A new report from California's non-partisan Legislative Analyst's Office raises questions about the California High-Speed Rail Authority's latest plan to end the project's first operating section near Shafter in rural Kern County.

The project's new 2016 Business Plan marked a major shift in strategy for the troubled project. Instead of building the line from Merced to the San Fernando Valley as originally intended, the initial operating segment is now set to shift northward, from San Jose to just north of Shafter.

But ending the project in a rural portion of the San Joaquin Valley, and not extending all the way to Bakersfield is a serious concern according to the LAO report. It suggests the authority make Kings County the southern terminus of the line's initial operating segment, or IOS.

In order to make the southernmost portion of the IOS usable, HSRA plans to build a temporary station or platform at this location. However, doing so would require additional environmental clearance as a station at this location was not previously evaluated by HSRA. Even with a temporary station or platform, ending the IOS in an unpopulated agricultural area does not appear to be an effective approach. This is because this location would not have the types of facilities and nearby businesses, such as transit connections, rental car facilities, and shops necessary to meet the needs of train passengers. To address these concerns, the Legislature could direct HSRA to limit work beyond the last permanent station (Kings/Tulare) near Hanford.

According to the LAO it would cost an additional $2 billion to build track from the site near Shafter to Bakersfield. If the Kings/Tulare station marked the southern end of the project, the report suggests it could also free up funding to make improvements that could help bring the trains all the way to San Francisco. Alternatively, the report says the Legislature could provide another $2 billion to extend the tracks to Bakersfield.