Bill Text: CA AB2535 | 2023-2024 | Regular Session | Amended

California Assembly Bill 2535

Bill Title: Trade Corridor Enhancement Program.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-04-25 - Re-referred to Com. on APPR. [AB2535 Detail]

Download: California-2023-AB2535-Amended.html

Amended IN Assembly April 24, 2024

Amended IN Assembly April 09, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 2535

Introduced by Assembly Member Bonta

February 13, 2024

An act to amend Section 2192 of the Streets and Highways Code, relating to transportation.

LEGISLATIVE COUNSEL'S DIGEST

AB 2535, as amended, Bonta. Trade Corridor Enhancement Program.

Existing law requires the California Transportation Commission, under a program commonly known as the Trade Corridor Enhancement Program, to allocate, upon appropriation by the Legislature, revenues from a specified portion of the state excise tax on diesel fuel and certain federal funds to infrastructure projects located on or along specified transportation corridors. Under existing law, eligible projects under the program include, among others, highway improvements to more efficiently accommodate the movement of freight and environmental and community mitigation or efforts to reduce environmental impacts of freight movement.

This bill would prohibit the commission from programming funding under the program to a project that expands the physical footprint of a highway in a community that experiences disproportionate burdens from diesel particulate matter, as specified.

Under the ~~Trade Corridor Enhancement Program,~~ program, existing law requires the commission to adopt a program of projects from projects nominated by the Department of Transportation and local agencies. In adopting the program of projects, existing law requires the commission to evaluate the total potential economic and noneconomic benefits of the program of projects to California’s economy, environment, and public health, and to specifically assess localized impacts in disadvantaged communities. Existing law also requires the California Environmental Protection Agency to identify disadvantaged communities, and, pursuant to that requirement, the agency has developed a tool to identify those communities, commonly known as CalEnviroScreen.

This bill ~~would~~ would, commencing January 1, 2025, require the commission, the Department of Housing and Community Development, and the State Air Resources Board to create guidance for the programming of projects under the Trade Corridor Enhancement Program that expand the physical footprint of a highway in a community in the highest 10% of CalEnviroScreen communities. Commencing January 1, 2028, the bill would require this guidance to be incorporated into the programming cycle. The bill would require the applicant agency, as a condition of commission funding for design, right-of-way, and capital construction costs, to complete the applicable requirements of the California Environmental Quality Act and the federal National Environmental Policy Act of 1969 within 6 months of the ~~Commission~~ commission adopting the program of projects. The bill would limit the commission, when programming projects in specified communities that both experienced disproportionate burdens from diesel particulate matter in 2024 and did not experience a 50 percent decline in absolute levels of diesel particulate matter by 2030, to programming only projects that result in a net decrease in diesel particulate emissions in those communities on or after January 1, 2030. The bill would also require the commission to establish percentage targets for funds allocated under the program to be allocated to investments in zero-emission freight infrastructure, with ~~a goal~~ an initial target of ~~50%~~ 15% of program funds awarded ~~in 2030~~ being awarded to investments in zero-emission freight ~~infrastructure,~~ infrastructure to be increased by 5% each cycle until it reaches 50%, as provided.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

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

SECTION 1.

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 Corridors 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 do both of the following:

(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.

(2) Consult the state freight plan and the applicable port master plan.

(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 truck 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 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. This paragraph shall not prohibit the use of funds made 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. This section shall not prohibit the purchase of devices that support that human-operated equipment, including equipment to evaluate the usage 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 truck 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) (1) Projects funded with revenues identified in paragraph (1) of subdivision (a) shall be consistent with Article XIX of the California Constitution.

(2)The commission shall not program any funding pursuant to this section to a project that expands the physical footprint of a highway in a community that ranks in the highest quintile in CalEnviroScreen for disproportionate burdens from diesel particulate matter.
(2) Commencing January 1, 2025, the commission, the Department of Housing and Community Development, and the State Air Resources Board shall create guidance for the programming of projects that expand the physical footprint of a highway to address the impact on the highest 10 percent of CalEnviroScreen communities. This guidance shall be incorporated into the programming cycle, starting January 1, 2028.

(3) Funding for design, right-of-way, and construction capital costs shall only be programmed to a project if the applicant agency completes the applicable requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) and the federal National Environmental Policy Act of 1969 (42 U.S.C. Sec. 4321 et seq.) within six months of the commission adopting the program of projects pursuant to subdivision (e).

(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) ~~(A)~~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).

(B)If absolute levels of diesel particulate matter in a community that ranks in the highest quintile in CalEnviroScreen for disproportionate burdens from diesel particulate matter in 2024 do not decline by 50 percent below 2024 levels by 2030, as determined by the Office of Environmental Health Hazard Assessment, then the commission shall, when programming projects in that community, only program projects that result in a net decrease in diesel particulate emissions in that community on or after January 1, 2030.

(3) The commission shall establish a target to program 15 percent of the funds pursuant to this section in the next programming cycle that begins on or after January 1, 2025, to investments in zero-emission freight infrastructure that are ~~well-qualified~~ well qualified for funding based on the goals of the program. The commission shall increase the targets in each ~~cycle, with a~~ cycle by 5 percent, until setting the goal of 50 percent of the funds programmed ~~in 2030~~ being awarded to investments in zero-emission freight infrastructure that are ~~well-qualified~~ well qualified for funding based on the goals of the program.

~~(g)~~

(f) (1) (A) 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 does all of the following:

(i) Addresses the state’s most urgent needs.

(ii) Balances the demands of various land ports of entry, seaports, and airports.

(iii) 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.

(iv) Makes a significant contribution to the state’s economy.

(v) Recognizes the key role of the state in project identification.

(vi) Supports integrating statewide goods movement priorities in a corridor approach.

(vii) 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.

(B) 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) 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.

~~(h)~~

(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.

~~(i)~~

(h) For purposes of this section, the following terms have the following meanings:

(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.

~~(j)~~

(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.