LEGISLATIVE AND COMMUNICATIONS COMMITTEE

Transcription

1 LEGISLATIVE AND COMMUNICATIONS COMMITTEE J U N E 1 4,

2 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY ROSTER LEGISLATIVE & COMMUNICATIONS COMMITTEE COUNTY MEMBER Los Angeles: Don Knabe (Chair) 1 Vote Supervisor, District County of Los Angeles Jaime de la Vega Metro Appointee Orange: Michael Hennessey (Vice-Chair) 1 Vote OCTA Public Member San Bernardino: Patrick Morris 1 Vote Mayor City of San Bernardino Alan Wapner Council Member City of Ontario Riverside: Daryl Busch 1 Vote Mayor City of Perris Andrew Kotyuk Council Member City of San Jacinto Ventura: Keith Millhouse 1 Vote Council Member City of Moorpark One Gateway Plaza, 12 th Floor, Los Angeles, CA 90012

3 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY LEGISLATIVE AND COMMUNICATIONS COMMITTEE FRIDAY, JUNE 14, 2013, 9:00 A.M. LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY UNION STATION CONFERENCE ROOM ONE GATEWAY PLAZA, FLOOR LOS ANGELES, CALIFORNIA AGENDA DESCRIPTIONS The agenda descriptions are intended to give notice to members of the public of a brief general description of items of business to be transacted or discussed. The posting of the recommended actions does not indicate what action will be taken. The Committee may take any action that it deems to be appropriate on the agenda item and is not limited in any way by the notice of the recommended action. The Chair reserves the right to discuss the items listed on the agenda in any order. A person with a disability may contact the Committee Secretary's office at (213) or via saccocciom@scrra.net at least 72-hours before the scheduled meeting to request receipt of an agenda in an alternative format or to request disability-related accommodations, including auxiliary aids or services, in order to participate in the public meeting. Later requests will be accommodated to the extent feasible. SUPPORTING DOCUMENTATION The agenda, staff reports and supporting documentation are available from the Committee Secretary, located at One Gateway Plaza, Floor, Los Angeles, CA and on the Metrolink website at under the Meetings and Agenda link. PUBLIC COMMENTS ON AGENDA ITEMS Members of the public wishing to address the Committee members regarding any item appearing on the agenda, may do so by completing a Speaker s Form and submitting it to the Committee Secretary. Speakers will be recognized by the Chair at the time the agenda item is to be considered. When addressing the Committee, please state your name for the record. Please address the Committee as a whole through the Chair. Please note comments to individual Committee members or staff are not permitted when addressing the Committee. A speaker s comments shall be limited to three (3) minutes. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA Members of the public wishing to address the Committee members regarding any item not on the agenda, but within the subject matter jurisdiction of the Committee, will be taken under Item 8 (Public Comment), and will be subject to the same guidelines as noted above. One Gateway Plaza, 12 th Floor, Los Angeles, CA 90012

4 Legislative and Communications Committee Agenda Page 2 1. Call to Order 2. Pledge of Allegiance REGULAR CALENDAR 3. Approval of Minutes April 12, 2013 Legislative and Communications Committee Meeting Staff recommends the Legislative and Communications Committee approve the minutes of the April 12, 2013 meeting. Page 1 4. Sales and Marketing Update Staff will provide a summary of recent and upcoming marketing initiatives such as the Metrolink Rail Series and partnerships with the Orange County Fair, ZipCar and MegaBus. There is no written document. The Legislative and Communications Committee may receive and file this report. 5. Adopt Staff Recommended Positions on Legislation Staff is recommending positions on Assembly Bill 14 (Lowenthal) State Freight Plan and Assembly Bill 574 (Lowenthal) Greenhouse Gas Reduction Fund: Sustainable Communities Strategies. Staff recommends the Legislative and Communications Committee recommend the Board adopt the staff recommended positions on state legislation: 1) Item 5A. - AB 14 (Lowenthal) SUPPORT 2) Item 5B. AB 574 (Lowenthal) SUPPORT 5A. Assembly Bill 14 (Lowenthal) State Freight Plan Page 10 Assemblymember Bonnie Lowenthal (D- Long Beach) has introduced AB 14 to require the California Transportation Agency (formerly Business, Transportation and Housing) to prepare a state freight plan that complies with the requirements of MAP-21 and to establish a Freight Advisory Committee. California State law requires that the Department of Transportation prepare a state rail plan that includes freight elements. MAP-21 incentivizes states to develop freight plans that are consistent with federal guidelines. AB 14 would mandate that the California Transportation Agency prepare a state freight plan consistent with the federal guidelines, to be submitted by December 31, 2014 to the Legislature, Governor and certain state agencies and to update the plan

