FY 2016 Tiger VIII Discretionary Grant Application

Project Information Summary

San Joaquin Rail Access to Opportunity: PROJECT NAME: Passenger, Freight, Port

Type of Freight Rail – Intermodal Connector Application

Location Stockton and Lathrop, California

Area Urban

Amount $9.0 million Requested

Sponsoring San Joaquin Council of Governments Organization

Andrew T. Chesley Executive Director San Joaquin Council of Governments 555 E. Weber Ave, Stockton, CA 95202 Contact

Information (209) 235-0444 (direct) [email protected]

Project Website: www.sjcog.org/TIGER

Executive Summary The San Joaquin Rail Access to Opportunity project will improve passenger, commuter, and freight rail mobility in Northern California, and the growing San Joaquin County area. It will also enable job growth in one of the most economically distressed areas in the United States. This project, a partnership of the San Joaquin Council of Governments (SJCOG) and Union Pacific Railroad (UP), will generate public benefits by reducing the route miles freight trains must travel to reach their destinations and by reducing freight traffic congestion in two major regional passenger and commuter rail corridors. The project will enable growth to continue at the Port of Stockton and the economically disadvantaged cities of Stockton and Lathrop, California.

The project has two components, one each at:

 Stockton  Lathrop

Each component consists of a new connection between two The two projects main tracks, which cross or approach each other, that components have large historically were independent routes. These connections will public benefits. Most of enable these formerly independent main tracks to function as these benefits accrue to: a cohesive network for passenger and freight trains. Individually and together, the two project components Rail provide the positive public benefits quantified in this Passengers application. SJCOG and UP selected these two project components from a menu of possible project components in Local order to deliver the maximum benefit for rail passengers, to Residents increase freight rail capacity for the ports of Stockton and

Oakland, and to improve quality of life in Stockton and Lathrop. Quality of life improvements include reduced grade Motorists crossing delay for motorists and pedestrians, reduced air emissions, and increased transportation capacity required for job growth in the region. SJCOG and UP also selected these two project components because they have high benefits in relation to their cost, do not have complex construction requirements, and have well-progressed design and permitting.

SJCOG and UP are collaborating together on this proposed public-private partnership because of the overall benefits realized by constructing these improvements. The public benefits of the project accrue to rail passengers, local residents, and motorists. The private

benefit of freight movement generated by the project is represented by UP’s contribution of $5.29 million, or 31 percent of the total project cost.

Construction of this project will present opportunities for increased mobility and connectivity throughout San Joaquin County, and the Northern California Megaregion. Passenger and commuter rail reliability is essential for those residing and working in the region and for building ladders of opportunity for disadvantaged groups. The project is aligned with San Joaquin County’s economic development and regional transportation plans, which seek to enhance existing rail infrastructure in order to improve rail network efficiency and capacity, including safe, reliable transportation of the public, while also improving the local economy through economic growth, job retention, and job creation. Table ES-1 below illustrates the summary of monetized benefits, showing that the San Joaquin Rail Access to Opportunity project provides positive public benefits. For a total project cost of $17.3 million, the public benefits total $27.9 million (discounted, 7%).

This project is well positioned to meet and Table ES-1: Summary of Benefits for the exceed all of the TIGER program's schedule Project’s Two Components guidelines. Prior to this TIGER application, UP invested $4.18 million toward Outcome Benefits construction of the project’s two components, consisting of $0.25 million Economic $15.7 M spent for engineering and $3.93 million to Competitiveness purchase right-of-way. In order to complete the project, $17.29 million is required. UP will provide an additional $5.29 million. UP Quality of Life $5.1 M has also secured $3 million in Trade Corridor

Improvement Funds (TCIF), for the project, from the Northern California Trade Coalition Environmental $7.1 M (which will be recommending final approval Sustainability to the California Transportation Commission this year). Total Benefits $27.9 M SJCOG is requesting $9 million in funds from + this year’s TIGER Grant opportunity, complementing the $3 million in state funds Benefit Cost Ratio 1.93 and $5.29 million in UP funds already $ secured for these project components. Note: All cost estimates in this table are in 2015 dollars, using a 7 percent real discount rate.

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Contents Cover Page ...... Error! Bookmark not defined. Executive Summary ...... iii 1.0 Project Description ...... 1 1.1 About San Joaquin Council of Governments ...... 1 1.2 The Transportation Need ...... 1 1.3 Beneficiaries ...... 6 1.4 Ladders of Opportunity ...... 6 2.0 Project Location ...... 7 3.0 Project Parties ...... 10 4.0 Project Costs, Funds, Sources, and Uses ...... 10 4.1 Project Costs and Funding Sources ...... 10 4.2 Detailed Budget Breakdown and TIGER Fund Allocation ...... 11 5.0 Primary Selection Criteria ...... 12 5.1 State of Good Repair ...... 13 5.2 Economic Competiveness ...... 14 5.3 Quality of Life ...... 15 5.4 Environmental Sustainability ...... 16 5.5 Safety ...... 17 6.0 Secondary Selection Criteria ...... 17 6.1 Innovation ...... 17 6.2 Partnership ...... 17 7.0 Results of Benefit Cost Analysis ...... 19 8.0 Project Readiness ...... 20 8.1 Technical Feasibility ...... 20 8.2 Financial Feasibility ...... 21 8.3 Project Schedule ...... 22 8.4 Required Approvals (NEPA, Planning Approvals, and Other Reviews/Approvals) ..... 23 8.5 Mitigation ...... 25 9.0 Federal Wage Rate Certification ...... 28 10.0 Standard Form 424 (Application for Federal Assistance) ...... 28

Appendices Appendix A: Federal Wage Rate Certification Appendix B: Letters of Support Appendix C: BCA Appendix D: Cost Estimate Appendix E: Engineering Design

1.0 Project Description 1.1 About San Joaquin Council of Governments The San Joaquin Council of Governments (SJCOG) is the project applicant and grant recipient for the San Joaquin Rail Access to Opportunity project. SJCOG is the federally designated Metropolitan Planning Organization (MPO) for San Joaquin County, which includes the cities of Stockton, Lodi, Manteca, Tracy, Ripon, Escalon and Lathrop in California. SJCOG has a substantial role in intergovernmental coordination, working frequently and closely with federal agencies, the State of California, agencies from the San Francisco Bay Area and Sacramento Area, and other MPOs in the eight county San Joaquin Valley Region. SJCOG also serves as the regional transportation planning agency, providing a forum for regional decision-making on issues such as growth, transportation, environmental management, housing, open space, air quality, fiscal management, and economic development.

1.1.1 San Joaquin Rail Access for Opportunity: Passenger, Freight, Port SJCOG has partnered with Union Pacific Railroad (UP). SJCOG and UP chose two related, but independent rail connection projects that each deliver time saving benefits to rail passengers, quality of life improvements and job growth in an economically distressed area, and improved rail connectivity to the ports of Stockton and Oakland. Though the two project sites are separated by 11 miles, they provide network benefits to regional passenger rail and commuter passenger rail in Northern California and improve network access to the two ports. Either project component individually would deliver proportionally similar benefits, but together they improve the passenger and rail network, in Northern California, as a whole.

The San Joaquin Rail Access to Opportunity: Passenger, Freight, Port project is seeking $9 million in TIGER Grant discretionary funding to complete engineering design, permitting, and construction of the Stockton Wye ($4 million) in Stockton, California, and the Lathrop Connection ($5 million) in Lathrop, California.

1.2 The Transportation Need Northern California is served by two Class I railroads, UP and BNSF Railway (BNSF), each of which is composed of predecessor railroads that were constructed for purposes more limited than the demands placed upon the rail network today. Northern California’s rail

network is no longer regional in scape, but now is part of the national network for containerized and bulk commodity freight transportation. Similarly, as population has grown and radiated outward from San Francisco Bay, the Northern California rail network, once mostly a lightly-travel, long haul network, is now called upon to be a high-frequency, high reliability commuter and regional passenger rail network. Accordingly, connections where rail lines cross that were not necessary historically, are now necessary to extract maximum utilization and capacity from the existing routes. The two project components in this application, the Stockton Wye and the Lathrop Connection, each couple together previously independent rail lines into a cohesive network. This project will enable UP to route freight trains on an alternate line that will reduce congestion, delays to passenger trains, and impacts on communities. Each project is described in turn.

