BILL ANALYSIS Ó
AB 1780
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Date of Hearing: April 20, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
1780 (Medina) - As Amended March 28, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill continuously appropriates 20% of annual Greenhouse Gas
Reduction Fund (GGRF) revenues to the Trade Corridor Improvement
Fund (TCIF), to be distributed by the California Transportation
Commission (CTC) in accordance with established TCIF guidelines.
FISCAL EFFECT:
AB 1780
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Assuming GGRF revenues of $2 billion annually through 2020, this
bill earmarks 20%, or $400 million of these revenues to the
TCIF. (Current law continuously appropriates 60% of GGRF
revenues for transit, affordable housing and sustainable
communities programs, and high speed rail.)
COMMENTS:
1)Background. In 2006, voters approved Proposition 1B, which
authorized the issuance of almost $20 billion in general
obligation bonds to fund transportation projects. Following
passage of Proposition 1B, the TCIF was created for allocation
of $2 billion included in the bond act for projects to improve
goods movement on state highways, rail systems, and ports, and
the CTC was directed to allocate the funds to goods movement
projects identified in statewide planning documents. All of
the $2 billion Proposition 1B bond proceeds have been expended
or dedicated for specific projects.
Recognizing the benefits that the TCIF program provided in
addressing air quality impacts and California's goods movement
system needs, SB 1228 (Hueso), Chapter 787, Statues of 2014
continued the existence of TCIF and authorized the program to
receive funds from other sources, including the GGRF.
2)Purpose. The author points out that, while SB 1228 established
a basic framework, it did not provide much- needed funding. AB
1780 establishes a dedicated funding stream for the TCIF by
continuously appropriating 20% of annual GGRF funds.
3)Opposition. The Rural County Representatives of California
(RCRC), while supportive of the TCIF program, take issue with
the continuous appropriation of GGRF funds into the TCIF,
AB 1780
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noting that a substantial portion of GGRF monies are already
permanently allocated to other programs, leaving only a small
portion available to support programs that are vital to rural
communities.
4)Related Legislation. AB 2170 (Frazier), also on today's
committee agenda, requires that federal funding for
freight-related infrastructure projects apportioned to
California from the Fixing America's Surface Transportation
(FAST) Act (about $116 million annually) be deposited into the
TCIF.
Analysis Prepared by:Chuck Nicol / APPR. / (916)
319-2081