5 Legislative and Communications Committee Agenda Page 3 every five years. Additionally, AB 14 instructs that a freight advisory committee with representatives of various freight stakeholders be established, to develop the state s Freight Mobility Plan. Staff recommends that the Legislative and Communications Committee recommend that the Board of Directors take a Support position and instruct staff to monitor the advisory committee. State investment in freight rail could have a direct impact on improvements and investments in the corridors where Metrolink operates. Page 11 5B. Assembly Bill 574 (Lowenthal) Greenhouse Gas Reduction Fund: Sustainable Communities Strategies AB 574 (Lowenthal) seeks to direct cap and trade revenues generated from the regulation of fuels towards transportation. The California Global Warming Solutions Act of 2006 authorizes the use of market based mechanisms to reduce greenhouse gas production. Existing law dictates that all funds generated from the market-based mechanism are to be deposited in a Greenhouse Gas Reduction Fund and funds are to be appropriated by the legislature. Additional legislation passed in 2012 directs the development of a three year expenditure plan (AB 1532, Perez) and that a portion of funds be used in Disadvantaged Communities. This bill intends to build on the existing legislation to address revenues generated from the fuel industry, which officially begins in Staff recommends that the Legislative and Communications Committee recommend the Board of Directors take a Support position on AB 574 authored by Assembly Member Bonnie Lowenthal (D Long Beach). The designation of cap and trade revenues for transportation purposes could provide funding for Metrolink, therefore a budget impact is feasible, however that amount is not yet known. Page State and Federal Legislative Update Staff will provide an update on current legislative issues in State and Federal Government Affairs. The Legislative and Communications Committee may receive and file this report. There is no immediate budget impact as a result of this update. Page Chief Administrative Officer s Report Division Update 8. Public Comment 9. Chair s Comments 10. Committee Member Comments 11. Adjournment

6 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY MINUTES OF THE SCRRA LEGISLATIVE AND COMMUNICATIONS COMMITTEE April 12, 2013 ITEM 3 COMMITTEE MEMBERS IN ATTENDANCE: VOTES OCTA: MICHAEL HENNESSEY (Vice-Chair) 1 SANBAG: PATRICK MORRIS 1 Alan Wapner METRO: Jaime de la Vega 1 RCTC: DARYL BUSCH 1 Andrew Kotyuk VCTC: KEITH MILLHOUSE 1 STAFF: MICHAEL P. DePALLO, Chief Executive Officer PATRICIA BRUNO, Government and Regulatory Affairs Manager GEOFFREY P. FORGIONE, Associate General Counsel ROBERT TURNAUCKAS, Chief Administrative Officer MARY SACCOCCIO, Committee Secretary Meeting minutes are presented in a format that corresponds with the Legislative and Communications Committee Agenda, which is incorporated herein by reference. Southern California Regional Rail Authority (SCRRA) Legislative and communications Committee Agendas are available from the Metrolink website or by contacting the Committee Secretary at Call to Order The April 12, 2013, Legislative and Communications Committee Meeting was called to order by Vice-Chair Hennessey at 9:00 a.m., in the Los Angeles County Metropolitan Transportation Authority Union Station Conference Room, One Gateway Plaza, 3rd Floor, Los Angeles, California Vice-Chair Hennessey presided over the meeting in the absence of Committee Chair Knabe. One Gateway Plaza, 12 th Floor, Los Angeles, CA

7 Legislative and Communications Committee Agenda Page 2 2. Pledge of Allegiance Director Morris led the group in the Pledge of Allegiance. 3. Approval of Minutes March 8, 2013 Legislative and Communications Committee Meeting Upon a motion by Director Morris and seconded by Director Busch, the Legislative and Communications Committee approved the Minutes of the March 8, 2013 Committee meeting. There was no opposition and the motion passed unanimously. ACTION: The Legislative and Communications Committee approved the Minutes of the March 8, 2013 meeting. 4. Approval of Evaluation Criteria Request for Proposal No. SP Metrolink Holiday Train Production Services Lia McNeil-Kakaris, Assistant Director, Contracts, provided a brief background on this item as detailed in the staff report and requested approval of staff s recommendation. Director Morris inquired if there was a competitive market of qualified bidders who had experience in producing this type of show. Robert Turnauckas, Chief Administrative Officer, responded that this type of production is unique in that railroad experience and certification is required to ensure the safe operation of all the equipment onboard a moving train. He stated that staff is currently researching vendors who have experience in this type of production. He also stated that in addition to the Holiday Train production, Disney may be willing to provide support to the event. Director Morris commented that gaining Disney s support and involvement would greatly boost community response where the program is delivered. Upon a motion by Director Morris and seconded by Director Millhouse, the Legislative and Communications Committee approved staff s recommendation. There was no opposition and the motion passed unanimously. ACTION: The Legislative and Communications Committee approved and recommended the Board approve the proposed evaluation criteria, detailed in Attachment 1, specifying a weighting of 80% for technical qualifications and 20% for cost, to retain a firm to provide Metrolink Holiday Train production services. 5. Communications Update Jeff Lustgarten, Director, Public Affairs, provided a presentation that highlighted key communications initiatives. He reported that the TAP Communications project is a priority project for staff in anticipation of Metro s gate latching scheduled to commence in June. He emphasized the importance of effectively communicating and preparing 2

