November 3rd, 2017 Autumn 2017 CalACT Conference California Department of Transportation Division of Rail & Mass Transportation Senate Bill 1: Overview of Transit and Rail Programs Good morning! Thank you for your attendance today. November 3rd, 2017 Autumn 2017 CalACT Conference

Agenda Senate Bill 1 Purpose & Funding Transit & Rail Programs Accountability Performance Measures

Senate Bill 1 Purpose and Funding $5.24 billion/year funding package generates new revenues from various taxes and fees Designed to repair and maintain our state highways and local roads, improve our trade corridors, and support public transit & active transportation. Focuses on Fix it first priority and requires performance criteria and ensure efficient use of funds The $5.24 billion/year funding package generates new revenues from various taxes and fees and is designed to repair and maintain our state highways and local roads, improve our trade corridors, and support public transit & active transportation. This bill focuses on Fix it first priority and requires performance criteria and ensure efficient use of funds SB1 provides historic levels of funding for public transit capital and operating expenses. It is estimated SB 1 will make available more than $700 million in new transit funding each year.

State Transit Assistance including the new State of Good Repair SB 1 Transit Programs Transit and Rail Programs: State Transit Assistance (STA) including the new State of Good Repair (SGR) Transit and Intercity Rail Capital Program (TIRCP) State Rail Assistance Program (SRA) Multimodal Programs that could include Transit and Rail Projects: Solutions for Congested Corridors Program Local Partnership Program Trade Corridor Enhancement Program It is estimated SB 1 will make available more than $700 million in new transit funding each year. SB 1 provides funding directly for public transportation in the following programs: State Transit Assistance including the new State of Good Repair Transit and Intercity Rail Capital Program (TIRCP) State Rail Assistance Program (SRA) In addition SB 1 provides funding to various other multimodal programs with the potential to boost public transit: Solutions for Congested Corridors Program Local Partnership Program Trade Corridor Enhancement Program

State Transit Assistance Overview SB1 will make available an additional $350 million in State Transit Assistance funding each year. State Transit Assistance – approximately $250 million per year Can be used for Capital and Operating expenses State of Good Repair (SGR) program – approximately $105 million per year Funding for maintaining existing facilities and transit services. STA: An existing program - SB 1 adds an additional $250 million annually from the increase in Diesel sales tax. Can be used for transit agency capital projects and operations. The revenues will come in and get paid out in the same way as the existing STA funding and will not be distinguished as special SB1 funds. SGR: A new program to be administered by Caltrans DRMT and SCO. $105 million per year to come from the increase in the Transportation Improvement Fee (increase in Vehicle License Fee) STA Eligible agencies are eligible to receive funding. (approximately 220 agencies that receive TDA funds) Projects can include transit capital projects or services to maintain or repair existing transit fleets and facilities, new vehicles or facilities that improve existing transit services, or transit services that complement local efforts to repair and improve local transportation infrastructure. (Wendy will be discussing this in more detail next)

Transit & Intercity Rail Capital Program (TIRCP) Overview This is an existing program expanding with additional funding from the new Transportation Improvement Fee Goal is to modernize transit systems, increase ridership, reduce greenhouse gas emissions, improve transit safety & benefits to disadvantage communities Administered in DRMT, in coordination with CalSTA Awards made by the California State Transportation Agency through Competitive grant process Program funds transformation capital projects that increase ridership and decrease greenhouse gas emissions Competitive program to fund a small number of transformational projects that improve the statewide network and reduce greenhouse gas emissions. Primary evaluation criteria: emission reduction, ridership growth, achievement of integrated service, and safety benefit Secondary evaluation criteria: co-benefits of broader sustainable community goals, disadvantaged community benefits, geographic balance Current funding source under TIRCP is auction proceeds. Program is entering it’s 3rd funding cycle. Approximately $615 million awarded by CalSTA. The first cycle is expected to include 2-years of funding ($125 million). Per the draft guidelines, no project shall exceed 33 percent of total funding, and each applicant may only submit for one small project <$3 million, and one large project >$3 million. Other secondary criteria: Collaboration with other operators Geographic equity Consistency with SCS Integration across modes Financial viability of project and continued high-level of service.