Northern California’s regional and commuter passenger rail network is no longer solely focused on serving the San Francisco Bay Area, but provides regional transportation needs linking the San Francisco Bay Area, the Central Valley, the capitol city of Sacramento, and the Silicon Valley. The passenger rail network consists of:

● The Capitol Corridor (CCJPA), which hauled 1.5 million passengers in 2015 with up 30 daily trains ● The Altamont Commuter Express (ACE), which hauled 1.3 million passengers in 2015 with 8 daily trains (weekdays) ● The San Joaquin, which hauled 1.2 million passengers in 2015 with 12 daily trains

These passenger services are all hosted on rail lines that are also primary freight routes. Accordingly, reduction of congestion and improvement of reliability are crucial to regional mobility and economic competitiveness. At the same time, the growing demand for freight capacity to the ports of Stockton and Oakland requires these projects.

Below are descriptions of the two components of the San Joaquin Rail Access to Opportunity: Passenger, Freight, Port project. Each section details the transportation challenge that this TIGER-funded project will resolve.

Stockton Wye The Stockton Wye component of the San Joaquin Rail Access to Opportunity project will construct a new track connecting two railroad main lines that currently do not have a direct connection: the north-south UP Fresno Subdivision and the east-west BNSF Stockton Subdivision. At present, these two mainlines carry the following freight and passenger services (see Figure 1):

● Altamont Corridor Express (ACE) commuter trains, on the UP Fresno Subdivision

● Amtrak San Joaquin passenger trains, on the BNSF Stockton Subdivision ● Amtrak San Joaquin passenger trains, on the UP Fresno Subdivision and BNSF Stockton Subdivision ● BNSF freight trains, on the BNSF’s Stockton Subdivision ● UP trains, on the UP Fresno Subdivision UP also has freight trains that serve the Port of Stockton. These trains typically carry bulk materials and minerals that imported and exported from the Port. The Port of Stockton is a major economic asset to the San Joaquin Valley and Northern California mega-region. By completing the new rail connection in downtown Stockton, the Port and its customers will benefit from greater freight rail efficiency opportunities. These improvements will also help lessen freight interference between the two Class I railroads operating in this high volume area. As a result, this connection will help eliminate traffic delays and improve air quality through a reduction of locomotive idling in Stockton. The Port of Stockton expects strong, future freight growth that will require rail transportation regardless of whether the Stockton Wye connection is built. Congestion at the Stockton Wye, which Figure 1: Stockton Interlocking – Traffic Patterns can delay passenger trains, would increase. The reason why congestion would increase is because the way the Stockton Wye is configured. Currently, UP unit trains bound for the Port of Stockton must enter UP’s Stockton Yard in order to reverse direction and use the connection track in the southwest quadrant of Stockton Wye (see Figure 2, page 4). They must do this because, at present, there is no connection track in the northwest quadrant. The Stockton Wye component of this

project would install this Figure 2: Stockton Freight Train Operational connection track and enable direct Pattern train movement between the UP

Fresno Subdivision and the port. Existing The before-and-after is illustrated Condition in Figure 2: at the top is the existing condition and on the bottom is the proposed improved condition. The reverse movement in UP Stockton Yard typically requires more than 4 hours for each train, and this occurs twice, once for the train to enter the port and once for the train to leave the port. The reason it requires four hours or more hours is to avoid, as much as possible, interference with passenger and other freight trains that must also use the same main Proposed tracks. The locomotives, on the inbound train arriving at Stockton Condition Yard, must be uncoupled, operated to the other end of the train on an empty track, and recoupled. This time for the train to perform its reverse movement results in increased locomotive emissions that contribute to the already poor air quality of the San Joaquin Valley, results in unavoidable delay to passenger and other freight trains, and ultimately limits the capacity of the Port of Stockton for growth. According to the San Joaquin Valley Air Pollution Control

District, the San Joaquin Valley is in nonattainment for federal standards for eight hour ozone and PM 2.5, and California standards for one hour ozone, eight hour ozone, PM 10, and PM 2.5.

Lathrop Connection The Lathrop Connection project will construct a connection track between the UP Oakland Subdivision and UP Fresno Subdivision in the southeast quadrant of the existing at-grade crossing between the two UP lines at Lathrop. The purpose of this project component is to remove freight trains from a high-density passenger corridor onto a shorter and more efficient route, thereby improving travel time for passengers, reducing air Figure 3: Lathrop Connection Operational emissions, and reducing motorist delay at Patterns grade crossings. The new route (see Figure 3) requires the connection project in order to create a straight-through freight train movement at Lathrop.

At present, UP operates one to three trains each way daily between the San Francisco Bay Area and Southern California. Since there is no connection track at Lathrop, these trains operate via the UP Martinez Subdivision between Oakland and Sacramento and the UP Fresno Subdivision through Stockton and Lathrop toward Southern California. The existing route is shared with 42 daily Amtrak passenger trains (30 Capitol Corridor, 8 San Joaquin, 2 Coast Starlight, and 2 California Zephyr trains) between Oakland and Sacramento and with an additional 4 San Joaquin trains between Sacramento and Stockton. By rerouting these freight trains daily via Lathrop, the potential for their interference with, and delay to, passenger trains is eliminated.

See Figure 3 for the existing and proposed freight train operational patterns for the project. The Lathrop Connection will route trains from the existing route between Lathrop and Oakland on the UP Martinez Subdivision to the parallel UP Oakland Subdivision, saving approximately 62 miles and 45 minutes of time savings for every train.

UP anticipates that its volume of daily freight trains between the San Francisco Bay Area and Southern California will increase in the near future. This anticipated freight train increase is due to growth of bulk and intermodal (containers and trailers carried by train) traffic to and from the Port of Oakland. Thus, the potential for these freight trains to delay passenger trains would increase if the connection track were not built. If the connection track is built, UP expects to regularly operate its daily freight trains between the San Francisco Bay Area and Southern California via Lathrop, utilizing the new connection track.

The new route is shared with ACE commuter trains. UP has performed operational simulation modeling of the Oakland Subdivision and determined that the rerouted freight trains will not cause measureable delay to ACE commuter trains because rail traffic (freight and passenger) on the UP Oakland Subdivision is relatively light compared to its capacity, whereas rail traffic on the UP Martinez Subdivision is relatively heavy compared to its capacity.

1.3 Beneficiaries The primary beneficiaries from the project are the passengers that rely on Amtrak and ACE to carry them reliably and safely to their jobs and on their journeys, the ports of Stockton and Oakland, and residents of the San Joaquin Valley. Additionally, the improved on-time performance of Amtrak and ACE, and enabling growth to occur at the ports of Stockton and Oakland, will enhance access to jobs. This is critical to building ladders of opportunity in the economically disadvantaged San Joaquin Valley. Additionally, there will be an air emissions reduction and reduced grade crossing delay for motorist as a result of the connections’ ability to reduce delay, idling, and eliminate yard runaround movements.

1.4 Ladders of Opportunity The construction of these project components present opportunities for increased mobility and connectivity in San Joaquin County. Passenger and commuter rail reliability is essential for those residing and working within this corridor; especially since the improved reliability of passenger and commuter rail transportation is critical to many time-sensitive activities, such as commuting for jobs, health care appointments, and schooling. This project is vital to an area with high unemployment, low average family incomes, and other forms of economic distress as is currently being experienced in the San Joaquin region.

Within San Joaquin County, unemployment rates are 8.8 percent, well above the national average of 5.0 percent.1 According to the U.S. Census Bureau, poverty rates are 25.8 percent and 11.3 percent for Stockton and Lathrop, respectively.2 SJCOG and UP support local workforce development for these disadvantaged groups. 2.0 Project Location Both project sites are located in north-central California’s San Joaquin County, within their respective namesake cities of Stockton and Lathrop. Coincidentally, Lathrop, California is centered between the population centers of Stockton, Modesto, and Tracy submarkets; a 20-mile radius around Lathrop shows population over 750,000 people, with projections to grow to over 1 million within the next 10 years.3 Population growth also requires more efficient transportation systems, with passenger and commuter rail offering a clear advantage over the heavily utilized and parallel Interstate Highway 5 and California State Highway 99 corridors.

Adjacent to the Project Location is the San Francisco Bay Area, serving as an economic generator for jobs within the area. Currently, many motorists commute over nearby Altamont Pass (Interstate Highway 580) located to the west of Stockton and Lathrop, for employment opportunities in the adjacent San Francisco Bay Area. ACE ridership also connects people from the Greater Stockton area to employment opportunities in Silicon Valley, as well as the rest of the San Joaquin Valley. With respect to its location, reliable passenger and commuter rail service are integral for the success of San Joaquin County.

Below, Figure 4 shows the Greater Stockton/Lathrop area, noting water and rail connectivity within a 50-mile and 100-mile radius of Stockton. Figures 5 and 6, on page 9, show exhibits of the Stockton and Lathrop projects, respectively.

