Active Transportation Program

Guidelines
The guidelines for an initial two-year program of projects available through 2015 must be adopted by March 26, 2014. No later than 45 days prior to adopting the initial set of guidelines for the Active Transportation Program, the Commission must submit the draft guidelines to the Joint Legislative Budget Committee.

Schedule
The following schedule lists the major milestones for the development and adoption of the 2014 Active Transportation Program:

Commission adopts Fund Estimate Completed December 11, 2013

Guidelines hearing, South Completed January 22, 2014

Guidelines hearing, North Completed January 29, 2014

Guidelines submitted to the Joint Legislative Budget Committee Completed February 3, 2014

Commission adopts Active Transportation Program Guidelines March 20, 2014

Call for projects Key Date March 21, 2014

Project applications to Caltrans Key Date May 21, 2014

Large MPOs submit optional guidelines to Caltrans May 21, 2014

Commission approves or rejects MPO guidelines June 25, 2014

Staff recommendation for statewide and rural/small urban portions of the program August 8, 2014

Commission adopts statewide and rural/small urban portions of the program August 20, 2014

ELIGIBLE APPLICANTS
The following entities, within the State of California, are eligible to apply for Active Transportation Program funds:

• Local, Regional or State Agencies- Examples include city, county, MPO, and Regional Transportation Planning Agency.

• Caltrans

• Transit Agencies - Any agency responsible for public transportation that is eligible for funds under the Federal Transit Administration.

• Natural Resource or Public Land Agencies - Federal, Tribal, State, or local agency responsible for natural resources or public land administration.

Active Transportation Program - Example Projects And CTC Fund Estimate
Example Projects
Below is a list of projects considered generally eligible for Active Transportation Program funding. This list is not intended to be comprehensive; other types of projects that are not on this list may also be eligible if they further the goals of the program.

• Development of new bikeways and walkways that improve mobility, access, or safety for nonmotorized users.
• Improvements to existing bikeways and walkways, which improve mobility, access, or safety for non-motorized users.
  • Elimination of hazardous conditions on existing bikeways and walkways.
  • Preventative maintenance of bikeways and walkways with the primary goal of extending the service life of the facility.
• Installation of traffic control devices to improve the safety of pedestrians and bicyclists.
• Safe Routes to School projects that improve the safety of children walking and bicycling to school, in accordance with Section 1404 of Public Law 109-59.
• Safe routes to transit projects, which will encourage transit by improving biking and walking routes to mass transportation facilities and school bus stops.
• Secure bicycle parking at employment centers, park and ride lots, rail and transit stations, and ferry docks and landings.
• Bicycle-carrying facilities on public transit, including rail and ferries.
• Establishment or expansion of a bike share program.
• Recreational trails and trailheads, park projects that facilitate trail linkages or connectivity to nonmotorized corridors, and conversion of abandoned railroad corridors to trails.
• Development of a bike, pedestrian, safe routes to schools, or active transportation plan in a disadvantaged community.
• Education programs to increase bicycling and walking, and other non-infrastructure investments that demonstrate effectiveness in increasing active transportation, including but not limited to:
  • Development and implementation of bike-to-work or walk-to-work school day/month programs.
  • Conducting bicycle and/or pedestrian counts, walkability and/or bikability assessments or audits, or pedestrian and/or bicycle safety analysis to inform plans and projects.
  • Conducting pedestrian and bicycle safety education programs.
  • Development and publishing of community walking and biking maps, including school route/travel plans.
  • Development and implementation of walking school bus or bike train programs.
  • Components of open streets events directly linked to the promotion of a new infrastructure project.
  • Targeted enforcement activities around high pedestrian and/or bicycle injury and/or fatality locations (intersections or corridors). These activities cannot be general traffic enforcement but must be tied to improving pedestrian and bicyclist safety.
  • School crossing guard training.
  • School bicycle clinics.
  • Development and implementation of programs and tools that maximize use of available and emerging technologies to implement the goals of the Active Transportation Program.

2014-15 State Budget
Overview
The new budget proposed by Governor Brown calls for spending $154.9 billion from all funds, about a 5 percent increase over the current year, including $106.8 billion from the general fund. It projects spending on K-12 schools will grow to almost $70 billion, an increase of $22 billion from 2011-12.

In general state general fund revenues increase from $100 million in the current year to more than $104 million in the budget year, which combined with a healthy carry-over balance permits proposed general fund spending of $108 million, up from $102 million. Also, the proposed budget continues to display a healthy reserve of $1.9 billion and a jump start on the proposed “Rainy Day fund” of $1.6 billion.

