California’s Chair of Senate Transportation Committee Dave Cortese Introduces a Bill to Study the Major Economic Opportunities Connected to the High Speed Rail Project As the New Administration and Republican Legislators Raise Questions

SACRAMENTO –  California State Senator Dave Cortese (D-Silicon Valley), who serves as the chair of the state Senate Transportation Committee today introduced Senate Bill 545  that will commission a study on the extraordinary commercial and residential economic development opportunities along the California High Speed Rail corridor focusing on increased land value, development incentives and public-private partnerships from Los Angeles to San Francisco.

A recent poll shows a majority of Californians support High Speed Rail because the project is creating 14,600 high-quality jobs, engaged 880 small businesses and will prevent 142 million metric tons of carbon dioxide emissions. 

“There will be massive development potential along the 350 mile corridor.  The study will help guide the state to examine opportunities for major residential and commercial development in the High Speed Rail corridor, synergy which can help pay for the infrastructure itself,” said Senator Cortese, chair of the state Senate Transportation Committee.

Senator Cortese’s bill was introduced on the same day the new Administration’s Secretary of Transportation Sean Duffy was in Los Angeles announcing a compliance review of the federal funding earlier approved by the Biden Administration.

Cortese said the federal funding on High Speed Rail is just a small fraction of the project’s budget and the new Secretary of Transportation will find nothing out of compliance with the HSR project now fully under construction in the Central Valley.

“Every dollar of the project is accounted for and has been thoroughly reviewed by the independent Office of the Inspector General (OIG). The OIG’s sole focus is improving oversight and accountability of the California high-speed rail project by conducting independent, objective reviews and investigations of the High-Speed Rail Authority’s planning, delivery, and operation,” said Senator Cortese, chair of the state Senate Transportation Committee.

BACKGROUND:

  • SB 545 requires the Office of Land Use and Climate Innovation to commission a study on the economic opportunities along the CA high speed rail corridor on or before July 1, 2026.
  • The electrified high-speed rail system powered by 100% renewable energy. As a global climate leader, our state is committed to reducing emissions, addressing climate change, and ensuring efficient transportation to sustain our economy.
  • When voters passed Prop 1A, the $9.95 billion bond to provide the nation’s first high-speed rail project, the vision was that the state would cover one-third of the costs, the federal government would provide one-third of the costs, and private investors would provide the remaining third. However, this vision did not fully materialize.  Of the approximately $13 billion spent on the project to date, $10.5 billion has been funded exclusively by the State of California. These investments have generated over $22 billion in economic impact, primarily benefiting communities in California’s Central Valley.
  • The study will examine economic opportunities along the high-speed rail corridor, focusing on land value, development incentives and public private partnerships.
  • Revenue generated from the economic activities will boost local communities economy and help pay for the construction and on-going maintenance and operations of the high-speed rail system.
  • By leveraging these benefits and strategies, the California High-Speed Rail project can serve as a catalyst for economic growth, business expansion, and long-term investment along the corridor.

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