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Brown approves high-speed rail measure
Published on 08/06/2012
In mid-July, Gov. Jerry Brown signed into law SB 1029, which authorizes construction of the first segment of a planned statewide high-speed rail system.

"This legislation will help put thousands of people in California back to work," said Gov. Brown. "By improving regional transportation systems, we are investing in the future of our state and making California a better place to live and work."

According to the governor's estimates, construction of the the first leg of the rail system, connecting Merced and the San Fernando Valley, will create the equivalent of 20,000 full-time jobs.

The California High Speed-Rail Authority hopes to include small businesses on the project, and towards this end has established a Small Business, Micro Business, Disabled Veteran Business, and Disadvantaged Business participation goal of 30 percent.

For weeks, the governor and the California High-Speed Rail Authority lobbied the Legislature to take action on the $5.8 billion bill. Many lawmakers' support for the bill was tepid, primarily due to the project's price tag and strong opposition from Central Valley constituents over land use.

Work on the first segment is expected to begin in early 2013, but legal challenges may delay the start. The Madera and Merced county farm bureaus have already filed a lawsuit to suspend the project, claiming that prior environmental impact estimates are insufficient. Other lawsuits are anticipated.

The federal government will be contributing $3.2 billion to Central Valley segment, and the State of California will issue $2.6 billion in bonds to cover the remainder. The statewide system is projected to cost $68 billion.

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