SB 1 Transportation Package- What This Means For the Trucking Industry

As was reported late Thursday night on April 6, the California Senate and Assembly both reached an agreement on the transportation funding package contained in SB 1. It's being reported this legislation will be signed by the Governor sometime next week. 

 

As you know, CTA was actively engaged throughout the process and much of the 3 years while the Governor worked with leaders of the Legislature on a transportation funding package. 

 

In an effort to best describe how the transportation package impacts the trucking industry CTA has put together the following summary for members to review. 

 

* First, road repair and maintenance, congestion relief and freight infrastructure are the funding plan's clear priorities. We rely on our roads and highways to service our customers and ATRI estimates that delays from congested roadways costs your company $65/hr. In 2015, damage to a single bridge on I-15 was estimated to cost the industry $2.5 million a day in detours and delays. These dollars will ensure the necessary resources are available to keep your trucks moving on the most efficient routes possible. 

* Second, no weight fee increases and trucking is exempt from a new VLF-style fee based on vehicle value. (Follows CTA's long standing policy on OPPOSING Weight Fee and VLF increases)

* Third, to offset trucking industry costs, the final package includes a guaranteed minimum "useful life" for the investment you have made in clean trucks so that you can make investments to upgrade your fleet in confidence without wondering when and where the rug will be pulled out from under you. (CTA's Board of Directors established the Useful Life concept in 2015.)

* 12c added gasoline excise to road repair tied to CPI

* New vehicle user fee based on value of vehicle (Following CTA's established policy- commercial trucks exempt)

* New zero emission vehicle reg fee 

* 20c added diesel excise to road repair/freight corridors tied to CPI Increase begins November 2017. - (Follows CTA's Board of Directors approved policy of supporting a diesel excise tax increase for transportation funding purposes)

* 4% added diesel sales to transit tied to CPI- Increase begins November 2017.

* No weight fee increase (Follows CTA's long standing policy on opposing truck weight fee increases)

* Truck equipment useful life language: No retrofitting or replacement of trucks until later of 13 years or 800,000 miles, with cap of 18 years from the date the engine is certified by CARB/EPA for use applied to rules adopted/amended after 2017- (CTA's Board of Directors approved Useful Life concept)

* Incorporation of DMV/CARB registration tie-in (CTA sponsored bill SB174, CTA's Board of Directors approved policy of tying CARB compliance with DMV registration)

* New revenues constitutionally protected for transportation

 

* $10.8b over ten years from diesel/commercial

* $40.9b over ten years from gasoline/private passenger

* Maintains traditional revenue split between light duty/commercial sources (80/20)

* $30b to State highway and local road repair and maintenance

* $4b to bridge and culvert repair and maintenance 

* $3b to newly created freight fund for priority freight corridor improvements

* $2.5b to congestion relief projects

* Not less than 98 percent of pavement on the state highway system 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.

A significant tax increase isn't something to be taken lightly. At the direction of the CTA Board, the Association was at the table from day one of this deal. As a result, many longstanding CTA Board of Directors approved policies and positions are reflected in the final legislation.

If you need additional information or have any questions, contact Eric Sauer at esauer@caltrux.org.