Part of the Bay Area 1994 Clean Air Plan involves implementing "transportation control measures" (TCMs) to reduce motor vehicle emissions. To provide funding for public agencies responsible for the TCMs, the state Legislature passed Assembly Bill 434 in 1991 and AB 414 in 1995. The legislation authorizes the Bay Area Air Quality Management District (BAAQMD) to impose a $4 surcharge on motor vehicle registration fees paid within its jurisdiction. Surcharge revenues, which total approximately $20 million annually, are channeled into the Transportation Fund for Clean Air (TFCA).

Legislation requires that 40% of the funds generated in each county be returned to that county to be used for eligible project and programs under the oversight of the county's designated "Program Manager" (in Contra Costa, the Contra Costa Transportation Authority has been so designated). As Program Manager, the Authority establishes criteria and determines which projects will be funded with Contra Costa's TFCA Program Manager funds. Each April, the Authority submits an "Expenditure Plan" to the BAAQMD indicating the projects to be funded in the upcoming year.

The remaining 60% of TFCA funds-called "Regional Funds" are used for (1) eligible programs managed directly by the BAAQMD, such as the smoking vehicle program, and (2) projects sponsored by public agencies from around the Bay Area, which are awarded the funds on a competitive process.

The enabling legislation provides that the following types of projects are eligible for funding through the TFCA:

• Implementation of ridesharing programs;
• Clean fuel bus purchases or leases for school districts and transit operators;
• Feeder bus or shuttle service to rail and ferry stations and to airports;
• Arterial traffic management, including, but not limited to, signal timing, transit signal preemption, bus stop relocation and "smart streets";
• Rail-bus integration and regional transit information systems;
• Demonstrations of low-emission vehicles and congestion pricing of highways, bridges and public transit;
• Smoking vehicles program;
• Automobile buy-back scrappage program; and
• Bicycle facility improvement projects that are included in a countywide bicycle plan or congestion management program.

In addition, TFCA funds allocated through the CMAs may also fund the following project categories:

• Trip reduction (other than ridesharing)
• Park and ride facilities on the Regional HOV Lane Network
• Transit service improvements
• Access to rail/ferries
• Intercity rail improvements
• Ferry service
• Youth transportation
• Transit incentives

Following is a summary of the BAAQMD's general policies regarding the expenditure of TFCA funds:

• Projects must reduce motor vehicle emissions and must not duplicate existing Regional Fund projects.
• Applications should demonstrate that the projects are viable, e.g. have sufficient total funding.
• Funds are only awarded to public agencies.
• The cost of developing proposals is not eligible to be reimbursed with TFCA funds.
• Only specified categories of clean air vehicles (CAVs) can be purchased with TFCA funds.
• TFCA funds cannot be used to expand vehicle fleets, but can be used for replacement vehicles. School and transit bus agencies may replace any percentage of their fleets. Other agencies are currently limited to 10% replacement.
• Applications to operate a shuttle or feeder bus route to and from a rail station, airport or ferry terminal must be submitted or supported by a public transit agency or show that the new service does not duplicate existing transit agency service.
• Transit or rideshare incentives cannot be provided exclusively to project sponsor employees.
• Bicycle facility improvement projects must be in an adopted countywide bicycle plan or the county's congestion management program (CMP), or the congestion management agency must intend to include the project in the next update of the CMP.
• Program Manager (40%) and Regional Funds (60%) may be combined for an eligible project.
• Administrative costs for all projects are limited to 5% of the total cost. Agencies must expend funds within two years unless the BAAQMD gives prior approval for a longer funding period.

For detailed information regarding the BAAQMD's policy and procedures governing the allocation of Regional Funds (60%), please contact Dave Burch at the BAAQMD at 415/749-4641 for a copy of funding guidelines.

As Program Manager for the TFCA in Contra Costa, the role of the Authority is to:

• Adopt allocation criteria for TFCA funds;
• Approve Contra Costa's expenditure plan for TFCA funds annually;
• Review and approve TFCA project reports annually; and
• Approve allocation process and procedures.

