State Codes and Statutes

Statutes > California > Shc > 2704.04-2704.095

STREETS AND HIGHWAYS CODE
SECTION 2704.04-2704.095



2704.04.  (a) It is the intent of the Legislature by enacting this
chapter and of the people of California by approving the bond measure
pursuant to this chapter to initiate the construction of a
high-speed train system that connects the San Francisco Transbay
Terminal to Los Angeles Union Station and Anaheim, and links the
state's major population centers, including Sacramento, the San
Francisco Bay Area, the Central Valley, Los Angeles, the Inland
Empire, Orange County, and San Diego consistent with the authority's
certified environmental impact reports of November 2005 and July 9,
2008.
   (b) (1) Net proceeds received from the sale of nine billion
dollars ($9,000,000,000) principal amount of bonds authorized
pursuant to this chapter, upon appropriation by the Legislature in
the annual Budget Act, shall be used for (A) planning and engineering
for the high-speed train system and (B) capital costs, as described
in subdivision (c).
   (2) As adopted by the authority in May 2007, Phase 1 of the
high-speed train project is the corridor of the high-speed train
system between San Francisco Transbay Terminal and Los Angeles Union
Station and Anaheim.
   (3) Upon a finding by the authority that expenditure of bond
proceeds for capital costs in corridors other than the corridor
described in paragraph (2) would advance the construction of the
system, would be consistent with the criteria described in
subdivision (f) of Section 2704.08, and would not have an adverse
impact on the construction of Phase 1 of the high-speed train
project, the authority may request funding for capital costs, and the
Legislature may appropriate funds described in paragraph (1) in the
annual Budget Act, to be expended for any of the following high-speed
train corridors:
   (A) Sacramento to Stockton to Fresno.
   (B) San Francisco Transbay Terminal to San Jose to Fresno.
   (C) Oakland to San Jose.
   (D) Fresno to Bakersfield to Palmdale to Los Angeles Union
Station.
   (E) Los Angeles Union Station to Riverside to San Diego.
   (F) Los Angeles Union Station to Anaheim to Irvine.
   (G) Merced to Stockton to Oakland and San Francisco via the
Altamont Corridor.
   (4) Nothing in this section shall prejudice the authority's
determination and selection of the alignment from the Central Valley
to the San Francisco Bay Area and its certification of the
environmental impact report.
   (5) Revenues of the authority, generated by operations of the
high-speed train system above and beyond operating and maintenance
costs and financing obligations, including, but not limited to,
support of revenue bonds, as determined by the authority, shall be
used for construction, expansion, improvement, replacement, and
rehabilitation of the high-speed train system.
   (c) Capital costs payable or reimbursable from proceeds of bonds
described in paragraph (1) of subdivision (b) include, with respect
to the high-speed train system or any portion thereof, all activities
necessary for acquisition of interests in real property and
rights-of-way and improvement thereof; acquisition and construction
of tracks, structures, power systems, and stations; acquisition of
rolling stock and related equipment; mitigation of any direct or
indirect environmental impacts of activities authorized by this
chapter; relocation assistance for displaced property owners and
occupants; other related capital facilities and equipment; and such
other purposes related to the foregoing, for the procurement thereof,
and for the financing or refinancing thereof, as may be set forth in
a statute hereafter enacted. The method of acquisition of any of the
foregoing may also be set forth in a statute hereafter enacted.
   (d) Proceeds of bonds authorized pursuant to this chapter shall
not be used for any operating or maintenance costs of trains or
facilities.
   (e) The State Auditor shall perform periodic audits of the
authority's use of proceeds of bonds authorized pursuant to this
chapter for consistency with the requirements of this chapter.



2704.05.  Subject to Section 2704.18, the proceeds of bonds issued
and sold pursuant to this chapter shall be deposited in the
High-Speed Passenger Train Bond Fund, which is hereby created.



2704.06.  The net proceeds received from the sale of nine billion
dollars ($9,000,000,000) principal amount of bonds authorized
pursuant to this chapter, upon appropriation by the Legislature in
the annual Budget Act, shall be available, and subject to those
conditions and criteria that the Legislature may provide by statute,
for (a) planning the high-speed train system and (b) capital costs
set forth in subdivision (c) of Section 2704.04, consistent with the
authority's certified environmental impact reports of November 2005
and July 9, 2008, as subsequently modified pursuant to environmental
studies conducted by the authority.


2704.07.  The authority shall pursue and obtain other private and
public funds, including, but not limited to, federal funds, funds
from revenue bonds, and local funds, to augment the proceeds of this
chapter.


