BILL ANALYSIS Ó SB 231 Page 1 Date of Hearing: August 19, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair SB 231 (Gaines) - As Amended June 2, 2015 ----------------------------------------------------------------- |Policy |Transportation |Vote:|16 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Natural Resources | |9 - 0 | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill specifies that water-borne transit projects (e.g. commuter ferries) are eligible for cap-and-trade funding under the Affordable Housing and Sustainable Communities Program (AHSCP) and the Low Carbon Transit Operations Program (LCTOP). SB 231 Page 2 FISCAL EFFECT: Under current law, the AHSCP and the LCTOP are funded by continuous appropriations of 20% and 5%, respectively, of annual cap-and-trade revenues beginning in 2015-16. Based on current estimates of cap-and-trade revenues, about $400 million will be available to the AHSCP and $100 million will be available to LCTOP this fiscal year. Given these significant funding levels and the numerous other demands for cap-and-trade funds, making commuter ferry systems eligible for these programs would likely not create cost pressure on either program. COMMENTS: 1)Background. The AHSCP provides competitive 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 (including transit and transit stations), and active transportation projects. Qualifying transit includes various forms of rail service, bus service, and "flexible transit" (vanpools and shuttle bus feeder systems). The LCTOP provides operating and capital assistance to transit agencies to reduce greenhouse gas emissions and improve mobility, with a priority on serving disadvantaged communities. Funds are distributed on a formulaic basis to local agencies, rather than a competitive basis. 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 SB 231 Page 3 vehicles. 2)Purpose. 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. The Tahoe Transportation District (TTD), housed within the TRPA, is seeking to develop the Crosslake Passenger Ferry, to 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. 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. Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081 SB 231 Page 4