California Gov. Gavin Newsom and the U.S. Department of Transportation (USDOT) announced Thursday that they had formed a strategic partnership to identify billions in financing for infrastructure improvement projects in that state.
The announcement would allow California to expedite work on a network of related projects that collectively will help grow the economy, protect the environment, facilitate the movement of imports and exports and modernize the supply chain processes throughout the California trade corridors.
“California’s ports and infrastructure system is key to the country’s supply chain. Thanks to our collaboration with the Biden-Harris Administration, this innovative federal-state partnership will help us fast-track those projects that will make our ports and infrastructure even more efficient,” Newsom said. “This partnership will help us jumpstart and support multiple infrastructure projects to improve our supply chain, making sure goods get to where they need to go faster, cheaper, and more environmentally friendly.”
The partnership could help kick-start construction to deliver benefits to the transportation supply chain and U.S. consumers, the partners said. Projects like port upgrades, freight rail capacity expansions, inland port facilities, railyard and truck electrifications, highway upgrades, and land ports of entry would be included in the agreement.
Under the Emerging Projects Agreement, the Build America Bureau at USDOT would support the California State Transportation Agency (CalSTA) in developing California infrastructure projects designed to improve capacity and resiliency and will assist project sponsors in exploring innovative financing opportunities for billions in infrastructure investment.
“Our supply chains are being put to the test, with unprecedented consumer demand and pandemic-driven disruptions combining with the results of decades-long underinvestment in our infrastructure. That’s why this administration is working around the clock to address both near-term and long-term challenges to our supply chains, including investments such as those in the bipartisan infrastructure deal,” said U.S. Transportation Secretary Pete Buttigieg. “Today’s announcement marks an innovative partnership with California that will help modernize our infrastructure, confront climate change, speed the movement of goods, and grow our economy.”