Work on building an all-electric, high-speed train between Las Vegas and Los Angeles is one step closer to completion thanks to a massive bond sale.
Private activity bonds totaling $2.5 billion were sold in March of this year to fund Brightline West’s massive private rail project. The sale involved the California Infrastructure and Economic Development and the State of Nevada Department of Business and Industry, with counsel from law firm Orrick.
This new wave of funding will go toward constructing the 218-mile rail line in the median of Interstate 15, which will allow the trains to travel up to 200 mph.
This project – the first of its kind in the U.S. – broke ground in April of last year and is set to open before the 2028 Summer Olympics in Los Angeles. The passenger rail system will cut travel time in half to 2 hours between Los Angeles and Las Vegas, Brightline says.
The system is estimated to cost $12 billion, and the federal infrastructure law provided $3 billion. The sale of the private equity bonds used a portion of the $5.5 billion in tax-exempt private activity bond volume cap allocations from the U.S. Department of Transportation for the project, according to Orrick.
The fully electric trains are designed to produce no carbon emissions. Brightline says that by saving plane and car travel, the system will cut 400,000 tons a year of carbon dioxide from being released into the atmosphere.
Four stops are planned for the system. Along with a stop near the Vegas Strip, there will be stations in California at Victor Valley, Hesperia and Rancho Cucamonga. The Rancho Cucamonga Station will enable a further passenger-rail connector to downtown L.A. via the California Metrolink.
Brightline is the same company that brought high-speed passenger rail to Florida, completing its link between Orlando and Miami in 2023.
