BILL ANALYSIS Ó
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator Wieckowski, Chair
2015 - 2016 Regular
Bill No: AB 2222
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|Author: |Holden |
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|Version: |5/31/2016 |Hearing | 6/29/2016 |
| | |Date: | |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Rebecca Newhouse |
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SUBJECT: Greenhouse Gas Reduction Fund: Transit Pass Program.
ANALYSIS:
Existing law:
1) Under the California Global Warming Solutions Act of 2006 (also
known as AB 32), requires the California Air Resources Board
(ARB) to determine the 1990 statewide greenhouse gas (GHG)
emissions level and approve a statewide GHG emissions limit
that is equivalent to that level, to be achieved by 2020, and
to adopt GHG emissions reductions measures by regulation. ARB
is authorized to include the use of market-based mechanisms to
comply with these regulations. (Health and Safety Code §38500
et seq.)
2) Establishes the Greenhouse Gas Reduction Fund (GGRF) in the
State Treasury, requires all moneys, except for fines and
penalties, collected pursuant to a market-based mechanism be
deposited in the fund. (Government Code §16428.8)
3) Prohibits the state from approving allocations for a measure or
program using GGRF moneys except after determining that the use
of those moneys furthers the regulatory purposes of AB 32, and
requires moneys from the GGRF be used to facilitate the
achievement of reductions of GHG emissions in California. (HSC
§39712)
4) Establishes the Low Carbon Transit Operations Program (LCTOP),
funded through a continuous appropriation of the GGRF, to fund
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capital improvements and operational investments that reduce
GHG emissions and modernize California's intercity, commuter,
and urban rail systems to achieve specified goals.
This bill:
1) Creates the Transit Pass Program, to be funded from the GGRF
upon appropriation by the Legislature, and administered by the
state Department of Transportation (Caltrans).
2) Requires the program to support new or existing programs that
provide free- or reduced-fare transit passes to any of the
following:
a) Students attending public middle schools or high schools
that are eligible for funding under the federal No Child
Left Behind Act.
b) Students attending a community college who qualify for a
waiver of student fees.
c) Students attending a California State University (CSU) or
University of California (UC) campus who receive an award
under the state Cal Grant or federal Pell Grant program.
3) Defines an eligible transit provider as a transportation
agency, transportation planning agency, or county
transportation commission that is eligible to receive State
Transit Assistance program funds.
4) Defines an eligible participant as a public agency, including,
but not limited to, a transit operator, school district,
community college district, CSU, or UC.
5) Authorizes an eligible transit provider to consider
prioritizing an application from an eligible participant with
an existing, successful transit pass program, provided the
participant can demonstrate that additional funding will
further reduce the cost of the transit pass or expand program
eligibility.
6) Requires Caltrans, in coordination with ARB, to develop
guidelines and reporting requirements for the program,
including, but not limited to, requiring participants to
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demonstrate that proposed expenditures will reduce GHG
emissions; ensuring program funds are used to expand
eligibility or further reduce the cost of a transit pass; and
developing performance measures to evaluate whether the program
is increasing transit ridership among students.
7) Requires transit providers and participants to enter into
agreements to ensure that free or reduced-fare transit passes
are distributed to students.
8) Authorizes funds from the Affordable Housing and Sustainable
Communities Program (AHSC), LCTOP, and other low carbon
transportation programs to be used to augment a free or
reduced-fare transit pass program.
9) Requires that free or reduced-fare transit passes offered under
the program are counted at full retail value for the purposes
of the transit provider's eligibility for State Transit
Assistance funding.
10)Provides that each eligible transit provider shall receive
$20,000 from the program. After the initial $20,000 amount is
allocated, remaining program funds shall be distributed
pursuant to the State Transit Assistance formula. Any funds
allocated, but not distributed, during a fiscal year shall be
distributed the following fiscal year.
Background
1) Cap-and-trade auction revenue. Since November 2012, ARB has
conducted 15 cap-and-trade auctions, generating over $4 billion
in proceeds to the state.
State law specifies that the auction revenues must be used to
facilitate the achievement of GHG emissions reductions and
outlines various categories of allowable expenditures.
Budget allocations. SB 862 (Committee on Budget and Fiscal
Review, Chapter 36, Statutes of 2014), a budget trailer bill,
established a long-term cap-and-trade expenditure plan by
continuously appropriating portions of the funds for designated
programs or purposes. The legislation appropriates 25% for the
state's high-speed rail project, 20% for affordable housing and
sustainable communities grants, 10% to the Transit and
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Intercity Rail Capital Program, and 5% for the Low-Carbon
Transit Operations Program. The remaining 40% is available for
annual appropriation by the Legislature.
