BILL ANALYSIS
SB 1445
Page 1
Date of Hearing: June 28, 2010
ASSEMBLY COMMITTEE ON TRANSPORTATION
Bonnie Lowenthal, Chair
SB 1445 (DeSaulnier) - As Amended: May 13, 2010
SENATE VOTE : 21-16
SUBJECT : Regional Planning - sustainable communities strategy
SUMMARY : Authorizes a statewide increase of $1 on vehicle
registration to be used to fund the Planning Advisory and
Assistance Council (PAAC) and to fund regional planning related
to SB 375 (Steinberg, Chapter 728, Statutes of 2008), for
Metropolitan Planning Organizations (MPOs), Councils of
Governments (COGs), and county transportation planning agencies;
and revises the membership and duties of the PAAC.
Specifically, this bill :
1)Adds to the existing membership of the PAAC, the following
members:
a) Seven representatives of regional planning
organizations;
b) One member of the California Air Resources Board (ARB);
c) One member of the California Transportation Commission
(CTC);
d) One member of the State Energy Resources Conservation
and Development Commission;
e) One member appointed by the Speaker of the Assembly;
and,
f) One member appointed by the Senate Committee on Rules;
2)Provides that the seven representatives of regional planning
organizations shall be from the governing body of each of the
following:
a) Nominees submitted by the following regional planning
organizations, as selected by the Director of the
Governor's Office of Planning and Research (OPR) from each
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of the following:
i) The Southern California Association of Governments
(SCAG);
ii) The Metropolitan Transportation Commission (MTC) or
the Association of Bay Area Governments (ABAG), provided
that the person appointed shall be a member of the
governing body for both MTC and ABAG;
iii) The San Diego Association of Governments (SANDAG);
iv) The Sacramento Area Council of Governments (SACOG);
and,
v) The San Joaquin Valley Regional Policy Council
(SJVRPC);
b) Nominees submitted by the California Association of
Councils of Governments (CALCOG), as selected by the
Director of OPR:
i) A metropolitan planning organization or council of
governments that is not identified in # 2a listed above;
and,
ii) A regional transportation planning agency that is
neither a metropolitan planning organization nor a
council of governments.
3)Adds the following new duties to the PAAC:
a) Work with the Strategic Growth Council (SGC), regional
agencies such as MPOs and COGs, and with cities and
counties to facilitate the implementation of regional
blueprint plans.
b) Develop and propose recommendations to the SGC, the
Department of General Services (DGS), the State Allocation
Board, the Department of Housing and Community Development
(HCD), the Department of Transportation (Caltrans), the
California Transportation Commission, (CTC), and any other
state agencies that affect land use, housing, or
transportation in order to facilitate the coordination
between regional blueprint plans, state growth and
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infrastructure funding plans, and programs that facilitate
the implementation of regional blueprint plans.
c) Receive reports, including, but not limited to, a copy
of the five-year infrastructure plan.
d) Report to the Legislature, in consultation and
coordination with the SGC, on the manner in which state
agencies are implementing the requirements of AB 857
(Wiggins, Chapter 1016, Statutes of 2002).
e) Report to the Legislature on regional performance
measures, evaluating the progress of each region of the
state in improving results for its residents in employment,
environmental protection, education, housing, mobility, and
other criteria as determined by the PAAC, and provides that
the PAAC shall provide the Legislature with updates to the
report periodically, as the PAAC determines is required.
4)Requires the vehicle registration fee imposed by Section 9250
of the Vehicle Code to be increased by an additional one
dollar ($1) on July 1, 2011 and sunsets the fee increase on
January 1, 2016.
5)Requires the Department of Motor Vehicles (DMV), after
deducting its administrative costs, to deposit 1 % of the net
revenues received from the additional vehicle registration fee
into the PAAC Fund, and requires the DMV to make the funds
available to the PAAC, upon appropriation by the Legislature.
6)Requires that the fee revenue in the PAAC Fund be used to
perform specified coordination and planning-related functions.
