BILL ANALYSIS Ó SB 231 Page 1 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 SB 231 Page 2 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: SB 231 Page 3 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. SB 231 Page 4 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. SB 231 Page 5 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 SB 231 Page 6 Tahoe Transportation District Opposition None on file Analysis Prepared by:Elizabeth MacMillan