2704.08.  (a) Proceeds of bonds described in paragraph (1) of
subdivision (b) of Section 2704.04 shall not be used for more than 50
percent of the total cost of construction of each corridor or usable
segment thereof of the high-speed train system, except for bond
proceeds used for the purposes of subdivision (g).
   (b) Not more than 10 percent of the proceeds of bonds described in
paragraph (1) of subdivision (b) of Section 2704.04 shall be used
for environmental studies, planning, and preliminary engineering
activities.
   (c) (1)  No later than 90 days prior to the submittal to the
Legislature and the Governor of the initial request for appropriation
of proceeds of bonds authorized by this chapter for any eligible
capital costs on each corridor, or usable segment thereof, identified
in subdivision (b) of Section 2704.04, other than costs described in
subdivision (g), the authority shall have approved and submitted to
the Director of Finance, the peer review group established pursuant
to Section 185035 of the Public Utilities Code, and the policy
committees with jurisdiction over transportation matters and the
fiscal committees in both houses of the Legislature, a detailed
funding plan for that corridor or a usable segment thereof.
   (2) The plan shall include, identify, or certify to all of the
following:
   (A) The corridor, or usable segment thereof, in which the
authority is proposing to invest bond proceeds.
   (B) A description of the expected terms and conditions associated
with any lease agreement or franchise agreement proposed to be
entered into by the authority and any other party for the
construction or operation of passenger train service along the
corridor or usable segment thereof.
   (C) The estimated full cost of constructing the corridor or usable
segment thereof, including an estimate of cost escalation during
construction and appropriate reserves for contingencies.
   (D) The sources of all funds to be invested in the corridor, or
usable segment thereof, and the anticipated time of receipt of those
funds based on expected commitments, authorizations, agreements,
allocations, or other means.
   (E) The projected ridership and operating revenue estimate based
on projected high-speed passenger train operations on the corridor or
usable segment.
   (F) All known or foreseeable risks associated with the
construction and operation of high-speed passenger train service
along the corridor or usable segment thereof and the process and
actions the authority will undertake to manage those risks.
   (G) Construction of the corridor or usable segment thereof can be
completed as proposed in the plan.
   (H) The corridor or usable segment thereof would be suitable and
ready for high-speed train operation.
   (I) One or more passenger service providers can begin using the
tracks or stations for passenger train service.
   (J) The planned passenger service by the authority in the corridor
or usable segment thereof will not require a local, state, or
federal operating subsidy.
   (K) The authority has completed all necessary project level
environmental clearances necessary to proceed to construction.
   (d) Prior to committing any proceeds of bonds described in
paragraph (1) of subdivision (b) of Section 2704.04 for expenditure
for construction and real property and equipment acquisition on each
corridor, or usable segment thereof, other than for costs described
in subdivision (g), the authority shall have approved and
concurrently submitted to the Director of Finance and the Chairperson
of the Joint Legislative Budget Committee the following: (1) a
detailed funding plan for that corridor or usable segment thereof
that (A) identifies the corridor or usable segment thereof, and the
estimated full cost of constructing the corridor or usable segment
thereof, (B) identifies the sources of all funds to be used and
anticipates time of receipt thereof based on offered commitments by
private parties, and authorizations, allocations, or other assurances
received from governmental agencies, (C) includes a projected
ridership and operating revenue report, (D) includes a construction
cost projection including estimates of cost escalation during
construction and appropriate reserves for contingencies, (E) includes
a report describing any material changes from the plan submitted
pursuant to subdivision (c) for this corridor or usable segment
thereof, and (F) describes the terms and conditions associated with
any agreement proposed to be entered into by the authority and any
other party for the construction or operation of passenger train
service along the corridor or usable segment thereof; and (2) a
report or reports, prepared by one or more financial services firms,
financial consulting firms, or other consultants, independent of any
parties, other than the authority, involved in funding or
constructing the high-speed train system, indicating that (A)
construction of the corridor or usable segment thereof can be
completed as proposed in the plan submitted pursuant to paragraph
(1), (B) if so completed, the corridor or usable segment thereof
would be suitable and ready for high-speed train operation, (C) upon
completion, one or more passenger service providers can begin using
the tracks or stations for passenger train service, (D) the planned
passenger train service to be provided by the authority, or pursuant
to its authority, will not require operating subsidy, and (E) an
assessment of risk and the risk mitigation strategies proposed to be
employed. The Director of Finance shall review the plan within 60
days of its submission by the authority and, after receiving any
communication from the Joint Legislative Budget Committee, if the
director finds that the plan is likely to be successfully implemented
as proposed, the authority may enter into commitments to expend bond
funds that are subject to this subdivision and accept offered
commitments from private parties.
   (e) Subsequent to approval of the detailed funding plan required
under subdivision (d), the authority shall promptly inform the
Governor and the Legislature of any material changes in plans or
project conditions that would jeopardize completion of the corridor
as previously planned and shall identify means of remedying the
conditions to allow completion and operation of the corridor.
   (f) In selecting corridors or usable segments thereof for
construction, the authority shall give priority to those corridors or
usable segments thereof that are expected to require the least
amount of bond funds as a percentage of total cost of construction.
Among other criteria it may use for establishing priorities for
initiating construction on corridors or usable segments thereof, the
authority shall include the following: (1) projected ridership and
revenue, (2) the need to test and certify trains operating at speeds
of 220 miles per hour, (3) the utility of those corridors or usable
segments thereof for passenger train services other than the
high-speed train service that will not result in any unreimbursed
operating or maintenance cost to the authority, and (4) the extent to
which the corridors include facilities contained therein to enhance
the connectivity of the high-speed train network to other modes of
transit, including, but not limited to, conventional rail (intercity
rail, commuter rail, light rail, or other rail transit), bus, or air
transit.
   (g) Nothing in this section shall limit use or expenditure of
proceeds of bonds described in paragraph (1) of subdivision (b) of
Section 2704.04 up to an amount equal to 7.5 percent of the aggregate
principal amount of bonds described in that paragraph for
environmental studies, planning, and preliminary engineering
activities, and for (1) acquisition of interests in real property and
right-of-way and improvement thereof (A) for preservation for
high-speed rail uses, (B) to add to third-party improvements to make
them compatible with high-speed rail uses, or (C) to avoid or to
mitigate incompatible improvements or uses; (2) mitigation of any
direct or indirect environmental impacts resulting from the
foregoing; and (3) relocation assistance for property owners and
occupants who are displaced as a result of the foregoing.
   (h) Not more than 2.5 percent of the proceeds of bonds described
in paragraph (1) of subdivision (b) of Section 2704.04 shall be used
for administrative purposes. The amount of bond proceeds available
for administrative purposes shall be appropriated in the annual
Budget Act. The Legislature may, by statute, adjust the percentage
set forth in this subdivision, except that the Legislature shall not
increase that percentage to more than 5 percent.
   (i) No failure to comply with this section shall affect the
validity of the bonds issued under this chapter.



2704.09.  The high-speed train system to be constructed pursuant to
this chapter shall be designed to achieve the following
characteristics:
   (a) Electric trains that are capable of sustained maximum revenue
operating speeds of no less than 200 miles per hour.
   (b) Maximum nonstop service travel times for each corridor that
shall not exceed the following:
   (1) San Francisco-Los Angeles Union Station: two hours, 40
minutes.
   (2) Oakland-Los Angeles Union Station: two hours, 40 minutes.
   (3) San Francisco-San Jose: 30 minutes.
   (4) San Jose-Los Angeles: two hours, 10 minutes.
   (5) San Diego-Los Angeles: one hour, 20 minutes.
   (6) Inland Empire-Los Angeles: 30 minutes.
   (7) Sacramento-Los Angeles: two hours, 20 minutes.
   (c) Achievable operating headway (time between successive trains)
shall be five minutes or less.
   (d) The total number of stations to be served by high-speed trains
for all of the corridors described in subdivision (b) of Section
2704.04 shall not exceed 24. There shall be no station between the
Gilroy station and the Merced station.
   (e) Trains shall have the capability to transition intermediate
stations, or to bypass those stations, at mainline operating speed.
   (f) For each corridor described in subdivision (b), passengers
shall have the capability of traveling from any station on that
corridor to any other station on that corridor without being required
to change trains.
   (g) In order to reduce impacts on communities and the environment,
the alignment for the high-speed train system shall follow existing
transportation or utility corridors to the extent feasible and shall
be financially viable, as determined by the authority.
   (h) Stations shall be located in areas with good access to local
mass transit or other modes of transportation.
   (i) The high-speed train system shall be planned and constructed
in a manner that minimizes urban sprawl and impacts on the natural
environment.
   (j) Preserving wildlife corridors and mitigating impacts to
wildlife movement, where feasible as determined by the authority, in
order to limit the extent to which the system may present an
additional barrier to wildlife's natural movement.



