BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 965|
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THIRD READING
Bill No: SB 965
Author: DeSaulnier (D), et al
Amended: 4/7/10
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 8-0, 4/13/10
AYES: Lowenthal, Huff, Ashburn, DeSaulnier, Kehoe,
Oropeza, Pavley, Simitian
NO VOTE RECORDED: Harman
SENATE APPROPRIATIONS COMMITTEE : 8-1, 4/26/10
AYES: Kehoe, Alquist, Corbett, Denham, Leno, Price, Wolk,
Yee
NOES: Cox
NO VOTE RECORDED: Walters, Wyland
SUBJECT : High-speed rail
SOURCE : Author
DIGEST : This bill encourages the timely development of
high-speed rail to enhance job creation and establishes
reporting requirements.
ANALYSIS : Proposition 1A, the Safe, Reliable High-Speed
Passenger Train Bond Act for the 21st Century of 2008
(Proposition 1A), identifies the Phase I corridor for
high-speed rail as an alignment from the San Francisco
Transbay Terminal to the Los Angeles Union Station and
Anaheim via the San Joaquin Valley. In January 2010, the
CONTINUED
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High-Speed Rail Authority (HSRA) received an American
Recovery and Reinvestment Act (ARRA) grant of $2.25 billion
to aid in the development of the Phase I project. Of that
amount, $400 million is for constructing the basement of
the new Transbay Terminal in San Francisco to accommodate
high-speed trains. According to the Federal Railroad
Administration (FRA) announcement of its ARRA award, the
remaining $1.85 billion is for purchasing right-of-way,
constructing track, signaling systems, and stations, and
completing environmental reviews and engineering documents
for the Los Angeles/ Anaheim segment, the San Francisco/San
Jose segment, the Fresno/ Bakersfield segment, and the
Merced/Fresno segment.
Existing law relating to high-speed rail:
1. Creates the HSRA with a nine-member governing board,
including five members appointed by the governor, two
members appointed by the Senate Rules Committee, and two
members appointed by the Speaker of the Assembly.
2. Authorizes the HSRA to develop a high-speed rail system
extending from San Diego to Sacramento with Phase I
being between Anaheim-Los Angeles Union
Station-Bakersfield-Fresno-San Jose-San Francisco
Transbay Terminal.
3. Provides up to $9 billion in Proposition 1A bond funds
for the development of the high-speed rail system, but
limits the expenditure of bond revenues for the
construction of the high-speed rail system to not more
than 50 percent of the cost of building the system and
not more than ten percent of bond proceeds to
environmental studies, planning, and preliminary
engineering.
4. Creates an independent peer review committee for the
purpose of reviewing the planning, engineering, and
financing and issuing an analysis of the viability of
the HSRA's financing plan, including the funding for
each corridor.
5. Requires that 90 days prior to submitting to the
governor a request for an appropriation of bond proceeds
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for capital expenditures, the HSRA shall convene the
peer review committee to review the detailed funding
plan for the proposed project.
6. Defines capital costs as the costs associated with the
acquisition of right-of-way and real property,
construction of tracks, structures, power systems, and
stations, acquisition of rolling stock, and the
mitigation of direct and indirect environmental impacts
7. Prohibits state, local, or federal operating subsidies
for the high-speed rail service.
8. Authorizes the HSRA to enter into contracts with private
or public entities for the design, construction, and
operation of high-speed trains.
This bill:
1. Makes findings and declarations regarding the importance
of high-speed rail as a transportation facility to
California and as a potential source of jobs to the
state.
2. Authorizes the HSRA to expend ARRA funds, upon
appropriation by the Legislature, for conducting
environmental studies, planning analyses, and
preliminary engineering activities.
3. Authorizes the HSRA to use ARRA funds for capital
expenditures, if matched by Proposition 1A bond funds,
consistent with the requirements for a peer review and
appropriation by the Legislature.
4. Requires the HSRA to take actions that ensure federal
funds are obligated and expended in a manner that meets
all federal guidelines, maximizes job creation in the
state, expedites projects that improve rail-highway
safety, mobility, and performance, and makes the most
efficient use of Proposition 1A bond funds, including
replacing bond funds for project expenditures with
federal funds where feasible.
5. Requires the HSRA, within 60 days of the enactment of
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this bill or finalizing a cooperative agreement with FRA
for the use of ARRA funds, which ever occurs later, to
submit to the Legislative Analyst's Office (LAO) and the
fiscal committees and the policy committees of the
Legislature having jurisdiction over transportation
issues an adopted expenditure plan. The expenditure
plan shall include:
A. A description of the projects proposed for
funding, including a discussion of the projects'
independent utility, the projects' location, the
amount of federal, state, and private funds proposed
to be committed to each project.
B. A project schedule with milestones and project
completion dates for each project.
C. An estimate of the number of jobs the projects
create in the state.
6. Requires the HSRA on December 31 following the
preparation of the plan, and annually thereafter to
submit to the LAO and the fiscal committees and the
policy committees of the Legislature having jurisdiction
over transportation issues an adopted progress report on
the status, budget and expenditures for each project.
7. Exempts the Transbay Terminal Joint Powers Agency from
the requirements of this bill if the ARRA funds for that
project flow through the HSRA.
Comments
Facilitating transfer of ARRA funds to the Transbay
Terminal . The Transbay Terminal is a regional intermodal
transfer facility that includes office towers and housing
on a 42-acre site in downtown San Francisco. Proposition
1A stipulates that the terminal is the Northern California
terminus for Phase I of the high-speed rail service. The
Transbay Terminal Joint Powers Agency, the governing agency
for the Transbay Terminal project, submitted an application
for ARRA funding and was awarded $400 million, which FRA
included in its $2.25 billion award to the HSRA. The
United States Department of Transportation is endeavoring
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to find a means of transferring the grant directly to the
Transbay Terminal project, bypassing the HSRA and the
state. In the event, the FRA is unable to bypass the state
and the HSRA is used as a conduit for transferring the
funds to Transbay, this bill then exempts from its
provisions any funds so awarded to Transbay.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
HSRA expenditure plan likely in the range of
$100-$150 Bond*/
Federal**
HSRA annual report minor, ongoing costs to
report project Bond*/
level progress data
Federal**
* High Speed Passenger Train Bond Fund
** ARRA funds
SUPPORT : (Verified 4/26/10)
California Council of Laborers
State Building and Construction Trades Council
Transbay Joint Powers Authority
JJA:mw 4/27/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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