Amended in Senate April 21, 2016

Amended in Senate September 1, 2015

Amended in Senate August 25, 2015

Amended in Senate July 14, 2015

California Legislature—2015–16 First Extraordinary Session

Senate BillNo. 1


Introduced by Senator Beall

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(Coauthors: Senators Allen, Hall, Hertzberg, McGuire, and Mendoza)

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June 22, 2015


An act tobegin insert amend Sections 13975, 14500, 14526.5, and 16965 of, toend insert add Sectionsbegin insert 14007.3, 14033,end insert 14526.7, 14526.8,begin delete 14528, 14528.1, and 16321 toend deletebegin insert 14526.9, 16321, and 16965.2 to, to add Part 5.1 (commencing with Section 14460) to Division 3 of Title 2 of, and to repeal Section 14534.1 of,end insert the Government Code,begin insert to amend Section 39719 of the Health and Safety Code, to amend Section 21080.37 of, and to add Division 13.6 (commencing with Section 21200) to, the Public Resources Code, to amend Section 99312.1 of the Public Utilities Code,end insert to amend Sectionsbegin delete 7360end deletebegin insert 6051.8, 6201.8, 7360, 8352.4, 8352.5, 8352.6,end insert and 60050 of the Revenue and Taxation Code, tobegin insert amend Sections 143, 183.1, and 820.1 of, toend insert addbegin delete Sectionend deletebegin insert Sectionsend insert 2103.1begin insert and 2103.2end insert to, to add Article 8 (commencing with Section 228) to Chapter 1 of Division 1 of, and to add Chapter 2 (commencing with Section 2030) to Division 3 of, the Streets and Highways Code, and to add Sectionsbegin delete 9250.3 and 9250.6 toend deletebegin insert 9250.3, 9250.6, 9400.5, and 9400.6 toend insert the Vehicle Code, relating to transportation, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL’S DIGEST

SB 1, as amended, Beall. Transportationbegin delete funding.end deletebegin insert funding: environmental mitigation: oversight.end insert

(1) Existing law provides various sources of funding for transportation purposes, including funding for the state highway system and the local street and road system. These funding sources include, among others, fuel excise taxes, commercial vehicle weight fees, local transactions and use taxes, and federal funds. Existing law imposes certain registration fees on vehicles, with revenues from these fees deposited in the Motor Vehicle Account and used to fund the Department of Motor Vehicles and the Department of the California Highway Patrol. Existing law provides for the monthly transfer of excess balances in the Motor Vehicle Account to the State Highway Account.

This bill would create the Road Maintenance and Rehabilitation Program to address deferred maintenance on the state highway system and the local street and road system and for other specified purposes. The bill would provide for the deposit of various funds for the program in the Road Maintenance and Rehabilitation Account, which the bill would create in the State Transportation Fund, including revenues attributable to a $0.12 per gallon increase in the motor vehicle fuel (gasoline) tax imposed by the bill and $0.10 of a $0.22 per gallon increase in the diesel fuel excise tax imposed by the bill,begin delete including an inflation adjustment, as provided,end delete an increase of $35 in the annual vehicle registration fee, a new $100 annual vehicle registration fee applicable to zero-emission motor vehicles, as defined, a new annual road access charge on each vehicle, as defined, of $35, and repayment,begin delete over a 3-year period,end deletebegin insert by June 30, 2016,end insert of outstanding loans made in previous years from certain transportation funds to the General Fund.begin insert The bill would provide that revenues from future adjustments in the applicable portion of the fuel tax rates, the annual vehicle registration fee increase, and the road access charge would also be deposited in the account.end insert

The bill would continuously appropriate the funds in the account for road maintenance and rehabilitation purposes and would allocate 5% of available funds to counties that approve a transactions and use tax on or after July 1,begin delete 2015,end deletebegin insert 2016,end insert with the remaining funds to be allocated 50% for maintenance of the state highway system or to the state highway operation and protection program, and 50% to cities and counties pursuant to a specified formula. The bill would impose various requirements on agencies receiving these funds and would require the California Transportation Commission to adopt performance criteria related to highway performance goals, greenhouse gas emissions, social equity impacts, and public health impacts, as specified. The bill would require the commission to annually evaluate the department and each city and county receiving these revenues to determine effectiveness in reducing deferred maintenance and improving roadway conditions, as well as in meeting the performance criteria. The bill would authorize the commission to withhold future allocations of funds or to reapportion funds to other agencies under certain conditions. The bill would authorize a city or county to spend its apportionment of funds under the program on transportation priorities other than those allowable pursuant to the program if the city’s or county’s average Pavement Condition Index meets or exceeds 85.

(2) The Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 (Proposition 1B) created the Trade Corridors Improvement Fund and provided for allocation by the California Transportation Commission of $2 billion in bond funds for infrastructure improvements on highway and rail corridors that have a high volume of freight movement, and specified categories of projects eligible to receive these funds. Existing law continues the Trade Corridors Improvement Fund in existence in order to receive revenues from sources other than the bond act for these purposes.

The bill would transfer revenues attributable to $0.12 of the $0.22 increase in the diesel fuel excise taxbegin insert and future adjustmentsend insert to the Trade Corridors Improvement Fund for expenditure on eligible projects.

(3) Existing law, as of July 1, 2011, increases the sales and use tax on diesel and decreases the excise tax, as provided. Existing law requires the State Board of Equalization to annually modify both the gasoline and diesel excise tax rates on a going-forward basis so that the various changes in the taxes imposed on gasoline and diesel are revenue neutral.

This bill would eliminate the annual rate adjustment to maintain revenue neutrality for the gasoline and diesel excise taxbegin delete rates.end deletebegin insert rates, and would reimpose the gasoline excise tax rate that was in effect on July 1, 2010, in addition to the increase in the rate described in (1).end insert This bill would, beginning July 1, 2019, and every 3rd year thereafter, require the board to recompute the gasoline and diesel excise tax rates based upon the percentage change in the California Consumer Price Indexbegin insert and the percentage change in the fuel efficiency of the state motor vehicle fleet, asend insert transmitted to the board by the Department of Finance, as prescribed.

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(4) Article XIX of the California Constitution requires gasoline excise tax revenues from motor vehicles traveling upon public streets and highways to be deposited in the Highway Users Tax Account, for allocation to city, county, and state transportation purposes. Existing law generally provides for statutory allocation of gasoline excise tax revenues attributable to other modes of transportation, including aviation, boats, agricultural vehicles, and off-highway vehicles, to particular accounts and funds for expenditure on purposes associated with those other modes, except that a specified portion of these gasoline excise tax revenues is deposited in the General Fund. Expenditure of the gasoline excise tax revenues attributable to those other modes is not restricted by Article XIX of the California Constitution.

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This bill, commencing July 1, 2016, would instead transfer to the Highway Users Tax Account for allocation to state and local transportation purposes under a specified formula the portion of gasoline excise tax revenues currently being deposited in the General Fund that are attributable to boats, agricultural vehicles, and off-highway vehicles. Because that account is continuously appropriated, the bill would make an appropriation.

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(5) Existing law, beyond the sales and use tax rate generally applicable, imposes an additional sales and use tax on diesel fuel at the rate of 1.75%, subject to certain exemptions, and provides for the net revenues collected from the additional tax to be transferred to the Public Transportation Account. Existing law continuously appropriates these revenues to the Controller, for allocation by formula to transportation agencies for public transit purposes.

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This bill, as of July 1, 2016, would increase the additional sales and use tax rate on diesel fuel to 5.25%. By increasing revenues that are continuously appropriated, the bill would thereby make an appropriation. The bill would restrict expenditures of revenues from the July 1, 2016, increase in the sales and use tax on diesel fuel to transit capital purposes and certain transit services. The bill would require an existing required audit of transit operator finances to verify that these new revenues have been expended in conformance with these specific restrictions and all other generally applicable requirements.

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This bill, as of July 1, 2016, would transfer revenues from the additional sales and use tax on diesel fuel at the 1.75% rate to the Transportation Debt Service Fund for the purpose of paying current year debt service on certain transportation general obligation bonds, rather than to the Public Transportation Account. The bill would also transfer an equivalent amount of revenues from the Greenhouse Gas Reduction Fund to the Public Transportation Account.

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(6) Existing law requires all moneys, except for fines and penalties, collected by the State Air Resources Board from a market-based compliance mechanism relative to reduction of greenhouse gas emissions to be deposited in the Greenhouse Gas Reduction Fund.

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Existing law continuously appropriates 10% of the annual proceeds of the fund to the Transit and Intercity Rail Capital Program and 5% of the annual proceeds of the fund to the Low Carbon Transit Operations Program.

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This bill would instead continuously appropriate 20% of those annual proceeds to the Transit and Intercity Rail Capital Program, and 10% of those annual proceeds to the Low Carbon Transit Operations Program, thereby making an appropriation.

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Existing law continuously appropriates 25% of the annual proceeds of the fund to the High-Speed Rail Authority for specified components of the initial operating segment of the high-speed rail line and the Phase I Blended System.

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This bill, commencing no earlier than the 2016-17 fiscal year, would require the authority, from the funds it expects to receive over time under these provisions, to set aside $550,000,000 for capital improvements on intercity and commuter rail lines and urban rail systems that provide connectivity to the high-speed rail system and for other rail capital purposes, as specified. The bill would require the moneys to be programmed to projects on a competitive basis by the California Transportation Commission in consultation with the authority. By authorizing expenditure of continuously appropriated funds for a new purpose, the bill would thereby make an appropriation.

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(7) Existing law provides for transfer of certain vehicle weight fee revenues and certain miscellaneous revenues in the State Highway Account to the Transportation Debt Service Fund to reimburse the General Fund for payment of current year debt service on general obligation bonds issued for transportation purposes. Existing law, under specified circumstances, also authorizes the transfer of certain vehicle weight fee revenues to the Transportation Bond Direct Payment Account for the direct payment of debt service on designated bonds, as defined. Existing law provides for loans of weight fee revenues not immediately needed for debt service purposes to the General Fund under certain circumstances, to be repaid as needed for future debt service payments.

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This bill, notwithstanding these provisions, would limit the amount of vehicle weight fee revenues that may be transferred each year to the Transportation Debt Service Fund or the Transportation Bond Direct Payment Account to the amount of revenues necessary to pay current year debt service only on specified bond measures and would specifically exclude debt service for Proposition 1A (2008) bonds issued for high-speed rail and associated purposes. The bill would prohibit loans of vehicle weight fee revenues to the General Fund. The bill would require the Department of Finance, in consultation with the Transportation Agency and the California Transportation Commission, to develop a plan for implementation, in whole or in part, beginning in the 2021-22 fiscal year, to restore 100% of net weight fee revenues to the State Highway Account. The bill would also eliminate the transfer of miscellaneous revenues from the State Highway Account to the Transportation Debt Service Fund.

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This bill would provide for the transfer of revenues from the Greenhouse Gas Reduction Fund to the Transportation Debt Service Fund in the amount necessary, as determined by the Director of Finance, to pay current year debt service for Proposition 1A (2008) bonds. The bill would also provide for transfer of certain diesel sales tax revenues to the Transportation Debt Service Fund for payment of debt service previously funded by miscellaneous revenues in the State Highway Account.

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(8) Existing law authorizes the issuance, following voter approval, of general obligation bonds for certain purposes, including transportation, and authorizes the Treasurer to issue refunding bonds under certain conditions with respect to those bonds. Existing law enacts various general obligation bond acts under which the proceeds from issuance of those bonds are to be expended on transportation purposes.

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This bill would require the Treasurer to calculate and report to the Department of Finance, by November 15 of each year, the projected reduction in General Fund debt service expenditures for the upcoming fiscal year due to the issuance of refunding bonds relative to general obligation bonds issued for transportation purposes. The bill would require the annual Budget Act to contain an appropriation from the General Fund to the California Transportation Commission of an amount equivalent to that projected reduction, for allocation by the commission to public agencies for high-priority maintenance and rehabilitation purposes on state and local highways, streets, and roads.

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(9) Existing law establishes in state government the Transportation Agency, which includes various departments and state entities, including the California Transportation Commission. Existing law vests the California Transportation Commission with specified powers, duties, and functions relative to transportation matters. Existing law requires the commission to retain independent authority to perform the duties and functions prescribed to it under any provision of law.

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This bill would exclude the California Transportation Commission from the Transportation Agency, establish it as an entity in state government, and require it to act in an independent oversight role. The bill would also make conforming changes.

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(4)

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begin insert(10)end insert 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. The program is required to be based on an asset management plan, as specified. Existing law requires the department to specify, for each project in the program, the capital and support budget and projected delivery date for various components of the project. Existing law provides for the California Transportation Commission to review and adopt the program, and authorizes the commission to decline to adopt the program if it determines that the program is not sufficiently consistent with the asset management plan.

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This bill would additionally require the department to program capital outlay support resources for each project in the program. The bill would provide that the commission is not required to approve the program in its entirety, as submitted by the department, and may approve or reject individual projects programmed by the department. The bill would require the department to submit any change in a programmed project’s cost, scope, or schedule to the commission for its approval.

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This bill, on and after February 1, 2017, wouldbegin insert alsoend insert require the commission to make an allocation of all capital and support costs for each project in the program, and would require the department to submit a supplemental project allocation request to the commission for each project that experiences cost increases above the amounts in its allocation. The bill would require the commission to establish guidelines to provide exceptions to the requirement for a supplemental project allocation requirement that the commission determines are necessary to ensure that projects are not unnecessarily delayed.

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(5)

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begin insert(11)end insert Existing law requires the Department of Transportation to prepare and submit to the Governor a proposed budget and to develop budgeting, accounting, fiscal control, and management information systems to provide budget oversight.

This bill, bybegin delete Aprilend deletebegin insert Julyend insert 1, 2016, would require the department to present to the California Transportation Commission a plan to increase department efficiency by up to 30% over the subsequent 3 years, with the ongoing savings to result in increased capital expenditures in the state highway operation and protection program or an increase in the state highway maintenance program.begin insert This bill, by April 1, 2017, would also require the department to present to the commission a 5-year plan to generate additional income from properties owned by the department, including, but not limited to, expeditious offering for sale of properties no longer needed for highway purposes and joint use of highway property by business activities that have the potential to generate income for the state without interfering with the needs of the state highway system.end insert

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(6) 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 would require the department or any local agency, when undertaking any capital improvement project on a state highway or local street or highway funded through the State Highway Operation and Protection Program or the State Transportation Improvement Program, to include new bicycle and pedestrian safety, access, and mobility improvements, or improve existing facilities, as part of the project, consistent with the department’s adopted Strategic Management Plan 2015-2020, subject to certain exceptions.

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This bill would, to the maximum extent feasible, require all transportation projects funded through the State Highway Operation and Protection Program or the State Transportation Improvement Program to be implemented in a manner that reduces greenhouse gas emissions and positively benefits vulnerable or disadvantaged communities, as specified. The bill would require the commission to adopt performance criteria for these transportation projects relative to greenhouse gas emissions, social equity impacts, and public health impacts, and would require the lead agency for each project to report to the commission with documentation on those matters upon completion of the project. The bill would require the commission to evaluate the documentation to determine the effectiveness of each completed project in meeting the adopted performance criteria, and would authorize the commission to withhold future funding allocations from an applicant if it determines that previous use of funding by the applicant has not adequately furthered the state’s climate, equity, and health goals in tandem with the state’s highway and road system maintenance and preservation goals.

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(12) Existing law creates various state transportation agencies, including the Department of Transportation and the High-Speed Rail Authority, with specified powers and duties. Existing law provides for the allocation of state transportation funds to various transportation purposes.

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This bill would create the Office of the Transportation Inspector General in state government, as an independent office that would not be a subdivision of any other government entity, to build capacity for self-correction into the government itself and to ensure that all state agencies expending state transportation funds are operating efficiently, effectively, and in compliance with federal and state laws. The bill would provide for the Governor to appoint the Transportation Inspector General for a 6-year term, subject to confirmation by the Senate, and would provide that the Transportation Inspector General may not be removed from office during the term except for good cause. The bill would specify the duties and responsibilities of the Transportation Inspector General, would require an annual report to the Legislature and Governor, and would provide that funding for the office shall, to the extent possible, be from federal transportation funds, with other necessary funding to be made available from the State Highway Account and an account from which high-speed rail activities may be funded.

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This bill would create the Division of Active Transportation within the Department of Transportation, with specified duties. The bill would continuously appropriate $100,000,000 annually from the Greenhouse Gas Reduction Fund to the State Highway Account for purposes of the Active Transportation Program. The bill would require the department to update the Highway Design Manual to incorporate the “complete streets” design concept by January 1, 2017.

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(13) The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.

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CEQA, until January 1, 2020, exempts a project or an activity to repair, maintain, or make minor alterations to an existing roadway, as defined, other than a state roadway, if the project or activity is carried out by a city or county with a population of less than 100,000 persons to improve public safety and meets other specified requirements.

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This bill would extend the above-referenced exemption until January 1, 2025, and delete the limitation of the exemption to projects or activities in cities and counties with a population of less than 100,000 persons. The bill would also expand the exemption to include state roadways.

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This bill would also establish the Advance Transportation Project Mitigation Program. The bill would authorize the Natural Resources Agency to administer and implement the program to provide effective mitigation and conservation of natural resources and natural processes on a landscape, regional, or statewide scale, to expedite the environmental review of planned transportation projects, and to facilitate the implementation of measures to mitigate the impacts of those projects by identifying and implementing mitigation measures in advance of project approval. The bill also would authorize the agency to acquire, restore, manage, monitor, and preserve lands, waterways, aquatic resources, or fisheries, or fund those actions, in accordance with an approved regional advance mitigation plan or as otherwise specified, and to establish or fund the establishment of mitigation banks or conservation banks and purchase credits at those types of banks. The bill would authorize the agency to take other actions with respect to mitigation credits or values created or acquired under the program.

