Transcript Highlights:

• <00:13:59.519> plan Public Safety Cabinet's capital plan Public Safety Cabinet's capital plan
• <00:18:49.200> funds award, or use of capital funds award, or use of capital funds on<00:18
• properties at the outset of any capital properties at the outset of any capital project<00:21:01.679
• projects, whatever the projects capital projects, whatever the projects would<00:29:49.600> be.
• infrastructure capital project. infrastructure capital project.

Keywords: Call to Order and Roll Call- 00:00:01 Staff Report on Statewide Emergency Responder Voice System- 00:01:09 Kentucky State Police and Finance and Administration Cabinet Response to Staff Report- 00:48:37 Adjournment-01:34:512, 958, all

Summary: The committee heard a staff report on Kentucky’s statewide emergency responder voice system (SERVS), a multi-phase project intended to improve interoperable radio communications for first responders. Staff said Kentucky State Police did not appear to have violated statutes or regulations, but the project lacked an overall master plan, clear milestones, and consistent documentation, which contributed to delays, spending issues, and deployment problems. The report recommended updating the Kentucky Field Operations Guide to reflect SERVS and noted that the project has been funded in phases since 2018, with appropriations totaling roughly $216 million across 2018, 2020, 2022, and 2024, while about $109 million had been spent by the end of fiscal year 2025. The report raised concerns about project sequencing and oversight. Staff said most spending was concentrated in special mobile equipment, with Motorola accounting for about two-thirds of all SERVS expenditures and the top four vendors making up 81 percent of spending. They also said a sample of Motorola payments suggested possible late payments, though they could not confirm whether interest was paid. Staff criticized the use of master agreements for a project of this size, the lack of a centralized ledger, and the absence of a documented timeline or risk mitigation plan. They recommended stronger procurement and planning requirements, including possible legislative changes requiring approved master plans for large capital projects and additional funding conditions tied to SERVS master agreements. Land acquisition and deployment progress were identified as major bottlenecks, especially in Eastern Kentucky. Staff said the project began in western Kentucky using existing tower sites, but the remaining work is concentrated in harder-to-acquire areas, with more than 95 percent of new towers still incomplete. They said the Division of Real Properties did not begin formal contract work on acquisition until October 2024, despite earlier coordination, and recommended earlier consultation on future projects. Staff also noted that the Kentucky Wireless Interoperability Executive Committee had not been active in oversight, and survey results showed limited awareness and involvement among first responders. Committee members agreed that the lack of an initial implementation plan and the continuing need for funding reflected broader planning problems, and they discussed the need for a clearer end-to-end game plan rather than continuing to fund the project without a defined completion path.

Transcript Highlights:

• The capital efficiency that comes from this agility can reduce taxpayer burden, increase warfighting
• Innovation doesn't need capital.
• America's capital markets are the deepest and richest in the world.
• We need big shipbuilding, capitally intensive shipyards.
• We can't have an anodyne view of capital.

Transcript Highlights:

• Most of that came from capital gains and investment income, taxes on capital gains.
• <00:15:41.959> gains Most of that came from capital gains Most of that came from capital gains
• and investment income, taxes on capital and investment income, taxes on capital gains. gains. gains
• <00:52:41.720> flight, efficiency costs and capital flight, efficiency costs and capital flight
• Um capital accumulated wealth world.

Bills: HF4621, HF4123, HF4616, HF1183

Keywords: child tax credit, financial assistance, low-income families, state revenue, tax policy, net investment income, taxation, business income, self-employment, tax increase, wealth tax, fairness, public services, high-income earners, economic equity, Internal Revenue Code, employee classification, federal law, Minnesota statutes, 1183

Transcript Highlights:

• Motion carries. maintenance in the state capital maintenance in the state capital construction<02:04:
• major maintenance to the state capital major maintenance to the state capital bill,<02:04:50.960
• >> It is state capital construction. >> State capital construction. Okay.
• >> It is state capital construction. >> It is state capital construction.
• >> State capital construction. Okay. >> State capital construction. Okay.

Keywords: 916, all

Transcript Highlights:

• not capitalized as Commissioner of Administrative Services.
• want to capitalize so it's not confused with things that go over rivers.
• ><01:41:41.360> we're<01:41:41.840> capitalizing paragraph below we're capitalizing paragraph
• <01:43:27.920> project don't use it okay so the capital project don't use it okay so the capital
• They leave it at the working capital of it, so...

