California Legislature—2015–16 Regular Session

Assembly BillNo. 2090

Introduced by Assembly Member Alejo

February 17, 2016

An act to amend Section 75230 of the Public Resources Code, relating to transportation, and making an appropriation therefor.


AB 2090, as introduced, Alejo. Low Carbon Transit Operations Program.

The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation. Existing law continuously appropriates specified portions of the annual proceeds in the fund to various programs, including 5% for the Low Carbon Transit Operations Program, which provides operating and capital assistance for transit agencies to reduce greenhouse gas emissions and improve mobility, with a priority on serving disadvantaged communities.

This bill would additionally authorize moneys appropriated to the program to be expended to support the operation of existing bus or rail service if the governing board of the requesting transit agency declares a fiscal emergency and other criteria are met, thereby expanding the scope of an existing continuous appropriation.

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1


Section 75230 of the Public Resources Code is
2amended to read:



(a) The Low Carbon Transit Operations Program is
4hereby created to provide operating and capital assistance for transit
5agencies to reduce greenhouse gas emissions and improve mobility,
6with a priority on serving disadvantaged communities.

7(b) Funding for the program is continuously appropriated
8pursuant to Section 39719 of the Health and Safety Code from the
9Greenhouse Gas Reductionbegin delete Fundend deletebegin insert Fund,end insert established pursuant to
10Section 16428.8 of the Government Code.

11(c) Funding shall be allocated by the Controller consistent with
12the requirements of this part and with Section 39719 of the Health
13and Safety Code, upon a determination by the Department of
14Transportation that the expenditures proposed by a transit agency
15meet the requirements of this part and guidelines developed
16pursuant to subdivision (f), andbegin insert thatend insert the amount of funding
17requestedbegin delete thatend delete is currently available.

18(d) begin insert(1)end insertbegin insertend insert Moneys for the program shall be expended to provide
19transit operating or capital assistance that meets all of the following

begin delete


end delete

22begin insert(A)end insert Expenditures supporting new or expanded bus or rail
23services, new or expanded water-borne transit, or expanded
24intermodal transit facilities, and may include equipment acquisition,
25fueling, and maintenance, and other costs to operate those services
26or facilities.

begin delete


end delete

28begin insert(B)end insert The recipient transit agency demonstrates that each
29expenditure directly enhances or expands transit service to increase
30mode share.

begin delete


end delete

32begin insert(C)end insert The recipient transit agency demonstrates that each
33expenditure reduces greenhouse gas emissions.

begin insert

P3    1(2) (A) Moneys for the program may additionally be expended
2to support the operation of existing bus or rail service if all of the
3following occurs:

end insert
begin insert

4(i) The governing board of the transit agency declares a fiscal
5emergency, as defined in paragraph (2) of subdivision (d) of
6Section 21080.32, within 90 days prior to the agency requesting
7the funds.

end insert
begin insert

8(ii) The expenditure of the requested funds is necessary to
9sustain the transit agency’s transit service in the calendar year in
10which the requested funds are to be expended.

end insert
begin insert

11(iii) The governing board of the transit agency would be
12required to reduce or eliminate transit service if the requested
13funds are not received.

end insert
begin insert

14(iv) The governing board makes a finding that a reduction in,
15or elimination of, transit service would increase greenhouse gas
16emissions because transit customers would choose other
17less-efficient modes of transportation.

end insert
begin insert

18(B) Moneys allocated for the purpose of this paragraph shall
19be expended to provide transit operating assistance that meets all
20of the following criteria:

end insert
begin insert

21(i) The expenditures support current bus- or rail-service
22operating costs and may include labor, fueling, maintenance, and
23other costs to operate and maintain those services.

end insert
begin insert

24(ii) The recipient transit agency demonstrates that each
25expenditure directly sustains transit service that would otherwise
26be reduced or eliminated in the upcoming year if those funds were
27not received.

end insert
begin insert

28(iii) The recipient transit agency does not request funds for these
29 purposes over consecutive funding years unless the transit agency
30has declared a fiscal emergency in each year consistent with clause
31(i) of subparagraph (A).

end insert

32(e) For transit agencies whose service areas include
33disadvantagedbegin delete communitiesend deletebegin insert communities,end insert as identified pursuant
34to Section 39711 of the Health and Safety Code, at least 50 percent
35of the total moneys received pursuant to this chapter shall be
36expended on projects or services that meetbegin insert theend insert requirements of
37subdivision (d) and benefit the disadvantaged communities,
38consistent with the guidance developed by the State Air Resources
39Board pursuant to Section 39715 of the Health and Safety Code.

P4    1(f) The Department of Transportation, in coordination with the
2State Air Resources Board, shall develop guidelines that describe
3the methodologies that recipient transit agencies shall use to
4demonstrate that proposed expenditures will meet the criteria in
5subdivisions (d) and (e) and establish the reporting requirements
6for documenting ongoing compliance with those criteria.

7(g) begin deleteChapter 3.5 end deletebegin insertThe Administrative Procedure Act (Chapter 3.5 end insert
8(commencing with Section 11340) of Part 1 of Division 3 of Title
92 of the Governmentbegin delete Codeend deletebegin insert Code)end insert does not apply to the
10development of guidelines for the program pursuant to this section.

11(h) A transit agency shall submit the following information to
12the Department of Transportation before seeking a disbursement
13of funds pursuant to this part:

14(1) A list of proposed expense types for anticipated funding

16(2) The documentation required by the guidelines developed
17pursuant to subdivision (f) to demonstrate compliance with
18subdivisions (d) and (e).

19(i) Before authorizing the disbursement of funds, thebegin delete department,end delete
20begin insert Department of Transportation,end insert in coordination with the State Air
21Resources Board, shall determine the eligibility, in whole or in
22part, of the proposed list of expense types, based on the
23documentation provided by the recipient transit agency to ensure
24ongoing compliance with the guidelines developed pursuant to
25subdivision (f).

26(j) Thebegin delete departmentend deletebegin insert Department of Transportationend insert shall notify
27the Controller of approved expenditures for each transitbegin delete agency,end delete
28begin insert agencyend insert and the amount of the allocation for each transit agency
29determined to be available at that time of approval.

30(k) The recipient transit agency shall provide annual reports to
31the Department of Transportation, in the format and manner
32prescribed by the department, consistent with the internal
33administrative procedures for use of fund proceeds developed by
34the State Air Resources Board.

35(l) The Department of Transportation and recipient transit
36agencies shall comply with the guidelines developed by the State
37Air Resources Board pursuant to Section 39715 of the Health and
38Safety Code to ensure that the requirements of Section 39713 of
39the Health and Safety Code are met to maximize the benefits to
P5    1disadvantagedbegin delete communitiesend deletebegin insert communities,end insert asbegin delete described inend deletebegin insert identified
2pursuant toend insert
Section 39711 of the Health and Safety Code.