Proposition 1B Goods Movement Program Is Moving Forward

Proposition 1B Goods Movement Program Takes Step Forward To Implementation - But Some Issues Remain To Be Resolved.  On November 27, 2007, the California Transportation Commission (CTC) approved guidelines for the implementation of the $2 billion Trade Corridors Improvement Fund (TCIF) for goods movement related infrastructure projects using voter-approved Proposition 1B funds. The program guidelines included fund targets for major trade corridors around the state, a schedule for selecting the projects to be funded, and the project evaluation process and criteria to be followed.

Based on these guidelines, Caltrans, regional transportation planning agencies, cities, counties, and port authorities are busy preparing project applications. Applications are due to the CTC on January 17, 2008. The applications then will go through an evaluation process, with hearings to be held during the week of February 18, 2008 and the final fund allocation decision scheduled for the April 10, 2008 CTC meeting.

Several members of the legislature, including Speaker Nunez, expressed concern over the fund target for the Los Angeles/Inland Empire Corridor. The concern was that the proportion of funds allocated for projects in this area was too low when compared to the volume of goods being moved and the related impacts to the local communities. It is possible that the legislature may address the fund distribution issue early next year.

One issue of concern to the Auto Club is that the CTC amended the proposed guidelines in such a way that might divert funds from highway and freight rail improvements needed to reduce congestion and improve overall air quality by adding a new air quality-related "screening criteria" that was not approved by voters. In the voter-approved Proposition 1B language, these funds are to go to trade-related infrastructure. The CTC's action could prevent this from happening.

The language in Proposition 1B specifies air quality as one of several criteria to be considered in making allocations under the TCIF program, but does not establish air quality as being more important than other criteria. The Auto Club agrees that it is very important to include air quality factors in the evaluation process along with other factors; however, the Club's concern is that, by giving excessive weighting to air quality over other important considerations, such as improving goods movement and reducing congestion, very significant goods movement projects could be screened out of the process and not be eligible for this important funding source. In the end, this could halt projects that would both reduce congestion and air pollution across our urban regions.

The Auto Club will continue to be involved in this process to allocate the $2 billion for goods movement projects, as well as the rest of the overall $20 billion Proposition 1B bond program. Let us know your views on these important funding decisions.