Trade Corridors Improvement Fund - - CA Streets And Highways

Section § 2192

This section lays out how certain revenues, including state and federal funds, should be allocated for infrastructure projects that improve California's trade corridors and freight movement. The California Transportation Commission is responsible for distributing these funds to projects that boost the efficiency and capacity of highways, rail systems, and ports while reducing emissions and addressing community impacts, particularly in disadvantaged areas. Projects considered should be included in regional transportation plans and contribute to reducing congestion and environmental impact along major freight routes.

The law specifies that eligible projects can include highway and freight rail improvements, port capacity enhancements (excluding fully automated equipment), truck and border access improvements, and the implementation of advanced technology for better freight management. Funds should also address environmental mitigation efforts and support communities affected by freight activities.

In terms of funding allocation, the law mandates that 60% of funds go to projects nominated by regional and local agencies, while 40% is for projects proposed by the state department. The commission must adopt guidelines ensuring a transparent project evaluation process and prioritize projects that provide both economic and environmental benefits, especially in low-income communities. Additionally, the initial program of funded projects should be in place by May 17, 2018.

(a) The following revenues shall be allocated for infrastructure projects pursuant to this section:

(1) The revenues deposited in the Trade Corridors Enhancement Account pursuant to Section 2192.4, except for those revenues in the account that were appropriated by Senate Bill 132 of the 2017–18 Regular Session (Chapter 7 of the Statutes of 2017).

(2) An amount of federal funds equal to the amount of revenue apportioned to the state under Section 167 of Title 23 of the United States Code from the national highway freight programs, pursuant to the federal Fixing America’s Surface Transportation Act (“FAST Act,” Public Law 114-94).

(b) The funding described in subdivision (a) shall be available upon appropriation for allocation by the California Transportation Commission for infrastructure improvements in this state on federally designated Trade Corridors of National and Regional Significance, on the Primary Freight Network, and along other corridors that have a high volume of freight movement, as determined by the commission and as identified in the state freight plan developed pursuant to Section 13978.8 of the Government Code. Projects eligible for funding shall be included in an adopted regional transportation plan. Projects within the boundaries of a metropolitan planning organization shall be included in an adopted regional transportation plan that includes a sustainable communities strategy determined by the State Air Resources Board to achieve the region’s greenhouse gas emissions reduction targets. In developing guidelines for implementing this section, the commission shall (1) apply the guiding principles, to the maximum extent practicable, in the California Sustainable Freight Action Plan released in July 2016 pursuant to Executive Order No. B-32-15, and (2) consult the state freight plan and the applicable port master plan.

(1) Highway improvements to more efficiently accommodate the movement of freight, particularly for ingress and egress to and from the state’s land ports of entry, rail terminals, and seaports, including navigable inland waterways used to transport freight between seaports, land ports of entry, and airports, and to relieve traffic congestion along major trade or goods movement corridors.

(2) Freight rail system improvements to enhance the ability to move goods from seaports, land ports of entry, and airports to warehousing and distribution centers throughout California, including projects that separate rail lines from highway or local road traffic, improve freight rail mobility, and other projects that improve the safety, efficiency, and capacity of the rail freight system.

(3) Projects to enhance the capacity and efficiency of ports, except that funds available under this section shall not be allocated to a project that includes the purchase of fully automated cargo handling equipment. For the purposes of this paragraph, “fully automated” means equipment that is remotely operated or remotely monitored, with or without the exercise of human intervention or control. Nothing in this paragraph shall prohibit the use of funds available pursuant to this section for a project that includes the purchase of human-operated zero-emission equipment, human-operated near-zero-emission equipment, and infrastructure supporting that human-operated equipment. Furthermore, nothing in this section shall prohibit the purchase of devices that support that human-operated equipment, including equipment to evaluate the utilization and environmental benefits of that human-operated equipment.

(4) Truck corridor improvements, including dedicated truck facilities or truck toll facilities, including the mitigation of the emissions from trucks or these facilities.

(5) Border access improvements that enhance goods movement between California and Mexico and that maximize the state’s ability to access funds made available to the state by federal law.

(6) Surface transportation, local road, and connector road improvements to effectively facilitate the movement of goods, particularly for ingress and egress to and from the state’s land ports of entry, airports, and seaports, to relieve traffic congestion along major trade or goods movement corridors.

(7) Projects that employ advanced and innovative technology to improve the flow of freight, such as intelligent transportation systems, public infrastructure, excluding vehicles, that enables zero-emission or near-zero emission goods movement, real time information systems, weigh-in-motion devices, electronic screening and credentialing systems, traffic signal optimization, work zone management and information systems, ramp metering, and electronic cargo and border security technologies.

