BILL NUMBER: SB 1027	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 24, 2012
	AMENDED IN ASSEMBLY  JULY 3, 2012

INTRODUCED BY   Committee on Budget and Fiscal Review

                        FEBRUARY 6, 2012

   An act  relating to the Budget Act of 2012  
to amend Sections 182.6, 182.7, 2331, 2333, 2333.5, 2370, 2371, 2372,
2373, and 2374 of, to amend the heading of Chapter 7.5 (commencing
with Section 2370) of Division 3 of, and to add Sections 182.51,
2375, 2376, 2377, 2378, 2379, 2380, and 2381 to, the Streets and
Highways Code, relating to transportation  .


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1027, as amended, Committee on Budget and Fiscal Review.
 Budget Act of 2012.   Federal transportation
funds: allocation.  
   Existing law provides for allocation of certain federal
transportation funds apportioned to the state between state purposes
administered by the Department of Transportation and local and
regional purposes administered by various regional agencies. 

   This bill would revise these allocations and other related
provisions in accordance with recent modifications of federal law
through enactment of the Moving Ahead for Progress in the 21st
Century (MAP-21) Act. In this regard, the bill would provide a set
aside from funds made available to the state under the federal
Surface Transportation Program for transportation planning and for
certain highway bridges that are not on the National Highway System,
and would otherwise specify the amount of funds that the department
is required to allocate to regional agencies. The bill would allocate
funds to regional agencies under the federal Congestion Mitigation
and Air Quality Improvement Program based on a weighted formula that
considers population and pollution in a given area, as specified. The
bill would require a set aside for the Safe Routes to School Program
from federal highway safety funds apportioned to the state, and
would require activities under the program that are not eligible for
federal highway safety funds to be funded from other federal funds
available to the department. The bill would implement the new federal
Transportation Alternatives Program by specifying the purposes for
which these funds may be used, eligible entities that may receive
these funds, and an allocation formula. The bill would allow the
state to opt out of the federal Recreational Trails Program if the
Governor so notifies the United States Secretary of Transportation.
The bill would enact other related provisions.  
   This bill would express the intent of the Legislature to make
statutory changes relating to the Budget Act of 2012. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Sec   tion 182.51 is added to
the   Streets and Highways Code   , to read: 

   182.51.  (a) Commencing with the 2012-13 federal fiscal year, of
the federal Surface Transportation Program funds apportioned to
California that remain after funding from this source transportation
planning responsibilities with a 2 percent set aside and off-system
bridge activities described in subsection (b)(2) of Section 133 of
Title 23 of the United States Code with a set aside equivalent to 15
percent of the amount of funds that were apportioned to the state for
the federal Highway Bridge Program for the 2008-09 federal fiscal
year, the department shall, pursuant to federal law, apportion 62.5
percent of the funds to metropolitan planning organizations and
transportation planning agencies as provided in Section 182.6. The
funds apportioned under this subdivision shall be treated as regional
surface transportation program funds and shall be subject to the
processes and requirements of Section 182.6.
   (b) The remaining 37.5 percent of federal Surface Transportation
Program funds apportioned to California that may be expended pursuant
to federal law in any area of the state shall be available for
obligation and expenditure by the department in any area of the
state.
   (c) Notwithstanding Sections 182 and 182.5, Sections 188, 188.8,
and 825 do not apply to the funds described in subdivision (a). 

   SEC. 2.    Section 182.6 of the  Streets and
Highways Code   is amended to read: 
   182.6.  (a) Notwithstanding Sections 182 and 182.5, Sections 188,
188.8, and 825 do not apply to the expenditure of an amount of
federal funds  equal to   required to be
apportioned to metropolitan planning organizations and transportation
planning agencies pursuant to subdivision (a) of Section 182.51,
including  the amount of federal funds apportioned to the state
pursuant to that portion of subsection  (b)(3)  
(b)(2)  of Section 104  , subsections (a) and (c) of
Section 157, and subsection (d) of Section 160  of Title 23
of the United States Code that is allocated within the state subject
to subsection  (d)(3)  (d)(1)  of Section
133 of that code. These funds  shall be   are
 known as the regional surface transportation program funds. The
department, the transportation planning agencies, the county
transportation commissions, and the metropolitan planning
organizations may do all things necessary in their jurisdictions to
secure and expend those federal funds in accordance with the intent
of federal law and this chapter.
