CA SB498

Establishes a competitive grant program administered by the California Transportation Commission to provide grants in fiscal years 2020–21 and 2021–22 for short-line railroad infrastructure projects including reconstruction, maintenance, upgrade, or replacement.

Grants may be awarded to the Department of Transportation or regional transportation planning agencies for eligible Class III railroad projects that improve freight movement and have a useful life of at least 15 years.

Requires the California Transportation Commission to adopt grant program guidelines by July 1, 2020, in consultation with the Transportation Agency, regional transportation planning agencies, and Class III railroad industry representatives.

Limits individual grants to 50 percent of total project costs, requires at least 30 percent of project funding from nongovernmental sources, and caps grants at 25 percent of annual funding available.

Contingent upon legislative appropriation of up to $8,000,000 from Trade Corridors Improvement Fund program savings for purposes of the grant program.