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Yesterday, the California High Speed Rail Authority (CHSRA) unveiled a business plan for its proposed statewide high-speed rail (HSR) system. The new plan was required by the California legislature.

The business plan reflects “major events over the past 13 months” — namely, the November 2008 passage of Proposition 1A, a $9.95 billion state bond measure to finance the HSR system, and the American Recovery and Reinvestment Act, which includes $8 billion for HSR.  
“Put simply, the authority is now building a high-speed train system, not just building the hopes of one,” according to the business plan. “Instead of the gradual and intermittent planning and environmental studies to match limited funds, the authority must now proceed toward construction and operation, and do it as quickly as possible.”

CHSRA currently is governed by a nine-member policy board and staffed by a small number of state employees charged with overseeing the HSR effort. The authority will need additional staff to oversee and administer the federal and state bond dollars, and increase public outreach.

CHSRA plans to add positions such as chief executive officer, chief program manager, chief financial officer, general counsel, regional directors and internal auditor. The authority also will need to appoint directors to oversee legislation, engineering and programs, and business and procurement services.

The plan also includes new cost estimates for the initial San Francisco-to-Anaheim segment. The initial cost estimate of $33.6 billion was provided in 2008 dollars. Changes in track alignment and structural needs brought the estimate up to $34.9 billion. The new business plan provides a cost estimate in year-of-expenditure dollars, bringing the updated price tag to $42.6 billion.

CHSRA plans to fund the program through $9 billion in Proposition 1A state funds, $17 billion to $19 billion in federal dollars, $4 billion to $5 billion in local funding and $10 billion to $12 billion in private funds.

The authority also updated its ridership and revenue projections. In 2020 — its first year of operation — ridership on the initial segment would total 13.5 million and revenue, $950 million. By 2035, CHSRA expects ridership to reach 41 million and revenue to total $2.9 billion.

The business plan also includes a project expenditure history, status of each project segment, outreach program details, and plans for engineering, design, right-of-way preservation and acquisition, and pre-construction activities.

The state legislature requires that CHSRA submit a revised business plan every two years.