DATE: 05/20/2026
TO: Honorable Mayor and City Council Members
FROM: Public Works Department
2026-181
REQUEST FOR CITY COUNCIL ACTION
SUBJECT:
RESOLUTION AUTHORIZING THE FILING OF AN APPLICATION FOR LOW-CARBON
TRANSIT OPERATIONS PROGRAM FUNDS WITH THE CALIFORNIA DEPARTMENT
OF TRANSPORTATION
EXECUTIVE SUMMARY:
This staff report asks the City Council to adopt Resolution No. 2026-037, authorizing the execution and submittal of a funding application under the Low Carbon Transit Operations Program with the California Department of Transportation.
RECOMMENDED ACTION:
That the City Council adopt Resolution No. 2026-037, authorizing the execution of the Certifications and Assurances and Authorized Agent forms for the Low Carbon Transit Operations Program (LCTOP) with the California Department of Transportation for the fare subsidy program in the amount of $264,972.
BACKGROUND & HISTORY:
In 2014, California Legislature, Senate Bill 862 (SB 862), established the Transit, Affordable Housing, and Sustainable Communities Program, and appropriated proceeds in the Greenhouse Gas Reduction Fund (GGRF) for the Low Carbon Transit Operations Program (LCTOP). This program was established as a formulaic program that is apportioned five percent of the annual auction proceeds of the GGRF in accordance with Sections 99313 and 99314 of the Public Utilities Code (PUC).
LCTOP is one of several programs in the Transit Affordable Housing and Sustainable Communities Program. It was created to provide operating and capital assistance to eligible recipients with the goal of reducing greenhouse gas emissions and improving mobility with an emphasis on serving disadvantaged communities. Eligible recipients include transportation planning agencies and transit operators eligible for State Transit Assistance funds. The City of Corona is an eligible recipient and may receive state funding from the LCTOP for transit projects.
ANALYSIS:
The City of Corona Transit Service (CCTS) has been utilizing LCTOP funds to reactivate the ridership lost during the pandemic by providing free fares to all riders. Since the launch of this program in February 2022, ridership on the Corona Cruiser, fixed-route service, has surpassed pre-Covid numbers, and Dial-Ride service continues to slowly recover.
DAR ridership is at 88% pre-COVID numbers.
The funding for the current fare subsidy program, utilizing FY 22/23 allocation was approved on April 4, 2023, for a three-year fare subsidy program ending on June 30, 2026. Through this subsidy program, free fares were provided to students, seniors, and persons with disabilities on the Corona Cruiser (fixed routes) and on Dial-A-Ride, and a reduced fare of $1.00 for the general public on Corona Cruiser.
Staff had intended to use FY 25/26 LCTOP allocation to continue this fare subsidy for students, seniors, and persons with disabilities for FY 26/27. However, the FY 25/26 allocation was delayed, and funds for this allocation will not be available until late FY 26/27; therefore staff is applying for these funds to be used in Fiscal 27/28.
To compensate for the delay in FY 25/26 LCTOP funding, Riverside County Transportation Commission (RCTC) is allowing transit operators to utilize their operating funds towards providing fare subsidy for FY 26/27. Therefore, for FY 26/27, Local Transportation Funds will be utilized to continue the free fares for students, seniors, and persons with disabilities. In addition, AB2766 Subvention funds will be used to provide the reduced fare of $1.00 to the general public (discounted from $1.75). Thus, the city will be able to continue the current fare subsidy program through June 30, 2028, by utilizing LTF, AB2766, and FY 25/26 LCTOP Cycle A & Cycle B funds. This funding request parallels the City’s FY 26/27 through FY 28/29 Short Range Transit Plan.
To receive this funding, the City must submit an Allocation Request package for an eligible project to the California Department of Transportation. Eligible activities include:
1. Enhance or expand transit service by supporting new or expanded bus or rail services, new or expanded water-borne transit, or expanded intermodal transit facilities, and may include equipment acquisition, fueling, and maintenance, and other costs to operate those services or facilities.
2. Operational expenditures that increase transit mode share.
3. Purchase of zero-emission buses, including electric buses, and the installation of the necessary equipment and infrastructure to operate and support these zeroemission buses.
Additionally, the project must meet the following criteria:
1. Support at least one of the above-listed eligible projects.
2. Reduces greenhouse gas emissions.
3. Must be located in, or provide benefits to, low-income households, low-income communities, and/or a disadvantaged community defined by the California Environmental Protection Agency (CalEPA).
4. Increase ridership for projects related to increasing transit mode share.
Based on the State’s guidelines and the eligible activities and criteria listed above, staff is applying for FY 25/26 LCTOP Cycle A funds for operating assistance in the form of a fare subsidy program for FY 27/28 as follows:
1. Free fares for students on the Corona Cruiser.
2. Free fares for seniors and persons with disabilities on both the Corona Cruiser and Dial-A-Ride.
Total cost for the above program is estimated at $314,055, of which Cycle A will fund $264,972. Once Cycle B becomes available, staff will submit another allocation request for the remaining $49,083.
This program will support the City’s efforts to increase ridership and reduce GHG emissions. This program is also supported by RCTC staff. To ensure timely submittal by the due date of April 28, 2026, staff has already submitted the allocation request with draft supporting documents. If approved by the Council, staff will follow with the approved and adopted City Resolution No. 2026-037 and supporting documents. A complete copy of the resolution and allocation request signature package are attached as Exhibit 1 and 2, respectively, to this staff report.
With the concurrence of our RCTC partners, staff seeks Council approval of the FY 25/26 LCTOP allocation request for the proposed fare subsidy program and adoption of Resolution 2026-037.
FINANCIAL IMPACT:
Under the PUC 99314, the City has been apportioned a direct $4,972 of FY 25-26 LCTOP funds. Per PUC 99313, the additional $260,000 will be contributed to Corona’s fare subsidy program by Riverside County Transportation Commission.
The FY 25-26 LCTOP Cycle A will provide $264,972 of the $314,055 needed for the oneyear of fare subsidy, starting July 1, 2027, through June 30, 2028. Staff will submit another allocation request for Cycle B for the remaining $49,083.
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action merely adopts the resolution approving the fare subsidy program. There is no possibility that this action will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: SUDESH PAUL, TRANSIT PROGRAM MANAGER
REVIEWED BY: SAVAT KHAMPHOU, PUBLIC WORKS DIRECTOR
ATTACHMENTS:
1. Exhibit 1 – Resolution No. 2026-037
2. Exhibit 2 – LCTOP FY 25-26 AR Signature Pages