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.