2704.095.  (a) (1) Net proceeds received from the sale of nine
hundred fifty million dollars ($950,000,000) principal amount of
bonds authorized by this chapter shall be allocated to eligible
recipients for capital improvements to intercity and commuter rail
lines and urban rail systems that provide direct connectivity to the
high-speed train system and its facilities, or that are part of the
construction of the high-speed train system as that system is
described in subdivision (b) of Section 2704.04, or that provide
capacity enhancements and safety improvements. Funds under this
section shall be available upon appropriation by the Legislature in
the annual Budget Act for the eligible purposes described in
subdivision (d).
   (2) Twenty percent (one hundred ninety million dollars
($190,000,000)) of the amount authorized by this section shall be
allocated for intercity rail to the Department of Transportation, for
state-supported intercity rail lines that provide regularly
scheduled service and use public funds to operate and maintain rail
facilities, rights-of-way, and equipment. A minimum of 25 percent of
the amount available under this paragraph (forty-seven million five
hundred thousand dollars ($47,500,000)) shall be allocated to each of
the state's three intercity rail corridors.
   The California Transportation Commission shall allocate the
available funds to eligible recipients consistent with this section
and shall develop guidelines, in consultation with the authority, to
implement the requirements of this section. The guidelines shall
include provisions for the administration of funds, including, but
not limited to, the authority of the intercity corridor operators to
loan these funds by mutual agreement between intercity rail
corridors.
   (3) Eighty percent (seven hundred sixty million dollars
($760,000,000)) of the amount authorized by this section shall be
allocated upon appropriation as set forth in this section to eligible
recipients, except intercity rail, as described in subdivision (c)
based upon a percentage amount calculated to incorporate all of the
following:
   (A) One-third of the eligible recipient's percentage share of
statewide track miles.
   (B) One-third of the eligible recipient's percentage share of
statewide annual vehicle miles.
   (C) One-third of the eligible recipient's percentage share of
statewide annual passenger trips.
   The California Transportation Commission shall allocate the
available funds to eligible recipients consistent with this section
and shall develop guidelines to implement the requirements of this
section.
   (b) For the purposes of this section, the following terms have the
following meanings:
   (1) "Track miles" means the miles of track used by a public agency
or joint powers authority for regular passenger rail service.
   (2) "Vehicle miles" means the total miles traveled, commencing
with pullout from the maintenance depot, by all locomotives and cars
operated in a train consist for passenger rail service by a public
agency or joint powers authority.
   (3) "Passenger trips" means the annual unlinked passenger
boardings reported by a public agency or joint powers authority for
regular passenger rail service.
   (4) "Statewide" when used to modify the terms in subparagraphs
(A), (B), and (C) of paragraph (3) of subdivision (a) means the
combined total in the state of those amounts for all eligible
recipients.
   (c) Eligible recipients for funding under paragraph (3) of
subdivision (a) shall be public agencies and joint powers authorities
that operate regularly scheduled passenger rail service in the
following categories:
   (1) Commuter rail.
   (2) Light rail.
   (3) Heavy rail.
   (4) Cable car.
   (d) Funds allocated pursuant to this section shall be used to pay
or reimburse the costs of projects to provide or improve connectivity
with the high-speed train system or for the rehabilitation or
modernization of, or safety improvements to, tracks utilized for
public passenger rail service, signals, structures, facilities, and
rolling stock.
   (e) Eligible recipients may use the funds for any eligible rail
element set forth in subdivision (d).
   (f) In order to be eligible for funding under this section, an
eligible recipient under paragraph (3) of subdivision (a) shall
provide matching funds in an amount not less than the total amount
allocated to the recipient under this section.
   (g) An eligible recipient of funding under paragraph (3) of
subdivision (a) shall certify that it has met its matching funds
requirement, and all other requirements of this section, by
resolution of its governing board, subject to verification by the
California Transportation Commission.
   (h) Funds made available to an eligible recipient under paragraph
(3) of subdivision (a) shall supplement existing local, state, or
federal revenues being used for maintenance or rehabilitation of the
passenger rail system. Eligible recipients of funding under paragraph
(3) of subdivision (a) shall maintain their existing commitment of
local, state, or federal funds for these purposes in order to remain
eligible for allocation and expenditure of the additional funding
made available by this section.
   (i) In order to receive any allocation under this section, an
eligible recipient under paragraph (3) of subdivision (a) shall
annually expend from existing local, state, or federal revenues being
used for the maintenance or rehabilitation of the passenger rail
system in an amount not less than the annual average of its
expenditures from local revenues for those purposes during the
1998-99, 1999-2000, and 2000-01 fiscal years.
   (j) Funds allocated pursuant to this section to the Southern
California Regional Rail Authority for eligible projects within its
service area shall be apportioned each fiscal year in accordance with
memorandums of understanding to be executed between the Southern
California Regional Rail Authority and its member agencies. The
memorandum or memorandums of understanding shall take into account
the passenger service needs of the Southern California Regional Rail
Authority and of the member agencies, revenue attributable to member
agencies, and separate contributions to the Southern California
Regional Rail Authority from the member agencies.


State Codes and Statutes

Statutes > California > Shc > 2704.04-2704.095

STREETS AND HIGHWAYS CODE
SECTION 2704.04-2704.095



2704.04.  (a) It is the intent of the Legislature by enacting this
chapter and of the people of California by approving the bond measure
pursuant to this chapter to initiate the construction of a
high-speed train system that connects the San Francisco Transbay
Terminal to Los Angeles Union Station and Anaheim, and links the
state's major population centers, including Sacramento, the San
Francisco Bay Area, the Central Valley, Los Angeles, the Inland
Empire, Orange County, and San Diego consistent with the authority's
certified environmental impact reports of November 2005 and July 9,
2008.
   (b) (1) Net proceeds received from the sale of nine billion
dollars ($9,000,000,000) principal amount of bonds authorized
pursuant to this chapter, upon appropriation by the Legislature in
the annual Budget Act, shall be used for (A) planning and engineering
for the high-speed train system and (B) capital costs, as described
in subdivision (c).
   (2) As adopted by the authority in May 2007, Phase 1 of the
high-speed train project is the corridor of the high-speed train
system between San Francisco Transbay Terminal and Los Angeles Union
Station and Anaheim.
   (3) Upon a finding by the authority that expenditure of bond
proceeds for capital costs in corridors other than the corridor
described in paragraph (2) would advance the construction of the
system, would be consistent with the criteria described in
subdivision (f) of Section 2704.08, and would not have an adverse
impact on the construction of Phase 1 of the high-speed train
project, the authority may request funding for capital costs, and the
Legislature may appropriate funds described in paragraph (1) in the
annual Budget Act, to be expended for any of the following high-speed
train corridors:
   (A) Sacramento to Stockton to Fresno.
   (B) San Francisco Transbay Terminal to San Jose to Fresno.
   (C) Oakland to San Jose.
   (D) Fresno to Bakersfield to Palmdale to Los Angeles Union
Station.
   (E) Los Angeles Union Station to Riverside to San Diego.
   (F) Los Angeles Union Station to Anaheim to Irvine.
   (G) Merced to Stockton to Oakland and San Francisco via the
Altamont Corridor.
   (4) Nothing in this section shall prejudice the authority's
determination and selection of the alignment from the Central Valley
to the San Francisco Bay Area and its certification of the
environmental impact report.
   (5) Revenues of the authority, generated by operations of the
high-speed train system above and beyond operating and maintenance
costs and financing obligations, including, but not limited to,
support of revenue bonds, as determined by the authority, shall be
used for construction, expansion, improvement, replacement, and
rehabilitation of the high-speed train system.
   (c) Capital costs payable or reimbursable from proceeds of bonds
described in paragraph (1) of subdivision (b) include, with respect
to the high-speed train system or any portion thereof, all activities
necessary for acquisition of interests in real property and
rights-of-way and improvement thereof; acquisition and construction
of tracks, structures, power systems, and stations; acquisition of
rolling stock and related equipment; mitigation of any direct or
indirect environmental impacts of activities authorized by this
chapter; relocation assistance for displaced property owners and
occupants; other related capital facilities and equipment; and such
other purposes related to the foregoing, for the procurement thereof,
and for the financing or refinancing thereof, as may be set forth in
a statute hereafter enacted. The method of acquisition of any of the
foregoing may also be set forth in a statute hereafter enacted.
   (d) Proceeds of bonds authorized pursuant to this chapter shall
not be used for any operating or maintenance costs of trains or
facilities.
   (e) The State Auditor shall perform periodic audits of the
authority's use of proceeds of bonds authorized pursuant to this
chapter for consistency with the requirements of this chapter.