The Governor's 2016-17 proposed budget appropriates over $3
billion to a variety of programs and projects in the
transportation, energy, natural resources, and waste diversion
sectors.
2) GGRF public transportation funding. The Transit and Intercity
Rail Capital Program (TIRCP) funds transformational capital
improvements for GHG emission reductions that expand and
improve rail service, and integrate state and local rail and
other transit systems, including the high-speed rail system.
The TIRCP has received $265 million to date, with $200 million
estimated for the 2016-17 fiscal year.
The LCTOP provides operating and capital assistance to transit
agencies to reduce GHG emissions and improve mobility, with a
priority on serving disadvantaged communities. The program
requires transit agencies to demonstrate that each expenditure
directly enhances or expands transit service to increase mode
share and that each expenditure reduces greenhouse gas
emissions. Eligible projects include expanded, new, or enhanced
transit services; conversion or retrofit of transit vehicles
and equipment to zero-emission; expanded intermodal transit
facilities; and infrastructure to support zero-emission or
plug-in hybrid vehicles. The program guidelines also specify
that free or reduced-fair transit vouchers are eligible
projects under LCTOP.
For agencies whose service area includes disadvantaged
communities, at least 50% of the total moneys received is
required to benefit disadvantaged communities.
The LCTOP is not a competitive program, but based on project
eligibility according to statute, program guidelines, and an
established transportation funding formula.
This program is administered by Caltrans in coordination with
ARB and the State Controller's Office. LCTOP funding to date
is $145 million, with $100 million estimated for the 2016-17
fiscal year.
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3) Transit passes. Currently, many transit agencies in California
provide free or reduced fare transit passes to students for use
on their systems. For example, the San Francisco (SF) Muni
offers the Free Muni for Youth program that gives free access
to Muni to low and moderate income youth, from five to 18 years
old. Sacramento Regional Transit also offers students from age
five to 18 a 50% discounted fare for monthly passes. The Los
Angeles County Metropolitan Transportation Authority (Metro)
has been offering reduced fares for both K-12 and college
students since the early 1990s. Specifically, Metro has
programs for both college students, with a 54% discount on a
monthly pass, and a 76% discount for the K-12 program. Most of
the programs require proof of the students being registered in
school; however the SF Muni program is based upon family income
level. Additionally, transit agencies have developed
agreements directly with schools in their jurisdictions to
partner and provide free or reduced passes to all students.
The University of California Los Angeles (UCLA) and the
University of Southern California (USC) provide free passes for
their students in partnership with Metro. In the Sacramento
area, the University of California at Davis offers a variety of
travel options at reduced rates for students and faculty.
Comments
1) Purpose of Bill. According to the author, "In order to achieve
California's greenhouse gas reduction goals, our state must
take steps to reduce automobile trips and promote the use and
growth of our mass transit systems. AB 2222 targets one of the
largest 'drive-alone' populations in our state, students, and
provides meaningful financial incentives to promote transit
ridership. AB 2222 not only reduces the financial burden of
transportation on California students but will promote active
transportation and transit usage in the next generation of
Californians."
2) Will funds be additional, or replacement? As noted in the
background, there are numerous reduced fare programs across the
state for colleges in California, as well as reduced fare
programs for youth populations. Will this program add to and
enhance those existing programs, or will moneys from the
program created through this bill be used to simply displace
current funding for reduced fare programs, so that those
general funds can be used by participants for other purposes?
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3) Middle and high school students. According to the author, AB
2222 is intended to address GHG and other transportation
impacts from "drive alone" populations of college and
high-school students, and cites an article written about
results of a program providing unlimited access to transit at
UCLA. The article states that bus ridership for commuting to
campus increased by 56% during the first year, and solo driving
fell by 20%.
In addition to targeting college students, AB 2222 includes
middle school students, who are too young to drive to school,
and high school students, many of whom are also too young to
drive. TransForm, one of the sponsors of this bill, states
that parents of schoolchildren add to traffic congestion by
dropping off and picking up their children, and that teenagers
often skip school because it is too difficult to get to and
from school. Other supporters state that early and regular
interaction with transit is likely to create lifetime transit
users.
By including school districts (over 1800 in California), and
targeting low-income middle school and high school students,
the scope is significantly expanded beyond "drive alone"
populations, such as college students.
4) Creating another grant program. Establishing a new program
takes effort and money to administer. For example, public
engagement/outreach and workshops are necessary to create the
program; staff time is required to review proposals and process
funds. Also, anytime a new program is created, and funded
through GGRF, there are various requirements that need to be
met by the agency administering the program as well as ARB.
