Friday — or sooner — will see a crucial development in the five-year fight over implementation of Proposition 1A, the 2008 ballot measure that provided $9.95 billion in bond seed money for a statewide bullet-train project while establishing a state law to ensure the funds are properly sent.
That is the deadline for the California High-Speed Rail Authority to respond to a landmark ruling by Sacramento Superior Court Judge Michael Kenny, who is hearing a series of related challenges to the rail authority’s project. On Aug. 16, Kenny released a decision related to a lawsuit filed by Kings County, Hanford farmer John Tos and homeowner Aaron Fukuda that agreed with their arguments that the rail authority would be breaking state law in two ways if it began construction of the project, as is now planned for 2014.
The judge held that the state had failed to identify the sources for the entire $31 billion needed to complete the bullet train’s “initial operating segment” from Merced to the San Fernando Valley and to obtain all necessary environmental approvals for that segment.
Instead of ordering the project be halted, however, Kenny scheduled a “remedies” hearing for Nov. 8 at which the state would discuss how it planned to address the deficiencies in its business plan and the inadequacies of its environmental reviews. The plaintiffs have already sent Kenny their proposed order. It argues that based on his Aug. 16 decision, the judge has no choice but to “permanently enjoin” the rail authority from proceeding with construction until it was in compliance with state law.
Set grounds for appeal — or accept likely long delays?
Observers of the Kings County lawsuit say rail authority officials — and Gov. Jerry Brown, who emerged as a vigorous project backer in late 2011 — have a starkly difficult decision to make in their remedies filing.
If they accept Kenny’s interpretation of Proposition 1A, their remedies would delay construction indefinitely and possibly permanently. It’s not just that full environmental reviews will take years, with project opponents having many opportunities to employ the NIMBY tactics long honed by California environmentalists. It’s the daunting task of finding more than $20 billion in firm new funding for the project. In the sequester era, the federal spigot that previously provided more than $3 billion in funds has been turned off. No private investors are interested without the sort of revenue or ridership guarantees that are forbidden under Proposition 1A.
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