BILL ANALYSIS Ó AB 845 Page 1 Date of Hearing: May 2, 2011 ASSEMBLY COMMITTEE ON TRANSPORTATION Bonnie Lowenthal, Chair AB 845 (Ma) - As Introduced: February 17, 2011 SUBJECT : Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century: intercity, commuter and urban rail bonds SUMMARY : Sets forth provisions to govern the distribution of $950 million in bond funds authorized in the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century (Bond Act) for intercity, commuter, and urban rail lines. Specifically, this bill : 1)Requires the distribution of the funds to be based on the most current available data in the National Transit Database of the Federal Transit Administration. 2)Directs the California Transportation Commission (CTC) to accept from each eligible recipient of the funds a priority list of project; projects must meet criteria set forth in the Bond Act. 3)Directs the CTC to require that matching funds are to be provided from non-state funds, as defined. 4)Provides that the required match for commuter and urban rail projects begins with expenditures made subsequent to the adoption of the program by the CTC. EXISTING LAW: 1)Provides $9.95 billion in general obligation bond authority to fund the planning and construction of a high-speed passenger train system and complementary improvements to other specified rail systems in the state. 2)Of the $9.95 billion provided for in the Bond Act, authorizes $950 million in bonds to be allocated to eligible recipients for capital improvements to intercity rail lines, commuter rail lines, and urban rail systems that: 1) provide direct connectivity to the high-speed train system and its facilities; 2) are a part of the construction of the high-speed train system; or, 3) provide capacity enhancements AB 845 Page 2 and safety improvements. 3)Of this amount, $190 million is for allocation to intercity rail lines and the $760 million is to be allocated to other eligible recipients. 4)Defines "eligible recipients" to mean public agencies and joint powers authorities that operate regularly scheduled passenger rail service in commuter, light, and heavy rail and cable cars. 5)Directs the CTC to allocate the bond funds to eligible recipients and to develop related guidelines, in consultation with the High-Speed Rail Authority. 6)Prescribes that funds are to be distributed by formula based on track miles, annual vehicle miles, and passenger trips. 7)Specifically provides that bond funds are to be used for projects to provide or improve connectivity with the high-speed train system or for the rehabilitation or modernization of, or safety improvements to tracks utilized for public passenger rail service, signals, structures, facilities, and rolling stock; explicitly provides that eligible recipients may use the funds for any one of these elements. 8)Requires eligible recipients to match bond dollars 1:1. FISCAL EFFECT : Unknown COMMENTS : In 2008, California voters approved the Bond Act via Proposition 1A, a $9.95 billion bond measure to build the country's first high-speed rail train system. Within Proposition 1A, voters supported $950 million to be used for local capital modernization and improvement projects on existing rail facilities in California to provide a tight web of connectivity to high-speed rail and to assure that our existing rail properties were in an adequate state of repair to accommodate the additional capacity necessary for providing connecting services to high-speed rail. In February 2010, the CTC adopted guidelines to implement both the Intercity Rail Program (for the $190 million in bond proceeds) and the Commuter and Urban Rail Program (for the AB 845 Page 3 remaining $760 million in bond proceeds). In its guidelines for the Commuter and Urban Rail Program, the CTC provided that it will give priority to those projects that provide direct connectivity to the high-speed train system. The CTC adopted it initial three-year program of projects for these two programs in May 2010 and last year's budget included appropriations of bond funds to begin funding the programs. However, the Governor apparently did not agree with the program adopted by the CTC and vetoed roughly $133 million in bond act appropriations, stating: "The High-Speed Rail Authority, the Department of Transportation, and local jurisdictions should work together to develop a statewide strategy and an associated list of projects that will best accomplish the goal of moving passengers between destinations around the state in the quickest, most efficient and cost effective way, by utilizing these funds to advance the construction of facilities for joint use where possible and by providing better connectivity to the future high-speed rail system." AB 845 codifies a portion of the CTC guidelines. Specifically, the bill codifies elements of the guidelines relating to distribution of funds for the Commuter and Urban Rail Program for the modernization of intercity, commuter, and urban rail transit systems. Author's amendments: The bill would have the distribution of the funds be based on the most current available data in the National Transit Database of the Federal Transit Administration. However, the program adopted by the CTC was based on 2007 data. The bill should be amended so that it consistent with the program adopted by the CTC. REGISTERED SUPPORT / OPPOSITION : Support Bay Area Rapid Transit (sponsor) Opposition None on file Analysis Prepared by : Janet Dawson / TRANS. / (916) 319-2093 AB 845 Page 4