BILL ANALYSIS �
AB 1779
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CONCURRENCE IN SENATE AMENDMENTS
AB 1779 (Galgiani)
As Amended August 24, 2012
Majority vote
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|ASSEMBLY: |64-11|(May 30, 2012) |SENATE: |31-3 |(August 29, |
| | | | | |2012) |
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Original Committee Reference: TRANS .
SUMMARY : Authorizes a locally-controlled joint powers authority
(JPA), upon specified conditions and until June 30, 2015, to
assume administrative responsibilities for state-supported
intercity rail passenger services.
The Senate amendments basically align the provisions of this
bill with SB 1225 (Padilla) of the current legislative session.
Specifically, the amendments:
1)State the intent of the Legislature that the Secretary of the
Business, Transportation and Housing Agency (Secretary)
authorize the California Department of Transportation
(Caltrans) to enter into an interagency transfer agreement
(ITA) if the Secretary determines that transferring the
service would result in administrative or operating cost
reductions. Delete the requirement of the Secretary to make a
determination of cost effectiveness prior to authorizing
Caltrans to enter into the ITA.
2)State the intent of the Legislature as well as a requirement
that the ITA cover an initial three-year period that provides
the level of funding that supports the level of service at the
time of execution of the ITA.
3)Authorize the use of local resources to offset any
redirection, elimination, reduction, or reclassification by
the state of state resources for operating intercity passenger
rail services only if the local resources are dedicated by a
vote of the local agency providing funds, with the concurrence
of the JPA.
4)Require the Secretary to establish uniform performance
standards by June 30, 2014, for all corridors. Authorize, to
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the extent necessary, revisions to the performance standards
no later than July 30, 2015, or the effective date of the ITA,
whichever comes first.
5)Prohibit the termination of feeder bus services for passengers
utilizing state-supported passenger rail unless specified
cost-effectiveness standards cannot be met from the existing
services.
6)Delete the prohibition of the state from requiring a corridor
agency to use local funds to augment service or fund
shortfalls when agreed upon performance standards are not met.
7)Delete the prohibition on the use of local funds to offset any
redirection, elimination, reduction, or reclassification of
state resources for operating intercity passenger rail
services in the corridor.
8)Extend the date by which the JPA must execute the ITA to
December 31, 2015. Authorize extension of the ITA by mutual
agreement between Caltrans and the JPA.
9)Clarify requirements of the ITA include coordination of the
intercity rail passenger services with feeder bus services.
Eliminate auditing provisions of the ITA pertaining to
evaluating the transfer of rail equipment.
10)Require the Secretary to provide a report to the Governor and
the Legislature if there is no signed ITA by June 30, 2015,
indicating why an acceptable agreement has not been developed
along with specific recommendations for developing one.
11)Redefine the San Joaquin intercity rail corridor (San
Joaquin) to exclude San Francisco as a destination service
area.
EXISTING LAW :
1)Authorizes Caltrans, in cooperation with local transportation
officials, to develop guidelines to implement the intercity
rail program and defines the intercity rail corridors within
which rail projects are eligible for funding. Requires
Caltrans to develop a comprehensive statewide rail passenger
and freight system plan.
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2)Authorizes Caltrans to contract with Amtrak for intercity rail
passenger services and provides funding for these services
from the Public Transportation Account.
3)Authorized, until December 31, 1996, Caltrans, subject to
approval of the Secretary, to enter into an interagency
transfer agreement under which a JPA assumes responsibility
for administering the state-funded intercity rail service in a
particular corridor, including the San Joaquin Corridor.
4)Establishes the terms of the interagency transfer agreements,
when approved by the Secretary, to include various elements as
specified.
5)Authorizes the establishment of the San Joaquin JPA upon
agreement of the represented agencies for the purpose of
assuming responsibility for intercity passenger rail services
in the San Joaquin corridor. Specifies the membership of the
agency, including members from the Capitol Corridor JPA and
from the County of Los Angeles.
6)Establishes the San Joaquin Valley Rail Committee to be
comprised of elected officials and members of the public
representing 13 counties along the San Joaquin train route.
7)Authorizes the Steering Committee of the Caltrans Rail Task
Force to confer with the Secretary to coordinate intercity
passenger rail service for the San Joaquin Corridor, including
assisting in the development of an appropriate management
structure for the San Joaquin corridor as an element of a
coordinated statewide intercity rail system.
AS PASSED BY THE ASSEMBLY , this bill was substantially similar
to the version passed by the Senate.
FISCAL EFFECT : According to the Senate Appropriations
Committee, this bill will have one-time costs to Caltrans of
approximately $200,000 to administer the transition of
operations and management to the JPA. Cost pressures to
maintain current levels of service for three years due to
expected reductions in federal funding for intercity rail.
Although those federal reductions would be related to service in
the San Diego-Los Angeles-San Luis Obispo intercity rail
corridor (LOSSAN corridor), this bill reduces flexibility to
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address shortfalls statewide. Additional cost pressures related
to provisions in the bill that would shift financial risk from
the JPA to the state, while also removing operational and
management decisions from the state to the JPA.
COMMENTS : Intercity passenger rail service is a component of
the state's overall transportation system and operates between
several regions of the state. Accordingly, intercity rail
travel services are provided between metropolitan areas and to
rural areas. For California, intercity rail passenger services
include three state-supported corridor routes and four Amtrak
long-distance routes. The three in-state intercity rail routes
were funded, planned and administered by Caltrans until July
1998, when the Capitol Corridor JPA assumed administration of
the Capitol Corridor (Auburn-Sacramento-Oakland-San Jose). The
other two intercity rail passenger services, the Pacific
Surfliner (service between San Luis Obispo and San Diego through
Santa Barbara and Los Angeles) and the San Joaquin (serving
Central Valley, linking Los Angeles and Bakersfield with
Sacramento and the Bay Area) continue to be administered by
Caltrans.
In California, Amtrak operates all three state-supported
intercity rail services, although for the Capitol Corridor,
there is an agreement with the Capitol Corridor JPA that Amtrak
continue to operate that intercity service. The state of
California, through Caltrans, funds 70% of the operating deficit
of the Pacific Surfliner with Amtrak funding the remaining 30%
operating deficit (ridership farebox revenues minus operational
costs). For the San Joaquin and the Capitol Corridor service,
Caltrans funds 100% of the operating deficit. Amtrak pays 30%
of the operating deficit for the San Diego service as it was a
part of the basic national passenger train service. Lastly,
California pays for the majority of capital improvements to
these intercity rail services.
Purpose of the bill: This bill would reauthorize a
locally-controlled JPA, until June 30, 2015, to assume
administrative responsibilities for the state-supported San
Joaquin. The author cites the 15-year period of successful
operation of the Capitol Corridor JPA since the administration
of the Capitol Corridor was transferred to that JPA from
Caltrans. The author indicates the success was accomplished
without the direct financial contribution by the member agencies
of the Capitol Corridor JPA and cites that beyond the "more cost
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effective administration and operations, the Capitol Corridor
JPA has shown that there are several other potential benefits to
local authority administration of intercity passenger service
including: the ability to have a stronger voice in advocating
for service improvements and expansions; local decision-making
that is more responsive and adaptive to passenger issues; the
ability to take better advantage of joint marketing and
partnerships with local agencies; and more engagement by local
communities to support the service."
The author further indicates that the Central Valley Rail
Working Group is working with other entities to explore the
development of a regional JPA that would enable regional
governance of the San Joaquin, similar to the Capitol Corridor
JPA. This legislation furthers that effort.
Arguments in support :
1)Writing in support of this bill, numerous cities and regional
entities within the San Joaquin Valley contend that with a
more efficient administration and stronger local and regional
support, a regionally managed San Joaquin service can result
in much higher frequencies of service and increases in
ridership and revenue - similar to the Capitol Corridor JPA.
They cite that the increases in service and ridership will
result in more jobs, improve air quality, and help promote
sustainable development.
2)Upon implementation of the agreement between Altamont Commuter
Express and the current San Joaquin operations, the Unified
Service will facilitate the effective integration of the these
services with the early implementation of the California
High-Speed Rail Authority's (Authority's) initial high-speed
rail construction segment, scheduled for construction in 2018.
Further, upon completion of the rail linkage between
Bakersfield and the San Fernando Valley, higher speed service
for the California's intercity rail spine will be seamless and
operational.
3)As the Secretary has approval authority to effectuate the
state's transfer of responsibilities and assets to the local
JPA, it presumably will do so only its determination that the
transfer will result in operating efficiencies and cost
reductions.
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4)The terms of the ITA serve to protect the interests of the
JPAs as well as the state. Further, as an element of the ITA,
the requirement for the JPA business plan will provide a
roadmap on how the entity will proceed and provide some level
of confidence to state decisionmakers.
5)This bill requires the Steering Committee of the Caltrans Rail
Task Force to advise the JPA. As Caltrans has improved the
services to high ridership levels, its expertise in continuing
successful operations of this corridor could prove invaluable.
6)According to the sponsors, the formation of a JPA could
"provide stronger negotiating strength with the freight
railroads for new passenger services or dealing with freight
conflicts."
7)SB 1225 (Padilla), a similar bill currently being considered
in the Assembly that authorizes transfer of the state
management of the Pacific Surfliner to the LOSSAN corridor
agency, makes similar arguments related to the merits of that
bill.
Arguments in opposition :
1)This bill may be premature, especially as California is
undertaking a major high-speed rail planning and
implementation project. A large component of this effort
focuses on "blending" high-speed rail services and
conventional commuter and intercity passenger rail services in
the San Joaquin corridor. Considering the technical,
operational, and policy issues that need to be resolved by the
Authority, Caltrans, and other agencies at this point in time,
a change in administration of the San Joaquin may be
problematic.
2)Rail service in this corridor is not a regional function. The
San Joaquin corridor acts as the "spine" of intercity
passenger rail in the state, connecting with other rail and
public transportation services in northern and southern
California. Coordination with the state-administered Pacific
Surfliner corridor would be more difficult, particularly with
the extensive bus-train linkages between the two corridors.
3)Any additional capacity of the railroads operating within the
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San Joaquin corridor may not materialize, making it difficult
to achieve additional rail passenger services.
4)The bill requires that the current level of rail service be
maintained for at least three years. However, if funding
shortfalls should come about because of revenue declines, the
bill does not specify sources of additional funding.
Analysis Prepared by : Ed Imai / TRANS. / (916) 319-2093
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