2704.05.  Subject to Section 2704.18, the proceeds of bonds issued
and sold pursuant to this chapter shall be deposited in the
High-Speed Passenger Train Bond Fund, which is hereby created.



2704.06.  The net proceeds received from the sale of nine billion
dollars ($9,000,000,000) principal amount of bonds authorized
pursuant to this chapter, upon appropriation by the Legislature in
the annual Budget Act, shall be available, and subject to those
conditions and criteria that the Legislature may provide by statute,
for (a) planning the high-speed train system and (b) capital costs
set forth in subdivision (c) of Section 2704.04, consistent with the
authority's certified environmental impact reports of November 2005
and July 9, 2008, as subsequently modified pursuant to environmental
studies conducted by the authority.


2704.07.  The authority shall pursue and obtain other private and
public funds, including, but not limited to, federal funds, funds
from revenue bonds, and local funds, to augment the proceeds of this
chapter.


2704.08.  (a) Proceeds of bonds described in paragraph (1) of
subdivision (b) of Section 2704.04 shall not be used for more than 50
percent of the total cost of construction of each corridor or usable
segment thereof of the high-speed train system, except for bond
proceeds used for the purposes of subdivision (g).
   (b) Not more than 10 percent of the proceeds of bonds described in
paragraph (1) of subdivision (b) of Section 2704.04 shall be used
for environmental studies, planning, and preliminary engineering
activities.
   (c) (1)  No later than 90 days prior to the submittal to the
Legislature and the Governor of the initial request for appropriation
of proceeds of bonds authorized by this chapter for any eligible
capital costs on each corridor, or usable segment thereof, identified
in subdivision (b) of Section 2704.04, other than costs described in
subdivision (g), the authority shall have approved and submitted to
the Director of Finance, the peer review group established pursuant
to Section 185035 of the Public Utilities Code, and the policy
committees with jurisdiction over transportation matters and the
fiscal committees in both houses of the Legislature, a detailed
funding plan for that corridor or a usable segment thereof.
   (2) The plan shall include, identify, or certify to all of the
following:
   (A) The corridor, or usable segment thereof, in which the
authority is proposing to invest bond proceeds.
   (B) A description of the expected terms and conditions associated
with any lease agreement or franchise agreement proposed to be
entered into by the authority and any other party for the
construction or operation of passenger train service along the
corridor or usable segment thereof.
   (C) The estimated full cost of constructing the corridor or usable
segment thereof, including an estimate of cost escalation during
construction and appropriate reserves for contingencies.
   (D) The sources of all funds to be invested in the corridor, or
usable segment thereof, and the anticipated time of receipt of those
funds based on expected commitments, authorizations, agreements,
allocations, or other means.
   (E) The projected ridership and operating revenue estimate based
on projected high-speed passenger train operations on the corridor or
usable segment.
   (F) All known or foreseeable risks associated with the
construction and operation of high-speed passenger train service
along the corridor or usable segment thereof and the process and
actions the authority will undertake to manage those risks.
   (G) Construction of the corridor or usable segment thereof can be
completed as proposed in the plan.
   (H) The corridor or usable segment thereof would be suitable and
ready for high-speed train operation.
   (I) One or more passenger service providers can begin using the
tracks or stations for passenger train service.
   (J) The planned passenger service by the authority in the corridor
or usable segment thereof will not require a local, state, or
federal operating subsidy.
   (K) The authority has completed all necessary project level
environmental clearances necessary to proceed to construction.
   (d) Prior to committing any proceeds of bonds described in
paragraph (1) of subdivision (b) of Section 2704.04 for expenditure
for construction and real property and equipment acquisition on each
corridor, or usable segment thereof, other than for costs described
in subdivision (g), the authority shall have approved and
concurrently submitted to the Director of Finance and the Chairperson
of the Joint Legislative Budget Committee the following: (1) a
detailed funding plan for that corridor or usable segment thereof
that (A) identifies the corridor or usable segment thereof, and the
estimated full cost of constructing the corridor or usable segment
thereof, (B) identifies the sources of all funds to be used and
anticipates time of receipt thereof based on offered commitments by
private parties, and authorizations, allocations, or other assurances
received from governmental agencies, (C) includes a projected
ridership and operating revenue report, (D) includes a construction
cost projection including estimates of cost escalation during
construction and appropriate reserves for contingencies, (E) includes
a report describing any material changes from the plan submitted
pursuant to subdivision (c) for this corridor or usable segment
thereof, and (F) describes the terms and conditions associated with
any agreement proposed to be entered into by the authority and any
other party for the construction or operation of passenger train
service along the corridor or usable segment thereof; and (2) a
report or reports, prepared by one or more financial services firms,
financial consulting firms, or other consultants, independent of any
parties, other than the authority, involved in funding or
constructing the high-speed train system, indicating that (A)
construction of the corridor or usable segment thereof can be
completed as proposed in the plan submitted pursuant to paragraph
(1), (B) if so completed, the corridor or usable segment thereof
would be suitable and ready for high-speed train operation, (C) upon
completion, one or more passenger service providers can begin using
the tracks or stations for passenger train service, (D) the planned
passenger train service to be provided by the authority, or pursuant
to its authority, will not require operating subsidy, and (E) an
assessment of risk and the risk mitigation strategies proposed to be
employed. The Director of Finance shall review the plan within 60
days of its submission by the authority and, after receiving any
communication from the Joint Legislative Budget Committee, if the
director finds that the plan is likely to be successfully implemented
as proposed, the authority may enter into commitments to expend bond
funds that are subject to this subdivision and accept offered
commitments from private parties.
   (e) Subsequent to approval of the detailed funding plan required
under subdivision (d), the authority shall promptly inform the
Governor and the Legislature of any material changes in plans or
project conditions that would jeopardize completion of the corridor
as previously planned and shall identify means of remedying the
conditions to allow completion and operation of the corridor.
   (f) In selecting corridors or usable segments thereof for
construction, the authority shall give priority to those corridors or
usable segments thereof that are expected to require the least
amount of bond funds as a percentage of total cost of construction.
Among other criteria it may use for establishing priorities for
initiating construction on corridors or usable segments thereof, the
authority shall include the following: (1) projected ridership and
revenue, (2) the need to test and certify trains operating at speeds
of 220 miles per hour, (3) the utility of those corridors or usable
segments thereof for passenger train services other than the
high-speed train service that will not result in any unreimbursed
operating or maintenance cost to the authority, and (4) the extent to
which the corridors include facilities contained therein to enhance
the connectivity of the high-speed train network to other modes of
transit, including, but not limited to, conventional rail (intercity
rail, commuter rail, light rail, or other rail transit), bus, or air
transit.
   (g) Nothing in this section shall limit use or expenditure of
proceeds of bonds described in paragraph (1) of subdivision (b) of
Section 2704.04 up to an amount equal to 7.5 percent of the aggregate
principal amount of bonds described in that paragraph for
environmental studies, planning, and preliminary engineering
activities, and for (1) acquisition of interests in real property and
right-of-way and improvement thereof (A) for preservation for
high-speed rail uses, (B) to add to third-party improvements to make
them compatible with high-speed rail uses, or (C) to avoid or to
mitigate incompatible improvements or uses; (2) mitigation of any
direct or indirect environmental impacts resulting from the
foregoing; and (3) relocation assistance for property owners and
occupants who are displaced as a result of the foregoing.
   (h) Not more than 2.5 percent of the proceeds of bonds described
in paragraph (1) of subdivision (b) of Section 2704.04 shall be used
for administrative purposes. The amount of bond proceeds available
for administrative purposes shall be appropriated in the annual
Budget Act. The Legislature may, by statute, adjust the percentage
set forth in this subdivision, except that the Legislature shall not
increase that percentage to more than 5 percent.
   (i) No failure to comply with this section shall affect the
validity of the bonds issued under this chapter.



