Amended in Assembly April 5, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2332

Introduced by Assembly Member Eduardo Garcia

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(Coauthors: Assembly Members Alejo, Bloom, Campos, and Holden)

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February 18, 2016

begin delete An act to add Section 14528.2 to the Government Code, relating to transportation. end delete begin insert An act to amend Sections 14526, 14526.4, and 14526.5 of, and to add Section 14031.9 to, the Government Code, and to amend Section 167 of the Streets and Highways Code, relating to transportation. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2332, as amended, Eduardo Garcia. begin delete Transportation. end delete begin insert Transportation funding: complete streets. end insert

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Existing law provides that the Department of Transportation has full possession and control over the highways of the state and is responsible for preparing the state highway operation and protection program for the expenditure of transportation funds for major capital improvements that are necessary to preserve and protect the state highway system. Existing law requires the department to submit a draft 5-year interregional transportation improvement program that consists of, among other things, projects to improve state highways.

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Existing law also creates the California Transportation Commission, with specified powers and duties relative to the programming of transportation capital improvement projects and the allocation of state transportation funds for state transportation improvement projects. Existing law requires the department, in consultation with the commission, to prepare an asset management plan to guide selection of projects for the state highway operation and protection program consistent with any applicable state and federal requirements. Existing law requires the commission, in connection with the asset management plan, to adopt targets and performance measures reflecting state transportation goals and objectives.

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This bill would require the department to increase the annual number of complete street projects undertaken by the department by 20% over the 2016 baseline by the year 2020 and increase accessibility for low-income and disadvantaged communities by increasing multimodal transportation proximity to employment, jobs, housing, and recreation areas. The bill would establish department goals to reduce by 10% based on the 2016 baseline the number of transit, pedestrian, and bicyclist fatalities, and reduce by 15% statewide per capita the vehicle miles traveled by the year 2020, and to increase travel by nonautomobile modes of travel, as specified.

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This bill would require the draft 5-year interregional transportation program to include projects to implement complete streets, as defined, and the state highway operation and protection program to include capital improvements relative to multiuse, including complete streets. The bill would require the department to hold at least one public hearing in each of its districts on state highway operation and protection program projects and would require the hearing to be accessible by public transit, held at times that are convenient for disadvantaged community residents, and upon request, provide translation services. The bill would require the commission, no later than July 1, 2017, in connection with the asset management plan, to also adopt targets and performance measures that reflect state transportation goals and objectives that, among other things, improve mobility, access, and safety for nonmotorized users in disadvantaged communities by requiring not less than 35% of state highway operation and protection program projects be located in urban and rural disadvantaged communities. The bill would also require that funds in the State Highway Account in the State Transportation Fund be programmed for specified safety improvements that would reduce fatalities and the number and severity of injuries to pedestrians.

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Existing law requires the Department of Transportation to prepare a State Highway Operation and Protection Program every other year for the expenditure of transportation capital improvement funds for projects that are necessary to preserve and protect the state highway system, excluding projects that add new traffic lanes. Existing law provides for the programming of transportation capital improvement funds for other objectives through the State Transportation Improvement Program administered by the California Transportation Commission, which includes projects recommended by regional transportation planning agencies through adoption of a regional transportation improvement program and projects recommended by the department through adoption of an interregional transportation improvement program, as specified.

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This bill, by January 1, 2018, would require the California Transportation Commission to establish a process whereby the department and local agencies receiving funding for highway capital improvements from the State Highway Operation and Protection Program or the State Transportation Improvement Program prioritize projects that provide meaningful benefits to the mobility and safety needs of disadvantaged community residents, as specified. The bill would require the commission to adopt guidelines to implement these provisions and would authorize the commission to withhold future funding allocations to an applicant from these programs if it determines that previous use of funding by the applicant has not adequately furthered the objectives of these provisions. The bill would require the commission to report biannually to the Legislature in this regard.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

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The Legislature finds and declares all of the
following:

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(a) For over a century, California has invested in a state
highway system that allowed our state economy to flourish and
ensured that over 38 million residents have access to places of
employment, education centers, and recreation areas.

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(b) However, low-income and disadvantaged communities have
faced historic patterns of inequity and disinvestment from our state
highway system.

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(1) Low-income and disadvantaged communities bear the burden
of disproportionate impacts from substandard air quality in the
form of higher rates of respiratory illness, hospitalizations, and
premature death.

