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Highlights from Chapter 5:

Key Risks

State Funding Risks

The state has provided two major funding sources: Proposition 1A bond funds and an ongoing appropriation of Cap-and-Trade proceeds.

  • In the future, the Authority will request that the Legislature appropriate the remaining $4.2 billion in Proposition 1A funds; a delay could affect the project’s delivery schedule
  • Future Cap-and-Trade revenues could be volatile and affect cash flow and project delivery

Federal Funding Risks

We have two grant agreements with the Federal Railroad Administration.

  • Disengagement by the Federal Railroad Administration could delay required federal approvals
  • Federal Railroad Administration de-obligation of FY10 grant funds is in litigation
  • Federal Railroad Administration could seek to reclaim expended American Recovery and Reinvestment Act funds

Litigation Risks

A program of this nature will experience many different legal risks, including:

  • Proposition 1A challenges
  • Environmental documentation

Program Delivery Risks

Ongoing program delivery risks that projects like this typically face include:

  • Meeting federal grant construction deadlines
  • Right-of-way acquisition and third-party agreements
  • Completing environmental clearance
  • Other construction-related risks

More Information

Learn more about the California High-Speed Rail program and business plan online at or contact the Board of Directors at (916) 324-1541 or