1 Bureau of Labor and Statistics, Local Area Unemployment Statistics Map, http://data.bls.gov/map/MapToolServlet. For February 2016. Accessed: April 7, 2016. 2 U.S. Census Bureau, American Fact Finder – Community Facts, http://factfinder.census.gov/faces/nav/jsf/pages/community_facts.xhtml. Accessed April 7, 2016. 3 City of Lathrop, About Us, http://www.ci.lathrop.ca.us/about/

Figure 4: Stockton, California and Other Areas of Significance

Figure 5: Stockton Wye Location

Figure 6: Lathrop Connection Location

3.0 Project Parties SJCOG is serving as the primary sponsor for this application and is acting in partnership with UP. In addition, a list of project supporters can be found in Section 6.2, with their Letters of Support located in Appendix B.

San Joaquin Council of Union Pacific Railroad Governments (SJCOG) (UP) Project Sponsor - SJCOG will UP is the Project Initiator, serve as the grant recipient and will assist the SJGOC and will be responsible for in engineering design, the overall implementation construction, and of the project. SJCOG serves operations. UP is a major as the metropolitan Class I railroad serving planning organization for California and 22 other the area. U.S. states.

4.0 Project Costs, Funds, Sources, and Uses 4.1 Project Costs and Funding Sources The Stockton Wye and Lathrop Connection project components are supported by UP and local public partners. In the past, UP has worked diligently to secure local public funding to complete the proposed rail improvements. In addition to the $5.29 million that it plans to contribute to these project components, UP also secured $3 million in Trade Corridor Improvement Funds (TCIF) from the Northern California Trade Coalition, which will be recommending final approval to California Transportation Commission this year.

UP’s contribution represents nearly 31 percent of the total funds needed to complete and construct the project components. State funds (TCIF) make up another 17 percent of the total needed funds. The remaining funds needed to construct the project components are being requested from the FY 2016 TIGER VIII opportunity. See Table 1 below for the commitment of matching funds and the amount of TIGER funding requested to complete the project components and Figure 7 below for a breakdown of funding sources by percentage.

Table 1: Combined - Summary of Project Costs and Funding Sources

Project Component Federal (TIGER) State (TCIF) Private (UP) TOTAL

Stockton Wye $4.0 M $1.5 M $2.64 M $8.14 M

Lathrop Connection $5.0 M $1.5 M $2.65 M $9.15 M

TOTAL $9.0 M $3.0 M $5.29 M $17.29 M

31% 52% Figure 7: Source of Funds for both

Project Components, Percentages 17%

Federal (TIGER) State (TCIF) Private (UP)

4.2 Detailed Budget Breakdown and TIGER Fund Allocation Table 2 summarizes the uses of project Table 2: Uses of Funds for both Stockton Wye funds, broken down by the project’s and Lathrop Connection major elements. UP and its sponsor Funds Percent of SJCOG are committed to improving the Project Elements Allocated Funds freight rail network and associated Engineering railroad connectivity, by contributing $1.29 M 8% Services $5.29 million towards the project’s $17.29 million cost, expended over a three-year Construction $16.0 M 92% period. UP has already absorbed the real TOTAL $17.29 M 100% estate and preliminary and final design engineering costs. These contributing funds cover the outstanding field engineering review and construction costs. TIGER funding of $9 million, when combined with state funds and private investment, provides critical project funding to ensure the completion of the project. See Appendix D for detailed cost estimates for each project component.

5.0 Primary Selection Criteria The projects will address several challenges and provide a variety of long-term benefits including:

The projects offer increased mobility of freight, commuter, and Promote passenger rail services. With more flexibility for freight movements, the the state of good rail network will see increased availability for maintenance windows, repair allowing for upkeep, rehabilitation, and replacement of existing track assets to occur.

Enhance The project will increase the region’s economic competitiveness by supporting the growth of distribution, manufacturing, and warehousing economic developments at the Ports of Stockton and Oakland and will improve their competitiveness tenants’ operating efficiencies and organizational effectiveness

By providing enhanced rail access, the project will divert trucks from local, state, and interstate highways, resulting in increased freight Promote transportation efficiency and reduced emissions and oil dependence. The Lathrop Connection will shorten the current route by 62 miles, and provide environmental 45 minutes of time savings for every train diverted. Additionally, the sustainability Stockton Wye connection will shorten the current route by 4 miles and reduce train idling by 4.6 hours for every UP freight train movement destined for the Port of Stockton.

The project will reduce delay to passenger and commuter rail operations and will reduce vehicle delay for motorists at highway- Improve rail grade crossings. Additionally, the Capital Corridor boasts ridership levels in excess of 1.47 million combined with 1.18 million riders from ACE. quality of life Any time savings passed along to riders aids in improving quality of life. With operational improvements to passenger and freight rail congestion, reduced locomotive idling and vehicle emissions will also be realized

Improve The project will enhance grade crossing equipment and safety, public safety while also creating safer conditions for pedestrians in downtown Stockton

The following sections describe these benefits and others, in detail, over a 20-year horizon and focus on how the project meets and exceeds the requirements for the primary selection criteria of this application.

5.1 State of Good Repair There is a clear need in the U.S. to meet mobility, environmental, and energy demands to keep up with growth. A healthy transportation network is the solution and occurs by continually enhancing transportation services and infrastructure, increasing passenger rail service frequencies, and by creating network efficiencies. These conditions are needed to maintain a transportation system in a state of good repair.

The Project is composed of two different track connections, which will alleviate congestion from adjacent main track corridors. Essentially, these project components offer increased mobility of freight, commuter, and passenger rail services. With more flexibility for freight movements, the rail network will see increased availability for maintenance windows, allowing for upkeep, rehabilitation, and replacement of existing track assets to occur. This is critical for maintaining a transportation network in a state of good repair.

In addition, the Stockton Wye project may Figure 8: UP's long rail facility at Port close one grade crossing at East Scotts of Stockton Avenue, while improving a grade crossing at Aurora Street. The potential to close the East Scotts Avenue crossing will result in one less crossing to maintain. At both project locations, where principal rail lines intersect, there will be upgrades to wayside signal infrastructure at control points and new track turnouts to accommodate new track connections.

In 2014 UP invested $18 million to build a long rail welding facility at the Port of Stockton and is the first U.S. railroad to import long rail from Japan. The welded quarter mile pieces of rail are loaded onto trains that leave the Port of Stockton for transport across the UP system. UP’s long rail facility is shown in Figure 8 above. Continuous welded rail (CWR), or long rail, was first used in lieu of traditional jointed rail, as traditional jointed rail was considered a weak component in the track structure. CWR seeks to reduce this infrastructure risk by eliminating the rail joint altogether. The UP facility helps improve rail reliability through timely service and delivery, and is an integral element in maintaining a state of good repair across the UP network. The Stockton Wye and Lathrop Connection projects will improve delivery of long rail to where it is needed.

The UP long rail facility is still ramping up to full capacity and has already increased unit train volumes from the Port of Stockton. The Stockton and Lathrop connections will compliment UP's recent investment at the port and will provide immediate benefit to those rail trains already being shipped from the facility. As production increases, the benefit of these connections will continue to accrue for the long rail business and all users of the junctions.

5.2 Economic Competiveness The San Joaquin County’s Economic Development Vision and Implementation Plan (EDVIP) is a blueprint that highlights strategies for meeting future transportation, economic development, and environmental needs within San Joaquin County and adjacent areas.4 It emphasizes a plan that could respond to growth and infrastructure challenges in a comprehensive manner while developing the county’s economy. The long-range plan addressed Figure 9: Rail being delivered by ship to UP transportation needs and underscored Long Rail Facility at Port of Stockton sustainable transportation options that would enhance the connections between existing networks to allow for more efficient multimodal movement of goods and people. In addition, the plan highlighted transportation improvements to create mobility options, while maintaining existing infrastructure and improving the public use of transit options through increased reliability, safety, and convenience. The project readily addresses the county’s vision for future transportation needs, as the proposed improvements will modify existing rail infrastructure to improve rail network efficiency, including safe, reliable transportation of the public to help improve the local economy. The Plan also states that San Joaquin County’s economic development needs are centered on economic growth, job retention, and job creation. These two project components will also improve direct freight rail access to the Port of Stockton, and nearby Port of Oakland. These two ports both have long histories of creating economic development by attracting

