Cal. Pub. Util. Code § 99613

(a) The commission shall allocate money from the fund in accordance with the allocations specified in Chapter 3 (commencing with Section 99620) to the department, to the Department of Parks and Recreation, and to local agencies as grants for expenditure for the preservation, acquisition, construction, or improvement of any of the following:
1. (1) Rights-of-way for rail purposes.
2. (2) Rail terminals and stations.
3. (3) Rolling stock, including locomotives, passenger cars, and related rail equipment and facilities.
4. (4) Grade separations and other improvements along rail rights-of-way for rail purposes.
5. (5) Rail maintenance facilities.
6. (6) Other capital facilities deemed necessary for a specified rail service, including soundwalls.
7. (7) Capital expenditures for the purposes specified in subdivision (b) of Section 1 of Article XIX of the California Constitution.
8. (8) Paratransit vehicles, bicycle facilities, and water-borne ferry vessels and facilities.
9. (9) The project described in Section 99648.
(b) The commission shall require each applicant for a grant pursuant to Chapter 3 (commencing with Section 99620), including the department, to demonstrate in its application that if the grant funds being applied for are awarded, no other funds which were previously planned, programmed, or approved for rail purposes will be used for other than rail purposes.
(c) Consistent with Section 99665, money from the fund may be used to satisfy any federal, state or local matching fund requirement for the project to be funded. Money from the fund may be used to provide local matching funds for grade separations pursuant to subdivision (c) of Section 1202 or Section 1202.5.
(d) Authorized expenditures listed in paragraphs (1) to (7), inclusive, of subdivision (a) are “rail projects” as defined in subdivision (j) of Section 99602.
(e) Grant funds shall be expended only for capital expenditures.
(f) Projects to be funded shall include, to the greatest extent possible, projects which integrate and facilitate transfers between rail lines, including all rail lines for which funding is provided by this part.