8 Legislative and Communications Committee Agenda Page 3 Metrolink riders of the changes when transferring to the Metro system once the gate latching goes into effect and added that this project is a joint collaboration in conjunction with Metro s outreach to their riders. He reported that staff developed a comprehensive multi-faceted communications program designed to reach current riders and future potential riders through media relations, direct engagement, city communications/outreach, social media and Metrolink s newsletter, Metrolink Matters which is distributed on trains. The Communications Plan would introduce the new fare media that is scheduled to be introduced in late May. He also reported on changes to the purchase schedule for monthly passholders beginning in late May. This change will allow riders to purchase monthly passes beginning on the of the current month through the 5th of the following month, which would also provide an additional measure to reduce fare evasion. Jeff Lustgarten reported that an official latching press conference is scheduled for June 19, 2013 at Los Angeles Union Station which will also be an opportunity to demonstrate to riders how to use the TAP enabled Metrolink tickets and will be attended by Metrolink Board Chair and San Bernardino Mayor, Patrick Morris, Metro Board Chair and County of Los Angeles Supervisor District, Michael Antonovich, and Los Angeles Mayor, Antonio Villaraigosa. Jeff Lustgarten next summarized recent press events which included the California SpeedWay Day Promotion, and the Metro/Metrolink Dodgers Express Press Conference. He also reported on upcoming events which included National Train Day, CicLAvia, and the Angels Express. He stated these events will be highlighted in the upcoming issue of Metrolink Matters scheduled for distribution on trains the following week. In response to Director Millhouse s inquiry as to whether a dedicated lane had been added for the Dodgers Express bus which would enable the buses to directly exit the stadium and by-pass exiting traffic, Jeff Lustgarten confirmed that the bus lane had been added. Director Millhouse commented on the positive changes he has observed on the Metrolink Matters newsletter and asked the Committee to acknowledge the staff member overseeing the publication. At that time, Delana Gbenekama, Communications Representative, was acknowledged by the Committee. Jeff Lustgarten remarked that going forward a copy of the current issue of Metrolink Matters would be included in the board agenda packet and would be provided either electronically or by mail. Director Morris inquired if Metrolink s website included information regarding the events and promotions that were just reported on. Jeff Lustgarten confirmed that on the website s home page the events and promotions are highlighted and added that Metrolink s marketing department produces an e-newsletter that links to the website and gives a long range look at events and promotions that are planned. 3

9 Legislative and Communications Committee Agenda Page 4 Vice-Chair Hennessey inquired how the newsletters are distributed on trains. Jeff Lustgarten responded the newsletters are located in brochure holders located at the stairwells on each train. Vice-Chair Hennessey also inquired if a press conference had been held for the Angels Express. Jeff Lustgarten responded there had not been, but noted that a joint press release with OCTA was issued. He also remarked staff held its own release supplementing this. Director Morris inquired if in addition to the events promoted on Metrolink s website, if other opportunities to engage riders to take the train were promoted such as destinations to local bike paths for cyclists. William Ringland, Sales and Marketing Coordinator, responded that located on the website is a dedicated page located at which provides information on all bike trails in Southern California counties served by Metrolink. Robert Turnauckas also stated that Metrolink is promoting destinations that are in walking distance from its train stations and staff has reached out to shops and businesses who have shown interest in promoting their businesses through the Metrolink s Reward program. Jeff Lustgarten added that discussions are currently ongoing with several member agencies to promote more of their sponsored events in Metrolink Matters which would be of interest to their riders. A copy of the presentation is available upon request from the Committee Secretary. ACTION: The Legislative and Communications Committee received and filed this report. 6. Social Media Update Yean Jeon, Social Media Coordinator, provided an overview on how Metrolink is utilizing social media platforms such as Facebook, Twitter and Instagram in order to engage new and future customers, expand awareness and grow Metrolink s brand recognition online. Yena Jeon began by explaining how Facebook, which now has over 1 billion active users, redesigned its news feed in September 2012 changing how its followers received news feed updates. Responding to Director Morris inquiry regarding what the term active user represented, she clarified that 1 billion active users represented active user accounts but noted that a single person could have multiple accounts which are actively being used. She stated Facebook changed its layout to be more visual, incorporating larger photos along with information that engages viewers with content that interest them most. She also explained a recent Facebook algorithm change that determines what content from a users page a follower sees based on the percentage level of follower engagement 4