4 County of San Joaquin, Economic Development Vision and Implementation Plan, http://www.sjgov.org/board/board%20meetings/agendas/031213/MG93836/AS93861/AI95223/DO95224 /DO_95224.PDF

new tenants that create and retain living wage jobs. The need for quality, well paying jobs is critical to building “ladders of opportunity” for disadvantaged groups in San Joaquin County. Any increase in port activity, via rail or otherwise, will result in an increase in trade, income, revenues, and jobs. In addition, the project seeks to increase throughput and velocity of freight trains, resulting in more efficient and cost-effective movements of goods and raw materials, allowing for growth and efficiency of the U.S. economy. 5.3 Quality of Life The Project addresses the Livability Figure 10: Robert Cabral Station in Stockton Principles established by the U.S. Department of Transportation (USDOT). When completed, it will support and improve the quality of life not only of nearby residents, but also the entire region, by providing more transportation choices, enhancing economic competitiveness, supporting existing communities, and coordinating policies and leveraging investments. An example of livability principles includes the Robert Cabral Station in Stockton shown in Figure 10 located in downtown Stockton. In proximity to the recently revitalized station, a large private infill transit-oriented development master plan has recently been approved. This development will consist of 1,034 residential units, 200,000 square feet of retail, 90,000 square feet of commercial of 110,000 square feet of industrial/art studio, and phases of this project are currently under construction. 5.3.1 Reduced Grade Crossing Delay The diversion of some UP trains via the Lathrop Connection to the UP Oakland Subdivision will have the benefit of reduced delays to motorists at grade crossings on the UP Martinez Subdivision since those trains have been shifted. Over a 20-year period, these auto travel time savings and operating costs will total $5.1 million, discounted at 7 percent. See Appendix C for Benefit-Cost Analysis (BCA) results. 5.3.2 Ladders of Opportunities The project, as planned, expands economic opportunity and socioeconomic mobility for San Joaquin County, and on the connecting rail networks in adjacent region. The construction of these project components present opportunities for increased mobility and connectivity of

the San Joaquin Valley and the San Francisco Bay Area. Passenger and commuter rail reliability is essential for those residing and working within this region; especially since the improved reliability of passenger and commuter rail transportation is critical to many time sensitive activities, such as getting to jobs, health care appointments, and schools.

With the project components located in economically disadvantaged areas, time savings from reduced train delay at grade crossings combined with time savings and reliability of passenger and commuter trains will help to improve the public’s quality of life while providing “ladders of opportunity” that support local workforce development.

5.4 Environmental Sustainability The San Joaquin County’s Economic Development Vision and Implementation Plan stresses the importance of clean air and improved water quality. The new rail connections constructed by the project would limit railroad locomotive idling and improve the efficiency of locomotive operations through lower fuel usage, and save 11.4 million gallons of fuel over a 20-year period. Additionally, any construction activities would be compliant with the Clean Water Act and Clean Air Act guidelines, and follow all laws and regulations pertaining to construction activities. 5.4.1 Preserving Nature Construction of the project components will be conducted in an environmentally sensitive and responsible manner by using natural resources most efficiently and mitigating impacts to water and air quality. This will be done in accordance with environmental best management practices (BMPs) and by utilizing a Storm Water Pollution Prevention Plan (SWPPP) for each project location. Additionally, UP will participate in SJCOG’s San Joaquin Multi-Species Habitat Conservation and Open Space Plan (SJMSCP). Participation in the SJMSCP satisfies requirements of both the state and federal endangered species acts, and ensures that any impacts are mitigated below a level of significance in compliance with the California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA).

5.4.2 Reducing Emissions By routing trains more efficiently, the Stockton Wye project will decrease the amount of locomotive idling time for all trains waiting to travel through the UP/BNSF interlocking. Additionally, the Stockton Wye will also eliminate the need for UP trains to runaround in the UP Stockton Yard, saving trains approximately an additional 4 miles of slow navigation through the yard. In addition, 4.6 hours of time will be reduced by not making this extra train movement, translating into more efficient locomotive performance and a reduction in fuel consumption and operating time.

The Lathrop Connection will route trains from the existing route between Lathrop and Oakland on the UP Martinez Subdivision to the parallel UP Oakland Subdivision, saving approximately 62 miles. As a result, the UP Martinez Subdivision will see fewer UP freight trains. Overall, the shorter route translates into more efficient freight train operations and decreased fuel consumption.

Reductions to fuel consumption and more efficient locomotive performance lead to improved air quality, with an overall decrease in emissions from trains traveling within the area. The project will reduce 521 metric tons of NOx and almost 94,000 tons of carbon dioxide CO2 through the 20-year period of operation. In addition, 10.6 million gallons of fuel are expected to be saved through the implementation of these rail improvements. The Project is estimated to save $7.1 million in emission costs and $14.8 million in fuel costs at a 7 percent discount rate over 20 years. See Appendix C for Benefit-Cost Analysis (BCA) results. 5.5 Safety The project will enhance grade crossing infrastructure and safety, while also creating safer conditions for pedestrians. Additionally, the Stockton Wye project may close one at-grade crossing at East Scotts Avenue near the UP/BNSF railroad interlocking, and upgrade Aurora Street with new grade crossing equipment, American with Disabilities Act (ADA) compliant sidewalks, and right-of-way fencing. Moreover, both of these project components will mitigate potential risks for motorists and pedestrians. 6.0 Secondary Selection Criteria 6.1 Innovation This project has demonstrated innovation through the development of a strong state- local partnership to support this project. Innovative construction and mitigation techniques will be researched and utilized as appropriate during the implementation and construction phase of the Project.

6.2 Partnership The organizations, businesses, and government officials supporting the Stockton and Lathrop rail improvements are highly supportive of this Project. SJCOG and UP have been at the forefront of this effort in solidifying support to improve rail connectivity and reduce rail crossing congestion. UP has secured $3 million in Trade Corridor Improvement Funds (TCIF) from the Northern California Trade Coalition, which will be recommending final approval to California Transportation Commission this year. In partnership with SJCOG, UP continues to

gain support from legislators, government, rail shippers, local businesses, and other economic development organizations within the state and county.

Letters of support can be found in Appendix B. Below is a list of the project supporters. ● Representative Jerry McNerney, Congress of the United States ● Senator Anthony Cannella, California State Senate ● Assembly Member Adam Gray, Assembly of California Legislature ● Assembly Member Kristin Olsen, Assembly of California Legislature ● Director Malcolm Dougherty, California Department of Transportation ● Mayor Stephen DeBrum, City of Manteca ● President and CEO Joseph Boardman, Amtrak ● Capitol Corridor Joint Powers Authority (Capitol Corridor Passenger Trains) ● San Joaquin Joint Powers Authority (ACE Commuter Passenger Trains) ● San Joaquin Regional Rail Commission ● Alameda County Transportation Commission ● City of Tracy ● County of Alameda ● San Joaquin County ● Placer County Transportation Planning Agency ● California Partnership for the San Joaquin Valley ● Port of Oakland ● Port of Stockton ● Stanislaus Business Alliance ● Stanislaus Council of Governments ● Mountain House Community Services District ● Hacienda Owners Association ● Rail Passenger Association of California and Nevada ● California Short Line Railroad Association ● Central Valley Rail Working Group ● Union Pacific Railroad ● Central California Traction Company ● Advanced Biofuels Community Fuels ● Bowie Resource Partners, LLC ● CalPortland ● Industrial Railways Company ● Metro Ports ● PSMA ● Ten│Space ● Transload Solutions, LLC ● Wilmar ● Yara North America

7.0 Results of Benefit Cost Analysis Table 3 below summarizes the monetization of the main benefits for the proposed improvements, categorized under the main criteria established in the TIGER program. A 23-year period of analysis was used in the estimation of the project benefits and costs, which includes 3 years of project development (design and construction) and 20 years of operation. Annual costs and benefits are estimated through 2039. Construction of all the improvements is expected to be completed in mid-2019, thus benefits start accruing in 2019 for the full operation of the project (20 years).

Table 3: Monetized Benefits by Selection Criterion

7% Discount 3% Discount Long-Term Outcomes Benefit Categories Rate Rate

State of Good Repair Qualitative Qualitative Qualitative Economic $25.4 Reduced Shipper Costs $15.7M Competitiveness M Passenger Train Travel Time Costs Savings, Reduced Time Travel Quality of Life $5.1M $8.4M Costs, Vehicle Operating Costs Savings Environmental Avoided Emissions Costs $7.1M $9.0M Sustainability Safety Qualitative Qualitative Qualitative

TOTAL BENEFIT ESTIMATES $ 28.9 M $ 27.9 M

Considering all monetized benefits and costs (capital as well as operating and maintenance costs), the estimated internal rate of return of the project is estimated at 16 percent. With a 7 percent discount rate, the project would result in a net present value of nearly $27.9 million and a benefit-cost ratio of 1.93. A 3 percent real discount rate was used for sensitivity analysis. With the 3 percent real discount rate, the net present value of the project would increase to $42.7 million, for a benefit-cost ratio of 2.67. Table 4 below shows the results of the Benefit-Cost Analysis.