Keywords: 928, house, all

Summary: The committee reviewed selected House Bill 2 provisions, focusing first on the group two pension reform language and whether it matched prior legislation and the fiscal note. Members discussed two main issues: the treatment of extra and special duty pay in the pension calculation for employees hired before 2011, and the annuity multiplier after 15 years of creditable service. Several members said the HB 2 language was intended to restore prior law and protect against pension “spiking,” while others worried the draft and fiscal note may not have fully reflected current law, potentially affecting the cost estimate. The discussion repeatedly emphasized the need to avoid underfunding or double counting and to make sure Finance had the correct actuarial assumptions. No vote was taken; the committee agreed to flag the issues for Finance and to clarify the fiscal note. Members also discussed the vested-rights language, which was described as an explicit definition of vesting and a restriction on future legislative changes to compensation calculations after three years of service. Some viewed it as a policy protection with no immediate fiscal impact, while others noted it had been included in prior legislation and should be clearly understood before the bill moved forward. The committee also briefly referenced prior pension legislation, including House Bill 436 and House Bill 727, and noted that HB 2 was being used to carry forward related pension repair provisions. The committee then turned to an OPLC-related section transferring building, plumbing, electrical, and fuel gas inspector positions from OPLC to the Department of Safety’s Fire Marshal’s office. Testimony explained that the nine inspector positions are funded from the licensing fund, and that the move was justified as a public-safety function better aligned with the Fire Marshal’s mission because the inspections are statewide code-enforcement work rather than facility-specific licensing work. The discussion ended with a note that the remaining HB 2 changes run through 2034 and a brief announcement about memorial arrangements for C.J. Gerard.

Transcript Highlights:

• So here, we're looking at capital allocation on the left side of the page, risk allocation on the right
• The important thing to note is capital allocations and risk allocations are not the same.
• This litigation concerns investments made in 2012 to 2015 with one investment manager, Catalyst Capital
• This litigation concerns investments made in 2012 to 2015 with one investment manager, Catalyst Capital
• We have to, I think, be sensitive to the fact that we are in the state capital.

Summary: The Joint Committee on Public Employee Retirement held a hearing focused on the Missouri State Employees’ Retirement System (MOSERS) and its long-term financial condition. MOSERS Executive Director Abby Spieler and investment consultant Tim McKinery outlined the system’s structure, membership, funding policy, and investment approach. They reported that as of the June 30, 2025 valuation, MOSERS had a 55.4% funded ratio, about $17.4 billion in liabilities, and about $9.6 billion in assets. They explained that the FY27 employer contribution rate was certified at 32% under the board’s minimum contribution policy, up from 30.25%, and said the increase is tied to a $46 million new decision item in House Bill 5. The presentation emphasized that MOSERS is a mature plan with more retirees and inactive members than active employees, and that slow or declining payroll growth has made it harder to pay down unfunded liabilities. MOSERS described recent policy changes intended to improve long-term stability, including lowering the investment return assumption over time, updating mortality assumptions, and adopting a minimum employer contribution policy. The board’s 2024 asset-liability study also led to a shift toward more public equity exposure and less fixed income, with the consultant saying asset allocation has been the main driver of relative investment underperformance versus peers in recent years, though recent returns have improved and the portfolio has outperformed its policy index over shorter periods. Committee members questioned why the funded ratio has fallen over time, whether past investment assumptions were too optimistic, and whether the board had been too conservative in its asset allocation. MOSERS representatives responded that the earlier strategy was a board-approved risk-balanced approach and that hindsight makes the results easier to judge, while stressing that current changes are intended to improve long-term outcomes. Members also asked about the impact of inactive members, the automatic refund proposal for small terminated accounts, and the ongoing Catalyst Capital litigation. MOSERS said the proposed legislation would automatically refund small inactive balances and auto-escalate deferred compensation contributions, and reported that litigation-related attorney fees have been about $20 million so far. No votes were taken, and the committee adjourned after questions and discussion.

