Bill Text: CA AB2438 | 2021-2022 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Transportation funding: guidelines and plans.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Vetoed) 2022-09-29 - Vetoed by Governor. [AB2438 Detail]

Download: California-2021-AB2438-Amended.html

Amended  IN  Senate  August 11, 2022
Amended  IN  Senate  August 01, 2022
Amended  IN  Senate  June 16, 2022
Amended  IN  Assembly  March 21, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 2438


Introduced by Assembly Member Friedman

February 17, 2022


An act to amend Sections 14530.1 and 65072 of, and to add Sections 13985, 14011.5, and 14524.5 to, the Government Code, and to amend Sections 164.6, 2033, 2192, 2391, and 2396 of the Streets and Highways Code, relating to transportation.


LEGISLATIVE COUNSEL'S DIGEST


AB 2438, as amended, Friedman. Transportation funding: guidelines and plans.
(1) Existing law provides for the funding of projects on the state highway system and other transportation improvements, including under the interregional transportation improvement program, the state highway operation and protection program, the Solutions for Congested Corridors Program, the Trade Corridor Enhancement Program, and the program within the Road Maintenance and Rehabilitation Program commonly known as the Local Partnership Program.
This bill would require, no later than January 1, 2024, the guidelines or plans applicable to those programs to include the strategies established in the Climate Action Plan for Transportation Infrastructure adopted by the Transportation Agency, as provided. The bill would also require the Transportation Agency, the California Transportation Commission, and the Department of Transportation, no later than January 1, 2024, to each establish guidelines to ensure transparency and accountability for specified transportation funding programs that they respectively administer and for the project selection processes applicable to those programs. The bill would require those guidelines to meet certain requirements and would require those agencies to hold public workshops to solicit input before establishing the guidelines.
The bill, with regard to the Solutions for Congested Corridors Program, would require a project that receives funding under the program to be part of a comprehensive multimodal corridor plan rather than a comprehensive corridor plan.
(2) Existing law requires the Department of Transportation to prepare the California Transportation Plan for submission to the Governor and the Legislature, to complete the 3rd update to the plan by December 31, 2025, and to update the plan every 5 years thereafter, as a long-range planning document that incorporates various elements and is consistent with specified expressions of legislative intent.
This bill would also require the California Transportation Plan to include a financial element that summarizes the full cost of plan implementation, a summary of available revenues through the planning period, and an analysis of what is feasible within the plan if constrained by a realistic projection of available revenues.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 13985 is added to the Government Code, immediately following Section 13984, to read:

13985.
 (a) No later than January 1, 2024, the agency shall establish guidelines to ensure transparency and accountability for the Transit and Intercity Rail Capital Program (Part 2 (commencing with Section 75220) of Division 44 of the Public Resources Code) and the State Rail Assistance Program established pursuant to Section 99312.3 of the Public Utilities Code, and for the project selection processes applicable to those programs.
(b) The guidelines required by this section shall, at a minimum, do all of the following:
(1) Ensure project nomination information is application summaries are publicly available for public review before a decision by the agency to award funds.
(2) Ensure the project selection process incorporates strategies established in the Climate Action Plan for Transportation Infrastructure adopted by the agency in July 2021 that are applicable to the program.
(3) Require that a recommendation for a project to be funded be released in an accessible format at least 20 days before a decision by the agency to award funds.
(4) Include any other best practices identified through public input solicited pursuant to subdivision (c).
(c) Before the agency establishes the guidelines pursuant to subdivision (a), the agency shall hold public workshops to solicit public input to ensure that the guidelines adopted pursuant to this section will provide the public with the information necessary for meaningful participation in the agency’s actions to award funds for the transportation funding programs that it administers.
(d) This section shall not supersede any conflicting provision of an existing guideline process or existing maintenance and rehabilitation requirements.

SEC. 2.

 Section 14011.5 is added to the Government Code, to read:

14011.5.
 (a) No later than January 1, 2024, the department shall establish guidelines to ensure transparency and accountability for the interregional transportation improvement program and the State Highway Operation and Protection Program, and for the project selection processes applicable to those programs.
(b) The guidelines required by this section shall, at a minimum, do all of the following:
(1) Ensure project nomination information is publicly available for public review before a decision to award funds.
(2) Ensure the project selection process incorporates strategies established in the Climate Action Plan for Transportation Infrastructure adopted by the Transportation Agency in July 2021 that are applicable to the program.
(3) Require that a recommendation for a project to be funded be released in an accessible format at least 20 days before a decision to award funds.
(4) Include any other best practices identified through public input solicited pursuant to subdivision (c).
(c) Before the department establishes the guidelines pursuant to subdivision (a), the department shall hold public workshops to solicit public input to ensure that the guidelines adopted pursuant to this section will provide the public with the information necessary for meaningful participation in the department’s actions to award funds for the transportation funding programs that it administers.
(d) This section shall not supersede any conflicting provision of an existing guideline process or existing maintenance and rehabilitation requirements.

