Amended in Assembly July 1, 2014

Amended in Assembly June 9, 2014

Amended in Assembly May 23, 2014

Amended in Assembly September 3, 2013

Amended in Assembly July 3, 2013

Amended in Senate April 15, 2013

Senate Bill No. 486

Introduced by Senator DeSaulnier

( begin delete Coauthor: Senator end delete begin insert Coauthors: Senators Cannella, Gaines, and end insert Liu)

begin insert

(Coauthor: Assembly Member Lowenthal)

end insert

February 21, 2013

An act to amend Sections 14526, 14526.5, and 14536 of, to add Sections 14523.5, 14524.3, begin delete 14525.7, end delete begin insert 14524.4, end insert and 14526.4 to, and to repeal Section 14009 of, the Government Code, relating to transportation.

LEGISLATIVE COUNSEL’S DIGEST

SB 486, as amended, DeSaulnier. Department of Transportation: goals and performance measures.

Existing law provides that the Department of Transportation shall have full possession and control of the state highway system and specifies the duties and responsibilities of the department on various other transportation matters. Existing law requires the department to prepare the interregional transportation improvement program which, along with the regional transportation improvement programs adopted by regional transportation agencies, becomes part of the state transportation improvement program and identifies most transportation capital improvements to be undertaken over a multiyear period with state and federal funds. Existing law also requires the department to separately prepare the state highway operation and protection program, which identifies capital projects limited to maintenance, safety, and rehabilitation work necessary to preserve and protect the state highway system. Existing law requires the California Transportation Commission to, among other things, adopt the state transportation improvement program and approve the state highway operation and protection program, and further provides for the commission to allocate transportation capital funds to specific projects contained in the state transportation improvement program, but not the state highway operation and protection program, which is managed by the department.

This bill would begin delete require end delete begin insert authorize end insert the commission, begin delete on or before January 31, 2015, and every 4 years thereafter, and end delete in consultation with the department, to develop and adopt specific goals for the begin delete department to achieve specified priorities relative to the operation of effective transportation systems, the maintenance of the state highway system, and the reduction of greenhouse gas emissions in the department’s activities. end delete begin insert department. end insert The bill would require the commission, in consultation with the department, to identify performance measures begin delete in that end delete begin insert with end insert regard begin insert to the goals that the commission elects to adopt end insert and to include an evaluation of the department’s progress in meeting the goals in the commission’s annual report to the Legislature.

This bill would begin delete also require the commission to establish guidelines, including specified standards, for the department to follow in the development and selection of projects for the interregional transportation improvement program, and would require the commission to adopt the program. end delete begin insert authorize the commission to prescribe study areas for analysis and evaluation by the department and to establish guidelines for updates to the California Transportation Plan, commencing with the plan required to be updated by December 31, 2020. end insert The bill would require the department, on or before December 15, 2015, and begin delete every 5 years thereafter, end delete begin insert on or before December 15, 2020, end insert to begin delete adopt and end delete submit to the commission begin insert for approval end insert an interregional transportation strategic plan directed at achieving a high-functioning and balanced interregional transportation begin delete system, reflecting specified legislative priorities. The end delete begin insert system. end insert

begin insert The end insert bill would begin insert revise the procedures for the development of the interregional transportation improvement program by requiring the department to submit a draft 5-year interregional transportation improvement program to the commission by October 15 of each odd-numbered year. The bill would end insert require projects included in the begin insert draft end insert interregional transportation improvement program to be consistent with the interregional transportation strategic begin delete plan, and would end delete begin insert plan. The bill would end insert require the commission to hold public hearings begin delete on the end delete begin insert by November 15 of each odd-numbered year regarding the draft end insert program begin delete to end delete begin insert and to end insert attempt to reconcile any objections. begin insert The department would be required to consider the input received at the hearings and develop and submit a final interregional transportation improvement program to the commission for approval not later than December 15 of each odd-numbered year. end insert

The bill would also require the commission begin insert , in cooperation with the department, end insert to establish guidelines, including specified standards, for the department to follow in the development and selection of projects for the state highway operation and protection program. The bill would require preparation of a project study report or major investment study prior to inclusion by the department of a project in the state highway operation and protection program. The bill would specifically authorize the commission to decline to adopt the program if it determines that the program is not sufficiently consistent with the guidelines.