7)Requires DMV to distribute the remaining revenues from the fee
increase to MPOs, COGs, COGs outside of MPOs, and
transportation planning agencies in areas outside of MPOs or
COGs, based upon the amount of fees collected from motor
vehicles registered within each jurisdiction.
8)Requires that the fee revenue be distributed to MPOs, COGs
outside of MPOs, and transportation planning agencies in areas
outside of MPOs or COGs in accordance with #10 - #13 below.
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9)Creates the PAAC Fund in the State Treasury.
10)Provides that the fee revenue shall be used by the MPO, COG,
or a county transportation planning agency solely to develop
and implement a sustainable communities strategy (SCS), a
regional blueprint plan, or a rural transportation plan
element that is consistent with the guidelines developed by
Caltrans for regional blueprints, in order to identify land
use strategies to reduce the use of motor vehicles in its
jurisdiction and carry out applicable transportation-related
activities in the strategy, plan, or plan element, and thereby
to achieve the greenhouse gas emission reduction target and to
provide grants to cities, counties, cities and counties, and
congestion management agencies for planning and projects
related to the implementation of a regional blueprint plan.
11)Requires that an MPO that is jointly preparing an SCS with a
COG shall share all revenue it receives and expend that
revenue in accordance with an agreement between the two
agencies.
12)Requires that SCAG shall distribute a share of revenues
received to a county transportation commission or subregional
COG that has elected to prepare a subregional SCS, and
provides that the share of each eligible agency shall be
computed after deducting from total revenues available to SCAG
the costs incurred by SCAG for preparing the regionwide SCS,
and then allocating the revenues based on the amount of fees
collected from motor vehicles registered within the
jurisdiction of each eligible agency.
13)Requires that the MPO, COG, or county transportation
commission and a subregional COG jointly preparing a
subregional SCS, may, pursuant to an agreement with the local
air quality management district (AQMD) that has responsibility
over the jurisdiction, share revenues with the local AQMD,
provided that all revenue received by the local AQMD shall be
used to assist local and regional governments in reducing
greenhouse gas emissions, including but not limited to the
following:
a) Assistance in the development of a subregional SCS;
b) Assistance in the development of local greenhouse gas
emission inventories;
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c) Assistance in the development of greenhouse gas emission
reduction strategies in general plans;
d) Development of and assistance with California
Environmental Quality Act (CEQA) guidelines and review of
greenhouse gas emissions in CEQA analyses;
e) Consultation and development of local climate action
plans; and,
f) Project-specific consultation work to reduce greenhouse
gas emissions from local transportation and land use
decisions.
14)Provides that a SCS and an alternative planning strategy
shall both be considered to be a regional blueprint plan.
15)Sunsets specified portions of the bill on January 1, 2016,
and repeals those portions on January 1, 2017, unless a later
enacted statute deletes or extends those dates.
16)Provides that the SGC shall consult and coordinate its
recommendations with the PAAC.
17)Extends, from July 1, 2010 to July 1, 2012, the deadline for
the SGC to report to the Legislature applicants for financial
assistance, amounts awarded, the remaining balance of
available funds, and the proposed or ongoing management of
each funded project.
18)Makes findings and declarations regarding the SGC, PAAC, and
the importance of land use and transportation planning.
EXISTING LAW :
1)Requires the MPOs to adopt regional transportation plans
(RTPs) directed at achieving a coordinated and balanced
regional transportation system, including, but not limited to,
mass transportation, highway, railroad, maritime, bicycle,
pedestrian, goods movement, and aviation facilities and
services. The RTP must contain a policy element, an action
element, and a financial element and is the source for
projects programmed in the regional transportation improvement
program. Requires each MPO to include within its regional
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transportation plan an SCS, designed to achieve specified
targets for GHG emission reduction. If the SCS does not
achieve the reduction target, the MPO must prepare an
alternative planning strategy.
2)Authorizes local agencies to form joint powers agencies.
