BILL ANALYSIS                                                                                                                                                                                                    Ó






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: AB 1290
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  J. Pérez
                                                         VERSION: 7/2/13
          Analysis by:  Erin Riches                      FISCAL:  Yes
          Hearing date:  July 9, 2013


          SUBJECT:

          California Transportation Commission and Strategic Growth  
          Council:  duties

          DESCRIPTION:

          This bill increases the membership and duties of the California  
          Transportation Commission (CTC), requires regional  
          transportation planning agencies to submit specified information  
          to the CTC, expands the duties of the Strategic Growth Council  
          (SGC), and requires the SGC to annually report to the CTC.

          ANALYSIS:

           California Transportation Commission
           
          The Legislature established the CTC in statute in 1978 to help  
          achieve a single, unified state transportation policy.  The  
          governor appoints nine members to the CTC, while the Senate  
          Rules Committee and Assembly Speaker each appoint one member.   
          In addition to these 11 voting members, two ex officio,  
          non-voting members sit on the CTC; typically, these individuals  
          are the chairs of the respective transportation policy  
          committees in each house of the Legislature.  Existing law  
          requires the CTC to organize itself into at least four  
          committees:  aeronautics, streets and highways, mass  
          transportation, and planning.

          The CTC is responsible for:

           Adopting the biennial five-year State Transportation  
            Improvement Program (STIP) and approving the biennial  
            four-year State Highway Operation and Protection Program  
            (SHOPP), as well as adopting the biennial five-year fund  
            estimate of state and federal funds for each.

           Allocating state funds for capital projects consistent with  
            the STIP, SHOPP, Traffic Congestion Relief Program,  
            Proposition 116 (Clean Air and Transportation Improvement Act  



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            of 1990), Proposition 1A (Safe, Reliable High-Speed Passenger  
            Train Bond Act for the 21st Century of 2008), and Proposition  
            1B (Highway Safety, Traffic Reduction, Air Quality and Port  
            Security Bond Act of 2006).

           Allocating state funds for capital grants from the Aeronautics  
            Account and the Environmental Enhancement and Mitigation  
            Program Fund.

           Adopting guidelines for the development of CTC-administered  
            programs and regional transportation plans.

           Approving project proposals for public-private partnership  
            agreements and authorizing projects for procurement utilizing  
            the Design-Build Demonstration Program.
           Determining eligibility of projects for High Occupancy Toll  
            lane implementation.

           Approving right-of-way matters such as new public road  
            connections, resolutions of necessity, relinquishments,  
            specified deeds, and airspace leases.

           Strategic Growth Council
           
          SB 732 (Steinberg), Chapter 729, Statutes of 2008, established  
          the SGC.  The SGC is comprised of the Secretary of Environmental  
          Protection; the Secretary of Transportation; the Secretary of  
          Health and Human Services; the Director of the Governor's Office  
          of Planning and Research; and one member of the public appointed  
          by the governor.  The public member shall have a background in  
          land use planning, local government, resource protection and  
          management, or community development or revitalization.
                     
          The SGC is responsible for:

           Identifying and reviewing activities and funding programs of  
            member state agencies that may be coordinated to improve air  
            and water quality, improve natural resource protection,  
            increase the availability of affordable housing, improve  
            transportation, meet the goals of 
            AB 32, the California Global Warming Solutions Act of 2006  
            (see "Background" below), encourage sustainable land use  
            planning, and revitalize urban and community centers in a  
            sustainable manner.

           Reviewing and commenting on the governor's five-year  
            infrastructure plan.



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           Reviewing and commenting on the State Environmental Goals and  
            Policy Report.

           Recommending policies and investment strategies and priorities  
            to the governor, Legislature, and appropriate state agencies  
            to encourage the development of sustainable communities.

           Providing, funding, and distributing data and information to  
            local governments and regional agencies to assist in  
            developing and planning sustainable communities.

           Managing and awarding grants and loans to support the planning  
            and development of sustainable communities.

