Siemens raises questions about Calif. HSR project funding

SACRAMENTO, Calif. — In a recent expression of interest to state officials, German rail firm Siemens questioned the long-term funding prospects for California's bullet train, reported the Sacramento Business Journal.

Specifically, the company questioned whether the project’s current funding stream — the state cap-and-trade program — is sustainable. The novelty of the program could give pause to potential private investors, Siemens told state officials, the report said.

“We perceive the market as very cautious in lending long-term based on this new kind of revenue stream, especially due to its early stage and potential self-diminishing nature,” Siemens wrote in a September report to the California High-Speed Rail Authority, according to the Sacramento Business Journal.