High-speed rail backers hope adding private investors to bond measure will avoid delays

Democratic lawmakers have agreed to Gov. Arnold Schwarzenegger's request to include public-private partnerships for a high-speed train that could travel from either San Francisco or Sacramento to Los Angeles in 2 1/2 hours.

Supporters of the high-speed "bullet" train are hoping the changes will ensure that a $10 billion bond measure doesn't get delayed a third time – which some fear would jeopardize the entire project.

Under a compromise bill, Assembly Bill 3034 would modify a measure already on the November ballot to encourage private investment, whether through regional transportation authorities, Wall Street investment firms, or a combination of both.

"We're pleased the bill addresses previous concerns," Schwarzenegger's spokeswoman Rachel Cameron said Friday. "The governor is a big supporter of high-speed rail, and he believes strongly that Californians would benefit from a network that would connect communities throughout the state."

Although the governor has not taken a formal position on the bill, proponents say they are optimistic the ballot measure will now stay on the November ballot.

Twice already, in 2004 and 2006, the Legislature has postponed the bond measure that would allow voters to kick-start construction on high-speed rail. The original bond language was adopted in 2002.

The bill is expected to be heard first in the Assembly Transportation Committee next month, and its language may undergo changes. It requires a two-thirds vote of the Legislature.

In keeping with the governor's green image, Schwarzenegger officials worked with the state's High-Speed Rail Authority to craft language that emphasizes the environmental value of the 700-mile system by reducing air and road congestion.

"If we don't do high-speed rail, we will have to add 3,000 miles of highway and five airport runways in the state," said co-author Assemblywoman Cathleen Galgiani, D-Stockton.

The entire project is estimated at $42 billion and would be completed by 2020. The network would link all of the state's major population centers, including Sacramento, the Bay Area, the Central Valley, Los Angeles, Southern California's Inland Empire, Orange County and San Diego.

Advocates say the electric-powered train, which can travel 200 mph, would provide an affordable alternative to driving or flying. A one-way ticket between Los Angeles and San Francisco is projected to cost $55 in 2018.

To fund the initial phase of the system, voters are being asked to support the state in taking out a $9.95 billion bond this fall. Of that amount, $9 billion would be used mainly on construction, and the other $950 million would be made available to improve regional transportation systems, such as the Bay Area Regional Transit.

Quentin Kopp, chairman of the High-Speed Rail Authority, said the state would use the bond to leverage another $9 billion from federal matching funds.

Supporters then hope another $10 billion can be raised from private investors.

AB 3034 would also eliminate a requirement to complete the segment between San Francisco and Los Angeles first. Instead, the bill would allow various regions to compete for funding.

"We want to ensure that the bond monies would be open to competition so that every county that is able to provide either matching funds or private funds would have the ability to compete," Galgiani said.

Most of the system route has been set. The authority has yet to give final approval on a route between the Bay Area into the Central Valley.

Staff members are recommending that the rails go through San Jose and cut across at Pacheco Pass, merging near Merced. However, others are lobbying for a northern route across Altamont Pass, near Interstate 205, which would come into the Valley near Tracy.

The authority board is expected to give final approval in June.

Kopp said the bond measure enjoys public support for the landmark project. As the bond reads now, 58 percent of Californians favor the bond and 32 percent oppose it, he said.

"This is a project that's the biggest since the transcontinental railroad 140 years ago." Kopp said.

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