           MPOs and RTPAs
           
          Federal law requires states to establish metropolitan planning  
          organizations (MPOs).  California's MPOs provide transportation  
          planning for each urbanized area with a population of over  
          50,000.  These organizations are typically the same as an urban  
          region's regional transportation planning agency (RTPA); for  
          example, the Metropolitan Transportation Commission is both the  
          MPO and RTPA for the San Francisco Bay Area.  MPOs outline their  
          transportation priorities in 20-year regional transportation  
          plans.  Every county with at least one urbanized area is also  
          served by an MPO.  

          Local governments create RTPAs pursuant to state statute.  RTPAs  
          are responsible for adopting a regional transportation  
          improvement program, which is then incorporated into the STIP 
          adopted by the CTC.  Every county in California is served by an  
          RTPA.  RTPAs are local transportation commissions, county  
          transportation commissions, councils of government, and  
          associations.  

           SB 375 
           
          In 2006, the Legislature enacted AB 32 (Nuñez and Pavley),  
          Chapter 488, Statutes of 2006, which requires the state Air  
          Resources Board (ARB) to establish a statewide greenhouse gas  
          emissions limit to help California reduce its greenhouse gas  
          emissions to 1990 levels by 2020.  Two years later, the  
          Legislature enacted SB 375 (Steinberg), Chapter 728, Statutes of  
          2008, to help implement AB 32.  SB 375 requires the ARB to  
          provide each major region of the state with greenhouse gas  
          emission reduction targets for the automobile and light truck  



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          sector.  Each MPO must then prepare a "sustainable communities  
          strategy" (SCS) that demonstrates how the region will meet its  
          greenhouse gas emission reduction target through integrated land  
          use, housing, and transportation planning.  Once adopted by the  
          MPO, the region incorporates the SCS into its regional  
          transportation plan.  The ARB must review each final SCS to  
          determine whether it would, if implemented, achieve the target  
          for its region.  If the ARB deems that an SCS will not meet the  
          designated target, the MPO must prepare a separate "alternative  
          planning strategy" to meet the target.  

           This bill  :

           Expands the membership of the CTC as follows:

                 Adds two voting members:  one appointed by the Assembly  
               Speaker and one appointed by the Senate Rules Committee.

                 Adds three ex-officio, non-voting members:  The  
               Secretary of the Transportation Agency, the Chairperson of  
               the ARB, and the Director of the Department of Housing and  
               Community Development (HCD).  

           Requires the governor, Senate Rules Committee, and Assembly  
            Speaker to make every effort to ensure that transportation  
            expertise, with a particular emphasis on stakeholders involved  
            in efforts to make the state's transportation system more  
            sustainable, is reflected in their CTC appointments.

           Expands the duties of the CTC's planning committee by  
            requiring it to monitor outcomes from land development and  
            transportation investments pursuant to sustainable communities  
            strategies (SCSs).

           Requires the CTC, by October 15, 2014, and each even-numbered  
            year thereafter, to receive a brief report from each RTPA  
            required to prepare an SCS that describes the RTPA's progress  
            in implementing its SCS and in reducing greenhouse gas  
            emissions.   

           Authorizes the CTC, after receiving the set of reports due in  
            October 2016, to prepare guidelines for the composition of  
            these reports after consulting with RTPAs.

           Requires the CTC's annual report to include a summary of the  
            CTC's and SGC's assessment of progress throughout California  
            toward state greenhouse gas emission reduction objectives,  



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            from patterns of ongoing land developments and transportation  
            investments.  
           Allows the CTC's annual report to include a discussion of any  
            significant upcoming transportation issues anticipated to be  
            of concern to the public and to the Legislature. 

           Requires each RTPA that prepares an SCS to submit by October  
            15, 2014, and biennially thereafter, a brief report to CTC  
            describing the region's progress in implementing its SCS.   
            Requires the report to include an assessment of progress,  
            along with any challenges the region faces in implementing its  
            SCS.

           Requires each RTPA located in a region that is required to  
            adopt an SCS to include in its regional transportation  
            improvement program (RTIP) a discussion of how the RTIP  
            relates to the region's SCS.