   (b)  (1)    The regional surface transportation
program funds shall be apportioned by the department to the
metropolitan planning organizations designated pursuant to Section
134 of Title 23 of the United States Code and, in areas where none
has been designated, to the transportation planning agency designated
pursuant to Section 29532 of the Government Code. The funds shall be
apportioned in the manner and in accordance with the formula set
forth in subsection  (d)(3)   (d)(1)  of
Section 133 of Title 23 of the United States Code, except that the
apportionment shall be among all areas of the state.  Funds

    (2)     Funds  apportioned under this
 subdivision   section  shall remain
available for three federal fiscal years, including the federal
fiscal year apportioned.
   (c) Where county transportation commissions have been created by
Division 12 (commencing with Section 130000) of the Public Utilities
Code, all regional surface transportation program funds shall be
further apportioned by the metropolitan planning organization to the
county transportation commission on the basis of relative population.

   In the Monterey Bay region, all regional surface transportation
program funds shall be further apportioned, on the basis of relative
population, by the metropolitan planning organization to the regional
transportation planning agencies designated under subdivision (b) of
Section 29532 of the Government Code.
   (d) The applicable metropolitan planning organization, county
transportation commission, or transportation planning agency shall
annually apportion the regional surface transportation program funds
for projects in each county, as follows:
   (1) An amount equal to the amount apportioned under the
federal-aid urban program in federal fiscal year 1990-91 adjusted for
population. The adjustment for population shall be based on the
population determined in the 1990 federal census except that no
county shall be apportioned less than 110 percent of the
apportionment received in the 1990-91 fiscal year. These funds shall
be apportioned for projects implemented by cities, counties, and
other transportation agencies on a fair and equitable basis based
upon an annually updated five-year average of allocations. Projects
shall be nominated by cities, counties, transit operators, and other
public transportation agencies through a process that directly
involves local government representatives.
   (2) An amount not less than 110 percent of the amount that the
county was apportioned under the federal-aid secondary program in
federal fiscal year 1990-91, for use by that county.
   (e) The department shall notify each metropolitan planning
organization, county transportation commission, and transportation
planning agency receiving an apportionment under this section, as
soon as possible each year, of the amount of obligation authority
estimated to be available for program purposes.
   The metropolitan planning organization and transportation planning
agency, in cooperation with the department, congestion management
agencies, cities, counties, and affected transit operators, shall
select and program projects in conformance with federal law. The
metropolitan planning organization and transportation planning agency
shall submit its transportation improvement program prepared
pursuant to Section 134 of Title 23 of the United States Code to the
department for incorporation into the state transportation
improvement program not later than August 1 of each even-numbered
year beginning in 1994.
   (f) Not later than July 1 of each year, the metropolitan planning
organizations, and the regional transportation planning agencies,
receiving obligational authority under this article shall notify the
department of the projected amount of obligational authority that
each entity intends to use during the remainder of the current
federal fiscal year, including, but not limited to, a list of
projects that will be obligated by the end of the current federal
fiscal year. Any federal obligational authority that will not be used
shall be redistributed by the department to other projects in a
manner that ensures that the state will continue to compete for and
receive increased obligational authority during the federal
redistribution of obligational authority. If the department does not
have sufficient federal apportionments to fully use excess
obligational authority, the metropolitan planning organizations or
regional transportation planning agencies relinquishing obligational
authority shall make sufficient apportionments available to the
department to fund alternate projects, when practical, within the
geographical areas relinquishing the obligational authority.
Notwithstanding this subdivision, the department shall comply with
subsections  (d)(3)   (d)(1)  and (f) of
Section 133 of Title 23 of the United States Code.
   (g) A regional transportation planning agency that is not
designated as, nor represented by, a metropolitan planning
organization with an urbanized area population greater than 200,000
pursuant to the 1990 federal census may exchange its annual
apportionment received pursuant to this section on a
dollar-for-dollar basis for nonfederal State Highway Account funds,
which shall be apportioned in accordance with subdivision (d).
   (h) (1) If a regional transportation planning agency described in
subdivision (g) does not elect to exchange its annual apportionment,
a county located within the boundaries of that regional
transportation planning agency may elect to exchange its annual
apportionment received pursuant to paragraph (2) of subdivision (d)
for nonfederal State Highway Account funds.
