The Barbed Wire - December 4, 2015

Congress Passes Long-Term Transportation Bill

After slightly more than a year of passing short-term extensions in spending authority and General Fund transfers for the Federal Highway Trust Fund, Congress has passed a long-term highway, bridge, transit, and rail funding bill.  The bill, referred to as the “Fixing America’s Surface Transportation Act” or FAST Act, reflects reconciliation between the two houses of Congress.  On Thursday, October 3, the measure gained passage in the Senate with both Senator Boxer and Senator Feinstein voting “aye.”  This was preceded by approval in the House whereby all members of the RCRC delegation voted “aye” with the exception of Representative Tom McClintock (R-Placer).  The FAST Act is a fully-paid-for $305 billion, five-year surface transportation bill, of which California is anticipated to receive approximately $26 billion between 2016-2020 to fund a variety of transportation projects.  

The FAST Act largely addresses several critical county issues RCRC has advocated for over the last two years.  Specifically, the FAST Act provides increased funding for local and regional transportation priorities as well as increased bridge funding.  The Act also makes meaningful reforms to the environmental planning and review process.  More detail is provided below on some of the key highlights of importance to California’s counties.

Surface Transportation Program: The FAST Act increases funding for the new Surface Transportation Block Grant Program (STBGP) and, just as importantly, increases the share that will be directed to local jurisdictions from 50 to 55 percent over the life of the act.  The Transportation Alternatives Program and Recreational Trails programs are now contained into the STBGP and receive dedicated funding to support active transportation and trail projects.  In total, the FAST Act provides roughly $58.3 billion nationwide over the five years to fund a variety of state and local transportation projects, including bridges, alternative transportation, and recreational trails.  Early estimates anticipate roughly $28 billion being directly sub-allocated to local agencies across the country.

Bridge Funding: While the Senate DRIVE Act proposed funding off-system bridges off-the-top of STP, which would have reduced the local STP share, the FAST Act preserves the requirement that off-system bridges be funded from the State share.  This provision will ensure that the 5 percent increase in the local STP share materializes.  Additionally, the FAST Act restores the 30 percent reduction in bridge funding made under MAP-21 and makes local on-system bridges eligible for funding under the National Highway Performance Program.

Rural Road Safety: Despite having included provisions to address rural road safety in both the Senate and House bills, the FAST Act has no new provisions for addressing fatality rates on rural roadways.  As such, the MAP-21 provision requiring states to invest in safety projects if fatality rates increase will remain intact.  

Project Delivery: The FAST Act establishes a new pilot program that enables states with environmental laws and regulations more stringent than National Environmental Policy Act to rely on those state laws.  Although California already participates in a similar program, there are additional reforms in the FAST Act that are intended to further expedite and streamline planning and delivery of transportation projects.

Road User Charge: The FAST Act makes a $95 million investment to states and/or a consortium of states to study alternative user-based transportation funding mechanisms, including $15 million for Fiscal Year 2016 and $20 million for each Fiscal Years 2017 through 2020.  We anticipate these funds will help offset the cost for states like California and Oregon who are taking action to study and implement an alternative transportation funding mechanism commonly referred to as a road user charge based on vehicle miles traveled.

Tax-Exempt Financing for WIFIA Projects: While unrelated to the Federal surface transportation program, the FAST Act amends the Water Infrastructure Finance and Innovation Act (WIFIA), a federal loan guarantee program adopted in the 2014 Water Resources Reform and Development Act for water infrastructure projects assisted by EPA and the U.S. Army Corps of Engineers.  The new provision removes the ban on using tax-exempt municipal bond funding for the non-federal share of project costs.  The ban is considered a deterrent for water agencies to utilize the fledgling WIFIA program since many projects are funded with tax-exempt bonds.  The WIFIA program provides long-term, low-interest loans for large water infrastructure projects over $20 million that are unable to access funding through their State Revolving Loan programs.

State Releases Gray Wolves Conservation Plan

The California Department of Fish and Wildlife (CDFW) has released a draft Conservation Plan (Plan) for Gray Wolves in California in response to petitions to list the gray wolf population as endangered under the California Endangered Species Act.  While California has not had a native gray wolf population for nearly a century, documented incidents of gray wolves entering the state from Oregon spurred wildlife advocates to petition for special protections for the species in 2012.  More recently, a mated pair of gray wolves with three pups, now known as the Shasta Pack, was verified as established in Siskiyou County.

The release of the Plan comes just one week before the California Fish and Game Commission makes its final decision on whether to add the gray wolf to the California endangered species list.  Many stakeholders, including RCRC, have argued that listing is premature considering that the gray wolf is no longer technically a native species to California, and is, in fact, increasing in number rather than declining.  It is unclear what impact listing the species will have on the Plan, since certain nonlethal management options included in the draft may no longer be allowable for a protected species.

The CDFW has scheduled three public workshops on the Plan: Yreka on January 21, 2016, Long Beach on January 26, 2016, and Sacramento on February 1, 2016, each to be held from 5-8 p.m.  Public comment is due on February 15, 2016.  The press release on the draft Plan, including links to the document and information on the public workshops, can be accessed here.

California Earned Income Tax Credit

Governor Brown signed into law the first-ever California Earned Income Tax Credit (CalEITC) to provide a refundable tax credit for working families.  This new benefit will boost the income of an estimated 825,000 eligible families and 2 million individuals, fostering economic opportunity and financial security for California’s working families and individuals.  