2704.09.  The high-speed train system to be constructed pursuant to
this chapter shall be designed to achieve the following
characteristics:
   (a) Electric trains that are capable of sustained maximum revenue
operating speeds of no less than 200 miles per hour.
   (b) Maximum nonstop service travel times for each corridor that
shall not exceed the following:
   (1) San Francisco-Los Angeles Union Station: two hours, 40
minutes.
   (2) Oakland-Los Angeles Union Station: two hours, 40 minutes.
   (3) San Francisco-San Jose: 30 minutes.
   (4) San Jose-Los Angeles: two hours, 10 minutes.
   (5) San Diego-Los Angeles: one hour, 20 minutes.
   (6) Inland Empire-Los Angeles: 30 minutes.
   (7) Sacramento-Los Angeles: two hours, 20 minutes.
   (c) Achievable operating headway (time between successive trains)
shall be five minutes or less.
   (d) The total number of stations to be served by high-speed trains
for all of the corridors described in subdivision (b) of Section
2704.04 shall not exceed 24. There shall be no station between the
Gilroy station and the Merced station.
   (e) Trains shall have the capability to transition intermediate
stations, or to bypass those stations, at mainline operating speed.
   (f) For each corridor described in subdivision (b), passengers
shall have the capability of traveling from any station on that
corridor to any other station on that corridor without being required
to change trains.
   (g) In order to reduce impacts on communities and the environment,
the alignment for the high-speed train system shall follow existing
transportation or utility corridors to the extent feasible and shall
be financially viable, as determined by the authority.
   (h) Stations shall be located in areas with good access to local
mass transit or other modes of transportation.
   (i) The high-speed train system shall be planned and constructed
in a manner that minimizes urban sprawl and impacts on the natural
environment.
   (j) Preserving wildlife corridors and mitigating impacts to
wildlife movement, where feasible as determined by the authority, in
order to limit the extent to which the system may present an
additional barrier to wildlife's natural movement.



2704.095.  (a) (1) Net proceeds received from the sale of nine
hundred fifty million dollars ($950,000,000) principal amount of
bonds authorized by this chapter shall be allocated to eligible
recipients for capital improvements to intercity and commuter rail
lines and urban rail systems that provide direct connectivity to the
high-speed train system and its facilities, or that are part of the
construction of the high-speed train system as that system is
described in subdivision (b) of Section 2704.04, or that provide
capacity enhancements and safety improvements. Funds under this
section shall be available upon appropriation by the Legislature in
the annual Budget Act for the eligible purposes described in
subdivision (d).
   (2) Twenty percent (one hundred ninety million dollars
($190,000,000)) of the amount authorized by this section shall be
allocated for intercity rail to the Department of Transportation, for
state-supported intercity rail lines that provide regularly
scheduled service and use public funds to operate and maintain rail
facilities, rights-of-way, and equipment. A minimum of 25 percent of
the amount available under this paragraph (forty-seven million five
hundred thousand dollars ($47,500,000)) shall be allocated to each of
the state's three intercity rail corridors.
   The California Transportation Commission shall allocate the
available funds to eligible recipients consistent with this section
and shall develop guidelines, in consultation with the authority, to
implement the requirements of this section. The guidelines shall
include provisions for the administration of funds, including, but
not limited to, the authority of the intercity corridor operators to
loan these funds by mutual agreement between intercity rail
corridors.
   (3) Eighty percent (seven hundred sixty million dollars
($760,000,000)) of the amount authorized by this section shall be
allocated upon appropriation as set forth in this section to eligible
recipients, except intercity rail, as described in subdivision (c)
based upon a percentage amount calculated to incorporate all of the
following:
   (A) One-third of the eligible recipient's percentage share of
statewide track miles.
   (B) One-third of the eligible recipient's percentage share of
statewide annual vehicle miles.
   (C) One-third of the eligible recipient's percentage share of
statewide annual passenger trips.
   The California Transportation Commission shall allocate the
available funds to eligible recipients consistent with this section
and shall develop guidelines to implement the requirements of this
section.
   (b) For the purposes of this section, the following terms have the
following meanings:
   (1) "Track miles" means the miles of track used by a public agency
or joint powers authority for regular passenger rail service.
   (2) "Vehicle miles" means the total miles traveled, commencing
with pullout from the maintenance depot, by all locomotives and cars
operated in a train consist for passenger rail service by a public
agency or joint powers authority.
   (3) "Passenger trips" means the annual unlinked passenger
boardings reported by a public agency or joint powers authority for
regular passenger rail service.
   (4) "Statewide" when used to modify the terms in subparagraphs
(A), (B), and (C) of paragraph (3) of subdivision (a) means the
combined total in the state of those amounts for all eligible
recipients.
   (c) Eligible recipients for funding under paragraph (3) of
subdivision (a) shall be public agencies and joint powers authorities
that operate regularly scheduled passenger rail service in the
following categories:
   (1) Commuter rail.
   (2) Light rail.
   (3) Heavy rail.
   (4) Cable car.
   (d) Funds allocated pursuant to this section shall be used to pay
or reimburse the costs of projects to provide or improve connectivity
with the high-speed train system or for the rehabilitation or
modernization of, or safety improvements to, tracks utilized for
public passenger rail service, signals, structures, facilities, and
rolling stock.
   (e) Eligible recipients may use the funds for any eligible rail
element set forth in subdivision (d).
   (f) In order to be eligible for funding under this section, an
eligible recipient under paragraph (3) of subdivision (a) shall
provide matching funds in an amount not less than the total amount
allocated to the recipient under this section.
   (g) An eligible recipient of funding under paragraph (3) of
subdivision (a) shall certify that it has met its matching funds
requirement, and all other requirements of this section, by
resolution of its governing board, subject to verification by the
California Transportation Commission.
   (h) Funds made available to an eligible recipient under paragraph
(3) of subdivision (a) shall supplement existing local, state, or
federal revenues being used for maintenance or rehabilitation of the
passenger rail system. Eligible recipients of funding under paragraph
(3) of subdivision (a) shall maintain their existing commitment of
local, state, or federal funds for these purposes in order to remain
eligible for allocation and expenditure of the additional funding
made available by this section.
   (i) In order to receive any allocation under this section, an
eligible recipient under paragraph (3) of subdivision (a) shall
annually expend from existing local, state, or federal revenues being
used for the maintenance or rehabilitation of the passenger rail
system in an amount not less than the annual average of its
expenditures from local revenues for those purposes during the
1998-99, 1999-2000, and 2000-01 fiscal years.
   (j) Funds allocated pursuant to this section to the Southern
California Regional Rail Authority for eligible projects within its
service area shall be apportioned each fiscal year in accordance with
memorandums of understanding to be executed between the Southern
California Regional Rail Authority and its member agencies. The
memorandum or memorandums of understanding shall take into account
the passenger service needs of the Southern California Regional Rail
Authority and of the member agencies, revenue attributable to member
agencies, and separate contributions to the Southern California
Regional Rail Authority from the member agencies.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Shc > 2704.04-2704.095