SEC. 3.

 Section 14524.5 is added to the Government Code, to read:

14524.5.
 (a) No later than January 1, 2024, the commission shall establish guidelines to ensure transparency and accountability for the Local Partnership Program established pursuant to subdivision (a) of Section 2032 and Section 2033 of the Streets and Highways Code, the Trade Corridor Enhancement Program established pursuant to Section 2192 of the Streets and Highways Code, and the Solutions for Congested Corridors Program (Chapter 8.5 (commencing with Section 2390) of Division 3 of the Streets and Highways Code), and for the project selection processes applicable to those programs.
(b) The guidelines required by this section shall, at a minimum, do all of the following:
(1) Ensure project nomination information is publicly available for public review before a decision by the commission to award funds.
(2) Ensure the project selection process incorporates strategies established in the Climate Action Plan for Transportation Infrastructure adopted by the Transportation Agency in July 2021 that are applicable to the program.
(3) Require that a recommendation for a project to be funded be released in an accessible format at least 20 days before a decision by the commission to award funds.
(4) Include any other best practices identified through public input solicited pursuant to subdivision (c).
(c) Before the commission establishes the guidelines pursuant to subdivision (a), the commission shall hold public workshops to solicit public input to ensure that the guidelines adopted pursuant to this section will provide the public with the information necessary for meaningful participation in the commission’s actions to award funds for the transportation funding programs that it administers.
(d) This section shall not supersede any conflicting provision of an existing guideline process or existing maintenance and rehabilitation requirements.

SEC. 4.

 Section 14530.1 of the Government Code is amended to read:

14530.1.
 (a) The department, in cooperation with the commission, transportation planning agencies, and county transportation commissions and local governments, shall develop guidelines for the development of the state transportation improvement program and the incorporation of projects into the state transportation improvement program.
(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 increases and schedule changes.
(5) Objective criteria for measuring system performance and cost-effectiveness of candidate projects.
(6) No later than January 1, 2024, the strategies established in the Climate Action Plan for Transportation Infrastructure adopted by the Transportation Agency in July 2021 that are applicable to the interregional transportation improvement program.
(c) The guidelines shall be the complete and full statement of the policy, standards, and criteria that the commission intends to use in selecting projects to be included in the state transportation improvement program.
(d) 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.

SEC. 5.

 Section 65072 of the Government Code is amended to read:

65072.
 The California Transportation Plan shall include all of the following:
(a) A policy element that describes the state’s transportation policies and system performance objectives. These policies and objectives shall be consistent with legislative intent described in Sections 14000, 14000.5, 14000.6, and 65088.
(b) A strategies element that shall incorporate the broad system concepts and strategies synthesized from the adopted regional transportation plans prepared pursuant to Section 65080. The California Transportation Plan shall not be project specific.
(c) A financial element that summarizes the full cost of the implementation of the California Transportation Plan, a summary of available revenues through the planning period, and an analysis of what is feasible within the plan if constrained by a realistic projection of available revenues. The financial element shall also evaluate the feasibility of any policy assumptions or scenarios included in the plan. The financial element may include a discussion of tradeoffs within the plan considering financial constraints.
(d) A recommendations element that includes economic forecasts and recommendations to the Legislature and the Governor to achieve the plan’s broad system concepts, strategies, and performance objectives.

SEC. 6.

 Section 164.6 of the Streets and Highways Code is amended to read:

