Wednesday, September 10, 2008

Menlo Park Wants To Decide For California Whether We Have HSR

NOTE: We've moved! Visit us at the California High Speed Rail Blog.

Menlo Park and Atherton, two of the most affluent cities in the entire state, apparently believe it is their right to make decisions for the other 36 million people in California. At a study session last night in Menlo Park city officials and residents spouted off reasons why HSR was a bad idea for California as justification for their lawsuit and resolution against the project. While one might understand the city's desire to mitigate the impact of HSR on their landscape, the tone of the debate made it clear that HSR's impact on Menlo Park wasn't the issue. Instead the forum was a chance for HSR's few opponents in this state to push their anti-HSR arguments to the media in hopes that they could use Menlo Park residents for their own purposes.

The San Mateo County Times article on the session noted that Menlo Park and Atherton are the ONLY two cities along the proposed route that oppose the project. All others support it. Further, as Rod Diridon noted, the cities along the Altamont route oppose HSR as well - yet Menlo Park wants to saddle them with a line they don't want. Cities like Fremont and Livermore are more middle- and working-class, but the wealthy residents of Menlo Park and Atherton are quite happy to override their objections to keep the trains out of their own backyard.

Menlo Park in particular also seems interested in ignoring the fundamental reality that they are, and have always been, a railroad city. The tracks that currently carry Caltrain cars have been there since before the city was founded. Caltrain runs nearly 100 trains through Menlo Park and Atherton every day. But city staff and elected officials behave as if that doesn't exist:

The staff's consistent point has been that the train should not run through the heart of a residential city, splitting east from west and forcing the removal of old-growth trees and perhaps even city and private property.

That was the argument of Elizabeth Blois, who spoke for members of the Felton Gables Homeowners Association on Tuesday in pleading for the rail association to consider the impact on their homes.


Someone should inform city staff of Caltrain's existence. The other part of this argument should be turned around on Menlo Park - if preserving a residential city is their concern, why do they support dangerous at-grade crossings? Why do they support pollution-spewing diesel trains? The loss of a small part of city and private property seems a small price to pay for safety and clean air.

Blois and others who made similar comments revealed their true motives - classic, dictionary-definition NIMBYism. Not in their backyard - but it's apparently OK to force it onto someone else, someone poorer.

Menlo Park and Atherton also are taking a stand for global warming and against carbon reduction. They are telling Californians that the property and aesthetic values of a small group of people is more important than solving our climate and energy crises. The 160,000 construction jobs and 450,000 long-term jobs that HSR would create don't faze a community that enjoys a unique level of economic security, towns that can afford to reject a green dividend.

Some of the other comments at the meeting were of the usual, uninformed HSR denier sort:

Other arguments from the public were more far-reaching. Jerry Carlson, vice mayor of Atherton, said the high-speed rail project as a whole is a waste of transit resources.

"I think a much better approach would have been to put that money into regional plans," he said.


Now, perhaps I'm missing something, but a train that whisks passengers from SF to SJ in 20 minutes sounds like a regional plan. A train that gets commuters from Anaheim to LA in 30 minutes is a regional plan.

Atherton resident Jack Ringham said the project would probably run far over budget, take years longer than predicted and attract far fewer riders annually than the 117 million the rail authority's consultants predict.


We dealt with Ringham's nonsensical claims back in June - anyone who thinks ridership on HSR will not be high is just demonstrating their lack of knowledge about passenger rail.

Vice Mayor Heyward Robinson conceded the city may not be able to stop the project altogether. If that's the case, he said, it should work with the rail authority to get key concessions. For instance, he suggested the high-speed portion of the line could stop at San Jose, and those continuing to San Francisco could simply take Caltrain.


In other words, Robinson wants to break the entire project and force people to have slow commutes just because he wants to pretend his community is not the railroad town that it has always been.

Some HSR supporters showed up to fight the good fight:

Roxanne Rorhpaugh said "the time has passed'' for debates about the Pacheco vs. Altamont alignments. She said she's certain the train can come through Menlo Park without serious damage to nearby property, but even if there were damage, "It's 12 houses versus 117 million" riders. "Do the math."


