Coversheet


Agenda Item 3.2.2


TRANSPORTATION AGENCY FOR MONTEREY COUNTY *Memorandum*

To:	Board of Directors
From:	Madilyn Jacobsen, Transportation Planner
Meeting Date:	April 28, 2021
Subject:	Cap and Trade Funds for Transit

RECOMMENDED ACTION:

APPROVE Resolution 2021-02 designating the Transportation Agency's allocation of $453,830 for FY 2020/21 Low Carbon Transit Operation funds to the Monterey-Salinas Transit District for electric bus charging infrastructure, and zero emission bus purchase and fleet-wide transition to renewable diesel, and authorizing the Executive Director to execute agreements necessary to transfer funds to Monterey Salinas Transit.

SUMMARY:

The California Legislature established the Low Carbon Transit Operations Program to distribute cap and trade funds to implement transit priority projects that reduce greenhouse gas emissions, with a priority on serving disadvantaged communities. Program funds are distributed to regional transportation planning agencies based on population and to transit agencies based on transit operator revenues. The Transportation Agency's allocation of Program funds is $453,830 and Monterey-Salinas Transit's allocation is $141,089 for a Monterey County total of $594,919.

FINANCIAL IMPACT:
This action will authorize the Executive Director to designate the Transportation Agency's allocation of $453,830 in Program funds for FY 2020/21 to the Monterey-Salinas Transit District for electric bus charging infrastructure, and zero emission bus purchase and fleet-wide transition to renewable diesel.

DISCUSSION:

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 $81,854,000 million in Program funds are available statewide for Fiscal Year 2020/21. 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. For agencies who service disadvantaged communities (DAC), at least 50% of the projects must benefit the disadvantaged community. The Transportation Agency's allocation of Program funds is $453,830 and Monterey-Salinas Transit's allocation is $141,089 for a Monterey County total of $594,919.

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 (attachment). Monterey-Salinas Transit was required to submit an allocation request to Caltrans by April 9, 2021 including a Board resolution from the contributing sponsor. Due to a delay in the fund estimate announcement from the State Controller's Office, MST was permitted to submit the draft resolution from TAMC with their application.

The Transportation Agency's contribution of $453,830 will go towards both components of Monterey-Salinas Transit's proposal:

Electric bus charging infrastructure for the Clarence J. Wright (CJW) Bus Yard
Zero emission bus purchase and fleet-wide transition to renewable diesel

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.

ATTACHMENTS:
	Description
	MST Spending Proposal
	Resolution 2021-02: LCTOP Allocation FY 2020-21