Caltrans tightens airspace leasing rules after inspections find violations; new limits on storage and insurance

Caltrans presented its first quarterly airspace program report and outlined a package of policy changes and program enhancements after statewide inspections identified lease violations and potential hazards.

The department manages 596 airspace sites statewide, Caltrans acting Division Chief for Right of Way and Land Surveys Renee Fletcher told commissioners. The agency said it is pausing new leases and renewals while it implements changes intended to reduce fire and structural risk, improve inspections and expedite enforcement.

Key changes and findings - Inspections and holdings: District offices completed 73 inspections in the quarter; 90% passed initial inspection but several failed for minor violations such as weed growth, stored materials and litter. The State Fire Marshal has 33 outstanding failed inspections, for which enforcement actions have been initiated. - Open storage under structures: Caltrans identified 21 open storage sites statewide (15 of them under Caltrans structures). As a result the department said it will not execute new open‑storage leases located over, under or next to highway structures unless permitted cases apply (construction staging or government entities) and it may evaluate existing sites for termination. - Insurance and safety: Caltrans raised insurance requirements for sites under or immediately adjacent to structures from $5 million to $20 million (agencies may combine general liability and umbrella coverage to meet the limit). The department also clarified prohibited materials and reinforced bans on flammable stocks and portable fuel containers. - Program management: Headquarters has increased district oversight, implemented statewide trainings, established an inspection task force to coordinate with the division of maintenance and the State Fire Marshal, and will conduct “quality enhancement” joint reviews of district operations. Caltrans is also tightening tracking of lease expirations and enforcement status.

Shelters and alternative uses - Caltrans staff said airspace can support emergency shelters and other public uses, and officials encouraged local governments to take advantage of available right‑of‑way and excess land for temporary shelter and safe‑parking programs. Agency staff noted statutory limits — for example, a 20‑foot drip‑line restriction for some uses — that can affect site suitability.

Challenges and outlook - Fletcher highlighted several implementation challenges: some lessees cannot obtain the higher insurance limits; utility and bus‑charging uses raise specific safety concerns (electric bus parking requires special review because of lithium‑ion battery risks); and demolition costs for older structures that revert to the department at lease termination remain uncertain. - Caltrans said it will complete a statewide review of parking vs. open storage designations by March 31, 2025, and expects its first round of district quality‑assurance reviews by February 2026.

Ending: Executive Director Tanisha Taylor and commissioners praised staff for the program overhaul and urged local partners to engage: Caltrans said it will continue inspections, pursue enforcement where necessary, and return quarterly reports to the commission.