SB 125 PROGRAM COOPERATIVE AGREEMENT
THIS SB 125 PROGRAM COOPERATIVE AGREEMENT ("Agreement") is made and entered into on _____________________, by and between the [CITY OF PORTERVILLE / CITY OF VISALIA / TULARE COUNTY REGIONAL TRANSIT AGENCY] ("SPONSOR") and the TULARE COUNTY ASSOCIATION OF GOVERNMENTS, acting as the Regional Transportation Planning Agency for Tulare County ("TCAG"). SPONSOR and TCAG are each a “Party” and together are the “Parties” to this Agreement, which is made with reference to the following:
RECITALS
WHEREAS, TCAG and SPONSOR desire to enter into an Agreement for funding of transit capital improvements and/or operational costs in Tulare County pursuant to the authority provided by the State of California’s Budget Act of 2023 SB 125 Program Formula-Based Transit and Intercity Rail Capital Program & Zero Emission Transit Capital Program (“SB 125 Program”); and WHEREAS, SPONSOR desires to receive SB 125 Program funding from TCAG for transit capital improvement projects and/or operational costs ("Projects") to be developed and/or identified by SPONSOR; and, WHEREAS, TCAG is authorized under the SB 125 Program to disburse SB 125 Program funds to SPONSOR in accordance with the “Final Guidelines” promulgated as of September 29, 2023 for the SB 125 Program by the California State Transportation Agency, as those “Final Guidelines” may be amended or supplemented from time-to-time (the “SB 125 Program Guidelines”).
NOW, THEREFORE, the Parties represent, covenant and agree as follows:
AGREEMENT
This Agreement shall have no force or effect with respect to a specific Project unless and until a project-specific Program Supplement to this Agreement (a “Program Supplement”) has been fully executed by both TCAG and SPONSOR.
SECTION I
Covenants of SPONSOR
1.1 Compliance with SB 125 Program Requirements. SPONSOR agrees to abide by the terms and conditions of TCAG as set forth herein for the receipt of SB 125 Program funds and to comply with the SB 125 Program Guidelines (Appendix); and TCAG’S adopted SB 125 Program Polices and Procedures, if any, as well as any subsequent amendments or updates thereto.
1.2. Project Application.
1.2a. Transit Capital Improvement and/or Operational Costs Projects - The complete Project description, scope of work, delivery schedule, estimate of cost by activity, anticipated amount and type of funds that will supplement SB 125 Program funds, and the anticipated timing for release of SB 125 Program funds shall be specified in SPONSOR’S application for SB 125 Program funds and approved by TCAG. Such an application is in addition to any annual transit expansion or equivalent plan or application that SPONSOR may be required to submit to TCAG in order to receive Measure R or other transit planning, operational, or capital improvement funds.
1.3. Project Scope. A Project scope of work or any change to such may not be implemented until it has been approved by TCAG in accordance with the SB 125 Program Guidelines.
1.4. Eligible Reimbursement Costs. Eligible reimbursement costs shall be costs as specified in the SB 125 Program Guidelines or as may be approved from time to time by TCAG pursuant to Section 1.2. In no event shall expenses incurred prior to the execution of this Agreement be considered eligible reimbursement costs.
1.5. SB 125 Program Percentage Share Defined. For this Agreement, the SB 125 Program percentage share of eligible costs shall be as set forth in the approved application for the specific Project.
1.6. Invoices and Progress Reports. Starting one month after the execution of this Agreement, SPONSOR shall provide TCAG with quarterly progress reports concerning the Project. SPONSOR shall provide invoices no less than monthly for activities conducted over the prior unbilled month. These documents shall include the following specified information:
1.6.a. SPONSOR’S Staff Expenses. SPONSOR may include in the invoice direct staff expenses for the eligible costs of the Project.
1.6.b. Copies of Consultant Invoices. SPONSOR shall provide TCAG with one (1) copy of all invoices submitted to SPONSOR by every consultant, subconsultant, contractor, or subcontractor performing work related to the Project.
1.6.c. Progress Reports. The quarterly progress reports shall include a brief description of the status of the Project and the work completed to date. This summary may be included on the invoices submitted to TCAG or be attached to those invoices.
1.6.d. Deadline to Submit Reimbursement Requests. All invoices and progress reports shall be submitted to TCAG on or before 5:00 p.m. on the tenth (10th) calendar day of the month in which SPONSOR requests reimbursement payments. TCAG shall issue reimbursement payments to SPONSOR on or before the last day of the month for all timely submittals.
1.6.e. Late Submittals. If SPONSOR fails to submit documents to TCAG as set forth in Section 1.5.d, above, then TCAG shall provide reimbursement payments for late submittals in the following calendar month.
1.7. Use of Funds. SPONSOR shall use SB 125 Program funds consistent with the Project scope of work approved by TCAG pursuant to Section 1.2.
1.8. Submittal of Documents. SPONSOR shall provide copies to TCAG of all executed contracts which relate to the Project scope approved by TCAG pursuant to Section 1.2. SPONSOR shall retain records pertaining to the Project for a four (4) year period following completion of the Project.
1.9. Completion of Project. SPONSOR shall be responsible for the timely completion of construction and provide management of consultant and contractor activities, including responsibility for schedule, budget and oversight of the services, consistent with the scope of work.
1.9.a. Letter of Project Completion. SPONSOR shall provide TCAG with a letter of Project completion which includes final cost, revenues, and schedule of activities. This letter shall accompany the final invoice for payment from SPONSOR to provide notice of Project account closing by TCAG.
1.10. Provision of Signs. SPONSOR shall install SB 125 Program signs approved and/or required by TCAG. SB 125 Program Signs shall be posted at locations agreed upon by TCAG and SPONSOR.
1.11. Cost-Savings and Excess Costs.
1.10.a. Definition of Cost Savings. After a Project has been accepted by SPONSOR as complete, any positive difference between the total Project cost, as approved by TCAG pursuant to Section 1.2, and the total amount invoiced to TCAG shall be considered Project cost savings.
1.11.b. Cost Savings. If, according to the most recently amended SB 125 Program Guidelines, the Projects are not segments of a larger project, or if all other segments of the larger project have been completed, then TCAG shall allocate the SB 125 Program share according to the Adopted Policies and Procedures, if any.
1.11.c. Segmented Projects. If, according to the most recently amended SB 125 Program Guidelines, the Project is a segment of a larger project and other segments have not been completed, then TCAG shall allocate the SB 125 Program share (as specified in Section 1.4) of these cost savings to the uncompleted segment(s) of the larger project.
1.11.d. Excess Costs: If the actual total Project costs exceed the estimate approved by TCAG, then this amount will be considered an excess cost.
1.11.e. Reconciliation of Excess Costs: If the costs to complete the Project exceed the total amount of funds programmed, SPONSOR will be fiscally responsible for the full amount of excess costs associated with SPONSOR’S Project, unless otherwise agreed by the Parties pursuant to Section 2.4.
1.12. Provision of Groundbreaking and Ribbon Cutting Ceremonies. SPONSOR shall be responsible for groundbreaking ceremonies and ribbon cutting ceremonies, if any, related to their Project(s) and as determined necessary by TCAG and SPONSOR. SPONSOR may contract either or both ceremonies through private consultants. Any such ceremonies shall be coordinated with the Public Relations Officer of TCAG. The costs of all ceremonies will be an expense of the Project.
SECTION II
Covenants of TCAG
2.1 SB 125 Program Funds. TCAG agrees to disburse SB 125 Program funds for the costs of SPONSOR’S Project(s) according to the terms and conditions set forth herein, and to comply with the SB 125 Program Guidelines and; and TCAG’S adopted SB 125 Program Polices and Procedures, if any, as well as any subsequent amendments or updates.
2.2. Reimbursement Payments. TCAG shall make reimbursement payments to SPONSOR for eligible Project costs as specified in the SB 125 Program Guidelines and subsequent updates of the SB 125 Program Guidelines. To receive monthly reimbursement payments for work completed on the Project, SPONSOR shall comply with the following reimbursement procedures:
2.2.a. Ineligible Costs. The TCAG reserves the right to adjust current or future reimbursement payments to SPONSOR if an invoice includes ineligible costs.
2.2.b. Reimbursement Amount. The amount of reimbursement payments to SPONSOR shall be made pursuant to the SB 125 Program Guidelines.
2.2.c. Suspension of Reimbursement. TCAG shall timely pay or reimburse SPONSOR for all undisputed cost items. Reimbursement payments for the item(s) in question shall be suspended without interest when a dispute arises as to whether or not a cost item(s) is eligible for reimbursement.
2.2.c. (1) Meeting. If a dispute over reimbursement or payment occurs, then TCAG shall arrange a meeting between TCAG and SPONSOR to discuss and attempt to resolve the dispute. If the invoice was received on or before 5:00 p.m. on the 10th day of the month (or if the 10th is not a business day, then the next business day), then the meeting shall be held no later than the 20th day of the same month. If the invoice was received after this date and time, then the meeting shall be held no later than the 20th day of the following month.
2.2.c. (2) Technical Advisory Committee. If an agreement cannot be reached at the meeting referenced above, then SPONSOR or TCAG shall have the option to take the dispute to TCAG’S Technical Advisory Committee, with the understanding that by doing so the payment or reimbursement for the disputed cost item(s) will be delayed until a resolution of the matter is reached.
2.2.c. (3) Governing Board Decision. If SPONSOR or TCAG disagrees with the dispute resolution proposed by the Technical Advisory Committee, then the dispute shall be submitted to TCAG Governing Board for final resolution. Reimbursement or payment for the disputed cost item(s) will be further delayed until a resolution of the matter is reached by the TCAG Governing Board. If the TCAG Governing Board determines that the disputed cost item(s) is ineligible for payment or reimbursement, then TCAG shall not provide reimbursement or payment to SPONSOR for the disputed item(s). If the TCAG Governing Board determines that the disputed cost item(s) is eligible for payment or reimbursement, in whole or in part, then TCAG promptly shall provide reimbursement or payment to SPONSOR for such portion of the disputed cost. The decision of the TCAG Governing Board shall be considered to be final for administrative purposes and not subject to reconsideration or further administrative appeal or review.
2.2.c. (4) Reservation of Rights. By utilizing the above procedures, SPONSOR does not surrender any rights to pursue available legal remedies if SPONSOR disagrees with a TCAG Governing Board decision.
2.2.d. Acceptance of Work Does Not Result In Waiver. Reimbursement payments shall not result in a waiver of the right of TCAG to require fulfillment of all terms of this Agreement.
2.3. Right to Conduct Audit. TCAG shall have the right to conduct an audit of all SPONSOR’S records pertaining to Projects at any time during the four (4) year period after completion of the Projects.
2.4. Reconciliation of Excess Costs. If the costs to complete a Project exceed the total amount of funds programmed, then TCAG may, by further agreement with SPONSOR, agree to provide additional SB 125 Program or other funding for the Project.
SECTION III
Mutual Covenants
3.1. Release of liability. SPONSOR hereby releases TCAG from any liability to SPONSOR regarding TCAG’S administration and issuance of the SB 125 Program funds, except for any breach of TCAG’S fiduciary duty as set forth in the SB 125 Program Guidelines.
