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In 2010, California State Auditor Elaine Howle indicated that the financing for high speed rail, California’s most expensive infrastructure project ever, was “incredibly risky”, adding that the oversight for this massive project was lacking. Responding to such criticisms, the California High Speed Rail Authority (Authority) was tasked with drafting another business plan that took a more realistic look at the fiscal costs for the project. Released in November, Howle has stated that even the newer, revised version depends on ambiguous sources for capital and that “the program’s overall financial situation has become increasingly risky.”

It isn’t just Howle who has been raising concerns about the nearly $100 billion High Speed Rail (HSR) project.  Since the passage of Prop 1A, which allocated nearly $10 billion of general fund money toward HSR in California, several critiques have come out. The Legislative Analyst’s Office (LAO) recommended withholding nearly all funding until the Authority distributed a comprehensive business plan and ridership study; meanwhile, the Authority’s own peer review group just released its own report that suggested the project be reconsidered and funding not be authorized by the Legislature.

Despite this mounting criticism…or perhaps because of it…the Governor has redoubled his support of the HSR project. Even with myriad of critical issues facing California, he spent significant time discussing the need for California to be a leader on high speed rail in his State of the State address.

He is also starting to put his stamp on the project in a major way – while not confirmed, many speculate that the change in leadership at the Authority over the past few weeks is, in fact, a move by the Brown Administration to take more ownership of HSR and address the concerns that have been plaguing this project. This month has seen the resignation of the Authority’s CEO Roelof Van Ark and Deputy Director Dan Leavitt, while Thomas Umberg announced he is stepping down as Chairman, though he will remain on the Authority’s Board. Dan Richard, who has been Brown’s point-person on HSR (and is a featured panelist at PCL’s upcoming Symposium), will be stepping into the role as Chair.

Governor Brown taking leadership of HSR is viewed by many (including PCL) as a positive development, and it is our hope that he will be open to addressing concerns raised by environmental and community groups to ensure we move forward with a project that will achieve its touted benefits of lessening Californians’ dependence on highways and air travel; reducing greenhouse gas emissions and other impacts to our lands, air and water; and providing critically-needed jobs in this state.

As the 2012 legislative session picks up, we can expect to see a myriad of HSR bills brought by the Governor as well as legislative proponents and opponents of the project, and the Planning and Conservation League will keep you up to speed with all the developments as they occur.

Last week, due to a technical glitch, the Brown Administration unintentionally released the Governor’s proposed budget a few days earlier than expected. Through $10.3 billion in cuts and increased revenues, the proposed budget would close a $9.2 billion deficit, compared to last year’s $26 billion gap, and build a $1.1 billion reserve. The most severe cuts will be inflicted on CalWORKs, Medi-Cal, child care, and the Cal Grant Program. The budget is contingent on voters approving a temporary increase in the sales tax and a higher levy on wealthy residents. If voters reject the ballot initiative in November, the state would be forced to cut another $4.8 billion from schools and community colleges; a cut equivalent to 3 weeks of instruction. ‘Trigger cuts’, as they’re called, would also strip funds from courts, public safety officers and flood protection.

So how did the environment fare in the proposed budget? Overall, environmental protection did better than many other programs, though there are significant cuts to key programs, and much of the funding that has been allocated is for projects that are controversial even within the environmental community. The Department of Parks and Recreation will see $22 million in cuts, twice the reduction from last year’s budget, which would result in the closure of up to 70 state parks. Additionally, if the Governor’s tax initiative does not pass, it will trigger the elimination of all seasonal lifeguards on state beaches and a 20% reduction of the Park Rangers workforce.

Programs that will see more funding in 2012 include highly contentious projects, like California High Speed Rail and the Delta conveyance program. The budget allocates $15.9 million to usher along the development of a high speed rail system, which is under increasing scrutiny due to governance, routing and financing issues. The budget would also allocate more funding to the Department of Water Resources for its work on the highly controversial Bay-Delta conveyance research and planning processes; specifically, for 135 positions for preliminary engineering work to support the Delta Habitat Conservation and Conveyance Program.

The budget also earmarks $1 billion that are to be received by auctioning pollution credits to California companies to be used to “create jobs and deliver public health, economic and environmental benefits” as part of the state’s effort to curb global warming. Businesses have complained that this cap-and-trade program, a critical piece of California’s landmark legislation aimed at cutting greenhouse gas emissions to 1990 levels by 2020, represents an unfair tax. Cap-and-trade is also controversial among the environmental and environmental justice communities, some of whom believe it merely commoditizes dangerous pollution rather than directly and more aggressively curbing it.

The governor’s proposal still needs to be debated by the Legislature, and the Brown Administration will release an updated version in May. The deadline to have a budget passed by lawmakers and signed by the governor is June 30.

For the second time, a California court has invalidating the Environmental Impact Report for the Central Valley to Bay Area section of the California High-Speed Rail project, and required the High Speed Rail Authority to rescind its approvals selecting the Pacheco Pass alignment. Finding in favor of the Town of Atherton, and the cities of Menlo Park and Palo Alto, and other petitioners (including the Planning and Conservation League), the Sacramento Superior Court found that the project’s Revised Environmental Impact Report had failed to discuss significant impacts and to consider information from the Authority’s parallel project-level studies, and the agency also failed to recirculate the document for public comments.

While the court rejected some of the petitioner’s claims, the end result is that the EIR must be recirculated and the community provided another opportunity to comment on the project. While PCL would like to see a viable and properly-sited HSR project move forward that will reduce emissions and vehicle miles travelled, the decision further demonstrates that the largest proposed infrastructure project the state of California has seen cannot should not go forward without a full and transparent vetting by impacted communities.

The California High Speed Rail Authority released a revised and updated version of the project’s business plan only a week ago, and PCL is carefully reviewing the 250 page document now to prepare for what we expect will be a busy legislative year addressing the governance, alignment and feasibility of high speed rail in California. PCL looks forward to keeping you updated on any high speed rail news or events.

Click here to read the court’s entire decision.

On the heels of the Superior Court’s November 10th decision addressed above, Assemblymember Rich Gordon (D-Redwood City) will be leading a hearing and public discussion on High Speed Rail in California tomorrow, Tuesday November 15th. The focus of this hearing will be to address the newly released Draft Business Plan, allowing for public input and identifying areas of concern which will require further focus.  With a new estimated first segment cost projected at $98.5 billion, Assemblymember Gordon feels there are issues that must be discussed.  “I find the business plan comprehensive, but there are still questions that remain unanswered – including how the Authority plans to pay for the nearly $100 billion project…  Myriad concerns have been relayed by residents locally and across the State, and I look forward to their comments and the Authority’s presentation at next week’s hearing.”

To find information about the hearing please click below to be taken to Assemblymember Gordon’s website: http://asmdc.org/members/a21/newsroom/press/item/2721-assemblyman-rich-gordon-to-lead-a-high-speed-rail-hearing-and-public-discussion-in-palo-alto

To watch live, click here.

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