HomeMy WebLinkAboutMINUTES - 12141993 - TC.2 TC.-al-
TO: BOARD OF SUPERVISORS
--_ Contra
FROM: TRANSPORTATION COMMITTEE
Costa
.•,
DATE: DECEMBER 13 , 1993 COunty
SUBJECT: REPORT ON PLANNING & CONSERVATION LEAGUE'S PROPOSED 1994
TRANSPORTATION FUNDING INITIATIVE
SPECIFIC REQUEST(S) OR RECOMMENDATIONS) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
1. Accept report on Planning & Conservation League's proposed
1994 transportation funding initiative.
2 . Approve in substantially the form presented a letter to the
Planning & Conservation League providing comment from the
Board on their initiative.
3 . Direct County staff to work with County's transportation
legislative advocate, CCTA, MTC, and state legislative
delegation to incorporate in future state legislation or
initiatives dealing with statewide transportation funding
priorities the principles or concepts contained in Board's
comment letter to the PCL.
FISCAL IMPACT
None.
BACKGROUND/REASONS FOR RECOMMENDATIONS
The Planning and Conservation League (PCL) has prepared a
transportation funding initiative for the November, 1994 ballot
which would impose a four percent sales tax on gasoline with the
revenue being used for transportation projects throughout
California (see Exhibit A) . The new tax would raise approximately
$700 million a year, or $10. 5 billion over fifteen years, to be
allocated by the California Transportation Commission.
CONTINUED ON ATTACHMENT: x YES SIGNATURE
RECOMMENDATION OF COUNTY ADMINISTRATOR x RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S) : upervisor Tom Powers Supervisor Gayle Bishop
ACTION OF BOARB ON December 14 , 1993 APPROVED 'AS RECOMMENDED x OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
x UNANIMOUS (ABSENT TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
Contact: Patrick Roche (510/646-2835) ATTESTED December 14 , 1993
cc: Community Development Department (CDD) PHIL BATCHELOR, CLERK OF
CAO THE BOARD OF SUPERVISORS
Public Works AND COUNTY ADMINISTRATOR
CCTA (via CDD)
D.J. Smith Associates
BY , DEPUTY
PR:\PCI,.Caltca
M v
Report on Planning & Conservation League's Proposed
1994 Transportation Funding Initiative
Continued - Page Two
Funds would be spent on rail and bus electrification, local transit
operating funds, new light rail systems, commuter rail, intercity
rail, earthquake safety for bridges, bicycle and pedestrian
facilities, electric and clean fuel vehicles development, traffic
signal synchronization, highway-rail grade separations and traffic
safety improvements in rural areas.
The PCL ballot initiative earmarks a considerable amount of funding
toward capital rail projects considered to be of "statewide
significance" , including: the publicly owned Alameda rail freight
corridor in Los Angeles ($350 million) , LA-SF coast route corridor
($500 million) , Caltrain extension to Downtown San Francisco ($200
million) , LA-San Diego rail corridor ($60 million) , Riverside/San
Bernardino-LA commuter and intercity rail ($70 million) , Port of
Oakland intermodal rail freight facility ($20 million) and
statewide railroad rights-of-way acquisition projects ($140
million) . Funds are also set aside for several rail corridor
studies and up to $40 million per year will be reserved to assist
in leveraging private funding for a statewide high speed rail
project beginning in the year 2005 . Should the state legislature
withdraw the 1994 rail bond measure, also scheduled for the
November ballot, PCL states that the revenue from their initiative
will fund the projects that would have been funded from the rail
bond act.
The PCL ballot initiative includes provisions that are intended to
control expenditures. These include limiting up to 20% of money
spent within each program on administrative overhead, including
studies, planning, engineering, design, and environmental reports,
and limiting Caltrans construction programs to 20% administrative
overhead. Another key provision prohibits the state legislature
from diverting transit or highway funds to other purposes (a recent
legislative practice to help balance the state budget which has
significantly impacted several transportation programs) .
PCL estimates that over fifteen years the San Francisco Bay Area
counties could receive up to $765 million in transit capital
outlays and $767 million in transit operating revenue from the
proposed four percent gasoline sales tax. Funds would be provided
in three ways: from individual projects named in the initiative,
from new local transit capital and operating revenue, and from
statewide competitive programs. It is difficult to determine
precisely Contra Costa County's potential share of benefit
resulting from the programs and projects this gasoline sales tax
increase would fund, but there are some projects and programs which
either directly or indirectly benefit East Bay communities,
including :
- $20 million for an intermodal rail facility at the Port of
Oakland;
- $525 million for seismic reinforcement of Bay Area bridges
(northern bridge group share undetermined) ;
- $30 million for acquisition of rail cars to serve the Capitol and
San Joaquin corridors;
- East Bay jurisdictions and transit agencies would be eligible to
compete statewide for approximately $1 billion (over 15 years)
to fund various projects, such as acquisition of rail rights-of-
way, capital and operating funds for intercity rail service,
bike/pedestrian projects, traffic signal synchronization
projects, grade separations, carpool/commuter programs, etc.
The PCL has filed with the State Attorney General's Office proposed
language for this initiative and it will appear on the November,
1994 ballot if they can collect the necessary 385, 000 valid
signatures of registered voters between January and April of 1994 .
Report on Planning & Conservation League's Proposed
1994 Transportation Funding Initiative
Continued - Page Three
The Transportation Committee has reviewed the PCL initiative and
recommends the Board of Supervisors forward comments to the PCL via
the Chair (see Exhibit B) . Furthermore, the Transportation
Committee recommends the Board direct staff to work with County's
legislative advocate, Contra Costa Transportation Authority,
Metropolitan Transportation Commission, and state legislative
delegation to incorporate the principles or concepts contained in
Board's comment letter to the PCL in future state legislation or
initiatives concerned with statewide transportation funding
priorities.
PR:\PCL.bo
EXHIBIT A
The people of the State of California do enact as follows:
SECTION 1. Section 99399.12 is added to the Public Utilities Code to read:
99399.12. This act shall be known and may be cited as the Clean Air, Jobs, and Transportation Efficiency
Act of 1994.
SECTION 2. Section 99399.13 is added to the Public Utilities Code to read:
99399.13. The People of the State of California find and declare:
(a) Improving air quality and saving energy are vital for the well-being of the people of
California. One of the best ways to accomplish these goals is to convert existing public transit systems to
electrical and clean fuel operation and to build new public transit systems which run on electricity and
clean fuels.
(b) Improving public transportation service to those with disabilities and the elderly is an
important public goal.
(c) Increasing the efficiency of public transportation systems, and reducing waste and bureaucratic
overhead is important in an era of diminished public resources.
(d) When funds are collected for a specific transportation purpose, they should be used for that
purpose.
(e) Preventing crime and graffiti on public transportation vehicles is important to the quality of
Life in our cities, and to the safety and security of transit passengers.
(f) Reinforcing roads and bridges to prevent loss of life in earthquakes is a worthwhile use of
transportation funds.
(g) Increasing the safety of passenger rail systems by utilizing automated enforcement technology
at grade crossings will save lives and reduce accidents by providing for more effective and efficient
enforcement of grade crossing laws.
(h) Providing funds to reduce the impact of transportation on the environment by protecting
sensitive lands, planting trees in and near urban areas, providing funding for bicycle and trail projects,
and other projects is an appropriate use of transportation funding.
(i) It is appropriate to pay for these programs through an increase in the sales tax on gasoline.
SECTION. 3. Section 14502.5 is added to the Government Code to read:
14502.5. (a) The Rail Committee of the California Transportation Commission is hereby created, and is
comprised of three of the members of the California Transportation Commission appointed pursuant to
subdivision (a) of Section 14502. No member of the committee shall be the commissioner who represents the
Public Utilities Commission. All appointees to the committee shall have knowledge and expertise in rail and
other forms of public transportation.
For the initial committee, two of the members of the committee shall be the members of the
commission who are appointed to the commission after January 10, 1995, to fill the vacancies on the
commission which occur in 1995. The third member of the committee shall be appointed by the Governor after
January 10, 1995, from the current members of the commission, and shall serve until the Governor fills the
next vacancy on the Commission, at which time the member appointed to fill that vacancy shall become the
third member of the committee.
(b) The committee shall have full and sole jurisdiction and authority to allocate the funds made
available to it pursuant to this act, as defined by Section 99399 of the Public Utilities Code. In
addition, the committee shall have the full authority to allocate all state and federal rail and public
transit funds over which the commission otherwise would have jurisdiction, including bond funds approved by
the voters, and transit funds made available pursuant to the Transportation Planning and Development
Account, and other state funds available to the commission which are designated for rail and other public
transit projects. Nothing in this subdivision shall be interpreted as granting either the commission or the
committee the authority to allocate federal funds to a local transit agency or the department that are
allocated directly from the federal government. The commission shall program all funds which may be
allocated on a flexible basis to transit or highway purposes. The committee shall allocate all flexible
funds which are programmed by the commission for transit purposes. The members of the committee shall be
full voting members of the commission on all matters which require action by the commission.
(c) The purpose of this section is to streamline and expedite the early allocation and distribution
of funds provided for rail and public transit programs, and to efficiently expend funds authorized by this
act (as defined in Section 99399 of the Public Utilities Code) to stimulate the California economy and
create jobs.
(d) The committee shalt cease to exist on January 1, 2000, and the full commission shall assume the
powers and duties of the committee pursuant to this act, as defined in Section 99399 of the Public Utilities
Code.
SECTION 4. Section 29531 of the Government Code is amended to read:
29531, (a) The board of supervisors shall continuously appropriate the money in such the local
transportation fund for expenditure for the purposes specified in this article directly related to
administration of the fund and the fund's revenue and the transportation and associated fund administration
purposes specified in Chapter 4 (commencing with Section 99200) of Part 11 of Division 10 of the Public
Utilities Code.
(b) The local transportation fund is a trust fund. Once the local transportation fund is created
it shall not be abolished. Money in the fund shall only be allocated to mass transportation pedestrian and
bicycle facilities, streets and roads, transportation planning and fund administration purposes as
required by this article and by Chapter 4 (commencing with Section 99200) of Part 11 of Division 10 of the
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Public Utilities Code. Neither the county nor the legislature shall divert any of the money in the fund from
these purposes to another purpose.
(c) If a statute transfers any funds or results in the transfer of any funds from the Local
transportation funds to any other account fund or other depository, directly or indirectly within ninety
days of the effective date of the statute the Controller shall transfer an amount equivalent to the amount
of the transfer from the General Fund to the local transportation funds There is hereby appropriated from
the General Fund an amount necessary to make any transfer required by this subdivision
SECTION 5. Section 25619 is added to the Public Resources Code, to read:
25619. (a) Funds transferred pursuant to subdivision (e) of Section 7103 of the Revenue and Taxation Code
are continuously appropriated, notwithstanding Section 13340 of the Government Code and without regard to
fiscal year, to the State Energy Conservation Assistance Account, to be expended by the Energy Commission.
(b) The funds transferred pursuant to subdivision (a) shall be used for research, development,
demonstration, and commercialization of electric, hybrid-electric (including but not Limited to hybrid
utility vans), and other "ultra-low emission" and "zero emission" vehicles and vehicle technologies, and
establishment of these advanced transportation technology industries in California. The Energy Commission
shall expend these funds in consultation with the Department of Transportation and the Air Resources Board,
and may adopt guidelines to implement this section. High priority for use of these funds shall be to
promote commercialization of these technologies by assisting in the purchase of these vehicles by public
agencies. Public agencies using funds provided pursuant to this subdivision shall purchase vehicles meeting
the emission standards established by the Air Resources Board for "ultra-low emission" and "zero emission"
vehicles. The terms "ultra-low emission" and "zero emission" shall be defined by the Air Resources Board.
For purposes of this section, "vehicle" includes passenger cars, light and medium-duty trucks and vans,
other vehicles for personal transportation, and buses. Expenditures pursuant to this subdivision for buses
and bus technologies shall not exceed ten million dollars ($10,000,000).
The Energy Commission shall seek additional funds to augment these programs. In allocating funds
for these programs the Energy Commission shall give preference to vehicle technologies which are identified
by the Air Resources Board as having very low fuel cycle emissions of air pollutants, or other air quality
characteristics which, in the judgement of the Air Resources Board, provide significant air quality and
economic benefits to California. In assisting in the purchase of vehicles by public agencies, the Energy
Commission shall have as a goal that the agencies' own purchase or lease cost of the vehicles, not counting
the assistance provided by the Energy Commission and other forms of assistance, be no more than the cost of
comparable conventional gasoline or diesel fueled vehicles.
(c) The Legislature may amend subdivision (b) of this section by statute passed in each house of the
Legislature by roll call vote entered in the journal, four-fifths of the membership concurring, if the
statute is consistent with and furthers the purposes of this act, as defined in Section 99399 of the Public
Utilities Code.
SECTION 6. Section 99232 of the Public Utilities Code is amended to read:
99232. Sat Notwithstanding any other provision of law, for counties with a population of 500,000 or more,
as de-toxmiAed by the 1979 fedepal. deceppial GeAsus, but exrlwdipq roupties with more than 4,500 miles of
as determined by the most recent population information available from
the Department of Finance, the amount representing the apportionments of the areas of all operators serving
an urbanized area of 100,000 or more in population shall be available solely for claims for Section 99234
purposes,- awd for Article 4 (commencing with Section 99260) and Article 4.5 (commencing with Section 99275)
purposes, and not for street and road purposes, and any of those moneys not allocated in any year shall be
available for those claims in subsequent years. However, no area which was subject to the apportionment
restriction of this section in effect on July 1, 1993, shall become eligible to receive funds for street and
road purposes as a result of any change to this section made by this act as defined in Section 99399 In
the event of a conflict between this section and any other provision of law, this section shall prevail
This section shall become operative on July 1, 1995.