Amen to that. Menlo Park is trying to dictate terms to the rest of the state, claiming that the interests of 12 million-dollar homes are more important than fighting high gas prices, global warming, and the energy crisis. Menlo Park's neighbors Palo Alto and Redwood City aren't opposed to the train yet they too have wealthy homeowners who live near the tracks, and Redwood City in particular has a downtown that will be rather directly affected by the trains.

They understand the need to build a sustainable 21st century future that allows all Californians to share in our prosperity, allows all Californians to travel around their state. It's a shame that Menlo Park and Atherton prefer to make the state bend to the will of a few wealthy individuals. If that's not aristocracy I don't know what is.

Tuesday, September 9, 2008

CA Chamber of Commerce Out to Lunch on Congestion Mitigation

NOTE: We've moved! Visit us at the California High Speed Rail Blog.

The California Chamber of Commerce, a reliably right-wing organization, has announced its opposition to Proposition 1A, the high speed rail bond on the November ballot. Their reasoning is as follows:

“California will need to invest at least $50 billion to complete a statewide high speed rail system. There are other projects that mitigate congestion that should be a higher priority,” said [CEO Allan] Zaremberg.


First, Zaremberg's math is off. CA will invest $10 billion and the rest comes from feds and private enterprise (which will get something in return - isn't that what the Cal Chamber is all about?). Nobody is talking seriously about $50 billion, at least nobody outside the usual HSR denier groups.

But I want to instead focus on the notion that "other projects" are the solution. Such as?

Seriously. What "other projects" would these be? Shouldn't they be specifying what they would do with the money instead of just saying "nope, sorry, not gonna do it"?

We can get a sense of what the Cal Chamber probably supports from Lee Harrington, chairman of the Southern California Leadership Council, a group of businessmen. Harrington was on KQED Forum back in May with Quentin Kopp and also said we should use the bond money for other priorities. Here was my take on Harrington:

His arguments against HSR were incredibly weak and boiled down to his preference, as executive director of the Southern California Leadership Council, that the state's bond capacity be preserved for something like port capacity expansion, freeway widening, airport expansion, that sort of thing. He had no concept of why HSR is needed to keep California moving, and even parroted the discredited "Southwest Airlines offers cheap travel" nonsense. Kopp was especially effective in smacking down that claim, pointing out that the Texas high speed rail project so memorably killed by Southwest and others in the 1990s has been revived, with support from other major airlines. Harrington gave the impression of a man hopelessly stuck in the 20th century, unable to grasp that the basic economy of transportation has undergone a sea change in the last 5 years.

Harrington does not speak for the Cal Chamber but it seems reasonable to assume that his reasoning is similar to that used by the Cal Chamber to oppose Prop 1A. The Cal Chamber prefers to see freeway widening, more airport gates, and more port capacity. The latter is all well and good but won't help move passengers around the state. And as we have repeatedly explained here, expanding freeways and airports will cost between $80 and $150 billion, double to quadruple the cost of HSR.

And those projects are not likely to successfully mitigate congestion. Few airports in the state have room to expand, and the same holds true for the freeways. The phenomenon of induced demand suggests that to try and build your way out of congestion is to chase a mirage. HSR provides certainty on congestion management by getting people out of cars and plans and into a new, fast, convenient alternative.

As many California businesses are aware, high fuel costs are eating into their profitability and causing them to lay off workers. High speed rail helps provide stable passenger transportation costs, saving them money. It also provides greatly expanded commuter rail capacity, especially on the most heavily traveled routes in the Bay Area and Southern California.

The Cal Chamber is turning its back on jobs, profits, and economic growth by opposing Prop 1A. High speed rail will create 160,000 immediate jobs and in the long-term create at least 450,000 more. It will help produce a green dividend that will grow the economy by freeing up money not spent on gas to be spent elsewhere, including in businesses that are members of the Cal Chamber.

As a rather ideologically conservative organization the Cal Chamber's opposition should not be that surprising, and although it's nonsense it will also not likely affect Prop 1A's fate. The far more interesting endorsement discussion is instead happening within the Sierra Club. We'll have more on that one tomorrow.

