Apply for state rail grant for Zero Emission Passenger Rail and Trail project

In plain English

The Regional Transportation Commission's staff are asking for permission to submit a grant application to the California State Transportation Agency's Flexible State Rail Assistance program (Cycle 2) for the Zero Emission Passenger Rail and Trail project. The money would pay toward environmental review and preliminary engineering — the design and study phase — for roughly 22 miles of zero-emission passenger rail between Santa Cruz and Pajaro plus about 12 miles of Coastal Rail Trail. A yes vote lets the Executive Director file the application; staff would come back to the Commission later to accept or program any money awarded. The grant requires no local matching funds, so approving it does not commit new Commission dollars.

The rail and trail project's next phase is on hold until a $20 million funding gap for environmental review and preliminary engineering is closed, so this application is one attempt to unlock design work on a line running from Santa Cruz through Watsonville to Pajaro and trail segments from Rio Del Mar Boulevard through La Selva Beach and Watsonville.

Key facts

The project proposes about 22 miles of zero-emission passenger rail on the Santa Cruz Branch Rail Line between Santa Cruz and Pajaro, plus about 12 miles of Coastal Rail Trail (Segments 13–20 and the Capitola Trestle portion, Segment 11, Phase 2).
Environmental analysis and preliminary engineering are estimated at $25.2 million, with $5 million of combined Measure D and State Transportation Improvement Program funds already programmed, leaving a $20 million gap.
There is no match requirement for this grant application, so no budget amendment is needed for this action.
On June 11, 2026 the Commission programmed $1.4 million in Measure D-Rail Corridor funds as local match for a federal Consolidated Rail Infrastructure and Safety Improvements (CRISI) grant application for the same phase of work.
Estimated total capital cost is $4.28 billion (2025 dollars), with annual operating expenses estimated at $34 to $41 million (2025 dollars); typical ridership is estimated at 4,200–5,400 boardings per weekday.

Reasons to support

The grant program's eligible uses — environmental review, preliminary engineering, feasibility studies and service development planning — match exactly what the project needs next, and staff confirmed eligibility with the state agency.
Applying costs the Commission nothing: the grant has no match requirement, and an award would supplement other state, federal and local funds being sought for the same phase.
The Commission already directed staff in March 2026 to pursue federal earmarks, competitive grants and state budget funding for this phase, and the Santa Cruz Branch Rail Line is identified in the California State Rail Plan as a future long-term passenger rail corridor.

Reasons to oppose or change it

Even a successful grant only funds study and design; the fact sheet says right-of-way, final design and construction depend on special legislation to raise the sales tax limit and a countywide sales tax measure of 1.5% to 2.25%, meaning local taxpayers would be asked to fund construction match, operations and maintenance.
The scale of the commitment being advanced is large relative to the county — $4.28 billion in estimated capital cost and $34 to $41 million a year to operate — while ridership is projected at 4,200–5,400 weekday boardings and the cost estimate excludes major trail structures such as bridges and trail sections outside the rail corridor.
Local Measure D-Rail Corridor money is already being committed to this phase — $1.4 million as match for the federal CRISI application — so continued pursuit of this project directs limited local rail corridor funds toward study work rather than other uses.

Official wording

Approve authorizing the Executive Director to apply for CalSTA’s Flexible State Rail Assistance Cycle 2 grant for the Zero Emission Passenger Rail and Trail (ZEPRT) Project BUDGET AND EXPENDITURES ITEMS

Official agenda

Summary written by claude-opus-5 from the agenda and the Staff report (agenda packet, pages 42-49). It can contain mistakes. The official documents govern.