,+:1 Report No:

Meeting Date

17-239

September 27, 2017

Alameda-Contra Costa Transit District

STAFF REPO RTTO:

FROM:

SUBJECT

AC Transit Board of Directors

Michael A. Hursh, General Manager

Monthly Legislative Report

BRIEFING ITEM

RECOMMENDED ACTION(S)

Consider receiving the Monthly Legislative Report

BACKGROUND/RATIONALE

Federal Legislation Update

Overview

Congress adjourned for summer recess on Friday, August 11th, after failing to secure the votesneeded to repeal the Affordable CareAct. Congress reconvened on Tuesday, September 5facing several critical items, including passing a bill to avert a U.S. debt default, renewinggovernment funding to avoid a partialshutdown, and agreeing on emergency aid for victims ofHurricane Harvey. On Wednesday, September 6, President Donald Trump agreed to aDemocratic proposalto fund the government at current levels for three months, through mid-December, via a continuing resolution. The package also raises the debt ceiling for the sameamount of time and includes relief funding to help the devastated Gulf Coast. Subsequently,the White House and Congressional Republicans hope to pass tax reform legislation. Assumingprogress on these fronts, the hope is that the Administration and Congress willthen turn theirattention to infrastructure.

Infrastructure PlanThe President has stated his commitment to identify $200 billion in direct federal funding aspart of a $1trillion infrastructure plan, and in mid-July announced the creation of a PresidentialAdvisory Council on Infrastructure. However, following the collapse of the ManufacturingCouncil and the Strategy & Policy Forum in the wake of the President's remarks on violence inCharlottesville, VA, the White House abandoned its plans to create an Advisory Council onI nfrastructu re .

On August 15, the President issued an Executive Order (EO) that aims to cut the federalenvironmental permitting process for infrastructure projects down to as little as two years andimplement the Fixing America's Surface Transportation Act requirement that there be a singlelead agency for environmental review on major projects. Specifically, it sets timelines onagency decision-making and implements new accountability measures to encouragecompliance. The goals of the EO are generally aligned with American Public TransportationAssociation's (APTA) regulatory reform policy "to speed project delivery and reduce costs ofprojects" and to "implement statutory project delivery reforms."

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Report No. 17-239Page 2 of 4

Bus & Bus Facilities Grant Program

The Grants Department, in coordination with the Department of Legislative Aff airs &Community Relations, secured a letter from Oakland Mayor Libby Schaaf in support of ACTransit's FY2017 Bus & Bus Facilities Grant Program app]ication. The$].8.7 million proposal willhelp complete the much-needed work to rehabilitate Division 4 and ensure it remains in a stateof good repair. Approximately$226.5 million in FiscaIYear(FY) 2017 funds are available via thefederaITransit Agency's(FTA) Bus & Bus Facilities Infrastructure Investment Program.

FTA Ad ministratorThe FTA announced the appointment of Jane Williams as Deputy Administrator. Previously, Ms.Williams was the Director of the Washington Area Transit Office in the Maryland Department ofTransportation. The White House has yet to nominate a permanent FTA Administrator.

State Legislation Update

Overview

Legislators returned to the State Capitol on August 21" following summer recess. They nowface a September 15th deadline to act on bills introduced in the first half of the 2017-18 regularsession.

Cap-and-Trade Auction UpdateThe California Air Resources Board reports that businesses purchased every carbon-emissionpermit that the agency put up for sale during its August auction. In one of the most successful

carbon permit auctions held to date, California businesses spent another $935 million ongreenhouse gas pollution permits. The state auctions occur every three months, andcompanies have spent approximate]y $6 bi]]ion on permits since the program began in 20].2

In July, Governor Brown signed legislation that extends the Cap-and-Trade Program through2030. The measure has been described as the most affordable method to reach the state'sambitious goa[of reducing greenhouse gas emissions to 40 percent be]ow].990 ]eve]s by 2030.The adoption of a cap-and-trade expenditure plan is now one of the most prominent issues forthe transit industry. At recent Senate and Assembly budget subcommittee hearings, transitadvocates called for a doubling of the percentage of cap-and-trade auction proceeds directedto the Transit & Intercity Rail Capital Program and Low Carbon Transit Operations Programannually.

Senate Bil1614 (Hertzberg) Signed into LawOn Friday, September 1st, Governor Brown signed Senate Bill(SB) 614 into law. SB 614 was co-sponsored by the California Transit Association and the Western Center on Law & Poverty,introduced by Senator Bob Hertzberg, and actively supported by AC Transit. The law requiresany fines collected from citations for specific transit violations to be deposited with the localtransportation agency that issued the citations. Current law requires these funds to bedeposited into the general fund of the county where the citation was issued. This bill alsoreduces the fine levels for administrative violations and authorizes the use of communityservice for administrative violations for certain offenders.

