State Legislative Platform for 2019

SBCAG STAFF REPORT

SUBJECT: State Legislative Program

MEETING DATE: January 17, 2019 AGENDA ITEM: 6

STAFF CONTACT: Sarkes Khachek

RECOMMENDATION:

A. Receive report from SBCAG’s state lobbyist Gus Khouri of Khouri Consulting and approve state legislative platform for 2019.

B. Appoint an SBCAG Board delegate to attend Central Coast Coalition Sacramento Lobby Day event.

SUMMARY:

Staff has been working with SBCAG’s state lobbyist, Khouri Consulting, to develop SBCAG’s 2019 state legislative program and strategy that will assist in guiding efforts to obtain discretionary federal funding for high priority transportation projects in Santa Barbara County and to influence state legislation to protect SBCAG’s interests.

Maintaining a robust state legislative program is consistent with the Board’s Measure A Strategic Plan goal to aggressively pursue outside matching funds to complete Measure A project commitments and meet the region’s transportation needs. SBCAG Board approval of the 2019 draft state legislative agenda will authorize staff, Board members and our lobbyist to continue efforts to lobby for SBCAG’s interests in Sacramento.

SBCAG’s state legislative program recognizes the new funding opportunities available through SB 1 and focuses our lobbying efforts on protecting these new funding sources along with continued advocacy for improvements to existing programs.

Mr. Gus Khouri will present the SBCAG’s draft State Legislative Platform at the January 17 SBCAG Board meeting. He will also provide an update on the Governor’s Proposed FY 19-20 State Budget.

DISCUSSION:

Governor Brown signed SB 1 into law on April 28, 2017. SB 1 is the most significant state transportation legislation in the over 34 years. More than $5.2 billion in new revenue will be available for transportation projects and programs at the local regional and state level through the new taxes and fees contained in this legislation. SB1 allowed SBCAG and Caltrans to

pursue and secure approximately $431 million, including $184 million in competitive funding for the Santa Barbara U.S. 101 Multimodal Corridor. The investment allows for the delivery of Segments 4A, 4B and 4C of the U.S. 101 HOV project as parallel projects. SBCAG will continue to pursue additional funding in the second cycle of the competitive programs to complete the corridor with delivery of Segments 4D and 4D and parallel projects.

The proposed state 2019 legislative platform for SBCAG is attached for review and comment. SBCAG’s state legislative program reflects the SB 1 funding environment. The legislative platform focuses SBCAG’s lobbying efforts on building upon SBCAG’s recent awards under the new SB 1 funding sources, maximizes SBCAG’s access to these new funding sources and continues advocacy for improvements to existing programs.

The platform identifies high priority issue areas along with goals and strategies to address these issues.

The six issue areas are: • State Funding for SBCAG’s Priority Projects • Regional Partnerships • Transit Funding Reforms • Greenhouse Gas Emission Reduction • Passenger Rail • Disadvantaged Communities

To advance SBCAG’s state legislative agenda, staff is working with Gus Khouri, our state legislative lobbyist, on a Central Coast Coalition Sacramento lobby day on March 20, 2019. Similar to the DC legislative advocacy trip, the Sacramento lobby day will again provide an opportunity for SBCAG Board members to meet with our state legislative delegation to discuss the board’s legislative platform. This will be the eighth annual Central Coast Coalition Sacramento Lobby Day. SBCAG staff recommends the SBCAG Board appoint a delegate to attend Central Coast Coalition Sacramento Lobby Day event.

COMMITTEE REVIEW:

The Joint Technical Advisory Committee reviewed the State Legislative Platform and voted unanimously to recommend the SBCAG Board approve the document.

Attachments

A. SBCAG 2019 Draft State Legislative Platform B. Summary of SBCAG 2019 State Legislative Platform C. Khouri Memo to SBCAG Board of Directors

ATTACHMENT A

Proposed SBCAG 2019 State Legislative Platform

Issue Goal Strategy

1. State Funding for Aggressively pursue funds In 2017, the legislature enacted SB 1 (Beall), Chapter 5, statutes of 2017, SBCAG’s Priority through the State Budget, which provides $5.2 billion in annual revenues to fund traffic congestion Projects California Transportation relief, highway rehabilitation and safety, local streets and roads repair, Commission allocation and multi-modal options through investments into public transportation, process or any other state commuter and intercity rail, and bicycle and pedestrian programs. In sources. 2018, SBCAG was successful in acquiring over $431 million for the 101 HOV Lane project from Carpinteria through Montecito and capital needed for the retiming of LOSSAN to provide peak hour service through Goleta.

