I haven't seen anything recent in the news about resurrecting the Daylight, though I think it would be a good idea. It's been talked about for years and some groups carrying a brief for the project have been advocating, but AFAIK nothing has been done. I haven''t found anything recent to the effect it is going to happen on the Internet, and nothing at all at the Caltrain, Amtrak California, or Amtrak Web sites.
There is more than one obstacle in the way.
1. This was to be a joint venture between Caltrain - a California state agency - and Amtrak, with Amtrak operating the trains and Caltrain providing the bulk of the funding. Unfortunately, California has spent itself into oblivion, is laying off and cutting back hours of its employees, even including law enforcement, and has driven much tax paying and job providing industry to neighboring states. I don't see a solution for the state any time soon.
2. The proposed Daylight is to be a limited stop train carrying passengers between SF and LA with just a few stops in between. Highway 101 traffic problems are the result of rush hour traffic in what were once sleepy towns that have become serious cities, e.g., Salinas. A train moving 300 people per day in each direction will do nothing to alleviate traffic. I doubt that Amtrak can justify funding startup as well as the operating costs when they are already paying for two perfectly good daily trains on the same route, the Coast Starlight, while other parts of the country are clamoring for service.
3. When this project was first floated, about four years back, I think, UP had eliminated through freight trains on the Coast Route, routing them over the San Joaquin Valley route and over Tehachepi. Even then, the proposed move would have required at least two additional passing sidings to be built at not so trivial cost, to accommodate local freight traffic. Now I hear UP is planning to do extensive rebuilding and improvement of the San Joaquin Route over the next several years and will use the coast route for the bulk of its through trains. If two passing sidings were needed before, how much upgrading will be necessary now to get the Daylight from LA to SF in less than a geological time frame is anyone's guess.
It will happen eventually, everything does, but I wouldn't count on 2011. Still, if anyone has something from an authoritative source it would sure make my day to see it.
Bernie