Funding – The funding authorized by the Governor and Legislature, by the federal government and the people of California is sufficient to deliver a high-speed rail line connecting the Silicon Valley to the Central Valley

Schedule – We now project starting passenger service on that line in 2025 instead of on a line between Merced and the San Fernanco Valley in 2022

Cost Estimates – Our capital cost estimates for building the Phase 1 system between San Francisco/Merced and Los Angles/Anaheim are lower than prior estimates

We determined that the line that we can fund and build within projected sources, and initiate revenue producing operations on quickly, is a line connecting the Silicon Valley (San Jose) to the Central Valley (at the existing Construction Package 4 southern construction terminus north of Bakersfield). The Silicon Valley to Central Valley line, from Diridon Station in San Jose to a station north of Bakersfield, which includes an interim facility that functions as a temporary station, meets Proposition 1A requirements including non-subsidized operations. It can be built with available funding from Proposition 1A bonds, federal funds and the continued anticipated Cap and Trade proceeds.

However, we believe the first operating line should extend further — from San Francisco to Bakersfield – and offer a one-seat ride between these two destinations. This extended line would significantly enhance ridership and revenues and therefore attract higher value private sector concession bids based on future discounted cash flows. Our goal is to construct that longer line. This will require the completion of the Caltrain modernization program/electrification project. It will also require approximately $2.9 billion of additional funding to extend the line to Bakersfield and for initial improvements in the San Jose to San Francisco corridor to allow operation of high-speed rail trains in the Caltrain corridor. Given the opportunity to leverage more ridership, revenue and private sector participation, we will seek federal funds to help complete the full San Francisco to Bakersfield line. If those additional funds are not forthcoming, we can and will still construct the Silicon Valley to Central Valley line described above.