   (2) A county not included in a regional transportation planning
agency described in subdivision (g), whose apportionment pursuant to
paragraph (2) of subdivision (d) was less than 1 percent of the total
amount apportioned to all counties in the state, may exchange its
apportionment for nonfederal State Highway Account funds. If the
apportionment to the county was more than 31/2 percent of the total
apportioned to all counties in the state, it may exchange that
portion of its apportionment in excess of 31/2 percent for nonfederal
State Highway Account funds. Exchange funds received by a county
pursuant to this section may be used for any transportation purpose.
   (i) The department shall be responsible for closely monitoring the
use of federal transportation funds, including regional surface
transportation program funds to assure full and timely use. The
department shall prepare a quarterly report for submission to the
commission regarding the progress in use of all federal
transportation funds. The department shall notify the commission and
the appropriate implementation agency whenever there is a failure to
use federal funds within the three-year apportionment period
established under  paragraph (2) of  subdivision (b).
   (j) The department shall provide written notice to implementing
agencies when there is one year remaining within the three-year
apportionment period established under  paragraph (2) of 
subdivision (b)  of this section  .
   (k) Within six months of the date of notification required under
subdivision (j), the implementing agency shall provide to the
department a plan to obligate funds that includes, but need not be
limited to, a list of projects and milestones.
   (  l  ) If the implementing agency has not met the
milestones established in the implementation plan required under
subdivision (k), prior to the end of the three-year apportionment
period established under  paragraph (2) of  subdivision (b),
the commission shall redirect those funds for use on other
transportation projects in the state.
   (m) Notwithstanding subdivisions (g) and (h), regional surface
transportation program funds available under this section exchanged
pursuant to Section 182.8 may be loaned to and expended by the
department. The department shall repay from the State Highway Account
to the Traffic Congestion Relief Fund all funds received as federal
reimbursements for funds exchanged under Section 182.8 as they are
received from the Federal Highway Administration, except that those
repayments are not required to be made more frequently than on a
quarterly basis.
   (n) Prior to determining the amount for local subvention required
by this section, the department shall first deduct the amount
authorized by the Legislature for increased department oversight of
the federal subvented program.
   SEC. 3.    Section 182.7 of the   Streets
and Highways Code   is amended to read: 
   182.7.  (a) Notwithstanding Sections 182 and 182.5, Sections 188,
188.8, and 825 do not apply to the expenditure of an amount of
federal funds equal to the amount of federal funds apportioned to the
state pursuant to subsection  (b)(2)   (b)(4)
 of Section 104 of Title 23 of the United States Code. These
funds shall be known as the congestion mitigation and air quality
program funds and shall be expended in accordance with Section 149 of
Title 23 of the United States Code. The department, the
transportation planning agencies, and the metropolitan planning
organizations may do all things necessary in their jurisdictions to
secure and expend those federal funds in accordance with the intent
of federal law and this chapter.
   (b) The congestion mitigation and air quality program funds
 , including any funds to which subsection (c) of Section 110
of Title 23 of the United States Code, as added by subdivision (a)
of Section 1310 of Public Law 105-178, applies,  shall be
apportioned by the department to the metropolitan planning
organizations designated pursuant to Section 134 of Title 23 of the
United States Code and, in areas where none has been designated, to
the transportation planning agency established by Section 29532 of
the Government Code.  The   All  funds 
apportioned to the state pursuant to Section 104(b)(4) of Title 23
of the United States Code  shall be apportioned to metropolitan
planning organizations and transportation planning agencies
responsible for air quality conformity determinations in federally
designated air quality nonattainment and maintenance areas within the
state  in the manner and in accordance with the formula set
forth in subsection (b)(2) of Section 104 of Title 23 of the United
States Code. Funds apportioned   as follows:  
   (1) The department shall apportion these funds in the ratio that
the weighted nonattainment and maintenance population in each
federally designated area within the state bears to the total of all
weighted nonattainment and maintenance area populations in the state.
 
   (2) Subject to paragraph (3), the weighted nonattainment and
maintenance area population shall be calculated by multiplying the
population of each area in the state that is a nonattainment area or
maintenance area as described in Section 149(b) of Title 23 of the
United States Code for ozone or carbon monoxide by the following
factors:  
   (A) A factor of 1.0, if, at the time of apportionment, the area is
a maintenance area.  