3.2. Term. This Agreement shall remain in effect until discharged or terminated as provided in Section 3.3 or Section 3.15.
3.3. Discharge. This Agreement shall be subject to discharge as follows:
3.3.a. Termination by Mutual Consent. This Agreement may be terminated between SPONSOR and TCAG at any time by mutual consent of SPONSOR and TCAG. If this Agreement is mutually terminated by the Parties, then SPONSOR will no longer receive SB 125 Program funds unless a new agreement between SPONSOR and TCAG is formed.
3.3.b. Discharge Upon Completion of Project. Except as to any rights or obligations which survive discharge as specified in Section 3.14 below, this Agreement shall be discharged, and the Parties shall have no further obligation to each other, upon completion of all of SPONSOR’S projects as certified by TCAG.
3.4. Indemnity. It is mutually understood and agreed, relative to the reciprocal indemnification of TCAG and SPONSOR:
3.4.a. Indemnity. SPONSOR shall fully defend, indemnify and hold harmless TCAG, and any officer or employee of TCAG, against any damage or liability occurring by reason of anything done or omitted to be done by SPONSOR under the Agreement and related to SPONSOR’S Project(s). It is also fully understood and agreed that, pursuant to Government Code Section 895.4, SPONSOR shall fully defend, indemnify and hold TCAG harmless from any liability imposed for injury as defined by Government Code Section 810.8 occurring by reason of anything done or omitted to be done by SPONSOR under this Agreement or in connection with any work, authority, or jurisdiction delegated to SPONSOR under this Agreement.
3.4.b. Indemnity. TCAG shall fully defend, indemnify and hold harmless SPONSOR, and any officer or employee of SPONSOR, against any damage or liability occurring because of anything done or omitted to be done by TCAG under or in connection with any work, authority or jurisdiction delegated to TCAG under the Agreement and related to SPONSOR’S Project(s). It is also understood and agreed that, pursuant to Government Code Section 895.4, TCAG shall fully defend, indemnify and hold SPONSOR harmless from any liability imposed for injury as defined by Government Code Section 810.8 occurring by reason of anything done or omitted to be done by TCAG under this Agreement or in connection with any work, authority, or jurisdiction delegated to TCAG under this Agreement.
3.5. Notices. Except as may be otherwise required by law, any notice to be given shall be written and shall be either personally delivered, sent by facsimile transmission or sent by first class mail, postage prepaid and addressed as follows:
TCAG: SPONSOR:
Executive Director [Title]
Tulare County Association of Governments [Agency name] 210 N. Church St. Ste B [Agency street address]
Visalia CA 93291 [City], CA [zip code]
Fax No.: 559-733 6720 Fax No.: [Fax #]
3.5.a. Notice personally delivered is effective when delivered. Notice sent by facsimile transmission is deemed to be received upon successful transmission. Notice sent by first class mail shall be deemed received on the fifth day after the date of mailing. Either Party may change the above address by giving written notice pursuant to this paragraph.
3.5.b. Either Party may change its address by giving notice of such changes to the other Party in the manner provided in this Section 3.5. All notices and other communications shall be deemed communicated as of actual receipt or after the second business day after deposit in the United States mail.
3.6. Additional Acts and Documents. Each Party agrees to do all such things and take all such actions, and to make, execute and deliver such other documents and instruments, as shall be reasonably requested to carry out the provisions, intent, and purpose of the Agreement.
3.7. Integration. This Agreement, together with any associated Program Supplement, represents the entire Agreement of the Parties with respect to the subject matter hereof. No representations, warranties, inducements or oral agreements have been made by either of the Parties except as expressly set forth herein, or in other contemporaneous written agreements.
3.8. Amendment. This Agreement may not be changed, modified or rescinded except in writing, signed by all Parties hereto, and any attempt at oral modification of this Agreement shall be void and of no effect.
3.9. Independent Agency. SPONSOR renders services under this Agreement as an independent agency and TCAG is also an independent agency under the Agreement. None of SPONSOR’S agents or employees shall be agents or employees of TCAG and none of TCAG’S agents or employees shall be agents or employees of SPONSOR.
3.10. Assignment and Delegation. The Agreement may not be assigned, transferred, hypothecated, or pledged by either Party, nor may either Party delegate its duties or responsibilities hereunder, without the express written consent of the other Party.
3.11. Binding on Successors. This Agreement shall be binding upon the successor(s), assignee(s) or transferee(s) of the Parties. This provision shall not be construed as an authorization to assign, transfer, hypothecate or pledge this Agreement or delegate duties or responsibilities hereunder, other than as provided above.
3.12. Severability. If any part of this Agreement is determined to be unenforceable, invalid, or beyond the authority of either Party to enter into or carry out, then such determination shall not affect the validity of the remainder of this Agreement which shall continue in full force and effect; provided that, the remainder of this Agreement can, absent the excised portion, be reasonably interpreted to give effect to the intentions of the Parties.
3.13. Counterparts. This Agreement may be executed in one or more counterparts and shall become effective when one or more counterparts have been signed by both of the Parties, each counterpart shall be deemed an original, but all counterparts together shall constitute a single document.
3.14. Survival. The following provisions in this Agreement shall survive discharge of the Agreement:
3.14.a. SPONSOR. As to SPONSOR, the following Sections shall survive discharge: Section 1.7 (obligation to apply funds to Project), Section 1.8 (obligation to provide copies and retain records), and Section 1.9 (obligation to continue to manage Project).
3.14.b. TCAG. As to TCAG, the following Section shall survive discharge: Section 2.3 (right to conduct audit).
3.14.c. All Parties. As to all Parties, the following Sections shall survive discharge: Section 3.3.b. (obligation which survives termination), and Section 3.4. (mutual indemnities).
3.15. Limitation. All obligations of TCAG under the terms of this Agreement are expressly contingent upon TCAG’S continued authorization to receive and expend the funds provided by the SB 125 Program. If for any reason TCAG’S right or ability to receive or expend such funds is terminated or suspended in whole or part so that it materially affects TCAG’S ability to fund a Project, then TCAG shall promptly notify SPONSOR, and the Parties shall consult on a course of action. If, after twenty‑five (25) working days, a course of action is not agreed upon by the Parties, then this Agreement shall be deemed terminated by mutual or joint consent of the Parties. Any future obligation to fund a Project or any other project or projects of SPONSOR, not already specifically covered by separate Agreement, shall arise only upon execution of a new Agreement therefor.
3.16. Time. Time is and shall be of the essence of this Agreement and each and all of its provisions in which performance is a factor.
3.17. Remedies Cumulative. No remedy or election of remedies provided for in this Agreement shall be deemed exclusive but shall be cumulative with all other remedies at law or in equity. Each remedy shall be construed to give the fullest effect allowed by law.
3.18. Applicable Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of California. The Parties agree that this contract is made in and shall be performed in Tulare County, California.
3.19. Captions. The captions in this Agreement are for convenience only and are not a part of this Agreement. The captions do not in any way limit or amplify the provisions of this Agreement and shall not affect the construction or interpretation of any of its provisions.
3.20. No Continuing Waiver. The waiver by either Party of any breach of any of the provisions of this Agreement shall not constitute a continuing waiver or a waiver of any subsequent breach of the same, or of any other provision of this Agreement.
3.21. No Rights in Third Parties. Nothing in this Agreement, express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any third party, nor is anything in this Agreement intended to relieve or discharge the obligation or liability of any third party to any Party to this Agreement, nor shall any provision of this Agreement give any third party any right of subrogation or action over or against any Party to this Agreement.
3.22. Exhibits and Recitals. The Recitals and Exhibits to this Agreement are fully incorporated into and are integral parts of this Agreement.
3.23. Signatory’s Warranty. Each Party warrants to each other that it is fully authorized and competent to enter into this Agreement in the capacity indicated by that Party’s signature below and agrees to be bound by this Agreement as of the day and year first mentioned above upon the execution of this Agreement by each other Party.
IN WITNESS WHEREOF, the undersigned Parties have executed this Agreement on the day and year first written above.
TULARE COUNTY ASSOCIATION OF GOVERNMENTS ATTEST:
By: ___________________________ By: ___________________________ Chair of TCAG TCAG Executive Director
Governing Board
[CITY OF VISALIA
By: __________________________ ATTEST:
Mayor
By: _________________________
APPROVED AS TO FORM: APPROVED AS TO FORM:
OFFICE OF TULARE COUNTY COUNSEL
By: __________________________ By: __________________________ Deputy Counsel for SPONSOR
Counsel for TCAG
JLK/10-21-2024/20241704/2259178.docx
APPENDIX
BUDGET ACT OF 2023
SB 125 FORMULA-BASED TRANSIT AND INTERCITY RAIL CAPITAL PROGRAM &
ZERO EMISSION TRANSIT CAPITAL PROGRAM
FINAL GUIDELINES
SEPTEMBER 29, 2023
SB125 FINAL GUIDELINES – FORMULAIC FUNDING
Contents
1 Authority and Purpose................................................................................................................................... 2 2 Objectives ...................................................................................................................................................... 3 3 Eligible Recipients and Funding Distribution................................................................................................. 4 4 Schedule ........................................................................................................................................................ 7 5 Eligible Projects.............................................................................................................................................. 8 6 Requirements for Funding Allocations ........................................................................................................ 11 7 Approval and Programming ........................................................................................................................ 20 8 Project Delivery and Reporting .................................................................................................................... 21 9 Project Administration................................................................................................................................. 22 Attachment 1: CCI Funding Guidelines for Administering Agencies................................................................... 23 Investments to Benefit Disadvantaged Communities and Low-Income Communities and Households ....... 23 Attachment 2: Quantification Methodology and Co-Benefit Assessment Methodology................................... 24 CCI Quantification and Reporting Materials ................................................................................................... 24 Attachment 3: Benefit Criteria Tables ................................................................................................................ 26 CCI Benefit Criteria Tables .............................................................................................................................. 26 1 Authority and Purpose
The Transit and Intercity Rail Capital Program (TIRCP) was created by Senate Bill (SB) 862 (Chapter 36, Statutes of 2014) and modified by SB 9 (Chapter 710, Statutes of 2015), to provide grants from the Greenhouse Gas Reduction Fund (GGRF) to fund transformative capital improvements that will modernize California’s intercity, commuter, and urban rail systems, and bus and ferry transit systems, to significantly reduce emissions of greenhouse gases, vehicle miles traveled, and congestion. The legislation of these bills is codified in Sections 75220 through 75225 of the Public Resources Code (PRC). Assembly Bill (AB) 398 (Chapter 135, Statutes of 2017) extended the Cap-and-Trade Program that supports the TIRCP from 2020 through 2030. SB 1 (Chapter 5, Statutes of 2017) continues to provide a historic funding increase for transportation with funds directed to the TIRCP from the Public Transportation Account (PTA).
AB 102 (Chapter 38, Statutes of 2023) and SB 125 (Chapter 54, Statutes of 2023) amended the Budget Act of 2023 to appropriate $4,000,000,000 of General Fund to the TIRCP over the next two fiscal years as well as $910,000,000 of GGRF funding and $190,000,000 of PTA funding over the next four fiscal years to establish the Zero-Emission Transit Capital Program (ZETCP). These guidelines are specifically developed to facilitate the award of these funds to projects in an expeditious manner.
