Title
Federal Infrastructure Program Update
Description
This report provides the Transportation, Infrastructure and Planning Subcommittee an overview of the Federal Infrastructure Investments and Job Act of 2021, also known as the Bipartisan Infrastructure Law, and its potential impact on Phoenix and the region.
THIS ITEM IS FOR INFORMATION AND DISCUSSION.
Report
Summary
This report provides information on the potential financial impact the Bipartisan Infrastructure Law (BIL) may have on Phoenix, as well as the region and state. The BIL is a $1.2 trillion program over a five-year period, with $550 billion in new spending above previous funding levels. It is expected to fund considerable improvements in areas such as roadway safety, active transportation, public transit and rail, airports, clean water, water resources, broadband and cybersecurity, energy and environmental industries, electric vehicles and related charging equipment and needs, and other areas.
At this point, the City is awaiting more information from the various federal agencies involved in administering the BIL funding programs. The following provides some high-level information regarding the funding categories and projects that Phoenix plans to pursue.
Aviation
The BIL sets aside $15 billion over five years for airport infrastructure grants, distributed by formula. Under the formula, the City of Phoenix Aviation Department would be entitled to approximately $44 million a year, or a total of $222 million over five years. Aviation will seek funding for various airfield projects, such as a north/south taxiway on the west side of the airport. This would allow aircraft to move from one side of the airport more efficiently to another reducing airfield congestion and delay. Other projects might include the West Air Cargo Apron Reconstruction and the Terminal 3 Outer Apron reconstruction. These are areas where the aircraft are parked and/or unloaded, refueled, etc. Funding could also be used for apron construction and reconstruction projects at Phoenix Deer Valley and Phoenix Goodyear airports.
Additionally, BIL sets aside $5 billion over five years in competitive grants for airport terminal projects, along with other competitive grant opportunities for projects that promote sustainability. Some possible projects could include: A second north concourse at Terminal 3, a connector bridge between Terminals 3 and 4, infrastructure improvements at Terminal 4, upgrades to garage lighting, new solar installations, and replacement of fleet vehicles with electric vehicles.
An additional $5 billion is set aside for Federal Aviation Administration enhancements.
Cybersecurity
The BIL provides more than $1 billion in competitive grant funds to address cybersecurity, which Phoenix would use to better assess risks in every department, address any vulnerabilities, develop an enhanced Citywide cybersecurity framework and replace outdated equipment and software.
Digital Divide/Broadband
The BIL includes $65 billion for broadband infrastructure and initiatives.
Phoenix will seek to use these funds for Phoenix’s Digital Divide Project, which will provide Internet access to students in disadvantaged households served by the Phoenix Union High School District, Phoenix College and feeder Elementary school districts.
Phoenix will also seek these funds to install Wi-Fi in all City buildings to provide ubiquitous Wi-Fi coverage and Internet access for all residents and visitors. Libraries would also be able to significantly expand bandwidth by having fiber and other equipment installed that will allow speeds of at least 1 Gigabyte-per-second.
Public Transit
Phoenix Public Transit expects to receive about $300 million over five years in formula funding through the BIL.
Additionally, the BIL allocates $23 billion for FTA Capital Investment Grant funds over five years, a substantial increase over the previous five years. This means additional funds are available for high-capacity transit projects, which will provide several hundred millions of dollars to help fund light rail extensions to the Capitol and into West Phoenix, as well as Bus Rapid Transit along 35th Avenue. These funds must be applied for and competitively awarded.
Also, nearly $7 billion is set aside for competitive grants for low to no emissions buses and associated charging infrastructure. This would provide funding to enable Phoenix to purchase and evaluate a contingent of electric buses on multiple routes, during various weather conditions over time as part of the City’s climate action efforts.
Public Works
Public Works seeks to tap into the $7.5 billion available for electric vehicles and charging facilities to invest in electric vehicles along with the necessary charging infrastructure. The department would also seek funding to enhance facility infrastructure, building energy efficiency and workforce development. The department would also seek funds to enhance the recycling program and facilities.
Rio Reimagined
The BIL provides $17 billion in supplemental appropriations to the US Army Corps of Engineers (Corps) for resiliency projects, including work along rivers, water-related environmental infrastructure assistance, and inland waterway projects. The City will seek eligible funds and coordinate with the Corps for planning and construction of flood control and habitat restoration initiatives at the Rio Salado, Rio Salado Oeste and Tres Rios projects.
Stormwater Projects
The BIL includes $1 billion through FEMA for pre-disaster and hazard mitigation activities. The City will explore the use of these funds to address floodplain and storm drain projects.
Street Transportation
The BIL provides competitive funding to Streets, either:
- At the federal level for discretionary grants; or
- Allocated by formula to ADOT and/or suballocated to MAG for discretionary grants.
The projects and programs eligible under the BIL that Streets will pursue funding for include:
- Active Transportation improvements Canalscape, HAWK signals, protected bike lanes, bike/pedestrian bridges, pedestrian refuge medians, Micromobility/Bikeshare Programs, street lighting conversion (more than $40 billion available nationwide);
- Comprehensive Roadway Safety / Vision Zero Action Plan Development and Implementation, including improved signals, intersection improvements, pedestrian barriers ($12.5 billion available nationwide);
- Street Heat Mitigation and Resilience, including Cool Pavement, Cool Corridors, pedestrian pervious pavement (nearly $10 billion available nationwide); and
- Major infrastructure improvements, like bridge repair and rehabilitation, major street improvement projects, and freight corridors ($24 billion available nationwide).
Sustainability
In addition to funding for electric vehicles and charging facilities, along with the other sustainability-focused projects mentioned in each subject area, the bill includes competitive funding for:
- Local government energy efficiency and conservation projects;
- Household weatherization assistance;
- Commercial and residential energy audits;
- Updating to more efficient building energy codes; and
- Remediation of contaminated soil and groundwater.
Water
The Water Services Department has identified more than $4 billion in water infrastructure enhancements, such as new wells and reservoirs, rehabilitation of water treatment plants, water main replacements, facilities security, and more needed to reliably provide safe clean water to Phoenix residents and maintain drought resiliency. The BIL includes $35 billion to support drinking water and wastewater projects, and another $8.3 billion for water resource infrastructure. This includes $300 million for drought mitigation on the Colorado River, $250 million of which is for the river’s lower basin (AZ, CA, NV).
Concurrence/Previous Council Action
The Citizens Transportation Commission was provided this information at their meeting on Dec. 16, 2021.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the City Manager's Office.