Bill Text: CA AB528 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: State Rail Plan and High-Speed Rail Authority business plan.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2013-09-06 - Chaptered by Secretary of State - Chapter 237, Statutes of 2013. [AB528 Detail]

Download: California-2013-AB528-Amended.html

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BILL NUMBER: AB 528	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 19, 2013

INTRODUCED BY   Assembly Member Lowenthal

                        FEBRUARY 20, 2013

   An act to  amend   repeal and add 
Section 14036 of the Government Code,  and to amend Section
185033 of the Public Utilities Code,   relating to
transportation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 528, as amended, Lowenthal. State Rail  Plan. 
 Plan: High-Speed Rail Authority business plan. 
   Existing law requires the Department of Transportation to prepare
a 10-year State Rail Plan biennially for submission to the
Legislature, Governor, and specified entities. The plan consists of 2
elements, a passenger rail element and a freight rail element, and
sets forth various items that are required to be included in each
element.  Existing law requires the High-Speed Rail Authority to
prepare, publish, adopt, and submit to the Legislature, not later
than January 1, 2012, and every 2 years thereafter, a specified
business plan, with specified elements, and to publish, at least 60
days prior to the publication of the plan, a draft business plan for
public review and comment, as specified.  
   This bill would revise and recast the items required to be
included in the 2 elements of the State Rail Plan and would change
the date to May 1, 2014, by which the High-Speed Rail Authority is
required to prepare, publish, adopt, and submit to the Legislature,
and every 2 years thereafter, a specified business plan. The bill
would make changes to the specified elements required to be included
in the business plan.  
   This bill would make a nonsubstantive change to these provisions.

   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    The Legislature finds and declares all
of the following:  
   (a) Passage of the federal Passenger Rail Investment and
Improvement Act of 2008 (PRIIA; 49 U.S.C. Sec. 22701 et seq.)
requires comprehensive rail plans in order for states to be eligible
for new federal rail capital grants. To comply with federal law, the
state rail plan must include, at a minimum, all of the following:
 
   (1) An inventory of the existing transportation system and rail
services and facilities within the state, and an analysis of the role
of rail transportation within the state's surface transportation
system.  
   (2) A review of all rail lines within the state, including
proposed high-speed rail corridors.  
   (3) A statement of the state's passenger rail objectives. 

   (4) A general analysis of the transportation, economic, and
environmental impacts of rail in the state, including congestion
mitigation, trade and economic development, air quality, land use,
energy use, and community impacts.  
   (5) A long-range investment program for current and future freight
and passenger rail infrastructure in the state.  
   (b) The Department of Transportation, pursuant to Section 14036 of
the Government Code, is responsible for the preparation of a 10-year
state rail plan. Furthermore, the department has been designated by
the Federal Railroad Administration as the responsible agency for
development of the federally required state rail plan. 
   SEC. 2.    Section 14036 of the   Government
Code   is repealed.  
   14036.  (a) The department shall prepare a 10-year State Rail Plan
biennially for submission to the Legislature, the Governor, the
Public Utilities Commission, and the California Transportation
Commission. The plan shall be submitted to the California
Transportation Commission on or before October 1, 1995, and on or
before October 1 of each odd-numbered year thereafter, for its advice
and consent, and to the Legislature, the Governor, and the Public
Utilities Commission by the following March 1. The plan shall consist
of a passenger rail element and a freight rail element.
   (b) The passenger rail element shall contain all of the following:

   (1) For capital and operating subsidies and costs, all actual
encumbrances for the prior two fiscal years; and for state
operations, all actual expenditures for the prior two fiscal years.
All revenues shall be identified by source.
   (2) For capital and operating subsidies, estimated encumbrances
and revenues for the current year; and for state operations,
estimated expenditures for the current year. The department shall use
the same format as is required for prior year expenditures pursuant
to paragraph (1).
   (3) For the budget year and the nine following fiscal years,
proposed encumbrances for capital and operating subsidies and costs
shall be reported in the same format as is required for the prior
year's expenditures. For state operations, proposed expenditures for
the budget year shall be reported.
   (4) The identification and cost of capital facilities necessary to
enhance competitiveness of rail passenger services, including, for
each intercity route, a list of at least the three highest priority
capital improvement projects, with cost estimates and a funding plan.

