BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 292|
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                                 THIRD READING


          Bill No:  AB 292
          Author:   Galgiani (D), et al.
          Amended:  8/16/11 in Senate
          Vote:     27 - Urgency

           
           SENATE TRANSPORTATION & HOUSING COMMITTEE  :  6-1, 6/28/11
          AYES:  DeSaulnier, Harman, Huff, Lowenthal, Rubio, Simitian
          NOES:  Gaines
          NO VOTE RECORDED:  Kehoe, Pavley

           SENATE AGRICULTURE COMMITTEE  :  4-1, 7/5/11
          AYES:  Cannella, Rubio, Vargas, Wolk
          NOES:  La Malfa
          NO VOTE RECORDED:  Berryhill, Evans

           SENATE APPROPRIATIONS COMMITTEE  :  6-3, 8/25/11
          AYES:  Kehoe, Alquist, Lieu, Pavley, Price, Steinberg
          NOES:  Walters, Emmerson, Runner
           
          ASSEMBLY FLOOR  :  70-4, 6/2/11 - See last page for vote


           SUBJECT  :    High-speed rail:  agricultural lands

           SOURCE  :     Author


           DIGEST  :    This bill requires the High-Speed Rail Authority 
          to appoint a nine-member agricultural advisory committee to 
          consult with prior to adopting any policy relevant to 
          agriculture. 

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           ANALYSIS  :    SB 1420 (Kopp), Chapter 796, Statutes of 1996, 
          created the High-Speed Rail Authority (Authority) with a 
          nine-member governing board, including five members 
          appointed by the Governor, two members appointed by the 
          Senate Rules Committee, and two members appointed by the 
          Speaker of the Assembly.

          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, with Phase I 
          connecting Anaheim-Los Angeles Union 
          Station-Bakersfield-Fresno-San Jose-San Francisco Transbay 
          Terminal.  In November 2008, the people passed Proposition 
          1A.
           
           This bill: 

          1. Requires the Authority to appoint a nine member 
             agricultural advisory committee for the purpose of 
             advising the Authority on the impact of their policies, 
             plans, practices, and procedures on the agricultural 
             community.  Specifies the membership of the committee 
             shall change to reflect areas affected by each planning 
             phase.

          2. Requires the Authority to select members from a list of 
             nominees, recommended by the Secretary of Food and 
             Agriculture, who are active in a farming or agricultural 
             enterprise or in an agricultural or related trade 
             organization and have technical expertise in 
             farm-related activities. 

          3. Requires the Authority to consult with the agricultural 
             advisory committee prior to adopting any policy relevant 
             to agriculture, respond to any comments made by the 
             committee, and reflect the committee's comments in staff 
             reports for actions brought before the Authority board.
          
           Initial high-speed rail segment proposed for the Central 
          Valley  .  In addition to the $9.95 billion in state bond 
          funds from Proposition 1A, the Authority has also been 

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          awarded approximately $3.9 billion from the federal 
          government to support the project.  The federal government 
          awarded this money under the contingency that the project 
          begin in the Central Valley.  Therefore, the Authority has 
          elected to begin construction on a roughly 120-mile segment 
          that extends from just north of Fresno to Bakersfield.  The 
          Department of Transportation maintained this contingency 
          for the use of federal money despite a May 2011 
          recommendation by the state's Legislative Analyst's Office 
          that the Authority reconsider where the project begin based 
          on criteria that optimizes potential statewide benefits.  
          The Authority plans to make right-of-way purchases and 
          begin construction on the segment in 2012.

           Agriculture as a leading industry in California and the 
          Central Valley  .  California agriculture, on a whole, 
          generates nearly $35 billion in annual revenue.  The 
          counties of Fresno, Tulare, Kern, and Merced are the top 
          counties in agricultural sales in the state and the nation, 
          with sales exceeding $12 billion.  Considering both direct 
          farm employment and indirect employment in the agricultural 
          industry, agriculture accounts for 25 percent of the 
          employment of the Central Valley, with every $1 billion in 
          agricultural exports contributing to 27,000 jobs.

           Concerns of the agricultural community over high-speed 
          rail  .  Concerns of the agricultural community include the 
          following:

            Compensation  .  Whether the Authority acquires the land 
            through negotiation or by condemnation, farmers do not 
            know whether they will be paid only for the value of the 
            land or also the future lost income from permanent crops, 
            like grapes, tree fruit, and nuts, which have production 
            lifespans of 40 or more years.  Aside from the business 
            implications of farmland loss and just compensation, 
            there can be intrinsic value tied to land that is a 
            multi-generational farm.

