BILL ANALYSIS Ó
AB 2090
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Date of Hearing: April 27, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2090 (Alejo) - As Amended April 7, 2016
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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
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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
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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