BILL ANALYSIS Ó
AB 2170
Page 1
ASSEMBLY THIRD READING
AB
2170 (Frazier)
As Amended March 15, 2016
Majority vote
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Transportation |16-0 |Frazier, Linder, | |
| | |Baker, Bloom, Brown, | |
| | |Chu, Daly, Dodd, | |
| | |Eduardo Garcia, | |
| | |Gomez, Kim, Mathis, | |
| | |Medina, Melendez, | |
| | |Nazarian, O'Donnell | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Appropriations |20-0 |Gonzalez, Bigelow, | |
| | |Bloom, Bonilla, | |
| | |Bonta, Calderon, | |
| | |Chang, Daly, Eggman, | |
| | |Gallagher, Eduardo | |
| | |Garcia, Roger | |
| | |Hernández, Holden, | |
| | |Jones, Obernolte, | |
| | |Quirk, Santiago, | |
| | |Wagner, Weber, Wood | |
| | | | |
AB 2170
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SUMMARY: Requires federal freight revenues 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 (Commission) in accordance with federal requirements
and TCIF program guidelines. Specifically, this bill:
1)Requires that federal FAST Act freight funding be deposited
into the TCIF and allocated in accordance with TCIF program
guidelines as well as FAST Act requirements.
2)Updates the list of plans guiding TCIF investments by deleting
references to the outdated port master plan developed by the
California Marine and Intermodal Transportation System
Advisory (CALMITSAC) and the California Air Resources Board's
(ARB's) Sustainable Freight Strategy that will be superseded
by the California Sustainable Freight Action Plan later this
year.
3)Makes related, clarifying amendments.
FISCAL EFFECT: According to the Assembly Appropriations
Committee, allocates federal revenues estimated to average $116
million annually over five years to the CTC, for allocation to
the state and local entities.
COMMENTS: The TCIF program was created after voters approved
Proposition 1B in 2006 which authorized the sale of general
obligation bonds to fund transportation projects across the
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state to relieve congestion, improve goods movement flow,
enhance the safety and security of the transportation system,
and improve the state's air quality. Of the $19.9 billion
approved by voters, $2 billion of bond proceeds were placed into
the then-newly created TCIF program to fund transportation
corridor improvements. The TCIF program, administered by the
Commission in accordance with the TCIF guidelines, was
designated to fund projects identified in specified
transportation infrastructure planning documents. The TCIF
guidelines ensured that funds were equitably distributed across
the state, that the highest statewide priority projects were
funded, and that funds were leveraged to ensure that the
greatest number of projects were completed. The Commission also
successfully ensured that these projects were completed on
schedule and within budget.
Not only did TCIF achieve the goal of getting regions around the
state to work together to complete priority projects, it also
created jobs, reduced congestion, improved the state's air
quality, and helped the state achieve its emissions reduction
goals. Additionally, by requiring that projects receive
matching funds, the TCIF successfully leveraged the program's $2
billion in bond funds to complete $7.2 billion in projects.
While the TCIF program was created to distribute Proposition 1B
funds specifically, in 2014, SB 1228 (Hueso), Chapter 787,
continued the existence of the TCIF and allowed it to receive
funding from sources other than the general obligation bonds
originally authorized under Proposition 1B. In accordance with
SB 1228, revenues appropriated by the Legislature, such as cap
and trade revenues, can be transferred into the TCIF and
allocated by the Commission for specified projects in accordance
with TCIF.
In recent years, the federal government has placed a greater
emphasis on planning for and funding goods movement projects.
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For example, MAP-21 specifically directed the states to create
state freight plans in order to be able to be eligible for
future freight funding. In response, the Legislature passed AB
14 (Lowenthal), Chapter 223, Statutes of 2013, which directed
the development of a state freight plan in accordance with
MAP-21 requirements, no later than December, 2014. This plan,
the California Freight Mobility Plan (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.
On December 4, 2015, the FAST Act was signed into law and
becoming the first federal transportation bill to emphasize
goods movement projects by dedicating up to $6.2 billion
nationally for freight-related projects over five 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
specifically outline how the federal freight funding should be
distributed. Recently, the Administration indicated their
intent, through budget trailer bill language, to distribute the
federal freight funds with 50% of the funds allocated to the
state and 50% to the regions through a modified TCIF program.
The author firmly believes, that dividing designated federal
freight funding in this manner would dilute the capacity to use
the funds to their fullest advantage. Specifically, he notes
that the existing TCIF program provides a proven model of
collaboration between the region with an equitable distribution
of transportation funds across the state, that the Commission
has proven itself to successfully hold TCIF program
participants to tight project schedules and budget, and, most
importantly, that the TCIF is a proven mechanism to leverage
funds.
Please see the policy committee analysis for full discussion of
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this bill.
Analysis Prepared by:
Victoria Alvarez / TRANS. / (916) 319-2093 FN:
0003167