SBCAG will remain diligent in competing for additional state funds for countywide priorities, with an emphasis on completing the 101 HOV Lane project to Santa Barbara.

SBCAG will also continue to pursue revenue made available through the Cap and Trade and Active Transportation Programs, for operations and capital needs for bus, rail and bicycle and pedestrian programs.

In 2014, the Legislature called for a pilot program (SB 1077) to study a road charge model as a possible replacement source to the gas tax. Due to the limited number of participants from rural and low-income areas and the truncated timeline, more work is needed to recommend an appropriate charge rate. Issues include protecting privacy relating to data collection, enforcement, and compliance. While the enactment of SB 1 has delayed possible implementation, the issue may rise to the forefront in the not so distant future due to the prevalence of alternative fuel and electric vehicles, which do not pay at the pump.

SBCAG will continue to monitor the Road User Charge Technical Advisory Committee’s activities. Issue Goal Strategy

2. Regional Partnerships Coordinate with Central Coast Educate our delegation and funding partners, such as the California Coalition to raise awareness of State Transportation Agency (CalSTA), California Transportation the Highway 101 Corridor and Commission (CTC), Caltrans, and the Newsom Administration, about the highlight its’ importance as a Highway 101 HOV lane extension project, the funding plan, schedule and transportation facility of state attributes that make it a highway of statewide/national significance, as and national significance. previously recognized by the Brown Administration in letters submitted to the Trump Administration. Work with other regional agencies on the Central Coast (Monterey, San Benito, San Luis Obispo, and Santa Cruz) and Caltrans to raise awareness of the importance of 101 and its need for improvements as one of the two north-south interregional corridors in the state and the vital role it plays in goods movement in addition to regional connectivity to major metropolitan areas.

SBCAG will collaborate with Central Coast partners to pursue funding to improve goods movement conditions on Highway 101.

3. Transit Funding Monitor potential changes to The Transportation Development Act, dedicates a statewide ¼-cent sales Reform the Transportation tax for each county for local transportation purposes. That 1/4 cent sales Development Act and its tax, known as the Local Transportation Fund (LTF), generates over $1.5 impact on local public billion annually, primarily for public transit. The California Transit transportation funding Association will host a working group to look at potential changes - with eligibility SBCAG’s state lobbyist on committee - through 2019 with the goal of having a draft legislative solution available for 2020.

SBCAG will closely monitor and participate in the process as appropriate.

Issue Goal Strategy

4. Greenhouse Gas Monitor conversations and Per AB 179 of 2017, the CTC and California Air Resources Board are Emission Reduction activities regarding the state’s required to convene twice a year to coordinate transportation policies, Mandates efforts to enforce greenhouse with a focus on reducing greenhouse gas emissions. Concurrently, the gas emission reduction goals legislature continues to work on providing resources to develop additional and protect the ability of affordable housing and assess job creation opportunities to help promote regional transportation efficient commute options. planning agencies to implement voter-approved SBCAG will work with the California Association of Councils of expenditure plans Government to develop additional revenue sources at the state, regional and local level to support the planning required by SB 375.

SBCAG will also work with organizations such as the California League of Cities, California State Association of Counties, Central Coast Coalition, and Self-Help Counties Coalition, among others, to pursue funding from Cap and Trade, Active Transportation Program revenues or other means to help comply with the statewide mandate to reduce greenhouse gas emissions, and support policies that promote regional job creation and provide for more efficient commute and goods movement travel patterns. Issue Goal Strategy

5. Passenger Rail Expand passenger rail peak Work cooperatively with CalSTA, Caltrans Division of Rail, Amtrak, CTC, hour commute service LOSSAN, Metrolink, and Union Pacific Railroad to expand passenger rail connecting Ventura and Santa service to accommodate Ventura County to south Santa Barbara County Barbara counties. commuter schedules. SBCAG will continue to work diligently on increasing LOSSAN service to not only offset the impacts of the 101 HOV lane extension project, but to also reduce greenhouse gas Maintain and increase funding emissions, and expand mobility options in order to alleviate congestion for intercity passenger rail in within the county. the LOSSAN North Corridor. Pursue funding opportunities SBCAG will also advocate to increase and acquire funding from made available through CalSTA through the State Rail Assistance and Transit Capital and CalSTA. Intercity Rail Program.

