BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 1779|
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                                 THIRD READING


          Bill No:  AB 1779
          Author:   Galgiani (D), et al.
          Amended:  8/21/12 in Senate
          Vote:     21

           
           SENATE TRANSPORTATION & HOUSING COMMITTEE  :  8-0, 7/3/12
          AYES:  DeSaulnier, Gaines, Kehoe, Lowenthal, Pavley, Rubio, 
            Simitian, Wyland
          NO VOTE RECORDED:  Harman

           SENATE APPROPRIATIONS COMMITTEE  :  6-1, 8/16/12
          AYES:  Kehoe, Alquist, Dutton, Lieu, Price, Steinberg
          NOES:  Walters

           ASSEMBLY FLOOR  :  64-11, 5/30/12 - See last page for vote


           SUBJECT  :    Intercity rail agreements

           SOURCE  :     Central Valley Rail Working Group
                      Sacramento Regional Transit District 
                      San Joaquin Regional Rail Commission
                      San Joaquin Valley Regional Policy Council


           DIGEST  :    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.

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           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 law: 

          1. Authorizes Caltrans to: 

             A.    Contract with Amtrak for intercity passenger 
                rail service.

             B.    Program in the State Transportation Improvement 
                Program 15% 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.

             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 10-year intercity passenger rail plan 
                updated every two years that the California 
                Transportation Commission (CTC) adopts.

          2. 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. 

          3. Assigns Caltrans responsibility for operating intercity 
             passenger service for trains operating up to 125 miles 
             per hour.

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          4. Requires a joint powers board to submit an annual 
             business plan to the state, which is the basis of a 
             budget request for service.

          5. 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.

          6. 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.

          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 
             (JPA) (Board) consisting of the following members:

                   One member from the Sacramento Regional Transit 
                District

                   One member from the San Joaquin Regional Rail 

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                Commission, who shall be a resident of San Joaquin 
                County

                   One member from the Stanislaus Council of 
                Governments

                   One member of the Merced County Association of 
                Governments

                   One member from the Madera County Transportation 
                Commission

                   One member from the Fresno Council of Governments 


                   One member of the Kings county Association of 
                Governments

                   One member of the Tulare County Association of 
                Governments

                   One member of the Kern Council of Governments

                   One member of the board of directors of a 
                regional transportation agency or rail transit 
                operator that serves Contra Costa County

                   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 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, 2014.  
             Requires the transfer agreement cover the initial three 
             year period after the transfer, and authorizes, upon 
             mutual agreement, for it to be extended thereafter.

          5. Authorizers the JPA, with regard to the San Joaquin 

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             Corridor, to identify and secure new supplemental 
             sources of funding for the purpose of expanding or 
             maintaining intercity rail passenger service levels, 
             which may include state and federal intercity rail 
             resources. 

          6. Requires the cost for categories of service be 
             controlled by the cost allocation procedures established 
             by Amtrak in accordance with the federal Passenger Rail 
             Investment and Improvement Act of 2008, and prohibits 
             the use of local funds for expenditure to offset any 
             redirection, elimination, reduction, or reclassification 
             of state resources for operating intercity passenger 
             rail services in the corridor.

          7. 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. 

          8. Prohibits the termination of feeder bus service for 
             intercity rail passengers unless the bus service fails 
             to meet specified cost effectiveness standards.

          9. Requires the JPA protects existing services and 
             facilities and seek to expand service as warranted. 

           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 
          Capitol Corridor JPA.  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.


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           Comments  
           
           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 JPA. 
           It is hoped that the JPA will bring a greater local 
          perspective to the operation of the service.  This bill is 
          permissive legislation, which enables regional governance 
          and management of the existing San Joaquin intercity 
          passenger rail service between 
          Bakersfield-Fresno-Stockton-Sacramento-Oakland.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

          According to the Senate Appropriations Committee:

             One-time costs to Caltrans of approximately $200,000 
             (Public Transportation Account) to administer the 
             transition of operations and management to the JPA.

             Cost pressures to maintain current levels of service 
             for three years due to expected reductions in federal 
             funding for intercity rail (Public Transportation 
             Account).  Although those federal reductions would be 
             related to service in the San Diego-Los Angeles-San Luis 
             Obispo intercity rail corridor (LOSSAN corridor), this 
             bill reduces flexibility to address shortfalls 
             statewide.

           SUPPORT  :   (Verified  8/21/12)

          Central Valley Rail Working Group (co-source)
          Sacramento Regional Transit District (co-source) 
          San Joaquin Regional Rail Commission (co-source)
          San Joaquin Valley Regional Policy Council (co-source) 
          California Central Valley Economic Development Corporation 
          California Partnership for the San Joaquin Valley
          California Transit Association
          Capitol Corridor Joint Powers Authority 
          Cities of Corcoran, Elk Grove, Fowler, Huron, Kingsburg, 
             Lodi, Mendota, Merced, Modesto, Sacramento, Selma, 
             Stockton, Turlock, Visalia 

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          City of Fresno Mayor Ashley Swearengin 
          Contra Costa County Board of Supervisors 
          Contra Costa Transportation Authority 
          County of Fresno 
          Fresno Council of Governments 
          Fresno Regional Workforce Investment Board 
          Greater Stockton Chamber of Commerce
          Los Angeles-San Diego-San Luis Obispo Rail Corridor Agency
          Madera County Transportation Commission 
          Merced County of Association of Governments 
          Sacramento Area Council of Governments 
          San Joaquin Council of Governments 
          San Joaquin Regional Transit District 
          San Joaquin Valley Air Pollution Control District 
          Stanislaus Council of Governments
          Steve Cohn, Sacramento City Councilmember and Board Member 
             of the Capitol Corridor Joint Powers Authority, 
             Sacramento Regional Transit and Sacramento Area Council 
             of Governments 
          Tulare County Association of Governments 

           OPPOSITION  :    (Verified  8/21/12)

          City of Bakersfield


           ASSEMBLY FLOOR  :  64-11, 5/30/12
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Butler, Charles Calderon, Campos, 
            Carter, Cedillo, Chesbro, Conway, Davis, Dickinson, Eng, 
            Feuer, Fong, Fuentes, Furutani, Galgiani, Gatto, Gordon, 
            Grove, Hagman, Halderman, Hall, Hayashi, Roger Hernández, 
            Hill, Huber, Hueso, Huffman, Jeffries, Lara, Bonnie 
            Lowenthal, Ma, Mendoza, Miller, Mitchell, Monning, 
            Nestande, Norby, Olsen, Pan, Perea, V. Manuel Pérez, 
            Portantino, Skinner, Smyth, Solorio, Swanson, Torres, 
            Wieckowski, Williams, Yamada, John A. Pérez
          NOES:  Donnelly, Beth Gaines, Harkey, Jones, Knight, Logue, 
            Mansoor, Morrell, Nielsen, Silva, Wagner
          NO VOTE RECORDED:  Cook, Fletcher, Garrick, Gorell, Valadao


          JJA:dk  8/21/12   Senate Floor Analyses 

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                         SUPPORT/OPPOSITION:  SEE ABOVE

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