Table 4: Summary of Benefit-Cost Analysis

Category 7% Discount Rate 3% Discount Rate

Total Discounted Benefits $27.9 M $42.7 M Total Discounted Costs $14.4 M $16.0 M Net Present Value $13.4 M $26.7 M Benefit / Cost Ratio 1.93 2.67 Internal Rate of Return (%) 16% 16%

A Benefit-Cost Analysis only presents those costs and benefits, which can be measured and monetized. Particularly in an area such as livability, benefits are difficult to measure and should be assumed to be some number in addition to the total presented so that the true ratio of benefits to costs is higher than the reported figures. For a detailed discussion of the methodology, reference the Benefit-Cost Analysis and technical appendix, found in Appendix C. 8.0 Project Readiness 8.1 Technical Feasibility As a metropolitan planning organization, or MPO, SJCOG has successfully managed many federal funding grants in the past and is familiar with federal funding administration and contracting requirements. Additionally, SJCOG serves as the lead agency and administrator of San Joaquin County’s local “Measure K” ½ cent sales tax program.5 In this capacity, SJCOG also serves as the lead agency for different phases of major capital project delivery, as well as providing funding which support highway, bus, and rail transit, and smart growth investments in the county. As a Local Transportation Authority under Measure K, SJCOG has also served as the lead agency to deliver major phases of large highway improvements, including projects that have involved federal funding and NEPA approval requirements. In addition, SJCOG is familiar with California Department of Transportation (Caltrans) project delivery requirements and has worked on major projects where it served in an oversight capacity and had final approval at major project milestones.

UP has extensive experience with large capital projects of many types carried out by its in- house Engineering Department. UP’s Engineering and Public Affairs departments have been

5 San Joaquin Council of Governments, “Measure K”, http://www.sjcog.org/index.aspx?nid=97

coordinating closely with representatives of San Joaquin Council of Governments (SJCOG) and local municipalities on various projects over the years. The developed relationships between UP and these public entities will facilitate implementation of the Project.

8.1.1 Right of Way UP has invested $3.93 million on right-of-way purchases. All right-of-way needed to complete the two project components has already been purchased; however, an easement to cross the South San Joaquin Irrigation District (SSJID) irrigation channel still needs to be obtained. UP has been negotiating for this easement over the past couple of years and is confident it will not pose a substantial risk to the project.

8.1.2 Project Design UP began designing the Stockton Wye and Lathrop Connection concepts in 2011. The Stockton Wye project is designed to a 90% level for Plans, Specifications, and Estimate (PS&E), while the Lathrop Connection is designed to a 95% level (PS&E). Project Estimates and Engineering Design Documents are found in Appendix D and Appendix E, respectively.

8.2 Financial Feasibility SJCOG and its cooperating partner, UP, are committed to improving the current transportation network, and enhancing railroad connectivity, by contributing $5.29 million toward the Project’s $17.29 million cost expended over a three-year period. These funds cover engineering services and project construction. The TIGER grant of $9 million, when combined with state funds and private investment, provides critical project funding to ensure that project’s rail improvements are brought to fruition. Table 5 below shows funding sources with funding percentages, with Table 6 below showing project cost breakdowns. Table 5: Combined - Summary of Project Costs and Funding Sources Project Component Federal (TIGER) State (TCIF) Private (UP) TOTAL Stockton Wye $4.0 M $1.5 M $2.64 M $8.14 M Lathrop Connection $5.0 M $1.5 M $2.65 M $9.15 M TOTAL $9.0 M $3.0 M $5.29 M $17.29 M

Table 6: Uses of Project Funds for both Stockton and Lathrop Project Components Project Elements Funds Allocated Percent of Funds Engineering Services $1.29 M 8% Construction $16.0 M 92% TOTAL $17.29 M 100%

8.3 Project Schedule The Project’s final design and permitting will soon be underway, with design, entitlement, and permitting starting in “Quarter 1” following project initiation. Competitive bidding will begin at the start of 2018, with construction anticipated to begin during the first half of 2018, and last approximately one year. An estimated project completion date is mid-2019, provided that project initiation is concluded by mid-2016.

Table 7 and Table 8, below, summarize when each project component is anticipated to meet major project milestones for both project components. The summarized schedules below demonstrate that the TIGER funds will be obligated before the statutory deadline of September 30, 2019.

Table 7: Project Schedule – Stockton Wye 2016 2017 2018 2019 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Complete Design, Entitlements, & Permitting

Bid Project Construction Begins

• Relocate power line – Utility Company

• Site work including grading, pavement, and fencing improvements.

• Aurora Street Crossing Improvements • Union Street Improvements Construction

Wraps Up • BNSF Track & Signal Improvements • Complete Aurora

Street Crossing Improvements • UP Track & Signal Improvements

Table 8: Project Schedule – Lathrop Connection 2016 2017 2018 2019 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Complete Design, Entitlements, &

Permitting Bid

Project Constr uction Construction Begins Begins • Site work including grading, pavement, and fencing improvements

Construction Wraps Up

• UP Track & Signal Improvements

8.4 Required Approvals (NEPA, Planning Approvals, and Other Reviews/Approvals) 8.4.1 Environmental Permits and Reviews Stockton Wye The Stockton Wye project is located within urban areas and construction activities are limited to the existing railroad right of way, street crossings, and in the footprint of a previously demolished building. Due to TCIF funding requirements, the project is anticipated to go through a California Environmental Quality Act (CEQA) review by Caltrans. It will also go through NEPA in accordance with TIGER funding. Additionally, a City of Stockton encroachment permit will be needed prior to the start of construction.

Lathrop Connection For the Lathrop Connection project, work will be performed under a Nationwide Permit pending review from the United State Army Corps of Engineers (USACE). In addition, wetland mitigation bank credits will need to be purchased from USACE, upon their confirmation of wetland impacts.

Permits required by California include a National Pollutant Discharge Elimination System (NPDES) Construction Stormwater Discharge General permit, with agency approval by the Water Quality Control Board (SWQCB). A Water Quality Certification permit is also required, with agency approval by the Central Valley Regional Water Quality Control Board. Another permit required by the South San Joaquin Irrigation District (SSJID) is a Box Culvert Permit.

Due to TCIF funding requirements, the project is anticipated to go through CEQA review by Caltrans. It will also go through NEPA in accordance with TIGER funding.

Additionally, UP will participate in SJCOG’s San Joaquin Multi-Species Habitat Conservation and Open Space Plan (SJMSCP). Participation in the SJMSCP satisfies requirements of both the state and federal endangered species acts, and ensures that any impacts are mitigated below a level of significance in compliance with CEQA and NEPA.

These permits are currently underway, but will require up to five quarters for completion. The wetland mitigation bank credits and SSJID permit approvals do require longer reviews than do the Nationwide, NPDES, Water Quality Certification, and box culvert permits. UP has prepared for this review period within the Lathrop Connection project schedule and can easily adjust bidding and construction dates if the permits are approved earlier than anticipated. Application for the SJMSCP will occur closer to the start of construction, and will be listed as an important milestone for the project.

8.4.2 Legislative Approvals UP’s final design plans for each of the project components will be submitted to the San Joaquin Council of Governments, and all other required agencies and municipalities for review and approval prior to construction. The attached letters provide further evidence that there is a wide range of support from federal, state, and local elected officials to complete the project in a timely manner. See Appendix B for Letters of Support. 8.4.3 State and Regional Plans In the 2014 Regional Transportation Figure 11: Proposed ACE Expansion Plan/Sustainable Communities Strategy for San Joaquin County, SJCOG identified opportunities for ongoing transportation and community planning within San Joaquin County. The plan included funds towards the operation and enhancement of the Altamont Corridor Express (ACE) passenger rail service.6 SJCOG states that a properly

6 San Joaquin Council of Governments, 2014 Regional Transportation Plan/Sustainable Communities Strategy for San Joaquin County, http://www.sjcog.org/DocumentCenter/View/489

maintained transit system is critical to the mobility of the region. The Stockton Wye and Lathrop Connection projects are aligned with the plan’s goals for ongoing transportation and community planning, especially with respect to transit operations. The project will help to maintain and improve mobility within San Joaquin County.

8.5 Mitigation A table has been developed, assessing the risks that may pose a threat to the ability of the project to meet its objectives and schedule, along with proposed mitigation actions. Table 9 below shows the general categories of risk assessed and mitigation strategies.

