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CTC workshop highlights Article 19 and State Highway Account limits on rail funding and rolling stock

3392221 · May 19, 2025
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Summary

Staff reminded attendees that rail projects should be federalized where possible; State Highway Account (SHA) funds are restricted under Article 19 and certain SHA uses require prior election approval in some counties, and rolling stock or buses generally must be funded with federal revenues in the STIP unless PTA capacity is available.

Commission staff reiterated that rail projects are frequently required to be federalized and that State Highway Account funds have statutory constraints under Article 19.

Laurie Waters and Rebecca Light explained the guidelines' existing language: "The rail rolling stock and buses may be funded only from federal revenues in the STIP. The nonfederal match can only be programmed in the STIP if PTA capacity is available for such projects. If no PTA capacity is available, the match will have to be provided from a non-STIP source," Waters read from the current guidelines.

Workshop participants clarified the interaction with Article 19. Desiree explained that a paragraph in the guidelines traces to Article 19's Section 5, which requires voter approval in certain counties before SHA funds can be expended for some mass transit guideway purposes. "If SHA funds are gonna be used, they also have to go through, like, an election," she said.

Peter DeHaan added historical context: the Article 19 provision goes back to the 1970s and many larger counties satisfied the election requirement decades ago; CTC staff may have a list of eligible counties that previously authorized such SHA uses.

Participants also noted operational impacts: when projects are not federalized, staff and Caltrans must perform additional work later to secure federal funds or process amendments, which complicates STIP delivery.

Ending: CTC staff said they would check the list of counties with prior approvals and emphasized that applicants should pursue federalization (FTA/FHWA) where possible and verify PTA capacity before proposing SHA matches in the STIP.