The Low Carbon Transit Operations Program provides operating and capital assistance for transit projects that reduce greenhouse gas emission and improve mobility, with a priority on serving disadvantaged communities. This program is administered by Caltrans in coordination with the California Air Resources Board and the State Controller's Office. A total of $146,061,319 million in Program funds are available statewide for Fiscal Year 2019/20. The Program receives an ongoing cap and trade revenues allocation of five percent (5%). 

As a regional transportation planning agency, TAMC is a designated recipient of Program funds for Monterey County, and can act as a lead agency on eligible projects or as a "contributing sponsor" that can pass through funds to Monterey-Salinas Transit to support an eligible project. Program funds are allocated using the State Transit Assistance distribution formula, which allocates funding to transportation planning agencies based on population and to transit operators based on transit operator revenues. The Transportation Agency's allocation of Program funds is $814,702 and Monterey-Salinas Transit's allocation is $282,124 for a Monterey County total of $1,096,826.

Because the Transportation Agency does not currently have an eligible project, the Agency will act as a contributing sponsor to support Monterey-Salinas Transit's proposal (web attachment). Monterey-Salinas Transit is required to submit an allocation request to Caltrans by April 8, 2020 including a letter of support from the contributing sponsor.

The Transportation Agency's contribution of $814,702 will go towards the following components of Monterey-Salinas Transit's proposal: 

• Free weekend fares in Salinas (Lines 41, 42, 44, 45, and 49)
• Distribution of 1,062 monthly youth passes to youth living in a disadvantaged community (as required by the Program)
• Free fares for Hartnell College and Monterey Peninsula College students boarding anywhere in the transit district's service area
• Discounted hospitality group transit passes to incentive use of the transit agency's Group Discount Program

Monterey-Salinas Transit's allocation of $282,124 will go towards the following components of the transit agency's proposal:

• Free fares systemwide on "transit days" including Election Day, Bus Driver Appreciation Day, Monterey-Salinas Transit's Anniversary, and Try Transit Day
• Travel training assistance for groups interested in learning to ride the bus
• Two charging stations for two electric buses

Monterey-Salinas Transit's proposal is an eligible project that is consistent with the Low Carbon Transit Operations Program guidelines. Staff recommends allocating the Transportation Agency's share to support Monterey-Salinas Transit's projects.