Transportation Asset Management and State Highway Operation and Protection Program (SHOPP)

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State Highway Operation and Protection Program (SHOPP)

Government Code §14526.5, amended in 1992 by Chapter 1177 (SB 1435), provides guidance to the Department for preparing the SHOPP:

14526.4.

  • (a) The department, in consultation with the commission, shall prepare a robust asset management plan to guide selection of projects for the state highway operation and protection program required by Section 14526.5. The asset management plan shall be consistent with any applicable state and federal requirements.
  • (b) The department may prepare the asset management plan in phases, with the first phase to be implemented with the 2016 state highway operation and protection program, and the complete asset management plan to be prepared no later than the 2020 state highway operation and protection program.
  • c) In connection with the asset management plan, the commission shall do both of the following:

    1. Adopt targets and performance measures reflecting state transportation goals and objectives.
    2. Review and approve the asset management plan, including the final version of the first phase and the complete plan prepared by the department pursuant to subdivision (b).
  • (d) As used in this section, "asset management plan" means a document assessing the health and condition of the state highway system with which the department is able to determine the most effective way to apply the state's limited resources.

14526.5.

  • (a) Based on the asset management plan prepared and approved pursuant to Section 14526.4, the department shall prepare a state highway operation and protection program for the expenditure of transportation funds for major capital improvements that are necessary to preserve and protect the state highway system. Projects included in the program shall be limited to capital improvements relative to maintenance, safety, and rehabilitation of state highways and bridges that do not add a new traffic lane to the system.
  • (b) The program shall include projects that are expected to be advertised prior to July 1 of the year following submission of the program, but which have not yet been funded. The program shall include those projects for which construction is to begin within four fiscal years, starting July 1 of the year following the year the program is submitted.
  • (c) The department, at a minimum, shall specify, for each project in the state highway operation and protection program, the capital and support budget, as well as a projected delivery date, for each of the following project components:

    1. Completion of project approval and environmental documents.
    2. Preparation of plans, specifications, and estimates.
    3. Acquisition of rights-of-way, including, but not limited to, support activities
    4. Start of construction.
  • (d) The program shall be submitted to the commission not later than January 31 of each even-numbered year. Prior to submitting the plan, the department shall make a draft of its proposed program available to transportation planning agencies for review and comment and shall include the comments in its submittal to the commission.
  • (e) The commission may review the program relative to its overall adequacy, consistency with the asset management plan prepared and approved pursuant to Section 14526.4 and funding priorities established in Section 167 of the Streets and Highways Code, the level of annual funding needed to implement the program, and the impact of those expenditures on the state transportation improvement program. The commission shall adopt the program and submit it to the Legislature and the Governor not later than April 1 of each even-numbered year. The commission may decline to adopt the program if the commission determines that the program is not sufficiently consistent with the asset management plan prepared and approved pursuant to Section 14526.4.
  • (f) Expenditures for these projects shall not be subject to Sections 188 and 188.8 of the Streets and Highways Code. Plans and Guidelines

Commission SHOPP Actions

Senate Bill 1 (SB1) increased the Commission’s responsibility, accountability, and transparency with regard to the adoption and oversight of the State Highway Operation and Protection Program (SHOPP). The additional SB 1 SHOPP investment, estimated at approximately $1.5 billion annually, is specifically earmarked to improve the condition of the State Highway System (SHS); and an additional $400 million annually identified specifically for maintenance and rehabilitation of bridges and culverts. SB 1 requires the Commission to adopt and manage the SHOPP in a transparent and accountable manner, similar to the State Transportation Improvement Program (STIP), the Proposition 1B bond programs, and other programs under the Commission’s purview.

The SHOPP is informed by the Transportation Asset Management Plan (TAMP). The TAMP is required by Senate Bill 486 (SB 486) (DeSaulnier, Chapter 917, Statutes of 2014) and Caltrans may prepare the TAMP in phases, with the first phase to be implemented with the 2016 state highway operation and protection program, and the complete asset management plan to be prepared no later than the 2020 state highway operation and protection program. The TAMP is a strategic and systematic process for the operation, maintenance and improvement of physical infrastructure assets that form the SHS. The TAMP includes asset inventory, condition assessments, performance targets, life-cycle planning, performance scenarios and investment strategies for pavement, bridges, culverts, and Transportation Management System elements, and other assets. The TAMP is one of the mechanism by which Caltrans is held accountable for the efficient investment of public funds to maintain and improve the condition of the highways.

SB 1 codified performance measures and targets for the four primary TAMP asset classes: pavement, bridges, culverts, and transportation management systems (TMS) elements. The performance targets included in SB 1 direct that over the next ten years not less than:

  • 98 percent of pavement on the state highway system be in good or fair condition
  • 90 percent of culverts be in good or fair condition
  • 90 percent of TMS units be in good condition
  • An additional 500 bridges be fixed

Caltrans is required to report to the Commission on expenditures and progress towards achieving these performance targets. Findings will be included in the Commission’s annual report to the Legislature. To ensure near-term progress is made towards achieving these long-term goals, in October 2017, the Commission, in working with Caltrans, required the TAMP to include intermediate annual benchmarks against which the Commission will evaluate progress towards meeting performance goals.

Additional accountability is established through Commission-adopted SHOPP guidelines and Federal regulations that require two- and four-year targets be established by May 2018 for pavement and bridges.

Based on the TAMP prepared by Caltrans and approved by the Commission as required by SB 486, Caltrans prepares the four-year SHOPP for the expenditure of transportation funds for major capital improvements that are necessary to preserve and protect the state highway system. Projects included in the program shall be limited to improvements relative to the maintenance, safety, operation, and rehabilitation of state highways and bridges that do not add a new traffic lane to the system.

