CTC adopts interim timely-use-of-funds policy for projects affected by 2024–25 Southern California fires

The California Transportation Commission on Friday adopted an interim timely-use-of-funds policy to give projects affected by recent Southern California wildfires more time to advance through project delivery.

The policy applies to projects in the counties for which states of emergency were issued — Los Angeles, Orange, Riverside, San Bernardino and Ventura — and covers several state programs including the Active Transportation Program, the Local Partnership Program, the Solutions for Congested Corridors Program and the Trade Corridors Enhancement Program.

Why it matters: Wildfires and other disasters can delay right of way, procurement and construction. Commissioners and staff said the interim policy provides breathing room for impacted implementers while preserving the overall accountability of the programs.

Key provisions: Staff summarized the main features of the interim policy: (1) the deadline to request an allocation for projects impacted by the listed fires and programmed in fiscal year 2024–25 is extended to the December 2025 commission meeting; (2) the period to award a construction contract is extended from six months to 12 months (retroactive to allocations approved at commission meetings earlier in 2025); (3) the maximum allowable time extension for projects in LPP, SCCP and TCEP is increased to 20 months for allocation, expenditure and completion milestones; and (4) the Active Transportation Program’s maximum extension is increased to 24 months (ATP already allowed 20 months, staff said, so 24 months makes the interim relief meaningful). Staff said the policy will be reviewed quarterly and case-by-case exceptions remain possible.

Public and commissioner remarks: Commissioners acknowledged the scale of recent weather and fire events and urged that the policy be scalable if other regions later show similar needs. Commissioners thanked staff for stakeholder outreach — staff held a May 22 meeting and continued working with affected counties and Caltrans — and asked staff to coordinate with legislative contacts if statutory limits (for example, in the STIP) require legislative fixes.

Action taken: The Commission voted to adopt the interim timely-use-of-funds policy. Commissioners moved and seconded adoption; the motion passed.

What’s next: Staff will implement the provisions retroactively where appropriate, continue to work with Caltrans on consistent application, and evaluate whether additional, case-specific time relief is needed. Staff said they will reassess the policy quarterly and provide technical assistance to districts and local sponsors with implementation questions.