Implementation Of The Safe, Reliable High-speed Passenger Train Bond Act For The 21st Century - - CA Streets And Highways

Section § 2704.75

This law allows projects seeking funding from the High-Speed Passenger Train Bond Fund to apply for a 'letter of no prejudice' from the California Transportation Commission. This letter lets projects begin with the understanding they may be reimbursed later, if certain conditions are met.

Funds can be reimbursed if expenditures have started on approved projects, the costs are eligible under state and federal rules, legal requirements are followed, and sufficient funds are available. The commission may create guidelines for these letters, ensuring consistency with similar rules in other government codes.

The agreement on costs and timing of reimbursement depends on the specific terms made between the commission and project recipients, with no guarantees made on exact timing or amount of reimbursement.

(a) An eligible recipient for funds pursuant to Section 2704.095 may apply to the California Transportation Commission for a letter of no prejudice for a project or a component of a project to be undertaken with those funds. The commission may approve the letter of no prejudice for one or more projects or project components that the commission has programmed or otherwise approved for funding. The letter of no prejudice shall reference the project or component thereof and the amount of bond funding that is programmed or otherwise approved for that project or project component. The commission may approve a letter of no prejudice regardless of whether bond funding has been previously appropriated for purposes of the project or project component.

(b) Expenditures for the costs, up to the amount set forth in the letter of no prejudice, of a project or project component for which a letter of no prejudice has been issued shall be eligible for reimbursement from the High-Speed Passenger Train Bond Fund if all of the following apply:

(1) The project or project component for which the letter of no prejudice was requested has commenced and expenditures have been incurred by the eligible recipient.

(2) The expenditures made by the eligible recipient are eligible for reimbursement in accordance with state and federal laws and procedures and are permitted expenditures under Section 2704.095. If expenditures made are determined to be ineligible, then the state has no obligation to reimburse for those expenditures.

(3) The eligible recipient complies with all legal requirements for the project, including the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).

(4) The expenditures were incurred after the project or project component was programmed or otherwise approved for funding by the commission.

(5) There is in the High-Speed Passenger Train Bond Fund an appropriated amount sufficient to make the reimbursement payment. Nothing in this section requires the fund to be funded at any particular time or in any particular amount.

(c) The commission and an eligible recipient may enter into an agreement or agreements governing reimbursement as described in this section.

(d) The commission, in consultation with eligible recipients, may develop guidelines to implement this section. If the commission develops guidelines, the commission shall, to the extent practicable, use the guidelines developed for letters of no prejudice under Section 8879.501 of the Government Code.

(e) Nothing in this section modifies any requirement under Chapter 20 (commencing with Section 2704).

(f) For the purposes of this section, “letter of no prejudice” means an agreement between an eligible recipient and the commission that makes eligible for future reimbursement from bond proceeds the expenditure of funds under the control of the eligible recipient, subject to the availability of bond funds, as provided in this section. The timing and final amount of reimbursement are dependent on the terms of the agreement and the availability of bond funds. The final amount of reimbursement may be less than the amount stated in the letter of no prejudice.

letter of no prejudice California Transportation Commission High-Speed Passenger Train Bond Fund project funding reimbursement eligibility environmental compliance project expenditure bond funding funding agreement state and federal laws

(Added by Stats. 2010, Ch. 292, Sec. 1. (SB 1371) Effective September 24, 2010.)

Section § 2704.76

This section of the Budget Act of 2012 allocates $1.1 billion for high-speed rail projects. Specifically, $600 million is dedicated to the Metropolitan Transportation Commission project and $500 million to the Southern California project, as approved by the High-Speed Rail Authority in 2012.

Transfers of these funds for account management can occur, but they must remain temporary. Funds must not be used for other high-speed rail segments outside those specified by the memoranda of understanding. Additionally, allocations for the San Francisco to San Jose rail segment are to support a joint two-track system for high-speed trains and Caltrain, primarily within the existing Caltrain area. This section remains active as long as the appropriation is available.

(a)

(1) Of the one billion one hundred million dollars ($1,100,000,000) appropriated pursuant to Item 2665-104-6043 of Section 2.00 of the Budget Act of 2012, six hundred million dollars ($600,000,000) shall be allocated solely for purposes of the Metropolitan Transportation Commission Memorandum of Understanding, as approved by the High-Speed Rail Authority on April 12, 2012, in High-Speed Rail Authority Resolution 12-11, and five hundred million dollars ($500,000,000) shall be allocated for purposes of the Southern California Memorandum of Understanding, as approved by the High-Speed Rail Authority on April 12, 2012, in High-Speed Rail Authority Resolution 12-10.

(2) Transfers from Item 2665-104-6043 of Section 2.00 of the Budget Act of 2012 pursuant to Provision 2 of that item to Item 2665-004-6043 or Item 2665-306-6043 shall be limited to temporary transfers for account management purposes. Funds appropriated by Item 2665-104-6043 of Section 2.00 of the Budget Act of 2012 shall not otherwise be used in high-speed rail project segments other than the segments that are the subjects of the two memoranda of understanding referenced in paragraph (1).

