The Trade Corridor Bulletin

Volume 19 – No. 2 | November 2024

Save the Date: Join CAGTC in Washington, D.C. for our 2025 Annual Meeting

Election Outcomes Send Congress, Executive Branch into Overdrive To Close out 2024

By: CAGTC Staff

The Republican Party secured a government trifecta this month with former President Trump elected to a second term and Republicans gaining control of both chambers of Congress. Following this political shake up, there is much to break down about the road ahead for the remainder of the 118th Congress and the Biden-Harris Administration’s plans before departing the White House.

At the top of the agenda for the remainder of this year’s legislative session is fiscal year 2025 (FY25) appropriations. Congress was unable to negotiate a full FY25 appropriations package earlier this fall, meaning the government is operating under a continuing resolution that expires on December 20. Legislators must either pass a second continuing resolution or full appropriations package by December 20 to prevent a government shutdown.

Another item on the legislative agenda for this year is passing the biennial Water Resources Development Act (WRDA), which authorizes the U.S. Army Corps of Engineers (Corps) Civil Works Program. The House’s version of the 2024 WRDA passed in July by a 359-13 vote and the Senate unanimously passed its version of WRDA in August. Congressional action is needed by the end of the year to pass a negotiated version of the 2024 WRDA.

Looking ahead to the 119th Congress, the House and Senate steering committees will be preparing for the next legislative cycle by electing committee leadership before the new year. The current Chair of the Committee on Transportation and Infrastructure, Sam Graves (R-MO), is ineligible to remain chair after reaching the term limit set by the Republican Conference. Unless Graves receives a waiver to continue his chairmanship, Rep. Crawford (R-AR) will most likely take his place as Chair. Rep. Larsen (D-WA) will continue to serve as the transportation committee’s Ranking Member. Senator Cruz (R-TX) will be the Chair of the Senate Committee on Commerce, Science, and Transportation and Senator Cantwell (D-WA) will serve as the Ranking Member. The Senate Committee on Environment and Public Works will be chaired by Senator Capito (R-WV) and Senator Whitehouse (D-RI) is expected to become the Ranking Member.

In the months leading up to the presidential transition , the Biden-Harris Administration has focused on cementing the legacy of the Bipartisan Infrastructure Law (BIL). The U.S. Department of Transportation (USDOT) celebrated the BIL’s third anniversary on November 15 by announcing FY24 Port Infrastructure Development Program awards and has spent the last few weeks rapidly making other grant award announcements.

USDOT awarded FY25 and FY26 funding to 36 Infrastructure for Rebuilding America (INFRA) projects and 11 National Infrastructure Project Assistance (Mega) projects. Projects supported by or directly applied for by members of the Coalition for America’s Gateways and Trade Corridors (CAGTC) received $428 million in the latest round of Mega awards and $454.8 million in the latest round of INFRA awards. Since the BIL was signed into law in 2021, CAGTC members have received an impressive total of roughly $1.55 billion under the Mega grant program.

Likewise, the Environmental Protection Agency is spending the remaining weeks of the Biden-Harris Administration by working to finalize grant agreements for the Clean Ports Program awards that were announced on October 29. The Clean Ports Program was established under the Inflation Reduction Act – a law viewed as a key accomplishment of the outgoing administration – to improve air quality at ports across the country by installing clean, zero-emission freight and ferry technologies along with associated infrastructure.

While the Biden-Harris Administration wraps up its key policy priorities, President-elect Trump has been gearing up for his second term by announcing his cabinet picks. On November 18, President-elect Trump announced that he will nominate former Congressman Sean Duffy (R-WI) to serve as his Secretary of Transportation. Duffy represented Wisconsin’s 7th Congressional District from 2011-2019, during which he served on the House Financial Services and Budget Committees. If confirmed by the Senate, Duffy will be responsible for implementing the remaining two years of the BIL.

Industry News

Biden-Harris Administration Announces Nearly $580 Million for Ports to Strengthen American Supply Chains and Lower Costs

On November 15, the U.S. Department of Transportation’s Maritime Administration (MARAD) announced plans to invest nearly $580 million from the Bipartisan Infrastructure Law to fund 31 port improvement projects in 15 states and one U.S. territory. As part of President Biden’s Investing in America agenda, this funding will help increase both capacity and efficiency at coastal seaports, Great Lakes ports, and inland river ports. The port improvement projects will strengthen supply chain reliability, create workforce development opportunities, enhance freight efficiency, lower costs, reduce emissions, and improve the safety, reliability, and resilience of our ports.

The funding comes from MARAD’s Port Infrastructure Development Program (PIDP), which received $2.25 billion from the Bipartisan Infrastructure Law to improve port infrastructure to meet the nation’s freight transportation needs. The program provides planning support, capital funding, and project management assistance to improve the capacity and efficiency of ports in both urban and rural areas.

