The authority's CEO presented a project update report that summarizes a programwide reassessment of design, sequencing and procurement strategies and outlines pathways for finishing the Merced-to-Bakersfield program and potential extensions to Palmdale and Gilroy by the late 2030s if funding and political commitment are provided.

The CEO said the report identifies program delivery changes that lower estimated capital costs and emphasizes the need for stable, longer-term funding. Staff noted the governor's FY 25-26 proposal to extend cap-and-trade (renamed cap-and-invest) through 2045 with a proposed $1 billion annual allocation for the authority; staff said that proposal could provide a financeable revenue stream for future public'private partnerships.

Separately, the authority's financial adviser Thierry Prate summarized responses to a recent RFEI seeking expressions of interest from developers, investors and other industry parties. Prate said the authority received about 31 responses from a mix of engineering firms, developers/investors, specialty suppliers, advisory services, construction firms and rail operators. Several respondents indicated interest in packaging projects in the $2 billion to $5 billion range and in structuring deals on an availability-payment basis to manage early ridership and revenue risk.

Why it matters: Industry interest in P3 arrangements and in revenue-generation concepts (including commercial uses of corridor and night-time freight/economic uses) could provide financing options and private-sector expertise, but staff said that availability payments and longer-term state revenue certainty would be central to attracting partners.

Prate said discussions continue in one-on-one follow-ups with respondents and that staff will return with further planning on potential P3 structures and predevelopment steps. Board members asked about opportunities to use corridor capacity for freight during non-passenger hours and about the potential to transfer night-time freight and other cargo operations to specialized rolling stock; staff said analogous operations exist in Europe and Japan and that respondents included firms with relevant experience.

No board action on P3 structuring was taken; staff described the RFEI feedback as a planning step and said further engagement is expected.