Amended in Assembly April 6, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2222

Introduced by Assembly Member Holden

February 18, 2016

An act to amend Section 39719 of the Health and Safety begin delete Code end delete begin insert Code, end insert and to add Part 4 (commencing with Section 75240) to Division 44 of the Public Resources Code, relating to greenhouse gases, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

AB 2222, as amended, Holden. begin delete Transit passes. end delete begin insert Greenhouse Gas Reduction Fund: Transit Pass Program. end insert

Existing law requires all moneys, except for fines and penalties, collected by the State Air Resources Board from the auction or sale of allowances as part of a market-based compliance mechanism relative to reduction of greenhouse gas emissions to be deposited in the Greenhouse Gas Reduction Fund. Existing law continuously appropriates 10% of the annual proceeds of the fund to the Transit and Intercity Rail Capital Program and 5% of the annual proceeds of the fund to the Low Carbon Transit Operations Program.

This bill would continuously appropriate $50,000,000 annually from the Greenhouse Gas Reduction Fund for the Transit Pass Program, to be administered by the Department of Transportation. The bill would begin delete provide for moneys made available for the program to end delete begin insert require that funding end insert be allocated by the Controller, as begin delete directed end delete begin insert specified, upon a determination end insert by the department, begin delete to support end delete begin insert that end insert transit pass programs of public agencies begin delete that end delete begin insert to end insert provide free or reduced-fare transit passes to public school students and community college, California State University, and University of California begin delete students. end delete begin insert meet certain requirements. end insert The bill would require the Department of Transportation, in coordination with the State Air Resources Board, to develop guidelines that describe begin insert the criteria that eligible transit providers shall use to make available free or reduced-fare transit passes to eligible participants and end insert the methodologies that begin delete recipient public agencies end delete begin insert eligible participants end insert would use to demonstrate that the proposed expenditures will reduce greenhouse gas emissions. The bill would require begin insert that end insert at least begin delete 50 percent end delete begin insert 30% end insert of the moneys allocated under the Transit Pass Program begin delete to end delete benefit disadvantaged communities, as specified. begin insert The bill would require eligible transit providers and eligible participants to enter into agreements for the distribution of free or reduced-fare transit passes to students end insert begin insert . end insert

begin insert

This bill would require that the guidelines ensure that funds from the program are used to expand eligibility or further reduce the cost of a transit pass under existing programs. The bill would require the department to develop performance measures and reporting requirements to evaluate the effectiveness of the program, including an annual update of the number of free or reduced-fare transit passes distributed to students and whether the program is increasing transit ridership among students. The bill would set a minimum allocation of $20,000 for each eligible transit provider and would provide for the distribution and allocation of remaining Transit Pass Program funds by formula to eligible transit providers.

end insert begin insert

The bill would require, for purposes of determining an eligible transit provider’s eligibility for funds distributed to a transportation planning agency from the Public Transportation Account, that free or discounted transit fare passes be calculated at their full retail value. The bill would authorize the use of funds from the Affordable Housing and Sustainable Communities Program, the Low Carbon Transit Operations Program, and other low carbon transportation programs to augment a free or reduced-fare transit pass program, as specified. By continuously appropriating moneys from the Greenhouse Gas Reduction Fund for the Transit Pass Program, the bill would make an appropriation.

end insert

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

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

SECTION 1.  

The Legislature finds and declares all of the
following:

begin insert

(a) California landmark laws and regulations for reducing
greenhouse gases address one of the most important issues of our
time, and dramatically increasing the use of public transportation
is a vital component in reducing greenhouse gas emissions by 80
percent by the year 2050.

end insert begin delete

(a)

end delete

begin insert (b) end insert  Student transit pass programs have been shown to increase
overall transit ridership and fill empty seats on trains and buses,
resulting in reduced costs per rider and improved service because
of higher demand.

begin delete

(b)

end delete

begin insert (c) end insert  Targeting student transit passes to middle school, high
school, college, and university students can promote the
development of lifelong transit riders and further bolster the
capacity and reliability of our transit systems.

begin delete

(c)

end delete

begin insert (d) end insert  Student transit pass programs in this state and across the
country have resulted in significant increases in transit ridership
and have made it easier and cheaper for students to get to schools
and to jobs.

begin delete

(d)

end delete

begin insert (e) end insert  Student transit pass programs can help the state reduce
greenhouse gas emissions, vehicle miles traveled, petroleum use,
and air pollution, and improve overall community health.

begin delete

(e)

end delete

begin insert (f) end insert  Student transit passes lower pollution around elementary
schools, thereby improving student health.

