BILL ANALYSIS Ó
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: AB 1779
SENATOR MARK DESAULNIER, CHAIRMAN AUTHOR: Galgiani
VERSION:
6/27/2012
Analysis by: Art Bauer FISCAL: yes
Hearing date: July 3, 2012
SUBJECT:
Interagency transfer agreement
DESCRIPTION:
This bill authorizes the Department of Transportation (Caltrans)
to enter into a transfer of services agreement with a joint
powers authority to administer the state-contracted Amtrak
service operating between the San Joaquin Valley, the San
Francisco Bay Area, and Sacramento.
ANALYSIS:
Since 1979, Caltrans has been contracting with Amtrak for
providing intercity passenger rail service between Bakersfield,
Sacramento, and Emeryville, with bus connections to San
Francisco and other communities. Currently, there are four
round trips daily to Emeryville and two to Sacramento.
Approximately one million persons use the service annually.
Existing state law:
1.Authorizes Caltrans to:
a.Contract with Amtrak for intercity passenger rail service.
b. Program in the State Transportation Improvement Program
(STIP) 15 percent of the funds available for interregional
transportation improvements to intercity passenger rail and
grade separations.
c. Enter into contracts with motor coach operators to
provide feeder bus service to intercity passenger rail
service, provided the service does not require an operating
subsidy.
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d. Provide marketing services for the intercity passenger
rail program, acquire passenger cars and locomotives, and
take other actions to facilitate the operation of the
service.
e. Prepare a ten-year intercity passenger rail plan updated
every two years that the California Transportation
Commission (CTC) adopts.
1.Authorizes Caltrans, subject to the approval of the Secretary
of Business and Transportation Agency (Secretary), to enter
into an agreement with a joint powers board transferring
responsibility for administering intercity passenger rail
service in a corridor.
2.Assigns Caltrans responsibility for operating intercity
passenger service for trains operating up to 125 miles per
hour.
3.Requires a joint powers board to submit an annual business
plan to the state, which is the basis of a budget request for
service.
4.Authorizes the Secretary to do the following:
a. Establish the level of state funding available for
operation of intercity passenger rail service available in
each corridor in which service operates.
b. Allocate funds to a joint powers board consistent with
an interagency agreement that includes among other things
the level of service to be operated.
5.Authorizes joint powers agencies to augment state funds at
their discretion to expand service, address funding
shortfalls, or achieve agreed upon performance standards.
Existing federal law authorizes states or state-created entities
to contract with Amtrak for intercity passenger rail service.
Federal law requires states, according to a national cost
allocation process adopted by the Service Transportation Board,
to pay the full operating and capital costs for intercity
passenger rail service in which the service is less than 750
miles in length. Federal law exempts Interstate service from
this provision.
AB 1779 (GALGIANI) Page 3
This bill :
1.Defines the San Joaquin Corridor as the Los
Angeles-Bakersfield-Fresno-Stockton-Sacramento-Oakland
intercity passenger rail corridor.
2.Creates the San Joaquin Joint Powers Authority Board
consisting of the following members:
a. One member from the Sacramento Regional Transit District
b. One member from the San Joaquin Regional Rail
Commission, who shall be a resident of San Joaquin County
c. One member from the Stanislaus Council of Governments
d. One member of the Merced County Association of
Governments
e. One member from the Madera County Transportation
Commission
f. One member from the Fresno Council of Governments
g. One member of the Kings county Association of
Governments
h. One member of the Tulare County Association of
Governments
i. One member of the Kern Council of Governments
j. One member of the board of directors of a regional
transportation agency or rail transit operator that serves
Contra Costa County
aa. One member of a regional transportation agency or rail
transit operator that serves Alameda County that the
Alameda Board of Supervisors appoints and who must be a
resident of that county
3.Deems the board organized if six of the agencies elect to
appoint a member prior to December 31, 2013.
4.Authorizes the San Joaquin Joint Powers Authority (JPA) to
enter into an interagency transfer agreement with Caltrans for
assuming all responsibility for administering state- funded
intercity passenger rail service in the corridor on or before
December 31, 2013 and for not less than a three-year period.
5.Authorizes the JPA to contract with Amtrak to provide service,
contract with other operators to operate the service, and
contract with rail corporations to use tracks and other
facilities.
6.Declares the intent of the Legislature that the San Joaquin
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Joint Powers Authority protect existing services and
facilities and seek to expand service as warranted.
COMMENTS:
1.Purpose . This author introduced this bill to enable the
transfer of administrative responsibility of the San Joaquin
intercity passenger rail service from Caltrans to a new joint
powers authority, following the model of the Capitol Corridor
Joint Powers Authority. It is hoped that the JPA will bring a
greater local perspective to the operation of the service.
This bill is permissive legislation, which would enable
regional governance and management of the existing San Joaquin
intercity passenger rail service between
Bakersfield-Fresno-Stockton-Sacramento-Oakland.
2.Background . The state funds three intercity passenger rail
routes in California. Two routes, the San Joaquin route and
the Pacific Surfliner route, serving the LOSSAN Corridor (Los
Angeles-San Diego-Santa Barbara-San Luis Obispo) are
administered by Caltrans and the third route, the Capitol
Corridor (traveling from San Jose-Oakland-Sacramento/Auburn)
is administered by the CCJPA. Amtrak operates all three
routes under contract with Caltrans. Nationally, the Pacific
Surfliner is the second most patronized after the Northeast
Corridor service; the Capitol Corridor the fourth; and the San
Joaquin the fifth. California has the largest and most
successful state-supported intercity passenger rail program in
the country.