   (B) A factor of 1.0, if, at the time of the apportionment, the
area is classified as a marginal ozone nonattainment area under
Subpart 2 of Part D of Title I of the Clean Air Act (42 U.S.C. Sec.
7511 et seq.).  
   (C) A factor of 1.1, if, at the time of the apportionment, the
area is classified as a moderate ozone nonattainment area under
Subpart 2 of Part D of Title I of the Clean Air Act (42 U.S.C. Sec.
7511 et seq.).  
   (D) A factor of 1.2, if, at the time of the apportionment, the
area is classified as a serious ozone nonattainment area under
Subpart 2 of Part D of Title I of the Clean Air Act (42 U.S.C. Sec.
7511 et seq.).  
   (E) A factor of 1.3, if, at the time of the apportionment, the
area is classified as a severe ozone nonattainment area under Subpart
2 of Part D of Title I of the Clean Air Act (42 U.S.C. Sec. 7511 et
seq.).  
   (F) A factor of 1.4, if, at the time of the apportionment, the
area is classified as an extreme ozone nonattainment area under
Subpart 2 of Part D of Title I of the Clean Air Act (42 U.S.C. Sec.
7511 et seq.).  
   (G) A factor of 1.0, if, at the time of the apportionment, the
area is not a nonattainment or maintenance area for ozone, but is
classified under Subpart 3 of Part D of Title I of the Clean Air Act
(42 U.S.C. Sec. 7512 et seq.) as a nonattainment area for carbon
monoxide.  
   (H) A factor of 1.0, if, at the time of apportionment, an area is
designated as a nonattainment area for ozone under Subpart 1 of Part
D of Title I of the Clean Air Act (42 U.S.C. Sec. 7512 et seq.).
 
   (3) If, in addition to being designated as a nonattainment or
maintenance area for ozone as described in paragraph (2), any county
within the area is also classified under Subpart 3 of Part D of Title
I of the Clean Air Act (42 U.S.C. Sec. 7512 et seq.) as a
nonattainment or maintenance area described in paragraph (2) for
carbon monoxide, the weighted nonattainment or maintenance area
population of the county, as determined under subparagraphs (A) to
(F), inclusive, or subparagraph (H) of paragraph (2), shall be
further multiplied by a factor of 1.2. 
    (4)     Funds allocated  under this
subdivision shall remain available for three federal fiscal years,
including the federal fiscal year apportioned. 
Notwithstanding the foregoing, the formula for distributing
apportionments made to metropolitan planning organizations and
transportation planning agencies eligible for funding according to
subsection (b)(2) of Section 104 of Title 23 of the United States
Code shall, for the 2007 and 2008 federal fiscal years, provide
apportionments for the Monterey Bay and Santa Barbara regions such
that each shall receive 50 percent of its 2005 apportionment in
federal fiscal year 2007 and 25 percent of its 2005 apportionment in
federal fiscal year 2008. 
   (c) Notwithstanding subdivision (b), where county transportation
commissions have been created by Division 12 (commencing with Section
130000) of the Public Utilities Code, all congestion mitigation and
air quality program funds shall be further apportioned by the
metropolitan planning organization to the county transportation
commission on the basis of relative population within the federally
designated air quality nonattainment and maintenance areas after
first apportioning to the nonattainment and maintenance areas in the
manner and in accordance with the formula set forth in 
subsection (b)(2) of Section 104 of Title 23 of the United States
Code   subdivision (b)  .
   In the Monterey Bay region, all congestion mitigation and air
quality improvement program funds shall be further apportioned, on
the basis of relative population, by the metropolitan planning
organization to the regional transportation planning agencies
designated under subdivision (b) of Section 29532 of the Government
Code.
   (d) The department shall notify each metropolitan planning
organization, transportation planning agency, and county
transportation commission receiving an apportionment under this
section, as soon as possible each year, of the amount of obligational
authority estimated to be available for expenditure from the federal
apportionment. The metropolitan planning organizations,
transportation planning agencies, and county transportation
commissions, in cooperation with the department, congestion
management agencies, cities and counties, and affected transit
operators, shall select and program projects in conformance with
federal law. Each metropolitan planning organization and
transportation planning agency shall, not later than August 1 of each
even-numbered year beginning in 1994, submit its transportation
improvement program prepared pursuant to Section 134 of Title 23 of
the United States Code to the department for incorporation into the
state transportation improvement program.
