The Peninsula Corridor Joint Powers Board was formed in 1987 to manage the line. Subsequently, San Mateo and Santa Clara Counties commissioned Earth Metrics, Inc., to prepare an Environmental Impact Report on right-of-way acquisition and expansion of operations. With state and local funding, the PCJPB bought the railroad right of way between San Francisco and San Jose from SP in 1991. As SamTrans advanced most of the local fund used to purchased the right-of-way, it was also agreed that SamTrans would serve as the managing agency until San Francisco and Santa Clara Counties could repaid their portions. The following year, PCJPB took responsibility for CalTrain operations and selected Amtrak California as the contract operator. PCJPB extended the CalTrain service from San Jose to Gilroy, connecting to VTA Light Rail at Tamien station in San Jose.