10 Legislative and Communications Committee Agenda Page 5 and likes. The more user engagement and likes early on, the more Facebook would continue to post on other followers pages. Director Morris inquired how Metrolink is adapting to Facebook s changes in order to engage its followers early on. Yena Jeon demonstrated, using Metrolink s Facebook page, how staff revised their platform to engage and maximize its reach to its followers by formatting posts that are more visual, highlighting photos and information that enables them to tell Metrolink s story. She gave several examples of posts which included Throwback Thursday, Train Tuesday and Happy Friday and posts that engage readers with questions such as, What are your weekend plans? She stated talking about is the strongest relationship builder indicator and noted the level staff has been able to take this has proven to be very successful. She noted that in February 2012, 108 followers were talking about Metrolink on Facebook which has grown to an average of approximately 400. Yena Jeon next gave an overview of the social media site, Twitter. She stated Twitter is a fast communications platform wherein messages are limited to 140 characters or less. She remarked that Metrolink currently has almost 10,000 followers and Twitter s platform is most useful for relaying immediate passenger communication. In the future, she stated Metrolink would like to use Twitter to strengthen its partnership with member agencies and other relevant agencies such as Federal Railroad Association (FRA), National Transportation Safety Board (NTSB) and American Public Transportation Association (APTA). Yena Jeon briefly reviewed several other popular social media sites which included Instagram, Pinterest, Google+, and Tumblr. She remarked the nature of social media is constantly changing and stressed the need to pay attention to these changes and adapt plans when necessary. She stated Metrolink s strategy is to leverage social media in a way that humanizes Metrolink and builds its brand awareness as being more than just a train but as a lifestyle option and connects with its customers and shares an interest in their environmental, political and societal concerns. Vice-Chair Hennessey thanked Yena Jeon and commended her on an outstanding and interesting presentation. A copy of the presentation is available upon request from the Committee Secretary. ACTION: The Legislative and Communications Committee received and filed this report. 7. Adopt Staff Recommended Positions on Legislation Patricia Torres Bruno, Government and Regulatory Affairs Manager reported that she would be presenting two bills for the Committee s consideration regarding recent state legislation relating to streamlining the Environmental Review Process for Transit 5

11 Legislative and Communications Committee Agenda Page 6 Projects [Assembly Bill 863 (Torres)] and Cap and Trade principles as outlined in items 7A and 7B. 7A. Assembly Bill 863 (Torres) Transit Projects: Environmental Review Process Patricia Torres Bruno, Government and Regulatory Affairs Manager, provided background on AB 863 introduced by Assemblywomen Norma Torres as detailed in the staff report. She stated that in SAFETEA-LU states were granted the option to conduct the national environmental review process, an authorization called NEPA delegation. Caltrans was designated as the lead agency because the process was originally granted for highway projects. MAP-21 extended this opportunity to transit projects and AB 863 designates Caltrans as the lead agency for transit purposes. This designation raised concerns from agencies throughout the state because Caltrans expertise is in highways, not transit. Local agencies have historically had greater expertise in transit. Since the staff report was written, Patricia Torres Bruno reported that the bill had become a two-year bill and recommended revising staff s recommended position on the legislation to Work with Author which would allow staff the time to work with the author s office to address concerns from Metrolink and the member agencies. Upon a motion by Director Morris and seconded by Director Millhouse, the Legislative and Communications Committee approved staff s recommendation as amended. There was no opposition and the motion passed unanimously. ACTION: The Legislative and Communications Committee approved and recommends the Board take a WORK WITH AUTHOR position on AB 863 (Torres). 7B. Adopt Cap and Trade Principles Patricia Torres Bruno, Government and Regulatory Affairs Manager, provided a brief background on this item as detailed in the staff report and requested approval of staff s recommendation. She stated that at the March Legislative and Communications Committee meeting, staff provided information regarding California s Cap and Trade program and also agreed to bring to the Committee a set of proposed principles for consideration to better position the Agency to receive funding as these issues are brought before the Legislature. Patricia Torres Bruno explained the context for adopting principles including the expectation that an investment plan for cap and trade revenues to accompany the May Budget revision and that additional legislation pertaining to the distribution of revenue generated by fuels, is likely to be introduced by Assemblywoman Lowenthal later in the month. Additionally, several advocacy coalitions were being formed, but that rather than joining a specific coalition, she felt it best to position the agency by working with 6

12 Legislative and Communications Committee Agenda Page 7 rather than joining a specific coalition. If joining a coalition was later optimal, she will seek Board approval. The proposed principles were reviewed by Patricia Torres Bruno and upon a motion made by Director Morris and seconded by Director Millhouse, the Legislative and Communications Committee approved staff s recommendation. There was no opposition and the motion passed unanimously. ACTION: The Legislative and Communications Committee approved and recommends the Board adopt the principles included in the staff report. 8. State and Federal Legislative Update Patricia Torres Bruno, Government and Regulatory Affairs Manager, provided an update on recent federal legislation that focused on President Obama s proposed budget that was released earlier that week. She reported that after a two month delay, President Obama had released his $3.7 trillion budget for fiscal year FY2014. The proposed budget outlined spending reductions to some entitlement programs, but also proposed major investments in infrastructure, manufacturing, education and in the environment. She stated it also makes the assumption that the sequester will be rolled back. Patricia Torres Bruno then reviewed highlights from the President s proposed budget for the U.S. Department of Transportation (USDOT) and reported that the budget request was $76.6 billion, which is a 5.5% increase over the FY2012. She then provided a breakdown of the USDOT budget proposal as follows: $50 billion for immediate transportation investments in infrastructure improvements which includes: $25 billion for highways, $9 billion for transit systems, $2 billion for passenger rail services, $2 billion for airports, and $2 billion for across the board transportation. $10 billion to spur economic investments which includes: $4 billion investment for Transportation Investment Generating Economic Recovery (TIGER) grant program, $2 billion for transportation leadership awards for innovative strategies, $3 billion for the rail service improvement program to improve inter-city rail service, $1billion on the modernization of the Nation s air traffic system (NextGen) and other initiatives including $130 million for Metro s New Starts projects, the Purple Line and the Regional Connector. 7

