BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 9|
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UNFINISHED BUSINESS
Bill No: SB 9
Author: Beall (D), et al.
Amended: 9/1/15
Vote: 21
SENATE ENVIRONMENTAL QUALITY COMMITTEE: 7-0, 3/18/15
AYES: Wieckowski, Gaines, Bates, Hill, Jackson, Leno, Pavley
SENATE TRANS. & HOUSING COMMITTEE: 10-0, 4/28/15
AYES: Beall, Cannella, Bates, Gaines, Galgiani, Leyva,
McGuire, Mendoza, Roth, Wieckowski
NO VOTE RECORDED: Allen
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/28/15
AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen
SENATE FLOOR: 37-1, 6/3/15
AYES: Allen, Anderson, Bates, Beall, Berryhill, Block,
Cannella, De León, Fuller, Gaines, Galgiani, Glazer, Hall,
Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson, Lara, Leno,
Leyva, Liu, McGuire, Mendoza, Mitchell, Monning, Moorlach,
Morrell, Nguyen, Pavley, Roth, Runner, Stone, Vidak,
Wieckowski, Wolk
NOES: Nielsen
NO VOTE RECORDED: Hancock, Pan
ASSEMBLY FLOOR: 74-1, 9/3/15 - See last page for vote
SUBJECT: Greenhouse Gas Reduction Fund: Transit and Intercity
Rail Capital Program
SOURCE: Author
DIGEST: This bill modifies the Transit and Intercity Rail
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Capital Program (TIRCP) to focus on transformative capital rail
and transit system improvements.
Assembly Amendments remove the requirement for 70% of the funds
to be allocated to projects with a total cost of $100 million or
more, and 30% to projects costing less than $100 million, define
"transformative capital improvement" and modify eligibility,
application, and project programming requirements.
ANALYSIS:
Existing law:
1) Requires, under the California Global Warming Solutions Act
of 2006 (also known as AB 32), 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. AB 32 authorizes ARB to adopt a regulation that
establishes a market-based mechanism with declining annual
aggregate emission limits for sources that emit GHGs. (Health
and Safety Code (HSC) §38500 et seq.)
2) Establishes the Greenhouse Gas Reduction Fund (GGRF) and
directs auction revenue collected pursuant to a market-based
mechanism 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) Appropriates, continuously, beginning in 2015-16, 10% of
annual cap-and-trade auction revenues for the TIRCP.
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5) Directs project applicants for TIRCP grants to submit grant
applications to the California State Transportation Agency
(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 Transportation
Commission (CTC) for funding.
This bill:
1) Provides that the TIRCP must fund capital improvements that
are "transformative", defined as a rail, bus, or ferry
transit project that will significantly reduce vehicle miles
traveled, congestion, and 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 CalSTA to evaluate project applications consistent
with revised criteria as set forth in this bill.
5) Requires CalSTA to additionally consider the following when
evaluating grant applications:
6) The extent to which a project reduces GHG emissions.
7) The extent to which a project has supplemental funding from
non-state sources.
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8) The extent to which a project will increase ridership.
9) Additional cobenefits including enhanced connectivity,
integration, and coordination with various transit systems,
and reduction in auto trips through growth in transit
ridership.
10)Authorizes CalSTA to make multi-year funding commitments and
requires project applications to identify, among other
things, including project scope, purpose, phases of work, the
source and timing of all funds needed to complete the project
and fund ongoing operating and maintenance costs.
11)Directs CalSTA to approve a multi-year program of projects
according to prescribed procedures and requires CalSTA to
maximize the total amount of GHG emissions reductions
achieved under the program.
12)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.
13)Makes other technical modifications to the TIRCP.
Background
The Transit and Intercity Rail Capital Program. SB 862 (Budget
and Fiscal Review Committee, Chapter 36, Statutes of 2014)
created the TIRCP. The TIRCP funds 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.
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The 2014-15 Budget provided for a continuous appropriation of
10%, or $25 million, of cap-and-trade funds to this program
beginning in 2015-16. CalSTA is required to evaluate
applications, and then prepare a list of projects recommended
for funding to be used by CTC in awarding grant monies.
CalSTA released draft guidelines for the program in December
2014, and finalized them on February 6th. The guidelines
describe the policy, standards, criteria, and procedures for the
development, adoption and management of the TIRCP.
The guidelines state that it is CalSTA's intent to adopt an
initial multiyear program of projects covering a minimum of two
years of estimated funding.
The guidelines also note that "CalSTA will also make some
funding available for demonstration projects that are smaller
scale efforts with great potential to be expanded. These may
include projects such as a novel approach to attracting new
riders or a test of a concept related to integrated ticketing,
as well as intercity rail or transit effectiveness or
operational studies that are expected to have elements that can
be implemented with little or no capital investment (such
studies must result in a reduction in net greenhouse gas
emission)."
SB 862 establishes a goal for the TIRCP of providing at least
25% of available funding to projects that provide a direct,
meaningful, and assured benefit to disadvantaged communities. SB
862 also requires the ARB, in consultation with the California
Environmental Protection Agency, to develop funding guidelines
for all agencies that are appropriated monies from the GGRF.
These guidelines must include a component for how administering
agencies should maximize benefits for disadvantaged communities.
At the end of June 2015, CalSTA completed the first round of the
program, awarding $224 million to 14 projects throughout
California.
Comments
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1)Purpose of Bill. According to the author, "Transportation
funding available under the Transit and Intercity Rail Capital
Program should be invested in projects that maximize
reductions in greenhouse gas emissions to ensure California
meets its climate goals set forth by AB 32. These types of
projects are a multi-year effort and requires a level of
financial certainty for the operators to plan. SB 9 provides
for a multi-year planning and allocation process under the
Transit and Intercity Rail Capital Program administered by the
California Transportation Agency. This process is utilized by
the federal government and common for a variety of other
transportation programs."
Related/Prior Legislation
SB 862 (Committee on Budget, Chapter 36, Statutes of 2014)
established requirements for ARB to develop guidelines for
agencies administering GGRF funds.
FISCAL EFFECT: Appropriation: Yes Fiscal
Com.:YesLocal: No
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.
SUPPORT: (Verified9/3/15)
Alameda-Contra Costa Transit District
Antelope Valley Transit District
California Transit Association
City of San Jose
International Longshore & Warehouse Union
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Los Angeles-San Diego-San Louis Obispo Rail Corridor Agency
Napa County Transportation Planning Agency
Northern California Carpenters Regional Council
Orange County Transportation Authority
San Diego Association of Governments
San Diego Metropolitan Transit System
San Francisco Bay Area Rapid Transit District
San Francisco Bay Area Water Emergency Transportation Authority
Santa Clara County Board of Supervisors
Santa Clara Valley Transportation Authority
Silicon Valley Leadership Group
Transportation Agency for Monterey County
OPPOSITION: (Verified9/3/15)
None received
ASSEMBLY FLOOR: 74-1, 9/3/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,
Bonilla, Bonta, Brown, Burke, Calderon, Campos, Chang, Chau,
Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly,
Dodd, Eggman, Frazier, Cristina Garcia, Eduardo Garcia, Gatto,
Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Roger
Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey,
Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes,
McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,
O'Donnell, Olsen, Perea, Quirk, Rendon, Ridley-Thomas,
Rodriguez, Santiago, Steinorth, Mark Stone, Thurmond, Ting,
Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
NOES: Gallagher
NO VOTE RECORDED: Brough, Beth Gaines, Harper, Patterson,
Salas
Prepared by:Rebecca Newhouse / E.Q. / (916) 651-4108
9/3/15 18:47:23
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