The Obama administration will award $2.3 billion in high-speed rail money this year, a boost to California's dream of capturing annual funds to build a bullet-train project that critics say the state cannot afford.

Unlike the one-time nature of the federal government's $8 billion high-speed rail stimulus program in January — which gave California $2.25 billion — the funds announced Monday are included in the Department of Transportation budget for the current fiscal year ending Sept. 30.

The federal government's first major budget appropriation to high-speed rail, backed by President Barack Obama's push for fast trains to create jobs and stimulate the economy, signals that federal bullet-train money could be available on an annual basis.

The California High-Speed Rail Authority hopes to reel in at least $12 billion more in federal funds by 2016 to bankroll its $43 billion project. Some critics, most recently the state auditor, say the agency's funding plans are unrealistic.

Although the figure announced Monday is more than twice the $1 billion first proposed by Obama, it is less than the $4 billion that legislators in the House had asked for.

California will have to compete with Florida, the Midwest and other regions hoping to build high-speed rail lines. The state received 28 percent of the high-speed rail stimulus money announced earlier this year, and if that formula holds, California will get less than $650 million

from the most recent grants.

The state could match its grant using part of the $9 billion in high-speed rail bond money voters approved in November 2008. The bond money can be unlocked only by matching other funds.

States would need to match 20 percent of the grants using nonfederal sources, which could give California a leg up in the competition. In a statement, rail authority Chairman Curt Pringle said the state will "compete aggressively for our share of these funds."

States have until Aug. 6 to submit applications. The DOT's Federal Railroad Administration, or FRA, will award the grants by the end of September.

Specifically, the FRA will award $2.1 billion "to continue the development" of high-speed rail corridors, and another $245 million for individual construction projects within those areas.

Construction on California's 800-mile project could begin as early as fall 2012, with bullet trains whisking along the Caltrain line on their way from San Francisco to Los Angeles by 2020.

Contact Mike Rosenberg at 650-348-4324.


Congress Cuts High Speed Rail Funding, California Calls for it to be Restored

hsrgrant.pngThe plan in Congress was to put aside $4 billion for high speed rail in 2011 federal appropriations, but it's been cut to 62% of that, down to $2.5 billion. Tomorrow, a group of Southern California leaders are coming together to rally for that funding restoration. Based on data from abroad, a report called "Next Stop: California" will detail how a high-speed rail system will benefit the state.

Tomorrow at 9 a.m., L.A. City Councilmember Richard Alarcon and others will gather at Union Station for the rally. "With demand for high-speed rail across the country exceeding $50 billion, a broad coalition is calling for $4 billion allocation in the 2011 appropriations," explains an advisory from California Public Interest Research Group, which has been advocating for California's high speed rail project.

Construction in California could start as early as 2012, but Governor Arnold Schwarzenegger wants to see something before he leaves office. That's this year, meaning his vision of a demonstration train between Los Angeles and San Diego should get going soon. Transportation advocates call the idea balderdash.

By Zach Behrens in  on June 28, 2010 9:35 AM


California high speed rail: Is it pie in the sky?

BY JASON OWENS,  SDNN
Monday, June 28, 2010

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