13 Legislative and Communications Committee Agenda Page 8 She also stated the President s budget supported the funding obligations outlined in the Moving Ahead for Progress in the 21st Century Act (MAP-21) and reserves funding for future transportation programs after MAP-21 expires in For FY2014, the President proposes $6.4 billion to continue construction of a national high performance rail network. This funding would be the first installment of the $40 bilion 5-year rail reauthorization bill. The budget proposal includes $6.6 billion for the Federal Railroad Administration (FRA). The FRA's portion of the budget proposal included $3.2 billion to develop new "highperformance" passenger-rail networks and fund Positive Train Control (PTC) implementation for commuter railroads and noted that this was the first time the President had included funds for the implementation of PTC. Patricia Torres Bruno stated that staff was still analyzing the budget proposal and would provide additional information as it becomes available. ACTION: The Legislative and Communications Committee received and filed this report. 9. Chief Administrative Officer s Report Robert Turnauckas recognized and thanked Claudia Ziebell, Communications Manager for her work at Metrolink and announced that she had accepted a new position in the private sector and would be leaving Metrolink in the upcoming week. He noted Claudia Ziebell s outstanding work on several projects including the Holiday Train and with social media communications. 10. Public Comment Vice-Chair Hennessey inquired if any members of the public wished to address the Committee. With there being no requests to speak, the Public Comment period was formally closed. 11. Chair s Comments There were no additional comments from the Chair at this time. 12. Committee Member Comments There were no additional comments from the Committee members at this time. 8

14 Legislative and Communications Committee Agenda Page Adjournment There being no further business for consideration by the Committee, the meeting was adjourned at 10:02 a.m. Respectfully submitted, Mary Saccoccio Committee Secretary 9

15 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: June 7, 2013 MEETING DATE: June 14, 2013 ITEM 5 TO: FROM: SUBJECT: Board of Directors Patricia Torres Bruno, Government and Regulatory Affairs Manager Adopt Staff Recommended Positions on Legislation Issue Staff is recommending positions on Assembly Bill 14 (Lowenthal) State Freight Plan and Assembly Bill 574 (Lowenthal) Greenhouse Gas Reduction Fund: Sustainable Communities Strategies. Recommendation Staff recommends the Legislative and Communications Committee recommend the Board adopt the staff recommended positions on state legislation: Item 5A. - AB 14 (Lowenthal) SUPPORT Item 5B. AB 574 (Lowenthal) SUPPORT Attachments Attachments 5A and 5B Prepared by: Patricia Torres Bruno, Government and Regulatory Affairs Manager Jennifer Cohen, Government Relations Administrator One Gateway Plaza, 12 th Floor, Los Angeles, CA

16 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: June 7, 2013 MEETING DATE: June 14, 2013 ITEM 5A TO: FROM: SUBJECT: Legislative and Communications Committee Patricia Torres Bruno, Government and Regulatory Affairs Manager Assembly Bill 14 (Lowenthal) State Freight Plan Issue Assemblymember Bonnie Lowenthal (D- Long Beach) has introduced AB 14 to require the California Transportation Agency (formerly Business, Transportation and Housing) to prepare a state freight plan that complies with the requirements of MAP-21 and to establish a Freight Advisory Committee. Recommendation Staff recommends that the Legislative and Communications Committee recommend that the Board of Directors take a Support position and instruct staff to monitor the advisory committee. Alternative The Legislative and Communications Committee may recommend an alternative position on the bill. Background California State law requires that the Department of Transportation prepare a state rail plan that includes freight elements. MAP-21 incentivizes states to develop freight plans that are consistent with federal guidelines. AB 14 would mandate that the California Transportation Agency prepare a state freight plan consistent with the federal guidelines, to be submitted by December 31, 2014 to the Legislature, Governor and certain state agencies and to update the plan every five years. Additionally, AB 14 instructs that a freight advisory committee with representatives of various freight stakeholders be established, to develop the state s Freight Mobility Plan. Given the major role that goods movement plays in California, there are additional efforts underway to address this important issue. Existing law requires the state to develop a statewide transportation improvement plan and for Caltrans to prepare a state rail plan that contains a freight element. Accordingly, the agency has already embarked on the development of the California Freight Mobility Plan that includes a Freight Advisory Committee. Caltrans also is working with California State University at Long Beach to update the 2007 Goods Movement Action Plan (GMAP). The Air Resources Board is also One Gateway Plaza, 12 th Floor, Los Angeles, CA

