Bill Text: CA SB824 | 2015-2016 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Low Carbon Transit Operations Program.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2016-09-22 - Chaptered by Secretary of State. Chapter 479, Statutes of 2016. [SB824 Detail]
Download: California-2015-SB824-Introduced.html
Bill Title: Low Carbon Transit Operations Program.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2016-09-22 - Chaptered by Secretary of State. Chapter 479, Statutes of 2016. [SB824 Detail]
Download: California-2015-SB824-Introduced.html
BILL NUMBER: SB 824 INTRODUCED BILL TEXT 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 introduced, 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 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. The bill would, in that regard, require the department to annually calculate a funding share for each eligible recipient transit agency. The bill would allow a recipient transit agency to loan or transfer its funding share in a particular fiscal year to another recipient transit agency, 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, 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. 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. 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. (c) Funding shall be allocated by the Controller 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 requestedthatis currently available. (d) Moneys for the program shall be expended to provide transit operating or capital assistance that meets all of the following criteria: (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. (2) The recipient transit agency demonstrates that each expenditure directly enhances or expands transit service to increase mode share. (3) The recipient transit agency demonstrates that each expenditure reduces greenhouse gas emissions. (e) 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. (f) 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 (e) and establish the reporting requirements for documenting ongoing compliance with those criteria. (g) 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. (h) 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 subdivision (f) to demonstrate compliance with subdivisions (d) and (e). (i) 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.(i)(j) Before authorizing the disbursement of funds, thedepartment,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 subdivision (f).(j)(k) ThedepartmentDepartment of Transportation shall notify the Controller of approved expenditures for each recipient transit agency, and the amount of the allocation for eachtransitagency determined to be available at that time of approval. (l) 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. (m) A recipient transit agency may, in a particular fiscal year, loan or transfer its funding share to another recipient transit agency with an identified eligible expenditure under the program, under terms and conditions approved by the Department of Transportation in the guidelines developed pursuant to subdivision (f). (n) A group of recipient transit agencies may, in a particular fiscal year, enter into an agreement to pool the respective funding shares of each member of the group for an identified eligible expenditure under the program, under terms and conditions approved by the Department of Transportation in the guidelines developed pursuant to subdivision (f). (o) 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.(k)(p) 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.( l) (q) 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. (r) 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.