California caps and trades $374 million for rail

As California's Cap and Trade program of greenhouse gas emissions advances, rail projects receive development grants: On August 16, the California State Transportation Agency (CalSTA) announced 14 recipients for the 2016 Transit and Intercity Capital Program (TIRCP) grants. Of the $390 million available in competitive grants through the state's Cap and Trade auction proceeds, nearly $374 million goes to rail projects.

“This investment of Cap and Trade dollars is really about transforming this state’s transportation system to create jobs, reduce harmful emissions, and expand mobility options so Californians can get around as efficiently and conveniently as possible,” said CalSTA Secretary Brian Kelly.

41 applications for funding from around the state were submitted for consideration this year. The 14 projects selected, valued at more than $3.8 billion, will reduce more than 4.1 million tons of CO2 statewide and 13 of the 14 recipient projects directly benefit disadvantaged communities.

Looking ahead, through Senate Bill 9 (Beall, 2015) CalSTA will be adopting a 5-year program of projects by July 1, 2018. The 5-year program calls for larger, more transformative projects to be funded. With that, the state anticipates being a long-term funding partner to see transformative projects come to fruition, for example:

*The BART Silicon Valley Phase II Extension to San Jose Diridon and Santa Clara stations

*Commuter and intercity rail projects in northern California, such as expanded ACE, San Joaquin and Capitol Corridor service, that will link the high-speed rail project to millions of Californians through shared stations in the Bay Area and the Central Valley

*Expanded capacity for Los Angeles Union Station

*Commuter and intercity rail projects in southern California, such as expanded Metrolink, Amtrak Pacific Surfliner, and Coaster service that will link the high-speed rail project to millions of Californians through shared stations in the south

*Street car, light rail, and high-frequency bus projects all around the state that expand transit ridership with zero-emission vehicles well suited to the achievement of climate goals

*Investments in stronger integration between local transit and the statewide high speed, intercity and regional rail network, such as those underway in Fresno, that grow ridership and increase the utilization of existing services

*Expansion of the intercity rail network into new markets, such as the Coachella Valley and the Central Coast, and development of zero emission services on the intercity feeder bus network

CalSTA will hold workshops in late 2016, continuing into 2017, to receive public input on guideline development for the 2018 program.

Project funding for the 2016 awards will be supported by Cap and Trade auction proceeds from eight anticipated auctions in fiscal year 2016-17 and 2017-18, so cumulative auction proceeds are more important than the amount of revenue received from a single auction.

If the Legislature directs additional funds to the TIRCP in this legislative session, CalSTA may increase funding for announced awards and/or fund additional projects submitted as part of the 2016 program.