August 28, 2013

Senate President pro Tem Darrell Steinberg State Capitol, Room 205 Sacramento CA 95814 RE: Support for Strengthening Transportation Analysis and Displacement in SB 731 Dear Senator Steinberg, As the conveners of the CEQA + Infill Dialogue, a cross-sector collaborative aimed at finding consensus on how best to incentivize good infill while protecting communities, we are writing to encourage you to amend SB 731 to improve CEQAs treatment of transportation impacts and displacement. The CEQA + Infill Dialogue has met since April 2013 and brings together leading experts and advocates in a variety of fields, including infill developers, local and regional agencies, environmentalists, public health experts, and advocates for social equity and affordable housing. Our letter dated July 19 outlined the broad areas of consensus reached by our Dialogue. This letter provides more detailed recommendations on two key issues, transportation analysis and displacement. These recommendations work in concert to incentivize smart infill development and green transportation while safeguarding vulnerable communities. We believe it is imperative that SB 731 address both transportation analysis and displacement, so that these powerful new incentives for infill development dont do unintended harm to urban low-income communities. 1. Improve Transportation Analysis to Align with SB 375 and AB 32 Level of Service (LOS) is an outdated measure which provides an incomplete picture of transportation impacts and can actually harm efforts to reduce VMT and GHGs as required by SB 375 and AB 32. Reliance on LOS has focused CEQA analysis on a projects impact on automobile delay, resulting in mitigation measures such as widening roadways or reducing the density of good infill projects that conflict with environmental objectives. Projects that enhance transportation choices and increase the flow of people - rather than simply automobiles through congested areas, such as bus lanes, transit projects, bike facilities, and pedestrian infrastructure improvements, may be subject to CEQA challenges simply because they impact automobile LOS. Instead of focusing exclusively on automobile travel, the State of California should establish guidance for CEQA compliance that complements SB 375 and AB 32. Specific outcomes such as reducing automobile use and protecting communities from harmful emissions should be recognized as State priorities that should result from applying CEQA, instead of ever-larger roadway networks that generate a wide variety of adverse environmental effects. This new guidance should direct lead agencies to capture a projects impact on regional VMT goals as well as localized impacts. Particular attention should be paid to protecting environmental justice communities that already suffer disproportionate environmental health and safety burdens.

To address this, SB 731 should be amended to: a. Eliminate auto delay as a significant impact under CEQA. This provision should take effect once the new guidelines described below have been adopted. b. Direct OPR to develop guidance for evaluating transportation impacts in a manner that supports implementation of SB 375 and AB 32, and incorporate this new guidance into the CEQA guidelines. c. This new guidance should be developed through a transparent public process, including targeted outreach to disadvantaged communities, and should support the following goals: i. ii. iii. iv. v. Contribute to reduction of VMT and GHGs consistent with local and regional plans, such as climate action plans, housing elements, and sustainable communities strategies. Improve transit, bicycle and pedestrian accessibility to jobs, education, housing and services, especially for low-income communities. Improve compliance with the California Complete Streets Act of 2008. Implement impact mitigation measures that do not increase automobile trips, automobile triplengths, or induce demand for driving. Ensure environmental justice and low-income communities do not suffer disproportionate new impacts.

d. This new guidance should apply to all project types, in all locations. e. Nothing in this provision, or the new guidance it creates, should relieve the requirement to analyze a projects potentially significant impacts related to air quality, noise, safety or any other impact associated with transportation, including localized impacts in disadvantaged communities. f. The definition of Infill Opportunity Zone within the Congestion Management Act should also be updated to be consistent with SB 375.

2. Provide Guidance on Addressing Displacement While infill development, done right, can greatly improve the quality and livability of a neighborhood and the health of its residents, new development can also result in both physical (direct) displacement and economic (indirect) displacement. Unchecked, the displacement of residents and neighborhood-serving businesses that can no longer stay in a neighborhood because of escalating rents/property values brought on by new development, can have significant harmful environmental, social, and health equity consequences. We believe these impacts should be fully incorporated into the CEQA framework. Specifically, SB 731 should be amended to: a. Direct OPR to gather the best available research and best practices on preventing and mitigating physical and economic displacement. b. OPR should then incorporate this information into the CEQA guidelines, providing direction to jurisdictions on how to evaluate potential economic and physical displacement of vulnerable 2

populations, and to adopt policies to prevent and mitigate those impacts. Such mitigation measures could include rent stabilization ordinances, inclusionary zoning, housing impact fees, and condominium conversion restrictions, to name just a few. c. Jurisdictions should be incentivized to adopt policies to prevent and/or mitigate physical and economic displacement. 3. Allow sufficient time for public review of further amendments to SB 731 With the end of session fast approaching, we recognize that bills need to move quickly to meet key deadlines. However, with an issue as important as CEQA, its imperative that all proposals have ample time for public review and input. Therefore, we respectfully request that remaining amendments to SB 731 be made public as soon as possible, so there is time left in session to discuss and work toward consensus.

We are grateful for your consideration and attention to preserving and strengthening the California Environmental Quality Act to advance sustainable and equitable communities in California. We welcome the opportunity to discuss these concepts with you.

Sincerely, Autumn Bernstein Director ClimatePlan Jeremy Madsen Executive Director Greenbelt Alliance Bruce Reznik Executive Director Planning and Conservation League