6. Disadvantaged Prioritize impactful Continue to support development of impactful transportation plans, Communities transportation projects in programs and projects that can successfully improve mobility in disadvantaged communities. disadvantaged communities in Santa Barbara County.

Expand the traditional SBCAG will support efforts to expand the official definition of definition of disadvantaged disadvantaged communities beyond that of the California communities to allow for Communities Environmental Health Screening Tool in order to improvements that benefit the ensure that investments are maximized for the benefit of a region. disadvantaged community and region as a whole.

ATTACHMENT B ATTACHMENT C

January 8, 2019

TO: Board Members, Santa Barbara County Association of Governments FROM: Gus Khouri, Principal Khouri Consulting

RE: STATE LEGISLATIVE UPDATE – JANUARY On January 7, legislators reconvened from the Winter Recess. Many changes have occurred due to the November elections. Democrats enjoyed a clean sweep of the Constitutional offices. For the first time in 130 years, a Democrat has succeeded another for the governorship (Jerry Brown to Gavin Newsom). We also witnessed the first elected female Lieutenant Governor, Eleni Kounalakis, and second female Treasurer, Fiona Ma (Kathleen Brown was the first) being sworn into office.

Here are the final results for the constitutional offices:

Office Candidate (party registration) Votes Governor Gavin Newsom (D) 61.9% John Cox (R) 38.1% Lieutenant Governor Eleni Kounalakis (D) 56.6% Ed Hernandez (D) 43.4% Secretary of State Alex Padilla (D) 64.5% Mark Meuser (R) 35.5% Controller Betty Yee (D) 65.5% Konstantinos Roditis (R) 34.5% Treasurer Fiona Ma (D) 64.1% Greg Conlon (R) 35.9% Attorney General Xavier Bacerra (D) 63.6% Steven Bailey (R) 36.4% Insurance Commissioner Ricardo Lara (D) 52.9% Steve Poizner (R) 47.1%

Democrats in the California State Legislature were able to secure two-third super- majorities in both the Assembly (60 out of 80 members) and the Senate (30 out of 40) by gaining five seats in the Assembly and 3 in the Senate. Assembly Member Limón handily won her re-election bid by garnering 80.4% of the vote.

2019 Legislative Platform In 2018, SBCAG was a highly successful in securing SB 1 funding for priority projects, including the following:

• In March of 2018, successfully lobbied the CTC for $226 million in SHOPP and STIP funding for the U.S. 101 HOV lane project.

• Negotiated the agreement for the extension of LOSSAN Intercity rail service through the county and a commitment for the state to contribute towards completing Phase 4 of the 101 Widening Project through proceeds realized through the enactment of SB 1, Chapter 5, Statutes of 2017.

• Helped finalize details for the April 6 ribbon-cutting on the new service, which included securing CalSTA Secretary Brian Annis’ appearance at the event.

• In April of 2018, successfully lobbied CalSTA to allocate $22 million to SBCAG- sponsored rail & transit grant funded projects and an additional $196 million in LOSSAN rail projects that benefit our region. This was part of the LOSSAN retiming negotiation.

• In May of 2018, successfully lobbied the CTC additional $184 million to fully fund the next three segments of the 101 HOV project from Carpinteria north into Montecito, for a total of $431 million. The project was ranked second statewide and represented the second largest single award from a competitive program for any jurisdiction in the state.

• Successfully assisted the Self-Help Counties Coalition in lobbying for a rate reduction through SB 848, from 30% to 10%, for the indirect costs imposed by Caltrans passed on to self-help counties for pre-construction work performed by the department, potentially preserving millions in Measure A dollars.

The awards would not have been possible without the passage of Proposition 69 in June, which constitutionally protects revenues generated by SB 1 (the vehicle registration fee and sales tax on diesel) from being diverted, as well as the defeat of Proposition 6, which would have eliminated SB 1 $5.2 billion in annual revenues for transportation infrastructure and mobility, providing the first real opportunity for sustained, impactful investments in over four decades.

In 2019, while revenues are available, there are challenges with the state’s desire to impose stiffer mandates to reduce greenhouse gas emissions. This could pose a threat to SBCAG’s ability to deliver the voter-approved expenditure plan detailed in Measure A. There will also be stiffer competitive for SB 1 Cycle 2 funds as SBCAG strives to complete Section D and E of the U.S. 101 HOV lane project given that this round will have lower allocation levels but more applicants. Our partnership with Caltrans however should provide leverage in improving our prospects for continued success.