An Argument Against the California Legislature’s Release of $2.7 Billion in Proposition 1A Rail Bonds
As a safeguard against what might be termed a “stranded investment”, the Californian High Speed Rail Authority is required to submit to the legislature (and other parties) a “detailed funding plan for the corridor or usable segment thereof”, for which they are seeking state bond funds [Note 1].
AB 3034 section 2704.01 paragraphs (d) through (g) define important terms:
(d) “High-speed train” means a passenger train capable of sustained revenue operating speeds of at least 200 miles per hour where conditions permit those speeds.
(e) “High-speed train system” means a system with high-speed trains and includes, but is not limited to, the following components: right-of-way, track, power system, rolling stock, stations, and
associated facilities.
(f) “Corridor” means a portion of the high-speed train system as described in Section 2704.04.
(g) “Usable segment” means a portion of a corridor that includes at least two stations.
In their Draft 1012 Business Plan released in November 2011 the Authority proposed building an “Initial Construction Segment” (ICS) in the Central Valley using roughly $3.3 billion in federal funds and $2.7 billion in state rail bonds. The proposed ICS was not to be electrified and there was to be no high-speed rolling stock. In other words, it would not be ready for high-speed train service when completed. Opponents of high-speed rail Continue reading →