These guidelines include elements of the policy, standards, criteria, and procedures for the development, adoption, evaluation and administration of the TIRCP last updated for Cycle 6 (which delivered its last tranche of funding for project awards in July 2023) but are unique to this particular cycle of TIRCP funding. In allowing the funds covered by these guidelines to be available for operating costs, the guidelines are also required to be aligned with the legislative intent described in subdivision (d) of Section 75226 of, and subdivision (f) of Section 75260, of the Public Resources Code. They will be further informed by input received through workshops, public comments and written responses to be received by September 14, 2023.
SB 125 provided additional direction with regards to the funding appropriated in the Budget Act of 2023. It created specific categories for funding as follows:
A) $3,995,000,000 over the next two fiscal years shall be distributed pursuant to a population-based formula to regional transportation planning agencies (RTPA) as defined in Section 7 of these guidelines. The bill authorizes RTPAs to use the moneys for high-priority transit capital projects consistent with the uses allowed in Cycle 6 of the TIRCP, which includes existing projects seeking to maintain or obtain federal or local funding commitments, project development for major projects that are seeking to enter or have already entered project development with federal partners, or for new TIRCP projects. As in Cycle 6, all capital projects must both increase ridership and reduce greenhouse gas emissions, in common with traditional TIRCP project requirements. The funding may also be used to fund transit operating expenses that prevent service cuts and increase ridership for operators within the RTPAs jurisdiction, subject to compliance with requirements and further detail described in Section 6 of these guidelines.
B) $1,100,000,000 over the next four fiscal years shall be for the establishment of the Zero-Emission Transit Capital Program (ZETCP) and requires funds under the program to be allocated to RTPAs pursuant to a population-based formula and another formula based on transit operator revenues within the jurisdiction of these RTPAs, as specified (the formula described is consistent with the current State Transit Assistance formula). The bill authorizes RTPAs to use the moneys for zero- emission transit equipment, including, but not limited to, zero-emission vehicles and refueling infrastructure and, subject to compliance with requirements described in Section 6 of these guidelines, to use those moneys to fund transit operating expenditures that prevent service reduction or elimination in order to maintain or increase ridership.
NOTE: Cycle 7 of TIRCP, funded with the regular GGRF and SB1 sources, is expected to be delayed approximately two months from its regular calendar, with a call for projects around December 1, 2023 and applications due around March 1, 2024. The proposed timeline reflects eligible applicant feedback and will allow applicants to incorporate the regional choices made under SB 125 when determining what to submit to the competitive TIRCP cycle. Based on this timeline, the Program of Projects would be announced around June 1, 2024. 2 Objectives
The TIRCP was created to fund transformative capital improvements that modernize California’s intercity rail, bus (including feeder buses to intercity rail services, as well as vanpool and micro transit services that are eligible to report as public transit to the Federal Transit Administration), ferry, and rail transit systems (collectively referred to as transit services or systems inclusive of all aforementioned modes unless otherwise specified) to achieve all of the following policy objectives, as codified in Section 75220(a) of the PRC:
1. Reduce emissions of greenhouse gases
2. Expand and improve transit service to increase ridership
3. Integrate the rail service of the state’s various rail operations, including integration with the high-speed rail system
4. Improve transit safety
Additionally, Section 75221(c) of the PRC codifies a programmatic goal to provide at least 25 percent of available funding to projects that provide a direct, meaningful, and assured benefit to disadvantaged communities, consistent with the objectives of SB 535. AB 1550 provides further requirements related to ensuring investments meet the needs of priority populations, a term used to cover disadvantaged communities, low-income communities and low-income households. Investments made by TIRCP are expected to collectively meet or exceed the requirements in AB 1550. Each RTPA will need to provide information related to its projects sufficient to determine the nature of priority population benefits; however, there is no minimum requirement that each project or RTPA needs to meet for the projects submitted.
Taken as a whole, the increases in transit system ridership, as well as the reduction in vehicle miles traveled, congestion and greenhouse gas emissions, will help deliver a healthier and safer transportation system. Investments are expected to position the state to lead in the deployment of cutting edge and zero emission technologies, test innovative strategies and new approaches to reducing transportation-related fatalities, provide important new capacity in corridors that support growth in jobs and housing, and to expand multimodal transportation access and options for all Californians across all regions of the state.
Further, as outlined in SB 125, which amended the Budget Act of 2023, it is the intent of the Legislature to:
(1) provide one-time multiyear bridge funding for transit operators to address operational costs until long-term transit sustainability solutions are identified (2) assist transit operators in preventing service cuts and increasing ridership (3) prioritize the availability of transit for riders who are transit dependent (4) prioritize transit agencies representing a significant percentage of the region’s ridership To that end, SB 125 specifies that the moneys appropriated in the Budget Act of 2023 may be used for high-priority transit capital projects within the project eligibility categories allowed under TIRCP in Cycle 6, and also for transit operating expenses for operators within the RTPAs jurisdiction. Further detail on the definition of transit operator is included in Section 3. 3 Eligible Recipients and Funding Distribution
The first year of funding for TIRCP and the ZETCP is already available for distribution once required materials are submitted and must be fully encumbered or expended and liquidated by CalSTA by June 30, 2028. FY23-24 funds for TIRCP and the ZETCP must be disbursed to RTPAs by this deadline. Once received by the RTPA there is no deadline for the expenditure of funds.
TIRCP funding will be allocated in both FY23-24 and FY24-25 to RTPAs according to a population-based formula after each recipient first receives $300,000 of base funding.
The $410 million of first year ZETCP funding (from both PTA and GGRF sources), as well as the $230 million for each of the succeeding three years (from GGRF only), will be allocated to RTPAs pursuant to a population-based formula and another formula based on transit operator revenues within the jurisdiction of these RTPAs. This formula matches the approach used to calculate State Transit Assistance distribution.
Eligible recipients of funding are the RTPAs, as defined in Section 13987(j) of the Government Code. The current eligible recipients based on that definition and initial fund estimates by expected recipient are as follows:
ABCDEFGRTPAYear 1 TIRCPYear 2 TIRCPYear 1 ZETCP (53.66% GGRF,
46.34% PTA)Years 2-4 ZETCP
(per yr, 100% GGRF)Grand Total
(B+C+D+(E*3))Maximum Admin
ShareMetropolitan
Transportation
Commission
$385,068,697
$386,040,188
$149,679,519
$83,966,559
$1,172,688,081
$5,000,000
Alpine County
Transportation
Commission
$360,641
$360,794
$6,740
$3,781
$739,518
$25,000
Amador County
Transportation
Commission
$2,336,465
$2,341,606
$218,158
$122,381
$5,263,373
$52,634
Butte County Association of Governments
$10,488,545
$10,514,269
$1,113,156
$624,454
$23,989,331
$239,893
Calaveras County
Local
Transportation
Commission
$2,576,611
$2,582,360
$238,532
$133,811
$5,798,936
$57,989
Colusa County Local Transportation Commission
$1,402,047
$1,404,830
$119,153
$66,842
$3,126,556
$31,266
Del Norte County
Local
Transportation
Commission
$1,675,501
$1,678,974
$149,752
$84,007
$3,756,247
$37,562
El Dorado County Local Transportation Commission
$9,085,857
$9,108,041
$971,781
$545,145
$20,801,115
$208,011
Tahoe Regional
Planning Agency
$5,753,283
$5,767,052
$596,916
$334,855
$13,121,818
$131,218
Fresno County
Council of
Governments
$51,406,113
$51,535,149
$6,249,069
$3,505,575
$119,707,058
$1,197,071
Glenn County Local
Transportation
Commission
$1,752,922
$1,756,591
$154,691
$86,778
$3,924,537
$39,245
Humboldt County Association of Governments
$7,130,906
$7,148,153
$825,047
$462,831
$16,492,599
$164,926
Imperial County
Transportation
Commission
$9,362,644
$9,385,526
$1,027,524
$576,416
$21,504,942
$215,049
Inyo County Local
Transportation
Commission
$1,259,080
$1,261,501
$99,284
$55,696
$2,786,952
$27,870
Kern Council of
Governments
$46,278,687
$46,394,777
$5,050,974
$2,833,473
$106,224,857
$1,062,249
Kings County
Association of
Governments
$7,982,701
$8,002,098
$827,175
$464,025
$18,204,049
$182,040
Lake County/City
Council of
Governments
$3,706,510
$3,715,111
$370,593
$207,894
$8,415,895
$84,159
Lassen County Local
Transportation
Commission
$1,829,937
$1,833,800
$165,103
$92,619
$4,106,698
$41,067
Los Angeles County
Metropolitan
Transportation
Authority
$498,650,905
$499,909,177
$119,494,973
$67,033,765
$1,319,156,350
$5,000,000
Madera County
Local
Transportation
Commission
$8,254,231
$8,274,315
$850,825
$477,292
$18,811,248
$188,112
Mariposa County
Local Transportation Commission
$1,161,396
$1,163,571
$91,799
$51,497
$2,571,256
$25,713
Mendocino Council
of Governments
$4,848,229
$4,859,713
$505,296
$283,459
$11,063,615
$110,636
Merced County
Association of
Governments
$14,669,424
$14,705,704
$1,558,919
$874,515
$33,557,593
$335,576
Modoc County
Local
Transportation
Commission
$739,160
$740,269
$49,336
$27,676
$1,611,794
$25,000
Mono County Local
Transportation
Commission
$976,126
$977,834
$171,629
$96,279
$2,414,427
$25,000
Transportation
Agency for
Monterey County
$22,218,449
$22,273,790
$2,975,692
$1,669,291
$52,475,803
$524,758
Nevada County
Local Transportation Commission
$5,416,406
$5,429,324
$554,558
$311,093
$12,333,568
$123,336
Orange County
Transportation
Authority
$160,108,526
$160,512,022
$22,473,788
$12,607,247
$380,916,076
$3,809,161
Placer County
Transportation
Planning Agency
$16,356,936
$16,397,478
$1,900,006
$1,065,857
$37,851,991
$378,520
Plumas County
Local
Transportation
Commission
$1,257,263
$1,259,680
$114,463
$64,211
$2,824,038
$28,240
Riverside County
Transportation
Commission
$123,382,700
$123,693,468
$14,828,290
$8,318,309
$286,859,385
$2,868,594
Sacramento Area
Council of
Governments
$100,321,824
$100,574,367
$13,907,018
$7,801,498
$238,207,702
$2,382,077
Council of San
Benito County
Governments
$3,609,072
$3,617,427
$348,002
$195,221
$8,160,164
$81,602
San Bernardino
County
Transportation
$110,856,746
$111,135,888
$13,864,934
$7,777,890
$259,191,238
$2,591,912
Authority
San Diego Association of Governments
$48,212,817
$48,333,791
$6,181,044
$3,467,415
$113,129,896
$1,131,299
San Diego
Metropolitan
Transit System
$118,515,843
$118,814,323
$17,265,263
$9,685,392
$283,651,604
$2,836,516
San Joaquin Council
of Governments
$39,935,609
$40,035,684
$5,031,810
$2,822,723
$93,471,271
$934,713
San Luis Obispo
Area Council of
Governments
$14,486,636
$14,522,455
$1,569,547
$880,477
$33,220,070
$332,201
Santa Barbara
County Association
of Governments
(SBCAG)
$22,796,994
$22,853,796
$2,916,400
$1,636,030
$53,475,278
$534,753
Santa Cruz County
Transportation
Commission
$13,771,188
$13,805,201
$2,649,968
$1,486,567
$34,686,060
$346,861
Shasta Regional
Transportation
Agency
$9,423,391
$9,446,427
$993,316
$557,226
$21,534,813
$215,348
Sierra County Local
Transportation
Commission
$463,183
$463,595
$17,533
$9,836
$973,818
$25,000
Siskiyou County
Local
Transportation
Commission
$2,515,009
$2,520,601
$239,061
$134,108
$5,676,994
$56,770
Stanislaus Council
of Governments
$28,068,044
$28,138,155
$3,037,849
$1,704,159
$64,356,526
$643,565
Tehama County
Transportation
Commission
$3,587,498
$3,595,798
$347,323
$194,840
$8,115,139
$81,151
Trinity County
Transportation
Commission
$1,109,747
$1,111,791
$86,567
$48,562
$2,453,791
$25,000
Tulare County
Association of
Governments
$24,305,505
$24,366,115
$2,748,056
$1,541,592
$56,044,453
$560,445
Tuolumne County
Transportation
Council
$3,094,210
$3,101,265
$296,569
$166,368
$6,991,148
$69,911
Ventura County
Transportation
Commission
$42,429,785
$42,536,157
$5,066,998
$2,842,463
$98,560,328
$985,603
Funding distributions will be only made to the above recipients, utilizing fund transfer instructions confirmed with CalSTA by the RTPA prior to transfer, which may in turn make funding available to public agencies in their jurisdiction. RTPAs have the discretion to suballocate or distribute funds within their region based on local needs, existing procedures, policies or priorities, as long as required SB 125 program requirements and goals are met, including addressing how operating needs are expected to be met with SB 125 and/or other resources.