Table 9: Risk and Mitigation Strategies for the Stockton Wye and Lathrop Connection Projects 1 =Low 2 = Minor 3 = Moderate 4 = Significant

Impact Probability Mitigation Risk # Risk Category Risk Name Description of Occurrence Cost Schedule Strategies

Given the broad public and private benefits, this project will need both public Loss of private Loss of funding due and private sources 1 Financial or Private to unforeseen 1 2 4 to succeed. If one of Funding circumstances the funding sources does not materialize, then the project will be delayed until a new source is found. UP and BNSF will manage the track construction Stakeholders components. providing significant Coordination with contributions to the the irrigation district project may have 2 Management Stakeholders 1 2 2 and City of Stockton varying procedures will remain a focal and objectives to point to mitigate any ensure proper schedule impacts project execution due to crossing their respective properties.

Impact Probability Mitigation Risk # Risk Category Risk Name Description of Occurrence Cost Schedule Strategies

Ongoing discussions with the local Right-of-way will irrigation district and Property need to be acquired City of Stockton 3 Right of Way 1 3 3 ownership to complete the have occurred to project. manage through any easement related issues. Contracts between UP and the State of California and the SJCOG will be Contracts required. All parties establishing the have extensive terms of public- experience private partnerships Contracting & Administrative managing grants 4 could slow the 1 1 3 Procurement Burden and working procurement together to deliver process due to projects. The project required legislative teams will meet approvals regularly to ensure the schedule is not impeded by agreements. Roadway and rail construction components will be UPRR will manage undertaken by resources in line with Availability of Contracting & private agencies the funding 5 Qualified 1 1 1 Procurement that may prioritize requirements and Contractors the assignment of established time resources based on requirements. internal goals and objectives

Impact Probability Mitigation Risk # Risk Category Risk Name Description of Occurrence Cost Schedule Strategies

Project phasing will reduce impact. Traffic congestion Coordination with resulting from the the cities, railroads, construction of 6 Construction Traffic 3 2 3 and passenger roadway agencies will occur improvements and to schedule work site infrastructure and any outages to minimize impact.

Project phasing will reduce impact and Existing businesses coordination with in the area of the the City of Stockton Business 7 Construction project components 1 1 1 will occur to Disruption may be impacted by minimize any the construction disruption to downtown area businesses. Required environmental regulations will be followed and responded to Historic/Archaeologi accordingly. There cal/cultural 8 Environmental NEPA/CEQA 1 2 3 are no known resources significant historic, discoveries archaeological, cultural, or environmental issues within the project areas.

Preliminary Project impact on investigation 9 Environmental Wetlands 1 1 1 existing wetlands suggests this is not a problem.

Impact Probability Mitigation Risk # Risk Category Risk Name Description of Occurrence Cost Schedule Strategies

Required environmental regulations will be Impact to any followed and Endangered endangered species responded to 10 Environmental 1 1 1 Species within the project accordingly. There area are no known endangered species within the project areas. The designer is actively coordinating with the utilities. Unforeseen utilities 11 Utilities Site Utilities 1 2 3 Engineered may pose concern protective measures are included in the design. A Storm Water Pollution Prevention Plan (SWPPP) will be Management of incorporated into Operations & Storm water during the design and will 12 Storm Water 1 1 1 Maintenance and post address storm water construction management during construction and once the site is stabilized.

9.0 Federal Wage Rate Certification Signed certification stating that the SJCOG will comply with the requirements of Subchapter IV of Chapter 31 of Title 40, United States Code (Federal wage rate requirements) as required by the FY 2016 Appropriations Act is completed and attached as Appendix A.

10.0 Standard Form 424 (Application for Federal Assistance) SJCOG has completed the Standard Form 424 and has uploaded it to grants.gov.

Appendix A: Federal Wage Rate Certification

Also included as an attachment.

Appendix B: Letters of Support

Also included as an attachment.

April 18, 2016

The Honorable Anthony Foxx Secretary U.S. Department of Transportation 1200 New Jersey Avenue, SE Washington, DC 20590

Subject: Capitol Corridor Joint Powers Authority (CCJPA) Support for the San Joaquin Council of Governments 2016 TIGER Application for the San Joaquin Rail Access to Opportunity: Passenger, Freight, Port.

Dear Secretary Foxx:

On behalf of the CCJPA, I am writing to express our strong support of the San Joaquin Council of Governments (SJCOG) 2016 TIGER grant application for the San Joaquin Rail Access to Opportunity project. Funding of their request will allow the SJCOG to leverage state and private funds to make critical improvements in the Northern California rail infrastructure to reduce passenger delays, improve air quality, and provide improved access from the Port of Stockton to national and worldwide markets.

While Capitol Corridor (Sacramento-Oakland-San Jose) intercity passenger trains do not operate directly on the tracks in this area, the CCJPA recognizes the positive cross-cutting benefits to Capitol Corridor passengers from the project. The Lathrop Connection component alone will allow efficient re-routing of freight service, reducing net air pollutant emissions, and since the network is a system, it will functionally increase capacity and improve reliability along a section of the Capitol Corridor route in addition to the more direct benefits to the San Joaquin Intercity Passenger Rail service and the Altamont Corridor Express (ACE) commuter rail service.

These improvements will enhance rail network fluidity and efficiency and can potentially become foundational when considering expansions of passenger rail service. These improvements will also help lessen freight interference between the two Class I railroads operating in this high volume area. As a result, this connection will help eliminate traffic delays and improve air quality through reducing locomotive idling in downtown Stockton.

The CCJPA appreciates the actions of SJCOG to advance these important intermodal projects and strongly supports their TIGER application. Given the many public benefits associated with this project for Northern California and beyond, I urge you to support their TIGER application. Thank you for your consideration of investment in this project. Please feel free to contact me ([email protected], 510-464-6993) if you have any questions.

Sincerely,

David Kutrosky Managing Director cc: The Honorable Brain Kelly, Secretary – California State Transportation Agency CCJPA Board of Directors Supervisor John Pedrozo, Chair, Merced County Alternate Rodrigo Espinoza, City of Livingston Supervisor Henry Perea, Vice-Chair, Fresno County Alternate Nathan Magsig, City of Clovis Councilmember Don Tatzin, Vice-Chair, City of Lafayette Alternate Federal Glover, Contra Costa County Councilmember Patrick Hume, City of Elk Grove Alternate Don Nottoli, Sacramento County Supervisor Vito Chiesa, Stanislaus County Alternate Richard O’Brien, City of Riverbank Supervisor Scott Haggerty, Alameda County Alternate Tom Blalock, BART Supervisor Allen Ishida, Tulare County Alternate Bob Link, City of Visalia Councilmember Bob Johnson, City of Lodi Alternate Micheal Maciel, City of Tracy Supervisor Doug Verboon, Kings County Alternate Russ Curry, City of Hanford Supervisor David Rogers, Madera County Alternate Andrew Madellin, City of Madera

April 26, 2016

Anthony Foxx, Secretary of Transportation US Department of Transportation 1200 New Jersey Ave, SE Washington, DC 20590

Re: Support for the San Joaquin Council of Governments 2016 TIGER Application for the San Joaquin Rail Access to Opportunity: Passenger, Freight, Port.

Dear Secretary Foxx:

On behalf of the San Joaquin Joint Powers Authority (SJJPA), I am writing to express our strong support of the San Joaquin Council of Governments (SJCOG) 2016 TIGER grant application for the San Joaquin Rail Access to Opportunity project. Funding of their request will allow the SJCOG to leverage state and private funds to make critical improvements in the region’s rail infrastructure to reduce passenger delays, improve air quality, and provide improved access from the Port of Stockton to national and worldwide markets.

The Port of Stockton is a major economic asset to the San Joaquin Valley and Northern California megaregion. By completing the new rail connection the Port and its customers will benefit from greater freight rail efficiency opportunities. These improvements will also help lessen freight interference between the two Class I railroads operating in this high volume area. As a result, this connection will help eliminate traffic delays and improve air quality through reducing locomotive idling in downtown Stockton.

Tens of thousands of residents of the San Joaquin Valley and Northern California rely on the Altamont Corridor Express (ACE), Amtrak San Joaquins, and Capital Corridor passenger services as their source of transportation. Construction of these rail infrastructure enhancements will help reduce current delays for these vital passenger rail services and potentially support future expansion.

SJJPA value our working relationship with SJCOG and strongly support their TIGER application. Given the many public benefits associated with this project for our region, I urge you to support their application. Thank you for your consideration of investment in this extremely important project. Please feel free to contact me if you have any questions.

