Tag Archives: California

With great fanfare, Jerry “Moonbeam” Brown and a host of other politicians signed a rail in Fresno as a symbolic gesture toward starting construction of California’s high-speed rail project. But, despite what they say, California can’t afford to build it, and the plan they can’t afford won’t really be high-speed rail all the way from Los Angeles to San Francisco anyway.

Recall that back in 1994, California estimated that this high-speed rail line would cost less than $10 billion (about $15 billion in today’s dollars). At that price, experts at the University of California calculated, taking the train from Los Angeles to San Francisco would cost almost twice as much as flying and more than driving.

By 2008, when the measure reached the voters, the project’s estimated cost had grown to $33 billion in 2008 dollars (about $36 billion in today’s dollars). Soon after voters approved it, the cost quickly zoomed to $65 billion in 2010 dollars (about $71 billion in today’s dollars).

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Jerry Brown proposes to use cap-and-trade revenues to help pay for the state’s high-speed rail boondoggle. It’s questionable whether this is legal, and even more questionable whether high-speed trains will actually reduce greenhouse gas emissions after their entire lifecycle emissions are considered.

What everyone seems to be missing, however, is that the cap-and-trade revenues won’t come close to covering the cost of a high-speed rail line. Brown proposes to dedicate $250 million of annual cap-and-trade revenues to the rail line, but even at an unrealistically low 2 percent rate of interest, that won’t even repay $6 billion worth of bonds, much less the $9 billion in bonds that voters approved in 2008 or the far greater amount it will actually take to complete the line.

The media keeps reporting the cost of the high-speed train as $68 billion, when everyone knows that’s only for a moderate-speed train. The most recent estimate of the true high-speed train envisioned by the 2008 ballot measure is $98 billion to $117 billion–and there’s no reason to think that estimate is any more realistic than the previous estimates which started at less than $10 billion.
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Last Friday, opponents of California’s high-speed rail line told a California state judge that the California High-Speed Rail Authority has not met all the requirements to start building the first stage of the state’s high-speed rail line. As approved by voters in 2008, the law requires, among other things, that the authority identify the “sources of all funds to be invested in the corridor, or usable segment thereof” and hat the “authority has completed all necessary project level environmental clearances necessary to proceed to construction.”

So far, the authority only has funds to build a portion of the “minimum operable segment” from Madera to the San Fernando Valley and environmental clearances for only 29 miles of this segment. Opponents argued that the authority could not begin construction until it met these requirements.

The state did not attempt to refute these contentions but merely argued that when the legislature authorized the sale of $2.6 billion in bonds it effectively negated these legal requirements. The plan “was deficient,” admitted the deputy attorney general who argued the case. “The Legislature looked at it and said, we would like more, but this is what we’ve got and it made its decision. Those are political decisions that I can’t comment on.” As a result, she added, the judge has no authority to overrule the legislature.

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Quentin Kopp, the man who more than any other single person is probably most responsible for the California high-speed rail project, now says the project is illegal and has filed a declaration in court saying so. In response, the California High-Speed Rail Authority–which was created by a law Kopp wrote and which Kopp later headed–is suing Kopp, California farmers who oppose the project, the Antiplanner, and, well, any other skeptics in an effort to get a court order giving it $8 billion to start construction on the train to nowhere.

Kopp’s argues that the authority has “mangled” the original plan for a 220-mph rail line in order to keep costs down. That original plan, which was supposed to cost $45 billion, is now expected to cost somewhere closer to $117 billion. Since the authority doesn’t have that money, it has adopted instead a $68 billion plan to build a “blended” system that uses some existing tracks and some new tracks. But the trains on this system won’t go from San Francisco to Los Angeles in 4 hours and 40 minutes as the law requires.

Of course, the authority doesn’t have $68 billion either, so the likelihood of this blended plan ever being completed is slim. But it needs a plan of some kind in order to justify spending the $8 billion it does have building a line in California’s relatively thinly populated Central Valley.

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Here is a 20-minute news report on the California high-speed rail project in four parts. I can think of several lessons people should learn from this fiasco.

First, don’t vote to partly fund a project. The government agency in charge will spend all of the money even if there is no chance to get the rest of the money.

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The Obama administration has announced that it wants to spend a half-billion dollars buying high-speed rail cars in an obvious bid to create more businesses beholden to the administration as well as to its rail program. But more and more people are turning against the president’s dream of being the Eisenhower of high-speed rail.

The Wall Street Journal calls the California high-speed plan the Kafka Express. Michael Lind, of the center-left New America Foundation, realizes that high-speed rail is the wrong future. Yet Jerry Brown is so insistent on building it that he’s willing to sacrifice welfare and other social programs.

In response to pressure from the federal government to start construction, the president of California’s senate has asked the federal government to commit itself to put up several tens of billions to finish the project. Of course, with resistance to the project in Congress, that’s not going to happen.

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