Conventional approaches to transportation impact analysis tend to focus on vehicle level of service (LOS) and similar metrics related to vehicle delay. This focus explains how land use and transportation projects affect driving instead of how those projects change the amount of driving that will occur. While changes to driving conditions that increase travel times are an important consideration for traffic operations and management, these changes do not fully describe environmental effects associated with fuel consumption, emissions, and public health.

SB 743 changes the focus of transportation impact analysis in CEQA from measuring impacts to drivers, to measuring the impact of driving. The change is being made by replacing LOS with vehicle miles of travel (VMT) and providing streamlined review of land use and transportation projects that will help reduce future VMT growth. This shift in transportation impact focus is expected to better align transportation impact analysis and mitigation outcomes with the State’s goals to reduce greenhouse gas (GHG) emissions, encourage infill development, and improve public health through more active transportation.

In January 2019, the Natural Resources Agency finalized updates to the CEQA Guidelines including the incorporation of SB 743 modifications. The Guidelines changes were approved by the Office of Administrative Law and are now in effect. Specific to SB 743, Section 15064.3(c) states, “A lead agency may elect to be governed by the provisions of this section immediately. Beginning on July 1, 2020, the provisions of this section shall apply statewide.”

Can lead agencies continue using LOS until July 1, 2020? 

 

Unfortunately, this is not a simple question and is probably best answered by lawyers well-versed in CEQA. A potential interpretation though that bears consideration is one based on the simple language of the CEQA Statute and CEQA Guidelines. As noted above, the CEQA Guidelines allow an opt-in period before use of VMT is mandatory. However, Section 15064.3 does not include any language stating that lead agencies may continue using LOS. This is where the SB 743 Statute language below becomes relevant because it states that upon certification of the CEQA Guidelines, LOS shall not be considered a significant impact on the environment. Let us know if you have comments or recommendations about this information and we’ll keep this content updated. 

 

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(b)(2) Upon certification of the guidelines by the Secretary of the Natural Resources Agency pursuant to this section, automobile delay, as described solely by level of service or similar measures of vehicular capacity or traffic congestion shall not be considered a significant impact on the environment pursuant to this division, except in locations specifically identified in the guidelines, if any.

Essential Implementation Questions

All lead agencies will need to answer the following SB 743 implementation questions:

1. What is the preferred methodology for estimating and forecasting VMT considering that this metric is a required input for air quality, energy, GHG, and now transportation impact analysis in CEQA?

– If the lead agency wants to follow the OPR Technical Advisory recommendations, what travel forecasting model will be used to estimate baseline VMT for citywide or regional averages?

– How will the lead agency ensure that project-scale VMT analysis is consistent with the methodology used to estimate thresholds?

2. What are the significance thresholds for VMT impacts under ‘baseline’ and ‘cumulative’ conditions?

– Does the lead agency accept the OPR Technical Advisory recommendation that land use projects and plans within metropolitan planning organization (MPO) areas can achieve a 15 percent reduction in VMT per capita or per worker compared to existing conditions?

3. Does the lead agency want to take advantage of VMT impact screening?

– Will VMT impact screening be allowed for residential and employment land uses based simply on location within a transit priority area (TPA) or low-VMT generating area?

– Will screening also be allowed for local-serving retail projects consisting of less than 50,000 square feet?

4. What mitigation does the lead agency consider to be feasible for VMT impacts?

– If TDM is used, how will the lead agency verify its effectiveness over time since many TDM programs are building tenant dependent?

Where do the guidelines apply (TPAs in California)?

Implementation Resources