17 Assembly Bill 14 (Lowenthal) State Freight Plan Page: 2 developing a 2050 Vision for freight transport that considers environmental, efficiency, and economic stability. Federal Focus On Goods Movement MAP-21, the federal transportation reauthorization legislation directed USDOT to develop a national freight strategic plan that would assess the condition and performance of the freight network on a national level. The strategic plan is required to be completed in three years and updated every five years thereafter. In addition, MAP-21 encourages states to establish advisory committees and their own freight plans. The plans should include detailed plans for short term and long term planning purposes. Chairman Bill Shuster (R-PA) along with Vice Chair Jimmy Duncan (R-TN) announced the creation of the 21st Century Freight Panel. The panel will provide recommendations on key policy and funding matters related to our nation s freight system. The panel began a tour around the country to hear from key states and local stakeholders on emerging freight issues. The panel visited Southern California recently touring the Ports of Los Angeles and Long Beach and several important facilities in the Inland Empire. The panel also held a hearing in San Bernardino where local leaders testified on the importance of goods movement to our region and for the nation. In addition, Secretary Ray LaHood announced the creation of the National Freight Advisory Committee, which will include important transportation stakeholders that will advise and provide recommendations to the T & I Committee. The Secretary announced the membership on May 30th, which includes Assembly Transportation Committee Chair Bonnie Lowenthal, California Transportation Commissioner Fran Inman and several other members from California. The first public meeting of the Committee is scheduled for June 25th in Washington DC. Freight and Metrolink Goods movement in Southern California heavily utilizes rail. In fact, much of the track that Metrolink operates on is owned by freight railroads. Therefore, it is in Metrolink s interest to ensure that freight infrastructure is adequately represented and supported with policies and resources to ensure its efficiency and safety. Staff recommends that Metrolink work with its member agencies, freight rail partners and other stakeholders to support the efforts of the state freight plan and to advocate on behalf of improvements to the freight rail network. Supporting AB 14 is part of this effort and numerous member agencies have already registered their support for this bill. Therefore, staff recommends that Metrolink join local stakeholders Metro, OCTA, RCTC, and SCAQMD in supporting this bill. 12

18 Assembly Bill 14 (Lowenthal) State Freight Plan Page: 3 Budget Impact State investment in freight rail could have a direct impact on improvements and investments in the corridors where Metrolink operates. Prepared by: Patricia Torres Bruno - Government and Regulatory Affairs Manager Jennifer Cohen Government Relations Administrator 13

19 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: June 7, 2013 MEETING DATE: June 14, 2013 ITEM 5B TO: FROM: SUBJECT: Legislative and Communications Committee Patricia Torres Bruno, Government and Regulatory Affairs Manager Assembly Bill 574 (Lowenthal) Greenhouse Gas Reduction Fund: Sustainable Communities Strategies Issue AB 574 (Lowenthal) seeks to direct cap and trade revenues generated from the regulation of fuels towards transportation. Recommendation Staff recommends that the Legislative and Communications Committee recommend the Board of Directors take a Support position on AB 574 authored by Assembly Member Bonnie Lowenthal (D Long Beach). Alternative The Legislative and Communications Committee may choose to adopt an alternative position on the bill. Background The California Global Warming Solutions Act of 2006 authorizes the use of market based mechanisms to reduce greenhouse gas production. Existing law dictates that all funds generated from the market-based mechanism are to be deposited in a Greenhouse Gas Reduction Fund and funds are to be appropriated by the legislature. Additional legislation passed in 2012 directs the development of a three year expenditure plan (AB 1532, Perez) and that a portion of funds be used in Disadvantaged Communities. This bill intends to build on the existing legislation to address revenues generated from the fuel industry, which officially begins in AB 574 proposes that revenues generated from motor vehicle fuels be allocated to projects, programs and policies that reduce greenhouse gas emissions from the transportation sector. This designation is in keeping with the statistics from the California Air Resources Board, that transportation is the largest source of greenhouse gas emissions. One Gateway Plaza, 12 th Floor, Los Angeles, CA

20 Assembly Bill 574 (Lowenthal) Greenhouse Gas Reduction Fund: Sustainable Communities Strategies Page 2 Previous legislation relating to the revenues from cap and trade did not specifically address fuel industry related funds. However, in anticipation of regulation, members of the fuels industry have been procuring vintage credits, or credits that can be purchased now but used in the future. As a result, revenue related to fuels is being generated in advance of the official regulatory period. The author agreed to amend the legislation to reflect that in the SCAG region funds will be administered by the county transportation commissions. This administrative structure has been utilized in previous fund distributions and was developed and agreed upon by the transportation commissions and SCAG prior to being inserted into the legislation. Governor Brown s revised budget proposes that $500 million of the cap and trade revenues be loaned to the General Fund, rather than be allocated to projects. At the time of this writing, the Senate and Assembly were considering amending that proposal given that numerous stakeholders in cap and trade were concerned by the Governor s proposal. Support of this bill is in keeping with the principles of the adopted 2013 Legislative Program and the cap and trade principles adopted by the Board of Directors in May The bill is currently in the suspense file in the Assembly Appropriations Committee and at this time it is not clear if the legislation will make it out of Committee. The bill is also conflicting with the direction the Governor is going for cap and trade allocations. However, Metrolink staff would like the Legislative Committee to support AB 574 and the cap and trade structure proposed in the bill in the event that this bill moves or if this bill language advances in another legislative vehicle. Staff recommends the Legislative and Communications Committee to adopt a Support position on AB 574. Budget Impact The designation of cap and trade revenues for transportation purposes could provide funding for Metrolink, therefore a budget impact is feasible, however that amount is not yet known. Prepared by: Patricia Torres Bruno, Government & Regulatory Manager Jennifer Cohen, Government Affairs Administrator 15

