BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 528| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 528 Author: Lowenthal (D) Amended: 6/4/13 in Senate Vote: 21 SENATE TRANSPORTATION & HOUSING COMMITTEE : 10-0, 6/11/13 AYES: DeSaulnier, Gaines, Beall, Cannella, Galgiani, Hueso, Lara, Liu, Pavley, Wyland NO VOTE RECORDED: Roth SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 53-20, 5/20/13 - See last page for vote SUBJECT : State rail planning SOURCE : Author DIGEST : This bill makes several changes to the required contents of and timelines for the state rail plan and the high-speed rail business plan. ANALYSIS : California State Rail Plan Since 2008, federal law has required states to adopt comprehensive rail plans in order to be eligible for new federal rail capital grants. CONTINUED AB 528 Page 2 The California Department of Transportation (Caltrans) must submit biennially a 10-year state rail plan to the Legislature, governor, California Public Utility Commission, and California Transportation Commission (CTC). Existing law requires Caltrans to submit the plan to the CTC for its advice and consent six months prior to submission to the other recipients. The rail plan consists of a passenger and a freight element and existing law is very prescriptive as to the plan's contents. Specifically, the passenger element of the plan must, among other things, include: Actual capital and operating expenditures and revenues by source for the prior two years; Proposed capital and operating expenditures for the next ten years; Identification and cost of capital facilities necessary to enhance the state intercity rail program's competitiveness; A discussion of fare policies and practices, including proposals that would maximize ridership and revenues; A performance evaluation of all intercity rail services over the prior two years; A map showing all existing and proposed intercity and commuter rail routes and services; An evaluation of reports by regional planning agencies on commuter service alternatives; and A report on overall marketing strategy and marketing activity expenditures. Existing law requires CTC to include capital investments in the intercity passenger rail plan and in regional and urban rail transit programs in the State Transportation Improvement Program (STIP), the state's five-year transportation capital outlay program. The CTC updates and adopts the STIP every two years. High-Speed Rail Business Plan CONTINUED AB 528 Page 3 The Legislature created the High-Speed Rail Authority (HSRA) to direct the development and implementation of a fully integrated intercity high-speed rail service in the state. In 2009, the Legislature passed and the governor signed into law SB 783 (Ashburn, Chapter 618, Statutes of 2009), requiring HSRA to submit to the Legislature a business plan by January 1, 2012, and every two years thereafter. Specifically, existing law requires the high-speed rail business plan to include: Identification of the type of service HSRA plans to develop; A description of primary benefits the service will provide; A forecast of anticipated ridership, as well as capital, operating, and maintenance costs; An estimate and description of total anticipated federal, state, local, and other funds intended to fund the construction and operation of the system; The proposed construction timeline for all eligible corridors statewide; A discussion of all reasonably foreseeable risks, including financial, ridership, right-of-way acquisition, environmental clearances, construction, equipment, and technology; and The authority's strategies or processes to manage those risks identified. This bill makes several changes to required contents of and timelines for the state rail plan and the high-speed rail business plan, as follows: 1.Related to the state rail plan, this bill: A. Designates Caltrans as the state rail transportation authority pursuant to federal law; B. Requires the plan to be updated, at a minimum, every five years instead of every two years; CONTINUED AB 528 Page 4 C. Requires the Secretary of the Transportation Agency to approve the plan before submittal; and D. Requires the passenger rail element to include: A statement of compliance with federal law; Plans for a comprehensive and integrated statewide passenger rail system, including a discussion of the performance of and recommendations for the intercity passenger rail program; A review of all high-speed rail routes, the rail freight system, conventional intercity and commuter rail systems; and A freight rail element discussing various financial and service issues. 1.Related to the high-speed rail business plan, this bill: A. Moves the deadline for the plan from January 1 to May 1 of every even year; and B. More clearly describes the required elements of the plan. Comments According to the author, statutes describing the Caltrans rail plan and HSRA's business plan are in need of revision to reflect new federal requirements, as well as to make the development of the plans more streamlined and efficient. Successful rail development depends on the integration of various modes of transportation, and these plans are critical to the state's integration efforts of these modes. Changes to state rail plan should improve it. The Legislature added many of the requirements in existing law for the state rail plan in the mid-1990's, so they are focused on specific issues Caltrans faced then relating to the intercity rail program that Caltrans has since addressed. For example, existing law requires Caltrans to include in its biennial rail plan a discussion of the impacts of adding checked baggage and CONTINUED AB 528 Page 5 dining service to the intercity rail service through the Central Valley. Caltrans has extensively studied the issue, and it is no longer necessary to include it in the rail plan. In addition, the federal government now includes requirements for all state rail plans that are not included in existing state law. This bill removes many of the unnecessary state rail plan requirements and better aligns state law with federal requirements. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No SUPPORT : (Verified 6/25/13) Union Pacific Railroad ASSEMBLY FLOOR : 53-20, 5/20/13 AYES: Achadjian, Alejo, Ammiano, Atkins, Bloom, Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chesbro, Cooley, Daly, Dickinson, Eggman, Fong, Frazier, Garcia, Gatto, Gomez, Gordon, Gray, Hall, Roger Hernández, Levine, Linder, Lowenthal, Medina, Mitchell, Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Perea, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Skinner, Stone, Ting, Weber, Wieckowski, Williams, Yamada, John A. Pérez NOES: Allen, Bigelow, Chávez, Conway, Dahle, Donnelly, Beth Gaines, Grove, Hagman, Harkey, Jones, Maienschein, Mansoor, Melendez, Morrell, Patterson, Salas, Wagner, Waldron, Wilk NO VOTE RECORDED: Fox, Gorell, Holden, Jones-Sawyer, Logue, Vacancy, Vacancy JA:nl 6/25/13 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED