to make the Interim IOS its top priority. Per the 2023 Project Status Report the Authority indicates the Interim IOS will go into service before Dec. 31, 2030, with a "risk factor" of three years (which runs until the end of 2033). After completing the Interim IOS, the Authority plans to advance construction on the Merced-San Jose segment, linking the Central Valley to the tracks of the Caltrain commuter rail system. This will allow HSR trains to run from San Francisco to Bakersfield. Funding for construction of this segment has yet to be secured. The Authority is also aggressively seeking additional federal funds. The California High-Speed Rail Peer Review Group (established by the California Legislature) has noted a number of concerns about the progress of the project, including issues acquiring property in the Central Valley, delays due to lawsuits, an early lack of requisite management experience, and weak legislative oversight. Inflation has also become a major concern due to the disruptions caused by the COVID-19 pandemic and the War in Ukraine. The project will require legislative action, so the issues raised by the Peer Review Group and KPMG, the Authority's project consultant, will help the legislature select from the Board's proposed plans or other alternatives. Phased implementation plan Phase 1 runs from San Francisco to Los Angeles and Anaheim, and is being implemented in sections. In the Central Valley there is massive construction underway, and more is in preliminary processing. The Authority is currently constructing of guideway and structures. To make the Interim Initial Operating Segment ("Interim IOS") self-sustaining, additional length is in the process being added at each end to reach the cities of Merced (north) and Bakersfield (south) for a total length of about . At each end, the Interim IOS will connect to other transit systems for passenger transfers. "Bookend" investments are also being made in the Bay Area and Southern California upgrading existing infrastructure to improve local rail transit as well as support eventual HSR service. Per the 2023 Project Update Report, "In consultation with the FRA [Federal Railroad Administration], and in light of cost estimates, the Authority is proposing to construct [the] Merced and Bakersfield [extensions] in phases as federal funding is awarded." The next implementation priority of the Authority is to provide an HSR link from the Interim Initial Operating Segment to Gilroy (to the west of Merced) and a "blended" system link to