Executive Summary
Benefits of the California High Speed Rail project can help take control back on the greenhouse emissions that clog the air in many cities in the state. The project will also directly impact Fresno and smaller cities along the path of the rail way boosting economic results in housing markets, job opportunities, and all around cultivate new and developing industries in the Fresno Valley.
Our conclusion that not only Fresno but the state of California will greatly benefit from the high-speed transportation system is based on data provided by the California High Speed Rail Authority, over the phone interviews with the Central Valley Regional Director, and surveys conducted on the students of California State University, Fresno.
On the basis of these findings, it is recommended that the continuation of the High Speed Rail project be completed to boost the economic growth of the Fresno Valley. This city would see an increase of jobs and being a growing business hub would see new companies come into town.
What is the HSR? When was the HSR Authority created and what is its purpose?
HSR is the abbreviation for High Speed Rail units; it is also known as HST, High Speed Transportation. The California High Speed Rail (abbreviated HSR) is a transportation system that is expected to run 114 miles through the major cities of the state (CHSRA: Fresno-to-Bakersfield). Using electrically powered, steel wheels on steel technology to travel at 220 miles per hour (mph) (CHSRA: Fresno-to-Bakersfield). The plan was implemented by the California Transportation Commission (CTC). The HSR was considered as far as 1981, and 1996. The California High Speed Rail was finally created and presented in 1996; voters did not approve of the budgeted costs (California HSR Audit). California voters did not approve until 2008. In 2008 the voters of California approved Proposition 1A, the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century (California HSR Audit). This proposition presented by the state legislature, authorized the CTC to receive funds to improve various rail systems.
In 2009, Obamas’ administration moved with a “Vision for High Speed Rails in America” (Aviation Analysis). This was inspired by California’s growing population and current environmental concerns. It is intended to be apart of a general energy/climate policy (FRA, 2009). One of the main purposes of the project is to bring more job opportunities. Expert Diana Gomez during an interview expressed that the project has already created more than 2,000 jobs in the valley and will create opportunity for new Downtown Fresno businesses. There is also a focus on reducing greenhouse gas emissions due to transportation. The HSR is also being viewed as a chance to enhance mobility, as CA’s traffic is often gridlocked. The environmental goals address growing issues, this is related to air quality and greenhouse emissions released by transportation. By reducing the greenhouse emissions with the HSR, it could potentially take drivers off the road and allow the state to focus on helping disadvantaged communities and supporting jobs with the HSR. This is the focus for the creation of the High-Speed Rail process.
What is the HSR Authority’s plan to implement and continue the project and its phases?
As of 2018, HSR Authority has created a new plan to implement and continue the project. This new plan was created after auditing past processes. The review/ audit “Identified significant differences and deficiencies in contract management, and oversight.” (California HSR Audit). It appeared as if they were doing business blindly. In order to improve the lack of documentation of contract policies, they are noting three variables: Invoice, Deliverables, and Performance (California HSR Audit). Invoices will be documented with tracking logs, approval notices, and dispute tracking logs. The Deliverables are noted through tracking logs, acceptance notices and recovery plan(s). Performance and amendments are to be documented with risk registers, change tracking log, and contract compliance assessment. It is projected to be finished by March 2022 (California HSR Audit). To continues its phases, it plans and hopes as for mentioned to keep progressing. There have been revisions to various parts of the plans. They are now monitoring and reporting key goals, such as environmental impact and risks factors (California HSR). The rail authority had to consider relocating the traction power source and other things. A basic summary of the changes is listed as the following: The kings river crossing was revised to accommodate to the Kings Rivers Conservatory (Final EIR/EIS: Summary). The revision reduces the environmental impact on the wildlife and habitat. The General vicinity design was revised to accommodate the future widening of the highway (Caltrans right of way) (California HSR Final EIR/EIS). The plan is divided into 2 phases. (California HSR: Final EIS/EIR Summary). A critical part of phase 1 involves connecting the Valley to the general Bay area (California. It plans on accommodating to the sates and governments guidelines with mainly environmental factors.
As of 2018, HSR Authority has created a new plan to implement to continue the project. This new plan was created after auditing past processes. The review/ audit “Identified significant differences and deficiencies in contract management, and oversight.” It appeared as if they were doing business thoughtlessly. In order to improve the lack of documentation of contract policies, they are noting three variables: Invoice, Deliverables, and Performance. Invoices will be documented with tracking logs, approval notices, and dispute tracking logs. The Deliverables are noted through tracking logs, acceptance notices and recovery plan(s). Performance and amendments are to be documented with risk registers, change tracking log, and contract compliance assessment. It is projected to be finished by March 2022. To continues its phases, it plans and hopes as for mentioned to keep progressing. There have been revisions to various parts of he plans. They are now monitoring and reporting key goals, such as environmental impact and risks factors.
How will the HSR Authority fund the project as it stands over budget right now?
