Background and Procedural History

We initiated this investigation on July 21, 2005, to create the state's Grade Separation Program Priority List for Fiscal Years 2006-2007 and 2007-2008. The list, which is newly created every two years, establishes the relative priorities for funding qualified projects to eliminate or alter hazardous railroad crossings under the program. Projects for construction of new grade separations, alteration of existing grade separations, or elimination of grade crossings by removal or relocation of streets or railroad tracks are included in the list.

Section 190 of the Code requires the state to include in its annual budget $15 million for funding these projects. Section 2450 et seq. sets out the procedure for administering these funds. Section 2453 gives the California Transportation Commission (CTC) responsibility for allocating (i.e., distributing) the funds to qualified projects after the list is established. Section 2452 requires this Commission to establish the priority list for projects by July 1 of each year and furnish it to the CTC for use in the fiscal year beginning on that date. The procedure we have adopted is to promulgate the list for the first fiscal year in an interim decision, and then to revise the list for the next fiscal year by deleting projects that receive fund allocations in the first year. We adopt the revised list in a final decision in the second year of the proceeding, close that proceeding, and initiate the funding cycle again the following year in a new proceeding.

The current investigation commenced July 21, 2005, with issuance of the Commission's Order Instituting Investigation (OII).

In accordance with the OII, the Commission's Consumer Protection & Safety Division (CPSD) mailed written notification to railroads, light rail transit agencies, cities, counties, and other interested parties of the deadline to file a nomination for each grade separation project they sought to have us include in the current priority list.

We received 74 nominations for projects to be included in the current priority list, including two that the administrative law judge (ALJ) allowed to be filed after the deadline. After analyzing each nominated project, CPSD issued its report and preliminary priority list on January 10, 2006. CPSD determined that 71 nominations satisfied the qualification criteria for consideration.

No prehearing conference was held in this matter, because there were no unusual or disputed issues. The ALJ `s Prehearing Ruling set hearings in San Francisco and Los Angeles following the deadline for issuance of CPSD's report, and they were respectively conducted on February 22 and 23, and March 1 and 2. The principal purpose of the hearings was to make corrections and additions to the nominations, and to permit clarifications to be made at the request of CPSD or any nominating party. Following the hearing the ALJ kept the record open until March 10, 2006, in order to permit information augmenting or correcting certain of the nominations to be filed. The record was closed and the proceeding was submitted as of that date.

Based upon the evidence received at the hearings and before the submission date, CPSD revised the preliminary priority list in accordance with the methodology specified in the OII. The final list, as generated by CPSD, is adopted without revision, and is included as Appendix B to this decision. The decision is to be adopted no later than July 1, 2006, pursuant to Code section 2452.