BILL ANALYSIS                                                                                                                                                                                                    






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: ab 842
          SENATOR ALAN LOWENTHAL, CHAIRMAN               AUTHOR:  jones
                                                         VERSION: 1/17/08
          Analysis by: Mark Stivers                      FISCAL:  yes
          Hearing date: June 17, 2008








          SUBJECT:

          Reducing vehicle miles traveled through regional transportation  
          plans and Proposition 1C programs

          DESCRIPTION:

          This bill requires that each regional transportation plan  
          provide for a 10 percent reduction in the growth increment of  
          vehicle miles traveled and awards additional points under  
          specified Proposition 1C programs for projects that are  
          consistent with regional blueprints or that are consistent with  
          general plans that will reduce vehicle miles traveled by ten  
          percent.  

          ANALYSIS:

          Regional transportation plans

          Current law requires the regional transportation planning  
          agencies (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 regional transportation improvement plan  
          (RTIP), which lists all capital improvement projects that are  
          expected to receive an allocation of state transportation funds  
          during the following five fiscal years.  The California  
          Transportation Commission (CTC) adopts guidelines that help  
          RTPAs meet their RTP obligations.  




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           This bill  requires CTC to update its guidelines for the  
          preparation of regional transportation plans, including, but not  
          limited to, a requirement that each regional transportation plan  
          provide for a 10 percent reduction in the growth increment of  
          vehicle miles traveled (VMT).  

          Prop 1C programs

          In November 2006, California voters approved Proposition 1C, the  
          $2.85 billion Housing and Emergency Shelter Trust Fund Act of  
          2006.  The bond act includes $850 million for the Infill  
          Incentive Grant Program, which is administered by the Department  
          of Housing and Community Development (HCD).  This program  
          provides grants for infrastructure necessary to support new  
          higher-density infill housing.  In rating and ranking  
          applications under this program, HCD must use all of the  
          following priorities:

           Project readiness.
           The depth and duration of the housing affordability.
           The extent to which the project density exceeds the housing  
            element density standards.
           The inclusion of, or proximity or accessibility to, a transit  
            station or major transit stop.
           The proximity to parks, employment or retail centers, schools,  
            or social services.
           Consistency with an adopted regional blueprint plan or other  
            adopted regional growth plan intended to foster efficient land  
            use.

          Proposition 1C also includes $300 million for the Transit  
          Oriented Development (TOD) Housing Program, administered by HCD,  
          which provides grants and loans to facilitate the development of  
          higher density housing within close proximity to transit  
          stations that will increase public transit ridership.  In rating  
          and ranking applications under this program, HCD must consider  
          the extent to which the development will increase public transit  
          ridership and minimize automobile trips.  HCD must also grant  
          bonus points to developments that are consistent with regional  
          growth blueprints.

           This bill  requires HCD to use the following as ranking criteria  
          under the Infill Incentive Grant Program and to grant a  
          substantial preference for the following under the TOD Housing  
          Program:




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           The project's location in a city, county, or city and county  
            that has adopted a general plan that will reduce the amount of  
            VMT by at least 10 percent and the project is consistent with  
            the plan.
           The project's location in a region that has adopted a  
            transportation plan, a regional transportation plan, a  
            regional blueprint, or similar document that will reduce the  
            amount of VMT by at least 10 percent and the project is  
            consistent with the plan, blueprint, or similar document. 
          
          COMMENTS:

           1.Purpose of the bill  .  According to the author, California  
            faces a great challenge in the coming years to reduce  
            greenhouse gas emissions.  The measurement of VMT is useful in  
            that it correlates to the amount of time each household spends  
            in its vehicles and is a proxy for progress in improving land  
            use planning.  VMT is a widely-used barometer that encompasses  
            items such as infill development, jobs close to housing,  
            shorter commute times, better public systems, and many more  
            important quality of life factors.  Reducing VMT closely  
            correlates with the state goals of improving air quality,  
            reducing congestion, reducing sprawl, developing energy  
            independence, and preserving open space.  

            This bill seeks to direct Proposition 1C funds allocated to  
            infill and transit oriented development more towards regions,  
            cities, and counties that have prepared land use plans that  
            will reduce the growth in VMT by 10 percent.  The bill creates  
            an incentive for cities and counties to adopt more  
            environmentally friendly general plans and encourage their  
            regional council of governments to do likewise for the region.  
               

           2.Overlap with SB 375  .  Last year, this committee approved SB  
            375 (Steinberg), which, among other things, requires the Air  
            Resources Board to set greenhouse gas reduction targets for  
            each region and requires each RTPA to show how it plans to  
            meet the targets in its RTP.  The bill also requires each RTP  
            to include a sustainable communities strategy (currently  
            referred to as a regional blueprint), which is a land use plan  
            for how the region intends to grow over the long term.  It is  
            envisioned that a large portion of the reductions in  
            greenhouse gas emissions will be achieved through land use  
            changes that implement blueprints, emphasize infill  




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            development, concentrate new growth, and thereby reduce VMT.  

