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In the early 1990s, Oregon was one of the first to adopt statewide administrative rules requiring transportation planning based on roads sized to accommodate vehicles during the height of demand 鈥� typically the pm peak hour. Although the rules contemplated planning for alternative transportation, the focus was on single-occupancy-vehicle congestion during the business-hour commute. Couple that with minimum parking requirements that were based on, for example, square feet in a grocery store or the number of seats in a theater 鈥� with little attention to peak times of usage or shared parking opportunities. The result is dispersed uses surrounded by parking that discourages walking, cycling and investment in public transportation. Residential, off-street parking mandates not only separates homes from supporting commercial uses but also significantly increases the cost of housing. A variety of sources have estimated that the cost of requiring off-street parking to multifamily housing adds $20,000 to $60,000 per unit.

In response to Oregon falling further and further behind in achieving greenhouse gas emission reduction targets set by the Oregon Legislature in 2007, Gov. Kate Brown issued Executive Order 20-04 mandating that all agencies, including the Department of Land Conservation and Development (DLCD) and the Oregon Department of Transportation (ODOT) adopt rules directing local plans to meet these goals. The resulting Climate Friendly and Equitable Communities (CFEC) rules imposed new planning obligations that, despite applying statewide, are primarily directed at the Portland-metro area and Oregon’s other seven metropolitan areas, including 52 of its most populous cities.

The obligations get complicated quickly but the one that is easiest to understand and will likely see immediate impact (and perhaps greatest immediate consternation) is that local governments may no longer require off-street parking in transit-serving areas or for certain uses. As of Jan. 1, 2023, metropolitan governments are prohibited from applying any regulations that impose minimum off-street parking mandates within three-quarters of a mile of a rail transit stop or within half a mile of 鈥渢ransit corridors.鈥� The definition of 鈥渢ransit corridor鈥� can change based on subsequent transportation planning, but for purposes of the immediate deadline, it includes bus service with a scheduled frequency of at least four times an hour during peak service.

Portland long ago eliminated off-street parking minimums within the urban core, much of which is served by MAX light rail and streetcar lines, so the new rules will not have much impact there. However, TriMet offers peak-hour bus service more than once every 15 minutes snaking through most Metro-area suburban areas, so the rules will likely have a significant impact for new development whether it is commercial, industrial, single-family or multifamily. Further, local governments are prohibited from requiring off-street parking for special uses such as residential units smaller than 750 square feet, group homes, affordable housing, shelters, and day care facilities. These rules do not preclude development from electing to provide off-street parking subject to any otherwise applicable maximum limit regulations.

Although there may be some flexibility in timing where appropriate progress is made, by June 2023, affected cities must either repeal all parking mandates within their boundaries or adopt a package of parking reform options including, for example, charging for all off-street parking separate from rent (even for commercial and industrial uses), imposing a tax on parking revenue, and adopting parking maximums. By Sept. 30, 2023, cities with populations exceeding 100,000 that elect not to remove parking mandates must charge on-street parking prices equivalent to at least 50 cents per day per spot for 5 percent of the total on-street parking supply, with an increase to 10 percent of the supply by Sept. 30, 2025.

With respect to reviewing applications for new development, by March 31, 2023, all cities must require that at least 40 percent of parking spaces in new multifamily or multiuse developments have conduits to serve electric vehicle charging. As of June 30, 2025, all transportation modeling accomplished for development review must show that the project will not increase vehicle miles traveled (VMT). This last standard may prove challenging and may require a whole new evaluation framework for developers and public and private transportation engineers who up to this point are focused on mitigated impacts from vehicles rather than not having them.

What might be of greater interest to planning policy wonks is that these rules require local governments to study and identify areas suitable for designation as Climate Friendly Areas (CFAs). The rules provide that by the end of 2023, all larger non-Portland metropolitan cities such as Eugene/Springfield, Bend, Salem/Keizer/Albany, Corvallis/Philomath, Grants Pass/Medford/Ashland must submit to the DLCD a CFA study and follow up with implementing CFA plan policies, zoning designations and development standards. CFAs must be sized, either together or separately, to accommodate at least 30 percent of the total identified number of housing units necessary to meet all current and future housing needs.

This feeds into the housing needs analysis obligations imposed by HB 2001 from a few years ago. Only lands with high levels of alternative transportation and in proximity to urban centers may qualify. In addition, these studies must include a Housing Production Strategy Report explaining how equitable housing objectives will be achieved, including how the city is affirmatively furthering fair housing opportunities for communities of color, low-income communities, people with disabilities, and other state- and federal-protected classes as well as addressing homelessness, affordably homeownership, displacement and gentrification. The DLCD is to evaluate the accuracy and sufficiency of each report against a series of review criteria and either approve or remand the report for further study. Implementing CFA zones and development code standards, including prioritization of public buildings, open spaces, as well as block length maximums, must be adopted within one year thereafter.

On the strictly transportation planning side, the rules mandate transportation system plan (TSP) major amendments and detailed transportation modeling on a schedule for local government compliance. Portland Metro and Salem/Keizer/Albany initial study efforts must be accomplished no later than May 31, 2024. The rules require authorizing greater development in transit corridors and downtowns, prioritizing multimodal performance measures (as opposed to focusing solely on capacity enhancements for vehicles), and prioritizing public investments accordingly. Again, all transportation modeling may not increase VMT per capita. Given increases in background traffic, particularly pass-through traffic which local governments independently cannot control, the framework for this modeling will take additional work.

Although the DLCD and ODOT have committed to assisting local governments in these efforts, the existing legislative funding commitment extends only to cover the project deadlines within this biennium. The DLCD received $768,000 from the Legislature to be used for equitable engagement and scenario planning for potential CFA area. The city of Springfield has estimated its planning costs will far exceed its proportional share of this appropriation. Although Minneapolis and San Francisco have adopted regulations prohibiting off-street parking requirements, Oregon is the first state to attempt to force cities into a more urban, dense, multimodal model that includes all larger cities. The success of this effort will hinge on the Legislature’s commitment to fund local government efforts and the public’s willingness to embrace transforming Oregon into a future that prioritizes fighting climate change over accommodating cars.

Edward Sullivan is a retired practitioner of land use and municipal law with more than 50 years of experience. Contact him at [email protected].

Carrie Richter is an attorney specializing in land use and municipal law at Bateman Seidel. Contact her at 503-972-9903 or [email protected].

The opinions, beliefs and viewpoints expressed in the preceding commentary are those of the authors and do not necessarily reflect the opinions, beliefs and viewpoints of the Daily Journal of Commerce or its editors. Neither of the authors nor the 91视频 guarantees the accuracy or completeness of any information published herein.