Posted on 10/22/2015 3:19:31 PM PDT by NormsRevenge
SAN FRANCISCO (Reuters) - Private firms looking to build California's $68 billion high-speed train system have concerns about the state's ability to finance some of the project's cost through an untested 'cap-and-trade' carbon trading levy.
The doubts, mentioned in correspondence to the state and reviewed by Reuters through a public records request, are not likely to stall financing for the United States' largest infrastructure project, but indicate a tentativeness among firms to use the money as a stand-alone money-generating tool.
The California High-Speed Rail Authority (CHSRA) expects to raise $500 million per year for the rail line from the cap-and-trade scheme, essentially funds paid by companies to offset carbon emissions. State rail officials have described the revenue stream as a "game changer" for the project, set to be completed in 2029.
But international firms such as Cintra and Kiewit worry that the unpredictability of such revenue could leave a funding gap, if the money were to be used to repay project debts, and ultimately discourage competition from potential investors.
“There would need to be some assurances," wrote OHL Group, an international construction firm based in Spain, "that the funding of the construction and future availability payments would be protected from such market fluctuations.”
California’s carbon market has raised $2.2 billion since auctions began in 2012 and is expected to bring in $15 billion by 2020, according to the California Air Resources Board. A quarter of the funds are slated for the train project, a priority for Governor Jerry Brown.
(Excerpt) Read more at news.yahoo.com ...
[channeling Karnak the Magnificent with envelope to temple]......It won't!
CO2 is good, M’Kay!
I see Gov. Moonbeam has been unable to kick his crack habit.
http://www.hsr.ca.gov/Programs/Statewide_Rail_Modernization/Project_Sections/index.html
Map of this monstrosity...
Note that the primary run is going to chew up a LOT of farmland and not provide secondary lines to provide meaningful service to at least some of the state...
Doesn’t Pelosi’s hubby have some pull in this?
These projects will be accomplished by a bit of Utopian magic and a government bailout.
nice view of cow country they got there -good thing the scenic mountains are not disturbed
Another scam to bilk the taxpayer out of billions
I believe you are thinking about Richard Blum, Dian Feinstein's husband.
The most important long runs (aprx 400 mi for SF to LA and aprx 400 mi for SAC to LA) have EIGHT stops in between. That’s a stop aprx every 45 miles. How much time do you save by going at max-high-speeds for only a few minutes over each leg? $68 billion to save maybe 40 min over similar non-high-speed rail or direct shuttle bus? Insane.
But Franklin Raines has a patent on Cap and Trade, no? It has to work.
Simple. Big businesses will evade or lobby for exemptions and when the money never materializes Sacramento will implement sweeping taxes on the people who don’t want and never will ride their silly train.
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