(b) Funds appropriated pursuant to Items 2660-104-6043, 2660-304-6043, and 2665-104-6043 of Section 2.00 of the Budget Act of 2012, to the extent those funds are allocated to projects in the San Francisco to San Jose segment, shall be used solely to implement a rail system in that segment that primarily consists of a two-track blended system to be used jointly by high-speed rail trains and Peninsula Joint Powers Board commuter trains (Caltrain), with the system to be contained substantially within the existing Caltrain right-of-way.

(c) This section shall remain in effect as long as the appropriation in Item 2665-104-6043 of Section 2.00 of the Budget Act of 2012 remains available for encumbrance or liquidation, and shall be inoperative thereafter.

Metropolitan Transportation Commission Southern California Memorandum of Understanding High-Speed Rail Authority Budget Act of 2012 account management transfers San Francisco to San Jose segment two-track blended system Caltrain existing Caltrain right-of-way high-speed rail allocation temporary fund transfers project segment restrictions Memorandum of Understanding projects Resolution 12-11 Resolution 12-10

(Added by Stats. 2013, Ch. 216, Sec. 1. (SB 557) Effective January 1, 2014. Conditionally inoperative as prescribed by its own provisions.)

Section § 2704.77

If there's a plan to expand the train tracks between San Francisco and San Jose beyond what's currently planned, all nine parties involved in the Bay Area High-Speed Rail Early Investment Strategy must agree. This includes state and regional agencies, local transportation authorities, and city representatives from San Francisco and San Jose.

Any track expansion for the San Francisco to San Jose segment of the high-speed rail system beyond the blended system approach identified in the April 2012 California High-Speed Rail Program Revised 2012 Business Plan and approved by the High-Speed Rail Authority in April 2012 shall require approval from all nine parties to the Bay Area High-Speed Rail Early Investment Strategy Memorandum of Understanding, as follows:

(a) The High-Speed Rail Authority.

(b) The Metropolitan Transportation Commission.

(c) The Peninsula Corridor Joint Powers Board.

(d) The San Francisco County Transportation Authority.

(e) The San Mateo County Transportation Authority.

(f) The Santa Clara County Valley Transportation Authority.

(g) The City of San Jose.

(h) The City and County of San Francisco.

(i) The Transbay Joint Powers Authority.

San Francisco to San Jose high-speed rail expansion Bay Area High-Speed Rail Early Investment Strategy Blended system approach High-Speed Rail Authority Metropolitan Transportation Commission Peninsula Corridor Joint Powers Board San Francisco County Transportation Authority San Mateo County Transportation Authority Santa Clara County Valley Transportation Authority City of San Jose City and County of San Francisco Transbay Joint Powers Authority

(Added by Stats. 2013, Ch. 216, Sec. 2. (SB 557) Effective January 1, 2014.)

Section § 2704.78

This law outlines criteria for using bond money to determine if a section of a railway is ready for high-speed train operations. It states that the proceeds from these bonds should fund projects that allow high-speed trains to run either immediately or after further investments. These projects should also provide near-term benefits to train services.

Additionally, when reporting on these projects, the authority must show how the funds are spent in line with their business plan and how they contribute to the development of the initial phase of a blended high-speed rail system.

(a) For purposes of the funding plan required pursuant to subdivision (d) of Section 2704.08, a corridor or usable segment thereof is “suitable and ready for high-speed train operation” if the bond proceeds, as appropriated pursuant to Senate Bill 1029 of the 2011–12 Regular Session (Chapter 152 of the Statutes of 2012), are to be used for a capital cost for a project that would enable high-speed trains to operate immediately or after additional planned investments are made on the corridor or useable segment thereof and passenger train service providers will benefit from the project in the near-term.

(b) In each report prepared pursuant to Sections 185033 and 185033.5 of the Public Utilities Code, the authority shall include information describing the use of bond proceeds appropriated by Section 2.00 of the Budget Act of 2012, as added by Section 3 of Chapter 152 of the Statutes of 2012, demonstrating that the investments made are consistent with the authority’s current business plan and advance the development of the Phase I blended system as described in the business plan.

high-speed train operation bond proceeds capital cost Senate Bill 1029 project benefits passenger train service providers business plan consistency Phase I blended system rail corridor usable segment Public Utilities Code Sections 185033 project reporting Budget Act of 2012 project investment high-speed rail development

(Added by Stats. 2016, Ch. 744, Sec. 2. (AB 1889) Effective January 1, 2017.)

Section § 2704.79

This law states that no more than 5% of the money from certain bonds can be used for administrative costs. This limit is specifically for bonds mentioned in a related section, which allows some spending on running costs but keeps it from getting too high.

Pursuant to the authorization set forth in subdivision (h) of Section 2704.08, not more than 5 percent of the proceeds of bonds described in paragraph (1) of subdivision (b) of Section 2704.04 shall be used for administrative purposes.

bond proceeds administrative costs spending cap bonds usage financial limit proceeds restriction administrative spending fund allocation budget control bond section financial management spending percentage bond revenue funding regulation administrative budget

(Added by Stats. 2024, Ch. 53, Sec. 14. (AB 173) Effective July 2, 2024.)