begin delete

(f)

end delete

begin insert (g) end insert  Schools are often the major generators of traffic in cities,
and student transit pass programs can help reduce the traffic and
parking problems in neighborhoods around schools.

begin delete

(g)

end delete

begin insert (h) end insert  Student transit pass programs can reduce the need for
colleges to use campus land for expensive parking structures when
this land and money could be better used for educational purposes.

begin delete

(h)

end delete

begin insert (i) end insert  Student transit pass programs have decreased the need to
drive to and from school, along with the costs associated with
driving to and from school, thereby reducing the overall cost of
school attendance and reducing parental burdens for working
families.

begin delete

(i)

end delete

begin insert (j) end insert  A University of California, Los Angeles, study of 35 college
and university student transit pass programs across the United
States in 2001 showed ridership increases of 71 to 200 percent
after the implementation of these programs.

SEC. 2.  

Section 39719 of the Health and Safety Code is
amended to read:

39719.  

(a) The Legislature shall appropriate the annual
proceeds of the fund for the purpose of reducing greenhouse gas
emissions in this state in accordance with the requirements of
Section 39712.

(b) To carry out a portion of the requirements of subdivision
(a), annual proceeds are continuously appropriated for the
following:

(1) Beginning in the 2015-16 fiscal year, and notwithstanding
Section 13340 of the Government Code, 35 percent of annual
proceeds are continuously appropriated, without regard to fiscal
years, for transit, affordable housing, and sustainable communities
programs as begin delete following: end delete begin insert follows: end insert

(A) Ten percent of the annual proceeds of the fund is hereby
continuously appropriated to the Transportation Agency for the
Transit and Intercity Rail Capital Program created by Part 2
(commencing with Section 75220) of Division 44 of the Public
Resources Code.

(B) Five percent of the annual proceeds of the fund is hereby
continuously appropriated to the Low Carbon Transit Operations
Program created by Part 3 (commencing with Section 75230) of
Division 44 of the Public Resources Code. Funds shall be allocated
by the Controller, according to requirements of the program, and
pursuant to the distribution formula in subdivision (b) or (c) of
Section 99312 of, and Sections 99313 and 99314 of, the Public
Utilities Code.

(C) Twenty percent of the annual proceeds of the fund is hereby
continuously appropriated to the Strategic Growth Council for the
Affordable Housing and Sustainable Communities Program created
by Part 1 (commencing with Section 75200) of Division 44 of the
Public Resources Code. Of the amount appropriated in this
subparagraph, no less than 10 percent of the annual proceeds, shall
be expended for affordable housing, consistent with the provisions
of that program.

(2) Beginning in the 2015-16 fiscal year, notwithstanding
Section 13340 of the Government Code, 25 percent of the annual
proceeds of the fund is hereby continuously appropriated to the
High-Speed Rail Authority for the following components of the
initial operating segment and Phase I Blended System as described
in the 2012 business plan adopted pursuant to Section 185033 of
the Public Utilities Code:

(A) Acquisition and construction costs of the project.

(B) Environmental review and design costs of the project.

(C) Other capital costs of the project.

(D) Repayment of any loans made to the authority to fund the
project.

(3)  begin insert (A) end insert begin insert   end insert Beginning in the 2016-17 fiscal year, fifty million
dollars ($50,000,000) annually from the proceeds of the fund is
hereby continuously appropriated to the Transit Pass Program
created pursuant to Part 4 (commencing with Section 75240) of
Division 44 of the Public Resources Code.

begin insert

(B) Funds shall be allocated to eligible transit providers in
accordance with the requirements of the Transit Pass Program
and the allocation method described in Section 75245 of the Public
Resources Code.

end insert

(c) In determining the amount of annual proceeds of the fund
for purposes of the calculation in subdivision (b), the funds subject
to Section 39719.1 shall not be included.

SEC. 3.  

Part 4 (commencing with Section 75240) is added to
Division 44 of the Public Resources Code, to read:

 

PART 4.  Transit Pass Program

 

75240.  

The Transit Pass Program is hereby created, to be
administered by the Department of Transportation. Moneys made
available for the program shall be allocated by the Controller, as
begin delete directed by the department, end delete begin insert provided in Section 75242, end insert to support
transit pass programs that provide free or reduced-fare transit
passes to public school students and community college, California
State University, and University of California students.