164.6.
 (a) (1) The department shall prepare a State Highway System Management Plan. The plan shall include a 10-year state highway system rehabilitation plan for the rehabilitation or reconstruction, or the combination thereof, by the State Highway Operation and Protection Program, of all state highways and bridges owned by the state. The plan shall identify all rehabilitation needs for the 10-year period beginning on July 1, 1998, and ending on June 30, 2008, and shall include a schedule of improvements to complete all needed rehabilitation during the life of the plan not later than June 30, 2008. The plan shall be updated every two years beginning in 2000.
(2) The State Highway System Management Plan shall also include a five-year maintenance plan that addresses the maintenance needs of the state highway system. The maintenance plan shall be updated every two years, concurrent with the rehabilitation plan described in paragraph (1). The maintenance plan shall include only maintenance activities that, if the activities are not performed, could result in increased State Highway Operation and Protection Program costs in the future. The maintenance plan shall identify any existing backlog in those maintenance activities and shall recommend a strategy, specific activities, and an associated funding level to reduce or prevent any backlog during the plan five-year period.
(b)  The State Highway System Management Plan shall include specific quantifiable accomplishments, goals, objectives, costs, and performance measures consistent with the asset management plan required by Section 14526.4 of the Government Code. The plan shall contain strategies to control costs and improve efficiency of the State Highway Operation and Protection Program.
(c) The State Highway System Management Plan for rehabilitation and maintenance shall attempt to balance resources between State Highway Operation and Protection Program activities and maintenance activities in order to achieve identified goals at the lowest possible long-term total cost. If the maintenance plan recommends increases in maintenance spending, it shall identify projected future State Highway Operation and Protection Program costs that would be avoided by increasing maintenance spending. The department’s maintenance division shall identify highway maintenance projects and associated costs that allow it to achieve the requirements of this subdivision.
(d) The draft State Highway System Management Plan shall be submitted to the commission for review and comments not later than February 15 of each odd-numbered year, and the final plan shall be transmitted by the department to the Governor and the Legislature not later than June 1 of each odd-numbered year. The department shall make the draft of its proposed plan available to regional transportation agencies for review and comment, and shall include and respond to the comments in the final plan.
(e) The State Highway System Management Plan shall be the basis for the department’s budget request and for the adoption of fund estimates pursuant to Section 163.
(f) The State Highway System Management Plan shall, no later than January 1, 2024, incorporate strategies established in the Climate Action Plan for Transportation Infrastructure adopted by the Transportation Agency in July 2021 that are applicable to the State Highway Operation and Protection Program.

SEC. 7.

 Section 2033 of the Streets and Highways Code is amended to read:

2033.
 (a) On or before January 1, 2018, the commission, in cooperation with the department, transportation planning agencies, county transportation commissions, and other local agencies, shall develop guidelines for the allocation of funds pursuant to subdivision (a) of Section 2032. No later than January 1, 2024, the guidelines shall incorporate the strategies established in the Climate Action Plan for Transportation Infrastructure adopted by the Transportation Agency in July 2021 applicable to the competitive component of the program established to allocate the funds made available pursuant to subdivision (a) of Section 2032.
(b) The guidelines shall be the complete and full statement of the policy, standards, and criteria that the commission intends to use to determine how these funds will be allocated.
(c) The commission may amend the adopted guidelines after conducting at least one public hearing.
(d) The guidelines may include streamlining of project delivery by authorizing local or regional transportation agencies to seek commission approval of a letter of no prejudice that allows the agency to expend its own funds in advance of an allocation of funds by the commission, and to be reimbursed at a later time for eligible expenditures. A letter of no prejudice shall only be available to local or regional transportation agencies for moneys that have been identified for future allocation to the applicant agency. Moneys designated pursuant to subdivision (a) of Section 2032 shall only be reimbursed when there is funding available in an amount sufficient to make the reimbursement.

SEC. 8.

 Section 2192 of the Streets and Highways Code is amended to read:

