AIRLINK 177.00 Increased By ▲ 2.40 (1.37%)
BOP 12.81 Increased By ▲ 0.29 (2.32%)
CNERGY 7.49 Increased By ▲ 0.16 (2.18%)
FCCL 42.02 Increased By ▲ 2.09 (5.23%)
FFL 14.84 Increased By ▲ 0.16 (1.09%)
FLYNG 27.70 Decreased By ▼ -0.13 (-0.47%)
HUBC 134.51 Increased By ▲ 0.88 (0.66%)
HUMNL 12.96 Decreased By ▼ -0.01 (-0.08%)
KEL 4.44 Increased By ▲ 0.07 (1.6%)
KOSM 6.06 Increased By ▲ 0.05 (0.83%)
MLCF 54.51 Increased By ▲ 1.32 (2.48%)
OGDC 222.58 Increased By ▲ 9.67 (4.54%)
PACE 6.03 Increased By ▲ 0.03 (0.5%)
PAEL 41.30 Increased By ▲ 0.20 (0.49%)
PIAHCLA 15.62 Increased By ▲ 0.11 (0.71%)
PIBTL 10.06 Increased By ▲ 0.48 (5.01%)
POWER 11.17 Increased By ▲ 0.23 (2.1%)
PPL 183.99 Increased By ▲ 12.88 (7.53%)
PRL 34.31 Increased By ▲ 0.98 (2.94%)
PTC 23.34 Increased By ▲ 0.32 (1.39%)
SEARL 91.07 Decreased By ▼ -0.30 (-0.33%)
SILK 1.11 No Change ▼ 0.00 (0%)
SSGC 33.98 Increased By ▲ 1.47 (4.52%)
SYM 15.96 Decreased By ▼ -0.04 (-0.25%)
TELE 7.86 Decreased By ▼ -0.01 (-0.13%)
TPLP 11.01 Increased By ▲ 0.02 (0.18%)
TRG 58.72 Increased By ▲ 0.42 (0.72%)
WAVESAPP 10.79 Decreased By ▼ -0.30 (-2.71%)
WTL 1.36 Increased By ▲ 0.02 (1.49%)
YOUW 3.81 Increased By ▲ 0.02 (0.53%)
BR100 12,023 Increased By 222.2 (1.88%)
BR30 36,605 Increased By 1166.7 (3.29%)
KSE100 113,713 Increased By 1459.4 (1.3%)
KSE30 35,302 Increased By 517.9 (1.49%)

California on Tuesday will break ground in Fresno on its ambitious but controversial high-speed rail project, marking another milestone for Governor Jerry Brown and for foreign manufacturers waiting to bid on lucrative train contracts. The United States lags behind Europe and Asia in building both high-speed rail and its trains. The 800-mile (1,287-km)high-speed rail is expected to be the legacy project for Brown, whose unprecedented fourth inauguration will take place the day before the groundbreaking on Monday.
President Barack Obama, too, wanted high-speed rail to be his signature transportation accomplishment. But in the six years since he took office, plans have lagged or been squashed. California's rail is the most ambitious project and one of the few still on track, although it has been mired in environmental lawsuits and eminent domain land disputes. Still, the California High-Speed Rail Authority has enjoyed victories in recent months. One of seven environmental lawsuits was settled in December, after the rail authority agreed to find an alternative route through the city of Bakersfield. In October, the California Supreme Court declined to hear a lawsuit challenging the project's funding.
Funding remains a major hurdle for high-speed rail. In 2008, Californian voters approved nearly $10 billion in bonds to kickstart the project, estimated to eventually cost $68 billion. For many years, that appeared to be the project's only source of money, until the legislature recently agreed to pledge 25 percent of future cap-and-trade revenues, or funds paid by companies to offset carbon emissions, plus an additional $650 million.
California raised nearly $1 billion from its cap-and-trade program since 2013. That money could increase significantly next year as the program expands to cover distributors of transportation fuels such as gasoline and diesel and home heating fuels like natural gas. Still, it is unlikely to cover the full cost of the project. In the spring, the rail authority plans to seek bids from train manufacturers.

Copyright Reuters, 2015

Comments

Comments are closed.