BILL ANALYSIS Ó AB 2090 Page 1 Date of Hearing: April 27, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2090 (Alejo) - As Amended April 7, 2016 ----------------------------------------------------------------- |Policy |Transportation |Vote:|16 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill allows funding from the Low Carbon Transit Operations Program (LCTOP) to sustain a transit agency's existing service if the agency declares a fiscal emergency under existing provisions of the California Environmental Quality Act (CEQA). An agency could not request such funds for more than three consecutive years and would have to declare a fiscal emergency in each year to receive funds for that year. AB 2090 Page 2 FISCAL EFFECT: Potential significant cost pressure on the LCTOP by expanding criteria for use of funds set aside for this program and thus likely increasing the number of transit agencies that would be eligible to apply for funding. Caltrans may incur additional administrative costs to revise program guidelines and to review additional funding applications, but these costs should be absorbable. COMMENTS: 1)Background. LCTOP was created to provide operating and capital assistance for transit agencies to reduce greenhouse gas (GHG) emissions and improve mobility, with a priority on serving disadvantaged communities. Approved projects in LCTOP support new or expanded bus or rail services and expand intermodal transit facilities and may include equipment acquisition, fueling, maintenance, and other costs to operate those services or facilities. For transit agencies whose service area includes disadvantaged communities, at least 50% of the total moneys received shall be expended on projects that will benefit disadvantaged communities. LCTOP is administered by Caltrans and is funded by a continuous appropriation of 5% of Greenhouse Gas Fund (GGRF) revenues. LCTOP received $25 million in 2014-15 and $100 million in 2015-16. The Governor's 2016-17 Budget proposes $100 million for the program. 2)Purpose. According to the author, due to current fiscal AB 2090 Page 3 challenges, some transit agencies are unable to expand service, thus are prohibited them from seeking LCTOP funds. Moreover, some agencies are struggling to maintain existing service levels, which could force service cutbacks, thus forcing some transit riders onto less efficient, dirtier modes of transportation, resulting in increased GHG emissions. This bill is sponsored by Santa Cruz Metropolitan Transit District, which asserts it is experiencing a growing structural deficit caused by rising operations costs and flat ridership amidst diminished local, state, and federal support. It contends that the funding flexibility offered by this bill will allow it to avoid making a 25% reduction in service that would impact 46% of core ridership. Under CEQA, a "fiscal emergency" means that the agency is projected to have negative funding within one year from the date of declaration. The transit agency must conduct a public hearing to consider the action prior to declaring the fiscal emergency. This bill also includes a three-year limit on the time one agency can use LCTOP to offset a fiscal emergency. Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081