   (5) A performance evaluation of all services in operation for the
two prior years, including performance trends, potential for
efficiency and effectiveness, possible improvements, and strategies
to achieve that potential. This shall include an evaluation of all
feeder bus services, using, among other things, criteria based on
ridership levels, break-even points, and levels of growth in service
utilization. The number of daily feeder bus runs, if any, that failed
to carry even one passenger shall be identified.
   (6) A recommendation of a level of and program for services over a
10-year period, including a list of service enhancements on existing
and additional routes, with funding and priority recommendations.
This shall include identification of feeder bus service improvements
and a management and operating plan for achieving these improvements.

   (7) An evaluation of reports by regional planning agencies and
county transportation commissions on commuter service alternatives in
their regions, including presentation of their recommendations.
   (8) A map showing all existing intercity and commuter passenger
rail routes and services, all proposed intercity and commuter
passenger rail routes and services, and all intercity and commuter
passenger rail routes and services that are the subject of
feasibility studies.
   (9) A report on the expenditure of marketing activities funds for
purchases of media advertising of rail passenger services.
   This report shall be prepared in consultation with the Public
Utilities Commission and the National Rail Passenger Corporation. The
department may consult with other agencies, organizations, and
persons with expertise. The department shall employ realistic
assumptions, using Public Utilities Commission cost data whenever
possible, with respect to the level of services it can provide and
the cost of these services when developing the program.
   (10) A discussion of the department's overall marketing strategy
as it relates to the intercity rail passenger service, including
feeder bus service, and a report on the expenditure of marketing
activities funds for purchases of media advertising of rail passenger
services.
   (11) A discussion of fare policies and practices, including all of
the following:
   (A) The relationship of fare policies to ridership and yield,
including the impact of (A) a variety of regular fares, including
fares such as midweek and other off-peak discounts, (B) discount fare
blackouts during certain holiday travel periods on yield and
ridership, and (C) discount fares for small groups traveling
together.
   (B) Lightly traveled route segments where current fares are too
high for the demand, and where ridership or yield, or both, would
increase with lower fares.
   (C) A potential fare policy that would maximize both ridership and
yield.
   (D) A summary of discussions with Amtrak on the subject of fares.
   (c) The freight rail element shall contain all of the following:
   (1) Environmental aspects, which shall include air quality, land
use, and community impacts.
   (2) Financing issues, which shall include a means to obtain
federal and state funding.
   (3) Rail issues, which shall include regional, intrastate, and
interstate issues.
   (4) Intermodal connections, which shall include seaports and
intermodal terminals.
   (5) Current system deficiencies.
   (6) Service objectives, such as improving efficiency,
accessibility, and safety.
   (7) New technology, which shall include logistics and process
improvement.
   (8) Light density rail line analyses, which shall include traffic
density, track characteristics, project selection criteria, and
benefit-cost criteria. 
   SEC. 3.    Section 14036 is added to the  
  Government Code   , to read:  
   14036.  (a) The department shall prepare a 10-year State Rail
Plan. Pursuant to Section 22702 of Title 49 of the United States
Code, the department is designated as the state rail transportation
authority to prepare, maintain, coordinate, and administer the plan.
   (b) The passenger rail element shall contain all of the following:

