BILL ANALYSIS
SB 406
Page 1
Date of Hearing: July 6, 2009
ASSEMBLY COMMITTEE ON TRANSPORTATION
Mike Eng, Chair
SB 406 (DeSaulnier) - As Amended: July 9, 2009
SENATE VOTE : 21-16
SUBJECT : Land use planning: subregional sustainable communities
strategy
SUMMARY : Authorizes metropolitan planning agencies and county
transportation commissions as specified to impose a one or two
dollar surcharge on vehicle registrations to pay for regional
and subregional land use planning activities. Revises the
membership and duties of the Planning Advisory and Assistance
Council (PAAC) located within the Governor's Office of Planning
and Research (OPR). Specifically, this bill :
1)Adds to the membership of PAAC, the following members:
a) Seven representatives of regional planning
organizations, with the representatives selected by OPR as
specified;
b) One member of the California Air Resources Board (ARB);
c) One member of the California Transportation Commission
(CTC);
d) One member of the State Energy Resources Conservation
and Development Commission; and,
e) One member each appointed by the Assembly and the
Senate.
2)Adds new duties to the responsibility of PAAC, including:
a) Working with the Strategic Growth Council (SGC),
regional agencies, and with cities and counties to
facilitate the implementation of regional blueprint plans;
b) Developing and proposing recommendations to SGC, the
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Department of General Services (DGS), the State Allocation
Board, the Department of Housing and Community Development
(HCD), CTC, and any other state agencies that affect land
use, housing, or transportation in order to facilitate
coordination between regional blueprint plans and state
growth and infrastructure funding plans and programs that
facilitate the implementation of regional blueprint plans;
c) Receiving reports, including, but not limited to, a copy
of the five-year infrastructure plan; and,
d) Reporting to the Legislature on regional performance
measures, evaluating the progress of each region of the
state in improving results for residents in employment,
environmental protection, education, housing, mobility, and
other criteria as determined by PAAC.
3)Specifies that PAAC shall provide the Legislature with updates
to the report specified in #2 d) above periodically, as PAAC
determines is required.
4)Provides that PAAC shall commence additional responsibilities
when sufficient funding, as determined by PAAC, is provided
from revenue transmitted to PAAC by metropolitan planning
organizations (MPOs), council of governments (COGs), or county
transportation commissions and subregional COGs jointly
preparing subregional sustainable communities strategies
(SCS).
5)Authorizes an MPO, a COG, or a county transportation
commission and a subregional COG jointly preparing a
subregional SCS, to impose a surcharge of $1 or $2 on a motor
vehicle registered to an owner with an address located within
its jurisdiction.
6)Provides, in order to impose the surcharge, that the MPO, COG,
or county transportation commission and subregional COG
jointly preparing a subregional SCS, must adopt a resolution
authorizing the surcharge.
7)Provides that a resolution by the Metropolitan Transportation
Commission (MTC) or Association of Bay Area Governments (ABAG)
to impose the surcharge must be jointly adopted by resolution
of both entities, and the revenue from the surcharge shall be
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divided in accordance with an agreement between these two
entities.
8)Provides that a resolution by a county transportation
commission or a subregional COG within the jurisdiction of the
Southern California Association of Governments (SCAG) shall be
jointly adopted by resolution of both entities, and the
revenue from the surcharge shall be divided in accordance with
an agreement between the two entities.
9)Provides that the surcharge shall be applied to an original
vehicle registration occurring on or after six months
following the adoption of the resolution by the MPO, COG, or a
county transportation commission and a subregional COG jointly
preparing an SCS, and to a renewal of registration with an
expiration date on or after that six-month period.
10)Provides that all revenue received by the imposition of a
surcharge shall be used solely to develop an SCS or a regional
blueprint plan to identify land use strategies to reduce the
use of motor vehicles in its jurisdiction and thereby achieve
greenhouse gas (GHG) emission reductions from motor vehicles.
Revenues are also to be used and to implement an SCS or
regional blueprint plan that achieves the GHG emission
reduction targets.
