Chronology of NCRA & SMART
•
In 1989, the California Legislature enacted legislation creating
the North Coast Railroad Authority (NCRA) to ensure the continuation of freight
rail service on the former Northwestern Pacific Railroad line from the national
interchange south of Napa to the Port of Humboldt Bay.
•
In 1992, the California Transportation Commission (CTC) authorized
the NCRA to utilize $6.1 million in Proposition 116 Bond funds to purchase the
northern end of the rail line from Willits to Samoa and branch lines in
Carlotta, and Areata to Blue Lake.
•
In 1996, the CTC authorized NCRA and SMART'S predecessor, The Northwestern Pacific Railroad Authority (NWPRA),
to utilize $42 mil. in state and federal funds to acquire the rail line south
of Willits in 3 segments:
1.
The Willits segment from Willits to Healdsburg was acquired by
NCRA;
2.
The Healdsburg segment from Healdsburg to Novato/Hwy 37 was
acquired by NWPRA (SMART);
3.
The Lombard segment from Novato/Hwy 37 to the national rail
interchange south of Napa was acquired by NWPRA (SMART).
•
NCRA became the fee
owner of the Willits segment and granted NWPRA (SMART) an exclusive passenger
rail easement to operate commuter trains from Healdsburg to Willits.
Conversely, NWPRA (SMART) became the fee owner of the Healdsburg and Lombard
segments and granted NCRA an exclusive freight rail casement to operate freight
trains from Healdsburg to Novato/Hwy 37 and east to the national rail
interchange Lombard/Napa Junction.
•
In 1998, following
devastating floods, the Federal Railroad Administration (FRA) issued Emergency
Order 21 which shut down the entire railroad from Humboldt County to the Napa
Junction until the line could be repaired to meet FRA safety standards.
•
In 2002, the
California legislature enacted AB 2224 (Nation) which, among other things,
created the Sonoma Marin Area Rail Transit District (SMART) to replace the
NWPRA and set the ground rules for SMART and NCRA in terms of the shared use of
a single track in Marin and Sonoma Counties.
•
In 2006, the NCRA
selected the NWP Co. to be its freight operator for the Russian River Division
from Napa Junction to Willits.
•
In 2008, SMART'S measure
Q, imposing a 1/4 % cent sales tax in Sonoma and Marin Counties for SMART commuter
service from San Rafael to Cloverdale was adopted.
•
2006-201 1, NCRA used
$60 mil. in state and federal capital grants, and a federal RRIF loan to repair
the track way, bridges and crossing signals from the national railroad
interchange (Napa Junction) to Novato/Hwy 37, and north to Windsor. The FRA
inspected this 62-mile section of track and subsequently lifted Emergency Order
21, thereby authorizing 25-40 mph freight rail service on this section of
track.
•
In 2011, the NWP Co.
began operating freight service under its 2006 contact with NCRA to run freight
trains on the Russian River Division from Napa Junction to Willits. NWP Co. has
continued its freight operations between Napa Junction and Windsor, under a
2011 Operating and Coordination Agreement Amended in Dec. 2017) between SMART and
NCRA. In the meantime, SMART upgrades to the shared track were completed in
2017 to accommodate 79 mph commuter trains, and SMART revenue service from San
Rafael to Airport Blvd. in Sonoma County began in August 2017.
