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.