This bill would appropriate $3,000,000 annually until the 202021 fiscal year from the Greenhouse Gas Reduction Fund for the Golden State Patriot Passes Program, which the bill would create, create the Golden State Patriot Passes Program to be administered by the Department of Transportation to provide veterans with free access to transit services. The bill would require the department, in coordination with the State Air Resources Board, department to develop guidelines that describe the methodologies that a participating transit operator would use to demonstrate that proposed expenditures would reduce greenhouse gas emissions, increase veteran mobility, mobility and fulfill specified requirements. The bill would require the department to select 3 transit operators to participate, and would require a transit operator selected to participate in the program to match any state moneys that it receives through the program with local moneys. The bill would require the participating transit operators and the department to report on the program. The bill would repeal the program on January 1, 2022.

Existing law prohibits a person from driving a vehicle upon a highway at a speed greater than is reasonable or prudent having due regard for weather, visibility, the traffic on, and the surface and width of, the highway, and in no event at a speed that endangers the safety of persons or property.

This bill would expressly prohibit a person from driving a vehicle upon a highway at a speed greater than is reasonable or prudent having due regard for objects and disabled vehicles on the side of the highway.

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

SB 951 (McGuire) - Transportation: Golden State Patriot Passes Program

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

SB 951 would establish the Golden State Patriot Passes Program as a pilot program and require the Department of Transportation (Caltrans) to select three transit operators to provide free transit services to veterans until January 1, 2022, as specified.

Fiscal Impact:

• Annual program costs of up to $3 million from 2017-18 through 2020-21. (General Fund or unspecified special funds)
  
• Caltrans costs of approximately $100,000 annually for one limited-term PY of staff to develop and administer the pilot program through 2020-21, and prepare the required report. (State Highway Account)

Background:

Many transit agencies in California provide free or reduced fare transit passes to certain riders. For example, the San Francisco Muni offers free access to low and moderate income youth, Sacramento Regional Transit offers students a 50% discounted fare for monthly passes, and the Los Angeles County Metropolitan Transportation Authority offers reduced fares for both K-12 and college students, and has a partnership with the University of California Los Angeles (UCLA) and the University of Southern California (USC) to provide free passes for their students.

Sonoma County established a pilot program on January 1, 2015 to provide veterans free use of Sonoma County Transit. Under the program, a veteran with a U.S. Department of Veterans Affairs (VA) identification card or a Sonoma County Veterans identification card can ride the bus for free, and the county reimburses Sonoma County Transit for the lost fare revenues. The county board of supervisors recently voted unanimously to make the program permanent as of January 1, 2016.

Proposed Law:

SB 951 would require Caltrans to administer the Golden State Patriot Passes Program as a pilot project to provide free access to transit services and increase veteran mobility. Caltrans would develop guidelines for the program and select three transit operators by January 1, 2018 from urban, suburban, and rural areas, respectively, to participate in the program. Transit operators that provide free transit service to veterans are not eligible to participate in the pilot. To qualify for free transit service from participating operators, a veteran must show a veterans identification card issued by a veterans service organization, or a driver’s license or identification card issued by the Department of Motor Vehicles that identifies the holder as a veteran.

The bill specifies maximum state allocations of up to $2 million per fiscal year for an urban transit operator, up to $900,000 per year for a suburban transit operator, and up to $100,000 per year for a rural transit operator. Participating transit operators must provide a 1:1 match of state funds from local moneys available for purposes consistent with the program.

SB 951 requires participating transit operators to submit a report to Caltrans on cost, use of moneys, and ridership by February 1, 2021, and requires Caltrans to submit a report on the pilot program to the Legislature by August 1, 2021. The program would sunset on January 1, 2022.

