PA 06-136—HB 5844

Emergency Certification

AN ACT CONCERNING THE ROADMAP FOR CONNECTICUT'S ECONOMIC FUTURE

SUMMARY: THIS ACT:

1. authorizes $1 billion in new Special Tax Obligation (STO) bonding for strategic transportation projects and initiatives;

2. specifies these strategic projects and initiatives and the assessments the Department of Transportation (DOT) must do for several potential future projects;

3. increases the amount of petroleum products gross receipts tax revenue that must be transferred to the Special Transportation fund (STF) each year to fund the transportation improvement projects, defines what such projects include, and limits the safety net provision under which shortfalls in the petroleum product tax receipts must be made up from the General Fund;

4. authorizes the State Bond Commission to issue up to $1. 3 billion in bonding that would be secured through future federal transportation revenues;

5. places the Transportation Strategy Board (TSB) in the Office of Policy and Management (OPM) for administrative purposes, makes OPM responsible for staff assistance for the TSB, realigns some of the TSB's responsibilities to be performed by the OPM secretary, and makes a change in how two members of the TSB must be appointed;

6. makes the OPM secretary responsible for coordinating state and regional transportation planning with other state planning and interagency policy development;

7. permits the use of previously authorized bonding under the Urban Action Program for transit-oriented development projects in municipalities and defines “transit-oriented development”;

8. authorizes the Department of Economic and Community Development (DECD) and the Connecticut Development Authority (CDA) to make grants or loans, as appropriate, to support transit-oriented development projects and encourage the development and use of port and rail freight facilities and services;

9. authorizes the DOT commissioner to make agreements with Amtrak, Massachusetts, and other entities that are necessary to provide rail commuter service on the New Haven-Hartford-Springfield rail line;

10. requires DOT to study (a) building a fuel cell power station to generate power for the New Haven Line, (b) the mobility needs of residents and businesses in eastern Connecticut, and (c) implementing commuter rail service between New London and Worcester, Massachusetts, and report back to certain legislative committees by January 1, 2008;

11. requires Connecticut, acting through the governor, to initiate ongoing formal discussions with the surrounding states regarding opportunities to enhance regional commuter and freight mobility and report any results to the legislature;

12. requires the governor to make recommendations to the legislature on any projects necessary to implement the recommended strategy, and how these will be financed;

13. requires the OPM secretary to perform a regional “build out” analysis and make recommendations on performing one for the entire state; and

14. repeals several TSB and DOT report requirements, revises others, and modifies the requirement for DECD, CDA, and Connecticut Innovations, Inc. to submit project impact statements to the TSB for large traffic generating projects they assist.

EFFECTIVE DATE: July 1, 2006

STO BONDING FOR STRATEGIC TRANSPORTATION PROJECTS (§§1 § 2, 4–9, & 17)

Strategic Transportation Projects and Initiatives

The act requires the DOT commissioner to implement these strategic transportation projects and initiatives:

1. restoring commuter rail service on the New Haven-Hartford-Springfield line and initiating shuttle bus service from the line to Bradley International Airport;

2. implementing the New Britain-Hartford busway subject to the availability of federal funds for the project;

3. rehabilitating rail passenger coaches for use on the Shore Line East and the New Haven-Hartford-Springfield lines, and the New Canaan, Danbury, and Waterbury branches of the New Haven rail line;

4. developing a new commuter rail station between New Haven and Milford;

5. meeting the costs of capital improvements to the New Haven Line branch lines, up to $45 million;

6. meeting the capital costs of parking and rail station improvements on the New Haven Line and its branches, and the Shore Line East service (including at least four stations east of New Haven), up to $60 million;

7. funding the local share of the Southeast Area Transit federal pilot project;

8. completing the Norwich Intermodal Transit Hub Roadway improvements;

9. conducting environmental planning and assessment for the expansion of I-95 between Branford and Rhode Island;

10. funding the capital costs of the greater Hartford highway infrastructure improvements in support of economic development;

11. completing preliminary design and engineering for widening I-84 between Waterbury and Danbury;

12. funding the Commercial Vehicle Information System Network; and

13. completing a rail link to the port of New Haven.

If the DOT is unable to implement the intermodal connection between the port and rail facilities at the port of New Haven by July 1, 2008, the commissioner must submit a report to the transportation and finance, revenue and bonding committees explaining the reasons why and describing alternative ways to facilitate intermodal shipping at the port.

