SECTIONS 163-164.56

163.  The Legislature, through the enactment of this section,intends to establish a policy for the use of all transportation fundsthat are available to the state, including the State HighwayAccount, the Public Transportation Account, and federal funds. Forthe purposes of this section, "federal funds" means any obligationalauthority to be provided under annual federal transportationappropriations acts. The department and the commission shall preparefund estimates pursuant to Sections 14524 and 14525 of the GovernmentCode based on the following: (a) Annual expenditures for the administration of the departmentshall be the same as the most recent Budget Act, adjusted forinflation. (b) Annual expenditures for the maintenance and operation of thestate highway system shall be the same as the most recent Budget Act,adjusted for inflation and inventory, or, when a maintenance planhas been enacted pursuant to Section 164.6, maintenance expendituresshall be based on planned expenditures in that plan. (c) Annual expenditure for the rehabilitation of the state highwaysystem shall be the same as the most recent Budget Act, or, when along-range rehabilitation plan has been enacted pursuant to Section164.6, shall be based on planned expenditures in that long-rangeplan. (d) Annual expenditures for local assistance shall be the amountrequired to fund local assistance programs required by state orfederal law or regulations, including, but not limited to, railroadgrade crossing maintenance, bicycle transportation account,congestion mitigation and air quality, regional surfacetransportation programs, local highway bridge replacement andrehabilitation, local seismic retrofit, local hazard elimination andsafety, and local emergency relief. (e) After deducting expenditures for administration, operation,maintenance, local assistance, safety, and rehabilitation pursuant tosubdivisions (a), (b), (c), and (d), and for expenditures pursuantto Section 164.56, the remaining funds shall be available for capitalimprovement projects to be programmed in the state transportationimprovement program.164.  (a) Funds made available for transportation capitalimprovement projects under subdivision (e) of Section 163 shall beprogrammed and expended for the following program categories: (1) Twenty-five percent for interregional improvements. (2) Seventy-five percent for regional improvements. (b) Sixty percent of the funds available for interregionalimprovements under paragraph (1) of subdivision (a) shall beprogrammed and expended for improvements to state highways that arespecified in Sections 164.10 to 164.20, inclusive, and that areoutside the boundaries of an urbanized area with a population of morethan 50,000, and for intercity rail improvements. (c) Not less than 15 percent of the amount of funds programmedunder subdivision (b) shall be programmed for intercity railimprovement projects, including separation of grade projects. (d) Funds made available under paragraph (1) of subdivision (a)shall be used for transportation improvement projects that are neededto facilitate interregional movement of people and goods. Theprojects may include state highway, intercity passenger rail, masstransit guideway, or grade separation projects. (e) Funds made available under paragraph (2) of subdivision (a)shall be used for transportation improvement projects that are neededto improve transportation within the region. The projects mayinclude, but shall not be limited to, improving state highways, localroads, public transit, intercity rail, pedestrian, and bicyclefacilities, and grade separation, transportation system management,transportation demand management, soundwall projects, intermodalfacilities, safety, and providing funds to match federal funds.164.1.  (a) Federal funds derived from apportionments made to thestate under Section 1101(a)(11) of the federal Safe, Accountable,Flexible, Efficient Transportation Equity Act: A Legacy for Users(SAFETEA-LU; P.L. 109-59) for the coordinated border infrastructureprogram established under Section 1303 of that act shall be includedand separately identified in the fund estimates prepared pursuant toSections 14524 and 14525 of the Government Code, the interregionaltransportation improvement program submitted by the departmentpursuant to Section 14526 of the Government Code, and the statetransportation improvement program adopted by the commission pursuantto Section 14529 of the Government Code. Except as otherwiseprovided in subdivision (b), these funds shall be programmed,allocated, and expended in the same manner as other federal fundsmade available for capital improvement projects in the statetransportation improvement program. (b) Notwithstanding any other provision of law: (1) The programming, allocation, and expenditure of the fundsdescribed in subdivision (a) may be for any purpose authorized underfederal law, including projects in Mexico. (2) The funds described in subdivision (a) shall not be subject tothe distribution formulas and limitations described in Section 164. (3) The nonfederal match for the funds described in subdivision(a) may be programmed from any available local source, or anyavailable state transportation funding source, including other statetransportation improvement program funding, if the regionaltransportation planning agency concurs.164.3.  