Cecily Barclay

SACRAMENTO—Transportation currently accounts for approximately half of California's overall greenhouse gas emissions. In 2006, the state enacted AB 32 to force planning and land use entities to reduce greenhouse gases. It has been a battle since then.

Under existing environmental rules, increases in car traffic are considered an environmental impact that must be mitigated—often by building more roads for more cars—even if that mitigation actually increases greenhouse gas emissions. In 2013, SB 743 required the state to change how impacts on transportation are evaluated under the California Environmental Quality Act (CEQA), removing barriers to infill development, public transportation projects and projects that increase walking and biking. These guidelines were applied statewide in 2014.

Following 18 months of public workshops and incorporating hundreds of public comments, the office of planning and research recently announced a proposal to streamline CEQA for projects that boost public transportation, walking and biking, and reduce the need for traveling long distances by car.

“These new rules help remove a quirk of California environmental law that made it harder to build projects that improve air quality and reduce greenhouse gas emissions,” said Ken Alex, director of the governor's office of planning and research. “Not only does this proposal remove barriers to infill development, walking, biking and public transportation—it also explicitly recognizes that such projects have less-than-significant impacts under environmental law.”

The current thinking is to move away from evaluating congestion to miles traveled. The new rules would streamline CEQA review for projects that increase infrastructure for transit, bicycles and pedestrians, and reduce the need for traveling long distances by car. The new rules will also make it easier for developers to complete residential, commercial and mixed-use infill projects that improve air quality by reducing the number of miles driven by cars.

Cecily Barclay, partner, Perkins Coie LLP, tells GlobeSt.com: “For instance, there will be a shift in retail project comparisons from the previous farther-located developments to ones close to where people live and work. Retail will be very case by case.”

Public agencies will have two years to prepare for the transition to the new rules. Cities that are already moving ahead with the changes can begin implementing them as soon as formal rulemaking is complete. Above all, lead agencies are advised to consult with transit agencies as early as possible in the development process, particularly for projects that locate within one-half mile of transit stops.

The proposal will soon be finalized and submitted to the California Natural Resources Agency to commence the formal rulemaking process under the Administrative Procedure Act. The regulations are anticipated to be effective statewide in 2019.

When local commercial real estate developers are thinking about the changes, the following formula will be helpful in the vehicle miles traveled (VMT) discussion: 1. Determine the total lane-miles of an area that fully captures travel behavior changes resulting from the project; 2. Determine the percentage change in total lane miles that will result from the project; 3. Determine the total existing VMT for that same area; 4. Multiply the percent increase in lane miles by the existing VMT and then by the elasticity: [% increase in lane miles] x [existing VMT] x [elasticity] = [VMT resulting from the project].

“The implementation of SB 743 will allow other cities throughout California to better align their project review and analysis with local goals to enhance livability and economic vitality, and encourage walking, biking, and transit,” said Fred Dock, director of Pasadena's department of transportation.

Cecily Barclay

SACRAMENTO—Transportation currently accounts for approximately half of California's overall greenhouse gas emissions. In 2006, the state enacted AB 32 to force planning and land use entities to reduce greenhouse gases. It has been a battle since then.

Under existing environmental rules, increases in car traffic are considered an environmental impact that must be mitigated—often by building more roads for more cars—even if that mitigation actually increases greenhouse gas emissions. In 2013, SB 743 required the state to change how impacts on transportation are evaluated under the California Environmental Quality Act (CEQA), removing barriers to infill development, public transportation projects and projects that increase walking and biking. These guidelines were applied statewide in 2014.

Following 18 months of public workshops and incorporating hundreds of public comments, the office of planning and research recently announced a proposal to streamline CEQA for projects that boost public transportation, walking and biking, and reduce the need for traveling long distances by car.

“These new rules help remove a quirk of California environmental law that made it harder to build projects that improve air quality and reduce greenhouse gas emissions,” said Ken Alex, director of the governor's office of planning and research. “Not only does this proposal remove barriers to infill development, walking, biking and public transportation—it also explicitly recognizes that such projects have less-than-significant impacts under environmental law.”

The current thinking is to move away from evaluating congestion to miles traveled. The new rules would streamline CEQA review for projects that increase infrastructure for transit, bicycles and pedestrians, and reduce the need for traveling long distances by car. The new rules will also make it easier for developers to complete residential, commercial and mixed-use infill projects that improve air quality by reducing the number of miles driven by cars.

Cecily Barclay, partner, Perkins Coie LLP, tells GlobeSt.com: “For instance, there will be a shift in retail project comparisons from the previous farther-located developments to ones close to where people live and work. Retail will be very case by case.”

Public agencies will have two years to prepare for the transition to the new rules. Cities that are already moving ahead with the changes can begin implementing them as soon as formal rulemaking is complete. Above all, lead agencies are advised to consult with transit agencies as early as possible in the development process, particularly for projects that locate within one-half mile of transit stops.

The proposal will soon be finalized and submitted to the California Natural Resources Agency to commence the formal rulemaking process under the Administrative Procedure Act. The regulations are anticipated to be effective statewide in 2019.

When local commercial real estate developers are thinking about the changes, the following formula will be helpful in the vehicle miles traveled (VMT) discussion: 1. Determine the total lane-miles of an area that fully captures travel behavior changes resulting from the project; 2. Determine the percentage change in total lane miles that will result from the project; 3. Determine the total existing VMT for that same area; 4. Multiply the percent increase in lane miles by the existing VMT and then by the elasticity: [% increase in lane miles] x [existing VMT] x [elasticity] = [VMT resulting from the project].

“The implementation of SB 743 will allow other cities throughout California to better align their project review and analysis with local goals to enhance livability and economic vitality, and encourage walking, biking, and transit,” said Fred Dock, director of Pasadena's department of transportation.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM Digital Member, you’ll receive:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Lisa Brown

Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.

lisabrown

Just another ALM site