BILL NUMBER: SBX1 2	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Huff
   (Coauthors: Senators Anderson, Bates, Berryhill, Fuller, Gaines,
Moorlach, Morrell, Nguyen, Nielsen, Runner, Stone, and Vidak)

                        JUNE 30, 2015

   An act to amend Section 39719 of, and to add Section 39719.3 to,
the Health and Safety Code, relating to transportation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 2, as introduced, Huff. Greenhouse Gas Reduction Fund.
   Existing law requires all moneys, except for fines and penalties,
collected by the State Air Resources Board from the auction or sale
of allowances as part of a market-based compliance mechanism relative
to reduction of greenhouse gas emissions to be deposited in the
Greenhouse Gas Reduction Fund.
   Existing law continuously appropriates 60% of the annual proceeds
of the fund to various purposes, including high-speed rail, transit
and intercity rail capital, low-carbon transit operations, and
affordable housing and sustainable communities.
   This bill would exclude from allocation under these provisions the
annual proceeds of the fund generated from the transportation fuels
sector. The bill would instead provide that those annual proceeds
shall be appropriated by the Legislature for transportation
infrastructure, including public streets and highways, but excluding
high-speed rail.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature hereby finds and declares all of the
following:
   (a) Over the next 10 years, the state faces a $59 billion
shortfall to adequately maintain the state highway system in a basic
state of good repair.
   (b) Similarly, cities and counties face a $78 billion shortfall
over the next decade to adequately maintain the existing network of
local streets and roads.
   (c) Since the State Air Resources Board imposed the cap-and-trade
tax on gasoline production in January 2015, the Governor's budget is
projecting that $2.7 billion will be available from the Greenhouse
Gas Reduction Fund in the fiscal year that begins July 1. That figure
is more than double the amount that was available last year.
   (d) Revenue has surged because cap-and-trade now applies to
transportation fuels, the source of roughly 40 percent of the state's
carbon emissions.
   (e) The Legislative Analyst's Office projects that the imposition
of cap-and-trade on transportation fuels will raise $1.9 billion this
year. This revenue is raised by taxing consumers (through a
pass-through increased cost of gasoline) and should be used to repair
our streets and roads.
   (f) Investing in our streets and roads will end traffic gridlock
and improve mobility, which, in turn, will reduce greenhouse gases in
the state.


  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
following:
   (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.
   (c) In determining the amount of annual proceeds of the fund for
purposes of the calculation in subdivision (b), the funds subject to
 Section   Sections  39719.1  and
39719.3  shall not be included.
  SEC. 3.  Section 39719.3 is added to the Health and Safety Code, to
read:
   39719.3.  The annual proceeds of the fund generated from the
transportation fuels sector shall be appropriated by the Legislature
for transportation infrastructure, including public streets and
highways, but excluding high-speed rail.