Additional information regarding this benefit, including eligibility criteria and tools to assess the potential impact in your county, can be accessed here.

Western Governors Weigh in on Western Drought Legislation

Last week, the Western Governors' Association (WGA) sent a letter to Senate Energy and Natural Resources Chairwoman Lisa Murkowski (R-AK) and Ranking Member Maria Cantwell (D-WA) with some suggestions for the West-wide drought bill that is currently under consideration.  The letter to the leaders of the Senate Energy and Natural Resources Committee was signed by Wyoming Gov. Matt Mead (R) and Montana Gov. Steve Bullock (D), WGA's chairman and vice chairman, respectively.  

The WGA proposes creating incentives for interstate water management policies; strengthening federal efforts to collect drought and water data; streamlining information across agencies and facilitating the use of current data; and providing for water infrastructure investment through loan guarantees, revolving funds, water trust funds and other tools.

The WGA also suggests that western drought legislation include a budget-neutral federal loan program that would provide financing to states, as well as public and private entities.  In addition, the governors encourage Congress to authorize federal agencies to provide technical and financial support to develop state plans on water use. 

House and Senate Leaders Remain Optimistic About FY 2016 Funding Bill

With nine days remaining until temporary funding for Fiscal Year 2016 expires on December 11, 2015, leaders in the House and Senate expressed renewed optimism that they will reach agreement on an Omnibus Appropriation Bill.  

None of the 12 annual appropriation bills have passed the House and Senate or been signed by the President.  Legislators agreed on increased spending limits last month, leaving approximately 250 policy riders as hurdles to a final bill.  Senate Minority Leader Harry Reid (D-NV) refers to them as “vexatious poison pills,” yet notes that their number has been reduced to about 100.  Chief among the contentious riders are prohibitions for funding the Administration Clean Power Plan, the rule to redefine Waters of the U.S., and the plan to admit refugees from Syria.  House Majority Leader Kevin McCarthy (R-CA) has indicated that the House expects to be in session until December 18, 2016, increasing speculation that another short-term Continuing Resolution could be adopted to extend the deadline another week.

VA Makes Changes to Veterans Choice Program

This week, the Department of Veterans Affairs (VA) announced a number of changes to the Veterans Choice Program (Program), which will allow more veterans to seek care outside of the VA health system and use private healthcare providers and facilities.  Previously, a veteran had to meet several criteria to be eligible for the program.  Under the new requirements, a veteran is eligible for the Program if it will take more than 30 days to get an appointment at a VA facility, or if travel to a facility requires air, boat, or ferry transportation.  

“As we implement the Veterans Choice Program, we are learning from our stakeholders what works and what needs to be refined,” said VA Secretary Robert A. McDonald.  “It is our goal to do all that we can to remove barriers that separate veterans from the care they deserve.”

To date, more than 400,000 medical appointments have been scheduled since the Program went into effect on November 5, 2014.  Additional details about the Program can be accessed here.

BULLETIN BOARD

USDA Rural Development Programs Webinar

United States Department of Agriculture (USDA) Secretary Tom Vilsack is hosting a webinar for rural mayors to provide information on the USDA’s rural development programs.  Participants will receive information about the resources available to support rural communities and learn about additional grant and loan programs available.  Additional information on the webinar can be accessed here.

Implementing Green Infrastructure in Rural Communities

The Environmental Protection Agency will host a webcast on December 8, 2015 from 10 a.m. to 11:30 a.m. titled “Ahead of the Curve – Implementing Green Infrastructure in Rural and Growing Communities.”  The webcast will showcase two communities, Monona, Iowa, and Clarkesville, Georgia, that are ahead of the curve in using green infrastructure to address some of their stormwater management challenges.  Additional information and registration can be accessed here.

KEEPING UP

Assemblyman Henry Perea Will Resign Seat to Become Capitol Advocate

Click here.

REGULATORY UPDATE

RCRC members are encouraged to submit comments on regulatory matters to state and federal regulatory bodies, and to provide a copy to RCRC’s Government Affairs staff.  Click “Read More” to access information related to the current status of regulations impacting California’s rural counties.  

Draft Conservation Plan for Gray Wolves in California: Provides strategies for habitat improvement, species protection, and management of gray wolves in California.  Agency: California Department of Fish and Wildlife Status: Draft available for public comment, January workshops scheduled in Yreka, Long Beach and Sacramento.  Comment period ends February 15, 2016.  Information on the draft plan and related documents can be accessed here.  RCRC Comments: RCRC is seeking member county input.  RCRC Advocate: Staci Heaton sheaton@rcrcnet.org

Addition of Gray Wolf to List of California Endangered Species:  Adds the gray wolf to the list of endangered species under the California Endangered Species Act.  Agency: California Fish and Game Commission Status: Comment period ends December 7, 2015, Commission decision scheduled for December 10, 2015 in San Diego.  Proposed regulatory language and related documents can be accessed here.  RCRC Comments: Click here.  RCRC Advocate: Staci Heaton sheaton@rcrcnet.org

Proposed Exceptional Events Rule Revisions and Draft Wildfire Guidance: Revises the Exceptional Events Rule to clarify demonstration of events such as prescribed burns and wildfires, provides guidance to air agencies on procedures.  Agency: United States Environmental Protection Agency Status: Draft available for public comment, comments due January 19, 2016.  Proposed regulatory language and related documents can be accessed here.  RCRC Comments: RCRC is seeking member county input.  RCRC Advocate: Staci Heaton sheaton@rcrcnet.org