BILL ANALYSIS Ó
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2015 - 2016 Regular
Bill No: AB 2090 Hearing Date: 6/21/2016
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|Author: |Alejo |
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|Version: |5/27/2016 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Manny Leon |
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SUBJECT: Low Carbon Transit Operations Program
DIGEST: This bill allows funding from the Low Carbon Transit
Operations Program (LCTOP) be expended to support the operation
of existing bus or rail service if the specified criteria is
met.
ANALYSIS:
Existing law:
1)Requires the California Air Resources Board (CARB), pursuant
to AB 32 (Núñez, Chapter 488, Statutes of 2006) to develop a
plan of how to reduce statewide greenhouse gas (GHG) emissions
to 1990 levels by 2020. Under AB 32, CARB is authorized to
include the use of market-based mechanisms to comply with
these regulations (i.e., cap and trade).
2)Requires regions, pursuant to t SB 375 (Steinberg, Chapter
728, Statutes of 2008) to prepare a regional transportation
plan that includes a sustainable communities strategy (SCS)
designed to achieve the regional targets for GHG emission
reduction.
3)Establishes the Greenhouse Gas Reduction Fund (GGRF) in the
State Treasury and requires all money collected pursuant to
cap- and- trade, with limited exceptions, be deposited into
the fund, and makes the GGRF funds available for appropriation
by the Legislature.
AB 2090 (Alejo) Page 2 of ?
4)Establishes LCTOP, administered by the California Department
of Transportation (Caltrans), and continuously appropriates 5%
of GGRF fund proceeds for transit operations to expand
service, with a priority on serving disadvantaged communities.
5)Requires that a minimum of 25% of the moneys available in GGRF
be used to benefit disadvantaged communities.
6)Provides funding for public transportation through the
Transportation Development Act (TDA), including State Transit
Assistance (STA) which is derived from the statewide sales tax
on diesel fuel. STA funds are appropriated by the Legislature
and are allocated by a formula, with 50% being allocated
according to population and 50% being allocated according to
transit operator revenues from the prior fiscal year.
7)Requires transit operators to maintain a specified ratio of
fare revenues to operating costs in order to be eligible to
receive TDA funds.
This bill:
1)Allows funds from LCTOP to 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 the California
Environmental Quality Act (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
AB 2090 (Alejo) Page 3 of ?
d) The governing board of the transit agency makes a
finding that a reduction in or elimination of existing
transit service would increase GHG emissions because
customers would choose other less-efficient modes of
transportation
2)Defines the criteria for which funds from LCTOP can be
expended by the transit agency after it declares a fiscal
emergency under CEQA, as specified
COMMENTS:
1)Purpose. The author asserts, "AB 2090 will provide transit
agencies with an additional tool for maintaining current
transit service levels during fiscal emergencies, with the
acknowledgement that severe funding challenges hurt transit
ridership and jeopardize the state's long-term greenhouse gas
(GHG) emission reduction goals. An important part of meeting
the state's GHG emission reduction goals is not only to expand
existing transit services, but also to maintain existing
services to prevent people from having to take to the road in
their own vehicles."
2)LCTOP. LCTOP was created by SB 862 (Committee on Budget and
Fiscal Review, 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. These programs include affordable housing and
sustainable communities, transit and intercity rail capital
projects, and high-speed rail.
Specifically, LCTOP was created to provide operating and
capital assistance for transit agencies to reduce GHG
emissions and improve mobility, with a priority on serving
disadvantaged communities. 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.
Prior to receiving an allocation, which is distributed by the
State Controller through the STA formula, eligible transit
agencies must submit a description of their proposed
AB 2090 (Alejo) Page 4 of ?
expenditures and demonstrate how each expenditure will reduce
GHG emissions. Approved projects in LCTOP may include
equipment acquisition, fueling, maintenance, and other costs
to operate new or expanded services and/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.
3)Greater flexibility. AB 2090 will allow transit agencies to
use LCTOP funds to support existing service if a transit
agency declares a fiscal emergency under CEQA. This increased
flexibility will allow transit agencies struggling to maintain
services with a vital funding option. For example, writing in
support of the bill, the Santa Cruz Metropolitan Transit
District notes, "the Santa Cruz Metropolitan Transit District
is experiencing a significant and growing structural deficit
caused by rising operations costs and flat ridership amidst
diminishing local, state, and federal support. The
flexibility provided by AB 2090 will allow the agency to avoid
making a counterproductive 25% reduction in service that would
impact 46% of the agency's core ridership."
4)Double-referral. This bill is also referred to the Senate
Committee on Environmental Quality.
Related Legislation:
SB 862 (Committee on Budget and Fiscal Review) - Chapter 36,
Statues of 2014, created and funded the Affordable Housing and
Sustainable Communities,
the Low Carbon Transportation, and the Low Carbon Transit
Operations programs.
SB 535 (de León), Chapter 830, Statutes of 2012) - required,
among other things, that a minimum of 25% of the moneys
available in GGRF be used to benefits disadvantaged communities.
AB 32 (Núñez), Chapter 488, Statutes of 2006) - created the
California Global Warming Solutions Act of 2006 and required ARB
to adopt GHG reduction measures to ensure that statewide
emissions are reduced to 1990 levels by 2020.
FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes
AB 2090 (Alejo) Page 5 of ?
Local: No
Assembly Votes:
Floor: 77-1
Approps: 20-0
Trans: 16-0
POSITIONS: (Communicated to the committee before noon on
Wednesday,
June 15, 2016.)
SUPPORT:
Santa Cruz Metropolitan Transit District (Sponsor)
Association of Monterey Bay Area Governments
California Transit Association
Honorable Cynthia Mathews, Mayor, city of Santa Cruz
Monterey-Salinas Transit
Orange County Transportation Authority
Riverside Transit Agency
San Francisco Bay Area Transit District
Santa Cruz County Regional Transportation Commission
Transportation Agency for Monterey County
Ventura County Transportation Commission
OPPOSITION:
None received
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