Amended  IN  Senate  May 10, 2017
Amended  IN  Senate  April 26, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 4

Introduced by Senator Mendoza

December 05, 2016

An act to add Chapter 12.495 (commencing with Section 8879.80) to Division 1 of Title 2 of the Government Code, and to amend Section 2192 of the Streets and Highways Code, relating to goods movement, by providing the funds necessary therefor through an election for the issuance and sale of bonds of the State of California and for the handling and disposition of those funds.


LEGISLATIVE COUNSEL'S DIGEST


SB 4, as amended, Mendoza. Goods movement: allocation of federal funds: Goods Movement and Clean Trucks Bond Act.

(1)The

The Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 (Proposition 1B) created the Trade Corridors Improvement Fund and provided for allocation by the California Transportation Commission of $2 billion in bond funds for infrastructure improvements on highway and rail corridors that have a high volume of freight movement, and specified categories of projects eligible to receive these funds. Existing law continues the Trade Corridors Improvement Fund in existence in order to receive revenues from sources other than the bond act for these purposes. Proposition 1B also provided for the allocation of $1 billion in bond funds to the State Air Resources Board for emission reductions, not otherwise required by law or regulation, from activities related to the movement of freight along California’s trade corridors, which was allocated by the state board pursuant to the Goods Movement Emission Reduction Program.
This bill, subject to voter approval at the June 5, 2018, statewide primary election, would enact the Goods Movement and Clean Trucks Bond Act to authorize $600,000,000 $500,000,000 of state general obligation bonds as follows: $200,000,000 to the California Transportation Commission for projects and programs eligible for funding from the Trade Corridors Improvement Fund; $200,000,000 to the State Air Resources Board for projects and programs consistent with the Goods Movement Emission Reduction Program; and $200,000,000 $300,000,000 to the State Air Resources Board for projects and programs to expand the use of zero- and near-zero emission trucks in areas of the state that are designated as severe or extreme nonattainment areas for ozone and particulate matter.

(2)Existing law requires the California Transportation Commission, in determining projects eligible for funding from the Trade Corridors Improvement Fund, to consult various state freight and regional infrastructure and goods movement plans and the statewide port master plan.

This bill would revise the list of plans to be consulted by the commission in prioritizing projects for funding. The bill would expand eligible projects to include, among others, rail landside access improvements, landside freight access improvements to airports, and certain capital and operational improvements. The bill would also identify specific amounts to be allocated from federal goods movement funds made available by the federal Fixing America’s Surface Transportation Act to certain categories of projects.

Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Chapter 12.495 (commencing with Section 8879.80) is added to Division 1 of Title 2 of the Government Code, to read:
CHAPTER  12.495. The Goods Movement and Clean Trucks Bond Act
Article  1. General Provisions

8879.80.
 This chapter shall be known as the Goods Movement and Clean Trucks Bond Act.

8879.82.
 As used in this chapter, the following terms have the following meanings:
(a) “Board” has the meaning as described in Section 8879.87.
(b) “Committee” means the Goods Movement and Clean Trucks Bond Committee created pursuant to Section 8879.87.
(c) “Fund” means the Goods Movement and Clean Trucks Bond Fund created pursuant to Section 8879.83.

Article  2. Goods Movement and Clean Trucks Bond Fund and Program

8879.83.
 (a) The Goods Movement and Clean Trucks Bond Fund is hereby created in the State Treasury.
(b) The proceeds of bonds deposited in the fund shall be used, upon appropriation by the Legislature, to fund goods movement and clean trucks improvements as follows:

(1)Two hundred million dollars ($200,000,000) to the California Transportation Commission for projects and programs eligible for funding from the Trade Corridors Improvement Fund (TCIF) under Section 2192 of the Streets and Highways Code and, to the extent practicable, pursuant to the existing TCIF guidelines of the commission. Priority shall be given to projects and programs identified under the California Sustainable Freight Action Plan released in July 2016 pursuant to Executive Order B-32-15.

