BILL ANALYSIS SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: sb 375 SENATOR ALAN LOWENTHAL, CHAIRMAN AUTHOR: steinberg VERSION: 4/17/07 Analysis by: Mark Stivers FISCAL: yes Hearing date: April 26, 2007 SUBJECT: Transportation, land use, and the California Environmental Quality Act (CEQA) DESCRIPTION: This bill has three separate provisions: 1) it requires regional transportation planning agencies (RTPAs) to adopt preferred growth scenarios that reduce vehicle miles traveled per household; 2) it requires the California Transportation Commission (CTC) to adopt guidelines for the use of travel demand models by RTPAs that meet specified standards; and 3) it provides for various forms of CEQA relief in communities that conform their general plans to the preferred growth scenario. ANALYSIS: Regional transportation plans Current law requires the Department of Transportation (Caltrans) to prepare various transportation plans, including the California Transportation Plan and the Federal Transportation Improvement Plan. Current law also requires CTC to adopt the State Transportation Improvement Plan (STIP), which lists all capital improvement projects that are expected to receive an allocation of state transportation funds from CTC during the following five fiscal years. The STIP includes both the Interregional Transportation Improvement Program (ITIP) and the Regional Transportation SB 375 (STEINBERG) Page 2 Improvement Programs (RTIPs) developed by regional transportation planning agencies (RTPAs). Seventy-five percent of STIP funding is programmed by the regions through the RTIPs. Twenty-five percent of STIP funding is programmed by Caltrans through the ITIP. Current law also requires the RTPAs to adopt regional transportation plans (RTPs) directed at achieving a coordinated and balanced regional transportation system, including, but not limited to, mass transportation, highway, railroad, maritime, bicycle, pedestrian, goods movement, and aviation facilities and services. The RTP must contain a policy element, an action element, and a financial element and is the source for projects programmed in the RTIP. This bill : Requires that regional transportation plans include a preferred growth scenario that: ? Identifies areas sufficient to house all the population of the region, including all economic segments, over the course of the planning period. ? Identifies significant resource land and significant farmland and excludes these lands from the scenario to the greatest extent feasible. ? Allows the RTP to comply with the federal Clean Air Act. Requires that the preferred growth scenario in regions with a population of more than 200,000 identify locations for development and transit projects that will achieve a 10% reduction in vehicle miles traveled per household by 2020 and a ___ reduction by 2050. Requires that the preferred growth scenario in regions with a population of less than 200,000 identify locations for development and transit projects that will prevent any increase in vehicle miles traveled over the life of the RTP. Requires Caltrans, when preparing RTPs for smaller regions, to prepare the plan in a manner consistent with the preferred growth scenario for the region. Limits RTPAs, when designating corridors of statewide or regional priority for long-term right-of-way preservation, to designating corridors that are consistent with the regional preferred growth scenario. Requires that projects and improvements programmed for funding in the RTIP be consistent with the preferred growth scenario. SB 375 (STEINBERG) Page 3 Prohibits Caltrans from preparing project studies reports for capacity-increasing state highway projects unless those projects are consistent with a preferred growth scenario. Requires Caltrans to include within its guidelines for project studies reports a requirement that all projects studied be consistent with a preferred growth scenario. Requires that an infill opportunity zone designated by a city or county under the Congestion Management Law be consistent with the region's preferred growth scenario. Requires that the strategies element of the California Transportation Plan be consistent with the preferred growth scenarios adopted in regional transportation plans. Requires that projects included in the federal transportation improvement program be consistent with the preferred growth scenarios adopted in RTPs. Declares the intent of the Legislature that the preparation of state and regional transportation plans involve members of the public. Travel demand models Travel demand models are statistical and algorithmic attempts to model human travel behavior. They endeavor to forecast potential outcomes of various transportation and land use policy options. The factors that are included in the models are a region's demographic profile, land uses, personal income data, existing travel, and other similar characteristics. The models are used to evaluate alternative development patterns and their travel implications before a regional plan is adopted. The models are used to conduct special studies, such as corridor studies that would assess the potential impacts of a new freeway or transit line. Depending on the policy direction, the impacts may include, for example, the implication for land use changes at transit stations or at freeway interchanges. In the larger regions, the federal government periodically reviews the policies and practices of the regional agencies, including an assessment of the travel demand models used in the development of the regional transportation plans. This bill : Requires CTC to adopt guidelines for the use of travel demand models used in development or regional transportation plans by RTPAs that require, to the extent practicable, that the models account for all of the following: SB 375 (STEINBERG) Page 4 ? Travel demands during at least four time intervals during the day. ? Induced travel and land development resulting from highway or passenger rail expansion. ? Mode split models that allocate trips among automobile, transit, carpool, bicycle, and pedestrian trips. ? Residential land use densification. ? The proximity of residential areas to centers of employment. ? The relationship between land use density and household vehicle ownership and use. ? The Impact of enhanced transit service levels on vehicle ownership and use. ? Mixed land uses. ? Parking charges and parking cashout. ? Peak-period freeway tolls. ? 