advertisement

---

One week ago, California voters approved Proposition 1A, a $10 billion bond measure to provide initial financing for a statewide high-speed rail system. Now, the California High Speed Rail Authority (CHSRA) has unveiled an updated business plan that details the project's economic and environmental benefits, and outlines how the system will be funded.

The 800-mile high-speed network will run between San Diego, San Francisco and Sacramento, with trains operating at speeds up to 220 mph. The authority hopes to complete the entire system by 2030, but first will focus on the "backbone link," a segment between Los Angeles/Anaheim and San Francisco.

The $33 billion initial segment will be funded through the bond measure, as well as matching federal, local and private monies. The system's operating and maintenance costs will be covered by farebox revenue; the business plan calculates the initial segment will have an operating surplus of about $1.1 billion. That surplus will be used to expand or improve the system, repay construction bonds and serve as a return on investment for private financing sources.

CHSRA projects the high-sped rail system will create 160,000 construction jobs during the next two decades and 320,000 permanent jobs by 2030, a figure expected to rise to 450,000 jobs by 2035. The system will help reduce the state's reliance on fossil fuel to the tune of 12.7 million barrels of oil annually and eliminate 12 billion pounds of CO2 emissions per year, CHSRA said.