ARTICLE 4.3. Transportation Funding Plan [163. - 164.56.]

Cal. Streets and Highways Code - SHC 4.3.
in effect

Cal. Streets and Highways Code - SHC § 163. Section 163.

The Legislature, through the enactment of this section, intends to establish a policy for the use of all transportation funds that are available to the state, including the State Highway Account, the Public Transportation Account, and federal funds. For the purposes of this section, “federal funds” means any obligational authority to be provided under annual federal transportation appropriations acts. The department and the commission shall prepare fund estimates pursuant to Sections 14524 and 14525 of the Government Code based on the following: (a) Annual expenditures for the administration of the department shall be the same as the most recent Budget Act, adjusted for inflation. (b) Annual expenditures for the maintenance and operation of the state highway system shall be the same as the most recent Budget Act, adjusted for inflation and inventory, or, when a maintenance plan has been enacted pursuant to Section 164.6, maintenance expenditures shall be based on planned expenditures in that plan. (c) Annual expenditure for the rehabilitation of the state highway system shall be the same as the most recent Budget Act, or, when a long-range rehabilitation plan has been enacted pursuant to Section 164.6, shall be based on planned expenditures in that long-range plan. (d) Annual expenditures for local assistance shall be the amount required to fund local assistance programs required by state or federal law or regulations, including, but not limited to, railroad grade crossing maintenance, bicycle transportation account, congestion mitigation and air quality, regional surface transportation programs, local highway bridge replacement and rehabilitation, local seismic retrofit, local hazard elimination and safety, and local emergency relief. (e) After deducting expenditures for administration, operation, maintenance, local assistance, safety, and rehabilitation pursuant to subdivisions (a), (b), (c), and (d), and for expenditures pursuant to Section 164.56, the remaining funds shall be available for capital improvement projects to be programmed in the state transportation improvement program.

Cal. Streets and Highways Code - SHC § 164. Section 164.

(a) Funds made available for transportation capital improvement projects under subdivision (e) of Section 163 shall be programmed and expended for the following program categories: (1) Twenty-five percent for interregional improvements. (2) Seventy-five percent for regional improvements. (b) Sixty percent of the funds available for interregional improvements under paragraph (1) of subdivision (a) shall be programmed and expended for improvements to state highways that are specified in Sections 164.10 to 164.20, inclusive, and that are outside the boundaries of an urbanized area with a population of more than 50,000, and for intercity rail improvements. (c) Not less than 15 percent of the amount of funds programmed under subdivision (b) shall be programmed for intercity rail improvement projects, including separation of grade projects. (d) Funds made available under paragraph (1) of subdivision (a) shall be used for transportation improvement projects that are needed to facilitate interregional movement of people and goods. The projects may include state highway, intercity passenger rail, mass transit guideway, or grade separation projects. (e) Funds made available under paragraph (2) of subdivision (a) shall be used for transportation improvement projects that are needed to improve transportation within the region. The projects may include, but shall not be limited to, improving state highways, local roads, public transit, intercity rail, pedestrian, and bicycle facilities, and grade separation, transportation system management, transportation demand management, soundwall projects, intermodal facilities, safety, and providing funds to match federal funds.

Cal. Streets and Highways Code - SHC § 164.1. Section 164.1.

(a) Federal funds derived from apportionments made to the state under Section 1101(a)(11) of the federal Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU; P.L. 109-59) for the coordinated border infrastructure program established under Section 1303 of that act shall be included and separately identified in the fund estimates prepared pursuant to Sections 14524 and 14525 of the Government Code, the interregional transportation improvement program submitted by the department pursuant to Section 14526 of the Government Code, and the state transportation improvement program adopted by the commission pursuant to Section 14529 of the Government Code. Except as otherwise provided in subdivision (b), these funds shall be programmed, allocated, and expended in the same manner as other federal funds made available for capital improvement projects in the state transportation improvement program. (b) Notwithstanding any other provision of law: (1) The programming, allocation, and expenditure of the funds described in subdivision (a) may be for any purpose authorized under federal law, including projects in Mexico. (2) The funds described in subdivision (a) shall not be subject to the distribution formulas and limitations described in Section 164. (3) The nonfederal match for the funds described in subdivision (a) may be programmed from any available local source, or any available state transportation funding source, including other state transportation improvement program funding, if the regional transportation planning agency concurs.