11)Provides that if the surcharge exceeds $1, all amounts above
$1 in a jurisdiction with a population greater than 300,000
shall be used to provide grants to cities, counties, and
cities and counties for planning and projects related to the
implementation of a regional blueprint plan.
12)Provides that the entities shall transmit 5% of all vehicle
registration fee surcharge revenues to PAAC for the
performance of the new duties of the PAAC, as specified.
13)Authorizes an entity imposing a vehicle registration fee
surcharge to share revenues with the appropriate local air
district subject to an agreement between the parties.
14)Provides that all revenue received by a local air district be
used to assist local and regional governments in reducing
greenhouse gas (GHG) emissions, including, but not limited to,
all of the following appropriate manners of assistance:
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a) Assistance in the development of a subregional SCS;
b) Assistance in the development of local GHG emissions
inventories;
c) Assistance in the development of GHG emission reduction
strategies in general plans;
d) Development and assistance of California Environmental
Quality Act (CEQA) guidelines and review of GHG emissions
in CEQA analyses;
e) Consultation and development of local climate action
plans; and,
f) Project specific consultation work to reduce GHG
emissions from local transportation and land use decisions.
15)Provides that an SCS and an alternative planning strategy
shall both be considered to be a regional blueprint.
16)Adds a new duty for SGC to consult with and coordinate its
recommendations with PAAC.
17)Specifies that fees shall be paid to the Department of Motor
Vehicles (DMV) for those vehicles in the jurisdiction of the
MPO, the COG, or the county transportation commission and the
subregional COG jointly preparing a subregional SCS that
request imposition of the surcharge, as follows:
a) Upon the initial registration for a motor vehicle not
previously registered in this state, on or after the date
DMV begins collecting the fee; and,
b) Upon renewal of registration of a motor vehicle for
which the registration period expires after the date DMV
begins collecting of the fee.
18)Requires the MPO, the COG, or the county transportation
commission and the subregional COG jointly preparing a
subregional SCS, to pay for the costs identified by DMV to
administer the surcharge; and requires those entities to
contract with DMV to pay for the initial setup and programming
costs identified by DMV.
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19)Requires the initial setup and programming costs to be
reimbursed by the implementing entity from the surcharge
revenues collected.
20)Requires DMV to transmit the surcharge revenue back to the
entity that is imposing the surcharge on a quarterly basis.
21)Makes other findings and declarations, and expresses the
intent of the Legislature to update the duties and composition
of PAAC to assist in the state's land use planning processes
by providing funding to support the development and
implementation for regional blueprints and related planning.
EXISTING LAW :
1)Requires the MPOs to adopt regional transportation plans
(RTPs) directed at achieving a coordinated and balanced
regional transportation system, including, but not limited to,
mass transportation, highway, railroad, maritime, bicycle,
pedestrian, goods movement, and aviation facilities and
services. The RTP must contain a policy element, an action
element, and a financial element and is the source for
projects programmed in the regional transportation improvement
program. Requires each MPO to include within its regional
transportation plan an SCS, designed to achieve specified
targets for GHG emission reduction. If the SCS does not
achieve the reduction target, the MPO must prepare an
alternative planning strategy.
2)Authorizes local agencies to form joint powers agencies.
Cities and counties in regions have exercised this authority
to form joint powers agencies called COGs to implement
regional planning activities required under state law,
including regional housing needs assessments and regional
transportation plans. COGs generally serve as federally
recognized MPOs for transportation planning purposes, although
there are exceptions. As an example, in the nine-county San
Francisco Bay region, ABAG is the COG that prepares the
regional housing needs assessment, but MTC is the region's MPO
for transportation planning.
3)Establishes OPR within the governor's office as the state's
comprehensive planning agency. The PAAC, located within OPR,
is responsible for various land use planning related
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activities, including development of the State Environmental
Goals and Policies Report. OPR's Director appoints the
membership of the PAAC, which must include three city
representatives, three county representatives, one
representative from each of the regional planning districts
designated by OPR, and one representative of Indian tribes
with reservations in California.
