Metro - File #: 2019-0009

• File #: 2019-0009
• Type: Motion / Motion Response
• Status: Agenda Ready
• File created: 1/11/2019
• In control: Executive Management Committee
• On agenda: 1/17/2019
• Title: APPROVE Motion by Butts, Hahn, Solis, Kuehl and Dupont-Walker that the Board Instruct the CEO to include this innovative legislative approach as a priority in the State Legislative Program and Goals contained in Attachment B of the Board Report and specifically relating to Goals 13, and 14. WE FURTHER MOVE that the Board directs the CEO to secure a primary legislative author and co-authors to sponsor specific legislation authorizing a new "Build California Green Bond" program. WE FURTHER MOVE that the Board directs the CEO to consult with the LAEDC and consider the updating of the 2011 LAEDC Report Metro used in its advocacy efforts in supporting this legislative initiative and report back to the Executive Management Committee in this regard.
• Sponsors: Executive Management Committee
• Indexes: Construction, Debt, Economic benefits, Hilda Solis, Jacquelyn Dupont-Walker, James Butts, Janice Hahn, Local transportation, Measure M, Measure R, Motion / Motion Response, Policy, Program, Project, Shelia Kuehl
• Related files: 2019-0049, 2019-0035

Meeting_Body
EXECUTIVE MANAGEMENT COMMITTEE
JANUARY 17, 2019
Preamble
Motion by:

Butts, Hahn, Solis, Kuehl and Dupont-Walker

State Legislative Program Goals

Policy Objective: California Green Bond Program

Secure state legislative authorization for a tax credit bond program leveraging Metro's Measures R and M revenues in order to leverage and accelerate key regional and sub-regional transportation priority projects.

Proposed Policy Initiative:

Pursue reintroduction of Metro sponsored state legislation, SB 867 (Padilla 2011) to authorize a new tax credit bond program--Build California Green Bonds. The exact amount of the tax credit bond program would be determined in consultation with the state legislative sponsor or sponsors. In order to have a meaningful impact on the project acceleration process the amount of the tax credit bond program should be in the range of $5.0 billion to $10.0 billion, with an annual project allocation ranging from $1.0 billion to $2.0 billion.

Background:

Last month the CEO unveiled a laundry list of potential financial and policy tools to address the ambitious aspirational goals of the Board adopted 28 X 28 Initiative and Vision. In his presentation the CEO asked the Board for ideas and input in January as we consider adopting a 28X28 Financial Plan in the upcoming February Board cycle.
Rather than threatening Metro's healthy Bond credit rating by lifting Metro's historically self-imposed debt-ceiling cap, we believe the moment is ripe to pursue this alternative innovative approach described above.

In 2011 Metro sponsored a bill authored by then State Senator Alex Padilla (SB 867) (See Below) authorizing a "Build California Bonds" program in order to generate new revenue to support accelerating the Measure R projects. The proposed legislation did generate a significant amount of interest, but unfortunately did not pass. If SB 876 was passed and implemented approximately $1.5 billion of new revenues could have been ...