Amended in Assembly April 25, 2013

Amended in Assembly April 16, 2013

Amended in Assembly March 19, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 528

Introduced by Assembly Member Lowenthal

February 20, 2013

An act to repeal Sections 14036.2 and 14036.3 of, and to repeal and add Section 14036 of, the Government Code, and to amend Section 185033 of the Public Utilities Code, relating to transportation.


AB 528, as amended, Lowenthal. State Rail Plan: High-Speed Rail Authority business plan.

(1) Existing law requires the Department of Transportation to prepare abegin delete 10-yearend deletebegin insert 10-yearend insert State Rail Plan biennially for submission to the Legislature, Governor, and specified entities.begin delete Theend deletebegin insert Eend insertbegin insertxisting law requires theend insert planbegin delete consistsend deletebegin insert to consistend insert of 2 elements, a passenger rail element and a freight rail element, and sets forth various items that are required to be included in each element. Existing law separately requires the High-Speed Rail Authority to prepare, publish, adopt, and submit to the Legislature, not later than January 1, 2012, and every 2 years thereafter, a specified business plan, with specified elements, and to publish, at least 60 days prior to the publication of the plan, a draft business plan for public review and comment, as specified.

This bill would revise and recast the items required to be included in the 2 elements of thebegin delete 10-yearend delete State Rail Planbegin insert and in the elements of the business plan,end insert and would eliminate the 10-year timeframe for the State Rail Plan. The bill would changebegin insert, from January 1 to May 1 of each even-numbered year,end insert thebegin delete firstend delete datebegin delete to May 1, 2014,end delete by which the High-Speed Rail Authority is required to prepare, publish, adopt, and submitbegin insert the business planend insert to the Legislaturebegin delete the business plan. The bill would also make changes to the elements required to be included in the business planend delete.

(2) Existing law requires the department to identify in the rail passenger development plan the 3 most decrepit intercity rail passenger stations in the state used by trains operated by the National Railroad Passenger Corporation (AMTRAK) and those rail passenger stations that require upgraded parking facilities, as specified. Existing law requires the department to consider and estimate the cost of specified types of rail service improvements to the San Joaquin Amtrak route, and to report its findings in the rail passenger development plan submitted in 1991 pursuant to the provisions governing the preparation of the State Rail Plan.

This bill would repeal these requirements.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1


The Legislature finds and declares all of the

3(a) Passage of the federal Passenger Rail Investment and
4Improvement Act of 2008begin delete (PRIIA; 49end deletebegin insert (49end insert U.S.C. Sec. 22701 et
5begin delete seq.)end deletebegin insert seq.). end insert requires comprehensive rail plans in order for states
6to be eligible for new federal rail capital grants. To comply with
7 federal law, the state rail plan must include, at a minimum, all of
8the following:

9(1) An inventory of the existing rail transportation system and
10rail services and facilities within the state, and an analysis of the
11role of rail transportation within the state’s surface transportation

13(2) A review of all rail lines within the state, including proposed
14high-speed rail corridors.

15(3) A statement of the state’s passenger rail objectives.

16(4) A general analysis of the transportation, economic, and
17environmental impacts of rail in the state, including congestion
P3    1mitigation, trade and economic development, air quality, land use,
2energy use, and community impacts.

3(5) A long-range investment program for current and future
4freight and passenger rail infrastructure in the state.

5(b) The Department of Transportation, pursuant to Section 14036
6of the Government Code, is responsible for the preparation of a
7state rail plan. Furthermore, the department has been designated
8by the Federal Railroad Administration as the responsible agency
9for development of the federally required state rail plan.

10(c) Implementation of any recommended passenger rail services
11identified in the plan is contingent upon a negotiated agreement
12between a freight rail operator and the passenger service sponsor
13or operator.

14(d) Used and unused capacity of freight railroads is important
15to the economic well-being of the state as it supports the state’s
16role as the nation’s gateway for international trade, provides an
17environmentally preferred alternative for the movement of goods,
18and supports employment opportunities in the goods movement
19logistics industry.


SEC. 2.  

Section 14036 of the Government Code is repealed.


SEC. 3.  

Section 14036 is added to the Government Code, to



(a) The department shall prepare a State Rail Plan.
24Pursuant to Section 22702 of Title 49 of the United States Code,
25the department is designated as the state rail transportation
26authority to prepare, maintain, coordinate, and administer the plan.

27(b) The passenger rail element shall contain all of the following:

28(1) A statement of compliance with the requirements set forth
29in the federal Passenger Rail Investment and Improvement Act of
302008begin delete (PRIIA; Publicend deletebegin insert (Publicend insert Law 110-432; 49 U.S.C. Sec. 22701
31et seq.).

32(2) Plans for a comprehensive and integrated statewide passenger
33rail system, including high-speed rail, conventional intercity and
34commuter rail, and connections to urban rail systems.

35(3) A review of all high-speed rail routes, the rail freight system,
36conventional intercity and commuter rail systems, and urban rail
37system connections to high-speed rail and conventional intercity
38and commuter rail systems, including a statement of the state’s
39passenger rail objectives for routes in the state.