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Report No. 17-239Page 3 of 4

Senate Bill I (Beall)On September 14, Reform California, a coalition of California Republicans, collected enoughsignatures to file a statewide referendum to repeal SB I (Beall). This bill was approved by theLegislature and signed by Governor Brown earlier this year. It is expected to provide criticalinvestment in transit operations and capital projects that will directly benefit AC Transit'sefforts to modernize its service and invest in capital facility needs. Voters will see thisproposition on their November 2018 ballot.

Regional Measure 3/SB 595

The Legislature ran into several deadlines as the end of session neared. All bills moved out oftheir respective committees by September land session took place between September 5 andSeptember 15, which was also the last day for a bill to be approved and sent to GovernorBrown. SB 595, a billwhich allows the Metropolitan Transportation Commission(MTC) to placea ballot measure authorizing an increase in rates for state-owned toll bridges in the San

francisco Bay Area, was approved by the Assembly by a vote of 43 -- 31, on September13. Subsequent]y, the Senate approved SB 595 on a party cine vote of 27 - ].3, on September14. Governor Brown now has until October 15 to sign or veto bills sent to him by theLegislature

An AC Transit working group that includes President Ortiz, Director Peeples, General ManagerHursh, and staff from the Legislative Affairs & Community Relations, Management & Budget,and Planning Departments have met with several legislators and their staff over the summerrecess to discuss concerns over the expenditure plan contained in SB 595. Meetings have takenplace with Assembly Member Tony Thurmond, Assembly Member Kansen Chu, Senator ScottWiener, Assembly Member BilIQuirk, Senator Jim Beale, Assembly Member PhlITing, AssemblyMember David Chiu, Rocky fernandez from the Office of Senator Bob Wieckowski, EvanMclaughlin from the Office of Assembly Member Lorena Gonzalez-Fletcher, Evan Corder fromthe Office of Assembly Member Rob Bonta, Steven Stenzler from the Office of AssemblyMember Tim Grayson, and Hugh Bower from the Office of Assembly Member Kevin Mullin.

BUDG ETARY/FISCAL IMPACT

There is no budgetary or fiscalimpact associated with this report

ADVANTAGES/DISADVANTAGES

This report is provided to inform the Board of monthly legislative activities

ALTERNATIVES ANALYSIS

There were no alternatives considered as this report provides an update of monthly legislativeactivities.

PBIQRBH:AVANT BOARQACTION/POI.ICIES

Staff Report ].7-002: 2017 Federal and State Legislative Advocacy Programs

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Report No. 17-239Page 4 of 4

A'nACHMENTS

1: Federal Update from Van Scoyoc Associates2: State Legislative Report3: State Legislative BilIMatrix4: FY 2017 Federal Advocacy Program5: FY 2017 State Advocacy Program

Approved by:

Reviewed by:

Prepared by:

Beverly Greene, Director of Legislative Aff airs & Community Relations

Beverly Greene, Director of Legislative Affairs & Community Relations

Steven Jones, External Aff airs RepresentativeEstee Sepulveda, External Affairs Representative

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SR 17-239 Attachment I

{

iB.VA X'HSC OYO CA STS'lO 'C 'l A T E S

Transportation !updateSeptember 5, 2017

Stevelt O. Patltter. Vice PresidetttCltmuton Hantta, I)irectorDavid Haittes, Director

This Week

HouseTBD

SenateTBD

Last Month

White House

Excel/five Order; //z#asfrzzcrure. On August 15, President Trump signed an executive order (EO) titled"Establishing Discipline and Accountability in the Environmental Review and Permitting Process forInfrastructure Projects". The EO aims to shrink the environmental permitting process to as little as twoyears, down from an average of seven years for "complex" highway projects, and ensure that just onefederal agency serves as the point of contact for each project's paperwork. Additionally, the Council ofEnvironmental Quality (CEQ) within the White House will develop and implement an action plan toimprove environmental reviews and will mediate disagreements between agencies. The Council woulddevelop criteria for "One Federal Decision" which would be applied by a single agency, other federalagencies would then have 90 days from the lead decision to approve or deny related permits.

Department of Transportation

FRA and FMCSA: Evaluation ofSafet) Sensitive Personltelfor Moderate-to-Severe Obstructive Steep'4p/zea. On August 8, FRA and FMCSA announced the withdrawal of the March 10, 2016 advance noticeof proposed rulemaking concerning the concerning the prevalence of moderate-to-severe obstructive sleepapnea (OSA) among individuals occupying safety sensitive positions in highway and rail transportation,and its potential consequences for the safety of highway and rail transportation. The Agencies havedetermined not to issue a notice of proposed rulemaking at this time.

