BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 486
                                                                  Page 1

          Date of Hearing:   June 23, 2014

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                   SB 486 (DeSaulnier) - As Amended:  July 1, 2014

           SENATE VOTE  :  Not applicable
           
          SUBJECT  :  California Department of Transportation:  planning and  
          programming

           SUMMARY  :  Modifies processes for developing and adopting the  
          California Department of Transportation's (Caltrans') long-range  
          transportation planning and programming documents.   
          Specifically,  this bill  :  

          1)Makes legislative findings and declarations regarding:

             a)   A recent external assessment of Caltrans that called for  
               reforms to update the department's mission, strengthen its  
               performance, and align its work with broad state policy  
               goals; and,

             b)   The need to develop a long-term, inclusive planning  
               process for Caltrans, similar to the already-established  
               regional transportation planning process.  

          2)Authorizes the California Transportation Commission (CTC), in  
            consultation with Caltrans, to develop and adopt specific  
            goals for the department.  

          3)Directs CTC to develop performance measures for each of the  
            adopted goals and to include in its annual report an  
            evaluation of Caltrans' progress towards meeting these goals.   


          4)Authorizes CTC to establish guidelines for Caltrans to follow  
            in developing the California Transportation Plan (CTP),  
            commencing with the 2020 update of the plan.  

          5)Directs Caltrans, by December 15, 2015, and by December 15,  
            2020, to submit to CTC an interregional transportation  
            strategic plan (ITSP) directed at achieving a high-functioning  
            and balanced interregional transportation system; requires the  
            ITSP to be consistent with the CTP.  








                                                                  SB 486
                                                                  Page 2


          6)Requires CTC to hold two public hearings prior to adopting the  
            interregional transportation improvement program (ITIP), and  
            modifies the date by which Caltrans must submit its draft ITIP  
            to CTC to allow time for public review of the program.  

          7)Requires projects included in the ITIP to be consistent with  
            the ITSP.  

          8)Requires Caltrans to reflect public comments in the final  
            ITIP.  

          9)Requires CTC, when approving the final ITIP, to evaluate the  
            extent to which the program is consistent with statutorily  
            established funding priorities.  

          10)Requires CTC to develop guidelines for Caltrans to follow in  
            developing the State Highway Operation and Protection Program  
            (SHOPP), including prescribed elements.  

          11)Requires all SHOPP projects to include projection initiation  
            documents.  

          12)Authorizes CTC to decline to adopt the SHOPP if it determines  
            that the program is not sufficiently consistent with the  
            guidelines developed and adopted by the commission.  

          13)Requires CTC to include in its annual report a discussion and  
            analyses of Caltrans' support costs and expenditures.  

          14)Makes other technical, related modifications to the existing  
            ITIP process, and deletes obsolete provisions related to CTC's  
            annual report.  

          15)Deletes obsolete provisions related to the conversion of data  
            related to the state highway system from paper storage to  
            electronic storage.  

           EXISTING LAW  : 

          1)Vests CTC with responsibility to advise and assist the  
            Secretary of the California State Transportation Agency  
            (CalSTA) and the Legislature in formulating and evaluating  
            state policies and plans for California's transportation  
            programs.  








                                                                  SB 486
                                                                  Page 3


          2)Requires Caltrans to update the CTP by December 31, 2015, and  
            every 5 years thereafter.  The CTP is required to address how  
            the state will achieve maximum feasible emissions reductions  
            and to identify the statewide integrated multimodal  
            transportation system needed to achieve these results.   
            Caltrans is required to submit a draft report to CTC and the  
            Legislature and specifically requires Caltrans to consult with  
            and coordinate its planning activities with specified entities  
            and to provide an opportunity for review and comment.  The CTP  
            is required to be consistent with statements of legislative  
            intent.  

          3)Directs Caltrans to develop STIP guidelines and authorizes CTC  
            to amend the guidelines after conducting at least one public  
            hearing.  

          4)Sets forth the process by which CTC adopts the STIP, a  
            biennial five-year program of projects.  Only projects that  
            are first included in a regional transportation improvement  
            program submitted by a regional transportation agency or in  
            the ITIP submitted by Caltrans may be included in the STIP.   
            STIP funds are available only for capital improvements, not  
            for operating or maintenance costs.  

          5)Requires Caltrans, by December 15 of each odd-numbered year,  
            to submit to CTC a five-year ITIP consisting of projects to:

               i)     Improve state highways;

               ii)    Improve the intercity passenger rail system; and,

               iii)   Improve the interregional movement of people,  
                 vehicles, and goods.  

          6)Directs Caltrans to develop the SHOPP, a program of major  
            capital projects necessary to preserve and protect the state  
            highway system.  Projects in the SHOPP are limited to those  
            that do not add new capacity to the system.  

          7)Authorizes CTC to review the SHOPP relative to its overall  
            adequacy, level of funding needed to implement the program,  
            and the impact of those expenditures on the STIP.  

