Part 2Transit and Intercity Rail Capital Program

Section § 75220

Explanation

The Transit and Intercity Rail Capital Program in California is designed to fund major improvements to the state's rail systems, bus, and ferry transit to achieve specific goals. These goals include reducing greenhouse gas emissions, expanding and improving transit services to boost ridership, integrating different rail services including high-speed rail, and improving safety.

The Transportation Agency reviews and approves project applications, which are then funded through the California Transportation Commission. Projects that are funded need to be transformative, meaning they should significantly cut down on vehicle usage, reduce congestion, and lower greenhouse gas emissions by creating or expanding transit systems to increase ridership.

(a)CA Public Resources Code § 75220(a) The Transit and Intercity Rail Capital Program is hereby created to fund transformative capital improvements, as defined in subdivision (d), that will modernize California’s intercity, commuter, and urban rail systems and bus and ferry transit systems to achieve all of the following policy objectives:
(1)CA Public Resources Code § 75220(a)(1) Reduce emissions of greenhouse gases.
(2)CA Public Resources Code § 75220(a)(2) Expand and improve transit service to increase ridership.
(3)CA Public Resources Code § 75220(a)(3) Integrate the rail service of the state’s various rail operators, including integration with the high-speed rail system.
(4)CA Public Resources Code § 75220(a)(4) Improve transit safety.
(b)CA Public Resources Code § 75220(b) The Transportation Agency shall evaluate applications consistent with the criteria set forth in this part and approve a multiyear program of projects for funding pursuant to Section 75224, which may be revised as necessary.
(c)CA Public Resources Code § 75220(c) The California Transportation Commission shall allocate funding to applicants pursuant to the program of projects approved by the Transportation Agency.
(d)CA Public Resources Code § 75220(d) “Transformative capital improvement” means a rail, bus, or ferry transit project that will significantly reduce vehicle miles traveled, congestion, and greenhouse gas emissions by creating a new transit system, increasing the capacity of an existing transit system, or otherwise significantly increasing the ridership of a transit system.
Transit and Intercity Rail Capital Program transformative capital improvements greenhouse gas reduction transit service expansion rail integration safety improvement California Transportation Commission Transportation Agency multiyear program fund allocation project applications vehicle miles reduction congestion reduction transit system capacity ridership increase
(Amended by Stats. 2015, Ch. 710, Sec. 1. (SB 9) Effective January 1, 2016.)

Section § 75221

Explanation

This law outlines which transportation projects can get funding and the requirements they need to meet. It lists various projects such as rail and bus improvements, systems that integrate different types of transit, and efforts to reduce travel times and greenhouse gas emissions. To qualify for funding, projects must show they can lower emissions, and there is a focus on helping disadvantaged communities. During project selection, factors like environmental benefits, collaboration among operators, equitable distribution, compliance with regional plans, and having other funding sources will be considered. Eligible applicants are public agencies that manage or plan transit services. Projects can combine this funding with other state transportation funds.

