1 CALIFORNIA HIGH-SPEED RAIL Silicon Valley Leadership Group February 5, 2014 eBay, San Jose P R E S E N T E D B Y Ben Tripousis Northern California Regional Director California High-Speed Rail Authority Ben Tripousis Northern California Regional Director California High-Speed Rail Authority

HIGH-SPEED RAIL: MORE THAN A TRANSPORTATION PROGRAM California is 8 th Largest Economy in the World California is 8 th Largest Economy in the World Comparable to Northeast Corridor in Terms of Distance, Population and Complexity Comparable to Northeast Corridor in Terms of Distance, Population and Complexity It is a Transformational Investment It is a Transformational Investment Connecting all California Population Centers Connecting all California Population Centers California is 8 th Largest Economy in the World California is 8 th Largest Economy in the World Comparable to Northeast Corridor in Terms of Distance, Population and Complexity Comparable to Northeast Corridor in Terms of Distance, Population and Complexity It is a Transformational Investment It is a Transformational Investment Connecting all California Population Centers Connecting all California Population Centers 2

WHY HIGH-SPEED RAIL IN CA? 3 A sustainable mode of travel is needed between Northern and Southern California Six of top 30 congested urban areas in the US are in California

WHY HIGH-SPEED RAIL IN CA? 4 62% of Flights from Bay Area Airports to L.A. —Busiest short-haul market in the US —Flights routinely delayed by an hour or more —5 million passengers annually fly between LA and SF – more than NY to DC market

WHY HIGH-SPEED RAIL IN CA? 5 Over the next 30 to 40 years, California is projected to add the equivalent of the current population of the state of New York + Today 30+ years

6 PLANNING TO IMPLEMENTATION 1970s: California Creates Plans for Statewide High-Speed Rail System 1996: Authority Created 2009: Federal Stimulus Passed 2008: Prop 1A Passed 2012 – Today: Rail Improvements Sooner Rail Improvements Sooner Blended System Reduces Cost Blended System Reduces Cost 2012 – Today: Rail Improvements Sooner Rail Improvements Sooner Blended System Reduces Cost Blended System Reduces Cost

RESULTS FOR CALIFORNIA Reduction in Vehicle Miles Travelled (VMT) Reduction in Vehicle Miles Travelled (VMT) – By 2040, the system will reduce vehicle miles by almost 10 million miles every day – By 2030, the reduction in VMT would be like removing one 500-mile lane of cars Daily Number of Flights Diverted Daily Number of Flights Diverted – Starting in 2030, the state will see a daily reduction of 93 to 171 flights – By 2040, the state will see a daily reduction of 97 to 180 flights Statewide air quality improvement: Statewide air quality improvement: – Tons of volatile organic compounds reduced – Tons of particulate matter reduced – Tons of ozone precursors Reduction in Vehicle Miles Travelled (VMT) Reduction in Vehicle Miles Travelled (VMT) – By 2040, the system will reduce vehicle miles by almost 10 million miles every day – By 2030, the reduction in VMT would be like removing one 500-mile lane of cars Daily Number of Flights Diverted Daily Number of Flights Diverted – Starting in 2030, the state will see a daily reduction of 93 to 171 flights – By 2040, the state will see a daily reduction of 97 to 180 flights Statewide air quality improvement: Statewide air quality improvement: – Tons of volatile organic compounds reduced – Tons of particulate matter reduced – Tons of ozone precursors 7 7

8 FUNDING (SENATE BILL 1029) Signed into Law by Governor Brown in July 2012 Signed into Law by Governor Brown in July 2012 $2.7 billion (Prop 1A) & $3.3 billion (ARRA) First Segment of IOS from Merced to Bakersfield $600 million (Prop 1A) Modernize Caltrain Corridor $500 million (Prop 1A) Upgrade Rail in SoCal $819 million (Prop 1A) Connectivity Projects Statewide $252 million (Prop 1A/ARRA) $252 million (Prop 1A/ARRA) Planning and Design of Phase I and Phase II of System $3.3 Billion Federal ARRA Grant Funds $2.7 Billion Prop 1A Funds $3.3 Billion Federal ARRA Grant Funds $2.7 Billion Prop 1A Funds

9 NORTHERN CALIFORNIA CONNECTIVITY $145 million million Millbrae Station Track Improvements and New Trains $41 million $26 million (Caltrain + VTA) Caltrain Positive Train Control & Advanced Signal System $705 million $705 million Caltrain Electrification & Electrified Rail Vehicles $11 million $11 million Capitol Corridor Oakland to San Jose Track Improvements $11 million $11 million Stockton Passenger Track Extension (Gap Closure) $1 billion for Northern California Transit Projects $1 billion for Northern California Transit Projects $61 million $61 million Central Subway Extension