Existing law requires the commission to submit an annual report to the Legislature including, among other things, a discussion of major transportation policy issues.

This bill would require the annual report to contain a discussion of the department’s project begin delete support end delete costs for capital projects.

Existing law requires the department, by June 30, 1994, to apply for federal funding to be used for conversion of data pertaining to the state highway system from paper storage to intelligent computer information, and to commence implementation of the conversion process within 6 months of receiving federal funding approval.

This bill would repeal these provisions.

The bill would also make legislative findings and declarations.

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

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

SECTION 1.  

The Legislature finds and declares all of the
following:

(a) The state recently contracted with the State Smart
Transportation Initiative (SSTI) to conduct an external assessment
of the Department of Transportation and provide recommendations
for improving the department’s performance.

(b) The SSTI assessment found that the department has not kept
pace with changes in transportation policy and called for reforms
to modernize the department’s mission, strengthen its performance,
and help align the department with the state’s policy goals.

(c) The regional transportation planning process is an inclusive,
exhaustive process that moves from a longer-term vision,
represented by the regional transportation plan, to a short-term list
of specific projects in the regional transportation improvement
program, which implements the long-term vision.

begin delete

(d) The department, which is responsible for the maintenance
and operation of the state highway system and for the state’s
interregional transportation system, does not currently have in
place a similarly inclusive planning process that moves from vision
to implementation.

end delete begin insert

(d) The regional transportation planning process begins with
the California Transportation Commission offering guidance and
prescribing study areas for analysis and evaluation by the regional
agencies, as well as providing guidelines for the preparation of
the regional transportation plans.

end insert begin insert

(e) At the state level, the California Transportation Plan (state
plan) is intended to guide long-term, inclusive planning for state
transportation systems. The commission should provide guidance
for the development of the state plan just as it does for regional
transportation plans.

end insert begin insert

(f) An intensive effort is currently underway by the department
to develop the next state plan by December 2015. Asking the
commission to provide guidance now would be disruptive to that
effort. However, the commission’s guidance on the interregional
transportation strategic plan (interregional plan), which is one of
the elements of the state plan, would be helpful in the interim until
development of the next state plan, when the commission’s
guidance should directly inform the development of the state plan.

end insert begin insert

(g) The interregional plan, updated based on the commission’s
guidance to reflect current state policies, goals, and objectives,
can appropriately provide information regarding the department’s
investments in the interregional transportation improvement
program so that this program is more closely aligned with state
goals and policies.

end insert begin delete

(e)

end delete

begin insert (h) end insert  Developing a process for the department to follow in
development of the state’s interregional and highway maintenance
and operations programs similar to the regional transportation
planning process can create a framework for the department to
begin to address the flaws identified in the SSTI assessment and
allow the state to catch up with the changes in transportation policy
such that the department can once again be aligned with the state’s
policy goals.

SEC. 2.  

Section 14009 of the Government Code is repealed.

SEC. 3.  

Section 14523.5 is added to the Government Code, to
read:

14523.5.  

(a)  begin delete No later than January 31, 2015, and every four
years thereafter, the end delete begin insert The end insert commission, in consultation with the
department, begin delete shall end delete begin insert may end insert develop and adopt specific goals for the
begin delete department to achieve each of the following priorities: end delete begin insert department. end insert

begin delete

(1) The operation of effective transportation systems for moving
people and goods between regions and through the state using, for
example, traffic demand strategies and technology that do not
require the addition of capacity.

(2) The maintenance of the state’s state highway system in a
state of good repair.

(3) The reduction of greenhouse gas emissions to the maximum
extent feasible in all of the department’s activities.

end delete

(b) The commission, in consultation with the department, shall
identify performance measures for begin delete each of end delete the goals begin delete adopted end delete begin insert that
the commission elects to adopt end insert pursuant to subdivision (a) and
shall include an evaluation of the department’s progress toward
meeting these goals in its annual report to the Legislature pursuant
to Section 14535. The department shall comply with requests from
the commission for information necessary to perform the required
evaluation.

begin delete

SEC. 4.  

Section 14524.3 is added to the Government Code, to
read:

14524.3.  

(a) On or before December 15, 2015, and every five
years thereafter, the department shall adopt and submit to the
commission an interregional transportation strategic plan directed
at achieving a high-functioning and balanced interregional
transportation system. The plan shall be action oriented and
pragmatic, considering both the short-term and long-term future,
and shall present clear, concise policy guidance to the department
for managing the state’s transportation system.