Staff Comments:

The current version of the bill does not identify a funding source, but establishes maximum allocations totaling $3 million to the three participating transit operators. State funds for transit purposes from the State Transit Assistance fund are generally allocated to transit operators based on statutory formulas. In addition, the Low Carbon Transit Operations Program provides continuously appropriated moneys from the Greenhouse Gas Reduction Fund to transit operators for capital and operations expenditures that reduce greenhouse gas emissions. SB 951 would essentially provide an operating subsidy (in conjunction with local matching funds) to offset reductions in farebox revenues by providing free transit to veterans under the pilot program. Ultimately, state funding for the program may require a General Fund budget appropriation.

-- END --

SENATE COMMITTEE ON ENVIRONMENTAL QUALITY

Senator Wieckowski, Chair

2015 - 2016 Regular

Bill No: SB 951

SUBJECT: Transportation: Golden State Patriot Passes Program

ANALYSIS:

Existing law:

1. Under the California Global Warming Solutions Act of 2006 (also known as AB 32), requires the California Air Resources Board (ARB) to determine the 1990 statewide greenhouse gas (GHG) emissions level and approve a statewide GHG emissions limit that is equivalent to that level, to be achieved by 2020, and to adopt GHG emissions reductions measures by regulation. ARB is authorized to include the use of market-based mechanisms to comply with these regulations. (Health and Safety Code §38500 et seq.)
2. Establishes the Greenhouse Gas Reduction Fund (GGRF) in the State Treasury, requires all moneys, except for fines and penalties, collected pursuant to a market-based mechanism be deposited in the fund. (Government Code §16428.8)
3. Prohibits the state from approving allocations for a measure or program using GGRF moneys except after determining that the use of those moneys furthers the regulatory purposes of AB 32, and requires moneys from the GGRF be used to facilitate the achievement of reductions of GHG emissions in California. (HSC §39712)
   

This bill:

1. Creates the Golden State Patriot Passes Program administered by the state Department of Transportation (Caltrans) to provide free access to transit services for veterans, as specified.
2. Provides an annual appropriation of $3 million in GGRF moneys for fiscal years 2017-18 to 2020-21 for this program.
3. Requires Caltrans, in coordination with ARB, to develop guidelines for participating transit providers to demonstrate that proposed expenditures will reduce GHG emissions and increase veteran mobility.
4. Requires Caltrans, by January 1, 2018, to select three transit operator applicants to receive program funding. Specifically:
   1. Prohibits Caltrans from selecting an applicant that already provides veterans with free access to transit services in its service area.
   2. Requires Caltrans to select applicants that serve entirely different counties.
   3. Provides that Caltrans shall select one applicant that primarily serves an urban area, one that primarily serves a suburban area, and one that primarily serves a rural area (to be defined by Caltrans based on Census data). Sets maximum allocations of $2 million for an urban area applicant, $900,000 for a suburban area applicant, and $100,000 for a rural area applicant.
5. Limits applicants to public agencies including, but not limited to, transit operators within a city or county.
6. Requires a transit operator that is selected for the program to provide a local match for any state funding it receives.
7. Requires Caltrans to ensure that benefits are provided by the program to disadvantaged communities.
8. Requires participating transit operators to submit a report to Caltrans by February 1, 2021 and requires Caltrans to submit a report to the Legislature by August 1, 2021. The reports shall include, but not be limited to, cost, use of moneys, estimated reduction in GHG emissions, and ridership.
9. Provides that in order to participate in the program, a veteran must provide a veterans identification card issued by a veterans service organization, or a driver’s license or identification card identifying the holder as a veteran.
10. Sunsets the program on January 1, 2022.
    

Background

1. Sonoma County Veterans Subsidized Fare Program. Sonoma County launched a pilot program on January 1, 2015 to provide veterans free use of Sonoma County Transit. Specifically, a veteran showing a VA identification card or a Sonoma County Veterans identification card upon boarding a bus rides free, and Sonoma County Transit is reimbursed by the county. The county budgeted $45,000 (general fund) for this program for the year and came in under budget. The county board of supervisors unanimously voted in November to make the program permanent as of January 1, 2016.

