California high-speed rail project faces reckoning
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Construction workers build the Hanford Viaduct over Highway 198 as part of the rail project. Photo: Patrick Fallon/AFP
California's high-speed rail project was billed as the future of transportation, but with President Trump moving to pull $4 billion in federal funds, its future remains precarious.
Why it matters: The system was initially slated for completion in 2020. But because of funding challenges and other delays, construction has not started beyond the 171-mile segment in the Central Valley, which would connect San Francisco to Los Angeles and Anaheim.
Driving the news: In a compliance review released this week, the Federal Railroad Administration (FRA) called the project a "story of broken promises."
- Citing missed deadlines, costly change orders and the "lack of a credible plan" to close the $7 billion funding gap needed for the Central Valley segment, the FRA said it sees "no viable path" to a completed system.
- The California High Speed Rail Authority (CHRSA) has 37 days to respond to the review before the FRA moves to withdraw federal grants.
The other side: The CHSRA said in a statement that it "strongly disagrees with the FRA's conclusions, which are misguided and do not reflect the substantial progress made."
- It plans to "fully address and correct the record in our formal response."
What they're saying: While state Sen. Scott Wiener (D-San Francisco) acknowledged that the project has "taken too long," he told Axios "there are reasons for that in terms of issues around eminent domain, permitting."
- "We need faster project delivery, but that's not a reason to destroy the project," he added.
- Sens. Adam Schiff and Alex Padilla also issued a statement calling the announcement "devastating" for Californians.
Between the lines: One reason for the missed deadlines is a California policy that requires utility companies to review and approve relocation plans before public utility infrastructure can be moved to accommodate construction for a government project.
- The CHSRA inspector general said in a February assessment that there is "little incentive" for owners to do so in a timely manner and that CHSRA should instead work with legislators to revise state laws to minimize third-party delays.
By the numbers: Spending for the project totals $14 billion, with 82% from the state and 18% from federal funds.
- The entire budget for the system is almost $100 billion higher than the original $33 billion estimate provided in 2008, when voters approved the ballot to initiate the project.
Yes, but: Californians still largely support the endeavor.
- A recent Politico-UC Berkeley poll found that 67% of registered voters in the state back the project, compared to 33% who oppose.
- It's especially well-regarded in the Central Valley, where it's helped create more than 15,000 jobs, per the governor's office.
What's next: Wiener is spearheading legislation that would impose deadlines on local governments, telecom companies and utilities to comply with the approval process for transit projects.
- CHSRA chief executive Ian Choudri is also pushing the state to allow private funding, which it'd pay back over time, instead of taking out federal loans or issuing new bonds.