Senate Standing Committee on Transportation

The Senate Transportation Committee will come to order. Good morning and welcome to everybody. We have one measure on today's agenda. Few housekeeping items. We're gonna allow for two primary witnesses, each for support and opposition.

Each witness will have two minutes. An additional witnesses will ask to limit yourselves to name, affiliation, and your position on the bill. We will entertain, we'll entertain a motion on the bill when appropriate, when quorum is established. With that, Senator Hurtado, SB 661 file item 1, please come up and present your item. You can come up here to the podium. Good morning, Senator.

Good morning, Mister Chair and members. I'm here to present SB 661, the Airport Expansion and Regional Optimization Act or the ARO Act, the abbreviated version. I have to admit that this is a big day for us on this measure because it's been a two year effort. A bill that we did not think would make it to this point. So it's a big day in getting it just here.

It's gonna be a big deal for all of our airports, not just mine. Although, I got started with this bill because of the the airport in my district, the the Meadows Field Airport in Bakersfield. There was a huge need to to provide funding for infrastructure, but how do you do that in a way that doesn't hurt taxpayers? And that's that's where we came up with SB 661.

I do want to give credit to, Pro Tem Maguire, Emeritus because he kind of initiated that or started with this measure several years before I even got into the Senate is what I hear.

And struggled to get it done back then. Again, this is why I say that it's a big deal to have this bill here in front of you today. Very proud of the work that the coalition has done and all the support that we've received from across my Senate district, but across many of the districts in that you all represent.

And with me, I have Jim Lights who represents who's part who is the executive director of the California Airport Council and has been instrumental moving the bill forward.

Good morning, Mister chairman and members. Jim Lights on behalf of the California Airports Council and the Association of California Airports. Commercial airports in the state currently have about 1,500,000,000 worth of, FAA grant awards. Almost a billion dollars of that has yet to be drawn down. This bill will help ensure those funds are not jeopardized and finally move us towards compliance on this long standing rule.

Thank you very much.

Next witness. Thank you for being here.

Good morning, Mister vice chairman. Good morning, members of the committee. Alberto Turico on behalf of the Airlines for America. I wanna thank the author for her her author the author and her staff for her great diligence on this bill. I also wanna thank my colleague, Mister Leitz, in airports for reaching this, this very important agreement.

As has been alluded to this morning, California has been out of compliance with the allocation of the jet fuel taxes that are collected since the eighties. The last communication from FAA is that we continue to be out of compliance. So this is a a great first step in in coming into compliance. As Mister Leitz mentioned, it's important for us to to be compliant to draw down those federal funds.

The second thing I would like to say is that separate and apart from the funds, the federal funds, the federal grants, there is a tremendous need for continued investment in

If I can interrupt just for a second just because the minute we get quorum, I wanna Absolutely. Thank you.

Saris Cortesi. Strickland?

Here.

Strickland here. Archuleta?

Here.

Archuleta here. Adegin? Here.

Adegin here. Blake Spear?

Aye.

Blake Spear here. Dally? Hi. Dally here. Gonzalez?

Grayson? Here. Mungivar? Here. Richardson here.

Sigardo Valadares? Here. Valadares here.

Quorum is established. I'm sorry about that but please continue.

Very important to establish a quorum. Thank you. As I was saying, separate and apart from the federal grant, federal grants which are sizable, there is also potential and need for the investment of the jet fuel taxes to be invested in the airports and infrastructure. Particularly as we approach the Olympics this summer, there are, you know, hundreds of millions of dollars in grants that play for LAX as well as collecting these TIP fuel tax and distribute them.

And finally, I will say that not only does does the proper allotment of the of the TIP fuel tax assist LAX and all the major airports, but it also significant ports also go to smaller airports including the airport in the senator's district.

With that, we respectfully ask on that vote. Thank you.

Thank you. Other witnesses in support for identification purposes?

Yeah. Julie Malinowski on behalf of Southwest Airlines in strong support. Thank you.

Thank you. Mister Chairman, members, Mike Belota on behalf of Delta Airlines in support. Thank you.

Aaron Brianna with Cruise Strategies in support on behalf of the San Diego Airport.

Thank you.

Good morning. Dylan Elliot on behalf of the Kern County Board of Supervisors in support. Thank you.

Good morning. Kathy Van Austin on behalf of United Airlines in support.

Thank you.

Lauren Weshie on behalf of the Association of California Airports, our state's 243 general aviation airports in support.

Thank you.

Good morning. Trent Smith on behalf

of the San Francisco International Airport in support.

Thank you. Any witnesses in opposition? Come back to the committee. Senator Richardson.

I intend upon supporting, the bill. I just heard I think it was Trent from the international airports. Could the author just explain what are the impacts to the larger airports in terms of funding? For example, I represent LAX. So is this going to be a reduction in funding in any way or if you could just go over

that? I would like to have, Jim Light to answer that question.

Yeah. So there's a formula in the bill that says 75% of all funding that would be derived from the bill goes back to the airport where that revenue was generated. So as the largest airport in the state, LAX will get the largest share of that 75%. And then that will go down the line with SFO San Diego by basically based on size.

So the remaining 25% is like a cost to sharing to help the smaller aviation airport?

Most of that. Yes.

Okay. Thank you.

Anything else from them? Can I hear a motion? Bill's been moved by Senator Valadares. Oh, would you like to close?

Yes. Thank you, Mister Chair. Senate bill 661 is ready for takeoff and ready to land on the governor's desk. I respectfully ask for an aye vote. That's a

good You're waiting for that close. Alright. Secretary, please call the roll.

The motion is that the Assembly amendments be concurred in. Senators Cortezi, Strickland.

Aye. Strickland,

aye. Archuleta. Aye. Archuleta, aye. Arreguin.

Aye.

Arreguin, aye. Blake Spear?

Aye.

Blake Spear, aye. Dally? Aye. Dally, Aye. Gonzales?

Aye. Gonzales, Aye. Grayson? Aye. Menjivar, Aye.

Richardson? Aye. Richardson, Aye. Sciorto? Valadares?

Aye.

Valadares, Aye. Weiner?

That bill's at nine zero. We'll remain on call for the other members to add on.

Thank you.

The committee will call a recess until, other members show up.

You are otherwise ready, right? Okay. Thank you. So we are calling the Central Transportation Committee meeting back to order. We're going to open the roll and And I'll ask the assistant to call

the roll call this time. File item one SB 661 by Senator Hurtado. The motion is that the Assembly amendments be concurred in. The current vote is nine zero.

Senator

Cortezi? Aye. Cortezi, aye. Grayson?

Aye. Seartto, aye. Weiner?

Alright. We're at eleven to zero. We're gonna leave it open. A few more minutes. We're expecting Senator Wiener.

Thank you. Thank

you. Yeah. Education finance.

We're calling the center transportation back to order. And we're gonna open up the roll and ask the assistant to call the remaining roll call.

File item one, SB 661 by Senator Hurtado. The motion is that the semi amendments be concurred in. The current vote is 11 to zero. Senators Grayson?

Aye.

Grayson, aye. Weiner? Aye. Weiner, aye.

Alright. Thirteen zero, the bill's out. Thank you, everyone. We are now adjourned.