Section § 2196

Explanation

This law requires the Port of Los Angeles and the Port of Long Beach to evaluate changes in their goods movement network to ensure they meet specific state goals. They must collect data on their operations to assess compliance with federal, state, and local objectives. The goals include using port terminals and distribution centers during off-peak hours, which are from 6 p.m. to 3 a.m. on weekdays and all day on weekends. Additionally, they need to make and honor appointments at port terminals and make use of rail facilities.

The Port of Los Angeles and the Port of Long Beach shall evaluate changes to the goods movement network to gauge adherence by those ports to the state goals in subdivisions (i) and (j) of Section 1 of the statute enacting this chapter and shall collect statistics on the operation of the two ports regarding compliance with federal, state, and local efforts to achieve all of the following:
(a)CA Streets and Highways Code § 2196(a) Utilization of off-peak hours at port terminals. For the purposes of this section, “off-peak hours” means Monday through Friday between the hours of 6 p.m. and 3 a.m., and all day on Saturdays and Sundays.
(b)CA Streets and Highways Code § 2196(b) Utilization of distribution centers during off-peak hours.
(c)CA Streets and Highways Code § 2196(c) Utilization of rail facilities.
(d)CA Streets and Highways Code § 2196(d) Appointments made at port terminals during peak and off-peak hours through the appointment system as described in Chapter 1129 of the Statutes of 2002.
(e)CA Streets and Highways Code § 2196(e) Appointments honored at port terminals during peak and off-peak hours.

Section § 2196.1

Explanation

The Port of Los Angeles and the Port of Long Beach are required to give statistical data about imports and exports to certain state agencies and committees. This information was to be shared by January 31, 2006, and continue annually until 2008, as much as feasible.

The Port of Los Angeles and the Port of Long Beach, to the extent practicable, shall provide the statistical data on imports and exports obtained pursuant to Section 2196 to the Business, Transportation and Housing Agency, the Office of Goods Movement of the Department of Transportation, and the Assembly and Senate Committees on Transportation. That information shall be provided on or before January 31, 2006, and annually thereafter through 2008.

Section § 2196.2

Explanation

This section outlines how the Transportation Agency, in collaboration with the Department of Transportation, will fund high-priority projects to enhance goods movement at California ports using contracts, grants, or other funding approaches. The key goals are to boost port capacity and efficiency, reduce emissions, promote equity, and improve the freight transportation system. Furthermore, the allocated funding should be used efficiently to increase California's economic competitiveness while ensuring safety and resilience against various risks.

There's a limitation where no more than 2% of funds can be used for administrative costs. Projects eligible for funding include port-specific tasks, intermodal railway improvements, zero-emission initiatives, and others. Distribution of funds favors infrastructure at the Ports of Los Angeles and Long Beach, but also supports projects statewide. The section prohibits the use of funds for fully automated cargo-handling equipment. Finally, the Transportation Agency must report annually to the Legislature on the allocations, effects, and any lessons learned.

