BILL NUMBER: AB 2630 CHAPTERED 09/22/06 CHAPTER 420 FILED WITH SECRETARY OF STATE SEPTEMBER 22, 2006 APPROVED BY GOVERNOR SEPTEMBER 22, 2006 PASSED THE SENATE AUGUST 23, 2006 PASSED THE ASSEMBLY MAY 30, 2006 AMENDED IN ASSEMBLY APRIL 26, 2006 AMENDED IN ASSEMBLY MARCH 27, 2006 INTRODUCED BY Assembly Member Benoit FEBRUARY 24, 2006 An act to amend Section 2454 of the Streets and Highways Code, relating to highway funds. LEGISLATIVE COUNSEL'S DIGEST AB 2630, Benoit Grade separation project funding. Existing law requires the Public Utilities Commission to adopt a priority list for railroad-highway grade separation projects and requires the California Transportation Commission to allocate available funding to projects pursuant to that priority list. Existing law generally limits to $5,000,000 an allocation to a single project; except that if the project meets certain criteria it may receive an allocation up to $20,000,000. Existing law prohibits an agency that receives an allocation pursuant to that exception from receiving an allocation for another project pursuant to that exception for a period of 10 years. This bill would provide that an agency that receives an allocation pursuant to that exception may be eligible for an allocation for another project if the Department of Transportation determines that funds are available for allocation. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 2454 of the Streets and Highways Code is amended to read: 2454. Allocations made pursuant to Section 2453 shall be made on the basis of the following: (a) An allocation of 80 percent of the estimated cost of the project shall be made; except that whenever contributions from other sources exceed 20 percent of the estimated cost, the allocation shall be reduced by the amount in excess of 20 percent of the estimated cost. (b) An allocation of 50 percent of the estimated cost of the project shall be made for a proposed crossing. (c) No allocation shall be made in excess of 50 percent of the estimated cost of the project unless the grade crossing to be eliminated has been in existence for at least 10 years prior to the date of allocation. (d) On projects that eliminate an existing crossing, or alter or reconstruct an existing grade separation, no allocation shall be made unless the railroad agrees to contribute 10 percent of the cost of the project. (e) Where a project does not include a grade separation, but eliminates existing grade crossing or crossings, the allocation shall not exceed the estimated allocation that would have been made for the grade separation which is no longer needed because of the elimination of the grade crossing by the project and which is indicated on the priority list to be urgently in need of grade separation. (f) Where the project includes the separation of a highway and a railroad passenger service operated by a city or county, the operating agency shall contribute 20 percent of the cost of the project. The priority listing for these projects shall be in accordance with criteria established for railroad passenger service by the Public Utilities Commission. (g) (1) Notwithstanding subdivisions (a) to (f), inclusive, the total of these allocations for a single project shall not exceed five million dollars ($5,000,000) without specific legislative authorization, except that the amount for a single project may be increased to either (1) an amount that includes the federal construction cost index increase each year since 1976, or (2) an amount that does not exceed one-third of the total funds appropriated for grade separation projects for the year of allocation, whichever amount is less, as determined each year by the Public Utilities Commission. (2) Notwithstanding paragraph (1), the California Transportation Commission may allocate up to fifteen million dollars ($15,000,000) to a single project if that project is the highest ranking project on the priority list established by the Public Utilities Commission pursuant to Section 2452. (h) Notwithstanding subdivisions (a) to (g), inclusive, a single project in excess of five million dollars ($5,000,000), but not exceeding twenty million dollars ($20,000,000), shall be considered without specific legislative authority, if the project (1) is included in the Public Utilities Commission's priority list of projects scheduled to be funded, (2) eliminates the need for future related grade separation projects, (3) provides projected cost savings of at least 50 percent to the state or local jurisdiction, or both of them, by eliminating the need for future projects, and (4) alleviates traffic and safety problems or provides improved rail service not otherwise possible. Projects approved pursuant to this subdivision shall be funded over a multiyear period, not to exceed five years, and the allocation for any one of those years shall not exceed the amount prescribed by subdivision (g) for a single project. Not more than one-half of the total allocation available in any one fiscal year for grade separation projects may be used for the purposes of this subdivision. An agency that has received an allocation for a project approved pursuant to this subdivision shall not be eligible for an allocation for another project under this subdivision for a period of 10 years from the date of approval of that project. However, if funds are available for allocation, as determined by the Department of Transportation, an agency may be eligible for an allocation for another project. (i) Notwithstanding any of the above provisions of this section or any other provision of law, when the state or local agency uses funds derived from federal sources in financing its share of project costs, the railroad contribution, where required by federal law or regulation, shall be computed pursuant to federal law. However, the allocation made pursuant to this chapter shall be computed as though that matching contribution was derived from nonfederal sources and shall be computed as though the railroad had made its contribution pursuant to state law rather than pursuant to federal law. Where the contribution of the railroad is computed according to federal law or regulation because of the use of federal funds in the allocation for a project, the allocation shall be increased by the amount the share of the railroad is reduced below 10 percent of the estimated cost of the project.