Amended in Assembly May 31, 2016

Amended in Assembly April 6, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2222

Introduced by Assembly Member Holden

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(Coauthor: Assembly Member Gonzalez)

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February 18, 2016

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

LEGISLATIVE COUNSEL’S DIGEST

AB 2222, as amended, Holden. Greenhouse Gas Reduction Fund: Transit Pass Program.

begin insert The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. end insert Existing law requires all moneys, except for fines and penalties, collected by the State Air Resources Board from begin delete the auction or sale of allowances as part of end delete a market-based compliance mechanism begin delete relative to reduction of greenhouse gas emissions end delete to be deposited in the Greenhouse Gas Reduction Fund. begin delete 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. end delete

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

This bill would require that the guidelines ensure that begin delete funds end delete begin insert moneys end insert 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 begin insert pupils and end insert students and whether the program is increasing transit ridership among begin insert pupils and end insert 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 begin delete funds end delete begin insert moneys end insert by formula to eligible transit providers.

The bill would require, for purposes of determining an eligible transit provider’s eligibility for begin delete funds end delete begin insert moneys end insert 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 begin delete funds end delete begin insert moneys end insert 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. begin delete By continuously appropriating moneys from the Greenhouse Gas Reduction Fund for the Transit Pass Program, the bill would make an appropriation. end delete

Vote: majority. Appropriation:  begin delete yes end delete begin insert no end insert . 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:

(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.

(b) 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.

(c) Targeting student transit passes to begin insert low-income end insert 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.

(d) 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.

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

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

(g) 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.

(h) 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.

(i) 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.

(j) 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.

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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 follows:

(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) (A) 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.

(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.

(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.

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begin delete SEC. 3. end delete

begin insert SEC. 2. end insert   

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 begin delete program end delete begin insert program, upon appropriation by the
Legislature from the Greenhouse Gas Reduction Fund, created
pursuant to Section 16428.8 of the Government Code, end insert shall be
allocated by the begin delete Controller, as provided in Section 75242, end delete
begin insert Controller end insert to support transit pass programs that provide free or
reduced-fare transit passes to begin delete public school students and community
college, California State University, and University of California
students. end delete begin insert any of the following: end insert

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(a) Pupils attending public middle schools or high schools that
are eligible for funding under Title I of the federal No Child Left
Behind Act of 2001 (20 U.S.C. Sec. 6301 et seq.).

end insert begin insert

(b) Students attending a California community college who
qualify for a waiver of student fees pursuant to subdivision (g) of
Section 76300 of the Education Code.

end insert begin insert

(c) A student who attends a campus of the California State
University or the University of California and who receives an
award under the Cal Grant Program established in Chapter 1.7
(commencing with Section 69430) of Part 42 of Division 5 of Title
3 of the Education Code, the federal Pell Grant Program
established under Title IV of the federal Higher Education Act of
1965 (20 U.S.C. Sec. 1070 et seq.), or both.

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75241.  

As used in this part, the following terms are defined as
follows:

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

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

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

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

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75242.  

(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) 

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begin insert 75242. end insert   

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begin insert (a) end insert begin insert   end insert 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 begin delete (d), end delete begin insert (c), end insert and the amount of
funding requested that is currently available.

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(c)

end delete

begin insert (b) end insert  (1) Moneys allocated for the program shall be expended to
provide low- or no-cost public transit passes to begin delete students end delete begin insert students,
as specified in Section 75240, end insert 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 begin delete funds end delete begin insert moneys end insert will
further reduce the cost of the transit pass or expand program
eligibility.

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(d)

end delete

begin insert (c) end insert  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
begin insert the end insert guidelines for the program begin insert established end insert pursuant to this part.

(1) The guidelines shall ensure that begin delete funds end delete begin insert moneys end insert 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.

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(e)

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

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(e) Moneys from the Affordable Housing and Sustainable
Communities Program (Part 1 (commencing with Section 75200)),
the Low Carbon Transit Operations Program (Part 3 (commencing
with Section 75230)), and other low carbon transportation
programs may be used to augment a free or reduced-fare transit
pass program. Those moneys shall 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

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75243.  

(a) At least 33 percent of the moneys allocated pursuant
to the program 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.

(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 delete

75244.  

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

75245.  

(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 begin delete funds end delete begin insert moneys end insert shall be allocated
to eligible transit providers pursuant to the distribution formula in
subdivisions (b) and (c) of Section 99312 begin delete of, end delete begin insert of end insert and Sections 99313
and 99314 begin delete of, end delete begin insert of end insert the Public Utilities Code.

(c) Any begin delete funds end delete begin insert moneys end insert 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.