Amended in Assembly June 21, 2016

Amended in Senate May 31, 2016

Amended in Senate April 11, 2016

Amended in Senate March 15, 2016

Senate BillNo. 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 by a specified formula to recipient transit agencies by the Controller, upon approval of the recipient transit agency’s proposed expenditures by the Department of Transportation.

This billbegin insert would require a recipient transit agency to demonstrate that each expenditure of program moneys allocated to the agency does not supplant another source of funds. The billend insert would authorize a recipient transit agency that does not submit an expenditure for funding under the program in a particular fiscal year to retain its funding share for expenditure in a subsequent fiscalbegin delete year.end deletebegin insert year for a maximum of 4 years.end insert The bill would allow a recipient transit agency to loan or transfer its funding share in any particular fiscal year to another recipient transit agency within the same region, 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 any eligible expenditures under the program for which the department has authorized a disbursement of funds, and, 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.

begin insert

Existing law requires recipient transit agencies whose service areas include disadvantaged communities, as defined, to expend at least 50% of the funding received from the program on projects and services that benefit disadvantaged communities.

end insert
begin insert

This bill would instead provide for the Department of Transportation to require at least 50% of the total moneys available for the program to be expended on projects and services that benefit disadvantaged communities. The bill would require the department to ensure that investments benefiting disadvantaged communities are made within the jurisdiction of each regional transportation planning agency, and to report to the Legislature on the investments made in that regard by July 1, 2019, and at least every 3 years thereafter.

end insert

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

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

P2    1

SECTION 1.  

Section 75230 of the Public Resources Code is
2amended to read:

3

75230.  

(a) The Low Carbon Transit Operations Program is
4hereby created to provide operating and capital assistance for transit
P3    1agencies to reduce greenhouse gas emissions and improve mobility,
2with a priority on serving disadvantaged communities.

3(b) Funding for the program is continuously appropriated
4pursuant to Section 39719 of the Health and Safety Code from the
5Greenhouse Gas Reduction Fund established pursuant to Section
616428.8 of the Government Code.

7(c) Funding shall be allocated by the Controller on a formula
8basis consistent with the requirements of this part and with Section
939719 of the Health and Safety Code, upon a determination by the
10Department of Transportation that the expenditures proposed by
11a recipient transit agency meet the requirements of this part and
12guidelines developed pursuant to this section, and that the amount
13of funding requested is currently available.

14(d) A recipient transit agency shall demonstrate that each
15expenditure of program moneys allocated to the agency reduces
16greenhouse gas emissions.

begin insert

17
(e) A recipient transit agency shall demonstrate that each
18expenditure of program moneys does not supplant another source
19of funds.

end insert
begin delete

20(e)

end delete

21begin insert(f)end insert Moneys for the program shall be expended to provide transit
22operating or capital assistance that meets any of the following:

23(1) Expendituresbegin insert that directly enhance or expand transit service
24byend insert
supporting new or expanded bus or rail services, new or
25expanded water-borne transit, or expanded intermodal transit
26facilities, and may include equipment acquisition, fueling, and
27maintenance, and other costs to operate those services or facilities.

28(2) Expenditures that increase mode share.

29(3) Expenditures related to the purchase of zero-emission buses,
30including electric buses, or the installation of the necessary
31equipment and infrastructure to operate and support zero-emission
32buses.

begin delete

33(f) For recipient transit agencies whose service areas include
34disadvantaged communities as identified pursuant to Section 39711
35of the Health and Safety Code,

end delete

36begin insert (g)end insertbegin insertend insertbegin insert(1)end insertbegin insertend insertbegin insertThe department shall requireend insert at least 50 percent of the
37total moneys received pursuant to this chapterbegin delete shallend deletebegin insert toend insert be expended
38on projects or services that meetbegin insert theend insert requirements ofbegin delete subdivision
39(d)end delete
begin insert subdivisions (d), (e), and (f)end insert and benefit the disadvantaged
40communities,begin delete consistent with the guidance developed by the State
P4    1Air Resources Board pursuant to Section 39715end delete
begin insert as identified
2pursuant to Section 39711end insert
of the Health and Safety Code.