P4    1(4) In consultation with the freight railroad industry, an
2identification of the improvements that have utility to both rail
3freight and passenger rail services in the state.

4(5) An inventory of the existing rail transportation system and
5rail services and facilities in the state, and an analysis of the role
6of rail transportation within the state’s overall transportation

8(c) The freight rail element shall containbegin insert discussions ofend insert all of
9the following:

10(1) Environmentalbegin delete aspectsend deletebegin insert impactsend insert that include air quality, land
11use, and community impacts.

12(2) Financing issues that includebegin delete aend deletebegin insert the plannedend insert means to obtain
13federal and state funding.

14(3) Rail issues that include regional, intrastate, and interstate

16(4) Intermodal connections that include seaports and intermodal

18(5) A statement of current system deficiencies.

19(6) Service objectives that improve efficiency, accessibility,
20and safety.

21(7) New technology that includes logistics and process

23(8) Light density rail line analyses that include traffic density,
24track characteristics, project selection criteria, and benefit-cost

26(d) The final plan shall be submitted to the Transportation
27Agency for approval pursuant to Section 22702 of Title 49 of the
28United States Code. On or before March 1, 2017, the approved
29plan shallbegin delete thereafterend delete be submitted to the Legislaturebegin insert pursuant to
30Section 9795end insert
, the Governor, the Public Utilities Commission, the
31High-Speed Rail Authority, and the commission.

32(e) The plan shall be updated, at a minimum, every five years


SEC. 4.  

Section 14036.2 of the Government Code is repealed.


SEC. 5.  

Section 14036.3 of the Government Code is repealed.


SEC. 6.  

Section 185033 of the Public Utilities Code is amended
37to read:



(a) The authority shall prepare, publish, adopt, and
39submit to the Legislature, not later than May 1, 2014, and every
40two years thereafter, a business plan. At least 60 days prior to the
P5    1publication of the plan, the authority shall publish a draft business
2plan for public review and comment. The draft plan shall also be
3submitted to the Senate Committee on Transportation and Housing,
4the Assembly Committee on Transportation, the Senate Committee
5on Budget and Fiscal Review, and the Assembly Committee on

7(b) (1) The business plan shall include, but need not be limited
8to, all of the following elements:

9(A) The type of service the authority is developing and the
10proposed chronology for the construction of the statewide
11high-speed rail systembegin insert, and the estimated capital costs for each
12segment or combination of segmentsend insert

13(B) Using the most recent patronage forecast for the system,
14develop a forecast of the expected patronage, service levels, and
15operating and maintenance costs for the Phase 1 corridor as
16identified in paragraph (2) of subdivision (b) of Section 2704.04
17of the Streets and Highways Code and by each segment or
18combination of segments for which a project level environmental
19analysis is being prepared for Phase 1. The forecast shall assume
20a high, medium, and low level of patronage and a realistic operating
21planning scenario for each level of service.

22(C) Based on the patronage forecast in subparagraph (A),
23develop alternative financial scenarios for the different levels of
24service, and identify the operating break-even points for each
25alternative. Each scenario shall assume the terms of subparagraph
26(J) of paragraph (2) of subdivision (c) of Section 2704.08 of the
27Streets and Highways Code.

28(D) Identify the expected schedule for completing environmental
29review, and initiating and completing construction for each segment
30or combination of segments of Phase 1.

begin delete

31(E) Identify the source of federal, state, and local funds available
32for the project that will augment funds from the bond act.

end delete
begin insert

33(E) An estimate and description of the total anticipated federal,
34state, local, and other funds the authority intends to access to fund
35the construction and operation of the system, and the level of
36confidence for obtaining each type of funding.

end insert

37(F) Identify written agreements with public or private entities
38to fund components of the high-speed rail system, including
39stations and terminals, and identify any impediments to the
40completion of the system.

P6    1(G) Identify alternative public-private development strategies
2for the implementation of Phase 1.

3(H) A discussion of all reasonably foreseeable risks the project
4may encounter, including, but not limited to, risks associated with
5the project’s finances, patronage, right-of-way acquisition,
6environmental clearances, construction, equipment, and technology,
7and other risks associated with the project’s development. The
8plan shall describe the authority’s strategies, processes, or other
9actions it intends to utilize to manage those risks.

10(2) To the extent feasible, the business plan should draw upon
11information and material developed according to other
12 requirements, including, but not limited to, the preappropriation
13review process and the preexpenditure review process in the Safe,
14Reliable High-Speed Passenger Train Bond Act for the 21st
15Century pursuant to Section 2704.08 of the Streets and Highways
16Code. The authority shall hold at least one public hearing on the
17business plan and shall adopt the plan at a regularly scheduled
18meeting. When adopting the plan, the authority shall take into
19consideration comments from the public hearing and written
20comments that it receives in that regard, and any hearings that the
21Legislature may hold prior to adoption of the plan.