Amended in Senate March 15, 2016

Senate Bill No. 824

Introduced by Senator Beall

January 7, 2016

An act to amend Section 75230 of, and to add Section 75231 to, the Public Resources Code, relating to transportation.

LEGISLATIVE COUNSEL’S DIGEST

SB 824, as amended, Beall. Low Carbon Transit Operations Program.

Existing law requires all moneys, except for fines and penalties, collected by the State Air Resources Board from the auction or sale of allowances as part of a market-based compliance mechanism relative to reduction of greenhouse gas emissions to be deposited in the Greenhouse Gas Reduction Fund.

Existing law continuously appropriates specified portions of the annual proceeds in the Greenhouse Gas Reduction Fund to various programs, including 5% for the Low Carbon Transit Operations Program, for expenditures to provide transit operating or capital assistance consistent with specified criteria. Existing law provides for distribution of available funds under the program begin insert by a specified formula end insert to recipient transit agencies by the Controller, upon approval of the recipient transit agency’s proposed expenditures by the Department of Transportation.

This bill would authorize a recipient transit agency that does not submit a project for funding under the program in a particular fiscal year to retain its funding share for expenditure in a subsequent fiscal year. begin delete The bill would, in that regard, require the department to annually calculate a funding share for each eligible recipient transit agency. end delete The bill would allow a recipient transit agency to loan or transfer its funding share in begin delete a end delete begin insert any end insert particular fiscal year to another recipient transit begin delete agency, end delete begin insert agency within the same region, end insert to pool its funding share with those of other recipient transit agencies, or to apply to the department to reassign, to other eligible expenditures under the program, any savings of surplus moneys from an approved and completed expenditure under the program or from an approved expenditure that is no longer a priority, as specified. The bill would also allow a recipient transit agency to apply to the department for a letter of no prejudice for a capital project or component of a capital project for which the department has authorized a disbursement of funds, begin delete and end delete begin insert and, end insert if granted, would allow the recipient transit agency to expend its own moneys and to be eligible for future reimbursement from the program, under specified conditions. The bill would also require a recipient transit agency to provide additional information to the department to the extent funding is sought for capital projects.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 75230 of the Public Resources Code is
amended to read:

75230.  

(a) The Low Carbon Transit Operations Program is
hereby created to provide operating and capital assistance for transit
agencies to reduce greenhouse gas emissions and improve mobility,
with a priority on serving disadvantaged communities.

(b) Funding for the program is continuously appropriated
pursuant to Section 39719 of the Health and Safety Code from the
Greenhouse Gas Reduction Fund established pursuant to Section
16428.8 of the Government Code. begin delete The Department of
Transportation, based on the amount of funding available for the
program each fiscal year, shall annually compute the funding share
for each eligible recipient transit agency. end delete

(c) Funding shall be allocated by the Controller begin insert on a formula
basis end insert consistent with the requirements of this part and with Section
39719 of the Health and Safety Code, upon a determination by the
Department of Transportation that the expenditures proposed by
a recipient transit agency meet the requirements of this part and
guidelines developed pursuant to subdivision (f), and that the
amount of funding requested is currently available.

begin insert

(d) A recipient transit agency shall demonstrate that each
expenditure of program moneys allocated to the agency reduces
greenhouse gas emissions.

end insert begin delete

(d)

end delete

begin insert (e) end insert  Moneys for the program shall be expended to provide transit
operating or capital assistance that meets begin delete all end delete begin insert any end insert of the begin delete following
criteria: end delete begin insert following: end insert

(1) Expenditures supporting new or expanded bus or rail
services, new or expanded water-borne transit, or expanded
intermodal transit facilities, and may include equipment acquisition,
fueling, and maintenance, and other costs to operate those services
or facilities. begin insert A recipient transit agency may use program moneys
for the costs to operate new or expanded service in the fiscal year
in which the service is first implemented, and in any subsequent
fiscal year if the agency can demonstrate that additional reductions
in greenhouse gas emissions can be realized. end insert

(2)  begin delete The recipient transit agency demonstrates that each
expenditure directly enhances or expands end delete begin insert Expenditures that directly
enhance or expand end insert begin insert end insert transit service to increase mode share.

