Voters Approve High-Speed Rail for California

Tags: transit, AB32, high speed rail, cleantech, PV, NEC, MW
11 Nov 3:41pm
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By John Addison (11/11/08). California is moving ahead with an 800-mile high-speed train system serving Los Angeles, the San Francisco Bay Area, Sacramento, the Central Valley, the Inland Empire, Orange County and San Diego. High-speed trains will be capable of maximum speeds of 220 miles per hour, covering San Francisco to Los Angeles in 2 hours and 40 minutes. The system is forecast to carry over 100 million passengers per year by 2030.

California voters approved the bond measure that commits state funds of almost $10 billion only when matched by $10 billion of federal funds and another $10 billion of public-private partnership funds. Congress and the new president are likely to support matching federal funds for high-speed rail. In this tight economy, high-speed rail will get better results for less money than using federal funds to widen California’s freeways.

Last May, President-elect Obama said. “We are going to be having a lot of conversations this summer about gas prices and it is a perfect time to start talking about why we don’t have better rail service. … [I]t works on the Northeast corridor. They would rather go from New York to Washington by train than they would by plane. It is a lot more reliable and it is a good way for us to start reducing how much gas we are using.”

Public-private partnership funding is also likely, because the rail system will be profitable. Build-own-operate models are popular in transportation with those that are likely to bid on building the system and providing the equipment. The McKinsey Quarterly in February 2008 reported that the world’s 20 largest infrastructure funds now have nearly $130 billion under management.

Support for rail and public transportation is nationwide, not just in California. Voters across the country in 16 states approved 23 measures out of 32 state and local public transit ballot initiatives, authorizing expenditures approximating $75 billion. For example, in Los Angeles, a $40 billion measure passed that will finance new and existing bus and rail lines. In the Seattle area, people voted to expand commuter rail and express bus service and to create a 55-mile light rail system by approving $17.8 billion.

Will Californians park their cars and ride the rails? Last year, LA Metro carried 64 million riders. In the Bay Area, BART carried 104 million riders. The new California High Speed Rail will link both these systems and 25 multi-modal public transportation systems in total. The forecast of 100 million passengers per year by 2030 may be conservative.

Because the rail will be powered by electricity, it is valuable to look at the power sources. In California, by law, 20 percent of the electricity will be from renewables by 2010. By 2020, it must be at least 33 percent. California is subsidizing one million solar roofs that include net metering. Pacific Gas and Electric is installing 800 megawatts (MW) of utility scale solar photovoltaics (PV). For 20 years, Kramer Junction has been delivering 350 MW of concentrating solar power. Added megawatts of wind, geothermal, and biogas projects are being added. By law, utilities must be 33% renewable by 2020. With California’s implementation of greenhouse gas emission cap and trade, renewables are likely to be the low cost source of electricity by 2030.

Using renewable energy, California’s High-Speed Rail is likely to be zero emission before 2030, saving over 20 billion pounds of CO2 annually and over 12 million barrels of oil annually.

In addition to 160,000 construction jobs over the next two decades, high-speed trains will generate 320,000 permanent jobs by 2030, growing to 450,000 jobs in 2035, according to the business plan.

For the LA to SF travel, train fares are expected to be 50 percent of an airline ticket. In 2030 LA-SF travel is forecasted at high-speed trains will carry 45%, air transportation 26%, and the automobile 29% of the total transportation market between the two biggest metropolitan areas in California. This will keep intra-state air travel constant and avoid an airport overcapacity crisis.

California High-Speed Rail builds on the success of other systems around the world.

The 456-mile Northeast Corridor (NEC) which links Boston, New York and Washington D.C. is a successful rail corridor which is vital to the economy of the northeastern United States. It currently carries well over 200 million rail passengers. There are over 500 passenger trains per day in and out of New York City, 400 commuter trains, and 100 Amtrak trains.

Amtrak’s Acela service which operates on the NEC between Boston, New York City and Washington, D.C. is the only passenger rail service in the United States that approaches high-speed standards traveling at maximum speeds up to 150 mph on about 35 miles. In comparison with high-speed trains operating in Europe and Asia, the Acela service would be considered a conventional rail operation. For example, Acela trains make the 226-mile trip between New York and Washington D.C. in about 2.75 hours, traveling at an average speed of about 80 mph.

