Existing law vests the Department of Transportation with full possession and control of the state highway system and associated property. Existing law generally requires proceeds from the sale of excess state highway property to be made available for other highway purposes. Existing law generally requires the California Transportation Commission to program available funding for transportation capital projects, other than state highway rehabilitation projects, through the State Transportation Improvement Program process, with available funds subject to various fair share distribution formulas. Existing law, in certain cases, requires the commission to instead reallocate funds from canceled state highway projects to a local alternative transportation improvement program within the same county and exempts those funds from the fair share distribution formulas that would otherwise apply.

This bill, with respect to planned state transportation facilities over the Feather River in the City of Yuba City and the Counties of Sutter and Yuba, which facilities are no longer planned to be constructed, would authorize the affected local agencies, acting jointly with the transportation planning agency having jurisdiction, to develop and file with the commission a local alternative transportation improvement program that addresses transportation problems and opportunities in the area that was to be served by the planned state facilities. The bill would require all proceeds from the sale of excess properties acquired by the department for the canceled state facilities, less any reimbursements due to the federal government and costs incurred in the sale of those excess properties, to be allocated by the commission to fund regional priorities.