Cal. Streets and Highways Code - SHC § 164.6. Section 164.6.

(a) (1) The department shall prepare a State Highway System Management Plan. The plan shall include a 10-year state highway system rehabilitation plan for the rehabilitation or reconstruction, or the combination thereof, by the State Highway Operation and Protection Program, of all state highways and bridges owned by the state. The plan shall identify all rehabilitation needs for the 10-year period beginning on July 1, 1998, and ending on June 30, 2008, and shall include a schedule of improvements to complete all needed rehabilitation during the life of the plan not later than June 30, 2008. The plan shall be updated every two years beginning in 2000. (2) The State Highway System Management Plan shall also include a five-year maintenance plan that addresses the maintenance needs of the state highway system. The maintenance plan shall be updated every two years, concurrent with the rehabilitation plan described in paragraph (1). The maintenance plan shall include only maintenance activities that, if the activities are not performed, could result in increased State Highway Operation and Protection Program costs in the future. The maintenance plan shall identify any existing backlog in those maintenance activities and shall recommend a strategy, specific activities, and an associated funding level to reduce or prevent any backlog during the plan five-year period. (b) (1) The State Highway System Management Plan shall include specific quantifiable accomplishments, goals, objectives, costs, and performance measures, including for complete streets facilities, including pedestrian and bicycle facilities, consistent with the asset management plan required by Section 14526.4 of the Government Code. The plan shall contain strategies to control costs and improve efficiency of the State Highway Operation and Protection Program. (2) In 2027, as feasible, and continuing thereafter, the State Highway System Management Plan shall include specific quantifiable accomplishments, goals, objectives, costs, and performance measures for transit priority facilities, consistent with the asset management plan required by Section 14526.4 of the Government Code and the department’s transit policy and associated guidance. (c) The State Highway System Management Plan for rehabilitation and maintenance shall attempt to balance resources between State Highway Operation and Protection Program activities and maintenance activities in order to achieve identified goals at the lowest possible long-term total cost. If the maintenance plan recommends increases in maintenance spending, it shall identify projected future State Highway Operation and Protection Program costs that would be avoided by increasing maintenance spending. The department’s maintenance division shall identify highway maintenance projects and associated costs that allow it to achieve the requirements of this subdivision. (d) The draft State Highway System Management Plan shall be submitted to the commission for review and comments not later than February 15 of each odd-numbered year, and the final plan shall be transmitted by the department to the Governor and the Legislature not later than June 1 of each odd-numbered year. The department shall make the draft of its proposed plan available to regional transportation agencies for review and comment, and shall include and respond to the comments in the final plan. (e) The State Highway System Management Plan shall be the basis for the department’s budget request and for the adoption of fund estimates pursuant to Section 163.

Cal. Streets and Highways Code - SHC § 164.10. Section 164.10.

For purposes of subdivision (e) of Section 164.3, the eligible interregional and intercounty routes include all of the following: Route 1. Route 2, between the north urban limits of Los Angeles-Long Beach and Route 138. Route 4, between the east urban limits of Antioch-Pittsburg and Route 89. Route 5. Route 6. Route 7. Route 8. Route 9, between the north urban limits of Santa Cruz and the south urban limits of San Jose. Route 10, between the east urban limits of San Bernardino-Riverside and the Arizona state line.

Cal. Streets and Highways Code - SHC § 164.11. Section 164.11.

For purposes of subdivision (e) of Section 164.3, the eligible interregional and intercounty routes include all of the following: Route 12. Route 14. Route 15. Route 16, between the east urban limits of Sacramento and Route 49. Route 17, between the north urban limits of Santa Cruz and the south urban limits of San Jose. Route 18, between the City of San Bernardino and the junction with Routes 18 and 138 in Los Angeles County. Route 20. Route 25, between Route 146 in San Benito County and Route 101 in Santa Clara County. Route 28. Route 29.

