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In 1997, after plans to extend Caltrain to downtown San Francisco were put on hold, the Peninsula Corridor Joint Powers Board (PCJPB) started the ''Rapid Rail Study'', which was published as a draft in October 1998.<ref name=98RRS>{{cite report |url=http://bayrailalliance.org/files/library/Caltrain_RRP_draft.pdf |title=Draft Caltrain Rapid Rail Study |author= |date=1 October 1998 |publisher=Peninsula Corridor Joint Powers Board |accessdate=29 March 2017 |archiveurl=https://web-beta.archive.org/web/20110807145542/http://bayrailalliance.org/files/library/Caltrain_RRP_draft.pdf |archivedate=7 August 2011 |deadurl=no}}</ref> The 1998 ''Rapid Rail Study'' prioritized planned capital improvements to implement the 1997 ''Caltrain 20-Year Strategic Plan'', which sought to improve service and increase ridership, which was assumed to correspond directly to improved service (through decreased transit times and increased train frequencies). The highest-priority projects were intended to rehabilitate the line to "reverse decades of deferred maintenance" and enhance the line by adding [[passing loop|overtake tracks]] to implement express service.<ref name=98RRS /><ref name=99RRSIP /> After rehabilitation and enhancement, the ''Rapid Rail Study'' called for [[Electrification of Caltrain|electrification of the line]].<ref name=98RRS />
Proposed rehabilitation work included rebuilding tracks and grade crossings to enable Caltrain to raise the systemwide speed limit to {{convert|79|to|90|
California State Senator Jackie Speier and Caltrain leadership are credited with the idea to provide an express service for Caltrain during a brainstorming session.<ref name=Cal-040922>{{cite press release |url=http://www.caltrain.com/news_2004_9_22_baby_bullet_service_and_founder_honored.html |title=Caltrain's Baby Bullet Service and Founder Honored |author=<!--Staff writer(s); no by-line.--> |date=22 September 2004 |publisher=Peninsula Corridor Joint Powers Board |accessdate=26 March 2017 |archiveurl=https://web-beta.archive.org/web/20060318013052/http://www.caltrain.com/news_2004_9_22_baby_bullet_service_and_founder_honored.html |archivedate=18 March 2006 |deadurl=yes}}</ref> Senator Speier sponsored Senate Bill 2003 in February 2000 authorizing {{US$|127000000|2001|round=-5}} to fund CTX;<ref name=SFC-020705 /> the first draft of the bill included funding to create "little bullet" express Caltrain service between San Francisco and San Jose (with the goal to cut transit time in half compared to local, all-stop service) and also to rehabilitate the [[Dumbarton Rail Bridge]] in preparation to reroute [[Altamont Commuter Express]] service from Stockton over the [[Dumbarton Rail Corridor]].<ref>{{cite news |url=http://www.sfgate.com/bayarea/matier-ross/article/Speier-s-Train-Bill-Would-Add-Rail-Service-to-3328549.php |title=Speier's Train Bill Would Add Rail Service to Silicon Valley |author1=Matier, Phillip |author2=Ross, Andrew |date=25 February 2000 |newspaper=San Francisco Chronicle |accessdate=26 March 2017}}</ref> By March 2000, the bill was being referred to as the "Baby Bullet Bill"<ref>{{cite news |url=http://www.sfgate.com/bayarea/article/ACE-Train-s-Board-Wary-of-Expansion-Plans-Rep-2766853.php |title=ACE Train's Board Wary of Expansion Plans / Rep. Speier's proposal lacks money, critics say |author=Cabanatuan, Michael |date=28 March 2000 |newspaper=San Francisco Chronicle |accessdate=26 March 2017}}</ref> and it passed the Senate Transportation Committee on a 9–0 vote in April 2000<ref name=SFC-000407>{{cite news |url=http://www.sfgate.com/bayarea/article/New-Move-To-Extend-Caltrain-Silicon-Valley-3304517.php |title=New Move To Extend Caltrain / Silicon Valley exodus prompts call for service |author=Pence, Angelica |date=7 April 2000 |newspaper=San Francisco Chronicle |accessdate=25 March 2017}}</ref> after it had been amended to remove Dumbarton Rail and focus solely on establishing express service.<ref>{{cite web |url=ftp://www.leginfo.ca.gov/pub/99-00/bill/sen/sb_2001-2050/sb_2003_bill_20000411_amended_sen.html |title=Bill Number: SB 2003, Amended Bill Text |author=Speier, Jackie |date=11 April 2000 |publisher=California Secretary of State |accessdate=26 March 2017}}</ref> The funding request for the Caltrain express service was later incorporated directly into the Governor's budget.<ref>{{cite news |url=http://archives.smdailyjournal.com/article_preview.php?id=2222 |title=Speier's bill proposes $225 mil for transit |author=Mays, Jon |date=8 February 2001 |newspaper=San Mateo Daily Journal |accessdate=25 March 2017}}</ref> CTX was one of the projects recommended by the [[Metropolitan Transportation Commission (San Francisco Bay Area)|Metropolitan Transportation Commission]] (MTC) under Resolution 3434 in December 2001.<ref>{{cite web |url=http://mtc.ca.gov/sites/default/files/RES-3434.pdf |title=Regional Transit Expansion Program of Projects: Metropolitan Transportation Commission Resolution No. 3434, Revised |author=MTC |date=19 December 2001 |website=Metropolitan Transportation Commission |accessdate=18 March 2016 |archiveurl=https://web.archive.org/web/20160318182925/http://mtc.ca.gov/sites/default/files/RES-3434.pdf |archivedate=18 March 2016 |deadurl=no}}</ref>
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