BILL NUMBER: SB 1010	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JANUARY 4, 2006
	AMENDED IN SENATE  SEPTEMBER 7, 2005
	AMENDED IN SENATE  APRIL 5, 2005

INTRODUCED BY   Senator Florez

                        FEBRUARY 22, 2005

   An act to add  Section   Sections 7665 and
 10025 to the Public Utilities Code, relating to rail service.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1010, as amended, Florez  Rail service: City of Shafter.
   Existing law authorizes municipal corporations to acquire,
construct, own, operate, or lease any public utility.
   This bill would authorize the City of Shafter to  use
certain locomotive units owned by or in the possession of the state,
to operate unit intermodal railroad service between the City of
Shafter and the Port of Oakland. The bill would authorize the City of
Shafter to contract with a railroad that is a rail carrier providing
transportation subject to the jurisdiction of the federal Surface
Transportation Board, to permit that railroad to operate such a
locomotive unit, or other locomotives acquired or leased by the city,
to provide intermodal railroad service between the City of Shafter
and the Port of Oakland, and to provide financial or other support
for rail carries seeking access to specified tracks and facilities.
The bill would authorize the City of Shafter to  establish a
separate governing body for the purpose of operating an intermodal
rail facility  within the City of Shafter  and to obtain
financing  as prescribed   , or enter into other
leases or contracts relating to the financing, construction,
operation, or use of an intermodal rail facility  . The bill
would require the City of Shafter to use all revenues received from
the operations of an intermodal rail facility solely for public or
municipal purposes, as defined.
   The bill would require a freight railroad that owns or operates a
line in the state to prepare and submit a report on track utilization
and capacity to the  Public Utilitites C   ommission,
to the  Department of Transportation  ,  and  to
 the State Air Resources Board,  commencing on July 1,
2006, and annually thereafter   annually on or before
July 1  . The bill would require the  commission and the
 department  , on or before March 1, 2006,  to
develop procedures to define and report track utilization and
capacity.  
   The bill would require the State Air Resources Board, on or before
July 1, 2006, to adopt regulations to require a railroad owning or
operating a line between the Port of Oakland and the City of Shafter
to contribute to the reduction of air pollution, as described.

   The bill would declare that, due to the special circumstances
applicable only to the City of Shafter, a general statute cannot be
made applicable within the meaning of Section 16 of Article IV of the
California Constitution, and the enactment of a special statute is
therefore necessary.
   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.  (a) Rail carriers that own or operate railroad lines in
the state may have sufficient available unused capacity on those
lines to permit the movement of additional trains or traffic over
those lines without unreasonably interfering with the ability of the
owner or operator to provide safe and efficient service to its
existing customers.
   (b) It is the policy of this state to encourage owners or
operators of rail lines with available unused capacity to permit the
use of these lines for international traffic that originates in, or
is destined for consumption, manufacturing, warehousing or other
value-added purposes within, the state, or to permit other rail
carriers to use the lines to move traffic via rail that would
otherwise move over highways, thus reducing congestion on the roads
and contributing to reductions in air and noise pollution.
   (c) The public interest is served by arrangements as described in
subdivision (b).
   SEC. 2.    Section 7665 is added to the  
Public Utilities Code   , to read:  
   7665.  A freight railroad that owns or operates a line in the
state shall prepare and submit to the commission, to the Department
of Transportation, and to the State Air Resources Board annually on
or before July 1, a report on track utilization and capacity, in
order to provide data to be used in the regulation of air pollution
and other purposes within the authority of the Department of
Transportation and the State Air Resources Board. The commission and
the Department of Transportation shall develop procedures to define
and report track utilization and capacity. 
   SEC. 2.   SEC. 3.   Section 10025 is
added to the Public Utilities Code, to read:
   10025.  (a) The City of Shafter is hereby authorized to do
 all   both  of the following:  
   (1) Use any locomotive units owned by or in the possession of the
state at times that those locomotive units are not in use for
commuter or intercity passenger rail or other regularly scheduled
rail service, to operate unit intermodal trains, whether loaded or
empty, or both, between the California Integrated Logistics Center
and the Port of Oakland.  
   (2) Enter into a contract with any railroad that is a rail carrier
providing transportation subject to the jurisdiction of the federal
Surface Transportation Board to permit that railroad to use the
locomotives described in paragraph (1), or other locomotives that the
City of Shafter may acquire or lease, for the purpose of operating
unit intermodal trains, whether loaded or empty, or both, between the
City of Shafter and the Port of Oakland, and between each of the
terminal facility points between Shafter and Oakland. 

