Seeking billions in state funds for rail project

Facing the loss of federal dollars for high-speed trains, lawmakers propose committing to recurring payouts using cap-and-trade revenue

- COLLEEN SHALBY

SO FAR, construction of the rail line has been limited to the Central Valley.

As federal funds for California’s high-speed rail project remain suspended, state lawmakers urged the Legislature to approve a $1-billion-per-year investment pulled from cap-and-trade revenue while linking the future of the project to job opportunity across the state.

State Sen. Dave Cortese (D-San Jose) said during a news conference Monday that the monetary commitment would ensure the project continues amid uncertainty around funding.

“We can't build a 21st century transportation system on onetime money alone or with limited resources that don't get us where we're trying to go,” Cortese said.

The state’s cap-and-trade program requires major polluters to buy credits to offset carbon dioxide emissions and allows those companies to buy or sell the unused credits at auctions, generating billions in state revenue. This year, Gov. Gavin Newsom proposed setting aside a large chunk of those funds for high-speed rail.

Cortese and others touted the rail project’s effect on small businesses and workers, highlighting its creation of nearly 15,000 jobs that have generated roughly $22 billion in economic growth.