California high-speed rail could survive McCarthy as Speaker: official

By Rory Carroll and Robin Respaut SACRAMENTO (Reuters) - The possible appointment of a long-term critic of California's high-speed rail plan to Speaker of the House would not hinder the $68 billion project, a leading official told Reuters on Friday. California Rep. Kevin McCarthy, favorite to succeed John Boehner as House Speaker later this month, would have much greater say in shaping Congress' federal spending agenda, if appointed to the post. But Jeff Morales, Chief Executive of the California High-Speed Rail Authority, said the project would not be affected despite McCarthy's loud opposition to it. "Our current plans do not assume any new federal money," he said in an interview. The 800-mile (1,287 km) high-speed rail line – which would connect Los Angeles and San Francisco by 2029 with trains hurtling at 220 miles per hour - is considered the most ambitious infrastructure project currently planned in the United States. The project received about $3.3 billion from the 2009 federal economic stimulus package but has not received any new federal funding since. "We would obviously welcome it but we're moving forward based on what we've got and based on state and private funds," Morales said. About $13.2 billion of the estimated $68 billion projected cost has been raised through state and federal funds, plus a pledge of cap-and-trade proceeds, or funds paid by companies to offset carbon emissions. The project has many critics, and concern about its viability were raised last week when Boehner announced his intention to retire from Congress later this month. McCarthy is the leading candidate to take over the position. McCarthy, who represents a district of Southern California that includes Bakersfield, where the train line is set to pass through, has criticized the project for its high costs and the fear that it may eventually depend on government subsidies to operate. McCarthy's office did not immediately respond to a request for comment. This week, 36 construction companies, financiers, train manufacturers and operators from around the world expressed interest in working on the California train. Morales said he was surprised by the high number of submissions, coming in at double what he expected. "The private sector is interested and ready to step in and be a partner," he said. The authority plans to use the input it received to plan and package bids for rail line construction, trains and project financing. "Almost any package would have a financing arm attached to it," said Morales. (Reporting by Rory Carroll and Robin Respaut; Editing by Bill Rigby)