(8) Environmental and community mitigation or efforts to reduce environmental impacts of freight movement, such as projects that reduce noise, overnight truck idling, or truck queues, and advanced traveler information systems such as freight advanced traveler information systems that optimize operations to reduce empty-load trips.

(d) Projects funded with revenues identified in paragraph (1) of subdivision (a) shall be consistent with Article XIX of the California Constitution.

(e)

(1) In adopting the program of projects to be funded with funds described in subdivision (a), the commission shall evaluate the total potential economic and noneconomic benefits of the program of projects to California’s economy, environment, and public health. The evaluation shall specifically assess localized impacts in disadvantaged communities. The commission shall consult with the agencies identified in Executive Order No. B-32-15 and metropolitan planning organizations in order to use the appropriate models, techniques, and methods to develop the parameters for evaluating the program of projects. The commission shall allocate the funding from subdivision (a) for trade infrastructure improvements as follows:

(A) Sixty percent of the funds shall be available for projects nominated by regional transportation agencies and other public agencies, including counties, cities, and port authorities, in consultation with the department. The commission shall provide reasonable geographic targets for funding allocations without constraining what an agency may propose or what the commission may approve.

(B) Forty percent of the funds shall be available for projects nominated by the department, in consultation with regional transportation agencies.

(2) In adopting a program of projects pursuant to paragraph (1), the commission shall prioritize projects jointly nominated and jointly funded by the state and local agencies. In considering geographic balance for the overall program, the commission may adjust the corridor-based targets in subparagraph (A) of paragraph (1) to account for projects programmed pursuant to subparagraph (B) of paragraph (1).

(f)

(1) The commission shall adopt guidelines, including a transparent process to evaluate projects and to allocate the funding described in subdivision (a) for trade infrastructure improvements in a manner that (A) addresses the state’s most urgent needs, (B) balances the demands of various land ports of entry, seaports, and airports, (C) places emphasis on projects that improve trade corridor mobility and safety while reducing emissions of diesel particulates, greenhouse gases, and other pollutants and reducing other negative community impacts, especially in disadvantaged communities, (D) makes a significant contribution to the state’s economy, (E) recognizes the key role of the state in project identification, (F) supports integrating statewide goods movement priorities in a corridor approach, and (G) includes disadvantaged communities measures, as established by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code, and other tools the commission determines, for evaluating benefits or costs for disadvantaged communities and low-income communities. Project nominations shall include either a quantitative or qualitative assessment of the benefits the project is expected to achieve relative to the evaluation criteria.

(2) The guidelines adopted pursuant to paragraph (1) may include streamlining of project delivery by authorizing regional transportation agencies and other public agencies to seek commission approval of a letter of no prejudice that allows the agency to expend its own funds for a project programmed in a future year of the adopted program of projects, in advance of allocation of funds to the project by the commission, and to be reimbursed at a later time for eligible expenditures. A letter of no prejudice shall only be available to local or regional transportation agencies for moneys that have been identified for future allocation to the applicant agency. Moneys designated for the program shall only be reimbursed when there is funding available in an amount sufficient to make the reimbursement.

(g) In addition, the commission shall also consider the following factors when allocating these funds:

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

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

(3) “Reliability,” which means a reasonably consistent and predictable amount of time for cargo to travel from one point to another on any given day or at any given time in California.

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

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

(1) “Disadvantaged communities” are those communities identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code.

(2) “Low-income communities” are census tracts with median household incomes at or below 80 percent of the statewide median income or with median household incomes at or below the threshold designated as low income by the Department of Housing and Community Development’s list of state income limits adopted pursuant to Section 50093 of the Health and Safety Code.

(i) It is the intent of the Legislature for the commission to adopt an initial program of projects using the state and federal funds described in subdivision (a) for eligible projects as soon as practicable and no later than May 17, 2018.

Trade Corridors Enhancement Account California Transportation Commission infrastructure improvements freight movement regional transportation plan greenhouse gas emissions reduction California Sustainable Freight Action Plan port capacity enhancement non-automated equipment truck corridor improvements border access improvements environmental mitigation advanced freight technology disadvantaged communities project evaluation process

(Amended by Stats. 2021, Ch. 769, Sec. 5. (SB 671) Effective January 1, 2022.)

Section § 2192.1

This law section explains that any money transferred from the Greenhouse Gas Reduction Fund to the Trade Corridors Improvement Fund must follow existing rules for spending from that fund. Specifically, projects must support the goals of the California Global Warming Solutions Act of 2006. This includes reducing state greenhouse gas emissions and investing in disadvantaged communities.

