BILL ANALYSIS �
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 1228|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: SB 1228
Author: Hueso (D)
Amended: 3/27/14
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 10-0, 4/22/14
AYES: DeSaulnier, Gaines, Beall, Cannella, Galgiani, Hueso,
Lara, Liu, Pavley, Roth
NO VOTE RECORDED: Wyland
SENATE ENVIRONMENTAL QUALITY COMMITTEE : 7-0, 4/30/14
AYES: Hill, Gaines, Fuller, Hancock, Jackson, Leno, Pavley
SENATE APPROPRIATIONS COMMITTEE : 7-0, 5/23/14
AYES: De Le�n, Walters, Gaines, Hill, Lara, Padilla, Steinberg
SUBJECT : Trade Corridors Improvement Fund
SOURCE : San Diego Regional Chamber of Commerce
DIGEST : This bill continues the existence of the Trade
Corridors Improvement Fund (TCIF) in order to receive revenues
from new funding sources and governs the expenditure of those
funds.
ANALYSIS : SB 1266 (Perata, Chapter 25, Statutes of 2006)
authorized the sale of nearly $20 billion in general obligation
bonds for transportation projects, upon voter approval. In
November 2006, voters approved Proposition 1B, the Highway
Safety, Traffic Reduction, Air Quality, and Port Security Bond
CONTINUED
SB 1228
Page
2
Act of 2006. Proposition 1B authorized the issuance of $19.9
billion in general obligation bonds to fund transportation
projects to relieve congestion, improve the movement of goods,
improve air quality, and enhance the safety and security of the
transportation system.
Proposition 1B created the TCIF and funded it with $2 billion of
the total bond proceeds. Proposition 1B directed the
Legislature to appropriate these funds for infrastructure
improvements along federally designated "Trade Corridors of
National Significance" or other high-volume freight corridors in
California as determined by the California Transportation
Commission (CTC). Proposition 1B required the CTC, in
determining project eligibility, to consult the state trade
infrastructure and goods movement plan, the trade infrastructure
and goods movement plans adopted by regional transportation
planning agencies, regional transportation plans, and the
statewide port master plan. Proposition 1B provided that
eligible projects included, but were not limited to,
improvements to highway capacity and operations, the freight
rail system, ports, truck corridors, and border access, as well
as to surface transportation to facilitate goods movement to and
from airports.
Although the CTC has fully programmed the entire $2 billion of
Proposition 1B funds in the TCIF, it has been able to program
additional projects as savings have materialized. The CTC has
extended the program by two years, to fiscal year 2015-16, to
take advantage of any further contract savings that may occur.
This bill continues the existence of the TCIF indefinitely in
order to receive funds from non-Proposition 1B sources, and
governs the distribution of non-Proposition 1B funds as follows:
1.Requires the CTC to allocate non-Proposition 1B monies in the
TCIF for infrastructure improvements along federally
designated "Trade Corridors of National Significance" or other
high-volume freight corridors in California, as determined by
the CTC.
2.Requires the CTC, in determining project eligibility, to
consult the state trade infrastructure and goods movement
plan, trade infrastructure and goods movement plans adopted by
regional transportation planning agencies, regional
CONTINUED
SB 1228
Page
3
transportation plans, and the statewide port master plan.
3.Provides that eligible projects include, but are not limited
to:
A. Improvements to highway capacity and operations to
facilitate goods movement, particularly in relation to the
state's land ports of entry and seaports, including inland
waterways between ports, and to relieve traffic congestion
along major trade or goods movement corridors.
B. Improvements to the freight rail system to increase
efficiency and capacity and to enhance goods movement from
land ports of entry and seaports to warehousing and
distribution centers throughout the state, including
projects to separate rail lines from highway or local road
traffic, improve freight rail mobility through mountainous
regions, and relocate rail switching yards.
C. Improvements to enhance the capacity and efficiency of
land ports of entry and seaports.
D. Improvements to truck corridors, including dedicated
truck facilities or truck toll facilities.
E. Improvements to border access to enhance goods movement
between California and Mexico and maximize the state's
ability to access federal border infrastructure funds.