10 CALTRAIN ELECTRIFICATION PROGRAM $705 Million Investment $705 Million Investment Provides Passengers with Immediate Benefits Provides Passengers with Immediate Benefits Upgrades Existing Rail Lines Upgrades Existing Rail Lines Improves Performance by Electrifying Corridor Improves Performance by Electrifying Corridor Installation of Advance Signal System/Positive Train Control Installation of Advance Signal System/Positive Train Control Purchase of New Electrified Rail Vehicles Purchase of New Electrified Rail Vehicles $705 Million Investment $705 Million Investment Provides Passengers with Immediate Benefits Provides Passengers with Immediate Benefits Upgrades Existing Rail Lines Upgrades Existing Rail Lines Improves Performance by Electrifying Corridor Improves Performance by Electrifying Corridor Installation of Advance Signal System/Positive Train Control Installation of Advance Signal System/Positive Train Control Purchase of New Electrified Rail Vehicles Purchase of New Electrified Rail Vehicles

11 Initial Operating Section 2022: Initial Operating Section Merced to San Fernando Valley Merced to San Fernando Valley 300 Miles 300 Miles Merced to San Fernando Valley Merced to San Fernando Valley 300 Miles 300 Miles

: Bay to Basin San Jose to San Fernando Valley San Jose to San Fernando Valley 410 Miles 410 Miles San Jose to San Fernando Valley San Jose to San Fernando Valley 410 Miles 410 Miles

: Phase I Blended San Francisco to Los Angeles San Francisco to Los Angeles 520 Miles 520 Miles One Seat Ride One Seat Ride San Francisco to Los Angeles San Francisco to Los Angeles 520 Miles 520 Miles One Seat Ride One Seat Ride

14 Phase II: Future Extensions to Sacramento and San Diego 800 Miles

Central Valley will Serve as the “Backbone” of a System that will Tie Major Regions of California Together Central Valley will Serve as the “Backbone” of a System that will Tie Major Regions of California Together Fastest Growing Region in the State Fastest Growing Region in the State Availability of Federal Funding Availability of Federal Funding Ability to Advance the Project Faster and at a Lower Cost Ability to Advance the Project Faster and at a Lower Cost Testing and Certification of First High-Speed Equipment in the United States Testing and Certification of First High-Speed Equipment in the United States Central Valley will Serve as the “Backbone” of a System that will Tie Major Regions of California Together Central Valley will Serve as the “Backbone” of a System that will Tie Major Regions of California Together Fastest Growing Region in the State Fastest Growing Region in the State Availability of Federal Funding Availability of Federal Funding Ability to Advance the Project Faster and at a Lower Cost Ability to Advance the Project Faster and at a Lower Cost Testing and Certification of First High-Speed Equipment in the United States Testing and Certification of First High-Speed Equipment in the United States 15 WHY START IN THE CENTRAL VALLEY?

Merced to Fresno Project Section: 65 Mile Route Environmental Clearances in 2012 Paved Way for Work to Begin Construction Package 1 Construction Package 1 29 miles 29 miles Avenue 17 in Madera to East American Avenue in Fresno Avenue 17 in Madera to East American Avenue in Fresno Contractor and Management Team In Place Contractor and Management Team In Place  Opened Offices in Downtown Fresno  Hiring Workers  Completing Designs  Conducting Field Work  Finalizing Third Party Agreements Merced to Fresno Project Section: 65 Mile Route Environmental Clearances in 2012 Paved Way for Work to Begin Construction Package 1 Construction Package 1 29 miles 29 miles Avenue 17 in Madera to East American Avenue in Fresno Avenue 17 in Madera to East American Avenue in Fresno Contractor and Management Team In Place Contractor and Management Team In Place  Opened Offices in Downtown Fresno  Hiring Workers  Completing Designs  Conducting Field Work  Finalizing Third Party Agreements 16 WORK IS UNDERWAY