   (e) Not later than July 1 of each year, the metropolitan planning
organizations and the regional transportation planning agencies
receiving obligational authority under this section, shall notify the
department of the projected amount of obligational authority that
each entity intends to use during the remainder of the current
federal fiscal year, including, but not limited to, a list of
projects that will use the obligational authority. Any federal
obligational authority that will not be used shall be redistributed
by the department to other projects in a manner that ensures that the
state will continue to compete for and receive increased
obligational authority during the federal redistribution of
obligational authority. If the department does not have sufficient
federal apportionments to fully use excess obligational authority,
the metropolitan planning organization or transportation planning
agency relinquishing obligational authority shall make sufficient
 apportionments   funding  available to the
department to fund alternate projects, when practical, within the
geographical areas relinquishing the obligational authority.
Notwithstanding this subdivision, the department shall comply with
subsection (f) of Section 133 of Title 23 of the United States Code.
   (f) The department shall be responsible for closely monitoring the
use of federal transportation funds, including congestion management
and air quality funds to assure full and timely use. The department
shall prepare a quarterly report for submission to the commission
regarding the progress in use of all federal transportation funds.
The department shall notify the commission and the appropriate
implementation agency whenever there is a failure to use federal
funds within the three-year apportionment period established under
 paragraph (4) of  subdivision (b).
   (g) The department shall provide written notice to implementing
agencies when there is one year remaining within the three-year
apportionment period established under  paragraph (4) of 
subdivision (b).
   (h) Within six months of the date of notification required under
subdivision (g), the implementing agency shall provide to the
department a plan to obligate funds that includes, but need not be
limited to, a list of projects and milestones.
   (i) If the implementing agency has not met the milestones
established in the implementation plan required under subdivision
(h), prior to the end of the three-year apportionment period
established under  paragraph (4) of  subdivision (b), the
commission shall redirect those funds for use on other transportation
projects in the state.
   (j) Congestion mitigation and air quality program funds available
under this section exchanged pursuant to Section 182.8 may be loaned
to and expended by the department. The department shall repay from
the State Highway Account to the Traffic Congestion Relief Fund all
funds received as federal reimbursements for funds exchanged under
Section 182.8 as they are received from the Federal Highway
Administration, except that those repayments are not required to be
made more frequently than on a quarterly basis.
   (k) Prior to determining the amount for local subvention required
by this section, the department shall first deduct the amount
authorized by the Legislature for increased department oversight of
the federal subvented program.
   SEC. 4.    Section 2331 of the   Streets and
Highways Code   is amended to read: 
   2331.  The Safe, Accountable, Flexible, Efficient Transportation
Equity Act-A Legacy for Users of 2005 (Public Law 109-059), also
known as SAFETEA-LU, elevated the Highway Safety Improvement Program
(HSIP) to a core program (23 U.S.C. Sec. 148). SAFETEA-LU authorized
appropriations for programs relating to highway safety improvements
that can reduce the number of fatal and serious injury accidents. The
 federal Moving Ahead for Progress in the 21st Century Act
(MAP-21; Public Law 112-141), continued the  core HSIP program
 includes two set-aside programs: the railway-highway
crossing program (23 U.S.C. Sec. 130) and the high-risk rural roads
program (23 U.S.C. Sec. 148(f))  . The purpose of this
chapter is to implement these programs in this state. The commission,
the department, boards of supervisors, and city councils are
authorized to do all things necessary in their respective
jurisdictions to secure and expend federal funds in accordance with
the intent of  that  federal  act 
 law  and this chapter, and to coordinate with local law
enforcement agencies' community policing efforts.