The interregional road system shall include, and shall belimited to, those routes that are specified in Sections 164.10 to164.20, inclusive.164.6.  (a) The department shall prepare a 10-year staterehabilitation plan for the rehabilitation and reconstruction, or thecombination thereof, by the State Highway Operation and ProtectionProgram, of all state highways and bridges owned by the state. Theplan shall identify all rehabilitation needs for the 10-year periodbeginning on July 1, 1998, and ending on June 30, 2008, and shallinclude a schedule of improvements to complete all neededrehabilitation during the life of the plan not later than June 30,2008. The plan shall be updated every two years beginning in 2000.The plan shall include specific milestones and quantifiableaccomplishments, such as miles of highways to be repaved and numberof bridges to be retrofitted. The plan shall contain strategies tocontrol cost and improve the efficiency of the program, and include acost estimate for at least the first five years of the program. (b) The department shall prepare a five-year maintenance plan thataddresses the maintenance needs of the state highway system. Theplan shall be updated every two years, concurrent with therehabilitation plan described in subdivision (a). The maintenanceplan shall include only maintenance activities that, if theactivities were not performed, could result in increased StateHighway Operation and Protection Program costs in the future. Theseactivities may include roadway, structural, and drainage maintenance.The maintenance plan shall identify any existing backlog in thesemaintenance activities and shall recommend a strategy, specificactivities, and an associated funding level to reduce or prevent anybacklog during the plan's five-year period. The maintenance planshall include specific goals and quantifiable accomplishments, suchas lane-miles of highway to be repaved and the number of bridge decksto be sealed. The maintenance plan shall contain strategies tocontrol cost and improve the efficiency of these maintenanceactivities, and include a cost estimate for the five years of theplan. (c) The rehabilitation plan and the maintenance plan shall attemptto balance resources between State Highway Operation and ProtectionProgram activities and maintenance activities in order to achieveidentified milestones and goals at the lowest possible long-termtotal cost. If the maintenance plan recommends increases inmaintenance spending, it shall identify projected future StateHighway Operation and Protection Program costs that would be avoidedby increasing maintenance spending. The department's maintenancedivision shall develop a budget model that allows it to achieve therequirements of this subdivision. (d) The rehabilitation plan shall be submitted to the commissionfor review and comments not later than January 31 of eachodd-numbered year, and shall be transmitted to the Governor and theLegislature not later than May 1 of each odd-numbered year. Themaintenance plan shall be transmitted to the Governor, theLegislature, and the commission not later than January 31 of eachodd-numbered year. (e) The rehabilitation plan and the maintenance plan shall be thebasis for the department's budget request and for the adoption offund estimates pursuant to Section 163.164.10.  For purposes of subdivision (e) of Section 164.3, theeligible interregional and intercounty routes include all of thefollowing: Route 1. Route 2, between the north urban limits of Los Angeles-Long Beachand Route 138. Route 4, between the east urban limits of Antioch-Pittsburg andRoute 89. Route 5. Route 6. Route 7. Route 8. Route 9, between the north urban limits of Santa Cruz and thesouth urban limits of San Jose. Route 10, between the east urban limits of SanBernardino-Riverside and the Arizona state line.164.11.  