In years past, I conducted many workshops on the east coast. It was always faster and easier to take Amtrak from Washington D.C. to Philadelphia and on to New York, than to fly. The stations are conveniently connected to public transportation, rental car service, and car sharing.

For 40 years, Japan, has been the role model in high-speed rail. The entire Japanese high-speed train network of 1,350 miles currently carries over 335 million passengers a year.

In France the TGV network, consisting of over 1,160 miles of new interconnected high-speed lines, carries over 100 million passengers each year. Spain and Germany continue to expand high-speed rail. London to Paris can be pleasantly traveled in 2 hours and 15 minutes. Eventually most of the European Union will be seamlessly integrated.

Twelve countries around the world take advantage of high-speed rail – from the United States to China. Soon the number will be 20 countries as Mexico, Russia, and others add their systems.

Oil usage in the United States and many other countries has peaked. At the moment, this is largely thanks to drivers’ reacting to high oil prices and a recession by replacing solo drives with employer commute programs and public transportation. Oil usage is likely to continue declining as efficient multi-modal transportation systems are linked together with high-speed rail – a cool solution for a heating planet.

John Addison publishes the Clean Fleet Report and speaks at conferences. His book, Save Gas, Save the Planet, will be published on March 25, 2009.


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Cleantech Blog was founded by Neal Dikeman, and all our columnists are experts in their fields. Some of them are available for media interviews and quotes, speaking engagements and consulting. You can find biographies, areas of expertise and contact information for the columnists who have agreed to be available for comments below. Contributing Columnists: * Neal Dikeman, Founder Cleantech Blog, Partner at Jane Capital Partners * Richard Stuebi, BP Fellow for Energy and Environmental Advancement, Cleveland Foundation * Heather Rae, President, Brae Consulting – Sustainability marketing expert * John Addison, Author of Clean Fleet Report, Director, California Hydrogen Business Council * Dr. Peter Beadle, CEO GreenJobs.com, former BP Solar exec Guest Contributors: * Joel Makower, World Leading Sustainability Advocate, Founder Clean Edge * Felix Kramer, Founder, CalCars.org * Nick Bruse, General Manager Clean Technology AustralAsia * Anne-Marie Fleming, President, Investor Ideas, and publisher of leading renewable energy stock web site * Mark Bitterman, Editor, Superconductor Week * Gerry Woolf, Editor, BEST Magazine We also welcome contact from PR firms looking to connect with green, sustainable, and cleantech bloggers. Neal Dikeman: I founded Cleantech Blog in 2005. I am a merchant banker and co-founder of Jane Capital Partners LLC, where I head the energy and environmental practice, and prior to that worked in venture capital, private equity and investment banking in the tech and energy sectors. We have co-founded four emrging startups in cleantech and IT (in superconductors, fuel cells, RF, and carbon credits) since the tech wreck, and advise the technology and venture investment arms of three multi-nationals. In all of it, I have been lucky enough to work with some amazing colleagues, bosses, and partners. Besides Cleantech Blog, I am a contributing editor of AltEnergyStocks.com, and contributing author to Inside Greentech. Along with our own, the blogs I regularly read include Jim Fraser's The Energy Blog, Rob Day's CleantechVC, Tyler Hamilton's Clean Break, Joel Makower's Two Steps Forward, and Inside Greentech. My areas of expertise are always a work in process, but I have been quoted, cited, or interviewed on energy, alternative energy, and cleantech issues by numerous online and print publications including Red Herring, Energy Intelligence, Time.com, Bloomberg, San Francisco Chronicle, Forbes.com, Ethical Investor, Wall Street Reporter, and FT.com among others, on topics ranging from: cleantech, solar, ethanol, blogging, technology commercialization, corporate venture investment, energy prices and policy, technology transfer, carbon trading, and renewable and alternative energy. Feel free to contact me at dikeman@janecapital.com. Mr. Richard T. Stuebi Richard Stuebi has nearly 20 years of experience as an executive, entrepreneur and consultant in the energy industry, with most of the past decade focused on advanced energy technologies. He is currently serving as the BP Fellow for Energy and Environmental Advancement at the Cleveland Foundation, one of the largest community foundations in the US with over $1.6 Billion in assets. He works with various public and private sector stakeholders to promote commercial activity in advanced energy in the Cleveland area. Mr. Stuebi has authored numerous articles that have appeared in such leading industry periodicals as The Electricity Journal and Public Utilities Fortnightly, and has presented at