BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 231


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          Date of Hearing:  June 29, 2015


                        ASSEMBLY COMMITTEE ON TRANSPORTATION


                                 Jim Frazier, Chair


          SB  
          231 (Gaines) - As Amended June 2, 2015


          SENATE VOTE:  36-0


          SUBJECT:  Transportation programs.


          SUMMARY:  Clarifies that water-borne transit projects (e.g.,  
          commuter ferries) are eligible for certain cap-and-trade  
          funding.


           1) Adds water-borne transit to the list of projects eligible  
             for funding under the Affordable Housing and Sustainable  
             Communities Program (AHSCP).


           2) Clarifies that new or expanded water-borne transit projects  
             are eligible for funding under the Low Carbon Transit  
             Operations Program (LCTOP).


           3) Makes related, technical amendments.


          EXISTING LAW:   









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          1)Requires all cap-and-trade proceeds, except for fines and  
            penalties, collected by the State Air Resources Board be  
            deposited in the Greenhouse Gas Reduction Fund (GGRF).

          2)Continuously appropriates, 5% of the GGRF for LCTOP and 20%  
            for AHSCP.
          


          FISCAL EFFECT:  Unknown



          COMMENTS:  The 2014-15 budget agreement established AHSCP under  
          the Strategic Growth Council to provide grants to local agencies  
          for projects to reduce greenhouse gas (GHG) 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  
          AHSCP beginning in 2015-16.   

          The 2014-15 budget agreement also established 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.

          The author has introduced SB 231 to assist the Tahoe  
          Transportation District (TTD).  The Lake Tahoe Basin has a  
          resident population of approximately 55,000 but the area's  
          transportation system serves an additional 6.5 million annual  








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          visitors because Lake Tahoe is such a popular recreation  
          destination.  The Tahoe Basin is governed by the Tahoe Regional  
          Planning Agency (TRPA), a bi-state regional planning agency  
          established in the late 1960's in response to strong development  
          pressures in the region.  TRPA is directed by the Bi-State  
          Compact (Compact) that, among other things, imposed obligations  
          on TRPA to reduce its dependency on automobiles by making more  
          effective use of existing transportation modes and public  
          transit.  To accomplish this directive, TTD, established within  
          the TRPA, has embarked on a project to provide a major new  
          north-south transit effort.  Specifically, the project calls for  
          a year-round ferry service between South Lake Tahoe and Tahoe  
          City (North Lake Tahoe) via high-speed ferry.  As proposed, the  
          ferry service would make approximately eight trips per day  
          carrying 120 passengers per trip and is expected to  
          significantly reduce vehicle trips (both commuter and  
          recreational travel) and improve local air quality as well as  
          the lake's clarity.  Project costs are estimated at $33 million  
          with annual operating costs of $3.4 million.  TTD anticipates  
          that state and federal monies will be used to pay capital costs  
          of the project and that federal grant monies will be used to  
          cover the nearly $3 million in annual operating expenses. 

          To allow TTD to qualify for a greater range of project funding,  
          the author has introduced SB 231 which clarifies that  
          water-borne transit systems, including but not necessarily  
          limited to TTD's proposed ferry service, are eligible for  
          funding using cap-and-trade monies available through AHSCP and  
          LCTOP.  Given that water-borne transit programs provide  
          essentially the same benefits of reducing vehicle miles traveled  
          and greenhouse gas emissions as rail and bus transit projects,  
          it stands to reason that AHSCP and LCTOP should be amended to  
          expressly include ferry services as eligible program recipients.  

          


          Double referral:  This bill will be referred to the Assembly  
          Natural Resources Committee should it pass out of this  








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          committee.





          REGISTERED SUPPORT / OPPOSITION:




          Support


          Tahoe Transportation District (Sponsor)


          City of South Lake Tahoe


          Honorable Sue Novasel, El Dorado County Supervisor


          International Longshore and Warehouse Union


          North Lake Tahoe Resort Association


          San Francisco Bay Area Water Emergency Transportation Authority


          Tahoe City Public Utilities District




          Opposition









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          None on file




          Analysis Prepared by:Victoria Alvarez / TRANS. / (916)  
          319-2093