File #: 2022-0448   
Type: Policy Status: Passed
File created: 6/30/2022 In control: Board of Directors - Regular Board Meeting
On agenda: 8/25/2022 Final action: 8/25/2022
Title: CONSIDER: A. RECEIVING AND FILE the Congestion Mitigation and Air Quality (CMAQ) Funding Update; and B. ADOPT Modification to Financial Stability Policy to prioritize available CMAQ Program federal grants to the greatest extent possible for any eligible operations costs.
Sponsors: Planning and Programming Committee
Indexes: Budget, Budgeting, Congestion Mitigation And Air Quality Improvement Program, Crenshaw/LAX Transit Corridor Project, Grant Aid, Los Angeles International Airport, Metro Rail A Line, Metro Rail C Line, Metro Rail E Line, Metro Rail K Line, Metro Rail L Line, Policy, Regional Connector Transit Corridor Project
Attachments: 1. Attachment A - Metro Board Report # 2022-0124, 2. Attachment B - Modified Financial Stability Policy
Related files: 2022-0653
Meeting_Body
PLANNING AND PROGRAMMING COMMITTEE
AUGUST 17, 2022

Subject
SUBJECT: CMAQ FUNDING UPDATE

Action
ACTION: APPROVE RECOMMENDATIONS

Heading
RECOMMENDATION

Title
CONSIDER:

A. RECEIVING AND FILE the Congestion Mitigation and Air Quality (CMAQ) Funding Update; and

B. ADOPT Modification to Financial Stability Policy to prioritize available CMAQ Program federal grants to the greatest extent possible for any eligible operations costs.

Issue
ISSUE

This Metro Board report responds to a Board action in April 2022 (Attachment A) to report back to the Board in August 2022 on an operations funding outlook beyond Fiscal Year (FY) 23 and a policy to use CMAQ first for any eligible operations costs.

Background
BACKGROUND

CMAQ is a federal grant program for uses that mitigate congestion and provide air quality benefits. Metro receives an apportionment of about $156 million per year from CMAQ and uses the funds for buses, rail vehicles, rail capital projects (e.g., Regional Connector, Westside Subway Extension), rail operations, and carpool lanes. CMAQ must be programmed for a particular use in the federal transportation improvement program and obligated for that purpose within three years.

At its April 2022 meeting, the Board approved the use of CMAQ to fund a $21,749,863 cost increase to the I-10 High Occupancy Vehicle Lanes Project from Puente Avenue to SR-57. The Board approval included an amendment to the Board item to report back in August 2022 per Attachment A.

Discussion
DISCUSSION

Metro staff, in practice, currently program a maximum amount of CMAQ on operations costs. CMAQ is eligible to be spent on rail operations costs, net of any fare revenue (which is not part of the federal share), for three years (up to five years if the third year is spread over three years) of the initial operations of a transit rail line. Metro Countywide Planning & Development Department staff currently estimate the initial three years of operations costs an...

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