(3)  begin delete The end delete begin insert Any other expenditure for which the end insert begin insert end insert recipient transit
agency begin delete demonstrates that each end delete begin insert can demonstrate that the end insert
expenditure reduces greenhouse gas emissions.

begin delete

(e)

end delete

begin insert (f) end insert  For recipient transit agencies whose service areas include
disadvantaged communities as identified pursuant to Section 39711
of the Health and Safety Code, at least 50 percent of the total
moneys received pursuant to this chapter shall be expended on
projects or services that meet requirements of subdivision (d) and
benefit the disadvantaged communities, consistent with the
guidance developed by the State Air Resources Board pursuant to
Section 39715 of the Health and Safety Code.

begin delete

(f)

end delete

begin insert (g) end insert  The Department of Transportation, in coordination with the
State Air Resources Board, shall develop guidelines that describe
the methodologies that recipient transit agencies shall use to
demonstrate that proposed expenditures will meet the criteria in
subdivisions (d) and begin delete (e) end delete begin insert (f) end insert and establish the reporting requirements
for documenting ongoing compliance with those criteria.

begin delete

(g)

end delete

begin insert (h) end insert  Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to
the development of guidelines for the program pursuant to this
section.

begin delete

(h)

end delete

begin insert (i) end insert  A recipient transit agency shall submit the following
information to the Department of Transportation before seeking a
disbursement of funds pursuant to this part:

(1) A list of proposed expense types for anticipated funding
levels.

(2) The documentation required by the guidelines developed
pursuant to begin delete subdivision (f) end delete begin insert this section end insert to demonstrate compliance
with subdivisions (d) and begin delete (e). end delete begin insert (f). end insert

begin delete

(i)

end delete

begin insert (j) end insert  For capital projects, the recipient transit agency shall also
do all of the following:

(1) Specify the phases of work for which the agency is seeking
an allocation of moneys from the program.

(2) Identify the sources and timing of all moneys required to
undertake and complete any phase of a project for which the
recipient agency is seeking an allocation of moneys from the
program.

(3) Describe intended sources and timing of funding to complete
any subsequent phases of the project, through construction or
procurement.

begin delete

(j)

end delete

begin insert (k) end insert  Before authorizing the disbursement of funds, the
Department of Transportation, in coordination with the State Air
Resources Board, shall determine the eligibility, in whole or in
part, of the proposed list of expense types, based on the
documentation provided by the recipient transit agency to ensure
ongoing compliance with the guidelines developed pursuant to
begin delete subdivision (f). end delete begin insert this section. end insert

begin delete

(k)

end delete

begin insert (l) end insert  The Department of Transportation shall notify the Controller
of approved expenditures for each recipient transit agency, and
the amount of the allocation for each agency determined to be
available at that time of approval.

begin delete

(l)

end delete

begin insert (m) end insert  A recipient transit agency that does not submit a project for
funding in a particular fiscal year shall retain its funding share,
and may accumulate and utilize that funding share in a subsequent
fiscal year for a larger expenditure. begin insert The recipient transit agency
shall specify the number of fiscal years that it intends to retain its
funding share and the expenditure for which the agency intends
to use these moneys. There shall be no limit on the number of fiscal
years that a recipient transit agency may retain its funding share. end insert

begin delete

(m)

end delete

begin insert (n) end insert  A recipient transit agency may, in begin delete a end delete begin insert any end insert particular fiscal
year, loan or transfer its funding share to another recipient transit
agency begin delete with an end delete begin insert within the same region for any end insert identified eligible
expenditure under the program, begin delete under terms and conditions
approved end delete begin insert in accordance with procedures incorporated end insert by the
Department of Transportation in the guidelines developed pursuant
to begin delete subdivision (f). end delete begin insert this section. end insert

