California State Rail Plan 2007-08 to 2017-18

Chapter XI – AmtrakCHAPTER XIAMTRAKThis chapter provides information on: Amtrak’s relationship with the Departmentand with the CCJPA, key Amtrak planning initiatives, and recent Amtrak reformproposals and budget.AMTRAK’S RELATIONSHIP WITH THE DEPARTMENT ANDTHE CAPITOL CORRIDOR JOINT POWERS AUTHORITYThe Department provides operating funding for three intercity rail passengerservices, the Pacific Surfliners, San Joaquins, and the Capitol Corridor.Amtrak operates all three services under the provisions of Section 24101(c)(2) ofthe Federal Rail Passenger Service Act. That Section authorizes Amtrak tooperate intercity rail passenger service beyond its basic system services whenrequested to do so by a state, group of states, or a regional or local agency.The Department directly administers the Pacific Surfliners and San Joaquins.(Amtrak funds 30 percent of the Pacific Surfliner service as part of its basicsystem, and the State pays for the remaining 70 percent of this service.)The Capitol Corridor Joint Powers Authority (CCJPA) administers theCapitol Corridor service under a 1998 interagency transfer agreement withthe State.In the past, Amtrak provided significant fiscal support to state-supported routes.Then, over time, the share of service costs (called cost basis) that Amtrak requiredstates to pay increased significantly. Between FFY 1992 and FFY 1999, the costbasis increased each year. Starting in FFY 1999, the State paid 100 percent of allvariable costs and Amtrak covered all fixed costs. Since then, the cost basis hasremained fairly constant. Starting in FFY 2000, the CCJPA entered into fixedprice-operating contracts with Amtrak for the Capitol Corridor service.In the fall of 2002, Amtrak modified the cost allocation principle slightly torecovery of “direct costs” which include all train related costs and a portion ofshared costs, but excludes system overhead, interest and depreciation. Costs onthis basis actually decreased slightly on the Pacific Surfliners for the same level ofservice, primarily because the State is no longer charged equipment capital costsfor the use of Amtrak owned equipment. State contract costs have been constantfor the five years from 2002-03 through 2006-07. State operating costs have neverbeen constant for such a long period of time in the history of State-supportedservice. However, State costs in 2007-2008 will increase by $6.6 million.The Department pays the entire net operating loss of the feeder buses that servethe State-supported routes. The operating loss consists of the entire bus operatingcosts (as billed by the contract bus operator) minus the feeder bus revenue credits.185