REPORT TO THE CITY COUNCIL
FROM: GREGORY A. BARFIELD, M.A., Director
Department of Transportation
BY: LINDA TAYLOR, Administrative Manager
Department of Transportation
Elizabeth Torres, Senior Management Analyst
Department of Transportation
SUBJECT
Title
***RESOLUTION - Authorizing submission of acceptance of, and execution of all documents and instruments related to California State Senate Bills 862, 9, 102, 125, 862, for Transit and Intercity Rail Capital Program, The Zero Emission Transit Capital Program funding allocations in the amount of $80,982,330 for Hydrogen Fuel Cell Electric Bus Purchases, Clean Fueling Infrastructure, and Accessible Bus Stop Improvements as approved by the California State Transportation Agency and administered by Fresno Council of Governments. (Subject to Mayor’s Veto).
Body
RECOMMENDATION
Staff recommends Council approve a resolution authorizing the City Manager or her designee to submit and accept funding allocation in the amount of $80,982,330 for the Transit and Intercity Rail Capital Program (TIRCP) and Zero Emissions Transit Capital Program (ZETCP) to the Fresno Council of Governments (FCOG) to fund hydrogen fuel cell electric bus (FCEB) purchases, clean fueling infrastructure, and accessible bus stop improvements. Additionally, staff recommends the City Manager or her designee to execute and file all necessary funding documents on behalf of the City.
EXECUTIVE SUMMARY
In 2023, California Senate and State Assembly both passed Senate Bill 125 (SB 125) allocating funding for zero-emissions transportation improvement projects under the TIRCP and ZETCP programs. The California State Transportation Agency (CalSTA) is required to develop the spending guidelines for the program, and to use population-based methodology to distribute the funding to Regional Transportation Planning Agencies (RTPAs) across the state, including the Fresno Council of Governments (FCOG). As the RTPA, FCOG is responsible for collecting funding allocation requests from the transit agencies within their purview, including the City of Fresno Department of Transportation/FAX (FAX).
FAX has determined to program this funding allocation to purchase FCEBs, build crucial clean fueling infrastructure, and conduct accessible bus stop improvements. These projects align with the goals of the SB 125 program and support the Department’s goals of increasing access to clean transit options for the residents of our service area.
To accept the funding allocation, the FAX must agree to abide by the SB 125 Guidelines set forth by CalSTA. Further, the City Manager or her designee must have authority to execute all agreements and instruments related to the funding allocation, including all requests, reports, schedules, and other associated documents.
BACKGROUND
The TIRCP program was created by SB 862 (Chapter 36, Statutes of 2014) and modified by Senate Bill 9 (Chapter 710, Statutes of 2015) to provide grants from the Greenhouse Gas Reduction Fund (GGRF) to fund transformative capital improvements that will modernize California’s intercity, commuter, and urban rail systems, and bus and ferry transit systems, to significantly reduce emission of greenhouse gases, vehicle miles traveled, and congestion.
In 2023, SB 102 (Chapter 38) and SB 125 (Chapter 54) created the ZETCP program, providing clear guidelines for the allocation of funds appropriated in the Budget Act of 2023, as subsequently amended in the Budget Act of 2024. These statutes define specific funding categories to be distributed to RTPAs (including FCOG) throughout the state for allocation to local transit operators (including FAX) and were identified and approved by FCOG and submitted to the state prior to the state budget’s adoption.
CalSTA issued guidance through the final guidelines for the Budget Act of 2024 SB 125 Formula-Based TIRCP and the ZETCP, dated January 10, 2025. Those guidelines are subject to future modification by CalSTA, but identify FCOG as the RTPA designated by the Governor for the Fresno County Region. FCOG recognizes the City of Fresno Department of Transportation - FAX (FAX), the City of Clovis - Clovis Transit (Clovis), and Fresno County Rural Transit Agency (FCRTA) as public transit operators in Fresno County eligible to receive funding allocations related to TIRCP, ZETCP GGRF, and ZETCP Public Transit Account (PTA), pursuant to SB 125.
On August 22, 2024, CalSTA approved an allocation of $119,707,058 across all fiscal years to be administered by FCOG. FCOG will make funding disbursements to FAX for our approved projects, based on the CalSTA approved allocation and deposits received. CalSTA will make subsequent program disbursements to FCOG subject to their adopted policy and guidelines, for future years of funding.
Based upon the SB 125 program guidelines, program goals of greenhouse gas reduction, and the goals and priorities of the City to increase access to clean transit options to residents of the FAX service area, the FAX funding allocation in the amount of $80,982,330 for all years (FY 2024 through FY 2027) will be used to support FCEB purchases, clean fueling infrastructure development, and accessible bus stop improvements.
As a condition to receive the funding allocation from FCOG, FAX shall adhere to requirements in the adopted guidelines, CalSTA Budget Act of 2024 SB125 Formula-Based Transit and Intercity Rail Capital Program & Zero Emission Transit Capital Final Guidelines, dated January 10, 2025, or subsequent revisions as made by CalSTA.
ENVIRONMENTAL FINDINGS
This action is not subject to California Environmental Quality Act (CEQA) at this time.
LOCAL PREFERENCE
Local preference was not considered because this resolution does not include a bid or award of a construction or services contract.
FISCAL IMPACT
There is no fiscal impact to the General Fund from this action. The projects programmed to be completed with this funding allocation shall be funded primarily through SB 125 and the related TIRCP program. FAX enterprise funds will make up any needed local match. Appropriations for the first year of program activity will be included and available in the FAX FY 2026 budget.
Attachments:
Resolution
SB125 Formula Based TIRCP and ZETCP Guidelines