The commissioner must recommend implementation of additional transportation improvement projects in consultation with the TSB. With the governor's approval and allocation by the State Bond Commission, the proceeds of the new STO bonds authorized under the act may be used to support these projects.

The act authorizes the commissioner to enter into grant and cost-sharing agreements with local governments, transit districts, regional planning agencies, and councils of governments in connection with the projects described above and any additional transportation improvement projects the commissioner may implement.

The act also requires the commissioner to evaluate and plan for implementation of:

1. improving Routes 2 and 2A in Preston, North Stonington, and Montville;

2. upgrading the Pequot Bridge in Montville;

3. evaluating rail links to other ports;

4. supporting and encouraging dredging of the state's commercial ports;

5. developing a second rail passenger station between New Haven and Milford; and

6. expanding Route 9.

The commissioner must identify obstacles to improved service on Shore Line East including, at least, increased service frequency, reverse commute service, and weekend service, and report his findings and recommendations to the legislature by January 1, 2007. He must also ensure that the state's transportation plans, including the master transportation plan, are consistent with the state transportation strategy as developed by the TSB and adopted by the legislature.

Bonding for Transportation Improvement Projects

The act authorizes the State Bond Commission to authorize issuance of up to $1 billion in STO bonds, the proceeds of which must be used to pay the transportation costs for (1) the specific strategic transportation projects identified above; (2) additional transportation improvement projects recommended by the commissioner after consulting with the TSB, and the various plans, evaluations, assessments, and studies the act authorizes; and (3) project planning pursuant to the fuel cell, eastern Connecticut mobility, and New London-Worcester rail line studies the act requires.

The act defines a “transportation improvement project” as improvements to the state's transportation system including, at least, (1) projects included in the State-wide Transportation Improvement Program; (2) projects included in regional transportation improvement plans; and (3) projects identified § 13b-57h of the general statutes, which identifies specific projects recommended by the TSB in each of the five transportation investment areas (TIAs) established by law as part of the process for developing and implementing a state transportation strategy. These projects are transportation strategy projects that the legislature has designated as priorities for completion. These priority transportation strategy projects, some of which may overlap with some of the initiatives described above, include:

1. acquiring rail equipment to add at least 2,000 additional seats for interstate and intrastate service on the New Haven Line;

2. constructing or expanding stations in Stamford, Bridgeport, and New Haven to accommodate rail service and at least one other mode of transportation;

3. making improvements to Long Island Sound to facilitate its use for passenger and freight movement, and expanding the Bridgeport Intermodal Facility to support high speed ferry service;

4. establishing express bus services from New Haven to Bradley International Airport;

5. completing the New Britain-Hartford busway and establishing other bus rapid transit or light rail service in Hartford and surrounding towns;

6. expanding passenger rail service through Danbury to New Milford to assist commuter movement on Routes 7 and I-95;

7. upgrading or constructing maintenance and parking facilities, and upgrading feeder bus services for passenger rail service, particularly along the New Haven Line;

8. establishing commuter bus or commuter rail service as determined by the Hartford-New Haven-Springfield Implementation Study (which proposed rail service);

9. establishing rail freight service with connections to the New London port;

10. expanding bus service frequency and connections within and outside of the region, particularly in and to Norwich and New London and acquiring enough new buses to add capacity for at least 200 additional seats;

11. designing and planning for traffic mitigation in southeastern Connecticut, including planning for the extension of Route 11 from its terminus in Salem to the I-95/I-395 intersection, with appropriate greenway purchases;

12. acquiring sufficient rail equipment to add at least 1,000 seats for the Shore Line East rail service;

13. making highway and operational traffic flow improvements on I-95 and I-395;

14. expanding DOT marketing of the Deduct-a-Ride program to all eligible employers; and

15. continuing to fund the Jobs Access Program.

The act determines the issuance of these bonds to be in furtherance of one or more of the purposes authorized for the use of STO bonds. It declares them to be special obligations of the state and thus payable only from the revenues pledged by law for repayment of STO bonds.

The act allows DOT to solicit bids or qualifications for equipment, materials, or services for these projects at any time in the fiscal year even if all of the required funds may not be available until later in the same or a succeeding fiscal year.