At the direction of the Authority, a joint committee of Authority staff, the Action Plan Coordinating Committee and the TDM Program Managers from the four subareas (called the APCC/TDM Managers Committee) meets regularly to:

• Develop policy recommendations concerning the allocation of TFCA funds and the implementation of TFCA-funded programs and projects;
• Review and prioritize TFCA applications;
• Address procedural and structural issues associated with TFCA project implementation; and
• Coordinate project planning and implementation among the subareas.

In order to preserve geographic equity among the subareas of Contra Costa, as well as continuity of ongoing programs and projects, the Authority has approved the following general approach to the allocation of TFCA funds.

• The first $800,000 of available TFCA funds (approximately $1.2 million) each year is allocated to the four Regional Transportation Planning Committees using a formula based on population and employment. These funds are considered to be "guaranteed" to the RTPCs, provided that they are allocated to eligible projects and/or programs and subject to Authority approval.
• Of the $800,000 in guaranteed funds, the RTPCs have historically allocated a portion "off the top" for the implementation of Transportation Demand Management (TDM) projects and programs which they deem to be of importance to the region or are contributory towards a countywide TDM effort. Funds not allocated by the RTPCs for this purpose are generally allocated by the RTPCs to local jurisdictions or other public agencies within the region on a competitive basis, subject to legal and policy parameters.

• In addition, funds over and above the $800,000 guaranteed to the RTPCs (including unexpended funds from the previous year) are allocated by the Authority to public agencies in Contra Costa on a competitive basis (in FY 1997-98 approximately $750,000 was allocated competitively). Allocations are to be spent within two years, unless prior approval is obtained to expend the funds over a longer time period. Funds not spent within the time limit specified must be returned to the BAAQMD. To preclude this situation, project progress will be monitored to ensure timely use of funds.

Per state law, BAAQMD policy, and Authority policy, a proposed project is deemed eligible for TFCA funding if it:

• Falls within one of the categories specified in the enabling legislation and, when necessary, in the Bay Area Clean Air Plan;
• Is not duplicative of a project being funded with Regional Funds (projects may be funded with a combination of Regional Funds and Program Manager Funds);
• Is supportive of regional Action Plan goals;
• Is able to yield quantifiable results in terms of vehicle emissions.

The Authority's Planning Committee has approved the following as allocation criteria for TFCA Program Manager funds for FY 1998-99:

• 75 points: TFCA Funding Effectiveness (i.e., a cost effectiveness calculation based only on the amount of TFCA funds being requested);
• 20 points: Other project attributes (e.g., innovation, use of new technology, benefits of project realized beyond the life of the project, benefits of project realized in throughout a widespread geographic area, etc.) per BAAQMD guidelines;
• 5 points: Benefits to a disadvantaged community.

• 11/7/97Project applications are due to the RTPCs.
• 11/8/97--TFCA cost effectiveness is calculated by BAAQMD staff/ and projects are screened for eligibility.
• 11/26/97Technical review of project applications by independent review panel; general review of project applications by BAAQMD staff.
• 12/1-1/5/98RTPC staff/TDM Program Managers develop proposed RTPC "expenditure plans" for their respective subareas to be funded with guaranteed funds. Recommendations are developed for projects to be submitted for competitive funds. RTPCs approve guaranteed projects and competitive submittals.
• 1/14/98APCC/TDM Managers Committee scores/ranks competitive project submittals.
• 1/21/98Authority approves RTPC expenditure plans (guaranteed funds).
• 2/4/98Authority's Planning Committee approves proposed package of competitive projects for circulation to the RTPCs.
• 4/15/98Authority approves complete FY 1998-99 Expenditure Plan (including guaranteed and competitive funded projects).

The table below shows how the Authority has allocated TFCA funds in Contra Costa since 1992. The range of categories is considerable, with the lion's share allocated to trip reduction (employer-, school- and residential-based) and bicycle facilities.