High-speed rail: economic opportunities.

Senator Cortese's high-speed rail economic opportunities legislation directs the Office of Land Use and Climate Innovation to conduct a comprehensive study examining development and funding possibilities along California's high-speed rail corridor. The study, due by January 2027, must evaluate funding mechanisms, development opportunities near stations, public-private partnerships, and methods to provide direct community benefits to properties adjacent to the rail alignment.

The legislation requires the study to analyze potential infrastructure funding sources, including federal grants and loans, while exploring ways to accelerate development through density bonuses, streamlined permitting, and the creation of infrastructure districts. The analysis must also examine opportunities involving publicly owned parcels, air rights around stations, and integration with existing transportation services. A progress report must be submitted to legislative transportation committees by July 2026, followed by final recommendations to policy and fiscal committees six months later.

Under the bill, infrastructure districts that use revenue to finance high-speed rail construction must dedicate most funds to infrastructure projects within their local jurisdictions. The legislation defines infrastructure districts to include enhanced infrastructure financing districts, community revitalization authorities, community facilities districts, and other local agencies established primarily to finance infrastructure improvements.