Background

By July 1 of each year, the Commission is required, pursuant to S&H Code Section 2452, to establish and furnish to the California Transportation Commission (CTC) a priority list of existing and proposed crossings at grade in need of separation, including the elimination of existing or proposed grade crossings, the elimination of grade crossings by removal or relocation of streets or railroad tracks, and existing grade separations in need of alteration or reconstruction. The Priority List, based on criteria established by the Commission, includes projects on city streets, county roads, and state highways, which are not freeways as defined in S&H Code Section 257.

Funding for projects included on each annual Priority List is provided by S&H Code Section 190. Additional funds may be available as a result of the passage of Proposition 1B¹ which includes $250 million for improving highway-rail crossings and constructing grade separations.

The basis for allocation and state requirements for both funding sources ($15 million allocated under S&H Code Section 190, and the Proposition 1B funds allocated to the Highway-Railroad Crossing Safety Account) are contained in S&H Code Sections 2450-2461. For a project that eliminates an existing crossing or alters or reconstructs an existing grade separation, an allocation of 80% of the estimated cost of the project is made, with the local agency and railroad each contributing 10%. For a project that plans a grade separation of a proposed new crossing (currently no existing crossing), an allocation of 50% of the estimated project costs is made, with the remaining 50% contributed by the local agency. Subsequent to the Commission's issuance of the Priority List, the California Department of Transportation (Caltrans) accepts applications for an allocation of funds on or before April 1, of each fiscal year. Requirements for Priority List projects filing an allocation application with Caltrans are described in the California Administrative Code, Title 21, Division 2, Chapter 13, Grade Separation Projects - Applications for Allocations or Supplemental Allocations. A copy of Chapter 13 is attached as Appendix 1.

Our typical procedure in regards to developing the Priority List of projects is to promulgate the list for the first fiscal year by issuing an interim decision, and then to revise the list for the second year by deleting projects for which funds were actually allocated in the first year. We adopt the revised list by final decision in the second year of the proceeding, close the proceeding and begin the funding cycle again the following year by instituting a new proceeding. Pending legislative action or additional regulation to accommodate the Proposition 1B Highway-Railroad Crossing Safety Account allocation, the Commission may deviate from its prior practice (the adopted two-year process) and open a formal proceeding next year to receive project nominations for FY 2009-2010.

Interim Decision (D.) 06-06-012, dated June 15, 2006, established the 49th Priority List for FY 2006-2007. On June 21, 2007, by D. 07-06-030, the Commission issued its final decision establishing the 50th Priority List for FY 2007-2008, and furnished the list to Caltrans and CTC before July 1, 2007. That final list will expire on June 30, 2008, necessitating the establishment of a new Priority List for FY 2008-2009 and possibly, 2009-2010.

The Commission will consider projects nominated by cities, counties, a separation-of-grade district, and any public entity that provides rail passenger transportation services for inclusion on the Priority List for FY 2008-2009 and 2009-2010.

¹ Relevant Proposition 1B language:

(j) (1) Two hundred fifty million dollars ($250,000,000) shall be deposited in the Highway-Railroad Crossing Safety Account, which is hereby created in the fund. Funds in the account shall be available, upon appropriation by the Legislature, to the Department of Transportation for the completion of high-priority grade separation and railroad crossing safety improvements. Funds in the account shall be made available for allocation pursuant to the process established in Chapter 10 (commencing with Section 2450) of Division 3 of the Streets and Highways Code, except that a dollar for dollar match of nonstate funds shall be provided for each project, and the limitation on maximum project cost in subdivision (g) of Section 2454 of the Streets and Highways Code shall not be applicable to projects funded with these funds.

(2) Notwithstanding the funding allocation process described in paragraph (1), in consultation with the department and the Public Utilities Commission, the California Transportation Commission shall allocate one hundred million dollars ($100,000,000) of the funds in the account to high-priority railroad crossing improvements, including grade separation projects, that are not part of the process established in Chapter 10 (commencing with Section 2450) of Division 3 of the Streets and Highways Code. The allocation of funds under this paragraph shall be made in consultation and coordination with the High-Speed Rail Authority created pursuant to Division 19.5 (commencing with Section 185000) of the Public Utilities Code.