BILL NUMBER: AB 2744 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 8, 2008
INTRODUCED BY Assembly Member Huffman
(Coauthors: Assembly Members DeSaulnier, Hancock, Lieber,
Swanson, and Torrico)
(Coauthor: Senator Torlakson)
FEBRUARY 22, 2008
An act to amend Sections 8502, 8503, 8504, 8505, 8506,
8507, 8508, 8509, and 8510 add Section 66538 to the
Government Code, and to repeal Chapter 12 (commencing with Section
8500) of Part 2 of Division 2 of the Revenue and Taxation Code,
relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2744, as amended, Huffman. Metropolitan Transportation
Commission: fee: motor vehicle fuel.
(1) Under existing law, the Metropolitan Transportation Commission
is created to provide comprehensive regional transportation planning
for the 9-county region comprising the commission's jurisdiction.
Generally, the commission is responsible for planning, approving, and
carrying out various transportation-related activities within the
region, including functions pertaining to highways, toll bridges, and
transit systems.
The
Existing law authorizes the commission is
authorized to impose a tax on the privilege of selling
within the region motor vehicle fuel, as defined, excluding motor
vehicle fuel used to power aircraft, upon approval of the measure by
the voters within the region at an election.
This bill would repeal this authorization. It would instead
authorize the commission to impose a fee on each gallon of
motor vehicle fuel, as defined, delivered into the fuel supply tank
or tanks of a motor vehicle operated on the streets or highways
in the region , excluding motor vehicle fuel used to
power aircraft, for a 25-year period. The bill would
require the commission to adopt a regional
transportation/climate transportation and climate
protection expenditure plan for the revenues derived from the
fee, if it is imposed. The fee would be levied at a rate established
by the commission, but not exceeding $0.10 per gallon.
The commission would be authorized to impose the fee upon approval
of the measure imposition by the
voters within the region at the election.
The bill would require the commission to contract with the State
Board of Equalization to administer the fee and to create a fund
into which fee revenues would be deposited .
The bill would impose a state-mandated local program by requiring,
upon the request of the commission, the board of supervisors of each
county and city and county within the region to submit to the voters
at a local election consolidated with a statewide primary or general
election specified by the commission a measure, adopted by the
commission, authorizing the commission to impose the fee for a
25-year period. The bill would require the commission to reimburse
each county and city and county in the region for the cost of
submitting the measure to the voters. The bill would provide that
these costs shall be reimbursed from revenues derived from the fee if
the measure is approved by the voters and from any available funds
of the commission if the measure is not approved.
(2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that the Legislature finds there is no
mandate contained in the bill that will result in costs incurred by a
local agency or school district for a new program or higher level of
service which require reimbursement pursuant to these constitutional
and statutory provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 66538 is added to the
Government Code , to read:
66538. (a) The Legislature finds and declares all of the
following:
(1) The California Global Warming Solutions Act of 2006 (Division
25.5 (commencing with Section 38500) of the Health and Safety Code)
requires California to reduce statewide greenhouse gas emissions to
1990 levels by 2020.
(2) The transportation sector is responsible for approximately 40
percent of statewide greenhouse gas emissions and significant
degradation of public health and environmental quality due to air and
water pollution.
(3) Fully 50 percent of the bay area's greenhouse gas emissions
come from the transportation sector, making transportation the
leading contributor of climate change pollution in the bay area.
(4) The Department of Finance has determined that the population
of the bay area is rapidly growing and will reach almost nine million
by 2030. According to the Metropolitan Transportation Commission,
average weekday daily vehicle miles traveled is projected to increase
41 percent between 2000 and 2030.
(5) Accordingly, it is the intent of the Legislature to allow bay
area voters to decide whether to alleviate burdens on the global
climate by imposing a fee on motor vehicle fuel and using the funds
derived from that fee to reduce and mitigate climate changing
emissions from transportation.
(b) For purposes of this section, the following definitions apply:
(1) "Commission" means the Metropolitan Transportation Commission,
which has the same meaning as that term is described in Section
66502.
(2) "District" means the Bay Area Air Quality Management District,
which has the same meaning as that term is described in Section
40200 of the Health and Safety Code.
(3) "Fee" means a fee imposed on motor vehicle fuel to mitigate
greenhouse gas pollution caused by emissions from the consumption of
motor vehicle fuel, by reducing emissions.
(4) "Greenhouse gas" and "greenhouse gases" have the same meanings
as those terms are defined in subdivision (g) of Section 38505 of
the Health and Safety Code.
