BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2170


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          Date of Hearing:  April 20, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          2170 (Frazier) - As Amended March 15, 2016


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          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).










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          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,  








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            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









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