24-hour freeway tolls. Applies the guidelines to RTPAs in regions with a population of 800,000 or more and makes them permissive for RTPAs with a lower population. Requires Caltrans to develop standards for disseminating the methodology, results, and key assumptions of travel demand models such that the models are useable and understandable to the public. Requires Caltrans to meet at least annually with CTC and the larger RTPAs to determine whether the models meet the requirements of the guidelines or need additional revisions. 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 CTC on how the regional travel demand model supports certain types of planning. California Environmental Quality Act CEQA requires that local government conduct an analysis of the environmental impacts associated with projects, including private housing developments subject to a discretionary review. In cases where a full analysis is required, the local government must certify an environmental impact report (EIR). CEQA provides, among others, for a limited statutory exemption for qualified infill housing or mixed-use housing developments. To qualify for the exemption, a project must meet all of the SB 375 (STEINBERG) Page 5 following criteria: Be on an infill site in an urbanized area within mile of a major transit stop, Be consistent with any applicable general plan, specific plan, and local coastal program. Be on a site for which a community-level EIR has been certified within the previous five years. Meet various criteria intended to ensure that the project has no apparent significant environmental impacts. Include specified percentages of affordable housing. Be on sites of no more than 4 acres or include no more than 100 units. Attain a density of at least 20 units per acre, or 10 units per acre if that is greater than the average density of other housing within 1500 feet. CEQA regulations also provide for a categorical exemption for infill housing unless the project creates a reasonable possibility of a project-specific impact or leads to a significant cumulative impact. To qualify for the exemption, the project must be located within city limits, be substantially surrounded by urban uses, and meet the following criteria: Be consistent with the general plan and zoning. Can be adequately served by all utilities and services, has no value as habitat for endangered, rare or threatened species, is not a brownfield, would not result in any significant effects relating to traffic, noise, air quality, or water quality, and does not affect historical resources. Be no more than five acres. Current law allows local governments to adopt specific plans, which identify the distribution, location, and extent of the uses of land within the area covered by the plan and to establish standards and criteria by which development will proceed. Within a specific plan area, any residential development project that is consistent with a specific plan for which an EIR has been certified is exempt from further review under CEQA unless substantial changes have occurred or new information has become available since the EIR was certified. This bill creates the Implementation of the Preferred Growth Scenario (PGS) Law that: Applies within a local jurisdiction that has amended its SB 375 (STEINBERG) Page 6 general plan so that the land use, circulation, housing, and open space elements are consistent with the PGS. Authorizes an environmental document to only examine the significant or potentially significant project specific impacts (or certify a so-called "short-form EIR") of a residential or mixed-use residential project on an infill site located in an eligible jurisdiction in an urbanized area, if an EIR has been certified on the PGS and on general plan amendments to conform to the PGS. 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. Provides that if a legislative body of an eligible local jurisdiction finds that a residential or mixed-use residential project meets the following requirements, then the project is declared to be a sustainable communities project and no additional review is required: ? The project is on an infill site in an urbanized area. ? The project is on a site of no more than 8 acres and includes no more than 200 units. ? The project attains a density greater than the Mullin densities established in housing element law (30 units per acre for jurisdictions in metropolitan counties, 20 units per acre in "suburban" jurisdictions, 15 units per acre in cities in non-metropolitan counties, and 10 units per acre in unincorporated areas in non-metropolitan counties). ? The project meets various criteria, similar but not identical to those required for the statutory infill exemption described above, intended to ensure that the project has no apparent significant environmental impacts. ? The project does not result in any loss in the number of affordable housing units. ? The project meets one of the following four conditions: 1) includes 5% very-low income housing, 10% low-income housing; or 20% moderate-income housing; 2) has paid in-lieu fees that would result in the same number of units specified in paragraph 1; 3) is located with mile of a major transit stop; or 4) provides five acres of public open space per 1000 residents. Authorizes an eligible local legislative body within an urbanized area to adopt traffic mitigation policies that would apply to future residential projects of at least 10 units per SB 375 (STEINBERG) Page 7 acre. A project seeking a land use approval that complies with these traffic mitigation policies is not required to mitigate impacts on intersections, streets, highways, freeways, or mass transit that might otherwise be required under CEQA. AB 32 and greenhouse gas emission reductions Last year the Legislature enacted AB 32 (Nu?ez), Chapter 488, Statutes of 2006, the Global Warming Act of 2006, which requires the Air Resources Board (ARB) to establish a statewide greenhouse gas emissions limit such that by 2020 California reduces its greenhouse gas emissions to the level they were in 1990. Thereafter, ARB must adopt the maximum feasible and cost-effective reductions in greenhouse gas emissions for sources subject to the Act. One of the potential strategies for reducing greenhouse gas emissions is to promote more compact land use that reduces the number and length of vehicle trips. COMMENTS: 1.Purpose of the 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 . This bill seeks to establish a comprehensive link between transportation, land use, and CEQA by requiring RTPAs to develop a preferred growth scenario, by linking funding of transportation projects to the growth scenario, by requiring that transportation modeling account for land use impacts on transportation, and by revising CEQA for local governments that conform their general plans to the preferred growth scenario. 