Jerry Brown Wants Cap-and-Trade Money for Calif. Train Project

Since industry won't invest in project, let's make them pay to do business in the state and use that money instead

Gov. Jerry Brown plans to propose spending millions of dollars in fees paid by carbon producers to aid the state's controversial high-speed rail project.

The proposal—and the prospect of additional funding from the state's cap-and-trade program in future years—could provide a significant lift to a $68 billion rail project beleaguered by uncertainty about long-term financing.

Brown plans to propose allocating several hundred million dollars this year, sources told The Sacramento Bee.

Though the state has acquired $3.4 billion in federal funding to start construction of the rail project in the Central Valley, legal challenges have left state bond funding in question.