begin insert

3
(2) The department shall ensure that investments benefiting
4disadvantaged communities as identified pursuant to Section 39711
5of the Health and Safety Code are made within the jurisdiction of
6each regional transportation planning agency, as defined in Section
799214 of the Public Utilities Code. The department,
8notwithstanding Section 10231.5 of the Government Code, shall
9report to the Legislature on or before July 1, 2019, and at least
10every three years thereafter, on the investments made that benefit
11disadvantaged communities and on the investments made that
12benefit other communities. The report shall be submitted pursuant
13to Section 9795 of the Government Code.

end insert
begin delete

14(g)

end delete

15begin insert(h)end insert The Department of Transportation, in coordination with the
16State Air Resources Board, shall develop guidelines that describe
17the methodologies that recipient transit agencies shall use to
18demonstrate that proposed expenditures will meet the criteria in
19subdivisionsbegin delete (d) andend deletebegin insert (d), (e),end insert (f)begin insert, and (g)end insert and establish the reporting
20requirements for documenting ongoing compliance with those
21criteria.

begin delete

22(h)

end delete

23begin insert(i)end insert Chapter 3.5 (commencing with Section 11340) of Part 1 of
24Division 3 of Title 2 of the Government Code does not apply to
25the development of guidelines for the program pursuant to this
26section.

begin delete

27(i)

end delete

28begin insert(j)end insert A recipient transit agency shall submit the following
29information to the Department of Transportation before seeking a
30disbursement of funds pursuant to this part:

31(1) A list of proposed expense types for anticipated funding
32levels.

33(2) The documentation required by the guidelines developed
34pursuant to this section to demonstrate compliance with
35subdivisionsbegin delete (d) and (f).end deletebegin insert (d), (e),(f), and (g).end insert

begin delete

36(j)

end delete

37begin insert(k)end insert For capital projects, the recipient transit agency shall also
38do all of the following:

39(1) Specify the phases of work for which the agency is seeking
40an allocation of moneys from the program.

P5    1(2) Identify the sources and timing of all moneys required to
2undertake and complete any phase of a project for which the
3recipient agency is seeking an allocation of moneys from the
4program.

5(3) Describe intended sources and timing of funding to complete
6any subsequent phases of the project, through construction or
7procurement.

begin delete

8(k)

end delete

9begin insert(l)end insert A recipient transit agencybegin delete may use program moneys for
10operating assistance in the fiscal year in which the service is first
11implemented, andend delete
begin insert that has used program moneys for operating
12assistance to implement new or expanded transit service in a
13previous fiscal year may use program moneys to continue to
14operate the same serviceend insert
in any subsequent fiscal year if the agency
15can demonstrate that reductions in greenhouse gas emissions can
16be realized.

begin delete

17(l)

end delete

18begin insert(m)end insert Before authorizing the disbursement of funds, the
19Department of Transportation, in coordination with the State Air
20Resources Board, shall determine the eligibility, in whole or in
21part, of the proposed list of expense types, based on the
22documentation provided by the recipient transit agency to ensure
23ongoing compliance with the guidelines developed pursuant to
24this section.

begin delete

25(m)

end delete

26begin insert(n)end insert The Department of Transportation shall notify the Controller
27of approved expenditures for each recipient transit agency, and
28the amount of the allocation for each agency determined to be
29available at that time of approval.

begin delete

30(n)

end delete

31begin insert(o)end insert A recipient transit agency that does not submit an
32 expenditure for funding in a particular fiscal yearbegin delete shallend deletebegin insert mayend insert retain
33its funding share, and may accumulate and utilize that funding
34share in a subsequent fiscal year for a larger expenditure, including
35operating assistance. The recipient transit agencybegin delete shallend deletebegin insert must firstend insert
36 specify the number of fiscal years that it intends to retain its
37funding share and the expenditure for which the agency intends
38to use these moneys.begin delete There shall be no limit on the number of
39fiscal years that a recipient transit agency may retain its funding
P6    1share.end delete
begin insert A recipient transit agency may only retain its funding share
2for a maximum of four years.end insert

begin delete

3(o)

end delete

4begin insert(p)end insert A recipient transit agency may, in any particular fiscal year,
5loan or transfer its funding share to another recipient transit agency
6within the same region for any identified eligible expenditure under
7the program, including operating assistance, in accordance with
8procedures incorporated by the Department of Transportation in
9the guidelines developed pursuant to this section, which procedures
10shall be consistent with the requirement in subdivisionbegin delete (f).end deletebegin insert (g).end insert

begin delete

11(p)

end delete

12begin insert(q)end insert A recipient transit agency may apply to the Department of
13Transportation to reassign any savings of surplus moneys allocated
14under this section to the agency for an expenditure that has been
15completed to another eligible expenditure under the program,
16including operating assistance. A recipient transit agency may also
17apply to the Department of Transportation to reassign to another
18eligible expenditure any moneys from the program previously
19allocated to the agency for an expenditure that the agency has
20determined is no longer a priority for the use of those moneys.

