GOVERNMENT RELATIONS


11) on April 6, 2017. In November 2018, California voters will have an opportunity to safeguard these new revenues from future recessions and diversions by state government by passing ACA 5. Tis multi-year effort was led by the Fix Our Roads (FOR) coalition made up of contractors, local government, organized labor and transit advocates. Te FOR coalition worked closely with Trans- portation California (which was founded by AGC) and its partners to bring together the policy and politics necessary to earn support from the Legislature and Governor for the Act.


Reforms Measures Included With passage of the California


state budget by June 15 (as required by the State Constitution), we now enjoy additional reforms and efficiency measures at the California Transpor- tation Agency that were agreed upon as part of the Act. Te agency will soon establish a new office of Inspector General to audit Caltrans operations in pursuit of efficiencies. Te California Transportation Commission (CTC), Legislature and public will benefit from new reporting by Caltrans that will establish targets for measurable improvements for our state highway system (i.e. State Highway Perfor- mance Plan). Te agency will also employ advance project environmental mitigation to save time and money through the permitting approval process. And finally, the CTC will now have expanded oversight to cover each phase of project delivery to better track Caltrans’ staffing needs and increase transparency. Te Act’s new annual revenue comes from the following sources:


 Transportation Improvement Fee - $1.6 billion dollars will come from a new graduated fee that ranges from $25 to $175 per vehicle depending on vehicle value. Tis will be adjusted to changes in inflation starting in fiscal year 2020-21.


www.AGC-CA.org


 Gasoline Excise Tax - $2.4 billion in new revenues from a 12-cent increase in the base gasoline excise tax; the broader gasoline tax will be adjusted annually for inflation.


Te Act represents a “fix it first”


 Diesel Excise Tax - $725 million from an 11-cent increase in the diesel excise tax; adjusted for inflation starting 2020-21.


 Diesel Sales Tax - $353 million from increasing the diesel sales tax from 9 percent to 13 percent.


 Zero Emission Vehicle Fee


 Caltrans Efficiencies - $100 million in cost saving reforms at the agency.


- $19 million from a new annual fee of $100 on zero emission vehicles starting with vehicle 2020-21 model years; this fee will be adjusted for inflation once implemented.


 Accelerated Loan Repayments - $706 million in loan repayments over the next three years.


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approach to our state’s highways and local roads. Negotiations over the past legislative and special sessions focused on this principle to reach a politi- cally palatable solution to decades of deferred maintenance and shrinking revenue sources. While it is not enough new revenue to increase capacity on our state’s strained transportation system, the passage of the Act represents a very good down payment on fixing the broken system that we do have. Policy and political conversations will begin in the coming legislative session to plan for the future of funding for our transportation infrastructure. State lawmakers can’t depend much longer on fuel taxes given that vehicles have grown more efficient, run on alter- native fuels and the low price of oil. As always, AGC, its members,


and its advocates will be at the table to ensure that we have the necessary resources to keep California on the road towards a well-constructed future. 


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