For TIRCP and ZETCP capital projects, the RTPAs may distribute funding to public agencies eligible to receive TIRCP capital funding, including joint powers agencies, that operate or have planning responsibility for existing or planned regularly scheduled intercity or commuter passenger rail service (and associated feeder bus service to intercity rail services), urban rail transit service, or bus or ferry transit service (including commuter bus, vanpool, and micro transit services). Public agencies include local municipalities that operate transit service, construction authorities, transportation authorities, and other similar public entities created by statute. Please note that within such capital projects, with the exception of projects that are in the federal pipeline for major projects project development, the projects funded must result in construction being completed, as is required under traditional TIRCP funding.
For any spending on transit operations to prevent service reduction or elimination in order to maintain or increase ridership, or to otherwise increase ridership, the RTPAs may distribute funding to transit operators in their jurisdiction that are eligible to receive State Transit Assistance (STA) funding through Section 99314 at the time of distribution by the RTPA. Please note that preventing service reduction and elimination includes the broad variety of expenses required to provide service, including those related to ensuring safety and state of good repair of the vehicles and infrastructure.
RTPAs may also be the sponsor of capital and operating projects and may partner on projects with the agencies eligible to receive funding (such as doing a planning effort tied to making the underlying project more beneficial in a regional context upon implementation).
RTPAs must deposit funds into one or more dedicated bank accounts or custody accounts. Permitted investments include bank demand deposits consistent with California government code, government money market funds, U.S. Treasuries, U.S. Agency securities, California Local Agency Investment Fund (LAIF), and AAA public agency pools, to the extent permitted by RTPA policy and state statute. If a separate account is not possible, the agency may show documents of a line item or subaccount dedicated to SB 125 funds. Funds will be disbursed separately from each fund source supporting SB 125 (General Fund for TIRCP; PTA and GGRF for ZETCP) and identified as such when disbursed. RTPAs are responsible for tracking the receipt and utilization of these funds separately, and recording interest earned (or other investment income earned) on each fund source separately. The interest or investment earnings must also be spent on approved eligible projects within each program and will be accounted for when an agency submits its required Annual Report, as described in Section 9. When the recipient agency submits its Annual Report, they are required to submit a copy of their most recent bank statement. The additional spending made possible by interest or investment earnings shall be approved through submitting an Updated Program Allocation Request to CalSTA, which will approve such spending based on review of project eligibility.
RTPAs, transit operators and other public agencies expending SB 125 formula funding assume responsibility and accountability for the use and expenditure of allocated funds in accordance with these guidelines and applicable statutes. These agencies must also comply with all relevant federal and state laws, regulations, policies, and procedures. 4 Schedule
CalSTA Publishes 2023 SB 125 Guidelines
September 29, 2023
Optional, time-limited, focused virtual meetings for agencies to discuss and clarify program requirements (will be scheduled by request)* Initial Allocation Package Submittal Due
October 16-December 8, 2023
December 31, 2023
Regionally Compiled Transit Operator Data Due
Requested Funding Will be Allocated No Later Than
December 31, 2023
April 30, 2024
*Comments and requests for meetings can be submitted to:
HYPERLINK "mailto:[email protected]" \[email protected] 5 Eligible Projects
TIRCP Funding ($3.995 billion)
In order to be eligible for TIRCP capital project funding under this program, a capital project must demonstrate that it will achieve a reduction in greenhouse gas emissions using the relevant sections of the ZETCP Quantification Methodology. It must also demonstrate an increase in ridership.
As codified in Section 75221(a) of the PRC, projects eligible for funding under the program include, but are not limited to, the following:
1. Rail capital projects, including intercity rail, commuter rail, light rail, and other fixed guideway projects. Additionally, the acquisition of rail cars and locomotives, and the facilities to support them, that expand, enhance, and/or improve existing rail systems and connectivity to existing and future transit systems, including the high-speed rail system.
2. Intercity, commuter, and urban rail projects that increase service levels, improve reliability, or decrease travel times, infrastructure access payments to host railroads in lieu of capital investments, efforts to improve existing rail service effectiveness with a focus on improved operating agreements, schedules, and minor capital investments that are expected to generate increased ridership, as well as larger scale projects designed to achieve significantly larger benefits.
3. Rail, bus, and ferry integration implementation, including:
a. integrated ticketing and scheduling systems and related software/hardware capital investments (including, but not limited to, integration with bus or ferry operators and the use of contactless payment and General Transit Feed Specification (GTFS) implementation through Cal-ITP) b. projects enabling or enhancing shared-use corridors (both multi-operator passenger only corridors as well as passenger-freight corridors) c. related planning efforts focused on, but not limited to, delivery of integrated service not requiring major capital investment, such as transit route and schedule integration (or coordination) d. other multimodal and service integration initiatives, including active transportation and other access investments which increase transit and rail ridership and reduce greenhouse gas emissions
4. Bus rapid transit and other bus and ferry transit investments (including autonomous fixed guideway, vanpool, and micro transit services operated as public transit and first-/last-mile solutions), and to increase ridership and reduce greenhouse gas emissions. This includes large scale deployment of zero emission vehicles and the technologies to support them, and capital investments as a component implementing transit effectiveness studies that will contribute to restructured and enhancedservice.
Grade separations and grade crossing improvements on passenger rail corridors or related to transit projects are eligible, as they are under the discretionary TIRCP. In addition to providing safety benefits, these projects often provide certain roadway based (and sometimes rail related) greenhouse gas emission reductions and a small increase in ridership (tied to reductions in train delays and cancellations tied to incidents at the crossing, and sometimes speed increases that occur after crossings are improved or eliminated). In some cases, ridership increases from such projects are more significant if they are necessary to increase train frequency.
Projects related to mitigating the impacts on freight rail services that are caused by growth in passenger rail may also be eligible for TIRCP funding even if they are not directly on the passenger rail corridor.
Projects that link housing with key destinations and that improve accessibility to economic opportunities are also eligible for TIRCP funding.
Demonstration projects that are smaller-scale efforts with great potential to be expanded are eligible for funding.
Projects may include new approaches to attracting increased ridership such as smart phone mobile ticketing, contactless payment, or other software and hardware solutions to reduce ticketing transaction costs, or a test of a concept related to integrated ticketing, as well as intercity rail/transit effectiveness or operational planning as a component of the capital investments in improved, expanded and/or restructured service designed to cost-effectively increase ridership. Research, development, and testing of emerging technologies are eligible components. Clean fleet, facility and network improvement projects may also request funding for Zero Emission Mobility Programs, in lieu of Zero Emission Vehicle purchase, in compliance with Innovative Clean Transit Regulation Section 2023.5.
Many TIRCP applicants have met the requirements for reducing greenhouse gas emissions and increasing ridership through combining related capital investments that may individually address only one or the other benefit. Many TIRCP applicants have also augmented their chosen capital projects with key network integration planning studies that consider how to enhance the benefits of their projects (in connecting to other transit and rail systems), or planning efforts that consider a later phase of capital investment and the benefits it will bring to the current proposed project when constructed at a later date.
Agencies may apply to TIRCP Cycle 7 or later for projects that use SB 125 resources for new projects, either to complete project funding or to expand project scope; SB 125 funding will be counted as matching funds in future TIRCP discretionary grant applications. Additional guidance will be provided in the TIRCP Cycle 7 guidelines.
Additionally, RTPAs may suballocate funds to agencies in their jurisdiction so agencies may use this funding to support projects that have previously received a TIRCP award and require an additional infusion of resources to deliver the original scope. RTPAs may also allocate funding to any project awarded funds in Cycle 6 that pledged to use future TIRCP formula funds as match, in accordance with the direction provided in the Cycle 6 guidelines. RTPAs may assume that any funding from these SB 125 resources will help obtain or maintain funds from federal, state and local sources already committed to the projects, and document this benefit for their own projects, and require such documentation of benefits from project sponsors for other projects, in their Allocation Package submissions. Agencies shall state which project is seeking additional funds, identifying the Cycle 1 through 6 project, and whether the funding is needed for the full project scope or for a subcomponent.
RTPAs may suballocate funds to agencies in their jurisdiction so agencies may also use this funding for project development activities, similar to the “Major Projects Project Development Reserve” that was established in the Cycle 6 guidelines, including use of additional funding for projects that received funding for such projects in the Cycle 6 awards. While projects and programs of projects do not need to be ready for construction, agencies should identify how their project or program of projects will be eligible to apply for TIRCP construction funding in the future and what specific federal, state and other funding programs they are planning to utilize for construction funding. As in Cycle 6, such projects must either be pursuing Capital Investment Grant funding through the Federal Transit Administration (FTA) or be parht of the pursuit of Federal Railroad Administration funding through the Corridor Identification Program. Projects not pursuing federal funds for construction from FTA or planning to pursue FRA capital funding for construction through one of the Bipartisan Infrastructure Law programs are not eligible. Agencies may apply to TIRCP Cycle 7 or later for projects that use SB 125 resources for project development; SB 125 funding will be counted as matching funds in future TIRCP discretionary grant applications.