Monday, September 8, 2008

The Green Dividend

NOTE: We've moved! Visit us at the California High Speed Rail Blog.

In contrast to the usual arguments that high speed rail will cost this state billions and provide nothing in return, this blog has consistently argued that high speed rail is a smart investment that will save Californians money over the more costly alternatives, and will provide us with new economic opportunities and savings.

Thanks to a link at The Overhead Wire we now have some evidence to suggest the economic benefits of sustainable transportation. It's being called the Green Dividend and is based on the successful example of Portland, Oregon, where sustainable and green transportation policies have saved residents $2.6 billion. The ripple effect throughout the local economy has made Portland one of America's leading cities, and provides a model that California would do well to emulate.

From the short paper by Joe Cortright:

Portland, OR, has acquired a reputation as the nation’s greenest city. For many, this green streak is viewed as a sort of environmental hair-shirt. Portlanders deprive themselves of prosperity in the name of saving the environment. Skeptics view biking, transit, density and urban growth boundaries as a kind of virtuous self-denial, well meaning, but silly and uneconomic. Critics see the seeds of economic ruin. They claim planning, policies and regulations that restrict use or access to resources impede growth and lower household income.

Similar claims are frequently made about high speed rail - that we'll be pouring some $40 billion down a hole and get nothing in return for it, a "train to nowhere" in the minds of some. But that thinking is as flawed for CA HSR as it is for Portland.

Cortright's argument is that since Portlanders have a shorter commute than the US average - 4 miles less - that translates into actual money saved, money that isn't spent on commuting and that can be respent throughout the economy:

Four miles per day may not seem like much, but do the math. The Portland metro area has roughly 2 million residents. If Portlanders traveled as much as the typical U.S. metro resident, that would produce 8 million more vehicle miles per day or about 2.9 billion more miles per year. A conservative estimate of the cost ofAll told, the out-of-pocket savings work out to $1.1 billion dollars per year. This works out to about 1.5 percent of all personal income earned in the region in 2005.

This is a good minimum estimate of the aggregate economic benefits—the green dividend—that Portland area residents enjoy as a result of land use planning and related environmental policies. But the benefits don’t stop there. Since Portlanders don’t spend that money on transportation, they have more money to spend on other things. Because so much of what is spent on transportation immediately leaves the state — Oregon makes neither cars nor gasoline — money not spent on transportation gets spent on sectors of the economy that have a much larger local multiplier effect. (Think locally-brewed beer.) According to IRS data, about 73 percent of the retail price of gas (back when it was under $2 a gallon, by the way) and 86 percent of the retail price of cars is the “cost of goods sold,” which immediately leaves the local economy. The $1.1 billion Portlanders don’t spend on car travel translates into $800 million that is not leaving the local region. Because this money gets re-spent in other sectors of the economy, it stimulates local businesses rather than rewarding Exxon or Toyota.

The economic value of the time saved is $1.5 billion, which is where Cortright gets his $2.6 billion figure. Portland is not a physically large place - about 2 million people live in the metro area - so one would figure that the economic benefit to Californians of similar miles driven savings would be much larger.

This is one of the core arguments for high speed rail - it will save Californians money. As fuel prices increase the cost of airfare and driving increases a well. Without a high speed rail alternative all that money gets taken out of the California economy - we only have one auto manufacturing plant, in Fremont, and even though Chevron is headquartered in San Ramon their massive profits are spread around global investors. If high oil prices were a boon to the California economy we'd certainly be seeing the effects right now. That we're instead sliding into recession should suggest the true costs of oil dependence.

"Green Dividend" could be put another way - "economic stimulus." Unlike a one-off check from the US Treasury, or offshore drilling that will produce no savings and no income (and even no gas) for Californians, high speed rail will help stimulate our economy by freeing up billions of dollars that are currently being wasted on commuting for other things - to sustain small businesses, afford housing or health care, start a new business, innovate something new.

