BILL ANALYSIS Ó AB 2170 Page 1 Date of Hearing: April 20, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2170 (Frazier) - As Amended March 15, 2016 ----------------------------------------------------------------- |Policy |Transportation |Vote:|16 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill requires that federal funding for freight-related infrastructure projects apportioned to California from the Fixing America's Surface Transportation (FAST) Act be deposited into the Trade Corridor Improvement Fund (TCIF) and apportioned to state, regional, and local transportation entities by the California Transportation Commission (CTC). AB 2170 Page 2 FISCAL EFFECT: Allocates federal revenues estimated to average $116 million annually over five years to the CTC, for allocation to the state and local entities. COMMENTS: 1)Background. The CTC, pursuant to AB 14 (Lowenthal), Chapter 223, Statutes of 2013, has developed a California Freight Mobility Plan (CFMP) in accordance with federal guidelines. The CFMP addressed the state's strategic goals for freight transportation and identified a total of $138 billion worth of freight system projects across the state with a total of 94 projects, totaling nearly $31 billion, identified as Tier 1 projects. Enacted in December 2015, the FAST Act became the first federal transportation bill to emphasize goods movement projects, by dedicating up to $6.2 billion nationally for freight-related projects over 5 years. Of this total, California expects to receive an annual average of $116 million per year over five years for freight projects identified the CFMP. Beyond the requirement that projects be included in a state freight plan, however, the FAST Act did not specifically outline how the federal freight funding should be distributed. Recently, Caltrans indicated their intent to distribute the funds using what the department describes as a historic, AB 2170 Page 3 formulaic division whereby 60% of the funds are allocated to the state and 40% to the regions. 2)Purpose. The author believes that dividing designated federal freight funding in the above manner would dilute the capacity to use the funds to their fullest advantage. Specifically, the author notes that the TCIF provides a proven model of collaboration between the state and regions, with an equitable distribution of transportation funds across the state. The TCIF program, administered by the CTC, was created after voters approved Proposition 1B in 2006-a $19.9 billion transportation general obligation bond measure, which included $2 billion to fund transportation corridor improvements. In support of the bill, the Southern California Association of Government asserts that, by utilizing the TCIF process, both the state and regions will be able to quickly and efficiently develop priority projects identified in the CFMP, without needing to "reinvent the wheel," and the leveraging power provided by TCIF program will ensure that the greatest numbers of projects are developed. 3)Related Legislation. AB 1780 (Medina), also on today's committee agenda, continuously appropriates 20% of annual GGRF proceeds to the TCIF, to be distributed by the CTC in accordance with established TCIF guidelines. Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081 AB 2170 Page 4