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File #: 2025-0166   
Type: Budget Status: Passed
File created: 2/24/2025 In control: Planning and Programming Committee
On agenda: 5/14/2025 Final action: 5/14/2025
Title: CONSIDER: A. APPROVING $11,937,350 in Measure M High Desert Multipurpose Corridor (HDMC) funds identified in the Expenditure Plan for Right-Of-Way (ROW) acquisition to be repurposed to the High Desert Corridor (HDC) Joint Powers Agency (JPA) for the Fiscal Year 2026 (FY26) work program; and B. AUTHORIZING the Chief Executive Officer (CEO) or their designee to negotiate and execute all necessary funding agreements with the HDC JPA.
Sponsors: Board of Directors - Regular Board Meeting
Indexes: Budgeting, Project, Strategic planning
Attachments: 1. Attachment A - HDC JPA Funding Request, 2. Attachment B - HDC Corridor Map, 3. Attachment C - Metro Board Actions in Support of HDC, 4. Attachment D - HDC JPA FY26 Work Program Budget Detail, 5. Presentation

Meeting_Body

PLANNING AND PROGRAMMING COMMITTEE

MAY 14, 2025

 

Subject

SUBJECT:                     HIGH DESERT CORRIDOR FY26 WORK PROGRAM

 

Action

ACTION:                     APPROVE RECOMMENDATION

 

Heading

RECOMMENDATION

 

Title

CONSIDER:

 

A.                     APPROVING $11,937,350 in Measure M High Desert Multipurpose Corridor (HDMC) funds identified in the Expenditure Plan for Right-Of-Way (ROW) acquisition to be repurposed to the High Desert Corridor (HDC) Joint Powers Agency (JPA) for the Fiscal Year 2026 (FY26) work program; and

 

B.                     AUTHORIZING the Chief Executive Officer (CEO) or their designee to negotiate and execute all necessary funding agreements with the HDC JPA.

 

Issue

ISSUE

 

The Metro Board is a member agency of the HDC JPA and annually programs Measure M funds dedicated to the HDMC to support the HDC JPA’s efforts to advance the HDMC High Speed Rail alignment through the FRA’s Corridor Identification and Development Program. The HDC JPA has requested Metro program Measure M funding for the FY26 HDC JPA work program to advance the project’s planning, environmental, and advanced conceptual services (Attachment A) to support the project’s advancement through the FRA planning process.

Background

BACKGROUND

 

The HDMC, features the implementation of a new 54-mile east-west High-Speed Rail (HSR alignment (the Project) between the future Palmdale Multimodal HSR Station in Los Angeles County and the Brightline West (BLW) Station in Victor Valley in San Bernardino County.  The HDMC is funded through Measure R and Measure M with each listing the Project in their respective expenditure plans.  Metro programs funds for the Project annually to advance its progress through a rigorous Federal Railroad Administration (FRA) grants process known as the Corridor Identification and Development Program (CIDP), which was created in the Infrastructure Investment and Jobs Act (2021). 

The Project will link the Metrolink Antelope Valley Line (AVL) with two future HSR lines - California High Speed Rail Authority (CAHSR) and BLW (Attachment B). CAHSR is a State initiated program that is mandated to deliver high-speed rail service between San Francisco and Los Angeles.  BLW is a privately funded HSR service that will connect Las Vegas with Victor Valley and Rancho Cucamonga. Once completed, the Project will enable passengers to travel between Palmdale and Victor Valley in less than 30 minutes and provide a key rail link to encourage one-seat rides between Los Angeles County and Las Vegas and San Francisco. 

The Project supports the State’s ambitious greenhouse gas reduction efforts and provides economic development and mobility benefits for a region that includes many historically underserved, low-income, and disadvantaged communities. The Project is estimated to deliver 9 million boardings per year.  

Environmental Review

Measure R provided $33M for the environmental clearance of the HDMC, which at the time included a four-lane freeway/tollway and HSR service between Palmdale and Victorville.  The $33M in Measure R funds have been fully expended.  In 2016, the California Department of Transportation (Caltrans) completed the California Environmental Quality Act (CEQA) review of the Project.  In December 2020, Caltrans subsequently informed the Federal Highway Administration that the “no build” option was selected for the freeway/tollway element of the HDMC. The removal of the four-lane freeway/tollway would necessitate updates to the environmental document.

In April 2021, the HDC JPA requested that the Project move forward with the Federal Railroad Administration (FRA) as the lead agency for the National Environmental Policy Act (NEPA) review. To streamline the environmental review process, the HDC JPA opened dialogue in October 2024 with the CAHSR to utilize their NEPA delegation for the CAHSR to be the lead agency of environmental review of the Project.