.l;.,'i.A: .4/P Gra/zfs. Throughout the month, FAA has made the following airport improvement grantannouncements:

B August 7 - $167.6 million to 64 airports in 30 states.B August 14 - $162.4 million to 72 airports in 31 states.B August 21 - $282.6 million to 67 airports in 29 states.

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FRA: Safet)Advisol], Addressing Electrode-litduced Rail Pitting frottt Plessui'e Electric \Welding. O\xAugust 1 6, FRA provided a notice of the agency's intent to issue a Safety Advisor alerting railroads,contractors, and the rail welding industry of the potential for electrode-induced railpitting and fatiguecracking during the pressure electric rail welding process. Based on investigation and research, FRAbelieves improper electrode contact to the rail during the welding process can result in electrode-inducedpitting that may ]ead to fatigue fracture and u]timate]y rail failure. The draft Safety Advisory includesrecommendations to help the industry prevent electrode-induced rail pitting and to inspect for and thenremediate such pitting if it occurs. FRA invites public comment on all aspects of the draft SafetyAdvisory. Comments on the draft safety advisory are due by October 16, 2017.

/;l.'lA: .4vfa/foil Ru/ez?zakf/zg Advisory Co//z/?zl#ee it/serf/zg. On August 18, FAA announced a publicmeeting of the ARAC which wi]] be held on September 14, 2017 at lpm at FAA headquarters inWashington, DC.

FTA : Pilot Progrant jor Noitpro$t Cooperative Procuretttents. On August 22, FTA. announces \heestablishment of the Pilot Program for Nonprofit Cooperative Procurements (Pilot Program) and solicitsexpressions of interest from eligible nonprofit entities to participate. The Pilot Program is aimed atincreasing innovation, promoting efficiency, and demonstrating the effectiveness of cooperativeprocurement contracts for rolling stock and related equipment administered by eligible nonprofit entities.Expressions of interest to become one of the selected nonprofit entities in the Pilot Program for NonprofitCooperative Procurements must be received by October 23, 2017.

F7:4 : [/pdaredAtt,ard It/a/zane//ze/zr Reqzl]re/?ze/zfs C]rcz{/ar. On August 22, FTA updated its AwardManagement Requirements Circular (FTA Circular 5010.IE) to provide a better understanding and clarityregarding FTA's pre-award authority; extensions to the award end date and period performance;requirements for award budget revisions and amendments; requirements for indirect costs; programincome information; and to correct legal citations, broken weblinks, and typographical errors. Theupdated circular replaces the March 2017 version of FTA Circular 5010.IE. The revised circular iseffective July 21, 2017. Additionally, FI'A will be holding a webinar on the new circular on Thursday,September 14, 2017 from 2:00pm 4:00pm EDT.

F7X: /VoF'o Passe/zger F'er/y Gra/zr Progra/?z. On August 23, FTA announced the opportunity to applyfor $30 million in FY 2017 Section 5307 Urbanized Area Formula Program funds (Catalog of FederalDomestic Assistance #20.507) authorized for competitively selected passenger ferry projects. As requiredby Federal transit law and subject to funding availability, funds will be awarded competitively todesignated recipients or eligible direct recipients of Section 5307 funds to assist in the financing of capitalprojects to support existing passenger ferry service, establish new ferry service, and to repair andmodernize ferry boats, terminals, and related facilities and equipment. Applications are due by October23, 2017

###

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SR 17-239 Attachment 2

August 24, 2017

TO Director Elsa Ortiz, President, and

Members of the Board

MichaeIHursh, GeneraIManager

Beverly Greene, Director of Legislative Aff airs & Community Relations

Steve WallauchPlatinum Advisors

FR

RE: Legislative Update

End of Sass/on; The legislature returns next week for the final month of session. While it hasbeen a busy year with the passage of SB land the reauthorization of the cap & trade program,there are stilla few major items to address. These include adopting an expenditure plan fortheauction revenue generated in the current fiscalyear, passage of a legislative package to address

affordable housing, a park & water bond, and for the Bay Area enacting SB 595 which wouldallowfor a tollincrease to be placed on the ballot next year. In past years resolution of many ofthese items would not occur untilthe finalnights of session, but now allbills must be in printfor at least 72 before either floor can vote on them. The last day of session is September 15th,making September 12th the last day for bills to be in print and posted on the website

Do//ars; A quick note on the state's finances. The Department of Finance released its monthlyfinance Bulletin coveringJuly receipts - so far so good. July revenue was$190 million aboveprojections. This includes income tax revenue exceeding estimates by$34 million and sales taxrevenue climbing above projections by $136 million.