Cities and counties in regions have exercised this authority
to form joint powers agencies called COGs to implement
regional planning activities required under state law,
including regional housing needs assessments and regional
transportation plans. COGs generally serve as federally
recognized MPOs for transportation planning purposes, although
there are exceptions. As an example, in the nine-county San
Francisco Bay region, ABAG is the COG that prepares the
regional housing needs assessment, but MTC is the region's MPO
for transportation planning.
3)Establishes OPR within the governor's office as the state's
comprehensive planning agency. The PAAC, located within OPR,
is responsible for various land use planning related
activities, including development of the State Environmental
Goals and Policies Report. OPR's director appoints the
membership of the PAAC, which must include three city
representatives, three county representatives, one
representative from each of the regional planning districts
designated by OPR, and one representative of Indian tribes
with reservations in California.
4)Creates SGC, which is required to recommend policies to the
governor, state agencies, and the Legislature to encourage the
development of sustainable communities and provide local
governments and regional agencies with data to assist in
planning sustainable communities.
5)Establishes a basic vehicle registration fee of $34, plus a
$22 surcharge for additional personnel for the California
Highway Patrol, and authorizes local agencies to impose
separate vehicle registration fee surcharges in their
respective jurisdictions for a variety of special programs,
including:
a) $1 for deterring and prosecuting vehicle theft;
b) $1 for service authorities for freeway emergencies;
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c) $1 for deterring and prosecuting vehicle theft;
d) Up to $7 for air quality programs;
e) Up to $4 pursuant to the resolution by the City/County
Association of Governments of San Mateo County, upon
vehicles registered within San Mateo County, for stormwater
and congestion management relief purposes;
f) Up to $6, upon action by Sacramento AQMD, upon vehicles
registered within its district.
g) Up to $30 to fund programs to reduce vehicle emissions
upon vehicle owners who register their vehicles in San
Joaquin, Stanislaus, Merced, Madera, Fresno, Kings, and
Tulare Counties and valley portions of Kern County;
h) Up to $1, upon action by the South Coast AQMD, upon
vehicles within its district;
i) A fee of $4 upon action by the City and County of San
Francisco and subject to voter approval, for the provision
of public transit;
j) $1 for removing abandoned vehicles; and,
aa) $1 for fingerprint identification programs.
6)Distinguishes a fee from a tax in that a fee pays for a
specific service or project and cannot exceed the reasonable
costs of providing the service or projects that it funds.
Unlike a tax, which benefits the general public, the payer of
the fee is the beneficiary.
7)Allows fees to be imposed by an agency's governing board.
FISCAL EFFECT : According to the Senate Appropriations
Committee, this bill requires up front costs of about $100,000
for DMV to establish formulas to determine the distribution of
the revenues based on the number of vehicles in each of the
recipient agencies' jurisdiction. Ongoing administrative costs
would be deducted from fees collected prior to distribution to
the local agency.
COMMENTS : According to the author's office, "SB 375 requires
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that each MPO and COG develop a sustainable communities strategy
reflecting preferred land uses as part of its regional
transportation plan. The sustainable communities strategy will
build on regional blueprints that are already being prepared.
To successfully implement SB 375 and its required regional
transportation plans to address greenhouse gases, regional and
local governments need resources for strategic planning and
opportunities for coordination with the efforts of the
Governor's Strategic Growth Council and other state agencies as
required by the enactment of SB 732. The purpose of this bill
is to provide funding for the strategic planning that must be
done by the regions. With California's population predicted to
grow by 16 million over the next two decades, regions and cities
need state agencies to act in concert with local officials to
accomplish the goals of regional planning and the larger
regional and state goals. The regional blueprint plans will
address mobility, congestion, transit use, infill development,
housing supply and the presence of farmland and habitat in our
communities with the objective of improving economic growth, air
quality and the quality of life."
Additionally, this bill adds new members to PAAC, and gives PAAC
the responsibility to work with SGC and other regional agencies
to facilitate the implementation of regional blueprint plans,
and requires PAAC to report back to the Legislature, in
consultation and coordination with SGC. This bill represents
the author's third attempt to establish planning funds for
strategic blueprint and sustainable planning funding efforts.
