The Ongoing Fight for California’s Climate

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Last year, Transform was part of a coalition of environmental justice, climate, transportation, and affordable housing groups that worked with the governor and legislature to ensure California renewed its Cap-and-Invest Program that funds vital housing, transportation, and environmental justice programs. We won. 

But our victory didn’t last. Surprise proposed rule changes from the California Air Resources Board in April would drastically cut Greenhouse Gas Reduction Fund (GGRF) revenue, taking all funding from the Affordable Housing Sustainable Communities Program (AHSC), the Transit and Intercity Rail Capital Program (TIRCP), and the Low Carbon Transit Operations Program (LCTOP).

How we got here

In the 2025 legislative session, lawmakers were scheduled to set the terms for reauthorizing California’s Cap-and-Trade Program, which would have expired in 2030. The program charges polluters and continuously reduces the cap on greenhouse gas emissions with the goal of reducing and ultimately reversing climate change.

Instead, under Governor Gavin Newsom’s direction, the program reauthorization was immediate, taking effect in 2026. The new Cap-and-Invest Program assumed roughly $4 billion in annual revenue to the GGRF, allocated in descending priority:

  • The first $1 billion goes to High-Speed Rail.
  • The legislature allocates the next $1 billion at its discretion to a variety of emissions-reducing projects through the budget process each year. 
  • The final $2 billion is allocated to so-called “continuous appropriations” programs like AHSC, TIRCP, LCTOP, plus $250 million to CARB for programs to curb air pollution, $130 million for safe drinking water, and $200 million to the Department of Forestry for firefighting.

If Cap-and-Invest revenue falls short, funding disappears from the bottom up. Under CARB’s proposed rule changes, revenue for GGRF is expected to be $2 billion — no money for affordable housing, low-carbon transit, or intercity rail.

Rulemaking bait and switch

CARB oversees Cap-and-Invest and periodically makes rules governing the program. The agency initially proposed amendments to the Cap-and-Invest regulations in January 2026. These changes would have updated allowance budgets through 2045, providing a narrow incentive program to keep manufacturing in the state while keeping California on track to meet its 2030 climate goals.

Then, in April, without warning, CARB issued revised amendments, including a major rule change that would drastically increase the number of free allowances given to polluters, reducing revenue and increasing climate-killing emissions.

California’s green mirage

As of this writing, the price of crude oil sits at around $100/barrel, almost twice its price last fall when lawmakers finalized the Cap-and-Invest legislation. Oil companies are reaping windfall profits, yet CARB is giving them extra carbon credits at the price of defunding programs that effectively decarbonize our environment and improve quality of life for average Californians.

California has a reputation for being a leader on the environment and climate change, and in many respects, that reputation is deserved. However, the same regressive forces push against change in our energy and transportation sectors here as everywhere. Our governmental bodies can fall prey to that pressure, changing rules to shovel more money into the pockets of the privileged while disinvesting in the lives of the majority.

How we fight back

When we first conceived of this post, we expected to talk about the ongoing benefits from last year’s legislative victory. CARB’s actions show how our advances can get reversed; this is why Transform remains connected to coalitions actively working to ensure climate justice in California.

Our state won’t change without pressure from groups like Transform and people like you. Please take action with the letter campaign below. Please note: the letter is somewhat technical to address the CARB rulemaking process; it addresses the Cap-and-Invest funding rules and demands CARB not increase allowances to Big Oil.

MTC Links Funding to Sustainable Communities Policy for the First Time with $45M Incentive Program

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FOR IMMEDIATE RELEASE

February 25, 2026

Contact: Zack Deutsch-Gross, [email protected], (415) 637-0101

San Francisco – Today, the Metropolitan Transportation Commission formally adopted the Transit-Oriented Communities (TOC) Incentive Program, setting aside $45 million in One Bay Area Grant (OBAG 4) funds to reward cities that adopt housing, parking, and transportation policies that support the building of homes near transit.

Transform applauds MTC’s decision to maintain a strong link between transit and housing through its TOC Policy and OBAG grants. Building new housing near transit is proven to reduce traffic congestion, air pollution, and transportation costs, making it one of the most effective ways to combat climate change. 