2192.
 (a) The following revenues shall be allocated for infrastructure projects pursuant to this section:
(1) The revenues deposited in the Trade Corridor Enhancement Account pursuant to Section 2192.4, except for those revenues in the account that were appropriated by Senate Bill 132 of the 2017–18 Regular Session (Chapter 7 of the Statutes of 2017).
(2) An amount of federal funds equal to the amount of revenue apportioned to the state under Section 167 of Title 23 of the United States Code from the national highway freight programs, pursuant to the federal Fixing America’s Surface Transportation Act (“FAST Act,” Public Law 114-94).
(b) The funding described in subdivision (a) shall be available upon appropriation for allocation by the California Transportation Commission for infrastructure improvements in this state on federally designated Trade Corridors of National and Regional Significance, on the Primary Freight Network, and along other corridors that have a high volume of freight movement, as determined by the commission and as identified in the state freight plan developed pursuant to Section 13978.8 of the Government Code. Projects eligible for funding shall be included in an adopted regional transportation plan. Projects within the boundaries of a metropolitan planning organization shall be included in an adopted regional transportation plan that includes a sustainable communities strategy determined by the State Air Resources Board to achieve the region’s greenhouse gas emissions reduction targets. In developing guidelines for implementing this section, the commission shall (1) apply the guiding principles, to the maximum extent practicable, in the California Sustainable Freight Action Plan released in July 2016 pursuant to Executive Order No. B-32-15, and (2) consult the state freight plan and the applicable port master plan.
(c) Eligible projects for these funds include, but are not limited to, all of the following:
(1) Highway improvements to more efficiently accommodate the movement of freight, particularly for ingress and egress to and from the state’s land ports of entry, rail terminals, and seaports, including navigable inland waterways used to transport freight between seaports, land ports of entry, and airports, and to relieve traffic congestion along major trade or goods movement corridors.
(2) Freight rail system improvements to enhance the ability to move goods from seaports, land ports of entry, and airports to warehousing and distribution centers throughout California, including projects that separate rail lines from highway or local road traffic, improve freight rail mobility, and other projects that improve the safety, efficiency, and capacity of the rail freight system.
(3) Projects to enhance the capacity and efficiency of ports, except that funds available under this section shall not be allocated to a project that includes the purchase of fully automated cargo handling equipment. For the purposes of this paragraph, “fully automated” means equipment that is remotely operated or remotely monitored, with or without the exercise of human intervention or control. Nothing in this paragraph shall prohibit the use of funds available pursuant to this section for a project that includes the purchase of human-operated zero-emission equipment, human-operated near-zero-emission equipment, and infrastructure supporting that human-operated equipment. Furthermore, nothing in this section shall prohibit the purchase of devices that support that human-operated equipment, including equipment to evaluate the utilization and environmental benefits of that human-operated equipment.
(4) Truck corridor improvements, including dedicated truck facilities or truck toll facilities, including the mitigation of the emissions from trucks or these facilities.
(5) Border access improvements that enhance goods movement between California and Mexico and that maximize the state’s ability to access funds made available to the state by federal law.
(6) Surface transportation, local road, and connector road improvements to effectively facilitate the movement of goods, particularly for ingress and egress to and from the state’s land ports of entry, airports, and seaports, to relieve traffic congestion along major trade or goods movement corridors.
(7) Projects that employ advanced and innovative technology to improve the flow of freight, such as intelligent transportation systems, public infrastructure, excluding vehicles, that enables zero-emission or near-zero emission goods movement, real time information systems, weigh-in-motion devices, electronic screening and credentialing systems, traffic signal optimization, work zone management and information systems, ramp metering, and electronic cargo and border security technologies.
(8) Environmental and community mitigation or efforts to reduce environmental impacts of freight movement, such as projects that reduce noise, overnight truck idling, or truck queues, and advanced traveler information systems such as freight advanced traveler information systems that optimize operations to reduce empty-load trips.
(d) Projects funded with revenues identified in paragraph (1) of subdivision (a) shall be consistent with Article XIX of the California Constitution.
(e) (1) In adopting the program of projects to be funded with funds described in subdivision (a), the commission shall evaluate the total potential economic and noneconomic benefits of the program of projects to California’s economy, environment, and public health. The evaluation shall specifically assess localized impacts in disadvantaged communities. The commission shall consult with the agencies identified in Executive Order No. B-32-15 and metropolitan planning organizations in order to use the appropriate models, techniques, and methods to develop the parameters for evaluating the program of projects. The commission shall allocate the funding from subdivision (a) for trade infrastructure improvements as follows:
(A) Sixty percent of the funds shall be available for projects nominated by regional transportation agencies and other public agencies, including counties, cities, and port authorities, in consultation with the department. The commission shall provide reasonable geographic targets for funding allocations without constraining what an agency may propose or what the commission may approve.
(B) Forty percent of the funds shall be available for projects nominated by the department, in consultation with regional transportation agencies.
(2) In adopting a program of projects pursuant to paragraph (1), the commission shall prioritize projects jointly nominated and jointly funded by the state and local agencies. In considering geographic balance for the overall program, the commission may adjust the corridor-based targets in subparagraph (A) of paragraph (1) to account for projects programmed pursuant to subparagraph (B) of paragraph (1).
(f) (1) The commission shall adopt guidelines, including a transparent process to evaluate projects and to allocate the funding described in subdivision (a) for trade infrastructure improvements in a manner that (A) addresses the state’s most urgent needs, (B) balances the demands of various land ports of entry, seaports, and airports, (C) places emphasis on projects that improve trade corridor mobility and safety while reducing emissions of diesel particulates, greenhouse gases, and other pollutants and reducing other negative community impacts, especially in disadvantaged communities, (D) makes a significant contribution to the state’s economy, (E) recognizes the key role of the state in project identification, (F) supports integrating statewide goods movement priorities in a corridor approach, and (G) includes disadvantaged communities measures, as established by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code, and other tools the commission determines, for evaluating benefits or costs for disadvantaged communities and low-income communities. Project nominations shall include either a quantitative or qualitative assessment of the benefits the project is expected to achieve relative to the evaluation criteria.
(2) No later than January 1, 2024, the guidelines shall also incorporate the strategies established in the Climate Action Plan for Transportation Infrastructure adopted by the Transportation Agency in July 2021 that are applicable to the program established pursuant to this section.
(3) The guidelines adopted pursuant to paragraph (1) may include streamlining of project delivery by authorizing regional transportation agencies and other public agencies to seek commission approval of a letter of no prejudice that allows the agency to expend its own funds for a project programmed in a future year of the adopted program of projects, in advance of allocation of funds to the project by the commission, and to be reimbursed at a later time for eligible expenditures. A letter of no prejudice shall only be available to local or regional transportation agencies for moneys that have been identified for future allocation to the applicant agency. Moneys designated for the program shall only be reimbursed when there is funding available in an amount sufficient to make the reimbursement.
(g) In addition, the commission shall also consider the following factors when allocating these funds:
(1) “Velocity,” which means the speed by which large cargo would travel from the land port of entry or seaport through the distribution system.
(2) “Throughput,” which means the volume of cargo that would move from the land port of entry or seaport through the distribution system.
(3) “Reliability,” which means a reasonably consistent and predictable amount of time for cargo to travel from one point to another on any given day or at any given time in California.
(4) “Congestion reduction,” which means the reduction in recurrent daily hours of delay to be achieved.
(h) For purposes of this section, the following definitions apply:
(1) “Disadvantaged communities” are those communities identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code.
(2) “Low-income communities” are census tracts with median household incomes at or below 80 percent of the statewide median income or with median household incomes at or below the threshold designated as low income by the Department of Housing and Community Development’s list of state income limits adopted pursuant to Section 50093 of the Health and Safety Code.
(i) It is the intent of the Legislature for the commission to adopt an initial program of projects using the state and federal funds described in subdivision (a) for eligible projects as soon as practicable and no later than May 17, 2018.