(a)CA Public Resources Code § 75221(a) Projects eligible for funding under the program include, but are not limited to, all of the following:
(1)CA Public Resources Code § 75221(a)(1) Rail capital projects, including acquisition of rail cars and locomotives, that expand, enhance, and improve existing rail systems and connectivity to existing and future transit systems, including the high-speed rail system.
(2)CA Public Resources Code § 75221(a)(2) Intercity, commuter, and urban rail projects that increase service levels, improve reliability, or decrease travel times, including infrastructure access payments to host railroads in lieu of capital investments.
(3)CA Public Resources Code § 75221(a)(3) Rail, bus, and ferry integration implementation, including integrated ticketing and scheduling systems, shared-use corridors, related planning efforts, and other service integration initiatives.
(4)CA Public Resources Code § 75221(a)(4) Bus rapid transit and other bus and ferry transit investments to increase ridership and reduce greenhouse gas emissions.
(b)CA Public Resources Code § 75221(b) In order to be eligible for funding under the program, a project shall demonstrate that it will achieve a reduction in emissions of greenhouse gases. In selecting projects for funding, the Transportation Agency shall consider the extent to which a project reduces emissions of greenhouse gases.
(c)CA Public Resources Code § 75221(c) The program shall have a programmatic goal of providing at least 25 percent of available funding to projects benefiting disadvantaged communities, consistent with the objectives of Chapter 830 of the Statutes of 2012.
(d)CA Public Resources Code § 75221(d) In evaluating grant applications for funding, the Transportation Agency shall consider all of the following:
(1)CA Public Resources Code § 75221(d)(1) The cobenefits of projects that support the implementation of sustainable communities strategies through one or more of the following:
(A)CA Public Resources Code § 75221(d)(1)(A) Reducing vehicle miles traveled from automobiles and the number of automobile trips through growth in transit ridership.
(B)CA Public Resources Code § 75221(d)(1)(B) Promoting housing development in the vicinity of rail stations and major transit centers.
(C)CA Public Resources Code § 75221(d)(1)(C) Expanding existing rail and public transit systems.
(D)CA Public Resources Code § 75221(d)(1)(D) Enhancing the connectivity, integration, and coordination of the state’s various transit systems, including, but not limited to, regional and local transit systems and the high-speed rail system.
(E)CA Public Resources Code § 75221(d)(1)(E) Implementing clean vehicle technology.
(F)CA Public Resources Code § 75221(d)(1)(F) Promoting active transportation.
(G)CA Public Resources Code § 75221(d)(1)(G) Improving public health.
(2)CA Public Resources Code § 75221(d)(2) The project priorities developed through the collaboration of two or more rail operators and any memoranda of understanding between state agencies and local or regional rail operators.
(3)CA Public Resources Code § 75221(d)(3) Geographic equity.
(4)CA Public Resources Code § 75221(d)(4) Consistency with an adopted sustainable communities strategy or, if a sustainable strategy is not required for a region by law, a regional plan that includes policies and programs to reduce emissions of greenhouse gases.
(5)CA Public Resources Code § 75221(d)(5) The extent to which a project has supplemental funding committed to it from other nonstate sources.
(6)CA Public Resources Code § 75221(d)(6) The extent to which the project will increase transit ridership.
(e)CA Public Resources Code § 75221(e) Eligible applicants under the program shall be public agencies, including joint powers agencies, that operate or have planning responsibility for existing or planned regularly scheduled intercity or commuter passenger rail service, urban rail transit service, or bus or ferry transit service.
(f)CA Public Resources Code § 75221(f) A recipient of moneys under the program may combine funding from the program with other state funding, including, but not limited to, the State Transportation Improvement Program, the Low Carbon Transit Operations Program, the State Air Resources Board clean vehicle program, and state transportation bond funds.
transportation projects rail improvements bus rapid transit greenhouse gas reduction sustainable communities disadvantaged communities transit integration public health benefits geographic equity sustainable community strategies supplemental funding transit ridership increase clean vehicle technology public agencies eligibility state transportation funds
(Amended by Stats. 2015, Ch. 710, Sec. 2. (SB 9) Effective January 1, 2016.)

Section § 75222

Explanation

If you're applying for a grant under this program, submit your application to the Transportation Agency. You can request funding for projects that take several fiscal years. Clearly explain the project purpose, scope, costs, funding sources, and timeline for completion. Specify which phases need money and identify all the funds needed to finish the project. Show how you'll handle ongoing operating and maintenance costs. You can submit multiple applications and use a project study report to prove your project’s eligibility for multiyear funding.

(a)CA Public Resources Code § 75222(a) Applications for grants under the program shall be submitted to the Transportation Agency for evaluation in accordance with procedures and program guidelines approved by the agency. An eligible applicant may submit an application to the agency to fund a project over multiple fiscal years. The agency may make multiyear funding commitments for projects that are proposed by an eligible applicant to be funded from the program over a period of more than one fiscal year.
(b)CA Public Resources Code § 75222(b) The application shall define the project purpose, intended scope, proposed cost, intended funding sources, and schedule for project completion.
(c)CA Public Resources Code § 75222(c) The application shall specify the phases of work for which an eligible applicant is seeking an allocation of moneys from the program.
(d)CA Public Resources Code § 75222(d) The application shall identify the sources and timing of all moneys required to undertake and complete any phase of a project for which an eligible applicant is seeking an allocation of moneys from the program. The application shall also describe intended sources and timing of funding to complete any subsequent phases of the project, through construction or procurement.
(e)CA Public Resources Code § 75222(e) The application shall include information describing the funding sources and approach to ensuring that ongoing operating and maintenance costs of the project are funded through the useful life of the project, as applicable.
(f)CA Public Resources Code § 75222(f) Eligible applicants may submit more than one application for grants under the program pursuant to this section.
(g)CA Public Resources Code § 75222(g) An eligible applicant may use a project study report or equivalent document to demonstrate eligibility of a project for inclusion in the multiyear program of projects pursuant to Section 75224. The project study report or equivalent document shall, at a minimum, be adequate to define and justify the project scope, cost, and schedule for the project application.
grant applications Transportation Agency multiyear funding project scope project cost funding sources project schedule project phases allocation of funds operating costs maintenance costs project study report project eligibility multiyear program project completion
(Amended by Stats. 2015, Ch. 710, Sec. 3. (SB 9) Effective January 1, 2016.)

