1 High-Speed Rail — American Style Steve Heminger Executive Director Metropolitan Transportation Commission June 3, 2011

2 “You’ve got to accentuate the positive. Eliminate the negative. And latch onto the affirmative. Don’t mess with Mister In-Between” – Bing Crosby, 1944 (lyrics by Johnny Mercer)

1. Connectivity Is Key 3

2. Deliver Early Co-Benefits 4

5 3. Environmental Review(s) Run Amok

4. A Need for Constructive Criticism  Recent LAO Report recommends transferring HSR development to Caltrans.  But the LAO itself has found major shortcomings at Caltrans in the areas of project delivery, budgeting and hiring: “Caltrans has a less than perfect record in delivering projects on time and on budget.” ( Budget Analysis, p. A- 44)  Given its size and complexity, California’s HSR system must be developed by an entity whose sole purpose is successful delivery of that project.

7 5. Reward Self-Help 7

8 6. High-Speed Rail is Not the Interstate System Redux  High-speed rail is about connecting large metropolitan areas  The critical decision is focusing on the proper city pairs

9 7. High-Speed Rail Is Not Stimulus OBLIGATION AND OUTLAY OF MAJOR TRANSPORTION STIMULUS FUNDING (Millions of Dollars, As of Close of Business on Friday, March 4, 2011) Agency BureauAccount Total ProvidedObligated Oblig. % of TotalOutlays Outlay % Of Total DOTFHWAFederal-Aid Highways27,50026, %18, % DOTFTATransit – Capital Formula 6,9007, %4, % Highways + Transit Formula 34,40034, %22, % DOTFTATransit – Rail Modernization % % DOTFTATransit – New Starts % % DOTFRAHigh-Speed/Intercity Rail8,0004, %831% DOTFRAGrants to Amtrak1,3001, %1, % SOURCE: Transportation Weekly

10 8. There’s No Such Thing as a Democratic or a Republican Road…

11 9. So Why Do It?  Alternative to congested air travel  Clean electric transportation  $7 per gallon of gasoline “Facing Up to End of 'Easy Oil'” (Wall Street Journal, May 24, 2011)  Are all of major economic competitors crazy? “ The question is, are there any special circumstances that suggest all these other countries are wrong and we are right? ”  To prove we still can

12 “ The Commission envisions an intercity passenger rail network that provides competitive, reliable, and frequent passenger service, comparable to world-class systems in other countries. This network would primarily connect regions and population centers within 500 miles of each other.” 10. Keep Our Eye on the Prize

13 Metropolitan Transportation Commission