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Trade Corridor Improvement Fund March 5, 2008

Southern California Consensus Group

• Represent 18 million residents

• LA area Ports and the Inland Empire generate over 718,000 California jobs

• Handle 85% of Containerized Cargo processed in the State

• Value of Freight: $313 Billion (2006)

• 1,200 premature deaths per year• TCIF offers an opportunity to provide seamless throughput of goods and improve air quality

Southern California Consensus Group

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Capital ProjectsEconomic Benefits

8.4%

12.8%

78.8%

LA/LB/Hu - Imports & Exports

Oakland - Imports & Exports

San Diego Border & Port - Imports & Exports

Total Trade Value Comparison Ports of Los Angeles/Long Beach/Hueneme,Oakland, & San Diego

Total Imports & Exports = $396.9

$312.6$312.6

$33.5$33.5

$50.8$50.8

Source: U.S. Customs Districts & U.S. Commerce Department (2006)

$ IN BILLIONS

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Port of LA/LB/Hu Port of Oakland San Diego Border & Port

Total Exports = $73.1

$48.1$48.1

$9.0$9.0

$16.0$16.0$264.5$264.5

$24.5$24.5

$34.8$34.8

Total Imports = $323.8

Total Trade Value Comparison Ports of Los Angeles/Long Beach/Hueneme,Oakland, & San Diego

$ IN BILLIONS

Source: U.S. Customs Districts & U.S. Commerce Department (2006) 6

Total Exports = $10.6

$6.2$6.2

$3.7$3.7

$0.7$0.7

56.7%5.6%

37.7%

Port of LA/LB/Hu Port of Oakland San Diego Border & Port

$4.5

$0.7$6.8

Total Exports = $12.0

Total Agricultural Exports Comparison of Customs District

$ IN BILLIONS

Source: U.S. Customs Districts & U.S. Commerce Department (2006) 8

Los Angeles San Francisco San Diego Port Only

Total Exports = $17.1

$11.4$11.4

$5.7$5.7

$0.3$0.3

$55.1$55.1$16.2$16.2

$0.2$0.2

Total Imports = $71.5

Source: BST Associates, data from US Dept of Commerce and WiserTrade (2006)Notes: LA Customs District includes the Ports of Los Angeles, Long Beach, & Hueneme. SF Customs District includes the Port of Oakland.

In-State Value of Containerized Trade California Customs District

$ IN BILLIONS

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Economic Benefit Criteria

• LAEDC Results

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For $2.2 Billion TCIF Investment

Generate $13.5 Billion of Economic Output

107,400 FTE one-yr jobs

$4.4 B in Wages

$370 Million of State Income Taxes

$60 Million of Local Income Taxes

Air Quality

Air Quality Analysis & Methodology

• SCAG Regional Transportation Model> System Performance

> Regional Emissions

• Standard Idling Reduction Equations for Grade Crossings

• SCAQMD Screening Tool for Localized Analysis> Distance to Receptors/Increase in Truck Volume

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Integral To Goals Of The Regional Transportation Plan

• Improves Movement of Goods and People

• Improves Regional Air Quality> Relieves Congestion/Improves System Efficiency

• Consistent with State Implementation Plan> TCIF Package Includes Transportation Control Measures

• Complements Comprehensive Regional Efforts> Simultaneous System Improvement & Environmental Mitigation

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Los Angeles/Inland Empire Corridor Projects

Project Deliverability & Eligibility

• 53 Projects > All to begin construction before December 31, 2013

• State Plans > Includes GMAP, CALMITSAC, ACE Trade Corridor Plan, Global Gateways Development

• Regional Plans > Includes SCAG RTP, Multi-County Goods Movement Action Plan

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Project Matching Funds

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Tier 1

TCIF Request: $1.7 B (36%)

Total Project Cost:

$4.8 B

TCIF Leverage

Over Match by $690 M

Tier 2

TCIF Request: $0.5 B (34%)

Total Project Cost:

$1.4 B

TCIF Leverage

Over Match by $241 M

Port Related Projects

• Truck delay reduced by 1,420 hrs/day

• Trucks comprise 50% of all traffic

• Ports cargo fee provides match

• Complements Ports Clean Truck Program; i.e., continuous and simultaneous transportation and environmental improvements

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Grade Separation Projects

• Eligible for TCIF as 1 of 6 types of goods movement projects in Proposition 1B (SB 1266)

• Significant safety and reliability benefits through elimination of train/auto and truck conflicts

• Eliminates truck delay at crossings when serving local distribution/warehouse centers

• Congestion Relief: reduces over 2,800 vehicle hours of delay/day• Projects of National and

Regional Significance (SAFETEA-LU)

• Infrastructure projects that are critical for community support to mitigate the impacts of increased freight

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Rail Projects

• Proposed Sidings Bottleneck relief for mainline freight

traffic Adds capacity and increases speed

for freight traffic

• Ports Rail Enhancements 2,300 hours reduced in daily vehicle

hours of travel for port trucks 64,500 miles reduced in daily vehicle

miles of travel for port trucks

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Highway Projects

• Truck Climbing Lanes

• Interchange Improvements

• Almost 1 of 5 trucks on the freeway experience delay due to congestion, resulting in a 50 to 250% increase in

the cost of transporting goods

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Next Steps

TCIF Guidelines

Low High

Los Angeles/Inland Empire Corridor $1,500 $1,700

San Diego/international Border 250 400

San Francisco Bay/Central Valley Corridor 640 840

Other Corridors 60 80

Administration Fees 40 40

Total $2,490 $3,060

TCIF Corridor Programming Ranges

(Range, in $ millions)

Timeline

• Applications FiledJanuary 17, 2008

• Staff RecommendationsMarch 13, 2008

• CTC AllocationsApril 10, 2008

• Budget Appropriations ProcessSummer 2008

How can the Legislature help?

• Send letter to the CTC

• Communicate with the Governor’s administration and CTC members

• Advocate through the budget process

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Questions & Answers