From January through June 2015, nearly 14,000 veteran trips were provided through this program, with the majority of trips occurring on weekdays. During this period, veteran ridership increased by 34%. Approximately 19% of trips occurred on the route that serves the VA Outpatient Clinic. During this period, 845 Sonoma County Veterans identification cards were issued. County staff estimated that about half of these ID cards were issued specifically in relation to this program.

1. Cap-and-trade auction revenue.  Since November 2012, ARB has conducted 14 cap-and-trade auctions, generating over $4 billion in proceeds to the state. 

State law specifies that the auction revenues must be used to facilitate the achievement of GHG emissions reductions and outlines various categories of allowable expenditures.  Statute further requires the Department of Finance, in consultation with ARB and any other relevant state agency, to develop a three-year investment plan for the auction proceeds, which are deposited in the GGRF. ARB is required to develop guidance for administering agencies on reporting and quantifying methodologies for programs and projects funded through the GGRF to ensure the investments further the regulatory purposes of AB 32.

Disadvantaged communities. SB 535 (de León, Chapter 830, Statutes of 2012) requires the Department of Finance, in the investment plan, to allocate at least 25% of available moneys in the GGRF to projects that provide benefits to disadvantaged communities, and at least 10% to projects located within disadvantaged communities. 

To meet the SB 535 mandate, the Office of Environmental Health Hazard Assessment, under the California Environmental Protection Agency’s (CalEPA) guidance, developed a tool (termed CalEnviroScreen) to assess and rank census tracts across the state that are disproportionately affected by multiple types of pollution and areas with vulnerable populations. CalEPA has designated 25% of census tracts in California as disadvantaged communities for the purpose of investing cap-and-trade proceeds. 

Additionally, SB 862 (Committee on Budget and Fiscal Review, Chapter 36, Statutes of 2014) requires ARB to develop guidelines on maximizing benefits for disadvantaged communities by agencies administering GGRF funds.

Legal consideration of cap-and-trade auction revenues.  The 2012-13 Budget analysis of cap-and-trade auction revenue by the Legislative Analyst’s Office noted that, based on an opinion from the Office of Legislative Counsel, the auction revenues should be considered “mitigation” fee revenues, subject to the “Sinclair Nexus Test.” This test requires that a clear nexus must exist between an activity for which a mitigation fee is used and the adverse effects related to the activity on which that fee is levied. The LAO concluded, based on the opinion, that in order for their use to be valid as mitigation fees, revenues from the cap-and-trade auction must be used to mitigate GHG emissions or the harms caused by GHG emissions.

In 2012, the California Chamber of Commerce filed a lawsuit against the ARB claiming that cap-and-trade auction revenues constitute illegal tax revenue.  In November 2013, the superior court ruling declined to hold the auction a tax, concluding that it is more akin to a regulatory fee.  In February of 2014, the plaintiffs filed an appeal with the 3rd District Court of Appeal in Sacramento. That case is currently pending.

Budget allocations.  SB 862 (Committee on Budget and Fiscal Review, Chapter 36, Statutes of 2014) established a long-term cap-and-trade expenditure plan by continuously appropriating portions of the funds for designated programs or purposes.  The legislation appropriates 25% for the state’s high-speed rail project, 20% for affordable housing and sustainable communities grants, 10% to the Transit and Intercity Rail Capital Program, and 5% for low-carbon transit operations.  The remaining 40% is available for annual appropriation by the Legislature. 

The Governor’s 2016-17 proposed budget appropriates over $3 billion to a variety of programs and projects in the transportation, energy, natural resources, and waste diversion sectors.

Comments

1. Purpose of Bill. According to the author there is a significant need to not only provide better services for California’s roughly two million veterans, but also to make sure all our veterans, especially the most vulnerable, have access and transportation to these services. Only 19% of veterans in California utilize the benefits to which they are entitled. Approximately 26% of veterans report having a disability; of these, 32% indicate that their disability has interfered with obtaining or holding a job. Additionally, 18-30 year-old veterans living in poverty are 3.5 times more likely to become homeless as compared to non-veteran adults living in poverty. The author states that, with veterans being more vulnerable to unemployment and homelessness, it is paramount to provide them with affordable means to succeed.
2. Does This Bill Advance the Goals of AB 32? Any projects funded through GGRF moneys are required to facilitate the achievement of GHG emission reductions and advance the regulatory purposes of AB 32.

