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