BILL ANALYSIS Ó
AB 1770
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Date of Hearing: April 9, 2012
ASSEMBLY COMMITTEE ON TRANSPORTATION
Bonnie Lowenthal, Chair
AB 1770 (Bonnie Lowenthal) - As Introduced: February 17, 2012
SUBJECT : California Transportation Financing Authority
SUMMARY : Clarifies that the California Transportation Financing
Authority (CTFA) may approve rail projects that are, or include,
rolling stock; also provides that a project may be eligible for
financing under CTFA if it is owned or operated (rather than
owned and operated) by the California Department of
Transportation (Caltrans) or other project sponsor.
EXISTING LAW:
1)Establishes CTFA within the Office of the Treasurer to assist
transportation agencies in obtaining financing to construct
transportation projects; specifies the membership of CTFA, as
follows:
a. The Treasurer, who shall serve as the Chair of CTFA;
b. The Director of Finance;
c. The Controller;
d. The Director of Transportation;
e. The Executive Director of the California Transportation
Commission;
f. A local agency representative appointed by the Senate
Committee on Rules; and,
g. A local agency representative appointed by the Speaker
of the Assembly.
2)Sets forth the objective of CTFA which is to increase the
construction of new capacity or improvements for the state
transportation system in a manner that is consistent with and
will help meet the state's greenhouse gas reduction goals, air
quality improvement goals, and natural resource conservation
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goals, through the issuance of, or the approval of the
issuance of, bonds that are backed, in whole or in part, by
specified transportation-related revenues.
3)For purposes of identifying projects that are eligible for
consideration by CTFA, defines "project" to include all or a
portion of planning, design, development, finance,
construction, reconstruction, rehabilitation, improvement,
acquisition, lease, operation, or maintenance of a highway,
public street, rail, or related facility.
4)Defines "project sponsor" to include Caltrans, a regional
transportation planning agency, county transportation
commission, any other local or regional transportation entity
designated in statute as a regional transportation agency, a
joint exercise of powers authority, or an agency designated to
provide the county transportation plan in the Bay Area region.
5)Specifies the requirements that a project must meet to be
considered for financing or refinancing through CTFA,
including:
a. The project must comply with all relevant statutes
applicable to the planning, programming, and construction
of transportation projects;
b. The project must be contained in the constrained portion
of a conforming regional transportation plan that is
consistent with the greenhouse gas reduction targets
assigned by the Air Resources Board;
c. For highway projects, the project sponsor must have
secured the support of Caltrans and the project must be
consistent with the needs and requirements of the state's
highway system;
d. The project must be financially and technically
feasible;
e. The project must meet or exceed environmental
requirements and must have all necessary permits approved;
f. The project must have performance measures to monitor
its progress;
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g. The project must have community support, as demonstrated
through a public review and comment process; and,
h. For highway projects, the project sponsor must submit to
CTC a plan that demonstrates how transit service or
alternative modes of transportation will be enhanced in the
corridor concurrent with the operator of a toll facility.
6)Requires CTFA to determine that the revenues and other moneys
available for a project will be sufficient to pay debt service
on the bonds as well as operation and maintenance costs for
the project over the life of the bonds.
7)Allows CTFA to authorize a project sponsor to impose and
collect tolls as one source of funding, if the project meets
prescribed requirements.
FISCAL EFFECT : Unknown
COMMENTS : According to the author, AB 1770 is intended to
facilitate CTFA's ability to finance, or assist in financing,
transportation projects. To this end, the bill provides
clarification that rolling stock may considered a rail project
or part of a rail project.
The bill also provides that a project sponsor may be either an
owner or an operator to seek financing through CTFA and need not
be both the owner and operator. According to the author, this
change is not intended to alter the original scope of authority
granted to CTFA in its enabling statutes but, instead, to allow
for greater flexibility for a project sponsor that is
considering applying to CTFA for toll or bond issuance
authority. Transportation projects are complex and may involve
multiple entities. This change would provide flexibility in how
the project sponsor may partner with other entities to build,
operate and maintain a toll project.
REGISTERED SUPPORT / OPPOSITION :
Support
State Treasurer's
Opposition
AB 1770
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None on file.
Analysis Prepared by : Janet Dawson / TRANS. / (916) 319-2093