Cap & Trade; With the lawsuits resolved and the auction program re-enacted with a 2/3 vote,the high expectations were met at the August 15thauction. While the auction in February wasdismalwith only $8 million generated, the June auction rebounded with revenue deposited intothe Greenhouse Gas Reduction Fund reaching $511million. With no more turbulence facingthe program, the August 15th auction resulted in$1billion in sales, which provides nearly $640million forthe Greenhouse Gas Reduction Fund(GGRF). The LAO predicts auction revenue forthe 20].7-18 fiscalyear willreach $2.5 billion, and could potentially reach$3 billion.

As you may recall, Governor Brown opposed appropriating auction revenue for the currentfiscal year unless the auction program is reauthorized with a 2/3 vote. With the reauthorizationdone, the legislature willfocus on crafting an expenditure plan during the finalmonth ofsession. As always, there is a broad range of demands for these funds.

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The Governor's budget proposalestimated that $2.2 billion is auction revenue willbe availablefor expenditure in 2017-18. Of this amount$900 million is automatically appropriated to HighSpeed Rail, Low Carbon Transit Operations(LCTOP), Transit & Intercity RailCapital(TIRCP), andthe Affordable Housing and Sustainable Communities programs. The remaining$1.2 billionconsists of$500 million in reserves and about$750 million in 2017-18 auction proceeds. Thefight is now over reaching an agreement on how to spend the $1.2 billion.

Both the Senate Budget Subcommittee #2 and Assembly Budget Subcommittee #3 heldhearings this week to review spending priorities. Assembly Sub #3 met on Wednesday andSenate Sub #2 met today. The line of advocacy groups was long at both hearings as they pitchtheir priorities. While there was a strong showing of support for more transit funding, therewas a large push for more funding dairy digesters and other food scraps to alt-fueltechnologies. In the past, CARB has received a significant share of these funds, which are usedfor vehicle rebate programs and grant that further the development of heavy duty zeroemission vehicles.

Although Senator Beale's hands have been fullthis year with SB land SB 595, he is leading aneffort to direct more auction revenue toward public transit. He has circulated a letter that hasbeen signed, so far, by 28 Senators and Assembly members. East Bay legislators signing thisletter include Senator Steve Glazer, and Assembly members Rob Bonta, Kansen Chu, and Jimfrazier. Senator Beallis proposing to double the amount of auction revenue allocated toLCTOP, Increasing from 5% to 10%, and the TIRCP, increasing from 10% to 20%. Since theexpenditure plan under consideration is focusing on a one year appropriation, increasing thesecontinuously appropriated items will be a long shot. Not to mention, this proposal wouldreduce the percentage share of auction revenue the legislature has control over from 40% to25% if the amount allocated to LCTOP and TIRCP are doubled. However, given the significantlegislative support a one-time appropriation to these programs is possible

Nous/ng; in strikingthe dealto reauthorize cap & trade promises were made on passing anaffordable housing package. The package willinclude funding proposals and policy reformsaimed at accelerating the construction of affordable housing.

SB 3(Beall) would place a $3 billion bond on the ballot for various affordable housing programs.Negotiations continue on the size of the bond, with some proposing to increase it to $9 billion.Current negotiations appear headed toward placing a $7 billion affordable housing bond on theballot. Interfering with the housing bond discussions is an effortto also place a parks and waterbond on the ballot. The Governor originally signaled he is comfortable with placing a totalof$7billion in new debt on the ballot, but that amount has now increased to a totalof$9 billion indebt. The bigger the park & water bond the smaller the housing bond and vice versa.However, Speaker Rendon recently commented that housing is a much higher priority this year.In the end, SB 3 willrequire a 2/3 vote for passage, and appears the support is there for a bondpackage exceeding $3 billion.

2

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The other funding piece is SB 2(Atkins). This billwould impose a fee on filing certain realestatedocuments with the proceeds funding various state and localhousing programs. SB 2 wouldimpose a$75 fee on certain documents, but the totalfee per filing could not exceed $225 pertransaction. This would raise over $200 million annually. Enacting SB 2 as part of the housingpackage willbe difficult. While it was approved bythe Senate 27-12 on a party line vote, itappears that SB 2 far short of the 54 votes needed to get out of the Assembly. However, wehave seen that hurdle cleared by SB land cap & trade, so it would not be surprising ifSB 2ultimately gets the votes.