   SEC. 5.    Section 2333 of the   Streets and
Highways Code   is amended to read: 
   2333.  In each annual proposed budget prepared pursuant to Section
165, there shall be included an amount equal to the estimated
apportionment available from the federal government for the programs
described in Sections 2331 and 2333.5. The commission may allocate a
portion of those funds each year for use on city streets and county
roads  , as permissible by federal law  . It is the intent
of the Legislature that the commission allocate the total funds
received from the federal government under Section 148 of Title 23 of
the United States Code in approximately equal amounts between state
highways and local roads  , to the extent   permissible
by federal law and after providing for a set aside for the Safe
Routes to School Program described in Section 2333.5 that is equal to
California's 2011-12 federal fiscal year apportionment for the Safe
Routes to School Program as previously authorized under Section 1404
of SAFETEA-LU. To the extent that certain activities eligible under
the Safe Routes to School Program as it existed under SAFETEA-LU are
not eligible for funding under the HSIP Program as it exists under
MAP-21, the department shall allocate a like amount of replacement
funds from any other federal funds available for obligation and
expenditure by the department, including, but not limited to, Surface
Transportation Program funds pursuant to subdivision (b) of Section
182.51  . Notwithstanding any other provision of law, the share
of any railroad of the cost of maintaining railroad crossing
protection facilities funded, in whole or in part, by funds described
in Section 2331 shall be the same share it would be if no federal
funds were involved and the crossing protection facilities were
funded pursuant to an order of the Public Utilities Commission
pursuant to Section 1202 of the Public Utilities Code; and in case of
dispute, the Public Utilities Commission shall determine that share
pursuant to this section.
   SEC. 6.    Section 2333.5 of the   Streets
and Highways Code   is amended to read: 
   2333.5.  (a) The department, in consultation with the Department
of the California Highway Patrol, shall establish and administer a
"Safe Routes to School" construction program for construction of
bicycle and pedestrian safety and traffic calming projects  to be
funded in federal fiscal years 2012-13 and 2013-14, and as may be
continued by federal law in subsequent years, as provided by the set
aside from HSIP and otherwise in Section 2333  .
                                    (b) The department shall award
grants to local governmental agencies under the program based on the
results of a statewide competition that requires submission of
proposals for funding and rates those proposals on all of the
following factors:
   (1) Demonstrated needs of the applicant.
   (2) Potential of the proposal for reducing child injuries and
fatalities.
   (3) Potential of the proposal for encouraging increased walking
and bicycling among students.
   (4) Identification of safety hazards.
   (5) Identification of current and potential walking and bicycling
routes to school.
   (6) Use of a public participation process, including, but not
limited to, a public meeting that satisfies all of the following:
   (A) Involves the public, schools, parents, teachers, local
agencies, the business community, key professionals, and others.
   (B) Identifies community priorities and gathers community input to
guide the development of projects included in the proposal.
   (C) Ensures that community priorities are reflected in the
proposal.
   (D) Secures support for the proposal by relevant stakeholders.
   (7) Benefit to a low-income school, defined for purposes of this
section to mean a school where at least 75 percent of students are
eligible to receive free or reduced-price meals under the National
School Lunch Program.
   (c) Any annual budget allocation to fund grants described in
subdivision (b) shall be in addition to any federal funding received
by the state that is designated for "Safe Routes to School" projects
pursuant to Section 1404 of SAFETEA-LU or any similar program funded
through a subsequent transportation act.
   (d) Any federal funding received by the state that is designated
for "Safe Routes to School" projects shall be distributed by the
department under the competitive grant process, consistent with all
applicable federal requirements.
   (e) Prior to the award of any construction grant or the department'
s use of those funds for a "Safe Routes to School" construction
project encompassing a freeway, state highway, or county road, the
department shall consult with, and obtain approval from, the
Department of the California Highway Patrol, ensuring that the "Safe
Routes to School" proposal complements the California Highway Patrol'
s Pedestrian Corridor Safety Program and is consistent with its
statewide pedestrian safety statistical analysis.
   (f) The department is encouraged to coordinate with law
enforcement agencies' community policing efforts in establishing and
maintaining the "Safe Routes to School" construction program.
   (g) In the development of guidelines and procedures governing this
program, the department shall fully consider the needs of low-income
schools.
   SEC. 7.    The heading of Chapter 7.5 (commencing
with Section 2370) of Division 3 of the   Streets and
Highways Code   is amended to read: 
      CHAPTER 7.5.  FEDERAL FUNDS FOR TRANSPORTATION 
ENHANCEMENTS   ALTERNATIVES 


   SEC. 8.    Section 2370 of the   Streets and
Highways Code   is amended to read: 
   2370.  As used in this chapter, the following terms have the
following meanings:
   (a) "Community conservation corps" shall have the same meaning as
defined in Section 14507.5 of the Public Resources Code.