(b) The Legislature may amend subdivision (a) of this section by statute passed in each house of the
Legislature by roti call vote entered in the iournal four-fifths of the membership concurring if the
statute is consistent with and furthers the purposes of this act, as defined in Section 99399
SECTION 7. Section 99310.5 of the Public Utilities Code is amended to read:
99310.5. (a) The account is hereby designated a trust fund.
(b) The funds in the account are
continuously appropriated, notwithstanding Section 13340 of the Government Code, without regard to fiscal
year, to the committee, for allocation only for the transportation planning and mass transportation purposes
as f ied by %he 6e rla required by this article.
(c) Any reference to the account in this article also includes the subaccount established by Section
99310.6, except as provided in Section 99310.6 and Article 7.5 (commencing with Section 99385) In the case
of a conflict between this section and Section 99310.6 or Article 7.5 (commencing with Section 99385)
Section 99310.6 and Article 7.5 shall prevail.
(4}(d) The Legislature may amend subdivision (c) of this section by statute passed in each house of
the Legislature by roll call vote entered in the journal, xwe-%hipds four-fifths of the membership
concurring, if the statute is consistent with, and furthers the purposes of, this seciiep act, as defined in
Section 99399.
SECTION 8. Section 99310.6 is added to the Public Utilities Code to read:
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99310.6. Funds transferred to the account pursuant to Section 7103 of the Revenue and Taxation Code shalt
be deposited in a separate subaccount of the account, which shalt be known as the Clean Air, Jobs, and
Transportation Efficiency Act Subaccount. Interest on these funds shalt accrue to the subaccount.
Notwithstanding Section 13340 of the Government Code, all money in the subaccount is continuously
appropriated, without regard to fiscal year, to the committee for allocation as required by Article 7.5
(commencing with Section 99385).
SECTION 9. Section 99310.7 is added to the Public Utilities Code to read:
99310.7. (a) No funds in the account shalt be used for debt service for general obligation bonds issued for
transportation purposes pursuant to Chapter 17 (commencing with Section 2701) and Chapter 19 (commencing
with Section 2703) of Division 3 of the Streets and Highways Code, or bonds issued pursuant to Chapter 6
(commencing with Section 99690) of Part 11.5, or for any future general obligation bonds that the state may
authorize and issue.
(b) All loans that were made from the account in order to pay transportation bond debt service
pursuant to the relevant provisions of the Budget Act of 1992, the Budget Act of 1993, and any other budget
acts, shalt be repaid, with interest at the pooled money investment rate applicable to the period during
which the Loans were outstanding, on or before June 1, 1997, with funds other than funds in the account or
other funds dedicated to transportation purposes. If these Loans have not been repaid in full by that date,
the Controller shalt transfer fifty (50) percent of the amount due, including interest, on June 30, 1997,
from the General Fund to the account, and shalt transfer the remainder, including interest, from the General
Fund to the account on or before June 1, 1998. There is hereby appropriated from the General Fund an amount
necessary to make any transfer required by this subdivision. The loans that were made pursuant to the
relevant provisions of the budget acts described in this subdivision shalt be considered to be loans until
repaid, notwithstanding any other provision of taw.
SECTION 10. Section 99310.8 is added to the Public Utilities Code to read:
99310.8. (a) Except as otherwise specified in this article and Article 7.5, and other provisions of this
act, as defined in Section 99399, no funds shalt be transferred or loaned from the account to any other
account, fund, or other depository. The intent of this subdivision is to provide funds to mass
transportation and other public transportation purposes, and to successfully implement the purposes of
Sections 99399.10 and 99399.13 and this act, as defined in Section 99399.
(b) ALL interest, rental or Lease income, or other income earned by the state from the funds in the
account or from income produced by property acquired by the state by funds from the account, directly or
indirectly, shalt remain or be deposited in the account. This subdivision shalt not apply to income
produced by property acquired and developed by local agencies or joint powers authorities pursuant to grants
made by the state.
(c) If a statute transfers any funds from the account to any other account, fund, or other
depository, directly or indirectly, within ninety days of the effective date of the statute the Controller
shalt transfer an amount equivalent to the amount of the transfer from the General Fund to the account.
There is hereby appropriated from the General Fund an amount necessary to make any transfer required by this
subdivision.
SECTION 11. Section 99310.9 is added to the Public Utilities Code to read:
99310.9. (a) (1) Notwithstanding Section 99310.8, all funds returned to the Transportation Planning and
Development Account pursuant to subdivision (b) of Section 99310.7 shalt be transferred to the Passenger
Equipment Acquisition Fund created pursuant to Article 4 (commencing with Section 14060) of Chapter 1 of
Part 5 of the Government Code. That fund is and shalt continue to be a continuously appropriated fund,
notwithstanding Section 13340 of the Government Code and without regard to fiscal year, and notwithstanding
any other provision of Law. These funds shalt be available to the department, at the discretion of the
department, to exercise remaining options for intercity California rail cars initially procured pursuant to
Section 99649; and to purchase such rail cars modified as necessary to meet the speed requirements of
subparagraph (C) of paragraph (1) of subdivision (c) of Section 99391.
(2) If by the date the funds are returned to the account the equipment originally
purchased pursuant to Section 99649 is not completely delivered and in revenue service, or if there are
remaining significant contractual disputes between the department and the manufacturer of the equipment
regarding equipment performance, the department may allocate the funds to the purchase of any rail cars and
Locomotives suitable for service in intercity rail service.
(3) In allocating the California rail cars purchased pursuant to paragraphs (1) and
(2), highest priority shalt be given to providing cars for intercity rail service on the Los Angetes-Orange
County-San Diego rail corridor.
(4) ALL funds returned to the account and transferred to the Passenger Equipment
Acquisition Fund and not expended by January 1, 2010, shalt be transferred to the subaccount to be expended
for the purposes of the subaccount.
(b) (1) The department shalt not provide for the replacement of any existing Amtrak-owned or teased
intercity rail cars in use on or after January 1, 1996, on California-supported intercity rail routes in
existence on January 1. 1996, with state-owned California cars, unless Amtrak or the federal government
provide assurances that a minimum of 90 percent federal funding has been secured for acquisition of
California rail cars with at least as many aggregate number of seats as the Amtrak-owned cars to be replaced
and removed from California for use on Amtrak routes in other states. Alternatively, the department may
provide for the replacement of existing Amtrak-owned equipment on state-supported routes providing Amtrak
contractually agrees to retain an equivalent or greater number of existing or new Amtrak-owned cars for use
on new or expanded California-supported services, or if Amtrak agrees to another comparable or greater
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deployment of equipment within California which is fair to the State.
(2) This subdivision does not apply to Amtrak equipment in interstate service.
(3) The legislature may amend paragraphs (1) and (2) of this subdivision by statute passed
in each house of the Legislature by roll call vote entered in the journal, four-fifths of the membership
concurring, if the statute is consistent with and furthers the purposes of this act, as defined in Section
99399.
SECTION 12. Section 99311 of the Public Utilities Code is amended to read:
99311. Funds transferred, or scheduled as a reimbursement, to the
account, pursuant to Section 21682.5 of this code and Section 194 of the Streets and Highways Code, shall be
available for allocation by the director, in cooperation with the commission, for the following purposes:
(a) State transportation planning.
(b) Regional transportation planning by transportation planning agencies designated pursuant to
Section 29532 of the Government Code, but not those specified in subdivision (b) of Section 29532.4 of the
Government Code.
SECTION 13. Section 99312 of the Public Utilities Code is amended to read:
99312. From the funds transferred to the account pursuant to Section 7102 of the Revenue and Taxation Code,
funds shall be allocated subject to the approval of the Director of
Finance for purposes of Section 99315.5. The remaining transferred funds in the account shall be
appPoppiated by the hegislatupe, allocated as follows:
(a) To the department, 50 percent for purposes of Section 99315, subiect to the
requirements of Section 99316. No funds shall be made available for subdivision (c) of Section 99315 as
Long as funds are available pursuant to subdivision (g) of Section 7103 of the Revenue and Taxation Code.
Funding shall continue to be available for subdivision (b) of Section 99315, and at least 15 percent of
those funds shall be allocated to intercity rail projects.
(b) To the Controller, 25 percent for allocation to transportation planning agencies,
county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to
Section 99314.
(c) To the Controller, 25 percent for allocation to transportation agencies, county
transportation commissions, and the San Diego Metropolitan Transit Development Board for purposes of Section
99313.
The Legislature may amend subdivisions (a) (b) and (c) of this section by statute passed in each
house of the Legislature by roll call vote entered in the journal, four-fifths of the membership concurring
if the statute is consistent with and furthers the purposes of this act, as defined in Section 99399
SECTION 14. Section 99315.5 of the Public Utilities Code is amended to read:
99315.5. From the funds made available pursuant to Section 99312, an amount shall be allocated appFepiated
for each of the following purposes:
(a) To the department for its planning activities not payable from the State Highway Account in the
State Transportation Fund, its mass transportation responsibilities, and its assistance in regional
transportation planning.
(b) To the director for allocation, subject to Section 99315.6, to the Institute of Transportation
Studies of the University of California and to the International Institute for Surface Transportation Policy
Studies, authorized by the Intermodal Surface Transportation Efficiency Act of 1991 (P.L. 102-240) as the
Institute for National Surface Transportation Policy Studies for training and research in public
transportation systems engineering and management and coordination with other transportation modes and other
public transportation policy issues. The director shall provide dollar-for-dollar matching_ funds for any
_federal funds provided to each institute.
(c) To the commission subject to the approval of the Director of Finance, for its activities not
payable from the State Highway Account.
(d) To the Public Utilities Commission for its passenger rail safety responsibilities specified in
statute on commuter rail, intercity rail, and urban rail transit lines.
(e) The legislature may amend subdivisions (a) through (d) of this section by statute passed in each
house of the Legislature by roll call vote entered in the iournal, four-fifths of the membership concurring
if the statute is consistent with and furthers the purposes of this act, as defined in Section 99399
SECTION 15. Section 99316 of the Public Utilities Code is amended to read:
99316. (a) Funds made available pursuant to subdivision (a) of Section 99315 shall be appFepia%ed allocated
to the department fop allannWeAT as directed by the raw aissiep, committee- for purposes of bus and
passenger rail services pursuant to Sections 14035, 14035.5, and 14038 of the Government Code and
maintenance and operation of all rail lines and stations owned by the department and by the ioint powers
authority established pursuant to Section 250000. The department shall request and the committee shall
approve sufficient funds to operate the same levels of revenue service miles of state-funded rail and
associated feeder bus service in existence as of the effective date of this act (as defined by Section
99399) and all proposed services authorized pursuant to this act and otherwise proposed by the department
subiect to farebox recovery requirements of Section 14031.8 of the Government Code as modified by this
section. For purposes of this section, the farebox recovery requirements for a route shall include the
aggregate revenues and costs from all passenger trains operated on the route as a whole including Amtrak
trains not funded by the state, and excluding the cost of right-of-way acquisition and other capital costs.
The department may request funding of up to one hundred (100) percent of long-term avoidable costs of new
4
and expanded intercity rail services in order to facilitate implementation of those services
(b) The Legislature may amend subdivision (a) of this section by statute passed in each house of the
Legislature by roll call vote entered in the iournal, four-fifths of the membership concurring if the
statute is consistent with and furthers the purposes of this act as defined in Section 99399
SECTION 16. Article 7.5 is added to Chapter 4, Part 11, Division 10 of the Public Utilities Code to read:
Article 7.5. Clean Air, Jobs, and Transportation Efficiency Act Subaccount of the Transportation Planning
and Development Account
99385. The People of the State of California find and declare all of the following:
(a) An improved seamless multimodal transportation system is vital to strengthening the state's
economy, creating jobs, and providing increased mobility, cleaner air, energy savings, and congestion
relief.
(b) Public transportation must continue to be an important component of the statewide
transportation system.
(c) Several recently enacted state and federal mandates have increased the demand for public
transportation services, without concurrently increasing funding for these services. These mandates include
the Americans with Disabilities Act of 1990, the federal Clean Air Act Amendments of 1990, the California
Clean Air Act of 1988, the applicable provisions of the federal Energy Policy Act of 1992 (P.L. 102-486), as
well as other enactments which prescribe clean air standards. The State of California should provide
funding to allow California's public transit operators to carry out these mandates.
(d) Electrification of public transportation and the use of clean fuels for public transportation
provide substantial clean air and energy savings benefits.
(e) Preservation of passenger rail rights of way is vital to maintain and expand a systeri of rail
transportation which can help meet California's transportation needs in the 21st Century.
99387. (a) Funds shall not be allocated pursuant to this article for a project requiring service over the
right-of-way of a railroad corporation unless a course of improvements and operation is agreed to by the
railroad corporation or unless the right-of-way, or a part of the right-of-way, is acquired by eminent
domain or purchase, or the right to use the right-of-way or its tracks is acquired by purchase or lease.
New or increased passenger service over the right-of-way of a railroad corporation shall be implemented in a
manner which ensures the adequacy and efficiency of existing freight service.
(b) No specific amounts allocated pursuant to this article are intended to indicate the actual fair
market value of any railroad right of-way or trackage rights to be acquired or leased. Similarly, no
specific amounts allocated for a specific project are intended to indicate the total costs to complete any
such project.
(c) ALL acquisitions or Long term leases of rights-of-way and trackage rights shall be considered
capital outlay projects.
99388. (a) The commission and the committee shall require each applicant for a grant pursuant to this act
(as defined by Section 99399) including the department, to demonstrate in its application that if the grant
funds being applied for are awarded, no other funds which were previously planned, programmed, or approved
for public transportation purposes will be used for other than public transportation purposes.