Section § 75223

Explanation

This law section requires the Transportation Agency to hold at least two public workshops on draft guidelines for selecting programs before these guidelines are approved. The draft guidelines must be posted online at least 30 days before the first workshop and shared with the legislative fiscal and policy committees. Additionally, the usual rules for creating and approving procedures, known as the Administrative Procedure Act, do not apply to these particular guidelines.

(a)CA Public Resources Code § 75223(a) The Transportation Agency shall conduct at least two public workshops on draft program guidelines containing selection criteria prior to approval and shall post the draft guidelines on the agency’s Internet Web site at least 30 days prior to the first public workshop. Concurrent with the posting, the agency shall transmit the draft guidelines to the fiscal committees and the appropriate policy committees of the Legislature.
(b)CA Public Resources Code § 75223(b) The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) does not apply to the development and approval of procedures and program guidelines for the program pursuant to this section.
Transportation Agency public workshops draft guidelines selection criteria Internet posting legislative committees program approval Administrative Procedure Act exemption guideline development fiscal committees policy committees program procedures public input workshop requirements legislative transmission
(Added by Stats. 2015, Ch. 710, Sec. 4. (SB 9) Effective January 1, 2016.)

Section § 75224

Explanation

This law mandates that the California Transportation Agency must approve a program of transportation projects every five years, starting with the fiscal year 2018-19. These programs should aim to reduce greenhouse gas emissions as much as possible. Every two years, the Agency must approve a new five-year program. To fund projects over multiple years, the Agency will make funding agreements with eligible applicants. Starting from fiscal year 2026-27, regional transportation planning agencies must have an approved long-term financial plan by the Agency to receive funding for transit and rail projects. The guidelines will be updated to reflect this requirement.

(a)CA Public Resources Code § 75224(a) No later than July 1, 2018, the Transportation Agency shall approve a program of projects, which shall cover a period of five fiscal years, beginning with the 2018–19 fiscal year.
(b)CA Public Resources Code § 75224(b) The Transportation Agency shall approve each subsequent program of projects not later than April 1 of each even-numbered year. Each subsequent program shall cover a period of five fiscal years, beginning July 1 of the year of approval, and shall be a statement of intent by the Transportation Agency for the allocation and expenditure of moneys during those five fiscal years.
(c)CA Public Resources Code § 75224(c) In developing the program of projects, and consistent with the consideration of all other criteria for individual projects, the Transportation Agency shall seek to maximize the total amount of reductions in emissions of greenhouse gases that would be achieved under the program.
(d)CA Public Resources Code § 75224(d) For a project to be funded from the program over a period of more than one fiscal year, the Transportation Agency, at the request of an eligible applicant and in cooperation with the commission, shall enter into and execute a multiyear funding agreement with the eligible applicant for the project for an amount of program moneys and for any duration, as determined jointly by the agency and applicant.
(e)CA Public Resources Code § 75224(e) A regional transportation planning agency, as defined in Section 13987 of the Government Code, shall not be eligible to receive a grant under the Transit and Intercity Rail Capital Program in the 2026–27 fiscal year or any subsequent fiscal years unless the Transportation Agency approves the regional transportation planning agency’s long-term financial plan submitted pursuant to subdivision (d) of Section 13987 of the Government Code. The Transportation Agency shall update the guidelines approved pursuant to Section 75223 to reflect the eligibility limitation imposed pursuant to this subdivision.
Transportation Agency emissions reduction program of projects five fiscal years multiyear funding agreement greenhouse gases regional transportation planning Transit and Intercity Rail Capital Program long-term financial plan eligible applicant funding eligibility greenhouse gas reduction fiscal year 2026-27 transport funding project approval
(Amended by Stats. 2023, Ch. 54, Sec. 4. (SB 125) Effective July 10, 2023.)

Section § 75225

Explanation

This law section allows a lead applicant agency to request a letter of no prejudice from the commission for a project, which lets the agency spend its own money on a project and potentially get reimbursed later from specific funding sources. To get reimbursed, the project must have started, costs must be eligible, all legal requirements must be met, and there must be enough funds available. The agency and commission must agree on reimbursement terms, including timing and amount, based on fund availability. The commission can create guidelines in consultation with transit entities to implement these provisions.

