GOODS MOVEMENT IN CALIFORNIA

1. GOODS MOVEMENT IN CALIFORNIA

2. California is facing a significant transportation infrastructure shortfall. California is using innovative approaches to address current and future impacts of increased trade volumes. It is about focused planning, a State vision, innovative financial approaches, and collaborative joint ventures. INTRODUCTION

3. ADMINISTRATION GOODS MOVEMENT POLICY • Generate jobs • Increase mobility/reduce traffic congestion • Improve air quality/protect public health • Enhance public and port safety • Improve California’s quality of life

4. GOODS MOVEMENT ACTION PLAN • The plan is a joint effort of the California Business, Transportation and Housing Agency (BTH), and the California Environmental Protection Agency (CalEPA). • The developmental goal has been a comprehensive, open and transparent process to achieve maximum stakeholder input. • The approach has evolved over time.

5. GOODS MOVEMENT ACTION PLAN PRINCIPLES • Undertake simultaneous and continuous improvement in infrastructure and mitigation. • Consider the 4 port-to-border corridors as an integrated system • Pursue excellence through technology, efficiency, and workforce development. • Develop partnerships to advance goals. • Promote trust, provide for meaningful public participation, address environmental justice concerns.

6. GOODS MOVEMENT CORRIDORS

7. GOODS MOVEMENT ACTION PLAN • The Action Plan is a response to: • Severe congestion at the Ports of Los Angeles and Long Beach that occurred in 2004 (and continued GROWTH!). • Public concern regarding community, health and environmental impacts of goods movement. • Importance of goods movement to the State’s economy and global competitiveness.

8. PROJECT CHALLENGES/MEETING THE NEEDS • How do we meet the need? • September 2005 Phase I Report identified 180 projects or groups of projects, totaling $47.3 billion. • January 2007 Final Phase II Report, in the “Preliminary List of Candidate Projects” identified 22 projects totaling $15 billion.

9. WEB SITES • Phase II was approved January 10, 2007. • The Phase I and Phase II Reports and other related materials may be accessed at http://www.arb.ca.gov/gmp/gmp.htm.

10. CONTEXT—GOVERNOR’S STRATEGIC GROWTH PLAN • California’s Strategic Growth Plan (SGP) is intended to lay the foundation for long-term investments in the State’s critical infrastructure needs. • It is a ‘down payment’ to jump start delivery of critical projects. More resources--including public investments and public/private joint ventures--will be needed over the long term.

11. SGP AND BALLOT PROPOSITIONS • $37.3 billion infrastructure package • $19.9 billion for transportation (Prop. 1B) • $ 2.9 billion for housing (Prop. 1C) • $10.4 billion for education (Prop. 1D) • $ 4.1 billion for levees improvement and flood control (Prop. 1E)

12. SB 1266Highway Safety, Traffic Reduction, Air Quality, andPort Security Fund of 2006 • State highway safety improvements and repairs • Freeway upgrades to reduce congestion • Local street and road repair • Seismic safety improvements to local bridges • Expansion of public transit • Air pollution reduction • Port anti-terrorism security improvements • $19.9 billion for transportation • To be administered by the California Transportation Commission (CTC)

13. SB1266 FUNDING SCHEME

15. HOW WERE AMOUNTS DETERMINED??

16. Trade Corridors Improvement Fund (TCIF) • $2 billion trade infrastructure program, with these guiding principles: • Identify the key trade corridors; • Balance the various criteria in Prop 1B; • Invest across modes; • Pursue partnerships; and • Program for deliverability, maximum benefit and optimum performance • Formal guidelines by the CTC in Spring/Summer 2007

17. Trade Corridors Improvement Fund (TCIF)

18. PUBLIC-PRIVATE PARTNERSHIPS • “P3” is an emerging and critical aspect of California’s innovative approach to funding needed infrastructure projects. • There are a number of proposed joint venture projects that will utilize innovative partnerships approaches. • Some projects will be primarily funded by the public sector, with private sector contributions. • Some projects will be primarily funded by the private sector, with public sector contributions.

19. POTENTIAL GOODS MOVEMENT PUBLIC-PRIVATE PARTNERSHIPS PROJECTS • Alameda Corridor East grade separations in Orange County • Other Southern California potential P3 projects include: • Gerald Desmond Bridge (Port of Long Beach) • Truck toll lanes in the Los Angeles (SCAG) region • SR-11 / Otay Mesa East POE

20. San Diego Border Region San Ysidro POE Otay Mesa POE

21. New Otay Mesa East POE

22. FINANCIAL FEASIBILITY STUDY

23. THEMES HEARD YESTERDAY • Corridor Focus • State and Local risk taking • National Infrastructure Bank: depoliticizing transportation decisions – CTC model • Criteria to judge projects for funding – include energy independence? • California is like a nation - ideal location for major national pilot

24. CONCLUSION California has major goods movement challenges. But, we are addressing them through a dynamic process that includes a State vision, focused planning, diverse joint ventures and other governmental investments, and collaborative partnerships.