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