   (1) A statement of compliance with the requirements set forth in
the federal Passenger Rail Investment and Improvement Act of 2008
(PRIIA; Public Law 110-432; 49 U.S.C. Sec. 22701 et seq.).
   (2) 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.
   (3) A review of all high-speed rail routes, the rail freight
system, conventional intercity and commuter rail systems, and urban
rail system connections to high-speed rail and conventional intercity
and commuter rail systems, including a statement of the state's
passenger rail objectives for routes in the state.
   (4) In consultation with the freight railroad industry, an
identification of the improvements that have utility to both rail
freight and passenger rail services in the state.
   (5) An inventory of the existing rail transportation system and
rail services and facilities in the state, and an analysis of the
role of rail transportation within the state's overall transportation
system.
   (c) The freight rail element shall contain all of the following:
   (1) Environmental aspects that include air quality, land use, and
community impacts.
   (2) Financing issues that include a means to obtain federal and
state funding.
   (3) Rail issues that include regional, intrastate, and interstate
issues.
   (4) Intermodal connections that include seaports and intermodal
terminals.
   (5) A statement of current system deficiencies.
   (6) Service objectives that improve efficiency, accessibility, and
safety.
   (7) New technology that includes logistics and process
improvement.
   (8) Light density rail line analyses that include traffic density,
track characteristics, project selection criteria, and benefit-cost
criteria.
   (d) The final plan shall be submitted to the Transportation Agency
for approval pursuant to Section 22702 of Title 49 of the United
States Code. On or before March 1, 2017, the approved plan shall
thereafter be submitted to the Legislature, the Governor, the Public
Utilities Commission, the High-Speed Rail Authority, and the
commission.
   (e) The plan shall be updated, at a minimum, every five years
thereafter. 
   SEC. 4.    Section 185033 of the   Public
Utilities Code   is amended to read: 
   185033.  (a) The authority shall prepare, publish, adopt, and
submit to the Legislature, not later than  January 1, 2012
  May 1, 2014  , and every two years thereafter, a
business plan. At least 60 days prior to the publication of the plan,
the authority shall publish a draft business plan for public review
and comment. The draft plan shall also be submitted to the Senate
Committee on Transportation and Housing, the Assembly Committee on
Transportation, the Senate Committee on Budget and Fiscal Review, and
the Assembly Committee on Budget.  The business plan shall
identify all of the following: the type of service the authority
anticipates it will develop, such as local, express, commuter,
regional, or interregional; a description of the primary benefits the
system will provide; a forecast of the anticipated patronage,
operating and maintenance costs, and capital costs for the system; an
estimate and description of the total anticipated federal, state,
local, and other funds the authority intends to access to fund the
construction and operation of the system; and the proposed chronology
for the construction of the eligible corridors of the statewide
high-speed train system. The business plan shall also include a
discussion of all reasonably foreseeable risks the project may
encounter, including, but not limited to, risks associated with the
project's finances, patronage, right-of-way acquisition,
environmental clearances, construction, equipment, and technology,
and other risks associated with the project's development. The plan
shall describe the authority's strategies, processes, or other
actions it intends to utilize to manage those risks. 
   (b) (1)  In addition to the requirements of subdivision
(a), the   The    business plan shall
include, but need not be limited to, all of the following elements:

   (A) The type of service the authority is developing and the
proposed chronology for the construction of the statewide high-speed
rail system.  
   (A) 
    (B)  Using the most recent patronage forecast for the
system, develop a forecast of the expected patronage  and
  ,  service levels  , and operating and
maintenance costs  for the Phase 1 corridor as identified in
paragraph (2) of subdivision (b) of Section 2704.04 of the Streets
and Highways Code and by each segment or combination of segments for
which a project level environmental analysis is being prepared for
Phase 1. The forecast shall assume a high, medium, and low level of
patronage and a realistic operating planning scenario for each level
of service.  Alternative fare structures shall be considered
when determining the level of patronage.  
   (B) 
    (C)  Based on the patronage forecast in subparagraph
(A), develop alternative financial  pro formas  
scenarios  for the different levels of service, and identify
the operating break-even points for each alternative. Each 
pro forma   scenario  shall assume the terms of
subparagraph (J) of paragraph (2) of subdivision (c) of Section
2704.08 of the Streets and Highways Code. 
   (C) 
    (D)  Identify the expected schedule for completing
environmental review, and initiating and completing construction for
each segment  or combination of segments  of Phase 1.

   (D) 
    (E)  Identify the source of federal, state, and local
funds available for the project that will augment funds from the bond
 act and the level of confidence for obtaining each type of
funding.   act.  
   (E) 
    (F)  Identify written agreements with public or private
entities to fund components of the high-speed rail system, including
stations and terminals,  and identify  any impediments to
the completion of the  system, such as the inability to gain
access to existing railroad rights-of-way.   system.
 
   (F) 
    (G)  Identify alternative public-private development
strategies for the implementation of Phase 1. 
   (H) A discussion of all reasonably foreseeable risks the project
may encounter, including, but not limited to, risks associated with
the project's finances, patronage, right-of-way acquisition,
environmental clearances, construction, equipment, and technology,
and other risks associated with the project's development. The plan
shall describe the authority's strategies, processes, or other
actions it intends to utilize to manage those risks. 
   (2) To the extent feasible, the business plan should draw upon
information and material developed according to other requirements,
including, but not limited to, the preappropriation review process
and the preexpenditure review process in the Safe, Reliable
High-Speed Passenger Train Bond Act for the 21st Century pursuant to
Section 2704.08 of the Streets and Highways Code. The authority shall
hold at least one public hearing on the business plan and shall
adopt the plan at a regularly scheduled meeting. When adopting the
plan, the authority shall take into consideration comments from the
public hearing and written comments that it receives in that regard,
and any hearings that the Legislature may hold prior to adoption of
the plan. 
  SECTION 1.    Section 14036 of the Government Code
is amended to read:
   14036.  (a) The department shall prepare a 10-year State Rail Plan
biennially for submission to the Legislature, the Governor, the
Public Utilities Commission, and the California Transportation
Commission. The plan shall be submitted to the California
Transportation Commission on or before October 1, 1995, and on or
before October 1 of each odd-numbered year thereafter, for its advice
and consent, and to the Legislature, the Governor, and the Public
Utilities Commission by the following March 1. The plan shall consist
of a passenger rail element and a freight rail element.
   (b) The passenger rail element shall contain all of the following:

