HomeMy WebLinkAboutTransit Investments in Cap-and-Invest PlanOffice of the City Council
990 Palm Street, San Luis Obispo, CA 93401 -3249
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ilocity org
June 3, 2025
The Honorable Gavin Newsom, Governor
State of California
1021 O Street, Suite 9000
Sacramento, CA 9581-4
The Honorable Mike McGuire, President pro Tempore
Ca lifornia State Senate
IO21, O Street, Suite 8518
Sacramento, CA 95814
The Honorable Robert Rivas, Speaker
Ca lifornia State Assem bly
1021, O Street, Suite 8330
Sacramento, CA 95814
RE: Transit lnvestments in Cap-and-lnvest Plan
Governor Newsom, pro Tem McGuire, Speaker Rivas
On behalf of the City of San Luis Obispo (City), I write to you today to outline our priorities for Cap-
and-Trade (now, Cop-and-lnvest)reauthorization. The City of San Luis Obispo operates SLO Transit,
the local public transportation system that provides over 550,000 passenger trips annually, offering
an affordable, environmentally responsible, and equitable mobility option for community members
who rely on transit.
Thanks to funding from the Greenhouse Gas Reduction Fund (GGRF)-supported and continuously
appropriated Transit and lntercity Rail Capital Program (TIRCP) and Low Carbon Transit Operations
Program (LCTOP) over the past decade, we have been able to deliver transit projects and services
including, but not limited to, purchase of battery electric buses and purchase and installation of
electric vehicle charging infrastructure that have helped reduce greenhouse gas (GHG) emissions in
San Luis Obispo County. These monies have also helped us leverage tens of millions of dollars in
additional federal, state, and local funding over the last decade to maximize the scope of our projects
and services.
Therefore, we were disappointed to see that the Governor's Cap-and-lnvest plan is silent on
continued investment in the TIRCP and LCTOP, two of the state's most cost-effective climate
programs, beginning in Fiscal Year 2O25-26, and proposes to eliminate a series of planned one-time
expenditures from the GGRF in public transit, including critical one-time funding approved by the
state in 2023 to help transit agencies across the state meet our base operational needs in the fate of
a looming fiscal cliff. This uncertainty now threatens close to SE bittion total in GGRF funding for
public transit between FY 2025-26 and 2028-29, including approximately $2 billion in funding olready
programmed by the state and regional governments to individual transit projects and services.
lf this funding is not maintained in the final Cap-and-lnvest Plan, it will have far-reaching, and
potentially devastating, impacts on the following projects and services at our agency.
SB 125 TIRCP
Project Name: City of SLO-1
Project Description: Partial funding for purchase of six battery electric buses
TotalAward: S 280,000
Award Balance: S 280,000
lmpacts of GGRF Funding Cuts: The City will have to use Transportation Development Act (TDA)
funds to backfill the portion of the project covered by TIRCP funds. TDA funds are the most flexible
monies available to the City and are best used for operating assistance instead of capital projects.
Competitive TIRCP
Project Name: City of SLO-2
Project Description: Purchase and installation of electric vehicle charging infrastructure
Total Award: S 395,000
Award Balance: 5 395,000
lmpacts of GGRF Funding Cuts: The City will not be able to purchase enough charging stations to
support battery electric buses on order and will delay our transition to zero-emission technologies
SB 125 TIRCP
Project Name: City of SLO-3
Project Description: Replacement of Auto Vehicle Location system
TotalAward: S 130,000
Award Balance: S 130,000
lmpacts of GGRF Funding Cuts: The City's Auto Vehicle Location (AVL) system is outdated which
causes inconsistencies in the real-time information available to passengers. lf funding is made
unavailable, then there will be delays in replacing the system and will impact the community's
access to accurate and consistent transit service information.
SB 125 TIRCP
Project Name: City of SLO-4
Project Description: On-bus security camera system replacement
TotalAward: $ 750,000
Award Balance: S 750,000
lmpacts of GGRF Funding Cuts: The City's on-bus security camera system is failing and is overdue
for replacement. Safety is key concern of operators, riders, and prospective riders. A functional and
modern security camera system will ensure that riders and operators alike feel comfortable and
safe riding our system. Loss of funding would delay the project and require the City to pursue other
federal and state funding opportunities.
SB 125 TIRCP
Project Name: SLOCOG-5
Project Description: lmplementation of Cal-lTP open-loop payment system county-wide
Total Award: $ 2,611,000
Award Balance: S 2,611,000
lmpacts of GGRF Funding Cuts: The City is participating in the region's implementation of an open-
loop payment system through the State of California's lntegrated Travel Project. Loss of funding
would impact the City's ability to offer contactless payment as an on-board payment option and to
implement fare-capping technologies which benefits historically underserved and
underrepresented popu lations.
These project and service-level impacts will significantly hinder our ability to meet the service needs
of our riders, deliver projects that incite mode shift and reduce GHG emissions, and continue our
conversion to zero-emission vehicles.
lf the state is serious about combatting climate change, improving air quality, and addressing the
affordability crisis faced by everyday Californians, we should not only protect these existing transit
investments, but also increose our investments in clean, efficient, and affordable public transit.
According to CARB, the TIRCP has eliminated 23 million metric tons (MMT) of carbon dioxide
equivalent - the most of any Cap-and-Trade-supported program (and the equivalent of more than
5.3 million gas powered cars off the road annually). Additionally, the TIRCP has leveraged significant
federal funding from the lnfrastructure lnvestment & Jobs Act (llJA) programs, including, but not
limited to, the Capital lnvestment Grant Program, Bus & Bus Facilities Program, and Low or No
Emissions Grant Program, allowing California to multiply the impact of the GGRF investments.
Meanwhile, the LCTOP has invested approximately Sf .2 billion in 1,003 transit service, fare discount,
and zero-emission vehicle projects statewide over the last ten years, with 94% of this funding
benefitting California's priority populations. The CARB report outlines that investment in LCTOP will
reduce 6.9 million metric tons of carbon dioxide emissions (the equivalent of more than 776 million
gallons of gasoline).
California cannot reach its climate objectives without significantly increased transit ridership - CARB
estimates this requires over a sixfold increase. This is only possible with substantially augmented
levels of state investment in transit capital projects and services, as well as the enactment of policy
changes to, among other things, deliver transit priority on shared transportation infrastructure, and
improve coordination between state and local land use, housing, and transportation decisions.
Therefore, we urge the Governor and Legislature to ensure the final Cap-and-lnvest plan honors all
existing commitments from the GGRF to California transit agencies through 2030, and increases its
level of commitment to public transit agencies beyond 2030. We stand ready to continue to work to
meet the needs of our communities - now and into the future. Please give us the support to make
this a reality.
Thank you for your consideration.
Respectfully,
Y\,cL^tt-/1;--
Michelle Shoresman
Vice Mayor
City of San Luis Obispo
Cc:Assemblymember Dawn Addis
Senator John Laird
Dave Mullinax, League of California Cities
League of California Cities, citvletters@cacities.org