An act to amend Section 75230 of the Public Resources Code, relating to transportation, and making an appropriation therefor.

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.
(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 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.
(d) (1) Moneys for the program shall be expended to provide transit operating or capital assistance that meets all of the following criteria:
(A) 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.
(B) The recipient transit agency demonstrates that each expenditure directly enhances or expands transit service to increase mode share.
(C) The recipient transit agency demonstrates that each expenditure reduces greenhouse gas emissions.
(2) (A) Moneys for the program may additionally be expended to support the operation of existing bus or rail service if all of the following occur:
(i) The governing board of the transit agency declares a fiscal emergency, as defined in paragraph (2) of subdivision (d) of Section 21080.32, within 90 days prior to the agency requesting the funds.
(ii) The expenditure of the requested funds is necessary to sustain the transit agency’s transit service in the fiscal year in which the requested funds are to be expended.
(iii) The governing board of the transit agency would be required to reduce or eliminate transit service if the requested funds are not received.
(iv) The governing board makes a finding that a reduction in, or elimination of, transit service would increase greenhouse gas emissions because transit customers would choose other less-efficient modes of transportation.
(v) The transit agency does not request funds over consecutive funding years unless the transit agency has declared a fiscal emergency in each year consistent with clause (i).
(vi) The transit agency does not request funds for more than three consecutive funding years.
(B) Moneys allocated for the purpose of this paragraph shall be expended to provide transit operating assistance that meets both of the following criteria:
(i) The expenditures support current bus- or rail-service operating costs and may include labor, fueling, maintenance, and other costs to operate and maintain those services.
(ii) The recipient transit agency demonstrates that each expenditure directly sustains transit service that would otherwise be reduced or eliminated in the upcoming year if those funds were not received.
(e) For 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 purs:
(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) 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,
types
based on the documentation provided by the recipient transit agency to ensure ongoing compliance with the guidelines developed pursuant to subdivision (f).
(j) The Department of Transportation shall notify the Controller of approved expenditures for each transit agency and the amount of the allocation for each transit agency determined to be available at that time of approval.
(k) 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
the
use of
the
fund proceeds developed by the State Air Resources Board.
(l) 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 identified pursuant to Section 39711 of the Health and Safety Code.

Summary: The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include the use of market-based compliance mechanisms. Existing law requires all
moneys, except for fines and penalties,
moneys
collected by the state board as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund and to be available upon appropriation. Existing law continuously appropriates specified portions of the annual proceeds in the fund to various programs, including 5% for the Low Carbon Transit Operations Program, which provides operating and capital assistance for transit agencies to reduce greenhouse gas emissions and improve mobility, with a priority on serving disadvantaged communities.
This bill would additionally authorize moneys appropriated to the program to be expended to support the operation of existing bus or rail service if the governing board of the requesting transit agency declares a fiscal emergency and other criteria are met, thereby expanding the scope of an existing continuous appropriation.