1. LOW CARBON TRANSIT OPERATIONS PROGRAM [SB 862 (2014)]
April 14,2015

2. Starting Points: Climate Policy to Reduce GHG Emissions
AB 32 (2006)
Target:
Greenhouse Gas (GHG) emissions at 1990 levels by 2020 and maintain reductions
Authorized the Cap and Trade Program at the Air Resources Board (ARB)
SB 375 (2008) and SB 391 (2009)
Required Sustainable Communities Strategies in Regional Transportation Plans
SB 535 (2012)
Directs state and local agencies to make significant investments in disadvantaged communities

3. State Control Office/Caltrans Low Carbon Transit Operations Program
Program information
Category
Department
Program
On-going
High-Speed Rail Authority
High-Speed Rail Project
$250 m
25%
Sustainable Communities and Clean Transportation
State Control Office/Caltrans
Low Carbon Transit Operations Program
$25 m 5%
CalSTA/ Caltrans
Transit and Intercity Rail Capital Program
10%
Strategic Growth Council
Affordable Housing and Sustainable Communities Program
$130 m
20%
Air Resources Board
Low Carbon Transportation
$200 m
Energy Efficiency and Clean Energy
Dept. of Community Services and Development
Energy efficiency Upgrades/Weatherization
$75 m
Energy Commission
Energy Efficiency for Public Buildings
$20 m
Dept. of Food and Agriculture
Agricultural Energy and Operational Efficiency
$ 15 m
Natural Resources and Waste Diversion
Dept. of Fish and Wildlife
Wetlands and Watershed Restoration
Dept. of Forestry and Fire protection
Fire Prevention and Urban Forestry Projects
$42 m
Cal Recycle
Waste Diversion

4. Budget – SB 862
Directs proceeds from Greenhouse Gas Reduction Fund to specific programs
Low Carbon Transit Operations Program (LCTOP) established
$25 million of FY funds
5% of future annual GGRF proceeds continuously appropriated
continuous

5. What are the key LCTOP Purposes?
Provide operating and capital assistance for transit agencies to:
Reduce greenhouse gas emissions
Improve mobility
With a priority on serving disadvantaged communities

6. What are the requirements for the transit agency?
Comply with guidelines developed by Caltrans and the State Air Resources Board
Provide the following documents to Caltrans:
Annual reporting requirements
List of proposed expenditures
Required documentation to demonstrate compliance

7. What are the roles of State Agencies?
Caltrans, in coordination with the Air Resources Board:
Establish guidelines describing methodologies to meet criteria
Determine eligibility of proposed expenditures
Establish reporting requirements

8. What are the roles of State Agencies?
The Strategic Growth Council will review guidelines for consistency with State policy
Caltrans will notify the State Controller’s Office of approved expenditures and allocation amounts
SCO shall allocate funding

9. Who is an eligible applicant for LCTOP funding?
50% to Regional Entities based on Population
Allocation based on Public Utilities Code (PUC) 99313
50% to Transit Agencies based on Farebox Revenue
Allocation based PUC 99314
*Agencies qualified as recipients of funds under PUC 99314, may also
receive funds from PUC as determined by each Regional Entity.

10. Key eligibility requirement for all LCTOP Projects:
Must directly enhance or expand transit service to increase mode share
Cal. Pub. Res. Code section 75221, subd. (b) (2)
“[A] project shall demonstrate that it will achieve a reduction in [GHG] emissions.” (Emphasis added.)
Cal. Pub. Res. Code section 75221, subd. (b) (3)
The State Air Resources Board will develop guidelines for benefiting disadvantaged communities (where applicable for transit agencies)
Cal. Gov. Code section 39715

11. What projects are eligible for funding?
Moneys for the program shall be expended to provide transit operating or capital assistance that meets all of the following criteria:
Expenditures supporting new or expanded bus or rail services, or expanded intermodal transit facilities, and may include equipment acquisition, fueling, and maintenance, and other costs to operate those services or facilities.
(2) The recipient transit agency demonstrates that each expenditure directly enhances or expands transit service to increase mode share.
(3) The recipient transit agency demonstrates that each expenditure reduces greenhouse gas emissions

