Amended in Senate March 27, 2014

Senate Bill No. 1228

Introduced by Senator Hueso

February 20, 2014

An act to begin delete amend Section 63021.5 of the Government Code, relating to the Infrastructure and Economic Development Bank. end delete begin insert add Chapter 4.8 (commencing with Section 2192) to Division 3 of the Streets and Highways Code, relating to transportation. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 1228, as amended, Hueso. begin delete Infrastructure and Economic Development Bank. end delete begin insert Trade Corridors Improvement Fund. end insert

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Existing law, the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006, approved by the voters as Proposition 1B at the November 7, 2006, statewide general election, provides for transfer of $2 billion of bond proceeds to the Trade Corridors Improvement Fund, created by the bond act, for infrastructure improvements along federally designated Trade Corridors of National Significance, to be allocated by the California Transportation Commission to eligible projects, as specified.

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This bill would continue the Trade Corridors Improvement Fund in existence for the purpose of receipt and expenditure of revenues from sources other than the bond act. The bill would provide for allocation of these revenues, upon appropriation, by the California Transportation Commission for largely similar purposes as the bond act funds, but would specifically reference, as eligible projects, infrastructure improvements that benefit the state’s land ports of entry. In that regard, the bill would also omit references to infrastructure improvements relating to goods movement to and from airports. The bill, to the extent funds are transferred to the Trade Corridors Improvement Fund from the Greenhouse Gas Reduction Fund, would require projects funded with those funds to demonstrate how they will reduce greenhouse gas emissions consistent with the goals and objectives of the Greenhouse Gas Reduction Fund.

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Existing law creates the Infrastructure and Economic Development Bank within the Governor’s Office of Business and Economic Development. Existing law requires the bank to be governed, and its corporate power exercised, by a board of directors, as specified.

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This bill would make technical, nonsubstantive changes to this law.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

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

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begin insert SECTION 1. end insert   

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begin insert The Legislature finds and declares that
international trade in California is an increasingly important
component of the state’s $2 trillion economy. In 2013, California
exported $168 billion in products, an increase of more than 4
percent over the amount exported in 2012. California has five
major land ports of entry, yielding $535.9 billion in economic
activity in 2012. California is also home to 11 seaports on over
1,000 miles of coastline. Seaports generate billions of dollars in
economic activity and millions of jobs. Land ports of entry and
seaports create busy borders and harbors with heavy industrial
commerce. It is imperative that safety issues and pollution
generated by trade are mitigated in order to reduce those impacts
and to allow additional growth in international trade. end insert

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begin insert SEC. 2. end insert   

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begin insert Chapter 4.8 (commencing with Section 2192) is added
to Division 3 of the end insert begin insert Streets and Highways Code end insert begin insert , to read: end insert

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Chapter   begin insert 4.8. end insert Trade Corridors Improvement Fund

 

begin insert 2192. end insert   

(a) The Trade Corridors Improvement Fund, created
pursuant to subdivision (c) of Section 8879.23 of the Government
Code, is hereby continued in existence to receive revenues from
sources other than the Highway Safety, Traffic Reduction, Air
Quality, and Port Security Bond Act of 2006. This chapter shall
govern expenditure of those other revenues.

(b) The moneys in the fund from those other sources shall be
available upon appropriation for allocation by the California
Transportation Commission for infrastructure improvements in
this state on federally designated Trade Corridors of National and
Regional Significance, on the Primary Freight Network, and along
other corridors that have a high volume of freight movement, as
determined by the commission. In determining the projects eligible
for funding, the commission shall consult the trade infrastructure
and goods movement plan submitted to the commission by the
Secretary of Transportation and the Secretary for Environmental
Protection. The commission shall also consult trade infrastructure
and goods movement plans adopted by regional transportation
planning agencies, adopted regional transportation plans required
by state and federal law, and the statewide port master plan
prepared by the California Marine and Intermodal Transportation
System Advisory Council (Cal-MITSAC) pursuant to Section 1730
of the Harbors and Navigation Code, when determining eligible
projects for funding. Eligible projects for these funds include, but
are not limited to, all of the following:

(1) Highway capacity improvements and operational
improvements to more efficiently accommodate the movement of
freight, particularly for ingress and egress to and from the state’s
land ports of entry and seaports, including navigable inland
waterways used to transport freight between land ports of entry
and seaports and between seaports, and to relieve traffic
congestion along major trade or goods movement corridors.

