Press Release

FEDERAL FUNDING FOR HIGH-SPEED RAIL DEDICATED TO THE CENTRAL VALLEY 

  $4.3 Billion Will Go Toward Establishing Core of California System 

SACRAMENTO – Following last week’s announcement of an additional $715 million award for the development of California’s high-speed rail system, federal officials have clarified that the entirety of federal funding California has received so far must be spent in one of the two Central Valley sections of the project.

Which means approximately $4.3 billion in infrastructure investment will be directed somewhere in the region between Merced and Bakersfield.

California High-Speed Rail Authority CEO Roelof van Ark announced today that a letter received Wednesday from Federal Railroad Administrator Joe Szabo outlines the federal agency’s requirement that all federal funds for the project must be directed to either the Merced-to-Fresno or to the Fresno-to-Bakersfield portion of the project. The available funding total incorporates the Authority’s January 2010 American Recovery and Reinvestment Act (ARRA) federal funding award, matched dollar-for-dollar with state funds, and last week’s award of $715 million matched with an additional 30 percent in state funding.

“The Central Valley is indeed key to creating the core of a true high-speed rail system in California, as that is where our trains will travel truly high speeds of 220 miles per hour,” van Ark said. “But no matter where we start building, the goal remains the same: a statewide high-speed rail system up and running in 2020 connecting the Bay Area with the metropolitan area of Los Angeles and Anaheim, that creates thousands of jobs, improves air quality, and provides us all with a cheaper, faster and more convenient way to travel.”

The first phase of the 800-mile project will connect the Bay Area with Los Angeles and Anaheim, traveling through Merced, Fresno and Bakersfield. California has received the largest amount of federal funding awarded to this work in any state, which signals that the project has the confidence of the Obama administration.

Board members meet today to consider formal criteria to guide the selection of which of the segments of the project will receive the initial capital funding. The proposed criteria reflect both the legal requirements in Proposition 1A and federal law, as well as steps to maximize the benefits to the public while minimizing risks to project completion.

The legal requirements include meeting the federal deadline of fall 2017 for completing construction and “operational independence” – meaning quantifiable benefits such as improved travel reliability, reduced travel time, or more frequent intercity rail service, even if the overall high-speed rail system is not completed.

Other factors proposed for consideration include ensuring that the first segment built forms the core of a statewide system; building the most useful high-speed train infrastructure at the lowest cost; and any other factors, including potential litigation, that could delay construction.

The Board is scheduled to select the project section which is first to be constructed at its December meeting. The selection of a heavy maintenance facility will not be a part of that decision, and will not be decided until after the environmental review process has been completed.

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