This vote finalizes an evaluation framework first considered when MTC adopted its original TOC Policy in 2022. The program establishes a 100-point scoring system across four priority categories: density, housing production and tenant protections, parking management, and station access. Jurisdictions must meet scoring thresholds to qualify for OBAG 4 incentive funds.

“As a regional leader and a steward of significant public resources, MTC has a responsibility to advance our collective regional transit, housing, climate, and equity goals,” said Zack Deutsch-Gross, executive director of Transform. “The Commission’s vote today showed real leadership in leveraging regional dollars to support local policies that contribute to those goals.” 

The TOC Incentive Program follows MTC’s January approval of the broader OBAG 4 framework, which set aside the funding for the next round of grants. With today’s vote, jurisdictions can apply for grants from the $45 million in OBAG 4 funds if they demonstrate compliance with TOC standards across the four categories. The deadline to qualify for grant funding has been extended to July 1, 2027.

The original TOC Policy, adopted in September 2022, was designed to better align land use and planning decisions within a half mile of transit areas with the Bay Area’s climate, transportation, economic, and housing goals, as articulated in Plan Bay Area. Since then, MTC has debated how tightly to tie transportation funding to specific policies that advance these goals. Today’s vote represents a victory for advocates who have urged the Commission to use OBAG funding as a means to encourage communities to develop affordable, equitable, transit-oriented housing.

“For years, Transform has pushed MTC to tie transportation funding to integrated policy outcomes near transit stations, including tenant protections and smarter parking policies. Today’s vote makes that linkage real,” said Deutsch-Gross.

Tell MTC to Link Funding to Real Housing Outcomes

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On Wednesday, January 28, the Metropolitan Transportation Commission will take up critical decisions about how regional transportation funding is allocated through the One Bay Area Grant (OBAG) Program.

The January 28 MTC meeting will focus on tying OBAG funding to Transit-Oriented Communities (TOC) implementation. A follow-up meeting on February 25 is expected to focus on the TOC Policy itself.

These votes are deeply connected and critically important to the future of sustainable development in the Bay Area.

OBAG is one of the region’s strongest tools for shaping land use, housing, and transportation outcomes. How MTC structures OBAG funding now will either reinforce or undermine the TOC Policy before commissioners even vote on the final details next month.

We urge the Commission to use the January 28 meeting to send a clear signal that:

  • Regional funding must advance regional goals.
  • TOC compliance is essential to meeting climate, housing, and equity commitments.
  • Scarce public dollars should prioritize jurisdictions taking meaningful action toward meeting regional goals.

OBAG funding is one of the few levers MTC has to ensure that local decisions align with regional goals. Decisions the commission makes now will determine whether the TOC policy functions as a meaningful incentive or simply becomes another well-intentioned plan without teeth. 

Transform is advocating for a strong policy that uses OBAG funding as an incentive for communities to develop infill housing near transit, reducing car dependency and increasing livability and affordability.

Take action now to send a message to commissioners before their January 28 meeting

The TOC Policy was originally designed to move the Bay Area beyond baseline requirements by encouraging stronger tenant protections, more affordable housing near transit, better station access, and smarter parking policies. While early conversations with MTC suggested strong alignment around linking funding to TOC metrics, there is now a risk that the bar for cities to comply with TOC will be considerably lowered. 

Allocating OBAG funding to cities for meeting watered-down minimum requirements will undermine the work of other Bay Area cities that take transit-oriented development much more seriously. Furthermore, the precedent would erode further efforts to hold cities accountable to our climate, transportation, and housing goals.  

Email your MTC commissioner today and tell them to fund housing near transit, not more sprawl.

Transform will continue to push for a stronger TOC policy

If MTC is serious about meeting its housing, climate, and transportation goals, it must take a leadership role to ensure that regional funding supports the communities that are stepping up to advance infill housing near transit, reducing car dependency and increasing livability and affordability, not cities that continue to drag their feet and maintain the status quo. 

