BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 2796 (Bloom) - Active Transportation Program
          
           ----------------------------------------------------------------- 
          |                                                                 |
          |                                                                 |
          |                                                                 |
           ----------------------------------------------------------------- 
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Version: June 30, 2016          |Policy Vote: T. & H. 10 - 0     |
          |                                |                                |
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Urgency: No                     |Mandate: No                     |
          |                                |                                |
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Hearing Date: August 8, 2016    |Consultant: Mark McKenzie       |
          |                                |                                |
           ----------------------------------------------------------------- 


          This bill meets the criteria for referral to the Suspense File.



          Bill  
          Summary:  AB 2796 would require that a minimum of 10 percent of  
          Active Transportation Program (ATP) funding be programmed for  
          planning and non-infrastructure activities, as specified.  The  
          bill would also authorize a local agency to spend its own funds  
          on a project programmed in a future year, and be reimbursed at a  
          later time for eligible expenditures.


          Fiscal  
          Impact:  
           Cost pressures in the millions annually (State Highway Account  
            and federal funds).  By establishing a 10 percent minimum  
            requirement in statute for planning and non-infrastructure  
            projects, the bill would reduce the amount of funding  
            available for ATP infrastructure projects, thereby creating  
            pressures on an oversubscribed program.  Current ATP  
            guidelines specify that 2 percent of funds are set aside for  
            planning.







          AB 2796 (Bloom)                                        Page 1 of  
          ?
          
          

           Minor and absorbable California Transportation Commission  
            (CTC) costs to update ATP guidelines to specify the minimum  
            planning and non-infrastructure requirement, and to prescribe  
            the process for an agency to prefund a project.  (State  
            Highway Account)


          Background:  The ATP was established, pursuant to SB 99 (Budget and Fiscal  
          Review Committee), Chap. 359/2013, to consolidate several  
          existing federal and state programs and accounts that totaled  
          approximately $130 million in annual funding, including the  
          state Bicycle Transportation Account, the state and federal Safe  
          Routes to Schools (SRTS) programs, the federal Transportation  
          Alternatives Program, and the state Environmental Enhancement  
          and Mitigation Program.  The budget agreement directed funds to  
          be awarded by the CTC through a competitive process to urban  
          regions (40%), small urban and rural regions (10%), and for  
          statewide allocation (50%).   The allocations for the statewide  
          and small urban/rural components are awarded by CTC on a  
          competitive basis, while the CTC allocates funds for the urban  
          component in proportion to the regions' relative population, and  
          the each region award grants on a competitive basis.  Existing  
          law requires the CTC program guidelines to include a process to  
          ensure that at least 25 percent of overall ATP funding benefit  
          disadvantaged communities during each program cycle.

          The 2017 ATP guidelines adopted by the CTC earlier this year  
          cover fiscal years 2019-20 and 2020-21; projects will be adopted  
          early next year.  The 2017 guidelines set aside a maximum of 2%  
          of funds in the statewide component, and in the small urban and  
          rural component, for active transportation plans in  
          disadvantaged communities.  A large metropolitan planning  
          organization may set aside up to 2% of its funding for active  
          transportation plans in disadvantaged communities.  Both  
          planning and non-infrastructure projects are eligible for  
          funding through all three program components.


          The CTC's 2015 fund estimate provides approximately $120 million  
          in available resources for the ATP each year over a four-year  
          cycle, approximately $85.5 million of which is from federal  
          resources, with the remainder coming from the State Highway  
          Account.  The four-year fund estimate is updated and adopted  








          AB 2796 (Bloom)                                        Page 2 of  
          ?
          
          
          every other year.




          Proposed Law:  
            AB 2796 would make the following changes to the ATP:
           Require at least 10 percent of total funding available for  
            distribution to be programmed for planning and  
            non-infrastructure activities, including activities related to  
            safe routes to school.  At least 50 percent of this amount  
            must be programmed for planning activities to develop  
            comprehensive active transportation master plans.
           Authorize planning and non-infrastructure funds to be spent  
            for other authorized expenditures if applications in any  
            funding cycle do not exceed that minimum percentage of  
            funding.
           Specify that the planning and non-infrastructure minimum  
            funding requirements only apply to a program cycle adopted  
            after January 1, 2018.
           Require CTC guidelines to establish a "letter of no prejudice"  
            process that allows an agency to spend its own funds for a  
            project programmed in a future year, in advance of an  
            allocation, and to be reimbursed in a future year for eligible  
            expenditures.
           Specify that non-infrastructure activities include public  
            awareness campaigns and outreach to press and community  
            leaders, traffic education and enforcement, sessions on  
            bicycle and pedestrian safety, health, and environment, and  
            funding for training, volunteers, and managers of specified  
            program components.


          Staff  
          Comments:  Staff notes that the ATP is oversubscribed; over 600  
          applications requesting over $1 billion in funding were  
          submitted in the most recent funding cycle, and the CTC awarded  
          a total of $359 million for 200 projects.  Approximately 5  
          percent of the total funding was awarded for planning and  
          non-infrastructure activities in the last funding cycle.  This  
          bill would require, beginning in the first cycle after January  
          1, 2018, that a minimum of ten percent of funding be allocated  
          for those activities, thereby creating at least $6 million in  
          cost pressures on the program.  While fewer infrastructure  








          AB 2796 (Bloom)                                        Page 3 of  
          ?
          
          
          projects would be funded, the dedication of more funding to the  
          development of active transportation master plans is likely to  
          result in more competitive applications for funding in the  
          future.  Since disadvantaged communities are less likely to have  
          plans in place, the bill may help ensure that proper planning in  
          those communities helps to maximize targeted ATP investments.


                                      -- END --