BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 615|
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                                 THIRD READING


          Bill No:  AB 615
          Author:   Bonnie Lowenthal (D), et al.
          Amended:  9/2/11 in Senate
          Vote:     21

           
           SENATE TRANSPORTATION & HOUSING COMMITTEE  :  6-2, 7/5/11
          AYES:  DeSaulnier, Huff, Kehoe, Lowenthal, Pavley, Rubio
          NOES:  Gaines, Harman
          NO VOTE RECORDED:  Simitian

           SENATE APPROPRIATIONS COMMITTEE  :  6-3, 8/25/11
          AYES:  Kehoe, Alquist, Lieu, Pavley, Price, Steinberg
          NOES:  Walters, Emmerson, Runner

           ASSEMBLY FLOOR  :  Not relevant


           SUBJECT  :    High-speed rail

           SOURCE  :     Author


           DIGEST  :    This bill appropriates $4 million for planning 
          phase II high-speed rail service between Los Angeles and 
          San Diego via Riverside. 

           Senate Floor Amendments  of 9/2/11 delete all language in 
          the bill except for a $4 million appropriation for 
          high-speed rail planning.

           ANALYSIS  :    In November 2008, California voters approved 
          Proposition 1A, the Safe, Reliable High-Speed Passenger 
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          Train Bond Act for the 21st Century of 2008 (Proposition 
          1A).  The $9.95 billion bond measure provides $950 million 
          for improving conventional rail services connecting to the 
          high-speed rail line and $9 billion for high-speed rail 
          development.  Of the remaining $9 billion, $900 million is 
          for the project's planning, environmental analysis, and 
          preliminary engineering.  Proposition 1A limits the 
          expenditure of the $8 billion available for construction to 
          not more than 50 percent of the cost of building the 
          systems.  Proposition 1A identifies the Phase I corridor 
          for high-speed rail as an alignment from the San Francisco 
          Transbay Terminal to the Los Angeles Union State and 
          Anaheim via the San Joaquin Valley.  The total estimated 
          cost of Phase I is between $43 and $65 billion. 

          Proposition 1A defines the capital cost for which bond 
          revenues may be used to include acquisition of property, 
          acquisition and construction of tracks, structures, power 
          systems, and stations; acquisition of train equipment; 
          mitigation of direct and indirect environmental impacts; 
          relocation assistance; and other related capital 
          facilities, including financing and refinancing if 
          authorized by a subsequent statute.  It also authorizes the 
          HSRA to contract for services and equipment for developing 
          and operating the high-speed train service.

          In January 2010, HSRA received an American Recovery and 
          Reinvestment Act (ARRA) grant of $2.25 billion to aid in 
          the development of the Phase I project.  Of that amount, 
          $400 million is for constructing the basement of the new 
          Transbay Terminal in San Francisco to accommodate 
          high-speed trains.  According to the Federal Railroad 
          Administration's (FRA) announcement of its ARRA award, the 
          remaining $1.85 billion is for purchasing right-of-way, 
          constructing track, signaling systems, and stations, and 
          completing environmental reviews and engineering documents 
          for the Los Angeles/ Anaheim segment, the San Francisco/San 
          Jose segment, the Fresno/ Bakersfield segment, and the 
          Merced/Fresno segment.  In a second round of federal 
          funding the HSRA received approximately $1.3 billion, and 
          in a third round of funding the HSRA received $300 million 
          from funds declined by Florida.  The HSRA and the FRA 
          jointly selected a segment from near Fresno to near 
          Bakersfield as the first construction segment.  Between 







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          federal funds and state bond funds, the HSRA has committed 
          about $5.7 billion for this Central Valley project.  As a 
          condition of the ARRA grants, the HSRA must complete 
          construction by September 30, 2017.

          This bill appropriates $4 million from the High-Speed 
          Passenger Train Bond Fund for acquisition and design of the 
          Los Angeles to San Diego segment.

           Comments  

          The Budget Bill includes an appropriation for phase II 
          planning on the high-speed rail segments from Sacramento to 
          Merced and from Stockton to the Bay Area via Altamont Pass. 
           The San Diego planning money was inadvertently excluded 
          from the Budget. 

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

           SUPPORT  :   (Verified  9/6/11)

          California High-Speed Rail Authority
          Californians for High-Speed Rail


          JJA:mw  9/6/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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