SEC. 9.

 Section 2391 of the Streets and Highways Code is amended to read:

2391.
 Pursuant to subdivision (b) of Section 11053 of the Revenue and Taxation Code, two hundred fifty million dollars ($250,000,000) in the State Highway Account shall be available for appropriation to the Department of Transportation in each annual Budget Act for the Solutions for Congested Corridors Program. Funds made available for the program shall be allocated by the California Transportation Commission to projects designed to achieve a balanced set of transportation, environmental, and community access improvements within highly congested travel corridors throughout the state. Funding shall be available for projects that make specific performance improvements and are part of a comprehensive multimodal corridor plan designed to reduce congestion in highly traveled corridors by providing more transportation choices for residents, commuters, and visitors to the area of the corridor while preserving the character of the local community and creating opportunities for neighborhood enhancement projects. In order to mitigate increases in vehicle miles traveled, greenhouse gases, and air pollution, highway lane capacity-increasing projects funded by this program shall be limited to high-occupancy vehicle lanes, managed lanes as defined in Section 14106 of the Government Code, and other non-general purpose lane improvements primarily designed to improve safety for all modes of travel, such as auxiliary lanes, truck climbing lanes, or dedicated bicycle lanes. Project elements within the corridor plans may include improvements to state highways, local streets and roads, public transit facilities, bicycle and pedestrian facilities, and restoration or preservation work that protects critical local habitat or open space.

SEC. 10.

 Section 2396 of the Streets and Highways Code is amended to read:

2396.
 (a) The commission, in consultation with the State Air Resources Board, shall develop and adopt guidelines for the program consistent with the requirements of this chapter. Guidelines adopted by the commission shall be exempt from the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). Prior to adopting the guidelines, the commission shall conduct at least one public hearing in northern California and one public hearing in southern California to review and provide an opportunity for public comment. The commission shall adopt the final guidelines no sooner than 30 days after the commission provides the proposed guidelines to the Joint Legislative Budget Committee and the transportation policy committees in the Senate and the Assembly. No later than January 1, 2024, the guidelines shall incorporate the strategies established in the Climate Action Plan for Transportation Infrastructure adopted by the Transportation Agency in July 2021 that are applicable to the Solutions for Congested Corridors Program.
(b) The guidelines adopted pursuant to subdivision (a) may include streamlining of project delivery by authorizing regional agencies to seek commission approval of a letter of no prejudice that allows the agency to expend its own funds for a project programmed in a future year of the adopted program of projects, in advance of allocation of funds to the project by the commission, and to be reimbursed at a later time for eligible expenditures. A letter of no prejudice shall only be available to local or regional transportation agencies for moneys that have been identified for future allocation to the applicant agency. Moneys designated for the program shall only be reimbursed when there is funding available in an amount sufficient to make the reimbursement.

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