Sincerely,

John Pedrozo, Chairperson San Joaquin Joint Powers Authority

PLACER COUNTY KEITH NESBilT TRANSPORTATION City of Auburn PLANNING AGENCY TONY HESCH City of Colfax STAN NADER City of Lincoln April15, 2016 BRIAN BAKER Town of loomis DIANA RUSLIN City of Rocklin SUSAN ROHAN Honorable Anthony Foxx City of Roseville Secretary JIM HOLMES KIRK UHLER U.S. Department of Transportation Placer County RON TREABESS 1200 New Jersey Avenue, SE Citizen Representative Washington, DC 20590 CELIA McADAM Executive Director Re: Support for the San Joaquin Council of Governments 2016 TIGER Application for the San Joaquin Rail Access to Opportunity Project

Dear Secretary Foxx:

On behalf of the Placer County Transportation Planning Agency (PCTP A), I am writing to express our strong support ofthe San Joaquin Council of Governments (SJCOG) 2016 TIGER grant application for the San Joaquin Rail Access to Opportunity Project. The San Joaquin Rail Access to Opportunity Project includes constructing new rail connections off of the Union Pacific Railroad main line in both the City of Stockton and the City of Lathrop. Funding this request will allow the SJCOG to leverage state and private funds to make critical improvements in the region's rail infrastructure to reduce passenger delays, improve air quality, and provide improved access from the Port of Stockton to national and worldwide markets.

The Port of Stockton is a major economic asset to the San Joaquin Valley and Northern California megaregion. By completing a new rail connection the Port of Stockton and its customers will benefit from greater freight rail efficiency opportunities. These improvements will also help lessen freight interference between the two Class I railroads operating in this high volume area. As a result, this connection will help eliminate traffic delays and improve air quality through reducing locomotive idling in downtown Stockton.

Tens of thousands of residents of the San Joaquin Valley and Northern California rely on the Altamont Corridor Express (ACE), San Joaquin Amtrak, and Capital Corridor passenger services as their source of transportation. Construction of the San Joaquin Rail Access to Opportunity Project will also help reduce current delays for these vital passenger rail services and potentially support future expansion.

PCTP A values our working relationship with the SJCOG and strongly support their TIGER application. Given the many public benefits associated with this project for our region, I urge you to support their grant application. Thank you for your consideration of investment in this extremely important project. Please feel free to contact me if you have any questions.

CM:DM:ss

299 Nevada Street • Auburn, CA 95603 • (530} 823-4030 (tel/fax}

April 27, 2016

Honorable Anthony Foxx, Secretary U.S. Department of Transportation 1200 New Jersey Avenue, SE Washington, DC 20590

Re: Support for the San Joaquin Council of Governments 2016 TIGER Application for the San Joaquin Rail Access to Opportunity: Passenger, Freight, Port.

Dear Secretary Foxx:

On behalf of the California Partnership for the San Joaquin Valley (Partnership), I am writing to express our strong support of the San Joaquin Council of Governments (SJCOG) 2016 TIGER grant application for the San Joaquin Rail Access to Opportunity project. Funding of their request will allow the SJCOG to leverage state and private funds to make critical improvements in the region’s rail infrastructure to reduce passenger delays, improve air quality, and provide improved access from the Port of Stockton to national and worldwide markets.

The Partnership, created in June 2005, is a public-private partnership that provides an organizational framework for collaboration as a way to improve the quality of life in the San Joaquin Valley. This unprecedented effort focuses on opportunities to collaborate within the eight-county region to create a more prosperous economy, quality environment, and greater social equity. In December 2015, the Partnership adopted support of the San Joaquin Railroad as one of seven goals for the next two years. The funding potential of this program is consistent with the Partnership’s goal.

Tens of thousands of residents of the San Joaquin Valley and Northern California rely on the Altamont Corridor Express (ACE), San Joaquin Amtrak, and Capital Corridor passenger services as their source of transportation. Construction of these rail infrastructure enhancements will help reduce current delays for these vital passenger rail services and potentially support future expansion.

The Partnership values our working relationship with SJCOG and strongly support their TIGER application. Given the many public benefits associated with this project for our region, I urge you to support their application. Thank you for your consideration of investment in this extremely important project. Please feel free to contact me if you have any questions.

Sincerely,

Mike Dozier Lead Executive

550 E. Shaw Ave., Suite 230 Fresno, California 93710

559.278.0721 p 559.278.6663 f ADMINISTERED BY

www.sjvpartnership.org

April 27, 2016

Anthony Foxx Secretary of Transportation US Department of Transportation 1200 New Jersey Ave, SE Washington, DC 20590

Re: SJCOG Access to Opportunity 2016 TIGER Request

Dear Secretary Foxx:

Hacienda is located in Pleasanton near the geographic center of the San Francisco Bay Area and, at 875 acres, is the largest development of its kind in Northern California. Over 10 million square feet of existing, mixed-use space is occupied by some 650 companies that locally employ over 19,000 people. In addition, Hacienda contains homes to some 4,300 residents and is actively planning and building new projects for as many more. Our facility thrives because of the state-of-the-art working and living environment that has been created through critical components such as a nationally recognized commute alternatives program that, among other things, features a strong connection to the San Joaquin Regional Rail Commission’s Altamont Commuter Express (ACE) service.

Hacienda would like to take this opportunity to express its support for the San Joaquin Council of Governments (SJCOG) 2016 TIGER grant application for the San Joaquin Rail Access to Opportunity project. Funding of their request will allow the SJCOG to leverage state and private funds to make critical improvements in the region's rail infrastructure to reduce passenger delays, improve air quality, and provide improved access from the Port of Stockton to national and worldwide markets.

The Port of Stockton is a major economic asset to the San Joaquin Valley and Northern California megaregion. By completing the new rail connection the Port of Stockton and its customers will benefit from greater freight rail efficiency opportunities. These improvements will also help lessen freight interference between the two Class I railroads operating in this high volume area. As a result, this connection will help eliminate traffic delays and improve air quality through a reduction in locomotive idling in downtown Stockton.

Tens of thousands of residents of the San Joaquin Valley and Northern California rely on ACE, San Joaquin Amtrak, and Capital Corridor passenger services as their source of transportation. Construction of these rail infrastructure enhancements will help reduce current delays for these vital passenger rail services and potentially support future expansion.

For all of these reasons, we believe that there is a smart investment decision that can be made by fulfilling this request. Hacienda strongly encourages you to consider funding SJCOG’s Access to Opportunity project through a 2016 TIGER grant.

Sincerely,

James Paxson General Manager, Hacienda

fc: Letter_2016 TIGER Access to Opportunity Support_042716.let dc: BUS\SJRRC

4305 Hacienda Drive, Suite 330, Pleasanton, California 94588-2738 Phone 925.734.6500 Fax 925.734.6501 e-mail [email protected] www www.hacienda.org

April 18, 2016

Honorable Anthony Foxx Secretary U.S. Department of Transportation 1200 New Jersey Avenue, SE Washington, DC 20590

Re: Support for the San Joaquin Council of Governments 2016 TIGER Application for the San Joaquin Rail Access to Opportunity: Passenger, Freight, Port.

Dear Secretary Foxx:

On behalf of Community Fuels, I am writing to express our strong support of the San Joaquin Council of Governments (SJCOG) 2016 TIGER grant application for the San Joaquin Rail Access to Opportunity project. Funding of their request will allow the SJCOG to leverage state and private funds to make critical improvements in the region’s rail infrastructure to reduce passenger delays, improve air quality, and provide improved access from the Port of Stockton to national and worldwide markets.

Tens of thousands of residents of the San Joaquin Valley and Northern California rely on the Altamont Corridor Express (ACE), San Joaquin Amtrak, and Capital Corridor passenger services as their source of transportation. Construction of these rail infrastructure enhancements will help reduce current delays for these vital passenger rail services and potentially support future expansion.

Community Fuels values our working relationship with SJCOG and the area railroads and strongly support their TIGER application. Given the many public benefits associated with this project for our region, I urge you to support their application. Thank you for your consideration of investment in this extremely important project. Please feel free to contact me if you have any questions.

Sincerely,

Patrick H Samson Purchasing and Logistics Manager American Biodiesel Inc., dba Community Fuels Office: (209) 466-4823 Fax: (209) 547-9209 Cell: (209) 351-2065 email: [email protected]

April 15, 2016

VIA Electronic Mail Honorable Anthony Foxx Secretary U.S. Department of Transportation 1200 New Jersey Avenue, SE Washington, DC 20590

Re: Support for the San Joaquin Council of Governments 2016 TIGER Application for the San Joaquin Rail Access to Opportunity: Passenger, Freight, Port.

