8E
Date: March 3, 2026
To: Honorable Mayor and Members of the City Council
From: Kimberly Turner, Transit Director
By: Ryan Plumb, Senior Business Manager | [email protected] Subject: Transit – Approve Los Angeles County Regional Zero Emission Transit Capital Program Memorandum of Understanding with Los Angeles County Metropolitan Transportation Authority. Expenditure: None.
RECOMMENDATION
Recommendation of the Transit Director that City Council approve a Memorandum of Understanding with the Los Angeles County Metropolitan Transportation Authority (LACMTA) for the Los Angeles County Regional Zero Emission Transit Capital Program (ZETCP).
FUNDING
None required.
DISCUSSION
On September 26, 2024, the Los Angeles County Metropolitan Transportation Authority (LACMTA) Board approved the advancement of an allocation of $49.84 million in Proposition C 40% Discretionary funds for eligible transit operators. However, due to state budget cuts, the funding allocations were reduced. On June 26, 2025 the Metro Board approved the revised ZETCP-equivalent fund allocations from $49.84 million to $18.5 million to the eligible operators.
If additional funding becomes available, the MOU allows for amendments if further adjustments are made. The revised ZETCP allocation per the state budget reduction for Torrance Transit is $903,127.
The funds provided through SB 125 ZETCP provides flexibility for operators to use the approved funds to fund transit operating and/or capital improvements. Eligible projects include capital zero- emission bus purchases or charging infrastructure, and transit operations expenditures. Eligible projects must demonstrate that they will achieve a reduction in greenhouse gas emissions. To qualify for bus capital funding, the operator must participate in Metro’s SB 125 Regional Bus Procurement Program (or commensurate procurement for certified zero-emission vehicle types).
Additionally, for agencies using the funds for operations, 100% of outstanding COVID Recovery Formula Funds including American Rescue Plan Act (ARPA) and Coronavirus Response & Relief Supplemental Appropriations (CRRSA) Act funding must be drawn down first.
Attachment A of this staff report is the revised MOU for the ZETCP funds from June 26, 2025, through June 30, 2028.
1 City Council
March 3, 2026
ATTACHMENT
1. Memorandum of Understanding to Allocate Proposition C 40% Discretionary Funds for the Los Angeles County Regional Zero Emission Transit Capital Program (ZETCP) 2 3
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