(5) "Motor vehicle" means and includes every self-propelled
vehicle operated or suitable for operation on a public street or
highway in the bay area.
(6) "Motor vehicle fuel" means gasoline or any other combustible
liquid, regardless of the name by which the liquid is known or sold,
the chief use of which in this state is for the propulsion of motor
vehicles.
(7) "Transportation and climate protection expenditure plan" means
the expenditure plan adopted by the commission and the district and
approved by voters.
(c) If approved by the voters of the bay area pursuant to
subdivision (e), the commission may impose a greenhouse gas
mitigation fee on each gallon of motor vehicle fuel that is delivered
into the fuel supply tank or tanks of a motor vehicle in the region.
The fee shall be levied at a rate established by the commission,
which shall not exceed ten cents ($0.10) per gallon. Commencing on
January 1 of the year following the election approving the fee, the
fee may be imposed for a period not to exceed 25 years.
(d) (1) Prior to imposing the fee, the commission and district
shall jointly adopt a regional transportation and climate protection
expenditure plan for the revenues derived from the fee. The
transportation and climate protection expenditure plan shall fund
programs and projects to cost effectively reduce greenhouse gas
emissions directly associated with the operation of motor vehicles.
The regional transportation and climate protection expenditure plan
shall describe proposed transportation projects and programs and the
estimated cost of each. Adoption of the expenditure plan by the
commission and district shall include a finding by the commission and
district that the expenditure plan will achieve a nexus between
payment of the motor fuel fee and the mitigation of greenhouse gas
emissions.
(2) In developing the expenditure plan, the commission and
district shall prioritize expenditures that are most cost effective
at producing reductions in greenhouse gas emissions from motor
vehicle use in the bay area. These reductions should include the
associated greenhouse gas emission reduction benefits of reduced
traffic congestion to ensure the reductions accurately reflect the
full benefits of the project or program. The expenditure plan
development process shall include the development of a diverse
working group, with representatives from regional agencies and
commissions, local agencies such as cities, counties, and congestion
management agencies, nonprofit transportation and land use experts,
academic institutions working on climate change and vehicle miles
traveled reduction, and other interested groups. This working group
shall make recommendations to the commission and the district on
which projects to include in the expenditure plan.
(3) Estimates of cost, greenhouse gas reduction, and mobility
improvement for each project shall be prepared by the commission and
district, in consultation with project sponsors. An equity analysis
will be conducted, showing the costs and benefits to each income
group of the proposed expenditure plan. A goal of the transportation
and climate protection expenditure plan is to select projects that
cost effectively reduce climate emissions, and provide at least as
much benefit to low-income households, on average, as may be imposed
in costs. Estimates of other funding required to complete any project
shall be based on an estimate of funds reasonably expected to be
available during the 25-year period commencing with the year that the
fee is initially imposed.
(4) If not otherwise available, sufficient funding shall be
included in the cost estimates and expenditure plan presented to the
voters to operate and maintain each included project for the duration
of the fee.
(e) (1) Following the joint adoption by the commission and
district of a regional transportation and climate protection
expenditure plan, the board of supervisors of each county and city
and county in the region shall, upon the request of the commission
and district, submit to the voters at a local election consolidated
with a statewide primary or general election specified by the
commission, a measure, adopted by the commission, authorizing the
commission to impose the fee throughout the region.
(2) The measure may not be grouped with state or local measures on
the ballot, but shall be set forth in a separate category.
(3) The commission shall reimburse each county and city and county
in the region for the cost of submitting the measure to the voters.
These costs shall be reimbursed from revenues derived from the fee if
the measure is approved by the voters or, if the measure is not
approved, from any funds of the commission that are available for
general transportation planning.
(f) Upon approval of the measure by the margin of voters within
the region voting at a local election as determined necessary by the
California Constitution or other applicable statutory provisions, the
commission may impose the fee in all counties in the region in which
the measure appeared on the ballot.
(g) The commission shall contract with the State Board of
Equalization for the administration of the fee imposed under this
section, and the board shall be reimbursed for its actual cost in the
administration of the fee and for its actual cost of preparation to
administer the fee based upon an independent audit.
(h) The net revenues shall be deposited into the Transportation
Fund for Climate Protection, to be created and administered by the
commission, and shall be expended in accordance with this section.
