BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 231


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          Date of Hearing:  July 13, 2015


                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES


                                 Das Williams, Chair


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


          SENATE VOTE:  36-0


          SUBJECT:  Transportation programs.


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


          EXISTING LAW, under the California Global Warming Solutions Act  
          of 2006 (AB 32): 


          1)Requires the California Air Resources Board (ARB) to adopt GHG  
            emissions reduction measures to achieve a reduction in  
            statewide GHG emsisions to the 1990 level.  

          2)Requires ARB to prepare and approve a Scoping Plan, on or  
            before January 1, 2009 and once every five years thereafter,  
            for achieving the maximum technologically feasible and  
            cost-effective reductions in GHG emissions from sources of  
            emissions by 2020.  

          3)Establishes the Affordable Housing and Sustainable Communities  








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            Program (AHSCP) to fund land-use, housing, transportation, and  
            land preservation projects to support infill and compact  
            development that reduces GHG emissions.  

          4)Establishes the Low Carbon Transit Operations Program (LCTOP)  
            to provide operating and capital assistance for transit  
            agencies to reduce GHG emissions and improve mobility, with a  
            priority on serving disadvantaged communities.  Approved  
            projects support new or expanded bus or rail services, expand  
            intermodal transit facilities, and may include equipment  
            acquisition, fueling, maintenance, and other costs to operate  
            those services or facilities.  At least 50% of the total funds  
            received must be expended on projects that benefit  
            disadvantaged communities.



          5)Establishes the Greenhouse Gas Reduction Fund (GGRF) in the  
            State Treasury, requires all funds, except for fines and  
            penalties, collected pursuant to a market-based mechanism be  
            deposited in the GGRF, and requires the Department of Finance,  
            in consultation with ARB and any other relevant state agency,  
            to develop a three-year investment plan for the GGRF. 





          6)Requires that the GGRF be used to facilitate GHG emissions  
            reductions in this state consistent with AB 32.  Requires that  
            annual budget appropriations from the GGRF be consistent with  
            the investment plan. 

          7)Continuously appropriates 20% of the GGRF to AHSCP and 5% to  
            LCTOP.



          THIS BILL:  








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           1) Adds water-borne transit to the list of projects eligible  
             for funding under the AHSCP.


           2) Clarifies that new or expanded water-borne transit projects  
             are eligible for funding under the LCTOP.


           3) Makes related, technical amendments.


          FISCAL EFFECT:  Unknown


          COMMENTS:  


          1)Transit in Lake Tahoe.  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  
            visitors.  The Tahoe Basin is governed by the Tahoe Regional  
            Planning Agency (TRPA), a bi-state regional planning agency  
            established in the 1960s.  TRPA is directed by the Bi-State  
            Compact (Compact) that, among other things, required TRPA to  
            reduce its dependency on automobiles by making more effective  
            use of existing transportation modes and public transit.  To  
            accomplish this directive, the Tahoe Transportation District  
            (TTD), housed within the TRPA, has begun a major new  
            north-south transit effort.  Specifically, the Crosslake  
            Passenger Ferry would provide year-round, high-speed ferry  
            service between South Lake Tahoe and Tahoe City (North Lake  
            Tahoe) and link with bus, trolley, shuttle services, water  
            taxies, and trails.  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), reduce GHG emissions,  
            and improve local air quality and the lake's clarity.  The TTD  
            estimates that the project will cost $33 million with annual  
            operating costs of $3.4 million.  








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          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. 

          2)Funding.  The 2014-15 Budget Act established AHSCP under the  
            Strategic Growth Council to provide grants to local agencies  
            for projects to reduce 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 Act provides for a continuous  
            appropriation of 20% of the GGRF to AHSCP beginning in  
            2015-16.   

          The 2014-15 Budget Act also established LCTOP.  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 Act provides for a continuous  
            appropriation of 5% of the GGRF to LCTOP beginning in 2015-16.

          3)Author's statement: 

               SB 231 would permit the TRPA and the TTD to pursue  
               waterborne transit project funding under the LCTOP and  
               AHSCP.  









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               This bill is intended to enhance the TRPA/TTD's ability to  
               carry out its mission under the [Compact]?  The Compact  
               imposes the obligation to reduce dependency on the  
               automobile and to increase the capacity and efficiency of  
               the region's transportation network through waterborne  
               transit systems.  
          4)Double referral.  This bill was double referred to the  
            Assembly Transportation Committee and passed on a vote of 16-0  
            on June 29th. 



          REGISTERED SUPPORT / OPPOSITION:




          Support


          City of South Lake Tahoe


          El Dorado County Supervisor Sue Novasel


          International Longshore and Warehouse Union 


          North Lake Tahoe Resort Association


          San Francisco Bay Area Water Emergency Transportation Authority


          Tahoe City Public Utility District









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          Tahoe Transportation District




          Opposition


          None on file




          Analysis Prepared by:Elizabeth  
          MacMillan