SB 1 Funding Overview and Regional Impacts January 2018

Inflation Has Eroded the Value of the Gas Tax History of the Base Gasoline Excise Tax Rate in California 82% drop in value since early 1960s Sources — Excise Tax Rate: Board of Equalization; Escalation: California State Highway Construction Cost Index and Consumer Price Index

Major New Funding Through Senate Bill 1 (SB 1) Transportation Improvement Fee (Vehicle Reg. Fee) Indexed to inflation from 2020 20¢ Diesel Excise Tax Increase Indexed to inflation from 2020 12¢ Gas Excise Tax Increase Indexed to inflation from 2020 4% Diesel Sales Tax Increase Price Based Gas Excise Tax Reset to 17.3¢ Indexed to inflation from 2019 $706 Million State General Fund Loan Repayment Electric Vehicle Fee

SB 1 Statewide Funding by Category MTC has responsibilities under state and federal law that guide planning and investment decisions. MTC prepares a regional transportation plan and to better align land use/transportation, a sustainable community strategy The take-away here is that planning comes first followed by funding decisions. The long-range plan is over a 25 to 30 year horizon and is updated every four years. There is significant public input and outreach, and all transportation project investments must be consistent with the plan to receive federal, state, or regional funding.

Competitive or Formula Major Programs   Program Competitive or Formula Average Annual Statewide Amount ($ in millions) Existing State Highway Operations and Protection Program Caltrans only $1,900 Local Streets and Roads Formula $1,500 Transit and Intercity Rail Capital Program Competitive $245 State Transit Assistance Augmentation $250 Planning Grants $25 Active Transportation Program $100 State Transportation Improvement Program New Local Partnership Program 50%/50% $200 Transit State of Good Repair $105 State Rail Assistance $38 Solutions for Congested Corridors Program Trade Corridors Enhancement Account $300

Estimated SB1 Program Revenue Increases Annual Revenue Increase Anticipated in FY 2018-19 Formula / TBD Competitive Existing Programs New Programs

Road Maintenance and Rehabilitation Account (LS&R) A wide array of non-capacity increasing projects are eligible, including: Road maintenance and rehabilitation Safety Railroad grade separations Complete streets components, such as sidewalk and bike lanes Traffic control devices Storm water/green streets elements Local Road Gas Tax Funding by Year and County (In Millions) County FY 16-17 Pre-RMRA FY 17-18 FY 18-19 (Est.) Alameda $52 $74 $99 Contra Costa $37 $54 $71 Marin $8 $12 $16 Napa $5 $10 San Francisco $25 $49 San Mateo $26 $38 $51 Santa Clara $64 $92 $122 Solano $15 $22 $29 Sonoma $17 $34 Region* $250 $364 $483 *May not sum due to rounding

Transit Formula Funding Transit Formula Funding by Year (In Millions) Two programs distributed by existing State Transit Assistance (STA) formula: STA Augmentation Increases existing STA funding for transit operations and capital projects Transit State of Good Repair Primarily for the maintenance, rehabilitation, and replacement of capital assets Operator FY 16-17 STA (Pre-SB1) FY 17-18 FY 17-18 Transit SGR FY 17-18 Total FY 18-19 Total (Est.) AC Transit $7.0 $14.1 $3.2 $17.2 $19.5 BART $16.1 $27.2 $6.1 $33.3 $37.7 Caltrain $3.9 $5.6 $1.2 $6.8 $7.7 Golden Gate $3.5 $2.6 $0.6 $3.6 SamTrans $2.4 $5.5 $6.7 $7.6 SFMTA $29.3 $42.4 $9.5 $51.9 $58.7 VTA $9.3 $19.3 $4.3 $23.7 $26.7 Small Operators $5.3 $6.5 $7.4 Subtotal Revenue-Based $75.0 $122.0 $27.3 $149.3 $168.8 Population-Based $26.2 $45.8 $10.3 $56.0 $60.5 Grand Total $101.2 $167.7 $37.6 $205.3 $229.2 *May not sum due to rounding

