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AB-5 Greenhouse Gas Reduction Fund: High-Speed Rail Authority: K–12 education: transfer.(2021-2022)

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Date Published: 03/17/2021 09:00 PM
AB5:v98#DOCUMENT

Amended  IN  Assembly  March 17, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 5

Introduced by Assembly Member Fong
(Coauthors: Assembly Members Cunningham, Davies, and Nguyen)

December 07, 2020

An act to amend Section 39719 of, and to add Section 39719.3 to, of the Health and Safety Code, relating to high-speed rail, and making an appropriation therefor. the Greenhouse Gas Reduction Fund.


LEGISLATIVE COUNSEL'S DIGEST


AB 5, as amended, Fong. Greenhouse Gas Reduction Fund: High Speed High-Speed Rail Authority: K–12 education: transfer and loan. transfer.
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 in its regulation of those emissions the use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board from the auction or sale of allowances as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund. Existing law continuously appropriates 25% of the annual proceeds of the fund to the High-Speed Rail Authority for certain purposes.
This bill would suspend the appropriation to the High-Speed Rail Authority for the 2021–22 and 2022–23 2023–24 and 2024–25 fiscal years and would require the transfer of those amounts from moneys collected by the state board to the General Fund. The bill would specify that the transferred amounts shall be available, upon appropriation, to support augment funding for K–12 education and to offset any funding reduction for K–12 education. support full-time in-person instruction for all students.

This bill would require the transfer of a sum of $2,400,000,000, as a loan, from the unencumbered moneys appropriated to the authority before the 2020-21 fiscal year from the Greenhouse Gas Reduction Fund to the General Fund. The bill would specify that the transferred moneys, upon appropriation, are available to support K–12 education and to offset any funding reductions for K–12 education in the 2021–22 Budget Act.

The Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century, approved by the voters as Proposition 1A at the November 4, 2008, statewide general election, provides for the issuance of general obligation bonds in the amount of $9,000,000,000 for high-speed rail purposes and $950,000,000 for other related rail purposes. The act requires bonds issued and sold pursuant to the act to be deposited in the High-Speed Passenger Train Bond Fund. The California High-Speed Rail Act creates the High-Speed Rail Authority to develop and implement a high-speed rail system in the state, with specified powers and duties.

This bill would appropriate $2,400,000,000 from the High-Speed Passenger Train Bond Fund to the authority for the sole purpose of completing the minimum scope of work necessary to meet federal grant requirements and satisfy existing regional commitments, as described in the 2020 High-Speed Rail Authority Draft Business Plan, thereby making an appropriation.

Vote: MAJORITY   Appropriation: YESNO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 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), the annual proceeds of the fund 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 the annual proceeds of the fund are continuously appropriated, without regard to fiscal years, for transit, affordable housing, and sustainable communities programs as follows:
(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. Moneys 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 of the fund shall be expended for affordable housing, consistent with the provisions of that program.
(2) (A) 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:
(i) Acquisition and construction costs of the project.
(ii) Environmental review and design costs of the project.
(iii) Other capital costs of the project.
(iv) Repayment of any loans made to the authority to fund the project.
(B) The appropriation in subparagraph (A) shall be suspended for the 2021–22 and 2022–23 2023–24 and 2024–25 fiscal years, and the 25 percent of annual proceeds of the fund shall instead be transferred from moneys collected by the state board on and after January 1, 2021, to the General Fund and be available, upon appropriation, to provide additional support augment funding for K–12 education and to offset any funding reductions for K–12 education. support full-time in-person instruction for all students.
(3) (A) Beginning in the 2020–21 fiscal year, and until June 30, 2030, 5 percent of the annual proceeds of the fund, up to the sum of one hundred thirty million dollars ($130,000,000), is hereby annually transferred to the Safe and Affordable Drinking Water Fund established pursuant to Section 116766 for the purposes of Chapter 4.6 (commencing with Section 116765) of Part 12 of Division 104.
(B) Moneys transferred under this paragraph shall be used for the purpose of facilitating the achievement of reductions of greenhouse gas emissions in this state in accordance with the requirements of Section 39712 or to improve climate change adaptation and resiliency of disadvantaged communities or low-income households or communities, consistent with Division 25.5 (commencing with Section 38500). For purposes of the moneys transferred under this paragraph, a state agency may also comply with the requirements of paragraphs (2) and (3) of subdivision (a) of Section 16428.9 of the Government Code by describing how each proposed expenditure will improve climate change adaptation and resiliency of disadvantaged communities or low-income households or communities.
(c) In determining the amount of annual proceeds of the fund for purposes of the calculation in subdivision (b), the funds subject to Section 39719.1 shall not be included.

SEC. 2.Section 39719.3 is added to the Health and Safety Code, to read:
39719.3.

(a)Of the unencumbered balance of funds appropriated to the High-Speed Rail Authority pursuant to paragraph (2) of subdivision (b) of Section 39719, Section 39719.1, and Item 2665-306-3228 of Section 2.00 of the Budget Act of 2014 (Chapter 25 of the Statutes of 2014) before the 2020–21 fiscal year, the sum of two billion four hundred million dollars ($2,400,000,000) shall be transferred by the Controller to the General Fund as a loan.

(b)The funds transferred pursuant to subdivision (a) shall be available, upon appropriation, to provide additional support for K–12 schools, and offset any funding reductions for K–12 education in the 2021–22 Budget Act.

(c)The loan in subdivision (a) shall be repaid to the Greenhouse Gas Reduction Fund.

SEC. 3.

(a)The sum of two billion four hundred million dollars ($2,400,000,000) is hereby appropriated from the High-Speed Passenger Train Bond Fund, which is created pursuant to Section 2704.05 of the Streets and Highways Code, to the High-Speed Rail Authority, for the sole purpose of completing the minimum scope of work necessary to meet federal grant requirements and satisfy existing regional commitments, as described in the 2020 High-Speed Rail Authority Draft Business Plan.

(b)In expending the funds appropriated pursuant to subdivision (a), the High-Speed Rail Authority shall not take any action to execute a track and systems procurement beyond the minimum scope of work described in subdivision (a), procure trainsets, or acquire rights-of-way outside of the 119-mile segment currently under construction between Madera and Poplar Avenue.