ALI-ABA Course of Study Land Use Institute: Planning, Regulation, Litigation, Eminent Domain, and Compensation

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1 109 ALI-ABA Course of Study Land Use Institute: Planning, Regulation, Litigation, Eminent Domain, and Compensation Cosponsored by the Center for Urban Redevelopment Education Florida Atlantic University Fort Lauderdale, Florida August 26-29, 2009 San Diego, California Regional Growth Management and Sustainable Case Study Materials: Case Study Number 1: Sacramento Bio-Fuel Facility, Case Study Number 2: Barstow New Town, California By Robert H. Freilich Freilich & Popowitz, LLP Los Angeles, California

2 Introduction Smart Growth State Planning Priorities California Strategic Growth Plan Southern California Association of Governments (SCAG) Regional Growth Management Strategy Sacramento Region Blueprint City of Sacramento Environmental Protection Regional Environmental Protection Policies City of Sacramento Climate Change Policies Air Quality Impacts Energy Conservation State & Federal Alternative Fuel Regulations State Regulations Federal Regulations Required ethanol production to meet Federal standards Required ethanol production to meet State standards SCAG Regional Comprehensive Plan Energy Policy State of California Strategic Plan Infrastructure Efficiency Part of an Ongoing State Planning Process Regional Infrastructure Efficiency Efficiency of Primafuel Location Fuel Distribution Infrastructure Sustainability City of Sacramento Sustainability Agenda Sustainable Design of the Primafuel Facility.. 26

3 Introduction A new analysis of America s ethanol industry, conducted by the Argonne National Laboratory, shows dramatic efficiency gains in ethanol production have been made in a short period of time. 1 Ethanol facilities are using less energy and water than just five years ago while producing more ethanol. As the world s demand for liquid motor fuels increases, it is imperative that we diversify away from petroleum as the sole source for these fuels, according to Renewable Fuels Association President Bob Dinneen. Biofuels, like ethanol, offer nations around the globe an opportunity to begin the long and difficult process of diversifying the world s energy portfolio. 2 It is this Report's conclusion that the Primafuel Biodiesel Manufacturing and Liquid Bulk Storage Terminal in West Sacramento ( Biodiesel Terminal ) meets and enhances state, regional and local growth management goals, objectives, policies and strategies, and strongly recommends that the Biodiesel Terminal be approved. 1 May Wu, Analysis of the Efficiency of the U.S. Ethanol Industry, (Center for Transportation Research, Argonne National Laboratory, 2008). See also Ethanol Production Impacts Transportation System (National Association of Development Organizations, June 2007). 2

4 Smart Growth The Biodiesel Terminal Furthers Smart Growth Policies Embodied in State, Regional and Local Land Use Plans. In California (and nationally) "sprawl" refers to unplanned, single use, auto dependent development built without regard to availability of infrastructure the need for which is generated by new growth. "Smart Growth" is the antithesis of sprawl. It channels growth either into (i) compact and sustainable development patterns within regional growth boundaries already served with infrastructure; or (ii) within communities with appropriate densities, mixed uses, affordable housing, sustainable walkable environments and adequate public facilities. The Biodiesel Terminal will encourage Smart Growth; it is the antithesis of leap-frog development. It is part of the Port of Sacramento and connected to other regions by high-capacity road and rail infrastructure, and is an important mixed- use regional center with complete infrastructure systems. Local land use policies support smart growth, energy conservation and sustainability, as identified in Sacramento s General Plan and development regulations. As stated above, Smart Growth 3 is at the forefront of land use policy for all of California and in major metropolitan areas and coastal urban regions throughout the nation. Key principles 4 of Smart Growth are summarized below: Develop a range of housing opportunities and choices through density and compactness Establish walkable neighborhoods to reduce the number and length of trips Foster distinctive, attractive places with a strong sense of community Utilize General and Specific Plans, goals, objectives, policies and strategies 3 Douglas R. Porter, et al, Making Smart Growth Work (June 2002); F. Kaid Benfield, et al, Solving Sprawl: Models of Smart Growth in Communities Across America (October 2001); John R. Nolon, Well Grounded: Using Local Land Use Authority to Achieve Smart Growth by (July 2001); Terry S. Szold & Armando Carbonell, Smart Growth: Form and Consequences (Lincoln Institute of Land Policy, June 2002); Jane S. Shaw & Ronald D. Utt. Ed., A Guide to Smart Growth: Shattering Myths, Providing Solutions (Property and Environment Research Center [PERC] 2000); David O Neill, Smart Growth Took Kit: Community Profiles and Case Studies to Advance Smart Growth Practices (Urban Land Institute 2000); Urban Land Institute, ULI on the Future: Smart Growth-Economy, Community (October 1998); Robert H. Freilich, From Sprawl To Smart Growth: Successful Legal, Planning and Environmental Systems (ABA, 1999); Irving Schiffman, Alternative Techniques for Managing Smart Growth (2 nd Edition 1999); Institute of Transportation Engineers, Smart Growth: Transportation Guidelines (2003); Leora Waldner & Jerry Weitz, Smart Growth Audits (American Planning Association, Planning Advisory Service Report No. 512, 2003); International City Management Association, Getting to Smart Growth: 100 Policies for Implementation (2002); International City Management Association, Getting to Smart Growth II: 100 More Policies for Implementation (2003). 4 About Smart Growth, Smart Growth Network, http/ 11/3/03.

5 113 Mix land uses to create jobs-housing balance reducing transportation congestion and improving air quality Preserve open space, farmland, natural resources and critical environmentally sensitive lands Provide a variety of transportation demand management choices and techniques Strengthen and direct development towards existing communities Utilize existing infrastructure capacity before extending new capacity Some initial criteria to consider when siting industrial and energy-related uses include access, infrastructure, compatibility with surrounding uses and environmental impacts. From a Smart Growth perspective, the siting of an alternative energy production and distribution land use should consider: Location in relation to future employees and the commuting alternatives for those employees Efficient use of existing infrastructure and public investment Creation of a jobs/housing balance Minimization of time and cost associated with bringing the product to market Minimization of conflicts with surrounding land uses Opportunities for infill development / redevelopment in lieu of greenfield development The Primafuel facility, sited in an existing industrial location to minimize potential land use conflicts, will maximize the use of existing infrastructure and services (such as fire, police and other emergency services), and take advantage of the significant public investment that has occurred at the Port of Sacramento. Its close-in location also maximizes opportunities for employees to commute to work using a variety of methods, potentially including carpooling and use of public transit. The nearness of the facility to the rail lines that carry gasoline to be mixed with ethanol and bio-fuel products will greatly reduce Vehicle Miles Traveled (VMT) in the production phases, and its urban center location is near to the gas station facilities that will distribute the product to individual consumers. 2.1 State Planning Priorities The Strategic Growth Plan's policies are echoed in the AB 857 legislation adopted in 2002 and the high speed rail statute. AB 857's polices promote infill development and equity, improving existing infrastructure that supports infill development, steering development to areas that are presently served by transit, streets, water, sewer, and other essential services, protecting environmental and agricultural resources, and encouraging efficient development patterns by ensuring that any infrastructure associated with development, other than infill development, supports new development. The highspeed rail statute expressly provides that "the high-speed train system shall be planned and constructed in a manner that minimizes urban sprawl and impacts on the natural environment." AB 857, adopted on September 28, 2002, establishes state planning priorities for growth and development. These policies are used to select infrastructure and to guide state expenditures as set forth in the comprehensive State Environmental Goals and Policy Report. There is no