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(2) Due to historic disinvestment, low-income and disadvantaged
communities suffer from lack of safe infrastructure such as bicycle
paths and sidewalks, which leads to increased injuries and fatalities
when traveling on the state highway system.

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(3) Due to the low level of car ownership in low-income and
disadvantaged communities, many residents do not have access
to transit or safe infrastructure such as bicycle paths and sidewalks
to travel safely to employment, education centers, and recreation
areas.

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(c) The Department of Transportation has updated its mission
to include sustainability, greater focus and awareness on safety
for all users of the transportation system, developing a multimodal
transportation system that expands transit, walking, and bicycling,
and the need for a fix-it-first focus that also achieves cobenefits
such as public health and social equity to address all users of the
transportation system.

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(d) It is the intent of the Legislature that this act continues the
Department of Transportation’s greater focus on sustainability
and awareness for all users of the transportation system by
directing resources to the state’s most impacted and disadvantaged
communities to ensure that activities taken in pursuit of
sustainability will also provide economic and health benefits to
these communities.

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begin insert SEC. 2. end insert   

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begin insert Section 14031.9 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

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begin insert 14031.9. end insert   

(a) The department shall increase the annual number
of complete streets projects undertaken by the department by 20
percent over the 2016 baseline by the year 2020.

(b) As used in this section, “complete street” means a
transportation facility that is planned, designed, operated, and
maintained to provide safe mobility for all users, including
bicyclists, pedestrians, transit vehicles, truckers, and motorists,
appropriate to the function and context of the facility.

(c) The department shall have as a goal the reduction by 10
percent, based on the 2016 baseline, of the number of transit,
pedestrian, and bicyclist fatalities and the reduction by 15 percent
of the statewide per capita the vehicle miles traveled (VMT) relative
to 2010 levels reported by district by the year 2020.

(d) It shall also be a goal of the department to increase travel
by nonautomobile modes by doing all of the following:

(1) Tripling the amount of bicycle travel relative to 2010-2012
California Household Travel Survey levels.

(2) Doubling the amount of pedestrian travel relative to
2010-2012 California Household Travel Survey levels.

(3) Doubling the amount of transit travel relative to 2010-2012
California Household Travel Survey levels.

(e) The department shall increase accessibility for low-income
and disadvantaged communities by increasing multimodal
transportation proximity to employment, jobs, housing, and
recreation areas.

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begin insert SEC. 3. end insert   

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begin insert Section 14526 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

14526.  

(a) Not later than October 15 of each odd-numbered
year, based on the guidelines established pursuant to Section
14530.1, and after consulting with the transportation planning
agencies, county transportation commissions, and transportation
authorities, the department shall submit to the commission the
draft five-year interregional transportation improvement program
consisting of all of the following:

(1) Projects to improve state highways, pursuant to subdivision
(b) of Section 164 of the Streets and Highways Code.

(2) Projects to improve the intercity passenger rail system.

(3) Projects to improve interregional movement of people,
vehicles, and goods.

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(4) Projects to implement or improve complete streets, as defined
in subdivision (b) of Section 14031.9.

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(b) Projects included in the interregional transportation
improvement program shall be consistent with the state
interregional transportation strategic plan prepared pursuant to
Section 14524.4.

(c) Projects may not be included in the draft interregional
transportation improvement program without a project study report
or major investment study.

(d) Major projects shall include current costs updated as of
November 1 of the year of submittal and escalated to the
appropriate year, and shall be consistent with, and provide the
information required in, subdivision (b) of Section 14529.

(e) Projects included in the draft interregional transportation
improvement program shall be consistent with the adopted regional
transportation plan.

(f) On or before November 15 of each odd-numbered year, the
commission shall hold at least one hearing in northern California
and one hearing in southern California to attempt to reconcile any
objections by any member of the public or other stakeholder to
the draft interregional transportation improvement program.

(g) The department shall consider the input received at the
hearings conducted pursuant to subdivision (f) and shall develop
a final interregional transportation improvement program. The
final interregional transportation improvement program shall
include a summary of the major comments received at the hearings
and responses to those comments, and shall be submitted to the
commission for approval not later than December 15 of each
odd-numbered year.

(h) The commission shall, when approving the final interregional
transportation improvement program pursuant to subdivision (g),
evaluate the extent to which the program is consistent with funding
priorities established in Section 167 of the Streets and Highways
Code.

