2009 California Public Utilities Code - Section 185030-185038 :: Chapter 3. Responsibilities Of The Authority

185030.  The authority shall direct the development and
implementation of intercity high-speed rail service that is fully
integrated with the state's existing intercity rail and bus network,
consisting of interlinked conventional and high-speed rail lines and
associated feeder buses. The intercity network in turn shall be fully
coordinated and connected with commuter rail lines and urban rail
transit lines developed by local agencies, as well as other transit
services, through the use of common station facilities whenever
possible.

185032.  (a) (1) Upon an appropriation in the Budget Act for that
purpose, the authority shall prepare a plan for the construction and
operation of a high-speed train network for the state, consistent
with and continuing the work of the Intercity High-Speed Rail
Commission conducted prior to January 1, 1997. The plan shall include
an appropriate network of conventional intercity passenger rail
service and shall be coordinated with existing and planned commuter
and urban rail systems.
   (2) The authorization and responsibility for planning,
construction, and operation of high-speed passenger train service at
speeds exceeding 125 miles per hour in this state is exclusively
granted to the authority.
   (3) Except as provided in paragraph (2), nothing in this
subdivision precludes other local, regional, or state agencies from
exercising powers provided by law with regard to planning or
operating, or both, passenger rail service.
   (b) The plan, upon completion, shall be submitted to the
Legislature and the Governor for approval by the enactment of a
statute.

185033.  (a) The authority shall prepare, publish, adopt, and submit
to the Legislature, not later than January 1, 2012, 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
business plan shall include, but need not be limited to, all of the
following elements:
   (A) Using the most recent patronage forecast for the system,
develop a forecast of the expected patronage and service levels 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) Based on the patronage forecast in subparagraph (A), develop
alternative financial pro formas for the different levels of service,
and identify the operating break-even points for each alternative.
Each pro forma shall assume the terms of subparagraph (J) of
paragraph (2) of subdivision (c) of Section 2704.08 of the Streets
and Highways Code.
   (C) Identify the expected schedule for completing environmental
review, and initiating and completing construction for each segment
of Phase 1.
   (D) 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.
   (E) Identify written agreements with public or private entities to
fund components of the high-speed rail system, including stations
and terminals, any impediments to the completion of the system, such
as the inability to gain access to existing railroad rights-of-way.
   (F) Identify alternative public-private development strategies for
the implementation of Phase 1.
   (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.

185034.  The authority may do any of the following:
   (1) Conduct engineering and other studies related to the selection
and acquisition of rights-of-way and the selection of a franchisee,
including, but not limited to, environmental impact studies,
socioeconomic impact studies, and financial feasibility studies.
   (2) Evaluate alternative high-speed rail technologies, systems and
operators, and select an appropriate high-speed rail system.
   (3) Establish criteria for the award of a franchise.
   (4) Accept grants, fees, and allocations from the state, from
political subdivisions of the state or from the federal government,
foreign governments, and private sources.
   (5) Select a proposed franchisee, a proposed route, and proposed
terminal sites.
   (6) Enter into contracts with public and private entities for the
preparation of the plan.
   (7) Prepare a detailed financing plan, including any necessary
taxes, fees, or bonds to pay for the construction of the high-speed
train network.
   (8) Develop a proposed high-speed rail financial plan, including
necessary taxes, bonds, or both, or other indebtedness, and submit
the plan to the Legislature and to the Governor.
   (9) Keep the public informed of its activities.

185035.  (a) The authority shall establish an independent peer
review group for the purpose of reviewing the planning, engineering,
financing, and other elements of the authority's plans and issuing an
analysis of appropriateness and accuracy of the authority's
assumptions and an analysis of the viability of the authority's
financing plan, including the funding plan for each corridor required
pursuant to subdivision (b) of Section 2704.08 of the Streets and
Highways Code.
   (b) The peer review group shall include all of the following:
   (1) Two individuals with experience in the construction or
operation of high-speed trains in Europe, Asia, or both, designated
by the Treasurer.
   (2) Two individuals, one with experience in engineering and
construction of high-speed trains and one with experience in project
finance, designated by the Controller.
   (3) One representative from a financial services or financial
consulting firm who shall not have been a contractor or subcontractor
of the authority for the previous three years, designated by the
Director of Finance.
   (4) One representative with experience in environmental planning,
designated by the Secretary of Business, Transportation and Housing.
   (5) Two expert representatives from agencies providing intercity
or commuter passenger train services in California, designated by the
Secretary of Business, Transportation and Housing.
   (c) The peer review group shall evaluate the authority's funding
plans and prepare its independent judgment as to the feasibility and
reasonableness of the plans, appropriateness of assumptions,
analyses, and estimates, and any other observations or evaluations it
deems necessary.
   (d) The authority shall provide the peer review group any and all
information that the peer review group may request to carry out its
responsibilities.
   (e) The peer review group shall report its findings and
conclusions to the Legislature no later than 60 days after receiving
the plans.

185036.  Upon approval by the Legislature, by the enactment of a
statute, or approval by the voters of a financial plan providing the
necessary funding for the construction of a high-speed network, the
authority may do any of the following:
   (a) Enter into contracts with private or public entities for the
design, construction and operation of high-speed trains. The
contracts may be separated into individual tasks or segments or may
include all tasks and segments, including a design-build or
design-build-operate contract.
   (b) Acquire rights-of-way through purchase or eminent domain.
   (c) Issue debt, secured by pledges of state funds, federal grants,
or project revenues. The pledge of state funds shall be limited to
those funds expressly authorized by statute or voter-approved
initiatives.
   (d) Enter into cooperative or joint development agreements with
local governments or private entities.
   (e) Set fares and schedules.
   (f) Relocate highways and utilities.

185037.  (a) Notwithstanding any other provision of law, for any
project along the high-speed rail network, the authority may contract
with the department to perform project design and engineering
services, including construction inspection services.
   (b) For purposes of this section, "project design and engineering
services, including construction inspection services" means
preliminary engineering, planning, prebid services, right-of-way
acquisition, preparation of environmental documents, preparation of
plans, specifications, and estimates, construction inspection
including surveying and materials testing, quality control inspection
including highway and utility relocation, and grade separations.

185038.  Any legal or equitable action brought against the authority
shall be brought in a court of competent jurisdiction in the County
of Sacramento. For purposes of this section, subdivision (1) of
Section 401 of the Code of Civil Procedure does not apply.