Due to the lack of detail available at this time this review relies on the Governor’s Budget Summary for information; as more details are available I will update this report.

Key Budget Highlights:
• $11 billion spent on debt reduction, over the next 3 fiscal years
• Transit and rail receive new funding and SHOPP and local roads maintenance benefit from early repayment of outstanding loans to the General fund
• Motor Vehicle Fuels sales continue to decline
• New “rainy-day fund” plan for November ballot
• Spending on K-12 schools will grow to almost $70 billion, an increase of $22 billion from 2011-12.
• 4.2 percent funding increase for UC, CSU; no tuition increases
• 5 percent welfare grant increase


Transportation
The Budget includes total funding of $15.3 billion ($83 million General Fund and $15.2 billion other funds) for all programs administered within the CalSTA Agency.

Appropriation of Proposition 1B Bond Funds — The Budget proposes $1.1 billion in bond funds and administrative cost savings that Caltrans has generated in its management of the bond program.
The funding includes $793 million to support local transit operators, $160 million for intercity rail, and $113 million for additional state highway projects.

Cap and Trade Funding for Transportation — The Budget includes Cap and Trade funds for programs that will be administered in full, or in part, by Caltrans (see more detailed under Cap and Trade information, below).

• Rail Modernization — The Budget proposes $300 million in new funding for rail modernization; including $50 million for Caltrans and $250 million for the High?Speed Rail Authority.

The $50 million in the Caltrans budget will fund competitive grants for existing rail operators to integrate rail systems and to provide connectivity to high?speed rail. The program will be managed by the Transportation Agency, and the work of southern and northern California rail partner groups will be considered in making project selections.

• Sustainable Communities Strategies — The Budget proposes $100 million for the Strategic Growth Council support implementation of SB 375 sustainable communities strategies. The program will fund transit and transit oriented development that includes low?income housing; active transportation; agricultural land preservation; and related planning..

Repayment of General Fund Loans — The Budget includes $351 million in early General Fund loan repayments. Of the total to be repaid, $337 million will be used to accelerate preservation and maintenance projects on both state highways and local roads that would otherwise be funded in 2015?16 or thereafter. Accelerating existing projects will allow for new projects to be added to the SHOPP in future years.

Additionally, the proposed repayment includes support for sustainable communities through funding of active transportation and environmental mitigation. Funds from the repayment of General Fund loans will be allocated as follows:
• $110 million to fund pavement rehabilitation projects on state highways.
• $100 million to cities and counties for preservation of local streets and roads.
• $100 million for traffic management mobility projects.
• $27 million for highway pavement maintenance.
• $9 million for active transportation projects.
• $5 million for environmental mitigation.

Capital Outlay Support Program — The Capital Outlay Support program provides the resources necessary for design, environmental review, right of way, and construction oversight work for Caltrans’ capital projects.

This year’s budget continues the efforts to bring workload review and zero-based budgeting to key department programs. While Caltrans will continue to explore longer term improvements to both its processes and its internal controls, the Administration is putting forward the following recommendations:

(1) Improve project budgets through the development of a predictive tool to help establish initial project budgets that account for various factors like project types, environmental permits, and location,
(2) Create a methodology for the use of flexible resources to meet overall staffing needs,
(3) Increase accountability and transparency by aligning support cost guidelines currently used for the State Transportation Improvement Program and the State Highway Operation and Protection Program,
(4) Consolidate and streamline statewide program management manuals and directives to increase project management efficiency and consistency across all 12 districts.

High Speed Rail Authority
Cap and Trade Funding — The Budget includes $250 million in Cap and Trade expenditures for Phase I project planning ($58.6 million) and construction and right of way acquisition for the first phase of the Initial Operating Section ($191.4 million).

According to the Governor, this is part of Rail Modernization, which also includes $50 million for urban, commuter and intercity rail operators. Proposed legislation establishes an ongoing state commitment of Cap and Trade proceeds to high-speed rail, which will facilitate future phases of the initial operating segment.

In addition to previously identified federal and Proposition 1A bond funds, the new Cap and Trade funds are critical to addressing the overall funding needs for the initial operating segment, leveraging additional funding opportunities, and moving the project forward while legal issues surrounding Proposition 1A are being resolved. Moving the project forward with Cap and Trade funds will help meet the state matching requirements in the federal grant agreement and will help avoid long-term project escalation costs

Cap and Trade

The Air Resources Board has held five auctions to date. The remaining two auctions for
2013-14 will occur in February and May 2014. Currently, GHG emissions from electricity and large industrial sources are subject to the cap. The sale of allowances consigned to auction by electric distribution utilities resulted in proceeds of $836 million, to be used as directed by the California Public Utilities Commission or governing boards for ratepayer benefits consistent with the goals of AB 32. In addition, the five auctions to date have generated $532 million in state auction proceeds.

