LAS VEGAS (FOX5) -- The State of Nevada Board of Finance on Friday approved the issuance of up to $950 million in industrial development revenue bonds to assist in construction of the high-speed rail project.
According to a news release, the 170-mile high-speed rail project will connect Las Vegas to Victorville, California.
The state says it will allocate $200 million of its existing private activity bond volume cap, while an additional $750 million will be leveraged from the federal government.
No taxpayer dollars will be used to finance the project, the state said in the release. The issuance of these bonds will not impact the state's ability to finance future projects.
According to the state, bond proceeds will be used to support the construction and maintenance of the rail system for approximately 35 miles adjacent to the Interstate 15 corridor on the Nevada-California border, along with necessary infrastructure improvements in Southern Nevada.
The project is being undertaken by DesertXpress Enterprises and construction is scheduled to begin later this year.
The project will result in 10,000 construction jobs and 350 permanent jobs in Nevada, the state said. The total economic impact for Nevada will be roughly $2 billion with $325 million in new tax revenue, the release said.
According to the release, upon completion in 2023, it's estimated that the rail system will remove 3,000,000 passenger vehicles from roadways annually, reducing carbon emissions by 100,000 tons per year.
Officials with the high-speed rail have said that electric and zero emission trains will reach top speeds of 200 miles per hour, transporting passengers between destinations in 85 minutes.
"This project is a long time coming to Nevada and I'm pleased to take this step forward to bring this vision to reality and bring additional jobs to our State," said Gov. Steve Sisolak. "This plan creates jobs without using taxpayer dollars and without impacting our State's ability to finance future projects, and will allow a new, convenient mode of transportation between Nevada and California.”