Voters, Obama Administration Put California High Speed Rail Project on Fast Track

Quentin Kopp: Let me take you through some of the agenda with respect to the California high-speed rail project...the California High-Speed Rail Authority consists of a nine member board, with five members appointed by the governor, two appointed by the Senate Rules Committee, and two by the speaker of the Assembly. In 2002 the Legislature, on a bill by then state Senator Jim Costa, who is now a member of the House of Representatives, authored a $9.9 billion bond introduced to voters in 2004. Something happened on the way to the ballot; there was a recall and as a result, in 2006, the new governor had other transportation priorities. We were on the ballot finally in November of 2008. The weekend before the election we were behind, below 40 percent. On election night, at about midnight, there was a cheer because almost 53 percent of California voters said "Yes" to Prop 1A.

High-speed rail is not new in this world. It started operation in Japan nearly 44 years ago with the inception of the Shinkansen system. That system was developed and operated for revenue service beginning in 1981 in France with the TGV. Germany began the ICE system in 1991. Spain, in 1993, began operating their system. It now operates in Asia, in South Korea and Taiwan, and in Europe, in Italy, Switzerland, Holland, and Belgium. About a year and a half ago it opened in the U.K.

What are we talking about? What is "high-speed?" High-speed is not the system along the Northeast Corridor, where trains travel 85 miles per hour and hit a top speed of about 150 miles per hour for about 30 to 31 miles. We are talking about trains traveling at up to 220 miles per hour-steel wheels on steel tracks, electrically powered. In fact, the French two years ago next month put a test track down for operation and ran a train at 357 miles per hour.

Almost two years ago-it will be two years ago this summer-the high-speed rail board adopted the first phase of the project, which runs from San Francisco, with a stop at Union Station, and continuing on to Anaheim. Anaheim will have a new depot-a Grand Central-type station-called the "Anaheim Regional Transportation Intermodal Center" (ARTIC). The train will take you from San Francisco to Anaheim in two hours and 58 minutes, and Union Station to Downtown San Francisco in two hours and 38 minutes. That is high-speed rail. We are not going to travel through San Francisco at speeds higher than 125 miles per hour due to population density, nor between Anaheim and Union Station. But in between San Jose and Union Station those trains will fly at 220 miles per hour.

Other factors in respect to high-speed rail that must be known to every Californian and every American. We have a new president of the United States, who has stated publicly, and who has a secretary of Transportation on-board with him, that high-speed rail could be his transportation legacy as president of the United States.

The first phase runs from San Francisco to Anaheim, with stations in San Jose, Merced, Fresno, Bakersfield, Palmdale, and Irvine. The second phase connects to San Diego, with Ontario, Riverside, Murrieta, Escondido, and then into San Diego, and then north to Sacramento, Modesto, and Stockton. It's a system of almost 800 miles that will be complete by the year 2030. The first phase has been estimated at the 2008 cost of $32 billion. The funding plan for that first phase, which should get a great deal of help from the new federal administration, includes $9 billion in the bond issue, $950 million for regional rail agencies to connect to the high-speed rail system, and $2 billion to $3 billion of regional money that would hopefully come from both private and public sources. Another $12 billion to $16 billion would come from federal grants over the next ten years, and $6.5 billion to $7.5 billion would come from private capital.

About a year ago we sent out an RFI. We got back 28 written statements of interest from equipment suppliers, contractors, and operators who want to put this great plan to work. We had five interested private capital investors, including Goldman Sachs. As you know, the American Economic Recovery and Revitalization Act of 2009 provides $8 billion specifically for high-speed rail development measures. The Secretary of Transportation (announced) on April 15 a statement of policies with the criteria for what funding will be, and on or about June 7 the secretary will publish the guidelines that will factor in deciding that funding. We recommended some of those factors to them.

No other state is at the point California is at with this program. No other state has a program that is EIR certified-which ours accomplished last July. No other state has bond money ready. Therefore we will apply for about $3.6 billion by the end of the federal fiscal year of 2012. As you also know, the president included in his recommendation for the 2008 fiscal year federal budget that $1 billion a year go to high-speed rail over a period of five years.

