State transportation bill passes in California

California’s legislature passed a $54 billion plan to improve the state’s transportation infrastructure.

The bill cleared both the state’s senate and assembly chambers with ease, and Gov. Jerry Brown (D-California) has indicated he plans to sign the bill into law.

According to Investopedia, the bill will provide funding for state and local projects to fix roads, highways and bridges. The bill also provides financing for backlogged projects within some of the state’s transportation programs.

The bill is expected to generate around $5.2 billion each year through new taxes over the next decade, Investopedia adds. A gasoline tax increase, from 12 cents per gallon to 30 cents per gallon, will take place within California, which last upped its gas tax more than two decades ago.

The bill is likely a welcomed development by aggregate producers such as Granite Construction Inc., whose shares leapt more than 8 percent a day after the state legislature passed the bill.