RTPAs that are themselves the capital project sponsor may also utilize funds for their own projects. RTPAs are also authorized to use TIRCP moneys, subject to compliance with requirements described in Section 6 of these guidelines, to fund transit operating expenses within its jurisdiction that prevent service cuts and increase ridership, including those related to ensuring safety and state of good repair of the vehicles and infrastructure necessary to operate service, as well as those that pay for free and reduced fare programs. Planning expenses related to implementation of ridership recovery and retention strategies are also eligible as operating projects, whether at the RTPA or STA-eligible transit operator level. RTPAs that are themselves the operator of transit services may also utilize funds for their own operations. Service planning necessary to experiment with, demonstrate or implement significant service modifications may be funded as an operating expenditure at either the RTPA or transit operator level.
ZETCP Funding ($1.1 billion)
Pursuant to SB 125, zero-emission transit equipment, transit facility and network improvement projects such as those that support replacing aging vehicle fleets with Zero-Emission Vehicles (ZEVs), and associated fueling or charging infrastructure or facility modifications, are eligible projects for the Zero-Emission Transit Capital Program (ZETCP). ZEVs include heavy- and light-rail vehicles, buses, and other ZEVs used for transit service. Clean fleet, facility and network improvement projects may also request funding for Zero Emission Mobility Programs, in lieu of Zero Emission Vehicle purchase, in compliance with Innovative Clean Transit Regulation Section 2023.5.
GGRF funds used on these projects (53.7% of the first year and 100% of years 2-4) will require submission of information described in the ZETCP Quantification Methodology, as expending GGRF funds requires benefits reporting. They also require compliance with the CARB Funding Guidelines applicable to all GGRF funding, including semi-annual benefits reporting and identification of benefits to priority populations.
ZETCP funding may also be used for transit operations expenditures that prevent service reduction or elimination in order to maintain or increase transit ridership, in accordance with the provisions described in Section 6 of these guidelines, including those related to ensuring safety and state of good repair of the vehicles and infrastructure necessary to operate service, as well as those that pay for free and reduced fare programs. Planning efforts necessary to implement one or more of the Innovative Clean Transit Plan efforts within the region, and planning expenses related to implementation of ridership recovery and retention strategies, may be programmed as an operating expense out of the PTA portion of funds disbursed to each RTPA, but must be requested in an Allocation Package submission covering the FY23-24 funding year.
A maximum of 1% of total multi-year SB 125 funding, or $5 million, whichever is lower, may be programmed by the RTPA for RTPA administration of SB 125 funding across both the TIRCP and ZETCP, and for planning expenses related to preparing and implementing the initial short-term financial plan, updates to the short-term financial plan, and the long-term financial plan, including planning expenses related to implementation of ridership recovery and retention strategies. If less than $25,000 would be available under this formula, a maximum of $25,000 shall be available to such RTPAs for RTPA administration and planning expenses. As the RTPAs are tasked with developing the regional long-term financial plan for their jurisdictions, there is no requirement to program and suballocate funds to transit operators for this purpose, although they may do so at their discretion. The RTPAs can procure professional services or use their own staff to gather the reports, data and relevant information needed to develop the regional long- term financial plan required by SB 125. This request must be made in the Allocation Package submissions covering FY 23-24 funding from the ZETCP due on December 31, 2023, as an operating project associated with the RTPA, as most funding will be drawn from the Public Transportation Account resources only available in that year. If included in the December 31, 2023 submission, funds may be applied to expenses incurred at any point in the RTPAs FY23-24 fiscal year, including those incurred prior to receipt of funding, subject to RTPA policies that allow such reimbursement. Very small RTPAs may be directed by CalSTA to program the balance of funding from 1st year General Fund resources available under TIRCP if there are insufficient PTA funds available to meet their requested administrative funding amount. Small RTPAs are encouraged to combine planning efforts if feasible. Should RTPAs be part of project-specific project management, resources required for those efforts are to be separately identified as part of the funding requested for each project, as appropriate. 6 Requirements for Funding Allocations
Each RTPA seeking allocation of funding shall complete an Initial Allocation Package by December 31, 2023. Allocation Packages are encouraged to describe the full four-year plan for use of formulaic funds if already known, understanding that each year’s funds are subject to appropriation in the respective budget year. However, Allocation Packages are expected to be updated for future years should there be any change in funding availability or projects selected for funding distribution. Allocation packages will be treated in accordance with Public Records Act requirements and certain information, subject to those requirements, may be publicly disclosed.
Each Allocation Package shall include, as applicable, the following:
A. A signed cover letter, with signature authorizing and approving the request by the eligible RTPA.
This cover letter should also confirm that the RTPA developed the plan in consultation and coordination with its transit operators.
B. An Allocation Package Narrative Explanation, covering most of the requirements for the regional short-term financial plan for immediate service retention required by statue. This narrative explanation is required by December 31, 2023, unless the RTPA declares that none of the STA- eligible transit operators eligible to receive funding within their jurisdiction will have an operational funding need for SB 125 or additional discretionary or nonformula state funding between the 2023- 24 fiscal year and the 2026-27 fiscal year, inclusive. It also must declare that it will not use the SB 125 funding as operating funding for any of its STA-eligible transit operators (or its own transit operations, when the RTPA also operates transit service). Such declarations may take the place of the narrative explanation, if applicable. Even if such declarations are made, the regional Allocation Package Narrative Explanation will still be a required submission by December 31, 2024, in order to receive a timely allocation of FY24-25 funding from SB 125 sources.
The Allocation Package Narrative Explanation shall include the following:
i. An explanation of what funding and service actions are being taken within the region that utilize resources other than SB125 funding. This explanation incorporates the requirement to provide a demonstration of how the region will address any operational deficit, using all available funds, through the 2025–26 fiscal year, based on a 2022 service baseline. Each plan shall provide narrative and data describing the funding approach that addresses expected operational deficits of existing STA-eligible transit operators through the 2025-26 fiscal year across all the region’s STA-eligible transit operators, including strategies to use all available local, state, and federal funds to address such deficits, and the impacts such strategies may have on any capital projects. This section shall focus on the approaches the region is taking and plans to take before the use of SB 125 funds to mitigate operational deficits, both in calendar year 2023 and in future fiscal years through the end of FY25-26. When applicable, this should include reference to delay or elimination of lower priority capital projects to increase funding for operations, utilizing historically high State Transit Assistance funding tied to recent high diesel fuel prices, the use of federal transit formula funding made higher through the Infrastructure Investment and Jobs Act (IIJA) for preventative maintenance expenditures within the operating budget, or the use of higher Local Transportation Fund revenues tied to healthy sales and use tax receipts in certain counties. In some cases, strategies involving the use of non-SB 125 funds to increase transit operator funding may allow SB 125 funds to target capital needs. If utilized, such strategies should be described in this section. To the extent that such deficits cannot be fully addressed with available funds and actions, service impacts relative to the December 31, 2022 service baseline shall be described. This section shall be analyzed and reviewed for completeness. It is understood to be a summary of major actions taken and planned to be taken across the region based on RTPA and/or transit operator decision-making. ii. A description and justification of the RTPA strategy to use SB 125 funding to construct capital projects and fund operating expenses that lead to improved outcomes in its jurisdiction. This section shall describe the region’s overall strategy for choosing to spend the expected SB 125 funds on the capital projects and operational expenses described in its Allocation Package. This section addresses the statutory requirements to provide a justification for how the region’s funding is proposed to be allocated to capital and operational expenses and provide a demonstration of how the plan will mitigate service cuts, fare increases, or layoffs relative to a 2022 service baseline to achieve short-term financial sustainability. This section shall highlight the specific manner in which SB 125 funding requested for operations will reduce or eliminate the need for service cuts, fare increases or layoffs. With recent positive results from efforts designed to increase speed of transit services, allowing similar levels of service with lower operating costs or more service with the same operating budget, this section of the Allocation Package would benefit from describing any such efforts that are proposed for the region and transit operators in question. This can include transit-specific infrastructure, stop consolidation, or other efforts. In addition, this description addresses the statutory requirement to provide a summary of how the plan will support ridership improvement strategies that focus on riders, such as coordinating schedules and ease of payment and improving cleanliness and safety, to improve the ridership experience. Since increasing ridership and the associated fare revenues is one approach to strengthening the financial performance of each region’s transit operators, this section shall highlight any portion of the capital projects or any portion of operating funds that are specifically focused on supporting improvement in ridership. This section should also describe any efforts to integrate fares among transit agencies in the region or even outside of the region covered by the RTPA. This section shall be analyzed and reviewed for completeness. iii. A detailed breakdown and justification for how the funding is proposed to be distributed between transit operators and among projects, consistent with the legislative intent described in SB 125. This section shall include a narrative (and appropriate data and tables) describing the justification for the funding distribution to each specific operator and project that is requested. If requesting spending for transit operations, this section shall address the following items identified in the legislative intent language in SB 125:
1. address operational costs until long-term transit sustainability solutions are identified
2. assist transit operators in preventing service cuts and increasing ridership
3. prioritize the availability of transit for riders who are transit dependent
4. prioritize transit agencies representing a significant percentage of the region’s ridership If requesting funding for both capital projects and transit operations, the justification for the capital project shall include discussion of the high-priority nature of the capital project and the significance of its completion to the region. In most cases, existing TIRCP-funded capital projects that are already substantially funded and in need of additional resources for completion are expected to be prioritized over beginning new projects. This narrative section should address the approach to this issue. This section shall be analyzed and reviewed for completeness.
C. An Allocation Package Detailed Project Description, required of all agencies requesting an allocation, regardless of whether they are required to submit a short-term financial plan by the end of 2023. This detailed project description covers all projects that are recommended by the RTPA for SB 125 funding. It does not need to fully utilize all available funds, as this document may be updated on a rolling basis throughout the period covered by SB125 funding as part of an Updated Allocation Package submission. However, for timely distribution of FY23-24 funds, this portion of the Allocation Package must be submitted by December 31, 2023, and for timely distribution of FY24-25 funds, by December 31, 2024.
The detailed project description described above must provide details about how the funding is proposed to be distributed between transit operators and among projects, both capital and operations. This section shall be analyzed and reviewed for project eligibility and completeness.
The list is divided into three sections, covering TIRCP Capital, ZETCP Capital and Operations Funding. Required contents for each are below.
TIRCP Capital
1. If an agency is requesting allocations for funding for an existing TIRCP project (i.e., a project that has received a previous TIRCP grant, including those involving project development for major projects), they should identify the title of the project and the TIRCP cycle of award (cycles 1-6). They should also identify whether the funds will be used for the full project or for a subcomponent. Each project receiving additional funding shall identify the reason for additional funds being needed, including cost escalation, additional scope requirements or maintaining federal funding commitments. No additional GHG reduction or increased ridership benefits are required to request funds for an existing TIRCP project.