(2)

(1) Two hundred million dollars ($200,000,000) to the State Air Resources Board for projects and programs consistent with the Goods Movement Emission Reduction Program (Chapter 3.2 (commencing with Section 39625) of Part 2 of Division 26 of the Health and Safety Code). Priority shall be given to projects and programs identified under the Sustainable Freight Action Plan released in July 2016 pursuant to Executive Order B-32-15.

(3)Two

(2) Three hundred million dollars ($200,000,000) ($300,000,000) to the State Air Resources Board for projects and programs to expand the use of zero- and near-zero emission trucks in areas of the state that are designated as severe or extreme nonattainment areas for ozone and particulate matter.

Article  3. Fiscal Provisions

8879.85.
 Bonds in the total amount of six five hundred million dollars ($600,000,000), ($500,000,000), or so much thereof as is necessary, not including the amount of any refunding bonds, or so much thereof as is necessary, may be issued and sold to provide a fund to be used for carrying out the purposes expressed in this chapter and to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5. The bonds, when sold, issued, and delivered, shall be and constitute a valid and binding obligation of the State of California, and the full faith and credit of the State of California is hereby pledged for the punctual payment of both principal of, and interest on, the bonds as the principal and interest become due and payable.

8879.86.
 The bonds authorized by this chapter shall be prepared, executed, issued, sold, paid, and redeemed as provided in the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4), except Section 16727, and all of the other provisions of that law as amended from time to time apply to the bonds and to this chapter and are hereby incorporated in this chapter as though set forth in full in this chapter.

8879.87.
 (a) Solely for the purpose of authorizing the issuance and sale, pursuant to the State General Obligation Bond Law, of the bonds authorized by this chapter, the Goods Movement and Clean Trucks Bond Committee is hereby created. For the purposes of this chapter, the Goods Movement and Clean Trucks Bond Committee is “the committee” as that term is used in the State General Obligation Bond Law. The committee consists of the Treasurer, the Controller, the Director of Finance, and the Secretary of Transportation, or a designated representative of each of those officials. The Treasurer shall serve as the chairperson of the committee. A majority of the committee may act for the committee.
(b) For the purposes of the State General Obligation Bond Law, the California Transportation Commission, with respect to paragraph (1) of subdivision (b) of Section 8879.83, and the State Air Resources Board, with respect to paragraphs (2) and (3) (1) and (2) of subdivision (b) of Section 8879.83, is designated to be the “board.”

8879.88.
 The committee shall determine whether or not it is necessary or desirable to issue bonds authorized pursuant to this chapter in order to carry out the actions specified in Section 8879.83, and, if so, the amount of bonds to be issued and sold. Successive issues of bonds may be authorized and sold to carry out those actions progressively, and are not required to be sold at any one time. Bonds may bear interest subject to federal income tax.

8879.89.
 There shall be collected each year and in the same manner and at the same time as other state revenue is collected, in addition to the ordinary revenues of the state, a sum in an amount required to pay the principal of, and interest on, the bonds each year. It is the duty of all officers charged by law with any duty in regard to the collection of the revenue to do and perform each and every act that is necessary to collect that additional sum.

8879.90.
 Notwithstanding Section 13340, there is hereby appropriated from the General Fund in the State Treasury, for the purposes of this chapter, an amount that will equal the total of the following:
(a) The sum annually necessary to pay the principal of, and interest on, bonds issued and sold pursuant to this chapter, as the principal and interest become due and payable.
(b) The sum necessary to carry out Section 8879.91, appropriated without regard to fiscal years.

8879.91.
 For the purposes of carrying out this chapter, the Director of Finance may authorize the withdrawal from the General Fund of an amount not to exceed the amount of the unsold bonds that have been authorized by the committee to be sold for the purpose of carrying out this chapter, less any amount withdrawn pursuant to this section and Section 8879.92. Any amounts withdrawn shall be deposited in the fund to be allocated in accordance with this chapter. Any moneys made available under this section shall be returned to the General Fund from proceeds received from the sale of bonds for the purpose of carrying out this chapter.

