TIMA says EPA cancels $20 million Treasure Island grant; agency to seek alternate funding and join litigation

Matt Dorsey, chair of the Treasure Island Mobility Management Agency Board (TIMA), told commissioners on June 24 that the U.S. Environmental Protection Agency terminated a $20,000,000 grant for the Treasure Island Connects program in May.

The grant was intended to fund on-island transit improvements, including a free island shuttle, a microtransit connection to San Francisco’s eastern neighborhoods, a hybrid electric bus for Muni, ferry charging equipment, bike-share facilities and a transportation resource center at 1 Treasure Island. “This federal grant was to fund much needed transit improvements such as the free on island shuttle, a micro transit service to San Francisco's eastern neighborhoods, a hybrid electric bus for Muni, ferry charging equipment, bike share facilities, and an on island transportation resource center housed at 1 Treasure Island,” Dorsey said.

Why it matters: TIMA staff said the termination removes the primary funding source for a package of projects that the board and its partners had prioritized for existing and future residents. The board and staff indicated they will pursue alternate funding and legal options to protect federal awards.

Chief Deputy Maria Lombardo, speaking for Executive Director Tilly Chang, said TIMA is coordinating with the City Attorney’s Office. “I just want to also echo his thanks to the city attorney's office for leading the efforts to try and address these issues,” Lombardo said. Lombardo added TIMA has asked staff to seek other funding to implement priority projects such as the on-island shuttle and bike share.

Lombardo told the board TIMA, the San Francisco Transportation Authority, the City and County of San Francisco and multiple other entities nationwide have joined litigation in King County v. Turner, a suit challenging federal conditions on grant awards. Lombardo said a federal district court in Washington state granted a preliminary injunction that, for now, allows execution of grant agreements and amendments while the injunction remains in place. She said TIMA will keep the board apprised of further developments.

TIMA staff and commissioners also described recent peer learning: Dorsey and others traveled to New York City in March to study that city’s congestion pricing program. Dorsey praised the trip and said the delegation “learned a lot from a program implementation that was remarkably smooth and successful.” Lombardo and other staff said they are tracking legal and operational developments in New York and continuing to discuss grant and financing strategies.

What TIMA will do next: Staff said the agency will (1) coordinate with the City Attorney’s Office and other partners on legal options, (2) seek alternative funding sources to advance priority projects, and (3) continue to track related litigation and peer-city implementations. TIMA’s budget and work program on the board’s agenda reflected staff’s plan to identify other funding sources for the programs the EPA grant had been intended to support.

Details and background: TIMA’s Treasury Island Connects package had been described to the board as a suite of capital and operating investments meant to improve local mobility options. Board members and staff cited the termination letter as received in May; TIMA did not provide new dollar commitments to replace the $20,000,000 in this meeting. The board did not take a formal vote on the termination at this session; staff described coordination and litigation activity as ongoing.

Looking ahead: TIMA said staff will present updates on legal developments and any funding commitments as they become available.