It is not clear that the appropriation in SB 951 advances the regulatory purposes of AB 32 and reduces GHG emissions. Only in cases where a veteran was switching from car travel to bus travel might there be a reduction of GHG emissions. However, it is unclear what that level of GHG emissions reductions might be, and whether that transit shift is taking place for veterans participating in the Sonoma County pilot program. In fact, it seems that the intent of the author with this bill is to provide services to veterans who currently do not have the means to transport themselves, or pay for public transportation. In these cases where veterans were already using public transit but having to pay, or walking or riding bicycles, there would not be GHG emissions reductions under this program.

Legal risk. As noted in the background, the issue of whether auction proceeds constitute an illegal tax is currently under appeal. The more tenuous the nexus between GGRF investments and GHG emissions reductions, the greater the legal risk that future court decisions may find those GGRF revenue allocations illegitimate, with possible consequences including invalidation of that particular appropriation or of the overall legislative allocation of GGRF.

1. Amendment needed. Although the program created in SB 951 has a laudable goal of helping veterans access transit, it is not clear that the program would result in GHG emissions reductions. An amendment is needed to strike the $3 million appropriation from the GGRF, as well as other provisions relating to funding from GGRF, from the bill. The author should work to find a more appropriate funding source as the bill moves forward.

Related/Prior Legislation

AB 2222 (Holden) provides a continuous appropriation of $50 million per year from the GGRF for the Transit Pass Program, to be administered by Caltrans. This program would support transit pass programs of public agencies that provide free or reduced-fare transit passes to public school students and community college, California State University, and University of California students. AB 2222 requires at least 50% of program funding to benefit disadvantaged communities. This bill is pending in the Assembly Transportation Committee.

SOURCE:

Author

SUPPORT:

American GI Forum of California

AMVETS – Department of California

California Association of County Veterans Service Officers

Gamaliel of California

Military Officers Association of America, California Council of Chapters

Military Order of the Purple Heart of the U.S.A., Inc., Department of California

Sonoma County Board of Supervisors

VFW – Department of California

Vietnam Veterans of America – California State Council

OPPOSITION:

CalTax

DOUBLE REFERRAL:

This measure was heard in the Senate Transportation and Housing Committee on March 29, 2016, and passed out of committee with a vote of 10-0.

-- END --

SENATE COMMITTEE ON ENVIRONMENTAL QUALITY

Senator Wieckowski, Chair

2015 - 2016 Regular

Bill No: SB 951

SUBJECT: Transportation: Golden State Patriot Passes Program

ANALYSIS:

Existing law:

1. Under the California Global Warming Solutions Act of 2006 (also known as AB 32), requires the California Air Resources Board (ARB) to determine the 1990 statewide greenhouse gas (GHG) emissions level and approve a statewide GHG emissions limit that is equivalent to that level, to be achieved by 2020, and to adopt GHG emissions reductions measures by regulation. ARB is authorized to include the use of market-based mechanisms to comply with these regulations. (Health and Safety Code §38500 et seq.)
2. Establishes the Greenhouse Gas Reduction Fund (GGRF) in the State Treasury, requires all moneys, except for fines and penalties, collected pursuant to a market-based mechanism be deposited in the fund. (Government Code §16428.8)
3. Prohibits the state from approving allocations for a measure or program using GGRF moneys except after determining that the use of those moneys furthers the regulatory purposes of AB 32, and requires moneys from the GGRF be used to facilitate the achievement of reductions of GHG emissions in California. (HSC §39712)
   

This bill:

