Meeting_Body
PLANNING AND PROGRAMMING COMMITTEE
APRIL 13, 2016
Subject/Action
SUBJECT: CAP-AND-TRADE LOW CARBON TRANSIT OPERATIONS PROGRAM
ACTION: APPROVE REVISED RESOLUTIONS FOR FY2015-16 FUNDING
Heading
RECOMMENDATION
Title
CONSIDER:
A. APPROVING the revised Resolution in Attachment A that authorizes the Chief Executive Officer (CEO) or his designee to claim $16,825,598 in fiscal year (FY) 2015-16 Low Carbon Transit Operations Program (LCTOP) grant funds for one year of Gold Line Foothill Extension Phase 2A operations and one year of Expo Line Phase 2 operations; and
B. APPROVING the Resolution in Attachment B that certifies that Metro will comply with the LCTOP Certification and Assurances and the Authorized Agent requirements, and authorizes the CEO or his designee to execute all required documents and any amendments with the California Department of Transportation.
Issue
ISSUE
At the October 2015 meeting, the Board approved a resolution that authorized Metro to claim its FY15-16 LCTOP funds and identified that the funds would be used toward operations of the Gold Line Foothill Extension Phase 2A and Expo Line Phase 2. The original deadline for this allocation request was November 1, 2015. However, shortly before the submittal date, Caltrans announced that the deadline would be extended to February 1, 2016 and issued new guidelines for FY15-16 LCTOP grant funds in December 2015. After submittal of the grant package, Caltrans informed Staff that the Board resolution approved in October 2015 and included in the package needed to be revised. While the document approved by the Board was generally consistent with the guidelines, it did not use the new format required by the guidelines. Staff is seeking Board approval to submit a revised project resolution and approve the new Certification and Assurances, and authorized agent resolution to be added to the grant package.
Discussion
DISCUSSION
Board Item #28 at the October 2015 Board meeting approved a resolution that: 1) authorized the CEO or his designee to claim up to $28 million in FY 2015-16 LCTOP funds; 2) identified the Gold Line Foothill Extension Phase 2A and Expo Line Phase 2 as the projects to be funded with the LCTOP funds; and 3) authorized the CEO or his designee to execute and amend all required LCTOP documents with Caltrans including the Certification and Assurances and Authorized Agent forms. The new guidelines released in December 2015 stipulated that two separate resolutions would be required, one for project identification and the other for the Certification and Assurances, and the Authorized Agent requirements. The resolution approved by the Board in October combined portions of the two new resolutions into one document, but Caltrans has determined it does not meet the new requirements released after the Board action.
In addition, although the LCTOP submittal deadline was November 1, 2015, the final fund amounts were not released until October 30, 2015 by the State Controller’s Office. This is the reason the resolution stated that Metro would claim up $28 million to allow flexibility once the final LCTOP amounts were available. The amount included in the resolution was an estimate based on prior information released on LCTOP. Therefore, the proposed revised project resolution reflects the final LCTOP grant amount made available to Metro ($16,825,598) and the fund amounts to be allocated to each identified project.
LCTOP Program Funding
The LCTOP was created by California Senate Bill 862 to provide funding, on a formula basis, for operational or capital expansion projects to reduce greenhouse gas emissions and improve mobility, with a priority on serving disadvantaged communities. The grant funds are derived from California’s Cap-and-Trade Program and are the result of quarterly auctions of emission credits for greenhouse gas emitters regulated under Assembly Bill AB32. Auction proceeds, known as the Greenhouse Gas Reduction Fund (Fund), are to be reinvested in various projects that further reduce emissions. In FY 2014-15, $25 million was appropriated to LCTOP, one of 11 such programs, from the Fund. The amount made available for FY 2015-16 is $75 million though it had been anticipated to be $100 million prior to the final fund allocations being released.
Transit agencies receiving funds from the LCTOP shall submit expenditure proposals listing projects that meet all of the following criteria:
• Support new or expanded bus or rail services, or expanded intermodal transit facilities,
• Enhance or expand transit service to increase mode share,
• Reduce greenhouse gas emissions, and
• For agencies whose service areas include disadvantaged communities (DAC), 50 percent of total funds received shall be expended on projects or services that benefit the DAC.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
The requested actions will have no impact on the safety of our customers or employees.
Financial_Impact
FINANCIAL IMPACT
Adoption of the LCTOP resolutions and authorization of the CEO to execute the required documents to claim LCTOP funds would positively impact the agency’s budget by making $16,825,598 available to support the operation of Metro Rail service.
Impact to Budget
Claiming LCTOP funds will have a positive impact on the FY 2016 budget, as LCTOP funds will be disbursed to Metro by May 1, 2016.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board could choose not to approve the resolutions in Attachment A and Attachment B. Staff does not recommend this alternative because it would risk loss of Metro’s FY15-16 LCTOP fund allocation amount.
Next_Steps
NEXT STEPS
• May 1, 2016: Caltrans and ARB review and approve list of projects and submit to State Controller’s Office.
• June 1, 2016: State Controller’s Office will release approved amount of funds to recipients.
Attachments
ATTACHMENTS
Attachment A - Resolution to Execute LCTOP Projects
Attachment B - Resolution to Execute LCTOP Certifications and Assurances, and Authorized Agent Forms
Prepared_by
Prepared by: Vincent Lorenzo, Transportation Planning Manager, (213) 922-4320
Cosette Stark, DEO, Regional Grants Management, (213) 922-2822
Reviewed_By
Reviewed by: Calvin E. Hollis, Interim Chief Planning Officer, (213) 922-7319
