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Transportation Authority: EPA terminates Treasure Island grant; staff outline funding work, recent project awards
Summary
At the May 20 meeting the San Fran County Transportation Authority reported that the EPA has terminated the Treasure Island Connects grant. Staff said they are assessing options, will seek alternate funding in the June budget, and described parallel regional and local funding efforts while highlighting recent project openings and awards.
The San Fran County Transportation Authority announced on May 20, 2025, that the U.S. Environmental Protection Agency has terminated the agency's grant for the Treasure Island Connects program, and staff said they are evaluating alternative funding and next steps.
Executive Director (staff) told the authority that the grant had been paused since January and that "the termination stated that the objectives of the award are no longer consistent. Of course, we are very disappointed by this development." Staff said they are reviewing the EPA letter with City colleagues and will present proposed alternate funding in the Transportation Authority's annual budget process in June.
The announcement came amid broader discussion of regional and state funding work. Chair Mirna Melgar summarized ongoing coordination with the Metropolitan Transportation Commission and other regional partners on a potential regional measure under Senate Bill 63 to address a shortfall for major operators including BART, Muni, Caltrain and AC Transit. Melgar also said staff continue to press for protection of previously committed rail funding in the governor's budget.
Why this matters: the Transportation Authority said the loss of the EPA award removes an expected funding stream for Treasure Island Connects; staff described short-term steps (budget proposals and regional advocacy) but did not identify a dollar amount that will replace the terminated grant. The authority emphasized that it will continue to pursue state and federal options and will report back.
Staff also reviewed recent project delivery and awards the agency has supported. Highlights summarized by staff included:
- Petro Gateway: staff congratulated San Francisco Public Works and community partners on the April 28 opening of the Petro Gateway project, which reconnects the Petaluma Hill neighborhood beneath U.S. 101 and includes widened sidewalks, bulb-outs, protected bike lanes, landscaping, pedestrian lighting and public art. The Transportation Authority provided $300,000 from vehicle-registration fee (Prop A) funds for design and construction support.
- SF Ferry Terminal security improvements: the authority allocated $347,000 in sales tax funding toward design and construction of ferry terminal security upgrades that added four security gates and bollards near Port of San Francisco property.
- I-80 Bay Bridge Southgate award: staff announced that Carl Holmes accepted a national engineering award for the I-80 Bay Bridge Southgate project (American Council of Engineering Companies, 2025 Engineering Excellence Honor Award). The Transportation Authority noted its capital projects team's role in delivery.
The authority did not provide a replacement dollar amount for the terminated EPA grant during the meeting. Executive Director (staff) said staff will return with options and that Chair Dorsey and the Transportation Authority's finance staff will include alternate funding proposals in upcoming budget materials.
Votes at a glance
- Item 4: Approval of May meeting minutes — Motion by Commissioner Mandelmann, second by Commissioner Chen; roll call recorded with the clerk and the minutes were approved (tally reported: 11 yes, 0 no, 0 abstain; Commissioner Chan recorded absent).
- Consent agenda (Items 5–8): Motion by Commissioner Mandelmann, second by Commissioner Cheryl; approved on the consent calendar (no separate roll call recorded in the transcript).
What officials said: in addition to the Executive Director's statement about the EPA termination, Chair Mirna Melgar urged continued regional coordination and noted work with state legislators and MTC on a possible regional funding approach. President Mandelmann described recent international exchanges and lessons from Japan that authority leaders are considering for long-term rail financing and development.
Next steps: staff will analyze the EPA termination letter, present alternate funding proposals as part of the June budget process, continue coordination with MTC and regional partners on SB 63-related planning, and report back to the board.
Sources: meeting presentation and spoken remarks at the San Fran County Transportation Authority regular meeting, May 20, 2025.