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This bill would authorize a transportation agency, as defined, to identify planned transportation projects for the purpose of including the projects in a regional advance mitigation plan or for other advance mitigation under the program, and would authorize the agency to enter into a memorandum of understanding or other agreement with the transportation agency for specified purposes of the program.

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This bill would establish the Advance Transportation Project Mitigation Fund in the State Treasury. Upon appropriation by the Legislature, the bill would require moneys in the fund to be used by the agency to administer and implement the program.

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This bill would specify that the program is intended to improve the efficiency and efficacy of mitigation only and is not intended to supplant the requirements of the CEQA or any other environmental law.

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(14) Existing federal law requires the United States Secretary of Transportation to carry out a surface transportation project delivery program, under which the participating states assume certain responsibilities for environmental review and clearance of transportation projects that would otherwise be the responsibility of the federal government. Existing law, until January 1, 2017, provides that the State of California consents to the jurisdiction of the federal courts with regard to the compliance, discharge, or enforcement of the responsibilities the Department of Transportation assumed as a participant in this program.

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This bill would delete the January 1, 2017, repeal date, thereby extending these provisions indefinitely.

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(15) Existing law authorizes the Department of Transportation and regional transportation agencies, as defined, to enter into comprehensive development lease agreements with public and private entities, or consortia of those entities, for certain transportation projects that may charge certain users of those projects tolls and user fees, subject to various terms and requirements. These arrangements are commonly known as public-private partnerships. Existing law provides that a lease agreement may not be entered into under these provisions on or after January 1, 2017.

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This bill would authorize those lease agreements to be entered into on or after that date, add the Santa Clara Valley Transportation Authority as an eligible regional transportation entity that may enter into those agreements, and make technical changes.

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(7)

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begin insert(16)end insert This bill would declare that it is to take effect immediately as an urgency statute.

Vote: 23. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

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

P12   1begin insert

begin insertSECTION 1.end insert  

end insert
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This act shall be known, and may be cited, as the
2Transportation Infrastructure and Economic Investment Act.

end insert
3

begin deleteSECTION 1.end delete
4
begin insertSEC. 2.end insert  

The Legislature finds and declares all of the following:

5(a) Over the next 10 years, the state faces a $59 billion shortfall
6to adequately maintain the existing state highway system, in order
7to keep it in a basic state of good repair.

8(b) Similarly, cities and counties face a $78 billion shortfall
9over the next decade to adequately maintain the existing network
10of local streets and roads.

11(c) Statewide taxes and fees dedicated to the maintenance of
12the system have not been increased in more than 20 years, with
13those revenues losing more than 55 percent of their purchasing
14power, while costs to maintain the system have steadily increased
15and much of the underlying infrastructure has aged past its expected
16useful life.

17(d) California motorists are spending $17 billion annually in
18extra maintenance and car repair bills, which is more than $700
19per driver, due to the state’s poorly maintained roads.

20(e) Failing to act now to address this growing problem means
21that more drastic measures will be required to maintain our system
22in the future, essentially passing the burden on to future generations
23instead of doing our job today.

24(f) A funding program will help address a portion of the
25maintenance backlog on the state’s road system and will stop the
26growth of the problem.

P13   1(g) Modestly increasing various fees can spread the cost of road
2repairs broadly to all users and beneficiaries of the road network
3without overburdening any one group.

4(h) Improving the condition of the state’s road system will have
5a positive impact on the economy as it lowers the transportation
6costs of doing business, reduces congestion impacts for employees,
7and protects property values in the state.

8(i) The federal government estimates that increased spending
9on infrastructure creates more than 13,000 jobs per $1 billion spent.

10(j) Well-maintained roads benefit all users, not just drivers, as
11roads are used for all modes of transport, whether motor vehicles,
12transit, bicycles, or pedestrians.

13(k) Well-maintained roads additionally provide significant health
14benefits and prevent injuries and death due to crashes caused by
15poorly maintained infrastructure.

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16
(l) Commercial vehicle weight fees, which traditionally have
17been deposited in the State Highway Account and used for state
18highway purposes, were redirected, as a matter of last resort,
19during the severe fiscal emergency faced by the state several years
20ago to pay current year debt service on transportation general
21 obligation bonds that the voters intended to be paid by the General
22Fund. As General Fund revenues and the state’s economy have
23recovered from the fiscal emergency, it is now appropriate to begin
24the process of restoring 100 percent of weight fee revenues to their
25original intended purpose of repairing and rehabilitating the state
26highway system.

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27
(m) On December 4, 2015, President Obama signed into law
28the Fixing America’s Surface Transportation Act (“FAST Act”),
29the first federal law in over 10 years to provide long-term funding
30certainty for surface transportation projects. The FAST Act
31authorizes $305 billion between federal fiscal years 2016 to 2020,
32inclusive, for highway infrastructure projects, highway and motor
33vehicle safety, public transportation, motor carrier safety,
34hazardous materials safety, rail, and research, technology, and
35statistics programs.

end insert
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36
(n) California is positioned to increase its opportunity to obtain
37additional federal FAST Act funds through the passage of a
38transportation funding package aimed to rehabilitate the state’s
39highways, streets, and roads and improve public transportation
40throughout the state. That position could be jeopardized in the
P14   1absence of sufficient additional state funds to match and compete
2for the new federal funding. Without additional state funding, a
3considerable portion of the new federal funds, especially those
4funds available on a competitive basis, could be awarded to other
5states.

end insert
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end delete
6begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 13975 of the end insertbegin insertGovernment Codeend insertbegin insert is amended to
7read:end insert

8

13975.  

There is in the state government the Transportation
9Agency. The agency consists of the Department of the California
10Highway Patrol,begin delete the California Transportation Comission,end delete the
11Department of Motor Vehicles, the Department of Transportation,
12the High-Speed Rail Authority, and the Board of Pilot
13Commissioners for the Bays of San Francisco, San Pablo, and
14Suisun.

15begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 14007.3 is added to the end insertbegin insertGovernment Codeend insertbegin insert, to
16read:end insert

begin insert
17

begin insert14007.3.end insert  

There is in the Department of Transportation the
18Division of Active Transportation, which is responsible, among
19other things, for the administration of the Active Transportation
20Program as provided in Chapter 8 (commencing with Section
212380) of Division 3 of the Streets and Highways Code.

end insert
22begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 14033 is added to the end insertbegin insertGovernment Codeend insertbegin insert, to
23read:end insert

begin insert
24

begin insert14033.end insert  

On or before January 1, 2017, the department shall
25update the Highway Design Manual to incorporate the “complete
26streets” design concept.

end insert
27begin insert

begin insertSEC. 6.end insert  

end insert

begin insertPart 5.1 (commencing with Section 14460) is added
28to Division 3 of Title 2 of the end insert
begin insertGovernment Codeend insertbegin insert, to read:end insert

begin insert

29 

30PART begin insert5.1.end insert  OFFICE OF THE TRANSPORTATION INSPECTOR
31GENERAL

32

 

33

begin insert14460.end insert  

(a) There is hereby created in state government the
34independent Office of the Transportation Inspector General, which
35shall not be a subdivision of any other governmental entity, to
36build capacity for self-correction into the government itself and
37to ensure that the Department of Transportation, the High-Speed
38Rail Authority, and all other state agencies expending state
39transportation funds are operating efficiently, effectively, and in
40compliance with applicable federal and state laws.

P15   1
(b) The Governor shall appoint, subject to confirmation by the
2Senate, the Transportation Inspector General to a six-year term.
3The Transportation Inspector General may not be removed from
4office during that term, except for good cause.

5

begin insert14461.end insert  

The Transportation Inspector General shall review
6policies, practices, and procedures, and conduct audits and
7investigations of activities involving state transportation funds in
8consultation with all affected state agencies. Specifically, the
9Transportation Inspector General’s duties and responsibilities
10shall include, but not be limited to, all of the following:

11
(a) To examine the operating practices of the Department of
12Transportation, the High-Speed Rail Authority, and all other state
13agencies expending state transportation funds to identify fraud
14and waste, opportunities for efficiencies, and opportunities to
15improve the data used to determine appropriate project resource
16allocations.

17
(b) To identify best practices in the delivery of transportation
18projects and develop policies or recommend proposed legislation
19enabling state agencies to adopt these practices when practicable.

20
(c) To provide objective analysis of, and, when possible, offer
21solutions to, concerns raised by the public or generated within
22agencies involving the state’s transportation infrastructure and
23project delivery methods.

24
(d) To conduct, supervise, and coordinate audits and
25investigations relating to the programs and operations of all state
26transportation agencies with state-funded transportation projects.

27
(e) To recommend policies promoting economy and efficiency
28in the administration of programs and operations of all state
29agencies with state-funded transportation projects.

30

begin insert14462.end insert  

The Transportation Inspector General’s office shall
31not conduct an audit or investigation that would be redundant to
32or concurrent with an audit or investigation of the same matter
33being conducted contemporaneously by another state entity, or
34planned to be initiated pursuant to state or federal law or adopted
35agency board policy, within 18 months of the notification of the
36intent to undertake the audit or investigation by the Transportation
37Inspector General. The state entity shall provide the Transportation
38Inspector General with a summary of the results of the audit or
39investigation upon its completion, if requested.

P16   1

begin insert14463.end insert  

(a) The Transportation Inspector General shall report
2annually to the Governor and Legislature with a summary of his
3or her findings, investigations, and audits. The summary shall be
4posted on the Transportation Inspector General’s Internet Web
5site and shall otherwise be made available to the public upon its
6release to the Governor and Legislature. The summary shall
7include, but need not be limited to, significant problems discovered
8by the Transportation Inspector General and whether
9recommendations of the Transportation Inspector General relative
10to investigations and audits have been implemented by the affected
11agencies. The report shall be submitted to the Legislature in
12compliance with Section 9795.

13
(b) The Transportation Inspector General shall, in consultation
14with the Department of Finance, develop a methodology for
15producing a workload budget to be used for annually adjusting
16the budget of the Office of the Transportation Inspector General,
17beginning with the budget for the 2016-17 fiscal year. To the extent
18possible, the office shall be funded with federal transportation
19funds. Should federal funding not be available to fully fund the
20office, funding shall be made available, in proportion to the
21activities of the office, from the State Highway Account and an
22account from which high-speed rail activities may be funded.

end insert
23begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 14500 of the end insertbegin insertGovernment Codeend insertbegin insert is amended to
24read:end insert

25

14500.  

There is inbegin delete the Transportation Agencyend deletebegin insert state governmentend insert
26 a California Transportation Commission.begin insert The commission shall
27act in an independent oversight role.end insert

28begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 14526.5 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
29to read:end insert

30

14526.5.  

(a) Based on the asset management plan prepared
31and approved pursuant to Section 14526.4, the department shall
32begin delete prepareend deletebegin insert prepare, for review by the commission,end insert a state highway
33operation and protection program for the expenditure of
34transportation funds for major capitalbegin delete improvementsend deletebegin insert improvement
35projectsend insert
that are necessary to preserve and protect the state highway
36system. Projects included in the program shall be limited to capital
37improvements relative to maintenance, safety, and rehabilitation
38of state highways and bridges that do not add a new traffic lane to
39the system.begin insert As part of the programming process, the department
P17   1shall program capital outlay support resources for each project
2in the program.end insert

3(b) The program shall include projects that are expected to be
4advertised prior to July 1 of the year following submission of the
5program, but which have not yet been funded. The program shall
6include those projects for which construction is to begin within
7four fiscal years, starting July 1 of the year following the year the
8program is submitted.

9(c) The department, at a minimum, shall specify, for each project
10in the state highway operation and protection program, the capital
11and support budget, as well as a projected delivery date, for each
12of the following project components:

13(1) Completion of project approval and environmental
14documents.

15(2) Preparation of plans, specifications, and estimates.

16(3) Acquisition of rights-of-way, including, but not limited to,
17support activities.

18(4) Start of construction.

19(d) The begin delete program shall be submittedend delete begin insert department shall submit its
20proposed programend insert
to the commission not later than January 31 of
21each even-numbered year. Prior to submittingbegin delete the plan,end deletebegin insert its proposed
22program,end insert
the department shall make a draft of its proposed program
23available to transportation planning agencies for review and
24comment and shall include the comments in its submittal to the
25commission.begin insert The department shall provide the commission with
26detailed information for all programmed projects including, but
27not limited to, cost, scope, and schedule.end insert

28(e) The commissionbegin delete mayend deletebegin insert shallend insert review thebegin insert proposedend insert program
29relative to its overall adequacy, consistency with the asset
30management plan prepared and approved pursuant to Section
3114526.4 and funding priorities established in Section 167 of the
32Streets and Highways Code, the level of annual funding needed
33to implement the program, and the impact of those expenditures
34on the state transportation improvement program. The commission begin delete35 shall adopt the program and submit it to the Legislature and the
36Governor not later than April 1 of each even-numbered year. The
37commission may decline to adopt the program if the commission
38determines that the program is not sufficiently consistent with the
39asset management plan prepared and approved pursuant to Section
4014526.4.end delete
begin insert is not required to approve the program in its entirety, as
P18   1submitted by the department, and may approve or reject individual
2projects programmed by the department. The commission shall
3adopt a program of approved projects and submit it to the
4Legislature and the Governor not later than April 1 of each
5even-numbered year.end insert

6(f) Expenditures for these projects shall not be subject to
7Sections 188 and 188.8 of the Streets and Highways Code.

begin insert

8
(g) Following adoption of the state highway operation and
9protection program by the commission, any change in a
10programmed project’s cost, scope, or schedule shall be submitted
11by the department to the commission for its approval before the
12changes may be implemented.

end insert
13

begin deleteSEC. 2.end delete
14
begin insertSEC. 9.end insert  

Section 14526.7 is added to the Government Code, to
15read:

16

14526.7.  

(a) On and after February 1, 2017, an allocation by
17the commission of all capital and support costs for each project in
18the state highway operation and protection program shall be
19required.

20(b) For a project that experiences increases in capital or support
21costs above the amounts in the commission’s allocation pursuant
22to subdivision (a), a supplemental project allocation request shall
23be submitted by the department to the commission for approval.

24(c) The commission shall establish guidelines to provide
25exceptions to the requirement of subdivision (b) that the
26commission determines are necessary to ensure that projects are
27not unnecessarily delayed.

28

begin deleteSEC. 3.end delete
29
begin insertSEC. 10.end insert  

Section 14526.8 is added to the Government Code,
30to read:

31

14526.8.  

(a) On or beforebegin delete Aprilend deletebegin insert Julyend insert 1, 2016, the department
32shall present to the commission a plan to increase department
33efficiency by up to 30 percent over the subsequent three years.
34The ongoing savings experienced through this increased efficiency
35shall result in increased capital expenditures in the department’s
36state highway operation and protection program or an increase in
37the department’s state highway maintenance program.

38(b) The commission shall consider the reasonableness of the
39 proposal, and may approve the entire plan or reject all or portions
40of the plan. The commission’s feedback is intended to ensure that
P19   1the department is achieving the savings in the most responsible
2way possible.

3(c) All future state highway operation and protection program
4documents shall identify the increased funding available to the
5program as a result of the efficiencies realized due to the
6implementation of the plan.

begin delete
7

SEC. 4.  

Section 14528 is added to the Government Code, to
8read:

9

14528.  

(a) Except as provided in subdivisions (b) and (c), the
10department or any local agency, when undertaking any capital
11improvement project on a state highway or a local street or highway
12that is being funded through the State Highway Operation and
13Protection Program or the State Transportation Improvement
14Program, shall include new bicycle and pedestrian safety, access,
15and mobility improvements, or improve existing facilities, as part
16of the project, consistent with the department’s adopted Strategic
17Management Plan 2015-2020, as follows:

18(1) In transit priority areas and on streets and highways with
19average daily traffic of 20,000 vehicles or more and a speed limit
20over 25 miles per hour, well-lit facilities for bicyclists and
21pedestrians shall be provided that are physically separated from
22motor vehicles, either as Class I multiuse paths or Class IV
23bikeways with separate walkways. In addition, signals or other
24facilities shall be provided to enable bicyclists and pedestrians to
25safely cross the street or highway.

26(2) On streets or highways other than those described in
27paragraph (1), facilities for pedestrians and bicyclists shall be
28provided when feasible, and reduction of vehicle traffic lanes and
29implementation of traffic calming improvements shall be
30considered.

31(b) This section does not apply to capital improvement projects
32on street and highway facilities that are closed, by law, to use by
33pedestrians, bicyclists, and other nonmotorized users.

34(c) The department or a local agency may exempt a capital
35improvement project from the requirements of this section through
36adoption of a resolution, after at least one public hearing, that
37documents that there is a demonstrated and verifiable absence of
38future need for active transportation facilities on the highway
39segment where the capital improvement project is to be
40implemented.

P20   1(d) (1) As used in this section, “capital improvement project”
2includes, but is not limited to, a reconstruction, rehabilitation, or
3operational improvement project.

4(2) As used in this section, “transit priority area” means an area
5within one-half mile of an existing major transit stop, or a planned
6transit stop, if the planned stop is scheduled to be completed within
7the planning horizon included in the interregional transportation
8 improvement program submitted pursuant to Section 14526 or a
9regional transportation improvement program adopted submitted
10to Section 14527.