2. If an agency is requesting allocation for funding for new TIRCP-eligible projects, they shall include for each requested TIRCP capital project:
a. A summary or fact sheet (one- to two-page) that includes the following elements:
i. Implementing agency or agencies ii. Project title iii. Dates for the start and end of each project phase iv. Summary of project scope v. Total project costs, including identification of the amount of funding used for project management as budgeted for the agency or agencies involved (inclusive of RTPA project management)
vi. Identification of the source, type and amount of all funding b. A detailed project schedule, including the project’s current status, and the completion dates of all major delivery milestones. c. Project Location – provide a map for each of the following:
i. Project location denoting the project site. Provide a KML file for the project with the transit route/project location represented by lines and stops represented by points as applicable. ii. In addition to showing where housing exists, provide information on housing density and planned/zoned/permitted/etc. housing density. This information may come from planning documents and/or zoning code if other approaches are not readily available. iii. In addition to illustrating existing employment centers, provide information on employment density, mix of employment types, and planned future employment land uses. This information may come from planning documents and/or zoning code if other approaches are not readily available. iv. Planned and existing active transportation infrastructure (what currently exists, what is planned, and what would be funded by the project. d. An explanation of greenhouse gas reducing features of the project such as project components that improve air quality and reduce greenhouse gas emissions along a specific corridor, surrounding land use density, housing and employment centers, transit- oriented development/sustainable communities strategy projects, active transportation infrastructure and other features, to the extent available. For all construction projects, agencies are required to submit a copy of the California Air Resources Board (CARB) Quantification Methodologies (QMs) and Calculator Tools for estimating greenhouse gas (GHG) emission reductions and co-benefits identified in Attachment 2. e. An explanation of expected ridership benefits of the project when constructed, including how the project supports better integration of transit services in the region among modes and providers if applicable. f. If applicable, an explanation of how some or all of the project is expected to provide direct, meaningful, and assured benefits to a disadvantaged community, low-income communities or low-income households as defined by SB 535 and AB 1550.
3. If agencies plan to use this funding for only project development activities for a new project, they are required to show how their project or program of projects will be eligible to apply for TIRCP construction funding in the future. If the project would not be eligible to apply for TIRCP as a new project, it will not qualify for funding for project development. Agencies shall also demonstrate that they have entered into, or have applied to enter into, federal project development processes for at least a portion of the project or program of projects, and that they expect to receive federal funding in the future once complete with project development. If the agency expects to be able to leverage state funding to provide the match necessary to obtain federal planning funds, this should also be identified. The required detail for project development only is as follows:
a. A summary or fact sheet (one- to two-page) that includes the following elements:
i. Implementing agency or agencies ii. Project title iii. Dates for the start and end of each project development phase, as well as the anticipated date of construction iv. Summary of overall project scope for the constructed project, with an emphasis on project development scope v. Total project costs for project development, and an estimate of the fully constructed project cost if available vi. Identification of the source, type and amount of all funding for the project development phase and intended funding for the construction phase b. A detailed project schedule for the project development phase, including the project’s current status, and the completion dates of all major delivery milestones. c. Description and map designating the project location d. An explanation of greenhouse gas reducing features of the project such as project components that improve air quality and reduce greenhouse gas emissions along a specific corridor, surrounding land use density, housing and employment centers, transit- oriented development/sustainable communities strategy projects, active transportation infrastructure and other features, to the extent available. No GHG emissions reduction quantification is required, but can be acknowledged, if available. e. An explanation of expected ridership benefits of the project when constructed, including how the project supports better integration of transit services in the region among modes and providers if applicable. f. If applicable, an explanation of how some or all of the project is expected to provide direct, meaningful, and assured benefits to a disadvantaged community, low-income communities or low-income households as defined by SB 535 and AB 1550.
ZETCP Capital
If an agency is requesting allocation for funding for ZETCP capital projects, they shall include for each requested ZETCP capital project:
a. A summary or fact sheet (one- to two-page) that includes the following elements:
i. Implementing agency or agencies ii. Project title iii. Dates for the start and end of each project phase iv. Summary of project scope v. Total project costs, including identification of the amount of funding used for project management as budgeted for the agency or agencies involved (inclusive of RTPA project management) vi. Identification of the source, type and amount of all funding b. A detailed project schedule, including the project’s current status, and the completion dates of all major delivery milestones. c. Project Location – provide a map for each of the following, where relevant:
i. Project location denoting the project site. Provide a KML file showing project location(s) and impacted transit lines. ii. In addition to showing where housing exists, provide information on housing density and planned/zoned/permitted/etc. housing density. This information may come from planning documents and/or zoning code if other approaches are not readily available. iii. In addition to illustrating existing employment centers, provide information on employment density, mix of employment types, and planned future employment land uses. This information may come from planning documents and/or zoning code if other approaches are not readily available. iv. Planned and existing active transportation infrastructure. d. An explanation of greenhouse gas reducing features of the project. For all construction projects, agencies are required to submit a copy of the California Air Resources Board (CARB) Quantification Methodologies (QMs) and Calculator Tools for estimating greenhouse gas (GHG) emission reductions and co-benefits identified in Attachment 2. e. At the time of the Allocation Package submission, applicants are required to submit a job co-benefit modeling tool, which is based upon a co-benefit assessment methodology developed by CARB. This tool can be found here:
https://ww2.arb.ca.gov/resources/documents/cci-methodologies f. An explanation of how some or all of the project is expected to provide direct, meaningful, and assured benefits to a disadvantaged community, low-income communities or low- income households as defined by SB 535 and AB 1550. Agencies must evaluate the criteria detailed by CARB (see Attachment 1) and complete the CARB benefit criteria table in Attachment 3, to determine whether the project meets criteria for providing direct, meaningful, and assured benefits to a disadvantaged community, low-income community, and/or low- income households and address a community need pursuant the CARB’s Funding Guidelines, and document the manner in which all or part of the project does so. If an agency plans to engage in additional efforts to consult with disadvantaged or low- income stakeholders as part of project development, a specific task and budget for the proposed activities should be included in the project application. i. It is a goal of programs using GGRF resources to maximize benefits to disadvantaged communities and low-income communities and households. Pursuant to the requirements of SB 535, as amended by AB 1550, the overall California Climate Investments Program funded with Cap-and-Trade auction proceeds must result in: (1) a minimum of 25% of the available moneys in the GGRF to projects located within, and benefiting individuals living in, disadvantaged communities, (2) an additional minimum of 5% to projects that benefit low-income households or to projects located within, and benefiting individuals living in, low- income communities located anywhere in the state, and (3) an additional minimum of 5% either to projects that benefit low-income households that are outside of, but within a 1/2 mile of, disadvantaged communities, or to projects located within the boundaries of, and benefiting individuals living in, low-income communities that are outside of, but within a 1/2 mile of, disadvantaged communities. ii. Information on California Climate Investments to Benefit Disadvantaged Communities with background on SB 535, AB 1550 and the CalEPA California Communities Environmental Health Screening Tool 4.0 (CalEnviroScreen), can be found at: HYPERLINK "https://calepa.ca.gov/EnvJustice/GHGInvest/" \hhttps://calepa.ca.gov/EnvJustice/GHGInvest/ g. Identification of whether the entire project, or only certain components, address AB 1550 benefits, and identification of the portion of the budget related to those components. h. An explanation of expected ridership benefits of the project when constructed, if any.
Transit Operations Funding
If an agency is requesting an allocation of funding for transit operations for one or more of the STA- eligible transit operators in its jurisdiction, it shall include the following information for each operator covered by its request:
1. Name of Transit Operator
2. 2022-23 Ridership for the Operator and Operator’s Percent of Region’s Total Ridership
3. Amount of Funding Requested, by source (TIRCP or ZETCP) and Budget Year
4. List of Specific Activities Funded by the Request, quantified where possible:
a. Amount of service being paid for by the additional funding expressed in both revenue service hours and by nature of service retention, restoration or increase invested in (e.g. preventing a reduction in frequency on one or more routes (or systemwide), frequency increases on particular routes or launch of new routes made possible by the funds). Costs involved in maintaining current operations may include those necessary for ensuring safety and state of good repair of the vehicles and infrastructure necessary to operate service and shall be identified with respect to the current service level they are protecting. In some regions, a different STA-eligible operator may be better able to implement increased or restored service levels than the original operator. This flexibility is allowed and should be noted in the project description when utilized. b. Identification of operating expenses invested in increased safety and security measures c. Identification of operating expenses that are intended to increase ridership, including those that fund actions to improve coordination of routes and schedules
5. Identification of benefits to transit dependent riders of activities funded by the request D. A summary Excel table including the proposed uses of TIRCP and ZETCP funds by fiscal year of availability, up to the levels presented in Section 3 above. Uses shall be subdivided between funding for capital projects and funding for operations expenses, with each project and its implementing agency specifically identified, and each operator that will receive operations funding also specifically identified. An Excel template to be used in submitting this required information will be available on the CalSTA website within the Subject Area page dedicated to SB125 Funding. This table should contain data that matches the information submitted in the Allocation Package Detailed Project Description. The data table shall indicate the funding year from which funds are encumbered to the project or operating expense by the RTPA. Actual expenditure of funds may be in that year or a future year, as necessary for the project or operation.
E. Agencies must also submit regionally representative transit operator data in coordination with transit operators providing service within the jurisdiction of the regional transportation planning agency. Regionally representative operator data is expected to include all State Transit Assistance- receiving agencies that are also direct reporters to the National Transit Database (NTD), as well as any additional agencies that are expected to receive either operating or capital project funding from the SB 125 funds. Exceptions are noted below. This data collection is aligned with some of the expected data needs for the Transit Transformation Task Force. For agencies to receive an allocation of funds in the 2023-24 fiscal year, the transit operator data must be submitted by December 31, 2023. CalSTA and Caltrans will review the data submissions for completeness, understanding the quality of the data may vary between operators. RTPAs are not required to confirm the data accuracy compiled from their transit operators. If the transit operator data does not meet the following requirements or is incomplete, agencies will have an opportunity to remedy their submission and receive access to the funding after the requirements are met, by no later than April 30, 2024. The regionally representative transit operator data shall include, but is not limited to:
i. Existing fleet and asset management plans by transit operators. Innovative Clean Transit Plan developed for CARB will be considered an already-responsive component of this requirement. Operators that are required to submit Asset Information Module data to the FTA’s National Transit Database (whether on their own or as part of a group plan) should confirm the last time period for which data was submitted, and whether they submitted their data as part of a group plan. If such data is already submitted to the NTD by Caltrans, the most recent submission should be noted and referenced. If the STA-eligible transit operators within an RTPA’s jurisdiction have operator-specific fleet and/or asset management plans developed for their own management purposes, or for compliance with FTA Capital Investment Program requirements, the most recent version of such plans should be submitted. ii. Revenue collection methods and annual costs involved in collecting revenue for each transit operator and regional transportation planning agency involved, by payment instrument. The methods (payment instruments) of revenue collection should be noted and described for all operators covered by the data submission requirements, including reference to use of cash fareboxes, transit passes and tickets available for sale at different locations and in different media, use of mobile ticketing and/or use of smart cards or contactless payment. Information on revenue collection costs shall also be submitted for those operators or regional agencies that are able to identify specific costs in their operating or capital budgets associated with such revenue collection costs. Annual cost should be related to annual revenue for each STA-eligible transit operator that has relevant data to report. For operators that have no identifiable expenses and are not NTD reporters, fare revenues shall still be submitted for the most recent fiscal year in question. For regional agencies that have revenue collection costs without collecting fare revenues directly, the revenue collection costs should be reported by payment instrument, along with an indication of which operators are served by such revenue collection efforts.
