Senate Passes Infrastructure Bill

On Aug. 10, 2021, the Senate passed the infrastructure bill, called the Infrastructure Investment and Jobs Act (IIJA) in a 69-30 vote. The bill will now wait for consideration in the House of Representatives. The total cost of the bill is $1.2 trillion with $548 billion in new spending. The bill reauthorizes the traditional surface transportation programs for five years, and provides additional funding for energy, water and broadband. 

The IIJA includes the committee-passed surface transportation reauthorization bills from the Commerce and Environment and Public Works Committees, the Drinking Water and Wastewater Infrastructure Act passed by the Senate, and the Energy Infrastructure Act approved by the Energy and Natural Resources Committee.  

The following is a breakdown of the new spending in the IIJA: 

Project Categories	New Expenditures
Roads, bridges, and major projects	$110 billion
Passenger and freight rail	$66 billion
Public transit	$39 billion
Airports	$25 billion
Ports and waterways	$17 billion
Electric vehicles	$15 billion
Road safety	$11 billion
Reconnecting communities	$1 billion
Subtotal, Transportation Infrastructure	$284 billion
Power infrastructure	$73 billion
Broadband	$65 billion
Water infrastructure (including lead pipes)	$55 billion
Resiliency and western water storage	$50 billion
Environmental remediation	$21 billion
Subtotal, Other Core Infrastructure	$264 billion
Total, Spending Provisions	$548 billion

Here is how the bill proposes to pay for the new spending

• $53 billion from certain states’ unused enhanced federal UI supplements
• $67 billion in unused savings from the COVID-19 employer retention tax credit that CBO projected would be utilized and were not, minus the impact of sunsetting the credit
• $106 billion in unused savings from COVID-19 paid & family leave tax credits that CBO projected would be utilized and were not
• $51 billion from delaying Medicare Part D rebate rule
• $21.4 billion in rescissions in unused funding from 2020 COVID bills
• $10.2 billion from sales of future spectrum auctions
• $67 billion from proceeds of the February 2021 c-band auction
• $53 billion in economic growth resulting from a 33 percent return on investment in these long-term infrastructure projects
• $28 billion from clarifying the application of information reporting requirements for cryptocurrency
• $21 billion from extending fees on GSEs
• $14.5 billion from reinstating certain Superfund fees
• $8.7 billion from extending the mandatory sequester
• $6.1 billion in sales from the Strategic Petroleum Reserve
• $6 billion from extending customs user fees
• $3.2 billion in savings from reducing Medicare spending on discarded medications from large, single-use drug vials
• $2.9 billion from extending available interest rate smoothing options for defined benefit pension plans

Roads, Bridges, Public Transit, Rail, Ports, Airports, Tribal and Federal Land, Drinking Water and Broadband funding toplines

Roads

IIJA authorizes $303.5 billion out of the Highway Trust Fund (HTF) over five years, and an additional $47.27 billion of new spending from supplemental sources. The core funding is a 34 percent increase over funding levels in the Fixing America’s Surface Transportation Act (FAST Act).  Ninety percent of the total funding from the HTF is allocated to the states by formula. The bill does not increase the gas tax.

Bridges

IIJA includes $12.5 billion over five years, $3.27 billion from the HTF and $9.24 billion supplemental money to fund a new Bridge Investment Program to address the backlog of bridge repairs throughout the country and $27.5 billion that will be allocated through a new bridge formula for States and Tribes to repair and rebuild bridges. 

Public Transit

The legislation includes $39.15 billion of new funding in addition to continuing the existing transit programs for five years as part of surface transportation reauthorization. In total, the new investments and reauthorization provide $89.9 billion in funding for public transit over the next five years. This includes, $33.5 billion for Urbanized Area Formula Grants, $18 billion for the State of Good Repair Grants Program to upgrade rail and bus systems, $4.58 billion for public transportation in rural area, 3.16 billion for bus and facility formula grants, $2.34 billion for low or zero-emission bus grants, and $1.94 billion for improving transit services for seniors and individuals with disabilities.  The states receiving the most transit money are New York ($9.8 billion), California ($9.4 billion), New Jersey ($4.1 billion), Illinois ($3.9 billion) and Texas ($3.2 billion).

Passenger and Freight Rail

IIJA allocates $66 billion for the U.S. rail network. Within the $66 billion, $22 billion would be provided as grants to Amtrak, $24 billion as federal-state partnership grants for Northeast Corridor modernization, $12 billion for partnership grants for intercity rail service, including high-speed rail, $5 billion for rail improvement and safety grants, and $3 billion for grade crossing safety improvements.