8879.92.
 The board may request the Pooled Money Investment Board to make a loan from the Pooled Money Investment Account, including other authorized forms of interim financing that include, but are not limited to, commercial paper, in accordance with Section 16312, for purposes of carrying out this chapter. The amount of the request shall not exceed the amount of the unsold bonds that the committee, by resolution, has authorized to be sold for the purpose of carrying out this chapter, excluding refunding bonds authorized pursuant to Section 8879.96. The board shall execute any documents required by the Pooled Money Investment Board to obtain and repay the loan. Any amounts loaned shall be deposited in the fund to be allocated by the board in accordance with this chapter.

8879.93.
 Notwithstanding any other provision of this chapter, or of the State General Obligation Bond Law, if the Treasurer sells bonds pursuant to this chapter that include a bond counsel opinion to the effect that the interest on the bonds is excluded from gross income for federal tax purposes, subject to designated conditions, the Treasurer may maintain separate accounts for the investment of bond proceeds and for the investment of earnings on those proceeds. The Treasurer may use or direct the use of those proceeds or earnings to pay any rebate, penalty, or other payment required under federal law or take any other action with respect to the investment and use of those bond proceeds required or desirable under federal law to maintain the tax-exempt status of those bonds and to obtain any other advantage under federal law on behalf of the funds of this state.

8879.94.
 All moneys deposited in the fund that are derived from premium and accrued interest on bonds sold pursuant to this chapter shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest, except that amounts derived from premium may be reserved and used to pay the cost of bond issuance prior to any transfer to the General Fund.

8879.95.
 Pursuant to Chapter 4 (commencing with Section 16720) of Part 3 of Division 4, the cost of bond issuance shall be paid or reimbursed out of the bond proceeds, including premium, if any. To the extent the cost of bond issuance is not paid from premiums received from the sale of bonds, these costs shall be allocated proportionately to each program funded through this chapter by the applicable bond sale. Any bond refunded with the proceeds of refunding bonds as authorized by this section may be legally defeased to the extent permitted by law in the manner and to the extent set forth in the resolution, as amended from time to time, authorizing the refunded bond.

8879.96.
 The bonds may be refunded in accordance with Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of Division 4, which is a part of the State General Obligation Bond Law. Approval by the voters of the state for the issuance of the bonds described in this chapter includes the approval of the issuance of any bonds issued to refund any bonds originally issued under this chapter or any previously issued refunding bonds.

8879.97.
 The Legislature hereby finds and declares that, inasmuch as the proceeds from the sale of bonds authorized by this chapter are not “proceeds of taxes” as that term is used in Article XIII B of the California Constitution, the disbursement of these proceeds is not subject to the limitations imposed by that article.

SEC. 2.Section 2192 of the Streets and Highways Code is amended to read:
2192.

(a)(1)The Trade Corridors Improvement Fund, created pursuant to subdivision (c) of Section 8879.23 of the Government Code, is hereby continued in existence to receive revenues from state sources other than the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006.

(2)Revenues apportioned to the state under Section 167 of Title 23 of the United States Code from the national highway freight program, pursuant to the federal Fixing America’s Surface Transportation Act (“FAST Act,” Public Law 114-94) shall be allocated for projects approved pursuant to this chapter.

(b)This chapter shall govern the expenditure of those state and federal revenues described in subdivision (a).