1. Creates the Golden State Patriot Passes Program administered by the state Department of Transportation (Caltrans) to provide free access to transit services for veterans, as specified.
2. Provides an annual appropriation of $3 million in GGRF moneys for fiscal years 2017-18 to 2020-21 for this program.
3. Requires Caltrans, in coordination with ARB, to develop guidelines for participating transit providers to demonstrate that proposed expenditures will reduce GHG emissions and increase veteran mobility.
4. Requires Caltrans, by January 1, 2018, to select three transit operator applicants to receive program funding. Specifically:
   1. Prohibits Caltrans from selecting an applicant that already provides veterans with free access to transit services in its service area.
   2. Requires Caltrans to select applicants that serve entirely different counties.
   3. Provides that Caltrans shall select one applicant that primarily serves an urban area, one that primarily serves a suburban area, and one that primarily serves a rural area (to be defined by Caltrans based on Census data). Sets maximum allocations of $2 million for an urban area applicant, $900,000 for a suburban area applicant, and $100,000 for a rural area applicant.
5. Limits applicants to public agencies including, but not limited to, transit operators within a city or county.
6. Requires a transit operator that is selected for the program to provide a local match for any state funding it receives.
7. Requires Caltrans to ensure that benefits are provided by the program to disadvantaged communities.
8. Requires participating transit operators to submit a report to Caltrans by February 1, 2021 and requires Caltrans to submit a report to the Legislature by August 1, 2021. The reports shall include, but not be limited to, cost, use of moneys, estimated reduction in GHG emissions, and ridership.
9. Provides that in order to participate in the program, a veteran must provide a veterans identification card issued by a veterans service organization, or a driver’s license or identification card identifying the holder as a veteran.
10. Sunsets the program on January 1, 2022.
    

Background

1. Sonoma County Veterans Subsidized Fare Program. Sonoma County launched a pilot program on January 1, 2015 to provide veterans free use of Sonoma County Transit. Specifically, a veteran showing a VA identification card or a Sonoma County Veterans identification card upon boarding a bus rides free, and Sonoma County Transit is reimbursed by the county. The county budgeted $45,000 (general fund) for this program for the year and came in under budget. The county board of supervisors unanimously voted in November to make the program permanent as of January 1, 2016.

From January through June 2015, nearly 14,000 veteran trips were provided through this program, with the majority of trips occurring on weekdays. During this period, veteran ridership increased by 34%. Approximately 19% of trips occurred on the route that serves the VA Outpatient Clinic. During this period, 845 Sonoma County Veterans identification cards were issued. County staff estimated that about half of these ID cards were issued specifically in relation to this program.

1. Cap-and-trade auction revenue.  Since November 2012, ARB has conducted 14 cap-and-trade auctions, generating over $4 billion in proceeds to the state. 

State law specifies that the auction revenues must be used to facilitate the achievement of GHG emissions reductions and outlines various categories of allowable expenditures.  Statute further requires the Department of Finance, in consultation with ARB and any other relevant state agency, to develop a three-year investment plan for the auction proceeds, which are deposited in the GGRF. ARB is required to develop guidance for administering agencies on reporting and quantifying methodologies for programs and projects funded through the GGRF to ensure the investments further the regulatory purposes of AB 32.

Disadvantaged communities. SB 535 (de León, Chapter 830, Statutes of 2012) requires the Department of Finance, in the investment plan, to allocate at least 25% of available moneys in the GGRF to projects that provide benefits to disadvantaged communities, and at least 10% to projects located within disadvantaged communities. 

To meet the SB 535 mandate, the Office of Environmental Health Hazard Assessment, under the California Environmental Protection Agency’s (CalEPA) guidance, developed a tool (termed CalEnviroScreen) to assess and rank census tracts across the state that are disproportionately affected by multiple types of pollution and areas with vulnerable populations. CalEPA has designated 25% of census tracts in California as disadvantaged communities for the purpose of investing cap-and-trade proceeds. 

Additionally, SB 862 (Committee on Budget and Fiscal Review, Chapter 36, Statutes of 2014) requires ARB to develop guidelines on maximizing benefits for disadvantaged communities by agencies administering GGRF funds.

