BILL ANALYSIS Senate Appropriations Committee Fiscal Summary Senator Tom Torlakson, Chairman 375 (Steinberg) Hearing Date: 5/31/07 Amended: 5/2/07 Consultant: Mark McKenzie Policy Vote: E.Q. 5-2, T.&H. 7-1 _________________________________________________________________ ____ BILL SUMMARY: SB 375 would link transportation planning and funding to general land use planning and the California Environmental Quality Act (CEQA). Specifically, this bill would: Require the California Transportation Commission (CTC) to adopt guidelines by April 1, 2008 for the use of travel demand models in regional transportation plans (RTPs) that would assess the impact of certain policy choices on a region. Require large regional transportation planning agencies (RTPAs) to incorporate the regional travel demand model into RTPs, as specified in the CTC guidelines, and report to CTC on how the model supports corridor and small area planning. Require RTPAs to develop a "preferred growth scenario" (PGS) that is consistent with the state planning priorities, identifies sufficient housing for all populations in the region, identifies significant resource and farmland in the region that would be excluded from development, complies with the federal Clean Air Act, inventories the region's greenhouse gas emissions, and establishes measures to reduce these emissions. The PGS would be included into the RTP. Require projects and improvements that are included in the regional transportation improvement program to be consistent with the RTP and PGS in order to receive funding after January 1, 2009. Authorize exemptions from specified CEQA requirements for certain projects within an eligible local jurisdiction that has amended the general plan so that the land use, circulation, housing, and open space elements are consistent with the PGS. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2007-08 2008-09 2009-10 Fund CTC guidelines up to $200 Special* Caltrans travel models absorbable costs to provide assistanceSpecial* Caltrans PGS requirements unknown, potentially significant costs to Special* comply with PGS requirements ARB emission targets/models $330 $300 Special** Local Mandate unknown reimbursable mandate costsGeneral (new RTP requirements) to include updated travel modeling and PGS information in RTPs ___________ *State Highway Account ** Motor Vehicle Account and Air Pollution Control Fund _________________________________________________________________ ____ STAFF COMMENTS: SUSPENSE FILE. AS PROPOSED TO BE AMENDED. -1- Page 2 SB 375 (Steinberg) Travel Demand Models Travel demand models attempt to model human travel behavior to predict potential outcomes of various policy options. These models are used to evaluate development patterns, and their travel implications, before a regional plan is adopted. Travel demand models are often subjective and implementation may be constrained by factors beyond the control of an RTPA, such as local zoning and land use decisions made by individual local governments. This bill is intended to provide a uniform framework for improving travel demand modeling statewide. SB 375 would require CTC to adopt guidelines for the use of travel demand models used by RTPAs in the development of RTPs. CTC would convene an advisory committee, hold two workshops during regular meetings, and adopt the guidelines by April 1, 2008. The travel demand models developed pursuant to the adopted guidelines would be capable, to the extent practicable, of evaluating specified policy choices related to land use decisions, transit use, and development and travel impacts resulting from highway or rail passenger rail expansion. RTPAs that represent populations of over 800,000 would be required to implement the guidelines, incorporate updated travel demand models used in the RTP, and report to CTC on the extent to which the regional model supports corridor and small area planning. These requirements would be permissive for smaller RTPAs. Staff notes that SB 375 would require CTC to develop and adopt guidelines within three months of the bill's enactment. CTC has indicated that this process typically takes approximately 9 months of dedicated staff work to convene an advisory committee, develop a consensus, hold public hearings, and adopt the guidelines. CTC costs associated with the adoption of guidelines would be in the range of $200,000. The Department of Transportation (Caltrans) would be required to assist CTC in the preparation of the guidelines, upon request. Caltrans costs for participating in the process for adopting guidelines for travel demand models would be absorbable. Preferred Growth Scenarios Existing law requires RTPAs to develop and adopt regional transportation plans to provide policy guidance to local and state officials in order to achieve a coordinated and balanced regional transportation system, including multiple modes of transportation. RTPs must contain a policy element, an action element, and a financial element. Existing law also requires CTC to adopt the State Transportation Improvement Program (STIP), which includes all of the projects that are to receive an allocation of state transportation funding. Seventy-five percent of these funds are allocated to RTPAs for projects programmed into the Regional Transportation Improvement Program (RTIP). RTPs are the source for projects programmed into the RTIP. SB 375 would require regional transportation plans to include a "preferred growth scenario" that: (1) identifies areas sufficient to house all the population of the region, including all economic segments, over the course of the planning period; (2) identifies significant resource and farmland, as specified, to be excluded from development; and (3) allows the RTP to comply with the federal Clean Air Act. The PGS would also inventory the region's greenhouse gas emissions and establish measures for reducing Page 3 SB 375 (Steinberg) emissions by an amount consistent with specified targets. SB 375 would require the State Air Resources Board (ARB) to provide each region with greenhouse gas emission targets for 2020 and 2050 by an unspecified date. Staff recommends an amendment to specify the deadline for ARB to provide the targets to RTPAs in order to allow enough time to incorporate this information into the PGS so that a region's transportation funding is not compromised by an administrative delay. Staff notes that ARB would require 3 positions at a cost of $330,000 and approximately $300,000 in contracted work to develop regional targets and complete site-specific modeling work in order to implement the provisions of this bill. Existing law requires Caltrans to prepare RTPs for certain smaller regions. Existing law also requires Caltrans to prepare a federal transportation improvement program, as specified. SB 375 would require Caltrans to update the RTP for smaller regions to include a PGS, and would also require any projects included in the federal transportation improvement plan to be consistent with the updated RTPs, including the PGS. Staff notes that costs to Caltrans for complying with these requirements are unknown, but potentially significant. Caltrans does not have the staff expertise to determine regional housing availability, resource and farmland availability, and strategies for greenhouse gas emission reduction, as required in the PGS. SB 375 would also require any projects proposed in the action element of an RTP to be consistent with the PGS. In addition, projects and improvements to be included in the RTIP, and funded through the STIP, must be consistent with the regional transportation plans, including the PGS, in order to be funded after December 31, 2008. Staff notes that to the extent that RTPAs are unable to update the RTP by this time, this bill would result in a major loss of local and regional transportation funding. Staff notes that by requiring larger regional planning entities to apply the specified travel demand models to their RTPs, and requiring all RTPAs to include a PGS in regional transportation plans, this bill would result in a reimbursable state mandate of unknown significant costs, potential in the range of several million dollars. RTPAs would be required to perform these updates to regional transportation plans during the 2008 calendar year in order to be eligible for state transportation funding through the STIP as of January 1, 2009. CEQA SB 375 would authorize certain CEQA exemptions for projects within a local jurisdiction that has amended specified elements of its general plan to be consistent with the PGS adopted by the region's metropolitan planning organization. These exemptions would apply to specified infill projects, "sustainable communities' projects," and projects within an area that has adopted specified traffic mitigation policies. PROPOSED AMENDMENTS would: Revise the applicability of the travel demand modeling guidelines. Exempt projects programmed in the 2006 and 2008 STIP, as well as specified bond-funded projects, from the requirement of consistency with the RTP and PGS in order to receive funding as of January 1, 2008. Make numerous definitional and clarifying changes.