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Senate Bill 595 (Beall) RM 3 EXPENDITURE PLAN (a// amounts S mi//ionsJComparison ofJuly 1g to September 8 Versions

N WP{Q/ q! !flown in Blur

OPERATING PROGRAM

1- Corridor Annual Operating Program 7/19 Version 9/8 Version Change

All CorridorsD.ransbay Terminal.ferries (in 9/8 version funding ramps up to $35 m over five years)

Regiona! Express Bus

}

CAPITAL PROJ ACTS

Regional Programs 7/19 Version 9/8 Ve rs lon :e

BART Expansion Cars (all BART-reliant counties)

Bay Area Corridor Express LanesGoods Movement and MitigationSan Francisco Bay Trail / Safe Routes to Transit

Ferries Enhancement ProgramBART to San Jose Phase 2Sonoma-Marin Area Rail Transit District tSMAnT)Capitol CorridorNext Generation Clipper Transit Fare Payment System

soo

300

12S

ISO

32S

400

40

90

soo

300

160

150

300375

409050

(2S)

(25)

ReglonalPrograms Subtotal $ i,930 1 $ 1,96S

Corridor-Specific Capital Projects 7/19 Version 9/8 Version Change

Central {SFOBB)

Caltrain Downtown ExtensionMuni Fleet Expansion and Facilities

Core Capacity Transit ImprovementsAC Transit - Rapid Bus Improvementslrp.e$pV.BIQ..gl911bg.1-80 Transit Improvements

350

140

140

50

50

325

140

(2S)

so

2S

50Cen trac Subtotal i2S

j$!uth (San Mateo.Hayward, dumbarton)ctrl-Valley TranslR.Access ImprovementsEastridge to BART Regional ConnectorSan Jose Dlridon StationDumbarton Corridor ImprovementsHighway IOI/State Route 92 Interchange1-680/SR 84 Interchange Reconstruction ProjectE-680/1-880/Route 262 Freeway Connector

100

130

120

130

so

100

130

100

130

so

(20)

South Subtota/ i 3

North (Richmond-San Rafael, Benlcia-Martinez, Carquinez.Contra Costa 680/State Route 4 Interchange ImprovementsMarin-Sonoma Narrows

Solano County 1--80/1-680/SR 12 Interchange ProjectInterstate 80/Westbound Truck Scales

State Route 37 ImprovementsSan Rafael Transit CenterRichmond-San Rafael Bridge Access Improvements

North 8ay Transit Access Improvements

SR 29 (South Napa County)

East Contra Costa County Transit IntermodalStation

Byron Highway Vasco Road Airport Connector

Vasco Road Safety Improvements

1-680 Transit Improvements

Antioch)ISO

12S

175

125

ISO

30

135

100

20

210

120

ISO

105

100

30

210

100

20

60

(s)

(25)

(20)

(50)

7S

North Subtota!

2.270

10 10

8S

215

250

Corridor-Specific Capital Projects Subtotal

Capital Projects Total 4.200 4,4S0

4

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SR 17-239 Attachment 3

August 24, 2017

Table 1: Board Action Positions

Bills I Subject Status Client - PositionBI

(Frq4jH D)jl'ransportation

jfunding.

IAB I is Assemblyman Frazier's renewed effort tojaddress the funding shortfallfacing ourjtransportatlon infrastructure. This bill wouldIgenerate about$6.6 billion in revenue for themaintenance and rehabilitation of state highwaysland localstreets and roads, as wellas provideargeted investments in public transit and good

movement corridors.

laB..3eg this bill makes numerous changes to the Cap-and-(Eduardo Garcia D) ITrade Program. It requires the State Air Resources

ICalifornia Global IBoard(ARB) to update the scoping plan, andWarming Solutions jrequires allgreenhouse gas rules and regulationstact of 2006: jadopted by ARB to be consistent with the scopingmarket-based jplan. It extends ARB's authority to establish andcompliance lutilize, through regulations, a market-basedmechanisms: fire jmechanism. This bill specifically authorizes a systemprevention fees: jof market-based declining annual aggregatesales and use tax jemissions limits for sources or categories of sourcesmanufacturing jthat emit greenhouse gases(cap-and-trade) untiljexemption. IDecember 31, 2030. It extends, and expands upon,

he 3.94 percent state sales and use tax (SUT)exemption available to qualified manufacturers andjspecified research and development firms for an

jadditionaleight years, untiIJuly 1, 2030.