            Farmland conversion  .  The Authority has stated that, 
            based on a right-of-way width of 100 feet, high-speed 
            rail will remove from farm production approximately 20 
            acres per mile of track.  Nevertheless, the potential for 
            farmland conversion should be realized as more than just 

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            what is needed for right-of-way, as elaborated in points 
            below. 

            Diagonal cutting of parcels  .  Proposed routes ignore 
            property lines, diagonally cutting parcels and rendering 
            some unfarmable. 

            Irrigation systems  .  Interrupted irrigation canals will 
            be costly to reconfigure because water currently travels 
            by gravity pull.  Should the flow be interrupted, pumps 
            will be needed to deliver water to homes and farms.  
            Additionally, if wells are located on unfarmable parcels, 
            then new wells will be needed. 

            Chemical applications  .  According to law, chemical 
            applications must be applied at a wind speed of less than 
            10 miles per hour.  Should the speed of wind increase, a 
            farmer must wait until conditions are favorable to resume 
            spray applications.  Additionally, chemical drift to 
            passenger vehicles is prohibited by law; and thus, 
            chemical applications are often made at night or before 
            dawn.  High-speed trains running day and night at 220 
            miles per hour will present challenges for chemical 
            applications because of their frequency and speed of 
            travel.

            Bee pollination  .  Permanent orchard crops require bee 
            pollination, but bees will only work under particular 
            temperature and wind conditions.  Fast trains could 
            disrupt bee activity, which would decrease pollination 
            success and cropping.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

           Major Provisions      2011-12     2012-13     2013-14        Fund  

          High-Speed Rail Authority     $20-$40                  
          Bond*
          consult/comment

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          Department of Food &          up to $35 for each round of 
          nominations         General
          Agriculture nominations

          * High-Speed Passenger Train Bond Fund
           
           SUPPORT  :   (Verified  8/24/11)

          California Farm Bureau Federation

           ARGUMENTS IN SUPPORT  :    According to the author's office, 
          this bill is a modest proposal that will go a long way in 
          helping the agricultural community and the Authority work 
          together in identifying and resolving potential impacts of 
          the high-speed rail project on agricultural lands.  This 
          bill will ensure that agricultural-related concerns are 
          sufficiently considered by the Authority prior to adopting 
          any policy or taking any action that would impact the 
          agricultural community.  The agricultural community has 
          been vocal about how the Authority's choices for rail 
          alignment will impact prime agricultural lands and family 
          farming operations.  On September 2, 2010,        
          agricultural trade groups sent a letter to the Authority's 
          board raising concerns about the proposed routes and the 
          impacts on agricultural lands.  In response to that letter 
          and to the concerns raised by Central Valley interests, a 
          joint informational hearing was held by the Assembly Select 
          Committee on High-Speed Rail and the Assembly Committee on 
          Agriculture to explore the impacts of high-speed rail on 
          agricultural lands.  At that hearing, the Authority's Chief 
          Executive Officer stated his intent to create an 
          Agricultural Leadership Committee and Agricultural 
          Technical Committee to advise the Authority on issues 
          related to                                        
          agricultural impacts.  This bill is the result of that 
          hearing and furthers the Authority's stated goal. 


           ASSEMBLY FLOOR  :  70-4, 6/2/11
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Charles Calderon, Campos, Carter, 
            Cedillo, Chesbro, Cook, Davis, Dickinson, Donnelly, Eng, 

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            Feuer, Fletcher, Fong, Fuentes, Furutani, Beth Gaines, 
            Galgiani, Garrick, Gatto, Gordon, Hagman, Harkey, 
            Hayashi, Roger Hern�ndez, Hill, Huber, Hueso, Huffman, 
            Jeffries, Jones, Lara, Logue, Bonnie Lowenthal, Ma, 
            Mendoza, Miller, Mitchell, Morrell, Nestande, Norby, 
            Olsen, Pan, Perea, V. Manuel P�rez, Portantino, Silva, 
            Skinner, Smyth, Solorio, Swanson, Torres, Valadao, 
            Wagner, Wieckowski, Williams, Yamada, John A. P�rez
          NOES:  Grove, Knight, Mansoor, Nielsen
          NO VOTE RECORDED:  Butler, Conway, Gorell, Halderman, Hall, 
            Monning


          JJA:mw  8/26/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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