CA AB198

Authorizes Department of Transportation to advance funds for transit and passenger rail projects when conditions are met, with new repayment requirements if funds are misused or projects fail to meet delivery schedules.

Establishes three climate adaptation grant programs: Transportation Infrastructure Climate Adaptation Strategy Grant Program for local planning, Local Transportation Infrastructure Climate Adaptation Project Program administered by California Transportation Commission, and State Transportation Infrastructure Climate Adaptation Program for state highway projects.

Creates High-Speed Rail Authority Office of the Inspector General with a 4-year appointed term, authorized to conduct audits, reviews, and investigations of project delivery, contractor selection, and fiscal estimates with annual reporting to Legislature.

Restricts High-Speed Rail Authority from entering new funding commitments outside the Merced to Bakersfield segment beginning fiscal year 2022-23, with limited exceptions for environmental clearance, state operations, and up to $500 million in efficiency-maximizing activities, until June 30, 2030 or when segment is fully funded.

Establishes Reconnecting Communities: Highways to Boulevards Pilot Program to award grants for converting underutilized state highways into multimodal corridors in underserved communities, and creates port-specific goods movement funding program with 70% allocation for Los Angeles and Long Beach ports and 30% for other state ports.