(c)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 and adopted pursuant to Section 13978.8 of the Government Code. In prioritizing the projects for funding, the commission shall consult the California Sustainable Freight Action Plan released in July 2016 pursuant to Executive Order B-32-15, trade infrastructure and goods movement plans adopted by regional transportation planning agencies, adopted regional transportation plans required by state and federal law, and the applicable port master plan. Eligible projects for the funding described in subdivision (a) shall further the state’s economic, environmental, and public health objectives and goals for freight policy, as articulated in the plans to be consulted pursuant to this subdivision. Eligible projects are as follows:

(1)Highway, local road, and rail capital and capacity improvements, rail landside access improvements, landside freight access improvements to airports, seaports, and land ports, and operational 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 through mountainous regions, relocate rail switching yards, and other projects that improve the efficiency and capacity of the rail freight system.

(3)Infrastructure improvement projects to enhance the capacity and efficiency of ports without having the effect of displacing workers in port operations.

(4)Truck corridor and capital and operational improvements, including, but not limited to, dedicated truck facilities or truck toll facilities.

(5)Border capital and operational 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 and connector road capital and operational 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.

(d)(1)In evaluating the program of projects to be funded with funds described in paragraph (2) of 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 commission shall consult with the agencies identified in Executive Order B-32-15 and metropolitan planning organizations in order to utilize the appropriate models, techniques, and methods to develop the parameters for evaluating the program of projects. The commission shall allocate the funding described in paragraph (2) of subdivision (a) for trade infrastructure improvements as follows:

(A)One hundred fifty million dollars ($150,000,000) shall be dedicated exclusively to fund improvements to California’s existing or planned land ports of entry on the border with Mexico. The department, in consultation with the San Diego Association of Governments and the Imperial County Transportation Commission, shall nominate a program of projects for funding allocations that make border capital and operational improvements to enhance goods movement between California and Mexico and contribute to the reduction of emissions.

(B)Seventy million dollars ($70,000,000) shall be dedicated exclusively to fund projects for the elimination, alteration, or improvement of hazardous railroad-highway grade crossings. Projects shall be jointly nominated by the department and a regional transportation agency.

(C)Three hundred sixty million dollars ($360,000,000) 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, and consistent with corridor-based programming targets contained in the Trade Corridors Improvement Fund (TCIF) Guidelines adopted by the commission on November 27, 2007, or as amended by the commission, to provide reasonable geographic targets for funding allocations without constraining what an agency may propose or what the commission may approve. However, the San Diego Association of Governments, the Imperial County Transportation Commission, and other public agencies in San Diego and Imperial Counties shall be excluded from nominating projects under this subparagraph.

(2)The commission shall proportionately adjust the amounts in subparagraphs (A), (B), and (C) of paragraph (1) if the amount of funds described in paragraph (2) of subdivision (a) is less than or greater than five hundred eighty million dollars ($580,000,000).

(3)The commission shall adopt guidelines 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) provides reasonable geographic balance between the state’s regions, (D) 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, and (E) makes a significant contribution to the state’s economy. The commission shall adopt any amendments to the 2007 guidelines no later than April 1, 2018.

(4)In adopting amended guidelines, and developing and adopting the program of projects, the commission shall do all of the following:

(A)Accept nominations for projects to be included in the program of projects from regional and local transportation agencies and the department.

(B)Recognize the key role of the state in project identification and support integrating statewide goods movement priorities into the corridor approach.

(C)Give the highest priority for funding allocations to projects jointly nominated by the department and a regional or other public agency.

(5)In addition, the commission shall also consider the following factors when allocating funds under this section:

(A)“Velocity,” which means the speed by which large cargo would travel from the land port of entry or seaport through the distribution system.

(B)“Throughput,” which means the volume of cargo that would move from the land port of entry or seaport through the distribution system.

(C)“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.

(D)“Congestion reduction,” which means the reduction in recurrent daily hours of delay to be achieved.

SEC. 3.SEC. 2.

 Section 1 of this act shall take effect upon the adoption by the voters of the Goods Movement and Clean Trucks Bond Act, as set forth in Section 1 of this act.

SEC. 4.SEC. 3.

 The Secretary of State shall submit the Goods Movement and Clean Trucks Bond Act, as set forth in Section 1 of this act, to the voters at the June 5, 2018, statewide primary election.