Act: exempt surplus land.

Amended IN Assembly August 26, 2026 Amended IN Assembly August 21, 2026 Amended IN Assembly August 13, 2026 Amended IN Assembly June 25, 2025 Amended IN Senate May 23, 2025 Amended IN Senate April 29, 2025 Amended IN Senate April 21, 2025 Amended IN Senate April 07, 2025 Amended IN Senate March 17, 2025 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Senate Bill No. 328 Introduced by Senator Grayson (Principal coauthor: coauthors: Assembly Member Members Ávila Farías and Wicks) (Coauthors: Assembly Members Blanca Rubio and Wallis) February 11, 2025 An act to amend Section 54221 of the Government Code, and to add Chapter 6.8 (commencing with Section 21189.60) to Division 13 of the Public Resources Code, relating to land use, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 328, as amended, Grayson. California Environmental Quality Act: exempt surplus land. (1) Existing law requires a local agency to declare land either “surplus land” or “exempt surplus land,” as supported by written findings, before the local agency may take any action to dispose of it consistent with an agency’s policies or procedures and defines terms for these purposes. Existing law generally requires a local agency, before disposing or negotiating to dispose of surplus land, to provide a written notice of the availability of the surplus land to specified entities and housing sponsors. Existing law provides that an agency is not required to follow the requirements for the disposal of surplus land for “exempt surplus land.” Existing law defines “exempt surplus land” to include certain types of land, including including, surplus land totaling 10 or more acres, consisting of either a single parcel, or 2 or more adjacent or nonadjacent parcels combined for disposition to one or more buyers pursuant to a plan or ordinance adopted by the legislative body of the local agency, or a state statute and certain surplus land that is a former military base, known as the Alameda Naval Air Station, if specified conditions are met. Existing law, the Planning and Zoning Law, requires each county and each city to adopt a comprehensive, long-term general plan for the physical development of the county or city, and specified land outside its boundaries, that includes, among other specified mandatory elements, a housing element. That law requires the planning agency of a city or county to provide by April 1 of each year an annual report to, among other entities, the Office of Land Use and Climate Innovation. This bill would revise the definition of “exempt surplus land” to remove the reference to buyers and instead mean 2 or more adjacent or nonadjacent parcels combined for disposition to one or more persons or entities, as specified. The bill would also exempt surplus land that is a former military base that was conveyed by the federal government to a local agency or a local reuse authority, and that is all or any portion of the Concord Naval Weapons Station, if certain requirements are met, including that the former military base has an aggregate area greater than 5 acres and that before disposition of the land, the local agency or local reuse authority has entered into a disposition and development agreement that stipulates that at least 25% of the aggregate residential units permitted to be developed will be restricted to lower income households with an affordable housing cost or affordable rent for a minimum of 55 years for rental housing and 45 years for owner-occupied housing, as specified. The bill would regulate actions challenging the disposition and would prescribe penalties for violations of these provisions. The bill would also regulate the actions of the local agency or local reuse authority, including, among other things, requiring the local agency or local reuse authority to include in the annual report the status of development of residential units on the former military base, as specified. (2) The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. This bill would provide that specified environmental review documents satisfy the requirements of CEQA for any project within the portion of the Concord Naval Weapons Station included within the boundaries of the area plan for the Concord Community Reuse Project, as provided, that has land use types and locations for those land use types that are consistent with the area plan land use map adopted in the area plan reviewed in those specified environmental review documents. types and locations for those land use types that are consistent with the area plan diagram and the project does not cause the aggregate development in the area plan to exceed the area plan maximum planning areawide total, as specified. The bill would further provide that any additional a project that contains land use types or location of land use types that are consistent with the area plan land use types in locations that are not consistent with the area plan land use map adopted in the area plan reviewed in the specified environmental documents diagram would be a project subject to subsequent or supplemental review pursuant to CEQA, and would be limited to review of the additional land use types or location of land use types, types that are not consistent with the area plan diagram, as provided. In any action or proceeding challenging a project described above, the bill would require a project applicant to pay any additional costs incurred by the courts in hearing cases relating to the challenge of the project and would require a lead agency to lodge a copy of the certified record of proceedings with the superior court within 10 calendar days after being served with a complaint or a petition for a writ of mandate. Because the bill imposes new duties on local agencies, the bill would impose a state-mandated local program. The bill would require the Judicial Council, on or before July 1, 2027, to adopt rules of court that require any action or proceeding brought to attack, review, set aside, void, or annul the approval of any project within the plan area or any subsequent or supplemental environmental impact review for any project within the plan area, including any potential appeals to the court of appeal or the California Supreme Court, to be resolved to the extent feasible within 270 calendar days of the filing of the certified record of proceedings with the court. The bill would make these provisions severable. (3) This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Concord. (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. This bill would provide that no reimbursement is required by this act for a specified reason. (5) This bill would declare that it is to take effect immediately as an urgency statute. Digest Key Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: YES Bill Text The people of the State of California do enact as follows: SECTION 1. Section 54221 of the Government Code is amended to read: 54221. As used in this article, the following definitions