   (b) "Transportation  enhancement  
alternatives  project" means a project constructed or undertaken
with funds made available to the state pursuant to Section 
133(b)(8)   213  of Title 23 of the United States
Code.
   SEC. 9.    Section 2371 of the   Streets and
Highways Code   is amended to read: 
   2371.  (a) The department, in consultation with community
conservation corps, the California Conservation Corps, the
commission, regional transportation planning agencies, county
transportation commissions or authorities, and congestion management
agencies, shall develop criteria that give priority in the selection
of projects to the sponsors of eligible projects that partner with,
or commit to employ the services of, a community conservation corps
or the California Conservation  Corp   Corps
 to construct or undertake the project.
   (b) Regional transportation planning agencies, county
transportation commissions or authorities, and congestion management
agencies, when selecting candidates for transportation 
enhancement   alternatives  projects, shall utilize
the criteria in subdivision (a) that give priority in the selection
of projects to the sponsors of eligible projects that partner with,
or commit to employ the services of, a community conservation corps
or the California Conservation Corps to construct or undertake the
project.
   SEC. 10.    Section 2372 of the   Streets
and Highways Code   is amended to read:
   2372.  The department, regional transportation planning agencies,
county transportation commissions or authorities, or congestion
management agencies shall be authorized to enter into cooperative
agreements, grant agreements, or procurement contracts with community
conservation corps pursuant to the simplified contract requirements
authorized by Section 18.36(j) of Title 49 of the Code of Federal
Regulations in order to enable community conservation corps to
utilize transportation  enhancement  
alternatives  project funds.
   SEC. 11.    Section 2373 of the   Streets
and Highways Code   is amended to read: 
   2373.  The commission, when developing guidelines for the state
transportation improvement program and the state highway operations
and protection program, shall include guidance to encourage the
allocation of funds for transportation  enhancement 
 alternatives  projects to qualified community conservation
corps and the California Conservation Corps as partners with
applicants that commit to employ the services of corps members in the
construction of those projects.
   SEC. 12.    Section 2374 of the   Streets
and Highways Code   is amended to read: 
   2374.  The criteria prepared pursuant to subdivision (a) of
Section 2373 and the guidelines prepared pursuant to Section 2371
relative to the allocation of funds for transportation 
enhancement   alternatives  projects to qualified
community conservation corps and the California Conservation Corps
shall further the purposes of this chapter.
   SEC. 13.    Section 2375 is added to the  
Streets and Highways Code   , to read:  
   2375.  Projects or activities eligible to be funded under this
chapter as transportation alternatives projects may include any
eligible projects or activities under Title 23 of the United States
Code, including the following:
   (a) Transportation alternatives, as defined in Section 101 of
Title 23 of the United States Code.
   (b) The federal Recreational Trails Program under Section 206 of
Title 23 of the United States Code.
   (c) The federal Safe Routes to School Program under Section 1404
of the SAFETEA-LU (23 U.S.C. Sec. 402; Public Law 109-59).
   (d) Planning, designing, or constructing boulevards and other
roadways largely in the right-of-way of former interstate system
routes or other divided highways. 
   SEC. 14.    Section 2376 is added to the  
Streets and Highways Code   , to read:  
   2376.  For each of the 2012-13 and 2013-14 fiscal years, the
department shall allocate the funds reserved by the United States
Secretary of Transportation from the state's apportionments to
implement transportation alternatives projects as provided in this
section:
   (a) (1) Fifty percent in each fiscal year shall be allocated to,
and may be obligated by, metropolitan transportation organizations in
proportion to their relative shares of the population of the state
in the following areas:
   (A) In urbanized areas of the state with an urbanized area
population of over 200,000.
   (B) In areas of the state other than urban areas with a population
greater than 5,000 and less than or equal to 200,000.
   (C) In other areas of the state.
   (2) Fifty percent may be obligated in any area of the state.
   (b) Funds attributed to an urbanized area under paragraph (2) of
subdivision (a) may be obligated in the metropolitan area established
under Section 134 of Title 23 of the United States Code that
encompasses the urbanized area.
   (c) Except as provided in paragraph (2) of subdivision (a), the
amount of funds that the department is required to obligate under
subparagraph (A) of paragraph (1) of subdivision (a) shall be
obligated in urbanized areas described in that subparagraph based on
the relative population of the areas.