            The portion of this bill that requires each RTPA to show in  
            its RTP a 10 percent reduction in the growth increment of VMT  
            overlaps significantly with SB 375 but raises a number of  
            issues.  First, this bill seeks to reduce greenhouse gas  
            emissions only by reducing VMT, whereas SB 375 provides much  
            more flexibility to the regions to achieve the same goal by  
            reducing VMT or through other means.  Second, in most regions  
            it will be difficult if not impossible to reduce VMT by 10  
            percent without implementing land use changes.  Unlike SB 375,  
            however, this bill does not specifically require a blueprint  
            to achieve and guide such land use changes.  The committee may  
            wish to consider deleting the overlapping section of this bill  
            in deference to SB 375's provisions to achieve greenhouse gas  
            reductions through RTPs. 

           3.The limitations of VMT as a metric  .  VMT is an important  
            transportation and environmental measurement but has its  
            limitations from a both a policy and practical standpoint.  In  
            the context of this bill, it is meant to serve as a proxy for  
            reducing greenhouse gas emissions, but the correlation is not  
            exact.  Even if VMT in a region is flat or increases,  
            greenhouse gas emissions may be reduced if the fuel efficiency  
            of vehicles increases (people use less gas to travel the same  
            distance) or if less carbon-intensive fuels are used (there  
            are less emissions per gallon of gas).  

            Moreover, this bill seeks to reward cities and counties for  
            adopting general plans that reduce VMT by ten percent, but it  
            is not clear how this would be measured or even who would  
            measure it.  For example, what is the baseline?  If it is the  
            general plan that existed five years ago, are cities and  
            counties who had environmentally-friendly general plans at  
            that time penalized?  How is commuter traffic that passes  
            through a city counted?  The goal of this bill to incentivize  
            land use plans that reduce greenhouse gas emissions is  
            laudable, but it is not clear how the bill's goals can be  
            incorporated into funding programs in a practical manner.  

           4.Alternative ways to reward blueprint implementation  .  In  
            addition to implicitly requiring the adoption of smart growth  
            land use blueprints at the regional level, this bill seeks to  
            help implement regional blueprints by directing state bond  
            funds more towards projects that are consistent with a  
            regional blueprint or that are located in cities and counties  




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            that have adopted their own environmentally friendly general  
            plans.  With respect to the TOD Housing Program and Infill  
            Infrastructure Grant Program funded by Proposition 1C, this  
            bill provides applicants with additional points if the  
            projects are consistent with a regional blueprint or a local  
            general plan that will reduce the amount of VMT by at least 10  
            percent.  Consistency with a regional blueprint already earns  
            points under both programs, 20 points out of 350 in the TOD  
            Housing Program and 10 points out of 130 in the Infill  
            Incentive Grant Program.  In order to change the existing  
            program, the bill would have to go further, perhaps by  
            granting additional points to projects in cities or counties  
            whose general plans as a whole are consistent with a regional  
            blueprint, as determined by the council of governments, or by  
            awarding negative points to projects that are directly  
            inconsistent with a regional blueprint.  

            This bill does change the existing program in one respect in  
            that it awards extra points to projects in cities and counties  
            not covered by a blueprint but that have general plans that  
            reduce VMT by 10 percent.  As discussed above, however,  
            measuring the change in VMT from general plans is problematic.  
             

           5.Growth in VMT vs. absolute VMT  .  This bill refers various  
            times to reducing VMT by 10 percent.  In one instance, the  
            bill refers to reducing the growth increment in VMT by 10  
            percent.  At other times, it refers to reducing the amount of  
            VMT (i.e., absolute VMT).  These are two very different  
            numbers, and the former is much more easily achievable than  
            the latter.  If the bill continues to use VMT as a metric,  
            amendments will be needed to ensure consistency.

           6.Arguments in opposition  .  Opponents believe that the  
            one-size-fits-all VMT reduction required of RTPs by this bill  
            could potentially create significant transportation planning  
            issues for RTPAs.  The use of VMT as a metric fails to factor  
            in the various needs and demands of metropolitan regions and  
            holds RTPAs accountable for factors largely beyond their  
            control.
           
          7.Technical amendment  .  Section 2 of the bill contains no  
            changes to current law and is not necessary.  It should be  
            stricken from the bill.  

          Assembly Votes:




          AB 842 (JONES)                                           Page 6

                                                                       


               Floor:                            47-28
               Appr:     10-5
               H&CD:       5-2
               Local Gov:                          4-2

          RELATED LEGISLATION

          SB 375 (Steinberg), among other things, requires the Air  
          Resources Board to assign greenhouse gas reduction targets to  
          each RTPA, requires each RTPA to show how it plans to meet the  
          targets, and requires each RTPA to include a sustainable  
          communities strategy in its RTP.  This bill is in the Assembly  
          Appropriations Committee.
          
          POSITIONS:  (Communicated to the Committee before noon on  
          Wednesday, 
                     June 11, 2008)

               SUPPORT:  American Federation of State, Municipal, and  
          County Employees                       
                         American Lung Association
                         Breathe California 
                         California League of Conservation Voters 
                         City of Sacramento 
                         Gray Panthers  
                         Pacific Gas and Electric
                         Planning and Conservation League 
                         Sacramento Area Council of Governments 
                         Sierra Club California 
                         Southern California Edison 
          
               OPPOSED:  Contra Costa Transportation Agency 
                         Los Angeles Metropolitan Transportation Agency 
                         Orange County Transportation Authority