Transit and Intercity Rail Capital Program (TIRCP) Funding SB 1 Funding (Transportation Improvement Fee) 2017-18 2018-19 10-Year $245M $245M $2,714B SB 1 Loan Repayment 2017-18 2018-19 10-Year $78M $78M $236M

Transit and Intercity Rail Capital Program (TIRCP): Eligible Projects Rail and bus capital projects Intercity, commuter, and urban rail projects that increase service levels, improve reliability, or decrease travel times Rail, bus, and ferry integration implementation Bus rapid transit and other bus and ferry investments Examples could include: BART to San Jose Extension Expanded Los Angeles Union Station Capacity Extended and improved community and intercity rail services Investments in streetcars, and other local transit, especially that tied to the intercity network.

State Rail Assistance Program (SRA) Overview Provides a dependable funding source for the state’s commuter and intercity rail agencies to improve rail service SB 1 directs a 0.5% portion of new diesel sales tax revenue for allocation: Half of revenue is allocated in equal shares to commuter operators through 2019-20, and via guidelines thereafter Half of revenue is allocated to intercity rail corridors such that each of the existing three corridors receives at least 25% of the intercity rail share Funding is available for capital and operations improvements Funding will be provided to the five commuter rail operators and the three intercity rail joint power authorities. CalSTA responsible for disbursement of funds. State’s role is to confirm operations and capital improvement are likely to be achieved with proposed projects or expenditure plans submitted and that proposed expenditures are consistent with the broad definition of mass transportation purposes. Administered through CalSTA SB 1 directs a 0.5% portion of new diesel sales tax revenue for allocation: half to the 5 commuter rail providers and half to intercity rail corridors Half of revenue is allocated in equal shares to commuter operators through 2019-20, and via guidelines thereafter Half of revenue is allocated to intercity rail corridors such that each of the existing three corridors receives at least 25% of the intercity rail share SRA guidelines are complete – posted on CalSTA website: http://calsta.ca.gov/state-rail-assistance-program/ SRA applications must be submitted electronically to SRA@calsta.ca.gov by December 15, 2017 to be considered for initial funding receipt in February 2018. Applications received at a later date will be considered on a rolling basis. Initial project approvals will be announced by the Transportation Agency by January 31, 2018.

State Rail Assistance Program (SRA) Funding Estimated Distribution (Commuter) 2017-18 2018-19 2019-20 Altamont Corridor Express Authority (ACE) $2.5M $3.9M $4.1M North County Transit Development Board (Coaster) $2.5M $3.9M $4.1M Peninsula Corridor Joint Powers Board (PCJPB) $2.5M $3.9M $4.1M Sonoma-Marin Area Rail Transit District (SMART) $2.5M $3.9M $4.1M Southern California Regional Rail Authority (Metrolink) $2.5M $3.9M $4.1M Estimated Distribution (Intercity) 2017-18 2018-19 2019-20 Capitol Corridor Joint Powers Authority $3.1M $4.9M $5.1M LOSSAN Rail Corridor Agency (Pacific Surfliner) $3.1M $4.9M $5.1M San Joaquin Joint Powers Authority $3.1M $4.9M $5.1M This revenue is estimated to be $25 million in 2017-18, $39 million in 2018-19, and $41 million in 2019-20.  The majority of program funding is directed by statutory formula to rail operators, with guidelines defining process and timeline for agencies to obtain funding.

State Rail Assistance Program (SRA) Eligible Projects Similar to the State Transit Assistance program, these funds may be used for both operations and capital improvements. Projects to improve rail service, but not limited to the following: Operations funding for expanded service, outreach, increased customer amenities, and discounted tickets, with a purpose of increasing ridership Capital investments such as new and cleaner-emissions rolling stock, as well as track and station investments The funds made available by this section may be used for operations and capital improvements. Allows for projects that cover a full range of transportation planning and mass transportation purposes, with the direction that rail agencies spend these funds in a cost-effective manner to provide operations and capital improvements for the benefit of the public. Transportation planning efforts includes, but is not limited to, service development plans, environmental reporting, feasibility studies, alternative analysis, strategic plans, ridership modeling, multi-agency integration efforts, schedule optimization, and long-and short-range transit planning. primary responsibility is assigned to the recipient rail agencies to maximize public benefit with these funds State Rail Assistance will benefit the public by providing the state’s commuter and intercity rail agencies with dependable supplemental revenue that is flexible to invest in the most cost-effective manner to improve rail service including, but not limited to the following: 1. Operations funding for expanded service, outreach, increased customer amenities, and discounted tickets, with a purpose of increasing ridership 2. Capital investments such as new and cleaner-emissions rolling stock (to increase capacity and reduce emissions), as well as track and station investments (which will reduce travel times, delays, improve accessibility and enhance the customer experience). Public Utility Code section 99312.3 continuously appropriates the revenue received from a 0.5 percent sales tax on diesel fuel to State Rail Assistance. This revenue is estimated

