BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 842
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          Date of Hearing:   January 24, 2008

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mark Leno, Chair

                   AB 842 (Jones) - As Amended:  January 17, 2008 

          Policy Committee:                              Local  
          GovernmentVote:4-2
                       Housing and Community Development      5-2

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill makes significant changes with respect to regional  
          transportation planning and the allocation of bond proceeds  
          authorized by Proposition 1C (Housing and Emergency and  
          Emergency Shelter Trust Fund of 2006).  Specifically, the bill:

          1)Requires the California Transportation Commission (CTC) to  
            update its guidelines for the preparation of regional  
            transportation plans (RTPs) to include a requirement that each  
            RTP provide for a 10% reduction in the growth of vehicles  
            miles traveled.

          2)Provides that when the Department of Housing and Community  
            Development (HCD) is ranking infill and transit oriented  
            project applications qualifying for Proposition 1C funds, it  
            shall give preference to a project that:

             a)   Is in a city or county that has adopted a general plan  
               that will reduce the growth in vehicle miles traveled by at  
               least 10% and is consistent with the plan; or

             b)   Is in a region covered by a council of governments that  
               has adopted a regional transportation plan or similar  
               document that will reduce the growth in vehicle miles  
               traveled by at least 10% and is consistent with the plan.
           
          FISCAL EFFECT  

          1)Increased costs to the CTC to update guidelines to include the  
            vehicle miles traveled requirements. Magnitude of cost  








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            increase would depend on how detailed the guidelines would  
            need to be, but could be greater than $150,000.

          2)Increased costs to regional transportation agencies to develop  
            methodologies to measure and achieve 10% reductions in the  
            growth in vehicle miles traveled. Not state reimbursable.
           
           
           COMMENTS  

           1)Background  .  In November 2006, California voters approved  
            Proposition 1C, the Housing and Emergency Shelter Trust Fund  
            Act, which authorized $2.850 billion in bonds for housing and  
            projects promoting urban infill and development near public  
            transit. Of this total, $850 million is allocated to the  
            Regional Planning, Housing, and Infill Incentives Account,  
            which supports projects that promote infill development  
            (including park creation, water, sewer, transportation, or  
            brown field cleanup). Another $300 million is allocated to the  
            Transit-Oriented Development Implementation Program, which  
            supports development of higher density uses within close  
            proximity to transit stations.

            Projects that qualify for funding from these accounts are  
            ranked using a "bonus point" system that gives priority to  
            projects meeting several criteria, including: proximity to  
            transit stations, parks, employment or retail centers,  
            schools, and social services; a demonstration of other funding  
            commitments; a demonstration that the project can receive  
            approvals from the local jurisdiction within a reasonable  
            period of time; and consistency with an adopted regional  
            blueprint plan or other adopted regional growth plan intended  
            to foster efficient land use. 

            This bill would add a new criterion for ranking qualified  
            projects, by providing bonus points to projects that are in  
            areas which have adopted plans to achieve 10% reduction in the  
            growth in vehicle miles traveled, and are consistent with  
            these plans.

           2)Rationale  . This bill is intended to help achieve state goals  
            of reducing greenhouse gas emissions by promoting project  
            development and land use planning that reduces vehicle miles  
            traveled. The author asserts that a reduction in vehicle miles  
            traveled will have a strong positive impact on air quality,  








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            will reduce traffic congestion and urban sprawl, and will help  
            the state develop energy independence.

           Analysis Prepared by  :    Brad Williams / APPR. / (916) 319-2081