Legal consideration of cap-and-trade auction revenues.  The 2012-13 Budget analysis of cap-and-trade auction revenue by the Legislative Analyst’s Office noted that, based on an opinion from the Office of Legislative Counsel, the auction revenues should be considered “mitigation” fee revenues, subject to the “Sinclair Nexus Test.” This test requires that a clear nexus must exist between an activity for which a mitigation fee is used and the adverse effects related to the activity on which that fee is levied. The LAO concluded, based on the opinion, that in order for their use to be valid as mitigation fees, revenues from the cap-and-trade auction must be used to mitigate GHG emissions or the harms caused by GHG emissions.

In 2012, the California Chamber of Commerce filed a lawsuit against the ARB claiming that cap-and-trade auction revenues constitute illegal tax revenue.  In November 2013, the superior court ruling declined to hold the auction a tax, concluding that it is more akin to a regulatory fee.  In February of 2014, the plaintiffs filed an appeal with the 3rd District Court of Appeal in Sacramento. That case is currently pending.

Budget allocations.  SB 862 (Committee on Budget and Fiscal Review, Chapter 36, Statutes of 2014) established a long-term cap-and-trade expenditure plan by continuously appropriating portions of the funds for designated programs or purposes.  The legislation appropriates 25% for the state’s high-speed rail project, 20% for affordable housing and sustainable communities grants, 10% to the Transit and Intercity Rail Capital Program, and 5% for low-carbon transit operations.  The remaining 40% is available for annual appropriation by the Legislature. 

The Governor’s 2016-17 proposed budget appropriates over $3 billion to a variety of programs and projects in the transportation, energy, natural resources, and waste diversion sectors.

Comments

1. Purpose of Bill. According to the author there is a significant need to not only provide better services for California’s roughly two million veterans, but also to make sure all our veterans, especially the most vulnerable, have access and transportation to these services. Only 19% of veterans in California utilize the benefits to which they are entitled. Approximately 26% of veterans report having a disability; of these, 32% indicate that their disability has interfered with obtaining or holding a job. Additionally, 18-30 year-old veterans living in poverty are 3.5 times more likely to become homeless as compared to non-veteran adults living in poverty. The author states that, with veterans being more vulnerable to unemployment and homelessness, it is paramount to provide them with affordable means to succeed.
2. Does This Bill Advance the Goals of AB 32? Any projects funded through GGRF moneys are required to facilitate the achievement of GHG emission reductions and advance the regulatory purposes of AB 32.

It is not clear that the appropriation in SB 951 advances the regulatory purposes of AB 32 and reduces GHG emissions. Only in cases where a veteran was switching from car travel to bus travel might there be a reduction of GHG emissions. However, it is unclear what that level of GHG emissions reductions might be, and whether that transit shift is taking place for veterans participating in the Sonoma County pilot program. In fact, it seems that the intent of the author with this bill is to provide services to veterans who currently do not have the means to transport themselves, or pay for public transportation. In these cases where veterans were already using public transit but having to pay, or walking or riding bicycles, there would not be GHG emissions reductions under this program.

Legal risk. As noted in the background, the issue of whether auction proceeds constitute an illegal tax is currently under appeal. The more tenuous the nexus between GGRF investments and GHG emissions reductions, the greater the legal risk that future court decisions may find those GGRF revenue allocations illegitimate, with possible consequences including invalidation of that particular appropriation or of the overall legislative allocation of GGRF.

1. Amendment needed. Although the program created in SB 951 has a laudable goal of helping veterans access transit, it is not clear that the program would result in GHG emissions reductions. An amendment is needed to strike the $3 million appropriation from the GGRF, as well as other provisions relating to funding from GGRF, from the bill. The author should work to find a more appropriate funding source as the bill moves forward.

