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California Transportation Commission approves Prop 116 credit to enable Monterey SURF busway
Summary
The CTC on Dec. 6 approved a staff proposal allowing Monterey County to credit the state for branch‑line property bought with Proposition 116 funds and redirect those funds as credits toward a SURF busway, with local and federal financing prioritized and reporting requirements through June 2025.
The California Transportation Commission voted unanimously Dec. 6 to approve staff’s recommendation to allow the Transportation Agency for Monterey County (TAMC/TAMSE) to repay or credit the state for Monterey branch line property purchased with Proposition 116 funds, clearing the way for the SURF busway project.
CTC staff summarized that in 2003 the commission programmed $9,370,000 in Proposition 116 funds for Monterey County to acquire right‑of‑way for an intercity passenger rail project. The commission’s condition at the time required the project to be operational within 10 years or the property to be sold and the state reimbursed the then‑present value. An appraisal completed in October produced a present value and staff negotiated a credit arrangement under which TAMC/TAMSE will prioritize local and federal funds, plus formula transit and intercity rail program funds, to support eligible rail investments in Monterey County and satisfy the credit by submitting a project list by the commission’s June 2025 meeting.
Todd Malcolm, executive director of the Transportation Agency for Monterey County, told commissioners the SURF busway is an implementable option today that will serve local travel needs while preserving space in the corridor for future rail should conditions change. Local elected officials and state and federal representatives’ staff called in supporting the proposal, citing benefits for coastal access, reduced highway congestion, equity and greenhouse‑gas reductions. Monterey Salinas Transit’s CEO confirmed the project is designed to retain corridor width for potential future rail service and noted the project’s inclusion on the TRCP award list for $25 million.
Opponents also spoke during public comment. David Schoenbrunn of the Train Riders Association of California urged rejection, arguing the commission lacked statutory authority under Proposition 116 and that the resolution contravened voter intent to restore passenger rail. Other commenters raised concerns about loss of rail potential, environmental impacts of asphalt near the Monterey Bay sanctuary, and alleged conflicts of interest related to local planning and development.
Commissioners took public comment, allowed questions of staff and local representatives, and then moved to a formal motion to approve the staff recommendation. Commissioner Bradshaw moved for approval; Commissioner Tiffany seconded. The commission recorded unanimous support and passed the action. The approved action relieves the Monterey branch line project of Prop 116 restrictions and establishes the credit repayment and reporting framework to be tracked annually until fulfilled. The commission record indicates TAMC/TAMSE must submit a project list by June 2025 identifying eligible investments up to the agreed credit amount.
The commission’s action does not itself construct the SURF busway; it approves the financial crediting mechanism and removes the Prop 116 encumbrance so eligible investments may proceed. Next steps include TAMC/TAMSE providing the June 2025 project list and the commission receiving annual progress reports until the credit has been satisfied.
