Amended in Assembly June 9, 2014

Amended in Assembly May 23, 2014

Amended in Assembly September 3, 2013

Amended in Assembly July 3, 2013

Amended in Senate April 15, 2013

Senate Bill No. 486

Introduced by Senator DeSaulnier

(Coauthor: Senator Liu)

February 21, 2013

An act to begin insert amend Sections 14526, 14526.5, and 14536 of, to end insert add begin delete Section end delete begin insert Sections end insert 14523.5 begin insert , 14524.3, 14525.7, and 14526.4 end insert to, and to repeal Section 14009 of, the Government Code, relating to transportation.

LEGISLATIVE COUNSEL’S DIGEST

SB 486, as amended, DeSaulnier. Department of Transportation: goals and performance measures.

Existing law provides that the Department of Transportation shall have full possession and control of the state highway system and specifies the duties and responsibilities of the department on various other transportation matters. begin insert Existing law requires the department to prepare the interregional transportation improvement program which, along with the regional transportation improvement programs adopted by regional transportation agencies, becomes part of the state transportation improvement program and identifies most transportation capital improvements to be undertaken over a multiyear period with state and federal funds. Existing law also requires the department to separately prepare the state highway operation and protection program, which identifies capital projects limited to maintenance, safety, and rehabilitation work necessary to preserve and protect the state highway system. end insert Existing law requires the California Transportation Commission to, among other things, begin insert adopt the state transportation improvement program and approve the state highway operation and protection program, and further provides for the commission to end insert allocate transportation capital funds to specific projects begin insert contained in the state transportation improvement program, but not the state highway operation and protection program, which is managed by the department end insert .

This bill would require the commission, on or before January 31, 2015, and every 4 years thereafter, and in consultation with the department, to develop and adopt specific goals for the department to achieve specified priorities relative to the operation of effective transportation systems, the maintenance of the state highway system, and the reduction of greenhouse gas emissions in the department’s activities. The bill would require the commission, in consultation with the department, to identify performance measures in that regard and to include an evaluation of the department’s progress in meeting the goals in the commission’s annual report to the Legislature.

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This bill would also require the commission to establish guidelines, including specified standards, for the department to follow in the development and selection of projects for the interregional transportation improvement program, and would require the commission to adopt the program. The bill would require the department, on or before December 15, 2015, and every 5 years thereafter, to adopt and submit to the commission an interregional transportation strategic plan directed at achieving a high-functioning and balanced interregional transportation system, reflecting specified legislative priorities. The bill would require projects included in the interregional transportation improvement program to be consistent with the interregional transportation strategic plan, and would require the commission to hold public hearings on the program to attempt to reconcile any objections.

end insert begin insert

The bill would also require the commission to establish guidelines, including specified standards, for the department to follow in the development and selection of projects for the state highway operation and protection program. The bill would require preparation of a project study report or major investment study prior to inclusion by the department of a project in the state highway operation and protection program. The bill would specifically authorize the commission to decline to adopt the program if it determines that the program is not sufficiently consistent with the guidelines.

end insert begin insert

Existing law requires the commission to submit an annual report to the Legislature including, among other things, a discussion of major transportation policy issues.

end insert begin insert

This bill would require the annual report to contain a discussion of the department’s project support costs for capital projects.

end insert

Existing law requires the department, by June 30, 1994, to apply for federal funding to be used for conversion of data pertaining to the state highway system from paper storage to intelligent computer information, and to commence implementation of the conversion process within 6 months of receiving federal funding approval.

This bill would repeal these provisions.

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The bill would also make legislative findings and declarations.

end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

The Legislature finds and declares all of the
following:

(a) The state recently contracted with the State Smart
Transportation Initiative (SSTI) to conduct an external assessment
of the Department of Transportation and provide recommendations
for improving the department’s performance.

(b) The SSTI assessment found that the department has not kept
pace with changes in transportation policy and called for reforms
to modernize the department’s mission, strengthen its performance,
and help align the department with the state’s policy goals.

(c) The regional transportation planning process is an inclusive,
exhaustive process that moves from a longer-term vision,
represented by the regional transportation plan, to a short-term
list of specific projects in the regional transportation improvement
program, which implements the long-term vision.

(d) The department, which is responsible for the maintenance
and operation of the state highway system and for the state’s
interregional transportation system, does not currently have in
place a similarly inclusive planning process that moves from vision
to implementation.

