CEO Report

Brian P. Kelly, CEO
March 16, 2023


Federal Grants: Applications | Phasing | Considerations | Upcoming | Program Update: CP 4 | Relevant Materials


FEDERAL GRANT STRATEGY: SUBMITTED APPLICATIONS

  • The Authority currently has four submitted grant applications that are under consideration for grant award. A couple grants have overlapping elements, such that the maximum award across these four applications would be $260 million. Decisions are expected in the coming months through this summer.

Applications Submitted/Pending Award Notification

  • Program: 2022 RCE (Railroad Crossing Elimination)
    • Application Submitted:
      • October 11, 2022
    • Amount:
      • $67 million (Grant Request) of $84 million (Total Project Cost).
    • Scope:
      • Six Grade Separations.
        • Construct 2 grade separations.
        • Complete design and ROW for 4 grade separations.
      • Continue “Central Valley Training Center” funding.
  • Program: 2022 CRISI (Consolidated Rail Infrastructure and Safety Improvements)
    • Applications (2) Submitted:
      • December 1, 2022
    • Amount:
      • $233 million (Grant Request) of $292 million (Total Project Cost).
    • Scope:
      • Six Grade Separations in Shafter – Construct 6 grade separations.
    • Amount:
      • $2 million (Grant Request) of $3 million (Total Project Cost).
    • Scope:
      • Central Valley Training Center – Continue funding.
  • Program: 2023 RAISE (Rebuilding American Infrastructure with Sustainability and Equity)
    • Application Submitted:
      • February 27, 2023
    • Amount:
      • $25 million (Grant Request) of $33.2 million (Total Project Cost).
    • Scope:
      • Fresno Historic Depot Renovation Project + Park and Plaza, and Zero Emissions Vehicle Infrastructure.

FEDERAL GRANT STRATEGY: PHASING APPROACH

A complex graphic visually representing time and progress on the Merced to Bakersfield section and the phasing approach for Federal grants relative to stages of the project already complete, like environmental review, to stages underway, like construction and design along 119 miles of 171 miles, to stages that are pending additional federal grants, like the extensions to Merced and Bakersfield, track, systems, and train sets. A more detailed description can be obtained by contacting info@hsr.ca.gov.

Click for a larger version.


FEDERAL GRANT STRATEGY: CONSIDERATIONS

  • The Authority has developed a grant strategy to best leverage available state matching funds to maximize federal awards. We have also consulted with the FRA on the phasing strategy that recognizes federal funds will likely be awarded over multiple programs and multiple years. Other considerations include:
  • We have targeted $8 billion in new federal awards across 6+ federal programs.
  • With current levels of Cap-and-Trade revenue, the Authority estimates approximately $3.3 billion in state funds available to match new federal grants.
  • Given the current 85%/15% state/federal funding split, the Authority seeks a large federal contribution on future grants – up to 20%/80% state/federal.
  • Our “Phase A” priority for initial grants would fund the second track on the 119-mile segment, fund trainsets, the Fresno Station, and start right-of-way and other early work on the Merced and Bakersfield extensions. Federal grants are needed for the second track and trainset to preserve state funding for matching future federal grants.
  • To build high-speed rail in America, the both the federal government and states will have to consider permanent funding programs.

FEDERAL GRANT STRATEGY: UPCOMING APPLICATIONS

  • In the coming weeks, the Authority plans to submit three grant applications. The largest will be a $2.8 billion funding request from the Federal/State Partnership for Intercity Passenger Rail Program for Phase A in the Central Valley. We expect grants will be awarded by the FRA by the end of the calendar year.

NOFO Released / Applications To Be Submitted:

  • Program: 2023 Corridor ID Program
    • Date:
      • Application Deadline March 27, 2023.
    • Amount:
      • $500,000 (Grant Request) – No match requirement.
    • Scope:
      • Acceptance into the Corridor ID Program. FRA approval comes with an initial $500,000 funding award.
  • Program: 2023 Federal/State Partnership
    • Date:
      • Application Deadline April 21, 2023.
    • Amount:
      • ~$2.8 billion (Grant Req) + Multiyear Agreement for additional funds of $3.5 billion (Total Project Costs).
    • Scope:
      • Trainsets, 2nd Track on 119-Mile Segment, Fresno Station, ROW and Utilities on Merced-Bakersfield Extensions.
    • Amount:
      • $194 million (Grant Request) of $243 million (Total Project Cost).
    • Scope:
      • Configuration Design on SJ to Merced and Bakersfield to Palmdale Segments.
  • Programs: Future Rounds of Bipartisan Infrastructure Law Programs
    • Date:
      • Various.
    • Amount:
      • Remainder of $8 billion target.
    • Scope:
      • Phases B to D of High-Speed Rail construction.

CONSTRUCTION PACKAGE 4: CRITICAL THIRD-PARTY PROGRESS

  • North Kern Water Storage District:
    • The Authority executed the Utility Agreement for Canal 9-22 on February 17, 2023. This Agreement allows the Authority to construct the temporary bypass, casing, and work on the permanent facility.
  • Semitropic Water Storage District:
    • The Authority and Semitropic signed the letter agreement, second, and third amendment to the Utility Agreement 2.0 on March 1, 2023. These agreements will allow the Authority to construct the P1030 Canal, casings, an electrical line, underpass, and access road.

RELATED MATERIALS

Board of directors

Board Resolutions

View the Board Resolutions

Contact

Board of Directors Secretary
(916) 324-1541
boardmembers@hsr.ca.gov

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