Bill Text: CA SB965 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: High-speed rail.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Vetoed) 2010-09-30 - In Senate. To unfinished business. (Veto) [SB965 Detail]

Download: California-2009-SB965-Amended.html

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BILL NUMBER: SB 965	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 21, 2010
	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.


	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   require  the authority to
expend federal funds made available by the federal American Recovery
and Reinvestment Act  of 2009  (ARRA) for  spe 
 cified  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 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 on
the following December 31 and annually thereafter . The bill
would make legislative findings and declarations relative to
 the award of  federal funds to  be made
available to  the state by ARRA for high-speed rail purposes.
The bill would exempt the Transbay  Terminal  
Transit Center  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: 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   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  may   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 enactment of the act adding this section, 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, 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 includeall 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 an adopted progress report to the legislative fiscal
committees and the policy committees having jurisdiction over
transportation 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.  
   (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.