Transcript Highlights:

• murder with the death penalty capital murder with the death penalty and<00:09:30.080> everything<
• We do have a couple of capital projects that are included that are important.
• And then the other capital construction project is the replacement of the HVAC, the Libert units.
• <00:26:17.039> projects do have a couple of capital projects do have a couple of capital projects
• <00:26:55.760> construction And then the other capital construction And then the other capital

Keywords: Meeting Start 00:00:00 Commonwealth’s Attorneys, County Attorneys, Prosecutor’s Advisory Council 00:00:18 Approval of Minutes 00:20:09 State Treasurer 00:20:33, 958, all

Summary: The meeting began with testimony from representatives of the Prosecutor’s Advisory Council, including county and commonwealth attorneys, on their proposed budget. They described the scope of their work in district and circuit court, juvenile and dependency cases, specialty courts, guardianship, involuntary hospitalization, and the Rocket Docket program. The witnesses emphasized that their budgets are overwhelmingly personnel costs and warned that proposed cuts could lead to layoffs, reduced retention, and loss of recently added positions. They also said the General Assembly’s recent salary classification plan had improved recruitment and retention, and that underfunding could reverse those gains. A major topic was the Rocket Docket program, which they said speeds lower-level cases through the system, reduces jail costs, and saves money for both counties and the state. They reported that in one circuit, average jail time for certain cases dropped from about 50 days to about 6 days. They also raised concerns that the Rocket Docket line item may not be clearly included in the committee substitute and asked for clarification on how the budget would treat it. In response, the chair said the intent was to move some of those items into the base budget, though the exact structure was still uncertain. The presenters also discussed a 2022 subsidy for county attorney employees tied to retirement contributions, saying it totals about $1.3 million and should not be reduced because the obligation remains. They said the budget would need to support the salary classification plan extensions, House Bill 8 subsidies, and a new case management system that they described as essential to modernizing operations and improving communication with victims and law enforcement. The chair thanked them for the testimony and indicated the committee would continue reviewing the budget. The committee then heard from Deputy State Treasurer Russell Weber, who reported that the treasury has now returned more than $90 million in unclaimed property to Kentuckians. He said the office faces ongoing fraud issues and requested funding for a dedicated legal counsel and a fraud investigator, along with outreach money to educate the public about unclaimed property. He also outlined several capital requests, including the final year of a printer-system lease and replacement of HVAC equipment in the treasury building. Members briefly joked with him about a mineral-rights bill and coal, but no votes or formal actions were taken beyond approving the minutes and adjourning the meeting.

Transcript Highlights:

• It’s a capital project also known as DORIS.
• capital project also known as Doris. capital project also known as Doris.
• capital needs.
• capital cost. capital cost.
• mind that we're competing for capital mind that we're competing for capital with<01:09:28.560>

Keywords: 0:00:08 Call to Order and Roll Call 0:00:38 Approval of Minutes 0:01:02 Information Items 0:02:17 Lease Rpt from Postsecondary Institutions 0:06:42 Project Rpt from Finance and Administration Cabinet 0:15:03 Lease Rpt from Finance and Administration Cabinet 0:24:00 Rpt from OFM – KY Infrastructure Authority 0:42:55 Economic Development Fund Grants 0:53:38 Rpt from OFM – New Debt Issues 1:16:33 Remaining 2025 Meeting Dates 1:16:45 Adjournment, 958, all

Summary: The committee first handled routine business, including roll call, approval of the July minutes, and several informational reports. Those reports included a University of Kentucky restricted-fund medical equipment purchase for Chandler Hospital, debt issues for five school districts, Eastern Kentucky University’s planned model laboratory school using construction management risk delivery, a Division of Real Properties lease advertisement, Kentucky Communications Network Authority quarterly project reports, and EKU asset preservation revisions. Members then heard and approved a new UK St. Clair Urgent Care Clinic lease in Morehead and an amendment expanding space for the UK Family and Community Medicine Clinic at Turflin Clinic. Testimony explained that both properties are privately owned, the Morehead lease predated the UK/St. Clair arrangement, and the Turflin Clinic is tight on space. The committee also approved three new projects and an appropriation increase: two Department of Military Affairs projects, a Window Ford Training Center underground electric project and a Williamsburg Readiness Center interior repair project, a Fish and Wildlife property acquisition adjoining Veterans Memorial Wildlife Management Area, and an $8.113 million increase for the Department of Revenue integrated tax system (DORIS). The DORIS increase was described as needed for change orders tied to legislation and to complete the unified tax system. The committee next reviewed no-action items, including a $3 million emergency flood-damage repair project for the Bush Building and Vest-Lindsay House in Frankfort, and three pool projects over $1 million: a Kentucky Correctional Institute for Women window replacement phase 2 project, a Department of Criminal Justice Training interior refurbishment at Thompson Hall, and the Muddy Gut Branch stream mitigation project in Johnson County. The flood project was confirmed to be fully reimbursed by insurance proceeds. Finally, the Kentucky Infrastructure Authority presented six loans and nine grants. Action items included water and sewer financing for Cumberland County, Lebanon, Northern Kentucky Water District, Lewisport, and Providence, plus a major Taylor Mill treatment plant project and several cleaner water grants and reallocations. Members asked about loan rates, local rate increases needed to repay debt, and the Providence emergency water interconnect; staff explained that Lewisport had begun a rate increase process, and that the Providence project would connect Webster County Water District and the city of Providence to stabilize pressure after a systemwide failure. All action items were approved.