11

SEC. 5.  

Section 14528.1 is added to the Government Code, to
12read:

13

14528.1.  

(a) To the maximum extent feasible, all transportation
14projects funded through the State Highway Operation and
15Protection Program or the State Transportation Improvement
16Program shall be implemented in a manner that reduces greenhouse
17gas emissions and positively benefits vulnerable or disadvantaged
18communities pursuant to Assembly Bill 32 (Chapter 488, Statutes
19of 2006), Senate Bill 375 (Chapter 728, Statutes of 2008), and
20Senate Bill 535 (Chapter 830, Statutes of 2012).

21(b) The commission shall adopt performance criteria for the
22transportation projects in subdivision (a) relative to greenhouse
23gas emissions, social equity impacts, and public health impacts.
24The lead agency on each transportation project shall report to the
25commission with documentation on each of the following upon
26completion of the project:

27(1) A description of and the location of the project.

28(2) The amount of funds expended on the project.

29(3) The completion date.

30(4) The project’s estimated useful life.

31(5) The projected greenhouse gas emissions resulting from the
32project, including an analysis of induced demand and biological
33emissions.

34(6) A description of mobility benefits provided as a result of
35the project to transit, bicycling, and pedestrians.

36(7) An analysis of how mobility benefits of the project are
37accessible to low-income and disadvantaged community residents
38within the project area.

39(8) A description and, if feasible, a quantification of the public
40health and safety, economic, and environmental cobenefits resulting
P21   1from the project. To the extent the performance criteria for each
2cobenefit category have not been met, documentation shall be
3provided that identifies any statutory or regulatory barriers, or
4alternatively, a demonstrated absence of need.

5(9) Levels of particulate matter (PM 2.5), oxides of nitrogen
6(NOx), and sulphur oxides (SOx) prior to completion of the project,
7and projected levels upon completion of the project.

8(10) An analysis of air pollution burden on low-income and
9disadvantaged community residents within the project area.

10(11) Impacts of the project on important habitat, water resources,
11and agricultural lands.

12(c) The commission shall evaluate the documentation provided
13pursuant to subdivision (b) to determine the effectiveness of each
14completed project on all of the following:

15(1) Reduction of deferred maintenance and improvement of
16roadway conditions on the state highway system or local road
17system.

18(2) Reduction of greenhouse gas emissions.

19(3) Improvement of public health and air quality.

20(4) Improvement of access and mobility for low-income and
21disadvantaged community residents.

22(5) Enhancement of wildlife connectivity.

23(6) Preservation of natural and working lands.

24(d) The commission may withhold future funding allocations
25from an applicant if it determines that previous use of funding by
26the applicant has not adequately furthered the state’s climate,
27equity, and health goals in tandem with the state’s highway and
28road system maintenance and preservation goals.

end delete
29begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 14526.9 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
30to read:end insert

begin insert
31

begin insert14526.9.end insert  

On or before April 1, 2017, the department shall
32present to the commission a five-year plan to generate additional
33income from properties owned by the department, including, but
34not limited to, expeditious offering for sale of properties no longer
35needed for highway purposes and joint use of highway property
36by business activities that have the potential to generate income
37for the state without interfering with the needs of the state highway
38system. The additional income shall be deposited in the State
39Highway Account.

end insert
40begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 14534.1 of the end insertbegin insertGovernment Codeend insertbegin insert is repealed.end insert

begin delete
P22   1

14534.1.  

Notwithstanding Section 12850.6 or subdivision (b)
2of Section 12800, as added to this code by the Governor’s
3Reorganization Plan No. 2 of 2012 during the 2011-12 Regular
4Session, the commission shall retain independent authority to
5perform those duties and functions prescribed to it under any
6provision of law.

end delete
7

begin deleteSEC. 6.end delete
8
begin insertSEC. 13.end insert  

Section 16321 is added to the Government Code, to
9read:

10

16321.  

(a) Notwithstanding any other law, on or before March
111, 2016, the Department of Finance shall compute the amount of
12outstanding loans made from the State Highway Account, the
13Motor Vehicle Fuel Account, the Highway Users Tax Account,
14and the Motor Vehicle Account to the General Fund. The
15begin delete department shall prepare a loan repayment schedule, pursuant to
16which theend delete
outstanding loans shall be repaidbegin delete to the accounts from
17which the loans were made, as follows:end delete
begin insert on or before June 30, 2016,
18to the accounts from which the loans were made.end insert

begin delete

19(1) On or before June 30, 2016, 33 percent of the outstanding
20loan amounts.

21(2) On or before June 30, 2017, 33 percent of the outstanding
22loan amounts.

23(3) On or before June 30, 2018, 34 percent of the outstanding
24loan amounts.

end delete

25(b) Notwithstanding any other provision of law,begin delete asend delete thebegin insert funds
26made available fromend insert
loansbegin delete areend delete repaid pursuant to thisbegin delete section, the
27repaid fundsend delete
begin insert sectionend insert shall be transferred to the Road Maintenance
28and Rehabilitation Account created pursuant to Section 2031 of
29the Streets and Highways Code.

30(c) Funds for loan repayments pursuant to this sectionbegin delete shall beend delete
31begin insert are herebyend insert appropriated from the Budget Stabilization Account
32pursuant to subclause (II) of clause (ii) of subparagraph (B) of
33paragraph (1) of subdivision (c) of Section 20 of Article XVI of
34the California Constitution.

35begin insert

begin insertSEC. 14.end insert  

end insert

begin insertSection 16965 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
36to read:end insert

37

16965.  

(a) (1) The Transportation Debt Service Fund is hereby
38created in the State Treasury. Moneys in the fund shall be dedicated
39to all of the following purposes:

P23   1(A) Payment of debt service with respect to designated bonds,
2as defined in subdivision (c) of Section 16773, and as further
3provided in paragraph (3) and subdivision (b).

4(B) To reimburse the General Fund for debt service with respect
5to bonds.

6(C) To redeem or retire bonds, pursuant to Section 16774,
7maturing in a subsequent fiscal year.

8(2) The bonds eligible under subparagraph (B) or (C) of
9 paragraph (1) include bonds issued pursuant to the Clean Air and
10Transportation Improvement Act of 1990 (Part 11.5 (commencing
11with Section 99600) of Division 10 of the Public Utilities Code),
12the Passenger Rail and Clean Air Bond Act of 1990 (Chapter 17
13(commencing with Section 2701) of Division 3 of the Streets and
14Highways Code), the Seismic Retrofit Bond Act of 1996 (Chapter
1512.48 (commencing with Section 8879) of Division 1 of Title 2),
16and the Safe, Reliable High-Speed Passenger Train Bond Act for
17the 21st Century (Chapter 20 (commencing with Section 2704) of
18Division 3 of the Streets and Highways Code), and nondesignated
19bonds under Proposition 1B, as defined in subdivision (c) of
20Section 16773.

21(3) (A) The Transportation Bond Direct Payment Account is
22hereby created in the State Treasury, as a subaccount within the
23Transportation Debt Service Fund, for the purpose of directly
24paying the debt service, as defined in paragraph (4), of designated
25bonds of Proposition 1B, as defined in subdivision (c) of Section
2616773. Notwithstanding Section 13340, moneys in the
27Transportation Bond Direct Payment Account are continuously
28appropriated for payment of debt service with respect to designated
29bonds as provided in subdivision (c) of Section 16773. So long as
30any designated bonds remain outstanding, the moneys in the
31Transportation Bond Direct Payment Account may not be used
32for any other purpose, and may not be borrowed by or available
33for transfer to the General Fund pursuant to Section 16310 or any
34similar law, or to the General Cash Revolving Fund pursuant to
35Section 16381 or any similar law.

36(B) Once the Treasurer makes a certification that payment of
37debt service with respect to all designated bonds has been paid or
38provided for, any remaining moneys in the Transportation Bond
39Direct Payment Account shall be transferred back to the
40Transportation Debt Service Fund.

P24   1(C) The moneys in the Transportation Bond Direct Payment
2Account shall be invested in the Surplus Money Investment Fund,
3and all investment earnings shall accrue to the account.

4(D) The Controller may establish subaccounts within the
5Transportation Bond Direct Payment Account as may be required
6by the resolution, indenture, or other documents governing any
7designated bonds.

8(4) For purposes of this subdivision and subdivision (b), and
9subdivision (c) of Section 16773, “debt service” means payment
10of all of the following costs and expenses with respect to any
11designated bond:

12(A) The principal of and interest on the bonds.

13(B) Amounts payable as the result of tender on any bonds, as
14 described in clause (iv) of subparagraph (B) of paragraph (1) of
15subdivision (d) of Section 16731.

16(C) Amounts payable under any contractual obligation of the
17state to repay advances and pay interest thereon under a credit
18enhancement or liquidity agreement as described in clause (iv) of
19subparagraph (B) of paragraph (1) of subdivision (d) of Section
2016731.

21(D) Any amount owed by the state to a counterparty after any
22offset for payments owed to the state on any hedging contract as
23described in subparagraph (A) of paragraph (2) of subdivision (d)
24of Section 16731.

25(b) From the moneys transferred to the fund pursuant to
26paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the
27Vehicle Code, there shall first be deposited into the Transportation
28Bond Direct Payment Account in each month sufficient funds to
29equal the amount designated in a certificate submitted by the
30Treasurer to the Controller and the Director of Finance at the start
31of each fiscal year, and as may be modified by the Treasurer
32thereafter upon issuance of any new issue of designated bonds or
33upon change in circumstances that requires such a modification.
34This certificate shall be calculated by the Treasurer to identify, for
35each month, the amount necessary to fund all of the debt service
36with respect to all designated bonds. This calculation shall be done
37in a manner provided in the resolution, indenture, or other
38documents governing the designated bonds. In the event that
39transfers to the Transportation Bond Direct Payment Account in
40any month are less than the amounts required in the Treasurer’s
P25   1certificate, the shortfall shall carry over to be part of the required
2payment in the succeeding month or months.

3(c) The state hereby covenants with the holders from time to
4time of any designated bonds that it will not alter, amend, or restrict
5the provisions of subdivision (c) of Section 16773 of the
6Government Code, or Sections 9400, 9400.1, 9400.4, and 42205
7of the Vehicle Code, which provide directly or indirectly for the
8transfer of weight fees to the Transportation Debt Service Fund
9or the Transportation Bond Direct Payment Account, or
10subdivisions (a) and (b) of this section, or reduce the rate of
11imposition of vehicle weight fees under Sections 9400 and 9400.1
12of the Vehicle Code as they existed on the date of the first issuance
13of any designated bonds, if that alteration, amendment, restriction,
14or reduction would result in projected weight fees for the next
15fiscal year determined by the Director of Finance being less than
16two times the maximum annual debt service with respect to all
17outstanding designated bonds, as such calculation is determined
18pursuant to the resolution, indenture, or other documents governing
19the designated bonds. The state may include this covenant in the
20 resolution, indenture, or other documents governing the designated
21bonds.

22(d) Once the required monthly deposit, including makeup of
23any shortfalls from any prior month, has been made pursuant to
24subdivision (b), from moneys transferred to the fund pursuant to
25paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the
26Vehicle Code, or pursuant to Section 16965.1 or 63048.67, the
27Controller shall transfer as an expenditure reduction to the General
28Fund any amount necessary to offset the cost of current year debt
29service payments made from the General Fund with respect to any
30bonds issued pursuant to Proposition 192 (1996) and three-quarters
31of the amount of current year debt service payments made from
32the General Fund with respect to any nondesignated bonds, as
33defined in subdivision (c) of Section 16773, issued pursuant to
34Proposition 1B (2006). In the alternative, these funds may also be
35used to redeem or retire the applicable bonds, pursuant to Section
3616774, maturing in a subsequent fiscal year as directed by the
37Director of Finance.

38(e) begin insert(1)end insertbegin insertend insertFrom moneys transferred to the fund pursuant tobegin delete Section
39183.1 of the Streets and Highways Code,end delete
begin insert Sections 6051.8 and
406201.8 of the Revenue and Taxation Code,end insert
the Controller shall
P26   1transfer as an expenditure reduction to the General Fund any
2amount necessary to offset the cost of current year debt service
3payments made from the General Fund with respect to any bonds
4issued pursuant to Proposition 116begin delete (1990).end deletebegin insert (1990), and for the
5portion of Proposition 108 (1990) and Proposition 1B (2006)
6bonds that would otherwise be payable pursuant to subdivision
7(f) but that are not eligible to be paid under that subdivision
8because the bond proceeds were expended for purposes that do
9not qualify under Article XIX of the California Constitution.end insert
In the
10alternative, these funds may also be used to redeem or retire the
11applicable bonds, pursuant to Section 16774, maturing in a
12subsequent fiscal year as directed by the Director of Finance.

begin insert

13
(2) From moneys transferred to the fund pursuant to Section
1439719 of the Health and Safety Code, the Controller shall transfer
15as an expenditure reduction to the General Fund any amount
16necessary to offset the cost of current year debt service payments
17made from the General Fund with respect to any bonds issued
18pursuant to Proposition 1A (2008). In the alternative, these funds
19may also be used to redeem or retire the applicable bonds,
20pursuant to Section 16774, maturing in a subsequent fiscal year
21as directed by the Director of Finance.

end insert

22(f) Once the required monthly deposit, including makeup of any
23shortfalls from any prior month, has been made pursuant to
24subdivision (b), from moneys transferred to the fund pursuant to
25paragraph (2) or (3) of subdivision (c) of Section 9400.4 of the
26Vehicle Code, or pursuant to Section 16965.1 or 63048.67, the
27Controller shall transfer as an expenditure reduction to the General
28Fund any amount necessary to offset the eligible cost of current
29year debt service payments made from the General Fund with
30respect to any bonds issued pursuant to Proposition 108 (1990)
31begin delete and Proposition 1A (2008),end delete and one-quarter of the amount of
32current year debt service payments made from the General Fund
33with respect to any nondesignated bonds, as defined in subdivision
34(c) of Section 16773, issued pursuant to Proposition 1B (2006).
35The Department of Finance shall notify the Controller by July 30
36of every year of the percentage of debt service that is expected to
37be paid in that fiscal year with respect to bond-funded projects that
38qualify as eligible guideway projects consistent with the
39requirements applicable to the expenditure of revenues under
40Article XIX of the California Constitution, and the Controller shall
P27   1make payments only for those eligible projects. In the alternative,
2these funds may also be used to redeem or retire the applicable
3bonds, pursuant to Section 16774, maturing in a subsequent fiscal
4year as directed by the Director of Finance.

5(g) On or before the second business day following the date on
6which transfers are made to the Transportation Debt Service Fund,
7and after the required monthly deposits for that month, including
8makeup of any shortfalls from any prior month, have been made
9to the Transportation Bond Direct Payment Account, the Controller
10shall transfer the funds designated for reimbursement of bond debt
11service with respect to nondesignated bonds, as defined in
12subdivision (c) of Section 16773, and other bonds identified in
13subdivisions (d), (e), and (f) in that month from the fund to the
14General Fund pursuant to this section.

15begin insert

begin insertSEC. 15.end insert  

end insert

begin insertSection 16965.2 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
16to read:end insert

begin insert
17

begin insert16965.2.end insert  

The Treasurer, on or before November 15th of each
18year, shall calculate and report to the Department of Finance the
19projected reduction in General Fund debt service expenditures
20for the upcoming fiscal year due to the issuance on or before that
21date of refunding bonds relative to general obligation bonds issued
22for transportation purposes. The calculation shall be the difference
23between the amount of General Fund debt service expenditures
24that would otherwise have been required during the applicable
25fiscal year in the absence of the issuance of the refunding bonds
26and the amount of those expenditures following the issuance of
27the refunding bonds. The annual Budget Act shall contain an
28appropriation from the General Fund to the California
29Transportation Commission of an amount equivalent to that
30projected reduction, for allocation by the commission to public
31agencies for high-priority maintenance and rehabilitation purposes
32on state and local highways, streets, and roads.

end insert
33begin insert

begin insertSEC. 16.end insert  

end insert

begin insertSection 39719 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
34amended to read:end insert

35

39719.  

(a) The Legislature shall appropriate the annual
36proceeds of the fund for the purpose of reducing greenhouse gas
37emissions in this state in accordance with the requirements of
38Section 39712.

P28   1(b) To carry out a portion of the requirements of subdivision
2(a), annual proceeds are continuously appropriated for the
3following:

4(1) Beginning in thebegin delete 2015-16end deletebegin insert 2016-17end insert fiscal year, and
5notwithstanding Section 13340 of the Government Code,begin delete 35end deletebegin insert 50end insert
6 percent of annual proceeds are continuously appropriated, without
7regard to fiscal years, for transit, affordable housing, and
8sustainable communities programs asbegin delete following:end deletebegin insert follows:end insert

9(A) begin deleteTen end deletebegin insertTwenty end insertpercent of the annual proceeds of the fund is
10hereby continuously appropriated to the Transportation Agency
11for the Transit and Intercity Rail Capital Program created by Part
122 (commencing with Section 75220) of Division 44 of the Public
13Resources Code.

14(B) begin deleteFive end deletebegin insertTen end insertpercent of the annual proceeds of the fund is hereby
15continuously appropriated to the Low Carbon Transit Operations
16Program created by Part 3 (commencing with Section 75230) of
17Division 44 of the Public Resources Code. Funds shall be allocated
18by the Controller, according to requirements of the program, and
19pursuant to the distribution formula in subdivision (b) or (c) of
20Section 99312 of, and Sections 99313 and 99314 of, the Public
21Utilities Code.

