THE first sweeping effort by the state to have major impact on local planning decisions in a third of a century seems about to be enacted into law. The bill which has passed both houses of the Legislature and awaits Gov. Schwarzenegger's signature would take away state and federal funds for roads, bridges, affordable housing assistance and the like unless local cities confine growth to close-in high-density transit-oriented zones.

The object is to reduce air pollution caused primarily by autos commuting from sprawled-out suburbs. The theory is that intensifying growth near transit will cut miles driven to work and back. The coalition bringing this forth is the somewhat strange pairing of environmental groups with the homebuilders. Spokesman for the 25 largest homebuilders said: "For the first time California will plan for housing needs, transportation needs and climate change needs all at the same time."

The majority of Milpitas City Council members have already signaled to the homebuilders that they are on board with the basic concepts. The campaign contributions to the council members running for office again indicate a great level of satisfaction with the kind of job the council is doing.

The current thrust at city hall for the Transit Area Plan and the Midtown Plan both express willingness to let the number of homes per acre rise dramatically. Pinching in all available space normally left for schools and parks, allows for that many more (and higher profit)

The grumbling unhappiness expressed by local residents about the long-term effect of packing so many stacked apartment houses in what were once low rise single family home neighborhoods has not blunted the drive for this kind of development.

State Sen. Darrell Steinberg, who is due to take over as the upper house's majority leader after the November election, has authored the bill and has long favored measures to cut sprawl. The sub-prime loan crisis and the enormous rise in gasoline costs may do a lot more to curtail sprawl than the new law.

Environmental groups have long fought all of the various sources of heat-trapping emissions and are happy to buy in to the new law. Hidden in some of the verbiage however are relaxations of the California Environmental Quality Act which will make it harder for citizens groups to sue developers. But then developers were among this measure's authors.

The main mechanism that is designed to meet the air quality goals is a complicated system which requires all cities to submit their compliance plans to one of the 17 regional planning agencies in the state. The plans are then tested and those failing won't get permits by the regional body for road and bridge money, housing assistance and conformity to approved land-use zoning plans.

California is the recipient of an annual $15 to $20 billion in grants from all levels of government. These would be held hostage if cities fail to live up to approved plans.