This summer has been fascinating for the California (CA) High Speed Rail (HSR). First was the state legislature's approval to use 25 percent of future cap-and-trade revenue [money polluters pay to offset carbon emissions] to provide ongoing funding for construction of the California High Speed Rail and ensure billions of new dollars for the HSR.
Now in a huge victory for the California High Speed Rail, a panel of appellate court judges overturned a decision from last year that blocked the HSR Authority from using Proposition 1A funds. Proposition 1A or the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century was approved by voters on November 4, 2008, which resulted in the issuance of $9.95 billion in bonds to help fund the construction of the California High Speed Rail. In 2013, Judge Michael Kinney ruled that the Proposition 1A bonds could not be used until the CA HSR Authority secured additional funding; a ruling meant to prevent the state from moving forward and starting construction on a project they may not have funds to finish. Last week, a unanimous decision by the 3rd District Court of Appeal’s panel of judges reversed Judge Kinney’s lower court ruling.
The California High Speed Rail is the largest infrastructure project in America. It is safe to presume a project of this size will face additional challenges. In the meantime, the cap-and-trade system is expected to provide nearly $250 million this year alone and now with the ability to access nearly $10 billion in Proposition 1A funding, the California High Speed Rail Construction should really pick up. Demolition of property and acquisition of land required for the first segment of the California High Speed Rail has already begun.
Now in a huge victory for the California High Speed Rail, a panel of appellate court judges overturned a decision from last year that blocked the HSR Authority from using Proposition 1A funds. Proposition 1A or the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century was approved by voters on November 4, 2008, which resulted in the issuance of $9.95 billion in bonds to help fund the construction of the California High Speed Rail. In 2013, Judge Michael Kinney ruled that the Proposition 1A bonds could not be used until the CA HSR Authority secured additional funding; a ruling meant to prevent the state from moving forward and starting construction on a project they may not have funds to finish. Last week, a unanimous decision by the 3rd District Court of Appeal’s panel of judges reversed Judge Kinney’s lower court ruling.
The California High Speed Rail is the largest infrastructure project in America. It is safe to presume a project of this size will face additional challenges. In the meantime, the cap-and-trade system is expected to provide nearly $250 million this year alone and now with the ability to access nearly $10 billion in Proposition 1A funding, the California High Speed Rail Construction should really pick up. Demolition of property and acquisition of land required for the first segment of the California High Speed Rail has already begun.
Learn more about this project and others, and most importantly learn how financially to benefit from them at our next event.
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