22(C) Twenty percent of the annual proceeds of the fund is hereby
23continuously appropriated to the Strategic Growth Council for the
24Affordable Housing and Sustainable Communities Program created
25by Part 1 (commencing with Section 75200) of Division 44 of the
26Public Resources Code. Of the amount appropriated in this
27subparagraph, no less than 10 percent of the annual proceeds, shall
28be expended for affordable housing, consistent with the provisions
29of that program.

30(2) begin insert(A)end insertbegin insertend insertBeginning in the 2015-16 fiscal year, notwithstanding
31Section 13340 of the Government Code, 25 percent of the annual
32proceeds of the fund is hereby continuously appropriated to the
33High-Speed Rail Authority for the following components of the
34initial operating segment and Phase I Blended System as described
35in the 2012 business plan adopted pursuant to Section 185033 of
36the Public Utilities Code:

begin delete

37(A)

end delete

38begin insert(i)end insert Acquisition and construction costs of the project.

begin delete

39(B)

end delete

40begin insert(ii)end insert Environmental review and design costs of the project.

begin delete

P29   1(C)

end delete

2begin insert(iii)end insert Other capital costs of the project.

begin delete

3(D)

end delete

4begin insert(iv)end insert Repayment of any loans made to the authority to fund the
5 project.

begin insert

6
(B) In addition to the expenditures authorized in subparagraph
7(A), commencing no earlier than the 2016-17 fiscal year, the
8High-Speed Rail Authority shall, from the revenues it expects to
9receive over time pursuant to this paragraph, set aside five hundred
10fifty million dollars ($550,000,000) for capital improvements to
11intercity and commuter rail lines and urban rail systems that
12provide connectivity to the high-speed rail system and for other
13capital improvements consistent with the project eligibility
14requirements applicable to bond funds made available pursuant
15to Section 2704.095 of the Streets and Highways Code. The moneys
16set aside under this subparagraph shall be programmed on a
17competitive basis by the California Transportation Commission,
18in consultation with the authority, with allocations to be made by
19the commission to eligible recipients when warranted by
20anticipated expenditures.

end insert
begin insert

21
(c) (1) Beginning in the 2016-17 fiscal year, the amount
22necessary to pay the annual debt service on Proposition 1A (2008)
23general obligation bonds pursuant to paragraph (2) of subdivision
24(e) of Section 16965 of the Government Code, as determined by
25the Director of Finance, shall be transferred each fiscal year from
26the fund to the Transportation Debt Service Fund.

end insert
begin insert

27
(2) Beginning in the 2016-17 fiscal year, an amount equivalent
28to the diesel sales tax revenues transferred to the Transportation
29Debt Service Fund pursuant to Sections 6051.8 and 6201.8 of the
30Revenue and Taxation Code, as determined by the Director of
31Finance, shall be transferred each fiscal year from the fund to the
32Public Transportation Account for expenditure pursuant to Section
3399312.1 of the Public Utilities Code.

end insert
begin insert

34
(3) Beginning in the 2016-17 fiscal year, one hundred million
35dollars ($100,000,000) shall be transferred annually to the State
36Highway Account for expenditure on the Active Transportation
37Program pursuant to Chapter 8 (commencing with Section 2380)
38of Division 3 of the Streets and Highways Code.

end insert
begin delete

39(c)

end delete

P30   1begin insert(d)end insert In determining the amount of annual proceeds of the fund
2for purposes of the calculation in subdivision (b), the funds subject
3to Section 39719.1 shall not be included.

4begin insert

begin insertSEC. 17.end insert  

end insert

begin insertSection 21080.37 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
5amended to read:end insert

6

21080.37.  

(a) This division does not apply to a project or an
7activity to repair, maintain, or make minor alterations to an existing
8roadway if all of the following conditions are met:

begin delete

9(1) The project is carried out by a city or county with a
10population of less than 100,000 persons to improve public safety.

end delete
begin delete

11(2)

end delete

12begin insert(1)end insert (A) The project does not cross a waterway.

13(B) For purposes of this paragraph, “waterway” means a bay,
14estuary, lake, pond, river, slough, or a perennial, intermittent, or
15ephemeral stream, lake, or estuarine-marine shoreline.

begin delete

16(3)

end delete

17begin insert(2)end insert The project involves negligible or no expansion of an
18existing use beyond that existing at the time of the lead agency’s
19determination.

begin delete

20(4) The roadway is not a state roadway.

end delete
begin delete

21(5)

end delete

22begin insert(3)end insert (A) The site of the project does not contain wetlands or
23riparian areas and does not have significant value as a wildlife
24habitat, and the project does not harm any species protected by the
25federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et
26seq.), the Native Plant Protection Act (Chapter 10 (commencing
27with Section 1900) of Division 2 of the Fish and Game Code), or
28the California Endangered Species Act (Chapter 1.5 (commencing
29with Section 2050) of Division 3 of the Fish and Game Code), and
30the project does not cause the destruction or removal of any species
31protected by a local ordinance.

32(B) For the purposes of this paragraph:

33(i) “Riparian areas” mean those areas transitional between
34terrestrial and aquatic ecosystems and that are distinguished by
35gradients in biophysical conditions, ecological processes, and biota.
36A riparian area is an area through which surface and subsurface
37hydrology connect waterbodies with their adjacent uplands. A
38riparian area includes those portions of terrestrial ecosystems that
39significantly influence exchanges of energy and matter with aquatic
P31   1ecosystems. A riparian area is adjacent to perennial, intermittent,
2and ephemeral streams, lakes, and estuarine-marine shorelines.

3(ii) “Significant value as a wildlife habitat” includes wildlife
4habitat of national, statewide, regional, or local importance; habitat
5for species protected by the federal Endangered Species Act of
61973 (16 U.S.C. Sec. 1531, et seq.), the California Endangered
7Species Act (Chapter 1.5 (commencing with Section 2050) of
8Division 3 of the Fish and Game Code), or the Native Plant
9Protection Act (Chapter 10 (commencing with Section 1900) of
10Division 2 of the Fish and Game Code); habitat identified as
11candidate, fully protected, sensitive, or species of special status
12by local, state, or federal agencies; or habitat essential to the
13movement of resident or migratory wildlife.

14(iii) “Wetlands” has the same meaning as in the United States
15Fish and Wildlife Service Manual, Part 660 FW 2 (June 21, 1993).

16(iv) “Wildlife habitat” means the ecological communities upon
17which wild animals, birds, plants, fish, amphibians, and
18invertebrates depend for their conservation and protection.

begin delete

19(6)

end delete

20begin insert(4)end insert The project does not impact cultural resources.

begin delete

21(7)

end delete

22begin insert(5)end insert The roadway does not affect scenic resources, as provided
23pursuant to subdivision (c) of Section 21084.

24(b) Prior to determining that a project is exempt pursuant to this
25section, the lead agency shall do both of the following:

26(1) Include measures in the project to mitigate potential
27vehicular traffic and safety impacts and bicycle and pedestrian
28safety impacts.

29(2) Hold a noticed public hearing on the project to hear and
30respond to public comments. The hearing on the project may be
31conducted with another noticed lead agency public hearing.
32Publication of the notice shall be no fewer times than required by
33Section 6061 of the Government Code, by the public agency in a
34newspaper of general circulation in the area.

35(c) For purposes of this section, “roadway” means a roadway
36as defined pursuant to Section 530 of the Vehicle Code and the
37previously graded and maintained shoulder that is within a roadway
38right-of-way of no more than five feet from the edge of the
39roadway.

begin insert

P32   1
(d) (1) If a state agency determines that a project is not subject
2to this division pursuant to this section, and it approves or
3determines to carry out that project, it shall file a notice with the
4Office of Planning and Research in the manner specified in
5subdivisions (b) and (c) of Section 21108.

end insert
begin delete

6(d) Whenever

end delete

7begin insert(2)end insertbegin insertend insertbegin insertIfend insert a local agency determines that a project is not subject to
8this division pursuant to this section, and it approves or determines
9to carry out that project,begin delete the local agencyend deletebegin insert itend insert shall file a notice with
10the Office of Planning and Research, and with the county clerk in
11the county in which the project will be located in the manner
12specified in subdivisions (b) and (c) of Section 21152.

13(e) This section shall remain in effect only until January 1, begin delete2020,end delete
14begin insert 2025,end insert and as of that date is repealed, unless a later enacted statute,
15that is enacted before January 1,begin delete 2020,end deletebegin insert 2025,end insert deletes or extends
16that date.

17begin insert

begin insertSEC. 18.end insert  

end insert

begin insertDivision 13.6 (commencing with Section 21200) is
18added to the end insert
begin insertPublic Resources Codeend insertbegin insert, to read:end insert

begin insert

19 

20Division begin insert13.6.end insert  ADVANCE TRANSPORTATION PROJECT
21MITIGATION PROGRAM ACT

22

 

23Chapter  begin insert1.end insert General
24

 

25

begin insert21200.end insert  

This division shall be known, and may be cited, as the
26Advance Transportation Project Mitigation Program Act.

27

begin insert21201.end insert  

(a) The purpose of this division is to improve the
28success and effectiveness of actions implemented to mitigate the
29natural resource impacts of future transportation projects by
30establishing the means to implement those actions well before the
31transportation projects are constructed. The advance identification
32and implementation of mitigation actions also will streamline the
33delivery of transportation projects by anticipating mitigation
34requirements for planned transportation projects and avoiding or
35reducing delays associated with environmental permitting. By
36identifying regional or statewide conservation priorities and by
37anticipating the impacts of planned transportation projects on a
38regional or statewide basis, mitigation actions can be designed to
39protect and restore California’s most valuable natural resources
P33   1and also facilitate environmental compliance for planned
2transportation projects on a regional scale.

3
(b) This division is not intended to create a new environmental
4permitting or regulatory program or to modify existing
5environmental laws or regulations, nor is it intended to address
6all mitigation that may be required for planned transportation
7projects. Instead, it is intended to provide a way in which to
8anticipate and fulfill the requirements of existing state and federal
9environmental laws that protect fish, wildlife, plant species, and
10other natural resources more efficiently and effectively.

11

begin insert21202.end insert  

The Legislature finds and declares all of the following:

12
(a) The minimization and mitigation of environmental impacts
13is ordinarily handled on a project-by-project basis, usually at the
14end of a project’s timeline and without guidance regarding
15regional or statewide conservation priorities.

16
(b) The cost of critical transportation projects often escalates
17because of permitting delays that occur when appropriate
18conservation and mitigation measures cannot easily be identified
19and because the cost of these measures often increases between
20the time a project is planned and funded and the time mitigation
21is implemented.

22
(c) Addressing conservation and mitigation needs early in a
23project’s timeline, during project design and development, can
24reduce costs and allow natural resources conservation to be
25integrated with project siting and design.

26
(d) When the Department of Transportation, the High-Speed
27Rail Authority, metropolitan planning organizations, regional
28transportation planning agencies, and other transportation
29agencies are able to anticipate the mitigation needs for planned
30transportation projects, they can meet those needs in a more timely
31and cost-effective way, by using long-range regional advance
32mitigation planning.

33
(e) Working with state and federal resource protection agencies,
34the Department of Transportation, the High-Speed Rail Authority,
35metropolitan planning organizations, regional transportation
36planning agencies, and other transportation agencies could
37identify, conserve, and, where appropriate, restore lands for
38mitigation of numerous projects early in the projects’ timelines,
39thereby allowing public funds to stretch further by acquiring
P34   1habitat at a lower cost and avoiding environmental permitting
2delays.

3
(f) Regional advance mitigation planning can provide an
4effective means of facilitating delivery of state and federal
5economic stimulus funding to transportation projects while
6ensuring more effective natural resource conservation.

7
(g) Regional advance mitigation planning is needed to direct
8mitigation funding for transportation projects to agreed-upon
9conservation priorities and to the creation of habitat reserves and
10recreation areas that enhance the sustainability of human and
11 natural systems by protecting or restoring connectivity of natural
12communities and the delivery of ecosystem services.

13
(h) Regional advance mitigation planning can facilitate the
14implementation of climate change adaptation strategies both for
15ecosystems and California’s economy.

16
(i) Regional advance mitigation planning can enable the state
17to protect, restore, and recover its natural capital as it strengthens
18and improves its transportation systems.

19

begin insert21203.end insert  

The Legislature intends to do all of the following by
20enacting this division:

21
(a) Facilitate delivery of transportation projects while ensuring
22more effective natural resource conservation.

23
(b) Develop effective strategies to improve the state’s ability to
24meet mounting demands for transportation improvements and to
25maximize conservation and other public benefits.

26
(c) Achieve conservation objectives of statewide and regional
27importance by coordinating local, state, and federally funded
28natural resource conservation efforts with mitigation actions
29required for impacts from transportation projects.

30
(d) Create administrative, governance, and financial incentives
31and mechanisms necessary to ensure that measures required to
32minimize or mitigate impacts from transportation projects will
33serve to achieve regional or statewide natural resource
34conservation objectives.

35 

36Chapter  begin insert2.end insert Definitions
37

 

38

begin insert21204.end insert  

For purposes of this division, the following terms have
39the following meanings:

P35   1
(a) “Acquire” and “acquisition” mean, with respect to land or
2a waterway, acquisition of fee title or purchase of a conservation
3easement, that protects conservation and mitigation values on the
4land or waterway in perpetuity.

5
(b) “Agency” means the Natural Resources Agency.

6
(c) “Transportation agency” means the Department of
7Transportation, the High-Speed Rail Authority, a metropolitan
8planning organization, a regional transportation planning agency,
9or another public agency that implements transportation projects.

10
(d) “Transportation project” means a transportation capital
11improvement project.

12
(e) “Planned transportation project” means a transportation
13project that a transportation agency has concluded is reasonably
14likely to be constructed within 20 years and that has been identified
15to the agency for purposes of this division. A planned
16transportation project may include, but is not limited to, a
17transportation project that has been proposed for approval or that
18has been approved.

19
(f) “Program” means the Advance Transportation Project
20Mitigation Program implemented pursuant to this division.

21
(g) “Regional advance mitigation plan” means a regional or
22statewide plan developed in accordance with this division that
23estimates the potential future compensatory mitigation
24requirements for one or more planned transportation projects and
25identifies mitigation projects, sites, or credits that would fulfill
26some or all of those requirements.

27
(h) “Regulatory agency” means a state or federal natural
28resource protection agency with regulatory authority over planned
29transportation projects. A regulatory agency includes, but is not
30limited to, the Department of Fish and Wildlife, California regional
31water quality control boards, the United States Fish and Wildlife
32Service, the National Marine Fisheries Service, the United States
33Environmental Protection Agency, and the United States Army
34Corps of Engineers.

35 

36Chapter  begin insert3.end insert Advance Transportation Project Mitigation
37Program
38

 

39

begin insert21205.end insert  

The Advance Transportation Project Mitigation
40Program is hereby established to fulfill the purposes of this
P36   1division. The agency may do any of the following to administer
2and implement the program:

3
(a) Prepare, approve, and implement regional advance
4mitigation plans for one or more planned transportation projects
5identified pursuant to Section 21207. The purpose of a regional
6advance mitigation plan is to provide effective mitigation and
7conservation of natural resources and natural processes on a
8landscape, regional, or statewide scale, to expedite the
9environmental review of planned transportation projects, and to
10facilitate the implementation of measures to mitigate the impacts
11of those projects by identifying and implementing mitigation
12measures in advance of project approval.

13
(b) Acquire, restore, manage, monitor, and preserve lands,
14waterways, aquatic resources, or fisheries, or fund the acquisition,
15restoration, management, monitoring, and preservation of lands,
16waterways, aquatic resources, or fisheries, in accordance with a
17regional advance mitigation plan approved by the agency pursuant
18to this division.

19
(c) Acquire, restore, manage, monitor, and preserve lands,
20waterways, aquatic resources, or fisheries, or fund the acquisition,
21restoration, management, monitoring, and preservation of lands,
22waterways, aquatic resources, or fisheries, outside of an approved
23regional advance mitigation plan if the agency determines that
24those actions would conserve or create biological values that are
25appropriate to mitigate the estimated impacts of one or more
26 planned transportation projects identified pursuant to Section
2721207.

28
(d) Establish mitigation banks or conservation banks, or fund
29the establishment of mitigation banks or conservation banks, in
30accordance with applicable state and federal standards. The
31agency also may purchase credits at mitigation banks and
32conservation banks if the agency determines that the credits
33provide biologically appropriate mitigation for one or more
34planned transportation projects identified pursuant to Section
3521207.

36
(e) Establish the type and quantity of mitigation credits or values
37created under the program by obtaining the approval of those
38credits or values from relevant regulatory agencies. This division
39is not intended to supplant or abrogate the authority of a regulatory
40agency to determine mitigation requirements under state or federal
P37   1 environmental laws or to determine the type or quantity of
2mitigation credits or values that may be used to fulfill those
3requirements.

4
(f) Use, or allow transportation agencies to use, mitigation
5credits or values created or obtained under the program to fulfill
6the mitigation requirements of planned transportation projects if
7the transportation agency reimburses the program for all costs of
8creating the mitigation credits or values, as determined by the
9agency. Those costs shall be calculated using total cost accounting
10and shall include, as applicable, land acquisition or conservation
11easement costs, monitoring costs, restoration costs, transaction
12costs, the amount of a nonwasting endowment account for land
13management or easement stewardship costs of the management
14entity, administrative costs, and contingency costs.