Senator McGuire’s SB 1029
•
In 2018, the
California legislature enacted SB 1029 (McGuire) which requires the California
State Transportation Agency (CalSTA) and the State Resources Agency to conduct
an assessment to determine the most appropriate way to dissolve the NCRA and to
dispense with its assets and liabilities. The bill requires these
state cabinet level agencies to complete their findings and report back to the
legislature no later than July 1, 2020.The NCRA is required to cooperate with
the assessment and to provide access to all NCRA records requested by the state
agencies conducting the assessment. SB 1029 (McGuire) also includes Section 17
which reads:
"The sum of $4 mil. is
hereby appropriated to the State Transportation Agency from the Public
Transportation Account for rail improvements on the corridor owned by SMART and
NCRA. These moneys shall be allocated to SMART for the acquisition of freight
rights and equipment from NWP Co. to ensure efficient provision of goods
movement requirements in the corridor in the context of growing passenger
service. Following a signed baseline agreement between the State Transportation
Agency and SMART that articulates deliverables, the anticipated expenditure
schedule, and reporting requirements, the Secretary of Transportation may
transfer these monies to SMART pursuant to the provisions of the baseline
agreement. These monies shall not be transferred to SMART for the acquisition
of freight rights and equipment from NWP Co. unless the terms and conditions of
the baseline agreement have been approved by both the Secretary of
Transportation and the Director of Finance. If these moneys are not transferred
to SMART within two-years of the chaptering of this act, these moneys shall be
returned to the Public Transportation Account."
SMART Board
Implementation of Section 17 of SB 1029
• On May 20, 2020,
the SMART Board of Directors took action to implement Section 1 7 of SB 1029
(McGuire) by adopting the following staff recommendations:
1.
Approve the concept
of SMART becoming a Common Carrier and Freight service provider (directly or
through a contract) with the understanding of all of its privileges,
opportunities and obligations from Sonoma-Mendocino County line south and east
to Napa River.
2.
Accept the additional
right-of-way from Downtown Healdsburg to Sonoma-Mendocino County Line (20.8
miles).
3.
Authorize the General
Manager to execute the "Asset Transfer Agreement" between SMART and
NWP Co. in substantially the form attached hereto as (Attachment 2).
4.
Authorize the General
Manager to execute the Baseline Agreement between State of California and SMART
in substantially the form attached hereto as (Attachment 3).
5.
Direct the Chair of
the Board and General Manager to work with Senator McGuire, other State
Legislators, Governor, and his/her administration to secure the funding needed
for the ongoing maintenance and capital project of the freight area.
6.
Authorize General
Manager to file required documents with the Surface Transportation Board
authorizing SMART to acquire railroad right-of-way and transferring common
freight carrier rail operations authority to SMART for all freight services
south of Mile Post 89.
7.
Authorize General
Manager to issue a Request for Proposal to seek a freight consultant who would
perform Economic Feasibility Study of the entire SMAR 1 owned area and analysis
for the options to provide freight services in the future.
8.
Authorize General
Manager to negotiate and execute an agreement with NWP Co. to provide interim
service to the existing freight customers until the Board has made a permanent
decision.
9.
Request the Chair of
the Board to assign a number of Board members and the General Manager to meet
with officials from County of Sonoma, Town of Sonoma, First Responders and the
affected Community regarding the future of the existing practice of storage of
Liquidated Petroleum Gasoline (LPG) and report back to the Board in a future
public meeting.
Several of the
actions authorized by SMART'S Board on May 20, 2020 will
require cooperation by NCRA to be completed. Initially, staff recommends the
Board support the proposed SMART/NWP Co. transaction, contemplated by S.B.
1029, by taking all steps necessary at this time to allow completion of that
transaction by confirming its approval thereof in the manner required by the
2006 contract with NWP Co. Additional steps by NCRA will likely be needed to
assist SMART in fulfilling the above-described goals, particularly in light of
the information and recommendations expected to be communicated by the State of
California upon the completion of its analysis of NCRA's present and future,
currently under way. Accordingly, staff further recommends the Board direct
staff to undertake discussion and negotiation with SMART regarding additional
actions in furtherance of the goal of SMART becoming the Common Carrier and
Freight service provider from Sonoma-Mendocino County line south and east to
Napa River.
At this time, staff
recommends that the board take the following actions:
1) Authorize the
Executive Director, on behalf of the Board of Directors, to grant permission to
NWP Co., pursuant to Section Vll(B) of the 2006 Lease, to make such
applications to the STB regarding modification or termination of service as
necessary or prudent to complete the transfer of rights from NWP Co. to SMART
with respect to all operations and rights south of Mile Post 89