shall apply: (a) (1) “Local agency” means every city, whether organized under general law or by charter, county, city and county, district, including school, sewer, water, utility, and local and regional park districts of any kind or class, joint powers authority, successor agency to a former redevelopment agency, housing authority, or other political subdivision of this state and any instrumentality thereof that is empowered to acquire and hold real property. (2) The Legislature finds and declares that the term “district” as used in this article includes all districts within the state, including, but not limited to, all special districts, sewer, water, utility, and local and regional park districts, and any other political subdivision of this state that is a district, and therefore the changes in paragraph (1) made by the act adding this paragraph that specify that the provisions of this article apply to all districts, including school, sewer, water, utility, and local and regional park districts of any kind or class, are declaratory of, and not a change in, existing law. (b) (1) “Surplus land” means land owned in fee simple by any local agency for which the local agency’s governing body takes formal action in a regular public meeting declaring that the land is surplus and is not necessary for the agency’s use. Land shall be declared either “surplus land” or “exempt surplus land,” as supported by written findings, before a local agency may take any action to dispose of it consistent with an agency’s policies or procedures. A local agency, on an annual basis, may declare multiple parcels as “surplus land” or “exempt surplus land.” (2) “Surplus land” includes land held in the Community Redevelopment Property Trust Fund pursuant to Section 34191.4 of the Health and Safety Code and land that has been designated in the long-range property management plan approved by the Department of Finance pursuant to Section 34191.5 of the Health and Safety Code, either for sale or for future development, but does not include any specific disposal of land to an identified entity described in the plan. (3) Nothing in this article prevents a local agency from obtaining fair market value for the disposition of surplus land consistent with Section 54226. (4) Notwithstanding paragraph (1), a local agency is not required to make a declaration at a public meeting for land that is “exempt surplus land” pursuant to subparagraph (A), (B), (E), (K), (L), or (Q) of paragraph (1) of subdivision (f) if the local agency identifies the land in a notice that is published and available for public comment, including notice to the entities identified in subdivision (a) of Section 54222, at least 30 days before the exemption takes effect. (c) (1) Except as provided in paragraph (2), “agency’s use” shall include, but not be limited to, land that is being used, or is planned to be used pursuant to a written plan adopted by the local agency’s governing board, for agency work or operations, including, but not limited to, utility sites, property owned by a port that is used to support logistics uses, watershed property, land being used for conservation purposes, land for demonstration, exhibition, or educational purposes related to greenhouse gas emissions, sites for broadband equipment or wireless facilities, and buffer sites near sensitive governmental uses, including, but not limited to, waste disposal sites, and wastewater treatment plants. “Agency’s use” by a local agency that is a district shall also include land disposed for uses described in subparagraph (B) of paragraph (2). (2) (A) “Agency’s use” shall not include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development. Property disposed of for the sole purpose of investment or generation of revenue shall not be considered necessary for the agency’s use. (B) In the case of a local agency that is a district, excepting those whose primary mission or purpose is to supply the public with a transportation system, “agency’s use” may include commercial or industrial uses or activities, including nongovernmental retail, entertainment, or office development or be for the sole purpose of investment or generation of revenue if the agency’s governing body takes action in a public meeting declaring that the use of the site will do one of the following: (i) Directly further the express purpose of agency work or operations. (ii) Be expressly authorized by a statute governing the local agency, provided the district complies with Section 54233.5 if applicable. (d) (1) “Dispose” means either of the following: (A) The sale of the surplus land. (B) The entering of a lease for surplus land, which is for a term longer than 15 years, inclusive of any extension or renewal options included in the terms of the initial lease, entered into on or after January 1, 2024. (2) “Dispose” shall not mean either of the following: (A) The entering of a lease for surplus land, which is for a term of 15 years or less, inclusive of any extension or renewal options included in the terms of the initial lease. (B) The entering of a lease for surplus land on which no development or demolition will occur, regardless of the term of the lease. (e) “Open-space purposes” means the use of land for public recreation, enjoyment of scenic beauty, or conservation or use of natural resources. (f) (1) Except as provided in paragraph (2), “exempt surplus land” means any of the following: (A) Surplus land that is transferred pursuant to Section 25539.4 or 37364. (B) Surplus land that is less than one-half acre in area and is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes. (C) Surplus land that a local agency is exchanging for another property necessary for the agency’s use. “Property” may include easements necessary for the agency’s use. (D) Surplus land that a local agency is transferring to another local, state, or federal agency, or to a third-party intermediary for future dedication for the receiving agency’s use, or to a federally recognized California Indian tribe. If the surplus land is transferred to a third-party intermediary, the receiving agency’s use must be contained in a legally binding agreement at the time of transfer to the third-party intermediary. (E) Surplus land that is a former street, right-of-way, or easement, and is conveyed to an owner of an adjacent property. (F) (i) Surplus land that is to be developed for a housing development, which may have ancillary commercial ground floor uses, that restricts 100 percent of the residential units to persons and families of low or moderate income, with at least 75 percent of the residential units restricted to lower income households, as defined in Section 50079.5 of the Health and Safety Code, with an affordable sales price or an affordable rent, as defined in Section 50052.5 or 50053 of the Health and Safety Code, for 55 years for rental housing, 45 years for ownership housing, and 50 [Text truncated for display. Full text available on Congress.gov.]