Between now and then, the message is clear: regional dollars should be conditioned on cities implementing policies and programs that support housing and business development that is near transportation, putting public transit in reach for more people and improving the quality of life in the Bay Area.

Transform will be turning out with other advocates and community members in January and February to push for a policy that delivers meaningful outcomes.

ClimatePlan Coalition Statement on Governor’s Proposed Budget

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The ClimatePlan partnership works to improve land-use and transportation planning to protect Californians’ health, communities, environment, and climate. Transform helped found ClimatePlan in 2007 and continues to serve on its advisory board.

ClimatePlan is concerned that Governor Newsom’s proposed 2026–27 budget would represent a step backward, making it more difficult and expensive for Californians to live and get where they need to go. 

ClimatePlan identified several areas of concern in the budget, including:  

  • Insufficient funding for transit operations, leaving agencies without enough resources to provide frequent and reliable service
  • No increase for the popular Active Transportation Program, limiting communities’ ability to deliver safer streets for walking and biking
  • No restoration of funding for e-bike incentives, a popular and effective program abruptly eliminated at the end of 2025

One welcome development is the inclusion of the Free Transit Pass program, which helps make transit more affordable for students, older adults, and low-income Californians.

More broadly, ClimatePlan had hoped to see greater alignment in the budget with the recent recommendations of the Transit Transformation Task Force, including progress toward stable operating funding for transit, expanded transit priority lanes, stronger last-mile walking and biking solutions, and improved service coordination across transit systems. 

Proposed breakup of Affordable Housing program 

The governor’s budget proposes to break up funding for the Affordable Housing Sustainable Communities (AHSC) program, which integrates housing, transportation, and green space planning and has delivered affordable, well-located homes in disadvantaged communities. Under this proposal, transportation and housing investments would be separated across two different agencies. ClimatePlan is working to better understand the implications of this proposal, as it will directly impact projects that deliver meaningful improvements for Californians.

Aligning housing and transportation investments helps Californians live and get where they need to go affordably. They support strong, resilient communities and reduce the air pollution that sickens and kills thousands of Californians every year. 

“How California funds and approves transportation and housing projects shapes daily life for millions of people. Funding public transit and safe streets for walking and biking in the budget is essential to connect Californians to jobs, school, healthcare, and their communities by making it possible to get around without relying on a car,” said ClimatePlan Director Lesley Beatty. “ClimatePlan looks forward to working with state leaders and partners in the months ahead to improve the budget and advance solutions that meet Californians’ transportation needs.”

Contact: 

Lesley Beatty, Director 

[email protected] 

510-390-0440

Affordable Housing and Transit Are Smart Climate Investments

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This post was written jointly by Transform and California Housing Partnership.

California has a reputation for being at the vanguard of environmentalism and climate change. The state’s creation of the Cap-and-Invest Program (formerly Cap-and-Trade) is a prime example. It sets limits on the emission of greenhouse gases (GHGs) and uses market forces to achieve those limits in the most cost-effective way. The proceeds from the sale of emission licenses are then invested in proven GHG reduction strategies that benefit all Californians. 

The evidence shows that California’s Cap-and-Invest Program has been a huge success to date and has become a model elsewhere in the United States as well as internationally. The only catch is that the program is currently authorized only until 2030, and uncertainty over its continuation is decreasing program funding and effectiveness. To address this, state leaders have proposed to extend the program through 2045 and signaled that they may want to make some changes in the process.   

As Governor Newsom and the California Legislature move to extend the Cap and Invest Program and reprioritize the investments, three programs in particular deserve continued priority support. The Affordable Housing and Sustainable Communities (AHSC) program, the Transit and Intercity Rail Capital Program (TIRCP), and the Low Carbon Transit Operations Program (LCTOP) have collectively reduced GHG emissions by over 36 million tons in the last ten years, equivalent to the annual emissions of the entire country of Sweden. 

AHSC makes housing affordable: By building affordable housing near transit, AHSC saves low-income households over $10,000 in rent per year, plus more in transportation costs, which is enough to pay for food for a year to help a low-income family stay out of poverty. 

AHSC is a good investment: Every dollar invested in AHSC from cap-and-invest revenue is matched by four dollars from other public and private sources, and 70% of the affordable housing approved under this program has already been built or is under construction. Fifty-six percent of the funds have been invested in communities most in need of environmental protection and economic opportunity. 

AHSC reduces traffic for everyone. A new report from California Housing Partnership and Enterprise Community Partners found that AHSC alone has led to 512 million fewer miles driven since its inception by enabling residents to live close to public transit and avoid driving for most of their trips. 

Public transit investment is vital to our regions. Cap-and-Invest’s transit programs, TIRCP and LCTOP, provide crucial funding to improve service and expand public transit systems that are still recovering from the decline in ridership they experienced during the pandemic. Many Californians don’t regularly ride public transit, but everyone benefits from reduced pollution and congestion on our roadways. The BART system in the Bay Area saves 1.2 million miles of driving every day. Without public transit, our roads would be endlessly clogged, and people who can’t afford to drive would be left without a way to get around.

Public transit creates jobs and affordable travel options. Major investments in public transit also provide high-quality jobs throughout the state and provide essential benefits to disadvantaged communities. Each dollar invested through TIRCP provides five times the value thanks to federal matching funds, while 94% of LCTOP dollars are invested directly in low-income and disadvantaged communities.

We call on Governor Newsom and the California Legislature to continue long-term commitments to these critical and successful programs. We further encourage the Governor and Legislature to improve the Cap-and-Invest Program by eliminating free emission allowances for the fossil fuel industry that are counterproductive to the program’s goals and harm sensitive communities. 

Climate, housing, and transit are three of the most critical challenges facing California. By preserving continuous funding for AHSC, TIRCP, and LCTOP, the governor and legislature have the opportunity to address all three simultaneously and comprehensively. That sounds like a perfect trifecta to us.

Email your legislators now and tell them you want Cap-and-Invest to fund housing and public transit.

3 Ways Transform Fights Highway Expansion

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California has to choose between continuing to do what we always did and build new highway lanes in a fruitless effort to ease congestion (spoiler alert: it won’t work), or we can shift our transit system to sustainable modes and fight climate change. We can’t do both. 

Transform works on both fronts, seeking more funding for green transportation options and combating the all-powerful Highway Lobby. Our work to redirect California’s transportation dollars away from highway-building and toward true transportation choice takes three forms.

Legislative action

Each year, we support legislation that funds active mobility and public transit and moves us from our car-dependent past into a multimodal future. Last year, Transform sponsored a bill that will bring transparency to our transportation spending, AB 2086 (Schiavo), which requires Caltrans to report where our transportation dollars are going.

In addition, we work against bills that would facilitate more driving, such as this year’s AB 697, which will make it easier to widen State Route 37.

Speaking against specific projects at the planning level

When projects to add highway lanes are at the planning stage, they must do an environmental review and release a draft for public comment. In the case of a widening of I-680 in the East Bay near Walnut Creek, we felt the Draft Environmental Impact Report didn’t consider all the factors it should have in recommending new highway lanes, and we submitted a comment letter detailing our objections to the project. 

We have also opposed the project to widen State Route 37 between Solano, Napa, and Sonoma Counties, joining with allies to voice our opposition to those with the power to stop the project. Not only will this project not solve congestion; it spends millions of dollars on building a highway that will be underwater in the near future due to rising sea levels. It’s the definition of a boondoggle.

Opposing funding for building new lanes

Transform’s budget advocacy revolves around seeking more funding for infill affordable housing (one of the best ways to fight climate change), public transit, and active transportation. This year, the results have been mixed, and we don’t have the final budget as of this writing. Based on the legislature’s budget, our coalition succeeded in salvaging funding for affordable housing and transit operations, but we failed to get back $400 million that was taken from the Active Transportation Program, which funds biking and walking infrastructure. 

We take bold and creative approaches to chip away at the funding sources that allow bad projects to be built. At the California Transportation Commission’s June 26 meeting, the commission will vote on giving funding from three specific transportation sources to Caltrans for the SR 37 widening, and we are loudly voicing our objections. You can help: use the form below to email the CTC commissioners and tell them not to fund the SR 37 project.

Legislature’s response to the California budget provides a lifeline for transit, invests in housing, and ignores biking and walking

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FOR IMMEDIATE RELEASE

Contact: Zack Deutsch-Gross, [email protected], (415) 637-0101

California legislators have agreed on a budget that prioritizes needed investments in affordable housing and provides a lifeline to Bay Area transit agencies facing fiscal cliffs. However, by prioritizing highways over active transportation, the budget misses a major opportunity to meet the scale of the climate crisis.

The two-party agreement in the legislature invests $500 million in Low-Income Housing Tax Credits (LIHTC) and $120 million to the Multifamily Housing Program, rejects the Governor’s proposal to cut $1.1 billion from transit programs, and provides Bay Area transit agencies with a $750 million loan to keep buses and trains running as they seek long-term operating funds.

“We applaud the legislature’s commitment to affordable housing and keeping our transit agencies afloat,” said Transform Policy Director Zack Deutsch-Gross. “These vital investments keep the Bay Area on track toward a 2026 regional transportation measure, which depends on the legislature passing SB 63 authorizing legislation later this year.”

However, the proposal fails to address the $400 million cut from California’s Active Transportation Program in last year’s budget. As a result, only 13 of the over 300 project applications to promote safe biking and walking will move forward.

“Instead of shifting dollars toward sustainable transportation alternatives, this proposal continues to fund Caltrans’ highway expansion agenda,” said Deutsch-Gross. “Even in tight budget years, the climate crisis demands more than preserving the status quo.”

While the legislature’s proposal does not mention reauthorizing Cap-and-Trade, now Cap-and-Invest, it does allocate $500 million to CalFIRE from the Greenhouse Gas Reduction Fund, limiting GGRF’s ability to support affordable housing, transit, and environmental justice priorities.

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Transform works to ensure that people of all incomes thrive in a world safe from climate chaos. We envision vibrant neighborhoods, transformed by excellent, sustainable mobility options and affordable housing, where those historically impacted by racist disinvestment now have power and voice.

Affordable Housing Benefits Everyone

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Affordable, centrally located housing is key to California’s climate policy because high housing costs typically push low-wage workers to distant suburbs, trapping them in an expensive cycle of long commutes with few transit options. Our housing affordability policies affect people’s quality of life, transportation costs, and air quality for the region, as well as greenhouse gas emissions from their commutes. In fact, dense, infill affordable housing near transit is one of our best solutions to mitigate the climate crisis.

But the current version of California’s budget doesn’t guarantee funding for successful programs like the Affordable Housing and Sustainable Communities Program (AHSC) that are proven to reduce emissions by building infill affordable housing near transit across the state. Here are just a few of the benefits that affordable housing provides to its residents and the community at large — all reasons to provide more funding for affordable housing, not less.

Affordable infill housing fights climate change

VMT, short for vehicle miles traveled, is a measurement used by state and local agencies to measure and track emissions and the impact of infrastructure projects. Housing that’s far from jobs and transit can increase a region’s VMT. Moving to a central location with easy access to common destinations by walking, biking, or taking transit leads people to drive less, reducing VMT and emissions overall.

Last year, Transform used MTC data to calculate the GHG reductions from a proposed $10 billion affordable housing bond. Our analysis found that not only would affordable housing residents save money on transportation, but the affordable housing units near transit expected to be built with the bond proceeds would take 3 million tons of GHGs out of the atmosphere.

bay_area_affordable_housing_regional_bondDownload

A 2015 working paper commissioned by the California Housing Partnership looked at VMT reductions from “location-efficient” housing by income level. Its bottom line finding was that, while people of different income levels had about the same level of VMT reduction in centrally located housing, low-income housing is a better investment for the environment. That’s because lower-income residents “live more compactly,” thus providing greater VMT reduction per acre.

However you look at it, affordable housing near transit and walkable destinations is an excellent investment for climate resiliency.

