BILL ANALYSIS Ó
AB 2090
Page 1
ASSEMBLY THIRD READING
AB
2090 (Alejo)
As Amended May 27, 2016
Majority vote
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Transportation |16-0 |Frazier, Linder, | |
| | |Baker, Bloom, Brown, | |
| | |Chu, Daly, Dodd, | |
| | |Eduardo Garcia, | |
| | |Gomez, Kim, Mathis, | |
| | |Medina, Melendez, | |
| | |Nazarian, O'Donnell | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Appropriations |20-0 |Gonzalez, Bigelow, | |
| | |Bloom, Bonilla, | |
| | |Bonta, Calderon, | |
| | |Chang, Daly, Eggman, | |
| | |Gallagher, Eduardo | |
| | |Garcia, Roger | |
| | |Hernández, Holden, | |
| | |Jones, Obernolte, | |
| | |Quirk, Santiago, | |
| | |Wagner, Weber, Wood | |
| | | | |
AB 2090
Page 2
| | | | |
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SUMMARY: Allows funding from the Low Carbon Transit Operations
Program (LCTOP) to be expended to support the operation of
existing transit service if the agency declares a fiscal
emergency under the California Environmental Quality Act (CEQA).
Specifically, this bill:
1)Allows funds from the LCTOP be expended to support the
operation of existing bus or rail service if the following
criteria are met:
a) The governing board of the transit agency declares a
fiscal emergency, as defined by CEQA, within 90 days of the
agency requesting LCTOP funds;
b) The expenditure of the LCTOP funds is necessary to
sustain the transit agency's transit service in the year in
which the funds would be expended;
c) The governing board of the transit agency would be
forced to reduce or eliminate transit service if the
requested LCTOP funds are not received; and,
d) The governing board of the transit agency makes a
finding that a reduction in or elimination of existing
transit service would increase greenhouse gas (GHG)
emissions because customers would choose other
less-efficient modes of transportation.
2)Defines the criteria for which funds from LCTOP can be
AB 2090
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expended by the transit agency after they declare a fiscal
emergency under CEQA, including:
a) The expenditures support current bus or rail service
operating costs, including labor, fueling, maintenance, and
other costs to operate;
b) The transit agency demonstrates that each expenditure
directly sustains transit service that would otherwise be
reduced or eliminate in the upcoming year without the LCTOP
funds; and,
c) Transit agencies may not request LCTOP to support
existing transit service unless the agency declares a
fiscal emergency in each year under CEQA and for not more
than three consecutive years.
FISCAL EFFECT: According to the Assembly Appropriations
Committee, 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: LCTOP was created by SB 862 (Budget and Fiscal Review
Committee), Chapter 862, Statutes of 2014, as part of a
comprehensive package of programs to target GHG reductions in
California using funds generated by the state's cap and trade
program. LCTOP is administered by Caltrans and is continuously
appropriated 5% of GGRF of funds. In 2014-15, LCTOP received
$25 million, and in 2015-16 it was funded at $100 million.
AB 2090
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Specifically, LCTOP was created to provide operating and capital
assistance for transit agencies to reduce GHG emission 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, with each
project reducing GHG emissions. 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. Prior to receiving an
allocation, which is distributed by the State Controller
following the STA formula, eligible transit agencies must submit
a description of their proposed expenditures and demonstrate how
each expenditure will reduce GHG emissions.
As noted by the author, some transit agencies in the state are
facing fiscal challenges that prevent them from putting more new
bus or rail service out on the street, and they are currently
prohibited from using these vital state funds to supplement
their transit service. He adds that not only are these agencies
unable to provide new transit services, they are struggling to
maintain the level of service out on the street today. And
without sources of revenue, transit agencies may have to cut
back service, thus forcing some transit riders onto less
efficient, dirtier modes of transportation, which could in turn
actually increase GHG emissions.
Under this bill, to be able to use LCTOP funds to support
existing service, a transit agency would have to declare a
fiscal emergency under CEQA. Current law allows transit
agencies to be exempted from CEQA review of the reduction or
elimination of transit services and increases to fares, fees,
fines, rates and charges that support transit service when such
actions are undertaken as a result of a declared fiscal
emergency caused by the failure of revenues to adequately
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fund agency programs, facilities, and operations. 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.
If a transit agency declares a fiscal emergency, the use of
LCTOP funds may not fully offset all of the reductions or
changes needed to regain balance, but will help mitigate the
situation. This bill also includes a three-year limit on the
time one agency can use LCTOP for this purpose, which will help
ensure the funds serve only as temporary assistance.
Please see the policy committee analysis for full discussion of
this bill.
Analysis Prepared by:
Melissa White / TRANS. / (916) 319-2093 FN:
0003179