REVENUE BONDING SECURED BY FUTURE FEDERAL FUNDING (§§10 § 11)

The act authorizes the State Bond Commission to issue up to $1. 3 billion in bonds to be secured by future federal transportation revenue funds the state receives. These are commonly known as Grant Anticipation Revenue Vehicles or “GARVEE bonds. ” The act creates a special fund called the Grant Anticipation Transportation Fund into which all revenues required or permitted to be used to secure the bonds must be deposited and held separate from all other money, funds, or accounts. It requires the OPM secretary and the treasurer to provide the bond commission with a written determination that issuing these bonds is in the state's best interest before the commission may issue any such bonds. The bonds may be used to finance any qualified federal aid transportation project, state transportation costs or projects, or other transportation costs, secured by a pledge of (1) federal transportation funds that are appropriated annually for this purpose; (2) any proceeds from the bonds and any earnings from investment of the bond proceeds; or (3) other revenue, funds, or other security pledged or appropriated for this purpose.

Under the act, a “qualified federal-aid transportation project” is any transportation cost or project that may be fully or partially financed with federal transportation funds. A “state transportation project” means any planning, capital, or operating project with regard to transportation undertaken by the state. “Federal transportation funds” are those funds paid or reimbursed by the U. S. Department of Transportation, including future obligational authority, reimbursement funds, or any other money payable under Titles 23 and 49 of the U. S. Code. (These are the two bodies of federal law under which states receive most of their federal transportation aid. )

If federal funds are not sufficient to pay the federal share of principal, interest, and costs for these bonds, the act authorizes the state to pay the federal share temporarily with state funds appropriated for that purpose. Debt service requirements for any bonds issued must be secured by (1) a first call upon the pledged revenues as they are received by the state and credited to the Grant Anticipation Transportation Fund and (2) a lien on any of the money credited to the fund.

REQUIREMENTS FOR PLANNING COORDINATION (§ 3)

The act requires the OPM secretary to (1) consult with the transportation, economic and community development, and environmental protection commissioners to ensure the coordination of state and regional transportation planning with other state planning, including economic development and housing plans; (2) coordinate interagency policy and initiatives concerning transportation; (3) evaluate transportation initiatives and proposed expenditures in consultation with the transportation commissioner; and (4) coordinate staff and consultant services for the TSB.

URBAN ACTION BONDING FOR TRANSIT-ORIENTED DEVELOPMENT (§ 12)

The act permits the use of previously authorized general obligation bonds available under the Urban Action Program to be used with the State Bond Commission's approval for transit-oriented development projects in any municipality. It defines “transit-oriented development” as the development of residential, commercial, and employment centers within walking distance to public transportation facilities and services in order to facilitate and encourage use of those services.

TRANSPORTATION STRATEGY BOARD (§§ 13 & 14)

The act puts the TSB in OPM for administrative purposes only. It allows the transportation, environmental protection, economic and community development, and public safety commissioners, as well as the OPM secretary, all of whom currently serve on the TSB, to designate someone to serve in their capacity as a board member. It makes the OPM secretary solely responsible for staff support for the TSB. Previously, DOT, OPM, and DECD had to provide staff assistance. The act allows the OPM secretary to use staff from OPM and any other state agency, in consultation with the head of that agency. When the OPM secretary approves the hiring of consultants for the TSB, as he may already do within available appropriations, the act allows either the secretary or the DOT commissioner to procure the consultants, as the secretary determines. Previously, the DOT commissioner procured any such consultants for the TSB.

By law, one member of the 15-member TSB comes from each of the TIAs and is appointed by a different legislative leader. In each TIA, the chairpersons of the board of the local planning agencies in the TIA must nominate three qualifying individuals who live in the TIA for consideration by the appointing authority. The act specifies that if the planning agency chairpersons fail to nominate three qualifying people within 180 days of expiration of the previous appointment term, the appointing authority may appoint someone who meets the qualifications without waiting for a list of nominees to consider.

Previously, the Senate president pro tempore appointed a member of the TSB who had to come from the I-91 corridor TIA and the House majority leader appointed a member who had to come from the I-84 corridor TIA. Beginning July 1, 2006, these appointments will be reversed, that is, the Senate president pro tempore's appointment will come from the I-84 corridor TIA and the House majority leader's from the I-91 corridor TIA.

No later than January 1, 2007, and every two years thereafter, the act requires the TSB to review and, if necessary, revise the state transportation strategy. It must submit a report describing any revisions and the reasons for them to the governor and the General Assembly. The report must include a prioritized list of projects that the TSB, in consultation with the transportation commissioner, determines are necessary to implement the recommended strategy, including their estimated capital and operating costs and time frames. By January 31, 2007, the transportation, planning and development, and finance, revenue and bonding committees must meet with the DOT and DECD commissioners, the OPM secretary, the TSB chairperson, and any others they deem appropriate to consider the report.

