BILL ANALYSIS �
AB 277
Page 1
Date of Hearing: April 25, 2011
ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
Steven Bradford, Chair
AB 277 (Galgiani) - As Amended: April 7, 2011
SUBJECT : High-speed rail: power supply.
SUMMARY : Requires the California Research Bureau (Bureau) to
develop an energy consumption profile that includes a forecast
and an analysis of any recommendations for power supply for the
high-speed rail system by May 1, 2012. Specifically, this bill:
1)Requires the Bureau to develop an energy consumption profile
that includes a forecast of the power needs of the high-speed
rail system and an analysis of any recommendations for
identifying carbon-free baseline power supply for the system
by May 1, 2012.
2)States the Bureau should work in consultation with the
High-Speed Rail Authority (Authority), the Federal Railroad
Administration, the California Public Utilities Commission
(PUC), the California Energy Commission (CEC), the United
States Department of Energy (DOE), and the Legislative
Analyst's Office (LAO).
3)Requires the Bureau to submit its report to the Authority,
Senate Committee on Transportation and Housing, the Assembly
Committee on Transportation, the Assembly Committee on
High-Speed Rail for California, and the Authority's
independent peer review group.
4)Finds and declares all of the following:
a. High-speed trains will alleviate the need to build
nearly 3,000 miles of new freeway, five airport runways,
and 91 airport departure gates in California, with an
avoided cost of nearly $100 billion dollars over the next
two decades;
b. Electricity powered high-speed trains reduce
pollutants and greenhouse gas emissions, and reliance on
fossil fuels. The California high-speed train system is
projected to result in emissions savings of 12 billion
pounds of CO2 in the year 2030, and this number would
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grow as ridership levels grow;
c. The high-speed rail system is projected to save 12.7
million barrels of oil per year by 2030, even with
projected future improvements in auto fuel efficiency.
d. At its September 2008 board meeting, the High-Speed
Rail Authority approved the following policy statement:
"The California High-Speed Rail Authority's policy goal
is to power the train by clean renewable energy, making
it the first true zero-emission train in the world."
e. It is essential to take the necessary steps to
ensure than an efficient and environmentally responsible
power supply is available for high-speed rail operations.
Currently, the PUC, the DOE and CEC have responsibility
for overseeing and regulating utility and energy company
activities in California.
f. It is the intent of the Legislature that
California's high-speed rail system shall be powered by
green electricity from renewable energy sources.
EXISTING LAW :
1)The California Constitution creates the CPUC and authorizes it
to fix rates and establish rules for the transportation of
passengers and property by transportation companies and for
all public utilities.
2)Creates the High-Speed Rail Authority to develop and implement
a high-speed rail system in the state, with specified powers
and duties.
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)Authorizes, through enactment of the American Recovery and
Reinvestment Act of 2009 (the recently enacted federal
economic stimulus package), $8 billion for high-speed rail
passenger services throughout the nation. Also, the federal
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stimulus package provides additional intercity and commuter
rail passenger discretionary funding that potentially could
benefit the state.
FISCAL EFFECT : Unknown.
COMMENTS : According to the author, "the development of
California's high-speed rail system is key as we move forward to
becoming a greener state. Equally important and conducive to
our green agenda, is our ability to understand and prepare for
the most efficient and effective means in powering all aspects
of high-speed rail. With proper planning, we can avoid the
energy crisis that took place in 2001."
1)Background : The proposed California high-speed rail passenger
train network consists of an
800+ mile high-speed rail system capable of a speed up to 220
miles per hour (mph), initially serving the major metropolitan
market of San Francisco through the Central Valley into Los
Angeles and Orange County (Phase 1). The system is required by
statute to transport people from San Francisco to Los Angeles in
two hours and forty minutes. Eventually the service would be
extended to Sacramento, the Inland Empire, and San Diego.
Further, improved rail service over the Altamont Corridor would
be implemented.
In August 2008, the Legislature passed and the Governor signed
AB 3034 (Galgiani), Chapter 267 that laid the framework for
improving the oversight of the Authority's high-speed rail
project. That bill also clarified and modified bond provisions
that were eventually approved by the California voters in
November 2008 with the passage of the Bond Act. With that
endorsement, $9.95 billion state general obligation bond funds
were authorized for eventual sale, providing initial capital
seed funds for the completion of the entire statewide system.
The law requires the Authority to pursue other federal, local,
and private funds to augment the state bond revenues.
Additionally, AB 3034 established significant oversight
processes and control mechanisms for the independent review and
approval of financing and engineering plans for the construction
of California's high-speed train system. Reporting and other
oversight mechanisms were also required by subsequent Budget Act
requirements.
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Following the statewide voter approval of the Bond Act
authorizing $9.95 billion for the development of a high-speed
rail system in California, the Authority is transitioning from a
small study and planning organization to a multi-billion dollar
engineering and construction entity. Together with the passage
of the Bond Act and California's approval and pending receipt of
$2.25 billion in federal ARRA high-speed rail funds, the
Authority will soon be tasked to approve major purchases of
train rolling stock and equipment.
2)Power supply : This bill would require the CRB, in
consultation with the FRA, the Authority,
PUC, DOE, the CEC, and the LAO, to develop an energy consumption
profile. The profile will detail the baseload and peak power
needs necessary to power and facilitate the system; and will
identify carbon-free base load power supply's available and
online when the system enters operation in 2020 and full
operation in 2030.
Current studies conducted by the Authority indicate that the
high-speed rail train will use approximately 3,380 GWh per year
by 2030. However, this estimate does not include all aspects of
the system such as the signaling system, radio network, truck
intrusion protection equipment, telecommunications, heavy
maintenance facilities, electrical needs for passenger services
on high-speed rail.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : DaVina Flemings / U. & C. / (916)
319-2083