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begin insert SEC. 4. end insert   

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begin insert Section 14526.4 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

14526.4.  

(a) The department, in consultation with the
commission, shall prepare a robust asset management plan to guide
selection of projects for the state highway operation and protection
program required by Section 14526.5. The asset management plan
shall be consistent with any applicable state and federal
requirements.

(b) The department may prepare the asset management plan in
phases, with the first phase to be implemented with the 2016 state
highway operation and protection program, and the complete asset
management plan to be prepared no later than the 2020 state
highway operation and protection program.

(c) In connection with the asset management plan, the
commission shall do both of the following:

(1)  begin delete Adopt end delete begin insert Not later than July 1, 2017, adopt end insert targets and
performance measures reflecting state transportation goals and

begin delete objectives. end delete begin insert objectives, that shall include, but are not limited to, all
of the following: end insert

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(A) Improving mobility, access, and safety for nonmotorized
users in disadvantaged communities by requiring not less than 35
percent of state highway operation and protection program projects
be located in urban and rural disadvantaged communities.

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(B) Providing targeted and meaningful benefits to residents in
those disadvantaged communities. Projects that provide meaningful
benefits to those residents shall include, but are not limited to,
both of the following:

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(i) Walkways, bikeways, and crossing facilities that connect
residents to community-identified amenities such as transit stops,
employment centers, schools, medical facilities, grocery stores,
and other community services.

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(ii) Pedestrian or bicycle traffic control devices to improve the
safety of nonmotorized users.

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(C) Prioritizing projects identified by the community through
strong public participation in disadvantaged communities.

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(D) Prioritizing projects that recruit, hire, or train low-income,
formerly incarcerated, underrepresented, or disconnected youth
and adults and other individuals with barriers to employment,
pursuant to Section 14005 of the Unemployment Insurance Code.
Priority shall be awarded for projects that utilize any of the
following:

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(i) Community workforce agreements.

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(ii) Project labor agreements with targeted hire commitments
requiring at least 30 percent of work hours performed by
individuals with barriers to employment, pursuant to Section 14005
of the Unemployment Insurance Code, or local hire commitments
requiring at least 30 percent of work hours performed by California
residents to be performed by residents of the city in which the
project takes place.

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(iii) Partnerships with community-based workforce training
entities preparing low-income youth and adults for employment.

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(iv) State certified pre-apprenticeship and registered
apprenticeship programs.

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(v) State certified community conservation corps.

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(vi) “Earn while you learn” models.

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(vii) YouthBuild programs.

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(viii) California Workforce Development Board programs
serving disadvantaged populations.

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(2) Review and approve the asset management plan, including
the final version of the first phase and the complete plan prepared
by the department pursuant to subdivision (b).

(d) As used in this section, “asset management plan” means a
document assessing the health and condition of the state highway
system with which the department is able to determine the most
effective way to apply the state’s limited begin delete resources. end delete begin insert resources and
advance meaningful benefits in disadvantaged communities. end insert

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(e) As used in this section, “disadvantaged community” means
a community with any of the following characteristics:

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(1) An area with a median household income less than 80
percent of the statewide median household income based on the
most current census tract-level data from the American Community
Survey.

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(2) An area identified by the California Environmental
Protection Agency pursuant to Section 39711 of the Health and
Safety Code.

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(3) An area where at least 75 percent of public school students
are eligible to receive free or reduced-price meals under the
National School Lunch Program.

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(f) As used in this section, “meaningful benefits” means
transportation projects that address any of the following:

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(1) Health harms suffered disproportionately by low-income
and disadvantaged communities due to copollutants, including
poor air quality and a lack of public health benefits.

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(2) Increasing job readiness and career opportunities with
workforce development programs, local hiring, or on-the-job
training.

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(3) Increasing travel for non-motorized users by improving
active transportation infrastructure such as bicycle paths,
sidewalks, and other non-motorized means of travel.

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(4) Investing in transportation that will meet an unmet need
that has been identified as a high priority by disadvantaged
community residents and groups.

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begin insert SEC. 5. end insert   

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begin insert Section 14526.5 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

14526.5.  

