California Bullet-Train Contract Imperiled by Federal Regulators
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The California High-Speed Rail Authority, the only bullet-train builder in the U.S., may have to renegotiate a $1 billion construction contract after a federal regulator refused to grant early approval for a 114-mile segment.
The Surface Transportation Board in Washington, which previously gave the go-ahead for a 24-mile section of the line north of Fresno, rejected the state’s request for a further 114 miles between Fresno and Bakersfield. The high-speed rail authority said it needed the additional approval because it had awarded a contract for 29 miles of the line, consisting of the full first section and 5 miles in the second section.