           Requires the SGC, in addition to its other statutory duties,  
            to identify activities, programs, and local assistance funding  
            of member agencies that have a significant effect on SCS  
            implementation and to notify member agencies of this  
            information.  

           Requires the SGC to report annually by August 15th to the CTC,  
            at a public hearing of the CTC, on steps it has taken in that  
            regard.  

          COMMENTS:

           1.Purpose  .  The author states that it is critical to update the  
            CTC's statutory mission to recognize significant legislative  
            policy changes enacted since 2006 that have advanced a  
            stronger focus on the nexus between transportation, air  
            quality, and land use.  These changes include Proposition 1B,  
            AB 32, SB 375, the Governor's Reorganization Plan No. 2 of  
            2012, and SB 1039 (see "Background" below for more details).   
            The author asserts that given these recent initiatives and the  
            emerging framework for the linkage between transportation and  
            land use policy, it is imperative to ensure that the CTC is  
            better structured to address these policy shifts.  The author  
            notes that because it is the only state transportation body  
            that holds regular public hearings on transportation  
            investments, and because it is empowered to implement policy  
            initiatives and make policy changes, the CTC can play a  
            powerful role in advancing transportation policy.




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           2.Background  .  Between 2006 and the present, the Legislature has  
            enacted the following measures.

             a.   SB 1266 (Perata), Chapter 25, Statutes of 2006  
               authorized the sale of $19.925 billion in   general  
               obligation bonds for a variety of transportation related  
               projects, upon voter approval at the November 2006  
               election.  State voters ultimately approved this measure in  
               the form of Proposition 1B, the Highway Safety, Traffic  
               Reduction, Air Quality, and Port Security Bond Act of 2006.

             b.   AB 32 (Nuñez and Pavley), Chapter 488, Statutes of 2006,  
               the California Global Warming Solutions Act of 2006,  
               requires the ARB to establish a statewide greenhouse gas  
               emissions limit to help California reduce its greenhouse  
               gas emissions to 1990 levels by 2020.  

             c.   SB 375 (Steinberg), Chapter 728, Statutes of 2008,  
               requires the ARB to provide each major region of the state  
               with greenhouse gas emission reduction targets for the  
               automobile and light truck sector.  It also requires each  
               regional transportation plan to include an SCS, including a  
               regional land use plan, designed to achieve the targets for  
               greenhouse gas emission reduction.  And it requires the CTC  
               to maintain guidelines for travel demand models. 

             d.   SB 732 (Steinberg), Chapter 729, Statutes of 2008,  
               establishes the SGC and requires it to coordinate member  
               state agencies to improve air and water quality, protect  
               natural resources and agriculture lands, increase the  
               availability of affordable housing, improve infrastructure  
               systems, promote public health, and assist state and local  
               entities in the planning of sustainable communities and  
               meeting AB 32 goals.  

             e.   The Governor's Reorganization Plan No. 2 of 2012,  
               institutes a number of executive branch changes, effective  
               July 1, 2013, including creating a new Transportation  
               Agency comprised of Caltrans, the Department of the  
               California Highway Patrol, the Department of Motor  
               Vehicles, the High-Speed Rail Authority, the Board of Pilot  
               Commissioners, and the CTC.

             f.   SB 1039 (Steinberg), Chapter 147, Statutes of 2012,  
               makes several modifications to the reorganization plan,  
               including requiring HCD, Caltrans, and the CTC to  
               coordinate state housing and transportation policies and  



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               programs to help achieve state and regional planning  
               priorities and to maximize co-benefits of infrastructure  
               investments. 

           3.Role of the CTC  .  The Legislature established the CTC to help  
            achieve a single, unified state transportation policy.  The  
            CTC is responsible for allocating billions of dollars of  
            transportation funds and by any measure is a powerful agency.   
            This bill would direct the CTC to engage not just in the  
            state's transportation programs, but also in housing, air  
            quality, and land use programs.  The committee may wish to  
            consider whether expanding the CTC's role into other major  
            policy areas poses the risk of fragmenting the CTC's mission  
            and decreasing its ability to play its transportation policy  
            role to the highest degree of effectiveness and efficiency. 