21 SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY TRANSMITTAL DATE: June 7, 2013 MEETING DATE: June 14, 2013 ITEM 6 TO: FROM: SUBJECT: Legislative and Communications Committee Patricia Torres Bruno, Government and Regulatory Affairs Manager State and Federal Legislative Update Issue Staff will provide an update on current legislative issues in State and Federal Government Affairs. Recommendation The Legislative and Communications Committee may receive and file this report. Alternative The Legislative and Communications Committee may choose to act upon the information provided. Background Each month staff provides the Committee with a summary of recent developments emerging from the State Legislature and Congress that are of interest to the agency. State Budget On May Governor Brown released his revised budget. The revised budget proposal made adjustments on account of changing economic and fiscal conditions nationally and within California, since the January 2013 proposal. The Governor reaffirmed that revenue for the state has grown and that the austere budgetary decisions of previous years have yielded greater financial stability. However, the national economic outlook has dimmed since January and he expects many of the state s revenue increases to be short-lived. As a result, the only area to have grown significantly in the revision is public education, which the governor proposes to provide an additional $19 billion by , including an additional $2.9 billion in the current year. One Gateway Plaza, 12 th Floor, Los Angeles, CA

22 State and Federal Legislative Update Page 2 Three days later on May the Legislative Analyst s Office (LAO) released a report analyzing Brown s proposed budget revision. The LAO generally concurred with the Governor s assertion that the state s fiscal condition has improved but that several reasons remain for the Legislature to be cautions in its budgetary actions. The LAO, did, however make more optimistic assumptions regarding economic growth than those described by the Department of Finance. The majority of the LAO s analysis focuses on those various assumptions. There was also some discussion of the Governor s proposal to lend the general fund revenues generated from cap and trade auctions. The Governor is proposing to lend the general fund $500 million of those revenues. This proposal has been met with concern by those seeking to use those revenues for greenhouse gas reducing activities. The LAO states that this loan is unnecessary and adds to the wall of debt that the Governor has been working to erode. The Senate and Assembly budget subcommittees that have reviewed this proposal also expressed disappointment and confusion regarding this proposal. The Senate subcommittee considered formally rejecting the loan, but ultimately the full budget committee did affirm the loan. The Assembly subcommittee opted to adopt an alternative proposal which allows $400 million to be loaned to the General Fund, leaving $100 million unappropriated and subject to legislation for expenditure. The differences on this issue will be addressed in the conference committee. Environmentalists, SB 535 supporters (designates funding for Disadvantaged Communities ), housing advocates and others monitoring the cap and trade program have been expressing similar sentiments that the governor s proposal undercuts the intentions of the program. State Legislation Assembly Bill 160, Assemblymember Alejo s (D Salinas) bill to exempt unionized public transit employees from the Public Employees Pension Reform Act of 2013 (PEPRA) has been made into a two year bill. The bill was made an urgency bill so that it is not constrained to legislative procedural rules. This provision will allow the bill to move at any time but do not expect any action to occur relating to this issue until Following the passage of California s pension reform legislation last year, public transit unions filed objections with the United States Department of Labor (USDOL) that PEPRA violated the 13(C) provision of the Federal Transit Act relating to collective bargaining. The objections being filed have resulted in millions of dollars in federal funding for transportation to be held up. While the funding risk is substantial, the potential impacts of eroding pension reform could also prove costly. Staff will continue supporting member agencies on this effort. Assembly Bill 8 (Perea/Skinner) and Senate Bill 11 (Pavley) are the two bills that propose an extension of the Carl Moyer program. $17 million of the Air Quality Management District s (AQMD) funding commitment towards our procurement of Tier IV locomotives is 17