numerous major energy conferences. He is a contributing columnist to Cleantech Blog, writing on alternative energy issues, news and events. Prior to joining the Foundation, Richard founded NextWave Energy, a professional firm focused on capitalizing upon new business opportunities stemming from innovative energy technologies. As President of NextWave Energy, he assisted several emerging and established private-sector clients in various aspects of business development, including strategy and capital formation. Previously, Richard was a senior vice president at Louis Dreyfus, the global commodity trading firm and was a management consultant in the energy practice of McKinsey & Co. Richard earned degrees in economics from the Massachusetts Institute of Technology and Stanford University. His areas of expertise include: Economics in alternative and renewable energy, energy policy, trade, and development. Cleantech finance and technology strategy. You can contact him at rts@nextwave-energy.com. Ms. Heather Rae Heather is a green marketing expert and a long-time advocate of green technology and sustainable business. Through her consultancy Brae Consulting, Heather has worked for energy companies, cleantech startups, and nonprofits (she is currently working with a home energy efficiency program of the Maine Governor's office). Her previous corporate marketing experience includes Xcel Energy (demand-side management and green power) and Qwest Communications. A hands on expert - Heather has practiced what she preached. She is certified in high performance residential building (Green Advantage®) and has served as co-director of Colorado's Interfaith Power & Light. Readers of Cleantech Blog will know that Heather converted a retired school bus into the Brae Bio Bus, a recreational vehicle running on biodiesel (B100) with solar panels for auxiliary power, and recently drove it across the country blogging the experiences in finding biodiesel in different parts of the US. Having reached her destination at Maine Home Performance, a program of the Maine Governor's Office where Heather is helping design programs to certify and link Maine contractors with homeowners who want to "go green", Heather is now tackling the conversion of an 1880s Maine farmhouse into an energy efficiency and green showcase. Heather graduated from Wesleyan University and is a contributing columnist to Cleantech Blog writing on green and sustainable products and marketing from the consumer's point of view. Her areas of expertise include: Green marketing programs and strategies, grass roots green and sustainable programs for consumers, using green technologies in the home. You can contact her at heather.rae@braeconsulting.com Mr. John Addison John is an accomplished writer, speaker, and expert in technology marketing and strategy. He is one of the IT converts that are driving the cleantech industry. Since 1992, his marketing consultancy OPTIMARK, Inc. has provided educational programs, market intelligence, market development and partner development for technology and government leaders. A believer in cleantech's potential to change the world for the better, John is the Publisher of the Clean Fleet Report and serves on the Board of the California Hydrogen Business Council. He is a contributing columnist to Cleantech Blog. He is the author of the book Revenue Rocket on channel marketing in technology, and the upcoming book Save Gas, Save the Planet on what we as individuals can do to help save the planet. Earlier in his career John was an area channel manager for Sun Microsystems. For three years, he led a sales team to 300% annual growth in 15 states, increasing revenue from $4 to $110 million. He has taught courses about marketing and innovation at U.C. Davis and U.C. Santa Cruz Extension. He is a popular speaker in the Americas, Europe and Asia. You can find more of his speeches and articles on his websites Clean Fleet Report and Revenue Rocket. His areas of expertise include: Technology marketing and marketing strategy, channel marketing, fuel cells and the hydrogen economy, alternative fueled fleets, and California's energy tech corridor. You can contact him at johnaddison1@gmail.com. Dr. Peter Beadle Peter is the owner and CEO of GreenJobs.com. He is an is an experienced technology executive and an expert on a wide range of green and energy technologies, including photovoltaics, fuel processing, fuel cells, and oil & gas technologies. Green Jobs is one of the few dedicated job sites for the renewables and cleantech industry. They put out the online Green Directory, as well as a weekly newsletter on People News in cleantech. Peter is a contributing columnist to Cleantech Blog writing on renewable energy news and events. Peter holds a PhD in Physical Chemistry, and previously served President of BP Solar's North American division. Prior to that he held a number of positions in R&D and technology management within British Petroleum. His areas of expertise include: Solar, fuel cells, oil & gas, renewable energy job market You can contact him at Peter@greenjobs.com.