Vehicle Miles Traveled Reduction Program
and Nexus Study
City of Fresno
1 November 6, 2025
Background - Senate Bill (SB) 743
2 • Passed in 2013, In effect – July 1, 2020
• CEQA Transportation Impact Metric
– Vehicle Miles Traveled (VMT)
– Replaced delay and Level of Service (LOS)
• Projects subject to SB 743
– Development Projects
– Redevelopment/Infill Projects
– Transportation Projects
– Land Use Plans (General Plans/Specific Plans)
Overview and Objectives
3 • Streamline the SB 743 compliance process for development projects by providing feasible mitigation options to reduce potentially significant VMT impacts
• Generate funding for future transportation demand management (TDM) strategies and VMT-reducing projects within Fresno to help reduce Citywide total VMT
• Contribute towards making Fresno a pedestrian-, bicycle-, and transit-oriented community with active, healthy, and livable spaces
VMT Reduction Program Components
4 Urban Design
Calculator
VMT Reduction Program
VMT Reduction
Fee
• Incentivizes Better On-Site
Urban Design Principles
– Land Use
– Urban Design
– Bikeshare, Scootershare,
Carshare
– Transit and Parking
Management
• Citywide VMT Reduction
– Improved Transit
– Pedestrian Infrastructure
Projects
– Bicycle Infrastructure
– TDM Elements
VMT Reduction Program – Urban Design Calculator
• Incentivizes the incorporation of
better urban design principles that
promotes non-vehicular modes of
travel
• Provides credit for VMT reduction
from on-site project design features
– Land Use
– Urban Design
– Bikeshare, Scootershare, Carshare
– Transit and Parking Management
• VMT reduction based on CAPCOA
Handbook for Analyzing
Greenhouse Gas Emissions
5 VMT
Reduction
Program
Development
Projects with
VMT Impact
VMT
Bank
VMT
Mitigation
Projects
Legal Framework – Mitigation Fee Act
6 • Purpose of Fee
– Funding the cost of implementation of VMT mitigation
projects
• Use of the Fee
– Funding VMT reduction projects (e.g. active transportation and transit)
• Relationship Between Project Type and Fee Use
– Development projects with VMT impact over City’s thresholds contributes into the program to reduce VMT
• Relationship Between Project Type and Need for Public Facility
– Creates more effective VMT mitigation projects than on-site improvements
• Relationship Between Cost of Public Facility and Fee
Collected
– Fees are proportional to a development project’s VMT impact above threshold
VMT Mitigation Process
7 Land Development
Application
Project
Screen Out?
Yes
Presumed less than
significant
Analysis Complete
No
VMT Below
Threshold
No Significant Impact
Analysis Complete
VMT Above
Threshold
VMT Reduction
Fee
Mitigated Negative Declaration
Analysis Complete
VMT Below
Threshold
No Significant Impact
Analysis Complete
VMT Above
ThresholdVMT
Analysis
Urban Design
Calculator
VMT Reduction Program
• Identification
– FAX Transit Projects in the Short-Range Transit
Plan
– FAX Transit Projects in the Long-Range Transit
Plan
– Fresno COG Regional Transportation Plan
– Fresno Safe Routes to School Action Plan
– Fresno Active Transportation Plan
8 QuantificationIdentification
Prioritization
Fee$ VMT
$
VMT Reduction Program – Identified Projects
9 • Approximately 250
projects identified
• Approximately 101
projects identified as
Feasible
• 24 Projects selected
for VMT Reduction
Program
VMT Reduction Program – Determination of Fee
• Determination of Fee
10 Description Calculation
Total number of projects
in fee program
24 Project costs attributable
to fee program
$19.9M
Total Unmitigated VMT 67,429
Per VMT cost
methodology
𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇𝑇 𝑝𝑝𝑝𝑝𝑇𝑇𝑝𝑝𝑝𝑝𝑝𝑝𝑇𝑇
𝑝𝑝𝑇𝑇𝑐𝑐𝑇𝑇𝑐𝑐
𝑉𝑉𝑉𝑉𝑇𝑇 𝑝𝑝𝑝𝑝𝑟𝑟𝑟𝑟𝑝𝑝𝑇𝑇𝑟𝑟𝑇𝑇𝑟𝑟
𝑝𝑝𝑝𝑝𝑟𝑟𝑟𝑟𝑟𝑟𝑝𝑝𝑝𝑝𝑟𝑟 𝑏𝑏𝑏𝑏 𝐶𝐶𝑟𝑟𝑇𝑇𝑏𝑏′𝑐𝑐 𝐺𝐺𝐺𝐺
Cost per 1 VMT
reduction
$295
QuantificationIdentification
Prioritization
Fee$ VMT
$
Q/A
11 • Does the VMT Program reflect the City’s unique development patterns? • The VMT is calculated using the regional travel demand model (Fresno COG ABM). The model includes existing and forecast land use, demographics, housing and employment information throughout Frenso County including city of Fresno which is used to calculate the VMT . The VMT program has been developed using data from the model that is specific to the region as well as City of Fresno.
Q/A
12 • Does the VMT Program reflect the City’s unique development patterns? (cont) • The VMT Program uses locally developed screening criteria to exempt projects from VMT analysis
• 13% VMT threshold vs 15% at state level
• 500 Average Daily trips vs 100 at state level
• The VMT Mitigation Fee is based on projects already in the City’s adopted plans:
• Long and Short Range Transit Plans
• Active Transportation Plan
Q/A
13 • Is the VMT Mitigation Fee a tax?
• The VMT Fee is not a tax because it does not exceed the reasonable cost of providing the public facilities for which it is collected, and because it is not levied for general revenue purposes.
• The VMT Mitigation Fee is an impact fee prepared in compliance with the Mitigation Fee Act. Its express purpose is to defray a portion of the cost of VMT Reducing public facilities and will be imposed proportionately on projects that have a significant VMT impact.
Q/A
14 • Will this fee create a significant financial burden on Fresno consumers? • Currently, VMT mitigation has a significant time and financial cost of preparing an Environmental Impact Report. The VMT mitigation fee would save time and potentially money.
• The cost to consumers is determined by what the market will bear, not specific project costs.
Q/A
15 • Would this VMT Reduction Program make new developments in Fresno financially infeasible, hurting economic growth and job creation? • Only projects subject to CEQA would require VMT analysis • The Program has screening criteria that exempt retail businesses at 50,000 SF or less. Only two building permits have been issued since 2020 for retail buildings that exceed this threshold.
• Employment-generating uses within ½ mile of a high frequency transit route or in low VMT areas are exempt
• The Program includes a VMT calculator which recommends project-specific design features that reduce VMT .
• The Program eliminates the need for an Environmental Impact Report, which costs time and money, and introduces uncertainty.
Outreach
• BPAC, DAC
– Blackstone Avenue
– Sidewalk Gaps
– Marketing
– Transit Routes
• Outreach conducted for
the Long Range Transit
Plan, Active Transit Plan
16 General Plan Consistency
• Urban Form: Pedestrian
and bicycle linkages
• Mobility &
Transportation: Reduce
VMT, multi-modal system
• Resource Conservation:
Reduce GHG Emissions
17 Environmental Impact Report
• All impacts less than
significant or less than
significant with
mitigation except
Transportation
• Transportation impact
TRA-2 Re: VMT is
significant and
unavoidable due to
evolving VMT data and
potential mitigation
delays
18 Environmental Impact Report
• Findings of Overriding
Consideration based on
legal, economic and
environmental benefits
• Certification of the EIR
provides streamlining at
the project level for
VMT impacts.
19 Recommendation
1. Certify Environmental Impact Report SCH. No. 2024091129 a. Adopt Findings of Fact and Statement of Overriding
Considerations
b. Adopt the Mitigation Monitoring and Reporting Program
2. Adopt a Vehicle Miles Traveled Nexus Study, Reduction Program and Capital Improvement Plan
3. Approve Bill to Add Section 12-4.17 to the FMC to establish the Mitigation Fee
4. Adopt the 593rd Amendment to the Master Fee Schedule to add a Vehicle Miles Traveled Mitigation Fee
20 21
End of Presentation