begin delete

21(q)

end delete

22begin insert(r)end insert The recipient transit agency shall provide annual reports to
23the Department of Transportation, in the format and manner
24prescribed by the department, consistent with the internal
25administrative procedures for use of fund proceeds developed by
26the State Air Resources Board.

begin delete

27(r)

end delete

28begin insert(s)end insert The Department of Transportation and recipient transit
29agencies shall comply with the guidelines developed by the State
30Air Resources Board pursuant to Section 39715 of the Health and
31Safety Code to ensure that the requirements of Section 39713 of
32the Health and Safety Code are met to maximize the benefits to
33disadvantaged communities as described in Section 39711 of the
34Health and Safety Code.

begin insert

35
(t) A recipient transit agency shall comply with all applicable
36legal requirements, including the requirements of the California
37Environmental Quality Act (Division 13 (commencing with Section
3821000)), and civil rights and environmental justice obligations
39under state and federal law. Nothing in this section shall be
P7    1construed to expand or extend the applicability of those laws to
2recipient transit agencies.

end insert
begin delete

3(s)

end delete

4begin insert(u)end insert The audit of public transportation operator finances already
5required under the Transportation Development Act pursuant to
6Section 99245 of the Public Utilities Code shall be expanded to
7include verification of receipt and appropriate expenditure of
8moneys from the program. Each recipient transit agency receiving
9moneys from the program in a fiscal year for which an audit is
10conducted shall transmit a copy of the audit to the Department of
11Transportation, and the department shall make the audits available
12to the Legislature and the Controller for review on request.

13

SEC. 2.  

Section 75231 is added to the Public Resources Code,
14to read:

15

75231.  

(a) A recipient transit agency under the program created
16pursuant to Section 75230 may apply to the Department of
17Transportation for a letter of no prejudice for any eligible
18expenditures under the program, including operating assistance,
19for which the department has authorized a disbursement of funds.
20If approved by the department, the letter of no prejudice shall allow
21the recipient transit agency to expend its own moneys for the
22expenditures and to be eligible for future reimbursement from
23moneys available for the program.

24(b) The amount expended under subdivision (a) shall be
25reimbursed by the state from moneys available for the program if
26all of the following conditions are met:

27(1) The expenditures for which the letter of no prejudice was
28requested have commenced, and any regional or local expenditures,
29if applicable, have been incurred.

30(2) The expenditures made by the recipient transit agency are
31eligible under the program. If expenditures made by the recipient
32transit agency are determined to be ineligible, the state has no
33obligation to reimburse those expenditures.

34(3) The recipient transit agency complies with allbegin insert applicableend insert
35 legal requirements for the expenditures, including the requirements
36of the California Environmental Quality Act (Division 13
37(commencing with Section 21000)),begin delete if applicable.end deletebegin insert and civil rights
38and environmental justice obligations under state and federal law.
39Nothingend insert
begin insert in this section shall be construed to expand or extend the
40applicability of those laws to recipient transit agencies.end insert

P8    1(4) There are moneys in the Greenhouse Gas Reduction Fund
2designated for the programbegin insert and from the recipient transit agency’s
3formula allocation share as determined pursuant to subparagraph
4(B) of paragraph (1) of subdivision (b) of Section 39719 of the
5Health and Safety Codeend insert
that are sufficient to make the
6reimbursement payment.

7(c) The recipient transit agency and the Department of
8Transportation shall enter into an agreement governing
9 reimbursement as described in this section. The timing and final
10amount of reimbursement shall be dependent on the terms of the
11agreement and the availability of moneys in the Greenhouse Gas
12Reduction Fund for the program.

13(d) The Department of Transportation, in consultation with
14recipient public transit agencies, may develop guidelines to
15implement this section.



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