In 2016, the authority expected to complete the necessary project by early 2018, hoping to use an additional 4.6 billion front the proposition 1A. The authority projects to receive funding through private investors although nothing is certain. They are projecting that they may receive anywhere from 2- 11.1 billion dollars in federal grants and other forms of funding. The Authority project is receiving an additional 3.9 billion to 11.1 billion dollars if it can get more federal loan programs (California HSR Audit). Otherwise, it would need private and public funding. This would require borrowing against cap -and – trade revenue (California HSR Audit). After the audit, the Authority had to reassess how they were going to consider risks into the initial estimate. As of now, they are focusing on “blending”; this means to use existing rail infrastructure to reduce costs. (2018 plan). California could be paying up to $3.5 billion in federal funds. It appears to be wishful thinking so to speak. As of 2018, the overall cost is expected to be $77.3 billion (California HSR Audit). If the state fails to complete the project by December 2022, it could end up paying up to $3.5 billion in federal loans (California HSR Audit). Now California just waits for the outcome. They are considering attempting to complete the central valley portion by 2022. Local transportation funds as well as Federal discretionary programs.
Are there other countries that have HSR? If yes, who are these countries and what is the
realized benefit or negative results of a HSR train?
There are HSRs around the world in various countries. These countries are: France, Japan, Spain, and China as well as many more (EESI: WorldWide). Given the circumstances that each country adopted HSR, all are 1st world countries. With growing populations, and higher transportation demands, the HSR is seen as a practical option. In 1964, Japan introduced to the world the first HSR line (Clewlow). The Shinkansen Line was 319 miles running between Tokyo and Osaka (ESSI: Worldwide). In these places, frequent interregional and intercity travel is common. In France, trips between Lyon and Paris from the opening of their HSR, increased 40 -72%. In Spain, travel between Madrid and Seville increased significantly from 16 – 51% (ESSI: WorldWide). China’s HSR opened for operation in 2008. Since then, the HSR has carried up to 1.6 billion passengers each year. China’s rail way is still under construction in hopes to expand (ESSI: Worldwide).
What are the beneficial or negative results to California by having a HSR train?
The HSR is foreseen to implement results related to economic growth, state wide mobility, and advancing environmental goals. Economic impacts on California is a part of the more beneficial aspects of California HSR. Connecting the Valley to major cities (general Bay Area and Los Angeles), gives businesses opportunities in locations. Also, since it could cut down travel time, housing linkage is more convenient. California is one of the greatest gridlocked states; We have three cities on the top 5 most gridlocked cities in the nation. A trip to San Jose to Fresno would be reduced from 3 hours to one hour (California HSR Audit). It could connect regions that fail to provide affordable housing to ones with more affordable housing. This will open the housing market in the Central Valley. Opening the housing market and allowing more businesses to open could be beneficial, but it has its down falls. In the past 11-year period, the HSR has generated $5-6 billion in economic activity. It was originally assumed it would only produce $2 billion in economic activities well as 11,300 Job years. The period (July 2006 – June 2017) produced an economic impact with 28,500 – 33,200 job years of employment (California HSR Audit). With the prospects of advancing environmental goals, California has the HSR in mind to assist moving them along. California kept SB 32 in mind when supporting reasons to go forward with the HSR project (Dillion). SB 32 states a reduction target for greenhouse gases 40% below 1990 levels by 2030 (Dillion). Overtime, the HSR will save 1.5 million metric tons of carbon dioxide, in annual greenhouse emissions savings. The HSR will assure that up to 3,700 pollutants stay out of the air.
What are the beneficial or negative results to Fresno by having a HSR train?
Fresno will receive many of the beneficial and negative results as the rest of general California, with several other perks. Fresno has been one of the biggest business hubs for HSR construction (California HSR: Final EIS/EIR: Fresno-Merced). This is a result of Fresno having existing infrastructure and being a large city in the heart of the central valley. Given this, there are several beneficial results. For example, between July 2006-2017, there has been an estimation of 9,400 jobs created. It has supported 3,100 jobs; approximately 30% of jobs added to Fresno county (California HSR Audit). As mention previously, the availability of mobility will allow more people and businesses to move to the central valley. This will allow new industries to open. From a survey conducted at CSU Fresno, two-thirds of students, ages 18-23, felt more likely to reside in Fresno where cost of living is low, while having no problem commuting to work in bigger cities.
On the down side as aforementioned, it may increase property values and therefore property taxes in nearby areas to the developing areas (such as downtown Fresno). Given Fresno already has railway infrastructure, the traffic coming and going would not be new, but the amount could shift (California HSR Audit). Since the rail way plans to connect Fresno to Merced and San Francisco to L.A, San Jose, Sacramento and so forth (California HSR Audit). Reflecting the past general economic activity for the state in general, revenue in Fresno would go up. As mentioned previously, the production of the HSR has generated in the past 11-year period 5-6 billion in economic activity. Fresno also has a growing business hub, such as bitwise, a small sense of Silicon Valley in Fresno and may draw people.
Should the Firm participate in the HSR project?
Based on the findings the firm should participate in the HSR Project. The HSR Project appears to have plenty of negative aspects including management and funding. However, we cannot continue to fall back. Against all the odds this technology will help California battle its greenhouse gas emissions problem while creating new opportunities for up and coming businesses and industries not currently present Fresno. With any new project there will be complications, but we cannot let the obstacles outweigh the positive effects it will bring upon completion. With so many success stories from other countries this is the first step in connecting major cities in California.