Cal. Streets and Highways Code - SHC § 164.12. Section 164.12.

For purposes of subdivision (e) of Section 164.3, the eligible interregional and intercounty routes include all of the following: Route 36, between Route 5 and Route 395. Route 37, between the east urban limits of San Francisco-Oakland near Novato and the west urban limits of San Francisco-Oakland near Vallejo. Route 38, between the east urban limits of San Bernardino-Riverside and Route 18 west of Big Bear Lake. Route 40. Route 41, between Route 1 and Yosemite National Park. Route 44, between the east urban limits of Redding and Route 36. Route 46, between Route 1 and Route 99. Route 49, between Route 41 and Route 89.

Cal. Streets and Highways Code - SHC § 164.13. Section 164.13.

For purposes of subdivision (e) of Section 164.3, the eligible interregional and intercounty routes include all of the following: Route 50. Route 53. Route 58, between Route 5 and Route 15. Route 62. Route 63, between the north urban limits of Visalia and Route 180. Route 65, between the north urban limits of Bakersfield and Route 198 near Exeter, and between Route 80 and Route 99 near Yuba City. Route 68.

Cal. Streets and Highways Code - SHC § 164.14. Section 164.14.

For purposes of Section 164.3, the eligible interregional and intercounty routes include the following: Route 70, between Route 99 north of Sacramento and Route 395. Route 74. Route 78. Route 79, between Route 8 and Route 10. Route 80. Route 84, between Route 580 and Route 4. Route 86, between Route 111 in Brawley and Route 10. Route 88. Route 89.

Cal. Streets and Highways Code - SHC § 164.15. Section 164.15.

For purposes of Section 164.3, the eligible interregional and intercounty routes include all of the following: Route 94, except within the urban limits of the County of San Diego. Route 95, between Route 10 and the Nevada state line. Route 97. Route 98, between Route 111 and Route 7. Route 99, with routing to be determined via Route 70 or via Route 99 between Route 70 north of Sacramento and Route 149 north of Oroville. Route 101. Route 108, from Route 132 in Modesto to Route 120 east of Oakdale, and between Route 120 at Yosemite Junction and Route 395. Route 111, between the Mexico border near Calexico and Route 10 near Whitewater. Route 113, between Route 80 and Route 5. Route 116, between Route 1 and Route 12.

Cal. Streets and Highways Code - SHC § 164.16. Section 164.16.

For purposes of Section 164.3, the eligible interregional and intercounty routes include all of the following: Route 120, between Route 5 and Route 395. Route 126, between the east urban limits of Oxnard-Ventura-Thousand Oaks and Route 5. Route 127. Route 128. Route 129, between Route 1 and Route 101. Route 132, west of Route 99, and between Route 99 and Route 108. Route 138, between Route 5 and Route 14 in Los Angeles County and between Route 14 in Los Angeles County and Route 18 near Crestline in San Bernardino County. Route 139, between Route 299 and the Oregon state line. Route 246, between Route 1 and Route 101.

Cal. Streets and Highways Code - SHC § 164.17. Section 164.17.

For purposes of subdivision (e) of Section 164.3, the eligible interregional and intercounty routes include all of the following: Route 140, between the east urban limits of Merced and Yosemite National Park. Route 146. Route 149. Route 152, between Route 101 and Route 99. Route 154. Route 156, between Route 1 and Route 152.

Cal. Streets and Highways Code - SHC § 164.18. Section 164.18.

For purposes of subdivision (e) of Section 164.3, the eligible interregional and intercounty routes include all of the following: Route 160, between the north urban limits of Antioch-Pittsburg and the south urban limits of Sacramento. Route 168, between the east urban limits of Fresno and Route 168 at Florence Lake Road, and between Route 168 near Lake Sabrina and Route 395. Route 178, between the east urban limits of Bakersfield and Route 14. Route 180, between the east urban limits of Fresno and Kings Canyon National Park. Route 188. Route 190, between Route 65 and Route 127. Route 198, between Route 5 and the Sequoia National Park. Route 199.

Cal. Streets and Highways Code - SHC § 164.19. Section 164.19.

