HomeMy WebLinkAbout15 PROJECT FUNDING FOR THE ASSEMBLY BILL 2766 (MOTOR VEHICLE REGISTRATION SUBVENTION) FUNDING PROGRADocusign Envelope ID: OAC17D8D-EO4C-4140-ACFF-742560759195
Agenda Item 15
Initial
Reviewed:
AGENDA REPORT City Manager
Finance Director
MEETING DATE- JUNE 17,2025
TO: ALDO E. SCHINDLER, CITY MANAGER
FROM: JUSTINA L. WILLIKOM, COMMUNITY DEVELOPMENT DIRECTOR
SUBJECT- PROJECT FUNDING FOR THE ASSEMBLY BILL 2766 (MOTOR
VEHICLE REGISTRATION SUBVENTION) FUNDING PROGRAM
SUMMARY:
The City Council authorizes the use of the City's disbursement of Assembly Bill 2766 funds
to offset costs for vehicle emission reduction programs implemented by the City of Tustin.
This year, the City Council is requested to allocate the projected Assembly Bill 2766
disbursements for Fiscal Years 2024-2025 and 2025-2026 to fund the Main Street Capital
Improvement Project.
RECOMMENDATION:
That the City Council authorize the use of the City's projected Assembly Bill 2766
disbursements for Fiscal Years 2024-25 and 2025-26 to fund the Main Street Capital
Improvement Project by minute order.
FISCAL IMPACT:
Since 1991, Assembly Bill 2766 funds have been made available to local governments for
use in offsetting State mandated vehicle emissions reduction programs. The use of these
funds reduces General Fund responsibility to fund State mandated emission reduction
programs.
Funds are disbursed to cities on a quarterly basis. In addition to $121,895.86 in available
funds from prior funding periods, a total of $78,541.15 has been disbursed in the 2024-25
Fiscal Year, with an estimated final disbursement of $25,000 by June 30, 2025,
Approximately $100,000 is expected to be disbursed for the 2025-26 Fiscal Year, for a total
of approximately $325,437.01 being available by the end of 2026.
CORRELATION TO THE STRATEGIC PLAN:
The Project Funding for the Motor Vehicle Registration Subvention Funds Program falls
under Goal C of the Strategic Plan pertaining to financial strength; and under Goal D
Docusign Envelope ID: OAC17D8D-EO4C-4140-ACFF-742560759195
City Council Agenda Report
AB 2766 Funding, Main Street Capital Improvement Project
June 17, 2025
Page 2
pertaining to working collaboratively with agencies within and outside the City on issues of
mutual interest and concern, in that the Program provides funding for emission reduction
projects and programs.
BACKGROUND AND DISCUSSION:
On September 30, 1990, the State Legislature authorized the South Coast Air Quality
Management District (SCAQMD) to impose an additional motor vehicle registration fee of
two dollars ($2) per vehicle to finance the implementation of transportation measures
embodied in the Air Quality Management Plan (AQMP) and provisions of the California
Clean AirAct. Commencing in FY 1991-92, subvention disbursements were made available
to cities and agencies. A portion of funds collected from the Department of Motor Vehicle
registration fees are returned to local governments for local vehicle emission reduction
programs. AB 2766 funds must be used solely to reduce pollution from motor vehicles and
for related planning, monitoring, enforcement, and technical studies necessary for the
implementation of State and regional clean air goals.
PROPOSED PROGRAM AND FUNDING ALLOCATIONS:
Staff recommends that $325,437.01 in projected AB 2766 funds for Fiscal Year (FY) 2024-
25 and FY 2025-26 be used to fund the following:
Main Street Capital Improvement Project, which includes reconstructing sidewalks to
improve walkability, installing an off-street bike path, installing a raised median,
signage, and right-of-way indicators to improve bicyclist and pedestrian safety, and
more.
The use of these funds for the proposed project will meet the goal and intent of carrying out
a local vehicle emission reduction program. The project is eligible under Funding Eligibility
Categories 5-a (Traffic Calming) and 8-b (Other Bike Facilities). As such, staff recommends
that the City Council authorize the use of AB 2766 funds for this project by minute order.
rtfe Maldo-nado Jay Fast all
Senior Planner Assisfan�,Dire' ctor - Planning