(a) Based on the asset management plan prepared
and approved pursuant to Section 14526.4, the department shall
prepare a state highway operation and protection program for the
expenditure of transportation funds for major capital improvements
that are necessary to preserve and protect the state highway system.
Projects included in the program shall be limited to capital
improvements relative to maintenance, safety, begin insert multiuse, including
complete streets, as defined in subdivision (b) of Section 14031.9, end insert
and rehabilitation of state highways and bridges that do not add a
new traffic lane to the system.

(b) The program shall include projects that are expected to be
advertised prior to July 1 of the year following submission of the
program, but which have not yet been funded. The program shall
include those projects for which construction is to begin within
four fiscal years, starting July 1 of the year following the year the
program is submitted.

(c) The department, at a minimum, shall specify, for each project
in the state highway operation and protection program, the capital
and support budget, as well as a projected delivery date, for each
of the following project components:

(1) Completion of project approval and environmental
documents.

(2) Preparation of plans, specifications, and estimates.

(3) Acquisition of rights-of-way, including, but not limited to,
support activities.

(4) Start of construction.

(d) The program shall be submitted to the commission not later
than January 31 of each even-numbered year. Prior to submitting
the plan, the department shall make a draft of its proposed program
available to transportation planning agencies for review and
comment and shall include the comments in its submittal to the
commission.

(e) The commission may review the program relative to its
overall adequacy, consistency with the asset management plan
prepared and approved pursuant to Section 14526.4 and funding
priorities established in Section 167 of the Streets and Highways
Code, the level of annual funding needed to implement the
program, and the impact of those expenditures on the state
transportation improvement program. The commission shall adopt
the program and submit it to the Legislature and the Governor not
later than April 1 of each even-numbered year. The commission
may decline to adopt the program if the commission determines
that the program is not sufficiently consistent with the asset
management plan prepared and approved pursuant to Section
14526.4.

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(f) The department shall hold at least one public hearing in each
of its districts on state highway operation and protection program
projects. The hearing shall be accessible by public transit and held
at times that are convenient for disadvantaged community
residents. Upon request, translation services shall be provided to
ensure meaningful participation by non-English-speaking residents.

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(f)

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begin insert (g) end insert  Expenditures for these projects shall not be subject to
Sections 188 and 188.8 of the Streets and Highways Code.

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begin insert SEC. 6. end insert   

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begin insert Section 167 of the end insert begin insert Streets and Highways Code end insert begin insert is
amended to read: end insert

167.  

(a) Funds in the State Highway Account in the State
Transportation Fund shall be programmed, budgeted subject to
Section 163, and expended to maximize the use of federal funds
and shall be based on the following sequence of priorities:

(1) Operation, maintenance, and rehabilitation of the state
highway system.

(2) Safety improvements where physical changes, other than
adding additional lanes, would reduce fatalities and the number
and severity of begin delete injuries. end delete begin insert injuries to pedestrians. end insert

(3) Transportation capital improvements that expand capacity
or reduce congestion, or do both.

(4) Environmental enhancement and mitigation programs.

(b) With respect to the funds in the State Highway Account, in
the Public Transportation Account, and in the Passenger Rail Bond
Fund, the proposed budget shall be organized on a program basis.
The proposed budget shall list the proposed expenditures for the
transportation program under the following program elements:

(1) Administration.

(2) Program development.

(3) Maintenance.

(4) State highway operation and protection.

(5) Local assistance.

(6) Interregional improvements.

(7) Regional improvements.

(8) Environmental enhancement and mitigation programs.

(c) State operations expenditure amounts of the department for
interregional and regional transportation improvement projects
shall be listed as required by subdivision (b) of Section 14529 of
the Government Code, but those amounts other than those for the
acquisition of rights-of-way, construction, and construction support
shall not be subject to allocation by the commission.

(d) To align the annual budget with the adopted state
transportation improvement program, the department may submit
to the Department of Finance revised capital outlay support and
capital outlay budget estimates as part of its May Revision process.
Budget proposals related to these changes shall be provided to the
Legislature no later than May 1.

(e) The budget shall not include specific appropriations for
specific transportation improvement projects, and the Legislature
shall not enact legislation containing specific individual
transportation projects.

(f) The basis for defining major and minor capital outlay projects
shall be established by the commission.

(g) The Legislative Analyst shall prepare an analysis of the
proposed expenditures for each program element as a part of the
budget analysis.