STREETS AND HIGHWAYS CODE
SECTION 2704.04-2704.095



2704.04.  (a) It is the intent of the Legislature by enacting this
chapter and of the people of California by approving the bond measure
pursuant to this chapter to initiate the construction of a
high-speed train system that connects the San Francisco Transbay
Terminal to Los Angeles Union Station and Anaheim, and links the
state's major population centers, including Sacramento, the San
Francisco Bay Area, the Central Valley, Los Angeles, the Inland
Empire, Orange County, and San Diego consistent with the authority's
certified environmental impact reports of November 2005 and July 9,
2008.
   (b) (1) Net proceeds received from the sale of nine billion
dollars ($9,000,000,000) principal amount of bonds authorized
pursuant to this chapter, upon appropriation by the Legislature in
the annual Budget Act, shall be used for (A) planning and engineering
for the high-speed train system and (B) capital costs, as described
in subdivision (c).
   (2) As adopted by the authority in May 2007, Phase 1 of the
high-speed train project is the corridor of the high-speed train
system between San Francisco Transbay Terminal and Los Angeles Union
Station and Anaheim.
   (3) Upon a finding by the authority that expenditure of bond
proceeds for capital costs in corridors other than the corridor
described in paragraph (2) would advance the construction of the
system, would be consistent with the criteria described in
subdivision (f) of Section 2704.08, and would not have an adverse
impact on the construction of Phase 1 of the high-speed train
project, the authority may request funding for capital costs, and the
Legislature may appropriate funds described in paragraph (1) in the
annual Budget Act, to be expended for any of the following high-speed
train corridors:
   (A) Sacramento to Stockton to Fresno.
   (B) San Francisco Transbay Terminal to San Jose to Fresno.
   (C) Oakland to San Jose.
   (D) Fresno to Bakersfield to Palmdale to Los Angeles Union
Station.
   (E) Los Angeles Union Station to Riverside to San Diego.
   (F) Los Angeles Union Station to Anaheim to Irvine.
   (G) Merced to Stockton to Oakland and San Francisco via the
Altamont Corridor.
   (4) Nothing in this section shall prejudice the authority's
determination and selection of the alignment from the Central Valley
to the San Francisco Bay Area and its certification of the
environmental impact report.
   (5) Revenues of the authority, generated by operations of the
high-speed train system above and beyond operating and maintenance
costs and financing obligations, including, but not limited to,
support of revenue bonds, as determined by the authority, shall be
used for construction, expansion, improvement, replacement, and
rehabilitation of the high-speed train system.
   (c) Capital costs payable or reimbursable from proceeds of bonds
described in paragraph (1) of subdivision (b) include, with respect
to the high-speed train system or any portion thereof, all activities
necessary for acquisition of interests in real property and
rights-of-way and improvement thereof; acquisition and construction
of tracks, structures, power systems, and stations; acquisition of
rolling stock and related equipment; mitigation of any direct or
indirect environmental impacts of activities authorized by this
chapter; relocation assistance for displaced property owners and
occupants; other related capital facilities and equipment; and such
other purposes related to the foregoing, for the procurement thereof,
and for the financing or refinancing thereof, as may be set forth in
a statute hereafter enacted. The method of acquisition of any of the
foregoing may also be set forth in a statute hereafter enacted.
   (d) Proceeds of bonds authorized pursuant to this chapter shall
not be used for any operating or maintenance costs of trains or
facilities.
   (e) The State Auditor shall perform periodic audits of the
authority's use of proceeds of bonds authorized pursuant to this
chapter for consistency with the requirements of this chapter.



2704.05.  Subject to Section 2704.18, the proceeds of bonds issued
and sold pursuant to this chapter shall be deposited in the
High-Speed Passenger Train Bond Fund, which is hereby created.



2704.06.  The net proceeds received from the sale of nine billion
dollars ($9,000,000,000) principal amount of bonds authorized
pursuant to this chapter, upon appropriation by the Legislature in
the annual Budget Act, shall be available, and subject to those
conditions and criteria that the Legislature may provide by statute,
for (a) planning the high-speed train system and (b) capital costs
set forth in subdivision (c) of Section 2704.04, consistent with the
authority's certified environmental impact reports of November 2005
and July 9, 2008, as subsequently modified pursuant to environmental
studies conducted by the authority.


2704.07.  The authority shall pursue and obtain other private and
public funds, including, but not limited to, federal funds, funds
from revenue bonds, and local funds, to augment the proceeds of this
chapter.