(e) Developing a process for the department to follow in
development of the state’s interregional and highway maintenance
and operations programs similar to the regional transportation
planning process can create a framework for the department to
begin to address the flaws identified in the SSTI assessment and
allow the state to catch up with the changes in transportation
policy such that the department can once again be aligned with
the state’s policy goals.

end insert

begin delete SECTION 1. end delete
begin insert SEC. 2. end insert   

Section 14009 of the Government Code is repealed.

begin delete SEC. 2. end delete
begin insert SEC. 3. end insert   

Section 14523.5 is added to the Government Code,
to read:

14523.5.  

(a) No later than January 31, 2015, and every four
years thereafter, the commission, in consultation with the
department, shall develop and adopt specific goals for the
department to achieve each of the following priorities:

(1) The operation of effective transportation systems for moving
people and goods between regions and through the state using, for
example, traffic demand strategies and technology that do not
require the addition of capacity.

(2) The maintenance of the state’s state highway system in a
state of good repair.

(3) The reduction of greenhouse gas emissions to the maximum
extent feasible in all of the department’s activities.

(b) The commission, in consultation with the department, shall
identify performance measures for each of the goals adopted
pursuant to subdivision (a) and shall include an evaluation of the
department’s progress toward meeting these goals in its annual
report to the Legislature pursuant to Section 14535. The department
shall comply with requests from the commission for information
necessary to perform the required evaluation.

begin insert

begin insert SEC. 4. end insert   

Section 14524.3 is added to the Government Code, to
read:

begin insert 14524.3. end insert   

(a) On or before December 15, 2015, and every five
years thereafter, the department shall adopt and submit to the
commission an interregional transportation strategic plan directed
at achieving a high-functioning and balanced interregional
transportation system. The plan shall be action oriented and
pragmatic, considering both the short-term and long-term future,
and shall present clear, concise policy guidance to the department
for managing the state’s transportation system.

(b) The plan shall reflect, in order, the following legislative
priorities:

(1) Maintaining the state’s existing transportation system in a
state of good repair.

(2) Addressing the state’s responsibility of efficient goods
movement through and within the state.

(3) Improving system operations through traffic demand
strategies and technology.

(4) Improving the livability of the state’s transportation system,
and improving access to the system to all users, where appropriate.

(5) Reducing greenhouse gas emissions consistent with the
California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code).

(6) Assisting regions with congestion reduction when
appropriate.

(c) The interregional transportation strategic plan shall be
consistent with the California Transportation Plan required by
Section 65071.

end insert

begin insert

begin insert SEC. 5. end insert   

Section 14525.7 is added to the Government Code, to
read:

begin insert 14525.7. end insert   

(a) The commission shall adopt guidelines for the
department to follow in the development and the selection of
projects for the state’s interregional transportation improvement
program required by Section 14526.

(b) The guidelines shall include, but not be limited to, all of the
following:

(1) Standards for project deliverability.

(2) Standards for identifying projects and project components.

(3) Standards for cost estimating.

(4) Programming methods for cost increases and schedule
changes.

(5) Objective criteria for measuring system performance and
cost-effectiveness of candidate projects.

(c) The guidelines shall, at a minimum, require that, for each
project, the program shall specify the allocation or expenditure
amount and the allocation or expenditure year for each project
component, as necessary.

(d) The guidelines shall be the complete and full statement of
the policy, standards, and criteria that the commission intends to
use in selecting interregional transportation projects to be included
in the state transportation improvement program.

(e) The commission may amend the adopted guidelines after
conducting at least one public hearing. The commission shall make
a reasonable effort to adopt the amended guidelines prior to its
adoption of the fund estimate pursuant to Section 14525. In no
event shall the adopted guidelines be amended, or otherwise
revised, modified, or altered during the period commencing 30
days after the adoption of the fund estimate pursuant to Section
14525 and before the adoption of the state transportation
improvement program pursuant to Section 14529.

end insert

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 14526 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

14526.  

(a) Not later than December 15, 2001, and December
15 of each odd-numbered year thereafter, begin insert based on the guidelines
established pursuant to Section 14525.7, end insert and after consulting with
the transportation planning agencies, county transportation
commissions, and transportation authorities, the department shall
submit to the commission begin insert for adoption end insert its five-year interregional
transportation improvement program consisting of all of the
following:

(1) Projects to improve state highways, pursuant to subdivision
(b) of Section 164 of the Streets and Highways Code.

(2) Projects to improve the intercity passenger rail system.

(3) Projects to improve interregional movement of people,
vehicles, and goods.

begin insert

(b) Projects included in the interregional transportation
improvement program shall be consistent with the state
interregional transportation strategic plan prepared pursuant to
Section 14524.2.

end insert begin delete

(b)

end delete

begin insert (c) end insert  Projects may not be included in the interregional
transportation improvement program without a project study report
or major investment study.

begin delete

(c)

end delete

begin insert (d) end insert  Major projects shall include current costs updated as of
November 1 of the year of submittal and escalated to the
appropriate year, and shall be consistent with, and provide the
information required in, subdivision (b) of Section 14529.

begin delete

(d)

end delete

begin insert (e) end insert  Projects included in the interregional transportation
improvement program shall be consistent with the adopted regional
transportation plan.

begin insert

(f) Prior to adopting the department’s interregional
transportation improvement plan, the commission shall hold not
less than one hearing in northern California and one hearing in
southern California to attempt to reconcile any objections by any
member of the public or other stakeholder to the department’s
plan.

end insert

begin insert

begin insert SEC. 7. end insert   

Section 14526.4 is added to the Government Code, to
read:

begin insert 14526.4. end insert   

(a) The commission shall establish guidelines for the
department to follow in the development and selection of projects
for the state highway operation and protection program required
by Section 14526.5.

(b) The guidelines shall include, but not be limited to, all of the
following:

(1) Standards for project deliverability.

(2) Standards for identifying projects and project components.

(3) Standards for cost estimating.

(4) Programming methods for cost increases and schedule
changes.

(5) Objective criteria for measuring system performance and
cost-effectiveness of candidate projects.

(c) The guidelines shall, at a minimum, require that, for each
project, the state highway operation and protection program shall
specify the allocation or expenditure amount and the allocation
or expenditure year for each project component, as necessary.

(d) The guidelines shall be the complete and full statement of
the policy, standards, and criteria that the commission intends to
use in reviewing and adopting the state highway operation and
protection program.

end insert

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 14526.5 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

14526.5.  

(a)  begin delete The end delete begin insert Based on the guidelines adopted pursuant
to Section 14526.4, the end insert department shall prepare a state highway
operation and protection program for the expenditure of
transportation funds for major capital improvements that are
necessary to preserve and protect the state highway system. Projects
included in the program shall be limited to capital improvements
relative to maintenance, safety, and rehabilitation of state highways
and bridges begin delete which end delete begin insert that end insert do not add a new traffic lane to the system.

(b) The program shall include projects begin delete which end delete begin insert that end insert are expected
to be advertised prior to July 1 of the year following submission
of the program, but which have not yet been funded. The program
shall include those projects for which construction is to begin
within four fiscal years, starting July 1 of the year following the
year the program is submitted.

begin insert

(c) Projects may not be included in the state highway operation
and protection program without a project study report or major
investment study.

end insert begin delete

(c)

end delete

begin insert (d) end insert  The program shall be submitted to the commission not later
than January 31 of each even-numbered year. Prior to submitting
the plan, the department shall make a draft of its proposed program
available to transportation planning agencies for review and
comment and shall include the comments in its submittal to the
commission.

begin delete

(d)

end delete

begin insert (e) end insert  The commission may review the program relative to its
overall adequacy, begin insert consistency with the guidelines adopted pursuant
to Section 14526.4, the end insert level of annual funding needed to
implement the program, and the impact of those expenditures on
the state transportation improvement program. The commission
shall begin delete approve and submit end delete begin insert adopt end insert the program begin insert and submit it end insert to the
Legislature and the Governor not later than April 1 of each
even-numbered year. begin insert The commission may decline to adopt the
program if the commission determines that the program is not
sufficiently consistent with the guidelines established in Section
14526.4. end insert

begin insert (f) end insert  Expenditures for these projects shall not be subject to
Sections 188 and 188.8 of the Streets and Highways Code.

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 14536 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

14536.  

(a) The annual report shall include an explanation and
summary of major policies and decisions adopted by the
commission during the previously completed state and federal
fiscal year, with an explanation of any changes in policy associated
with the performance of its duties and responsibilities over the
past year.

(b) The annual report may also include a discussion of any
significant upcoming transportation issues anticipated to be of
concern to the public and the Legislature.

begin delete

(c) The annual report submitted to the Legislature for the years
2001 to 2008, inclusive, shall include all of the following:

end delete begin delete

(1) A summary and discussion of loans and transfers authorized
pursuant to Sections 14556.7 and 14556.8.

end delete begin delete

(2) A summary and discussion on the cash-flow and project
delivery impact of those loans and transfers.

end delete begin delete

(3) A summary of any guidance provided to the department
pursuant to Section 14556.7.

end delete begin insert

(c) As part of its role described in Section 14520, the
commission’s annual report shall also include a discussion of the
department’s project support costs, including analyses of the
department’s expenditures on project support based on cost
estimates at the following points in time:

end insert begin insert

(1) Original programming date.

end insert begin insert

(2) Upon completion of the environmental review process.

end insert begin insert

(3) Upon completion of final design and when contract is let.

end insert begin insert

(4) Project closeout date.

end insert