BILL ANALYSIS Ó
SENATE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE
DEVELOPMENT
Senator Jim Beall, Chair
2015 - 2016 First Extraordinary
Bill No: SBX1 8 Hearing Date: 9/1/2015
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|Author: |Hill |
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|Version: |7/16/2015 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Erin Riches |
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SUBJECT: Greenhouse Gas Reduction Fund: transit expenditures
DIGEST: This bill increases the continuous appropriation
amounts of Greenhouse Gas Reduction Fund (GGRF) monies for
transit programs.
ANALYSIS:
Existing law:
1)AB 32, Núñez, Chapter 488, Statutes of 2006, requires the
state Air Resources Board (ARB) to develop a plan to reduce
emissions to 1990 levels by 2020. It also requires ARB to
ensure that programs to reduce greenhouse gas (GHG) emissions
are targeted, to the extent feasible, to the most
disadvantaged communities in the state. AB 32 authorizes ARB
to deposit any fees paid by GHG emission sources into the
GGRF.
2)AB 1532, Pérez, Chapter 807, Statutes of 2012, specifies that
GGRF revenues must be used to facilitate the achievement of
GHG emissions reductions.
The 2014-15 budget agreement allocated $832 million in GGRF
revenues to a variety of GHG emission reduction programs.
Beginning in 2015-16, the budget agreement appropriates 25% of
GGRF revenues to the state's high-speed rail project, 20% to
affordable housing and sustainable communities grants, 10% to
SBX1 8 (Hill) Page 2 of ?
intercity capital rail projects, and 5% to low-carbon transit
projects. The remaining 40% of GGRF revenues are available for
annual appropriation by the Legislature.
The 2014-15 budget agreement established the Transit and
Intercity Rail Capital Program (TIRCP). This program provides
grants to fund capital improvements and operational investments
to modernize transit systems and intercity, commuter, and urban
rail systems to reduce GHG emissions by reducing vehicle miles
traveled throughout California. Eligible projects include
expansion and improvement of rail service to increase ridership;
integration of rail service of various rail operations,
including integration with the high-speed rail system; and
safety improvements. The 2014-15 budget agreement provides for
a continuous appropriation of 10% of cap-and-trade funds to
TIRCP beginning in 2015-16.
In addition, the 2014-15 budget agreement established the Low
Carbon Transit Operations Program (LCTOP) under the California
State Transportation Agency. This program provides operating
and capital assistance to transit agencies to reduce GHG
emissions and improve mobility. 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 2014-15
budget agreement provides for a continuous appropriation of 5%
of cap-and-trade funds to LCTOP beginning in 2015-16 (about $200
million annually).
This bill increases the continuous appropriations of GGRF monies
from 10% to 20% for the TIRCP and from 5% to 10% for the LCTOP.
COMMENTS:
1)Purpose. The author states that the current 15% allocation to
TIRCP and LCTOP, though sizeable, does little to overcome the
$27 billion transit shortfall faced by the state over the next
10 years. It also falls short of providing the support for
public transit necessary to ensure that it becomes - and in
some areas, remains - a fast, reliable, and convenient
alternative to personal vehicle travel. This bill provides an
additional $100 million annually for public transit with the
goal of building the capacity necessary to move a growing and
aging population around our state in a manner that supports
SBX1 8 (Hill) Page 3 of ?
our ambitious environmental objectives. The author states
that because the transportation sector is responsible for an
overwhelming majority of the revenues flowing to the
cap-and-trade program, it is warranted that a larger share of
the revenues should be used for programs that mitigate the use
of these fuels.
The author also states that according to an analysis conducted
by CH2M HILL on behalf of the California Transit Association,
the state requires approximately $72 billion in new transit
funding over the next decade to maintain existing transit
infrastructure and build the capacity needed to meet the
mobility needs of our state's growing population, as well as
AB 32 objectives. Additionally, the Administration's draft
California Transportation Plan 2040 posits that drastic
changes in transit service levels and travel patterns are
vital to meet the state's 2050 GHG emissions reduction
targets. The plan recommends that the state provide
additional funding for transit improvements.
2)Winners and losers? Currently, 60% of GGRF revenues are
continuously appropriated. This bill would increase that
amount to 75%, leaving just 25% to be allocated by the
Legislature each year. The author states that this bill would
not impact any other program subject to an ongoing
appropriation. However, by reducing the unallocated share of
GGRF revenues, this bill restricts the flexibility of the
Legislature to allocate GGRF revenues to programs outside the
current GGRF structure.
3)Letter to the Senate President Pro Tempore. On June 22, 2015,
17 Senators and Assemblymembers, including six members of this
committee, sent a letter to Senate President Pro Tempore Kevin
de León urging a minimum of $500 million in GGRF funding to
TIRCP, or an increase in TIRCP funding from 10% to 20% of GGRF
revenues.
4)A question of priorities. There are currently a variety of
bills before the Legislature relating to GGRF revenues. It is
difficult to determine what suite of measures best meets the
requirements of the GGRF, uses resources most efficiently, and
maximizes policy objectives, when bills are scattered across
various committees and even in different sessions. Budget
discussions on a cap-and-trade investment strategy provide an
opportunity for a comprehensive look at the universe of GGRF
proposals. The committee may wish to consider whether the
SBX1 8 (Hill) Page 4 of ?
subject of this bill is more appropriate to the budget
discussion than the transportation special session.
Related Legislation:
SBX1 7 (Allen) - increases funding for the State Transit
Assistance program by raising the portion of sales and use tax
on diesel fuel that is dedicated to transit, from 1.75% to
5.25%, effective July 1, 2016. SBX1 7 will also be heard by
this committee today.
ABX1 8 (Chiu and Bloom) - is identical to SBX1 7 (Allen). ABX1
8 is pending committee assignment in the Assembly Rules
Committee.
FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes
Local: No
POSITIONS: (Communicated to the committee before noon on
Thursday, August 27, 2015.)
SUPPORT:
California Intercity Passenger Rail Leadership Coalition
California Transit Association
Golden Empire Transit District
Metropolitan Transportation Commission
Monterey-Salinas Transit
Peninsula Corridor Joint Powers Board
Sacramento Regional Transit
San Francisco Mayor Edwin M. Lee
San Mateo City/County Association of Governments
San Mateo County Transit District
San Mateo County Transportation Authority
Santa Cruz Metropolitan Transit District
Solano County Transit
Southern California Regional Transit Training Consortium
OPPOSITION:
None received
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