Bill Text: CA SB445 | 2025-2026 | Regular Session | Amended
Bill Title: High-speed rail: third-party agreements, permits, and approvals: regulations.
Sponsorship: Partisan Bill (Democrat 3)
Status: (Engrossed) 2025-08-29 - August 29 hearing: Held in committee and under submission. [SB445 Detail]
Download: California-2025-SB445-Amended.html
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Amended
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Assembly
July 17, 2025 |
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Amended
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July 09, 2025 |
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June 30, 2025 |
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April 10, 2025 |
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Amended
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April 09, 2025 |
CALIFORNIA LEGISLATURE—
2025–2026 REGULAR SESSION
Senate Bill
No. 445
| Introduced by Senator Wiener (Coauthor: Senator Caballero) (Coauthor: Assembly Member Wilson) |
February 18, 2025 |
An act to add Section 187040 to, and to add and repeal Chapter 6 (commencing with Section 185520) of Division 19.5 of, the Public Utilities Code, relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
SB 445, as amended, Wiener.
High-speed rail: third-party permits agreements, permits, and approvals: regulations.
The California High-Speed Rail Act creates the High-Speed Rail Authority (authority) to develop and implement a high-speed rail system in the state, with specified powers and duties, including the power to enter into contracts, relocate highways and utilities, and enter into cooperative or joint development agreements with local governments or private entities, as specified. The act establishes legal procedures for the relocation of publicly and privately owned utility facilities, as defined, when the authority requires any utility to remove any utility facility lawfully maintained in the right-of-way of any high-speed rail property to a location entirely outside the high-speed rail property right-of-way subject to specified conditions. The act authorizes the authority and any
utility to enter into a specified agreement or contract to remove or relocate any utility facility that provides for, among other things, the respective amounts of the cost to be borne by each party or that apportions the obligations and costs of each party.
Existing law creates the High-Speed Rail Authority Office of the Inspector General (office) and authorizes the High-Speed Rail Authority Inspector General (inspector general) to initiate an audit or review regarding oversight related to delivery of the high-speed rail project undertaken by the authority and the selection and oversight of contractors related to that project. Existing law requires the inspector general to submit annual reports to the Legislature and Governor regarding its findings.
This bill would require the authority, on or before July 1, 2026, to develop and adopt
internal rules, as defined, setting forth standards and timelines for the authority to engage utilities to ensure coordination and cooperation in relocating utility infrastructure or otherwise resolving utility conflicts affecting the delivery of the high-speed rail project. The bill would require the authority to ensure that the internal rules, among other things, identify the circumstances under which the authority would be required seek to enter into a cooperative agreement with a utility that, where relevant, identifies who is responsible for specific utility relocations, as specified.
This bill would require the authority, on or before January
July 1, 2026, to develop and adopt regulations setting forth requirements governing third-party local agency permits and approvals that are necessary to deliver the high-speed rail project. The bill would require the authority to ensure that the regulations, among other things, identify the circumstances under which the authority would be required to seek to enter into a cooperative agreement with a third party, which the bill would define as a local agency or utility, that that, where relevant, identifies who is
responsible for specific utility relocations and the costs associated with those relocations. The actions, as specified.
This bill would require the authority to consult with specified entities in developing the internal rules and regulations and would require the authority to hold at least 2 public hearings regarding the proposed internal rules and regulations.
This bill would prohibit the authority from implementing these regulations unless it completes delay the operation of these internal rules and regulations until the office determines that the authority has completed the development and implementation of a process to review third-party agreements in a timely manner as recommended by the office, as specified. The bill would require the office, beginning one year after the operative date of the internal rules and regulations, to conduct a review of the effectiveness of those rules and regulations and to make recommendations for their improvement. The bill would require the office, when it determines that the high-speed rail
project is complete, to submit a report to the Legislature informing the Legislature of that fact. The bill would make the requirement to adopt these internal rules and regulations inoperative on the date that the office submits that report to the Legislature.
This bill would require the authority and specified utilities to identify existing barriers and agree to preferred solutions to those barriers by December 31, 2026, to ensure utility relocations do not result in unnecessary or foreseeable project delays, as specified.
This bill would declare its provisions to be severable.
To the extent this bill imposes additional duties on local entities, the bill would impose a
state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
This act shall be known, and may be cited, as the High-Speed Rail Delivery Reform Act.SEC. 2.
(a) The Legislature finds and declares all of the following:(a)
(1) Utility relocation can become one of the greatest risk factors to
greatly impact the scope, schedule, and cost of transit and rail projects.