Among the organizations receiving awards are the following members of the Coalition for America's Gateways & Trade Corridors:

    • The Port of Oakland received $49.5 million for its Outer Harbor Terminal Infrastructure Modernization Project. The project involves wharf strengthening and structural repairs, including crane girder upgrades, added piling, beam strengthening, and crane rail replacement.
    • Port Houston received $23.36 million for its Agricultural Export Improvement and Community Resilience Project. This project will expand a grain elevator at the Port of Houston Authority’s Turning Basin and expand stormwater capacity infrastructure for the port and surrounding community by constructing the first phase of a drainage improvement project.
    • The Northwest Seaport Alliance received $11.65 million Pierce County Terminal Efficiency Project. The project consists of converting all lighting to LED lights, installing reefers on racks with power infrastructure for approximately 198 refrigerated containers, and rebuilding the terminal transfer zone.

Read the full release from USDOT here.

Industry News

NAWE Board Names Carl Bentzel Next President

Incoming NAWE President, the Honorable Carl Bentzel

The National Association of Waterfront Employers (NAWE) Board of Directors announced that the Honorable Carl Bentzel has been elected to serve as the association’s new president, effective December 16, 2024. As part of this role, he will also serve as the Executive Director of the National Maritime Safety Association (NMSA).

“I am honored to join the National Association of Waterfront Employers and the National Maritime Safety Association in this pivotal role. As we navigate a dynamic era for our industry, I look forward to working alongside industry leaders to enhance port operations, advance workforce safety, and strengthen our collective resilience to meet evolving challenges,” said Carl Bentzel, NAWE’s president-elect. “I am also deeply thankful for my time at the Federal Maritime Commission and the opportunity to work with such dedicated colleagues who share a commitment to the success and integrity of our maritime industry.

Mr. Bentzel is currently serving his first term as a Commissioner at the Federal Maritime Commission (FMC), which he commenced in December 2019, after having been nominated by President-elect, Donald J. Trump. He was re-nominated by President Joseph R. Biden in July of this year.

For over thirty years, Mr. Bentzel has contributed at the highest levels considering maritime policy and issues related to the nation’s supply chain. He worked for close to fifteen years as senior counsel on maritime and transportation shipping issues, where amongst other issues, he developed legislation that governs international container and cargo shipping including the Ocean Shipping Reform Act of 1998. In the aftermath of the attacks of 9/11, he was one of the primary negotiators to implement new security standards at U.S. ports with the adoption of the Maritime Security Act of 2002. For his efforts on maritime security, the U.S. Coast Guard awarded him the U.S. Coast Guard’s medal for Meritorious Public Service.

Read the full release here.

Member Spotlight

Member Spotlight: Nossaman

Nossaman attorneys and policy advisors are innovators who take pride in finding creative solutions to the complex infrastructure and transportation challenges that public agencies face every day. We have the deepest bench of infrastructure attorneys in the nation and have extensive experience advising public owners and guiding them through the development and delivery of signature projects that help enhance our U.S. trade corridors, gateways and intermodal connectors.

We have comprehensive experience in all aspects of infrastructure and project finance, having played key roles on some of the largest and most innovative infrastructure financings in the U.S., including a large percentage of the transactions closed under the Transportation Infrastructure Finance and Innovation Act (TIFIA) and Private Activity Bonds (PABs) programs.

We have extensive experience working with the White House, Office of Management and Budget, U.S. Department of Transportation and its modal Administrations, Environmental Protection Agency, and other Executive Branch agencies relevant to international trade and goods movement.

Our attorneys also offer practical experience, insider insight and thoughtful analysis on our Infra Insight Blog. We blog about what we know best, from industry-leading procurements to important policy developments that affect the market and our clients. We invite you to subscribe so you don't miss our updates!

Shant Boyajian, Nossaman Partner and CAGTC Board Member

Nossaman is an active member of the Coalition for America’s Gateways & Trade Corridors (CAGTC). Shant Boyajian, Partner for Nossaman, serves on the CAGTC Board of Directors and generously offers his time and expertise to the Coalition.

Recent projects we have advised our clients on include:

LA Metro. Nossaman provides federal advocacy services to LA Metro on a variety of issues related to transportation funding and policy. Currently, we advise LA Metro on IIJA implementation, goods movement and freight corridor issues, innovative financing programs, federal procurement and domestic preference requirements, LA Metro’s innovation campus concept, and several other high-profile matters. We also serve as legal counsel to LA Metro on the development, procurement, contract negotiation, and implementation of LA Metro’s major projects.

