BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        SB 231|
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                                   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).









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          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  







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          (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







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          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
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