Related/Prior Legislation

AB 2222 (Holden) provides a continuous appropriation of $50 million per year from the GGRF for the Transit Pass Program, to be administered by Caltrans. This program would support transit pass programs of public agencies that provide free or reduced-fare transit passes to public school students and community college, California State University, and University of California students. AB 2222 requires at least 50% of program funding to benefit disadvantaged communities. This bill is pending in the Assembly Transportation Committee.

SOURCE:

Author

SUPPORT:

American GI Forum of California

AMVETS – Department of California

California Association of County Veterans Service Officers

Gamaliel of California

Military Officers Association of America, California Council of Chapters

Military Order of the Purple Heart of the U.S.A., Inc., Department of California

Sonoma County Board of Supervisors

VFW – Department of California

Vietnam Veterans of America – California State Council

OPPOSITION:

CalTax

DOUBLE REFERRAL:

This measure was heard in the Senate Transportation and Housing Committee on March 29, 2016, and passed out of committee with a vote of 10-0.

-- END --

SENATE COMMITTEE ON TRANSPORTATION AND HOUSING

Senator Jim Beall, Chair

2015 - 2016 Regular

Bill No: SB 951 Hearing Date: 3/29/2016

SUBJECT: Transportation: Golden State Patriot Passes Program

DIGEST: This bill creates a pilot program to provide veterans with free access to transit services.

ANALYSIS:

AB 32 (Núñez and Pavley, Chapter 488, Statutes of 2006) requires the state Air Resources Board (ARB) to develop a plan to reduce emissions to 1990 levels by 2020. It also requires ARB to ensure that programs to reduce greenhouse gas (GHG) emissions are targeted, to the extent feasible, to the most disadvantaged communities (DACs) in the state. AB 32 authorizes ARB to deposit any fees paid by GHG emission sources into the Greenhouse Gas Reduction Fund (GGRF).

SB 535 (De León, Chapter 830, Statutes of 2012) requires 25% of GGRF funds to be allocated to projects that provide benefits to DACs, and at least 10% to projects located within DACs. DACs were identified by the California Environmental Protection Agency using census tract data based on geographic, socioeconomic, public health, and environmental hazard criteria.

The 2014-15 budget agreement provides that for 2015-16 and beyond, 25% of GGRF revenues shall be appropriated to the state’s high-speed rail project, 20% for affordable housing and sustainable communities grants, 10% to intercity capital rail projects, and 5% for low-carbon transit operations. The remaining 40% is available for annual appropriation by the Legislature.

This bill:

1. Creates a pilot program, the Golden State Patriot Passes Program, to be administered by the state Department of Transportation (Caltrans).
2. Provides an annual appropriation of $3 million in GGRF monies for fiscal years 2017-18 to 2020-21 for this program.
3. Requires Caltrans, in coordination with ARB, to develop guidelines for participating transit providers to demonstrate that proposed expenditures will reduce GHG emissions and increase veteran mobility.
4. Requires Caltrans, by January 1, 2018, to select three transit operator applicants to receive program funding. Specifically:
   1. Prohibits Caltrans from selecting an applicant that already provides veterans with free access to transit services in its service area.
   2. Requires Caltrans to select applicants that serve entirely different counties.
   3. Provides that Caltrans shall select one applicant that primarily serves an urban area, one that primarily serves a suburban area, and one that primarily serves a rural area (to be defined by Caltrans based on Census data). Sets maximum allocations of $2 million for an urban area applicant, $900,000 for a suburban area applicant, and $100,000 for a rural area applicant.
5. Limits applicants to public agencies, including, but not limited to, transit operators within a city or county.
6. Requires a transit operator that is selected for the program to provide a local match for any state funding it receives.
7. Requires Caltrans to ensure that benefits are provided by the program to DACs.
8. Requires participating transit operators to submit a report to Caltrans by February 1, 2021, and requires Caltrans to submit a report to the Legislature by August 1, 2021. The reports shall include, but not be limited to, cost, use of monies, estimated reduction in GHG emissions, and ridership.
9. Provides that in order to participate in the program, a veteran must provide a veterans identification card issued by a veterans service organization, or a driver’s license or identification card identifying the holder as a veteran.
10. Sunsets the program on January 1, 2022.