1. The dataset shall include, for each transit operator or regional transportation planning agency involved in revenue collection (as applicable):
a. Total cost of revenue collection and total revenue collected for the most recent fiscal year b. Cost of revenue collection by payment instrument (where available, even if only for certain instruments and not all) and total revenue collected by those same payment instruments, for the most recent fiscal year.
2. Planned capital costs related to fare collection in the next 4 years, if any are planned (including those within expected transit vehicle or other procurements). iii. A statement of existing service plan and planned service changes through the end of 2023-24, and schedule data in General Transit Feed Specification (GTFS) format. The goal of this data submission is to provide up to date representation of schedules by transit operator. Nearly all transit agencies of the state are providing their data in GTFS format on a regular basis, and are required to start doing so by FTA regulations by 2024. Such data is already visible to the public and to state agencies as indicated below. Compliance with these statutory requirements may be met by each operator confirming that their current schedule data is correct (an accurate representation of the service that the customer will see in operation), and that future service changes will be translated into an updated GTFS format on a timely basis. If a service change is planned during FY 23-24, an estimated date for submission of GTFS data should be indicated.
A brief summary of the existing service plan and changes to the levels of service planned by operator, at a level that is representative of the larger planned changes but does not need to cover minor changes, shall accompany the allocation package. Major frequency changes, or addition or discontinuance of routes, should be reflected, but not minor routing or scheduling changes. In addition, changes in total amount of revenue service hours planned for this current fiscal year shall be reported, along with the timeframe for such a change.
1. Existing service is assumed to have been described in the agencies most recent GTFS feed / GTFS Realtime feed. A list of agencies and associated feeds can be found at https://data.ca.gov/dataset/cal-itp-gtfs-ingest- pipeline-dataset/resource/e4ca5bd4-e9ce-40aa-a58a-3a6d78b042bd. If this is in error, please contact HYPERLINK "mailto:[email protected]" \[email protected]. More general information specific to reporting in GTFS may be found at https://dot.ca.gov/cal- itp/california-minimum-general-transit-feed-specification-gtfs-guidelines.
2. For the proposed service plan, the ideal format is a GTFS feed, representing, at a minimum, proposed weekday, Saturday and Sunday service, planned scenario. Otherwise, we will accept frequency or new line-based changes. (i.e., line X goes from every 20 minutes to every 10 minutes during peak periods, defined as 6am-9am and 4pm to 7pm).
3. The phasing plan for any proposed service changes. iv. Expenditures on security and safety measures. This data should be submitted by those agencies that have current or changed levels of expenditure that are specific to security (including cybersecurity) and safety measures, if applicable to the agency or operators covered by the report. This information is expected to highlight those regions and agencies that are expending significant funding, in order to consider this in the context of the Transit Transformation Task Force and to consider the role such spending may play in restoring and increasing ridership. Not all agencies and operators are expected to have specific data in this area. v. Opportunities for service restructuring, eliminating service redundancies, and improving coordination amongst transit operators, including, but not limited to, consolidation of agencies or reevaluation of network management and governance structure. RTPAs with efforts involving these activities across their region or involving specific operators shall provide a summary of the opportunities they are pursuing or have acted upon, including any reports on such opportunities.
Technical assistance in addressing the required contents of the Initial Allocation Package and any future updates may be requested by emailing the SB 125 e-mail address at HYPERLINK "mailto:[email protected]" \[email protected]. Assistance may be provided by CalSTA, Caltrans or CARB, depending on the nature of the specific question.
Applicants are reminded that while initial allocation packages are due by December 31, 2023, they may submit updates to such packages on a rolling basis that CalSTA anticipates reviewing on a 30- to 60-day timeline for approval of additional allocations of funding, up to the limit available for the RTPA at the relevant point in the program.
RTPAs are also required to make publicly available (i.e., posted online) a summary of monthly ridership data, consistent with the data submitted to the FTA’s NTD, from all its transit operators and should cover the time period starting on July 1, 2022, through at least June 30, 2028. The monthly reports should include ridership data for each mode of public transportation service that the agency operates. This information will provide the public with monthly trends in ridership and service supplied throughout the year, and also allow for a comparison of ridership recovery compared to this same time last year.
Caltrans will provide all RTPAs with a summary report each month that meets the requirements of this statutory provision, drawn from the data reported to the National Transit Database. The data will be drawn from the NTD at: HYPERLINK "https://www.transit.dot.gov/ntd/data-product/monthly-module-adjusted-data-release" \hComplete Monthly Ridership (with adjustments and estimates) | FTA (dot.gov). RTPAs are required to post a link to this report and data in a manner easily accessed by the public, so that ridership trends within their region can be easily reviewed, in order to receive approval for their allocation packages. For RTPAs with transit operators who do not report monthly data to the NTD, Caltrans will include the most recent annual ridership numbers provided to the NTD. RTPAs may publish additional ridership data for agencies that do not report monthly to the NTD at their discretion, in order to allow public understanding of the changes in ridership experienced over the SB 125 funding time period.
Unrelated to the Allocation Package submissions, agencies are required to submit and receive approval of a one-time, long-term financial plan by June 30, 2026, that addresses the approach to sustain the region’s transit operations absent additional discretionary or nonformula state funding to maintain eligibility for future TIRCP funding in the 2026-27 fiscal year and beyond. This plan will be analyzed and reviewed for completeness.
Each long-term financial plan shall include, but is not limited to:
I. Demonstration of the implementation of ridership retention and recovery strategies, including, but not limited to, policies that prioritize safety and cleanliness and streamlined coordination between transit operators, such as schedule coordination, reduced boarding times, operational management, and site sharing, to improve rider experience.
II. A five-year forecast of operating funding requirements with detail on all sources of funding proposed for operations, including any new local and regional funding sources being pursued and the progress and improvements implemented since the last submitted regional short-term financial plan.
Technical assistance as it relates to the development of long-term financial plans may be offered from CalSTA and/or Caltrans. RTPAs are expected to utilize existing plans and documents that address the requirements of the long-term financial plan where possible, including the use of supplemental materials or addenda that address the long-term plan requirements and reference back to their existing plans as applicable. CalSTA analysis and review for completeness will only extend to content required by the provision of SB 125. Additional guidance will be developed and articulated in future updates to these guidelines, per the legislative intent of SB 125. 7 Approval and Programming
Once an agency’s Initial Allocation Package is received, along with verification that monthly ridership data as required by statute is available on each regional agency’s website, CalSTA will review and analyze the submitted documents for completeness and for project eligibility with a commitment to facilitate these funds to projects in an expeditious manner and not infringe on the local decision-making processes that determined the specific projects proposed for funding. If all projects are eligible and the documentation is complete, CalSTA will notify the RTPA that its package is approved, publish the information on its SB125 Transit Formula Program subject area page, and authorize disbursement of applied-for funds to the RTPA. If Initial Allocation Packages are incomplete, RTPAs will be promptly notified and allowed to address areas of incompleteness. If any projects are found to be ineligible, RTPAs will be provided an opportunity to choose between ether remedying the ineligible project (or replacing it with another) prior to having the entire package approved, or advancing all projects that are eligible and addressing the ineligible project in a future Updated Allocation Package. CalSTA will maintain a Program Allocation Report that will incorporate all approved projects (both capital and operating) that will be updated in any quarter during which additional approvals of Initial Allocation Packages or Updated Allocation Packages have been made.
Agencies are not required to fully apply for all available funding at the time of Initial Allocation Package submission. Unrequested monies, or the request to program interest earned on deposited funds that have not yet been disbursed to implementing agencies, may be requested in a future Updated Allocation Package. If an agency chooses to request previously unrequested funding or reprioritize funding between projects (including the addition or deletion of a project from their approved project list), an Updated Allocation Package shall be submitted for approval, including a Summary of Changes section immediately after the cover letter authorizing submission, and any updates to the project information in the document relative to the request. Such documents will be reviewed and analyzed upon receipt for completeness and project eligibility with a commitment to facilitate these funds to projects in an expeditious manner and not infringe on the local decision-making processes that determined the specific projects proposed for funding, with the approved changes included in the quarterly updates to the Program Allocation Report. Notification will be provided to each submitting agency within 30 to 60 days of submission of an Updated Allocation Package regardless of whether the next quarterly Program Allocation Plan has been published. 8 Project Delivery and Reporting
To the extent that recipients specify existing TIRCP projects that already have competitive TIRCP funding awards, CalSTA and Caltrans will work with each project sponsor to update project program supplements to reflect the use of these supplemental resources on the project under its delegated authority from CalSTA. The first year of funding for TIRCP and the ZETCP is already available for distribution once required materials are submitted and is expected to be fully encumbered or expended and liquidated by June 30, 2028. FY23-24 funds for TIRCP and the ZETCP must be disbursed to RTPAs by this deadline. Once received by the RTPA there is no deadline for the expenditure of funds. Agencies may spend SB 125 funds in any order relative to other state, federal and local funds.
As a condition of ongoing disbursement of requested SB 125 funds, the RTPAs must submit to CalSTA an Annual Report documenting the activities and progress made toward implementation of the projects and operating expenditures, which includes total SB 125 expenditures to date and total amount remaining. Recordkeeping and reporting requirements will apply through the life of the projects.
As previously noted, recipients must deposit funds into a dedicated bank account that will hold only SB 125 funds. If a separate account is not possible, the agency may show documents of a line item or subaccount dedicated to SB 125 funds. These funds must also be spent on eligible projects and will be accounted for when an agency submits its required Annual Report.
A reporting template will be distributed prior to the first annual report being due by December 31, 2024. A final delivery report for completed capital projects may also be required, to provide notification of the completion of the project and confirmation of its placement into service. Additional guidance may be developed and articulated in future updates to these guidelines, per the legislative intent of SB 125, and may include the development and distribution of a final delivery report template in the future.
Consistent with CARB’s Funding Guidelines, local agencies are required to report on job co-benefits, in addition to all other reporting requirements, for funding associated with the ZETCP. Job co-benefits refer to California jobs supported, not created, by California Climate Investments. Jobs supported by California Climate Investments include direct, indirect, and induced employment.
At the time of the Allocation Package submission for the ZETCP, agencies are required to submit a job co- benefit modeling tool, which is based upon a co-benefit assessment methodology developed by CARB. Once an awarded project has been implemented, funding recipients will also be required to report actual (not modeled) jobs data via the semi- annual reporting process. Note that these requirements are only for the ZETCP and are not necessary for the SB 125 TIRCP funding. Projects accessing funding from the ZETCP may also be required to submit reporting information related to greenhouse gas reductions and priority population benefits in accordance with the CARB’s Funding Guidelines (see Attachment 1).
Implementing agencies should note that additional Project Outcome Reporting may be required for TIRCP or ZETCP capital projects. Caltrans may provide assistance through Cal-ITP on scheduling, real-time information and payments to streamline reporting requirements.