12. What projects are eligible for funding?
Expand Transit Service:
Example:
Implement bus rapid transit (for new routes or expansion of existing routes)
Increase service (extend transit routes, increase frequency of service, extend service hours)
Free or reduce-fare transit passes/vouchers
Increase capacity on routes nearing capacity (add more buses, or rail cars to existing routes)
Elaborate on meaning of “fundamental and necessary”
Elaborate on “every person”

13. What projects are eligible for funding?
Projects that Support New/Expanded Transit Services:
Examples but, not limited to:
Purchase zero-emission or hybrid vehicles equipment (e.g. buses, railcars, auxiliary electrical power units)
Expanded intermodal transit facilities
Install new transit stops/stations that connect to bike paths/pedestrian path
Upgrade transit vehicles to support active transportation and encourage ridership (e.g., bicycle racks on buses; bicycle storage on rail cars)

14. Update & 2014-15 Timelines Cycle 1 Cycle 2
Interim Guidelines Dec. 19, 2014
Cycle 1
Agencies submit expenditure proposals Feb. 2, 2015
Caltrans and ARB concurrently review expenditures and submit
Approved projects to the SCO April 1, 2015
SCO releases 75% of approved amount of funds
to recipients April 15, 2015
SCO releases remaining 25% of approved amount June 30, 2015
Cycle 2
Agencies submit expenditure proposals April 15, 2015
Caltrans and ARB concurrently review expenditures and submit June 10, 2015
SCO releases of approved amount of funds to recipients June 30, 2015

15. How Do I Request project fund
FORMS LCTOP Resolution Sample LCTOP Authorized Agent LCTOP Certification and Assurances LCTOP List of Expenditures Form LCTOP Project Description and Allocation Request LCTOP Guide for LCTOP Project Description and Allocation Request LCTOP Letter of Intent

16. Frequent asked questions
Q: Do I have to use my share of the LCTOP this fiscal year, or may I “bank” them to next year?
A: In FY , you may not defer your funds, they must be used in this fiscal year or they will be lost . In subsequent fiscal years (starting in FY ) you may defer your share to LCTOP funds and combine the funds with the following years’ allocation.
Q: May I give my share of funds to another agency?
A: Funds may be contributed to another agency within your region that supports the approved project. If contributing sponsor has a disadvantage community (DAC) within its jurisdiction, they may only contribute funds to another entity that contains a DAC within its jurisdiction and at least 50% of the transferred funds must benefit a DAC.
Reference: Page 7, Contributing Sponsor, “LCTOP Guidelines.”

17. Continue: Frequent asked questions
Q: If I don’t have a disadvantaged community within my service area, do I have to do anything? A: You will need to provide a map for operating projects that clearly identify your service area even if it isn't within a disadvantaged community. Q: Why can’t I just use these funds for operations and buy fuel? A: Funds may be used to purchase renewable natural gas or other low carbon renewable alternative fuels that support new/expanded transit service. The recipient transit agency must demonstrate that each expenditure directly enhances or expands transit service to increase mode share and that expenditures reduce greenhouse gas emissions.

18. 2015-16 Timelines 2015-16 and continuous
Caltrans/DOF notifies SCO of estimated amount available to the Program July 10, or within 10 days of budget enactment
SCO notifies transit operators of available funds for fiscal year September 1, or within 60 days of DOF notice
Transit agencies submit expenditure proposals to Caltrans by November 1, or 60 days after fund notification is released
Caltrans and ARB reviews and approves a list of eligible projects and submits it to SCO by January 15

19. Timelines
SCO releases approved amount of funds to recipients Feb. 15 Up to the recipient’s share of auction proceeds received to date SCO releases remaining amount of approved funds to recipients up to remaining amount of share received from subsequent auctions June 30

20. Program information Or