BILL NUMBER: SB 965 INTRODUCED
BILL TEXT
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 introduced, 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 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. 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 days of enactment of this act and to submit a
progress report on expenditure of the funds to the Legislature
within 180 days of the award of those funds 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) for high-speed rail purposes.
Vote: majority. Appropriation: yes. 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
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.
(b) The authority shall take those actions necessary to ensure any
federal funds awarded to it are obligated and expended in a manner
that (1) meets all applicable federal deadlines for funding
obligation and expenditure, (2) maximizes job creation in California
at the earliest feasible time, (3) expedites the completion of vital
infrastructure projects that improve rail 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 days of enactment of the act adding this section, submit to
the Legislature a 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
annually thereafter, the authority shall submit a 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).