(b) Funds provided pursuant to this act (as defined in Section 99399) may be used to satisfy any
federal requirement for non-federal matching funds for the project to be funded.
(c) Consistent with the requirements of Section 99399.15, the requirements of Section 99680 and
99683 shall apply to any funds granted pursuant to this act (as defined in Section 99399) by the commission
or the committee.
99389. All funds in the subaccount are continuously appropriated without regard to fiscal years,
notwithstanding Section 13340 of the Government Code, to the committee created pursuant to Section 14502.5
of the Government Code for allocation as required by this article.
99390. (a) Sixty five (65) percent of the revenues transferred to the subaccount in each fiscal year shall
be available for the programs and projects in Section 99391.
(b) Thirty five (35) percent of revenues transferred to the subaccount shall be available in each
fiscal year for transit operations, as provided in Section 99393.
(c) Funds allocated to the purposes of subdivision (a) remaining at the end of each fiscal year
shall only be available for the purposes of subdivision (a) in future years; funds allocated to the purposes
of subdivision (b) remaining at the end of each fiscal year shall only be available for the purposes of
subdivision (b) in future years.
99391. (a) Funds available pursuant to subdivision (a) of Section 99390 shall be programmed and allocated by
the committee as provided in this section. Funds shall also be available for acquisition of rolling stock
for projects eligible for funding pursuant to this section.
(b) Electrification of publicly owned urban rail transit system lines and bus lines shall not be
considered a precedent for electrification of other rail lines, including freight rail lines, by any
regulatory agency.
(c) (1) The committee shall allocate funds authorized to be spent by subdivision (a) of section
99390 to the following mass transportation projects of statewide significance. No funds available pursuant
to this paragraph shall be expended for the acquisition of rail rights-of-way on or after January 1, 2000.
Notwithstanding any other provision of law, all of the projects listed in this paragraph shall be funded
regardless of whether they have been included in the State Transportation Improvement Program or a Regional
Transportation Improvement Program.
5
(A) Five hundred thousand dollars ($500,000) shall be made available to the
department in cooperation with the National Park Service and local transportation agencies, to determine the
feasibility of implementing rail service from Merced to Yosemite National Park via the Highway 140 corridor.
(B) Three hundred fifty million dollars (5350,000,000) shall be made available to
the Los Angeles and Long Beach Harbor Commissions for track improvements, rail and roadway bridges, grade
separations, interconnections, depressed trainways, centralized traffic control, environmental remediation,
signal synchronization, and other improvements to the Alameda-San Pedro branch rail line connecting the los
Angeles and Long Beach Harbors with downtown Los Angeles and paralleling Alameda Street. Notwithstanding
any other provision of law, and consistent with the authority granted to the department over grade
separations along the Line pursuant to the intent of subdivision (b) of Section 99624, the department and
the Los Angeles and Long Beach Harbor Commissions shall be the only state and local agencies with authority
to make decisions regarding the timing and necessity of grade separations along the Alameda-San Pedro Branch
Line. These agencies shall consult with the Joint Powers Agency established to represent cities along the
Line. Notwithstanding any other provision of law, the Los Angeles and Long Beach Harbor Commissions may, in
any requests for competitive bids or in any negotiations for contracts to construct and equip a consolidated
rail corridor along the line and related on-dock container loading facilities, require potential bidders and
contractors to offer and provide private financing for all or a portion of the costs of construction and
equipping such corridor and related facilities.
(C) Five hundred million dollars ($500,000,000) shall be made available to the San
Francisco Bay Area-Los Angeles Rail Corridor Joint Powers Agency created pursuant to Section 250000, for
fast train intercity, tourist, commuter, and urban rail service between and to the San Francisco Bay Area,
San Jose, Gilroy, Watsonville, Salinas, Santa Cruz, San Luis Obispo, Monterey, Santa Barbara, San
Buenaventura, Burbank, and Los Angeles. Operation of fast train intercity rail services by the agency and
maintenance of the line shall be funded from funds available to the department for intercity rail service
operations, and shall be given equal priority for funding with other intercity rail service operations.
High priority shall be given to immediately providing funds to Amtrak to operate at least a second daily
frequency on the Coast Starlight route, and additional local intercity trains from San Luis Obispo to Los
Angeles. As used in this subparagraph, 'Mast train intercity service's means passenger rail service capable
of attaining speeds of 110 miles per hour. It shall be the goal of the state to provide fast train
intercity service between Los Angeles and the San Francisco Bay Area via coastline communities by the year
1999. The funds available pursuant to this subparagraph shall be allocated as follows:
(i) Not more than two hundred million dollars (5200,000,000) for the
acquisition of railroad rights-of-way. A joint appraisal of the value of the rights-of-way to be acquired
from Gilroy to the Ventura-Los Angeles County Line shall be conducted by the joint powers agency and the
affected railroad. Up to two hundred thousand dollars (5200,000) may be allocated by the agency for
purposes of this appraisal.
(ii) Not more than three hundred million dollars (5300,000,000) for track
and other capital improvements.
(iii) Not more than one hundred million dollars ($100,000,000) for the
acquisition of rolling stock capable of attaining speeds of 110 mites per hour, and other necessary
equipment. The rolling stock and other equipment acquired pursuant to this subparagraph shall be the
equipment and rolling stock designed to meet the requirements of Sections 99603 and 99649, appropriately
modified to meet the speed requirements of this subparagraph.
(D) Five grants of up to five hundred thousand dollars (5500,000) each shall be
made available by June 30, 1995, on a competitive basis to transit operators, subject to the approval of the
appropriate regional transportation planning agency or county transportation commission, serving at least
one urbanized area with a population of at least 100,000 that is not currently served or programmed to be
served by a light rail system, to determine the feasibility of implementing such a system and to identify
the most promising potential light rail corridors.
(E) One million dollars (51,000,000) to the Metropolitan Transportation Commission
to determine the feasibility of restoring rail service to the Bay Bridge without reducing the capacity of
the Bridge for automobile traffic.
(F) Two hundred million dollars (5200,000,000) to the Peninsula Commute Service
Joint Powers Board for the extension of CalTrain service to a downtown San Francisco terminal at or in the
immediate vicinity of the Transbay Terminal. The goal of Caltrain service shall include headways during the
day during and between commute periods of thirty minutes or less. The downtown San Francisco terminal shall
be designed so as not to preclude any future high speed rail service.
(G) At least five percent of the funds available pursuant to subdivision (a) of
Section 99390 shall be allocated annually to the Department for capital outlay projects to improve intercity
passenger rail service. These funds shall be in addition to other funds specified in this section for
intercity rail projects.
(H) One hundred forty million dollars (5140,000,000) shall be allocated to the
department and local agencies for the acquisition of rights-of-way and trackage rights which are important
for present or future passenger rail service in the reasonably near future.
(I) Sixty million dollars (560,000,000) shall be allocated to the department for
the improvement of the Los Angeles-Orange County-San Diego passenger rail corridor.
(J) Seventy million dollars (570,000,000) shall be allocated to the county
transportation commissions of Riverside and San Bernardino Counties, based on their respective populations,
for capital outlay projects for the improvement of intercity and commuter rail service serving Riverside and
San Bernardino Counties.
(K) Five million dollars (55,000,000) shall be allocated to the department for the
restoration of rail service between San Diego and Imperial Counties.
(L) Five hundred thousand dollars ($500,000) shall be allocated to the department
to undertake a feasibility study of expanded intercity rail service between Sacramento, Redding, and the
City of Mt. Shasta. Upon completion of such a study using these or other funds, any remaining funds
6
allocated by this subparagraph can be used to implement the service.
(M) Five hundred thousand dollars ($500,000) shall be allocated to the department
to undertake a feasibility study of expanded intercity rail service between Calexico and Los Angeles via the
Coachella Valley and Riverside. Upon completion of such a study using these or other funds, any remaining
funds allocated by this subparagraph can be used to implement the service.
(N) Twenty million dollars ($20,000,000) shall be allocated to the Port of Oakland
for the construction of the Joint Intermodal Terminal to facilitate the loading and rail shipment of
containerized goods from Port facilities.
(2) The committee shall program the funds authorized to be spent by subdivision (a) of Section
99390 which are not required for projects authorized pursuant to paragraph (1) to the recipient agencies
Listed in this paragraph, based on their share of the state population within their boundaries. The
committee shall use population figures provided by the Department of Finance. Unless inconsistent with this
act (as defined in Section 99399), applications for grants pursuant to this paragraph shall comply with the
requirements of Chapter 4 (commencing with 99660) of Part 11.5 of Division 10, as applicable to this
paragraph, except that Section 99665 shall not apply to applications for grants. The selection of rail
stations for the passenger rail projects funded pursuant to this paragraph shall to the greatest extent
practicable be located and designed to maximize access to and from the stations by modes other than the
automobile, and to promote transit use within highly urbanized areas.
After January 1, 2010, recipient agencies may propose changes to the priorities described in the
paragraphs which apply to themselves, and the committee may approve such changes if they are consistent with
the other requirements and purposes of this paragraph and this act, as defined by Section 99399. Where
priorities are established within recipient agencies with respect to projects or programs, funds available
in each year pursuant to this paragraph shall go to fund projects or programs identified as highest priority
that have a need for funds in that year. Funds may be allocated to lower priorities, and thereafter to the
priorities specified below, if the higher priorities do not have a need for funds in that year, as
determined by the recipient agency. Unless separate priorities are specified in this paragraph for a
recipient agency, all agencies receiving funds pursuant to this paragraph shall receive funds for projects
in the following order of priority.
First priority shall be given to electrification projects, and to urban rail transit, commuter,
and intercity rail capital outlay projects. Second priority shall be given to acquisition of clean fuel
buses and rail rolling stock, and electric buses and urban rail transit vehicles. Third priority shall be
given to the projects and purposes authorized by subdivisions (b), (d), (f), (g), (h), and (i) of Section
7103 of the Revenue and Taxation Code, and transit operations pursuant to subdivision (b) of Section 99390.
Funds available pursuant to this paragraph in each year shall go to fund projects or programs identified as
highest priority that have a need for funds in that year. Funds may be allocated to lower priorities if the
higher priorities do not have a need for funds in that year, as determined by the recipient agency.
The committee shall determine that the expenditure of the funds pursuant to this paragraph will, to
the maximum extent practicable, further the goal of providing a fully integrated bus, rail, air, and
waterborne transit system which increases passenger convenience and complements the State's substantial
existing transportation investments.
(A) San Diego Association of Governments. The following projects shall receive equal high
priority for funding:
(i) A tunnel or other projects to increase the speed of commuter rail service in
San Diego County.
(ii) Expansion of light rail service.
(B) Imperial County Board of Supervisors.
(C) Orange County Transportat;on Authority. The first priority for funding shall be for
the design, engineering, and construction of an initial. segment of an urban rail transit system within
Orange County.
(D) Riverside County Transportation Commission. The following projects shall receive the
same highest priority for funding: capital improvements and rolling stock on the passenger rail lines
between Riverside and San Jacinto, between Riverside and Irvine, between Riverside and Fullerton, and
between Riverside and Los Angeles via Ontario.
(E) San Bernardino County Transportation Commission.
(F) Los Angeles County Metropolitan Transportation Authority. No more than ten percent of
the annual allocation to the Authority pursuant to this paragraph. shall be for the Red Line extension,
regardless of the priorities set by the Authority pursuant to subparagraph (ii) of this paragraph.
(i) Extension of the Blue Line light rail line from Los Angeles to East Pasadena in
the San Gabriel Valley shall receive the highest priority in funding.
0i) Second priority shall be given to construct and extend urban rail transit
Lines, and for construction of and acquisition of rolling stock and equipment for electric trolley bus lines
and electric bus lines. The Authority shall establish the priority order of expenditures pursuant to this
subparagraph.
(G) Ventura County Transportation Commission. First priority for funding shall be for
extension to the City of San Buenaventura of existing commuter rail service.
(H) Santa Barbara County Association of Governments
(I) San Luis Obispo County Council of Governments.
(J) A joint application submitted by the regional transportation planning agencies of Santa
Cruz, San Benito, and Monterey Counties, or separate applications from any one of these counties if the
proposed projects are.specific to one county.
(K) A joint application submitted by the regional transportation planning agencies of Kern,
Tulare, Kings, Fresno, Madera, Merced, Stanislaus, and San Joaquin Counties. Improvements to the intercity
rail transportation corridor connecting Bakersfield and Stockton shall receive highest priority for funding.
The committee shall award funds to the appropriate agencies to undertake a study of intercity rail
transportation service on the rail route between Exeter and Huron, including Visalia, Hanford, and other
7
intermediate points, and shall award funds to implement the service if it is found to be feasible from
financial and engineering perspectives.
(L) A joint application submitted by the regional transportation planning agencies of
Tuolumne, Amador, Calaveras, Mariposa, Inyo, Mono, and Alpine Counties.
(M) Sacramento County. The application shall be submitted by the Sacramento Area Council
of Governments.
(i) Highest priority for funding shall be to the Sacramento Regional Transit
District to extend light rail service south from Sacramento, serving Sacramento City College.
(ii) Second priority shall be given equally to the extension of light rail service
to Antelope Road, Folsom, and Sacramento Metropolitan Airport.
(iii) Third priority shall be given equally to the extension of light rail service
from Antelope Road to Roseville, provision of passenger rail service from Sacramento to Colfax, Davis,
Truckee, woodland, and Marysville-Yuba City and to acquisition of a rail right-of-way from Folsom to
Placerville.
(N) A joint application submitted by the regional transportation planning agencies of El
Dorado, Yolo, Placer, Nevada, Sutter and Yuba Counties. Highest priority shalt be given equally to the
extension of light rail service from Antelope Road to Roseville, provision of passenger rail service to
Sacramento from Colfax, Davis, Truckee, Woodland, and Marysville-Yuba City and to acquisition of a rail
right-of-way from Folsom to Placerville.