(a)CA Public Resources Code § 75225(a) A lead applicant agency may apply to the commission for a letter of no prejudice for a project or for any component of a project included in the program of projects approved by the Transportation Agency. If approved by the commission, the letter of no prejudice shall allow the lead applicant agency to expend its own moneys for the project or any component of the project and to be eligible for future reimbursement, as applicable, from moneys available for the program from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code, or from moneys available for the program pursuant to subdivision (a) of Section 11053 of the Revenue and Taxation Code.
(b)CA Public Resources Code § 75225(b) The amount expended under subdivision (a) shall be reimbursed by the state from moneys available for the program if all of the following conditions are met:
(1)CA Public Resources Code § 75225(b)(1) The project or project component for which the letter of no prejudice was requested has commenced, and the regional or local expenditures have been incurred.
(2)CA Public Resources Code § 75225(b)(2) The expenditures made by the lead applicant agency are eligible for reimbursement in accordance with applicable laws and procedures. If expenditures made by the lead applicant agency are determined to be ineligible, the state has no obligation to reimburse those expenditures.
(3)CA Public Resources Code § 75225(b)(3) The lead applicant agency complies with all legal requirements for the project, including the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000)).
(4)CA Public Resources Code § 75225(b)(4) There are moneys designated for the program that are sufficient to make the reimbursement payment.
(c)CA Public Resources Code § 75225(c) The lead applicant agency and the commission shall enter into an agreement governing reimbursement as described in this section. The timing and final amount of reimbursement is dependent on the terms of the agreement and the availability of moneys for the program.
(d)CA Public Resources Code § 75225(d) The commission, in consultation with intercity, commuter, urban rail, and other public transit entities, may develop guidelines to implement this section.
lead applicant agency letter of no prejudice future reimbursement Greenhouse Gas Reduction Fund Transportation Agency approval project funding California Environmental Quality Act compliance eligible expenditures fund availability state reimbursement transit project guidelines regional or local expenditures public transit entities reimbursement agreement project commencement
(Amended by Stats. 2017, Ch. 255, Sec. 4. (AB 135) Effective September 16, 2017.)

Section § 75226

Explanation

This law focuses on how funds from the General Fund and the Greenhouse Gas Reduction Fund, which are intended for the Transit and Intercity Rail Capital Program, should be distributed. Instead of following the usual program process, these funds are directed to regional transportation planning agencies according to specific Public Utilities and Government Code guidelines. The funds can be used for transit operating expenses or significant capital improvements, given compliance with certain government codes. The goal is to provide temporary financial support to transit operators until sustainable solutions are found, prevent service cuts, boost ridership, and prioritize transit availability for dependent riders and key agencies.

(a)CA Public Resources Code § 75226(a) Notwithstanding any other law, moneys appropriated to the Transportation Agency in the annual Budget Act from the General Fund and the Greenhouse Gas Reduction Fund for purposes of the Transit and Intercity Rail Capital Program shall not be distributed pursuant to a program of projects adopted pursuant to Section 75222 and allocated by the California Transportation Commission pursuant to Section 75220.
(b)CA Public Resources Code § 75226(b) The moneys described in subdivision (a) shall instead be distributed to regional transportation planning agencies pursuant to Section 99313 of the Public Utilities Code and the distribution of those moneys shall be subject to the requirements of Section 13987 of the Government Code and the guidelines adopted pursuant to that section.
(c)CA Public Resources Code § 75226(c) Subject to compliance with Section 13987 of the Government Code, a regional transportation planning agency may use moneys described in subdivision (a) to fund transit operating expenses within its jurisdiction consistent with an approved regional short-term financial plan or a long-term financial plan, as applicable, or for transformative capital improvements described in Sections 75220 and 75221, or for both of these purposes.
(d)CA Public Resources Code § 75226(d) In allowing the funds described in subdivision (a) to be available for operating costs, it is the intent of the Legislature for those expenditures to do all of the following:
(1)CA Public Resources Code § 75226(d)(1) Provide one-time multiyear bridge funding for transit operators to address operational costs until long-term transit sustainability solutions are identified.
(2)CA Public Resources Code § 75226(d)(2) Assist transit operators in preventing service cuts and increasing ridership.
(3)CA Public Resources Code § 75226(d)(3) Prioritize the availability of transit for riders who are transit dependent.
(4)CA Public Resources Code § 75226(d)(4) Prioritize transit agencies representing a significant percentage of the region’s ridership.
(e)CA Public Resources Code § 75226(e) For purposes of this section, “regional transportation planning agency” means a recipient of funding described in paragraphs (1) and (2) of subdivision (a) of Section 99312.1 of the Public Utilities Code.
Transit funding Greenhouse Gas Reduction Fund Regional transportation planning agencies Transit operating expenses Capital improvements Sustainability solutions Service cuts prevention Ridership increase Transit dependent riders Public Utilities Code Government Code compliance Bridge funding Short-term financial plan Long-term financial plan Transit operators
(Amended by Stats. 2024, Ch. 53, Sec. 6. (AB 173) Effective July 2, 2024.)