BILL ANALYSIS Ó
SB 9
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Date of Hearing: August 19, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 9
(Beall) - As Amended August 17, 2015
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|Policy |Transportation |Vote:|16 - 0 |
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| |Natural Resources | |9 - 0 |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill makes numerous modifications to the Transit and
Intercity Rail Capital Program (TIRCP). Specifically, this bill:
SB 9
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1)Provides that the TIRCP is to fund "transformative capital
improvements," i.e. rail, bus, or ferry transit projects that
will significantly reduce vehicle miles traveled, congestion,
and greenhouse gas emissions by creating a new transit system,
increasing the capacity of an existing transit system, or
otherwise significantly increasing ridership of a system.
2)Expands the TIRCP eligibility to include ferry transit
systems, infrastructure access payments to host railroads in
lieu of capital investments, and transit effectiveness studies
leading to service improvements that increase ridership; and
eliminates operations funding as an eligible use of TIRCP
funds.
3)Requires the California Transportation Agency (CalSTA), in
selecting projects to be funded under the program, to consider
the extent to which a project reduces emission of greenhouse
gases, and adds other specified evaluation criteria for
project selection.
4)Authorizes CalSTA to make multi-year funding commitments and
requires project applications to identify the source and
timing of all funds needed to complete project development and
to fund ongoing operations and maintenance.
5)Directs CalSTA to approve a five-year program of projects by
July 1, 2018 and biennially thereafter.
6)Establishes a process whereby an agency applying for a
multi-year project funding can obtain a letter of no prejudice
from CalSTA to allow the agency to advance its own funds and
be eligible for future reimbursement from the program.
SB 9
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FISCAL EFFECT:
Any additional administrative costs to CalSTA will be
absorbable. Under current law, the TIRCP is funded by a
continuous appropriation of 10% of annual cap-and-trade revenues
beginning in 2015-16. Based on current estimates of
cap-and-trade revenues, about $200 million will be available to
the TIRCP this fiscal year. Given this significant funding level
and the numerous other demands for cap-and-trade funds, the
modest program expansion in this bill would likely not create
any significant cost pressure on the program.
COMMENTS:
1)Background. SB 862 (Committee on Budget and Fiscal
Review)/Chapter 36, Statutes of 2014, a budget trailer bill,
allocated a portion of annual cap-and-trade revenues for
designated programs or purposes, including the TIRCP. The
TIRCP is intended to achieve the following specific policy
objectives:
a) Reduced GHG emissions;
b) Expanded and improved rail service to increase
ridership;
c) Integrated rail service of the state's various rail
operators, including integration with the high-speed rail
system; and,
d) Improved rail safety.
SB 9
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2)Purpose. According to the author, SB 9 seeks to ensure that
cap-and-trade funding is invested responsibly in projects that
maximize reductions in GHG emissions by focusing the program
on transformative projects. The author believes that
transformative transit expansion projects will result in the
"biggest bang for the buck" when it comes to reducing GHG
emissions and he believes the multi-year program provided for
in SB 9 will facilitate these projects.
Analysis Prepared by:Chuck Nicol / APPR. / (916)
319-2081