          8)Requires CTC to adopt and submit to the Legislature, by  








                                                                  SB 486
                                                                  Page 4

            December 15 of each year, an annual report with specific  
            elements, including, for the years 2001 to 2008:

             a)   A summary and discussion of short-term loans and  
               transfers authorized as part of the now-obsolete Traffic  
               Congestion Relief Act of 2000;

             b)   A summary and discussion on the cash-flow and project  
               delivery impact of those loans and transfers; and, 

             c)   A summary of any guidance provided to the department  
               relative to those loans and transfers.  

           FISCAL EFFECT:   Unknown

           COMMENTS  :  The genesis of SB 486 is, at least in part, a  
          recently released report issued by the State Smart  
          Transportation Initiative (SSTI).  SSTI was commissioned CalSTA  
          to assess Caltrans' performance and to make recommendations for  
          improvements.  

          In short, the SSTI report found that Caltrans is "significantly  
          out of step" with best practices in the transportation field and  
          with many of the state's policy expectations.  To support its  
          conclusion that Caltrans needs modernizing, the SSTI report  
          cites numerous areas in which Caltrans' performance was  
          inconsistent and sometimes directly at odds with the state's  
          overarching policies, particularly those aimed at reducing  
          greenhouse gas emissions.  Specifically, SSTI noted:

          1)Caltrans, with its long history as a highway-building  
            department, continues to design projects that foster higher  
            auto-mobility rather than projects that, for example, lead  
            instead to compact development and lower vehicle miles  
            traveled.  

          2)State policies related to greenhouse gas emission reductions  
            work "around" Caltrans rather than through it, such as SB 375  
            that places the onus of reducing greenhouse gas emissions on  
            metropolitan planning organizations and the Air Resources  
            Board.  

          3)Caltrans' management has failed to understand sustainability  
            policies much less require that these policies be incorporated  
            in the department's programs.  








                                                                  SB 486
                                                                  Page 5


          SSTI asserts that California would be better served by a  
          stronger state transportation department that is better aligned  
          with California's overarching policy goals, particularly those  
          related to sustainability.  

          SB 486 intends to do just that-better align state priorities  
          with Caltrans' planning processes and to use this pairing to  
          ensure the department's investments reflect these priorities.   
          Within this context, SB 486 seeks to remedy three specific  
          perceived problems:  

          1)Caltrans lacks a strong performance management approach.  SSTI  
            made this argument in its report, suggesting that "Caltrans  
            should dedicate resources to push performance-based management  
            throughout the organization."  

          2)Caltrans' programming documents, namely the ITIP and the  
            SHOPP, are not sufficiently in line with the state's  
            overarching goals or the department's long-term planning  
            efforts.  For example, to this point SSTI asserts that the  
            department's "California Interregional Blueprint provides  
            sound guidance but often does not effectively guide investment  
            or policy."  

          3)Caltrans's ITIP and SHOPP are developed in an insular  
            environment and therefore fall short of reflecting broader  
            goals.  SSTI suggests that "CalSTA and Caltrans should use CTC  
            review process to impose a policy review of all proposed  
            investments."  

          SB 486 relies on CTC to provide greater, independent oversight  
          of the department's efforts as a means to help resolve these  
          problems.  Under SB 486, CTC will have greater responsibilities  
          to:

          1)Develop specific goals and performance measures for Caltrans;   


          2)Provide guidance in the development of the CTP (and in the  
            near-term, the ITSP) ultimately to inform the projects that  
            Caltrans selects for inclusion in the ITIP;  

          3)Establish guidelines for the SHOPP; and,









                                                                  SB 486
                                                                  Page 6

          4)Publically vet the ITIP and the SHOPP.  
           
           Caltrans is, and has been for some time, developing a  
          comprehensive CTP, which is due December 2015.  Imposing new  
          requirements for CTC guidance at this point would be disruptive  
          to the effort and should be avoided.  Consequently, SB 486  
          directs CTC to provide guidance in the development of the CTP  
          beginning with the update due in 2020.  However, 2020 is too  
          long to wait before the process is improved with CTC guidance.   
          Therefore, in the interim, SB 486 directs CTC to provide  
          oversight by way of approval in the development of the ITSP,  
          from which the 2016 and 2018 ITIP will be developed.  
              
          Regarding the SHOPP, SB 486 reinforces CTC's role in the process  
          by specifically requiring the commission to develop guidelines  
          for Caltrans to follow in developing the SHOPP and by  
          authorizing CTC to evaluate the program for, among other things,  
          consistency with CTC's guidelines.  

           Related legislation:   SB 151 (DeSaulnier) requires SHOPP  
          projects to have capital and support costs allocated by CTC.  SB  
          151 is in Assembly Appropriations Committee.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Transportation Commission
           
            Opposition 
           
          None on file

           
          Analysis Prepared by  :   Janet Dawson / TRANS. / (916) 319-2093