(0) A joint application submitted by the regional transportation planning agencies of
Colusa, Glenn, Butte, Tehama, Shasta, Trinity, Lake,and Siskiyou Counties.
(P) A joint application submitted by the regional transportation planning agencies of
Sierra, Plumas, Modoc, and Lassen Counties.
(Q) A joint application submitted by the regional transportation planning agencies of Det
Norte, Humboldt, and Mendocino Counties. The first priority for funding shall be the rehabilitation of the
rail lines owned by the North Coast Railroad Authority.
(R) Metropolitan Transportation Commission. Of the funds received by the Commission, two
million dollars ($2,000,000) a year (increasing at rate of the consumer price index) may be used to fund
projects and studies related to improving the efficiency of public transit. This subparagraph shall not be
interpreted in a way which promotes privatization of public transit systems.
(i) The following projects shall receive equal highest priority in funding:
(a) Construction or improvement of a passenger rail corridor connecting the
Santa Clara County light rail system and a station on the San Francisco Bay Area Rapid Transit District
Fremont line.
(b) A high priority light rail line identified by the San Francisco Public
Utilities Commission. .
(c) A high priority light rail line identified by the Alameda Contra Costa
Transit District's light rail corridor study.
(d) Rehabilitation of the San Francisco Bay Area Rapid Transit District's
existing fleet of rolling stock.
(e) The "Metro East" light rail maintenance and storage facility in San
Francisco.
(f) A high priority light rail project identified by the Santa Clara County
Transit District.
(ii) After the projects in subparagraph (i) are completed, further expenditures for
additional public transportation projects, including exclusive public mass transit guideways, shall be for
priorities adopted by the Metropolitan Transportation Commission, consistent with the requirements of this
subparagraph. Any expenditures pursuant to this subparagraph for passenger rail projects shall be made
according to the following equal priorities: (1) cost effectiveness of the project measured in terms of
least cost per new transit rider, (2) rehabilitation and other operational improvements to existing
passenger rail service, (3) projects which have the lowest percentage of trips to and from the stations by
automobile, and (4) projects which promote transit use within highly urbanized areas.
(3) (A) Notwithstanding any other requirement of this section, the committee may allocate
up to ten percent of the funds available annually pursuant to subdivision (a) of Section 99390, at the
request of the department, for construction of a new, separate high speed intercity passenger main rail line
connecting Los Angeles, Bakersfield, Fresno, and San Jose, with connections to San Francisco via the
CalTrain corridor, and connections to Oakland. Funding may also be allocated for construction and operation
of a new, separate, high speed intercity passenger rail line connecting the main line to Stockton and
Sacramento. These funds shall only be deployed in a manner that maximizes private investment in such a
line. As used in this paragraph, "high speed" train service means passenger rail service that attains a
speed of at least 150 miles per hour.
It shall be the goal of the state to provide high speed train service, if sufficient funds become
available, between Los Angeles and the San Francisco Bay Area via the San Joaquin Valley by the year 2010.
The committee shall make a decision whether to allocate funds pursuant to this paragraph no later than
December 31, 1998, but the timing of the allocation of the funds shall be at the discretion of the
committee.
(B) The committee may allocate up to twenty million dollars (520,000,000) per year
of the funds available annually from the transit capital improvement program established pursuant to Section
99317 for up to thirty years for the purposes of subparagraph (A). The allocation made pursuant to this
subparagraph shall commence at the discretion of the committee, if the committee decides to allocate funds
pursuant to subparagraph (A).
99391.7. (a) For urban rail transit projects as defined in Section 164.50 of the Streets and Highways Code,
the state funding share provided pursuant to Section 99391 shall be 100 percent for the first fifteen
million dollars ($15,000,000) (increasing at the rate of the consumer price index) per mile of new
8
construction. For the portion of costs of urban rail transit projects in excess of fifteen million dollars
($15,000,000) per mite (increasing at the rate of the consumer price index) the committee shalt require 50
percent funding from nonstate sources. (b) Intercity and commuter rail projects shalt not require any
matching nonstate funds.
(c) Notwithstanding any other provision of law, or the requirements of subdivision (a), funds
received pursuant to this article by a local agency can be used to meet the matching fund requirements of
Part 11.5 (commencing with Section 99600).
99393. (a) Funding pursuant to subdivision (b) of Section 99393.4 shall only be available for allocation to
transit operators in an "area" of "apportionment" that has remaining transit needs after local
transportation funds and state transit assistance funds have been fully allocated to transit purposes, as
those terms are used in Section 99231. All funds that are not allocated for transit operations pursuant to
this section shall be transferred for allocation pursuant to Section 191.1 of the Streets and Highways Code
for highway-railroad grade separations, as provided by that section.
(b) The committee shall notify the Controller of the amount of funding required for transit
operating needs of statewide significance pursuant to subdivision (a) of Section 99393.4. The Controller
shall apportion the remaining funds pursuant to subdivision (b) of Section 99393.4. The Controller shalt
estimate revenue likely to be received by agencies receiving funding pursuant to Section 99393.4 and provide
this information to the agencies.
(c) First priority in the expenditure of funds by local operators pursuant to paragraphs (1) and (2)
of subdivision (b) of Section 99393.4 shall be for meeting the needs of disabled persons pursuant to the
requirements of the federal Americans with Disabilities Act (P.l.. 101-336); for the continuance of
paratransit services provided pursuant to the provisions of Chapter 4 of Part 11 of Division 10 to persons
65 years of age or older; for prevention of crime, gang activity, and graffiti on public transit systems and
vehicles; and for increasing the efficiency and cost effectiveness of transit system operations. This
subdivision shalt not be interpreted in a way which promotes privatization of public transit systems.
(d) At least ninety percent (90X) of all funds received by any agency pursuant to this section
shall be expended to provide direct transit service to the public, consistent with the other requirements of
the section.
99393.1. In order to receive an allocation for transit operating funds pursuant to Sections 99313, 99314,
and 99393, a transit operator shall be required to be in compliance with all of the following, except that
the committee, after a public hearing, may waive or modify the requirements of all or part of subdivisions
(b) and (c) on a substantial showing by the operator that either or both of these requirements are
financially or otherwise infeasible. The committee may delegate its power to waive these requirements as
they apply to transit operators which are entirely within the jurisdiction of a single transportation
planning agency to that transportation planning agency. Guidelines governing the implementation of this
section shall be adopted by the committee in consultation with regional transportation planning agencies and
operators and public transit users.
(a) The operator has adopted and is implementing an anti-graffiti policy which has as'a goat that no
transit vehicle containing any graffiti is dispatched at the beginning of a service day unless the graffiti
has first been removed.
(b) The operator offers free transfers on payment of a regular fare valid for use on its system for
a minimum of 90 minutes.
(c) The operator offers a day pass, a monthly pass, and an annual pass valid for unlimited rides on
its system for the time specified. Passes may be offered for one or more zones, in addition to the
operator's entire system. Operators shall accept credit cards and provide a billing option for discounted
annual passes. This subdivision shall apply only to operators with average daily weekday ridership of more
than 5,000 unlinked trips, and not to operators whose fare structures are based on distance.
(d) The operator accepts the California Pass authorized pursuant to section 14036.6 of the
Government Code for travel on its system without requiring payment of an additional fare.
(e) Free transfers shall be offered to transit customers connecting from an urban rail transit or
commuter rail line to a local bus system serving a rail station. Rail and bus operators shalt be reimbursed
for their reasonable costs of providing and accepting rail-to-bus transfers from funds eligible for
allocation for this purpose by the appropriate transportation planning agency, county transportation
commission, or transit development board. Each allocating agency, as appropriate, shall establish
guidelines governing the implementation of this subdivision, including the amount of reimbursement to
operators. Operators of bus systems shall have as a goal to coordinate bus schedules to maximize timely
connections between buses and trains.
(f) At the request of a campus of the University of California, the California State University, a
community college, or any other institution of higher learning, a transit operator shall enter into an
agreement with the university or college to provide unlimited use of its system at no charge to students
with a valid registration card in exchange for a regular Lump-sum payment by the university, college, or
institution to the operator sufficient to cover the costs to the operator of the agreement. The
implementation of such an agreement shalt be a high priority for use of parking fees and parking penalties
received by a college campus.
(g) The operator offers at least a fifty (50) percent discount from the regular fare, rounded to the
nearest quarter dollar, to persons 65 years of age and older, and to disabled persons, at a minimum during
off-peak travel periods on service available to the general public. The committee, after a public hearing,
may waive or modify the requirements of Section 99268.3, 99268.4, and 99268.9, whichever are applicable, if
compliance with this subdivision causes violation of the applicable farebox recovery requirement.
(h) The operator of a passenger rail service has adopted and is implementing a h ighway-rai t road
grade crossing safety program which includes the use of automated enforcement technology at grade crossings
with 5,000 or more average weekday vehicle crossings to reduce accidents, fatalities, and injuries at grade
crossings. The operator shalt agree to acquire and implement this technology at existing grade crossings by
9
the year 2000, and at new grade crossings at the time of construction. Acquisition and implementation of
this technology may be funded by funds provided to operators pursuant to Sections 99390, 99391, and 99393.
The committee may waive this requirement at individual highway-railroad grade crossings on a showing by the
operator that it is not necessary to reduce accidents, fatalities, and injuries at that grade crossing.
99393.3. Funding for transit operations available pursuant to this article shall not be allocated to any
area of apportionment where a finding has been made by the transportation planning agency pursuant to
Section 99401.5 that there are either no unmet transit needs or no unmet transit needs that are reasonable
to meet within that jurisdiction. As used in this section, "area" has the same meaning as in Section 99231.
99393.4. (a) Of the funds available pursuant to Section 99393, funds shalt be allocated first to the
following programs of statewide priority:
(1) Upon a finding that the National Park Service will implement a plan to restrict entry
of private vehicles into Yosemite Valley, other than persons with confirmed camping reservations and
disabled persons, such funds as are necessary, up to a limit of four million dollars (84,000,000) a year
(increasing at the rate of the consumer price index) to operate a frequent and convenient public
transportation system within the park and connecting Merced with Yosemite Valley shalt be made available to
the department for allocation to the National Park Service. In order to be eligible to receive funds
pursuant to this paragraph, the National Park Service shall maintain a level of funding for public transit
service at least equal to the funding provided in 1993-94 (increasing at the rate of the consumer price
index) for the park shuttle services.
(2) Upon a finding that the Tahoe Transportation District authorized pursuant to Section
66801 of the Government Code has been activated, funding up to a limit of one million dollars (81,000,000) a
year (increasing at the rate of the consumer price index) shall be available for a unified transit system
serving the California portion of the Lake Tahoe Basin and Truckee. In order to be eligible to receive an
allocation of funds pursuant to this paragraph, the Tahoe Transportation District shall certify that it is
scheduled to receive all of the local transportation funds and state transit assistance funds eligible to be
used for public transit purposes that are apportioned to its area.
(b) Of the remaining funds available pursuant to Section 99393, the funds shall be distributed as
follows:
(1) One third of the funds shall be allocated by the Controller pursuant to the same
formula as in Section 99313.
(2) One third of the funds shall be allocated by the Controller pursuant to the same
formula as in Section 99314.
(3) (A) Notwithstanding the priorities in subdivision (c) of Section 99393, one third of
the funds shall be allocated by the Controller using the same formula as in Section 99313, and shall be used
to increase the-frequency of service along routes that have the greatest potential to increase ridership if
that service frequency is increased. Eligible projects shall only include bus and urban rail transit routes
thathave basic weekday service frequency of not less than thirty minutes and commuter rail routes that have
basic weekday service frequency of not less than sixty minutes during peak hours. On rail routes frequency
augmentations can take place at hours other than the peak if it is determined that such service will
increase the overall passenger utilization of the service. If it is not practicable to use the funds for
this purpose, they shall be used to increase the frequency of basic weekday service on bus and rail routes
which have the greatest potential to increase ridership if the service frequency is increased. Allocations
made pursuant to this paragraph may include funds necessary for increases in paratransit service, as
required by the federal Americans with Disabilities Act (P.L. 101-336), which are complementary to the
service provided as a result of the allocation.
The committee shall adopt guidelines for the distribution of these funds by the recipient agencies,
based on public hearings, to implement this subdivision. The guidelines shall include evaluation of the
success of the programs funded in increasing ridership. The committee :hall insure that multi-county or
multi-agency rail commuter systems are included in the guidelines with equal standing with bus and rail
operators included within each agency or region.
(B) Funds allocated pursuant to subparagraph (A) to increase service frequency
shall continue to be allocated to the same programs in succeeding years if the programs increase and sustain
ridership to or near levels at least as high as projected in the original grant application.
(c) All administrative and eligibility provisions applicable to the State Transit Assistance program
shall be applicable to the funds atlocated pursuant to this section, including but not limited to the
provisions in Sections 99312.7, 99313.6, 99313.7, 99314.3, 99314.6, and 99314.7, as applicable. The funds
from this section shall be deposited in special subaccounts of state transit assistance funds created
pursuant to Section 99313.6.
99393'.5. Local public agencies that acquire or have acquired rail rights-of-way with state funding
participation, in the event those lines are used jointly for commuter and intercity rail services, shall
work cooperatively with the department and Amtrak to property schedule all trains in accordance with
scheduling practices adopted by major railroads for similar corridors.
Where commuter service exists, intercity trains shall generally be scheduled to serve a minimum
number of intermediate stops and shalt normally run on a regular schedule. Local agencies, the department,
and Amtrak shall consult with one another prior to making scheduling decisions. Unresolved disputes between
local agencies, and between local agencies and the department shall be arbitrated through a procedure
approved by the committee. No party advocating one of the disputed positions shall be designated an
arbitrator in the mediation efforts. Local agencies shall also provide access to ticket machines for
intercity ticket sales, on such terms as the parties may agree, unless such access subjects the agencies to
additional federal regulation. Commuter and intercity service shall be operated in a manner that maximizes
public convenience.
