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SB-2 Greenhouse Gas Reduction Fund.(2015-2016)

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CALIFORNIA LEGISLATURE— 2015–2016 1st Ext.

Senate Bill
No. 2


Introduced by Senator Huff
(Coauthors: Senators Anderson, Bates, Berryhill, Fuller, Gaines, Moorlach, Morrell, Nguyen, Nielsen, Runner, Stone, and Vidak)

June 30, 2015


An act to amend Section 39719 of, and to add Section 39719.3 to, the Health and Safety Code, relating to transportation.


LEGISLATIVE COUNSEL'S DIGEST


SB 2, as introduced, Huff. Greenhouse Gas Reduction Fund.
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 60% of the annual proceeds of the fund to various purposes, including high-speed rail, transit and intercity rail capital, low-carbon transit operations, and affordable housing and sustainable communities.
This bill would exclude from allocation under these provisions the annual proceeds of the fund generated from the transportation fuels sector. The bill would instead provide that those annual proceeds shall be appropriated by the Legislature for transportation infrastructure, including public streets and highways, but excluding high-speed rail.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 The Legislature hereby finds and declares all of the following:
(a) Over the next 10 years, the state faces a $59 billion shortfall to adequately maintain the state highway system in a basic state of good repair.
(b) Similarly, cities and counties face a $78 billion shortfall over the next decade to adequately maintain the existing network of local streets and roads.
(c) Since the State Air Resources Board imposed the cap-and-trade tax on gasoline production in January 2015, the Governor’s budget is projecting that $2.7 billion will be available from the Greenhouse Gas Reduction Fund in the fiscal year that begins July 1. That figure is more than double the amount that was available last year.
(d) Revenue has surged because cap-and-trade now applies to transportation fuels, the source of roughly 40 percent of the state’s carbon emissions.
(e) The Legislative Analyst’s Office projects that the imposition of cap-and-trade on transportation fuels will raise $1.9 billion this year. This revenue is raised by taxing consumers (through a pass-through increased cost of gasoline) and should be used to repair our streets and roads.
(f) Investing in our streets and roads will end traffic gridlock and improve mobility, which, in turn, will reduce greenhouse gases in the state.

SEC. 2.

 Section 39719 of the Health and Safety Code is amended to read:

39719.
 (a) The Legislature shall appropriate the annual proceeds of the fund for the purpose of reducing greenhouse gas emissions in this state in accordance with the requirements of Section 39712.
(b) To carry out a portion of the requirements of subdivision (a), annual proceeds are continuously appropriated for the following:
(1) Beginning in the 2015–16 fiscal year, and notwithstanding Section 13340 of the Government Code, 35 percent of annual proceeds are continuously appropriated, without regard to fiscal years, for transit, affordable housing, and sustainable communities programs as following:
(A) Ten percent of the annual proceeds of the fund is hereby continuously appropriated to the Transportation Agency for the Transit and Intercity Rail Capital Program created by Part 2 (commencing with Section 75220) of Division 44 of the Public Resources Code.
(B) Five percent of the annual proceeds of the fund is hereby continuously appropriated to the Low Carbon Transit Operations Program created by Part 3 (commencing with Section 75230) of Division 44 of the Public Resources Code. Funds shall be allocated by the Controller, according to requirements of the program, and pursuant to the distribution formula in subdivision (b) or (c) of Section 99312 of, and Sections 99313 and 99314 of, the Public Utilities Code.
(C) Twenty percent of the annual proceeds of the fund is hereby continuously appropriated to the Strategic Growth Council for the Affordable Housing and Sustainable Communities Program created by Part 1 (commencing with Section 75200) of Division 44 of the Public Resources Code. Of the amount appropriated in this subparagraph, no less than 10 percent of the annual proceeds, shall be expended for affordable housing, consistent with the provisions of that program.
(2) Beginning in the 2015–16 fiscal year, notwithstanding Section 13340 of the Government Code, 25 percent of the annual proceeds of the fund is hereby continuously appropriated to the High-Speed Rail Authority for the following components of the initial operating segment and Phase I Blended System as described in the 2012 business plan adopted pursuant to Section 185033 of the Public Utilities Code:
(A) Acquisition and construction costs of the project.
(B) Environmental review and design costs of the project.
(C) Other capital costs of the project.
(D) Repayment of any loans made to the authority to fund the project.
(c) In determining the amount of annual proceeds of the fund for purposes of the calculation in subdivision (b), the funds subject to Section Sections 39719.1 and 39719.3 shall not be included.

SEC. 3.

 Section 39719.3 is added to the Health and Safety Code, to read:

39719.3.
 The annual proceeds of the fund generated from the transportation fuels sector shall be appropriated by the Legislature for transportation infrastructure, including public streets and highways, but excluding high-speed rail.