FRA, CHSRA revise grant agreement

Written by Mischa Wanek-Libman, editor
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CHSRA

The Federal Railroad Administration and California High-Speed Rail Authority (CHSRA) updated an existing 2010 American Recovery and Reinvestment Act (ARRA) grant agreement.

 

CHSRA said the updated grant agreement reflects the plan set forth in the recently approved high-speed rail 2016 Business Plan and is better aligned with the current status of the program, which aims to deliver an operable segment connecting the Silicon Valley with the Central Valley by 2024.

“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 CHSRA Chief Executive Officer 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 called the amendment a significant step toward the deliver of service that does not delay the project and ensures ARRA funds are by the mandated deadline of September 30, 2017.

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.

 

U.S. Representative Jeff Denham (R-CA-Turlock) called the project “flawed” and released a statement saying, “Every time the voters read the news, the project has changed. The initial construction segment of the project was scheduled for completion in 2018, but now will not be done until the end of 2022, according to a contract revision. There have been multiple revisions to the contract agreement since being funded by the Obama Administration’s so-called stimulus funding package for economic recovery during the great recession. To date, no tracks have been laid for this flawed project.”

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