of tickets for resale at a loss, subsidizing commuters reliant on the Peninsula Commute until 1980; more importantly, the bill also authorized Caltrans to begin negotiating with SP to operate the passenger rail service and acquire the right-of-way between San Bruno and Daly City.

To preserve the commuter service, in 1980 Caltrans contracted with SP and began to subsidize the Peninsula Commute. Caltrans purchased new locomotives and rolling stock, replacing SP equipment in 1985. Caltrans also upgraded