BILL ANALYSIS SB 375 SENATE COMMITTEE ON ENVIRONMENTAL QUALITY Senator S. Joseph Simitian, Chairman 2007-2008 Regular Session BILL NO: SB 375 AUTHOR: Steinberg AMENDED: April 17, 2007 FISCAL: Yes HEARING DATE: April 23, 2007 URGENCY: No CONSULTANT: Randy Pestor SUBJECT : TRANSPORTATION, LAND USE, AND CEQA SUMMARY : Existing law : 1) Establishes the California Transportation Commission (CTC) and sets various duties and procedures for the CTC (Government Code 14500 et seq.). 2) Establishes the Department of Transportation (Caltrans), with various responsibilities. 3) Designates regional transportation planning agencies (Government Code 29532.1) and provides for formation of a local transportation planning commission (Government Code 29532). 4) Under Long Range Transportation Planning Law (Government Code 65070 et seq.), requires the California Transportation Plan to include policy, strategies, and recommendations elements; requires Caltrans to prepare a federal transportation improvement program and annually submit the program to the U.S. Secretary of Transportation. 5) Under Transportation Planning and Programming Law (Government Code 65080 et seq.): a) Requires RTPAs to prepare and adopt a regional transportation plan that contains a policy element, action element, and financial element. b) Authorizes RTPAs to designate special corridors, SB 375 Page 2 requires preparation of a five-year regional transportation improvement program (RTIP); authorizes Caltrans to prepare a project studies report for capacity-increasing highway projects, and requires Caltrans to prepare guidelines for project studies by other entities. 6) Under Congestion Management Law (Government Code 65088 et seq.), authorizes a city or county to designate an infill opportunity zone that must be consistent with any general plan and specific plan. 7) Under the California Environmental Quality Act (CEQA) (Public Resources Code 21000 et seq.), requires lead agencies with the principal responsibility for carrying out or approving a proposed discretionary project to prepare a negative declaration, mitigated declaration, or environmental impact report (EIR) for this action, unless the project is exempt from CEQA (CEQA includes various statutory exemptions, as well as categorical exemptions in the CEQA guidelines). This bill : 1) Requires the CTC to adopt guidelines for disbursement of state transportation funding related to travel demand models used in development or regional transportation plans by RTPAs, and sets procedures for preparing the guidelines. The guidelines must require that travel demand models be capable of evaluating certain policy choices, such as induced travel and induced land development, split modes, proximity of residential uses to employment centers, and parking charges. The guidelines must apply to a RTPA for a region with a population of 800,000 or more, and is permissive for RTPAs with a lower population. 2) Requires Caltrans, under Integrated Transportation and Land Use Planning Law (Government Code 65089.60 et seq.), to develop standards for disseminating the methodology, results, and key assumptions of travel demand models that is useable and understandable to the public, and meet at SB 375 Page 3 least annually with the CTC and certain agencies to determine whether the models need additional revisions due to new research or new requirements in state or federal law. 3) Requires a RTPA to demonstrate in its regional transportation plan the extent to which its regional travel demand models assist other public agencies to evaluate large development projects, including impacts of density and mixed land uses on travel. The RTPA must report to the CTC on how the regional travel demand model supports certain planning. 4) Under Long Range Transportation Planning Law, requires system concepts and strategies in the California Transportation Plan strategies element, and projects and improvements in the federal transportation improvement program, to be consistent with preferred growth scenarios (PGSs) (see #3 below). 5) Under Transportation Planning and Programming Law: a) Requires the RTIP to include a PGS that meets certain requirements (e.g., identifies areas to house population, identifies significant resource land and farmland, complies with the federal Clean Air Act). b) Requires special corridors to be consistent with the PGS, and requires projects in the RTIP and project studies report to be consistent with the PGS. c) Defines "significant resource lands," "significant farmland," and "vehicle miles traveled." 6) Under Congestion Management Law, requires an infill opportunity zone to also be consistent with any PGS. 7) Under CEQA, creates the Implementation of the Preferred Growth Scenario Law that: a) Applies within a local jurisdiction that has amended SB 375 Page 4 its general plan so that the land use, circulation, housing, and open space elements are consistent with the PGS, and meet certain requirements. b) Authorizes an environmental document to only examine the significant or potentially significant project specific impacts of a project located in an eligible jurisdiction, if an EIR has been certified on the PGS and on general plan amendments to conform to the PGS, and the project meets certain requirements, such as being an infill project within an urbanized area. c) Authorizes an eligible jurisdiction to adopt a neighborhood plan if the plan meets certain requirements, such as access to a major transit stop and mitigates displacement of low-income and very low-income persons, and uses a planning process that complies with certain requirements. d) Provides that if a legislative body of an eligible local jurisdiction finds that a project meets certain requirements, then the project is declared to be a sustainable communities' project and no additional review is required. e) Authorizes an eligible local legislative body within an urbanized area to adopt traffic mitigation policies that would apply to future residential projects. The traffic mitigation policies must apply to residential projects of at least 10 units per acre. A residential project seeking a land use approval is not required to comply with certain additional traffic mitigation measures if the eligible jurisdiction has adopted traffic mitigation policies in accordance with these provisions. This does not restrict the authority of a local jurisdiction to adopt feasible mitigation measures with respect to project impacts on pedestrian or bicycle safety. 