4)Creates SGC, which is required to recommend policies to the
governor, state agencies, and the Legislature to encourage the
development of sustainable communities and provide local
governments and regional agencies with data to assist in
planning sustainable communities.
5)Establishes a basic vehicle registration fee of $34, plus a
$22 surcharge for additional personnel for the California
Highway Patrol, and authorizes local agencies to impose
separate vehicle registration fee surcharges in their
respective jurisdictions for a variety of special programs,
including:
a) $1 for deterring and prosecuting vehicle theft;
b) $1 for service authorities for freeway emergencies;
c) $1 for deterring and prosecuting vehicle theft;
d) Up to $7 for air quality programs;
e) Up to $4 pursuant to the resolution by the City/County
Association of Governments of San Mateo County, upon
vehicles registered within San Mateo County, for stormwater
and congestion management relief purposes;
f) Up to $6, upon action by Sacramento Air Quality
Management District, upon vehicles registered within its
district.
g) Up to $30 to fund programs to reduce vehicle emissions
upon vehicle owners who register their vehicles in San
Joaquin, Stanislaus, Merced, Madera, Fresno, Kings, and
Tulare Counties and valley portions of Kern County;
h) Up to $1, upon action by the South Coast Air Quality
Management District, upon vehicles within its district;
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i) A fee of $4 upon action by the City and County of San
Francisco and subject to voter approval, for the provision
of public transit;
j) $1 for removing abandoned vehicles; and,
aa) $1 for fingerprint identification programs.
6)Distinguishes a fee from a tax in that a fee pays for a
specific service or project and cannot exceed the reasonable
costs of providing the service or projects that it funds.
Unlike a tax, which benefits the general public, the payer of
the fee is the beneficiary.
7)Allows fees to be imposed by an agency's governing board.
FISCAL EFFECT : Unknown.
COMMENTS : This bill would authorize an MPO, a COG, or a county
transportation commission and a subregional COG jointly
preparing a subregional SCS, to impose a surcharge on motor
vehicles registered within their separate and respective
jurisdictions, upon adoption of a resolution authorizing the
surcharge. All revenues derived from the new fee imposed by an
MPO, a COG, or a county transportation commission and a
subregional COG jointly preparing a subregional SCS would be
used solely to develop an SCS or a regional blueprint plan to
identify land use strategies to reduce GHG emissions as well as
to implement an SCS or regional blueprint plan.
Additionally, this bill adds new members to PAAC, and gives PAAC
the responsibility to work with SGC and other regional agencies
to facilitate the implementation of regional blueprint plans,
and requires PAAC to report back to the Legislature, in
consultation and coordination with SGC.
According to the author, "to successfully implement SB 375 and
its required regional transportation plans to address greenhouse
gases, regional and local governments need
resources for strategic planning and opportunities for
coordination with the efforts of the Governor's Strategic Growth
Council and other state agencies as required by the enactment of
SB 732 (Steinberg, 2008)? This bill would provide for greater
collaboration between state and local planning bodies to support
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plans and projects which implement regional blueprints and
sustainable communities strategies."
Other potential sources of regional, subregional, or local
funding for environmental sustainability planning : Proposition
84, as approved by the statewide voters in 2006, provides bond
revenues for projects relating to safe drinking water, water
quality and supply, flood control, waterway and natural resource
protection, water pollution and contamination control, state and
local park improvements, public access to natural resources, and
water conservation efforts. Among its funding programs, it
provides $580 million for sustainable communities and climate
change reduction efforts.
As currently proposed in the new federal Surface Transportation
Act of 2009, funding to MPOs for livability and environmental
sustainability planning will be allowed, although there are no
amounts indicated in an authorization or appropriation.