The State of California has the right to review project documents and conduct audits during project implementation and over the life of the project. Caltrans or another State agency may audit a sample of SB 125 projects to evaluate the performance of the project, or compliance with state and federal laws and regulations, contract provisions; and program guidelines, and whether project deliverables (outputs) and outcomes are consistent with the project scope, schedule, and benefits described in the Allocation Package. A report on the projects audited must be submitted by the auditing agency to CalSTA.
In addition, agencies that receive ZETCP funding under this program shall submit a report to CalSTA, no later than October 31, 2024, and annually by October 31st of subsequent years, that includes the following information:
a. How much funding is to be used for operating costs, if any. b. The number, type, date, and location of zero-emission buses, trains or other vehicles purchased, if any. c. The number, type, date, Open Charge Point Interface (OCPI) data, and location of electric charging stations or hydrogen fueling stations purchased and installed, if any. d. The nameplate capacity of installed equipment in kilowatts for electric charging stations and kilograms per day for hydrogen fueling stations, if any. e. The total costs and the source of funding for vehicles and equipment purchased using these funds.
Additional guidance related to the ZETCP annual report will be provided at least six months before its required submission. 9 Project Administration
Projects awarded funding from SB 125 are expected to document and publicize the TIRCP and ZETCP in proper context when developing press releases and board documents, or in hosting public events such as project groundbreakings. References should be made to TIRCP, ZETCP, the California State Transportation Agency as the program sponsor, and the state programs as fund sources, as applicable, in order to ensure transparency regarding the funding of the projects. Additional details may be provided.
Agencies must encumber and expend monies consistent with State law and ensure that GGRF monies are utilized consistent with the expenditure record submitted by CalSTA and required by SB 1018. A determination that use of GGRF monies is not consistent with the expenditure record and does not further the purposes of AB 32 may occur during legal proceedings or during an audit or program review conducted by the Bureau of State Audits, Department of Finance, a third-party auditor, or CARB. Depending on the outcome of those proceedings or review, agencies may be required to return monies to the state if expenditures are not consistent with the statutory requirements (such as not furthering the purposes of AB 32).
If a short-term financial plan does not meet the content and completeness requirements outlined in section 6, or if specific projects described do not meet eligibility requirements, agencies will have an opportunity to remedy their plan and receive access to the funding after the requirements are met.
Audits and on-site monitoring can take place at any time at the discretion of CalSTA, without prior warning given to the agency. CalSTA has the right to audit the project records, including technical and financial data of the Project Applicant, the Implementing Agency, and any consultant or sub-consultants at any time after award, during the course of the project and for three years from the date of the final closeout of the project, therefore all project records shall be maintained and made available at the time of request.
The state may terminate the disbursement of funds if it learns of or otherwise discovers that there are allegations supported by reasonable evidence that a violation of any state or federal law or policy by the recipient which affects performance of this funding, or any other grant agreement or contract entered into with the State. If funding disbursement is terminated, or project approval revoked, the agency may be required to fully or partially repay funds from the TIRCP or ZETCP.
Attachment 1: CCI Funding Guidelines for Administering Agencies (applies to ZETCP Recipients Using GGRF Funds)
Investments to Benefit Disadvantaged Communities and Low-Income Communities and Households The California Air Resources Board (CARB) released the "Funding Guidelines for Agencies Administering California Climate Investments" (Funding Guidelines) on August 30, 2018.
The 2018 Funding Guidelines provide flexibility in implementing a diverse set of investments while maintaining transparency of outcomes and ensuring meaningful community benefits from these investments. These guidelines align with the Legislature’s priorities found in HYPERLINK "https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180AB398" \hAB 398 and Fiscal Year (FY) 2017-18 appropriations. These guidelines reflect the increasingly important role of California Climate Investments in facilitating the reduction of greenhouse gases while also reducing air pollution, helping communities adapt to the impacts of climate change, and providing meaningful benefits to disadvantaged communities, low-income communities, and low-income households (also referred to as HYPERLINK "https://webmaps.arb.ca.gov/PriorityPopulations/" \h“priority HYPERLINK "https://webmaps.arb.ca.gov/PriorityPopulations/" \hpopulations”), among other statutory requirements.
CARB collaborates with agencies that administer California Climate Investments programs to develop individual targets for each program to drive investments that achieve direct and meaningful benefits to HYPERLINK "https://www.arb.ca.gov/cc/capandtrade/auctionproceeds/communityinvestments.htm" \hpriority populations and help ensure that HYPERLINK "https://ww2.arb.ca.gov/resources/documents/cci-legislative-guidance" \hstatutory requirements are met, which are described in AB 1550.
Additional information can be found at the following CARB websites:
HYPERLINK "https://ww2.arb.ca.gov/resources/documents/cci-funding-guidelines-administering-agencies" \hhttps://ww2.arb.ca.gov/resources/documents/cci-funding-guidelines-administering-agencies Attachment 2: Quantification Methodology and Co-Benefit Assessment Methodology CCI Quantification and Reporting Materials
Administering agencies using ZETCP GGRF funding for capital expenditures must use the Funding Guidelines with the resources provided by CARB to develop effective programs and demonstrate compliance with program requirements.
Resources include Quantification Methodologies (QMs) and Calculator Tools for estimating greenhouse gas (GHG) emission reductions and co-benefits; Benefit Criteria Tables (BCTs) for determining benefits to priority populations; and Reporting Templates for reporting outcomes.
CARB staff developed the HYPERLINK "https://www.arb.ca.gov/cc/capandtrade/auctionproceeds/calsta_tircp_finalqm_cycle4.pdf?_ga=2.153538232.1048667823.1635195376-1725670222.1600706853" \hTIRCP QM and associated HYPERLINK "https://www.arb.ca.gov/cc/capandtrade/auctionproceeds/calsta_tircp_finalcalculator_cycle4.xlsx?_ga=2.229951516.1048667823.1635195376-1725670222.1600706853" \hCalculator Tool to provide guidance for estimating the GHG emission reductions and selected co-benefits for each proposed project type. The calculator tool automates methods described in the QM document, outlines documentation requirements, and provides a link to a step-by-step user guide with project examples. Projects will report the total project GHG emission reductions and co-benefit estimated using the TIRCP Calculator tool as well as the total project GHG emission reductions per dollar of GGRF funds.
The TIRCP Calculator Tool will be used for most ZETCP capital projects, and also for developing quantification estimates for new TIRCP capital projects using SB 125 funds.
Using many of the same inputs required to estimate GHG emission reductions, the TIRCP Calculator Tool will estimate the following co-benefits and key variables from TIRCP projects • ROG emission reductions (lbs),
• NOx emission reductions (lbs),
• PM2.5 emission reductions (lbs),
• Diesel PM emission reductions (lbs),
• Passenger VMT reductions (miles),
• Fossil fuel use reductions (gallons),
• Fossil fuel energy use reductions (kWh),
• Passenger travel cost savings ($), and
• Energy and fuel cost savings ($).
While many ZETCP and TIRCP projects will use the TIRCP calculator tool, there are some project types that may not be covered by a single tool. CARB staff have developed the ZETCP QM by compiling the calculator tools from TIRCP, LCTOP, the Affordable Housing and Sustainable Communities (AHSC) program, the Low-Income Weatherization Program (LIWP), and the Low Carbon Fuel Production (LCFP) Program. The LIWP calculator can be used to calculate the benefits from solar panel and microgrid installations. The LCFP calculator can be used to calculate the benefits from alternative fuel generation in either a new facility or an expanded, existing facility.
All CARB co-benefit assessment methodologies are available at:
HYPERLINK "https://ww2.arb.ca.gov/resources/documents/cci-methodologies" \hhttps://ww2.arb.ca.gov/resources/documents/cci-methodologies Reporting templates are developed specifically for each program within California Climate Investments. These templates are used by TIRCP staff to report on outcomes from all projects funded by TIRCP, and are expected to also be used to report on outcomes for ZETCP GGRF-funded projects. Additional quantification tools will be identified by CARB for ZETCP project types that are not covered by current quantification tools, generally utilizing select tools used by existing GGRF programs.
Additional information can be found at the following CARB website:
HYPERLINK "https://ww2.arb.ca.gov/resources/documents/cci-quantification-benefits-and-reporting-materials" \hhttps://ww2.arb.ca.gov/resources/documents/cci-quantification-benefits-and-reporting-materials Co-benefit Assessment Methodology
California Climate Investments support the State's climate change goals and provide many additional benefits to individuals, households, businesses, and communities. These "co-benefits" include social, economic, and environmental benefits. CARB provides guidance on quantification methods and reporting to administering agencies. CARB contracted with the University of California, Berkeley (UC Berkeley) to help research and develop methods for evaluating project co-benefits. Guidance on using the co-benefit assessment methodologies is contained in HYPERLINK "https://ww2.arb.ca.gov/resources/documents/cci-funding-guidelines-administering-agencies" \hCARB's HYPERLINK "https://ww2.arb.ca.gov/resources/documents/cci-funding-guidelines-administering-agencies" \hFunding Guidelines.
The co-benefits were prioritized based on administering agency input and broad applicability to California Climate Investments programs. UC Berkeley first reviewed the scientific data to determine if methods could be developed and summarized the findings in literature reviews. Next, UC Berkeley and CARB developed Co-benefit Assessment Methodologies where feasible. CARB solicited public comment on draft versions in Spring 2018 prior to posting final Co-benefit Assessment Methodologies. CARB may review and update assessment methodologies periodically based on new or evolving project types; new legislation; available resources; new scientific developments or tools, or modifications in the analytical tools or approaches upon which the methodologies were based; or input from administering agencies or the public.
The California Air Resources Board is updating the Co-benefit assessment methodology. See the following website for the final methodology.
HYPERLINK "https://ww2.arb.ca.gov/resources/documents/cci-methodologies" \hhttps://ww2.arb.ca.gov/resources/documents/cci-methodologies Attachment 3: Benefit Criteria Tables
CCI Benefit Criteria Tables
ZETCP will use the Sustainable Transportation HYPERLINK "https://www.arb.ca.gov/cc/capandtrade/auctionproceeds/criteria-table-sustainabletransportation.pdf?_ga=2.225888282.1048667823.1635195376-1725670222.1600706853" \hBenefit Criteria Table developed by CARB to ensure that programs meet the minimum levels of investments to projects that benefit residents of disadvantaged communities, low-income communities, and low-income households, collectively referred to as “priority populations”.
All projects counting toward the statutory investment minimums must be located within an identified community and benefit individuals living within that community, or directly benefit residents of low-income households anywhere in the State. Administering agencies must determine if a project meets the criteria for providing direct, meaningful, and assured benefits to priority populations using the following evaluation approach:
Step 1: Identify the Priority Population(s). Be located within a census tract identified as a disadvantaged community or low-income community, or directly benefit residents of a low-income household.
Step 2: Address a Need. Meaningfully address an important community or household need for the disadvantaged community, low-income community, or low-income household.
Step 3: Provide a Benefit. Using the evaluation criteria, identify at least one direct, meaningful, and assured benefit that the project provides to priority populations. The benefit provided must directly address the identified need.
Only investments that meet these criteria will be counted toward achieving the statutory investment minimums identified for priority populations. Administering agencies can fund projects that otherwise provide meaningful benefits, but do not meet these criteria; however, those projects will not be counted toward investment minimum.
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