The Budget proposes to invest $850 million of Cap and Trade proceeds to support existing and pilot programs that will promote GHG reductions and meet SB 535 goals. This amount includes repayment of $100 million of the 2013 Budget loan, with the remaining balance being repaid within the next few years.

The Budget proposes to invest in both near-term emission reductions and projects that support California’s longer-term climate targets. Finally, these programs improve air and water quality, invest at least $225 million for the benefit of disadvantaged communities, and create jobs.

Specifically, the Cap and Trade Expenditure Plan proposes investments in the following programs:

Sustainable Communities and Clean Transportation

• Rail Modernization — $300 million to continue the work of modernizing and integrating rail transportation. These funds will continue the work begun in 2012, when the Legislature approved Chapter 152, Statutes of 2012 (SB 1029), which provided $7.8 billion in state and federal funds to start construction of high-speed rail and to modernize existing rail systems across the state. The Budget proposes the following allocation:

• High-Speed Rail — $250 million for the High-Speed Rail Authority for construction of the Central Valley initial construction segment and further environmental and design work on the statewide system. Proposed legislation provides an ongoing state commitment of Cap and Trade proceeds to high?speed rail, which will leverage additional federal support for the project and facilitate future phases of the initial operating segment from Merced to the San Fernando Valley.
• Integration of Rail Systems — $50 million for the Department of Transportation to administer a competitive grant program for existing rail operators for capital improvements to integrate rail systems, including those located in disadvantaged communities, and provide connectivity to the high?speed rail system.

• Sustainable Communities — $100 million in local assistance funding to support regions in the implementation of the sustainable communities strategies required by SB 375, and to provide similar support to other areas with GHG reduction policies, but not subject to SB 375 requirements.

The Strategic Growth Council will coordinate this program with consultation with a multi-agency team of departments, including Caltrans, the California Transportation Commission, the Department of Housing and Community Development, and the Natural Resources Agency. Selected projects will prioritize disadvantaged communities and will reduce GHG emissions by increasing transit ridership, active transportation (walking/biking), affordable housing near transit stations, preservation of agricultural land, and local planning that promotes infill development and reduces the number of vehicle miles traveled.

• Low Carbon Transportation — $200 million for the Air Board to accelerate the transition to low carbon freight and passenger transportation, with a priority for disadvantaged communities. This investment will support the state’s clean air and climate change goals, as well as the Administration’s goal to deploy 1.5 million zero-emission vehicles in California by 2025. The Air Board administers existing programs that provide rebates for zero-emission cars and vouchers for hybrid and zero-emission trucks and buses. This proposal will respond to increasing demand for these incentives, as well as provide incentives for the pre-commercial demonstration of advanced freight technology to move cargo in California, which will benefit communities near freight hubs.

• Other Activities - $140 million for other activities ranging form Water Action Plan/Wetlands and Coastal Watersheds, Fire Prevention and Urban Forests, to Waste Diversion.

Local government
Infrastructure Finance District Modernization
Specifically, the Governor proposes legislation to do the following:

• Expand the types of projects that IFDs can fund to include military base reuse, urban infill, transit priority projects, affordable housing, and associated necessary consumer services. The goal is to maintain the IFD focus on projects which have tangible quality-of-life benefits for the residents of the IFD project area.

• Allow cities or counties that meet specified benchmarks to create these new IFDs, and to issue related debt, subject to receiving 55-percent voter approval.
• Allow new IFD project areas to overlap with the project areas of the former RDAs, while strictly limiting the available funding in those areas to dollars available after payment on all of the former RDA’s approved obligations.

• Maintain the current IFD prohibition on the diversion of property tax revenues from K-14 schools, which will ensure any usage will have no state General Fund impact, and require entities that seek to establish an IFD to gain the approval of the county, cities, and special districts that would contribute their revenue, including residual revenue, to the IFD.

State Fuel Sales
The state continues to see a declining usage and sales of motor vehicle fuels. The gallons of gasoline consumed were down 0.74 percent in 2012-13 when compared to the prior fiscal year.

Gasoline consumption is expected to decrease 0.67 percent in both 2013-14 and 2014-15. Because most diesel fuel is consumed by the commercial trucking industry, the gallons consumed are affected most significantly by general economic conditions. A recovering economy is expected to contribute to growth of 2 percent in diesel consumption per year in 2013-14 and 2014-15.

Motor Vehicle Fuel Tax Revenue
(Dollars in Thousands)