(h) The department shall submit to the Legislative Analyst, and
the Senate Committee on Budget and Fiscal Review and the
Assembly Committee on Budget, on an annual basis, supplemental
information to substantiate the department’s proposed capital outlay
support budget. The information shall be provided no later than
May 1 of each year, and may be provided at an earlier date. The
information shall include, but not be limited to, the following:

(1) A list of projects for which the department will perform
capital outlay support work in the budget year. For each project,
the department shall include:

(A) The planned project support budget for support of
environmental, design, right-of-way, and construction phases.

(B) The planned capital costs, including construction capital
costs and right-of-way capital costs.

(C) The estimated or actual construction start date and
completion date.

(D) The name and year of the state transportation program in
which the project is programmed, if applicable.

(E) Total prior fiscal year expenditures for capital outlay support.

(F) The number of full-time equivalent positions requested to
perform support of environmental, design, right-of-way, and
construction work in the fiscal year of the budget request.

(G) Milestones of project work by phases that are planned to
be completed in the fiscal year of the budget request.

(H) The ratio of support to capital costs based on current
programming.

(2) The capital-to-support ratio for all projects completed in the
prior fiscal year in each program in each district.

(3) The current total number of authorized and vacant positions
in the capital outlay support program in headquarters and in each
district.

(4) A five-year projection of the department’s staffing needs to
support the state’s transportation capital programs and any
workload performed by the department related to federal or local
funding for highway capital projects.

(5) The average cost of a personnel-year equivalent in each
district based on the department’s existing contracts for capital
outlay support work performed by a private company under
contract with the department. For each average cost, the department
shall provide a description of what factors are included in that cost.

(6) The average cost of a state staff personnel-year in the capital
outlay support program in each district and in headquarters. The
cost shall include the salary and wages, benefits, program overhead,
administrative overhead, and other associated costs. The
department shall provide a description of each component of the
average cost.

(7) A summary of expected capital outlay support workload for
the budget year that includes the following:

(A) The total full-time equivalents requested for each type of
the following activities: environmental, design, right-of-way, and
construction.

(B) The total full-time equivalents requested for each type of
project, including, but not limited to, the state transportation
improvement program, the state highway operation and protection
program, bond programs, regional and local agency partnership
workload, and any other program.

(8) The total number of projects with requested resources, as
well as the number of projects in which the department is limited
to an oversight role.

(9) The number of milestones scheduled, including
environmental, design, right-of-way, and construction deliverables,
as well as the number of projects expected to begin construction
and reach completion.

(10) A summary for the most recently completed fiscal year for
the following:

(A) Full-time equivalents and related funding expended,
including support of environmental, design, right-of-way, and
construction activities.

(B) Approved and filled positions as of the end of the fiscal
year.

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SECTION 1.  

Section 14528.2 is added to the Government
Code, to read:

14528.2.  

(a) On or before January 1, 2018, the commission
shall establish a process whereby the department and local agencies
receiving funding for highway capital improvements from the State
Highway Operation and Protection Program or the State
Transportation Improvement Program prioritize projects that
provide meaningful benefits to the mobility and safety needs of
disadvantaged community residents as identified by the community
through strong public participation. Projects that provide
meaningful benefits in this regard shall include, but are not limited
to, any of the following:

(1) Construction of new walkways, bikeways, and crossing
facilities, or improvements to existing bikeways, walkways, and
crossing facilities, that improve mobility, access, and safety for
nonmotorized users in disadvantaged communities, and that
connect residents to community-identified amenities such as transit
stops, employment centers, schools, medical facilities, grocery
stores, and other community services.

(2) Transit capital improvements that address
community-identified mobility and safety needs, including, but
not limited to, shelters, benches, and lighting.

(3) Open space preservation adjoining parallel active
transportation routes, providing for recreation and wildlife
connectivity, or buffers to minimize impacts of air pollution.

(4) Pedestrian or bicycle traffic control devices to improve the
safety of nonmotorized users.

(b) In order to implement subdivision (a), the commission shall
do all of the following:

(1) Establish a funding floor where no less than 35 percent of
rehabilitation and reconstruction projects are located in urban and
rural disadvantaged communities and provide meaningful benefits
to community residents in those disadvantaged communities.

(2) Include robust public stakeholder engagement on the
development of guidelines relating to prioritization of projects in
disadvantaged communities. The engagement shall include at least
two public hearings in each region around the state at locations
that are accessible by public transit and that are held at times that
are convenient for disadvantaged community residents, with the
provision of translation services to ensure meaningful participation
by non-English-speaking residents. “Region,” for the purpose of
this paragraph, means southern California, the Inland Empire,
northern California, and the San Joaquin Valley.

