On May 18, 2016, the California High-Speed Rail Authority announced amendments to its grant from the American Recovery and Reinvestment Act (ARRA) of 2009, the first amendment to the grant agreement since 2012. This move comes after the CHSRA recently approved its new 2016 Business Plan—which sets forth the plan to connect the Central Valley and Silicon Valley by 2024.
Key amendments to the agreement include:
*Modification of the overall project (the work funded with the grant) schedule from 2018 to 2022, to incorporate the Central Valley segment into the operating segment, consistent with the 2016 Business Plan.
*Establishment of a working capital account for right-of-way –ensuring that sufficient funding is available to maintain the pace of right-of-way acquisition without limitation. This streamlines the payment process.
*Continuity of the tapered match which allows for the expenditure of federal funds first, followed by the use of state funds.
*Amendment of the grant budget to include the Construction Package 1 northern extension to Madera and the purchase of Radio Spectrum to support train communications and safety measures.
*Increasing the amount of ARRA funding that can be expended on project development.
“High-speed rail construction is underway in California and this agreement is consistent with our efforts to connect Silicon Valley and the Central Valley by 2024, and then move forward with connecting San Francisco to Los Angeles,” said Authority CEO Jeff Morales. “This amendment to the existing agreement makes a number of technical fixes and updates the document to reflect the Board’s recent approval of the 2016 Business Plan and the Legislature’s commitment of Cap and Trade proceeds to the project.”
CHSRA says this move addresses the current Legislature’s commitment of Cap and Trade proceeds, does not delay the project, and focuses the use of ARRA funds by the mandated deadline of September 30, 2017.