Caltrain electrification project back on track with federal funding

In a decision that thrilled Bay Area politicians and tech industry leaders as much as Caltrain commuters, federal transportation officials agreed Monday to approve a $647 million grant to modernize and electrify the 154-year-old commuter railroad that links San Francisco and San Jose.

The announcement that the Federal Transit Administration will sign the federal grant agreement ends a battle between California’s Republican congressional delegation, which persuaded the Trump administration to put the grant on hold, and a coalition of the Bay Area’s elected representatives, Silicon Valley executives, transportation officials and commuters that said the Caltrain project was crucial to the Bay Area, state and federal economies.

Carl Guardino, CEO of the Silicon Valley Leadership Group, said the grant enables Caltrain to move forward with its plan to convert its diesel commuter line to a modern electric railroad that can run faster and more frequent trains, carrying more passengers.

“This project is more than shovel ready,” Guardino said. “These shovels have been in people’s hands since March 1. Now we can get those shovels into the ground.”

Transportation Secretary-designate Elaine Chao testifies on Capitol Hill in Washington, Wednesday, Jan. 11, 2017, at her confirmation hearing before the Senate Commerce, Science, and Transportation Committee. A spokeswoman for the agency said Transportation Secretary Elaine Chao will sign a previously arranged grant agreement that will give Caltrain the federal money over the next five years. less Transportation Secretary-designate Elaine Chao testifies on Capitol Hill in Washington, Wednesday, Jan. 11, 2017, at her confirmation hearing before the Senate Commerce, Science, and Transportation Committee. A ... more Photo: Zach Gibson, FRE Photo: Zach Gibson, FRE Image 1 of / 14 Caption Close Caltrain electrification project back on track with federal funding 1 / 14 Back to Gallery

Caltrain officials say they are ready to start construction within 60 days. Commuters should be riding electric trains on the Peninsula by 2021, said Jeff Gee, chairman of the Caltrain Board of Directors.

For the past three months, the modernization project — which had been discussed and carefully planned for at least three decades — was in limbo.

The $1.98 billion project is mainly funded with state, regional and local money that has been collected since 1996, and includes some voter-approved high-speed rail bond money. But the $647 million grant was considered an essential piece that Caltrain had been all but assured it would be awarded by early this year.

The Federal Transit Administration had recommended the grant for approval, and last fall, Caltrain awarded contracts to build the electrical infrastructure and to build and deliver new electric commuter trains.

Construction was to begin in March, but the Trump administration abruptly postponed the grant’s approval on Feb. 17 pending development of the president’s budget plan. The delay came after Central Valley Republicans, led by House Majority Leader Kevin McCarthy of Bakersfield, lobbied to prevent the funding because it could allow the Caltrain tracks to eventually be used by the state’s high-speed rail system, which they oppose.

Supporters of the electrification plan answered with a high-powered campaign of their own to get the decision reversed. Led by Sen. Dianne Feinstein, D-Calif., the Bay Area’s Washington delegation pressed Transportation Secretary Elaine Chao to approve the funding. So did Bay Area technology and business leaders, who signed letters and visited Washington to lobby for the project. Commuters also joined the fight, signing petitions and flooding congressional offices with phone calls and emails.

Their message emphasized the importance of Caltrain to the Bay Area and the tech economy and the 9,600 jobs the project would create in other parts of the country. Those areas include Republican-dominated states Texas, Utah and Florida — where equipment will be manufactured.

Despite their efforts, it was unclear whether they were making headway.

In May, the Trump administration agreed to allocate $100 million to the project but made no commitment to approving the full grant.

As recently as last week, Chao tangled with Sen. Kamala Harris, D-Calif., at a committee meeting, and said the state already gets more than its share of federal funding. Harris said Monday she thought their exchange helped persuade transportation officials to approve the grant.

Feinstein praised the decision to fund the project, saying it was the kind of infrastructure project the nation, not just Silicon Valley, needs.

“Caltrain’s project is now ready to put 10,000 people to work across the country and bring to fruition a badly needed transportation improvement that enjoys nearly unanimous support throughout the Bay Area,” she said. “This is a win for everyone involved.”

McCarthy did not respond to requests for comment, but Rep. Jeff Denham, a Turlock Republican who helped him lead the fight against Caltrain funding, criticized Monday’s action.

“This is yet another bait and switch to defeat state taxpayers and take imaginary dollars from one project to pay for another, putting at risk California’s transportation future,” he said. “Caltrain is not, nor will it ever be, high speed and should not be funded with high-speed rail dollars.”

Michael Cabanatuan is a San Francisco Chronicle staff writer. Email: mcabanatuan@sfchronicle.com Twitter: @ctuan