BILL ANALYSIS �
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: SB 1189
SENATOR MARK DESAULNIER, CHAIRMAN AUTHOR: hancock
VERSION: 3/26/12
Analysis by: Art Bauer FISCAL: yes
Hearing date: April 17, 2012
SUBJECT:
High-speed rail bonds: appropriation
DESCRIPTION:
This bill appropriates $523.4 million of high-speed rail bonds
that the California Transportation Commission (CTC) will
allocate to commuter and urban rail transit operators.
ANALYSIS:
The voters passed the Safe, Reliable High-Speed Passenger Train
Bond Act for the 21st Century (Proposition 1A) at the November
2008 general election. Proposition 1A authorizes the sale of
$9.95 billion in general obligation bonds of which $9 billion is
for high-speed rail planning, engineering, and construction, and
$950 million is for improvements to conventional rail, including
intercity rail, commuter rail, and urban rail transit systems to
the high-speed rail line that connect to high-speed rail.
Existing law:
1. Requires the Legislature to appropriate bond proceeds.
2. Requires the High-Speed Rail Authority and eligible
local transit agencies to match Proposition 1A bond funds
on a dollar-for-dollar basis.
3. Allocates $950 million of Proposition 1A funds for
conventional intercity rail and connectivity projects. Of
this amount, $190 million is for intercity rail. The
remaining $760 million is for commuter rail and urban rail
connectivity projects and for rehabilitation, safety, and
modernization of rail facilities, including vehicles.
4. Requires that the $760 million be distributed among the
rail operators on the basis of the following:
SB 1189 (HANCOCK) Page 2
a. One-third based on the eligible recipient's
percentage share of statewide track miles.
b. One-third based on the eligible recipient's
percentage share of statewide annual vehicle miles.
c. One-third based on the eligible recipient's
percentage share of statewide annual passenger trips.
5. Requires the CTC to adopt guidelines specifying the
types of intercity, commuter, and urban rail projects that
are eligible for funding.
This bill appropriates $523.4 million in Proposition 1A bond
funds to the CTC for allocation to local and regional
connectivity projects consistent with guidelines adopted by the
CTC on February 24, 2010.
COMMENTS:
1. Reason for this bill . According to the author, it is
"highly desirable to appropriate these bond funds as soon
as possible to eligible projects so that contracts can be
signed, mobility and safety improvements can begin, and
immediate job opportunities for Californians are made
available."
2. Background . In the 2011-2012 budget bill, SB 87 (Leno)
Chapter 33, Statutes of 2011, the Legislature appropriated
$262 million in Proposition 1A bond funds for intercity,
commuter, and urban rail projects consistent with the CTC's
program of projects. Governor Brown, however, vetoed $147.3
million of this appropriation, leaving
$28 million ($7 million from the local share and $21
million from the state's share) that the CTC had programmed
for positive train control projects. In vetoing the local
share of the appropriation, the Governor's veto message
said in part:
The projects identified by Caltrans and the
California Transportation Commission appear
unrelated to the high-speed rail project or an
integrated rail plan. As plans for the
high-speed rail route are further developed, the
Authority should work with local agencies to
build mutually beneficial projects.
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Governor Schwarzenegger had vetoed a previous appropriation
as well.
3. Appropriation of funds for ready-to-go projects .
According to Senate Budget Committee staff, the $523.4
million this bill appropriates are for projects that CTC
believes are ready to go to construction once an
appropriation is received.
4. Regional Memoranda of Understanding (MOU) . The
administration is taking an entirely different tack on
appropriating the connectivity funds by linking the funds
to the high-speed rail program. To facilitate early
investments in projects in commuter rail corridors that
benefit commuters in the near-term that are usable by
high-speed trains in the future, and that improve
connectivity between high-speed rail and urban rail transit
projects, the California High-Speed Rail Authority (HSRA)
has negotiated MOUs for investing connectivity funds with
the Southern California Association of Governments and with
the Metropolitan Transportation Commission in the Bay Area.
The MOUs represent a mutual understanding on the types of
investments that will be made in each region when funds are
appropriated. These projects are referred to as the
bookends projects. The goal of the MOUs' signatories is to
begin high-speed rail related projects in both the urban
areas while work is progressing on the federally funded
project in the San Joaquin Valley. The rail development
concept in the MOUs is incorporated in the recently revised
business plan
5. Administration's budget request . The MOUs set the
framework for the administration's recent request that the
budget bill be amended to fund the bookend projects in the
north and the south. In addition, the administration is
asking for funding for the joint state-federal high-speed
rail project of approximately 130 miles in length from
north of Fresno to north of Bakersfield. This is the first
investment in the Initial Operating Segment of the
high-speed rail system, which is planned to extend from
Merced to the San Fernando Valley via Palmdale.
Specifically, the administration is asking that the
Legislature appropriate $713.3 million from the
connectivity funds contingent upon the appropriation of
$5.8 billion ($3.2 in federal funds and $2.6 in bond funds)
for the 130-mile San Joaquin Valley segment. The $713.3
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million exceeds the amount being appropriated in this bill
because it includes all the connectivity funds available,
including funds for projects that are not ready to go to
construction.
In addition, the budget request seeks the following
proposed budget language:
Requiring CTC to adopt new allocation
guidelines in cooperation with the HSRA to
ensure that projects are consistent with the
early investment plans for the blended services
in the revised HSRA Business Plan.
Requiring CTC to develop a program of
projects consistent with the new guidelines.
Requiring CTC to present the program
to the HSRA board for comment and incorporate
the comments into the final guidelines for
adoption.
Presumably the CTC will adopt new guidelines based on
the budget bill language and consistent with
Proposition 1A's terms and conditions for the
allocation of connectivity funds.
POSITIONS: (Communicated to the committee before noon on
Wednesday,
April 11, 2012)
SUPPORT: BART
Santa Clara Valley Transportation Authority
OPPOSED: None received.