ARB must provide new program guidance on how to report and
quantify GHG reductions and on how to maximize benefits to
disadvantaged communities. Each administering agency has to do
an expenditure report to document how the program will reduce
GHG emissions. Creating new programs that overlap with
existing programs that serve the same purpose may create
governmental inefficiencies and avoidable expenses.
Specifically, AB 2222 creates a new program using a similar
framework to current state law that establishes the LCTOP.
Like LCTOP, guidelines for the program are developed by
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Caltrans in coordination with ARB, moneys are allocated by the
Controller, and transit agencies are allocated funds. In fact,
the guidelines for LCTOP specify that eligible projects under
the program include reduced fare transit vouchers. The list of
LCTOP projects includes several expenditures for reduced
transit fares targeting various populations, including reduced
fares for Mendocino college students, students in the City of
LA, and a student transit pass program in the North County
Transit District.
Is an additional program needed when these types of projects
are eligible, and already being funded, under LCTOP? It may
instead be more prudent to increase the appropriation for LCTOP
to accommodate a greater number of reduced fare transit pass
programs.
Additionally, a program that integrates reduced fares with new
or expanded transit routes, such as LCTOP, instead of a program
focused solely on reduced fares, may work even more effectively
to increase ridership and change behaviors.
5) Existing programs qualify. Existing programs are eligible for
funding through this program if moneys used for those programs
increase eligibility or further reduce the cost of a transit
pass. It follows, then, that AB 2222 allows existing programs
to qualify for funding even with the most modest of fare
decreases. This raises questions with regard to the
additionality of GHG emissions reductions in those situations,
and to what extent the program will result in GHG emissions
reductions. How significant do fare decreases need to be to
change behaviors and result in GHG emissions reductions?
Additionally, authorizing existing transit fare programs under
the bill raises implementation questions. For example, moneys
received pursuant to this bill can be used for existing reduced
transit fare programs, but only for low-income students as
defined in the bill. It is unclear how this requirement will be
implemented and seems to create administrative difficulties for
ensuring the moneys are only spent to subsidize transit passes
for low-income students.
6) Prioritization of GHG emissions reductions? AB 2222 does not
specify how a transit provider prioritizes which participants,
including transit operator, school district, community college,
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a CSU, or a UC, receive reduced or free transit passes. The
only mention of prioritization in the bill is a provision
authorizing eligible transit providers to consider granting
priority to applicants with existing successful transit pas
programs.
7) Amendment. Although the program created in AB 2222 has a
laudable goal of increasing transit ridership, it is unclear
that the program is structured in a way to ensure significant
GHG emissions reductions. An amendment is needed to remove
provisions related to the use of GGRF moneys to fund the
program.
Related/Prior Legislation
SB 951 (McGuire) would have created a pilot program to provide
veterans with free access to transit services. This bill was held
on the suspense file in Senate Appropriations Committee.
DOUBLE REFERRAL:
This measure was heard in the Senate Transportation and Housing
Committee on June 21, 2016, and passed out of committee with a
vote of 7-0.
SOURCE: TransForm, MoveLA
SUPPORT:
Amigos de los Rios
Aspiranet
Association for Commuter Transportation, Southern California
Chapter
Bike San Gabriel
California Bicycle Coalition
California Federation of Teachers
California Housing Partnership Corporation
California Pan Ethnic Health Network
California ReLEAF
California State Polytechnic University, Pomona
California State Student Association
California State University
CalPIRG
Catholic Charities of the diocese of Stockton
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Center for Community Action and Environmental Justice
Circulate San Diego
Climate Resolve
Coalition for Clean Air
East LA Community Corporation
East Los Angeles College
FAST
Gamaliel of California
Housing California
Investing in Place
Kings Canyon Unified School District
LA Mas
LAANE
Leadership Council for Justice and Accountability
Long Beach Community College District
Los Angeles Business Council
Los Angeles Community College District
Los Angeles County Bicycle Coalition
Los Angeles County Metropolitan Transportation Authority
Los Angeles Neighborhood Initiative
Los Angeles Urban League
Los Angeles Walks
Los Rios Community College District
Mt. San Antonio College
Orange County Transportation Authority
Pacoima Beautiful
Pasadena Area Community College District
Peralta Community College District
PolicyLink
Prevention Institute
Public Advocates
Safe Routes to School
San Diego Community College District
San Francisco Bay Area Rapid Transit District
San Jose Evergreen Community College District
SLATE Z
Southeast Asian Community Alliance
The Trust for Public Land
Union of Concerned Scientists
University of California, Los Angeles
University of Southern California (USC)
Ventura County Transportation Commission
Youth Policy Institute
1 Individual
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OPPOSITION:
California Taxpayers Association
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