10
99396. All capital outlay funds allocated by the committee or the commission, and all capital outlay funds
expended by the department shall be subject to the requirements of this section.
(a) The department in expending capital outlay funds, and any public agencies receiving capital
outlay funds from the commission, the committee, or the department may not expend more than twenty percent
(20X) of those funds on administrative overhead. At least eighty percent (80X) of those funds received must
be spent on actual project construction, including acquisition of rights-of-way. The committee, the
commission and the department shall prepare a report showing the expenditure of the capital outlay funds
which are saved through implementation of this section.
(b) The Controller shalt annually audit compliance with the requirements of subdivision (a) by the
department and any other agencies receiving such capital outlay funds. The commission shall advance to the
Controller the costs estimated by the Controller in performing such audits for the ensuing fiscal year and
for the other costs incurred by the Controller pursuant to the act, as defined in Section 99399. If the
Controller finds that the department or another agency receiving capital outlay funds have not complied with
the requirements of subdivision (a), the Controller may take any necessary action, including litigation,
issuing a direct order, or offsetting any funds expended in violation of this section in subsequent fiscal
years pursuant to Section 12419.5 of the Government Code. The Controller may also adopt regulations to
further define "administrative overhead" as used in this section. The adoption and amendment of regulations
pursuant to this subdivision shall not be subject to the requirements of Part 1 of Division 3 of Title 2 of
the Government Code.
(c) In the event of any conflict between this subdivision and Section 14524.16 of the Government
Code, this subdivision shall prevail.
99397. (a) The committee may request the Treasurer to sell revenue bonds secured by the revenue streams
allotted to capital outlay projects pursuant to this article on a schedule that will provide the funds when
needed as identified in the program described in this article, including the funds identified in
subparagraph (B) of paragraph (3) of subdivision (c) of Section 99391. The Treasurer is authorized to sell
such revenue bonds pursuant to this section. Nothing in this section shalt authorize the sale of general
obligation bonds without a vote of the people.
(b) The recipient agencies named in subdivision (c) of Section 99391 may request the committee to
request the Treasurer to sell revenue bonds for the construction of projects funded pursuant to that
paragraph consistent with a reasonable assumption about revenues which would be allocated to that regional
agency, and the committee may make such a request if it is consistent with the requirements of subdivision
(a), and the remainder of this act (as defined in Section 99399).
99398. (a) This section shall not become operative if a general obligation bond act primarily for rail or
other transportation purposes appears on the General Election or other statewide ballot in November 1994.
(b) Notwithstanding Section 13340 of the Government Code or any other provision of law, the first 20
percent of revenue available each year from the Retail Sales Tax Fund derived from the additional tax
imposed by Sections 6052 and 6201.8 of the Revenue and Taxation Code, pursuant to Section 7103 of the
Revenue and Taxation Code is continuously appropriated to the committee without regard to fiscal years to
meet programming commitments made by the commission in the 1992 State Transportation Improvement Program
that were intended to have been funded by general obligation bonds issued pursuant to Article 1 of Chapter
19 of Division 3 (commencing with Section 2703) of the Streets and Highways Code. At such time as a total
of one billion dollars ($1,000,000,000) has been made available to the committee pursuant to this section,
all revenues available pursuant to Section 7103 of the Revenue and Taxation Code shall be allocated as
provided by that section, and this section shall be inoperative. The Board of Equalization, in consultation
with the Controller, shall adopt regulations to implement this subdivision. The adoption and amendment of
regulations pursuant to this subdivision shall not be subject to the requirements of Part 1 of Division 3 of
Title 2 of the Government Code.
(c) Notwithstanding Section 99391 and any other provision of taw, if this section takes effect the
committee shall, with the funds remaining after the implementation of subdivision (b), give first priority
to funding the projects designated in paragraph (1) of subdivision (c) of Section 99391, before funding
projects and programs in subdivisions (b) through (i) of Section 7103 of the Revenue and Taxation Code and
paragraphs (2) and (3) of subdivision (c) of Section 99391.
99398.1. The Legislature may amend this article, by statute passed in each house of the Legislature by roll
call vote entered in the journal, four-fifths of the membership concurring, if the statute is consistent
with and furthers the purposes of this act, as defined by Section 99399. However, the legislature may not
amend subdivision (c) of Section 99388; Sections 99389, 99390, 99391. 99391.7, and 99393.3; subdivision (a)
of Section 99393.4, or Sections 99398 and 99398.1.
SECTION 17. Article 7.6 (commencing with Section 99399) is added to Chapter 4, Part 11, Division 10 of the
Public Utilities Code to read:
Article 7.6 General Provisions Applicable to the Clean Air, Jobs, and Transportation Efficiency Act of
1994.
99399. The Clean Air, Jobs, and Transportation Efficiency Act of 1994 consists of Section 14502.5 and
Section 29531 (as amended) of the Government Code; Section 25619 of the Public Resources Code; Sections
99232 (as amended), 99310.5 (as amended), 99310.6, 99310.7, 99310.8, 99310.9, 99311 (as amended), 99312 (as
amended), 99315.5 (as amended), 99316 (as amended), Article 7.5 (commencing with Section 99385) of Chapter 4
of Part 11 of Division 10, Article 7.6 (commencing with Section 99399) of Chapter 4 of Part 11 of Division
10, and Division 26 (commencing with Section 250000) of the Public Utilities Code; Sections 97.05, 6052,
6201.8, 6480.1 (as amended), 7102 (as amended), and 7103, of the Revenue and Taxation Code; and Sections
164.561, 191.1, 195, 196, 197, 199.12, 199.13, 199.14, and 894.5 of the Streets and Highways Code. For
11
purposes of this article, "act" means the Clean Air, Jobs, and Transportation Efficiency Act of 1994.
99399.1. (a) It is the intent of the People of the State of California in approving this act that should any
statute or amendment to the Constitution be approved on November 8, 1994 that could prevent this act from
taking effect, the People intend that this act go into effect, regardless of the passage of any such statute
or Constitutional Amendment, and regardless of the number of votes received by any measure on the November
8, 1994 ballot.
(b) This act shall take effect notwithstanding any other provision of law.
(c) It is the express intent of the voters that this act shall take effect and become operative at
12:01 a.m. on November 8, 1994.
(d) It is the express intent of the voters that this act shall take effect and become operative even
if the Constitution is amended at the November 8, 1994, election to prohibit or restrict the enactment of
new taxation.
99399.2. If any provision of this act or the application thereof is held invalid, the invalidity shall not
affect other provisions or applications of the act which can be given effect without the invalid provision
or application, and to this end the provisions of this act are severable.
99399.3. For purposes of this act, the following terms used in the act have the following meanings, unless
expressly stated otherwise:
(a) "Account" is the Transportation, Planning and Development Account, as continued and created in
Section 99310, unless another account is specifically named.
(b) "Administrative Overhead" is all noncapital costs incurred through the award of the
construction contract. These costs include the costs incurred by outside contractors. With respect to the
department, "administrative overhead" includes the prorated share of distributed departmental
administration, as identified in the Governor's proposed budget, attributable to project development
activities. The calculation of the prorated share of departmental administration shall exclude tort
payments, the costs of legal services associated with those payments, and the costs associated with projects
for which the department has provided design oversight only, or has not been the responsible agency for
project design. In any conflict between this definition and its application, and the provisions of Section
14524.16 of the Government Code, the provisions of this definition shall prevail.
(c) "Committee" means the Rail Committee of the California Transportation Commission established
pursuant to Section 14502.5 of the Government Code.
(d) "Electrification" means conversion of bus lines to electrical operation and creation of new
electrically powered bus lines through the purchase of electric vehicles, and the installation of equipment
allowing electrically operated buses to have access to a central electric power system. Electrification
also means the construction of new electrically-powered urban rail transit passenger transportation systems,
including acquisition of rolling stock, related infrastructure, and rights-of-way to provide such service.
Electrification also includes acquisition of electric vehicles used to transport the public to and from rail
stations.
(e) "light rail" means an urban rail transit project which uses surface streets or a dedicated
right of way, but excludes commuter rail and intercity rail projects.
(f) "Mass transportation" means public transportation services and facilities normally provided to
or offered to the general public, and services and facilities funded pursuant to subparagraphs (B), (K), and
(N) of paragraph (1) and subdivision (0) of paragraph (2) of subdivision (c) of Section 99391, and does not
include services available only to a restricted group or category of persons, except for community transit
services as defined in Section 99275. "Mass transportation" includes "public transportation systems", and
transportation services for any group, as determined by the transportation planning agency, requiring
specialized transportation assistance as provided in subdivisions (c), (d), and (e) of Section 99400.
(g) "Rail" means projects using standard railroad technology or urban rail trsnsit technology, using
tracks consisting of two parallel rails and rolling stock riding on top of the rails. "Rail" also means
other urban rail transit technology utilizing rails or monorails if the technology is proven in urban
operation.
(h) "Right-of-way" means right-of-way for rail purposes, including separate right-of-way alignments
adjacent to existing freight lines.
(i) "State Highway Account" is the State Highway Account in the state transportation fund.
(j) "Subaccount" means the Clean Air, Jobs, and Transportation Efficiency Act subaccount of the
Transportation Planning and Development Account established pursuant to Section 99310.6.
(k) "Urban rail. transit" is as defined in Section 164.50 of the Streets and Highways Code.
(l) Unless otherwise defined in this act, the definitions in subdivisions (a), (b) (c), (d), (e),
(h), (i), and (k) in Section 99602 shall apply to this act. In the case of conflict between the definitions
of Section 99602 and this section, the definitions in this section shall prevail.
99399.4. This act shall be liberally construed to further its purposes, especially with respect to being
allowed to take effect.
99399.5. Any conflict between a provision in this act and any other provision of law in existence prior to
the effective date of this act shall be resolved in favor of the provision in this act.
99399.6. Any ambiguity or uncertainty with respect to this act shall be resolved in a manner that is
consistent with the intent and purposes of this act as expressed in Sections 99399.10 and 99399.13.
99399.7. Every project undertaken pursuant to this act shall comply with the California Environmental
Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
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99399.8. The act shall be implemented in the most expeditious manner. All state and local officials shall
implement this act to the fullest extent of their authority.
99399.9. Section 5358 of the Elections Code shall not apply to this act. The intent of this section is to
assure that the act can be carried out in an orderly and comprehensive manner.
99399.10. The purpose of this act is to provide funds for public transportation construction and operation;
to protect transportation funding sources from being diverted for non-transportation purposes; to increase
the safety and convenience of the public, the disabled and elderly in their use of California public
transportation systems; to reduce the cost of administrative overhead in building transportation systems; to
save energy and improve air quality by providing a more efficient transportation system as an alternative to
the single passenger vehicle; and to provide jobs and economic development through development and operation
of public transportation facilities throughout California.
99399.11. Construction projects or works of improvement for facilities which are paid for in part or in
whole using funds from the subaccount or provided by subdivision (c) of Section 7103 of the Revenue and
Taxation Code shall be considered public works projects subject to Chapter 1 (commencing with Section 1720)
of Part 7 of Division 2 of the Labor Code and shall be enforced by the Department of Industrial Relations in
the same manner in which it carries out this responsibility under the Labor Code.
99399.14. The allocation of a grant or grants to a state or local agency for a particular project or
program pursuant to any provision of this act shall not preclude eligibility for an additional allocation of
grant funds to the same state or local agency pursuant to other provisions of this act or any other
provision of law, for the same project or program or a different project or program.
99399.15. Any commuter or intercity rail cars purchased with state funds shall be designed to accommodate a
minimum of four bicycles per car. The design shall allow seating for passengers in the space designated for
bicycles if the space is not needed for bicycles. This section is consistent with the intent of Section
99683, and is not in conflict with that section.
99399.16. The Legislature may amend Sections 99399.11, 99399.14, and 99399.15, by statute passed in each
house of the legislature by roll call vote entered in the journal, four-fifths of the membership concurring,
if the statute is consistent with and furthers the purposes of this act, as defined in Section 99399.
99399.17. Any state or local agency that expends any capital outlay funds appropriated by this act shall in
the expenditure of those funds, to the maximum extent practicable, utilize the services of the California
Conservation Corps and local community conservation corps as defined in Section 14507.5 of the Public
Resources Code, or as certified to be eligible by the California Conservation Corps.
SECTION 18. Division 26 (commencing with Section 250000) is added to the Public Utilities Code as follows:
Division 26. San Francisco Bay Area-Los Angeles Rail Corridor Joint Powers Agency.
250000. (a) The Counties of Santa Clara, Santa Cruz, Monterey, San Benito, San Luis Obispo, Santa Barbara,
Ventura, and Los Angeles shall form the San Francisco Bay Area-Los Angeles Rail Corridor Joint Powers Agency
for the purposes of acquiring, constructing, and operating a fast train intercity, tourist, commuter, and
urban rail corridor between the San Francisco Bay Area and Los Angeles. Each county shall have one vote on
the Agency's Board. Each county shall be represented on the agency's board by its regional transportation
planning agency, or county transportation commission in counties with commissions, or the Board of
Supervisors in other counties in regions with statutorily created multi-county regional transportation
planning agencies. It shall be the goal of the Joint Powers Agency to establish fast train intercity
passenger rail service capable of transporting passengers between the San Francisco Bay Area and Los Angeles
in less than six hours. Funds previously designated pursuant to Part 11 (commencing with Section 99600) of
Division 10 for the member counties of the Joint Power Agency may also be utilized for this purpose, and for
the purpose of urban rail systems between Watsonville Junction and Santa Cruz, and between Monterey and the
main Coast Line. The agency shall coordinate with the Department of Transportation; Amtrak; the Association
of Monterey Bay Area Governments; and transportation agencies and operators representing the counties of San
Francisco, Alameda, Contra Costa and San Mateo in order to assure appropriate interconnections with other
rail and bus service.
(b) The San Francisco Bay Area-Los Angeles Rail Corridor Joint Powers Agency shall have the
following powers:
(1) To acquire real and personal property of every kind for passenger rail purposes by grant,
gift, devise, lease, purchase or eminent domain, and to hold, use, sell, lease, or transfer any such
property.
(2) To enter into any contract necessary to carry out its powers including any contract with the
Department of Transportation, Amtrak or any private entity to operate train service.
(3) To establish or change rates, charges, and services. The Public Utilities Commission shall
have no jurisdiction over the Joint Powers Agency or any of its activities except as to matters of public
safety.
(4) To apply for and receive additional local, state, and federal funds for passenger rail
purposes.
(5) To indemnify and defend any railroad corporation, regardless of its negligence, that
operates passenger rail services for the Joint Powers Agency pursuant to contract.
(6) To appoint an Executive Officer, and to employ staff and legal counsel.
(7) To sue and be sued.
13
(c) The Legislature may amend subdivisions (a) and (b) of this section by statute passed in each
house of the Legislature by roll call vote entered in the journal, four-fifths of the membership
concurring, if the statute is consistent with and furthers the purposes of this act, as defined in Section
99399, and does not diminish the powers of the Agency with respect to the acquisition and operation of the
rail corridor.
SECTION 19. Section 97.05 is added to the Revenue and Taxation Code to read:
97.05. (a) Locally generated property tax revenues have been and continue to be an important source of
revenue for many local transportation agencies throughout California.
(b) The Legislature shall not reduce or reallocate the percentage of property tax revenues
allocated to local transportation agencies, including single county and multiple county agencies,
regardless of the composition of the governing boards of such agencies, below the percentage of property
tax allocations made to such agencies for the 1992.93 fiscal year.
(c) If a statute directly or indirectly reduces or reallocates any property tax revenues required
by this section to be allocated to one or more local transportation agencies so that the percentage of
property tax revenues allocated to such agency or agencies is reduced below the level provided in
subdivision (b), within ninety days of the effective date of the statute the Controller shall transfer to
such agency or agencies, from the General Fund, an amount equal to the difference between the reduced or
reallocated property tax allocation and the amount of property tax the agency or agencies would otherwise
have been entitled to receive had the reduction or reallocation not been made. There is hereby
appropriated from the General Fund an amount necessary to make any transfer required by this subdivision.
SECTION 20. Section 6052 is added to the Revenue and Taxation Code, to read: -
6052. (a) In addition to the taxes imposed by the other provisions of this article, for the privilege of
selling motor vehicle fuel, as defined by Section 6480, at retail, a tax at the rate of four percent is
hereby imposed upon all retailers on the gross receipts of the retailer from the sale of motor vehicle
fuel at retail in this state on and after January 1, 1995. The tax shall be subject to the prepayment
requirements in Section 6480.1.
(b) This tax is imposed pursuant to the Sales and Use Tax Law.
SECTION 21. Section 6201.8 is added to the Revenue and Taxation Code, to read:
6201.8. (a) In addition to the taxes imposed by the other provisions of this article, an excise tax is
hereby imposed on the storage, use or other consumption in this state of motor vehicle fuel, as defined by
Section 6480, purchased from any retailer on or after January 1, 1995, for storage, use or other
consumption in this state at the rate of four (4) percent of the sales price of the property.
(b) This tax is imposed pursuant to the Sales and Use Tax Law.
SECTION 22. Section 6480.1 of the Revenue and Taxation Code is amended to read:
6480.1. (a) After service of written notification by the board, on the first distribution in this state of
motor vehicle fuel subject to the motor vehicle fuel license tax, the distributor shall collect prepayment
of retail sales tax from the person to whom the motor vehicle fuel is distributed. The prepayment
required to be collected by the distributor constitutes a debt owed by the distributor to this state until
paid to the board, until satisfactory proof has been submitted to prove that the retailer of the fuel has
paid the retail sales tax to the board, or until a distributor or broker who has consumed the fuel has
paid the use tax to the board. Each distributor shall report and pay the prepayment amounts to the board,
on a form prescribed by the board, in the period in which the fuel is distributed. On each subsequen!
distribution of that motor vehicle fuel, each seller, other than the retailer, shall collect from his or
her purchaser a prepayment computed using the rate applicable at the time of distribution. Each
distributor shall provide his or her purchaser with a receipt or invoice for the collection of the
prepayment amounts which shall be separately stated thereon.
(b) After service of written notification by the board, the broker shall collect prepayment of the
retail sales tax from the person to whom the motor vehicle fuel is transferred. The prepayment required
to be collected by the broker constitutes a debt owed by the broker to the state until paid to the board,
or until satisfactory proof has been submitted to prove that the retailer of the fuel has paid the tax to
the board. Each broker shall provide his or her purchaser with a receipt or invoice for the collection of
the prepayment amounts which shall be separately stated thereon.
Each broker shall report and pay the prepayment amounts to the board, on a form prescribed by the
board, in the period in which the fuel is distributed. The amount of prepayment paid by the broker to his
or her vendor shall constitute a credit against the amount of prepayment required to be collected and
remitted by the broker to the board.
(c) A distributor or broker who pays the prepayment and issues a resale certificate to the seller,
but subsequently consumes the fuel, shalt be entitled to a credit against his or her sates and use taxes
due and payable for the period in which the prepayment was made, provided that he or she reports and pays
the use tax to the board on the consumption of that fuel.
(d) The amount of a prepayment paid by the retailer or a distributor or broker who has consumed the
fuel to the seller from whom he or she acquired the fuel shalt constitute a credit against his or her
sales and use taxes due and payable for the period in which the distribution was made. Failure of the
distributor or broker to report prepayments or the distributor's or broker's failure to comply with any
other duty under this article shalt not constitute grounds for denial of the credit to the retailer,
distributor, or broker, either on a temporary or permanent basis or otherwise. The retailer, distributor,
or broker shall be entitled to the credit to the extent of the amount prepaid to his or her supplier as
14
evidenced by purchase documents, invoices, or receipts stating separately the amount of tax prepayment.
(e) The rate of the prepayment required to be collected during the period from July 1, 1986,
through March 31, 1987, shall be four cents (50.04) per gallon of motor vehicle fuel distributed or
transferred.
(f) On April 1 of each succeeding year, the rate per gallon, rounded to the nearest one-half of
one cent, of the required prepayment shall be established by the board based upon 80 percent of the
combined state and local sales tax rate established by Sections 6051, 6051.2, 6051.3, 6052. and 7202 on
the arithmetic average selling price (excluding sales tax) as determined by the State Energy Resources
Conservation and Development Commission, in its latest publication of the "Quarterly Oil Report," of all
grades of gasoline sold through a self-service gasoline station. The board shall make its determination
of the rate no later than November 1 of the year prior to the effective date of the new rate. Immediately
upon making its determination and setting of the rate, the board shall each year, no later than January 1,
notify by mail every distributor, broker, and retailer of motor vehicle fuel. In the event the price of
fuel decreases or increases, and the established rate results in prepayments which consistently exceed or
are significantly lower than the retailers, sales tax liability, the board may readjust the rate.
(g) The Legislature may amend subdivisions (a) through (f) of this section by statute passed in
each house of the Legislature by roll call vote entered in the iournal two thirds of the membership
concurring, if the statute is not inconsistent with the act as defined in Sections 99399 of the Public
Utilities Code, and the purposes of the act as defined in Section 99399 10 of the Public Utilities Code
SECTION 23. Section 7102 of the Revenue and Taxation Code is amended to read:
7102. The money in the fund shall, upon order of the Controller, be drawn therefrom for refunds under this
part, and pursuant to Section 1793.25 of the Civil Code, or be transferred in the following manner:
(a)(1) All revenues, less refunds, derived under this part at the 4 3/4-percent rate, including
the imposition of sales and use taxes with respect to the sale, storage, use, or other consumption of
motor vehicle fuel which would not have been received if the sales and use tax rate had been 5 percent and
if motor vehicle fuel, as defined for purposes of the Motor Vehicle Fuel License Tax Law (Part 2
(commencing with Section 7301)), had been exempt from sales and use taxes, shall be estimated by the State
Board of Equalization, , and shall be transferred
qua"rterly to the Transportation Planning and Development Account, a trust fund in the State Transportation
Fund. The transfer shall occur on a quarterly basis regardless of estimates for future quarters
(2) All revenues, less refunds, derived under this part at the 4 3/4-percent rate, resulting from
increasing after December 31, 1989, the rate of tax imposed pursuant to the Motor Vehicle Fuel License Tax
Law on motor vehicle fuel, as defined for purposes of that law, shall be transferred quarterly to the
Transportation Planning and Development Account, a trust fund in the State Transportation Fund.
(3) All revenues, less refunds, derived under this part at the 4 3/4-percent rate from the
imposition of sales and use taxes on fuel, as defined for purposes of the Use Fuel Tax Law (Part 3
(commencing with Section 8601)), shall be estimated by the State Board of Equalization, W ththe
and shall be transferred quarterly to the Transportation
Planning and Development Account, a trust fund in the State Transportation Fund.
(4) AIL Fevenwes, 1eGS PefWRd6, depi,.,ed wRiaer %hir, pap; from a rate of more thaR 4 3,14 perGeAt
PUPSWaRt tQ SeGtiGAS 40511 and 4203.3 fop the pep$ed DeGembep 3, 489, tg juRe 5, 4090, iRG!wsive, shaw
All revenues,
less refunds, derived under this part at the 4 3/4-percent rate resulting from any increase after January
1, 1993 in the rate of any tax imposed by the United States on motor vehicle fuel as that term is defined
in Section 7304, shall be transferred quarterly to the Transportation Planning and Development Account a
trust fund in the State Transportation Fund.
(5) All revenues, less refunds, derived under this part from a rate of more than 4 3/4 percent
pursuant to Sections 6051.1 and 6201.1 for the period June 6, 1990, to December 31, 1990, inclusive, which
is attributable to the imposition of sales and use taxes with respect to the sale, storage, use, or other
consumption of tangible personal property other than fuel, as defined for purposes of the Use Fuel Tax Law
(Part 3 (commencing with Section 8601)), shall be transferred to the Disaster Relief Fund created by
Section 16419 of the Government Code.
(6) ALL revenues, less refunds, derived under this part from a rate of more than 4 3/4 percent
pursuant to Sections 6051.1 and 6201.1 for the period June 6, 1990, to December..31, 1990, inclusive, which
is attributable to the imposition of sales and use taxes with respect to the sale, storage, use, or other
consumption of fuel, as defined for purposes of the Use Fuel Tax Law (Part 3 (commencing with Section
8601)), shall be transferred to the Disaster Relief Fund created by Section 16419 of the Government Code.
(7) All revenues, less refunds, derived under this part from the taxes imposed pursuant to
Sections 6051.2 and 6201.2 shall be transferred to the Sales Tax Account of the Local Revenue Fund for
allocation to cities and counties as prescribed by statute.
(8) All revenues, less refunds, derived under this part from the taxes imposed pursuant to
Sections 6051.6 and 6201.6 shall be transferred to the interim Public Safety Account in the Local Public
Safety Fund created in Section 30051 of the Government Code for allocation to counties as prescribed by
statute.
(9) All revenues, less refunds, derived from the taxes imposed pursuant to Section 35 of Article
XIII of the California Constitution shall be transferred to the Public Safety Account in the Local Public
Safety Fund created in Section 30051 of the Government Code for allocation to counties as prescribed by
statute.
(10) AA aMGWRt equal to a!& FeveRues, tess Pefunds, deFi%sed w-Rder this part a; a 4 3�4 per GeAt
Pat@ foF the peFied betW9eA lanwary 1. 1994, aAd july 1, 1994, from the increare in saAes and- use tax
4993, and the ra-te, in effeG4 9R JMAWar), 1, 1994, shaW, be estimiate"
15
(b) The balance shall be transferred to the General Fund.
(c) The estimates required by subdivision (a) shall be based on taxable transactions occurring
during a calendar year, and the transfers required by subdivision (a) shall be made during the fiscal year
that commences during that same calendar year. Transfers required by paragraphs (1), (2), awd (3), and
of subdivision (a) shalt be made quarterly.
(d) The Legislature may amend paragraphs (5), (6). (7), (8), and (9) of subdivision (a), and
subdivisions (b) and (c) of this section, by statute passed in each house of the Legislature by rollcall
vote entered in the journal, two-thirds of the membership concurring, if the statute is consistent with-r
and hens not in conflict with and does not reduce funding for the
Transportation Planning and Development Account and the act as defined in Section 99399 of the Public
Utilities Code.
(e) (1) The purpose of paragraphs (1). (2), (3), and (4) of subdivision (a) is to guarantee and
require the transfer of the specified sales and use tax revenues to the Transportation Planning and
Development Account to be used as required by Section 99310.5 of the Public Utilities Code. No statute
may redirect the specified revenues or estimated revenues, whether from the tax revenue itself or from the
Retail Sales Tax Fund. Any such statute shall be void and without effect.
(2) If a statute transfers any revenues identified in paragraphs (1), (2), (3), or (4) of
subdivision (a) from the tax revenue itself or from the Retail Sales Tax Fund to any other account, fund,
or other depository than the Transportation Planning Development Account, directly or indirectly, within
ninety days of the effective date of the statute the Controller shall transfer an amount equivalent to the
amount of the transfer from the General Fund to the Retail Sates Tax Fund, and that amount shall be
transferred to the Transportation Planning and Development Account as required by this section. There is
hereby appropriated from the General Fund an amount necessary to make any transfer required by this
subdivision.
