Overview
On December 30, 2016, in the final weeks of the Obama Administration, the Treasury Department released a report identifying 40 proposed transportation and water infrastructure projects of major economic significance but whose completion has slowed or is at risk. This report, authored by third-party infrastructure experts, was commissioned in connection with the Build America Investment Initiative, a government-wide effort created by President Obama through executive action to encourage infrastructure investment. The 40 projects identified are located across the country and fall into the following major categories: highways, water resources, rail, ports/waterways, and air. California High Speed Rail is one project included in the report, which would encompass over 800 miles of high-speed rail across the state. The total estimated net economic benefit of these 40 infrastructure projects, if all were completed, is $800 billion.
The report also identifies primary challenges to completion for each project. Inadequate funding is the most prevalent problem, followed by lack of consensus among stakeholders, increased capital costs, and regulatory issues, which include extended project review and permitting processes. For example, the report notes that the permitting process under the National Environmental Policy Act of 1969 (NEPA) has lengthened over the years, extending infrastructure project schedules and increasing costs.
President-elect Trump has been outspoken in his support for infrastructure investment, stating that it will be a top priority when he assumes office. In the coming months, it will be interesting to see what policies the Trump Administration and Congress will propose to encourage infrastructure investment and reduce permitting delays.