San Jose (to the north of Gilroy). This will enable a "blended" route from San Francisco to Gilroy, and an HSR route from Gilroy to Bakersfield. This will allow HSR trains to provide a "one seat ride" from San Francisco to Bakersfield. However, there no funding as yet identified for this segment, or for the following ones: The last major construction element in Phase 1 is completing the route from Bakersfield south to Anaheim (in the Greater Los Angeles area). While future planning and funding to complete this segment are indeterminate, part of it already has had some "bookend" investments made in the metropolitan area. Phase 1 must be operational before Phase 2 is built. Phase 2 will extend the HSR system north to Sacramento and south to San Diego. These extensions are still in the preliminary planning stages. 2022 Business Plan and 2023 Project Update Report On Feb. 18, 2023 the 2023 Project Update Report information was released (the report itself will be released on Mar. 1, 2023). Some of the updated information is already included here: An updated program baseline budget and schedule. Updated capital costs to complete Phase 1. The 2022 Business Plan included information regarding the project's status, goals, and activities. In order to make an effective, self-supporting Initial Operating Segment, due to financial constraints the Authority is focusing on five areas: Creating the infrastructure for a viable Interim IOS. That means adding the additional to create an HSR-operable segment between Merced and Bakersfield, and creating the train stations along the route. Advanced design contracts have been awarded for both extensions, and work on route acquisition and construction will be performed as funding becomes available. On October 10, 2022 the contract for the first phase of station creation (expected to take about 30 months) was let. Creating an operational HSR system for testing. A Track and Systems contract will need to be let to install tracks, power, and control systems for the initial of right-of-way, and HSR train sets will need to be acquired to test on it. When the track and systems work along the initial is completed (the 2023 Project Update Report projects this to be by 2028), there will be a two-year period of testing the HSR trainsets, trackage, and control systems while construction proceeds on the Merced and Bakersfield extensions. The Authority plans to restructure and re-issue the Track and Systems procurement