75241.  

begin delete An eligible applicant under the program shall be end delete begin insert As
used in this part, the following terms are defined as follows: end insert

begin insert

(a) “Department” means the Department of Transportation.

end insert

begin insert (b) end insert begin insert   end insert begin insert “Eligible participant” means end insert a public agency, including,
but not limited to, a transit operator, school district, community
college district, the California State University, begin insert or end insert the University
of begin delete California, or a city or county. end delete begin insert California. end insert

begin insert

(c) “Eligible transit provider” means a transportation agency,
transportation planning agency, or county transportation
commission that is eligible to receive funds from a state transit
assistance fund pursuant to the distribution formula in subdivision
(b) or (c) of Section 99312 of, and Sections 99313 and 99314 of,
the Public Utilities Code.

end insert begin insert

(d) “Program” means the Transit Pass Program established
pursuant to this part.

end insert

begin delete

75242.  

The Department of Transportation, in coordination with
the State Air Resources Board, shall develop guidelines that
describe the methodologies that recipient public agencies shall use
to demonstrate that the proposed expenditures will reduce
greenhouse gas emissions. Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of the Government Code does not
apply to the development of guidelines for the program pursuant
to this part.

end delete begin insert

begin insert 75242. end insert   

(a) Funding for the program is continuously
appropriated pursuant to Section 39719 of the Health and Safety
Code from the Greenhouse Gas Reduction Fund established
pursuant to Section 16428.8 of the Government Code.

(b) Moneys shall be allocated by the Controller consistent with
the requirements of this part and with Section 39712 of the Health
and Safety Code, upon a determination by the department that the
expenditures proposed by an eligible transit provider meet the
requirements of this part and the guidelines developed pursuant
to subdivision (d), and the amount of funding requested that is
currently available.

(c) (1) Moneys allocated for the program shall be expended to
provide low- or no-cost public transit passes to students through
programs that support new or existing transit pass programs.

(2) An eligible transit provider may consider granting priority
to an application from an eligible participant with an existing,
successful transit pass program, provided that the eligible
participant can demonstrate that the additional funds will further
reduce the cost of the transit pass or expand program eligibility.

(d) The department, in coordination with the State Air Resources
Board, shall develop guidelines that describe the criteria that
eligible transit providers shall use to make available free or
reduced-fare transit passes to eligible participants and the
methodologies that eligible participants shall use to demonstrate
that the proposed expenditures will reduce greenhouse gas
emissions. The Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code) shall not apply to the development of
guidelines for the program pursuant to this part.

(1) The guidelines shall ensure that funds from the program are
used to expand eligibility or further reduce the cost of a transit
pass under existing programs.

(2) The department shall develop performance measures and
reporting requirements to evaluate the effectiveness of the program,
including an annual update of the number of free or reduced-fare
transit passes distributed to students and whether the program is
increasing transit ridership among students.

(e) Eligible transit providers and eligible participants shall
enter into agreements pursuant to the guidelines developed
pursuant to subdivision (d) to ensure that free or reduced-fare
transit passes are distributed to students.

end insert

75243.  

begin insert (a) end insert begin insert   end insert At least begin delete 50 end delete begin insert 33 end insert percent of the moneys allocated
pursuant to begin delete this part end delete begin insert the program end insert shall benefit disadvantaged
communities consistent with the guidance provided by the State
Air Resources Board pursuant to Section 39715 of the Health and
Safety Code.

begin insert

(b) Moneys from the Affordable Housing and Sustainable
Communities Program, the Low Carbon Transit Operations
Program, and other low carbon transportation programs may be
used to augment a free or reduced-fare transit pass program and
remain subject to the requirements to benefit disadvantaged
communities consistent with the guidance provided by the State
Air Resources Board pursuant to Section 39715 of the Health and
Safety Code.

end insert

begin insert

begin insert 75244. end insert   

For the purposes of determining an eligible transit
provider’s eligibility for funds distributed to a transportation
planning agency pursuant to the distribution formula in
subdivisions (b) and (c) of Section 99312 of, and Sections 99313
and 99314 of, the Public Utilities Code, free or reduced-fare transit
passes made available pursuant to the program shall be calculated
at their full retail value.

end insert begin insert

begin insert 75245. end insert   

(a) Each eligible transit provider shall receive twenty
thousand dollars ($20,000) from the program.

(b) After the initial twenty-thousand-dollar ($20,000) amount
is allocated, the remaining program funds shall be allocated to
eligible transit providers pursuant to the distribution formula in
subdivisions (b) and (c) of Section 99312 of, and Sections 99313
and 99314 of, the Public Utilities Code.

(c) Any funds allocated during a fiscal year not distributed
pursuant to subdivisions (a) or (b) shall be added to the allocation
for the following fiscal year to be distributed pursuant to this
section.

end insert