California SB1: Road Repair & Accountability Act of 2017 Updates

As program guidelines are developed, we will update this page with the latest information


The Road Repair and Accountability Act of 2017 (SB1), passed on April 6, 2017, adds over $5 billion a year in perpetuity for transportation infrastructure. SB1 is great news for agencies, allowing them to make a dent in the backlog of projects needed to improve local infrastructure.

Bookmark this page and check back often for updates!

Programs for Local Agencies to Focus On

While SB1 is far reaching, we will be focusing our efforts on the programs that will make the most impact to local cities, counties, and agencies and maximize your ability to capture funding for your maintenance and improvement projects:

Local Streets and Roads Program

Overview

The Local Streets and Roads Program provides new revenues so that cities and counties can address the enormous shortfall of funding needed to adequately maintain the existing network of local streets and roads.

The program provides a balance of new revenues and reasonable reforms to ensure efficiency, accountability, and performance from each dollar invested in the transportation system .

Also, the Local Streets and Roads Program provides new funding from the Road Maintenance and Rehabilitation Account (RMRA) for monthly apportionment to cities and counties by the State Controller to be used for road maintenance, rehabilitation and critical safety projects.

Schedule
FY 17–18
Adoption of Final Guidelines Call for Project Lists August 16-17, 2017
Technical Assistance and Outreach to Cities/Counties August 18–October 16, 2017
Project Lists due to Commission October 16, 2017
Commission Adopts List of Eligible Cities and Counties December 6-7, 2017
Commission Submits List to Controller December 6-7, 2017
Controller FY 17-18 Apportionments Begin Mid-January 2018
Completed Project Report Submitted to Commission for 2017-2018 FY October 1, 2018
Commission Posts Statewide LSR Program Accountability Information Online December 1, 2018
Annual Project Reporting

The program does require basic annual project reporting to the CTC. Annually, prior to receiving funds, a city or county must submit a proposed project list from a Council-approved budget document containing the following:

  • Proposed project description and location
  • Proposed schedule for completion, may include multi-year projects
  • Estimated useful life of the improvement
  • Projects must be in an adopted/amended city/county budget

A sample budget amendment resolution to use for your council can be found here.

Also, annually upon completion of the fiscal year, city or county must submit a project expenditure report with contains the following:

  • Completed project description and location
  • Completed date
  • Amount of funds expended on the project
  • Estimated useful life of the improvement
  • If applicable, a progress update on multi-year projects

 

Active Transportation Program Augmentation

Overview

SB 1 provides an additional $100 million a year to the ATP through the Road Maintenance and Rehabilitation Account (RMRA) beginning in FY 17-18. This gives increased programming flexibility and an opportunity for project selection enhancements. There is also an emphasis on accountability and transparency. The ATP will be distributed into the three ATP components:

  • 50% for the Statewide Component
  • 10% for Small Urban and Rural Component
  • 40% for Metropolitan Planning Organization (MPO) Component

Unless specified in the 2017 ATP Augmentation Guidelines, the 2017 ATP Guidelines will apply.

Schedule
FY 17–18
Commission hearing and adoption of 2017 ATP Augmentation Guidelines June 9, 2017
Commission hearing and adoption of 2017 ATP Augmentation Guidelines June 28, 2017
Call for Projects June 30, 2017
Project submittals to Commission (postmark date) August 1, 2017
Staff recommendation for Statewide and Small Urban & Rural Components Posted August 31, 2017
MPO project programming recommendations to Commission October 19, 2017
Commission adopts 2017 ATP Augmentation - Statewide and Small Urban & Rural Components October 1, 2018
Commission adopts 2017 ATP Augmentation – MPO Component December 6-7, 2018
ATP Project Eligibility

The following project eligibility requirements apply for the 2017 ATP Augmentation guidelines:

  • 2017 ATP (Cycle 3) programmed projects that can be delivered earlier (advanced)
  • Projects that applied for funding in the 2017 ATP (Cycle 3) but not selected for funding
    • However, the original 2017 ATP consensus score will stand and projects will not be re-scored
  • Projects that were awarded funds in the 2017 ATP will remain in the component where they were originally programmed

If there are not enough viable projects submitted in the 2017 ATP to fully utilize the funds available in the 2017 ATP Augmentation, the CTC may hold a 2017 ATP Augmentation supplemental call for projects.