Transcript Highlights:

• Is building up a a capital doing?
• through an additional charge, a capital through an additional charge, a capital risk<01:35:21.840
• that funds will be put into a capital that funds will be put into a capital reserve<02:18:49.200
• <02:18:55.040> reserve these would not be capital reserve these would not be capital reserve
• They are not capital funds.

Keywords: 1191, senate, all

Transcript Highlights:

• The last piece of our request is for a capital outlay of $5 million. Senator, Mr.
• Chair, Senator, great question related to the two different ways that we fund capital outlay.
• And upper level capital funding is needed for us to catch up. Thank you. Appreciate that, Mr.
• We received a total of $65 million between capital...
• Also, funding in the capital bill, in the current scenario of the capital bill, related to aquifer recharge

Keywords: 996, all

Transcript Highlights:

• going to contextualize federal impacts within state public finance, so the state operating budget, capital
• has, again, about 25% of the state's capital investment plan from fiscal year 2025 is direct federal
• So about 25% of the state's capital investment plan comes from the feds.
• So the fact that we have resources that we can deploy in a variety of ways, the Innovation and Capital
• Many small businesses rely on seasonal planning or imported components and have less capital to take

Keywords: 995, all

Summary: The inaugural hearing of the newly named House Committee on Federal Funding, Policy and Accountability focused on how federal policy changes could affect Massachusetts, especially in education, health care, research, infrastructure, climate, and business conditions. Chair LaNatra said the committee was created to monitor federal funding decisions and their impacts on state programs and services. Members introduced themselves, then heard testimony from Doug Howgate of the Massachusetts Taxpayers Foundation, Sarah Mills of Associated Industries of Massachusetts, and Quentin Palfrey, the governor’s Director of Federal Funds and Infrastructure. Howgate argued that the Trump administration and new Congress pose ideological, practical, and process-related risks to Massachusetts, citing proposed cuts to Medicaid, education, research, and other domestic programs. He said federal dollars make up about a quarter of the state operating budget and capital plan, warned against using one-time reserves to backfill ongoing federal cuts, and urged the state to prioritize core services while protecting areas where Massachusetts is especially strong, such as higher education and research. In response to committee questions, he said the House Medicaid proposal would still cost Massachusetts hundreds of millions and that international student and NIH-related changes could harm the state’s labor force and innovation economy. He also advised that the state communicate clearly without overreacting to daily federal developments. Mills testified that AIM members are most concerned about uncertainty, tariffs, Medicaid cuts, and NIH reductions. She said tariffs are raising costs, disrupting supply chains, and hurting small and medium-sized businesses, housing construction, and exporters, with AIM’s business confidence index falling to its lowest level since the pandemic. She said Medicaid cuts would raise employer health costs, reduce productivity, and strain the health care system, while NIH cuts would threaten Massachusetts’ life sciences and academic research ecosystem. In questions, she said AIM has increased federal outreach, is coordinating with the U.S. Chamber and the Massachusetts delegation, and is hearing concerns from employers about immigration compliance and workforce disruptions. Palfrey described the Healey-Driscoll administration’s efforts to maximize federal funding, including a biweekly interagency council, a municipal partnership effort, and a statewide roadshow. He said Massachusetts has secured nearly $9 billion from major federal laws for projects such as the Cape Cod bridges, Allston Multimodal, grid modernization, clean-energy school buses, and broadband. He also said the administration launched a public website to track federal impacts and is working with municipalities, nonprofits, and the Attorney General on grant changes, legal issues, and litigation. In response to questions, he warned that cuts to NOAA, NSF, Medicaid, SNAP, and other programs could affect services and the state budget, and said the administration is tracking changes to federal grant applications and conditions. No votes were taken; the hearing was informational only.

