BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 231| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SB 231 Author: Gaines (R) Amended: 6/2/15 Vote: 21 SENATE TRANS. & HOUSING COMMITTEE: 11-0, 4/28/15 AYES: Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva, McGuire, Mendoza, Roth, Wieckowski SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/28/15 AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen SUBJECT: Transportation funding: ferries SOURCE: Tahoe Transportation District DIGEST: This bill clarifies that ferries are eligible for funding under the Affordable Housing and Sustainable Communities Program (AHSC) and the Low Carbon Transit Operations Program (LCTOP). ANALYSIS: Existing law: 1)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 (GGRF). SB 231 Page 2 2)Appropriates, continuously, specified portions of the annual proceeds in the GGRF to various programs including 5% for the LCTOP and 20% for the AHSC. This bill makes commuter ferries eligible for funding under AHSC and LCTOP. Background The 2014-15 budget agreement established the AHSC under the Strategic Growth Council. This program provides grants to local agencies for projects to reduce greenhouse gas emissions through land use, housing, transportation, and agricultural land preservation. Eligible projects include infill housing development, transit projects to support ridership, and active transportation projects. The 2014-15 budget agreement provides for a continuous appropriation of 20% of cap-and-trade funds to AHSC beginning in 2015-16. The 2014-15 budget agreement also established the LCTOP under the California State Transportation Agency. This program provides operating and capital assistance to transit agencies to reduce greenhouse gas 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. Comments Purpose. The author states that although the Tahoe Basin has a resident population of approximately 55,000, the area's transportation system must accommodate up to 350,000 visitors on a "peak" day due to its popularity as a recreation destination and its proximity to major urban areas. Although Tahoe is classified as a rural area, it needs an urban level of transportation infrastructure to adequately serve its visitors and residents. The Tahoe Transportation District, source of this bill, has embarked on a ferry project to provide a major new north-south transit component for the Lake Tahoe Basin. This project is key to meeting Tahoe Regional Planning Agency SB 231 Page 3 (TRPA) and sustainable communities strategies objectives. By expressly making ferry transit systems throughout the state eligible for AHSC and LCTOP, this bill could help provide funding for the ferry project. Expansion of AHSC and LCTOP? While ferries are not specifically listed in the LCTOP authorizing statute, they are mentioned multiple times in the program guidelines. The AHSC guidelines do not reference ferries and focus primarily on transit stations; ferry eligibility would likely be limited to ferry terminals. In both cases, this bill does not appropriate any funds to ferries, but makes ferry projects eligible for these programs. Commuter ferries are generally considered transit, and this bill uses the statutory term "water-borne transit" to ensure that tourist ferries continue to be excluded from funding eligibility. State Transit Assistance provision removed. The prior version of this bill established an artificially high population in statute for TRPA, on which the State Transit Assistance (STA) funding formula would be based beginning in 2015-16. Since the STA formula is based on population and operating revenues, this provision would have enabled TRPA to obtain a larger share of STA funds. This bill was amended in the Appropriations Committee to remove the STA provisions. FISCAL EFFECT: Appropriation: Yes Fiscal Com.:YesLocal: No According to the Senate Appropriations Committee, no direct state costs, potential cost pressures to the extent that cap-and-trade funds are used for water-borne transit, rather than other eligible transit projects. (Greenhouse Gas Reduction Fund) SUPPORT: (Verified6/1/15) Tahoe Transportation District (source) California Tahoe Alliance City of South Lake Tahoe International Longshore and Warehouse Union North Lake Tahoe Resort Association SB 231 Page 4 San Francisco Water Emergency Transportation Authority Tahoe City Public Utility District Tahoe Resource Conservation District Truckee North Tahoe Transportation Management Association OPPOSITION: (Verified5/27/15) None received ARGUMENTS IN SUPPORT: The Tahoe Transportation District, the source of the bill, states that "current state and federal transportation funding resources do not recognize the unique characteristics of the Lake Tahoe region." This bill would "qualify or provide necessary funding assistance to the Tahoe Regional Planning Agency and Tahoe Transportation District to meet Tahoe Regional Plan and Sustainable Communities Strategy objectives." Prepared by:Erin Riches / T. & H. / (916) 651-4121 6/2/15 22:01:03 **** END ****