Those who oppose Prop 1A have NO answer to this argument. They're going to leave billions of dollars in annual savings and economic stimulus on the table. And for what? To continue the failed and economically ruinous policies of the 20th century? Some argue that we're better off relying on alternatively fueled cars. But to sustain that demand we'd need at least $80 billion in freeway and roads improvements, the R&D costs and price to the consumer of those vehicles will not be cheap, and who knows how long it will take to develop these promising technologies.

Whereas HSR is off-the-shelf technology - it is ready to go right now. We don't need a long and unpredictable R&D schedule. We don't need to spend $80 billion on new freeway lanes - we can spend (as a state) an eighth of that on Prop 1A.

High speed rail's green dividend is substantial, and represents an opportunity to secure California's economic future that cannot be missed.

Sunday, September 7, 2008

High Speed Nonsense in Tracy

NOTE: We've moved! Visit us at the California High Speed Rail Blog.

One of the most bizarre and nonsensical anti-HSR op-eds appeared in the Tracy Press on Friday. Written by Craig Saalwaechter, the article makes high speed rail out to be some kind of "hurricane" that will destroy the state. Instead the author winds up defending a failed status quo, suggesting that California stand idly by in the face of looming environmental, energy, and economic crisis. If Saalwaechter wants to analogize HSR to a hurricane, his approach is that of someone who sets up a lawn chair as the storm approaches without putting plywood over the windows and getting the hell out of town.

Think of it as a big Y placed smack dab in the middle of California.

No, think of it as a big WHY?

Proponents tout its ability to eliminate commuter congestion, reduce air pollution and provide an alternate mode of transportation.

At last week’s transit forum sponsored by the city, I didn’t meet any Tracy-to-LA commuters, just Tracy-toward-the-bay commuters.

High-speed rail won’t help reduce their congestion along the Interstate 580-205-120 corridor.

Earth to Craig: Tracy is not California. It's one thing to point out that Tracy isn't going to immediately benefit from HSR. But quite another to assume that since Tracy isn't going to get an HSR station, nobody else will, and nobody anywhere will benefit. Commuters in the Bay Area and Southern California will see a significant benefit from high speed rail, whether you live in San Jose and commute to work in downtown SF, or live in Orange County and commute to LA, or any number of other combinations.

Of course, HSR riders won't just be commuters. They will also be travelers - tourists, business travelers, families going to see grandma and grandpa for the winter holidays. Lots of residents in Tracy have family in SoCal. Lots of residents in SoCal have family in the Bay Area. Given the ever-rising cost of gas and airfares and the cutbacks in flights, this is an important consideration for all Californians.

Saalwaechter's article mentions none of this. It's basically a bunch of non-sequiturs strung together to reach the 800 word requirement.

Supporters of the bond reluctantly claim that the total cost of the high-speed rail system could reach $40 billion. They expect $10 billion from the feds and the rest from “private investments.” Bet you can’t wait to see the shenanigans and shady deals that are put together by our bureaucrats in Sacramento.

This HSR supporter - me - has never been reluctant to explain the total cost of the HSR system. Of course it's $40 billion. Of course we expect $10 billion or more from the feds, and yes, we expect private investors. But there's no reason to imply "shenanigans" unless your worldview is so cynical that you probably have a hard time getting out of bed in the morning. The Authority has already been in discussions with private investors about what their needs are to invest. This is a discussion that will unfold over the coming years and involve the legislature's oversight in a public process. If Saalwaechter can't be bothered to be a good citizen and get involved in the process and actually read the documents, he shouldn't be making baseless claims.

And have you noticed that as projects grow from city to county to state, they get worse? Just look in our own backyard at the multi-county San Joaquin Delta College disaster. Gee, what a shocker that the big city of Stockton gets all the goodies and the neighboring towns get shafted.

This non sequitur is actually rather telling. To folks like Saalwaechter, ALL government projects are inherently flawed. There's not a good one in the bunch. Whether it's a school or a train or a bridge or who knows what else, anything government touches turns to dung in his mind. His objection is really to government, not to HSR. Otherwise he'd have more knowledge of the transit projects that came in on-time and on-budget, like the Metro Gold Line extension.