By law, the TSB must take certain things into account when developing and revising the transportation strategy. The act adds the need to reduce congestion by encouraging greenway initiatives, safe-routes-to-school programs, and rideshare programs to the things the TSB must consider. The act eliminates several special reports or assessments the TSB or DOT must produce.

PETROLEUM PRODUCTS GROSS RECEIPTS TAX REVENUE TRANSFERS TO THE SPECIAL TRANSPORTATION FUND (§ 15)

By law, each calendar quarter the revenue services commissioner must deposit into the STF a specific amount of the revenue generated from the petroleum products tax generated from motor fuel sales. (PA 06-187 removes the limitation that revenues transferred be attributable to sales of motor fuels. ) This tax is paid by companies that distribute certain products in Connecticut that contain or are made from petroleum or petroleum derivatives. The act increases these transfers, specifies the annual amount to be transferred, and continues to require them on a quarterly basis. It increases the quarterly transfers by $20 million in FYs 07 through FY 10 ($80 million total each fiscal year) and $25 million in FY 11 and thereafter ($100 million total each fiscal year). The specific amounts to be transferred are shown in the following table.

N/A means not applicable

Under prior law, if in any calendar quarter the receipts from the petroleum products tax were less than the amount required to be transferred to the TSB projects account, the revenue services commissioner had to certify the amount of the shortfall to the state treasurer who then had to transfer an amount equal to the shortfall from the General Fund. The act requires, beginning in FY 07, that these transfers be made if the receipts from the tax are less than 25% of the amounts required by law. It also makes the state comptroller, rather than the revenue services commissioner, responsible for certifying the amount of the shortfall to the treasurer and for making the actual tax receipt transfers to the STF.

CHANGES TO CURRENT STO BONDING AUTHORITY (§ 16)

Previously, the State Bond Commission could authorize the issuance of up to $485. 65 million in STO bonds for transportation purposes. These bonds became available in specific maximum amounts in each fiscal year from FY 2005 through FY 2015. The act eliminates these specific authorized amounts by fiscal year, thus making the entire amount available as needed.

REQUIREMENTS FOR DOT COMMISSIONER REGARDING HARTFORD-NEW HAVEN-SPRINGFIELD RAIL SERVICE (§ 18)

The act requires the DOT commissioner, in consultation with the OPM secretary with the governor's approval, to (1) enter into agreements with (a) Amtrak or its successor that are necessary to operate rail passenger service on the New Haven-Hartford-Springfield line and (b) Massachusetts or any entity acting on its behalf that are necessary for participation in the New Haven-Hartford-Springfield rail service and (2) select, through a competitive process, one or more entities to operate the New Haven-Hartford-Springfield rail service.

DOT STUDY REQUIREMENTS (§§ 19, 24 & 25)

The act requires DOT to study the feasibility of building a fuel cell power station to generate power for the New Haven Line. The study must consider, at least, a plan for generating a large percentage of the line's peak power needs, as well as having the station serve as a backup in emergencies. DOT must report its findings and recommendations to the transportation and appropriations committees by January 1, 2008.

DOT must also study the transportation and mobility needs of residents and businesses in eastern Connecticut. This must include, at least, (1) transportation between residential and employment centers; (2) improved rail freight service; and (3) opportunities for improved public transportation services and facilities, including the feasibility of creating commuter rail lines between (a) New London and Worcester, Massachusetts and (b) Old Saybrook and Hartford. DOT must report its findings and recommendations to the transportation and planning and development committees by January 1, 2008.

The act requires DOT also to develop an assessment and plan for implementing New London-Worcester commuter rail service. This must include, at least, (1) operating schedules and costs; (2) ridership; (3) fare structure and subsidies; (4) connections to other public transportation services; (5) required facilities and equipment, including trackage, sidings, signalization, stations, and parking; (6) trackage rights issues and costs, if any; (7) coordination with Massachusetts and other authorities, entities, or governments; and (8) potential economic and environmental impacts of any such service. DOT must submit its findings and recommendations to the transportation, appropriations, planning and development, and finance, revenue and bonding committees by January 1, 2008.

INTERSTATE COOPERATION REGARDING OPPORTUNITIES TO ENHANCE MOBILITY (§ 20)

The act requires Connecticut, acting through the governor or her designee, to initiate ongoing formal discussions with Massachusetts, New York, and Rhode Island regarding opportunities to enhance regional commuter and freight mobility. By January 1, 2008 and every two years thereafter, the governor or her designee must report to the legislature on these discussions and any actions taken or recommended as a result.

