California’s Electricity Crisis “You can run but you can’t hide…
California’s Infrastructure Crisis
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Transcript of California’s Infrastructure Crisis
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California’sInfrastructure
CrisisFebruary 5, 2012
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Statewide Transportation System Needs Assessment 2011
“California’s transportation system is in jeopardy.
Underfunding – decade after decade – has led to the decay of one of the State’s greatest
assets.” - California Transportation Commission 2011
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Neglected Improvements are Staggering
California’s unfunded needs are
- California Transportation CommissionStatewide Transportation Needs Assessment 2011
$295B through 2021.
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Caltrans Maintenance Needs are Growing
4 - Legislative Analyst’s Office, 2011
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Infrastructure Report Card
5 - Statewide Transportation Needs Assessment 2011
CALIFORNIA Pavement:
58% of California Roadways Require Rehabilitation or Pavement Maintenance
Bridges: 20% Require Major Maintenance or
Preventative Work 6% Require Complete Replacement
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Infrastructure Report Card
6 - Texas Transportation Institute
CALIFORNIA 6 of the Nation’s 10 Worst Urban Area
Pavement Conditions 14 of the Nation’s 20 Most Congested
Transportation Corridors 66% of California’s Major Urban
Highways are Congested
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Poor Road Conditions Cost Californian’s $13.9B
Annually $586 Per Motorist
Contribute to More Than One-Half of US Highway Fatalities:
More than Drunk Driving, Speeding or Failing to use Seat Belts7 - TRIP
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Population will Grow from 38MM to 44MM by 2020
VMT is growing 10 times faster than
lane miles. - Governor’s 2006 Strategic Growth Plan
Truck freight is expected to increase
75% by 2035. - Statewide Transportation Needs
Assessment 20118
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Funding Will Collapse in 2013
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Jobs
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Each $1B Invested in Transportation Creates approximately 30,000 Jobs
(15,000 Direct and Indirect Transportation Jobs & 15,000 Induced Jobs)
The Construction Industry is Reporting 20-40% Unemployment
- Federal Highway Administration
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Commerce at Risk 84% of U.S. Economy Dependent on
Transportation Infrastructure
Fully Funding Transportation Needs Would Increase California’s Gross State Product 5% – 7%
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- Statewide Transportation Needs Assessment 2011
- US Chamber Foundation Study
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Funding Solutions Encourage Public-Private Transportation Investment Reinstate Vehicle License Fee Annual Increase of Fuel User Fee Harvest Cap & Trade Fees Institute a Tire User Fee Institute VMT Fee 12
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Public-PrivateTransportation
Investment
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Public-Private Investment
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PUBLIC-PRIVATE TRANSPORTATION INVESTMENT
Encourage Privatization of Transportation Systems, when applicable
Support Appropriate Revenue Generation (Tolls or Other Mechanisms) to Attract Private Transportation Investment
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Transportation California Recommends: Adopting Legislation Necessary to
Attract Private Transportation Investment
California’s Goal Should be to Attract $1B of Private Investment into Transportation Infrastructure Annually
Recommendation
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PUBLIC-PRIVATE TRANSPORTATION INVESTMENT
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Vehicle License Fee (VLF)
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Transportation California recommends: Increase Vehicle License Fee to
Pre-2006 Rate Schedule 2% of Vehicle Value (currently .64%)
1.36% of the Taxable Value of California’s Vehicles Raises approx. $3.7B Annually
Recommendation
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VEHICLE LICENSE FEE (VLF)
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Fuel User Fee
SOLUTIONS
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Fuel User Fee Increase Will… Promote Innovation Decrease Dependency on
Foreign Oil Improve Air Quality Fund a Modern
Transportation System Create Jobs
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FUEL USER FEE
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Fuel User Fee Most Practical Funding
Solution Simple & Fair Easily Administrated In Concert with Sound
Energy Policy Surprisingly Inexpensive
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FUEL USER FEE
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Fuel User Fees Too Low
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FUEL USER FEE
California - 55¢ Per Gallon Fees Cover Only 50% of Road Maintenance &
Operations - Building America’s Future Transportation Infrastructure
Report 2011
Canada & Europe – $4.43 Per Gallon (Average)
Fuel User Fees are Green!
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Each 1¢ Fuel User Fee Costs the Average
Driver $5.54 Per Year Raises $200MM
Annually
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FUEL USER FEE
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Recommendation Transportation California
recommends: A Regular Annual Fuel User Fee
Increase of 8¢ Per Gallon 8¢ per Gallon Raises approx. $1.6B
Annually
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FUEL USER FEE
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Harvest Cap & Trade Fees
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Cap & Trade Fees
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CAP & TRADE FEES
California will Begin Collecting Fees Associated with Fossil Fuel-Related Air Pollution in 2012
Re-investing Cap & Trade Fees into California’s Transportation System will:
Improve Air Quality Reduce Emissions Serve the Goals of Cap and Trade Policy
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Transportation California recommends: Cap & Trade Fees Collected from
Transportation-Related Pollution be Directed to the Maintenance of California’s Transportation System
Cap & Trade Fees Could Raise $2B Annually
Recommendation
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CAP & TRADE FEES
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Tire User Fee
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Recommendation
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TIRE USER FEE
California Consumes approx. 35MM Tires Annually
Transportation California Recommends: A $10 Per Tire User Fee be Assessed
A $10 Per Tire Fee Raises approx. $350MM Annually
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Vehicle Miles Traveled (VMT)
Fee
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Recommendation
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VEHICLE MILES TRAVELED (VMT) FEE
Californian’s Travel approx. 350B Miles Each Year
Transportation California Recommends: A 1¢ Per Mile VMT Fee
1¢ Per Mile VMT Fee Raises $3.5B Annually
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Funding Solutions Raise Annually
Encourage Public-Private $1.0B Transportation Investment Reinstate Vehicle License Fee $3.7B Annual Increase of Fuel User Fee $1.6B Harvest Cap & Trade Fees $2.0B Institute a Tire User Fee $.35B Institute VMT Fee $3.5B
31$1B equals 30,000 Jobs
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Infrastructure investment will energize economic
performance! 32