15
(g) Assist regional and local agencies to develop regional
16advance mitigation plans for one or more planned transportation
17projects identified pursuant to Section 21207.

18

begin insert21205.5.end insert  

The agency shall publish a regional advance
19mitigation plan on its Internet Web site for public review and
20comment 45 days prior to adoption of the plan.

21

begin insert21206.end insert  

A regional advance mitigation plan shall do all of the
22following:

23
(a) Use geographic information system analysis, field surveys,
24principles of conservation planning, and other appropriate
25methodologies to estimate the nature and extent of mitigation
26requirements of identified planned transportation projects on a
27regional or statewide basis.

28
(b) Propose measures to avoid or minimize the adverse
29environmental impacts of planned transportation projects,
30including, where appropriate, the identification of project
31alignments and design features that would avoid or minimize those
32impacts.

33
(c) Anticipate and provide for compensatory mitigation for
34planned transportation projects’ impacts on natural resources
35and natural processes by identifying needed mitigation and, to the
36extent practicable, identifying suitable mitigation lands or
37waterways.

38
(d) Identify and provide for the preservation of wildlife
39movement corridors and habitat connectivity to avoid ecological
P38   1fragmentation and to enable ecosystem adaptation to climate
2change.

3
(e) Consider the full range of impacts on natural resources,
4including, but not limited to, impacts on water quality and riparian
5habitat, rare plant species, sensitive species, fisheries, and
6declining natural communities, including oak woodlands, vernal
7pools, native grasslands, and serpentine habitat.

8
(f) Take into consideration, where applicable, any local, state,
9and regional conservation priorities as may be described in
10existing conservation plans, including, but not limited to, the state
11wildlife action plan, habitat conservation plans, natural community
12conservation plans, climate change adaptation plans, and species
13recovery plans.

14
(g) Identify and quantify the net change in greenhouse gas
15emissions and changes to sequestration potential achieved through
16implementation of the plan.

17
(h) Provide for endowments to manage and monitor acquired
18or protected lands, waterways, or fisheries, as necessary.

19
(i) Where available and biologically appropriate, provide for
20the purchase of mitigation credits at mitigation banks or
21conservation banks or for the payment of mitigation fees within
22established mitigation programs.

23
(j) Analyze the cost-effectiveness of available mitigation
24alternatives both in terms of environmental benefits and improved
25project delivery and certainty.

26
(k) Include measurable performance objectives and a monitoring
27and evaluation program.

28

begin insert21207.end insert  

(a) A transportation agency may identify planned
29transportation projects for the purpose of including those projects
30in a regional advance mitigation plan or for other advance
31mitigation under the program. The transportation agency shall
32provide an analysis and estimate of the projects’ direct, indirect,
33and cumulative impacts. The analysis and estimate shall include
34all available relevant information regarding those impacts, and
35the analysis shall be at a level of detail commensurate with the
36available relevant information. Detailed analysis shall not be
37required where relevant detailed information about the projects’
38impacts is not available.

P39   1
(b) The agency may enter a memorandum of understanding or
2other agreement with a transportation agency to do all of the
3following:

4
(1) Specify terms consistent with this division under which the
5program will provide advance mitigation for the identified planned
6transportation projects.

7
(2) Establish guidelines for communication and sharing of
8relevant information necessary to optimize coordination and
9collaboration between the agency and the transportation agency.

10
(3) Establish guidelines for strategically locating mitigation
11and conservation sites to maximize the biological benefit and
12conservation value to target species, habitats, and aquatic
13resources.

14

begin insert21208.end insert  

The Advance Transportation Project Mitigation Fund
15is established in the State Treasury. Notwithstanding any other
16law, the moneys in the fund shall be available upon appropriation
17by the Legislature to the agency only for the administration and
18implementation of the program, and shall not be subject to
19appropriation, reversion, or transfer for any other purpose. All
20moneys provided by transportation agencies to reimburse program
21expenditures pursuant to subdivision (f) of Section 21205 or in
22advance of anticipated mitigation actions shall be deposited in the
23fund.

24

begin insert21209.end insert  

The program is intended to improve the efficiency and
25efficacy of mitigation only and is not intended to supplant the
26requirements of the California Environmental Quality Act (Division
2713 (commencing with Section 21000)) or any other environmental
28law. The identification of planned transportation projects and the
29identification of mitigation projects or measures for planned
30transportation projects under this division does not imply or
31require approval of those projects for purposes of the California
32Environmental Quality Act (Division 13 (commencing with Section
3321000)) or any other environmental law.

end insert
34begin insert

begin insertSEC. 19.end insert  

end insert

begin insertSection 99312.1 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is
35amended to read:end insert

36

99312.1.  

begin insert(a)end insertbegin insertend insertRevenues transferred to the Public Transportation
37Account pursuant tobegin insert Section 39719 of the Health and Safety Code
38andend insert
Sections 6051.8 and 6201.8 of the Revenue and Taxation Code
39are hereby continuously appropriated to the Controller for
40allocation as follows:

begin delete

P40   1(a)

end delete

2begin insert(1)end insert Fifty percent for allocation to transportation planning
3agencies, county transportation commissions, and the San Diego
4Metropolitan Transit Development Board pursuant to Section
599314.

begin delete

6(b)

end delete

7begin insert(2)end insert Fifty percent for allocation to transportation agencies, county
8transportation commissions, and the San Diego Metropolitan
9Transit Development Board for purposes of Section 99313.

begin delete

10 For

end delete

11begin insert(b)end insertbegin insertend insertbegin insertForend insert purposes of this chapter, the revenues allocated pursuant
12to this section shall be subject to the same requirements as revenues
13allocated pursuant to subdivisions (b) and (c), as applicable, of
14Section 99312.

begin insert

15
(c) The revenues transferred to the Public Transportation
16Account pursuant to subdivision (c) of Section 6051.8 of the
17Revenue and Taxation Code and subdivision (c) of Section 6201.8
18of the Revenue and Taxation Code, upon allocation pursuant to
19Sections 99313 and 99314, shall only be expended on transit
20capital projects, or on services to maintain or repair a transit
21operator’s existing transit vehicle fleet or existing transit facilities,
22including rehabilitation or modernization of existing vehicles or
23facilities, or for the design, acquisition, and construction of new
24vehicles or facilities that improve existing transit services or enable
25the implementation of future planned transit services, or on services
26that complement local efforts for repair and improvement of local
27transportation infrastructure. The audit of transit operator finances
28required pursuant to Section 99245 shall verify that these revenues
29have been expended in conformance with these specific
30requirements and all other generally applicable requirements.

end insert
31begin insert

begin insertSEC. 20.end insert  

end insert

begin insertSection 6051.8 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
32amended to read:end insert

33

6051.8.  

(a) Except as provided by Section 6357.3, in addition
34to the taxes imposed by this part, for the privilege of selling
35tangible personal property at retail a tax is hereby imposed upon
36all retailers at the rate of 1.75 percent of the gross receipts of any
37retailer from the sale of all diesel fuel, as defined in Section 60022,
38sold at retail in this begin delete state on and after the operative date of this
39subdivision.end delete
begin insert state.end insert

P41   1(b) Notwithstanding subdivision (a),begin delete for the 2011-12 fiscal year
2only, theend delete
begin insert commencing July 1, 2016, theend insert rate referenced in
3subdivision (a) shall bebegin delete 1.87end deletebegin insert increased to 5.25end insert percent.

begin delete

4(c) Notwithstanding subdivision (a), for the 2012-13 fiscal year
5only, the rate referenced in subdivision (a) shall be 2.17 percent.

end delete
begin delete

6(d) Notwithstanding subdivision (a), for the 2013-14 fiscal year
7only, the rate referenced in subdivision (a) shall be 1.94 percent.

end delete
begin delete

8(e)

end delete

9begin insert(c)end insertbegin insertend insertbegin insert(1)end insert Notwithstanding subdivision (b) of Section 7102, all of
10the revenues, less refunds, collected pursuant to this section shall
11be estimated by the State Board of Equalization, with the
12concurrence of the Department of Finance,begin delete andend deletebegin insert and, except as
13otherwise provided in paragraph (2), shall beend insert
transferred quarterly
14to the Public Transportation Account in the State Transportation
15Fund for allocation pursuant to Section 99312.1 of the Public
16Utilities Code.

begin delete

17(f) Subdivisions (a) to (e), inclusive, shall become operative on
18July 1, 2011.

end delete
begin insert

19
(2) Beginning July 1, 2016, the portion of net revenues
20attributable to a rate of 1.75 percent shall be transferred quarterly
21to the Transportation Debt Service Fund for expenditure pursuant
22to paragraph (1) of subdivision (e) of Section 16965 of the
23Government Code.

end insert
24begin insert

begin insertSEC. 21.end insert  

end insert

begin insertSection 6201.8 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
25amended to read:end insert

26

6201.8.  

(a) Except as provided by Section 6357.3, in addition
27to the taxes imposed by this part, an excise tax is hereby imposed
28on the storage, use, or other consumption in this state of diesel
29fuel, as defined in Section 60022, at the rate of 1.75 percent of the
30sales price of the dieselbegin delete fuel on and after the operative date of this
31subdivision.end delete
begin insert fuel.end insert

32(b) Notwithstanding subdivision (a),begin delete for the 2011-12 fiscal year
33only, theend delete
begin insert commencing July 1, 2016, theend insert rate referenced in
34subdivision (a) shall bebegin delete 1.87end deletebegin insert increased to 5.25end insert percent.

begin delete

35(c) Notwithstanding subdivision (a), for the 2012-13 fiscal year
36only, the rate referenced in subdivision (a) shall be 2.17 percent.

end delete
begin delete

37(d) Notwithstanding subdivision (a), for the 2013-14 fiscal year
38only, the rate referenced in subdivision (a) shall be 1.94 percent.

end delete
begin delete

39(e)

end delete

P42   1begin insert(c)end insertbegin insertend insertbegin insert(1)end insert Notwithstanding subdivision (b) of Section 7102, all of
2the revenues, less refunds, collected pursuant to this section shall
3be estimated by the State Board of Equalization, with the
4concurrence of the Department of Finance,begin delete andend deletebegin insert and, except as
5otherwise provided in paragraph (2), shall beend insert
transferred quarterly
6to the Public Transportation Account in the State Transportation
7Fund for allocation pursuant to Section 99312.1 of the Public
8Utilities Code.

begin delete

9(f) Subdivisions (a) to (e), inclusive, shall become operative on
10July 1, 2011.

end delete
begin insert

11
(2) Beginning July 1, 2016, the portion of net revenues
12attributable to a rate of 1.75 percent shall be transferred quarterly
13to the Transportation Debt Service Fund for expenditure pursuant
14to paragraph (1) of subdivision (e) of Section 16965 of the
15Government Code.

end insert
16

begin deleteSEC. 7.end delete
17
begin insertSEC. 22.end insert  

Section 7360 of the Revenue and Taxation Code is
18amended to read:

19

7360.  

(a) (1)  (A)  A tax of eighteen cents ($0.18) is hereby
20imposed upon each gallon of fuel subject to the tax in Sections
217362, 7363, and 7364.

22(B) In addition to the tax imposed pursuant to subparagraph
23(A), on and after the first day of the first calendar quarter that
24occurs 90 days after the effective date of the act adding this
25subparagraph, a tax of twelve cents ($0.12) is hereby imposed
26upon each gallon of fuel, other than aviation gasoline, subject to
27the tax in Sections 7362, 7363, and 7364.

28(2) If the federal fuel tax is reduced below the rate of nine cents
29($0.09) per gallon and federal financial allocations to this state for
30highway and exclusive public mass transit guideway purposes are
31reduced or eliminated correspondingly, the tax rate imposed by
32subparagraph (A) of paragraph (1), on and after the date of the
33reduction, shall be recalculated by an amount so that the combined
34state rate under subparagraph (A) of paragraph (1) and the federal
35tax rate per gallon equal twenty-seven cents ($0.27).

36(3) If any person or entity is exempt or partially exempt from
37the federal fuel tax at the time of a reduction, the person or entity
38shall continue to be so exempt under this section.

39(b) On and after July 1, 2010, in addition to the tax imposed by
40subdivision (a), a tax is hereby imposed upon each gallon of motor
P43   1vehicle fuel, other than aviation gasoline, subject to the tax in
2Sections 7362, 7363, and 7364 in an amount equal to seventeen
3and three-tenths cents ($0.173) per gallon.

4(c) Beginning July 1, 2019, and every third year thereafter, the
5State Board of Equalization shall recompute the rates of the taxes
6imposed by this section. That computation shall be made as
7follows:

8(1) The Department of Finance shall transmit to the State Board
9of Equalization the percentage change in the California Consumer
10Price Index for all items from November of four calendar years
11prior to November of the prior calendar year, no later than January
1231, 2019, and January 31 of every third year thereafter.begin insert The
13Department of Finance shall also transmit to the State Board of
14 Equalization the estimated percentage change in the average fuel
15efficiency of the overall California motor vehicle fleet over the
16same periods of time.end insert

17(2) The State Board of Equalization shall do all of the following:

18(A) Compute an inflation adjustment factor by adding 100
19percent to thebegin insert applicableend insert percentage change figure that is furnished
20pursuant to paragraph (1) and dividing the result by 100.

begin insert

21
(B) Compute a fleet fuel efficiency factor by adding 100 percent
22to the applicable percentage change figure furnished pursuant to
23paragraph (1) and dividing the result by 100.

end insert
begin delete

24(B)

end delete

25begin insert(C)end insert Multiply the preceding tax rate per gallon by thebegin insert sum of theend insert
26 inflation adjustment factorbegin insert and the fleet fuel efficiency factorend insert
27 determined inbegin delete subparagraphend deletebegin insert subparagraphsend insert (A)begin insert and (B)end insert and round
28off the resulting product to the nearest tenth of a cent.

begin delete

29(C)

end delete

30begin insert(D)end insert Make its determination of the new rate no later than March
311 of the same year as the effective date of the new rate.

32begin insert

begin insertSEC. 23.end insert  

end insert

begin insertSection 8352.4 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
33amended to read:end insert

34

8352.4.  

(a) Subject to Sections 8352 and 8352.1, and except
35as otherwise provided in subdivision (b), there shall be transferred
36from the money deposited to the credit of the Motor Vehicle Fuel
37Account to the Harbors and Watercraft Revolving Fund, for
38expenditure in accordance with Division 1 (commencing with
39Section 30) of the Harbors and Navigation Code, the sum of six
40million six hundred thousand dollars ($6,600,000) per annum,
P44   1representing the amount of money in the Motor Vehicle Fuel
2Account attributable to taxes imposed on distributions of motor
3vehicle fuel used or usable in propelling vessels. The actual amount
4shall be calculated using the annual reports of registered boats
5prepared by the Department of Motor Vehicles for the United
6States Coast Guard and the formula and method of the December
71972 report prepared for this purpose and submitted to the
8Legislature on December 26, 1972, by the Director of
9Transportation. If the amount transferred during each fiscal year
10is in excess of the calculated amount, the excess shall be
11retransferred from the Harbors and Watercraft Revolving Fund to
12the Motor Vehicle Fuel Account. If the amount transferred is less
13than the amount calculated, the difference shall be transferred from
14the Motor Vehicle Fuel Account to the Harbors and Watercraft
15Revolving Fund. No adjustment shall be made if the computed
16difference is less than fifty thousand dollars ($50,000), and the
17amount shall be adjusted to reflect any temporary or permanent
18increase or decrease that may be made in the rate under the Motor
19Vehicle Fuel Tax Law. Payments pursuant to this section shall be
20made prior to payments pursuant to Section 8352.2.

21(b) Commencing July 1,begin delete 2012,end deletebegin insert 2016,end insert the revenues attributable
22to the taxes imposed pursuant to subdivision (b) of Section 7360
23and Section 7361.1 and otherwise to be deposited in the Harbors
24and Watercraft Revolving Fund pursuant to subdivision (a) shall
25instead be transferred to thebegin delete General Fund. The revenues
26attributable to the taxes imposed pursuant to subdivision (b) of
27Section 7360 and Section 7361.1 that were deposited in the Harbors
28and Watercraft Revolving Fund in the 2010-11 and 2011-12 fiscal
29years shall be transferred to the General Fund.end delete
begin insert Highway Users Tax
30Account for distribution pursuant to Section 2103.2 of the Streets
31and Highways Code.end insert

32begin insert

begin insertSEC. 24.end insert  

end insert

begin insertSection 8352.5 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
33amended to read:end insert

34

8352.5.  

(a) (1) Subject to Sections 8352 and 8352.1, and
35except as otherwise provided in subdivision (b), there shall be
36transferred from the money deposited to the credit of the Motor
37Vehicle Fuel Account to the Department of Food and Agriculture
38Fund, during the second quarter of each fiscal year, an amount
39equal to the estimate contained in the most recent report prepared
40pursuant to this section.

P45   1(2) The amounts are not subject to Section 6357 with respect
2to the collection of sales and use taxes thereon, and represent the
3portion of receipts in the Motor Vehicle Fuel Account during a
4calendar year that were attributable to agricultural off-highway
5use of motor vehicle fuel which is subject to refund pursuant to
6Section 8101, less gross refunds allowed by the Controller during
7the fiscal year ending June 30th following the calendar year to
8persons entitled to refunds for agricultural off-highway use
9pursuant to Section 8101. Payments pursuant to this section shall
10be made prior to payments pursuant to Section 8352.2.

