A California traffic jam
A California traffic jam - 
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Renita Jablonski: California has just passed an innovative anti-sprawl policy. For the first time, state and federal transportation funds will be doled out based on how well regional authorities are curbing car use in their area. Rachel Dornhelm reports.

Rachel Dornhelm: The bill would turn California's planning process on its head. Currently, developers bring their ideas for new construction to regional authorities for approval. The bill envisions city and county planners will create regional growth plans and shop them to developers with fast track approval. Ed Manning is a lobbyist for major California builders.

Ed Manning: The direct economic benefit is trying to lessen the amount of time it takes to get a project permitted and reviewed.

Meanwhile, cities that encourage in-fill and growth near public transit will be rewarded in transportation funding. David Goldberg is with Smart Growth America.

David Goldberg: It's a way to ensure that future economic growth can actually happen because the existing model, the car-dependent model is starting to unravel.

Goldberg says other states, including Washington, Massachusetts and New Jersey are considering a similar approach to stop sprawl.

I'm Rachel Dornhelm for Marketplace.