3.Should a strict VMT standard by imposed ? The bill requires SB 375 (STEINBERG) Page 8 that in larger regions the preferred growth scenarios, together with transit improvement, achieve a 10% reduction in vehicle miles traveled (VMT) per household by 2020. Smaller regions would be required to prevent any increase in VMT over the life of the plan. These requirements are intended to help meet the greenhouse gas emission reduction targets required by AB 32. These VMT requirements, however, may not be achievable in some or many regions. In addition, by applying the requirement to the preferred growth scenario, it precludes RTPAs from achieving greenhouse gas reductions through other means. The committee may wish to consider an alternative approach that requires the ARB to assign greenhouse gas emission reduction targets to each RTPA and then require the RTPAs to adopt measures, including land use strategies, to reduce emissions by an amount consistent with the targets. Under the provisions of AB 32, the targets adopted by the ARB must be "feasible and cost-effective." 4.Prescriptive model guidelines . This bill requires CTC to adopt guidelines for the use of travel demand models by RTPAs that require the models, to the extent practicable, to be capable of evaluating numerous specific policy choices. Some of these policy choices concern big-picture issues, such as how changes in regional land use density or investments in mass transit affect vehicle ownership and use. Others are quite specific, including the impacts of parking charges and freeway tolls. The committee may wish to consider whether it is more appropriate to allow CTC, in conjunction with the regions and other stakeholders, to determine the necessary elements of a travel demand model. 5.Changes to CEQA . Within cities and counties that conform their general plans to the region's preferred growth strategy, this bill provides for various forms of CEQA relief. First, the bill authorizes the use of a short-form EIR for residential or mixed-use residential project on infill sites within such jurisdictions. Second, the bill allows local governments to adopt traffic mitigation policies that allow infill housing developments to address local impacts without having to address regional transportation impacts. Third, the bill effectively expands the existing statutory exemption for infill housing developments by defining "sustainable communities projects" for which no further environmental review is required. Fourth, the bill allows local governments to adopt a new "neighborhood plan." SB 375 (STEINBERG) Page 9 It is worth noting that while the sustainable communities project provisions of the bill do expand slightly on the existing statutory exemption for infill housing, many local governments reviewing infill housing developments already use the categorical exemption in CEQA regulations that is much broader in scope and provides similar benefits. In addition, the conditions for using the neighborhood plan proposed in this bill are more restrictive than those that currently exist for using specific plans, while the neighborhood plan provides no specific CEQA benefit to project applicants. The committee may wish to consider deleting the neighborhood plan provisions of the bill. 6.Correcting references to the PGS . The bill requires that various transportation plans and projects lists developed by Caltrans and the RTPAs be consistent with the preferred growth scenarios adopted by the RTPAs. To the extent that that the PGS is just one element of the regional transportation plan and that the action element of the RTP, which includes future projects, must be consistent with the PGS, it may be more appropriate to change the references in the bill to require that the various plans and projects lists be consistent with the relevant RTPs. 7.Amendments taken in the Environmental Quality Committee . When this bill was heard in the Senate Environmental Committee earlier this week, the author committed to take three amendments in the Transportation and Housing Committee as follows: On page 10, line 38, strike out "and (iii)" and insert "(iii) is consistent with the state planning priorities pursuant to Section 65041.1; and (iv)" On page 15, line 27, strike "Projects" and insert "On and after January 1, 2009, projects" On page 24, line 12, strike out "no" 1.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." They argue that the bill would also integrate transportation and land use planning and help "achieve greater housing choices, shorter commutes, reduced climate emissions, less air pollution and fossil fuel consumption, and greater conservation of farmlands and habitat." SB 375 (STEINBERG) Page 10 The Planning and Conservation League and Sierra Club California believe that the bill will not work because the processes involved are lengthy, because results of such local transportation planning efforts usually achieve the "lowest common denominator" in regional land use, and a more 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 preferred growth scenario; c) the possible weakening of current CEQA exemptions; d) the fact that local governments are not required to implement the land use strategies of the preferred growth scenario; e) the lack of a requirement for the preferred growth scenario to direct growth to existing areas; f) the lack of specific protection for resource lands or farmlands; g) the lack of an enforceable standard to counteract sprawl; h) the lack of clarity about how SB 375 will accomplish reductions in vehicle miles traveled; and i) the "opportunity cost" associated with spending money and time on a very indirect approach. PREVIOUS ACTIONS: Senate Environmental Quality Committee: 5-2 RELATED LEGISLATION AB 842 (Jones) restricts access to certain Proposition 1B and 1C programs to projects that are consistent with a regional land use and transportation planning document that will reduce the growth increment of vehicles miles traveled for the region by a specified amount. This bill is in the Assembly Housing and Community Development Committee. POSITIONS: (Communicated to the Committee before 5 PM on Tuesday, April 24, 2007) SUPPORT: California League of Conservation Voters (co-sponsor) Natural Resources Defense Council (co-sponsor) Sacramento Area Council of Governments (in concept) Southern California Association of Governments CONCERN: Planning and Conservation League SB 375 (STEINBERG) Page 11 Sierra Club California OPPOSED: None received.