OMG, New Grab for CARB’s Cap & Trade Slush Fund
04/01/2012 2 Comments
The Fresno Bee has the story: State’s ‘cap-and-trade’ program could provide funds for high-speed rail
A new financing strategy is a centerpiece of a revised business plan that state leaders will unveil Monday in Fresno for the proposed high-speed train system.
Rather than rely on uncertain future federal transportation funds, money from the auction of air-pollution credits — the state’s “cap-and-trade” program — can provide a “backstop” source of money for the California High-Speed Rail Authority, authority chairman Dan Richard told reporters Saturday.
How well is this going to work out. The real issue is not building the high-speed rail line it is the cost of ownership, the maintenance and logistics needed through the life of the project. There is no way for the fare structure to pay for these cost, so once the high-speed rail taps the cap & trade slush fund it will before ever. Over time the HSR will demand more and more from the cap & trade slush fund.
As CARB sucks more and more slush funds from business they will soon migrate to states with out AB-32 taxes and there will be fewer and fewer people who can afford to, or need to, ride the HSR. At some future date a political leader with the political cajones will pull the plug on this gigantic failure.