CEO Report

October 9, 2025

Vision | One Year Later: Accomplishments and Looking to the Future | Related Materials

A VISION FOR DELIVERING HIGH-SPEED RAIL IN CALIFORNIA

• Gilroy to Palmdale Corridor
  • Connecting the Bay Area, the Central Valley, & Southern California
• Integrated Statewide System
  • Linking with Caltrain, Metrolink & Brightline West
• Early Monetization & Commercialization
  • Leverage assets for energy, broadband, data centers, express parcel services, etc.
• Sustainable Future
  • Advancing California’s climate, mobility, housing, & economic goals

ONE YEAR LATER: ACCOMPLISHMENTS & LOOK AHEAD

Incorporating lessons learned & charting a clear path forward for continued success

• Accomplishments
  • Funding & Financing
    • Secured cap-and-invest funding – $1 billion annual through 2045 – largest in program history
    • Developed most expansive ancillary revenue strategy framework (clean energy, broadband, etc.)
    • Conducted bottoms-up cost estimate and schedule reviews
    • Right-sized current consulting contracts – achieving $80 million in savings through efficiency
  • Procurement Strategy
    • Renewed partnerships with private sector
      • January Industry Forum: +100 private sector firms represented
      • Released request for expressions of interest for Public Private Partnership (P3): 30 responses
      • Cap-and-invest commitment secured
    • Implemented new approach to reduce service costs
      • Multiple Award Task Order Contract (MATOC)
      • Materials Procurement
      • P3/Private Partnerships
      • AEIDIQ
  • Design & Construction
    • Completed cost-optimization work by updating the Design Criteria manual
    • Construction Package 4 substantially complete
    • Completed first phase of railhead construction, track and signal installation
    • IT advancements in early works, engineering and contract management
  • Organizational Structure
    • New executive team
    • Authority reorganization for operational efficiency – run like a business
    • Right-sized current consulting contracts to be consistent with strategic priorities
    • Added key performance indicators to three construction management firms and other consultant contracts across the board
    • Internal IT advancements to support program delivery
  • Balancing Risk
    • Executed procurement, project delivery, administrative and funding actions for managing current & potential risks
    • Conducted annual Enterprise Risk Assessment
  • Legislative Action
    • Passed legislation providing CEQA exemptions for stations & facilities
      • Senate Bill 131
    • Developed forward-thinking legislative concepts to streamline delivery:
      • CEQA Exemption for Clean Power Facilities
      • Utility Relocation Streamlining/Third-Party Management
      • Prioritized System for right-of-way court cases
      • Sales Tax Exemption on Purchasing Materials
      • Encroachment Permitting Authority
      • Bonding Provisions
      • Boosting Land Use Authority and Value Capture Mechanisms
      • Additional Funding
    • Discussions with Department of Fish and Wildlife to expedite permitting process
• Looking to the Future
  • Funding & Financing
    • Continue to broaden funding sources beyond Cap-and-Invest
    • Continue wholistic cost estimates and schedule modifications
    • Adopt creative financing solutions
    • Apply early commercialization approach
  • Procurement Strategy
    • Implement lessons learned from the private sector from Request for Expressions of Interest
    • Secure P3/Private Partnerships to Accelerate Delivery
    • Release and award MATOC contracts/AEIDIQ
    • Finalize Contracts & Long Lead Commodities Purchases and Deliveries
    • Deliver Procurement Strategies
      • Track, OCS and Systems
      • Trainsets
      • Project Delivery Partner
      • Clean Energy P3
    • Track & Systems Construction Contract (TSCC)
      • Anticipate Board consideration in November for a December release to market.
      • Work covers construction, installation, testing, and commissioning of track, overhead catenary system (OCS), traction power, train control, telecommunications, and SCADA
      • systems.
      • The RFP will include:
        • Lead contractor for track and OCS;
        • Designer for traction power, train control, telecommunications, and SCADA systems; and
        • Integrator responsible for testing and commissioning.
        • Detailed pricing for the track and OCS construction work.
      • The RFP will not include:
        • Designer for track and OCS (Authority-retained);
        • Power generation and battery electric storage systems (separate power generation procurement); or
        • Equipment manufacturer of traction power, train control, communication systems.
        • The TSCC will undertake solicitation of these OEMs/vendors post-award on an open book basis, within an Authority-allocated allowance, following further advance of the design work.
  • Design & Construction
    • Pursue additional cost optimizations
    • Finish railhead civil construction facilities
    • Enact legislative reforms to streamline processes for critical conditions
    • Complete Central Valley civil works
    • Lay track by 2026
    • Environmentally clear entire route from San Francisco to Anaheim by 2026
    • Develop and implement innovative technological systems to support construction
  • Organizational Structure
    • Continued organizational structure refinements
    • Continue to build and enhance key executive leadership
    • Enhance in-house expertise with less reliance on consultants
    • Advancing technological systems to support operations
    • Continue Development Implementation of IT Systems to Support Operations & Delivery
    • Develop key performance indicators for design firms
  • Balancing Risk
    • Strengthening risk management framework to drive schedule optimization
    • Identify and mitigate risks to:
      • Right-of-way
      • Third-party utilities
      • Environmental clearance
      • Other issues as identified
  • Legislative Action
    • Advance Legislative initiatives around bond provisions/non-impairment language
    • Continue to pursue Legislative priorities

RELATED MATERIALS

• • • Board Memo for October 2025 CEO Report.
    • PowerPoint Presentation for the October 2025 CEO Report.
    • Video of October 2025 CEO Report.