For purposes of Section 164.3, the eligible interregional and intercounty routes include the following: Route 203. Route 205. Route 207. Route 215. Route 239. Route 243. Route 267. Route 299, between Route 101 and Route 89, and between Route 139 and Route 395.

Cal. Streets and Highways Code - SHC § 164.20. Section 164.20.

For purposes of subdivision (e) of Section 164.3, the eligible interregional and intercounty routes include all of the following: Route 330, between the north urban limits of San Bernardino-Riverside and Route 18. Route 371. Route 395. Route 505. Route 580. Route 680. Route 905, except within the urban limits of San Diego.

Cal. Streets and Highways Code - SHC § 164.53. Section 164.53.

(a) A local agency may request authorization from the commission to make advance expenditures of funds, other than state or federal funds, for a project which is included in the priority list for the allocation of transit capital improvement funds pursuant to Section 99317 of the Public Utilities Code, or is included in the adopted state transportation improvement program, or is specifically authorized by Chapter 3 (commencing with Section 99620) of Part 11.5 of Division 10 of the Public Utilities Code. (b) If the commission approves a request submitted pursuant to subdivision (a), the approved advance expenditures shall be considered either part of the nonfederal share of project costs, or part of the match from public or private sources, for projects which are included in the transit capital improvement program pursuant to Section 99317 of the Public Utilities Code, or included in the state transportation improvement program, or which are authorized by Chapter 3 (commencing with Section 99620) of Part 11.5 of Division 10 of the Public Utilities Code. (c) The commission’s approval of a request pursuant to subdivision (b) does not, in and of itself, constitute an obligation to allocate state funds for the project. (d) The commission, in consultation with the department and local transportation officials, shall develop and adopt guidelines to implement this section. The guidelines shall include a requirement that the advance expenditure of funds will result in the completion of an operable segment of a transportation project. The acquisition of right-of-way needed either for a usable urban or commuter rail project or an operable segment of an urban or commuter rail project meets that requirement. (e) The commission shall prepare a report on the progress and impact of the advance expenditure program authorized by this section and shall include the report as an element of the annual report to the Legislature required pursuant to Sections 14535 and 14536 of the Government Code.

Cal. Streets and Highways Code - SHC § 164.56. Section 164.56.

(a) It is the intent of the Legislature to allocate seven million dollars ($7,000,000) annually to the Environmental Enhancement and Mitigation Program Fund, which is hereby created. (b) Local, state, and federal agencies and nonprofit entities may apply for and may receive grants, not to exceed five million dollars ($5,000,000) for any single grant, to undertake environmental enhancement and mitigation projects that are directly or indirectly related to the environmental impact of modifying existing transportation facilities or for the design, construction, or expansion of new transportation facilities. (c) Projects eligible for funding include, but are not limited to, all of the following: (1) Urban forestry projects designed to offset vehicular emissions of carbon dioxide. (2) Acquisition or enhancement of resource lands to mitigate the loss of, or the detriment to, resource lands lying within the right-of-way acquired for proposed transportation improvements. (3) Projects to mitigate the impact of proposed transportation facilities or to enhance the environment, where the ability to effectuate the mitigation or enhancement measures is beyond the scope of the lead agency responsible for assessing the environmental impact of the proposed transportation improvement. (d) Grant proposals shall be submitted to the Resources Agency for evaluation in accordance with procedures and criteria prescribed by the Resources Agency. The Resources Agency shall evaluate proposals submitted to it and prepare a list of proposals recommended for funding. The list may be revised at any time. Prior to including a proposal on the list, the Resources Agency shall make a finding that the proposal is eligible for funding pursuant to subdivision (f). (e) Within the fiscal limitations of subdivisions (a) and (b), the commission shall annually award grants to fund proposals that are included on the list prepared by the Resources Agency pursuant to subdivision (d). (f) Projects funded pursuant to this section shall be projects that contribute to mitigation of the environmental effects of transportation facilities, as provided for by Section 1 of Article XIX of the California Constitution.
Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026

Starting a business in California? California LLC guide: costs and requirements