For purposes of subdivision (e) of Section 164.3, theeligible interregional and intercounty routes include all of thefollowing: Route 12. Route 14. Route 15. Route 16, between the east urban limits of Sacramento and Route49. Route 17, between the north urban limits of Santa Cruz and thesouth urban limits of San Jose. Route 18, between the City of San Bernardino and the junction withRoutes 18 and 138 in Los Angeles County. Route 20. Route 25, between Route 146 in San Benito County and Route 101 inSanta Clara County. Route 28. Route 29.164.12.  For purposes of subdivision (e) of Section 164.3, theeligible interregional and intercounty routes include all of thefollowing: Route 36, between Route 5 and Route 395. Route 37, between the east urban limits of San Francisco-Oaklandnear Novato and the west urban limits of San Francisco-Oakland nearVallejo. Route 38, between the east urban limits of SanBernardino-Riverside and Route 18 west of Big Bear Lake. Route 40. Route 41, between Route 1 and Yosemite National Park. Route 44, between the east urban limits of Redding and Route 36. Route 46, between Route 1 and Route 99. Route 49, between Route 41 and Route 89.164.13.  For purposes of subdivision (e) of Section 164.3, theeligible interregional and intercounty routes include all of thefollowing: Route 50. Route 53. Route 58, between Route 5 and Route 15. Route 62. Route 63, between the north urban limits of Visalia and Route 180. Route 65, between the north urban limits of Bakersfield and Route198 near Exeter, and between Route 80 and Route 99 near Yuba City. Route 68.164.14.  For purposes of Section 164.3, the eligible interregionaland intercounty routes include the following: Route 70, between Route 99 north of Sacramento and Route 395. Route 74. Route 78. Route 79, between Route 8 and Route 10. Route 80. Route 84, between Route 580 and Route 4. Route 86, between Route 111 in Brawley and Route 10. Route 88. Route 89.164.15.  For purposes of Section 164.3, the eligible interregionaland intercounty routes include all of the following: Route 94, except within the urban limits of the County of SanDiego. Route 95, between Route 10 and the Nevada state line. Route 97. Route 98, between Route 111 and Route 7. Route 99, with routing to be determined via Route 70 or via Route99 between Route 70 north of Sacramento and Route 149 north ofOroville. Route 101. Route 108, from Route 132 in Modesto to Route 120 east of Oakdale,and between Route 120 at Yosemite Junction and Route 395. Route 111, between the Mexico border near Calexico and Route 10near Whitewater. Route 113, between Route 80 and Route 5. Route 116, between Route 1 and Route 12.164.16.  For purposes of Section 164.3, the eligible interregionaland intercounty routes include all of the following: Route 120, between Route 5 and Route 395. Route 126, between the east urban limits ofOxnard-Ventura-Thousand Oaks and Route 5. Route 127. Route 128. Route 129, between Route 1 and Route 101. Route 132, west of Route 99, and between Route 99 and Route 108. Route 138, between Route 5 and Route 14 in Los Angeles County andbetween Route 14 in Los Angeles County and Route 18 near Crestline inSan Bernardino County. Route 139, between Route 299 and the Oregon state line. Route 246, between Route 1 and Route 101.164.17.  For purposes of subdivision (e) of Section 164.3, theeligible interregional and intercounty routes include all of thefollowing: Route 140, between the east urban limits of Merced and YosemiteNational Park. Route 146. Route 149. Route 152, between Route 101 and Route 99. Route 154. Route 156, between Route 1 and Route 152.164.18.  For purposes of subdivision (e) of Section 164.3, theeligible interregional and intercounty routes include all of thefollowing: Route 160, between the north urban limits of Antioch-Pittsburg andthe south urban limits of Sacramento. Route 168, between the east urban limits of Fresno and Route 168at Florence Lake Road, and between Route 168 near Lake Sabrina andRoute 395. Route 178, between the east urban limits of Bakersfield and Route14. Route 180, between the east urban limits of Fresno and KingsCanyon National Park. Route 188. Route 190, between Route 65 and Route 127. Route 198, between Route 5 and the Sequoia National Park. Route 199.164.19.  For purposes of Section 164.3, the eligible interregionaland intercounty routes include the following: Route 203. Route 205. Route 207. Route 215. Route 239. Route 243. Route 267. Route 299, between Route 101 and Route 89, and between Route 139and Route 395.164.20.  For purposes of subdivision (e) of Section 164.3, theeligible interregional and intercounty routes include all of thefollowing: Route 330, between the north urban limits of SanBernardino-Riverside and Route 18. Route 371. Route 395. Route 505. Route 580. Route 680. Route 905, except within the urban limits of San Diego.164.53.  (a) A local agency may request authorization from thecommission to make advance expenditures of funds, other than state orfederal funds, for a project which is included in the priority listfor the allocation of transit capital improvement funds pursuant toSection 99317 of the Public Utilities Code, or is included in theadopted state transportation improvement program, or is specificallyauthorized by Chapter 3 (commencing with Section 99620) of Part 11.5of Division 10 of the Public Utilities Code. (b) If the commission approves a request submitted pursuant tosubdivision (a), the approved advance expenditures shall beconsidered either part of the nonfederal share of project costs, orpart of the match from public or private sources, for projects whichare included in the transit capital improvement program pursuant toSection 99317 of the Public Utilities Code, or included in the statetransportation improvement program, or which are authorized byChapter 3 (commencing with Section 99620) of Part 11.5 of Division 10of the Public Utilities Code. (c) The commission's approval of a request pursuant to subdivision(b) does not, in and of itself, constitute an obligation to allocatestate funds for the project. (d) The commission, in consultation with the department and localtransportation officials, shall develop and adopt guidelines toimplement this section. The guidelines shall include a requirementthat the advance expenditure of funds will result in the completionof an operable segment of a transportation project. The acquisitionof right-of-way needed either for a usable urban or commuter railproject or an operable segment of an urban or commuter rail projectmeets that requirement. (e) The commission shall prepare a report on the progress andimpact of the advance expenditure program authorized by this sectionand shall include the report as an element of the annual report tothe Legislature required pursuant to Sections 14535 and 14536 of theGovernment Code.164.56.  (a) It is the intent of the Legislature to allocate tenmillion dollars ($10,000,000) annually to the EnvironmentalEnhancement and Mitigation Program Fund, which is hereby created. (b) Local, state, and federal agencies and nonprofit entities mayapply for and may receive grants, not to exceed five million dollars($5,000,000) for any single grant, to undertake environmentalenhancement and mitigation projects that are directly or indirectlyrelated to the environmental impact of modifying existingtransportation facilities or for the design, construction, orexpansion of new transportation facilities. (c) Projects eligible for funding include, but are not limited to,all of the following: (1) Highway landscaping and urban forestry projects designed tooffset vehicular emissions of carbon dioxide. (2) Acquisition or enhancement of resource lands to mitigate theloss of, or the detriment to, resource lands lying within theright-of-way acquired for proposed transportation improvements. (3) Roadside recreational opportunities, including roadside rests,trails, trailheads, and parks. (4) Projects to mitigate the impact of proposed transportationfacilities or to enhance the environment, where the ability toeffectuate the mitigation or enhancement measures is beyond the scopeof the lead agency responsible for assessing the environmentalimpact of the proposed transportation improvement. (d) Grant proposals shall be submitted to the Resources Agency forevaluation in accordance with procedures and criteria prescribed bythe Resources Agency. The Resources Agency shall evaluate proposalssubmitted to it and prepare a list of proposals recommended forfunding. The list may be revised at any time. Prior to including aproposal on the list, the Resources Agency shall make a finding thatthe proposal is eligible for funding pursuant to subdivision (f). (e) Within the fiscal limitations of subdivisions (a) and (b), thecommission shall annually award grants to fund proposals that areincluded on the list prepared by the Resources Agency pursuant tosubdivision (d). (f) Projects funded pursuant to this section shall be projectsthat contribute to mitigation of the environmental effects oftransportation facilities, as provided for by Section 1 of ArticleXIX of the California Constitution. (g) Notwithstanding Section 7550.5 of the Government Code, on orbefore December 31 of each year, the commission shall provide theAssembly Committee on Budget and the Senate Committee on Budget andFiscal Review with a list of projects funded from the EnvironmentalEnhancement and Mitigation Program during the previous fiscal yearand a copy of the most recent criteria for allocating grants pursuantto this section.