ABX1 26 - Transportation Funding Summary

• Creates Road Maintenance and Rehabilitation Program funded by $0.17/gallon gasoline tax increase, $38 vehicle registration fee increase, and $165 zero-emission vehicle registration fee (all with inflation adjustments), generating revenues for state highway maintenance and local street/road repairs.

• Allocates program funds as follows: $200 million annually to counties with voter-approved transportation taxes, $80 million to Active Transportation Program, $30 million annually (2017-18 through 2020-21) to Advance Mitigation Fund, $2 million to California State University for transportation research, with remaining 50/50 split between state highway maintenance and local city/county apportionments.

• Establishes independent Office of Transportation Inspector General appointed by Governor for 6-year term to audit state transportation agencies for efficiency, effectiveness, and legal compliance; requires annual reports to Legislature.

• Increases diesel fuel excise tax by $0.30/gallon (revenues directed to Trade Corridors Improvement Fund) and increases diesel sales tax by 3.5%; increases Greenhouse Gas Reduction Fund allocations to 20% for Transit and Intercity Rail Capital Program and 10% for Low Carbon Transit Operations Program (effective 2016-17).

• Phases out weight fee transfers from State Highway Account after 2020-21 fiscal year; extends CEQA exemption for roadway repair/maintenance indefinitely; creates Advance Mitigation Program to implement environmental mitigation before transportation projects are constructed.