BILL ANALYSIS                                                                                                                                                                                                    �



                            SENATE AGRICULTURE COMMITTEE
                         Senator Anthony Cannella, Chairman

          BILL NO:    AB 292                    HEARING:  07/05/11
          AUTHOR:   Galgiani                    FISCAL:  Yes
          VERSION:  05/27/11                    CONSULTANT:  John Chandler
          
                        High-speed rail: agricultural lands.

          BACKGROUND AND EXISTING LAW

          The California High-Speed Rail Authority (authority) was 
          established by SB 1420 (Kopp), Chapter 796, Statutes of 1996, 
          for the purpose of directing the development and implementation 
          of high-speed train service in California.  The law creates a 
          nine-member governing with board five appointed by the Governor, 
          two appointed by Senate Rules Committee, and two appointed by 
          the Speaker of the Assembly to provide policy direction to the 
          authority staff.  

          AB 3034 (Galgiani), Chapter 267, Statutes of 2008, authorized 
          the Safe, Reliable High-Speed Passenger Train Bond Act for the 
          21st Century (Proposition 1A).  The bill authorized $9.95 
          billion in general obligation bonds to support the authority in 
          developing a high-speed rail system extending from San Diego to 
          Sacramento.  Phase I would connect Anaheim, Los Angeles Union 
          Station, Bakersfield, Fresno, San Jose, and the San Francisco 
          Transbay Terminal.  Proposition 1A was passed by the people in 
          2008.

          The federal government has awarded approximately $3.9 billion in 
          additional funds to support California high-speed rail.  The 
          federal funding is contingent upon the project beginning in the 
          Central Valley, which prompted the authority to begin 
          construction on an approximately 120 mile segment that extends 
          from Bakersfield to north of Fresno.  Despite a May 2011 
          recommendation by the state's Legislative Analyst's Office that 
          the authority reconsider where to begin high-speed rail to 
          optimize potential statewide benefits, the U.S. Department of 
          Transportation has maintained the federal funding requirement to 
          start high-speed rail in the Central Valley.  The authority 
          plans to make right-of-way purchases and begin construction on 
          the Central Valley segment in 2012.

          The impacted agricultural community has raised many concerns 
          regarding the impact of a new high-speed rail alignment through 
          agricultural property.  These concerns include:

                 Potential reduction in planted acreage available for 




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               farming. 
                 Splitting a parcel with the right-of-way, which would 
               render some parcels unfarmable reducing both the 
               profitability of the parcel and the parcel land value.
                 Splitting water supply access to farms with the 
               right-of-way.  Some new wells would have to be developed.  
               New canals and other conveyance systems would have to be 
               established.
                 Increasing costs of operation due to the longer 
               distances needed to travel around the right-of-way.
                 Loss of agriculture jobs and related agribusiness jobs 
               due to lost acreage.

          PROPOSED LAW

          AB 292 would do the following:  

             1.   Require the High-Speed Rail Authority to appoint an 
               agricultural advisory committee to advise the authority on 
               the impact of their policies, plans, and procedures on the 
               agricultural community.  

             2.   Specify that the agricultural advisory committee will be 
               made up of nine members appointed by the authority from a 
               list of nominees recommended by the Secretary of Food and 
               Agriculture, who are active in a farming enterprise or in 
               an agricultural or related trade organization and have 
               technical expertise in farm-related activities.

             3.   Require the authority to consult with the agricultural 
               advisory committee prior to adopting any policy relevant to 
               agriculture and reflect the comments of the committee in 
               any action item that is before the authority.

             4.   Require the authority to provide written responses to 
               the agricultural advisory committee comments and distribute 
               those responses to the authority board and agricultural 
               advisory committee.

             5.   Make legislative findings and declarations.

          COMMENTS

          1.According to the author, AB 292 is a response to the November 
            2, 2010, letter to the authority from various agricultural 
            groups regarding concerns of impact that the rail alignment 
            would have on agricultural lands.  While the authority has 





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            stated that their goal is to preserve agricultural lands and 
            have a minimum impact, agricultural groups feel that the 
            authority is not following their stated goal have and been 
            unresponsive to agricultural concerns.  By creating an 
            agricultural advisory committee and requiring the authority to 
            inform the authority board of the committee's concerns, AB 292 
            ensures that agriculture will be an element under 
            consideration in the planning of the high-speed rail system.  
            It is the intent of AB 292 to require the authority to develop 
            plans that consider and minimize the impact on agriculture 
            land.

          2.AB 292 specifies that the agricultural advisory committee made 
            up of members active in a farming enterprise or in an 
            agricultural or related trade organization.  California 
            agriculture is more than just farmers and agriculture trade 
            organizations.  The committee may wish to consider if anyone 
            involved in any agricultural enterprise should be eligible to 
            be a member of the advisory committee.

          3.During a March 17 joint oversight hearing of the Assembly 
            Select Committee on High-Speed Rail and the Assembly Committee 
            on Agriculture, the authority stated that they were going to 
            establish two agricultural advisory groups an agricultural 
            leadership group and an agricultural technical group.  Since 
            the authority has already committed to establishing 
            agricultural advisory groups, AB 292 seems redundant and 
            unnecessary.  If the authority has failed to follow through 
            with their commitment at the March 17 hearing, it would appear 
            there may be a larger administrative failure with the 
            authority not keeping commitments to the legislature or the 
            public.  The committee may wish to consider if this bill is 
            necessary since the authority already has the ability and has 
            committed to establishing agricultural advisory groups.

          PRIOR ACTIONS

          Senate Transportation & Housing  6-1
          Assembly Floor      70-4
          Assembly Appropriations  12-5
          Assembly Transportation  14-0


          SUPPORT
          
          California Farm Bureau Federation






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          OPPOSITION
          
          None received