SECTION 24. Section 7103 is added to the Revenue and Taxation Code, to read:
7103. (a) Notwithstanding Section 7102, or any other provision of law, and except as provided in
subdivisions (b) through (i), inclusive, money in the Retail Sates Tax Fund derived from the additional
tax imposed by Section 6052 and Section 6201.8 on motor vehicle fuel, less refunds, after allocating to
the Board for reimbursement of all the costs incurred in connection with collection of those taxes, shall
be transferred quarterly to the Transportation Planning and Development Account, a trust fund in the State
Transportation Fund. Notwithstanding Section 99310.8 of the Public Utilities Code, the revenues
transferred to the Transportation Planning and Development Account shall be deposited in the Clean Air,
Jobs, and Transportation Efficiency Act Subaccount of that account pursuant to Section 99310.6 of the
Public Utilities Code. The revenues identified for transfer in subdivisions (b) through (i) shall be
transferred as specified in those subdivisions.
(b) One percent of revenues received each quarter shall be transferred quarterly to the State
Highway Account for fog-related.safety and other projects, for expenditure as provided in Section 195 of
the Streets and Highways Code.
(c) Until January 1, 2000, fifteen percent of revenues received each quarter shall be transferred
quarterly to the Seismic Safety Retrofit Account established pursuant to Article 4.8 (commencing with
Section 179) of Division 1 of the Streets and Highways Code, to fund seismic upgrades on state highway
bridges and publicly owned local bridges, including publicly owned toll bridges and rail bridges. These
funds shall be in addition to funds programmed for seismic upgrade purposes in the State Highway Operation
and Protection Program and any funds programmed for this purpose from toll bridge accounts and subaccounts
established by the Streets and Highways Code on or before January 1, 1994. These funds may not be used to
expand the traffic carrying capacity of the bridges. Transfers pursuant to this subdivision shall cease
effective January 1, 2000. Notwithstanding any other provision of law, funds transferred into the Seismic
Safety Retrofit Account pursuant to this subdivision are continuously appropriated to the Department of
Transportation without regard to fiscal year.
(d) Two percent of revenues received each quarter shall be transferred quarterly to the Bicycle
and Pedestrian Facilities Account, for expenditure as provided by Section 894.5 of the Streets and
Highways Code.
(e) Until January 1, 2010, two percent of revenues received each quarter shall be transferred
quarterly to the State Energy Conservation Assistance Account created pursuant to Section 25416 of the
Public Resources Code, for expenditure by the Energy Commission for electric, hybrid-electric, and clean
fuel vehicle research, development, demonstration, and commercialization, and to assist in the purchase of
these vehicles by public agencies, for expenditure as provided by Section 25619 of the Public Resources
Code. Transfers pursuant to this subdivision shall cease effective January 1, 2010.
(f) Two percent of revenues received each quarter shall be transferred quarterly to the State
Highway Account, for traffic signal synchronization, and traffic signal preemption devices for exclusive
public mass transit guideway vehicles and emergency vehicles for expenditure as provided by Section 196 of
the Streets and Highways Code. After January 1, 2010, -the commission may, at its discretion, reduce the
percentage of revenue allocated to this purpose in any year if it finds that there is a reduced need for
expenditures for these programs.
(g) One percent of revenues received each quarter shall be transferred quarterly to the State
Highway Account, for commuter carpool information systems and transit planning and development purposes,
for expenditure as provided by Section 197 of the Streets and Highways Code.
(h) Two percent of revenues received each quarter shall be transferred quarterly to the
Transportation and Environmental Improvement Program Fund for expenditure pursuant to Section 164.561 of
the Streets and Highways Code. This transfer of funds is in addition to and shall not substitute for any
16
funds authorized to be expended from the Environmental Enhancement and Mitigation Demonstration Program
Fund pursuant to subdivision (a) of Section 164.56 of the Streets and Highways Code.
(i) Two percent of revenues received each quarter shall be transferred quarterly to the State
Highway Account, to be made available for highway-railroad grade separations, as provided in Section 191.1
of the Streets and Highways Code.
(1) (1) The purpose of this section is to guarantee and require the transfer of the specified
sales and use tax revenues to the Transportation Planning and Development Account and to the accounts
specified in subdivisions (b) through (i), inclusive. No statute may redirect the specified revenues or
estimated revenues,'whether from the tax revenue itself or from the Retail Sales Tax Fund. Any such
statute shall be void and without effect.
(2) If a statute transfers any revenues identified in this section from the tax revenue
itself or from the Retail Sales Tax Fund to any other account, fund, or other depository, directly or
indirectly, within ninety days of the effective date of the statute the Controller shall transfer an
amount equivalent to the amount of the transfer from the General Fund to the Retail Sales Tax Fund, and
this amount shall be transferred to the Transportation Planning and Development Account pursuant to this
section. There is hereby appropriated from the General Fund an amount necessary to make any transfer
required by this subdivision.
SECTION 25. Section 164.561 is added to the Streets and Highways Code to read:
164.561. (a) Funds transferred to the Transportation and Environmental Improvement Program Fund pursuant
to subdivision (h) of Section 7103 of the Revenue and Taxation Code shall be deposited into the
Transportation and Environmental Improvement Program Fund which is hereby created as a trust fund, and
shall be continuously appropriated, notwithstanding Section 13340 of the Government Code, to the Resources
Agency, without regard to fiscal year, for the purposes provided in this section.
(b) Local, state, and federal agencies and nonprofit organizations may apply for and receive
grants, not to exceed five million dollars ($5,000,000) for any single grant, to undertake environmental
enhancement and mitigation projects which are directly or indirectly related to the environmental impact
of.the following: existing transportation facilities, modification of existing transportation facilities,
or construction and operation of new transportation facilities.
(c) The following projects are eligible for funding:
(1) Urban forestry projects to offset vehicular emissions of carbon dioxide and urban
forestry projects along urban rail transit corridors.
(2) Acquisition, restoration, and enhancement of resource lands to mitigate the loss
of, or the detriment to, resource lands from existing or proposed transportation improvements. Projects
funded pursuant to this paragraph may also include the acquisition and preservation of lands
containing significant archaeological resources to mitigate the loss of, or detriment to, archaeological
resources from existing and proposed transportation projects.
(3) Acquisition, restoration, and enhancement of wetlands and riparian habitat, or any
combination thereof, to mitigate the impacts of, or detriment from, runoff from roads.
(4) Trails, including paved bicycle paths, which provide exclusive use for bicycles or
pedestrians, or both; and trailhead projects.
(5) Acquisition of land for parks.
(6) The purchase of permanent conservation easements from willing sellers on prime
agricultural lands, and for the mapping of those lands, to mitigate the loss of, or detriment to,
agricultural lands lying within or near the right-of-way acquired for existing or proposed transportation
improvements. For purposes of this paragraph, "prime agricultural lands" has the same meaning as
provided in subdivision (c) of Section 51201 of the Government Code. No more than 15% of the funds
transferred in any particular year to the Transportation and Environmental Improvement Program Fund may be
used for this purpose.
(d) Grant proposals shall be submitted to the Resources Agency for evaluation in accordance
with procedures and criteria prescribed by the Resources Agency. The Resources Agency shall evaluate
proposals submitted to it and prepare a list of proposals for funding which the Resources Agency may
revise at any time. Prior to including a proposal on the list, the Resources Agency shall make a finding
that the proposal is eligible for funding pursuant to this section. Unless otherwise prohibited by law,
grants may include prepayments and advance payments to the grantees for the purpose of implementing
projects funded pursuant to this section.
(e) Within the fiscal limitations of this section and subdivision (h) of Section 7103 of the
Revenue and Taxation Code, the Resources Agency shall annually award grants to fund proposals which are
included on the list prepared pursuant to subdivision (d).
(f) No funds authorized pursuant to this section shall be allocated to the Department of
Transportation for its own projects or for highway landscaping or roadside rest projects. No funds
authorized pursuant to this section shalt be allocated to pay for any environmental mitigation or other
mitigation or enhancement costs that would otherwise be required by any laws effective on the date of this
enactment or thereafter including, but not limited to, requirements established under the California
Environmental Quality Act (Division 13, commencing with Section 21000 of the Public Resources Code).
(g) Permanent acquisitions of wildlife habitat by any public agency pursuant to this section
may be considered to be an expenditure from the Habitat Conservation Fund created by Section 2786 of the
Fish and Game Code if the agency receiving the funds makes a finding that each and every expenditure is
identical in purpose to at least one of those required by Section 2786 of the Fish and Game Code.
(h) For purposes of this Section, "nonprofit organization" means any nonprofit organization
qualified pursuant to Section 501(c)(3) and 501(c)(4) of the Internal Revenue Code.
(i) The Legislature may amend subdivisions (b) through (h) of this section, by statute passed in
each house of the Legislature by roll call vote entered in the journal, four-fifths of the membership
concurring, if the statute is consistent with and furthers the purposes of this section and this act, as
17
defined by Section 99399 of the Public Utilities Code.
SECTION 26. Section 191.1 is added to the Streets and Highways Code, to read:
191.1. (a) Notwithstanding Section 13340 of the Government Code, funds available pursuant to subdivision
(i) of Section 7103 of the Revenue and Taxation Code and subdivision (a) of Section 99393 of the Public
Utilities Code shall be continuously appropriated to the commission, without regard to fiscal year, for
allocation to cities and counties for grade separation projects as defined in subdivision (a) of Section
2450 of the Streets and Highways Code.
(b) The funds allocated pursuant to subdivision (a) shall be allocated exclusively for projects on
mainline railroad lines with at least four daily passenger trains, where the basic maximum passenger train
speed limit is at least 70 miles per hour. The maximum amount of funding to be allocated to any one
project from this source shall not exceed five million dollars ($5,000,000), increasing at the rate of the
consumer price index. Each project shall be subject to the matching requirements of Section 190.
Preference shall be given to grade separation projects in counties with populations of less than 200,000,
and to the least expensive projects.
(c) Subject to the restrictions in subdivision (b), the commission shall follow the priorities in
the grade separation priority list developed by the Public Utilities Commission, pursuant to Section 2452.
(d) In addition to the funds allocated pursuant to this section, a minimum of fifteen million
dollars ($15,000,000) shall continue to be made available annually from the State Highway Account for
allocation to grade separations pursuant to Section 190.
(e) The Legislature may amend subdivisions (b) and (c) of this section, by statute passed in each
house of the Legislature by roll call vote entered in the journal, four-fifths of the membership
concurring, if the statute is consistent with and furthers the purposes of this act, as defined by Section
99399 of the Public Utilities Code.
SECTION 27. Section 195 is added to the Streets and Highways Code, to read:
195. (a) Funds transferred to the State Highway Account pursuant to subdivision (b) of Section 7103 of
the Revenue and Taxation Code shall be continuously appropriated, notwithstanding Section 13340 of the
Government Code, to the commission without regard to fiscal year for projects on state highways and local
roads that improve safety during fog conditions, including but not limited to changeable message signs,
limited range radio frequencies, and advance warning devices for highway/railroad crossings. Funds shall
be allocated to projects that have the greatest likelihood of saving lives, and shall be in addition to
existing levels of expenditures for these types of projects. The commission shall allocate these funds to
the department and other transportation agencies, with highest priority going to projects in counties with
a population of less than 100,000 people.
(b) In any year if the commission finds that all the funds allocated by subdivision (b) of Section
7103 of the Revenue and Taxation Code are not needed for projects authorized in subdivision (a), the
unneeded funds may be allocated to projects authorized by Section 164.561, 191.1, and 894.5 within
counties with a population of less than 100,000 people.
(c) The Legislature may amend subdivisions (a) and (b) of this section, by statute passed in each
house of the Legislature by roll call vote entered in the journal, four-fifths of the membership
concurring, if the statute is consistent with and furthers the purposes of this section and this act, as
defined in Section 99399 of the Public Utilities Code.
SECTION 28. Section 196 is added to the Streets and Highways Code, to read:
196. (a) Funds transferred to the State Highway Account pursuant to subdivision (f) of Section 7103 of
the Revenue and Taxation Code shall be continuously appropriated, notwithstanding Section 13340 of the
Government Code, and without regard to fiscal year, to the commission.
(b) The funds transferred pursuant to subdivision (a) shall be allocated to public agencies to
fund traffic signal synchronization, and traffic signal preemption devices for both exclusive public mass
transit guideway vehicles and emergency vehicles. Signal preemption devices shall receive high priority
for funding.
(c) The commission shall adopt the initial guidelines to fund this program within 180 days of the
enactment of this section. The guidelines shall require that synchronization projects shall not have an
adverse impact on the operation of public transportation systems.
(d) The Legislature may amend subdivisions (b) and (c) of this section, by statute passed in each
house of the Legislature by roll call vote entered in the journal, four-fifths of the membership
concurring, if the statute is consistent with and furthers the purposes of this section and this act, as
defined in Section 99399 of the Public Utilities Code.
SECTION 29. Section 197 is added to the Streets and Highways Code, to read:
197. (a) Funds transferred to the State Highway Account pursuant to subdivision (g) of Section 7103 of
the Revenue and Taxation Code shall be continuously appropriated without regard to fiscal year,
notwithstanding Section 13340 of the Government Code, to the commission.
(b) The funds transferred pursuant to subdivision (a) shall be allocated to public agencies and
nonprofit corporations in regions of the state that have not attained state or federal air quality
standards or which have significant traffic congestion, to provide ridesharing services, including
computer matching of carpool and vanpool rides and riders, and to develop and plan better public transit
routes and systems.
(c) The commission shall adopt the initial guidelines to fund this program within 180 days of the
enactment of this section.