CLEAN & GREEN CONSTRUCTION The Authority has committed to using 100 percent renewable energy to power the system The Authority has committed to using 100 percent renewable energy to power the system Net Zero Greenhouse Gas Emissions Net Zero Greenhouse Gas Emissions Recycling 100% of Steel and Concrete Recycling 100% of Steel and Concrete The Authority will partner with local organizations to plant over 5,000 trees The Authority will partner with local organizations to plant over 5,000 trees The Authority will preserve up to 6,000 acres of farmland The Authority will preserve up to 6,000 acres of farmland By 2030 the system will reduce GHG emissions by up to 8.4 million metric tons By 2030 the system will reduce GHG emissions by up to 8.4 million metric tons The Authority has committed to using 100 percent renewable energy to power the system The Authority has committed to using 100 percent renewable energy to power the system Net Zero Greenhouse Gas Emissions Net Zero Greenhouse Gas Emissions Recycling 100% of Steel and Concrete Recycling 100% of Steel and Concrete The Authority will partner with local organizations to plant over 5,000 trees The Authority will partner with local organizations to plant over 5,000 trees The Authority will preserve up to 6,000 acres of farmland The Authority will preserve up to 6,000 acres of farmland By 2030 the system will reduce GHG emissions by up to 8.4 million metric tons By 2030 the system will reduce GHG emissions by up to 8.4 million metric tons 17

SMALL BUSINESS PROGRAM Aggressive 30% Goal for Small Business Participation Including 10% for Disadvantaged Business Enterprises (DBE) 10% for Disadvantaged Business Enterprises (DBE) 3% for Disabled Veteran Business Enterprises (DVBE) 3% for Disabled Veteran Business Enterprises (DVBE) Meeting & Exceeding Goals Free Statewide Certification Workshops Partnerships with Federal, State and Local Organizations Aggressive 30% Goal for Small Business Participation Including 10% for Disadvantaged Business Enterprises (DBE) 10% for Disadvantaged Business Enterprises (DBE) 3% for Disabled Veteran Business Enterprises (DVBE) 3% for Disabled Veteran Business Enterprises (DVBE) Meeting & Exceeding Goals Free Statewide Certification Workshops Partnerships with Federal, State and Local Organizations 18

19 NEXT STEPS: CLOSING THE GAP State Calls for Supreme Court Review State Calls for Supreme Court Review Continue Work in Central Valley, Peninsula, Southern California Continue Work in Central Valley, Peninsula, Southern California Work with Cities/Regions to Address Local Concerns Work with Cities/Regions to Address Local Concerns Connect Northern and Southern California Connect Northern and Southern California -Close the Tehachapi Gap Fund Construction of the System Fund Construction of the System -Private Financing/Investors -Federal Grants/Loans -California Cap & Trade Revenue -TOD Revenues -Concessions State Calls for Supreme Court Review State Calls for Supreme Court Review Continue Work in Central Valley, Peninsula, Southern California Continue Work in Central Valley, Peninsula, Southern California Work with Cities/Regions to Address Local Concerns Work with Cities/Regions to Address Local Concerns Connect Northern and Southern California Connect Northern and Southern California -Close the Tehachapi Gap Fund Construction of the System Fund Construction of the System -Private Financing/Investors -Federal Grants/Loans -California Cap & Trade Revenue -TOD Revenues -Concessions

CONTROVERSY IS NOTHING NEW Transformational Projects Have Never Been Easy Transformational Projects Have Never Been Easy Golden Gate Bridge: Golden Gate Bridge: “Upside-Down Rat Trap that will Mar the Beauty of the Bay” “Upside-Down Rat Trap that will Mar the Beauty of the Bay” 2,000+ Lawsuits 2,000+ Lawsuits BART – Once Called the Train to Nowhere BART – Once Called the Train to Nowhere Calif. State Water System, University of Calif. System Calif. State Water System, University of Calif. System Single-Vote Margins Single-Vote Margins Where Would We be Without Them? Where Would We be Without Them? Transformational Projects Have Never Been Easy Transformational Projects Have Never Been Easy Golden Gate Bridge: Golden Gate Bridge: “Upside-Down Rat Trap that will Mar the Beauty of the Bay” “Upside-Down Rat Trap that will Mar the Beauty of the Bay” 2,000+ Lawsuits 2,000+ Lawsuits BART – Once Called the Train to Nowhere BART – Once Called the Train to Nowhere Calif. State Water System, University of Calif. System Calif. State Water System, University of Calif. System Single-Vote Margins Single-Vote Margins Where Would We be Without Them? Where Would We be Without Them? 20

21 CALIFORNIA HIGH-SPEED RAIL AUTHORITY CONTACT INFORMATION: California High Speed Rail Authority 770 L Street, Suite 800 Sacramento, CA Ben Tripousis 100 Paseo de San Antonio, #206 San Jose, CA CONTACT INFORMATION: California High Speed Rail Authority 770 L Street, Suite 800 Sacramento, CA Ben Tripousis 100 Paseo de San Antonio, #206 San Jose, CA