BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1117
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          Date of Hearing:   July 2, 2012

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                               Bonnie Lowenthal, Chair
                  SB 1117 ( DeSaulnier) - As Amended:  June 26, 2012

           SENATE VOTE  :  32-3
           
          SUBJECT  :  State Rail Plan

           SUMMARY  :  Modifies requirements of the State Rail Plan.  
          Specifically,  this bill  :  

          1)Makes legislative findings and declarations regarding the new 
            planning requirements of the federal Passenger Rail Investment 
            and Improvement Act of 2008 (PRIIA) and the need to build on 
            these new requirements to improve the state's rail planning 
            activities.  

          2)Identifies the California Department of Transportation 
            (Caltrans) as the designee to prepare, maintain, coordinate, 
            and administer the federal state rail plan required under 
            PRIIA.  

          3)Restructures the State Rail Plan, as follows:

             a)   Requires the State Rail Plan to comply with federal 
               requirements under PRIIA.  

             b)   Adds required elements of the State Rail Plan to 
               include:  

               i)     Plans for a comprehensive and integrated statewide 
                 passenger rail system, including high-speed rail, 
                 conventional intercity and commuter rail, and connections 
                 to urban rail systems;

               ii)    A review of all high-speed rail routes, the freight 
                 rail system, conventional intercity and commuter rail 
                 systems, and urban system connections to other passenger 
                 rail systems, including a statement of the state's 
                 passenger rail objectives for routes in the state;

               iii)   Identification of improvements that have the 
                 potential to benefit both rail freight and passenger rail 








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                 services in the state; and,

               iv)    An inventory of the existing rail transportation 
                 system, services, and facilities in the state, and an 
                 analysis of the role of rail within the state's overall 
                 transportation system.  

             c)   Deletes specific, detailed requirements of the existing 
               State Rail Plan, including:

               i)     Actual, estimated, and proposed encumbrances for 
                 capital and operating subsidies and for state operations;

               ii)    Identification of high-priority capital improvement 
                 projects;

               iii)   Performance evaluation of all services in 
                 operations;

               iv)    Recommended levels of service for the next ten 
                 years;

               v)     Evaluations of regional planning agency reports of 
                 commuter services;

               vi)    Maps of existing routes;

               vii)   Expenditure data and strategies related to Caltrans' 
                 marketing activities;

               viii)  The specific requirement that the report be prepared 
                 in consultation with AMTRAK and the Public Utilities 
                 Commission;

               ix)    Discussions of fare policies; and,

               x)     The freight element, including issues related to 
                 environmental aspects, financing, intermodal connections, 
                 current system deficiencies, new technology, and light 
                 density rail.  

             d)   Modifies required due dates and sets forth a review and 
               submittal process to require Caltrans to:

               i)     Submit the draft State Rail Plan to the High-Speed 








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                 Rail Authority (HSRA) and the California Transportation 
                 Commission (CTC) by April 30, 2015;

               ii)    Prior to submitting the draft plan, requires 
                 Caltrans to hold two public workshops on the draft plan;

               iii)   Submit the final plan to the CTC for advice and 
                 consent on or before December 31, 2015;

               iv)    Submit the final plan to the Business, 
                 Transportation and Housing Agency by March 1, 2016, for 
                 approval pursuant to federal requirements; and,

               v)     Submit the final, approved plan to the Legislature.  


          4)Requires the State Rail Plan to be updated every five years, 
            at a minimum.  

          5)Directs the CTC to include in its RTP guidelines:

             a)   Direction regarding the integration of all passenger 
               rail service into a coordinated system, with emphasis on 
               intermodal facilities connecting various passenger rail 
               systems with each other as well as with the overall 
               transportation system; and,

             b)   The provision of cost-effective passenger rail services 
               that contribute to climate stabilization, job access, 
               environmental enhancements, and improved mobility.  

          6)Directs the HSRA to plan for implementation of  blended 
            systems, consistent with the authority's business plan, with 
            the following prescribed elements:

             a)   Identification of investments in passenger rail projects 
               in the San Francisco Transbay Terminal-to-Los Angeles Union 
               Station-to-Anaheim (Phase 1) high-speed rail corridor that 
               benefits conventional intercity and commuter rail services 
               and are compatible with being upgraded to high-speed rail 
               in the future; and,

             b)   Investments in operable segments in the Phase 1 corridor 
               that generate sufficient passenger revenue to be attractive 
               to private investors.  








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          7)In developing the blended systems, requires HSRA to consult 
            with Caltrans, regional transportation planning agencies, 
            agencies administering or operating commuter rail, freight 
            railroads operating in conventional intercity and commuter 
            rail corridors and in the Phase 1 high-speed rail corridors, 
            and firms that have expertise in commercial high-speed 
            intercity rail operations.  

