CEO Report

March 17, 2022

Overview | Cap and Trade Update | April Board Meeting | Future In-Person Meetings | Relevant Materials

OVERVIEW

• Cap and Trade Auction Update
• Update on Future Board Meetings
• Spring Construction Update

CAP-AND-TRADE UPDATE

• February Cap-and-Trade Auction Results:
• Preliminary results suggest the Authority will receive about $244 million from the February auction.
• Annualizing the quarters, the past four auctions have generated about $1.047 billion for the Authority – this is the highest level of revenue for any one-year period since the auctions started.
• The graph shows the market is stabilizing after the pandemic, and the market is robust. Should continue to be a vibrant program.
• The primary driver of higher auction proceeds is auction settlement prices significantly above the reserve price – in February the auction settlement price was $29.15 per allowance versus the reserve price of $19.70.
• The Final 2022 Business Plan will be updated to include the February auction.

• Graphic is a bar graph, showing (y axis) quarterly auction proceeds in dollars by (x axis) quarter from the cap-and-trade auctions. The first quarter shown is August of 2017, and the most recent quarter is February 2022.
• The last four quarters show approximately $1 billion in funds to the High-Speed Rail Authority.
• Two lines are present superimposed over and across all bars showing two funding levels where quarterly bars need to reach each quarter to the Authority to receive $500 million and $750 million dollars per year.
• A severe dip in funding is marked by the start of the covid-19 pandemic.

APRIL BOARD MEETING PREVIEW

• Upcoming April Board Meeting:
• Reminder: the upcoming April meeting will be a two-day Board meeting. Pre-covid practices and protocol.
  • Wednesday, April 20 and Thursday, April 21
• The meeting will be in-person in Sacramento
  • Location: East End Complex, 1500 Capitol AvenueExternal Link
• Expected Action Items:
  • EIR/EIS for San Jose to Merced
  • Draft 2022 Business Plan considered for adoption.

UPCOMING BOARD MEETINGS

• Future In Person Meetings:
  • Authority must include a physical teleconference location for board members not participating in person on the agenda.
  • Locations must be accessible to the public.
  • Ensure equipment is sufficient.
  • Post agenda at all teleconference locations.
  • Members of the public attending at teleconference locations must be able to address the governing body in the same manner as those attending in person.
  • All votes taken at meetings with teleconference must be with a roll call vote.
  • We have to go back to the prior rules.

RELATED MATERIALS

• View the February 2022 CEO Report PowerPoint PresentationPDF Document.
• View videoExternal Link of the February 2022 CEO Report.