But back to Prop. 1A and its cost estimates. It’s a huge underestimate comparison, but let’s use recent and planned BART extensions as a template. The almost $2 billion Millbrae-to-SFO connection and the now estimated $7 billion Milpitas-to-Santa Clara line will be a total of less than 40 miles of 1960s technology. Total cost: $9 billion. Does that number sound familiar? Can you imagine the higher cost of a state-of-the-art bullet train?

BART's construction costs are unusually high owing to its unique technology. It's a distinction few in the public understand, since they see all passenger rail as basically being the same. It's an unfortunate legacy of decades of underinvestment in rail. But that doesn't mean that HSR will face the same cost overruns as BART - the technology is standardized, the construction methods are standardized. Any cost overruns will come due to inflation and the declining value of the dollar.

So picture this: You drive over to San Francisco, and after waiting through long Homeland Security lines, you start your Southern California trip from the marble-laden San Francisco station, with your hair figuratively whipped by 200 mph winds. You race down the peninsula watching blue “Your Tax Dollars at Work” signs whiz by. You roar into the polished granite San Jose station and literally fly off toward Gilroy.

Oh, no, the train is slowing, and you see a “Track Closed” barrier ahead. As the train grinds to a halt, you notice there is no Gilroy station, just a retired garlic worker wearing a conductor’s hat sitting in the sun at a card table! Off in the distance, you faintly hear, “Sorry folks, we ran out of HSR money.”

This is where his column, already shaky to begin with, goes off the rails completely. From the 200mph speeds in a "marble-laden station" to a train that stops in the dead of nowhere his fantasy makes little sense. Obviously the underlying concern is the Authority will run out of money before the system is completed. That's a real issue, but Prop 1A - as amended by AB 3034 - has some pretty strong safeguards preventing such a situation. The bond money can't be spent on more than 50% of station and track costs, essentially requiring a federal commitment before construction can begin.

Recently it was written (Our Voice, Aug. 30) that this 800-pound gorilla of a proposition may generate $11 million for the Altamont corridor. It could improve the ACE tracks or lead to building a separate rail line. With the costs of land acquisition, planning, designing and environmental impact studies, that money would be burned up before the first spike is driven.

Even with some nebulous matching-fund scheme, the current cost of rail track construction would net Tracy about 3 miles of track. Well, if Alaska can have a bridge to nowhere, we can a track to nowhere.

But nowhere does he define "the current cost of rail track construction." If he wants to call Tracy "nowhere" he's free to do so, but here I thought he opened his column by arguing Tracy needs a commuter connection to jobs in the Bay Area. If he's making speculation about costs that aren't based on any evidence, and if he's contradicting himself within a single op-ed, can we really take what he says that seriously?

Prop. 1A would do absolutely nothing to improve our commuter problems. So why would we saddle our residents with this massive state bond debt?

Furthermore, Gov. Arnold Schwarzenegger is floating a 1-cent increase in sales tax to close the current $15 billion deficit. If BART costs are any indication, expect the true cost to put in the stations and 800 miles of track to easily exceed $100 billion. So expect repeated massive income and sales tax increases in the future. Do we really need this debacle?

As I noted above, BART is not HSR. I'd love for him to show me an HSR construction project anywhere in the world that saw 250% cost overruns. If he can't he's not credible.

More importantly, Saalwaechter is making the same mistake as dozens of other HSR deniers - assuming that the cost of not building HSR is zero. It's not. The cost of not building HSR is north of $100 billion, when you include the cost of expanding freeways (which Saalwaechter supports), the cost to travelers in higher fuel prices, the cost to businesses and workers of those fuel costs, the costs of climate change, and the lost economic opportunity for jobs and growth that HSR provides.

Ultimately the problem with this op-ed is that it assumes the status quo works just fine. That we can stop big bad government in its tracks and save ourselves from disaster. For that argument to work you have to ignore a LOT of evidence that demonstrates disaster is coming and that our current transportation system is not tenable.

California is going to have to pay to extricate itself from this crisis. There is no way around it. The question before us is whether we spend $10 billion on this bond or north of $100 billion to try and manage without HSR. When you look at the complete picture, as the HSR deniers never do, HSR clearly is the cost-effective, fiscally smart solution.