Affordable housing strengthens local economies

Siting affordable housing near central business districts provides several distinct economic advantages, as outlined in an article in the Planning Commissioners’ Journal. Businesses find it easier to hire and retain workers. And, when rents are low enough to leave households with extra spending money, low-income families are more likely to use those funds to buy necessities, boosting the local retail economy. 

Significantly, the article cites a report from the Center for Housing Policy, which found that, in most cases, affordable housing development had no impact on surrounding property values. That negates a common misconception that leads neighbors to oppose affordable developments.

An article in the Economic Development Journal addresses the same topic, detailing how affordable housing development contributes to communities’ economic competitiveness.

Affordable housing boosts educational achievement

Another paper by the Center for Housing Policy highlighted the significant impacts of affordable housing on young people’s education. Stable housing keeps children from losing ground if they have to change schools often due to frequent moves. Housing affordability may allow parents to work fewer hours, giving them more time and energy to participate in their children’s education. The provision of affordable units can allow families to move to better school districts where students have more educational opportunities. Affordable housing developments can lift up neighborhoods and communities, acting as a locus for enrichment activities such as after-school programs.

Transform board member Elizabeth Madrigal cited her family’s move to more affordable housing as the springboard that allowed her to further her education. Her family’s experience of the transformative power of stable, affordable housing inspired her to work in the field.

We need our state legislators and governor to guarantee the future funding for the Affordable Housing and Sustainable Communities Program (AHSC) that is proven to reduce emissions by building infill affordable housing near transit across the state. Take action now to show your support for this critical issue!

New Polling Shows Path Forward for Regional Transportation Funding Measure

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A poll commissioned by Bay Area Forward, an alliance of labor unions and transportation advocates, found that Bay Area residents want to save public transit and favor a gross receipts tax on businesses to provide a secure funding source. Transform, which is a founding member of the alliance as part of the Voices for Public Transportation Coalition, has long advocated for a progressive funding mechanism such as a gross receipts tax, rather than a regressive sales tax. 

A strong majority of 61% supports the gross receipts tax. Before we can place a gross receipts tax measure on the ballot, however, we need state authority. Transform will be working hard to add an amendment to SB 63, the measure sponsored by Senators Arreguin and Wiener, to replace the sales tax with a gross receipts tax for Bay Area transit funding. 

Poll results

FM3 Memo Regional Transit Measure 2026 SurveyDownload

Coalition statement on polling

Bay Area Forward, a New Transit Alliance, Launches to Advocate Big Business Pay Their Fair Share to Fund Transportation

Community and labor organizations release new polling showing strong voter support for a business tax as the funding mechanism for a 2026 regional transit ballot measure.

FOR IMMEDIATE RELEASE

CONTACT: Ryan Williams, (510) 590-2782‬, [email protected]

OAKLAND, CA – Bay Area Forward, a new transit alliance consisting of labor unions, transit advocates, and climate, bike and pedestrian groups, announces its formation to strengthen and modernize Bay Area public transportation and urges the State Legislature to use a business gross receipts tax as the funding mechanism for the measure following poll results that show strong voter support.

“BART, SF Muni, Caltrain, and AC Transit are careening toward a fiscal cliff that would upend our economy and the lives of Bay Area residents,” said Richard Marcantonio of Public Advocates and the Voices for Public Transportation coalition, and board member of Bay Area Forward. “Voters want to save transit, but utilizing a sales tax won’t raise enough to solve the crisis.”

A recent poll, conducted by FM3 Research on a regional transit measure, asked likely November 2026 voters in Alameda County, Contra Costa County, San Francisco, and San Mateo County whether big business should pay their fair share to support public transit.

The results are clear: for the first time in five years of polling, a revenue source supporting regional transit needs broke 60% support with a business gross receipts tax initially polling at 61%.

After both positive and negative messaging, the business gross receipts tax ended with +21% net support (57-36%) while the sales tax was +10% (55-45%). Importantly, in places where polls show the sales tax option is failing, such as San Mateo County (47-53%), the business gross receipts tax polled at a whopping +27% net support (60-33%).

