BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 965
                                                                  Page  1

          Date of Hearing:   August 4, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                  SB 965 (DeSaulnier) - As Amended:  June 21, 2010 

          Policy Committee:                               
          TransportationVote:14-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill enacts guidelines for the High-Speed Rail Authority  
          (HSRA) to apply in spending federal funds made available to the  
          authority through the American Recovery and Reinvestment Act  
          (ARRA). Specifically, this bill:

          1)Requires the HSRA to spend ARRA funds, upon appropriation by  
            the Legislature, for conducting environmental studies,  
            planning, preliminary engineering activities, and capital  
            expenditures.

          2)States that state high-speed rail bonds shall be used if  
            matching funds are required with the ARRA funds.

          3)Requires the HSRA to take necessary actions to ensure the ARRA  
            funds are obligated and expended in a manner meeting specified  
            criteria, including meeting all applicable federal deadlines.

          4)Requires the authority, within the later of 60 days following  
            enactment of this bill or finalization of a cooperative  
            agreement with the federal government, to submit to the  
            Legislative Analyst's Office and relevant legislative policy  
            and fiscal committees an adopted expenditure plan for ARRA  
            funds, as specified.

          5)Exempts design and construction of the ARRA-funded Transbay  
            Terminal Center from any of the above provisions.

           FISCAL EFFECT  

          One-time bond-funded costs of up to $100,000 for the expenditure  








                                                                  SB 965
                                                                  Page  2

          plan.

           COMMENTS  

           Purpose  . 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  
          HSRA received an 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 various project segments. This  
          bill clarifies and establishes the authority's ability to spend  
          the ARRA funds.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081