BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1780


                                                                    Page  1





          Date of Hearing:  April 20, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          1780 (Medina) - As Amended March 28, 2016


           ----------------------------------------------------------------- 
          |Policy       |Transportation                 |Vote:|15 - 0       |
          |Committee:   |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |-------------+-------------------------------+-----+-------------|
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
           ----------------------------------------------------------------- 


          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


                                                                    Page  2






          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


                                                                    Page  3





            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