begin delete

(n)

end delete

begin insert (o) end insert  A group of recipient transit agencies may, in begin delete a end delete begin insert any end insert particular
fiscal year, enter into an agreement to pool the respective funding
shares of each member of the group for begin delete an end delete begin insert any end insert identified eligible
expenditure under the program, begin delete under terms and conditions
approved end delete begin insert in accordance with procedures incorporated end insert by the
Department of Transportation in the guidelines developed pursuant
to begin delete subdivision (f). end delete begin insert this section. end insert

begin delete

(o)

end delete

begin insert (p) end insert  A recipient transit agency may apply to the Department of
Transportation to reassign any savings of surplus moneys allocated
under this section to the agency for an expenditure that has been
completed to another eligible expenditure under the program. A
recipient transit agency may also apply to the Department of
Transportation to reassign to another eligible expenditure any
moneys from the program previously allocated to the agency for
an expenditure that the agency has determined is no longer a
priority for the use of those moneys.

begin delete

(p)

end delete

begin insert (q) end insert  The recipient transit agency shall provide annual reports to
the Department of Transportation, in the format and manner
prescribed by the department, consistent with the internal
administrative procedures for use of fund proceeds developed by
the State Air Resources Board.

begin delete

(q)

end delete

begin insert (r) end insert  The Department of Transportation and recipient transit
agencies shall comply with the guidelines developed by the State
Air Resources Board pursuant to Section 39715 of the Health and
Safety Code to ensure that the requirements of Section 39713 of
the Health and Safety Code are met to maximize the benefits to
disadvantaged communities as described in Section 39711 of the
Health and Safety Code.

begin delete

(r)

end delete

begin insert (s) end insert  The audit of public transportation operator finances already
required under the Transportation Development Act pursuant to
Section 99245 of the Public Utilities Code shall be expanded to
include verification of receipt and appropriate expenditure of
moneys from the program. Each recipient transit agency receiving
moneys from the program in a fiscal year for which an audit is
conducted shall transmit a copy of the audit to the Department of
Transportation, and the department shall make the audits available
to the Legislature and the Controller for review on request.

SEC. 2.  

Section 75231 is added to the Public Resources Code,
to read:

75231.  

(a) A recipient transit agency under the program created
pursuant to Section 75230 may apply to the Department of
Transportation for a letter of no prejudice for a capital project or
for any component of a capital project for which the department
has authorized a disbursement of funds. If approved by the
department, the letter of no prejudice shall allow the recipient
transit agency to expend its own moneys for the project or any
component of the project and to be eligible for future
reimbursement from moneys available for the program.

(b) The amount expended under subdivision (a) shall be
reimbursed by the state from moneys available for the program if
all of the following conditions are met:

(1) The project or project component for which the letter of no
prejudice was requested has commenced, and the regional or local
expenditures have been incurred.

(2) The expenditures made by the recipient transit agency are
eligible expenditures under the program. If expenditures made by
the recipient transit agency are determined to be ineligible, the
state has no obligation to reimburse those expenditures.

(3) The recipient transit agency complies with all legal
requirements for the project, including the requirements of the
California Environmental Quality Act (Division 13 (commencing
with Section 21000)).

(4) There are moneys in the Greenhouse Gas Reduction Fund
designated for the program that are sufficient to make the
reimbursement payment.

(c) The recipient transit agency and the Department of
Transportation shall enter into an agreement governing
reimbursement as described in this section. The timing and final
amount of reimbursement shall be dependent on the terms of the
agreement and the availability of moneys in the Greenhouse Gas
Reduction Fund for the program.

(d) The Department of Transportation, in consultation with
recipient public transit agencies, may develop guidelines to
implement this section.