In addition to the direct reduction in travel times the HSR project will produce, there are also economic and environmental impacts of the high-speed rail system. These were also specifically noted in Proposition 1A at the time the project sought authorization from the voters of the state in 2008. The anticipated benefits apply both generally to the state overall, as well as to the regions the train will pass through, and to the areas immediately around the train stations.
Estimates of current & past impacts
Latest 2022 & 2023 Impact Information, Overall and by Region
On March 17, 2023 the Authority released its latest 2022 and 2023 impact report.
Job training: The Central Valley Training Center
The Central Valley Training Center (located in Selma, California) is an organization supported by the Authority and local non-profit and governmental organizations. Since 2020 it has provided hands-on, free, 12-week pre-apprenticeship programs in 11 trades to prepare Central Valley veterans, at-risk young adults, minority, and low-income populations for construction jobs on the CAHSR project. As of December 2022 it has graduated 7 cohorts, totaling over 100 students, and further assisted them by providing job placement as well as other support services.
Annual Sustainability Reports
CAHSR is designed to be an entirely environmentally sustainable system. Each year since 2018 the Authority has produced a Sustainability Report. Highlights of the 2022 report are: "Restoring more than 2,972 acres of habitat and protecting more than 3,190 acres of agricultural land; Planting more than 7,100 trees; Avoiding or sequestering 420,245 metric tons of carbon dioxide – the equivalent of removing one natural gas-fired power plant from the grid for a year; Increasing small business participation to over 700 entities; Generating between $12.7 and 13.7 billion in total economic activity in the state, with 56% investment in disadvantaged communities."
Cumulative economic impact estimates
The 2021 Economic Impact Factsheet estimated that as of June 2021, the statewide economic benefits of the project included 64,400–70,500 job-years of employment, $4.8–$5.2 billion in labor employment, and $12.7–13.7 billion in economic output, and that as of February 2022, 699 small businesses were involved in the project.
The Authority's economic impact analysis is updated annually. The 2021 Economic Analysis Report contains data as of June 2021.
STB estimates of regional needs
In its 67-page ruling in May 2015, the federal Surface Transportation Board noted: "The current transportation system in the San Joaquin Valley region has not kept pace with the increase in population, economic activity, and tourism. ... The interstate highway system, commercial airports, and conventional passenger rail systems serving the intercity market are operating at or near capacity and would require large public investments for maintenance and expansion to meet existing demand and future growth over the next 25 years or beyond." Thus, the Board sees the HSR system as providing valuable benefits to the region's transportation needs.
The San Joaquin Valley is also one of the poorest areas of the state. For example, the unemployment rate near the end of 2014 in Fresno County was 2.2% higher than the statewide average. And, of the five poorest metro areas in the country, three are in the Central Valley. The HSR system has the potential to significantly improve this region and its economy. A large January 2015 report to the CHSRA examined this issue.
In addition to jobs and income levels in general, the presence of HSR is expected to benefit the growth in the cities around the HSR stations. It is anticipated that this will help increase population density in those cities and reduce "development sprawl" out into surrounding farmlands.
Negatively-affected local communities
There have also been some reported negative impacts from the project's land acquisitions and constructions. As of Oct. 2021 in the Phase 1 construction the project displaced or adversely affected immigrants (Mexican, Cambodian, and Japanese), homeless outreach organizations, homeless shelters, firefighters, nonprofits working with welfare recipients, thrift stores, and disadvantaged communities such as Wasco.