Multitude of vehicle registration and license fee revenue bills :
There are a number of bills being considered this year that
would raise either the vehicle registration or license fee (SB
10 (Leno), SB 205 (Hancock), AB 286 (Salas), ABX3 39 (Evans),
ABX3 2 (Evans)). Should these bills be considered on a broader,
overarching level rather than considered separately on a
piecemeal basis? Further, according to the auto clubs who are
opposed to the bill, "while it might appear that adding up to
another $3 fee on registrations is a small amount, car owners
have seen their registration costs skyrocket over the past few
years. Several years ago car owners were obligated to pay an
additional $3 registration fee to support alternative fuel
development and other greenhouse gas reduction programs. More
recently, car owners' costs dramatically increased with the
adoption of a $12 registration fee increase (2008) and an almost
doubling of the vehicle license fee (2009). This year motorists
face additional costs as the Legislature considers a $15 'fee'
to support parks and legislation giving local governments the
ability to institute a local vehicle license fee."
How much to the PAAC? Under the provisions of this bill, 5% of
all revenues collected would be transferred to PAAC to perform
the new duties imposed by this bill. Without knowledge of how
many vehicles are registered in the urbanized areas of the
state, will the revenues transferred by the fee imposition be
sufficient for PAAC's additional responsibilities as imposed by
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this bill or are overly generous?
Another perspective : Instead of the direction this bill takes
relative to subregional planning, especially in the absence of
subregional GHG emission targets, would it be more worthwhile to
address regional impacts on a broader scale, from a mega-region
perspective, that would consider interregional travel impacts
especially as it relates to the provision of jobs and housing?
Support : According to this bill's sponsor, the California
Association of Councils of Governments (CALCOG), indicates that
the bill provides a permanent funding source for the regional
and local planning required to implement SB 375, and also
creates a council with local officials to advise the Strategic
Growth Council and thereby, coordinates state investments with
local and regional SB 375 implementation strategies." Further,
"funding and coordination are necessary to enable regional and
local governments to successfully plan for implementation [of SB
375], which not only addresses greenhouse gas issues, but calls
for a more efficient land use pattern which will reduce traffic
congestion, support affordable housing, and make California's
urban regions a more attractive location for economic
development."
Opposition : Writing in opposition, DMV indicates that "Although
the May 28th amendments attempt to address the issue of our
implementation costs by imposing a contract and reimbursement
requirement, the multiple and varied local agencies involved in
these efforts would create a significant administrative workload
to DMV. In addition, the initial agency adopting a resolution
and requesting our participation would be obligated to pay the
entire costs for the statewide programming and would receive
substantially less revenue than subsequent agencies joining the
program. We believe this surcharge should be subject to voter
approval and contain a sunset date. Recent increases to the
registration and vehicle license fees have raised the average
annual cost to register an automobile in this state to $194.
That amount however does not include district and county fees
and adding yet another local fee to the vehicle registration
process at this time would be excessive."
Related bill : The author introduced a similar measure last
year, AB 2870 (DeSaulnier) that passed the Assembly but failed
passage in the Senate Local Government Committee. That bill
would have created the California Blueprint Implementation
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Council, which would have been charged with the implementation
of regional blueprint projects. Previous versions of AB 2870
would have allowed for the imposition of a surcharge on motor
vehicle registration, in order for the MPO or COG to fund the
development and implementation of a regional blueprint plan to
identify land use strategies to reduce motor vehicle use and GHG
emissions. This bill builds upon the provisions contained in
various versions of AB 2870 and focuses on a mechanism with
which to fund the planning that is required under SB 375, along
with coordination among various planning entities.
Committee of second referral : This bill was first referred to
the Assembly Local Government Committee and passed on a 5-2 vote
on July 1, 2009.
REGISTERED SUPPORT / OPPOSITION :
Support
California Association of Councils of Governments (Sponsor)
American Federation of State, County, and Municipal Employees
Association of Bay Area Governments
California League of Conservation Voters
County of San Mateo
Metropolitan Transportation Commission
Santa Cruz Regional Transportation Commission (if amended)
Supervisor Dave Cortese, County of Santa Clara
Opposition
Automobile Club of Southern California
California Department of Motor Vehicles
California New Car Dealers Association (unless amended)
California Taxpayers' Association
California State Automobile Association
Cities of Lakewood and Murrieta
County of Orange
League of California Cities, Orange County Division
San Diego Association of Governments
Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093