BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
                              Senator Jim Beall, Chair
                                2015 - 2016  Regular 

          Bill No:          SB 1066           Hearing Date:    4/12/2016
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          |Author:   |Beall                                                 |
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          |Version:  |2/16/2016                                             |
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          |Urgency:  |No                     |Fiscal:      |Yes             |
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          |Consultant|Manny Leon                                            |
          |:         |                                                      |
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          SUBJECT:  Transportation funds:  fund estimates


           DIGEST:  This bill requires State Transportation Improvement  
          Program (STIP) fund estimates prepared by the California  
          Transportation Commission (CTC) and the Department of  
          Transportation (Caltrans) to identify and include federal funds  
          received under the Federal FAST Act.   

          ANALYSIS:
          
          At the federal level, the Fixing America's Surface  
          Transportation Act (FAST Act) is a multi-year transportation  
          program that provides funding to state and local transportation  
          agencies and programs. 
          
                 Existing law: establishes the STIP program, which  
               provides state and federal funds for transportation capital  
               improvement projects programmed by Caltrans and regional  
               transportation agencies, as specified. 

                 Requires Caltrans to submit to the CTC an estimate of  
               state and federal funds reasonably expected to be available  
               for future programming over the 5-year period of each STIP,  
               and requires the CTC to adopt a fund estimate in that  
               regard. 

          This bill requires the STIP fund estimate prepared by Caltrans  
          and CTC to identify and include federal funds derived from  
          apportionments made to the state under the FAST Act. 







          SB 1066 (Beall)                                    Page 2 of ?
          
          

          COMMENTS:

          1)Purpose. The author introduced this bill to provide  
            clarification in existing law that the STIP fund estimate  
            prepared by Caltrans and CTC include the funding allocations  
            specified in the recently enacted Federal FAST Act.

          2)Federal FAST ACT. On December 4, 2015, President Obama signed  
            the FAST Act, authorizing federal highway, transit, safety,  
            and rail programs for the next five federal fiscal years at a  
            cost of approximately $305 billion. The bill is the first  
            long-term reauthorization of the federal surface  
            transportation program since the enactment of the Safe,  
            Accountable, Flexible, and Efficient Transportation Equity  
            Act: A Legacy for Users in 2005.

            The $305 billion authorized under the FAST Act includes  
            approximately $225 billion for the federal-aid highway  
            program, approximately $61 billion for federal transit  
            assistance, and approximately $19 billion for other programs.   
            Of the transit funds, nearly $49 billion is distributed to  
            regions and transit providers by formula, while the remaining  
            $12 billion is available for discretionary grants, mostly for  
            capital improvements and grants for implementation of positive  
            train control.  Most highway program funds are apportioned to  
            states, also by formula. 

          3)STIP and the STIP fund estimate. STIP is a multi-year capital  
            improvement program of transportation projects on and off the  
            state highway system, funded with revenues deposited in the  
            State Highway Account.  The STIP is composed of two  
            categories:  75% of STIP funds go toward projects in the  
            Regional Transportation Improvement Program (RTIP) for  
            regional transportation agencies and 25% goes to the  
            Interregional Transportation Improvement Program (ITIP)  
            administered by Caltrans.  Each STIP will cover a five year  
            period and add two new years of programming capacity.  

            The STIP fund estimate is a biennial estimate of all resources  
            available for the state's transportation infrastructure over a  
            five-year period.  The fund estimate establishes the program  
            funding levels for the STIP and also the State Highway  
            Operation and Protection Program (SHOPP).  Specifically, the  
            STIP fund estimate includes a forecast, in annual increments,  








          SB 1066 (Beall)                                    Page 3 of ?
          
          
            of all federal and state funds available for programming in  
            the updated STIP and a plan to manage these funds over the  
            subsequent five years.  The 2016 STIP fund estimate covers the  
            period from fiscal years 2016-17 through 2020-21, with 2015-16  
            included as the base year. 

          This bill ensures that future fund estimates (i.e., the 2018  
          fund estimate) prepared by Caltrans and CTC consider and  
          incorporate the changes in programmatic and funding allocations  
          enacted under the Federal FAST Act.

          FISCAL EFFECT:  Appropriation:  No    Fiscal Com.:  Yes     
          Local:  No


            
          POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,
                          April 6, 2016.)
          
            SUPPORT:  

          San Bernardino Associated Governments 
          California Asphalt Pavement Association

          OPPOSITION:

          None received


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