DATE:
| 3/28/2017 | TO:
| HONORABLE MAYOR AND CITY COUNCIL | FROM:
| MINTZE CHENG, PUBLIC WORKS DIRECTOR | SUBJECT:
| ADOPT A RESOLUTION AUTHORIZING THE EXECUTION OF AN APPLICATION WITH THE STATE OF CALIFORNIA TO USE THE LOW CARBON TRANSIT OPERATIONS PROGRAM (LCTOP) FOR A PROPOSED PROJECT TO REDUCE A FUTURE VEHICLE FLEET’S EMISSIONS |
A resolution has been prepared authorizing the City Manager’s designee to execute an application for the use of Low Carbon Transit Operations Program (LCTOP) funds. Staff recommends approval of the attached resolution.
BACKGROUND
Assembly Bill (AB 32), the California Global Warming Solutions Act of 2006, took a long-term, comprehensive approach to addressing climate change and its effects on the environment and natural resources. The legislation allows the California Air Resources Board (CARB) to establish a quarterly auction of a limited number of greenhouse gas (GHG) tradable permits. The program is commonly referred to as the Cap-and-Trade, whereby the proceeds from these auctions fund legislated programs furthering the purpose of AB32.
The LCTOP is one of several programs that are part of the Transit, Affordable Housing, and Sustainable Communities Program established by the California Legislature in 2014 by Senate Bill 862 (SB 862) drafted to further the purpose of AB32. Senate Bill 852 (Statutes of 2014) appropriates $25 million for LCTOP for Fiscal Year (FY) 2014-15 and Senate Bill 862 continuously appropriates five percent (5%) of the annual auction proceeds in the Greenhouse Gas Reduction Fund for LCTOP beginning in FY2015-16.
Approved projects in LCTOP will support new or expanded bus or rail services, expand intermodal transit facilities, and may include equipment acquisition, fueling, maintenance and other costs to operate those services or facilities, with each project required to reduce greenhouse gas emissions. Funds in this program are allocated to operators by the Metropolitan Transportation Commission (MTC) through the State Controller’s Office. Funds are distributed based on revenues and, through MTC Resolutions 4123 and 4130, based on population. The California Department of Transportation (Caltrans) is the administering agency.
DISCUSSION
Union City will receive approximately $3,885 in direct LCTOP funds from Caltrans and $33,064 in LCTOP funds through the MTC population based calculation for the FY2016-17 program period. The Metropolitan Transportation Commission projects over the course of twenty-five (25) years that Union City will receive $1.5 million dollars in combined revenue and population funds from this program.
The FY2016-17 funds will be combined with future LCTOP allocations as well as Federal and local transit funds for proposed hybrid retrofits to a future paratransit vehicle fleet procurement. The attached funding application nominates the proposed project and allows Caltrans to allocate those funds towards the proposed project.
FISCAL IMPACT
LCTOP funds will be combined with other Federal and local transit funds for the proposed project. There will be no impact on the General Fund.
RECOMMENDATION
It is recommended City Council adopt the attached resolution authorizing the City Manager or designee to execute the required funding application to nominate the proposed project, to allow Caltrans to allocate funds to the City’s proposed project, and to receive LCTOP funds for the proposed project.
Prepared by:
Wilson Lee, Transit Manager
Submitted by:
Mintze Cheng, Public Works Director |