SANDAG Proposes VMT Mitigation Programs

San Diego County is experiencing a dire housing shortage. While there are major contributors, such as restrictive zoning laws, a notable factor is that developments are heavily regulated to protect the environment. Passed in 2013, SB 743 requires local governments to assess housing developments based on vehicle miles traveled (VMT)—essentially the amount of driving a project will add. In San Diego County, VMT mitigation can cost builders up to $2 million per unit, leading to an effective halt on home building. In response, SANDAG and the County are partnering to develop a VMT mitigation program to facilitate housing development while mitigating environmental impacts.

The currently preferred program is a hybrid of three programs: 

• Bank: Jurisdictions that build multimodal facilities can convert the resulting VMT reductions into credits that can be sold to projects to offset a project’s VMT impacts. 

• In-Lieu Fee: Projects that increase VMT pay fees to jurisdictions, who will use those funds to construct multimodal facilities that reduce VMT. 

• Exchange: VMT-reducing mobility projects will be listed in a database, which jurisdictions may then fund to offset VMT.

A concern with this proposal is its ability to effectively mitigate VMT in the exurbs. “Mitigating VMT for more exurban developments is a difficult task, and it remains to be seen whether any of the proposals on the table are realistic” said Colin Parent, CEO and General Counsel of Circulate San Diego–the region’s leading think tank for mobility. “Exurban development is by its very nature far away from other destinations, so there's not much mitigation can do to reduce those residents' desire to drive.” 

Parent points out how mitigation could be effective: “For any policy to work, mitigation funds from exurban projects must contribute to transit and infrastructure in more urban jurisdictions, where it will actually make a difference.”

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Published August 11, 2025