Business gross receipts is not a source of revenue normally available to most counties for transit needs, except with state authorization. Because SB 63, authored by Senators Jesse Arreguín and Scott Wiener, is necessary to authorize the regional measure, the Legislature can choose a county level business gross receipts tax to fund the transit measure.

“We urge the Legislature to amend the funding mechanism in SB 63 to a gross receipts tax instead of a sales tax,” said Jesse Hunt, President of ATU Local 1555 and board member of Bay Area Forward. “Utilizing this source is a win-win approach providing funding for regional transit agencies while protecting sales tax revenue for other important local needs.”

The aftermath of the COVID-19 pandemic shifts in work patterns and the Trump Administration’s attacks on transit have created a perfect storm threatening the very foundation of the public transportation network in the Bay Area. The Metropolitan Transportation Commission projects that without new revenue sources, Bay Area transit agencies could face annual deficits exceeding $915 million annually starting as early as 2026, leading to massive service cuts, the elimination of transit as a viable transportation option for Bay Area residents, and widespread congestion and delays.

Bay Area Forward is dedicated to strengthening and modernizing our public transportation system in the Bay Area and making it more equitable, affordable, safe, and reliable so that Bay Area residents, businesses, environment, and the economy can thrive.

The founding member organizations of Bay Area Forward include AFSCME Council 57, AFSCME Local 3993, AFSCME Local 3916, Amalgamated Transit Union Local 1555, Amalgamated Transit Union Local 192, Service Employees International Union 1021, SMART – Transportation Division, Transport Workers Union Local 250A, United Auto Workers (UAW) Region 6, and dozens of community groups that are part of the Voices for Public Transportation coalition.

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Transform Adds Transit-Oriented Development Bill to its 2025 Agenda

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We published our legislative priorities a couple of weeks ago, but like everything in Sacramento, that list is subject to change. We’re happy to add another excellent bill to our support list: VMT Mitigation Fund for Affordable Housing Bill, AB 1244, by Assemblymember Buffy Wicks.

Critical TOD funding

California’s Transit-Oriented Development (TOD) Housing Program provides grants of up to $10 million for affordable rental housing development near transit stops and up to $5 million for transit improvements. It’s an excellent program that provides critical funding for affordable housing and can also be used to fund neighborhood amenities like bus shelters, bike lanes, and sidewalk improvements.

Under California’s environmental review law, construction projects projected to increase vehicle miles traveled (VMT) must take mitigation measures, but these measures often contain overly optimistic assumptions that don’t lead to meaningful reductions in VMT. The VMT Mitigation Fund for Affordable Housing Bill adds more money to the TOD Program by making it eligible for highway mitigation dollars. 

Housing as a Climate Solution

While research definitively demonstrates that transit-oriented affordable housing significantly reduces VMT, there is no clear process to direct VMT mitigation resources to affordable housing developments. Lower-income households drive 25% to 30% fewer miles when living within one-half mile of transit, and nearly 50% less when living within one-quarter mile of frequent transit. Transform’s analysis of the impact of a proposed $10 billion housing bond in the Bay Area illustrated the huge VMT reduction of building affordable housing near transit, as well as the cost savings for residents. Our reports on transit-oriented development have repeatedly demonstrated the value of TOD as a climate solution.

AB 1244 would make it easy for VMT-generating projects to mitigate their impacts with affordable housing. Taking a statewide approach through the Transit-Oriented Development (TOD) Housing Program adds efficiency, certainty, consistency, and a familiar process by which developers of affordable homes can access funding. To ensure communities facing the brunt of highway expansion benefit from the mitigations, AB 1244 would prioritize awarding funds to qualifying affordable housing developments in the same city and county as the project.

Housing, not Highways

Transform wholeheartedly supports this excellent measure. With California facing a shortage of 1.2 million homes affordable to lower-income households, and roughly 180,000 people experiencing homelessness on any given night, it would provide a needed injection of affordable housing near transit. While we would prefer no new developments that increase VMT, for the projects that do get built, AB 1244 directly mitigates the increased emissions by funding one of the best ways to reduce emissions: affordable housing near transit. 

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