Amended in Assembly April 11, 2016

Amended in Assembly April 4, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2847

Introduced by Assembly Member Patterson

February 19, 2016

An act to begin insert amend Section 185033 of, and to end insert add Section 185033.6 begin delete to end delete begin insert to, end insert the Public Utilities Code, relating to high-speed rail.

LEGISLATIVE COUNSEL’S DIGEST

AB 2847, as amended, Patterson. High-Speed Rail Authority: reports.

Existing law, the California High-Speed Rail Act, creates the High-Speed Rail Authority to develop and implement a high-speed rail system in the state, with specified powers and duties. Existing law requires the authority, on a biennial basis, to prepare a business plan containing specified elements and also requires the preparation of various other reports.

This begin delete bill, in each of these reports, would require the authority, by segment, to provide an explanation of adjusted costs and schedules in each situation in which the authority has approved a change in the scope or sequencing of the high-speed rail project since the issuance of the previous report, as specified. The bill would also require the authority to identify all estimated financing and administrative costs associated with construction of the high-speed rail system in the biennial business plan. end delete begin insert bill would require the business plan to identify projected financing costs for each segment or combination of segments of the high-speed rail system, if financing is proposed by the authority. The bill, in the business plan and in another report, would require the authority to identify any significant changes in scope for segments of the high-speed rail system identified in the previous version of each report and to provide an explanation of adjustments in cost and schedule attributable to the changes. end insert

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

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 185033 of the end insert begin insert Public Utilities Code end insert begin insert is
amended to read: end insert

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) A description of the 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.

begin insert

(B) Projected financing costs, if financing is proposed for a
segment or combination of segments.

end insert begin delete

(B)

end delete

begin insert (C) end insert  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.

begin delete

(C)

end delete

begin insert (D) end insert  Alternative financial scenarios for different levels of service,
based on the patronage forecast in subparagraph begin delete (B) end delete begin insert (C) end insert , and 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.

begin delete

(D)

end delete

begin insert (E) end insert  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)

end delete

begin insert (F) end insert  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.

begin delete

(F)

end delete

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

begin delete

(G)

end delete

begin insert (H) end insert  Alternative public-private development strategies for the
implementation of Phase 1.

begin delete

(H)

end delete

begin insert (I) end insert  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.

begin delete SECTION 1. end delete

begin insert SEC. 2. end insert   

Section 185033.6 is added to the Public Utilities Code,
to read:

185033.6.  

begin delete (a) end delete begin delete   end delete The authority, in each report prepared pursuant
to Sections 185033 and 185033.5, begin delete and in each other report required
by the Legislature pursuant to the annual Budget Act or in
association with appropriations provided to the authority, shall end delete begin delete provide an explanation of adjusted costs and schedules in each
situation in which the authority has approved a change in the scope
or sequencing of the high-speed rail project since the issuance of
the previous report prepared in response to the applicable reporting
requirement. With respect to any segment of the high-speed rail
project that the authority is proposing to deliver as the current
highest priority, the explanation shall clearly detail the estimated
costs for each segment in a manner that allows the current
estimated costs for the segment to be directly compared to the cost
estimates previously provided by the authority in the
immediately-prior report for the same segment end delete begin insert shall identify any
significant changes in scope for segments identified in the previous
version of each report and shall provide an explanation of
adjustments in cost and schedule attributable to these changes end insert .

begin delete

(b) The authority, in the business plan prepared pursuant to
Section 185033, shall identify all estimated financing and
administrative costs associated with construction of the planned
high-speed rail system as contemplated by the authority at the time
that the business plan is prepared.

end delete