(2) Freight rail system improvements to enhance the ability to
move goods from land ports of entry and seaports to warehousing
and distribution centers throughout California, including projects
that separate rail lines from highway or local road traffic, improve
freight rail mobility through mountainous regions, relocate rail
switching yards, and other projects that improve the efficiency
and capacity of the rail freight system.

(3) Projects to enhance the capacity and efficiency of land ports
of entry and seaports.

(4) Truck corridor improvements, including dedicated truck
facilities or truck toll facilities.

(5) Border access improvements that enhance goods movement
between California and Mexico and that maximize the state’s
ability to access coordinated border infrastructure funds made
available to the state by federal law.

(c) (1) The commission shall allocate funds for trade
infrastructure improvements from the fund in a manner that (A)
addresses the state’s most urgent needs, (B) balances the demands
of various land ports of entry and seaports, between large and
small land ports of entry and small and large seaports, as well as
between land ports of entry and seaports, (C) provides reasonable
geographic balance between the state’s regions, and (D) places
emphasis on projects that improve trade corridor mobility while
reducing emissions of diesel particulate and other pollutant
emissions.

(2) In addition, the commission shall also consider the following
factors when allocating these funds:

(A) “Velocity,” which means the speed by which large cargo
would travel from the land port of entry or seaport through the
distribution system.

(B) “Throughput,” which means the volume of cargo that would
move from the land port of entry or seaport through the distribution
system.

(C) “Reliability,” which means a reasonably consistent and
predictable amount of time for cargo to travel from one point to
another on any given day or at any given time in California.

(D) “Congestion reduction,” which means the reduction in
recurrent daily hours of delay to be achieved.

(d) To the extent moneys from the Greenhouse Gas Reduction
Fund, attributable to the auction or sale of allowances as part of
a market-based compliance mechanism relative to reduction of
greenhouse gas emissions, are transferred to the Trade Corridors
Improvement fund, projects funded with those moneys shall
demonstrate how they will reduce emissions consistent with the
goals and objectives of the Greenhouse Gas Reduction Fund.

(e) The commission shall allocate funds made available by this
section to projects that have identified and committed supplemental
funding from appropriate local, federal, or private sources. The
commission shall determine the appropriate amount of
supplemental funding each project should have to be eligible for
moneys from the fund based on a project-by-project review and
an assessment of the project’s benefit to the state and the program.
Except for border access improvements described in paragraph
(5) of subdivision (b), improvements funded with moneys from the
fund shall have supplemental funding that is at least equal to the
amount of the contribution from the fund. The commission may
give priority for funding to projects with higher levels of committed
supplemental funding.

(f) The commission shall include in its annual report to the
Legislature, required by Section 14535 of the Government Code,
a summary of its activities related to the administration of this
section. The summary shall, at a minimum, include a description
and the location of the projects contained in the program funded
by the fund, the amount of funds allocated to each project, the
status of each project, and a description of the mobility and air
quality improvements the program is achieving.

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SECTION 1.  

Section 63021.5 of the Government Code is
amended to read:

63021.5.  

(a) The bank shall be governed and its corporate
power exercised by a board of directors that shall consist of the
following persons:

(1) The Director of Finance or his or her designee.

(2) The Treasurer or his or her designee.

(3) The Director of the Governor’s Office of Business and
Economic Development or his or her designee, who shall serve as
chair of the board.

(4) An appointee of the Governor.

(5) The Secretary of Transportation or his or her designee.

(b) Any designated director shall serve at the pleasure of the
designating power.

(c) Three of the members shall constitute a quorum and the
affirmative vote of three board members shall be necessary for
any action to be taken by the board.

(d) A member of the board shall not participate in any bank
action or attempt to influence any decision or recommendation by
any employee of, or consultant to, the bank that involves a sponsor
of which he or she is a representative or in which the member or
a member of his or her immediate family has a personal financial
interest within the meaning of Section 87100. For purposes of this
section, “immediate family” means the spouse, children, and
parents of the member.

(e) Except as provided in this subdivision, members of the board
shall serve without compensation, but shall be reimbursed for
actual and necessary expenses incurred in performing their duties
to the extent that reimbursement for these expenses is not otherwise
provided or payable by another public agency, and shall receive
one hundred dollars ($100) for each full day of attending meetings
of the authority.

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