BILL NUMBER: SB 965 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 7, 2010
INTRODUCED BY Senator DeSaulnier
(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 , and making an appropriation
therefor .
LEGISLATIVE COUNSEL'S DIGEST
SB 965, as amended, 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 authorize the authority to receive and
expend any federal funds awarded to the
authority for the purposes of developing a project or projects along
the high-speed rail network, thereby making an appropriation
made available by the federal American Recovery and
Reinvestment Act (ARRA) for 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 an expenditure plan for the federal funds within
30 60 days of enactment of this act or
upon finalization of a cooperative agreement with the federal
government, whichever occurs later, and to submit a progress
report on expenditure of the funds to the Legislature within
180 days of the award of those funds on the following
December 31 and annually thereafter. The bill would make
legislative findings and declarations relative to the award of
federal funds to the state under the federal American
Recovery and Reinvestment Act (ARRA) by ARRA for
high-speed rail purposes. The bill would exempt the Transbay
Terminal project in San Francisco from these provisions if ARRA funds
are made available to the Transbay Joint Powers Authority
for that project.
Vote: majority. Appropriation: yes no
. Fiscal committee: yes. State-mandated local program: no.
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 awarded the HSRA $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 receive and expend federal funds awarded to
the HSRA 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 may receive and expend any
federal funds awarded to it for the purposes of developing a project
or projects along the high-speed rail network. 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 awarded appropriated to
it are obligated and expended in a manner that (1) meets all
applicable federal deadlines for funding obligation and
expenditure 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
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 30 60 days of enactment of the
act adding this section, submit to the Legislature a
or upon finalization of a cooperative agreement with
the federal government for the use of ARRA funds awarded
to the authority, whichever occurs later, submit to the Legislative
Analyst's Office, an d 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 an itemization of the
projects proposed for funding, the location of those projects, the
amount of federal and state funds, including state bond funds,
proposed to be committed to each project, the proposed completion
date of each project, and the number of jobs each project is
estimated to create or maintain in California.
(d) Within 180 days
of receiving an award of federal funds for the development of the
high-speed rail network in California, and 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) On December 31 following the
preparation of the plan required by subdivision (c), and
annually thereafter, the authority shall submit a
an adopted progress report to the legislative fiscal
committees and the policy committees having jurisdiction over
transportation matters describing the progress it is making
in obligating and expending available federal funds and in completing
the projects identified for funding pursuant to the plan described
in subdivision (c). matters. Drawing on the plan
prepared in accordance with subdivision (c), the progress report
shall include all of the following:
(1) The status of the baseline budget, by contract, for capital
and support costs.
(2) Expenditures to date, by contract, for capital and support
costs and an estimate of expenditures and work to be completed in the
following 12 months.
(3) A baseline schedule by project, including project milestones,
and the status of the schedule.
(4) A detailed explanation for any deviation from the baseline
budget and the baseline schedule, including an explanation of any
change to the scope of the projects, any issues with regulatory
agencies, and other conditions affecting the project delivery.
(e) If ARRA funds are made available to the Transbay Joint Powers
Authority from the grant awarded to the authority for purposes of
constructing the Transbay Terminal, that project shall not be subject
to the provisions of this section.