   (3) Provide financial or any other form of support to any rail
carrier that seeks authority from the federal Surface Transportation
Board to do either of the following:  
   (A) To use, pursuant to Section 11102(a) of Title 49 of the United
States Code, the terminal facilities or main line tracks for a
reasonable distance outside of a terminal owned or operated by
another rail carrier.  
   (B) To otherwise seek authority to use tracks and facilities of
another rail carrier when the purpose of that application for
authority from the federal Surface Transportation Board is to secure
the ability to move intermodal unit trains, whether loaded or empty,
or both, between the City of Shafter and the Port of Oakland.
 
   (4) 
    (1)    Establish a separate governing body, in
whichever form it determines to be most appropriate, for the purpose
of operating an intermodal rail facility within the City of Shafter,
and any governing body so established shall be created, organized,
and maintained in a manner that complies with all applicable laws,
including, but not limited to, the charter amendment procedures
provided for under state law, as applicable.  
   (5) 
    (2)    Obtain financing, or enter into other
leases or contracts relating to the financing, construction,
operation, or use of an intermodal rail facility. If required, the
City of Shafter may take reasonable steps, including, but not limited
to, the pursuit of charter amendments or other authorization under
law, to obtain that financing or to enter into contracts necessary
for the financing, construction, operation, or use of an intermodal
rail facility.
   (b) The City of Shafter shall use all revenues received from the
operations of an intermodal rail facility as described in subdivision
(a)  above  , if any, solely for public or
municipal purposes. As used in this subdivision, "public or municipal
purposes" means any purpose that the legislative body of the City of
Shafter determines to be for the benefit of the operation and
development of the intermodal rail facility, the citizenry of the
City of Shafter as a whole, or the City of Shafter in its capacity as
a municipal corporation.  
   (c) A freight railroad that owns or operates a line in the state
shall prepare and submit to the Department of Transportation and the
State Air Resources Board, on or before July 1, 2006, and annually on
or before July 1 thereafter, a report on track utilization and
capacity to provide data to be used for the regulation of air
pollution and other purposes within the authority of the Department
of Transportation and the State Air Resources Board. On or before
March 1, 2006, Department of Transportation shall develop procedures
to define and report track utilization and capacity. 

   (d) On or before July 1, 2006, the State Air Resources Board shall
adopt regulations pursuant to Section 39601 of the Health and Safety
Code to require a railroad owning or operating a line between the
Port of Oakland and the City of Shafter to contribute to the
reduction of air pollution, allowing for the increased use of rail
lines along this corridor to transport intermodal trains, whether
loaded or empty, or both, between the Port of Oakland and the City of
Shafter, and between each of the terminal facility points between
Shafter and Oakland, to supplant existing truck traffic, as
authorized by Sections 110 and 116 of the federal Clean Air Act (42
U.S.C. Secs. 7410 and 7416).  
   (e) This section shall be effective notwithstanding any other
provision of law and to the extent permissible under federal law.
This section does not authorize the State Air Resources Board to
adopt any regulation that is within the scope of preemption
established in Section 209(e) of the federal Clean Air Act (42 U.S.C.
Sec. 7543(e)) and Section 85.1603 of Title 40 of the Code of Federal
Regulations.  
   (f) If any provision of this section or the application thereof to
any person or circumstance is held invalid, it is the intent of the
Legislature that the invalidity not affect other provisions or
applications of the section that can be given effect without the
invalid provision or application, and to this end the provisions of
this section are severable.  
   SEC. 3.   SEC. 4.   The Legislature
finds and declares that, because of the unique circumstances
applicable only to the City of Shafter, a statute of general
applicability cannot be enacted within the meaning of subdivision (b)
of Section 16 of Article IV of the California Constitution. Because
of its proximity to agricultural production, proximity to import and
export distribution locations, and existing rail line infrastructure,
the City of Shafter is uniquely situated to provide integrated
logistical railroad service to serve both domestic and international
needs in a manner that will relieve congestion in the state's harbors
and on its highways. Therefore, this special statute is necessary.