BILL NUMBER: SB 965 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 31, 2010
PASSED THE ASSEMBLY AUGUST 26, 2010
AMENDED IN ASSEMBLY AUGUST 20, 2010
AMENDED IN ASSEMBLY JUNE 21, 2010
AMENDED IN SENATE APRIL 7, 2010
INTRODUCED BY Senator DeSaulnier
(Principal coauthor: Assembly Member Galgiani)
(Coauthors: Senators Correa, Ducheny, Leno, Lowenthal, and
Oropeza)
FEBRUARY 5, 2010
An act to add Section 185036.5 to the Public Utilities Code,
relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
SB 965, DeSaulnier. High-speed rail.
Existing law, the California High-Speed Train Act, creates the
High-Speed Rail Authority to develop and implement a high-speed train
system in the state, with specified powers and duties. Existing law,
the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st
Century, approved by the voters as Proposition 1A at the November 4,
2008, general election, provides for the issuance of $9.95 billion in
general obligation bonds for high-speed rail and related purposes.
This bill, subject to appropriation by the Legislature, would
require the authority to expend federal funds made available by the
federal American Recovery and Reinvestment Act of 2009 (ARRA) for
specified high-speed rail purposes. The bill would require the
authority to take various actions in that regard. The bill would also
require the authority to submit to the Legislature and the
Legislative Analyst an expenditure plan for the federal funds within
60 days of finalization of a cooperative agreement with the federal
government. The bill would make legislative findings and declarations
relative to federal funds to be made available to the state by ARRA
for high-speed rail purposes. The bill would exempt the Transbay
Transit Center project in San Francisco from these provisions.
This bill would provide that it shall become operative only if
A.B. 289 is also enacted.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) With the enactment of the federal American Recovery and
Reinvestment Act (Public Law 111-5, ARRA) on February 17, 2009, the
federal government made available a grant program in which states may
apply for $8 billion in federal funds for the development of
high-speed rail throughout the nation.
(b) On October 2, 2009, the California High Speed Rail Authority
(HSRA) submitted to the Federal Railroad Administration (FRA) an
application for $4.73 billion in federal funds to further the
development of high-speed rail in California.
(c) The HSRA's application for funds proposes to expend federal
ARRA grants awarded to the authority to make improvements to four
distinct rail corridors in California, which include:
(1) San Francisco to San Jose.
(2) Merced to Fresno.
(3) Fresno to Bakersfield.
(4) Los Angeles to Anaheim.
(d) On January 28, 2010, the United States Department of
Transportation announced an intention to make future grant awards to
the HSRA in the amount of $2.25 billion to advance the development of
a high-speed rail system in this state.
(e) The HSRA has estimated that it intends to match the awarded
federal funds with state bond funds made available with the passage
of Proposition 1A in November 2008, the Safe, Reliable High-Speed
Passenger Train Bond Act for the 21st Century (Chapter 20 (commencing
with Section 2704) of Division 3 of the Streets and Highways Code).
The total investment to improve the identified rail corridors could
be as much as $4.5 billion in combined federal and state funds.
(f) The HSRA estimates that 60,277 jobs will be created or
maintained by the investment of these funds in the dozens of
construction projects along the eligible corridors throughout
California.
(g) It is necessary to provide the HSRA with unambiguous statutory
authority to expend, upon appropriation, federal ARRA funds for the
purposes described in its application of October 2, 2009.
(h) Moreover, it is in the state's interest to obligate and expend
awarded funds as expeditiously as possible and in a manner
consistent with the voters' expectation when they passed the Safe,
Reliable High-Speed Passenger Train Bond Act for the 21st Century in
order to expand job creation and to complete vital infrastructure
improvements as soon as possible.
SEC. 2. Section 185036.5 is added to the Public Utilities Code, to
read:
185036.5. (a) The authority shall expend federal funds made
available through the American Recovery and Reinvestment Act of 2009
(Public Law 111-5, ARRA), upon appropriation of the Legislature, as
follows:
(1) For the purpose of conducting environmental studies, planning,
and preliminary engineering activities. If matching funds are
required, proceeds of the Safe, Reliable, High-Speed Passenger Train
Bond Act for the 21st Century (Chapter 20 (commencing with Section
2704) of Division 3 of the Streets and Highways Code) shall be used
for this purpose, consistent with the provisions of subdivision (b)
of Section 2704.08 of the Streets and Highways Code and subject to
the conditions in subdivision (g) of Section 2704.08 of that code.
(2) For the purpose of capital expenditures, as defined in
subdivision (c) of Section 2704.04 of the Streets and Highways Code.
If matching funds are required, proceeds of the Safe, Reliable,
High-Speed Passenger Train Bond Act for the 21st Century (Chapter 20
(commencing with Section 2704) of Division 3 of the Streets and
Highways Code) shall be used for this purpose, subject to the
provisions of subdivision (d) of Section 2704.04 of the Streets and
Highways Code.
(b) The authority shall take those actions necessary to ensure any
federal funds appropriated to it are obligated and expended in a
manner that (1) meets all applicable federal deadlines for obligating
and expending the funds, (2) maximizes job creation in California at
the earliest feasible time, (3) expedites the completion of vital
high-speed rail infrastructure projects that improve rail-highway
safety, mobility, and performance, (4) makes the most efficient use
of available state bond funds, including replacing bond funds for
project expenditure with available federal funds where feasible, and
(5) is consistent with current state law.
(c) With respect to the award of federal funds for the development
of the high-speed rail network in California, the authority shall,
within 60 days of finalization of a cooperative agreement with the
federal government for the use of ARRA funds awarded to the
authority, submit to the Legislative Analyst's Office, and to the
legislative fiscal committees and policy committees having
jurisdiction over transportation matters, an adopted plan for the
expenditure of those funds. The plan shall include all of the
following:
(1) A description of the projects proposed for funding, including
a discussion of each project's independent utility.
(2) The location of each project.
(3) The baseline budget for each project, including the project
support cost and the estimated project capital cost.
(4) The amount of federal and state funds, including state bond
funds, as well as any private funds, proposed to be committed to each
project.
(5) The proposed baseline schedule, with project milestones, and
the completion date of each project.
(6) The number of jobs each project is estimated to create or
maintain in California.
(d) The Federal Railroad Administration has reserved ARRA funds
for design and construction of the Transbay Transit Center. That
project shall not be subject to the provisions of this section.
SEC. 3. This act shall become operative only if Assembly Bill 289
of the 2009-10 Regular Session is also enacted.