GOVERNOR'S RECOMMENDATIONS ON TRANSPORTATION STRATEGY (§ 21)

The act requires the governor to make recommendations regarding the transportation strategy to the General Assembly no later than the day she is required by law to submit her biennial budget to the legislature. Her recommendations must include (1) any projects she believes are necessary to implement it and (2) a financing plan for the projects.

STATE GRANTS AND LOANS FOR TRANSIT-ORIENTED DEVELOPMENT PROJECTS AND PORT AND RAIL FREIGHT FACILITIES AND SERVICES (§§ 22 & 23)

The act authorizes the DECD commissioner, in consultation with the DOT commissioner, to use available funds, including bond funds available pursuant to the Urban Action Program, to make grants or loans to (1) support transit-oriented development projects and encourage the location of residential, commercial, and employment centers near public transportation services and (2) encourage the development and use of port and rail freight facilities and services, including trackage and related infrastructure.

The act also authorizes the CDA to make loans for these purposes subject to conditions it imposes.

PILOT “BUILD-OUT” ANALYSIS (§ 33)

The act requires the OPM secretary to report to the Planning and Development Committee by January 1, 2008 regarding the development of a pilot regional “build-out” analysis and make recommendations with respect to the potential cost, schedule, methodology, and plans for doing a state-wide build-out analysis.

PROJECT IMPACT STATEMENTS (§ 26)

Previously, before DECD, CDA, or Connecticut Innovations, Inc. approved funding for any project that is a major traffic generator under state law, the commissioner or executive directors, as the case may be, had to submit an impact statement on the project to the TSB. This had to, among other things, describe how the project addressed the goals established by the TSB for developing the state transportation strategy. The act requires this impact statement to be submitted prior to entering into a grant, loan, or assistance agreement instead of prior to approving funding. It also requires the impact statement to describe the project and its expected impact on the transportation system instead of how it addresses the goals the TSB has set for developing the strategy.

The act eliminates the DECD commissioner's duty to make quarterly reports on its project activities to the TSB.

PROJECT IMPLEMENTATION STATUS REPORT (§ 27)

The act requires the OPM secretary, after consulting with the DOT commissioner and the TSB, to submit an annual report to the governor and General Assembly on the implementation status of projects funded under this act and PA 05-4 of the June 2005 special session. (Among other things, PA 05-4 funds the acquisition of 342 new rail cars, construction of a rail car maintenance facility, and other activities that are part of the New Haven Line revitalization program. ) The report must include the financial status of each project, project schedules and anticipated completion dates, an explanation of any obstacles to completing the projects, and any planned revisions to them. The first annual report must be submitted by the OPM secretary by December 1, 2007.

The act requires the Transportation, planning and development, and finance, revenue and bonding committees to meet during December each year with the DOT and DECD commissioners, the OPM secretary, and any others they deem appropriate to consider the project implementation status report.

CARRYOVER OF PRIOR FUNDING (§ 34)

The act carries forward the unexpended balance of $150,000 transferred to the DOT from the TSB projects account in FY 04 and makes these funds available for expenditure in FY 07 for implementing increased motorist-assistance services known as the Connecticut Highway Assistance Motorist Patrol or CHAMP program recommended by the TSB.

REPEAL OF CERTAIN REPORTING REQUIREMENTS (§ 35)

The act repeals several reporting and related requirements for the TSB and DOT. Specifically, these include requirements that:

1. any TSB project requiring expenditures of more than $1 million be accompanied by an economic development plan that specifies its projected economic benefits to the TIA in which it is located and to the state and that it meets certain other criteria (CGS § 13b-57h(c));

2. the TSB coordinate preparation of a performance report on TSB projects requiring accompanying economic development plans that provides certain information about the projects, their relationship to the strategy, and how they address the transportation problems and needs of the TIA (CGS § 13b-57i);

3. the TSB separately monitor the planning and implementation of the TSB projects identified by law as priority strategy projects and report certain information to the governor and legislature (CGS § 13b-57j(b)); and

4. the DOT prioritize the projects and purposes specified in CGS § 13b-57h (the priority transportation strategy projects and initiatives), including associated operating and maintenance costs, and submit a report to the TSB every two years describing the priorities, which the TSB may then revise, delete, change, add a particular project or purpose, or determine the sequence and timing of projects (CGS § 13b-57p).

TECHNICAL AND CONFORMING PROVISIONS (§§ 28-32)

The act makes several technical and conforming changes relating to the its requirements.

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