BILL ANALYSIS Ó
SB 9
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SENATE THIRD READING
SB
9 (Beall)
As Amended August 17, 2015
Majority vote
SENATE VOTE: 37-1
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Transportation |16-0 |Frazier, Achadjian, | |
| | |Baker, Bloom, Campos, | |
| | |Chu, Daly, Dodd, | |
| | |Eduardo Garcia, | |
| | |Gomez, Kim, Linder, | |
| | |Medina, Melendez, | |
| | |Nazarian, O'Donnell | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Natural |9-0 |Williams, Dahle, | |
|Resources | | | |
| | | | |
| | |Cristina Garcia, | |
| | |Hadley, Harper, | |
| | |McCarty, Rendon, Mark | |
| | |Stone, Wood | |
| | | | |
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|----------------+-----+----------------------+--------------------|
|Appropriations |16-1 |Gomez, Bigelow, |Gallagher |
| | |Bloom, Bonta, | |
| | |Calderon, Chang, | |
| | |Daly, Eggman, Eduardo | |
| | |Garcia, Holden, | |
| | |Jones, Quirk, Rendon, | |
| | |Wagner, Weber, Wood | |
| | | | |
| | | | |
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SUMMARY: Modifies the Transit and Intercity Rail Capital
Program (TIRCP) to focus on capital rail and transit system
improvements that will be "transformative." Specifically, this
bill:
1)Provides that the TIRCP must fund capital improvements that
are "transformative", which is defined as a rail, bus, or
ferry transit project that will significantly reduce vehicle
miles traveled, congestion, and greenhouse gas (GHG) emissions
by creating a new transit system, increasing the capacity of
an existing transit system, or otherwise significantly
increasing the ridership of a transit system.
2)Eliminates operations funding as an eligible use of TIRCP
funds.
3)Clarifies that bus system improvements are eligible for TIRCP
funding, and specifically provides that ferry system
improvements are also eligible.
4)Directs California State Transportation Agency (CalSTA) to
evaluate project applications consistent with revised criteria
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as set forth in the bill.
5)Adds the following to the list of co-benefits CalSTA must
consider in evaluating project applications:
a) Reduction in auto trips through growth in transit
ridership;
b) Enhanced connectivity, integration, and coordination
with various transit systems; and
6)Adds other project evaluation criteria (in addition to the
expanded list of co-benefits) to include the extent to which
the project provides the following:
a) Reduced GHG emissions;
b) Supplemental, non-state funding; and,
c) Increased transit ridership.
7)Authorizes CalSTA to make multi-year funding commitments and
requires project applications to identify the source and
timing of all funds needed to complete the project and fund
ongoing operating and maintenance costs.
8)Directs CalSTA to approve a five-year program of projects
according to prescribed procedures.
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9)Establishes a process whereby an agency that is applying for
funds for a multi-year project 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.
10)Makes other, technical modifications to the TIRCP.
EXISTING LAW:
1) Under the California Global Warming Solutions Act of 2006,
directs the Air Resources Board (ARB) to adopt GHG emissions
reduction measures, including market-based mechanisms (e.g.,
the cap-and-trade program), to reduce GHG emissions to 1990
levels by 2020.
2) Establishes the Greenhouse Gas Reduction Fund (GGRF) and
directs auction revenue from the cap-and-trade program to be
deposited into the fund and expended according to a
three-year investment plan developed by the Department of
Finance.
3)Establishes the TIRCP to fund capital improvements and
operational investments that reduce GHG emissions and
modernize California's intercity, commuter, and urban rail
systems and bus systems to achieve specific policy objectives.
4)Continuously appropriates, beginning in 2015-16, 10% of annual
cap-and-trade auction revenues for the TIRCP.
5)Directs project applicants for TIRCP grants to submit grant
applications to CalSTA for evaluation in accordance with
procedures and program guidelines adopted by the agency, and
requires CalSTA to submit a list of projects to the California
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Transportation Commission (CTC) for funding.
FISCAL EFFECT: According to the Assembly Appropriations
Committee, 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: According to the author, this bill 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
this bill will facilitate these projects.
The TIRCP was created via legislation enacted last year, [SB 862
(Budget and Fiscal Review Committee), Chapter 36, Statues of
2014]. SB 862, a budget trailer bill, continuously appropriated
portions of the cap-and-trade auction revenue proceeds for
designated programs or purposes, including 10% for the TIRCP.
The TIRCP is intended to achieve the following specific policy
objectives:
1)Reduced GHG emissions;
2)Expanded and improved rail service to increase ridership;
3)Integrated rail service of the state's various rail operators,
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including integration with the high-speed rail system; and,
4)Improved rail safety.
SB 862 required CalSTA to develop guidelines for the TIRCP
before soliciting applications for funding, and these guidelines
were published in February of this year. SB 862 directed CalSTA
to evaluate project applications for funding from the TIRCP
based on the following factors:
1)Co-benefits that support implementation of sustainable
communities strategies, such as:
a) Reducing auto vehicle miles traveled;
b) Promoting housing development near rails stations;
c) Expanding existing rail and public transit stations;
d) Implementing clean vehicle technology;
e) Promoting active transportation; and,
f) Improving public health.
2)Collaboration between rail operators and state and local
agencies.
3)Geographic equity.
4)Consistency with adopted sustainable communities strategies.
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The existing TIRCP is currently not structured in a way that
allows the program to accommodate large transit expansion
projects. This bill makes several changes to this new program
by:
1)Focusing the program on transformative capital improvements;
2)Eliminating funding for operational investments;
3)Expanding the program to include ferry systems and clarifying
that bus systems are included as well;
4)Modifying project evaluation criteria to emphasize projects
that reduce GHG emissions, connect to the high-speed rail
system, and have supplemental funding from non-state sources;
and,
5)Providing for a five-year programming horizon and allowing for
multi-year project allocations.
Enabling CalSTA to program funding over multiple fiscal years
allows the TIRCP to accommodate large transit expansion projects
that could receive a more substantive amount of cap-and-trade
auction revenues over a period of time rather than all at once.
Longer funding commitments will allow public agencies to use
TIRCP dollars to leverage federal funding and to secure
financing, both of which are typically done for large transit
expansion projects.
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Analysis Prepared by:
Lawrence Lingbloom / NAT. RES. / (916) 319-2092
FN:
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