BILL ANALYSIS Ó AB 528 Page 1 Date of Hearing: April 22, 2013 ASSEMBLY COMMITTEE ON TRANSPORTATION Bonnie Lowenthal, Chair AB 528 ( Lowenthal) - As Amended: April 25, 2013 SUBJECT : State Rail Plan and High-Speed Rail Business Plan SUMMARY : Deletes, recasts, and modifies the requirements of the State Rail Plan (rail plan) and clarifies requirements of the California High-Speed Rail Business Plan (business plan). Specifically, this bill : 1)Makes findings and declarations recognizing the federal Passenger Rail Investment and Improvement Act of 2008 (PRIIA) requirements for states to develop rail plans in order to be eligible for federal rail capital grants. 2)Establishes that the California Department of Transportation (Caltrans) is responsible for the preparation of the rail plan and is designated as the responsible agency for the development of the federally required rail plan. 3)Requires Caltrans to prepare the rail plan and, pursuant to PRIIA, designates it as the state rail transportation authority to prepare, maintain, coordinate, and administer the rail plan. 4)Specifies the requirements for the passenger rail element to include the following: a) A statement of compliance with PRIIA; b) 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; c) 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; AB 528 Page 2 d) An identification of the improvements that have utility to both rail freight and passenger rail services in the state, performed in consultation with the freight railroad industry; and, e) 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. 1)Requires the freight rail element to discuss all of the following: a) Environmental impacts that include air quality, land use, and community impacts; b) Financing issues that include the planned means to obtain federal and state funding; c) Rail issues that include regional, intrastate, and interstate issues; d) Intermodal connections that include seaports and intermodal terminals; e) A statement of current system deficiencies; f) Service objectives that improve efficiency, accessibility, and safety; g) New technology that includes logistics and process improvement; and, h) Light density rail line analyses that include traffic density, track characteristics, project selection criteria, and benefit-cost criteria. 1)Requires the final rail plan to be submitted to the Transportation Agency for approval and requires the approved plan be submitted, on or before March 1, 2017, to the Legislature, the Governor, the Public Utilities Commission, the California High-Speed Rail Authority (HSRA), and the California Transportation Commission. 2)Requires the rail plan to be updated every five years AB 528 Page 3 thereafter, at a minimum. 3)Deletes requirements for obsolete elements of the rail plan relative to decrepit rail passenger stations and special amenities for service on the San Joaquin intercity rail passenger service. 4)Revises, for clarification and elimination of redundancies, the elements of the HSRA business plan. 5)Requires the business plan to be submitted to the Legislature May 1, 2014, and every two years thereafter. EXISTING LAW : 1)Requires Caltrans to prepare a ten-year rail plan to be updated biennially. The report is required to be submitted by March 31 of every even-numbered year. (Note: With the advent of new federal requirements for state rail plans, Caltrans notified legislative policy committees that the 2012 report would be delayed so that new federal state rail plan requirements could be incorporated. That new plan has been developed and is being circulated for review and comment.) 2)Under the federal PRIIA, establishes a federal policy for intercity passenger rail that includes a federal capital grant program and new requirements for state rail plans. Conditions submittal of federal capital grant applications upon completed state rail plans. Requires state rail plans to be updated every five years. 3)Enacts the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century (High-Speed Rail Bond Act). The High-Speed Rail Bond Act, approved as Proposition 1A in November 2008, provides $9.95 billion in general obligation bond authority to fund the planning and construction of a high-speed passenger train system and complementary improvements to other specified rail systems in the state. 4)Requires Caltrans to identify in the rail plan the three most decrepit intercity rail passenger stations in the state used by trains operated by the National Railroad Passenger Corporation (Amtrak). 5)Requires Caltrans to consider and estimate the cost of service AB 528 Page 4 improvements to the San Joaquin Amtrak intercity rail passenger route relative to baggage check-in, custom class service, and dining service, and report its findings in the rail passenger development plan submitted in 1991. 6)Requires HSRA to prepare a business plan by January 1, 2012, that includes the types of services it expects to develop, a description of the system's benefits, a patronage forecast, the sources of funds to construct and operate the project, the chronology for construction of the corridors in which it will operate, the risk associated with construction, technology, financing and other aspects of the project, and the HSRA's strategy for managing risks. FISCAL EFFECT : Unknown COMMENTS : Successful rail development depends on the integration of various modes of transportation-including intercity, commuter and urban rail transit, as well as the state and local roadway network. According to the author, the rail plan prepared by Caltrans and the business plan prepared by HSRA are in need of revision to reflect new requirements as proposed by federal law, as well to modify them to be more streamlined and efficient. State Rail Plan: Since 1995, Caltrans has prepared a 10-year intercity rail transportation plan, which it updates biennially. Caltrans submits the plan to the California Transportation Commission for its "advice and consent" and then forwards it the Governor, Legislature, and the California Public Utilities Commission. The federal Passenger Rail Investment and Improvement Act of 2008 (PRIIA) establishes requirements for state rail plans, including the requirement for updates every five years. PRIIA also conditions submittal of federal capital grant applications upon completed state rail plans. This bill would align the policies and schedules for the state plan with the federal requirements. Additionally, obsolete rail plan reporting requirements are to be deleted in reference to decrepit rail stations and extra amenities for the San Joaquin Amtrak intercity rail passenger services. HSRA Business Plan: Under current law, HSRA is required to AB 528 Page 5 prepare and submit their business plan to the Legislature by January 1, 2012. Further, the law specifies the required elements of the business plan, several of which are redundant and overlapping. This bill establishes a reporting deadline of May 1, 2014 for the biennial submission of the business plan and also cleans up some of its reporting elements to eliminate redundancies. Related bills: SB 1117 (DeSaulnier), of 2012, would have modified the requirements of the rail plan. That bill was vetoed by the governor who indicated that the Transportation Agency will take the lead in planning a comprehensive state rail system. SB 783 (Ashburn) Chapter 618, Statutes of 2009, modified the requirements and schedule for the HSRA business plan. REGISTERED SUPPORT / OPPOSITION : Support Union Pacific Railroad Opposition None on file Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093