October 21, 2021

Newsom Partners with Biden Administration to Tackle Supply Chain Issues

Yesterday, California Governor Gavin Newsom signed an executive order directing state agencies to coordinate with the Biden-Harris Administration Supply Chain Disruptions Task Force to address state, national and global supply chain challenges. The executive order also directs state agencies to develop longer-term solutions that support port operations and goods movement for consideration in the January 10 Governor’s Budget, which may include port and transportation infrastructure improvements, electrification of the goods movement system from port to delivery and workforce development.
The executive order comes on the heels of a letter sent by Western Growers and 18 other business organizations to Governor Newsom on Tuesday, urging the governor to coordinate with President Biden’s efforts to address the urgent crisis at the California ports.
Excerpt from the letter:
“California can take a unique national leadership role in partnering with the Biden administration, the ports, and the many companies within the state engaged in goods movement to address this crisis. Therefore, we are asking for the following comprehensive plan to be enacted:
1. Declare a State of Emergency at the ports and the associated transportation links to enable quick action to resolve bottlenecks as they arise;
2. Suspend implementation of AB 701 until the supply chain has normalized and goods movement has been restored;
3. Suspend AB 5 and allow independent truckers to operate in and through California until the supply chain has normalized;
4. Provide flexibility on existing Air Resources and local port drayage truck regulations, and ensure upcoming deadlines on new regulations take into account delays in manufacturing and delivery of new trucks; 
5. Suspend implementation of the Indirect Source Rule recently promulgated by the South Coast Air Quality Management District until the supply chain has normalized; 
6. Suspend local and regional mandates that interfere or limit goods movement, including local prohibitions on unloading goods at stores after hours; and 
7. Direct already appropriated state resources to clean up homeless encampments in and around goods movement corridors; and 
8. Expedite the CEQA and permitting processes, including conditional use permits, for warehouses, rail line and other critical components of goods movement. 
…This crisis requires a concerted focus and the state’s immediate attention. We stand ready to work with you and your administration to address port/supply chain congestion now and to help build a more resilient goods movement sector now and in the future.”
Click here to read the full letter. 
Click here to read Newsom’s Executive Order. 
Click here to read WG’s federal efforts to relieve supply chain issues.
For more information, contact Matthew Allen at [email protected].