Metro Support for Project Advancement through the FRA CIDP

The FRA prioritizes future passenger rail corridors for investment through its CIDP, which lays out a three-step process for potential corridors to undergo project planning and development to become ready for implementation. The Metro Board has consistently provided vital support for the Project over the past five years (Attachment C) to develop the project and secure FRA support to enter and advance through the CIDP’s three steps:

 

Step 1: Scoping

Step 2: Preparation of the Service Development Plan (SDP)

Step 3: Preparation for implementation  

 

At its January 2023 meeting, the Metro Board committed $8.5 million in Measure M Project funds to serve as 50% local match for two grant applications that resulted in the following awards: $8 million from the California State Transportation Agency (CalSTA) Transit and Intercity Rail Corridor Program (TIRCP) for advanced engineering (April 2023) and $500K from the FRA for CIDP planning work (December 2023).

 

The $1 million in combined funding from the Board and FRA for CIDP planning work allowed the HDC JPA to complete Step 1 of the CIDP and enter into Step 2 (Preparation of the SDP). The SDP is a planning-level document that provides FRA, Metro and project stakeholders with the information needed to assess the utility of establishing HSR service along the HDMC, the costs of implementation, and the next steps to advance the Project. Metro initiated the SDP for the HDMC on behalf of the HDC JPA in 2020 prior to the creation of the CIDP and submitted it to FRA in January 2023; following new guidance released by FRA for the CIDP process in 2024, the HDC JPA obligated $100K of the FRA CIDP grant to align the draft SDP with new FRA requirements. Metro will continue to work with the HDC JPA to update and finalize the SDP to submit to FRA for final approval in 2026.

 

The $8 million TIRCP award combined with Metro’s $8 million local match ($16 million total) will support advanced conceptual design and other pre-implementation activities that are part of Step 3 of the FRA CIDP.

 

Discussion

DISCUSSION

 

On April 17, 2025, the HDC JPA Board approved the proposed FY26 budget and work program for $11,937,350, subject to Metro Board approval. Key activities for the FY26 work program include:

1.                     Completing the NEPA process - HDC JPA will work with the CAHSR, lead agency, to finalize and submit the environmental document to FRA.  Once NEPA approval is received, anticipated to occur in early 2026, HDC will seek CEQA concurrence that finalizes the environmental approval process, to then achieve a Record Of Decision in late 2026.

2.                     Continued grant pursuits - in December 2024, the HDC JPA submitted a $42 million Federal-State Partnership (FSP) grant application for advanced conceptual design to integrate the Project with CAHSR and BLW.  The HDC JPA will await the award of grants through the FSP and will continue to pursue grant opportunities, leveraging the $17M in grant funding provided so far, as they become available.

3.                     Update the SDP - HDC to provide technical analysis and support for Metro to submit the final SDP Gap Analysis to the FRA for final approval in 2026.

4.                     Consultant Services - HDC to provide program management, engineering, and financial advisory services, as the HDC JPA mobilizes towards 30% design, plus management of the JPA.  See Attachment D for the HDC JPA FY26 work program budget detail.

 

Determination_Of_Safety_Impact

DETERMINATION OF SAFETY IMPACT

 

The Project's advancement will be done per all applicable FRA, California Public Utilities Commission, CAHSR, BLW, and Metrolink design and engineering standards, which will maximize Americans with Disabilities Act (ADA) and safety benefits to the public.

 

Financial_Impact

FINANCIAL IMPACT

 

The Measure M Expenditure Plan includes $170 million for the Project for right-of-way (ROW) acquisition or other project uses, and can be repurposed for appropriate project uses, as approved by the Metro Board. $23,758,000 million of this amount has already been repurposed and programmed in various Metro Board actions to advance the SDP, fund HDC JPA administration, and serve as local match to successful grants. Currently, there is approximately $146.2 million available, which is eligible to be used by the HDC JPA to fund the FY26 work program, complete the Final SDP, and mobilize towards 30% design.

Recommendation A will repurpose and program $11,937,350 in funds from the ROW acquisition to implementation of the FY26 HDC JPA work program, leaving a balance of $134.3 million in remaining Measure M funds for future HDC JPA ROW activities.

Note - the table above does not include $33M in Measure R funds spent previously for Caltrans to complete environmental clearance in 2016 for the HDMC, including the four-lane freeway/tollway, which was later removed from the Project by Caltrans.

 

Impact to Budget

 

$11,937,350 has been included in the FY26 Proposed Metro Budget for the HDC JPA FY26 work program under project number 475499.

 

It will be the responsibility of the Chief Planning Officer to program funds for the HDC JPA for this multi-year program in the future. Annual funding agreements between Metro and the HDC JPA will be audited and reconciled each year, subject to Measure M requirements.

 

The funding source for this project is Measure M 17% Highway, which is not eligible for Metro bus & rail operations and capital projects.