How much funds to the PAAC? Under the provisions of this bill,
1% of net vehicle registration fees collected (after DMV
administrative costs are deducted) would be transferred to PAAC
to perform the new duties imposed by this bill. Accordingly,
over $300,000 would be allocated annually upon appropriation by
the Legislature. Is this amount overly generous to administer
the functions of this advisory group?
How much funds to the MPOs and COGs and other planning entities?
DMV indicates that there were 31,243,470 fee-paid vehicles
registered in the state in 2009. Accordingly, this bill would
generate over $31 million annually for regional land use
strategic planning purposes. The revenues would be allocated by
PAAC staff to MPOs, COGs, and local transportation planning
agencies for regional blueprints designed to achieve specified
greenhouse gas emission reduction targets. Is the PAAC
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sufficiently staffed to administer and properly account for
these funds? Who will be providing the necessary oversight of
the PAAC as $31 million represents a significant annual
allocation. Is the $31 million insufficient for statewide
distribution or overly generous? Additionally, as suggested by
two of the bill's supporters, should the funds be administered
by the strategic growth council instead of PAAC?
Support : According to this bill's sponsor, the California
Association of Councils of Governments (CALCOG), "The reason for
the bill is quite simple. If the state government wants to see
regional and local governments fully implement SB 375 and its
required regional transportation plans to address greenhouse
gases and for strategic planning for coordination with the
efforts of the Strategic Growth Council and other state
agencies, then it must provide the financial resources to do
so... Without a guaranteed revenue stream to the regional
transportation planning agencies, they simply cannot fully carry
out their important responsibilities under SB 375."
Opposition : Writing in opposition to this bill, Caltrans
indicates that "This measure is virtually identical to last
year's SB 406 which was vetoed by Governor Schwarzenegger. In
vetoing last year's measure, the Governor noted that while
reducing greenhouse gas emission is of utmost priority in his
Administration and is essential for achieving California's
climate change goals, this bill would have authorized a
municipal planning organization, a council of governments, or a
county transportation commission and a sub-regional council of
governments, by resolution, to impose a new fee on motor
vehicles registered in their jurisdiction?SB 1445 fails to
address the issue of a fee increase, which, as the Governor has
stated in prior veto messages, should be subject to voter
approval."
Related bills : SB 406 (DeSaulnier) of 2009, a similar bill that
would have authorized regional and local planning entities to
impose a $1 or $2 increase on vehicle registrations within their
planning jurisdictions. The bill was approved by this
committee. The governor's veto message indicated that the
increase needs to be approved by the vote of the people.
AB 2870 (DeSaulnier) of 2008, would have created the California
Blueprint Implementation Council, which would have been charged
with the implementation of regional blueprint projects.
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Previous versions of AB 2870 would have allowed for the
imposition of a surcharge on motor vehicle registration, in
order for the MPO or COG to fund the development and
implementation of a regional blueprint plan to identify land use
strategies to reduce motor vehicle use and greenhouse gas
emissions. AB 2870 was not heard in this committee but was
approved by the Assembly and then failed passage in the Senate
Local Government Committee.
AB 153 (Ma) of 2010, a bill similar to SB 406. However, AB 153,
within a geographical area represented by several local and
regional planning agencies, would allow voters within that
aggregated area to approve a vehicle registration fee increase
of up to $4. The bill is awaiting hearing in the Senate
Transportation and Housing Committee.
Committee of second referral : This bill was first referred to
the Assembly Local Government Committee and was heard in that
committee earlier today.
REGISTERED SUPPORT / OPPOSITION :
Support
California Association of Councils of Governments (CALCOG)
Metropolitan Transportation Commission
Natural Resources Defense Council
Planning and Conservation League
California ReLeaf (with amendments to shift funds from PAAC to
SGC)
Transform
TreePeople (with amendments to shift funds from PAAC to SGC)
Opposition
Caltrans
Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093