Harbor Department of the City of Los Angeles (Port of Los Angeles) – Government Relations. Nossaman represents the Port of Los Angeles before the U.S. Congress, the White House, and federal Executive Branch agencies on funding, financing and policy issues relating to infrastructure, transportation, technology, workforce, cybersecurity and commerce. Our services include advising on federal and state funding, creating comprehensive legislative and policy strategies, coordinating complex advocacy campaigns, drafting legislative language and advocacy materials, developing coalitions and leading engagement efforts with policymakers.

Port Authority of New York and New Jersey – Federal Grant Consulting Services.  Nossaman advises the Port Authority of New York and New Jersey on delivery of its 10-year capital plan, including project sequencing and scoping, federal grant funding strategy and federal compliance issues.

Louisiana Department of Transportation and Development – I-10 Calcasieu River Bridge Public-Private Partnership Project. Nossaman is advising on the LA DOTD’s second P3 project. The project includes design and construction of a new six-lane bridge on Interstate 10 over the Calcasieu River in Lake Charles, development of a new toll system, modification and relocation of existing roadways and demolition and removal of the existing bridge. The $2.3 billion project reached financial close in August of 2024.

Michigan Department of Transportation – I-75 Modernization Project (Segment 3) P3. Nossaman is advising on an availability payment P3 concession for the widening and reconstruction of a portion of Interstate 75 in the Detroit area. The $600 million capital cost project is the first major upgrade done on the highway since its construction in the 1960s. The project adds a lane in each direction and includes construction of a major underground stormwater tunnel. MDOT opened significant portions of the project in 2023-2024 after reaching completion on a number of key areas.

Indiana Finance Authority/Indiana Department of Transportation – P3 and Design-Build Program. Nossaman is advising the Authority on availability payment projects within its innovative P3 and design-build infrastructure program. Indiana has established itself as a national leader in leveraging private-sector capital and innovation to finance, construct and maintain major transportation infrastructure projects.

Texas Department of Transportation. Nossaman is special counsel to the Texas Department of Transportation for its massive design-build and P3 program.

Member News

Port of San Diego Selects Scott Chadwick as its Next President and Chief Executive Officer

Scott Chadwick, Next President and CEO for the Port of San Diego

The Board of Port Commissioners has selected Scott Chadwick to serve as the Port of San Diego’s next President and Chief Executive Officer (CEO). Chadwick is currently the city manager of the City of Carlsbad and was selected from among several hundred applicants after a thorough and far-reaching search that began in February. His contract is anticipated to be ratified at the December 10 Board meeting, and he is scheduled to begin at the Port in mid-January.

“The Board and I are pleased to announce the selection of Scott Chadwick to lead the Port of San Diego into a people-focused future that reflects our commitment to deliver on our promises to our communities, our tenants, the residents of the state of California, and to all who visit our beautiful waterfront,” said Chairman Frank Urtasun, Port of San Diego Board of Port Commissioners. “In Scott, we have a proven leader who believes that people and relationships are of utmost importance in public service and in business. He will inspire us all to do our best work.”

Chadwick brings with him 20 years of city government experience, including over six years in Carlsbad and approximately 14 years at the City of San Diego in various roles including chief operating officer, human resources director, and labor relations director. Earlier in his career, he worked at AFSCME Council 36, Local 127 in San Diego for five years after serving in the U.S. Army for eight years as an intelligence analyst. Chadwick graduated from Purdue University with a Bachelor of Arts degree in political science. He grew up in San Diego County and now resides with his family in Point Loma.

Read the full release here.

Research News

Across the Political Divide, Voters Approve $41 Billion for State & Local Transportation Investment

Voters Nov. 5 approved 77 percent of 370 state and local ballot initiatives that are expected to generate $41.4 billion in new and renewed funding for roads, bridges, trails and rails, according to initial results compiled by the American Road & Transportation Builders Association (ARTBA).

Some revenue will be available immediately through bond agreements, while most will be generated through sales, property, or other taxes collected gradually over as many as 30 years.

Among the key outcomes:

  • South Carolina: Four out of nine counties renewed or enacted a local sales tax for transportation purposes, approving $11.7 billion in funding for roads, bridges, and transit.
  • Arizona: Voters renewed a half-cent transportation sales tax, which will generate $14.9 billion in revenue for another two decades.
  • Nashville: Voters approved $3.1 billion for the city’s transit system, sidewalks, and roads after overwhelmingly supporting a half-cent sales tax increase.

Read the full report here.

Research News

D.C. Circuit Invalidates NEPA Regulations

On November 12, 2024, a divided (2-1) panel of the U.S. Court of Appeals for the D.C. Circuit issued a ruling invalidating the Council on Environmental Quality’s (CEQ) National Environmental Policy Act (NEPA) regulations because NEPA does not grant CEQ the authority to issue rules binding on other federal agencies. The Court’s ruling is likely to send shockwaves through the regulated and regulator communities alike and may result in no small degree of confusion as federal agencies, project proponents and courts grapple with the implications of the decision.

Read the full release here.