(3) Adopt guidelines and performance criteria for the department
and local agencies relative to social, economic, and regional equity
and public health impacts of highway projects funded from the
State Highway Operation and Protection Program or the State
Transportation Improvement Program.

(4) Require the lead agency on each project to provide a
description of how a proposed project located in a disadvantaged
community provides meaningful benefits to the community. The
location of a project in a disadvantaged community by itself does
not mean that the project provides meaningful benefits to that
community in the absence of a well-grounded description. In order
for a benefit to be meaningful, it shall be direct and assured.

(5) Prioritize projects that recruit, hire, and train low-income,
formerly incarcerated, or disconnected youth and adults and other
individuals with barriers to employment pursuant to Section 14005
of the Unemployment Insurance Code, including projects that
utilize community workforce agreements, project labor agreements
with targeted hire commitments, and partnerships with
community-based workforce training entities preparing low-income
youth and adults for employment.

(6)  Require the lead agency on each project to report to the
commission with documentation on each of the following upon
completion of the project:

(A) A description of and the location of the project, including
a map that delineates the location of targeted persons that will
benefit from the project in relationship to the project site.

(B) The amount of funds expended on the project.

(C) The completion date of the project.

(D) The project’s estimated useful life.

(E) A description of mobility benefits provided as a result of
the project to transit, bicycling, and pedestrians.

(F) A description of the community engagement process and
its accessibility to disadvantaged community residents, and the
contribution of that process to identification of benefits to those
residents from the project and resident engagement in
implementation of project.

(G) An analysis of how mobility benefits of the project are
accessible to disadvantaged community residents within the project
area.

(H) A description and, if feasible, a quantification of the public
health and safety, economic, and environmental cobenefits resulting
from the project. To the extent the performance criteria for each
cobenefit category have not been met, documentation shall be
provided that identifies any statutory or regulatory barriers, or
alternatively, a demonstrated absence of need.

(I) Documentation of the number of disadvantaged project area
residents or individuals with employment barriers who were
employed by the project or were provided workforce training
opportunities through the project, including hours worked, hourly
wage, types of benefits, occupation or trainee classification, and
documentation of any partnerships with community based
workforce training entities preparing low-income youth and adults
for employment.

(J) Levels of particulate matter, oxides of nitrogen, and sulphur
oxides in the project area prior to completion of the project, and
projected levels upon completion of the project.

(K) An analysis of the air pollution burden on low-income and
disadvantaged community residents within the project area.

(7) Evaluate the documentation provided pursuant to paragraph
(6) to determine the effectiveness of each completed project relative
to all of the following:

(A) Improvement of access and mobility for disadvantaged
community residents and connection to community-identified
amenities.

(B) Improvement of public health and air quality in the project
area, and particularly benefits and burdens on disadvantaged
community residents.

(C) Improvement of access to workforce development
opportunities and living wage jobs and careers for individuals with
barriers to employment and disadvantaged community residents.

(c) The commission may withhold future funding allocations
to an applicant from the State Highway Operation and Protection
Program and the State Transportation Improvement Program if it
determines that previous use of funding by the applicant has not
adequately furthered the objectives of subdivision (a).

(d) The commission shall provide a biannual report to the
Legislature on the implementation of this section. The report shall
be submitted pursuant to Section 9795 of the Government Code.

(e) As used in this section, “disadvantaged community” means
a community with any of the following characteristics:

(1) An area with a median household income less than 80
percent of the statewide median household income based on the
most current census tract-level data from the American Community
Survey.

(2) An area identified as among the most disadvantaged 25
percent of areas in the state according to the California
Environmental Protection Agency, based on the latest version of
the California Communities Environmental Health Screening Tool
(CalEnviroScreen) scores.

(3) An area where at least 75 percent of public school students
are eligible to receive free or reduced-price meals under the
National School Lunch Program. To the extent the characteristics
of this paragraph are used to determine that an area is
disadvantaged, the applicant shall either demonstrate how the
proposed project benefits those public school students in the project
area or, if the proposed project does not provide meaningful
benefits to those public school students, demonstrate how the
characteristics are applicable in determining that the larger
community is disadvantaged.

end delete