California SB1 Transportation Funding Overview

California Transportation SB1 Funding Overview Division of Budgets

CAs Road Repair & Accountability Act Highlights Increases transportation funding by $54 billion over the next ten years New taxes and fee increases are permanent and indexed for inflation Focuses on Fix It first Splits Funding equally between State and Local needs Calls for Accountability and Transparency Calls for a Constitutional Amendment to protect funds for transportation purposes

SB1 Performance Requirements Specific State Highway performance outcomes by 2027: Not less than 98 percent of pavement in good or fair condition Not less than 90 percent level of service achieved for maintenance of potholes, spalls, and cracks Not less than 90 percent of culverts in good or fair condition Not less than 90 percent of the transportation management system units in good condition Fix not less than an additional 500 bridges Added oversight for SHOPP projects by the CTC Creation of the Office of Inspector General for Transportation Caltrans efficiency measure savings to generate $100 million per year

SB1 Tax and Fee Timeline Increase Timeline Description From 18 cpg to 30 cpg, Adjusted for Inflation after 2020 Gasoline Excise Tax Road Maintenance & Rehabilitation Account and Remaining funds for SHOPP and Local Streets and Roads November 1, 2017 From16 cpg to 36 cpg, Adjusted for Inflation after 2020 Diesel Excise Tax Trade Corridor and Road Maintenance & Rehabilitation Account November 1, 2017 Diesel Sales Tax State Transit Assistance, Intercity and Commuter Rail, Transit and Intercity Rail Capital Program, and Local Streets and Roads (effective July 2020) November 1, 2017 From 9% to 13% Transportation Improvement Fee Road Maintenance & Rehabilitation Account, Public Transportation Account, State Highway Account Between $25 - $175 annually Adjusted for Inflation after 2020 January 1, 2018 Reset to 17.3 cpg Adjusted for Inflation after 2020 Gasoline Price-Based Excise Tax State Highway Account and Local Streets and Roads July 1, 2019 Zero Emission Vehicle Fee Road Maintenance & Rehabilitation Account $100 Fee on model 2020 and later July 1, 2020

How the Transportation Improvement Fee Works Vehicle Value Tier From To Fee 1 $ - $ 4,999 $ 25 2 $ 5,000 $ 24,999 $ 50 3 $ 25,000 $ 34,999 $ 100 4 $ 35,000 $ 59,999 $ 150 5 $ 60,000 Koenigsegg $ 175

10-Year Revenue Forecast (in millions!) 10-Year Total - $54 billion First 10 Years of SB1 Revenues (dollars in millions) Gasoline Excise Tax increases $ 24,823 Diesel Excise Tax increases $ 7,086 Diesel Sales Tax increases $ 3,533 New Transportation Improvement Fee $ 16,716 New Zero Emmissions Vehicle Fee $ 191 Loan Repayments $ 706 Caltrans Efficiencies $ 1,000 $ 54,054 Total New SB1 Revenues Gasoline Excise Tax Diesel Sales Tax ZEV Fee (CPI) Caltrans Efficiencies Diesel Excise Tax Transportation Improvement Fee Loan Repayment

SB1 State and Local Programs STATE SHOPP 14,906 $ LOCAL Bridge and Culverts $ 4,000 Trade Corridor Enhancement $ 3,059 Local Streets and Roads 14,846 $ Congested Corridor $ 2,500 State Transit Assistance $ 4,255 Transit & Intercity Rail Capital Prog. $ 2,970 Parks $ 823 Agriculture $ 258 Local Partnership $ 2,000 STIP (State share) $ 331 Active Transportation $ 1,000 STIP (Local Share) $ 993 Freeway Service Program $ 250 Commuter Rail & Intercity Rail $ 442 RMRA - Fund Administration $ 38 Local Planning Grants $ 250 Transportation Workforce Training $ 25 RMRA - Fund Administration $ 38 UC/CSU Transportation Research $ 70 Local Total 26,794 $ 26,260 $ State Total

NEW SB1 Programs Program Guideline Adoption Applications Due Program Adoption Local Streets and Roads August 2017 CTC Meeting Sep-Oct 2017 October, 2017 Solutions for Congested Corridors December 2017 CTC Meeting February, 2018 May, 2018 Trade Corridor Enhancement January 2018 CTC Meeting March, 2018 May, 2018 Local Partnership October 2017 CTC Meeting March, 2018 June, 2018 Active Transportation June 2017 CTC Meeting August, 2017 Oct-Dec 2017 SHOPP June 2017 CTC Meeting (Interim) January, 2017 March, 2018 STIP August 2017 CTC Meeting August, 2017 March, 2018

Adopted 2018 STIP Fund Estimate Capacity 9