(i) The net revenues received by the commission shall be expended
only in accordance with the regional transportation and climate
protection expenditure plan adopted pursuant to subdivision (d),
except that the commission may deduct from those revenues funds to
reimburse the commission and district for expenses incurred in the
initial implementation of this section and thereafter, its cost of
administration, not to exceed 5 percent of annual net revenues.
(j) In order to be eligible for funds derived from the fee,
project sponsors shall comply with all applicable commission and
district rules, regulations, and recommendations including, but not
limited to, those adopted pursuant to Section 66516, and Sections
99244 and 99246 of the Public Utilities Code. In consultation with
its working group and other interested parties, the commission shall
also develop and implement a program to ensure that project sponsors
expend funds derived from the fee in an efficient and effective
manner. No operating or maintenance funding provided from the fee
shall be used to supplant any funds within the discretionary control
of the recipient agency that are used for existing transportation
operating or maintenance activities.
(k) The regional transportation and climate protection expenditure
plan shall include a process of ensuring periodic public review of
the progress of the regional transportation and climate protection
expenditure plan and citizen oversight.
(l) The commission shall update the transportation and climate
expenditure plan to reflect the completion of projects included in
the initial voter-approved plan and to add additional projects that
meet the requirements of subdivision (d) after a minimum of two
public hearings in accordance with subdivision (j). Any amendment
shall comply with all of the requirements for the plan prescribed by
this section.
(m) The provisions of this section are severable. If any provision
of this section or its application is held invalid, that invalidity
shall not affect other provisions or applications that can be given
effect without the invalid provision or application.
SEC. 2. Chapter 12 (commencing with Section 8500)
of Part 2 of Division 2 of the Revenue and Taxation Code
is repealed.
SEC. 3. The Legislature finds that there is no
mandate contained in this act that will result in costs incurred by a
local agency or school district for a new program or higher level of
service which require reimbursement pursuant to Section 6 of Article
XIII B of the California Constitution and Part 7 (commencing with
Section 17500) of Division 4 of Title 2 of the Government Code.
SECTION 1. Section 8502 of the Revenue and
Taxation Code is amended to read:
8502. The commission may impose a fee on each gallon of motor
vehicle fuel, as defined by Section 7326, that is delivered into the
fuel supply tank or tanks of a motor vehicle in the region. The fee
shall not apply to motor vehicle fuel used to power aircraft. The fee
shall be levied at a rate established by the commission, but not
exceeding ten cents ($0.10) per gallon. Commencing on January 1 of
the year following the election approving the fee, the fee may be
imposed for a period not to exceed 25 years.
SEC. 2. Section 8503 of the Revenue and
Taxation Code is amended to read:
8503. (a) Prior to imposing the fee, the commission shall adopt a
regional transportation/climate protection expenditure plan for the
revenues derived from the fee. The regional transportation/climate
protection expenditure plan shall describe proposed transportation
projects and programs and the estimated cost of each. Adoption of the
expenditure plan by the commission shall include a finding by the
commission that the expenditure plan will achieve a nexus between
payment of motor fuel fee and benefit received. Benefit, in this
context, includes long-term offsetting of the congestion and climate
change impacts of motor fuel consumption.
(b) The regional transportation/climate protection expenditure
plan shall also meet the following minimum objectives and criteria:
(1) Project expenditures shall reflect an equitable distribution
of revenues throughout the region with not less than 95 percent of
revenues from each county, based on population, being invested over
the 25-year life of the fee in projects attributable to that county.
In addition, during every five-year period, no less than 80 percent
of the revenues from each county, based on population, invested
during that period shall be invested in projects attributable to that
county. The commission shall allocate any accrued interest according
to the same formula. At the time of the development of the
expenditure plan, the commission shall use population data from the
most recent United States census, and shall take into account
estimated increases in population over the 25-year period projected
by the Association of Bay Area Governments.
(2) Projects and programs included in the expenditure plan shall
be consistent with the commission's regional transportation/climate
protection plan. In developing the expenditure plan, the commission,
in prioritizing expenditures that are most cost-effective at
producing ongoing reduction in carbon emissions from motor vehicle
use in the bay area relative to the likely status-quo trends, so as
to offset the carbon-producing and congestion-producing effects of
consumption of motor vehicle fuel, shall give additional
consideration to projects or programs where local land use policies
reduce overall vehicle miles traveled. The expenditure plan
development process shall include consultation with cities, counties,
transit operators, congestion management agencies, the Bay Area Air
Quality Management District, climate protection and energy efficiency
experts, and other interested groups.