(b)
(2) The Federal Highway Administration finds that by addressing issues related to utility relocation proactively, construction projects can minimize the negative impacts on schedules, costs, and overall success.
(c)
(3) The California high-speed rail project is important to state transportation priorities and the public good and it is critical that local government entities and state-regulated utility owners within the project’s alignment make the timely completion of the project a high priority.
(d)
(4) Third-party permits and approvals for preconstruction and construction activities, including utility relocations, design review,
review and issuance of encroachment or other similar permits,
and third-party agreements for utility relocations,
have been a source of delay for the California high-speed rail project contributing to cost escalations and the project being built late and over budget.
(5) The High-Speed Rail Authority Office of the Inspector General, in Recommendation 25-R-02-02, proposed the High-Speed Rail Authority should complete the development and implementation of a process to review third-party agreements in a timely manner.
(b) It is the intent of the Legislature to establish a dispute resolution process applicable to utilities that appropriately balances the need to deliver the high-speed rail project on time and efficiently, with the need to provide utility service
that prioritizes safety, reliability, and access.
SEC. 3.
Chapter 6 (commencing with Section 185520) is added to Division 19.5 of the Public Utilities Code, to read:
CHAPTER
6. Regulations Rules Governing Third-Party Permits and Approvals Engagement
185520.
For purposes of this chapter, the following definitions apply:(a) “Electrical corporation” has the same meaning as defined in Section 218.
(b) “Gas corporation” has the same meaning as defined in Section 222.
(c) “High-speed rail project” means the portion of the high-speed rail project identified in paragraph (2) of subdivision (b) of Section 2704.04 of the Streets and Highways Code.
(d) “Internal rule” means a regulation adopted
by the authority that applies generally to the conduct of the business and affairs of the authority.
(e) “Local agency” means a city, county, city and county, or special district that is not a utility.
(f) “Local publicly owned electric utility” has the same meaning as defined in Section 224.3.
(g) “Private telecommunications provider” means a telephone corporation, as defined in Section 234, or a cable operator that is a holder of a state franchise, as defined in Section 5830.
(d)“Third party” means a local agency or utility, including,
(h) “Utility” includes, but is not limited to, an electrical corporation, gas corporation, local publicly owned electric utility, or private telecommunications provider.
185522.
On or before(a) Require early engagement between third parties and the authority.
with utilities.
(b) Identify the circumstances under which the authority shall seek to enter into a cooperative agreement with each applicable third party utility that serves as the framework for all future project interactions between and among the authority and each applicable third party utility and, where relevant, identifies who is responsible for specific utility relocations and the costs associated with thoserelocations. A cooperative agreement shall define the roles and responsibilities of the authority and each applicable third party and clarify lines of communication so the decisionmaking process is understood.
relocations.
(c) Require regular meetings with third parties utilities during the planning, design, and construction phases.
(d) Require the authority to establish cost estimates in coordination with each applicable utility with conservative contingency budgets for each utility relocation and to not oversimplify the utility costs and potential risks by bundling those costs into a single item. These cost estimates shall
be established consistent with Chapter 5 (commencing with Section 185500).
(e) Require regular communication and with utilities, including by providing to utilities documentation of contracting terms, conditions, and decisions during construction.
(f)Define options that can govern
a third-party review process for permits and approvals.
(f) Provide options for utility review processes in order to prioritize the timely completion of the high-speed rail project.
(g) Consider ways to reduce permitting and approval delays. process delays or redundancy.
(h) Establish Provide options
for establishing a binding dispute resolution process. process, including recommendations, provided in coordination with utilities, of independent administrators and neutral mediators to the resolution process.
(i)Exempt gas corporations and electrical corporations regulated by the Public Utilities Commission from the dispute resolution process established pursuant to subdivision (h).
(j)Prohibit third-party entities from insisting on exactions or betterments from the authority that are unrelated to ensuring that health and safety standards are met, unless otherwise stipulated by a cooperative agreement, as a condition for permits and approvals.
(k)Consider reimbursement of third-party staff time and third-party time and materials to relocate the utility.
(l)Define the terms “betterment” and “cooperative agreement” for purposes of the regulation.
(i) Identify, in coordination with the Public Utilities Commission, existing processes within the Public Utilities Commission that may provide a similar process and outcome for disputes with utilities regulated by the Public Utilities Commission instead of the process options provided pursuant to subdivision (h).
185524.
On or before July 1, 2026, the authority shall develop and adopt regulations setting forth requirements governing local agency permits and approvals that are necessary to deliver the high-speed rail project. The authority shall ensure that the regulations do all of the following:(a) Require early engagement between local agencies and the authority.