Solutions for Congested Corridors Program Overview Funds projects designed to reduce congestion in highly traveled and highly congested corridors that balance transportation improvements, community impacts, and that provide environmental benefits Support and encourage collaborative and comprehensive corridor planning Benefit mobility, quality of life and environment through comprehensive planning efforts Funds projects that are part of a comprehensive corridor plan Regional agencies submit projects to CTC for approval. All projects nominated for the Congested Corridors Program must be in a multimodal corridor plan. For the initial program, the Commission will accept a broad range of existing corridor plans that are specific to a transportation corridor and written with a corridor planning intent. Acceptable corridor plans ideally incorporate all transportation modes that are presently used or have potential to move people and goods along that corridor. In addition, the plans should address safety, congestion, accessibility, economic development, land use, and air quality and greenhouse gas emissions. Acceptable corridor plans include, but are not limited to the following: • Corridor System Management Plans • An Integrated Corridor Management plan or program • A plan or program developed for a specific multimodal, multiagency transportation corridor • An integrated analysis of mode specific plans along a corridor Schedule: Guidelines submitted to the Joint Legislative Budget Committee and the Transportation policy committees in the Senate and Assembly, November 6, 2017 Guidelines Hearing, South, December 6, 2017 Adoption of Guidelines, December 6, 2017 Applications Due, February 16, 2018 Release staff recommendations, April 25, 2018 Program Adoption May 16, 2018

Solutions for Congested Corridors Program Funding Competitively awarded funding program $250 million each fiscal year, beginning in 2017-18 Programs of projects will be adopted every two years Programming cycles may cover a multi-year programming period and may include updates to previous programs. Funding will come from the Transportation Improvement Fee. CTC will program projects

Solutions for Congested Corridors Program Eligible Projects Project elements within the corridor plans may include, but are not limited to the following facility types: State Highways (with limitations) Local streets and roads Public transit facilities, including rail Bicycle and pedestrian facilities Restoration or preservation work that protect critical habitat or open space **while state highways are eligible for funding, the program may not be used to construct general purpose lanes on the state highway system.  This is regardless if it is a freeway or conventional highway.  HOV lanes or managed lanes are acceptable.  This restriction does not apply to local streets and roads. Projects eligible for funding under the program include, but are not limited to, the following: • Addition of a high-occupancy vehicle lanes and managed lanes. • New or existing transit infrastructure improvements including: adding roadway capacity for improved transit service, such as bus-only lanes or traffic signal priority; adding rail capacity or implementing other rail improvements or traffic signal priority for improved light rail service; operational and/or safety improvements that allow for faster transit speeds, more reliable service, or more frequent service; improvements at transit stations that allow for improved safety, operational efficiency, or additional capacity. • New or existing rail infrastructure such as: construction of track siding to allow for trains to pass; adding railroad capacity by expanding the number of tracks serving the rail corridor; operational and/or safety improvements that allow for faster train speeds; improvements at rail stations that allow for improved safety, operational efficiency, or additional capacity. • Transit hubs to increase linked trips or multimodal transportation modes. • Transit hubs or stations and nearby roadways providing accessibility for first mile and last mile connectivity to public transit systems. • Acquisition of buses, rail cars, locomotives, or other rolling stock, including zero-emission buses.

Local Partnership Program Overview & Funding Funding is available to local entities who have voter approved taxes or fees solely dedicated to transportation improvements Approximately $200 million a year for self-help counties, cities, districts and regional transportation agencies Competitive and Formulaic Grant Programs Initial Programming Cycle, 2017-18 through 2019-20: Competitive Program 50% distribution Formulaic Program 50% distribution CTC will have overall responsibility to select, program and allocate projects. Program will require a one-to-one match of private, local, federal or state. Cost incurred prior to CTC allocation approval will not be eligible for reimbursement by the State.