(a)CA Streets and Highways Code § 2196.2(a)  Subject to the appropriation of funds for this purpose, the Transportation Agency, in consultation with the Department of Transportation, shall develop and administer contracts, grants, or other funding mechanisms to invest in port-specific high-priority projects that increase goods movement capacity on rail and roadways serving ports and at port terminals.
(b)CA Streets and Highways Code § 2196.2(b) It is the intent of the Legislature that funds appropriated for this section achieve the following goals:
(1)CA Streets and Highways Code § 2196.2(b)(1) Improve the capacity of California ports to manage increasing volumes of freight and improve the efficiency of goods movement to, from, and through California ports.
(2)CA Streets and Highways Code § 2196.2(b)(2) Reduce greenhouse gas emissions and freight-related air pollution.
(3)CA Streets and Highways Code § 2196.2(b)(3) Promote transportation equity.
(4)CA Streets and Highways Code § 2196.2(b)(4) Maintain, enhance, and modernize the multimodal freight transportation system.
(5)CA Streets and Highways Code § 2196.2(b)(5) Grow the economic competitiveness of California’s freight sector through increased system efficiency and productivity.
(6)CA Streets and Highways Code § 2196.2(b)(6) Reduce freight-related deaths and injuries.
(7)CA Streets and Highways Code § 2196.2(b)(7) Improve system resilience by addressing infrastructure vulnerabilities associated with security threats, climate change, and natural disasters.
(c)CA Streets and Highways Code § 2196.2(c) Of the funds appropriated for this section, no more than 2 percent may be used for state operations and other administrative costs, with the remaining funding to be used for investments in eligible projects.
(d)CA Streets and Highways Code § 2196.2(d) Projects eligible for funding include, but are not limited to, the following:
(1)CA Streets and Highways Code § 2196.2(d)(1) Port-specific high-priority projects.
(2)CA Streets and Highways Code § 2196.2(d)(2) Intermodal railyard expansion and electrification.
(3)CA Streets and Highways Code § 2196.2(d)(3) Goods movement railway corridor capacity projects.
(4)CA Streets and Highways Code § 2196.2(d)(4) High-priority grade separations.
(5)CA Streets and Highways Code § 2196.2(d)(5) Zero-emission goods movement demonstration projects.
(e)CA Streets and Highways Code § 2196.2(e) Funding for projects eligible pursuant to subdivision (a) shall be allocated to public agencies that administer or operate the projects as follows:
(1)CA Streets and Highways Code § 2196.2(e)(1) Seventy percent for infrastructure projects, each supporting goods movement related to the Port of Los Angeles, the Port of Long Beach, or both.
(2)CA Streets and Highways Code § 2196.2(e)(2) Thirty percent for other high-priority projects supporting ports and goods movement infrastructure in the rest of the state, including inland ports.
(f)CA Streets and Highways Code § 2196.2(f) Public agencies may partner with private operators of projects, such as freight railroads, to implement an eligible project.
(g)CA Streets and Highways Code § 2196.2(g) Funds awarded under this section shall not be used for the purchase of fully automated cargo handling equipment nor for infrastructure that is used to support fully automated cargo handling equipment.
(h)Copy CA Streets and Highways Code § 2196.2(h)
(1)Copy CA Streets and Highways Code § 2196.2(h)(1) The Transportation Agency shall develop guidelines for project selection in consultation with the ports and other stakeholders consistent with the goals listed in subdivision (b). The guidelines shall be exempt from the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
(2)CA Streets and Highways Code § 2196.2(h)(2) In developing the guidelines pursuant to paragraph (1), and consistent with the goal of leveraging as much matching funding as possible as stated in subdivision (i), program guidelines may prioritize projects for which local, federal, or private match funding is available.
(i)Copy CA Streets and Highways Code § 2196.2(i)
(1)Copy CA Streets and Highways Code § 2196.2(i)(1) It is the intent of the Legislature that the allocation of funding described in this section be used to leverage the maximum amount of federal funding and financing available to California from federal infrastructure credit programs through the Transportation Agency and the United States Department of Transportation Emerging Projects Agreement, from the federal Infrastructure Investment and Jobs Act 2021 (Public Law 117–58), and from other subsequent federal actions.
(2)CA Streets and Highways Code § 2196.2(i)(2) In developing the guidelines pursuant to paragraph (1) of subdivision (h), and consistent with the goal of leveraging as much matching funding as possible, the Transportation Agency may prioritize projects for which local, federal, or private match funding is available.
(j)CA Streets and Highways Code § 2196.2(j) Notwithstanding subdivision (d), allocations pursuant to this section shall comply with the requirements of paragraph (3) of subdivision (c) of Section 2192.
(k)CA Streets and Highways Code § 2196.2(k) The Transportation Agency shall, as part of the annual budget process, report to the Legislature on the implementation of this section. The report shall include, but not be limited to, the following information:
(1)CA Streets and Highways Code § 2196.2(k)(1) The number of grants awarded, the dollar value of those awards, and the location of those awards.
(2)CA Streets and Highways Code § 2196.2(k)(2) A description of the projects funded under this section, including the specific improvements funded and the likely impact of those projects on the port with which they are associated.
(3)CA Streets and Highways Code § 2196.2(k)(3) Any lessons learned from the implementation of this section, including opportunities for additional investments in California’s multimodal freight transportation system.

Section § 2196.3

Explanation

This section allows a lead applicant agency to apply for a 'letter of no prejudice' from the Secretary of Transportation. This letter lets them spend their own money on a transportation project with the possibility of getting reimbursed later by the state, provided the project is part of an approved program.

For reimbursement, certain conditions need to be met: the project must have started, the costs must be eligible under the law, the agency must follow legal requirements like environmental laws, and there must be enough funding in the program to cover the reimbursement.

The agency and the Transportation Agency will have an agreement outlining how and when reimbursement will happen, based on available funds. The Transportation Agency can also make guidelines for this process, which won't have to follow the usual administrative procedures. This law is set to end in 2033, with a repeal date of 2034.

(a)CA Streets and Highways Code § 2196.3(a) A lead applicant agency may apply to the Secretary of Transportation or the secretary’s designee for a letter of no prejudice for a project or for any component of a project included in the program of projects awarded by the Transportation Agency pursuant to Section 2196.2. If approved by the Secretary of Transportation or the secretary’s designee, the letter of no prejudice shall allow the lead applicant agency to expend its own moneys for the project or any component of the project and to be eligible for future reimbursement from moneys available for the program.
(b)CA Streets and Highways Code § 2196.3(b) The amount expended under subdivision (a) shall be reimbursed by the state from moneys available for the program if all of the following conditions are met:
(1)CA Streets and Highways Code § 2196.3(b)(1) The project or project component for which the letter of no prejudice was requested has commenced, and the regional or local expenditures have been incurred.
(2)CA Streets and Highways Code § 2196.3(b)(2) The expenditures made by the lead applicant agency are eligible for reimbursement in accordance with applicable laws and procedures. If expenditures made by the lead applicant agency are determined to be ineligible, the state has no obligation to reimburse those expenditures.
(3)CA Streets and Highways Code § 2196.3(b)(3) The lead applicant agency complies with all legal requirements for the project, including the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(4)CA Streets and Highways Code § 2196.3(b)(4) There are moneys designated for the program that are sufficient to make the reimbursement payment.
(c)CA Streets and Highways Code § 2196.3(c) The lead applicant agency and the Transportation Agency shall enter into an agreement governing reimbursement as described in this section. The timing and final amount of reimbursement shall be dependent on the terms of the agreement and the availability of moneys for the program.
(d)CA Streets and Highways Code § 2196.3(d) The Transportation Agency may develop guidelines to implement this section, which shall be exempt from the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
(e)CA Streets and Highways Code § 2196.3(e) This section shall become inoperative on June 30, 2033, and, as of January 1, 2034, is repealed.