BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 2796 (Bloom) - Active Transportation Program
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|Version: June 30, 2016 |Policy Vote: T. & H. 10 - 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 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
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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
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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
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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.
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