2704.08.  (a) Proceeds of bonds described in paragraph (1) of
subdivision (b) of Section 2704.04 shall not be used for more than 50
percent of the total cost of construction of each corridor or usable
segment thereof of the high-speed train system, except for bond
proceeds used for the purposes of subdivision (g).
   (b) Not more than 10 percent of the proceeds of bonds described in
paragraph (1) of subdivision (b) of Section 2704.04 shall be used
for environmental studies, planning, and preliminary engineering
activities.
   (c) (1)  No later than 90 days prior to the submittal to the
Legislature and the Governor of the initial request for appropriation
of proceeds of bonds authorized by this chapter for any eligible
capital costs on each corridor, or usable segment thereof, identified
in subdivision (b) of Section 2704.04, other than costs described in
subdivision (g), the authority shall have approved and submitted to
the Director of Finance, the peer review group established pursuant
to Section 185035 of the Public Utilities Code, and the policy
committees with jurisdiction over transportation matters and the
fiscal committees in both houses of the Legislature, a detailed
funding plan for that corridor or a usable segment thereof.
   (2) The plan shall include, identify, or certify to all of the
following:
   (A) The corridor, or usable segment thereof, in which the
authority is proposing to invest bond proceeds.
   (B) A description of the expected terms and conditions associated
with any lease agreement or franchise agreement proposed to be
entered into by the authority and any other party for the
construction or operation of passenger train service along the
corridor or usable segment thereof.
   (C) The estimated full cost of constructing the corridor or usable
segment thereof, including an estimate of cost escalation during
construction and appropriate reserves for contingencies.
   (D) The sources of all funds to be invested in the corridor, or
usable segment thereof, and the anticipated time of receipt of those
funds based on expected commitments, authorizations, agreements,
allocations, or other means.
   (E) The projected ridership and operating revenue estimate based
on projected high-speed passenger train operations on the corridor or
usable segment.
   (F) All known or foreseeable risks associated with the
construction and operation of high-speed passenger train service
along the corridor or usable segment thereof and the process and
actions the authority will undertake to manage those risks.
   (G) Construction of the corridor or usable segment thereof can be
completed as proposed in the plan.
   (H) The corridor or usable segment thereof would be suitable and
ready for high-speed train operation.
   (I) One or more passenger service providers can begin using the
tracks or stations for passenger train service.
   (J) The planned passenger service by the authority in the corridor
or usable segment thereof will not require a local, state, or
federal operating subsidy.
   (K) The authority has completed all necessary project level
environmental clearances necessary to proceed to construction.
   (d) Prior to committing any proceeds of bonds described in
paragraph (1) of subdivision (b) of Section 2704.04 for expenditure
for construction and real property and equipment acquisition on each
corridor, or usable segment thereof, other than for costs described
in subdivision (g), the authority shall have approved and
concurrently submitted to the Director of Finance and the Chairperson
of the Joint Legislative Budget Committee the following: (1) a
detailed funding plan for that corridor or usable segment thereof
that (A) identifies the corridor or usable segment thereof, and the
estimated full cost of constructing the corridor or usable segment
thereof, (B) identifies the sources of all funds to be used and
anticipates time of receipt thereof based on offered commitments by
private parties, and authorizations, allocations, or other assurances
received from governmental agencies, (C) includes a projected
ridership and operating revenue report, (D) includes a construction
cost projection including estimates of cost escalation during
construction and appropriate reserves for contingencies, (E) includes
a report describing any material changes from the plan submitted
pursuant to subdivision (c) for this corridor or usable segment
thereof, and (F) describes the terms and conditions associated with
any agreement proposed to be entered into by the authority and any
other party for the construction or operation of passenger train
service along the corridor or usable segment thereof; and (2) a
report or reports, prepared by one or more financial services firms,
financial consulting firms, or other consultants, independent of any
parties, other than the authority, involved in funding or
constructing the high-speed train system, indicating that (A)
construction of the corridor or usable segment thereof can be
completed as proposed in the plan submitted pursuant to paragraph
(1), (B) if so completed, the corridor or usable segment thereof
would be suitable and ready for high-speed train operation, (C) upon
completion, one or more passenger service providers can begin using
the tracks or stations for passenger train service, (D) the planned
passenger train service to be provided by the authority, or pursuant
to its authority, will not require operating subsidy, and (E) an
assessment of risk and the risk mitigation strategies proposed to be
employed. The Director of Finance shall review the plan within 60
days of its submission by the authority and, after receiving any
communication from the Joint Legislative Budget Committee, if the
director finds that the plan is likely to be successfully implemented
as proposed, the authority may enter into commitments to expend bond
funds that are subject to this subdivision and accept offered
commitments from private parties.
   (e) Subsequent to approval of the detailed funding plan required
under subdivision (d), the authority shall promptly inform the
Governor and the Legislature of any material changes in plans or
project conditions that would jeopardize completion of the corridor
as previously planned and shall identify means of remedying the
conditions to allow completion and operation of the corridor.
   (f) In selecting corridors or usable segments thereof for
construction, the authority shall give priority to those corridors or
usable segments thereof that are expected to require the least
amount of bond funds as a percentage of total cost of construction.
Among other criteria it may use for establishing priorities for
initiating construction on corridors or usable segments thereof, the
authority shall include the following: (1) projected ridership and
revenue, (2) the need to test and certify trains operating at speeds
of 220 miles per hour, (3) the utility of those corridors or usable
segments thereof for passenger train services other than the
high-speed train service that will not result in any unreimbursed
operating or maintenance cost to the authority, and (4) the extent to
which the corridors include facilities contained therein to enhance
the connectivity of the high-speed train network to other modes of
transit, including, but not limited to, conventional rail (intercity
rail, commuter rail, light rail, or other rail transit), bus, or air
transit.
   (g) Nothing in this section shall limit use or expenditure of
proceeds of bonds described in paragraph (1) of subdivision (b) of
Section 2704.04 up to an amount equal to 7.5 percent of the aggregate
principal amount of bonds described in that paragraph for
environmental studies, planning, and preliminary engineering
activities, and for (1) acquisition of interests in real property and
right-of-way and improvement thereof (A) for preservation for
high-speed rail uses, (B) to add to third-party improvements to make
them compatible with high-speed rail uses, or (C) to avoid or to
mitigate incompatible improvements or uses; (2) mitigation of any
direct or indirect environmental impacts resulting from the
foregoing; and (3) relocation assistance for property owners and
occupants who are displaced as a result of the foregoing.
   (h) Not more than 2.5 percent of the proceeds of bonds described
in paragraph (1) of subdivision (b) of Section 2704.04 shall be used
for administrative purposes. The amount of bond proceeds available
for administrative purposes shall be appropriated in the annual
Budget Act. The Legislature may, by statute, adjust the percentage
set forth in this subdivision, except that the Legislature shall not
increase that percentage to more than 5 percent.
   (i) No failure to comply with this section shall affect the
validity of the bonds issued under this chapter.