11(b) Commencing July 1,begin delete 2012,end deletebegin insert 2016,end insert the revenues attributable
12to the taxes imposed pursuant to subdivision (b) of Section 7360
13and Section 7361.1 and otherwise to be deposited in the
14Department of Food and Agriculture Fund pursuant to subdivision
15(a) shall instead be transferred to thebegin delete General Fund. The revenues
16attributable to the taxes imposed pursuant to subdivision (b) of
17Section 7360 and Section 7361.1 that were deposited in the
18Department of Food and Agriculture Fund in the 2010-11 and
192011-12 fiscal years shall be transferred to the General Fund.end delete

20
begin insert Highway Users Tax Account for distribution pursuant to Section
212103.2 of the Streets and Highways Code.end insert

22(c) On or before September 30, 2012, and on or before
23September 30 of each even-numbered year thereafter, the Director
24of Transportation and the Director of Food and Agriculture shall
25jointly prepare, or cause to be prepared, a report setting forth the
26current estimate of the amount of money in the Motor Vehicle
27Fuel Account attributable to agricultural off-highway use of motor
28vehicle fuel, which is subject to refund pursuant to Section 8101
29less gross refunds allowed by the Controller to persons entitled to
30refunds for agricultural off-highway use pursuant to Section 8101;
31and they shall submit a copy of the report to the Legislature.

32begin insert

begin insertSEC. 25.end insert  

end insert

begin insertSection 8352.6 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
33amended to read:end insert

34

8352.6.  

(a) (1) Subject to Section 8352.1, and except as
35otherwise provided in paragraphs (2) and (3), on the first day of
36every month, there shall be transferred from moneys deposited to
37the credit of the Motor Vehicle Fuel Account to the Off-Highway
38Vehicle Trust Fund created by Section 38225 of the Vehicle Code
39an amount attributable to taxes imposed upon distributions of motor
40vehicle fuel used in the operation of motor vehicles off highway
P46   1and for which a refund has not been claimed. Transfers made
2pursuant to this section shall be made prior to transfers pursuant
3to Section 8352.2.

4(2) Commencing July 1,begin delete 2012,end deletebegin insert 2016,end insert the revenues attributable
5to the taxes imposed pursuant to subdivision (b) of Section 7360
6and Section 7361.1 and otherwise to be deposited in the
7Off-Highway Vehicle Trust Fund pursuant to paragraph (1) shall
8instead be transferred to thebegin delete General Fund. The revenues
9attributable to the taxes imposed pursuant to subdivision (b) of
10Section 7360 and Section 7361.1 that were deposited in the
11Off-Highway Vehicle Trust Fund in the 2010-11 and 2011-12
12fiscal years shall be transferred to the General Fund.end delete
begin insert Highway
13Users Tax Account for distribution pursuant to Section 2103.2 of
14the Streets and Highways Code.end insert

15(3) The Controller shall withhold eight hundred thirty-three
16thousand dollars ($833,000) from the monthly transfer to the
17Off-Highway Vehicle Trust Fund pursuant to paragraph (1), and
18transfer that amount to the General Fund.

19(b) The amount transferred to the Off-Highway Vehicle Trust
20Fund pursuant to paragraph (1) of subdivision (a), as a percentage
21of the Motor Vehicle Fuel Account, shall be equal to the percentage
22transferred in the 2006-07 fiscal year. Every five years, starting
23in the 2013-14 fiscal year, the percentage transferred may be
24adjusted by the Department of Transportation in cooperation with
25the Department of Parks and Recreation and the Department of
26Motor Vehicles. Adjustments shall be based on, but not limited
27to, the changes in the following factors since the 2006-07 fiscal
28year or the last adjustment, whichever is more recent:

29(1) The number of vehicles registered as off-highway motor
30vehicles as required by Division 16.5 (commencing with Section
3138000) of the Vehicle Code.

32(2) The number of registered street-legal vehicles that are
33anticipated to be used off highway, including four-wheel drive
34vehicles, all-wheel drive vehicles, and dual-sport motorcycles.

35(3) Attendance at the state vehicular recreation areas.

36(4) Off-highway recreation use on federal lands as indicated by
37the United States Forest Service’s National Visitor Use Monitoring
38and the United States Bureau of Land Management’s Recreation
39Management Information System.

P47   1(c) It is the intent of the Legislature that transfers from the Motor
2Vehicle Fuel Account to the Off-Highway Vehicle Trust Fund
3should reflect the full range of motorized vehicle use off highway
4for both motorized recreation and motorized off-road access to
5other recreation opportunities. Therefore, the Legislature finds that
6the fuel tax baseline established in subdivision (b), attributable to
7off-highway estimates of use as of the 2006-07 fiscal year,
8accounts for the three categories of vehicles that have been found
9over the years to be users of fuel for off-highway motorized
10recreation or motorized access to nonmotorized recreational
11pursuits. These three categories are registered off-highway
12motorized vehicles, registered street-legal motorized vehicles used
13off highway, and unregistered off-highway motorized vehicles.

14(d) It is the intent of the Legislature that the off-highway motor
15vehicle recreational use to be determined by the Department of
16Transportation pursuant to paragraph (2) of subdivision (b) be that
17usage by vehicles subject to registration under Division 3
18(commencing with Section 4000) of the Vehicle Code, for
19recreation or the pursuit of recreation on surfaces where the use
20of vehicles registered under Division 16.5 (commencing with
21Section 38000) of the Vehicle Code may occur.

22(e) In the 2014-15 fiscal year, the Department of Transportation,
23in consultation with the Department of Parks and Recreation and
24the Department of Motor Vehicles, shall undertake a study to
25determine the appropriate adjustment to the amount transferred
26pursuant to subdivision (b) and to update the estimate of the amount
27attributable to taxes imposed upon distributions of motor vehicle
28fuel used in the operation of motor vehicles off highway and for
29which a refund has not been claimed. The department shall provide
30a copy of this study to the Legislature no later than January 1,
312016.

32

begin deleteSEC. 8.end delete
33
begin insertSEC. 26.end insert  

Section 60050 of the Revenue and Taxation Code is
34amended to read:

35

60050.  

(a) (1) A tax of thirteen cents ($0.13) is hereby
36imposed upon each gallon of diesel fuel subject to the tax in
37Sections 60051, 60052, and 60058.

38(2) If the federal fuel tax is reduced below the rate of fifteen
39cents ($0.15) per gallon and federal financial allocations to this
40state for highway and exclusive public mass transit guideway
P48   1purposes are reduced or eliminated correspondingly, the tax rate
2imposed by paragraph (1) shall be increased by an amount so that
3the combined state rate under paragraph (1) and the federal tax
4rate per gallon equal what it would have been in the absence of
5the federal reduction.

6(3) If any person or entity is exempt or partially exempt from
7the federal fuel tax at the time of a reduction, the person or entity
8shall continue to be exempt under this section.

9(b) In addition to the tax imposed pursuant to subdivision (a),
10on and after the first day of the first calendar quarter that occurs
1190 days after the effective date of the act adding this subdivision,
12an additional tax of twenty-two cents ($0.22) is hereby imposed
13upon each gallon of diesel fuel subject to the tax in Sections 60051,
1460052, and 60058.

15(c) Beginning July 1, 2019, and every third year thereafter, the
16State Board of Equalization shall recompute the rates of the taxes
17imposed by this section. That computation shall be made as
18follows:

19(1) The Department of Finance shall transmit to the State Board
20of Equalization the percentage change in the California Consumer
21Price Index for all items from November of four calendar years
22prior to November of the prior calendar year, no later than January
2331, 2019, and January 31 of every third year thereafter.begin insert The
24Department of Finance shall also transmit to the State Board of
25Equalization the estimated percentage change in the average fuel
26efficiency of the overall California motor vehicle fleet over the
27same periods of time.end insert

28(2) The State Board of Equalization shall do all of the following:

29(A) Compute an inflation adjustment factor by adding 100
30percent to thebegin insert applicableend insert percentage change figure that is furnished
31pursuant to paragraph (1) and dividing the result by 100.

begin insert

32
(B) Compute a fleet fuel efficiency factor by adding 100 percent
33to the applicable percentage change figure furnished pursuant to
34paragraph (1) and dividing the result by 100.

end insert
begin delete

35(B)

end delete

36begin insert(C)end insert Multiply the preceding tax rate per gallon by thebegin insert sum of theend insert
37 inflation adjustment factorbegin insert and the fleet fuel efficiency factorend insert
38 determined inbegin delete subparagraphend deletebegin insert subparagraphsend insert (A)begin insert and (B)end insert and round
39off the resulting product to the nearest tenth of a cent.

begin delete

40(C)

end delete

P49   1begin insert(D)end insert Make its determination of the new rate no later than March
21 of the same year as the effective date of the new rate.

3begin insert

begin insertSEC. 27.end insert  

end insert

begin insertSection 143 of the end insertbegin insertStreets and Highways Codeend insertbegin insert is
4amended to read:end insert

5

143.  

(a) begin delete(1) end deletebegin deleteend deletebegin insertFor purposes of this section, the following terms
6shall have the following meanings:end insert

7begin insert(1)end insertbegin insertend insert“Best value” means a value determined by objective criteria,
8including, but not limited to, price, features, functions, life-cycle
9costs, and other criteria deemed appropriate by the department or
10the regional transportation agency.

11(2) “Contracting entity or lessee” means a public or private
12entity, or consortia thereof, that has entered into a comprehensive
13development lease agreement with the department or a regional
14transportation agency for a transportation project pursuant to this
15section.

16(3) “Design-build” means a procurement process in which both
17the design and construction of a project are procured from a single
18entity.

19(4) “Regional transportation agency” means any of the
20following:

21(A) A transportation planning agency as defined in Section
2229532 or 29532.1 of the Government Code.

23(B) A county transportation commission as defined in Section
24130050, 130050.1, or 130050.2 of the Public Utilities Code.

25(C) Any other local or regional transportation entity that is
26designated by statute as a regional transportation agency.

27(D) A joint exercise of powers authority as defined in Chapter
285 (commencing with Section 6500) of Division 7 of Title 1 of the
29Government Code, with the consent of a transportation planning
30agency or a county transportation commission for the jurisdiction
31in which the transportation project will be developed.

begin insert

32
(E) The Santa Clara Valley Transportation Authority established
33pursuant to Part 12 (commencing with Section 100000) of Division
3410 of the Public Utilities Code.

end insert

35(5) “Public Infrastructure Advisory Commission” means a unit
36or auxiliary organization established by the Transportation Agency
37that advises the department and regional transportation agencies
38in developing transportation projects through performance-based
39infrastructure partnerships.

P50   1(6) “Transportation project” means one or more of the following:
2planning, design, development, finance, construction,
3reconstruction, rehabilitation, improvement, acquisition, lease,
4operation, or maintenance of highway, public street, rail, or related
5facilities supplemental to existing facilities currently owned and
6operated by the department or regional transportation agencies
7that is consistent with the requirements of subdivision (c).

8(b) (1) The Public Infrastructure Advisory Commission shall
9do all of the following:

10(A) Identify transportation project opportunities throughout the
11state.

12(B) Research and document similar transportation projects
13throughout the state, nationally, and internationally, and further
14identify and evaluate lessons learned from these projects.

15(C) Assemble and make available to the department or regional
16transportation agencies a library of information, precedent,
17research, and analysis concerning infrastructure partnerships and
18related types of public-private transactions for public infrastructure.

19(D) Advise the department and regional transportation agencies,
20upon request, regarding infrastructure partnership suitability and
21best practices.

22(E) Provide, upon request, procurement-related services to the
23department and regional transportation agencies for infrastructure
24partnership.

25(2) The Public Infrastructure Advisory Commission may charge
26a fee to the department and regional transportation agencies for
27the services described in subparagraphs (D) and (E) of paragraph
28(1), the details of which shall be articulated in an agreement entered
29into between the Public Infrastructure Advisory Commission and
30the department or the regional transportation agency.

31(c) (1) Notwithstanding any other provision of law, only the
32department, in cooperation with regional transportation agencies,
33and regional transportation agencies, may solicit proposals, accept
34unsolicited proposals, negotiate, and enter into comprehensive
35development lease agreements with public or private entities, or
36consortia thereof, for transportation projects.

37(2) Projects proposed pursuant to this section and associated
38lease agreements shall be submitted to the California Transportation
39Commission. The commission, at a regularly scheduled public
40hearing, shall select the candidate projects from projects nominated
P51   1by the department or a regional transportation agency after
2reviewing the nominations for consistency with paragraphs (3)
3and (4). Approved projects may proceed with the process described
4in paragraph (5).

5(3) The projects authorized pursuant to this section shall be
6primarily designed to achieve the following performance
7objectives:

8(A) Improve mobility by improving travel times or reducing
9the number of vehicle hours of delay in the affected corridor.

10(B) Improve the operation or safety of the affected corridor.

11(C) Provide quantifiable air quality benefits for the region in
12which the project is located.

13(4) In addition to meeting the requirements of paragraph (3),
14the projects authorized pursuant to this section shall address a
15known forecast demand, as determined by the department or
16regional transportation agency.

17(5) At least 60 days prior to executing a final lease agreement
18authorized pursuant to this section, the department or regional
19transportation agency shall submit the agreement to the Legislature
20and the Public Infrastructure Advisory Commission for review.
21Prior to submitting a lease agreement to the Legislature and the
22Public Infrastructure Advisory Commission, the department or
23regional transportation agency shall conduct at least one public
24hearing at a location at or near the proposed facility for purposes
25of receiving public comment on the lease agreement. Public
26comments made during this hearing shall be submitted to the
27Legislature and the Public Infrastructure Advisory Commission
28with the lease agreement. The Secretary of Transportation or the
29chairperson of the Senate or Assembly fiscal committees or policy
30committees with jurisdiction over transportation matters may, by
31written notification to the department or regional transportation
32agency, provide any comments about the proposed agreement
33within the 60-day period prior to the execution of the final
34agreement. The department or regional transportation agency shall
35consider those comments prior to executing a final agreement and
36shall retain the discretion for executing the final lease agreement.

37(d) For the purpose of facilitating those projects, the agreements
38between the parties may include provisions for the lease of
39rights-of-way in, and airspace over or under, highways, public
40streets, rail, or related facilities for the granting of necessary
P52   1easements, and for the issuance of permits or other authorizations
2to enable the construction of transportation projects. Facilities
3subject to an agreement under this section shall, at all times, be
4owned by the department or the regional transportation agency,
5as appropriate. For department projects, the commission shall
6certify the department’s determination of the useful life of the
7project in establishing the lease agreement terms. In consideration
8therefor, the agreement shall provide for complete reversion of the
9leased facility, together with the right to collect tolls and user fees,
10to the department or regional transportation agency, at the
11expiration of the lease at no charge to the department or regional
12transportation agency. At the time of the reversion, the facility
13shall be delivered to the department or regional transportation
14agency, as applicable, in a condition that meets the performance
15and maintenance standards established by the department or
16regional transportation agency and that is free of any encumbrance,
17lien, or other claims.

18(e) Agreements between the department or regional
19transportation agency and the contracting entity or lessee shall
20authorize the contracting entity or lessee to use a design-build
21method of procurement for transportation projects, subject to the
22requirements for utilizing such a method contained in Chapter 6.5
23(commencing with Sectionbegin delete 6800)end deletebegin insert 6820)end insert of Part 1 of Division 2 of
24the Public Contract Code, other than Sectionsbegin delete 6802, 6803, and
256813end delete
begin insert 6821 and 6822end insert of thatbegin delete code, if those provisions are enacted
26by the Legislature during the 2009-10 Regular Session, or a
272009-10 extraordinary session.end delete
begin insert code.end insert

28(f) (1) (A) Notwithstanding any other provision of this chapter,
29for projects on the state highway system, the department is the
30responsible agency for the performance of project development
31services, including performance specifications, preliminary
32engineering, prebid services, the preparation of project reports and
33environmental documents, and construction inspection services.
34The department is also the responsible agency for the preparation
35of documents that may include, but need not be limited to, the size,
36 type, and desired design character of the project, performance
37specifications covering the quality of materials, equipment, and
38workmanship, preliminary plans, and any other information deemed
39necessary to describe adequately the needs of the department or
40regional transportation agency.

P53   1(B) The department may use department employees or
2consultants to perform the services described in subparagraph (A),
3consistent with Article XXII of the California Constitution.
4Department resources, including personnel requirements, necessary
5for the performance of those services shall be included in the
6department’s capital outlay support program for workload purposes
7in the annual Budget Act.

8(2) The department or a regional transportation agency may
9exercise any power possessed by it with respect to transportation
10projects to facilitate the transportation projects pursuant to this
11section. The department, regional transportation agency, and other
12state or local agencies may provide services to the contracting
13entity or lessee for which the public entity is reimbursed, including,
14but not limited to, planning, environmental planning, environmental
15certification, environmental review, preliminary design, design,
16right-of-way acquisition, construction, maintenance, and policing
17of these transportation projects. The department or regional
18transportation agency, as applicable, shall regularly inspect the
19facility and require the contracting entity or lessee to maintain and
20operate the facility according to adopted standards. Except as may
21otherwise be set forth in the lease agreement, the contracting entity
22or lessee shall be responsible for all costs due to development,
23maintenance, repair, rehabilitation, and reconstruction, and
24operating costs.

25(g) (1) In selecting private entities with which to enter into
26 these agreements, notwithstanding any other provision of law, the
27department and regional transportation agencies may utilize, but
28are not limited to utilizing, one or more of the following
29procurement approaches:

30(A) Solicitations of proposals for defined projects and calls for
31project proposals within defined parameters.