 

Equity_Platform

EQUITY PLATFORM

 

The Project will improve mobility for residents in North Los Angeles County by providing a high quality, environmentally friendly, safe, and efficient transportation option to access jobs, healthcare, education, other services, and economic opportunities offered at major urban and employment centers in Los Angeles and Las Vegas. As part of the environmental review process, the HDC JPA has engaged in frequent dialogue with key governmental stakeholders, plus consultation with local native tribal governance councils.  As the Project advances, there will be extensive outreach to the local communities. 

The entire Project service area falls within the low-income communities and households as defined by AB 1550. A significant portion also falls within disadvantaged and low-income communities, as defined by SB 535. The Project also serves Metro-defined Equity Focus Communities (EFC) in the Antelope Valley, including the cities of Palmdale, Lancaster, and unincorporated Los Angeles County. In addition, between 61% and 77% of residents within the Project area are predominantly from Black, Indigenous, and other People of Color (BIPOC) populations, with the highest percentage of BIPOC populations in the City of Palmdale. Many of the BIPOC populations include people with limited English proficiency.

 

Vehicle_Miles_Traveled_Outcome

VEHICLE MILES TRAVELED OUTCOME

 

VMT and VMT per capita in Los Angeles County are lower than national averages, the lowest in the SCAG region, and on the lower end of VMT per capita statewide, with these declining VMT trends due in part to Metro’s significant investment in rail and bus transit.*  Metro’s Board-adopted VMT reduction targets align with California’s statewide climate goals, including achieving carbon neutrality by 2045. To ensure continued progress, all Board items are assessed for their potential impact on VMT. 

 

As part of these ongoing efforts, the Project is expected to contribute to further reductions in VMT. This item supports Metro’s systemwide strategy to reduce VMT by shifting roadway users to the High Desert Corridor high-speed rail service and other regional rail corridors.  The reduction in VMT will also improve transportation safety in the High Desert region by reducing travel on State Route 138, a two-lane, rural state highway which experiences higher-than-average traffic volumes/collision rates.  Other benefits include reductions in traffic congestion, greenhouse gas emissions, and vehicle noise for those living near highways. Metro’s Board-adopted VMT reduction targets were designed to build on the success of existing investments, and this item aligns with those objectives.

 

*Based on population estimates from the United States Census and VMT estimates from Caltrans’ Highway Performance Monitoring System (HPMS) data between 2001-2019.

 

Implementation_of_Strategic_Plan_Goals

IMPLEMENTATION OF STRATEGIC PLAN GOALS

 

Recommendation A supports the Metro Vision 2028 Strategic Plan goals 1, 4, and 5 as follows: 

                     Goal 1.2:                     Invest in a world-class transit system that is reliable, convenient, and attractive to more users for more trips;

                     Goal 4.1:                     Work with partners to build trust and make decisions that support the goals of the Vision 2028 Plan;

                     Goal 5.2:                     Exercise good public policy judgment and sound fiscal stewardship.

 

Alternatives_Considered

ALTERNATIVES CONSIDERED

 

An alternative is that the Board does not approve the recommendations. This is not advised since completion of the Final SDP will enable the Project to participate in the Federal Corridor Identification Program. Additionally, the HDC JPA has received $17 million in grants and Metro Board-approved funding to advance the Measure R and M Project, indicating strong support from State and Federal partners that the Project has merit and provides value to the Southern California rail network.

 

Next_Steps

NEXT STEPS

 

Subject to the Board's approval of the recommendations, Metro will execute a funding agreement with the HDC JPA to implement the FY26 work program. Metro will continue coordination meetings with the FRA and the HDC JPA to complete the Final SDP. Staff will return to the Board annually. 

The HDC JPA will bring onboard an engineering design services firm in Summer 2025 to advance the Project design. The HDC JPA will continue efforts toward environmental clearance, with a Record of Decision expected in late 2026. Metro and HDC JPA are anticipated to submit the final SDP Gap Analysis to the FRA for final approval in 2026.

 

Attachments

ATTACHMENTS

 

Attachment A - HDC JPA Funding Request

Attachment B - HDC Corridor Map

Attachment C - Metro Board Actions in Support of HDC

Attachment D - HDC JPA FY26 Work Program Budget Detail

 

Prepared_by

Prepared by:                     Jay Fuhrman, Senior Manager, Multimodal Systems & Corridors Planning, (213) 547-4381

Michael Cano, Executive Officer, Multimodal Systems & Corridors Planning, (213) 418-3010

Avital Barnea, Senior Executive Officer, Multimodal Integrated Planning, (213) 547-4317

Nicole Ferrara, Deputy Chief Planning Officer, (213) 547-4322

 

Reviewed_By

Reviewed by:                      Ray Sosa, Chief Planning Officer, (213) 547-4274