The 2021 Integrated Funding Plan, as approved by the Transportation Agency Board, programmed $312,000 of federal DEMO funds to the State Route 156 / Castroville Boulevard Interchange project. In order for Caltrans to expend these funds to finish the right-of-way process, a Cooperative Agreement is required that outlines the duties of Caltrans and the Transportation Agency.

The State Route 156 Castroville Boulevard Interchange Project will replace the existing at-grade signalized intersection on State Route 156 West at Castroville Boulevard with a new grade separated interchange. The project will enhance safety for residents of Castroville, reduce traffic congestion for trucks traveling to and from the region's largest agricultural distribution center, improve access for visitors to the Monterey Peninsula and improve the quality of life for all communities along the corridor. The project includes installing 3 roundabouts at intersections with Castroville Boulevard and frontage roads to significantly improve the flow of traffic and enhance safety for commuters, tourists and truck drivers within the project area. Additionally, the project will fill a gap in the regional bicycle and pedestrian network with added bicycle lanes and sidewalks.

The project is currently in the final design and right of way phase, which is being implemented by Caltrans District 5. This phase of work is funded in the State Transportation Improvement Program.  The 2021 Integrated Funding Plan approved by the Transportation Agency Board included an additional $312,000 of federal High Priority Project (DEMO) funding to cover shortfalls in right of way and keep the project moving towards construction.  These federal funds were first earmarked to the Agency in the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (or SAFETEA-LU), which was a funding and authorization bill that governed United States federal surface transportation spending. It was signed into law by President George W. Bush on August 10, 2005, and included a funding dedication to the State Route 156 Widening project in the High Priority Projects program. The Agency has previously used these funds during project development on the environmental impact report, the traffic and revenue studies and tolling analysis, legal review and staff time. This $312,000 represents the balance of the remaining earmarked funds.

The draft Cooperative Agreement between Caltrans and TAMC, included as a web attachment, is necessary in order to transfer the federal funds from TAMC to Caltrans.  The Cooperative Agreement outlines the duties of Caltrans as the implementing agency and of TAMC as the funding agency, and stipulates that Caltrans is responsible for completing all work related to this phase of the project.  Successful implementation of this Cooperative Agreement will allow TAMC and Caltrans to stay on schedule with the project development process, including full design of the project and then proceed to construction.