BILL ANALYSIS
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: AB 726
SENATOR ALAN LOWENTHAL, CHAIRMAN AUTHOR: Nielsen
VERSION: 2/26/09
Analysis by: Art Bauer FISCAL: No
Hearing date: June 16, 2009
SUBJECT:
State Transportation Improvement Program and local roads
DESCRIPTION:
This bill clarifies that local road rehabilitation projects are
eligible for funding through the State Transportation
Improvement Program (STIP) process.
ANALYSIS:
Existing law provides for the STIP, the state's five-year
transportation capital outlay program, which is adopted by the
California Transportation Commission (CTC) and updated every two
years. The STIP process is very elaborate. The CTC prepares a
fund estimate. The fund estimate determines the amount of
revenues for the two-year STIP cycle required for the Department
of Transportation's (Caltrans') operations and maintenance and
for the State Highway Operations and Protection Program (SHOPP).
The remaining funds are available for funding capital outlay. Of
the remaining funds, 75% are programmed by the regional
transportation planning agencies (RTPAs), and 25% are programmed
by Caltrans for the interregional highway program and intercity
rail projects. The CTC is authorized to adopt guidelines
governing the preparation of the STIP.
RTPAs program projects for their regional transportation
improvement programs. Under existing law these projects may
include, but are not be limited to, improving state highways,
local roads, public transit, intercity rail, pedestrian, and
bicycle facilities, as well as grade separations,
transportation system management, transportation demand
management, soundwall projects, intermodal facilities, safety
AB 726 (NIELSEN) Page 2
projects, and providing funds to match federal funds.
This bill authorizes the CTC to include in its guidelines
rehabilitation projects on local roads as eligible for STIP
funding
COMMENTS:
1. Purpose . Road rehabilitation is the reconstruction of
deteriorated roadway infrastructure and does not involve
adding road capacity for additional vehicles. The
rehabilitation of state highways is funded through the
SHOPP. On the basis of existing law, the CTC regularly
includes projects in the STIP that rehabilitate or increase
the capacity of local streets and roads. According to the
CTC staff, the $5.6 billion 2006 STIP includes 146 local
street and road rehabilitation projects with a value of
$103 million. In addition, there are another 102 local road
improvement projects that increase capacity valued at $459
million.
The author is concerned that CTC's policy regarding the use
of STIP funds to rehabilitate local streets and roads is
discretionary and could change. Because cities and
counties, especially in rural areas, have come to rely on
STIP revenues for local road rehabilitation, the author
believes it is necessary to codify this policy and is
carrying this bill to do so.
2. CTC guidelines are confusing . According to its staff,
the CTC has always believed existing law authorizes the
programming of rehabilitation of local streets and roads in
the STIP. Indeed, the guidelines for the 2004 and the 2006
STIPs included the following language: "It is the
continuing intent of the Commission that rehabilitation
projects, excluding maintenance, on the local street and
road systems remain eligible for funding in the STIP."
This language was removed from the adopted guidelines
for the 2008 STIP and there is no substitute or
equivalent language in the guidelines. This bill would
ensure that maintenance and rehabilitation are placed
in statute as an authorized use of STIP funds for
local agencies.
3. Related legislation . Last year, Assemblymenber Arambula
AB 726 (NIELSEN) Page 3
authored an identical bill,
AB 2295, which the governor vetoed. This was Assembymember
Arambula's second effort at getting the bill enacted. In
his veto message, the Governor wrote:
This is the second time I have vetoed similar
legislation. Current California Transportation
Commission (CTC) policy guidelines already
provide that local road rehabilitation projects
are eligible for State Transportation Improvement
Projects (sic) funding. This bill is duplicative
of existing guidelines and unnecessarily reduces
the ability of the CTC to modify its guidelines
to reflect future changes in available funding
and transportation policy.
Assembly Votes:
Floor: 77-0
Trans: 12-0
POSITIONS: (Communicated to the Committee before noon on
Wednesday,
June 10, 2009)
SUPPORT: California State Association of Counties
(co-sponsor)
Regional Council of Rural Counties
(co-sponsor)
League of California Cities
OPPOSED: None received.