32(B) Prequalification and short-listing of proposers prior to final
33evaluation of proposals.

34(C) Final evaluation of proposals based on qualifications and
35best value. The California Transportation Commission shall
36develop and adopt criteria for making that evaluation prior to
37evaluation of a proposal.

38(D) Negotiations with proposers prior to award.

39(E) Acceptance of unsolicited proposals, with issuance of
40requests for competing proposals. Neither the department nor a
P54   1regional transportation agency may award a contract to an
2unsolicited bidder without receiving at least one other responsible
3bid.

4(2) When evaluating a proposal submitted by the contracting
5entity or lessee, the department or the regional transportation
6agency may award a contract on the basis of the lowest bid or best
7value.

8(h) The contracting entity or lessee shall have the following
9qualifications:

10(1) Evidence that the members of the contracting entity or lessee
11have completed, or have demonstrated the experience, competency,
12capability, and capacity to complete, a project of similar size,
13scope, or complexity, and that proposed key personnel have
14sufficient experience and training to competently manage and
15 complete the design and construction of the project, and a financial
16statement that ensures that the contracting entity or lessee has the
17capacity to complete the project.

18(2) The licenses, registration, and credentials required to design
19and construct the project, including, but not limited to, information
20on the revocation or suspension of any license, credential, or
21registration.

22(3) Evidence that establishes that members of the contracting
23entity or lessee have the capacity to obtain all required payment
24and performance bonding, liability insurance, and errors and
25omissions insurance.

26(4) Evidence that the contracting entity or lessee has workers’
27compensation experience, history, and a worker safety program
28of members of the contracting entity or lessee that is acceptable
29to the department or regional transportation agency.

30(5) A full disclosure regarding all of the following with respect
31to each member of the contracting entity or lessee during the past
32five years:

33(A) Any serious or willful violation of Part 1 (commencing with
34Section 6300) of Division 5 of the Labor Code or the federal
35Occupational Safety and Health Act of 1970 (Public Law 91-596).

36(B) Any instance where members of the contracting entity or
37lessee were debarred, disqualified, or removed from a federal,
38state, or local government public works project.

39(C) Any instance where members of the contracting entity or
40lessee, or its owners, officers, or managing employees submitted
P55   1a bid on a public works project and were found to be nonresponsive
2or were found by an awarding body not to be a responsible bidder.

3(D) Any instance where members of the contracting entity or
4lessee, or its owners, officers, or managing employees defaulted
5on a construction contract.

6(E) Any violations of the Contractors’ State License Law
7(Chapter 9 (commencing with Section 7000) of Division 3 of the
8Business and Professions Code), including, but not limited to,
9alleged violations of federal or state law regarding the payment of
10wages, benefits, apprenticeship requirements, or personal income
11tax withholding, or Federal Insurance Contributions Act (FICA)
12withholding requirements.

13(F) Any bankruptcy or receivership of any member of the
14contracting entity or lessee, including, but not limited to,
15information concerning any work completed by a surety.

16(G) Any settled adverse claims, disputes, or lawsuits between
17the owner of a public works project and any member of the
18contracting entity or lessee during the five years preceding
19submission of a bid under this article, in which the claim,
20settlement, or judgment exceeds fifty thousand dollars ($50,000).
21Information shall also be provided concerning any work completed
22by a surety during this five-year period.

23(H) If the contracting entity or lessee is a partnership, joint
24venture, or an association that is not a legal entity, a copy of the
25agreement creating the partnership or association that specifies
26that all general partners, joint venturers, or association members
27agree to be fully liable for the performance under the agreement.

28(i) No agreement entered into pursuant to this section shall
29infringe on the authority of the department or a regional
30transportation agency to develop, maintain, repair, rehabilitate,
31operate, or lease any transportation project. Lease agreements may
32provide for reasonable compensation to the contracting entity or
33lessee for the adverse effects on toll revenue or user fee revenue
34due to the development, operation, or lease of supplemental
35transportation projects with the exception of any of the following:

36(1) Projects identified in regional transportation plans prepared
37pursuant to Section 65080 of the Government Code.

38(2) Safety projects.

39(3) Improvement projects that will result in incidental capacity
40increases.

P56   1(4) Additional high-occupancy vehicle lanes or the conversion
2of existing lanes to high-occupancy vehicle lanes.

3(5) Projects located outside the boundaries of a public-private
4partnership project, to be defined by the lease agreement.

5However, compensation to a contracting entity or lessee shall
6only be made after a demonstrable reduction in use of the facility
7resulting in reduced toll or user fee revenues, and may not exceed
8the difference between the reduction in those revenues and the
9amount necessary to cover the costs of debt service, including
10principal and interest on any debt incurred for the development,
11operation, maintenance, or rehabilitation of the facility.

12(j) (1) Agreements entered into pursuant to this section shall
13authorize the contracting entity or lessee to impose tolls and user
14fees for use of a facility constructed by it, and shall require that
15over the term of the lease the toll revenues and user fees be applied
16to payment of the capital outlay costs for the project, the costs
17 associated with operations, toll and user fee collection,
18administration of the facility, reimbursement to the department or
19other governmental entity for the costs of services to develop and
20maintain the project, police services, and a reasonable return on
21investment. The agreement shall require that, notwithstanding
22Sections 164, 188, and 188.1, any excess toll or user fee revenue
23either be applied to any indebtedness incurred by the contracting
24entity or lessee with respect to the project, improvements to the
25project, or be paid into the State Highway Account, or for all three
26purposes, except that any excess toll revenue under a lease
27agreement with a regional transportation agency may be paid to
28the regional transportation agency for use in improving public
29transportation in and near the project boundaries.

30(2) Lease agreements shall establish specific toll or user fee
31rates. Any proposed increase in those rates not otherwise
32established or identified in the lease agreement during the term of
33the agreement shall first be approved by the department or regional
34transportation agency, as appropriate, after at least one public
35hearing conducted at a location near the proposed or existing
36facility.

37(3) The collection of tolls and user fees for the use of these
38facilities may be extended by the commission or regional
39transportation agency at the expiration of the lease agreement.
40However, those tolls or user fees shall not be used for any purpose
P57   1other than for the improvement, continued operation, or
2maintenance of the facility.

3(k) Agreements entered into pursuant to this section shall include
4indemnity, defense, and hold harmless provisions agreed to by the
5department or regional transportation agency and the contracting
6entity or lessee, including provisions for indemnifying the State
7of California or the regional transportation agency against any
8claims or losses resulting or accruing from the performance of the
9contracting entity or lessee.

10(l) The plans and specifications for each transportation project
11on the state highway system developed, maintained, repaired,
12rehabilitated, reconstructed, or operated pursuant to this section
13shall comply with the department’s standards for state
14transportation projects. The lease agreement shall include
15performance standards, including, but not limited to, levels of
16service. The agreement shall require facilities on the state highway
17system to meet all requirements for noise mitigation, landscaping,
18pollution control, and safety that otherwise would apply if the
19department were designing, building, and operating the facility.
20If a facility is on the state highway system, the facility leased
21pursuant to this section shall, during the term of the lease, be
22deemed to be a part of the state highway system for purposes of
23identification, maintenance, enforcement of traffic laws, and for
24the purposes of Division 3.6 (commencing with Section 810) of
25Title 1 of the Government Code.

26(m) Failure to comply with the lease agreement in any significant
27manner shall constitute a default under the agreement and the
28department or the regional transportation agency, as appropriate,
29shall have the option to initiate processes to revert the facility to
30the public agency.

31(n) The assignment authorized by subdivision (c) of Section
32130240 of the Public Utilities Code is consistent with this section.

33(o) A lease to a private entity pursuant to this section is deemed
34to be public property for a public purpose and exempt from
35leasehold, real property, and ad valorem taxation, except for the
36use, if any, of that property for ancillary commercial purposes.

37(p) Nothing in this section is intended to infringe on the authority
38to develop high-occupancy toll lanes pursuant to Section 149.4,
39149.5, or 149.6.

P58   1(q) Nothing in this section shall be construed to allow the
2conversion of any existing nontoll or nonuser-fee lanes into tolled
3or user fee lanes with the exception of a high-occupancy vehicle
4lane that may be operated as a high-occupancy toll lane for vehicles
5not otherwise meeting the requirements for use of that lane.

6(r) The lease agreement shall require the contracting entity or
7lessee to provide any information or data requested by the
8California Transportation Commission or the Legislative Analyst.
9The commission, in cooperation with the Legislative Analyst, shall
10annually prepare a report on the progress of each project and
11ultimately on the operation of the resulting facility. The report
12shall include, but not be limited to, a review of the performance
13standards, a financial analysis, and any concerns or
14recommendations for changes in the program authorized by this
15section.

16(s) Notwithstanding any other provision of this section, no lease
17agreement may be entered into pursuant to the section that affects,
18alters, or supersedes the Memorandum of Understanding (MOU),
19dated November 26, 2008, entered into by the Golden Gate Bridge
20Highway and Transportation District, the Metropolitan
21Transportation Commission, and the San Francisco County
22Transportation Authority, relating to the financing of the U.S.
23Highway 101/Doyle Drive reconstruction project located in the
24City and County of San Francisco.

begin delete

25(t) No lease agreements may be entered into under this section
26on or after January 1, 2017.

end delete
27begin insert

begin insertSEC. 28.end insert  

end insert

begin insertSection 183.1 of the end insertbegin insertStreets and Highways Codeend insertbegin insert is
28amended to read:end insert

29

183.1.  

begin delete(a)end deletebegin deleteend deleteNotwithstandingbegin delete subdivision (a) ofend delete Section 182 or
30any other provision of law, money deposited into the account that
31is not subject to Article XIX of the California Constitution,
32including, but not limited to, money that is derived from the sale
33of documents, charges for miscellaneous services to the public,
34condemnation deposits fund investments, rental of state property,
35or any other miscellaneous uses of property or money, may be
36used for any transportation purpose authorized by statute, upon
37appropriation by the Legislature or, after transfer to another fund,
38upon appropriation by the Legislature from that fund.

begin delete

39(b) Commencing with the 2013-14 fiscal year, and not later
40than November 1 of each fiscal year thereafter, based on prior year
P59   1financial statements, the Controller shall transfer the funds
2identified in subdivision (a) for the prior fiscal year from the State
3Highway Account to the Transportation Debt Service Fund in the
4State Transportation Fund, and those funds are continuously
5appropriated for the purposes specified for the Transportation Debt
6Service Fund.

end delete
7

begin deleteSEC. 9.end delete
8
begin insertSEC. 29.end insert  

Article 8 (commencing with Section 228) is added
9to Chapter 1 of Division 1 of the Streets and Highways Code, to
10read:

11 

12Article 8.  Road Access Charge
13

 

14

228.  

(a) In addition to any other charge imposed on a vehicle
15by law, an annual road access charge is hereby imposed on each
16vehicle described in subdivision (c). The amount of the annual
17road access charge shall be thirty-five dollars ($35). The
18Department of Motor Vehicles shall collect the charge at the same
19time and in the same manner as the department collects the vehicle
20registration fee pursuant to Section 9250.3 of the Vehicle Code.

21(b) Revenues from the charge, after deduction of the
22department’s administrative costs related to this section, shall be
23deposited in the Road Maintenance and Rehabilitation Account
24created pursuant to Section 2031.

begin insert

25
(c) The Department of Motor Vehicles shall annually adjust the
26road access charge imposed under this section for inflation in an
27amount equal to the change in the California Consumer Price
28Index for the prior year, as calculated by the Department of
29Finance, with amounts equal to or greater than fifty cents ($0.50)
30to be rounded to the next highest whole dollar.

end insert
begin delete

31(c)

end delete

32begin insert(d)end insert As used in this section, “vehicle” means every vehicle
33subject to registration in this state. “Vehicle” does not mean either
34any vehicle exempted pursuant to the Vehicle Code from the
35payment of registration fees or any vehicle for which a certificate
36of nonoperation has been filed with the Department of Motor
37Vehicles pursuant to Section 4604 of the Vehicle Code during the
38period of time covered by the certificate.

39begin insert

begin insertSEC. 30.end insert  

end insert

begin insertSection 820.1 of the end insertbegin insertStreets and Highways Codeend insertbegin insert is
40amended to read:end insert

P60   1

820.1.  

(a) The State of California consents to the jurisdiction
2of the federal courts with regard to the compliance, discharge, or
3enforcement of the responsibilities assumed by the department
4pursuant to Section 326 of, and subsection (a) of Section 327 of,
5Title 23 of the United States Code.

6(b) In any action brought pursuant to the federal laws described
7in subdivision (a), no immunity from suit may be asserted by the
8department pursuant to the Eleventh Amendment to the United
9States Constitution, and any immunity is hereby waived.

10(c) The department shall not delegate any of its responsibilities
11assumed pursuant to the federal laws described in subdivision (a)
12to any political subdivision of the state or its instrumentalities.

13(d) The department shall, no later than January 1, 2016, submit
14a report to the Legislature that includes the following:

15(1) A comparative analysis of the environmental review process
16under the National Environmental Policy Act (Chapter 55
17(commencing with Section 4321) of Title 42 of the United States
18Code) for the 30 projects, excluding those projects categorically
19excluded from environmental review, undertaken immediately
20preceding the enactment of this section that involved the Federal
21Highway Administration and the environmental review process
22for all projects, excluding those projects categorically excluded
23from environmental review, undertaken following the enactment
24of this section that did not involve the Federal Highway
25Administration. This analysis shall include department- and local
26agency-sponsored projects, and shall address the following:

27(A) For each project included in the analysis, the environmental
28review process under the National Environmental Policy Act,
29including which state and federal agencies reviewed the
30environmental documents and the amount of time the documents
31were reviewed by each agency, shall be described.

32(B) The points in the environmental review process under the
33National Environmental Policy Act when project delays occurred
34and the nature of the delays.

35(C) The time saved in the environmental review process for
36projects undertaken following the enactment of this section in
37comparison to the review process for projects undertaken prior to
38the enactment of this section, and the points in the review process
39when time was saved.

P61   1(D) The circumstances when the Federal Highway
2Administration hindered and facilitated project delivery.

3(2) All financial costs incurred by the department to assume the
4responsibilities pursuant to Section 326 of, and subsection (a) of
5Section 327 of, Title 23 of the United States Code, including, but
6not limited to, the following:

7(A) Personnel to conduct and review environmental documents
8and to manage litigation.

9(B) Administrative costs.

10(C) Litigation.

11(3) An explanation of all litigation initiated against the
12department for the responsibilities assumed pursuant to Section
13326 of, and subsection (a) of Section 327 of, Title 23 of the United
14States Code.

15(4) A comparison of all costs and benefits of assuming these
16responsibilities.

17(5) An assessment of overall project delivery time from the time
18environmental studies begin to the time the project is ready to
19advertise for construction, including the time required for each
20project phase and distinguishing between different types of
21environmental documents and between projects on the state
22highway system and local assistance projects. The department may
23also include other variables that it determines may be useful in the
24assessment.

begin delete

25(e) (1) This section shall remain in effect only until January 1,
262017, and as of that date is repealed, unless a later enacted statute,
27that is enacted before January 1, 2017, deletes or extends that date.

end delete
begin delete

28(2) The state shall remain liable for any decisions made, or
29responsibilities assumed and exercised, prior to the repeal of this
30section under this subdivision, pursuant to applicable federal
31statutes of limitation for filing citizens’ suits in federal court.

end delete
begin delete

32(f)

end delete

33begin insert(e)end insert Nothing in this section affects the obligation of the
34department to comply with state and federal law.

35

begin deleteSEC. 10.end delete
36
begin insertSEC. 31.end insert  

Chapter 2 (commencing with Section 2030) is added
37to Division 3 of the Streets and Highways Code, to read:

 

P62   1Chapter  2. Road Maintenance and Rehabilitation
2Program
3

 

4

2030.  

(a) The Road Maintenance and Rehabilitation Program
5is hereby created to address deferred maintenance on the state
6highway system and the local street and road system. Funds made
7available by the program shall be prioritized for expenditure on
8basic road maintenance and road rehabilitation projects, and on
9critical safety projects. The California Transportation Commission
10shall adopt performance criteria pursuant to subdivision (b) of
11Section 2033 to ensure efficient use of the funds available pursuant
12to this chapter for the program.

13(b) Funds made available by the program shall be used for
14projects that include, but are not limited to, the following:

15(1) Road maintenance and rehabilitation.

16(2) Safety projects.

17(3) Railroad grade separations.

18(4) Active transportation and pedestrian and bicycle safety
19projects in conjunction with any other allowable project.

20(5) Wildlife crossings.

21(c) To the extent possible, the department and cities and counties
22receiving an apportionment of funds under the program shall use
23advanced technologies and material recycling techniques that
24reduce the cost of maintaining and rehabilitating the streets and
25 highways.

26

2031.  

The following revenues shall be deposited in the Road
27Maintenance and Rehabilitation Account, which is hereby created
28in the State Transportation Fund:

29(a) The revenues attributable to the increase in the motor vehicle
30fuel excise tax by twelve cents ($0.12) per gallon pursuant to
31subdivision (a) of Section 7360 of the Revenue and Taxation Code,
32as adjusted pursuant to subdivision (c) of that section, and the
33revenues attributable to ten cents ($0.10) per gallon of the increase
34in the diesel fuel excise tax by twenty-two cents ($0.22) per gallon,
35pursuant to subdivision (b) of Section 60050 of the Revenue and
36Taxation Code, as adjusted pursuant to subdivision (c) of that
37section, as provided in subdivision (a) of Section 2103.1.