I expect that engineering, design, and environmental will have been accomplished for at least two, maybe three, sections in that first round-the section from Anaheim to Los Angeles and the section from San Jose to San Francisco. We intend to build and open for service on a section-by-section basis. As those sections are ready to service, and if we can get the inspection and construction projects begun by the fall of 2010-as my fellow board members assure me can be done-service would be open for revenue by 2013 or 2014. And we could finish the first phase completely by 2018. The second phase, from San Diego to Sacramento, would be completed five to seven years later and cost, in 2008 dollars, between $12 billion and $15 billion.

President Obama, Vice President Biden, Secretary LaHood Call for U.S. High-Speed Passenger Trains

President Barack Obama, along with Vice President Biden and Secretary LaHood, announced a new U.S. push today to transform travel in America, creating high-speed rail lines from city to city, reducing dependence on cars and planes and spurring economic development.

The President released a strategic plan outlining his vision for high speed rail in America. The plan identifies $8 billion provided in the ARRA and $1 billion a year for five years requested in the federal budget as a down payment to jump-start a potential world-class passenger rail system and sets the direction of transportation policy for the future. The strategic plan will be followed by detailed guidance for state and local applicants. By late summer, the Federal Railroad Administration will begin awarding the first round of grants.

Additional funding for long-term planning and development is expected from legislation authorizing federal surface transportation programs.

The report formalizes the identification of ten high-speed rail corridors as potential recipients of federal funding. Those lines are: California, Pacific Northwest, South Central, Gulf Coast, Chicago Hub Network, Florida, Southeast, Keystone, Empire and Northern New England. Also, opportunities exist for the Northeast Corridor from Washington to Boston to compete for funds to improve the nation's only existing high-speed rail service.

With a boost from the American Recovery and Reinvestment Act, the Obama administration launched a competitive process to drive local communities to develop their high-speed rail potential. The President, Vice President and Secretary of Transportation are urging states and local communities to put together plans for a network of 100 mile to 600 mile corridors, which will compete for the federal dollars. The merit-driven process will result in federal grants as soon as late summer 2009.

"My high-speed rail proposal will lead to innovations that change the way we travel in America. We must start developing clean, energy-efficient transportation that will define our regions for centuries to come," said President Obama. "A major new high-speed rail line will generate many thousands of construction jobs over several years, as well as permanent jobs for rail employees and increased economic activity in the destinations these trains serve. High-speed rail is long-overdue, and this plan lets American travelers know that they are not doomed to a future of long lines at the airports or jammed cars on the highways."

"Today, we see clearly how Recovery Act funds and the Department of Transportation are building the platform for a brighter economic future –they're creating jobs and making life better for communities everywhere," said Vice President Biden. "Everyone knows railways are the best way to connect communities to each other, and as a daily rail commuter for over 35 years, this announcement is near and dear to my heart. Investing in a high-speed rail system will lower our dependence on foreign oil and the bill for a tank of gas; loosen the congestion suffocating our highways and skyways; and significantly reduce the damage we do to our planet."

"President Obama's vision of robust, high-speed rail service offers Americans the kind of travel options that throughout our history have contributed to economic growth and enhanced quality of life," said Secretary LaHood. "We simply can't build the economy of the future on the transportation networks of the past."

The plan identifies two types of projects for funding. One would create new corridors for world-class high-speed rail like the kind found in Europe and Japan. Another would involve making train service along existing rail lines incrementally faster.

Under the plan, high-speed rail development will advance along three funding tracks:

• Individual Projects. Providing grants to complete individual projects that are "ready to go" with completed environmental and preliminary engineering work – with an emphasis on near term job creation. Eligible projects include acquisition, construction of or improvements to infrastructure, facilities and equipment.

• Corridor programs. Developing entire phases or geographic sections of high-speed rail corridors that have completed corridor plans, environmental documentation and have a prioritized list of projects to help meet the corridor objectives.

• Planning. Entering into cooperative agreements for planning activities (including development of corridor plans and State Rail Plans) using non-American Recovery and Reinvestment Act (ARRA) appropriations funds. This third approach is intended to help establish a structured mechanism and funding stream for future corridor development activities.