TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David Chantarangsu, AICP, Development Services Director
PREPARED BY: Carl Stiehl, City Planner
SUBJECT:
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Approval to Participate in the Vehicle Miles Traveled Mitigation Exchange Program and Authorization to Enter into a Credit Generator Participation Agreement with the Western Riverside Council of Governments
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ABSTRACT
The Western Riverside Council of Governments (WRCOG) has established a voluntary Vehicle Miles Traveled (VMT) Mitigation Exchange Program to assist the City and projects both inside and outside the City with VMT traffic-related impact mitigation regionally. Participation in the program is voluntary and at the City’s discretion on a case-by-case basis. Joining the program does not obligate the City to any specific projects or mitigation measures until the City chooses to use the program for a project.
RECOMMENDATION
recommendation
Approve the City’s participation in the voluntary Western Riverside Council of Governments (WRCOG) Vehicle Miles Traveled (VMT) Mitigation Exchange Program;
Authorize the City Manager or designee to enter into a Credit Generator Participation Agreement with the WRCOG; and
Direct staff to coordinate with WRCOG to add VMT-reducing improvement projects at the City’s discretion into the voluntary program to address development projects with transportation related VMT impacts.
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PRIOR ACTION/VOTE
None.
CITY COUNCIL GOAL
Plan, program and create infrastructure development.
DISCUSSION
Background
In 2013, Senate Bill (SB) 743 was signed into law, which requires local agencies implementing the California Environmental Quality Act (CEQA) Guidelines to establish a new metric for determining the significance of transportation impacts.
In 2018, the CEQA guidelines were updated, requiring all local agencies to adopt VMT as the new measure to evaluate transportation impacts under CEQA, with an effective implementation date of July 1, 2020.
The City’s Focused General Plan Update, approved in July 2020, adopted VMT as the new transportation metric and established modified Traffic Impact Analysis (TIA) Guidelines in compliance with the State mandate. The initial VMT adoption established VMT thresholds and screening criteria. The TIA guidelines were consistent with the regional recommendations established by WRCOG. As a result of converting traffic analysis criteria to VMT in recent years, many jurisdictions began considering options for projects to mitigate potential VMT impacts.
VMT Mitigation Program
A VMT Mitigation Program can provide a potential solution for projects to mitigate their transportation impacts under CEQA and would also provide projects with an opportunity to avoid processing more costly environmental documents, streamline the development process, provide certainty to developers, and maybe be used as a mitigation resource by other agencies. A VMT Mitigation Program can also serve as a potential funding source for cities or transit agencies for non-vehicular improvements, such as active transportation and transit projects. The City is not mandated to have a Mitigation Program at this time, however it can choose to set up it’s own Mitigation Program, which would take significant time and cost to put together, and the City may also choose to participate in other potential VMT programs that may be available on the local or regional level.
Staff at WRCOG received direction from the Executive Committee to evaluate options for mitigating VMT impacts from new development. WRCOG commenced an effort to develop a potential program in partnership with its member agencies (including the City of Murrieta) and key regional stakeholders. In January 2024, the Deputy Executive Director of WRCOG presented to the Board information on VMT and the possible mitigation program. After numerous meetings led by WRCOG, the voluntary VMT Mitigation Program (Program) was developed. The Riverside Transit Agency (RTA), Riverside County Transportation Commission (RCTC), and WRCOG worked together to develop a program manual that will be used to implement the VMT Exchange Mitigation Program. The Program Manual is included in Attachment 2, and a Program Fact Sheet and FAQ are included in Attachment 3.
Program Logistics
WRCOG will serve as the Program Administrator and central point of coordination for program participants, including regional agencies, member jurisdictions (such as the City), and other stakeholders, as appropriate. Through the voluntary Program, participants who need to offset significant VMT impacts will be able to purchase VMT credits generated by participants with VMT credit-generating projects, such as a project in the City of Murrieta. As a result, credit-using projects will not be delayed due to an inability to offset VMT impacts, and credit-generating projects may be expedited due to access to funding. A general flow chart for the WRCOG VMT Exchange Program is included in the program manual (Attachment 2). The City retains the authority to determine which projects, if any, in the City may qualify as a potential project.
On May 5, 2025, the Program was approved by WRCOG’s Executive Committee. Staff is requesting approval for the City to participate in the Program as a “credit generator.” As a credit generator, the City can submit credit-generating projects to the Program for potential funding. Generally, “credit-generating projects” are projects that would assist with reduction of vehicular trips (vehicle miles traveled). Projects examples include but are not limited to:
• Pedestrian network improvements, such as sidewalks and trails;
• Bike facility construction or improvement, such as bike lanes;
• Transit-supportive roadway treatments;
• Transit access, safety, and comfort improvements;
• Property acquisition for conservation purposes; and
• Gap financing for affordable infill housing development.
Through the Program, the City may obtain additional funding for operational and capital credit-generating projects. If approved, credit-generating projects may be submitted to WRCOG for inclusion in the Program at the City’s discretion. Participating in the program and implementing credit-generating projects will advance development and benefit the community. WRCOG, as the Program Administrator, will charge an administration fee of four (4) percent to administer the regional program. WRCOG is responsible for preparing an annual report detailing the Program's status and considering any amendments. Some agencies have already executed agreements to participate in the Program, including the Riverside Transit Agency (RTA) and the City of Riverside.
Program Rollout
WRCOG hosted two (2) comprehensive community webinars for all regional agencies, CEQA practitioners, and developers. The two (2) webinars, held on September 18, 2025, and September 24, 2025, provided an opportunity to learn more about the Program’s benefits, eligibility, administration, and monitoring. The primary benefit to the City for participation in the regional Program is ease of administration and less impact on staff capacity. If the City participates in the regional program, WRCOG will handle the complex tracking and reporting, which provides economies of scale and simplifies the process for individual agencies. Additionally, participation in a regional program also opens the possibility to regionally-oriented credit-generating projects; VMT reduction is most effective when addressed regionally.
During the land development entitlement process, the developer must evaluate its proposed project for transportation impacts (VMT assessment). If the proposed development has a VMT impact, then the project must mitigate its transportation impacts. Participating in the WRCOG VMT Mitigation Exchange Program is a new option for development projects to utilize in the City.
A developer may choose any available VMT mitigation option (or any combination thereof) when working with the City to analyze a project. The establishment of the regional WRCOG VMT Mitigation Exchange Program functions as a viable option for many potential future projects. The City is pleased to help facilitate the WRCOG Mitigation Exchange Program as an additional means to accelerate the development planning process and provide certainty to incoming developers that viable, cost-effective mitigation is available in Murrieta. As more cities join the voluntary program, more options for regional VMT mitigation will become available for projects. Joining the Program does not preclude the City from other forms of VMT mitigation. The City still retains the ability to create it’s own local Mitigation Program in the future.
FISCAL IMPACT
There is no fiscal impact to the City associated with the voluntary WRCOG VMT Mitigation Exchange Program.
ATTACHMENTS
ATT 1 - Voluntary VMT Exchange Program Participation Agreement
ATT 2 - Regional VMT Mitigation Program Implementation Manual
ATT 3 - VMT Program Fact Sheet and FAQ