23 State and Federal Legislative Update Page 3 contingent upon the extension of this funding program. At the time of this writing, the Senate Bill had been approved and was moving to the Assembly. Meanwhile, AB 8 was awaiting consideration by the Assembly appropriations committee. Staff is monitoring these bills closely and providing letters of support and advocacy in conjunction with a large coalition of supporters. Update on the Federal Appropriations Process Congress has begun to make slow progress on moving the FY14 appropriations process, despite the large differences between the House and Senate FY14 Budget Resolutions. Currently the House and Senate are roughly $91B apart in their overall discretionary budget proposals, with House conservatives pressuring for spending to be capped at $967B to include sequestration cuts, and the Senate siding with the Administration s proposal to eliminate sequestration and set spending at $1.06T. On May, the House Appropriations Committee approved their spending caps for each of the appropriations bills, also known as 302(b) sub-allocations. As way of background, the House and Senate sub-allocate their spending levels among the subcommittees. These sub allocations are called 302(b) and set limits on spending for each of the 12 appropriations bills. They maintained the $967 billion funding level that reflects the sequester cuts and the levels adopted in the Budget Control Act of 2011 and the American Taxpayer Relief Act of 2012 Defense. Defense and military spending were the only two bills that saw an increase in their spending compared to FY 2013 enacted levels. House Democrats urged a delay in adoption of the appropriation caps until the Senate and House budget resolutions could be reconciled, however, House Appropriations Chairman Hal Rogers (R-KY) could not wait any longer to proceed with the appropriations bills despite the damaging impacts of the sequester. The Senate Appropriations Committee plans to consider their 302(b) allocations sometime in June and pass their FY14 spending bills before the August recess. On May, the House passed (421-4) the Military Construction and Veterans Affairs bill, and on May, passed the Homeland Security bill. The President has threatened a veto on any appropriations bills until the House and Senate can reach a budget agreement. Congressional Focus on Freight and Goods Movement Chairman Bill Shuster (R-PA) along with Vice Chair Jimmy Duncan (R-TN) announced the creation of the 21st Century Freight Panel. The membership of this special panel is composed of members from the House Transportation & Infrastructure Committee including two members from California, Rep. Gary Miller (R-CA) and Rep. Janice Hahn (D- CA). The panel will provide recommendations on key policy and funding matters related to our nation s freight system. The panel had its first meeting on April 24th and began a tour around the country to hear from key states and local stakeholders on emerging freight issues. The panel visited Southern California recently touring the Ports of Los Angeles and 18

24 State and Federal Legislative Update Page 4 Long Beach and several important facilities in the Inland Empire. The panel held a roundtable at the ports and received testimony from key local business, labor and transportation agencies about the importance of goods movement to our economy and the impacts to our communities. Rep. Gary Miller discussed the impacts to the Inland Empire and the important role it plays in goods movement. The panel also held a hearing in San Bernardino where local leaders testified including Southern California Association of Governments (SCAG) CEO Hasan Ikhrata, former CEO of the Alameda Corridor-East Construction Authority Rich Richmond, Executive Director Marnie Primmer of Mobility 21 and Union Pacific Vice President for Public Affairs Scott Moore. The panel will now visit other important goods movement hubs throughout the country. National Freight Advisory Committee Membership This spring, Secretary Ray LaHood announced the creation of the National Freight Advisory Committee, which will include transportation stakeholders from outside the Department of Transportation. The Committee will advise and provide recommendations on the state of the national freight systems and the interaction with other modes of transportation. In Southern California, there were efforts to ensure that the Committee had strong representation from our region. The Secretary announced the membership on May 30th, which includes Assembly Transportation Committee Chair Bonnie Lowenthal, California Transportation Commissioner Fran Inman and several other members from California. The first public meeting of the Committee is scheduled for June 25th in Washington DC. Status of Confirmation Process for Secretary of Transportation President Obama s nominee for Secretary of Transportation, Mayor Anthony Foxx from Charlotte, North Carolina, recently kicked off his confirmation process at the Senate Commerce, Science and Transportation Committee. Mayor Foxx s confirmation hearing went relatively smoothly however the Committee did not vote. The Committee is expected to vote off the floor on Monday, June and then the full Senate will take a vote on his confirmation. Staff anticipates the confirmation process to be complete as soon as next week. Status of APTA Position on Positive Train Control (PTC) Implementation APTA s position on PTC implementation was debated at the American Public Transit Association (APTA) annual rail conference in Philadelphia. APTA s current position continues to advocate for allowing alternative technologies to be used in lieu of PTC. In addition, they are advocating support for the extension of the federal mandate from 2015 to Metro, OCTA and Metrolink raised our serious concerns with this position and the concerns from our local and regional partners including members of our legislative delegation. Senator Feinstein and Congressman Waxman sent letters to APTA CEO Michael Melaniphy conveying that alternative technologies must be interoperable and offer the same safety benefits as PTC. More recently, Senator Boxer, Chairwoman of the 19

25 State and Federal Legislative Update Page 5 Environment and Public Works Committee sent a letter to APTA s CEO in which she expressed her concerns with any efforts to substitute less effective technologies for PTC. APTA has instructed a number of their subcommittees, including the Commuter and Intercity Rail and Legislative Subcommittees, to review their position on PTC. Although this is now APTA s official position, their CEO has agreed to work with us to find a resolution so that the members of APTA can advocate the industry message with one voice. Staff will continue to work with member agencies and legislative partners on this important policy issue. Budget Impact There is no immediate budget impact as a result of this update. Prepared by: Patricia Torres Bruno - Government and Regulatory Affairs Manager Jennifer Cohen Government Relations Administrator 20