Is 'surface street' specific to southern California?

Solution 1:

Surface Streets Kayte Deioma, Driving in Los Angeles: Los Angeles Driving Vocabulary, about.com

In Los Angeles, the term "surface street" refers to any normal street that is not a freeway or limited access highway.

Wiktionary

A street that is not a freeway and has at-grade intersections with other surface streets.

The Wiktionary definition agrees with the idea of "ordinary city street, that is not a freeway; is at ground level, unlike elevated freeways," while the vocabulary seems to suggest that the term is local to Los Angeles, CA.

However, surface street is a standard term in engineering, including transportation, highway engineering, railways, etc., and is not specific to LA, or even to CA.

Steven Kuhrtz, US EPA Transportation controls, 1974

"… surface street bus lanes in Atlanta, Birmingham, and Baltimore have increased auto speeds more than bus speeds."

Traffic Analysis Toolbox US DoT FHA, 2007
"… a surface street section inserted in a freeway interchange to allow merging of ramp lanes"

Solution 2:

The term "surface street" appears to have originated towards the end of the 19th century in the proposals to build urban railways; in order to distinguish the ground level from underground and elevated systems.

For example, the 1867 report of the "Special commission to ascertain the best means for the transportation of passengers in the city of New York" in 1867 proposes building an underground railway system with a "surface street" above it at ground level.

There are many other references from the late 19th century (from Chicago, New York and other cities), all of which are referring to ground-level roads as "surface street". So to answer the first question, it appears that the term is not localised to Southern California, but is in widespread use elsewhere. As to other localised expressions for the same thing, I do not know.