2704.09.  The high-speed train system to be constructed pursuant to
this chapter shall be designed to achieve the following
characteristics:
   (a) Electric trains that are capable of sustained maximum revenue
operating speeds of no less than 200 miles per hour.
   (b) Maximum nonstop service travel times for each corridor that
shall not exceed the following:
   (1) San Francisco-Los Angeles Union Station: two hours, 40
minutes.
   (2) Oakland-Los Angeles Union Station: two hours, 40 minutes.
   (3) San Francisco-San Jose: 30 minutes.
   (4) San Jose-Los Angeles: two hours, 10 minutes.
   (5) San Diego-Los Angeles: one hour, 20 minutes.
   (6) Inland Empire-Los Angeles: 30 minutes.
   (7) Sacramento-Los Angeles: two hours, 20 minutes.
   (c) Achievable operating headway (time between successive trains)
shall be five minutes or less.
   (d) The total number of stations to be served by high-speed trains
for all of the corridors described in subdivision (b) of Section
2704.04 shall not exceed 24. There shall be no station between the
Gilroy station and the Merced station.
   (e) Trains shall have the capability to transition intermediate
stations, or to bypass those stations, at mainline operating speed.
   (f) For each corridor described in subdivision (b), passengers
shall have the capability of traveling from any station on that
corridor to any other station on that corridor without being required
to change trains.
   (g) In order to reduce impacts on communities and the environment,
the alignment for the high-speed train system shall follow existing
transportation or utility corridors to the extent feasible and shall
be financially viable, as determined by the authority.
   (h) Stations shall be located in areas with good access to local
mass transit or other modes of transportation.
   (i) The high-speed train system shall be planned and constructed
in a manner that minimizes urban sprawl and impacts on the natural
environment.
   (j) Preserving wildlife corridors and mitigating impacts to
wildlife movement, where feasible as determined by the authority, in
order to limit the extent to which the system may present an
additional barrier to wildlife's natural movement.



2704.095.  (a) (1) Net proceeds received from the sale of nine
hundred fifty million dollars ($950,000,000) principal amount of
bonds authorized by this chapter shall be allocated to eligible
recipients for capital improvements to intercity and commuter rail
lines and urban rail systems that provide direct connectivity to the
high-speed train system and its facilities, or that are part of the
construction of the high-speed train system as that system is
described in subdivision (b) of Section 2704.04, or that provide
capacity enhancements and safety improvements. Funds under this
section shall be available upon appropriation by the Legislature in
the annual Budget Act for the eligible purposes described in
subdivision (d).
   (2) Twenty percent (one hundred ninety million dollars
($190,000,000)) of the amount authorized by this section shall be
allocated for intercity rail to the Department of Transportation, for
state-supported intercity rail lines that provide regularly
scheduled service and use public funds to operate and maintain rail
facilities, rights-of-way, and equipment. A minimum of 25 percent of
the amount available under this paragraph (forty-seven million five
hundred thousand dollars ($47,500,000)) shall be allocated to each of
the state's three intercity rail corridors.
   The California Transportation Commission shall allocate the
available funds to eligible recipients consistent with this section
and shall develop guidelines, in consultation with the authority, to
implement the requirements of this section. The guidelines shall
include provisions for the administration of funds, including, but
not limited to, the authority of the intercity corridor operators to
loan these funds by mutual agreement between intercity rail
corridors.
   (3) Eighty percent (seven hundred sixty million dollars
($760,000,000)) of the amount authorized by this section shall be
allocated upon appropriation as set forth in this section to eligible
recipients, except intercity rail, as described in subdivision (c)
based upon a percentage amount calculated to incorporate all of the
following:
   (A) One-third of the eligible recipient's percentage share of
statewide track miles.
   (B) One-third of the eligible recipient's percentage share of
statewide annual vehicle miles.
   (C) One-third of the eligible recipient's percentage share of
statewide annual passenger trips.
   The California Transportation Commission shall allocate the
available funds to eligible recipients consistent with this section
and shall develop guidelines to implement the requirements of this
section.
   (b) For the purposes of this section, the following terms have the
following meanings:
   (1) "Track miles" means the miles of track used by a public agency
or joint powers authority for regular passenger rail service.
   (2) "Vehicle miles" means the total miles traveled, commencing
with pullout from the maintenance depot, by all locomotives and cars
operated in a train consist for passenger rail service by a public
agency or joint powers authority.
   (3) "Passenger trips" means the annual unlinked passenger
boardings reported by a public agency or joint powers authority for
regular passenger rail service.
   (4) "Statewide" when used to modify the terms in subparagraphs
(A), (B), and (C) of paragraph (3) of subdivision (a) means the
combined total in the state of those amounts for all eligible
recipients.
   (c) Eligible recipients for funding under paragraph (3) of
subdivision (a) shall be public agencies and joint powers authorities
that operate regularly scheduled passenger rail service in the
following categories:
   (1) Commuter rail.
   (2) Light rail.
   (3) Heavy rail.
   (4) Cable car.
   (d) Funds allocated pursuant to this section shall be used to pay
or reimburse the costs of projects to provide or improve connectivity
with the high-speed train system or for the rehabilitation or
modernization of, or safety improvements to, tracks utilized for
public passenger rail service, signals, structures, facilities, and
rolling stock.
   (e) Eligible recipients may use the funds for any eligible rail
element set forth in subdivision (d).
   (f) In order to be eligible for funding under this section, an
eligible recipient under paragraph (3) of subdivision (a) shall
provide matching funds in an amount not less than the total amount
allocated to the recipient under this section.
   (g) An eligible recipient of funding under paragraph (3) of
subdivision (a) shall certify that it has met its matching funds
requirement, and all other requirements of this section, by
resolution of its governing board, subject to verification by the
California Transportation Commission.
   (h) Funds made available to an eligible recipient under paragraph
(3) of subdivision (a) shall supplement existing local, state, or
federal revenues being used for maintenance or rehabilitation of the
passenger rail system. Eligible recipients of funding under paragraph
(3) of subdivision (a) shall maintain their existing commitment of
local, state, or federal funds for these purposes in order to remain
eligible for allocation and expenditure of the additional funding
made available by this section.
   (i) In order to receive any allocation under this section, an
eligible recipient under paragraph (3) of subdivision (a) shall
annually expend from existing local, state, or federal revenues being
used for the maintenance or rehabilitation of the passenger rail
system in an amount not less than the annual average of its
expenditures from local revenues for those purposes during the
1998-99, 1999-2000, and 2000-01 fiscal years.
   (j) Funds allocated pursuant to this section to the Southern
California Regional Rail Authority for eligible projects within its
service area shall be apportioned each fiscal year in accordance with
memorandums of understanding to be executed between the Southern
California Regional Rail Authority and its member agencies. The
memorandum or memorandums of understanding shall take into account
the passenger service needs of the Southern California Regional Rail
Authority and of the member agencies, revenue attributable to member
agencies, and separate contributions to the Southern California
Regional Rail Authority from the member agencies.