Toll-Funded Transit Programs

Approximately 18 percent of the base toll collected from the bridges has been statutorily set aside for transit improvement purposes. This toll revenue is transferred from BATA into three separate MTC reserve accounts: A) AB 664 Net Toll Revenue Reserves, B) Five Percent Reserves, and C) Regional Measure 1 Rail Extension Reserves.

A) The AB 664 Net Toll Revenue Reserves
The AB 664 Net Toll Revenue Reserves are named for the 1975 enabling legislation that established the reserves. Funds are collected from the Dumbarton, San Mateo-Hayward and San Francisco-Oakland Bay bridges and are used to fund capital projects that further the development of public transit in the vicinity of the bridges. Most AB 664 funding is programmed to various transit agencies as a match for federal funds to cover the cost of replacing buses and improving capital facilities.

B) The Five Percent Reserves
The Five Percent Reserves were originally funded from 5 percent of the 1988 RM 1 toll increase on the bridges and were to be used for congestion-relieving transit operations and capital projects in the bridge corridors. However, since 2000, to make capital bridge improvements eligible for federal funding, the transit operations portion of this reserve is funded directly by the state. To effect this change, two sub-accounts were created — the 5 Percent Unrestricted State Fund Account for transit operations and bicycle planning, and the 2 Percent Toll Reserve Account for ferry capital projects.

C) The Rail Extension Reserves
The Rail Extension Reserves are funded from 90 percent of the 25-cent RM 1 toll increase on autos on the San Francisco-Oakland Bay Bridge. These reserves have funded the Pittsburg/Bay Point and Dublin/Pleasanton BART extensions, and various Caltrain and Muni Metro improvements.

Currently, the Rail Extension Reserves are being used primarily to finance the BART-to-SFO extension project, with $3 million being directly allocated to the project and an additional $7 million loaned to the project to cover cash-flow needs annually. The extension was completed and began carrying fare-paying passengers in 2003.