BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SJR 33
                                                                  Page  1


          SENATE THIRD READING
          SJR 33 (Alan Lowenthal)
          As Introduced  May 24, 2010
          Majority vote 

           SENATE VOTE  :33-0  
           
           TRANSPORTATION      13-0                                        
           
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          |Ayes:|Bonnie Lowenthal,         |     |                          |
          |     |Jeffries,                 |     |                          |
          |     |Bill Berryhill,           |     |                          |
          |     |Blumenfield, Buchanan,    |     |                          |
          |     |Eng, Furutani, Galgiani,  |     |                          |
          |     |Hayashi, Miller, Niello,  |     |                          |
          |     |Portantino, Solorio       |     |                          |
          |     |                          |     |                          |
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           SUMMARY  :  Requests Congress to adopt a national freight policy  
          as a component of the next federal transportation bill and  
          directs the federal Department of Transportation to implement  
          its provisions.  

           EXISTING FEDERAL LAW  :  

          1)Under federal law, the U.S. Department of Transportation (US  
            DOT) administers and implements the transportation programs  
            that are authorized.  

          2)The United States Constitution assigns the right to regulate  
            commerce with foreign nations and among the states to the  
            federal government.  

          3)The current federal transportation bill, the Safe,  
            Accountable, Flexible, Transportation Equity Act - A Legacy  
            for Users (SAFETEA-LU), establishes federal transportation  
            policy and authorizes funding to various programs.  Enacted in  
            2005, SAFETEA-LU was originally due to expire on September 30,  
            2009.  The Congress and the President extended SAFETEA-LU  
            several times, most recently until December 31, 2010, in order  
            to provide time to develop a successor transportation bill.  

           FISCAL EFFECT  :  None








                                                                  SJR 33
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           COMMENTS  :  The author introduced this resolution to support the  
          creation of a national freight policy. He argues that such a  
          policy would provide a federal basis for investment in  
          trade-facilitating infrastructure development, promoting public  
          and private participation in trade infrastructure, achieving  
          significant air quality benefits, and establishing a platform  
          for the equitable distribution of federal funds such that  
          California and its local transportation partners would receive  
          their fair share of those revenues.  

          Supporters note that while California's airports, border  
          crossings, and seaports are critical national assets that  
          facilitate massive amounts of international commerce, the  
          federal government lacks a coordinated plan to invest in these  
          assets. The lack of a national freight policy hurts West Coast  
          trade, as states here will continue to bear the costs of both  
          facilitating trade growth and reducing environmental impacts.  

          The adoption of a national freight policy, as this resolution  
          requests, would create a uniform federal interest in improving  
          the flow of cargo through California's airports, seaports, and  
          land ports of entry.  

          Federal proposals:  Current federal law, SAFETEA-LU, as extended  
          by Congress, authorizes research and demonstration projects to  
          investigate various transportation funding mechanisms.   
          SAFETEA-LU does not, however, articulate a national freight  
          policy nor have any of the preceding transportation bills.  

          Further, as a part of the new transportation reauthorization,  
          the US DOT has proposed a new program referred to as the  
          National Infrastructure Innovation and Finance Fund (NIIFF).   
          This new program will establish a new direction in federal  
          infrastructure investment that emphasizes demonstrable merit and  
          analytical measures of performance.  Fund investments will be  
          issued in the form of grants, loans, or a blend of both and will  
          target transportation and transportation-related projects that  
          provide a significant economic benefit to the nation or a  
          region.  Projects eligible for funding from the NIIFF will  
          include multi-modal projects that include highway, transit,  
          rail, aviation, ports, and maritime components.  Currently, $4  
          billion is requested in federal fiscal year 2011 for NIIFF,  
          which is a down payment on a $25 billion commitment to the fund.  








                                                                  SJR 33
                                                                  Page  3


           The NIIFF is separate from and parallel to a national freight  
          policy.  

           
          Analysis Prepared by  :   Ed Imai / TRANS. / (916) 319-2093 


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