REPORT TO BICYCLE AND PEDESTRIAN ADVISORY COMMITTEE
SUBJECT
Title
Transportation Development Act/Transportation Fund for Clean Air Funding Recommendations (Shariat)
Report
BACKGROUND
Transportation Development Act
The Metropolitan Transportation Commission administers the Transportation Development Act Article 3 (TDA) program that is funded by a quarter-cent State sales tax. The Santa Clara Valley Transportation Authority (VTA) is designated to administer the program in Santa Clara County. VTA allocates TDA funds for competitively selected projects and distributes the funds to jurisdictions based on population.
This program is limited to funding for the design and construction of improvements for bicycle or pedestrian projects. This includes bicycle lanes, signage, wheelchair ramps, crosswalk or pedestrian-scale lighting, and sidewalks.
In previous funding cycles, the TDA program consisted of two categories: (1) an amount reserved for projects in the 2013 VTA Bicycle Expenditure Program (BEP), and (2) an amount guaranteed for each local agency. The guaranteed FY 2026/27 amount for Santa Clara is approximately $159,500, which is similar to FY 2025/26.
Transportation Fund for Clean Air
The Bay Area Air Quality Management District oversees the Transportation Fund for Clean Air (TFCA) grant program that is funded by a four-dollar surcharge on motor vehicles registered in the Bay Area. The Santa Clara VTA is designated to administer part of the program funds to local agencies in Santa Clara County. The amount of grant funds to be awarded for FY 2026/27 to local agencies within the Bay Area region has yet to be released.
Eligible uses for this grant include reducing motor vehicle emissions through things such as zero emission vehicles, bicycle projects, ridesharing programs, transit programs, and traffic signal timing. The VTA is anticipated to release a Call-for-Projects in early 2026 for the FY 2026/27 funding cycle.
DISCUSSION
Transportation Development Act
The VTA is anticipated to release the TDA program Call-for-Projects in March 2026 for the FY 2026/27 funding cycle. The application deadline is anticipated to be in April 2026 and the funding must be spent prior to June 2029. VTA has not published the TDA category 1 competitive grant program details yet. Staff will continue to track this to identify opportunities to fund city bicycle and pedestrian projects. For TDA category 2, the VTA will announce the amount of funds available in late February 2026, however staff anticipates approximately $319,000 of funds will be available to the City. This amount includes $159,500 of TDA funds “banked” from last year.
For this upcoming funding cycle, staff recommends that TDA category 2 be used to supplement funding for the Measure I Bicycle Wayfinding project. The recently passed Measure I includes funding for this project in the amount of $300,000. This project stems from the City’s Bicycle Plan Update 2018 (Plan) that was approved by City Council in September 2019. One of the goals in the Plan is to increase bicycle mode share to 5 percent by 2026. To support this goal, the Plan includes Policy 3.A.2, which is to develop a city-wide bicycle wayfinding system providing access to various City destinations. At the September 2019 Bicycle and Pedestrian Advisory Committee (BPAC) meeting, BPAC members formed a subcommittee to research and provide a report on how a wayfinding system could be implemented within the city. At the October 2019 BPAC meeting, the subcommittee provided a presentation on proposed wayfinding routes, cost estimates, and designs. Thus, these additional funds would support hiring a consultant to implement the BPAC wayfinding proposal as part of the Measure I Bicycle Wayfinding project in Santa Clara.
Two alternatives are listed below:
1. Apply for FY 2026/27 funds to supplement funding for the Measure I Bicycle Wayfinding project
2. Do not apply for FY 2026/27 funds, “bank” the guaranteed funds, and apply to use the funds during a future funding cycle to implement a larger future project.
Staff recommends Alternative 1 and BPAC is encouraged to discuss and provide comments on TDA funding priorities.
Transportation Fund for Clear Air
The City’s Bicycle Plan Update 2018 (Plan) was approved by City Council in September 2019. One of the goals in the Plan is to increase bicycle mode share to 5 percent by 2026. To support this goal, the Plan includes Policy 3.A.4, which is to prioritize the installation of bicycle parking in the public right-of-way and work with private property owners to install them at key commercial and retail destinations. Additionally, the Plan’s recommended spot improvements (Attachment 1), identifies locations to install new bicycle racks within the public right-of-way. The cost for bicycle racks is approximately $1,200 each.
Staff recommends applying for FY 2026/27 TFCA grant funds to purchase bicycle racks and install them within the public right-of-way locations identified within the spot improvements graphic.
BPAC is encouraged to discuss these potential projects and provide comments on TFCA and TDA funding priorities.
RECOMMENDATION
Recommendation
1. Approve Alternative 1 to apply for the FY 2026/27 TDA funding cycle to supplement funding for the Measure I Bicycle Wayfinding project; and
2. Approve staff recommendation to apply for the FY 2026/27 TFCA funding cycle for the purchase of bicycle racks and install them within the public right-of-way locations identified within the spot improvements graphic.
Staff
Written by: Carol Shariat, Interim Transportation Manager, Public Works
Approved by: Michael Liw, Assistant Director/City Engineer, Public Works
ATTACHMENTS
1. Recommended Spot Improvements