18
(d) The Legislature may amend subdivisions (b) and (c) of this section, by statute passed in each
house of the Legislature by roll call vote entered in the journal, four-fifths of the membership
concurring, if the statute is consistent with and furthers the purposes of this section and this act, as
defined in Section 99399 of the Public Utilities Code.
SECTION 30. Section 199.12 is added to the Streets and Highways Code:
199.12. The amount of funds available each fiscal year from the State Highway Account for the Article XIX
guideways component of the transit capital improvements program pursuant to Section 199 and Section 99317
of the Public Utilities Code shall be maintained at least at historical levels, consistent with Section
199.11. "Historical levels" means an amount equal to the ratio of state funds in the State Highway
Account actually appropriated to the guideway program by the State Budget Act of 1989 compared to the
total amount of state funds appropriated from the State Highway Account by that budget act for all
transportation capital outlay, multiplied by the total amount of state funds in the State Highway Account
available for all transportation capital outlay in each future budget year. Notwithstanding Section 13340
of the Government Code, funds for these guideway purposes shall be continuously appropriated at historical
level% to the committee, without regard to fiscal year, for allocation through the transit capital
improvements program. At least fifteen (15) percent of guideway funds shall be allocated to intercity
.rail projects.
SECTION 31. Section 199.13 is added to the Streets and Highways Code to read:
199.13. (a) Except as provided in subdivision (b), and otherwise required by this act, as defined in
Section 99399 of the Public Utilities Code, no funds shall be permanently transferred from the State
Highway Account to any other account, fund, or other depository. The intent of this gection is to provide
funds for transportation purposes consistent with Article XIX of the California Constitution. Except as
provided in Sections 16310 and 16381 of the Government Code, loans from state motor vehicle fuel taxes in
the State Highway Account to the General Fund consistent with Article XIX, Section 6 of the California
Constitution shall be limited in duration to a term of two years, and shall be repaid with interest from
the General Fund at the Pooled Money Investment Account rate. No other loans of these fuel taxes shall be
made.
(b) Funds may be transferred from the State Highway Account to the Transportation Planning and
Development Account for support of the California Transportation Commission and the Intercity Rail
Commission, and to provide reimbursements for transportation planning activities and support of
transportation research activities. Any reduction in transfers from one year to the next shall be
accompanied by an equivalent reduction in the directly associated expenditures from the Transportation
Planning and Development Account. Funds may also be transferred from the State Highway Account to the
Environmental Enhancement and Mitigation Demonstration Program Fund, the Seismic Safety Retrofit Account,
and other accounts and funds for purposes substantially similar to purposes for which the State Highway
Account is authorized as-of the effective date of this section.
(c) All interest, fee income (except tolls), rental or lease income, or other income earned by the
state from the funds in the State Highway Account, or from transportation facilities paid for in part or
entirely by the State Highway Account, directly or indirectly, shall remain or be deposited in the State
Highway Account. This subdivision shall not apply to income produced by property acquired and developed
by local agencies or joint powers authorities pursuant to grants made by the state, or to income from
property purchased pursuant to Section 164.56.
(d) Except as provided in subdivisions (a) and (b), in the event a statute transfers any funds
from the State Highway Account to any other account, fund, or other depository, directly or indirectly,
within ninety days of the effective date of the statute the Controller shall transfer an amount equivalent
to the amount of the transfer from the General Fund to the State Highway Account. If a loan pursuant to
subdivision (a) to the General Fund is not repaid with interest, the Controller shall transfer the
necessary amount of funds to repay the loan with interest from the General Fund to the State Highway
Account within six months of the end of the maximum two year loan term. There is hereby appropriated from
the General Fund an amount necessary to make any-transfer required by this subdivision.
SECTION 32. Section 199.14 is added to the Streets and Highway Code to read:
199.14. (a) Except as provided by Section 5 of Article XIX of the Constitution, and Section 199.13, no
funds in the State Highway Account shall be used for debt service for general obligation bonds issued for
transportation purposes pursuant to Chapter 17 (commencing with Section 2701), or Chapter 19 (commencing
with Section 2703) of Division 3, or bonds issued pursuant to Chapter 6 (commencing with Section 99690) of
Part 11.5 of the Public Utilities Code, or for any future general obligation bonds that the state may
authorize and issue.
(b) All loans that were made from the State Highway Account in order to pay transportation bond
debt service pursuant to the relevant provisions of the Budget Act of 1992, the Budget Act of 1993, and
any other budget acts shall be repaid, with interest at the pooled money investment rate applicable to the
period during which the loans were outstanding, on or before June 1, 1997, with funds other than funds in
the State Highway Account or other funds dedicated to transportation purposes. If these loans have not
been repaid in full by that date, the Controller shall transfer 50 percent of the amount due, including
interest, on June 30, 1997, from the General Fund to the State Highway Account, and shall transfer the
remainder, including interest, from the General Fund to the State Highway Account on or before June 1,
1998. There is hereby appropriated from the General Fund an amount necessary to make any transfer
required by this subdivision. The loans that were made pursuant to the relevant provisions of the budget
acts described in this subdivision shall be considered to be loans until repaid, notwithstanding any other
provision of law.
19
SECTION 33. Section 894.5 is added to the Streets and Highways Code, to read:
894.5. (a) The Bicycle and Pedestrian Facilities Account is hereby created in the State Transportation
Fund. Notwithstanding Section 13340 of the Government Code, the money in the Bicycle and Pedestrian
Facilities Account is continuously appropriated to the department without regard to fiscal year for the
puirposes of this section. The commission shall establish a program administered by the department for
allocating the funds in the Bicycle and Pedestrian Facilities Account made available by subdivision (d) of
Section 7103 of the Revenue and Taxation Code. These funds shall be allocated by the Commission to
cities, counties, and other public agencies for bicycle, sidewalk, and rural walkway projects which
primarily benefit nonmotorized facilities for bicycles and pedestrians, as provided in this section. At
least three quarters of the funds in the Bicycle and Pedestrian Facilities Account shall be allocated to
bicycle projects. Of the remaining funds, rural walkway projects shall be given highest priority.
(b) A bicycle project shall be eligible for funding only if it primarily benefits bicycle
commuters, rather than recreational users.
(c) A sidewalk project shall be eligible for funding only if it is in an existing urban area, with
the highest priority given to projects which complete gaps in existing sidewalks with significant
pedestrian traffic. : Repair of an existing sidewalk is not eligible for an allocation.
(d) A rural walkway project shall be eligible for funding only if it is along a road which is
heavily used by pedestrian or bicycling children on a suggested route to school, or if the project is in
support of public transit use and is within one quarter mile of transit stops in rural areas.
(e) To the greatest extent practicable, the department shall use the same guidelines to
administer this section that were adopted by the commission for administration of bicycle funds made
available by Section 99650 of the Public Utilities Code. The initial version of any required changes to
those guidelines shall be adopted within 180 days of the enactment of this section.
(f) To the greatest extent practicable, the department shall use the same guidelines to
administer this section that were adopted by the commission for administration of rural walkway funds made
available by Section 99628 of the Public Utilities Code.
(g) Annual funding for bicycle purposes pursuant to subdivision (b) of Section 2106 shall not be
reduced below funding levels actually made available in fiscal year 1993-94.
(h) The Legislature may amend subdivisions (b) through (f) of this section by statute passed in
each house of the Legislature by roll call vote entered in the journal, four-fifths. of the membership
concurring, if the statute is consistent with and furthers the purposes of this act, as defined in Section
99399 of the Public Utilities Code.
20
The Board of Supervisors Contra CefrkfofthehBoard
and
County Administration Building �OtCounty Administrator
Costa 651 Pine St., Room 106 (510)646-2371
Martinez, California 94553 County
Tom Powers,1st District
Jeff Smith.2nd District
+ 4.
Gayle Bishop,3rd District
Sunne Wright McPeak 4th District
•r
Tom Tortakson,5th District
December 14, 1993
Mr. James Knox
Planning & Conservation League
926 J Street, Suite 612
Sacramento, CA 95814
Dear Mr. Knox:
I am writing on behalf of the Contra Costa County Board of Supervisors in response to the Planning &
Conservation League's proposed 1994 statewide transportation funding initiative.
The Board of Supervisors is pleased to see that once again PCL has taken the leadership role in trying to
correct deficiencies in how the state funds public transportation projects and programs. The Board recognizes
that the PCL's past success with Proposition 116, its support of Proposition 111 and 108 in 1990 and that
your organization was one of few statewide groups which actively campaigned on behalf of the failed
Proposition 156 in 1992. The PCL's sponsorship of a statewide transportation funding initiative in 1994 is
certain to again provide an important platform to debate transportation finance issues facing us both
regionally and statewide.
The Board of Supervisors has reviewed the title and text for the proposed 1994 initiative and we would like
to take this opportunity to raise four principal concerns:
1. No Fundingfor Highway Completion Projects
The ballot initiative does not address the need to provide counties with a stable funding source to
complete key links in our state designated highway network. As an example, Highway 4 is a vital
east-west connector traversing the county from Interstate 80 in the west to the Contra Costa - San
Joaquin county line in the east, but most of this state highway is woefully substandard in either its
traffic carrying capacity or design safety. Our local countywide sales tax provides some level of
funding but it is not enough to bring this highway facility up to acceptable standards. In the past we
could count on the state to assume its rightful responsibility to complete this highway. Even though
California has made the historic shift away from a highway building program, we need continued
state funding assistance dedicated to counties for the purpose of completing existing state highway
Letter to J. Knox Date: December 14, 1993
PCL Initiative
facilities (particularly to improve safety and reduce existing traffic congestion). We are disappointed
that the PCL transportation funding initiative has not addressed this need. The transportation funding
shortfall applies to all modes and regions, but the PCL initiative focuses primarily on rail and public
transit modes. California requires a balanced approach to solving transportation problems.
2. STIP Shortfall Not Addressed
The California Transportation Commission has identified an existing $3.3 billion shortfall in the State
Transportation Improvement Program and projects that the State Highway Account will be depleted
by the beginning of 1995. The PCL initiative does not fully address this chronic problem and an
opportunity may be lost to correct deficiencies in the way the state finances improvements for the
entire transportation system.
3. Potential To Preempt Local and Regional Transportation Decision-Making Process
The initiative establishes a series of railpriorities for the Bay Area without the benefit of local or
regional planning. More local consultation is required before codifying these priorities. The initiative
appears to transfer responsibility for allocating new transportation revenue away from Congestion
Management Agencies and the MTC (local and regional bodies of elected officials) to a new three
member rail subcommittee of the California Transportation Commission (a state body of non-elected
officials). What happens if the rail subcommittee has no Bay Area representation? There's only one
Bay Area representative on the CTC today! This has the real potential to significantly preempt local
or regional decision-making.
4. Funds Earmarked for Rail Projects of "Statewide Significance"
The PCL initiative sets aside a significant amount of funds for rail projects considered to be of
"statewide significance" regardless of whether they have been included in the State Transportation
Improvement Program or recommendations from the forthcoming California Transportation Plan.
This action circumvents the established transportation planning process. As an example, the initiative
earmarks $500 million to establish a "fast train" rail corridor along the coast between the San
Francisco Bay Area and Los Angeles. Language in the initiative also sets a rather generous ceiling
of $200 million for acquisition of the coast route rail corridor right-of-way prior to initiating
negotiations. We are not aware of any studies which have identified this corridor as a statewide
priority and implementation of this project would likely pre-determine decisions regarding the
proposed high speed rail project. We also fail to see why the $350 million for the Alameda rail
freight corridor in Southern California is of "statewide significance". The state's Transportation
Blueprint approved by the voters in 1990 clearly established statewide rail priorities which have been
translated into both state and regional plans. Why is the PCL proposing to earmark funds for rail
projects which are not yet contained in state or regional plans, particularly if full funding for projects
previously listed in the 1990 ballot measure is uncertain given the failure of Proposition 156 in 1992?
Shouldn't we fulfill previous voter mandates before assuming new funding burdens?
Letter to J. Knox Date: December 14, 1993
PCL Initiative
We do note that many features in the initiative are very beneficial. First, a sales tax on fuel provides a more
stable funding source than the current gasoline tax because it is set according to gas prices, not gallonage.
Second, there would be a significant increase in transit operating funds for Bay Area transit agencies. Third,
it prohibits the legislative practice of transfering funds from the State Highway Account as a way to balance
the state budget. Fourth, it provides a statewide strategy for seismic improvements to the Bay Area bridges,
and fifth, it introduces the concept of tying state funds to projects that promote improved connections to
other transportation modes, increasing passenger convenience and complementing existing transportation
investments.
The Contra Costa County Board of Supervisors will not take a position on the PCL initiative unless it
qualifies for the November, 1994 ballot. However, we have directed County staff to work with the our
legislative advocate (D.J. Smith & Assoc.), staff from the Contra Costa Transportation Authority and
Metropolitan Transportation Commission, and members of our state legislative delegation to advance the
following principles in any future state action concerning statewide transportation funding:
- State transportation funds should promote a balanced transportation system (public transit and
highways), this includes completion of all state highway facilities;
- A long-term funding strategy should address the chronic shortfalls in the State Transportation
Improvement Program (STIP) and the State Highway Account;
- Local or regional transportation decision-making should never be preempted by a state body
without good cause or consultation;
- Funds should not be earmarked for any new rail project until it can be supported by state and
regional planning efforts;
- New funding for transit operators must be tied to efforts to improve efficiency and
coordination of service with other transit service providers, and to complement existing
transportation investments.
Although we may have disagreement over the specifics contained in the PCL initiative, we share many
common interests and would like to continue working with your organization in pursuit of one common goal:
improve the way in which this state finance's its transportation system.
I-!
Sincerely yours,
Supervisor Tom Torlakson,
Chair, Board of Supervisors
cc: CCTA
MTC
State Legislative Delegation