INFRA Funding

The National Significant Freight and Highway Projects (INFRA) received $8 billion over five years for competitive grants for highway, bridge, and multimodal freight projects. 

Ports and Waterways

Bill provides $17.3 billion for waterway and coastal infrastructure. $9.55 billion of the total is for the Army Corps of Engineers, including $5.15 billion for construction projects that have been authorized but have not received funding. It also includes $3.85 billion to Land Ports of Entry at the Northern and Southwest Border.

Airports

Bill includes $25 billion for airports. $15 billion is distributed by a formula over five years for grants to airports to use for their Airport Improvement Program (AIP). Money can be used for runways, taxiways, terminal development projects, noise reduction, multimodal, or airport-owned towers. Another discretionary $5 billion over five years for AIP for terminal development and other landside projects. IIJA also appropriates $5 billion for FAA-owned Air Traffic Control towers.   

Tribal, Rural, and Federal Lands

Bill authorizes $2 billion over five years for a new competitive grant program to improve and expand surface transportations in rural areas, $3.01 billion for the Tribal Transportation Program and creates an Office of Tribal Government Affairs within DOT, and allocates $2.19 billion for the Federal Lands Transportation Program.  

Drinking Water

The bill includes the $23.4 billion for the bipartisan Drinking Water and Wastewater Infrastructure Act. As part of the bill, it provides $14.7 billion for EPA’s Drinking Water State Revolving Fund program, $100 million for an EPA grant program to replace lead water lines, provides increased money for compliance assistance grants to public water systems, and extends the $50 million annual authorization for the Water Infrastructure Finance and Innovation Act (WIFIA) loan program.

Broadband

IIJA spends $65 billion to help expand high-speed internet in the United States.  The bill provides $42.5 billion for a Broadband Equity, Access, and Deployment Program within the Department of Commerce for underserved and high-cost areas, $2 billion to the U.S. Department of Agriculture to provide loans and grants to fund construction, acquisition, or improve facilities in rural America, $2 billion to the Tribal Broadband Connectivity Program, and $2.75 billion to establish two NTIA-administered grant programs for disadvantaged communities to improve skills and technology.

Electric Vehicle related provisions topline

The Infrastructure Investment and Jobs Act contains the following provisions pertaining to funding allocated towards zero-emission vehicles:

• $7.5 billion over five years for electric vehicle charging infrastructure. Creates a new competitive grant program to build out alternative fuel corridors along the National Highway System and electric vehicle charging infrastructure and alternative fueling infrastructure.  Bill also makes electric vehicle charging eligible for funding through existing Surface Transportation Block Grant Program (STBGP) and allows for the purchase of zero-emission vehicles in the Congestion Mitigation and Air Quality Improvement Program. 
• $6.4 billion over five years to states by formula through a new “Carbon Reduction Program” to invest in projects that support a reduction in transportation emissions.  Eligible projects include transportation electrification, EV charging, public transportation, bicycle and walking corridors, infrastructure to support congestions pricing, port electrification, and diesel engine retrofits.
• $7.5 billion towards electric school buses and ferries.
• $200 million towards the expansion of a DOE program aimed at research, development, and demonstration of electric vehicle battery recycling and second life applications for vehicle batteries.
• Directs the EIA to develop and implement measures within a year that focus on the expansion of data collection related to integrating electric vehicles with existing electricity grids.
• $3 billion for the Battery Material Process Grant Program.
• $3 billion for Battery Manufacturing and Processing Grants.
• $10 million for the DOE-sponsored Lithium-Ion Battery Recycling Prize.
• Establishes a minimum of four regional clean hydrogen hubs for the purpose of identifying clean hydrogen producers, users, and transport infrastructure in close proximity.
• Requires the DOE and EPA to establish an “initial standard” for the carbon intensity of clean hydrogen production.
• $8 billion over five years to support hydrogen fuel production and transportation.
• $1 billion towards R&D focused on reducing the cost of hydrogen produced from electrolysis.
• Expansion of the scope of the Advanced Technology Vehicle Manufacturing Program.
• Mandates a report from the DOE within a year of the bill’s passage on emerging alternative fuel vehicles and infrastructure.

Grid and Infrastructure and Resiliency provisions summary (Division D, Title I)

Subtitle A—Grid Infrastructure Resilience and Reliability

Sec. 40101. Preventing outages and enhancing the resilience of the electric grid.

