BILL NUMBER: SB 1228	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 19, 2014
	AMENDED IN ASSEMBLY  JUNE 25, 2014
	AMENDED IN SENATE  MARCH 27, 2014

INTRODUCED BY   Senator Hueso

                        FEBRUARY 20, 2014

   An act to add Chapter 4.8 (commencing with Section 2192) to
Division 3 of the Streets and Highways Code, relating to
transportation.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1228, as amended, Hueso. Trade Corridors Improvement Fund.
   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.
   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, seaports, and airports. The bill would require the commission
to consult specified plans and a specified strategy in determining
the projects eligible for  funding.   funding
and to allocate moneys from the fund consistent with a provision of
the bond act and specified fund guidelines adopted by the commission.

   The bill, to the extent  funds   moneys 
are transferred to the Trade Corridors Improvement Fund from the
Greenhouse Gas Reduction Fund, would require projects funded with
those  funds   moneys  to be 
consistent with the purposes of the Trade Corridors Improvement Fund
and the guidelines adopted for the fund by the commission and to
demonstrate how they will reduce greenhouse gas emissions consistent
with the goals and objectives of   subject to all of the
requirements of existing law applicable to the expenditure of moneys
appropriated from  the Greenhouse Gas Reduction Fund  ,
including, among other things, furthering the regulatory purposes of
the California Global Warming Solutions Act of 2006  .
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  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.
  SEC. 2.  Chapter 4.8 (commencing with Section 2192) is added to
Division 3 of the Streets and Highways Code, to read:
      CHAPTER 4.8.  TRADE CORRIDORS IMPROVEMENT FUND


   2192.  (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 state Transportation
Agency's state freight plan as described in Section 13978.8 of the
Government Code, the  State  Air Resources Board's
Sustainable Freight Strategy adopted by Resolution 14-2, and the
trade infrastructure and goods movement plan submitted to the
commission by the Secretary of  the United States Department
of  Transportation and the Secretary of  the United
States  Environmental Protection Agency. 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 seaports, land ports of entry, and airports, 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 seaports, land ports of entry, and airports 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 ports.
   (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.
   (6) Surface transportation and connector road improvements to
effectively facilitate the movement of goods, particularly for
ingress and egress to and from the state's land ports of entry,
airports, and seaports, to relieve traffic congestion along major
trade or goods movement corridors.
   (c) (1) The commission shall allocate funds for trade
infrastructure improvements from the fund consistent with Section
8879.52 of the Government Code and the Trade Corridors Improvement
Fund (TCIF) Guidelines adopted by the commission on November 27,
2007, or as amended by the commission, and in a manner that (A)
addresses the state's most urgent needs, (B) balances the demands of
various land ports of entry, seaports, and airports, (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) 
    2192.1.    (a)  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.
  be subject to all of the requirements of existing law
applicable to the expenditure of moneys appropriated from the
Greenhouse Gas Reduction Fund, includin   g, but not limited
to, both of the following:  
   (1) Projects shall further the regulatory purposes of the
California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code),
including reducing emissions from greenhouse gases in the state,
directing public and private investment toward disadvantaged
communities, increasing the diversity of energy sources, or creating
opportunities for businesses, public agencies, nonprofits, and other
community institutions to participate in and benefit from statewide
efforts to reduce emissions of greenhouse gases.  
   (2) Projects shall be consistent with the guidance developed by
the State Air Resources Board pursuant to Section 39715 of the Health
and Safety Code.  
   (b) All allocations of funds made by the commission pursuant to
this section shall be made in a manner consistent with the criteria
expressed in Section 39712 of the Health and Safety Code and with the
investment plan developed by the Department of Finance pursuant to
Section 39716 of the Health and Safety Code.  
   (e) 
    2192.2.   The commission shall allocate funds made
available by this  section   chapter  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),
  (b) of Section 2192,  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) 
    2192.3.   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.   chapter.
 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.