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A Good Question

This would be a federal loan that makes a lot more sense than the green energy projects.

Jul 23, 2013

There are two bullet train projects under consideration in California, one a public project with no private support, and one a private project that is seeking a $5 billion federal loan. We can't even give you a total on all the government billions that have been wasted on Solyndra-type green energy dreams, but a high-speed train from L.A. to Vegas is probably something that would work - a high population area being served by a train to a highly desired destination. This would be a federal loan that makes a lot more sense than the green energy projects. But, the Department of Transportation is saying no for now. Why? "Because the company couldn’t come up with enough U.S. manufacturers for rail cars and tracks. The department prioritizes projects that use American-made products.”

The good question asked by Chris Reed in the CalWatchdog article below is: "But if the Vegas-to-Victorville project is in danger on these grounds, how is the Central Valley project proceeding?" And for a lot more than $5 billion. 

Does obstacle to one bullet train project apply to other, too?

By Chris Reed

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The Obama administration continues to push California to build its $68 billion bullet train, a measly 5 percent of which ($3.5 billion) comes from the federal government. After the first segment is built in the Central Valley, however, there is little hope of future funding from any source except California taxpayers, since private investors want illegal revenue or ridership guarantees and much of Congress — including but not limited to House Republicans — is cool to subsidizing one state’s gigantic public-works project.


But this hasn’t cooled the White House push for the project — even though the boondoggle violates plainly written federal regulations.


On another such project, however, is common sense finally sinking in? Not really. But there is an obstacle. This is from KPCC/PBS:

“You can cancel that high speed train trip to Las Vegas — at last for now. The Department of Transportation has decided to ‘suspend further consideration’ of a $5 billion federal loan application from a private company that wants to link Southern California with the gambling and entertainment mecca.

“The Department of Transportation put the XpressWest high speed train project on pause because the company couldn’t come up with enough U.S. manufacturers for rail cars and tracks. The department prioritizes projects that use American-made products.”

“The XpressWest train would take passengers to Las Vegas from Victorville — a connection point with California’s proposed high speed train running from Southern California to the Bay Area.”

“Both projects are subject to a ‘Made in the U.S.’ standard.

“South Bay Democrat Janice Hahn, who sits on the House railroads subcommittee, explains the dearth of U.S.-based manufacturers: ‘That’s one of the problems with our economy, is that we’re not growing up enough businesses to build these transportation projects in the future.’”


But if the Vegas-to-Victorville project is in danger on these grounds, how is the Central Valley project proceeding? Curious stuff.

 

 

 

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