(b) The plan shall reflect, in order, the following legislative
priorities:

(1) Maintaining the state’s existing transportation system in a
state of good repair.

(2) Addressing the state’s responsibility of efficient goods
movement through and within the state.

(3) Improving system operations through traffic demand
strategies and technology.

(4) Improving the livability of the state’s transportation system,
and improving access to the system to all users, where appropriate.

(5) Reducing greenhouse gas emissions consistent with the
California Global Warming Solutions Act of 2006 (Division 25.5
(commencing with Section 38500) of the Health and Safety Code).

(6) Assisting regions with congestion reduction when
appropriate.

(c) The interregional transportation strategic plan shall be
consistent with the California Transportation Plan required by
Section 65071.

SEC. 5.  

Section 14525.7 is added to the Government Code, to
read:

14525.7.  

(a) The commission shall adopt guidelines for the
department to follow in the development and the selection of
projects for the state’s interregional transportation improvement
program required by Section 14526.

(b) The guidelines shall include, but not be limited to, all of the
following:

(1) Standards for project deliverability.

(2) Standards for identifying projects and project components.

(3) Standards for cost estimating.

(4) Programming methods for cost increases and schedule
changes.

(5) Objective criteria for measuring system performance and
cost-effectiveness of candidate projects.

(c) The guidelines shall, at a minimum, require that, for each
project, the program shall specify the allocation or expenditure
amount and the allocation or expenditure year for each project
component, as necessary.

(d) The guidelines shall be the complete and full statement of
the policy, standards, and criteria that the commission intends to
use in selecting interregional transportation projects to be included
in the state transportation improvement program.

(e) The commission may amend the adopted guidelines after
conducting at least one public hearing. The commission shall make
a reasonable effort to adopt the amended guidelines prior to its
adoption of the fund estimate pursuant to Section 14525. In no
event shall the adopted guidelines be amended, or otherwise
revised, modified, or altered during the period commencing 30
days after the adoption of the fund estimate pursuant to Section
14525 and before the adoption of the state transportation
improvement program pursuant to Section 14529.

end delete

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 14524.3 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 14524.3. end insert   

Commencing with the update to the California
Transportation Plan that is required on or before December 31,
2020, the commission may, in cooperation with the department,
prescribe study areas for analysis and evaluation by the department
and may establish guidelines for the preparation of the updates
to the California Transportation Plan prepared pursuant to Section
65071.

end insert

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 14524.4 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 14524.4. end insert   

(a) On or before December 15, 2015, and on or
before December 15, 2020, the department shall submit to the
commission for approval an interregional transportation strategic
plan directed at achieving a high-functioning and balanced
interregional transportation system. The plan shall be
action-oriented and pragmatic, considering both the short-term
and long-term future, and shall present clear, concise policy
guidance to the department for managing the state’s transportation
system.

(b) The interregional transportation strategic plan shall be
consistent with the California Transportation Plan as updated
pursuant to Section 65071.

end insert

SEC. 6.  

Section 14526 of the Government Code is amended
to read:

14526.  

(a) Not later than begin delete December 15, 2001, and December
15 of each odd-numbered year thereafter, end delete begin insert October 15 of each
odd-numbered year, end insert based on the guidelines established pursuant
to Section begin delete 14525.7, end delete begin insert 14530.1, end insert and after consulting with the
transportation planning agencies, county transportation
commissions, and transportation authorities, the department shall
submit to the commission begin delete for adoption its end delete begin insert the draft end insert five-year
interregional transportation improvement program consisting of
all of the following:

(1) Projects to improve state highways, pursuant to subdivision
(b) of Section 164 of the Streets and Highways Code.

(2) Projects to improve the intercity passenger rail system.

(3) Projects to improve interregional movement of people,
vehicles, and goods.

(b) Projects included in the interregional transportation
improvement program shall be consistent with the state
interregional transportation strategic plan prepared pursuant to
Section begin delete 14524.2. end delete begin insert 14524.4. end insert

(c) Projects may not be included in the begin insert draft end insert interregional
transportation improvement program without a project study report
or major investment study.

(d) Major projects shall include current costs updated as of
November 1 of the year of submittal and escalated to the
appropriate year, and shall be consistent with, and provide the
information required in, subdivision (b) of Section 14529.

