ACPA Concrete Pavement Progress - Quarter 1, 2022

Concrete Pavement Progress www.acpa.org A C P A N E W S 28 I IJA Concrete Pavement Provisions and the Bipar tisan Infrastructure Law Guidebook THIS JANUARY, THE WHITE HOUSE RELEASED the Guidebook to the Bipartisan Infrastructure Law, which serves as a roadmap to funding opportunities available through the Infrastructure Investment and Jobs Act (IIJA). Combined with the ACPA-produced IIJA: What’s In It for the Concrete Pavement Industry?, these documents serve as a digestible guide to the myriad of programs and funding sources that will implement the largest investment in physical infrastructure in a generation. The Transportation section of the Guidebook provides an overview of all the applicable grant programs in a standard, readable format alongside links to additional resources. Cross-referenced with What’s In It for the Concrete Pavement Industry, which provides a yearly look at the programs and grants relevant to the concrete pavement industry, members and Chapters can quickly understand how the trillion-dollar topline will translate to increased paving opportunities. The White House plans to release additional iterations in the coming months as relevant agencies continue to release implementation plans. IIJA: What’s In It for the Concrete Pavement Industry? Guidebook to the Bipartisan Infrastructure Law 4 Infrastructure Investment and Jobs Act Program FY 202 1 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 National Highway Freight Program (NHFP) 1.48 B 1.37 B 1.40 B 1.42 B 1.45 B 1.48 B FORMULA PROGRAM. The overarching aim of the NHFP is to improve the efficient movement of freight on the National Highway Freight Network. The IIJA provides $7.15 billion over 5 years for this. 7.6% cut from FY 2021 Status: On December 15, 2021, FHWA announced the apportionment of FY 2022 funding amongst the States (table of funding amounts for each state), but obligation of the full amount is contingent upon the enactment of the FY 2022 Transportation Appropriations bill. National Infrastructure Project Assistance (aka “mega projects”) 0 1 B 1 B 1 B 1 B 1 B DISCRETIONALRY PROGRAM. Section 21201 establishes a new competitive grant program that will support multi-modal, multijurisdictional projects of national or regional significance. Eligible projects include highway or bridge projects, freight intermodal or freight rail projects, railwayhighway grade separation or elimination projects, intercity passenger rail projects, and certain public transportation projects. Status: DOT is expected to propose selection criteria and application requirements, request public comment. Port Infrastructure Development Program 230 M 450 M 450 M 450 M 450 M 450 M DISCRETIONARY PROGRAM. The Port Infrastructure Development Program is administered by the U.S. Maritime Administration (MARAD). The program awards competitive grants for planning, operational and capital financing, and project management assistance to improve port capacity and operations. The IIJA provides $2.25 billion over 5 years for this program. 95% increase over FY 2021 Status: MARAD is expected to announce availability of funding for FY 2022. Federal Lands Transportation Program (FLTP) 375 M 422 M 430 M 439 M 448 M 456 M DISCRETIONARY PROGRAM. The aim of the FLTP is to Improve transportation facilities that provide access to, are adjacent to, or are located within Federal lands, including national parks, National Forests, BLM, US Army Corps of Engineers and Tribal lands. 12.5% increase over FY 2021 Status: FHWA is expected to announce the availability of funding for FY 2022 and invite applications. 3 Infrastructure Investment and Jobs Act Program FY 202 1 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Nationally Significant Freight & Highway Projects (INFRA grants) 1 B 1.64 B 1.64 B 1.64 B 1.54 B 1.54 B DISCRETIONARY PROGRAM. INFRA is a competitive grant program to support nationally and regionally significant freight and highway projects. The IIJA provides $8 billion for INFRA grants over 5 years. 64% increase over FY 2021 Status: Awaiting DOT’s issuance of a Notice of Funding Opportunity for FY 2022. Local and Regional Project Assistance (RAISE grants) 1 B 1.5 B 1.5 B 1.5 B 1.5 B 1.5 B DISCRETIONARY PROGRAM. Section 21202 provides $7.5 billion for the Local and Regional Project Assistance Program (RAISE grants, formerly known as BUILD and TIGER grants), a competitive grant program that funds surface transportation projects with significant local or regional impacts. Eligible projects include highway or bridge projects, passenger or freight rail projects, port infrastructure projects, and surface transportation components of airport projects, as well as transit and rail projects. 