BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 2170 (Frazier) - Trade Corridors Improvement Fund: federal
funds
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|Version: August 2, 2016 |Policy Vote: T. & H. 10 - 0, |
| | E.Q. 7 - 0 |
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|Urgency: No |Mandate: No |
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|Hearing Date: August 8, 2016 |Consultant: Mark McKenzie |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: AB 2170 would require federal freight funds
apportioned to California under the federal Fixing America's
Surface Transportation (FAST) Act to be allocated to projects
through the state Trade Corridor Improvement Fund (TCIF)
program.
Fiscal
Impact:
The Department of Transportation (Caltrans) estimates it would
incur annual costs in the range of $300,000 to $600,000
annually for 2-4 PY of staff to administer federal funds and
support the California Transportation Commission (CTC) in
selecting projects eligible for funding. (federal funds)
----see staff comments----
AB 2170 (Frazier) Page 1 of
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Ongoing CTC costs of approximately $55,000 (1/2 PY) to update
TCIF guidelines and continue to administer the program.
(federal funds)
Background: Existing law established the TCIF with the passage of
Proposition 1B, the Highway Safety, Traffic Reduction, Air
Quality, and Port Security Bond Act of 2006. Proposition 1B,
among other things, authorized the issuance of $2 billion in
general obligation bonds for the TCIF for infrastructure
improvements along federally designated "Trade Corridors of
National Significance" or other high-volume freight corridors.
In determining project eligibility, the CTC must consult various
plans, including the California State Transportation Agency's
(CalSTA) state freight plan, the state Air Resources Board's
(ARB) Sustainable Freight Strategy, and the statewide port
master plan developed by the California Marine and Intermodal
Transportation System Advisory Council, among others. Eligible
projects include improvements to highway capacity and
operations, the freight rail system, ports, truck corridors, and
border access, as well as improvements to surface transportation
to facilitate goods movement to and from airports. TCIF
applicants must provide at least a 50% match from local,
federal, or private sources. TCIF funds have been fully
programmed.
The federal transportation funding authorization act of 2012,
the Moving Ahead for Progress in the 20th Century Act (MAP-21),
required the U.S. Department of Transportation to develop a
national freight strategic plan and encouraged states to develop
their own freight plans. CalSTA subsequently developed a state
freight plan and to establish a freight advisory committee made
up of federal, state, local, and regional representatives as
well as private sector and other interest groups, to guide the
development of the plan. This California Freight Management
Plan (CFMP) was adopted in December 2015.
The new federal transportation funding authorization, the FAST
Act, was signed into law in December 2015. The FAST Act
establishes a new Nationally Significant Freight and Highway
Projects Program, providing a dedicated source of funding for
freight projects. This program will provide competitive grants,
known as FASTLANE grants, or credit assistance to specified
projects, including highway freight projects, highway or bridge
projects on the National Highway System, railway-highway grade
AB 2170 (Frazier) Page 2 of
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crossings or grade separation projects, and freight intermodal
projects. The FAST Act requires a state receiving FASTLANE
funds to develop a freight plan, and deems that in order to be
eligible for freight funds a project must be included in the
freight plan.
Through an executive order in July 2015, Governor Brown directed
CalSTA, the California Environmental Protection Agency, the
Natural Resources Agency, ARB, Caltrans, the Energy Commission,
and the Governor's Office of Business and Economic Development
to develop an integrated action plan by July 2016 that
establishes targets to improve freight efficiency, transition to
zero-emission technologies, and increase the competitiveness of
California's freight system. This plan is to be informed by
existing state strategies such as the CFMP. The Executive Order
also directed departments to initiate work on freight pilot
projects within the state's primary freight corridors that
integrate advanced technologies, alternative fuels, freight and
fuel infrastructure, and local economic development
opportunities.
Proposed Law:
AB 2170 would require federal freight funds apportioned to
California under the FAST Act to be allocated to projects
through the TCIF. This bill would also:
Delete he requirement for the CTC to consult the ARB's
Sustainable Freight Strategy
Require CTC to consult the applicable port master plan when
determining project eligibility, instead of a specified
statewide port master plan that is out-of-date.
Require CTC to also consult the CFMP when determining eligible
projects for funding with funds that are not apportioned to
the state under the FAST Act.
Add rail landside access improvements, landside freight access
improvement to airports, and rail terminals to the list of
projects eligible for TCIF funding, as well as capital and
operational improvements to truck corridors and borders.
Specify that eligible truck corridor and border improvements
include both capital and operational improvements.
Require CTC to allocate funds in a manner that reduces
negative community impacts and makes a significant
AB 2170 (Frazier) Page 3 of
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contribution to the state's economy, in addition to other
specified criteria.
Require CTC to allocate federal freight funding pursuant to
the original TCIF Guidelines, as adopted on November 27, 2007,
in the manner specified.
Staff
Comments: Staff notes that California is expected to receive
approximately $116 million annually over five years for freight
projects through the FAST Act. The Act requires states
receiving these funds to develop a freight plan, and requires a
project to be included in the freight plan in order to receive
an allocation of federal funds. Caltrans notes that the bill
directs all federal funding to regional priorities and does not
provide for statewide priorities. In addition, it relies on
TCIF guidelines that are nearly 10 years old, and include
outdated information and timelines. CTC indicates it would
update the guidelines. Caltrans estimates that it would need
2-4 PY of staff to administer the program, at an annual cost of
$300,000 to $600,000. Staff notes that some of these costs
would likely be incurred to administer federal freight funding,
regardless of the requirements in the bill
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