3.Share-state regional responsibility . Caltrans and the new JPA
all share responsibility for the success of the service.
Caltrans will be responsible for contracting with Amtrak for
service, marketing the service, and developing a state rail
plan. There may be areas of confusion over where
responsibility rests. For example, improvements to the
railroad infrastructure must be negotiated with BNSF and UP,
but who negotiates for the improvements? The JPA, which does
not put funds into the operations of the service, or Caltrans
which will be the source of funds to pay for improvements.
This is unclear and may be a point of contention in the
future.
4.Broad grant of power, a major shift in policy . This bill
provides an extraordinary broad grant of power to the JPA and
possibly also to the LOSSAN Corridor JPA and the Capitol
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Corridor JPA to enter into contracts with Amtrak or other
operators and with the railroads that own the tracks and
facilities. This is a major shift in state policy. This
could transform intercity passenger rail services into three
distinct regional services. It is unclear where the resources
may come from for funding any services and improvements that
might be negotiated.
5.It is unclear why a broad grant of power is needed . Caltrans
has taken the lead in partnership with the High-Speed Rail
Authority (HSRA) to negotiate agreements with the BNSF that
are necessary to incorporate the HSRA proposed blended system
into the BNSF's system of facilities. In addition, Caltrans
undertakes the complex procurement of locomotive and passenger
cars for all three corridors. In fact, among the states,
Caltrans' experience in procurement has resulted in Caltrans
managing a $552 million project for the procurement of 135
bi-level passenger cars. Depending on the final bid, Caltrans
will acquire about 40 cars. The others are for Illinois, Iowa,
and Missouri. Next year, Caltrans will manage the procurement
of 27 locomotives, of which 6 are for California. The total
value of this acquisition is expected to be $130 million. This
proposed shift in policy may result in a loss of expertise
that has served the state well.
6.Need for harmonization of the rail programs. This bill and SB
1225 create two new regional entities to oversee intercity
passenger rail services, one in the San Joaquin Valley and one
in the LOSSAN Corridor. The broad grant of power proposed in
this bill and the emerging role of the HSRA as a major actor
in the development of the state's intercity rail service would
fragment decision making and responsibility.
The committee may wish to examine this issue during the
interim and seek a strategy to harmonize the delivery of
intercity passenger rail services in the state. Recognizing
these circumstances, the committee may wish to delete Section
5 of the bill beginning on page 5, line 34.
7.Does not designate the appointing authority for Contra Costa
County representative . This bill assigns a representative to
the JPA governing board, but does not designate who will
appoint that person.
8.Amendments .
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a. In similar legislation, SB 1225 (Padilla), the committee
made amendments when approving the bill to protect the
existing feeder bus services. To ensure that the San
Joaquin service continues to be part of the statewide rail
network, the committee may wish to amend the bill to
prevent the termination of bus service contracted for by
Caltrans to connect the San Joaquin service with the other
state-provided Amtrak services or markets that contribute
to the ridership of the service, unless the bus service no
longer conforms with the performance requirements of
existing law.
b. Included in the bill is intent language (page 5, line
31) that the JPA protect existing service and facilities
and seek to expand service as warranted by ridership and
available revenue. The committee may wish to amend the
bill to make this operative language by requiring the JPA
to protect existing services.
RELATED LEGISLATION:
SB 1225 (Padilla) authorizes Caltrans to enter into a transfer
of services agreement with the Los Angeles-San Diego (LOSSAN)
Corridor Agency, a JPA, to oversee the operation of intercity
passenger rail service in the corridor. That bill passed this
committee on a 9-0 vote. Pending in the Assembly Local
Government Committee.
Assembly Votes:
Floor: 64-11
Appr: 12-5
Loc Gov: 7-1
Trans: 11-0
POSITIONS: (Communicated to the committee before noon on
Wednesday,
June 27, 2012)
SUPPORT: California Central Valley Economic
Development Corporation
California Partnership for the San
Joaquin Valley
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Central Valley Rail Working Group (Sponsor)
City of Elk Grove
City of Fowler
City of Fresno, Mayor Ashley Swearengin
City of Huron
City of Kingsburg
City of Lodi
City of Mendota
City of Merced
City of Modesto
City of Sacramento Los Angeles-San Diego-San
Luis Obispo (LOSSAN) Rail Corridor Agency
City of Selma
City of Stockton
City of Visalia
County of Fresno
Fresno Regional Workforce Investment Board
Greater Stockton Chamber of Commerce
Madera County Transportation Commission
Merced County of Association of Governments
Sacramento Area Council of Governments
Sacramento Regional Transit District
(Sponsor)
San Joaquin Council of Governments
San Joaquin Valley Regional Policy
Council (Sponsor)
San Joaquin Regional Rail Commission
(Sponsor)
San Joaquin Regional Transit District
San Joaquin Valley Air Pollution Control
District
Stanislaus Council of Governments City of
Turlock
Tulare County Association of Governments
OPPOSED: None received.
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