If the MPO determines that there are not enough viable projects from their 2017 ATP MPO contingency list to fully utilize available funds, the MPO may hold a supplemental call for projects, but must submit a letter explaining the basis for this determination.

Submittal Process, Criteria, and Evaluation

Applicants must submit an updated schedule, funding plan, and a letter signed by the Executive Officer. All funds committed to the project must be consistent with the updated schedule.

Projects selected based on the project's 2017 ATP score and project deliverability in the following priority order:

  • Projects that can deliver all components in FY 17-18 and FY 18-19
  • Projects that can deliver one or more but not all of their components FY17-18 and FY 18-19
  • Projects that can only deliver project components in FY 19-20 and FY 20-21 as programming becomes available

It's also of note that programming capacity may become available in FY 19-20 and FY 20-21 through currently programmed Cycle 3 projects advancing.

Local Partnership Program

Overview

The Local Partnership Program of SB1 has funding split 50-50 on both competitive project selection and a formula.

For the competitive portion, a process will be developed to ensure all jurisdictions are able to compete.

The formula portion of funds will include projects that include a project description, costs, scope, schedule, and specific outcomes, including useful life. The project recipients will also be required to report on progress and outcomes for each project.

Schedule
FY 17–18
Draft Guidelines presented to Commission August 16, 2017
Guidelines Adoption October 18-19, 2017
Agencies Submit Voter Approval Info (Formulaic) October 27, 2017
Release Proposed Formula Shares November 13, 2017
Adoption of Formulaic Funding Shares Decenber 6-7, 2017
Applications Due (Formulaic) December 11, 2017
Release Staff Recommendations (Formulaic) January 10, 2018
Applications Due (Competitive) January 31, 2018
Program Adoption (Formulaic) January 31, 2018
Release Staff Recommendations (Competitive) April 25, 2018
Program Adoption (Competitive) May 16, 2018
Eligible Agencies with Modified Language

“... Road Maintenance and Rehabilitation Account shall be set aside annually for counties a local or regional transportation agency that have has sought and received voter approval of taxes or that have imposed fees, including uniform developer fees...”

Funds are appropriated “for allocation to each eligible county nd each city in the county by the commission..."

“...for road maintenance and rehabilitation, and other transportation improvement projects purposes pursuant to Section 2033.

“Eligible projects... include but are not limited to, sound walls for a freeway that was built prior to 1987 without sound walls and with or without high occupancy vehicle lanes if the completion of the sound walls has been deferred to lack of available funding for t least twenty years and a noise barrier scope summary report has been completed within the last twenty years.”


Contact Us for Guidance

For specific guidance on how your agency can maximize SB1 funding, contact us today!

Scott D. Alman, PE, QSD
Scott D. Alman, PE, QSD

Director / Engineering Services
925.683.5025
Contact Scott

Gary Yagade, PE
Gary Yagade, PE

Vice President / Engineering Services
619.236.1778 ext. 2525
Contact Gary

This page was last updated 10.10.17.

Recent Blog Posts on SB1

More Money, More Accountability: How SB1 Changed the Role of the California Transportation Commission

Learn how SB1 expanded the CTC's role and responsibilities for transportation projects.


Active Transportation Program (ATP) Augmentation Funding: How to Get First Money from SB1

Read about the new guidelines for the Active Transportation Program (ATP).


California's Road Repair and Accountability Act of 2017 (SB1): Make Sure Your Agency is Ready to Capture Funding

Harris & Associates’ Scott Alman, PE and Gary Yagade, PE, discuss how agencies can focus their funding efforts to make the most of SB1.

SB1 At a Glance

While officially called the Road and Repair Accountability Act of 2017, CA SB1 was signed into law by Governor Brown on April 28, 2017. The bill will raise $5.3 billion annually for transportation improvements through:

  • 12 cents-a-gallon increase gas excise tax
  • 20 cents-a-gallon increase diesel excise tax
  • Increase in the Vehicle License Fee, starting Spring of 2018
  • New annual $100 fee on electric vehicles starting in 2020
  • Additional 4% increase in sales and use tax on diesel

SB1 Annual Funding Overview

The money raised is indexed annually so it will not lose purchase power to inflation. SB1 creates the Road Maintenance and Rehabilitation Account (RMRA) and also increases the role of the California Transportation Commission (CTC) with developing the new funding guidelines with local agencies.

CA SB1