38(b) The revenues from the increase in the vehicle registration
39fee pursuant to Section 9250.3 of the Vehicle Code.

P63   1(c) The revenues from the increase in the vehicle registration
2fee pursuant to Section 9250.6 of the Vehicle Code.

3(d) The revenues from the road access charge imposed pursuant
4to Section 228.

5(e) The revenues from repayment of loans made from the State
6Highway Account, the Motor Vehicle Fuel Account, the Highway
7Users Tax Account, and the Motor Vehicle Account to the General
8Fund, pursuant to the schedule set forth in Section 16321 of the
9Government Code.

10(f) Any other revenues designated for the program.

11

2031.5.  

Each fiscal year the annual Budget Act shall contain
12an appropriation from the Road Maintenance and Rehabilitation
13Account to the Controller for the costs of carrying out his or her
14duties pursuant to this chapter and to the California Transportation
15Commission for the costs of carrying out its duties pursuant to this
16chapter and Sections 14526.7 and 14526.8 of the Government
17Code.

18

2032.  

(a) After deducting the amounts appropriated in the
19annual Budget Act as provided in Section 2031.5, 5 percent of the
20remaining revenues deposited in the Road Maintenance and
21Rehabilitation Account shall be set aside for counties in which
22voters approve, on or after July 1,begin delete 2015,end deletebegin insert 2016,end insert a transactions and
23use tax for transportation purposes, and which counties did not,
24prior to that approval, impose a transactions and use tax for those
25purposes. The funds available under this subdivision in each fiscal
26year are hereby continuously appropriated for allocation to each
27eligible county and each city in the county for road maintenance
28and rehabilitation purposes pursuant to Section 2035. However,
29funds remaining unallocated under this subdivision in any fiscal
30year shall be reallocated on the last day of the fiscal year pursuant
31to subdivision (b).

32(b) The balance of the revenues deposited in the Road
33Maintenance and Rehabilitation Account, including the revenues
34reallocated for the purposes of this subdivision pursuant to
35subdivision (a), are hereby continuously appropriated as follows:

36(1) Fifty percent for allocation to the department for maintenance
37of the state highway system, for purposes of the state highway
38operation and protection program, or for other eligible purposes
39pursuant to Section 2030.

P64   1(2) Fifty percent for apportionment to cities and counties by the
2Controller pursuant to the formula in subparagraph (C) of
3paragraph (3) of subdivision (a) of Section 2103 for the purposes
4authorized by this chapter, subject to subdivision (e) of Section
52033 and paragraph (2) of subdivision (a) of Section 2034.

6

2033.  

(a) The commission shall annually evaluate each city
7and county receiving funds pursuant to this chapter.

8(b) In addition, the commission shall adopt performance criteria
9related to highway performance goals, greenhouse gas emissions,
10social equity impacts, and public health impacts. These criteria
11may include, but are not limited to, the following:

12(1) Pavement condition, such as the Pavement Condition Index.

13(2) Bridge condition, such as the state’s Bridge Health Index.

14(3) Maintenance level of service, such as litter removal and
15graffiti abatement.

16(4) Greenhouse gas emissions, including those resulting from
17induced demand, and biological emissions.

18(5) Measures of mobility benefits to transit, bicycles, and
19pedestrians.

20(6) Quantification of the public health and safety, economic,
21and environmental cobenefits.

22(c) For each fiscal year in which the department receives an
23allocation of funds pursuant to Section 2032, the department shall
24submit documentation to the commission that includes a description
25and the location of each completed project, the amount of funds
26expended on the project, the completion date, and the project’s
27estimated useful life. The commission shall evaluate the
28documentation to determine the effectiveness of the department
29in reducing deferred maintenance and improving roadway
30conditions on the state highway system as well as meeting the
31performance criteria adopted pursuant to subdivision (b), and may
32withhold future funding from the department if it determines that
33program funds have not been appropriately spent.

34(d) For each fiscal year in which a city or county receives an
35apportionment of funds pursuant to subdivision (a) or paragraph
36(2) of subdivision (b) of Section 2032, the commission shall
37evaluate the documentation submitted pursuant to subdivision (b)
38of Section 2034 to determine the effectiveness of the city or county
39in reducing deferred maintenance and improving roadway
P65   1conditions on highways within its jurisdiction as well as meeting
2the performance criteria adopted pursuant to subdivision (b).

3(e) If the commission determines, with respect to any given
4fiscal year, that a city or county has not appropriately spent its
5apportionment of funds, the commission shall direct the Controller
6to make that city or county ineligible to receive an apportionment
7during the next fiscal year. The Controller shall reapportion that
8city’s or county’s share of funds to all other eligible cities or
9counties pursuant to paragraph (2) of subdivision (b) of Section
102032.

11(f) The commission shall include a discussion of its evaluations
12pursuant to this section in its annual report to the Legislature
13pursuant to Section 14535 of the Government Code.

14(g) As used in this section, “highways” includes streets and
15 roads.

16

2034.  

(a) (1) Prior to receiving an apportionment of funds
17under the program pursuant to paragraph (2) of subdivision (b) of
18Section 2032 from the Controller in a fiscal year, an eligible city
19or county shall submit to the commission a list of projects proposed
20to be funded with these funds pursuant to an adopted city or county
21budget. All projects proposed to receive funding shall be included
22in a city or county budget that is adopted by the applicable city
23council or county board of supervisors at a regular public meeting.
24The list of projects proposed to be funded with these funds shall
25include a description and the location of each proposed project, a
26proposed schedule for the project’s completion, and the estimated
27useful life of the improvement. The project list shall not limit the
28 flexibility of an eligible city or county to fund projects in
29accordance with local needs and priorities so long as the projects
30are consistent with subdivision (d).

31(2) The commission shall report to the Controller the cities and
32counties that have submitted a list of projects as described in this
33subdivision and that are therefore eligible to receive an
34apportionment of funds under the program for the applicable fiscal
35year. The Controller, upon receipt of the report, shall apportion
36funds to eligible cities and counties.

37(b) For each fiscal year, each city or county receiving an
38apportionment of funds shall, upon expending program funds,
39submit documentation to the commission that includes a description
40and location of each completed project, the amount of funds
P66   1expended on the project, the completion date, the estimated useful
2life of the improvement, and a description of how the project
3contributes to meeting the performance criteria adopted pursuant
4to subdivision (b) of Section 2033. The documentation shall also
5include a comparison of the projects the city or county would have
6completed without receiving funds under the program compared
7with the projects completed with these funds.

8(c) The documentation provided pursuant to subdivision (b)
9shall be forwarded by the commission to the department, in a
10manner and form approved by the department, at the end of each
11fiscal year as long as program funds remain available for
12expenditure. The department may post the information contained
13in the documentation on its Internet Web site.

14(d) (1) Funds made available to a city or county under the
15program shall be used for improvements to transportation facilities
16that will assist in reducing further deterioration of the existing road
17system. These improvements may include, but need not be limited
18to, pavement maintenance, rehabilitation, installation, construction,
19and reconstruction of necessary associated facilities such as
20drainage and traffic control devices, or safety projects to reduce
21fatalities.

22(2) Funds made available under the program may also be used
23for the following purposes:

24(A) To satisfy the local match requirement in order to obtain
25state or federal transportation funds for similar purposes.

26(B) Active transportation and pedestrian and bicycle safety
27 projects in conjunction with any other allowable project.

28(C) Other eligible purposes consistent with Section 2030.

29

2035.  

(a) On or before July 1, 2016, the commission, in
30cooperation with the department, transportation planning agencies,
31county transportation commissions, and other local agencies, shall
32develop guidelines for the allocation of funds pursuant to
33subdivision (a) of Section 2032.

34(b) The guidelines shall be the complete and full statement of
35the policy, standards, and criteria that the commission intends to
36use to determine how these funds will be allocated.

37(c) The commission may amend the adopted guidelines after
38conducting at least one public hearing.

39

2036.  

(a) Cities and counties shall maintain their existing
40commitment of local funds for street, road, and highway purposes
P67   1in order to remain eligible for an allocation or apportionment of
2funds pursuant to Section 2032.

3(b) In order to receive an allocation or apportionment pursuant
4to Section 2032, the city or county shall annually expend from its
5general fund for street, road, and highway purposes an amount not
6less than the annual average of its expenditures from its general
7fund during the 2009-10, 2010-11, and 2011-12 fiscal years, as
8reported to the Controller pursuant to Section 2151. For purposes
9of this subdivision, in calculating a city’s or county’s annual
10general fund expenditures and its average general fund expenditures
11for the 2009-10, 2010-11, and 2011-12 fiscal years, any
12unrestricted funds that the city or county may expend at its
13discretion, including vehicle in-lieu tax revenues and revenues
14from fines and forfeitures, expended for street, road, and highway
15purposes shall be considered expenditures from the General Fund.
16One-time allocations that have been expended for street and
17highway purposes, but which may not be available on an ongoing
18basis, including revenue provided under the Teeter Plan Bond Law
19of 1994 (Chapter 6.6 (commencing with Section 54773) of Part 1
20of Division 2 of Title 5 of the Government Code), may not be
21considered when calculating a city’s or county’s annual general
22fund expenditures.

23(c) For any city incorporated after July 1, 2009, the Controller
24shall calculate an annual average of expenditure for the period
25between July 1, 2009, and December 31, 2015, inclusive, that the
26city was incorporated.

27(d) For purposes of subdivision (b), the Controller may request
28fiscal data from cities and counties in addition to data provided
29pursuant to Section 2151, for the 2009-10, 2010-11, and 2011-12
30fiscal years. Each city and county shall furnish the data to the
31Controller not later than 120 days after receiving the request. The
32Controller may withhold payment to cities and counties that do
33not comply with the request for information or that provide
34incomplete data.

35(e) The Controller may perform audits to ensure compliance
36with subdivision (b) when deemed necessary. Any city or county
37that has not complied with subdivision (b) shall reimburse the state
38for the funds it received during that fiscal year. Any funds withheld
39or returned as a result of a failure to comply with subdivision (b)
P68   1shall be reapportioned to the other counties and cities whose
2expenditures are in compliance.

3(f) If a city or county fails to comply with the requirements of
4subdivision (b) in a particular fiscal year, the city or county may
5expend during that fiscal year and the following fiscal year a total
6amount that is not less than the total amount required to be
7expended for those fiscal years for purposes of complying with
8subdivision (b).

9

2037.  

A city or county may spend its apportionment of funds
10under the program on transportation priorities other than those
11allowable pursuant to this chapter if the city’s or county’s average
12Pavement Condition Index meets or exceeds 85.

begin insert
13

begin insert2038.end insert  

(a) The Department of Transportation and local
14agencies, as a condition of receiving funds from the program, shall
15adopt and implement a program designed to promote and advance
16construction employment and training opportunities through
17preapprenticeship opportunities, either by the public agency itself
18or through contractors engaged by the public agencies to do work
19funded in whole or in part by funds made available by the program.

20
(b) The Department of Transportation and local agencies, as a
21condition of receiving funds from the program, shall ensure the
22involvement of the California Conservation Corps and certified
23community conservation corps in the delivery of projects and
24services funded in whole or in part by funds made available by the
25program.

end insert
26

begin deleteSEC. 11.end delete
27
begin insertSEC. 32.end insert  

Section 2103.1 is added to the Streets and Highways
28Code
, to read:

29

2103.1.  

Notwithstanding subdivision (b) of Section 2103, the
30portion of the revenues in the Highway Users Tax Account
31attributable to the increase in the tax rate on motor vehicle fuel by
32twelve cents ($0.12) per gallon pursuant to subdivision (a) of
33Section 7360 of the Revenue and Taxation Code, as adjusted
34pursuant to subdivision (c) of that section, and the increase in the
35tax rate on diesel fuel by twenty-two cents ($0.22) per gallon
36pursuant to subdivision (b) of Section 60050 of the Revenue and
37Taxation Code, as adjusted pursuant to subdivision (c) of that
38section, shall be deposited in the Road Maintenance and
39Rehabilitation Account created pursuant to Section 2031, except
40that the portion of the revenues attributable to twelve cents ($0.12)
P69   1of that increase in the per gallon tax rate on diesel fuel, as adjusted,
2shall be deposited in the Trade Corridors Improvement Fund for
3expenditure pursuant to Section 2192.

4begin insert

begin insertSEC. 33.end insert  

end insert

begin insertSection 2103.2 is added to the end insertbegin insertStreets and Highways
5Code
end insert
begin insert, to read:end insert

begin insert
6

begin insert2103.2.end insert  

Notwithstanding Section 2103, the revenues transferred
7to the Highway Users Tax Account pursuant to Sections 8352.4,
88352.5, and 8352.6 of the Revenue and Taxation Code shall be
9distributed pursuant to the formula in paragraph (3) of subdivision
10(a) of Section 2103.

end insert
11

begin deleteSEC. 12.end delete
12
begin insertSEC. 34.end insert  

Section 9250.3 is added to the Vehicle Code, to read:

13

9250.3.  

(a) In addition to any other fees specified in this code,
14the Revenue and Taxation Code, or the Streets and Highways
15Code, commencing 120 days after the effective date of the act
16adding this section, a registration fee of thirty-five dollars ($35)
17shall be paid to the department for registration or renewal of
18registration of every vehicle subject to registration under this code,
19except those vehicles that are expressly exempted under this code
20from payment of registration fees.

begin insert

21
(b) The Department of Motor Vehicles shall annually adjust the
22fee imposed under this section for inflation in an amount equal to
23the change in the California Consumer Price Index for the prior
24year, as calculated by the Department of Finance, with amounts
25equal to or greater than fifty cents ($0.50) rounded to the next
26highest whole dollar.

end insert
begin delete

27(b)

end delete

28begin insert(c)end insert Revenues from the fee, after deduction of the department’s
29administrative costs related to this section, shall be deposited in
30the Road Maintenance and Rehabilitation Account created pursuant
31to Section 2031 of the Streets and Highways Code.

32

begin deleteSEC. 13.end delete
33
begin insertSEC. 35.end insert  

Section 9250.6 is added to the Vehicle Code, to read:

34

9250.6.  

(a) In addition to any other fees specified in this code,
35the Revenue and Taxation Code, or the Streets and Highways
36Code, commencing 120 days after the effective date of the act
37adding this section, a registration fee of one hundred dollars ($100)
38shall be paid to the department for registration or renewal of
39registration of every zero-emission motor vehicle subject to
40registration under this code, except those motor vehicles that are
P70   1expressly exempted under this code from payment of registration
2fees.

3(b) Revenues from the fee, after deduction of the department’s
4administrative costs related to this section, shall be deposited in
5the Road Maintenance and Rehabilitation Account created pursuant
6to Section 2031 of the Streets and Highways Code.

7(c) This section does not apply to a commercial motor vehicle
8subject to Section 9400.1.

9(d) For purposes of this section, “zero-emission motor vehicle”
10means a motor vehicle as described in subdivisions (c) and (d) of
11Section 44258 of the Health and Safetybegin delete Code,end deletebegin insert Codeend insert or any other
12motor vehicle that is able to operate on any fuel other than gasoline
13or diesel fuel.

14begin insert

begin insertSEC. 36.end insert  

end insert

begin insertSection 9400.5 is added to the end insertbegin insertVehicle Codeend insertbegin insert, to read:end insert

begin insert
15

begin insert9400.5.end insert  

Notwithstanding Sections 9400.1, 9400.4, and 42205
16of this code, Sections 16773 and 16965 of the Government Code,
17Section 2103 of the Streets and Highways Code, or any other law,
18all of the following shall occur with respect to use of weight fee
19revenues:

20
(a) The amount of weight fee revenues transferred in each fiscal
21year from the State Highway Account to the Transportation Debt
22Service Fund or to the Transportation Bond Direct Payment
23Account shall not exceed the amount necessary to pay the current
24year debt service in that fiscal year on bonds issued pursuant to
25Proposition 192 (1996), Proposition 108 (1990), and Proposition
261B (2006), and then only for the portion of bond debt service that
27relates to expenditures of bond proceeds for purposes consistent
28with Article XIX of the California Constitution.

29
(b)  Weight fee revenues shall not be loaned to the General
30Fund.

31
(c)  Weight fee revenues that remain in the State Highway
32Account shall be expended for the purposes authorized by law for
33that account, but not including payment of transportation general
34obligation bond debt service.

end insert
35begin insert

begin insertSEC. 37.end insert  

end insert

begin insertSection 9400.6 is added to the end insertbegin insertVehicle Codeend insertbegin insert, to read:end insert

begin insert
36

begin insert9400.6.end insert  

On or before January 1, 2021, the Department of
37Finance, in consultation with the Transportation Agency and the
38California Transportation Commission, shall develop a plan,
39including proposed statutory changes, for implementation in whole
40or in part beginning no later than the 2021-22 fiscal year, to
P71   1restore 100 percent of weight fee revenues, after deduction of
2collection costs, to the State Highway Account, for expenditure on
3the purposes authorized by law for that account, but not including
4payment of transportation general obligation bond debt service.

end insert
5

begin deleteSEC. 14.end delete
6
begin insertSEC. 38.end insert  

This act is an urgency statute necessary for the
7immediate preservation of the public peace, health, or safety within
8the meaning of Article IV of the Constitution and shall go into
9immediate effect. The facts constituting the necessity are:

10In order to provide additional funding forbegin delete road maintenance and
11rehabilitationend delete
begin insert transportationend insert purposes as quickly as possible, it is
12necessary for this act to take effect immediately.



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