BILL ANALYSIS                                                                                                                                                                                                    Ó






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: AB 466
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  quirk-silva
                                                         VERSION: 3/14/13
          Analysis by:  Erin Riches                      FISCAL:  yes
          Hearing date:  June 11, 2013



          SUBJECT:

          Congestion Mitigation and Air Quality Improvement (CMAQ) Program

          DESCRIPTION:

          This bill requires the state Department of Transportation  
          (Caltrans) to continue allocating federal CMAQ funds to regions  
          pursuant to a weighted formula that accounts for population and  
          pollution levels.

          ANALYSIS:

          CMAQ helps states meet the requirements of the federal Clean Air  
          Act by providing federal funds for state and local  
          transportation projects that reduce transportation-related air  
          pollution.  This program funds projects to reduce traffic  
          congestion and improve air quality both for areas that do not  
          meet the National Ambient Air Quality Standards for ozone,  
          carbon monoxide, or particulate matter (nonattainment areas),  
          and for former nonattainment areas that are now in compliance  
          (maintenance areas).  

          The U.S. Department of Transportation (DOT) allocates CMAQ funds  
          to states based on a formula that weighs the severity of a  
          state's air quality problems, along with its population,  
          compared to the nationwide total.  States then sub-allocate  
          funds to metropolitan planning organizations and transportation  
          agencies.  CMAQ-eligible projects include transportation control  
          measures such as high-occupancy vehicle lanes, high-occupancy  
          toll lanes, traffic flow improvement programs, and transit  
          improvements.  Projects that do not help reduce vehicle  
          emissions, such as routine maintenance and rehabilitation or  
          projects that add capacity to highways, generally do not qualify  
          for CMAQ funding.  

          Caltrans has customarily allocated CMAQ funds according to the  
          federal statutory formula.  In July 2012, however, Congress  




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          passed and President Obama signed the Moving Ahead for Progress  
          in the 21st Century Act (Public Law 112-41).  This new federal  
          funding authorization, known as MAP-21, changes CMAQ funding to  
          a lump sum allocation, leaving it up to states how to  
          sub-allocate the funds.  It also requires states with areas  
          suffering from high levels of particulate matter (PM) to  
          prioritize projects proven to reduce PM 2.5 emissions in these  
          areas.  (PM 2.5 are fine particles, emitted from motor vehicles,  
          power plants, and other industrial processes, that can cause  
          serious heart and lung problems when inhaled.)  

           This bill  updates references in state statute to reflect the new  
          federal transportation funding authorization act, MAP-21, and  
          requires Caltrans to sub-allocate CMAQ funds pursuant to  
          weighted factors that are virtually identical to those  
          previously specified in federal law, albeit accounting for the  
          new PM 2.5 emphasis.
          COMMENTS:

           1.Purpose  .  The author states that while MAP-21 consolidates and  
            restructures many federal transportation programs, it retains  
            key programs such as CMAQ.  MAP-21 leaves it up to states how  
            to allocate CMAQ funds; this bill provides a policy framework  
            for that distribution to ensure transparency.  By maintaining  
            the longstanding formula distribution, this bill also provides  
            certainty to local transportation agencies. 

           2.MAP-21 implementation  .  MAP-21 authorizes federal  
            transportation funding to states through September 30, 2014.   
            California expects to receive $445 million in CMAQ funds under  
            the new act.  To ensure funding for already-programmed  
            projects, Caltrans and the California Transportation  
            Commission (CTC) took administrative action last fall to  
            maintain status quo funding through the transition period.  In  
            accordance with that action, this bill establishes the funding  
            distribution for CMAQ in statute, as well as updating  
            references to the federal transportation act.  

           3.Is this bill necessary  ?  This bill does not address funding  
            allocations or statutory references for any other federal  
            transportation funding program.  The CTC has already acted to  
            ensure status quo funding for projects and programs impacted  
            by MAP-21, including CMAQ.  It is not entirely clear,  
            therefore, why this bill is needed.

           4.Arguments in opposition  .  The Department of Finance (DOF)  




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            opposes this bill as unnecessary because current statute  
            allows for conformity with any changes required in MAP-21.   
            DOF further argues that this bill conflicts with the Brown  
            Administration's MAP-21 implementation strategy of maintaining  
            current funding levels so that currently programmed projects  
            are not interrupted.  Finally, DOF maintains that the two-year  
            funding authorization of MAP-21 is nearly halfway over.
            
          Assembly Votes:
               Floor:    75-0
               Appr: 17-0
               Trans:    16-0

          POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,                                             June 5,  
          2013.)

               SUPPORT:  Los Angeles County Metropolitan Transportation  
          Authority
                         Orange County Transportation Authority
                         Rural County Representatives of California

               OPPOSED:  Department of Finance