1.Requires the CTC to allocate TCIF funds in a manner that
addresses the state's most urgent needs, balances the demands
of various land ports of entry and seaports, provides
reasonable geographic balance among the state's regions, and
prioritizes projects that improve trade corridor mobility
while reducing emissions of diesel particulate and other
pollutant emissions.
2.Requires the CTC, when allocating TCIF funds, to consider the
speed and volume of large cargo traveling through the
distribution system, a reasonably consistent and predictable
amount of time for cargo to travel from one point to another
within the system, and a reduction in the recurrent daily
hours of delay.
CONTINUED
SB 1228
Page
4
3.Requires the CTC, when allocating any Greenhouse Gas Reduction
Fund (commonly known as cap-and-trade) monies transferred to
the TCIF, to require these projects to demonstrate how they
will reduce emissions consistent with the goals and objectives
of cap-and-trade.
4.Requires the CTC to allocate any non-Proposition 1B funds in
the TCIF to projects that have identified committed
supplemental funding from local, federal, or private sources.
The CTC must determine an appropriate match, but the match
must be at least equal to the TCIF allocation, other than for
border access improvements. The CTC may prioritize projects
with higher levels of committed supplemental funds.
5.Requires the CTC to incorporate into its annual report to the
Legislature a summary of its TCIF-related activities,
including, at minimum, a description and location of the
projects funded by TCIF, the status of each project, and a
description of the mobility and air-quality improvements the
program is achieving.
Background
The Legislative Analyst's Office, Analysis of the 2008-09 Budget
Bill noted that prior to Proposition 1B, the state did not
dedicate transportation funding specifically to trade corridor
mobility; furthermore, the state had not traditionally provided
state funds for projects such as freight rail improvements. The
CTC decided to try to establish the TCIF as an ongoing program,
rather than a one-time bond program. The CTC adopted the
initial TCIF program of 79 projects, totaling $3.1 billion, in
April 2008, deliberately over-programming the TCIF in
anticipation of additional revenue sources becoming available,
including State Highway Account funds. Additional revenue did
not materialize due to economic conditions, and the CTC ended up
working with stakeholders to eliminate the over-programming.
Comments
The author states that California's land and sea ports of entry
serve as key international commercial gateways for the more than
$500 billion in products entering and exiting the U.S. each
year. Long wait times at border ports of entry delay access to
intermediary goods, lead to problems in the manufacturing chain,
CONTINUED
SB 1228
Page
5
and create significant negative traffic congestion and
air-quality impacts. The author states that in order to
leverage fully California's trade-related economic
opportunities, the state needs a modern, robust, and multimodal
goods movement network. Investing in infrastructure
improvements at sea ports of entry can help federally designated
marine highways provide large reductions in greenhouse gas
emissions and air pollutants, relieve traffic congestion and
wear and tear on highways, and provide an influx of economic
activity throughout the state.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Cost pressures in the hundreds of millions to dedicate
future revenues to specified trade corridor improvements in
lieu of other transportation projects or other programs that
achieve greenhouse gas reductions. (State Highway Account,
Greenhouse Gas Reduction Fund, General Fund, federal funds,
special funds)
Estimated staffing cost pressures of approximately $280,000
for 2 PY of Caltrans staff to continue the administration
and oversight of the program. Actual resource needs would
depend upon availability of funds and the size of the
program. (State Highway Account)
Estimated staffing cost pressures of $100,000 to $150,000
for 1 PY of staff at CTC to program projects and allocate
TCIF funds. Actual resource needs would depend upon
availability of funds and the size of the program. (State
Highway Account)
SUPPORT : (Verified 5/23/14)
San Diego Regional Chamber of Commerce (source)
California Association of Port Authorities
City of San Diego
ColRich
CONTINUED
SB 1228
Page
6
Congress Member Juan Vargas
Councilmember David Alvarez, City of San Diego
East Otay Mesa Property Owners Association
Hamann Companies
Imperial County Transportation Commission
Ingall's Enterprises
Landmark Development Services, Inc.
Murphy Development Company
NAI San Diego Commercial Real Estate
National Enterprises, Inc.
Otay Canyon Ranch, LLC
Otay Mesa Chamber of Commerce
Otay Mesa Property Owner's Association
Port of San Diego
San Diego Port Tenants Association
The Judd Company
Unified Port of San Diego
JA:nl 5/23/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED