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 Bill No. 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.

LEGISLATIVE COUNSEL’S DIGEST

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

(1) Existing law requires the Department of Transportation to prepare a begin delete 10-year end delete begin insert 10-year end insert State Rail Plan biennially for submission to the Legislature, Governor, and specified entities. begin delete The end delete begin insert E end insert begin insert xisting law requires the end insert plan begin delete consists end delete begin insert to consist end 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 the begin delete 10-year end delete State Rail Plan begin 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 change begin insert , from January 1 to May 1 of each even-numbered year, end insert the begin delete first end delete date begin delete to May 1, 2014, end delete by which the High-Speed Rail Authority is required to prepare, publish, adopt, and submit begin insert the business plan end insert to the Legislature begin delete the business plan. The bill would also make changes to the elements required to be included in the business plan end 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:

SECTION 1.  

The Legislature finds and declares all of the
following:

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

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

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

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

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

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

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

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

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

SEC. 2.  

Section 14036 of the Government Code is repealed.

SEC. 3.  

Section 14036 is added to the Government Code, to
read:

14036.  

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

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

(1) A statement of compliance with the requirements set forth
in the federal Passenger Rail Investment and Improvement Act of
2008 begin delete (PRIIA; Public end delete begin insert (Public end insert Law 110-432; 49 U.S.C. Sec. 22701
et seq.).

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

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

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

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

(c) The freight rail element shall contain begin insert discussions of end insert all of
the following:

(1) Environmental begin delete aspects end delete begin insert impacts end insert that include air quality, land
use, and community impacts.

(2) Financing issues that include begin delete a end delete begin insert the planned end insert means to obtain
federal and state funding.

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

(4) Intermodal connections that include seaports and intermodal
terminals.

(5) A statement of current system deficiencies.

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

(7) New technology that includes logistics and process
improvement.

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

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

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

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
to read:

185033.  

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

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

(A) The type of service the authority is developing and the
proposed chronology for the construction of the statewide
high-speed rail system begin insert , and the estimated capital costs for each
segment or combination of segments end insert .

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

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

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

begin delete

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

end delete begin insert

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

end insert

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

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

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

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