COMMENTS:

1. Purpose. The author states that there is a significant need to not only provide better services for California’s roughly 2 million veterans, but also to make sure all our veterans, especially the most vulnerable, have access and transportation to these services. Only 19% of veterans in California utilize the benefits to which they are entitled. Approximately 26% of veterans report having a disability; of these, 32% indicate that their disability has interfered with obtaining or holding a job. Additionally, 18- to 30-year-old veterans living in poverty are 3.5 times more likely to become homeless as compared to non-veteran adults living in poverty. With veterans being more vulnerable to unemployment and homelessness, it is paramount to provide them with affordable means to succeed.
2. Sonoma County Veterans Subsidized Fare Program. Sonoma County launched a pilot program on January 1, 2015 to provide veterans free use of Sonoma County Transit. Specifically, a veteran showing a U.S. Department of Veterans Affairs (VA) identification card or a Sonoma County Veterans identification card upon boarding a bus rides free, and Sonoma County Transit is reimbursed by the county. The county budgeted $45,000 (general fund) for this program for the year and came in under budget. The county board of supervisors unanimously voted in November to make the program permanent as of January 1, 2016.

From January through June 2015, nearly 14,000 veteran trips were provided through this program, with the majority of trips occurring on weekdays. During this period, veteran ridership increased by 34%. Approximately 19% of trips occurred on the route that serves the VA Outpatient Clinic. During this period, 845 Sonoma County Veterans identification cards were issued; county staff estimated that about half of these were issued specifically in relation to this program.

1. Is a bill necessary? As discussed above, Sonoma County is already operating a successful program to provide free transit passes to veterans, without any state authorization or funding. The author hopes to build on the success of this program by providing GGRF monies to help incentivize transit agencies across the state to implement similar programs.
2. Appropriate use of GGRF funds? Existing law (AB 1532, Pérez, Chapter 807, Statutes of 2012) specifies that GGRF revenues must be used to facilitate the achievement of GHG emissions reductions. The author indicates that by getting more veterans onto transit, this bill will help reduce GHG emissions while enabling veterans to connect to key services. However, emissions reductions would only occur if veterans are switching from car travel to bus travel in order to get to these services; the author contends that this bill is needed because many veterans currently cannot obtain transport to services. Because this bill requires Caltrans to develop guidelines for transit providers to demonstrate GHG reductions, and requires Caltrans to report to the Legislature, the Legislature will have the opportunity to evaluate the effectiveness of the program in reducing GHG emissions.
3. Double-referred. This bill was amended to its current form after it was referred to this committee by Rules Committee. Should this bill pass this committee, it will be referred to the Rules Committee for re-referral to the Environmental Quality Committee.

Related Legislation:

SB 1259 (Runner) — exempts veterans from payments of tolls or related fine on toll roads, high-occupancy toll lanes, toll bridges, toll highways, vehicular crossings, or any other toll facility. This bill will be heard in this committee on April 19, 2016.

AB 2222 (Holden) — provides a continuous appropriation of $50 million per year from the GGRF for the Transit Pass Program, to be administered by Caltrans. This program would support transit pass programs of public agencies that provide free or reduced-fare transit passes to public school students and community college, California State University, and University of California students. AB 2222 requires at least 50% of program funding to benefit disadvantaged communities. This bill is pending in the Assembly Transportation Committee.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

POSITIONS: (Communicated to the committee before noon on Wednesday,

March 23, 2016.)

SUPPORT:

American G.I. Forum of California

AMVETS – Department of California (co-sponsor)

California Association of County Veterans Service Officers

Military Officers Association of America, California Council of Chapters

Military Order of the Purple Heart of the U.S.A Inc., Department of California

Sonoma County Board of Supervisors

Sonoma County Transit

VFW — Department of California

Vietnam Veterans of America — California State Council (co-sponsor)

OPPOSITION:

None received

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