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Thursday, Apr. 16, 2009

California's high-speed rail forces seek big slice of stimulus pie

California's long-delayed dream of a high-speed train zipping up and down the state is in line for a hefty – and much needed – slice of a federal stimulus pie.

The American Recovery and Reinvestment Act approved by Congress in February contains $8 billion to be doled out to states for development of high-speed rail service and passenger rail service among cities.

California wants half.

"As of now, we have close to $4 billion worth of things we can show can be done within the time limit" of the act, said Mehdi Morshed, executive director of the California High-Speed Rail Authority, the agency charged with building a speedy rail line connecting Northern and Southern California through the Central Valley.

Morshed and other California boosters are trying to make the case with federal transportation officials that when it comes to high-speed rail in the United States, the Golden State is king.

"All factors considered, we are at the top," Morshed said. "We are the only ones with a real high-speed rail project. Everyone else is just improving their current (conventional) rail service."

There is little argument that compared to other states, California's project – which could wind up costing up to $85 billion, depending on whom you ask – is closest to reality.

Project boosters contend it eventually will connect all of California's major population centers with 800 miles of high-speed track and trains that will carry more than 100 million passengers a year and hit speeds of 200 mph-plus.

For most of its 13-year existence, the rail authority has scuffled along on shoestring budgets. Last week, in fact, the authority got a short-term $29 million loan from the state's Pooled Money Investment Board to carry it through the rest of the fiscal year that ends June 30.

Last November, voters approved a $10 billion bond issue that is supposed to serve as seed money for the system. But because of the dreary economic climate and the protracted state budget battle last fall and winter, none of the bonds have been brought to market yet.

The rest of the $35 billion that rail authority officials estimate is needed for the first phase of the project – a line through the Central Valley connecting San Francisco with Anaheim – is supposed to come from the federal government and private investors.

And therein lies the importance for California scoring a significant chunk of the federal dough.

"Private investors are very interested in the project," Morshed said, "but because it takes so long, they want us to do the initial items, the environmental work, acquisition of the rights of way, building some pieces … so they don't have to wait 10 years to get some return on their investment.

"So you have to initially spend the public money, and then they will get excited and come in and do the rest. Anything we can do to expedite construction is important, and for that we need all the public money we can get."

California's chances are augmented by having some heavy political hitters in its corner, including House Speaker Nancy Pelosi, D-San Francisco.

In a recent letter to Transportation Secretary Ray LaHood, Pelosi and 20 other California congressional members outlined criteria they said should be taken into account when awarding the stimulus funds. Not coincidentally, the only project that meets the criteria is California's.

But other projects also have heavy hitters. A Midwest proposal that would tie Chicago to St. Louis and other major cities in the area is a favorite of President Barack Obama's.

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