BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1228
                                                                  Page  1

          Date of Hearing:   August 6, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    SB 1228 (Hueso) - As Amended:  June 25, 2014 

          Policy Committee:                              
          TransportationVote:12-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill:

          1)Continues existence of the Trade Corridors Improvement Fund  
            (TCIF) to receive funding from sources other than the general  
            obligation bonds originally authorized for this purpose that  
            are fully committed.

          2)Makes moneys in the TCIF from other sources, upon  
            appropriation by the Legislature, available for allocation by  
            the California Transportation Commission (CTC) to eligible  
            projects consistent with commission guidelines, as specified.

           FISCAL EFFECT  

          Significant future cost pressure, including administrative cost  
          pressure to Caltrans and the CTC, by continuing a program  
          currently without any dedicated new funding. 

          [The CTC adopted the initial TCIF program of 79 projects,  
          totaling $3.1 billion, in April 2008.  The CTC deliberately  
          over-programmed projects in the TCIF in anticipation of  
          additional revenue that did not materialize, including State  
          Highway Account funds.  Although all of the $2 billion in  
          initial TCIF funds have been allocated, the CTC 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.]

           COMMENTS  








                                                                  SB 1228
                                                                  Page  2


           1)Background  . In 2006, voters approved Proposition 1B, which  
            authorized the issuance of almost $20 billion in general  
            obligation bonds to fund transportation projects. Following  
            passage of Proposition 1B, the TCIF was created to hold the $2  
            billion included in the bond act for projects to improve goods  
            movement on state highways, rail systems, and ports, and CTC  
            was directed to allocate the funds to goods movement projects  
            identified in statewide planning documents. The geographic  
            distribution of TCIF funds was codified and guidelines were  
            adopted by CTC in November 2007. To date, all of the $2  
            billion Proposition 1B bond proceeds have been expended or  
            dedicated for specific projects. 

            The most recent federal transportation reauthorization,  
            (MAP-21), specifically addressed the need for comprehensive  
            goods movement planning across the nation. In response, AB 14  
            (Lowenthal)/Statutes of 2013 mandated the preparation of a  
            state freight plan by the California State Transportation  
            Agency (CalSTA) through the establishment of the California  
            Freight Advisory Committee. In addition, the Air Resources  
            Board is also addressing goods movement as it relates to  
            emissions reductions goals through development of a  
            Sustainable Freight Strategy.

           2)Purpose  . According to the author, there is still significant  
            need to address goods movement in California. To address these  
            needs, the author has introduced this bill to ensure there is  
            a reliable funding mechanism in place for critical goods  
            movement-related infrastructure projects.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081