          8)Requires the HSRA to submit its draft blended program to the 
            CTC and the Legislature by December 31, 2013, and to 
            subsequently incorporate it into its business plan.  

           EXISTING LAW:  

          1)Under the federal PRIIA, establishes a federal policy for 
            intercity passenger rail that includes a federal capital grant 
            program and new requirements for state rail plans.  PRIIA also 
            conditions submittal of federal capital grant applications 
            upon completed state rail plans.  State rail plans are to be 
            updated every five years.  

          2)Requires Caltrans to prepare a ten-year rail plan to be 
            updated biennially.  The report is required to be submitted by 
            March 31 of every even-numbered year.  (Note: With the advent 
            of new federal requirements for state rail plans, Caltrans 
            notified legislative policy committees that the 2012 report 
            would be delayed so that new federal state rail plan 
            requirements could be incorporated.  That new plan is now 
            under development.)  

          3)Requires CTC, in consultation with Caltrans and the State Air 
            Resources Board, to maintain guidelines for travel demand 
            models used in the development of regional transportation 
            plans (RTPs) by federal designated metropolitan planning 
            organizations.  

          4)Requires each transportation planning agency, every four 
            years, to prepare and adopt an RTP directed at achieving a 
            coordinated and balanced regional transportation system, 
            including, but not limited to, mass transportation, highway, 
            railroad, maritime, bicycle, pedestrian, goods movement, and 
            aviation facilities and services.  

          5)Requires that an RTP consider both the short-term and 








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            long-term future an incorporate the transportation plans of 
            cities, counties, districts, state, and federal agencies.  

          6)Requires RTPs to be consistent with federal planning and 
            programming requirements and conform to the RTP guidelines 
            adopted by CTC.  

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  According to the author, successful rail development 
          depends on the integration of various modes of 
          transportation-including intercity, commuter and urban rail 
          transit, as well as the state and local roadway network.  He has 
          introduced this bill to incorporate the state's efforts relative 
          to high-speed rail planning, regions' efforts relative to urban 
          rail, and new federal rail planning requirements into a new, 
          recast State Rail Plan.  

          The revised State Rail Plan will complement efforts already 
          underway within in the Administration to develop the next 
          iteration of a state rail plan consistent with federal 
          requirements for state rail plans as set forth under PRIIA.  
          These requirements, as identified in the federal preliminary 
          state rail plan outline, are much more extensive than the 
          existing state requirements.  PRIIA requires an integrated and 
          comprehensive plan for existing and proposed conventional and 
          high-speed rail systems and freight rail.  The plan must include 
          detailed 5- and 20-year capital project plans for all high-speed 
          and conventional intercity rail projects that may be financed 
          with federal grant funds and rail system planning is required to 
          be integrated into the entire transportation system.  

          SB 1117 builds on the work of regions to develop RTPs and 
          focuses on connectivity between rail systems and opportunities 
          to develop those systems to benefit the state's entire 
          transportation system.  

           Concerns  :  Although not formally opposed to the bill, Union 
          Pacific Railroad (UP) has raised the concern that the State Rail 
          Plan appears to delete the ability of the plan to identify 
          projects that may solely support freight rail interests.  UP 
          points out that the bill requires a focus on blended systems but 
          that there are capacity constraints in blended passenger-freight 
          rail operations, and shared use of passenger and freight use on 
          many of the state's rail lines is not possible.  








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           Suggested technical amendments:   The bill has drafting errors 
          that should be corrected:

          1)The bill sets forth conflicting time periods for required 
            updates and multiple report submittal requirements.  The bill 
            should be amended as follows:

            On page 4, line 16, strike "biennially for submission to the 
            Legislature, the Governor, the Public Utilities Commission, 
            and the California Transportation Commission."  

            On page 5, line 22, after "Legislature" add ", the Governor, 
            the Public Utilities Commission, and the California 
            Transportation Commission."  

          2)The bill includes an erroneous reference (from an earlier 
            version of the bill) to guidelines provided by CTC relative to 
            high-speed intercity rail.  The reference should be struck, as 
            follows:

            On page 10, beginning at line 25, strike "policies and 
            guidelines of the California Transportation Commission 
            relative to the high-speed intercity rail element of the 
            statewide passenger rail transportation plan" and replace with 
            "policy objectives set forth in the State Rail Plan"

          3)The bill sets forth a cumbersome, nearly year-long review and 
            approval process for the State Rail Plan.  This process should 
            be shortened and streamlined, for example, to require only one 
            review by the CTC.  
          4)The bill requires the HSRA to submit a draft of its blended 
            program to the CTC and the Legislature.  HSRA should also 
            submit a copy of the program to Caltrans so that it can be 
            reflected appropriately in the State Rail Plan.  


           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Orange County Transportation Authority
           
            Opposition 
           








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          None on file

           
          Analysis Prepared by  :   Janet Dawson / TRANS. / (916) 319-2093