Local Partnership Program Eligible Projects Improvements to transit facilities Acquisition of rolling stock, buses or transit equipment Bicycle or pedestrian improvements State highway improvements Sound walls (freeways) Road maintenance and rehabilitation Other transportation improvements Eligible Projects include: B. Improvements to transit facilities, including guideways, that expand transit services, increase transit ridership, improve transit safety, enhance access or convenience of the traveling public, or otherwise provide or facilitate a viable alternative to driving. C. The acquisition, retrofit, or rehabilitation of rolling stock, buses, or other transit equipment, including, but not limited to maintenance facilities, transit stations, transit guideways, passenger shelters, and fare collection equipment with a useful life of at least 10 years. The acquisition of vans, buses, and other equipment necessary for the provision of transit services for seniors and people with disabilities by transit and other local agencies is an eligible project under this paragraph.

Trade Corridor Enhancement Program Overview Fund infrastructure improvements on federally designated Trade Corridors, as identified in the California Freight Mobility Plan, including other corridors that have high volume freight movement determined by the CTC. Support the goals of the National Highway Freight Program, the California Freight Mobility Plan and the guiding principles in the California Sustainable Freight Action Plan. $300 million annually For projects related to the routes and transportation infrastructure vital to California’s trade and freight economy Goes to projects that will make: Improvements to highways so they can more efficiently handle and move freight Freight rail system improvements Enhancements to build up the capacity and efficiency of ports Truck corridor improvements, such as dedicated truck facilities or truck toll facilities Border access improvements Surface transportation, local roads and connector road improvements to help move goods from California’s ports Program Guidelines have been completed Nominate projects to the MPO deadline early 2018 MPO submits to CTC Projects will placed in a priority list

Trade Corridor Enhancement Program Fund Estimates State Resources FY 2017-18 - $200 M FY 2018-19 - $298 M FY 2019-20 - $296 M 3-Year TOTAL: $794 M Federal Resources FY 2017-18 - $293 M FY 2018-19 - $115 M FY 2019-20 - $127 M 3-Year TOTAL: $535 M Annually, $70 Million of the Federal resources is designated for Grade Separation projects. The rest of the federal funds will be delegated to other freight related projects, ports and border freight.

Trade Corridor Enhancement Program Eligible Projects Highway improvements Freight rail system improvements Port capacity and efficiency enhancements Truck corridor improvements Border access improvements Surface transportation, local road and connector road improvements Port and/or rail projects Intelligent Transportation Systems (ITS) or other technology improvements Mitigation efforts to reduce environmental impacts of freight movement Highway improvements to more efficiently accommodate the movement of freight. • Freight rail system improvements to enhance the ability to move goods, including grade separations. • Port capacity and efficiency enhancements, excluding the purchase of fully automated cargo handling equipment. • Truck corridor improvements, including dedicated truck facilities or truck toll facilities, including the mitigation of the emissions from trucks or these facilities. • Border access improvements to enhance goods movement. • Surface transportation, local road, and connector road improvements to effectively facilitate the movement of goods. Port and/or rail projects to facilitate intermodal interchange, transfer, and access into or out of the facility (limited to 10% of federal yearly apportionments). • Intelligent Transportation Systems (ITS) or other technology to improve the flow of freight, real time information systems, weigh-in-motion devices, electronic screening/credentialing systems, traffic signal optimization, work zone management and information systems, ramp metering, electronic cargo and border security technologies. • Environmental/community mitigation or efforts to reduce environmental impacts of freight movement, such as projects that reduce noise, overnight truck idling, or truck queues and advanced traveler Information Systems such as Freight Advanced Traveler Information Systems (FRATIS).

Accountability and Performance Measures SB 1 website: Rebuildingca.ca.gov Senate Bill 1, the Road Repair and Accountability Act of 2017, requires transparency and accountability, which is happening concurrent with guideline development and project selection – all SB 1 projects will be listed on the Program website SB 1 requires performance criteria and ensure efficient use of funds

Questions and Feedback Kyle Gradinger Division of Rail & Mass Transportation (916) 653-0243