Transcript Highlights:

• On page 3, line 2, I recognize that this is essentially a move we've moved the reference to a capital
• with it the potential of capital punishment, and we don't have capital punishment in New Mexico.
• That includes capital felonies, first degree violent felonies, and capital felonies.
• typically how certain types of crimes that fall under capital punishment are defined.
• But it's a little odd to me that it says capital felony and we don't actually have capital punishment

Bills: SB38, SB17, SB41, SB264

Keywords: SB38, pet food, registered pet food, registration fee, fees, sunset repeal, repeal of repeal, revenue, state fee, business regulation, animal feed, pet food registration, New Mexico, gun control, firearm safety, dealer regulation, illegal trade, background checks, sexual crimes, statute of limitations

Transcript Highlights:

• Chris Scroggen, with Capital Advocacy, on behalf of ChargePoint, in support.
• assets, highlighting this capital expenditure bias that you all know about.
• They need high returns on investment to attract sufficient capital.
• , risk, and return through our GRCs, cost of capital proceedings, and other targeted reviews.
• That leads to a higher cost of capital and ultimately higher rates for customers.

Summary: The committee heard several energy, water, and utility bills. SB 919 by Senator Grayson would extend the biomethane monetary incentive program through 2030 and authorize additional funding to support renewable natural gas projects by reducing interconnection costs. Supporters said high interconnection costs and the current tax treatment are major barriers to methane reduction projects; opponents, including TURN and environmental groups, raised ratepayer cost concerns and objected to rate-basing and additional public funding. The author said amended language would remove the rate-basing provisions and instead urge the CPUC to act quickly on its pending decision. SB 931 by Senator Laird would reauthorize the Community Impact Mitigation Program for the Diablo Canyon plant through 2030 to continue funding local emergency preparedness, fire protection, public safety, and school district costs. The County of San Luis Obispo and labor groups supported the bill, while TURN opposed it as a statewide ratepayer subsidy that could be funded from existing PG&E revenues instead of higher rates. Members discussed the bill in the context of the 2022 Diablo Canyon extension deal and the possibility of a future longer extension. SB 1215 by Senator Cortese would direct the CPUC to set deployment targets for EV charging in multifamily housing and evaluate progress, with amendments aimed at affordability and limiting system upgrade costs. Supporters said renters are largely locked out of home charging and that prior utility programs proved cost-effective; no opposition testified. SB 1359 by Senator Stern would require more deliberate CPUC review before major gas system investments, emphasizing electrification and non-pipeline alternatives. Gas utilities and several industry groups opposed it, arguing it could undermine the obligation to serve, create safety and reliability risks, and change the regulatory compact. The committee also heard SB 1125 by Senator Menjivar, presented by Senator Gonzalez, which would establish a statewide low-income water rate assistance program upon appropriation. Water agencies, environmental groups, and local governments supported the measure, while one member expressed concern that it lacked a funding source and could not overcome Proposition 218 limits; the bill was moved to Appropriations and the roll was left open. Finally, SB 1098 by Senator Perez would restrict the use of long-running memorandum and balancing accounts by investor-owned utilities, require exceptional circumstances for new accounts, and add sunset and cost-sharing requirements. Consumer advocates and large energy users supported tighter oversight, while the utilities and business groups opposed the bill as too rigid and potentially harmful to flexibility for wildfire, emergency, and safety-related costs.

Transcript Highlights:

• <01:26:39.600> grant yeah to allow a capital grant yeah to allow a capital grant project.<
• for capital investments.
• for capital investments.
• projects because that's for capital projects because that's for capital<01:28:54.400> investments
• capital investments. capital investments.

Keywords: 1187, senate, all

Transcript Highlights:

• started farming My First Capital started farming My First Capital Investments<01:25:19.679> were
• it was also a capital it was also a capital investment<01:26:57.600> and<01:26:57.960>
• upfront exemptions for um Capital upfront exemptions for um Capital Equipment<01:27:04.199> that
• fair uses to support its capital fair uses to support its capital Investments<01:43:00.719> and
• <01:49:15.239> projects engage in additional capital projects engage in additional capital

Keywords: 1187, senate, all

Transcript Highlights:

• So in 2015, we did a groundbreaking ceremony here in Florida and committed to $300 million in capital
• That round was co-led by a California-based venture capital firm called Initialized, which was founded
• by Gary Tan, who also founded Y Combinator, and a New York City-based firm called B Capital, which has
• On leveraging private capital, as I mentioned, not only the Spaceport Improvement Program, but if you
• Although we are the launch capital of the world, I want to ensure that our workforce has a significant

