Hearing Examiner Dismisses SEPA Appeal
of Ordinance No. 2025-21
BAINBRIDGE ISLAND, WA — March 26, 2026: The City of Bainbridge Island’s motion to dismiss the State Environmental Policy Act (SEPA) appeal of Ordinance No. 2025-21 has been granted by the Hearing Examiner, concluding a nearly six-month appeal process.
The appeal, filed on September 26, 2025, challenged the City’s Determination of Nonsignificance (DNS) for Ordinance No. 2025-21. In a March 25, 2026 ruling, the Hearing Examiner found the appeal is barred under state law.
“There is no question that the SEPA review under appeal assesses the environmental impacts of the adoption of Ordinance 2025-21,” the Hearing Examiner wrote. “There is no question that Ordinance 2025-21 implements the housing element of the City’s comprehensive plan.”
State Law Prohibits SEPA Appeals in This Case
The ruling affirms that RCW 43.21C.495(4) prohibits administrative or judicial SEPA appeals for certain local actions that implement the housing element of a comprehensive plan.
Ordinance No. 2025-21 updates development standards (including floor area ratio (FAR), building height, and parking requirements) for 100% affordable housing projects in designated zoning districts, specifically the City’s Central Core and Ferry Terminal zoning districts east of SR 305. These changes make it easier to build affordable housing and put the City’s housing policies into action.
The Hearing Examiner determined that the appeal “falls squarely within” the type of action exempted from SEPA appeals under state law.
“RCW 43.21C.495(4) was adopted… to increase affordable housing options in response to an unprecedented housing crisis,” the Hearing Examiner stated. “Elimination of SEPA appeals reduces costs and delay due to the inherently long and costly processes associated with such appeals. The time and expense of this appeal is an excellent example of the time and expense involved in such appeals.”
Key Clarifications in the Ruling
- Applicability of SEPA exemption: The exemption applies to the adoption of ordinances, development regulations, amendments to developments regulations, and other nonproject actions that implement the housing element requirements of a comprehensive plan.
- Critical areas: The presence of a Critical Aquifer Recharge Area (CARA) does not change the applicability of the exemption.
- Project-based environmental review: Unless otherwise exempt from SEPA review, state law still requires project-based SEPA review of all future development in the City.
Supporting Housing Goals
Ordinance No. 2025-21 advances several goals in the City’s Comprehensive Plan, including:
- Expanding affordable housing opportunities
- Reducing regulatory barriers to housing development
- Supporting a more diverse housing supply across the community
These actions align with state legislation aimed at addressing Washington’s housing shortage by reducing delays and costs associated with appeals.
“The Appellant has made a valiant effort to render the plain and clear terms of a statute ambiguous. No such ambiguity is found,” the Hearing Examiner wrote. “There is no question that the SEPA review under appeal assesses the environmental impacts of the adoption of Ordinance 2025-21. There is no question that Ordinance 2025-21 implements the housing element of the City’s comprehensive plan.”
Next Steps
With the appeal dismissed, the City Council will determine next steps, including whether to schedule a new public hearing for Ordinance No. 2025-21.
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Background
Ordinance No. 2025-21 was originally scheduled for a public hearing on October 14, 2025. That hearing was postponed following the filing of the SEPA appeal.
About SEPA
The State Environmental Policy Act (SEPA) requires all state and local agencies to evaluate environmental impacts before adopting certain policies, plans, or programs or approving projects. While certain nonproject-level actions may be exempt from appeal under state law, project-specific environmental impacts are still reviewed during permitting.
Media Contact:
Shannon Hays, Communications Manager
206-530-3627