(3) Estimates of cost, carbon reduction, and mobility improvement
for each project shall be prepared by the commission, in consultation
with project sponsors, and verified by an independent expert
retained by the commission for that purpose. Estimates of other
funding required to complete any project shall be based on an
estimate of funds reasonably expected to be available during the
25-year period commencing with the year that the fee is initially
imposed.
(4) If not otherwise available, sufficient funding shall be
included in the cost estimates and expenditure plan presented to the
voters to operate and maintain each included project for the duration
of the fee.
SEC. 3. Section 8504 of the Revenue and
Taxation Code is amended to read:
8504. (a) Following the adoption by the commission of a regional
transportation/climate protection expenditure plan, the board of
supervisors of each county and city and county in the region shall,
upon the request of the commission, submit to the voters at a local
election consolidated with a statewide primary or general election
specified by the commission, a measure, adopted by the commission,
authorizing the commission to impose the fee throughout the region.
(b) The measure may not be grouped with state or local measures on
the ballot, but shall be set forth in a separate category and shall
be identified as Regional Measure 3.
(c) Regardless of the system of voting used, the wording of the
measure shall read as follows:
"To reduce global warming pollution, improve energy efficiency,
promote energy independence, improve local transportation options,
and reduce traffic congestion, shall voters authorize a Bay Area
Regional Transportation Fund for Climate Protection that
^ Increases public transit options, reliability, and ridership
^ Increases housing supply near transit
^ Increases safety and use of walking and bicycling
^ Promotes fuel efficient vehicles and clean fuels
By implementing a ____ cents per gallon fee on each gallon of
gasoline that is delivered into the tanks of motor vehicles in the
bay area?"
(d) The commission shall reimburse each county and city and county
in the region for the cost of submitting the measure to the voters.
These costs shall be reimbursed from revenues derived from the fee if
the measure is approved by the voters or, if the measure is not
approved, from any funds of the commission that are available for
general transportation planning.
SEC. 4. Section 8505 of the Revenue and
Taxation Code is amended to read:
8505. Upon approval of the measure by the margin of voters within
the region voting at a local election as determined necessary by the
California Constitution or other applicable statutory provisions,
the commission may impose the fee in all counties in the region in
which the measure appeared on the ballot.
SEC. 5. Section 8506 of the Revenue and
Taxation Code is amended to read:
8506. The commission shall contract with the State Board of
Equalization for the administration of any fee imposed under this
chapter, and the board shall be reimbursed for its actual cost in the
administration of the fee and for its actual cost of preparation to
administer the fee based upon an independent audit.
SEC. 6. Section 8507 of the Revenue and
Taxation Code is amended to read:
8507. The State Board of Equalization shall adopt the necessary
rules and regulations to administer the fee.
SEC. 7. Section 8508 of the Revenue and
Taxation Code is amended to read:
8508. After deducting its cost of administering the fee, the
State Board of Equalization shall periodically transmit the net
revenues to the commission as promptly as possible. Transmittal of
those revenues shall be made at least twice in each calendar quarter.
SEC. 8. Section 8509 of the Revenue and
Taxation Code is amended to read:
8509. The net revenues received by the commission shall be
expended only in accordance with the regional transportation/climate
protection expenditure plan adopted pursuant to Section 8503, except
that the commission may deduct from those revenues funds to reimburse
it for expenses incurred in the initial implementation of this
chapter, and thereafter, its cost of administration, not to exceed 1
percent of annual net revenues.
SEC. 9. Section 8510 of the Revenue and
Taxation Code is amended to read:
8510. In order to be eligible for funds derived from the fee,
project sponsors shall comply with all applicable commission rules
and regulations including, but not limited to, those adopted pursuant
to Section 66516 of the Government Code and Sections 99244 and 99246
of the Public Utilities Code. In consultation with cities, counties,
transit operators, congestion management agencies, and other
interested groups, the commission shall also develop and implement a
program to ensure that project sponsors expend funds derived from the
fee in an efficient and effective manner. No operating or
maintenance funding provided from the fee shall be used to supplant
any funds within the discretionary control of the recipient agency
that are used for existing transportation operating or maintenance
activities.
SEC. 10. The Legislature finds that there is no
mandate contained in this act that will result in costs incurred by
a local agency or school district for a new program or higher level
of service which require reimbursement pursuant to Section 6 of
Article XIII B of the California Constitution and Part 7 (commencing
with Section 17500) of Division 4 of Title 2 of the Government Code.