Projects must also align with guidelines from the State Air Resources Board. Additionally, how funds are allocated must match criteria and investment plans from related laws, ensuring the funds are used effectively for environmental and community benefits.

(a) To the extent moneys from the Greenhouse Gas Reduction Fund, attributable to the auction or sale of allowances as part of a market-based compliance mechanism relative to reduction of greenhouse gas emissions, are transferred to the Trade Corridors Improvement Fund, projects funded with those moneys shall be subject to all of the requirements of existing law applicable to the expenditure of moneys appropriated from the Greenhouse Gas Reduction Fund, including, but not limited to, both of the following:

(1) Projects shall further the regulatory purposes of the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code), including reducing emissions from greenhouse gases in the state, directing public and private investment toward disadvantaged communities, increasing the diversity of energy sources, or creating opportunities for businesses, public agencies, nonprofits, and other community institutions to participate in and benefit from statewide efforts to reduce emissions of greenhouse gases.

(2) Projects shall be consistent with the guidance developed by the State Air Resources Board pursuant to Section 39715 of the Health and Safety Code.

(b) All allocations of funds made by the commission pursuant to this section shall be made in a manner consistent with the criteria expressed in Section 39712 of the Health and Safety Code and with the investment plan developed by the Department of Finance pursuant to Section 39716 of the Health and Safety Code.

Greenhouse Gas Reduction Fund Trade Corridors Improvement Fund California Global Warming Solutions Act greenhouse gas emissions disadvantaged communities State Air Resources Board Section 39715 guidance Section 39712 criteria investment plan Department of Finance market-based compliance mechanism public and private investment energy diversity community benefit fund allocation criteria

(Added by Stats. 2014, Ch. 787, Sec. 2. (SB 1228) Effective January 1, 2015.)

Section § 2192.2

This law requires that the commission only allocate funds to projects if they have secured additional funding from local, federal, or private sources. The commission will evaluate each project individually to decide how much additional funding is needed for them to be eligible for state money. Projects with more committed extra funding might get funding priority.

The commission shall allocate funds made available by this chapter to projects that have identified and committed supplemental funding from appropriate local, federal, or private sources. The commission shall determine the appropriate amount of supplemental funding each project should have to be eligible for moneys from the fund based on a project-by-project review and an assessment of the project’s benefit to the state and the program. The commission may give priority for funding to projects with higher levels of committed supplemental funding.

fund allocation supplemental funding project eligibility state funding local funding federal funding private funding project review funding priority committed funding project assessment state benefit program benefit commission evaluation priority projects

(Amended by Stats. 2017, Ch. 95, Sec. 18. (SB 103) Effective July 21, 2017.)

Section § 2192.3

This law requires a commission to provide the Legislature with a yearly report that summarizes its activities related to a specific program. The report must include details about each funded project, such as the location, allocated funds, current status, and improvements in mobility and air quality.

The commission shall include in its annual report to the Legislature, required by Section 14535 of the Government Code, a summary of its activities related to the administration of this chapter. The summary shall, at a minimum, include a description and the location of the projects contained in the program funded by the fund, the amount of funds allocated to each project, the status of each project, and a description of the mobility and air quality improvements the program is achieving.

annual report Legislature project summary allocated funds project status mobility improvements air quality improvements program funding commission activities funded projects Section 14535 Government Code requirements location of projects program administration transportation improvements

(Added by Stats. 2014, Ch. 787, Sec. 2. (SB 1228) Effective January 1, 2015.)

Section § 2192.4

The Trade Corridor Enhancement Account is a special fund created to finance projects focused on improving freight corridors in California. It receives money from specific tax revenues and can only be used for approved freight projects proposed by local agencies and the state, once the Legislature approves the spending.

The Trade Corridor Enhancement Account is hereby created in the State Transportation Fund to receive funds from subdivision (b) of Section 60050 of the Revenue and Taxation Code, as adjusted. Funds in the account shall be available for expenditure upon appropriation by the Legislature for corridor-based freight projects nominated by local agencies and the state.

Trade Corridor Enhancement Account State Transportation Fund freight projects corridor-based projects local agencies fund appropriation state transportation funding Revenue and Taxation Code 60050 tax revenue for transportation transportation fund allocation Legislature-approved spending freight corridor improvements California transportation funding infrastructure projects transportation expenditure

(Added by Stats. 2017, Ch. 5, Sec. 42. (SB 1) Effective April 28, 2017.)