50% increase over FY 2021 Status: Awaiting DOT’s issuance of a Notice of Funding Opportunity for FY 2022. Promoting Resilient Operations for Transformative, Efficient, and Cost-saving Transportation (PROTECT) program 0 1.40 B 1.43 B 1.46 B 1.49 B 1.52 B FORMUAL PROGRAM. (See also discretionary PROTECT program.) Section 11405 establishes a formula grant program and a competitive grant program to help States reduce the vulnerability of transportation assets to natural disasters. Total funding is $8.7 billion over 5 years, with $7.3 billion distributed by formula and $1.4 billion distributed via competitive grants. Status: FHWA is expected to propose project eligibility criteria, request public comment. On December 15, 2021, FHWA announced the apportionment of FY 2022 funding amongst the States (table of funding amounts for each state), but obligation of the full amount is contingent upon the enactment of the FY 2022 Transportation Appropriations bill. 2 Infrastructure Investment and Jobs Act Program FY 202 1 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 National Highway Performance Program (NHPP) 24 B 28 B 29 B 29.6 B 30 B 30.8 B FORMULA PROGRAM. The NHPP is the federal-aid highway program that supports improvements in the condition and performance of the National Highway System. Eligible activities include construction, reconstruction, restoration, resurfacing, and preservation of NHS segments, bridges, or tunnels. The IIJA authorizes a total of $148 billion over 5 years for the NHPP and expands the types of eligible projects to include transportation resilience and extreme weather mitigation projects. 17.3% increase over FY 2021 Status: On December 15, 2021, FHWA announced the apportionment of FY 2022 funding amongst the States (table of funding amounts for each state), but obligation of the full amount is contingent upon the enactment of the FY 2022 Transportation Appropriations bill. Surface Transportation Block Grant Program (STBG) 11.9 B 12.5 B 12.7 B 12.9 B 13.2 B 13.5 B FORMULA PROGRAM. The STBG program is the federal-aid highway program with the broadest eligibility criteria. Funds can be used on any federal-aid highway, on bridge projects on any public road, and for other purposes. The IIJA authorizes a total of $64 billion over 5 years. 4.4% increase over FY 2021 Status: On December 15, 2021, FHWA announced the apportionment of FY 2022 funding amongst the States (table of funding amounts for each state), but obligation of the full amount is contingent upon the enactment of the FY 2022 Transportation Appropriations bill. Airport Improvement Program (AIP) 3 B 3 B + 3 B 3 B +3 B 3 B + 3 B 3 B + 3 B 3 B + 3 B FORMULA PROGRAM. The AIP program supports the development of public-use airports. It is funded primarily through the Airport and Airway Trust Fund but Congress will also periodically, provide supplemental funding. The IIJA appropriates $15 billion in supplemental funding over 5 years for the AIP program. This funding is in addition to the approximately $3 billion per year that is distributed through the Airport and Airway Trust Fund. 100% increase over FY 2021 Status: FAA has notified Congress – but has not yet made a public announcement – about the amounts that will be distributed to public use airports in FY 2022. 1 Introduction On Monday December 15th, President Biden signed into law the Infrastructure Investment and Jobs Act (IIJA), officially launching what has been described as a “transformational moment” in United States transportation history. This 2,700-page, $1.2 trillion infrastructure legislation reauthorizes federal transportation funding for the next five years and provides $550 billion in new infrastructure funding. It involves multiple departments and agencies of the federal government beyond just FHWA and FAA. Of particular significance to the concrete pavement industry, the legislation authorizes $304 billion to the Highway Trust Fund (HTF) for roads and bridges over five years with approximately $100 billion in new spending for roadways specifically. Funding for the ‘formula program’ most associated with highway paving increases by roughly 20% above current levels for 2022, with an additional 2% yearly growth over the 5-year duration of the bill. On the airfield funding side, we expect more aggressive growth based on a $3 billion increase for the Airfield Improvement Program, on top of the $3.35 billion in annual appropriations. Not all of this money is for pavement, but these funds will be used to address the towering backlog of airfield work. In addition to the reauthorization and increased funding for transportation projects, the ACPAconceived $12 million per year Accelerated Implementation and Deployment of Pavement Technologies (AID-PT) program is included in the bill. This money is what funds FHWA’s cooperative agreement with the CP Tech Center as well as the vast majority of federally funded concrete pavement implementation and deployment initiatives across the country. On the following pages you will see a table identifying each element of the new law that is directly related to paving, a brief description of the program, and the funding provided over the next five years. Most of the programs that have provided business opportunities for the concrete paving industry in recent years have been provided significantly more funding. Additionally, new programs have been created. When those programs become operational, a larger mix of well-funded programs will present new opportunities for our industry. This mix of programs has the potential to stretch our markets beyond highways and airports to seaports, rural areas, and roadways in the Appalachian region as well as national parks and other federal lands. In the coming weeks and months, the U.S. Department of Transportation will be implementing this new law. This implementation will take many forms, including eligibility requirements, guidance, and new regulations. ACPA will be monitoring each new development and will work closely with our federal agency partners as well as other key stakeholders to ensure that our members can take full advantage of the myriad of opportunities IIJA offers for concrete paving. The Infrastructure Investment and Jobs Act What’s In It for the Concrete Pavement Industry?

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