Active Transportation Program Supports projects that encourage increased use of active modes of transportation SB 1 provides $100 million annually in additional revenue for the ATP Program Funds split between a statewide competitive program and a regional, MTC-managed program Cycle 3 ATP – $38 million in Regional Program funds awarded to 21 projects Cycle 3 ATP – $41.9 million in Statewide Program funds awarded to 11 Bay Area projects

State Transportation Improvement Program (STIP) $290 million in additional programming capacity for the Bay Area in the 2018 STIP. Revenue increase due to the reset of the Price Based Gas Excise Tax to 17.3¢. Regional Transportation Improvement Program (RTIP) MTC is responsible for developing regional priorities. CMAs assist by nominating local projects Interregional Transportation Improvement Program (ITIP) Caltrans makes project selections for projects connecting multiple regions of the state 2018 RTIP: Project Type Summary ($ in Millions)

Local Partnership Program Funding is intended to reward jurisdictions, and regional entities that have voter- approved taxes, fees, or tolls (or imposed fee) solely for transportation purposes 50% Formula Initial North/South split based on proportional revenue generated Program funds generated by tolls, parcel & property taxes distributed proportionately based on revenue Program funds generated by sales taxes distributed based on county population relative to all Northern State counties with sales taxes $100,000 minimum funding share MTC / BATA Annual Share: $5.1 million due to voter approved tolls 50% Competitive 2-Year cycles Two programs: One for voter approved taxes and fees; one for imposed fees CTC Formula Program Approval in January 2018; Competitive program approved in May 2018

Local Partnership Program Fiscal Years 2018 and 2019 Formula Funding for the Bay Area (excluding BATA) $38 million to agencies around the region Agency LPP Funding (in Millions) AC Transit $1.1 ACTC $8.0 BART $1.9 C/CAG $0.3 CCTA $5.2 City of Orinda $0.2 NVTA SamTrans $1.8 SCTA $1.2 SFCTA $4.2 SMART $1.6 SMCTA TAM $1.0 VTA $9.4 Fiscal Years 2018 and 2019 BATA Formula Funding Project Sponsor Description LPP Funding (In Millions) MTC/ BATA Dumbarton and San Mateo Bridge Approach Express Lanes $8.2 Bay Bridge East Span Bike/Ped Connection Improvements $2.0

Solutions for Congested Corridors Marquee SB 1 program – focused on congestion relief Roads and transit In Bay Area, only MTC and Caltrans can submit projects $1 billion, four year first cycle Focus on delivery, projects in statute, and projects in most congested corridors Schedule MTC Approval in January 2018 Applications Due to CTC on February 16, 2018 CTC Program Approval in May 2018 Example Projects Project Sponsor Description Caltrans US-101 Marin-Sonoma Narrows US-101 Managed Lanes in San Mateo County

Trade Corridor Enhancement Program for goods movement corridors/projects Focus on projects in Regional Goods Movement Plan, multi-modal or port, and early delivery Combines SB 1 and federal funds $1.3 billion, five year first cycle Divided into Caltrans and regional pots Schedule MTC Approval in January 2018 Applications Due to CTC on January 30, 2018 CTC Program Approval in May 2018 Example Projects Project Sponsor Description Alameda CTC / Port 7th Street Grade Separation (East) Caltrans/ STA I-80 / 680 / 12 Interchange Improvements

Transit and Intercity Rail Program Example Projects Transformative transit projects that reduce GHGs Two prior TIRCP rounds already funded Combines SB 1 and Cap & Trade funds $2.4 billion, five-year cycle Focus on projects consistent with MTC adopted framework (MTC Res. No. 4130) Schedule MTC Endorsements in January 2018 Applications Due to CalSTA on January 12, 2018 CalSTA Award Announcement in April 2018 Operator Description TIRCP Request (In Millions) BART Train Control, Fleet Expansion $450 SFMTA Fleet Expansion, Facilities $600 VTA BART to San Jose $730

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