ASSEMBLY TRANS SUPPORT

ISigned Into Law jsupport in Concept

&.44$ this bill builds upon le YEAR BILL(Daly D) jrequires local governments to provide non-residentLocalgovernments:jproperty owners notice that a new parceltax wasparcel taxes: noticejapproved. AB 448 takes this notification process a

jstep further by requiring that these notices be madejwithin 30 days of the certification approving the ne 'parcel tax.

IOPPOSE

In addition, for parceltaxes imposed by a school orspecialdistrict, the notice shallbe prepared and sentby the city or county where the schooldistrict orjspecialdistrict is located. The billalso clarifies thathe specialdistrict or schooldistrict shallreimburse

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2

 AB 617

ICristina Garcia DINonvehicular airpollution: criteriaair pollutants andoxic a it

contaminants.

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Controller an operator's reportable revenue cannotexceed its expenses for purposes of the STA

calculation. Given the extent of the changesproposed in AB].113, attached is the CTA's summarylgf the proposal.H'his measure would create the California ElectricIVehicle Initiative(CEVI) to be administered by CARBin coordination with the California EnergyICommission(CEC) and the California Public Utilities

Commission(CPUC). The billwould continuouslyappropriate $500 annually from cap & trade auctionproceeds to CARB for the purpose funding this newprogram.

AB 1184(!!U D)ehicular air

pollution: electricjvehicles: incentives

ISENATE APPR ISUPPOKT IF

IAMENDED

he CEVI would expand upon the existing CleanIVehicle Rebate Program with the intent of

expanding the use of battery electric vehicles byincreasing vehicle rebate amounts and charginginfrastructure investments. The goal is to create aself-sustaining electric vehicle market and aid inachieving the goalof 1.5 million electric vehicles on

jthe road by 2025.

Hhe billdefines "electric vehicle" to be a vehicle thatuses a plug-in battery to provide all motive power tohe vehicle. In addition, the rebates and other

incentives proposed in the bill include light dutyjvehicles as wellas heavy-duty vehicles such asschools buses, transit buses, and off roadequipment.

he definitions in the billexclude any hydrogenelectric drive vehicles. The proponent's position onexcluding hydrogen vehicles is that they are not athe same levelof market readiness, and since the

rebates in program decline to zero as EV sales reach

he 1.5 million vehicle goalit is premature to includehyd rogen vehicles.

IGiven AC Transit's involvement in the developmentjof hydrogen electric buses, and knowledge of thecommercialreadiness of this technology, AC TransitBoard may want to consider a Support if Amendedposition on this billto include hydrogen vehiclesjsince this program could provide significant financialassistance in purchasing these vehicles.

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4

AB 1509IB !s RISan Francisco BayArea Rapid TransitDistrict.

SB I

(Begs D)ra nsportatio nunding

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SB 562

(LgB D)fhe HealthyCalifornia Act

IAssembly Speaker Anthony Rendon announced onPune 23rd, that due to its financialshortcomings, thejmeasure wilmot be taken up in the Assembly.IHowever, the Speaker has since announced that aseries ofinterim hearings willbe held this fallinorder to "get to yes" on universalhealthcare.

IASSEMBLY 2 YEARBILL

ISUPPOKT

ISB 562 would create the Healthy California Act,jwhich would establish a state based universalsinglepayer health care system. SB 562 would create asingle payer system, but the billcurrently does notidentify how this system would be financed.

While the Affordable Care Act has resulted in

increasing the number ofindividuals having healthinsurance, Senator Lara is pursuing this billbecausehealth care costs remain high and out of reach formany. In addition, there remains uncertaintyl$garding the future of the ACA.ISB 595 would place on the ballot in each of the nineBay Area counties a regionalmeasure to increasebridge tolls by up to $3.

B 595

(Bee!! D)Metropolitanra nsportation

Commission: tollbridge revenues.

ASSEM BLY APPR SUPPORT

ISB 595 was amended to allocate $4.2 billion in toll

jrevenue for specified projects and programs.Unfortunately, the expenditure plan falls far short ofan equitable distribution of funds to projects in theliqst Bay.ISB 614 allows fine revenue collected by imposing IGovernor's Deskjadministrative penalties to be deposited with thepublic transit agency that issued the citation.ICurrent law requires these funds to be depositedjinto the generalfund of the county where thejcitation was issued.

ISB 614

(Hertzberg D)Public

jtransportationagencies:

SUPPORT

CA 2

(NeWpqD D)Motor vehicle feesand taxes:restriction onexpenditures.

ISCA 2 and ACA 5 are identical and would ISEix ATE

jprospectively prohibit the use of truck weight fees tolpay for transportation bonds approved after Januaryjl, 2017. The bill would also expand the protectionsjfor Public Transportation Account revenues to alsojinclude the 1.75% increase to the diesel fuel salesax that was enacted as part of the gas tax swap.he ban on borrowing fees and taxes would also

apply to any vehicle fees or taxes dedicated toransportation accounts.

