Amended in Senate June 4, 2013

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 begin delete Plan: end delete begin insert Plan and end insert High-Speed Rail Authority business plan.

(1) Existing law requires the Department of Transportation to prepare a 10-year State Rail Plan biennially begin delete for submission to the Legislature, Governor, and specified entities end delete begin insert , and requires the department to submit the State Rail Plan to the California Transportation Commission for its advice and consent on or before October 1 of each odd-numbered year prior to submitting the State Rail Plan to the Legislature, the Governor, and other entities by the following March end insert . Existing law requires the plan to consist 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 begin delete specified end delete business plan, begin delete with end delete begin insert that includes end insert 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 begin delete and recast end delete the items required to be included in the begin delete 2 elements of the end delete State Rail Plan and begin delete in the elements of end delete the business plan begin delete , and would eliminate the 10-year timeframe for the State Rail Plan end delete . begin insert The bill would require the State Rail Plan to be submitted to the commission for advice 6 months prior to submitting the final State Rail Plan to the Transportation Agency for approval, and, on or before March 1, 2017, would require the approved State Rail Plan to be submitted to the Legislature, the Governor, and other specified entities. The bill would require the state rail plan to be updated, at a minimum, every 5 years. end insert The bill would change, from January 1 to May 1 of each even-numbered year, the date by which the High-Speed Rail Authority is required to prepare, publish, adopt, and submit the business plan to the Legislature.

(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 (49 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. begin insert The
plan shall be submitted to the California Transportation
Commission for its advice six months prior to the submission of
the plan pursuant to subdivisions (c) and (d). end insert 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 begin delete passenger rail element end delete begin insert plan end insert 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 (Public 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. begin insert Related to
the conventional intercity passenger rail program, these plans
shall include all of the following: end insert

begin insert

(A) Recommendations for service levels of, and a capital
program for, existing and proposed intercity passenger rail
services over a 10-year period, including a list of service
enhancements on existing and additional routes, with
recommendations regarding funding and priority. The plans shall
explain how the recommended service levels support the
comprehensive and integrated passenger rail system.

end insert begin insert

(B) All actual capital and operating expenditures over the prior
five years.

end insert begin insert

(C) All proposed capital and operating expenditures for the
next five years.

end insert begin insert

(D) A performance evaluation for the prior five years for each
existing route.

end insert begin insert

(E) A discussion of fare policies and practices.

end insert

(3) A review of all high-speed rail routes, the rail freight system,
conventional intercity and commuter begin insert passenger end insert rail systems, and
urban rail system connections to high-speed rail and conventional
intercity and commuter begin insert passenger end insert 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.

begin delete

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

end delete begin insert

(6) A freight rail element that contains all of the following:

end insert begin delete

(1)

end delete

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

begin delete

(2)

end delete

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

begin delete

(3)

end delete

begin insert (C) end insert  Rail issues that include regional, intrastate, and interstate
issues.

begin delete

(4)

end delete

begin insert (D) end insert  Intermodal connections that include seaports and intermodal
terminals.

begin delete

(5)

end delete

begin insert (E) end insert  A statement of current system deficiencies.

begin delete

(6)

end delete

begin insert (F) end insert  Service objectives that improve efficiency, accessibility,
and safety.

begin delete

(7)

end delete

begin insert (G) end insert  New technology that includes logistics and process
improvement.

begin delete

(8)

end delete

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

begin delete

(d)

end delete

begin insert (c) end insert  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 be submitted to the Legislature pursuant to Section 9795,
the Governor, the Public Utilities Commission, the High-Speed
Rail Authority, and the commission.

begin delete

(e)

end delete

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

(B)  begin delete Using the most recent patronage forecast for the system,
develop a end delete begin insert A end insert 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)  begin delete Based on the patronage forecast in subparagraph (A),
develop alternative end delete begin insert Alternative end insert financial scenarios for begin delete the end delete different
levels of service, begin insert based on the patronage forecast in subparagraph
(B), end insert and begin delete identify end delete 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)  begin delete Identify the end delete begin insert The end insert expected schedule for completing
environmental review, and initiating and completing construction
for each segment or combination of segments of Phase 1.

(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.

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

(G)  begin delete Identify alternative end delete begin insert Alternative end insert 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.