(b) Identify the circumstances under which the authority shall seek to enter into a cooperative agreement with each applicable local agency that serves as the framework for all future project interactions between and among the authority and each applicable local agency and, where relevant, identifies who is responsible for specific actions. A
cooperative agreement shall define the roles and responsibilities of the authority and each applicable local agency and clarify lines of communication so the decisionmaking process is understood.
(c) Require regular meetings with local agencies during the planning, design, and construction phases.
(d) Require regular communication and documentation of contracting terms, conditions, and decisions during construction.
(e) Define options that can govern a local agency process for permits and approvals.
(f) Consider ways to reduce permitting and approval delays or redundancy.
(g) Establish a binding dispute resolution process.
(h) Prohibit local agencies from requesting exactions or betterments from the authority that are unrelated to ensuring that health, and safety standards are met.
(i) Define the terms “betterment” and “cooperative agreement” for purposes of the regulation described in subdivision (h).
185524.185526.
(a) In developing the(1) The Department of Transportation.
department.
(2) The Public Utilities Commission.
(3) Local government stakeholders. agencies.
(4) Local publicly owned electric utilities, gas corporations, and electrical corporations.
(5) Water districts.
(6)Telecommunications companies.
(7)Passenger and freight railroads.
(6) Private telecommunications providers.
(8)
(7) Any other relevant entity identified by the authority that has expertise in transportation infrastructure project delivery. delivery or utility infrastructure relocation.
(b) Before adopting the
internal rules and regulations required pursuant to Section 185522, Sections 185522 and 185524, the authority shall hold at least two public hearings regarding the proposed internal rules and regulations.
185526.185528.
(a) The authority shall post a public notice on its internet website when it adopts the internal rules and regulations required pursuant to(b)The authority shall not implement regulations
adopted pursuant to this chapter unless it completes the development and implementation of a process to review third-party agreements in a timely manner as recommended by the High-Speed Rail Authority Office of the Inspector General in Recommendation 25-R-02-02.
(b) The internal rules and regulations adopted pursuant to this chapter shall not be operative until the High-Speed Rail Authority Office of the Inspector General determines that the authority has completed the development and implementation of a process to review third-party agreements in a timely manner as recommended by the High-Speed Rail Authority Office of the Inspector General in Recommendation 25-R-02-02.
(c) Beginning one year from the operative date of
the internal rules and regulations described in subdivision (b), the High-Speed Rail Authority Office of the Inspector General shall evaluate the extent to which the authority is meeting its review deadlines and other applicable requirements in its adopted internal rules and regulations, and shall determine the extent to which the internal rules and regulations have been effective in limiting delays associated with third-party agreements. As part of this review, the High-Speed Rail Authority Office of the Inspector General shall gather and summarize the perspective of third parties on the effectiveness and impact of the internal rules and regulations and shall make recommendations for their improvement if necessary. The High-Speed Rail Authority Office of the Inspector General may post the results of the review conducted, and the recommendations made, pursuant to this subdivision on its internet website.
185530.
(a) The authority and the utilities identified pursuant to Section 185526 shall identify existing barriers and agree to preferred solutions to those barriers by December 31, 2026, to ensure utility relocations do not result in unnecessary or foreseeable project delays.(b) Preferred solutions shall include, but are not limited to, all of the following:
(1) Selecting specific outcomes from the options provided by the authority in subdivisions (f), (h), and (i) of Section 185522.
(2) Agreeing to preferred timelines for third-party design review or review of requests that vary based on the typical scope of work for
each activity to which the timeline applies.
(3) Defining “betterment,” and ensuring requirements or conditions placed upon the authority unrelated to health, reliability, and safety standards are prohibited.
(4) Defining “cooperative agreement” and the terms of specified cooperative agreements. A cooperative agreement shall identify the roles and responsibilities of the authority and each applicable third party and clarify lines of communication so the decisionmaking process is understood.
185528.185532.
This chapter shall become inoperative on the date that the High-Speed Rail Authority Office of the Inspector General submits a report pursuant to Section 187040, and, as of January 1 of the following year, is repealed.SEC. 4.
Section 187040 is added to the Public Utilities Code, to read:187040.
(a) For purposes of determining the continued operation of Chapter 6 (commencing with Section 185520) of Division 19.5, when the office determines that the high-speed rail project, as defined in Section 185520, is complete, the office shall submit a report to the Legislature informing the Legislature of that fact.(b) The report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.