   (1) For capital and operating subsidies and costs, all actual
encumbrances for the prior two fiscal years; and for state
operations, all actual expenditures for the prior two fiscal years.
All revenues shall be identified by source.
   (2) For capital and operating subsidies, estimated encumbrances
and revenues for the current year; and for state operations,
estimated expenditures for the current year. The department shall use
the same format as is required for prior year expenditures pursuant
to paragraph (1).
   (3) For the budget year and the nine following fiscal years,
proposed encumbrances for capital and operating subsidies and costs,
reported in the same format as is required for the prior year's
expenditures. For state operations, proposed expenditures for the
budget year shall be reported.
   (4) The identification and cost of capital facilities necessary to
enhance competitiveness of rail passenger services, including, for
each intercity route, a list of at least the three highest priority
capital improvement projects, with cost estimates and a funding plan.

   (5) A performance evaluation of all services in operation for the
two prior years, including performance trends, potential for
efficiency and effectiveness, possible improvements, and strategies
to achieve that potential. This shall include an evaluation of all
feeder bus services, using, among other things, criteria based on
ridership levels, break-even points, and levels of growth in service
utilization. The number of daily feeder bus runs, if any, that failed
to carry even one passenger shall be identified.
   (6) A recommendation of a level of and program for services over a
10-year period, including a list of service enhancements on existing
and additional routes, with funding and priority recommendations.
This shall include identification of feeder bus service improvements
and a management and operating plan for achieving these improvements.

   (7) An evaluation of reports by regional planning agencies and
county transportation commissions on commuter service alternatives in
their regions, including presentation of their recommendations.
   (8) A map showing all existing intercity and commuter passenger
rail routes and services, all proposed intercity and commuter
passenger rail routes and services, and all intercity and commuter
passenger rail routes and services that are the subject of
feasibility studies.
   (9) A report on the expenditure of marketing activities funds for
purchases of media advertising of rail passenger services.
   This report shall be prepared in consultation with the Public
Utilities Commission and the National Rail Passenger Corporation. The
department may consult with other agencies, organizations, and
persons with expertise. The department shall employ realistic
assumptions, using Public Utilities Commission cost data whenever
possible, with respect to the level of services it can provide and
the cost of these services when developing the program.
   (10) A discussion of the department's overall marketing strategy
as it relates to the intercity rail passenger service, including
feeder bus service, and a report on the expenditure of marketing
activities funds for purchases of media advertising of rail passenger
services.
   (11) A discussion of fare policies and practices, including all of
the following:
   (A) The relationship of fare policies to ridership and yield,
including the impact of (A) a variety of regular fares, including
fares such as midweek and other off-peak discounts, (B) discount fare
blackouts during certain holiday travel periods on yield and
ridership, and (C) discount fares for small groups traveling
together.
   (B) Lightly traveled route segments where current fares are too
high for the demand, and where ridership or yield, or both, would
increase with lower fares.
   (C) A potential fare policy that would maximize both ridership and
yield.
   (D) A summary of discussions with Amtrak on the subject of fares.
   (c) The freight rail element shall contain all of the following:
   (1) Environmental aspects, which shall include air quality, land
use, and community impacts.
   (2) Financing issues, which shall include a means to obtain
federal and state funding.
   (3) Rail issues, which shall include regional, intrastate, and
interstate issues.
   (4) Intermodal connections, which shall include seaports and
intermodal terminals.
   (5) Current system deficiencies.
   (6) Service objectives, such as improving efficiency,
accessibility, and safety.
   (7) New technology, which shall include logistics and process
improvement.
   (8) Light density rail line analyses, which shall include traffic
density, track characteristics, project selection criteria, and
benefit-cost criteria.