Strike Two for Calif. High Speed Rail: Setback by Surface Transportation Board

After suffering a major setback from a court decision that prevents the authority from selling $10 billion in voter-approved bonds, a key federal agency has ruled that the authority must comply with environmental regulations before laying tracks.

2 minute read

December 6, 2013, 8:00 AM PST

By Irvin Dawid


"In another key setback to the California bullet train project, federal regulators have rejected the state's request to exempt a large Central Valley segment of proposed track from a lengthy planning review," writes Ralph Vartabedian. 

The action affects part of a 29-mile rail section to be built near Fresno, where state officials have already awarded a construction contract. The decision is likely to complicate, delay and substantially drive up the cost on that initial $1-billion package of work.

The rejection from the Surface Transportation Board, the successor agency to the Interstate Commerce Commission, "marks the second time in nine days that the rail agency's planning process has been rejected by authorities". As we noted on Nov. 26 a Sacramento Superior Court's "invalidation of the project's financing plan has put its future in doubt".

Related to that court ruling, Vartabedian writes that "the federal board's vice chairman Ann Begeman issued a statement calling for a comprehensive analysis of the project's "financial fitness." She added, "Today's decision acknowledges the growing controversy regarding California's bond funding process."

The ruling potentially affects the California High Speed Rail Authority's construction contract with Tutor Perini Corp. (and the topic of a prior post). However, "(a)n authority representative said there was no plan to renegotiate the contract... because it has until July 2014 to get the clearance from the board without renegotiating the deal." 

The setback not only affects the authority, but also a broader goal: President Obama's "vision for high speed rail", the topic of a Dec. 5 piece by Sam Stein in The Huntington Post.

Thursday, December 5, 2013 in Los Angeles Times

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight