BILL ANALYSIS Ó SB 99 Page 1 Date of Hearing: August 29, 2013 ASSEMBLY COMMITTEE ON BUDGET Nancy Skinner, Chair SB 99 ( Budget and Fiscal Review Committee) - As Amended: August 27, 2013 SENATE VOTE : Vote not relevant SUBJECT : Transportation SUMMARY : Creates the "Active Transportation Program" which would distribute funding for human-powered transportation projects and programs. Specifically, this bill : 1) Defines the goals of the Active Transportation Program as: a) Increasing the proportion of trips accomplished by biking and walking; b) Increasing safety and mobility for non-motorized users; c) Advancing active transportation efforts of regional agencies to achieve the greenhouse gas reduction goals as established pursuant to SB 375 (Chapter 728, Statues 2008); d) Enhancing Public Health, including the reduction of childhood obesity through the use of program funding, including the use of Safe Routes to Schools programs; e) Ensuring that disadvantaged communities fully share in the benefit of the program; and, f) Providing a broad spectrum of projects to benefit many types of active transportation users. 2) Articulates funding for the Active Transportation Program by: a) Specifying the program is funded with all federal Transportation Alternative Program funding, except funds for recreational trails, $21 million of federal Highway Safety Improvement funds, and State Highway Account funds; SB 99 Page 2 b) Allocating forty percent of the funding to metropolitan planning organizations in urban areas with populations above 200,000 in proportion to their relative share of populations c) Allocating 10% of funding for small urban and rural regions with populations below 200,000; and, d) Allocating half the funding to the California Transportation Commission to program for projects on a statewide basis, subject to guidelines. 3) Requires the California Transportation Commission to develop guidelines and project selection criteria based upon the goals of the program by: a) Convening a working group of stakeholders to develop the guidelines; b) Requiring a minimum of 25% of overall Active Transportation Program funding benefit disadvantaged communities, as defined in the guidelines; c) Specifying that the guidelines must be consistent with the goals of the Active Transportation Program. d) Providing a list of eligible project types and project selection criteria that must be incorporated in the guidelines. 4) Requires reporting to the Legislature on the guidelines adopted by CTC and the status of the Active Transportation program. 5) States Legislative intent that the Environmental Enhancement and Mitigation Program fund receive $7 million per year. 6) Consolidates the Bicycle Transportation Account and the Bikeway Account with the State Highway Account on July 1, 2014. SB 99 Page 3 7) Makes inoperative on July 1, 2014, certain existing statutory provisions relating to the "Safe Routes to Schools" program that contradict language in Active Transportation Program. 8) Contains the reappropriation of $10 million from the Environmental Enhancement and Mitigation Program Fund to the Secretary of the Natural Resources Agency for grants awarded by the Secretary to support local environmental enhancement and mitigation programs. FISCAL EFFECT : This bill allocates federal and state transportation funding already contained within the 2013-14 budget and will not require additional resources or costs to implement. COMMENTS : This budget trailer bill makes statutory changes necessary to implement the Active Transportation Program, which changes the way the State allocates funds for various human-powered transportation activities and programs. The Administration proposed this new program in the January 2013 budget proposal, but due to the complex nature of the programs, and the scope of the changes proposed, the Legislature chose to defer action on this proposal when adopting the June 15th budget package and instead froze funds for these purposes and inserted intent language that the program would be developed before the end of the 2014 Legislative Session. The new Active Transportation Program will divide the $129.5 million for active transportation projects between the State and Regions subject to guidelines that will be adopted by the California Transportation Commission. This replaces the current system of small-dedicated grant programs, which fund programs like Safe Routes to Schools, bicycle programs, and recreational trails. The intent of combining this funding is to improve the flexibility of these funds and reduce the administrative burden of having several small independent grant programs. The Active Transportation Program, as articulated in this bill and in budget bill provisions contained in SB 95/AB 101 differs from the Administration's initial proposal in several areas. These changes reflect compromises reached with various stakeholders and mirror concerns raised about the proposal in budget hearings. Among these changes: SB 99 Page 4 Funding for the Environmental Enhancement and Mitigation Program continues to remain a stand-alone programs administered by the Natural Resource Agency instead of being consolidated in the Active Transportation Program. The Safe Routes to Schools program is guaranteed at least $24 million of funding from the Statewide Active Transportation Program funds for three years. Of this amount, at least $7.2 million is available for non-infrastructure program needs including the continuation of technical assistance by the State. In the original proposal, the Safe Routes to Schools program had no funding minimum. This proposal includes a requirement that 25% of all program funds benefit disadvantaged communities, an addition to the January proposal. The State will not exercise its option to opt out of using federal funds transportation funds for recreational trails, which was initially part of the administration's proposal. In addition, the Department of Park and Recreation will retain $3.4 million of federal funds for recreational trails. REGISTERED SUPPORT / OPPOSITION : Support None on File. Opposition None on File. Analysis Prepared by : Christian Griffith / BUDGET / (916) 319-2099