Dear Secretary Foxx:

On behalf of Bowie Resource Partners, I am writing to express our strong support of the San Joaquin Council of Governments (SJCOG) 2016 TIGER grant application for the San Joaquin Rail Access to Opportunity project. Funding of their request will allow the SJCOG to leverage state and private funds to make critical improvements in the region’s rail infrastructure to reduce passenger delays, improve air quality, and provide improved access from the Port of Stockton to national and worldwide markets.

Tens of thousands of residents of the San Joaquin Valley and Northern California rely on the Altamont Corridor Express (ACE), San Joaquin Amtrak, and Capital Corridor passenger services as their source of transportation. Construction of these rail infrastructure enhancements will help reduce current delays for these vital passenger rail services and potentially support future expansion.

We value our working relationship with SJCOG and strongly support their TIGER application. Given the many public benefits associated with this project for our region, I urge you to support their application. Thank you for your consideration of investment in this extremely important project. Please feel free to contact me if you have any questions.

Respectfully,

Jennifer R. Hood Director, Transportation

6100 DUTCHMANS LANE ▪ 9TH FLOOR, SUITE 900 LOUISVILLE, KY 40205 ▪ PHONE: 502.584.6022 WWW.BOWIERESOURCES.COM

RAILROAD SPUR TRACK MAINTENANCE CRANE RAIL MATERIALS CONSTRUCTION REPAIRS

Honorable Anthony Foxx Secretary U.S. Department of Transportation 1200 New Jersey Avenue, SE Washington, DC 20590

Re: Support for the San Joaquin Council of Governments 2016 TIGER Application for the San Joaquin Rail Access to Opportunity: Passenger, Freight, Port.

Dear Secretary Foxx:

On behalf of Industrial Railways Company, I am writing to express our strong support of the San Joaquin Council of Governments (SJCOG) 2016 TIGER grant application for the San Joaquin Rail Access to Opportunity project. Funding of their request will allow the SJCOG to leverage state and private funds to make critical improvements in the region’s rail infrastructure to reduce passenger delays, improve air quality, and provide improved access from the Port of Stockton to national and worldwide markets.

Tens of thousands of residents of the San Joaquin Valley and Northern California rely on the Altamont Corridor Express (ACE), San Joaquin Amtrak, and Capital Corridor passenger services as their source of transportation. Construction of these rail infrastructure enhancements will help reduce current delays for these vital passenger rail services and potentially support future expansion.

Industrial Railways Company value our working relationship with SJCOG and strongly support their TIGER application. Given the many public benefits associated with this project for our region, I urge you to support their application. Thank you for your consideration of investment in this extremely important project. Please feel free to contact me if you have any questions.

Sincerely,

Chris Stotka

Chris Stotka, V.P.

890 San Pablo Ave. | Pinole, California 94564 | 510.724.1117 office | 510.724.7078 fax www.industrialrailways.com

Honorable Anthony Foxx Secretary U.S. Department of Transportation 1200 New Jersey Avenue, SE Washington, DC 20590

Re: Support for the San Joaquin Council of Governments 2016 TIGER Application for the San Joaquin Rail Access to Opportunity: Passenger, Freight, Port.

Dear Secretary Foxx:

On behalf of Transload Solutions LLC, I am writing to express our strong support of the San Joaquin Council of Governments (SJCOG) 2016 TIGER grant application for the San Joaquin Rail Access to Opportunity project. Funding of their request will allow the SJCOG to leverage state and private funds to make critical improvements in the region’s rail infrastructure to reduce passenger delays, improve air quality, and provide improved access from the Port of Stockton to national and worldwide markets.

The Port of Stockton is a major economic asset to the San Joaquin Valley and Northern California megaregion. By completing the new rail connection, the Port and its customers will benefit from greater freight rail efficiency opportunities. These improvements will also help lessen freight interference between the two Class I railroads operating in this high volume area. As a result, this connection will help eliminate traffic delays and improve air quality through reducing locomotive idling in downtown Stockton.

Tens of thousands of residents of the San Joaquin Valley and Northern California rely on the Altamont Corridor Express (ACE), San Joaquin Amtrak, and Capital Corridor passenger services as their source of transportation. Construction of these rail infrastructure enhancements will help reduce current delays for these vital passenger rail services and potentially support future expansion.

Transload Solutions LLC value our working relationship with SJCOG and the area railroads and strongly support their TIGER application. Given the many public benefits associated with this project for our region, I urge you to support their application. Thank you for your consideration of investment in this extremely important project. Please feel free to contact me if you have any questions.

Sincerely,

Michael Vilarino209-932-0495 Bus 209-932-0873 Fax 209-649-8651 Cell [email protected]

Honorable Anthony Foxx Secretary U.S. Department of Transportation 1200 New Jersey Avenue, SE Washington, DC 20590

Re: Support for the San Joaquin Council of Governments 2016 TIGER Application for the San Joaquin Rail Access to Opportunity: Passenger, Freight, Port.

Dear Secretary Foxx:

On behalf of Wilmar Oils & Fats, I am writing to express our strong support of the San Joaquin Council of Governments (SJCOG) 2016 TIGER grant application for the San Joaquin Rail Access to Opportunity project. Funding of their request will allow the SJCOG to leverage state and private funds to make critical improvements in the region’s rail infrastructure to reduce passenger delays, improve air quality, and provide improved access from the Port of Stockton to national and worldwide markets.

Tens of thousands of residents of the San Joaquin Valley and Northern California rely on the Altamont Corridor Express (ACE), San Joaquin Amtrak, and Capital Corridor passenger services as their source of transportation. Construction of these rail infrastructure enhancements will help reduce current delays for these vital passenger rail services and potentially support future expansion.

Wilmar Oils & Fats value our working relationship with SJCOG and strongly support their TIGER application. Given the many public benefits associated with this project for our region, I urge you to support their application. Thank you for your consideration of investment in this extremely important project. Please feel free to contact me if you have any questions.

Sincerely,

Kelly Glenn

Wilmar Oils and Fats (Stockton), LLC [email protected] Office: (209) 507-7514

Wilmar Oils and Fats (Stockton), LLC 2008 Port Road B │ Stockton, CA 95203 Phone: 209.507.7500

Appendix C: BCA Narrative

Benefit-Cost Analysis Narrative For the FY 2016 TIGER VIII funding opportunity, San Joaquin Council of Governments (SJCOG) is applying for a grant to fund the final design and the construction phases of the San Joaquin Rail Access to Opportunity Project. To demonstrate that the project will deliver anticipated benefits at reasonable costs, a Cost-Effectiveness Analysis was conducted in the form of a Benefit-Cost Analysis (BCA). This procedure compares the costs associated with the proposed investment to the benefits of the project. To the extent possible, benefits have been monetized. Where not possible to assign a dollar value to a benefit, efforts have been made to quantify it. A qualitative discussion is also provided when a benefit is anticipated to be generated, but cannot be easily monetized or quantified. The specific methodology developed for this application was developed using BCA principles consistent with the TIGER guidelines, and involved: ● Establishing existing and future conditions under the build and no-build scenarios ● Assessing benefits with respect to each of the four merit criteria identified in the TIGER BCA guidance ● Measuring benefits in dollar terms, whenever possible, and expressing benefits and costs in a common unit of measurement ● Using DOT guidance for the valuation of travel time savings, safety benefits and reductions in air emissions, while relying on industry best practice for the valuation of other effects ● Discounting future benefits and costs with the real discount rates recommended by the DOT (7 percent, and 3 percent for sensitivity analysis) ● Conducting a sensitivity analysis to assess the impacts of changes in key estimating assumptions The main beneficiaries of the San Joaquin Rail Access to Opportunity Project are riders using passenger and commuter rail services, the passenger and commuter rail providers, freight railroads businesses utilizing freight rail services, and jurisdictional roadway owners. These parties will see benefits through the: ● Reduction in traffic congestion through truck diversion ● Reduction in rail congestion ● Improved on time performance for passenger and commuter rail and respective riders ● Lowered pavement maintenance costs through truck diversion ● Greater environmental sustainability, as a result from reduced air pollutants Table C-1: Summary of Benefits

Outcome Benefits Outcome Benefits

Economic Competitiveness $15.7 M Total Benefits $27.9 M Quality of Life $5.1 M Benefit Cost Ratio 1.93 Environmental Sustainability $7.1 M Note: All cost estimates in this table are in 2015 dollars, using a 7 percent real discount rate.

Appendix D: Cost Estimate

Included as an attachment.

Appendix E: Engineering Design

Included as an attachment.