BILL ANALYSIS Ó SENATE COMMITTEE ON TRANSPORTATION AND HOUSING Senator Jim Beall, Chair 2015 - 2016 Regular Bill No: SB 951 Hearing Date: 3/29/2016 ----------------------------------------------------------------- |Author: |McGuire | |----------+------------------------------------------------------| |Version: |3/17/2016 Amended | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Erin Riches | |: | | ----------------------------------------------------------------- SUBJECT: Transportation: Golden State Patriot Passes Program DIGEST: This bill creates a pilot program to provide veterans with free access to transit services. ANALYSIS: AB 32 (Núñez and Pavley, Chapter 488, Statutes of 2006) requires the state Air Resources Board (ARB) to develop a plan to reduce emissions to 1990 levels by 2020. It also requires ARB to ensure that programs to reduce greenhouse gas (GHG) emissions are targeted, to the extent feasible, to the most disadvantaged communities (DACs) in the state. AB 32 authorizes ARB to deposit any fees paid by GHG emission sources into the Greenhouse Gas Reduction Fund (GGRF). SB 535 (De León, Chapter 830, Statutes of 2012) requires 25% of GGRF funds to be allocated to projects that provide benefits to DACs, and at least 10% to projects located within DACs. DACs were identified by the California Environmental Protection Agency using census tract data based on geographic, socioeconomic, public health, and environmental hazard criteria. The 2014-15 budget agreement provides that for 2015-16 and beyond, 25% of GGRF revenues shall be appropriated to the state's high-speed rail project, 20% for affordable housing and sustainable communities grants, 10% to intercity capital rail projects, and 5% for low-carbon transit operations. The SB 951 (McGuire) Page 2 of ? remaining 40% is available for annual appropriation by the Legislature. This bill: 1)Creates a pilot program, the Golden State Patriot Passes Program, to be administered by the state Department of Transportation (Caltrans). 2)Provides an annual appropriation of $3 million in GGRF monies for fiscal years 2017-18 to 2020-21 for this program. 3)Requires Caltrans, in coordination with ARB, to develop guidelines for participating transit providers to demonstrate that proposed expenditures will reduce GHG emissions and increase veteran mobility. 4)Requires Caltrans, by January 1, 2018, to select three transit operator applicants to receive program funding. Specifically: a) Prohibits Caltrans from selecting an applicant that already provides veterans with free access to transit services in its service area. b) Requires Caltrans to select applicants that serve entirely different counties. c) Provides that Caltrans shall select one applicant that primarily serves an urban area, one that primarily serves a suburban area, and one that primarily serves a rural area (to be defined by Caltrans based on Census data). Sets maximum allocations of $2 million for an urban area applicant, $900,000 for a suburban area applicant, and $100,000 for a rural area applicant. 5)Limits applicants to public agencies, including, but not limited to, transit operators within a city or county. 6)Requires a transit operator that is selected for the program to provide a local match for any state funding it receives. 7)Requires Caltrans to ensure that benefits are provided by the program to DACs. 8)Requires participating transit operators to submit a report to SB 951 (McGuire) Page 3 of ? Caltrans by February 1, 2021, and requires Caltrans to submit a report to the Legislature by August 1, 2021. The reports shall include, but not be limited to, cost, use of monies, estimated reduction in GHG emissions, and ridership. 9)Provides that in order to participate in the program, a veteran must provide a veterans identification card issued by a veterans service organization, or a driver's license or identification card identifying the holder as a veteran. 10)Sunsets the program on January 1, 2022. COMMENTS: 1)Purpose. The author states that there is a significant need to not only provide better services for California's roughly 2 million veterans, but also to make sure all our veterans, especially the most vulnerable, have access and transportation to these services. Only 19% of veterans in California utilize the benefits to which they are entitled. Approximately 26% of veterans report having a disability; of these, 32% indicate that their disability has interfered with obtaining or holding a job. Additionally, 18- to 30-year-old veterans living in poverty are 3.5 times more likely to become homeless as compared to non-veteran adults living in poverty. With veterans being more vulnerable to unemployment and homelessness, it is paramount to provide them with affordable means to succeed. 2)Sonoma County Veterans Subsidized Fare Program. Sonoma County launched a pilot program on January 1, 2015 to provide veterans free use of Sonoma County Transit. Specifically, a veteran showing a U.S. Department of Veterans Affairs (VA) identification card or a Sonoma County Veterans identification card upon boarding a bus rides free, and Sonoma County Transit is reimbursed by the county. The county budgeted $45,000 (general fund) for this program for the year and came in under budget. The county board of supervisors unanimously voted in November to make the program permanent as of January 1, 2016. From January through June 2015, nearly 14,000 veteran trips were provided through this program, with the majority of trips SB 951 (McGuire) Page 4 of ? occurring on weekdays. During this period, veteran ridership increased by 34%. Approximately 19% of trips occurred on the route that serves the VA Outpatient Clinic. During this period, 845 Sonoma County Veterans identification cards were issued; county staff estimated that about half of these were issued specifically in relation to this program. 3)Is a bill necessary? As discussed above, Sonoma County is already operating a successful program to provide free transit passes to veterans, without any state authorization or funding. The author hopes to build on the success of this program by providing GGRF monies to help incentivize transit agencies across the state to implement similar programs. 4)Appropriate use of GGRF funds? Existing law (AB 1532, Pérez, Chapter 807, Statutes of 2012) specifies that GGRF revenues must be used to facilitate the achievement of GHG emissions reductions. The author indicates that by getting more veterans onto transit, this bill will help reduce GHG emissions while enabling veterans to connect to key services. However, emissions reductions would only occur if veterans are switching from car travel to bus travel in order to get to these services; the author contends that this bill is needed because many veterans currently cannot obtain transport to services. Because this bill requires Caltrans to develop guidelines for transit providers to demonstrate GHG reductions, and requires Caltrans to report to the Legislature, the Legislature will have the opportunity to evaluate the effectiveness of the program in reducing GHG emissions. 5)Double-referred. This bill was amended to its current form after it was referred to this committee by Rules Committee. Should this bill pass this committee, it will be referred to the Rules Committee for re-referral to the Environmental Quality Committee. Related Legislation: SB 1259 (Runner) - exempts veterans from payments of tolls or related fine on toll roads, high-occupancy toll lanes, toll bridges, toll highways, vehicular crossings, or any other toll facility. This bill will be heard in this committee on April 19, 2016. SB 951 (McGuire) Page 5 of ? AB 2222 (Holden) - provides a continuous appropriation of $50 million per year from the GGRF for the Transit Pass Program, to be administered by Caltrans. This program would support transit pass programs of public agencies that provide free or reduced-fare transit passes to public school students and community college, California State University, and University of California students. AB 2222 requires at least 50% of program funding to benefit disadvantaged communities. This bill is pending in the Assembly Transportation Committee. FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No POSITIONS: (Communicated to the committee before noon on Wednesday, March 23, 2016.) SUPPORT: American G.I. Forum of California AMVETS - Department of California (co-sponsor) California Association of County Veterans Service Officers Military Officers Association of America, California Council of Chapters Military Order of the Purple Heart of the U.S.A Inc., Department of California Sonoma County Board of Supervisors Sonoma County Transit VFW - Department of California Vietnam Veterans of America - California State Council (co-sponsor) OPPOSITION: None received -- END -- SB 951 (McGuire) Page 6 of ?