INACTIVE ISUPPORT

5

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CA 6

(WiQnQr DLoca I

transportationmeasures

ICA 6 would allow a localgovernment to impose an ';pecialtax with a 55% approvalof the voters if the;pecialtax dedicatesl-00% of the revenues, notincluding collection and administrative expenses, to:ransportation programs and projects

.ENATE APPR

IHeld on SuspenseUPPORT

Table 2 Board Watch Positions

6

Bills

AB 17

IHolden D)ransit Pass

Program: free orreduced-fare transitpasses.

AB 28(Frq;jQr D)environmentalreview process:federal pilotp rogram.

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7

AB 1640

lgalfle..Ed!!ardg D)Transportationfunding: low-incomecom m unities.

SB 448

(Wieckowski DILocal government:o rga nization :districts .

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SR 17-239 Attachment 4

2017 Federal Advocacy Program

Funding. FY 201 7 Grant Opportunities - Secure federal funds for key capital projects and support

funding for 201 7 Project Priorities for:o Rehabilitation, expansion, and replacement of aging bus, bus facilities, and

equipment and maintain in a state of good repairo Within the Small Starts Program and other programso Bus lifting equipment programo Security cameras and wireless access technologies for buses and facilitieso Zero Emission Bus Programs

e Advocate for supplemental funding through the Federal Transit Administration (FTA) tooffset rising operating costs without jeopardizing total funding available for capitalprojectsr

. Support funding for the Transbay Terminal

8 Support/seek additional funding for essential services including, but not limited toservices for access to work, school or medical facilities.

e Support eff ons to rescind the planned across-the-board cuts to all federal programs,called "Sequestration," as enacted under the Budget Control Act of 201 1 .

8 Support federal funds to purchase and refurbish zero emission buses and relatedinf rastructu re .

8 Support policy initiatives that relieve the undue burden of mandatory regulations byrequiring all mandates be sufficiently funded to protect the fiscal integrity of the Districtincluding Safety Management Systems (SMS) and State of Good Repair andassessment management plans.

Transportation Authorization Principles. Advocate for the inclusion of transit buses by Congress and the incoming

Administration in any initiative to enhance funding or financing opportunities fortransportation inf rastructure.

© Ensure that private sector financing proposals do not replace current funding for transitf rom the Highway Trust Fund.

© Preserve continued guaranteed funding for transit from the Highway Trust Fund/MassTransit Account, and oppose any eff ons to break to 80/20 split for highways and transit

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18 of 23

support eilorts to increase tne qas tax or other revenues to repleterm growth of the Highway Trust Fund/Mass Transit Account.

Support FTA and Congressional eff ons to make State of Good Repair for transit bussystems a strategic priority and include more funding.

Support increased funding for Small Starts programs and broad funding eligibility infederal transit programs.

Seek revisions to the Metropolitan Planning Organization (MPO) grandf ather clausethat supports the direct representation of transit properties on MPOs.

Support legislation through the federal highway and transportation authorization forsafety requirements based on agency size and transportation mode.

Support eff ons to require local labor workf orce minimums for construction projectsfunded by grants f rom the FTA

other Advocacy. Support funding and coordination between Health and Human Service (HHS) agencies

and other transportation agencies to provide services to HHS clients.

Preserve modal parity by maintaining the commute tax benefits in legislation to reformcorporate tax rates.

Advocate for maintaining the tax exemption on municipal bonds in legislation to reformcorporate tax rates.

. Support legislation that encourages Single Payer health insurance.

. Advocate for funding of infrastructure improvements covered by the American withDisabilities Act (ADA).

Monitor actions regarding any eff ons to eliminate 1 3C requirements, and/or theDepartment of Labor's position with respect to applicability of 1 3C to pension reformlaw (PEPRA).

Advocate for transit-supportive legislation that mitigates climate change and/or calls forenvironmental stewardship and related funding.

e Explore options to expand the FTA's 20% spare ratio requir

. Monitor actions that decrease funding for sanctuary cities

nash and sustain longe

ement

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SR 17-239 Attachment 5

2017 State Advocacy Program

Fundinge Support eff ons to implement future transportation authorizations that at least maintain

funding level for mass transit projects and programs for bus operators in the Bay Area

e Support eff ons that increase the formula allocation of cap & trade auction revenue topublic transit operations and capital investments, and the development of anexpenditure plan for cap and trade revenue that provides an equitable investment inmass transit and infill/transit oriented development OOD).

e Support the development of a regional toll measure expenditure plan and theenactment of legislation that provides for the equitable distribution of toll revenue forpublic transit operations and capital improvements within AC Transit's toll bridgecorridors .

