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The passage of Senate Bill 45 substantially changed the process by which state and federal transportation funds are allocated, placing most of the responsibility for planning and prioritizing project funding in the hands of local and regional agencies rather than the state. To improve efficiency and reduce congestion, the Carquinez Bridge's first dedicated electronic toll collection lane opened in August.
The state’s gas tax reached 18 cents a gallon. After the January 17 Northridge earthquake in Los Angeles, Caltrans reconstructed Interstate 5/State Route 14, the Gavan Canyon Bridge, and the Santa Monica Freeway Interstate 10 in record time.
The state gas tax increased to 14 cents a gallon with a yearly increase of 1 cent a year for four more years. A State Master Plan for Transportation was adopted, with a focus on reducing traffic congestion and an emphasis on expanding bus, rail and other public transit systems instead of adding more freeways.