   (d) The allocation of funds required under subdivision (a) shall
be after the deduction of a set aside equal to the amount of the
funds apportioned to the state for federal fiscal year 2009 under
Section 104(h)(2) of Title 23 of the United States Code to be
obligated for projects relating to recreational trails under Section
206 of Title 23 of the United States Code. The state shall return 1
percent of those set aside funds to the United States Secretary of
Transportation for the administration of that program as provided in
Section 2380. The state shall also comply with the provisions of the
administration of the recreational trails program under Section 206
of Title 23 of the United States Code, including the use of
apportioned funds described under subsection (d)(3)(A) of that
section. 
   SEC. 15.   Section 2377 is added to the  
Streets and Highways Code   , to read:  
   2377.  (a) The department or metropolitan planning organization,
as applicable, shall each develop a competitive process to allow
eligible entities to submit projects for funding that achieve the
objectives of eligible projects and activities.
   (b) "Eligible entity" means all of the following:
   (1) A local government.
   (2) A regional transportation authority.
   (3) A transit agency.
   (4) A natural resource or public land agency.
   (5) A school district, local educational agency, or school.
   (6) A tribal government.
   (7) Any other local or regional governmental entity with
responsibility for or oversight of transportation or recreational
trails, other than a metropolitan planning organization or the state,
that the state determines to be eligible, consistent with the goals
of this section.
   (c) For funds suballocated to metropolitan planning areas for
urbanized areas of the state with an urbanized area population of
over 200,000, the metropolitan planning organization shall select
projects carried out within the boundaries of the applicable
metropolitan planning area, in consultation with the department.
   (d) Notwithstanding subdivisions (a) and (c), where county
transportation commissions have been created by Division 12
(commencing with Section 130000) of the Public Utilities Code, all
transportation alternatives funds shall be further suballocated by
the metropolitan planning organization to the county transportation
commission on the basis of relative population and the county
transportation commission shall develop the competitive selection
process. 
   SEC. 16.    Section 2378 is added to the  
Streets and Highways Code   , to read:  
   2378.  For funds suballocated to a metropolitan planning area
under subparagraph (A) of paragraph (1) of subdivision (a) of Section
2376, the metropolitan planning organization or county
transportation commission created by Division 12 (commencing with
Section 130000) of the Public Utilities Code shall select projects
carried out within the boundaries of the applicable metropolitan
planning area, in consultation with the department. 
   SEC. 17.    Section 2379 is added to the  
Streets and Highways Code   , to read:  
   2379.  Beginning with the 2012-13 fiscal year, if on August 1 of
that fiscal year the unobligated balance of available funds reserved
by the state under Section 213 of Title 23 of the United States Code
exceeds 100 percent of the reserved amount in a fiscal year, the
department may thereafter obligate the amount of excess funds for any
eligible activity, as follows:
   (a) An activity that is eligible to receive funding under Section
2375.
   (b) An activity for which the United States Secretary of
Transportation has approved the obligation of funds for any state
under Section 149 of Title 23 of the United States Code. 
   SEC. 18.    Section 2380 is added to the  
Streets and Highways Code   , to read:  
   2380.  (a) The department shall obligate an amount of funds
reserved under Section 213 of Title 23 of the United States Code
equal to the amount of the funds apportioned to the state for the
2009-10 fiscal year under Section 104(h)(2) of Title 23 of the United
States Code for projects relating to recreational trails under
Section 206 of Title 23 of the United States Code.
   (b) The department shall return 1 percent of those funds to the
United States Secretary of Transportation for the administration of
that program.
   (c) The department shall comply with the provisions of the
administration of the federal Recreational Trails Program under
Section 206 of Title 23 of the United States Code, including the use
of apportioned funds described under subsection (d)(3)(A) of that
section. 
   SEC. 19.    Section 2381 is added to the  
Streets and Highways Code   , to read:  
   2381.  The state may opt out of the federal Recreational Trails
Program under subsection (f) of Section 213 of Title 23 of the United
States Code if the Governor notifies the United States Secretary of
Transportation not later than 30 days prior to apportionments being
made for any fiscal year.  
  SECTION 1.    It is the intent of the Legislature
to make statutory changes relating to the Budget Act of 2012.