Building Trades Efforts Result in Cap and Trade Funding for Transportation Projects

August 18, 2016 – The California State Transportation Agency this week announced $390 million in funding for new transportation projects across the state, made possible by State Building Trades efforts to invest cap and trade funds for transportation in 2015. Governor Brown, and then Senate president pro tem Darrell Steinberg with then Assembly Speaker John Perez were under pressure from many different interest groups to spend these funds in other ways.

But the Building Trades, working in unison secured the ongoing funding for High Speed Rail and other transportation projects throughout the state. What follows is the agency’s announcement of the funding, including a list of the latest projects, which is just one component of future transportation projects to be funded across California, in addition to High Speed Rail.

Transportation Agency Awards $390 Million in Cap and Trade
Grants to Expand Transit, Reduce Emissions and Create Jobs

Sacramento –  Tuesday, the California State Transportation Agency (CalSTA) announced 14 recipients for the 2016 Transit and Intercity Capital Program (TIRCP) grants.  The group of projects moves forward the Brown Administration’s focus on reducing harmful greenhouse gas emissions while advancing the state’s public transportation system. This year’s awards total $390 million in competitive grants made possible through the state’s Cap and Trade auction proceeds. 

“This investment of Cap and Trade dollars is really about transforming this state’s transportation system to create jobs, reduce harmful emissions, and expand mobility options so Californians can get around as efficiently and conveniently as possible,” said CalSTA Secretary Brian Kelly.

“Today we invest in California’s future—improved bus services in Fresno, BART to San Jose in the Bay Area, expanded ACE service to better connect the Northern San Joaquin Valley with Silicon Valley, new streetcar systems in Sacramento and Santa Ana, electrified transit services in the Bay Area and Southern California, vital improvements to LA Metro’s Green, Purple and Red lines, expanded rail services between Southern California cities and the Central Coast, and a new rail service connecting a major university with downtown San Bernardino.

California’s transportation future is about providing good, clean travel options while expanding access to mobility and economic opportunity for all.  This Cap and Trade program delivers today and promises to deliver much more in the future.  I’m proud to put these vital transportation dollars to work for all Californians.”

41 applications for funding from around the state were submitted for consideration this year. The 14 projects selected, valued at more than $3.8 billion, will reduce more than 4.1 million tons of CO2 statewide and 13 of the 14 recipient projects directly benefit disadvantaged communities.

Looking ahead, through Senate Bill 9 (Beall, 2015) CalSTA will be adopting a 5-year program of projects by July 1, 2018.  The 5-year program calls for larger, more transformative projects to be funded.  With that, the state anticipates being a long-term funding partner to see transformative projects come to fruition, for example:

• The BART Silicon Valley Phase II Extension to San Jose Diridon and Santa Clara stations
• Commuter and intercity rail projects in northern California, such as expanded ACE, San Joaquin and Capitol Corridor service, that will link the high-speed rail project to millions of Californians through shared stations in the Bay Area and the Central Valley
• Expanded capacity for Los Angeles Union Station
• Commuter and intercity rail projects in southern California, such as expanded Metrolink, Amtrak Pacific Surfliner, and Coaster service that will link the high-speed rail project to millions of Californians through shared stations in the south
• Street car, light rail, and high-frequency bus projects all around the state that expand transit ridership with zero-emission vehicles well suited to the achievement of climate goals 
• Investments in stronger integration between local transit and the statewide high speed, intercity and regional rail network, such as those underway in Fresno, that grow ridership and increase the utilization of existing services
• Expansion of the intercity rail network into new markets, such as the Coachella Valley and the Central Coast, and development of zero emission services on the intercity feeder bus network

CalSTA will hold workshops in late 2016, continuing into 2017, to receive public input on guideline development for the 2018 program.

Project funding for the 2016 awards will be supported by Cap and Trade auction proceeds from eight anticipated auctions in fiscal year 2016-17 and 2017-18, so cumulative auction proceeds are more important than the amount of revenue received from a single auction.

If the Legislature directs additional funds to the TIRCP in this legislative session, CalSTA may increase funding for announced awards and/or fund additional projects submitted as part of the 2016 program. 

A complete list of this year’s recipients can be found below.

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Transit and Intercity Rail Capital Program 2016 Awards