At a minimum, for each project in the SHOPP, the capital and support budget, as applicable, for each project phase is included:

  • Project approval and environmental documents, support only,
  • Plans, specifications, and estimates, support only,
  • Rights-of-way, and
  • Construction.

In addition, for each project in the SHOPP, a projected delivery date for each of the following components is included:

  • Project approval and environmental document completion,
  • Plans, specifications, and estimates completion,
  • Right-of-way certification, and
  • Start of construction.

Caltrans submits its proposed program to the Commission not later than January 31 of each even-numbered year. Prior to submitting its proposed program, Caltrans makes a draft of its proposed SHOPP available to transportation planning agencies for review and comment and includes the comments in its submittal to the Commission.

The Commission reviews the proposed program relative to its overall adequacy, consistency with the TAMP and funding priorities, the level of annual funding needed to implement the program, and the impact of those expenditures on the state transportation improvement program. After a finding of consistency with the TAMP, the Commission adopts the SHOPP and submits it to the Legislature and the Governor not later than April 1 of each even-numbered year. The Commission may decline to adopt the program if the Commission determines that the program is not sufficiently consistent with the Commission-approved TAMP and is authorized to make recommendations for improvement and to withhold future project allocations if it determines that funds were not appropriately spent.

As part of the Commission’s review of the SHOPP, the Commission shall hold at least one hearing in northern California and one hearing in southern California regarding the proposed program. The Commission’s hearings for the upcoming 2018 SHOPP are scheduled for February 28, 2018, in Sacramento for Northern California and March 22, 2018, in the City of Orange for Southern California.

Beginning July 1, 2017, to provide sufficient and transparent oversight of Caltrans’ capital outlay support resources composed of both state staff and contractors, the Commission is required to allocate Caltrans’ capital outlay support resources by project phase for the SHOPP, including preconstruction. Through this action, the commission provides public transparency for the Caltrans’ budget estimates, increasing assurance that the annual budget forecast is reasonable.

Also beginning July 1, 2017, for a project that experiences increases in capital or support costs above the amounts in the Commission’s allocation, the Commission established a threshold for requiring a supplemental project allocation. The threshold that the Commission established for supplemental project allocations ensures efficiency and is necessary so that projects are not unnecessarily delayed. The Commission implemented these provisions with the approval of Commission Resolution G-12 in January of 2016.

Meeting the transparency and accountability requirements, along with asset performance measures and goals, requires a fundamental change in the development and management of the SHOPP. Procedures to address these changes are encompassed in the Interim SHOPP guidelines and TAMP guidelines, both of which were adopted by the Commission in June 2017.

Asset Management

SB 486 (DeSaulnier, Chapter 917, Statutes of 2014) requires Caltrans, in consultation with the Commission, to prepare a robust asset management plan to guide selection of projects for the State Highway Operation and Protection Program (SHOPP). Government Code sections 14526.4, 14526.5, and 14526.6 provides guidance to the Department for preparing the Asset Management Plan and the SHOPP. An asset management plan is a document that assesses the health and condition of the state highway system with which the Department determines the most cost effective way to apply the state’s limited resources. The asset management plan shall be consistent with any applicable state and federal requirements. The Commission approves the asset management plan and adopts targets and performance measures to ensure state transportation goals and objectives are addressed.

Caltrans prepares the SHOPP, the State's "fix it first" program, to rehabilitate and reconstruct the State Highway System, based on the asset management plan for the expenditure of transportation funds for major capital improvements that are necessary to preserve and protect the state highway system. Projects included in the SHOPP shall be limited to capital improvements relative to maintenance, safety, operational improvements, and rehabilitation of state highways and bridges that do not add a new mainline traffic lane.

The SHOPP is a four-year document of projects and is updated every two years. SHOPP projects are identified through periodic condition assessments and field reviews, through the biennial Ten-Year SHOPP Plan, are guided by the developing Asset Management Plan, and constrained to the funding in the adopted Fund Estimate. Funding for SHOPP projects is a mixture of State and federal funds, including the Road Maintenance and Rehabilitation Account created by SB 1.

The SHOPP shall include projects that are expected to be advertised prior to July 1 of the year following submission of the program, but which have not yet been funded. The SHOPP shall also include projects for which construction is to begin within four fiscal years, starting July 1 of the year following the year the program is submitted.

Caltrans, at a minimum, shall specify the capital and support budget and a projected delivery date for each project in the SHOPP for each of the following project components:

  • Completion of project approval and environmental documents.
  • Preparation of plans, specifications, and estimates.
  • Acquisition of rights-of-way, including, but not limited to, support activities.
  • Start of construction.

The SHOPP shall be submitted to the Commission not later than January 31 of each even-numbered year. Prior to submitting the plan, Caltrans shall make a draft of the proposed SHOPP available to the various regional transportation planning agencies for review and comment and shall include these comments in its submittal to the Commission.

The Commission may review the SHOPP relative to its overall adequacy, consistency with the asset management plan, funding priorities, the level of annual funding needed to implement the program, and the impact of those expenditures on the STIP. The Commission shall adopt the SHOPP and submit it to the Legislature and the Governor not later than April 1 of each even-numbered year. The Commission may decline to adopt the SHOPP if the commission determines that it is not sufficiently consistent with the asset management plan.

Legislation

  • SB 486 (DeSaulnier, Chapter 917, Statutes of 2014)
  • SB 1 (Beal, 2017)

Plans and Guidelines

Program

Reports

For updated SHOPP reports and other information, please go to the Caltrans' SHOPP website at http://dot.ca.gov/hq/transprog/shopp.htm

Commission Contact

For additional Transportation Asset Management and State Highway Operation and Protection Program (SHOPP) information, please contact:

Rick Guevel
Associate Deputy Director
California Transportation Commission
Phone: (916) 653-0161