Summary: The committee on Military, Veterans Affairs, Space, and Domestic Security met with a quorum present and heard a series of presentations focused on Florida’s space and aerospace industry. Blue Origin’s Anna Spencer described the company’s Florida operations at Rocket Park, including New Glenn manufacturing and launch activities, Blue Moon lunar lander work, workforce development, and recent booster recovery and launch milestones. Amazon’s Beth Cooley presented an update on Amazon Leo (formerly Project Kuiper), outlining the satellite broadband network, customer terminals, dark skies mitigation efforts, Florida facilities and jobs, and launch plans; members asked about RV/mobile applications, satellite counts, and the role of fiber, but no action was taken. Starcatcher Industries CEO Andrew Rush then described his company’s effort to create an orbital energy grid that beams power to satellites to extend mission life and increase available power, citing demonstrations in Jacksonville and Cape Canaveral and plans for a first satellite launch next year. Space Florida CEO Rob Long gave a strategic update on the state’s aerospace sector, citing billions in private investment, hundreds of projects in the pipeline, the leverage of state spaceport funding, workforce and university programs, and the need for additional tools and infrastructure to keep Florida competitive. He emphasized growth in launch activity, manufacturing, research, and military support infrastructure, and said Space Florida would bring forward legislative proposals. Kennedy Space Center Director Janet Petro delivered the strongest policy message of the meeting, warning that KSC’s aging infrastructure and relatively smaller NASA budget share could cause Florida to lose aerospace leadership to states like Texas unless the state strengthens its partnership, research investment, and infrastructure support. Members questioned her about federal restrictions on commercial investment in common-use infrastructure, the need for more state-federal alignment, and how Florida can preserve its role as the launch capital of the world. After the presentations and questions, Senator Burgess moved to adjourn, there was no objection, and the committee adjourned.

Transcript Highlights:

• So it's like that secure demand, and then you can bring private capital in to do the supply.
• will follow, I'd love to see private capital say hydrogen has been adopted by ports, by fleets, by the
• I'm just trying to get to whether or not there's some more natural triggers to the capital investment
• But it's tough to find private capital. Private capital has what I like to call green fatigue.
• But it's tough to find private capital. Private capital has what I like to call green fatigue.

Keywords: 987, senate, all

Summary: The Senate Select Committee on Hydrogen Energy held an informational hearing on California’s hydrogen leadership, with Chair Bob Archuleta framing hydrogen as a complementary clean-energy pathway for hard-to-electrify sectors and emphasizing the need for balanced policy, community benefits, and strategic use of public funds. The first panel of private-sector witnesses from the California Hydrogen Business Council, Bosch, Hyundai, and Sierra Northern Railway described existing deployments in buses, trucks, rail, ports, and industrial uses, and argued that the technology is commercially ready but needs stable policy, faster permitting, stronger demand signals, and more infrastructure. They highlighted projects such as Hyundai’s NorCal Zero freight trucks, Bosch’s hydrogen components and refueling technology, and Sierra’s hydrogen switcher locomotive, while also noting major cost barriers, especially for fuel and equipment, and the need for continued state incentives and coordinated infrastructure planning. Committee members focused on labor standards, community engagement, and the current scale of hydrogen vehicles and fueling infrastructure. Witnesses said they work with labor groups, building trades, and safety organizations, and that early community involvement and first-responder training are important. In response to questions, panelists estimated roughly 15,000 to 16,000 light-duty fuel cell vehicles in California, around 100 hydrogen trucks, and growing bus deployment, with South Korea cited as having much larger fleets. They also discussed hydrogen fuel costs, with one rail operator saying delivered fuel had fallen from more than $60 per kilogram to about $35 per kilogram but would need to drop below $10 per kilogram for broad commercial viability. CARB’s incentive and regulatory programs, including heavy-duty vehicle subsidies and low-carbon fuel standards, were described as important supports, though federal tax credit changes and uncertainty were said to be slowing progress. The second panel addressed hydrogen’s public-health, air-quality, and climate role. CAPCOA, the Coalition for Clean Air, the building trades, and a UC Berkeley researcher argued that hydrogen should be used selectively in the most polluted, diesel-heavy settings such as ports, freight corridors, rail yards, transit depots, and backup power for data centers. They stressed that fuel cell applications provide zero tailpipe emissions, but cautioned that hydrogen produced from fossil fuels or used in combustion rather than fuel cells reduces the environmental benefit. The UC Berkeley witness presented modeling suggesting large reductions in NOx and particulate exposure, with significant avoided premature deaths and health savings if hydrogen displaces diesel in heavy-duty sectors. Panelists also urged that hydrogen not delay direct electrification, that environmental justice be central to deployment, and that infrastructure and safety planning include community engagement and measurable local benefits. The final panel featured public-sector updates from SamTrans, the Governor’s Office of Business and Economic Development, the Port of Long Beach, and the First Public Hydrogen Authority. SamTrans described its transition of more than 300 buses to battery-electric and hydrogen fuel cell buses, including a large order of 108 hydrogen buses, but said the loss of expected ARCHES funding created a major gap for fueling infrastructure and that state support is needed for grants, tax exemptions, and axle-weight rule changes. GoBiz said the federal cancellation of ARCHES funding disrupted the market, but that private capital remains available if demand and cost-reduction signals are strong; it pointed to permitting streamlining and targeted state action as key next steps. The Port of Long Beach reported 106 hydrogen fuel cell trucks in port drayage, a $10 million hydrogen truck grant program, and a request for proposals for a public fueling station, while warning that high costs, fuel shortages, and the Colton incident have slowed momentum. First Public Hydrogen Authority described efforts to aggregate municipal demand, support green hydrogen production projects, and create long-term market certainty for suppliers and off-takers. Committee members repeatedly pressed witnesses on where state funding should go next, with several suggesting that near-term support for transit fleets, fueling infrastructure, and targeted high-impact corridors would be the most effective way to keep hydrogen deployment moving.