(e) Projects included in the begin insert draft end insert interregional transportation
improvement program shall be consistent with the adopted regional
transportation plan.

(f)  begin delete Prior to adopting the department’s interregional transportation
improvement plan, the end delete begin insert On or before November 15 of each
odd-numbered year, the end insert commission shall hold begin delete not less than end delete begin insert at
least end insert one hearing in northern California and one hearing in southern
California to attempt to reconcile any objections by any member
of the public or other stakeholder to the begin delete department’s plan. end delete begin insert draft
interregional transportation improvement program. end insert

begin insert

(g) The department shall consider the input received at the
hearings conducted pursuant to subdivision (f) and shall develop
a final interregional transportation improvement program. The
final interregional transportation improvement program shall
include a summary of the major comments received at the hearings
and responses to those comments, and shall be submitted to the
commission for approval not later than December 15 of each
odd-numbered year.

end insert begin insert

(h) The commission shall, when approving the final interregional
transportation improvement program pursuant to subdivision (g),
evaluate the extent to which the program is consistent with funding
priorities established in Section 167 of the Streets and Highways
Code.

end insert

SEC. 7.  

Section 14526.4 is added to the Government Code, to
read:

14526.4.  

(a) The begin delete commission end delete begin insert commission, in cooperation with
the department, end insert shall establish guidelines for the department to
follow in the development and selection of projects for the state
highway operation and protection program required by Section
14526.5.

(b) The guidelines shall include, but not be limited to, all of the
following:

(1) Standards for project deliverability.

(2) Standards for identifying projects and project components.

(3) Standards for cost estimating.

(4) Programming methods for cost increases and schedule
changes.

(5) Objective criteria for measuring system performance and
cost-effectiveness of candidate projects.

(c) The guidelines shall, at a minimum, require that, for each
project, the state highway operation and protection program shall
specify the allocation or expenditure amount and the allocation or
expenditure year for each project component, as necessary.

(d) The guidelines shall be the complete and full statement of
the policy, standards, and criteria that the commission intends to
use in reviewing and adopting the state highway operation and
protection program.

SEC. 8.  

Section 14526.5 of the Government Code is amended
to read:

14526.5.  

(a) Based on the guidelines adopted pursuant to
Section 14526.4, the department shall prepare a state highway
operation and protection program for the expenditure of
transportation funds for major capital improvements that are
necessary to preserve and protect the state highway system. Projects
included in the program shall be limited to capital improvements
relative to maintenance, safety, and rehabilitation of state highways
and bridges that do not add a new traffic lane to the system.

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

(c) Projects may not be included in the state highway operation
and protection program without a project study report or major
investment study.

(d) The program shall be submitted to the commission not later
than January 31 of each even-numbered year. Prior to submitting
the plan, the department shall make a draft of its proposed program
available to transportation planning agencies for review and
comment and shall include the comments in its submittal to the
commission.

(e) The commission may review the program relative to its
overall adequacy, consistency with the guidelines adopted pursuant
to Section begin delete 14526.4, end delete begin insert 14526.4 and funding priorities established in
Section 167 of the Streets and Highway Code, end insert the level of annual
funding needed to implement the program, and the impact of those
expenditures on the state transportation improvement program.
The commission shall adopt the program and submit it to the
Legislature and the Governor not later than April 1 of each
even-numbered year. The commission may decline to adopt the
program if the commission determines that the program is not
sufficiently consistent with the guidelines established in Section
14526.4.

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

SEC. 9.  

Section 14536 of the Government Code is amended
to read:

14536.  

(a) The annual report shall include an explanation and
summary of major policies and decisions adopted by the
commission during the previously completed state and federal
fiscal year, with an explanation of any changes in policy associated
with the performance of its duties and responsibilities over the
past year.

(b) The annual report may also include a discussion of any
significant upcoming transportation issues anticipated to be of
concern to the public and the Legislature.

(c) As part of its role described in Section 14520, the
commission’s annual report shall also include a discussion of the
department’s project begin delete support end delete costs, including analyses of the
department’s expenditures on project support begin delete based on cost
estimates end delete at the following points in time:

(1) Original programming date.

(2) Upon completion of the environmental review begin delete process. end delete
begin insert process and the approval of the project. end insert

(3) Upon completion of final design and when begin delete contract is let. end delete
begin insert the construction contract is awarded. end insert

(4) Project closeout date.