           4.Are more commissioners necessary  ?  The CTC currently has 13  
            members, of which 11 are voting members.  In addition,  
            representatives from the Transportation Agency and Caltrans,  
            though not commissioners, sit on the dais at each meeting.   
            This bill would increase the CTC to 18 members (13 voting),  
            including the Secretary of Transportation, the ARB Chair, and  
            the Director of HCD.  Currently, at each of its meetings the  
            CTC hears reports from the Transportation Agency, Caltrans,  
            the US Department of Transportation, the RTPAs, the Rural  
            Counties Task Force, and the Self-Help Counties.  Because the  
            CTC has already built Transportation Agency representation  
            into its meeting structure, it does not appear necessary to  
            add the Transportation Secretary to the CTC.  It also appears  
            that the ARB and HCD could be effectively incorporated into  
            CTC meetings through the agenda process.  In addition, giving  
            the ARB a seat on the CTC raises the question of why this bill  
            does not also give the CTC a seat on the ARB to help further  
            the goal of an active dialogue.  Finally, it is unclear what  
            will be gained from adding two additional legislative  
            appointments to the CTC.  While this bill directs the  
            Legislature and governor to consider, when making CTC  
            appointments, 
            individuals who represent efforts to make the state's  
            transportation more sustainable, it does not require them to  
            appoint such individuals.  Further, existing law allows the  
            Legislature and governor to appoint such individuals now if  
            they so choose.  The committee may wish to consider deleting  
            the provisions of the bill that expand the CTC's membership by  
            five members and instead consider requiring representatives of  
            the Transportation Agency, HCD, and ARB to report to the CTC  
            at each of its public meetings.  



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           5.More SCS reporting  .  Existing law (SB 375) requires the ARB to  
            set greenhouse gas emission reduction targets for each region,  
            and requires each MPO to prepare an SCS to demonstrate how its  
            region will meet those targets.  Once adopted by the MPO, the  
            region incorporates the SCS into its regional transportation  
            plan.  The ARB must review each final SCS to determine whether  
            it would, if implemented, achieve its regional greenhouse gas  
            emission reduction target.  This bill additionally requires  
            each RTPA that prepares an SCS to submit a biennial progress  
            report to the CTC on its SCS implementation.  It also requires  
            these RPTAs to include in their regional transportation  
            improvement plans a discussion of how the plan relates to the  
            region's SCS.  

           6.Opposition arguments  .  The Orange County Transportation  
            Authority (OCTA) opposed the April 23, 2013 version of this  
            bill unless amended to more clearly exempt land use decisions  
            from MPO and RTPA reporting requirements; clarify that MPO and  
            RTPA reports are not binding on future plans or funding  
            decisions and shall not constitute an alternative under, or  
            foundation for, future California Environmental Quality Act  
            (CEQA) analysis; recognize the unique role of county  
            transportation commissions within the Southern California  
            Association of Governments (SCAG) region; and restrict the SGC  
            to analyzing only state sources of funding.  The author  
            amended this bill on July 2nd to address the unique SCAG  
            situation and the CEQA concern, and is working with OCTA  
            regarding its other concerns.

          Assembly Votes:
               Floor:    53-25
               Appr: 12-5
               Trans:    11-4

          POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,                                             July 3,  
          2013.)

               SUPPORT:  Breathe California
                         California League of Conservation Voters
                         California WALKS
                         Catholic Charities Diocese of Stockton
                         Coalition for Clean Air
                         Coalition for Sustainable Transportation
                         National Parks Conservation Association
                         Natural Resources Defense Council
                         Rails-to-Trails Conservancy



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                         Sacramento Housing Alliance
                         The Nature Conservancy
                         Transform
                         WALK San Diego

               OPPOSED:  Orange County Transportation Authority