Transcript Highlights:

• Sometimes it's capital requests, sometimes it's general funds, special supplemental.
• Slightly off topic for this committee, but I've included some capital issues.
• Go to capital. We only need one way, but we kind of end up in this funny in-between space.
• Then we can actually deploy the capital.
• And we're going to move in that direction in capital outlay.

Transcript Highlights:

• bus uh to estimate uh onetime capital bus uh to estimate uh onetime capital savings.
• So capital the operating costs of this.
• So capital capital<00:40:13.839> buildout<00:40:14.320> would<00:40:14.560> be<00
• But just a note on the capital piece.
• interesting idea about is capital interesting idea about is capital included<00:53:54.640> in

Keywords: 919, house, all

Summary: The committee heard a Met Council report from Charles Carlson on high-subsidy transit route analysis required by the transportation bill. Carlson explained that the study uses per-passenger operating subsidy, compares routes by type and service day, and is intended to help providers improve cost-effectiveness while recognizing transit’s importance for access, affordability, safety, and the region’s economy. He noted that routes more than 60% above peer averages are considered the highest-subsidy tier, and that the report also estimates the cost of Metro Mobility associated with those routes. Members asked several questions about why contracted service can cost less than directly operated service, whether contracting affects wages, union membership, or service quality, and why the Met Council targets about 20% of regular route service for contracting. Carlson said contracted service can be cheaper because of lower overhead and other market factors, that the council sets minimum wage and service-quality requirements in contracts, and that customers should not notice a quality difference. He also said the 20% target is meant to balance cost-effective service, geography, and a mix of providers, and that some routes may become more cost-effective with more frequent service depending on local demand. Carlson reported that in 2024, 206 of 264 routes met guidelines, 16 were in the lowest intervention tier, 14 in the middle tier, and 28 were in the highest-subsidy tier. He said the regional share of high-subsidy service was about 4.1%, but the share varied widely by provider, with some at 0% and others much higher. He estimated that discontinuing the highest-subsidy routes would save about $23 million annually and up to $72 million in capital costs. For Metro Mobility, he said the cost associated with trips tied to high-subsidy routes rose from about $368,000 in 2023 to about $6.1 million in 2024, largely because the mix of routes triggering federally mandated paratransit service changed, especially in the Shakopee area.

Transcript Highlights:

• These CDFIs make loans and expand access to capital for small businesses that are primarily Black-and-brown
• Access Plus Capital has developed over 2,000 loans totaling $65 million.
• we commissioned, we found that there is over a $3 billion gap between the credit requested and the capital
• I was a board member of Access Plus Capital previously, so I understand very intimately the issues of
• accessing capital for small businesses and communities like mine.

Keywords: 988, house, all