8) Authorizes up to $20 million from Proposition 84 or 1C for smart growth planning and incentive grants to RTPAs to SB 375 Page 5 develop transportation planning model improvements. Grants must be awarded by the CTC, in consultation with Caltrans. 9) Provides related legislative intent. COMMENTS : 1) Purpose of Bill . According to the author, "Current planning models used for transportation decisions and air quality planning must be improved to assess policy choices. This includes encouraging more compact development patterns, expanding transit service, creating walkable communities, and providing incentives. It is also necessary to achieve significant greenhouse gas reductions from changed land use patterns and improved transportation to meet AB 32 standards." The author notes that "transportation and CEQA incentives are needed for greater housing choices, shorter commutes, reduced climate emissions, less air pollution, less fossil fuel consumption, and greater conservation of farmlands and habitat." 2) Seeking a comprehensive transportation, land use, and CEQA link . SB 375 seeks to be a comprehensive approach to linking transportation, land use, and CEQA by requiring RTPAs to develop a PGS, tying funding of transportation projects to the PGS, requiring transportation modeling to account for land use impacts on transportation, and revising CEQA for local governments that conform plans to the PGS. 3) Support and concerns . Supporters note that SB 375 provides a new vision for growth in California and "would establish needed policies to implement AB 32 and to reduce greenhouse gasses from light vehicles." The Planning and Conservation League and Sierra Club California believe that the bill will not work because the processes involved are lengthy, results of such local transportation planning efforts usually achieve the "lowest common denominator" in regional land use, and a more SB 375 Page 6 standards-based approach is needed. These organizations outline several concerns with SB 375, such as: a) the lack of needed policy statements; b) the absence of any entity to determine if general plans or amendments are consistent with the PGS; c) possible weakening of current CEQA exemptions; d) no land use regulatory impact of the PGS so that it is only intended to be used as the basis of the transportation planning process; e) nothing requires the PGS to direct growth to existing areas; f) no specific protection for resource lands or farmlands since they are to be avoided only if "feasible"; g) no enforceable standard to counteract the largely economic pressures that lead to sprawl, and may actually be sprawl inducing; h) the lack of clarity about how SB 375 will accomplish VMT reduction; and i) the "opportunity cost" associated with spending money and time on a very indirect approach. PCL and Sierra Club California conclude that there is a need to "find a way to redesign the state's land use policies and transportation systems in a manner that will begin a new, non-sprawl era of growth in California" and that "articulating appropriate standards, to guide development decisions, is a key step in that effort." 4) Consistency with AB 857 state planning priorities . AB 857 (Wiggins/Sher) Chapter 1016, Statutes of 2002, requires the Governor to annually submit (with the Budget) a proposed five-year infrastructure plan. The plan must cover a five-fiscal-year period beginning with the fiscal year that is the same as that covered by the Governor's Budget. The plan must include criteria and priorities used to identify and select the infrastructure proposed for funding and must specify sources of funding, an evaluation of the impact of new state debt on the state's existing overall debt position, and recommend specific projects for funding. By January 1, 2005, the infrastructure plan criteria must be consistent with the state planning priorities enacted by AB 857. These state planning priorities are intended to promote equity, strengthen the economy, protect the environment, and promote public health and safety by: 1) promoting infill development and equity, 2) protecting SB 375 Page 7 environmental and agricultural resources, and 3) encouraging efficient development patterns. The state environmental goals and policy report (EGPR) must also be consistent with these priorities. To ensure consistency between state priorities for the state's infrastructure plan, EGPR, and PGSs, the SB 375 PGS requirements must also reference these state planning priorities. 5) Technical considerations . On page 24, line 12, strike "no." It may also be appropriate for SB 375 to contain a delayed operative date for certain funding conditions. SOURCE : Senator Steinberg SUPPORT : American Farmland Trust, American Lung Association, California League of Conservation Voters, Defenders of Wildlife, Environment California, Natural Resources Defense Council CONCERNS AND COMMENTS: Planning and Conservation League, Sierra Club California OPPOSITION : None on file