Actively participate in the California Air Resources Board's (CARB) Advanced CleanTransit regulatory process.

8 Support legislation and programs that would provide funding to offset the costs ofclimate change initiatives, such as pending Advanced Clean Transit regulations andany zero emission vehicles.

e Support eff ons that create new sources of operating funds with equitable distribution toref lect urban transit needs.

Support eff ons for new, sustainable funding for existing transit revenues, including theState Transit Assistance (STA) program to offset the decline in available revenue.

e Support eff ons that would exempt public transit providers from state sales tax

. Support lc)cal ability to increase fees and gas taxes to be used for local mass transitpurposes.

e Support congestion pricing strategies and legislation that provide an equitable multimodal distribution of generated revenues.

e Support legislative or administrative action to remove State barriers so that Medicaidtransportation funds can be used for public transit services, including ADA paratransitqnn/lrnq

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sul)[)ort funding and coordination between Health and Human service (HHS) agenciesand other transportation agencies to provide services to HHS clients.

Support/seek additional funding for essential services including, but not limited toservices for access to work, school or medical facilities.

Support policy initiatives that relieve the undue burden of mandatory regulations byrequiring all mandates be sufficiently funded to protect the fiscal integrity of the District

Support eff ons to ensure public transit receives a fair share of any new tax revenue,such as revenue resulting from Proposition 64.

Support eff ons at the California Public Utilities Commissiondiscounted rates of electricity for zero emission vehicles.

Support funding for continued operation and maintenance of the Transbay TransitCenter.

Equipment and Operations. Support legislation or administrative action that would direct Caltrans to establish and

maintain HOV and HOT lanes on state highway routes and to improve existing lanemanagement to maximize person throughput.

. Support incentives to provide bus only lanes on bridges to/from the Transbay TransitCenter.

Support legislation to exempt public transit and paratransit vehicles from state and localtruck route ordinances.

Support legislation or administrative action that would direct Caltrans to permitpermanent use of freeway shoulders by public transit buses and paratransit vehicles.

Remove or except public transit diesel-powered heavy duty vehicles from the 3000hours limitation required under the Emissions Defects Warranty established by CARB

. Support increased resources for security and safety of bus divisions.

. Support funding for zero emission vehicle workf orce training programs.

Transit Incentives. Support legislation to provide incentives for employees and employers to use public

transportation to commute to work, including tax credits for purchasing transit passe

Support Clean Air Initiatives that encourage increased public transit use

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and state legislature for

8

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e Support legislation to provide incentives for local governments and developers toincorporate transit passes Into the cost of housing.

Environment and Transit Supportive Land Use. Advocate for transit-supportive legislation that addresses climate change, healthy

communities and environments.

e Foster transit supportive land use initiatives that require coordination with transitproviders in the initial stages of local planning or project development that impactstransit, including density level decisionsl and advocate for the required use of:

o Transit streets agreements, ando Complete streets plans in which local transportation plans anticipate use of all

modes

8 Support improvement to the California Environmental Protection Agency's (Cal/EPA)screening process to better account for the disadvantaged communities of the EastBay

Policy Interests. Support simple majority vote for local transportation tax initiatives

8 Support legislation to allow District to ban persons for specified offenses relating toaggressive, threatening or criminal behavior against district property, assets orpersonnel and from entering District property, including buses.

e Seek revisions to the Metropolitan Transportation Commission's statutes to include thedirect representation of transit properties on its governing board.

e Support legislation for STA formula reform that includes federal operating funding aseligible revenue.

e Support efforts that maintain existing Workers' Compensation regulation

8 Consider eff ons to reform tort general damages

8 Monitor actions regarding any eff ons to eliminate 1 3C requirements, and/or theDepartment of Labor's position with respect to applicability of 1 3C to pension reformlaw (PEPRA).

e Monitor administrative and regulatory compliance legislation that potentially impacts theDistrict.

e Support legislation that requires jurisdictions to install Transit Signal Priority equipmentin order to receive money for traffic signal upgrades.

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e

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Support eff ons to authorize AC Transit to enforce parking and moving violations in busonly lanes and bus stops through the use of forward-facing cameras.

Seek to harmonize treatment of independent public agency retirement systems withlarge systems (e.g. CalPERS, CalSTRS).

Support legislation that reduces liability for common carriers.

Support legislation that allows for the enforcement of priority seating.

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