• Directs the Secretary of Energy to establish a program under which the Department of Energy will make resiliency grants to eligible entities, including: electric grid operators; electricity storage operators; electricity generators; transmission owners or operators; distribution providers; fuel suppliers; or any other relevant entity as determined by the Secretary. The program is authorized at $5 billion over FY 2022 – 2026.

Sec. 40102. Hazard mitigation using disaster assistance.

• Amends the Robert T. Stafford Disaster Relief and Emergency Assistance Act (52 U.S.C. 5170c(f)(12)) to allow applicable funding and authorities to be used for the installation of fire-resistant wires and infrastructure and the undergrounding of wires.

Sec. 40103. Electric grid reliability and resilience research, development, and demonstration.

• Establishes the program, “Upgrading Our Electric Grid Reliability and Resiliency.” Authorizes $5 billion for financial assistance to utilities to demonstrate new approaches to grid resilience and $1 billion to improve resilience in rural areas.

Sec. 40104. Utility demand response.

• Directs electric utilities to promote the use of demand-response and demand flexibility practices by commercial, residential, and industrial consumers to reduce electricity consumption during periods of unusually high demand.

Sec. 40105. Siting of interstate electric transmission facilities.

• Requires the Department of Energy to consider the integration of renewable energy resources and lower costs to consumers when designating National Interest Electric Transmission Corridors. Adds a provision indicating that FERC may issue permits for construction or modification of certain interstate transmission facilities if a state commission denies an application seeking approval for the siting of such transmission facilities.

Sec. 40106. Transmission facilitation program.

• Authorizes $10 million per year through FY 2026 for an Energy Department program to support construction of nonfederal electric transmission lines and other facilities by entering into capacity contracts and offering loans.

Sec. 40107. Deployment of technologies to enhance grid flexibility.

• Extends Smart Grid investments to provide flexibility intended to quickly rebalance the electrical system, facilitate the aggregation or integration of distributed energy resources, provide energy storage to meet fluctuating, provide voltage support, integrate intermittent generation sources, increase the network’s operational transfer capacity, and anticipate/mitigate the impacts of weather or natural disasters on grid resilience. Authorizes $3 billion for the Smart Grid Investment Matching Grant Program.

Sec. 40108. State energy security plans.

• Assists states in creation of State Energy Security Plans. The Plans are intended to address all energy sources and potential hazards.

Sec. 40109. State energy program.

• Authorizes $500 million for the State Energy Program and requires State Energy Conservation Plans to support transmission and distribution planning activities.

Sec. 40110. Power marketing administration transmission borrowing authority.

• Authorizes $10 billion in borrowing authority to assist the construction, acquisition, and replacement of the Federal Columbia River Power system and to implement the authority of the Bonneville power Administration.

Sec. 40111. Study of codes and standards for use of energy storage systems across sectors.

• Directs the Secretary of Energy to conduct a study of types and commercial applications of codes and standards applied to: stationary energy storage systems; mobile energy storage systems; and energy storage systems that move between stationary and mobile applications.

Sec. 40112. Demonstration of electric vehicle battery second-life applications for grid services.

• Directs the Secretary of Energy to carry out a project to demonstrate second-life applications of electric vehicle batteries as aggregated energy storage installations to provide services to the electric grid.

Sec. 40113. Columbia Basin power management.

• Establishes an account with which to increase bilateral transfers of renewable electric generation between the Western United States and Canada. Authorizes $100 million for the rehabilitation of the John W. Keys III Pump Generating Plant. Authorizes $10 million to conduct a study considering the potential hydroelectric power value to the Pacific Northwest of increasing coordination among hydroelectric and water storage facilities on rivers located in the U.S. and Canada.

Subtitle B—Cybersecurity

Sec. 40121. Enhancing grid security through public-private partnerships.

• Requires a review and establishment of a program focused on advancing the physical security and cybersecurity of electric utilities, with priority provided to utilities with fewer resources. Also requires a report to Congress on improving the cybersecurity of electricity distribution systems.

Sec. 40122. Energy Cyber Sense program.

• Directs the Secretary of Energy to establish a voluntary Energy Cyber Sense program to test the cybersecurity of products and technologies intended for use in the energy sector, including in the bulk-power system.

Sec. 40123. Incentives for advanced cybersecurity technology investment.

• Amends the Federal Power Act to: (1) conduct a study to identify incentive-based rate treatments for the transmission and sale of electricity to encourage cybersecurity investment from public utilities and participation by public utilities in cybersecurity threat information sharing programs; and (2) establish within one year incentives discovered by the study.

Sec. 40124. Rural and municipal utility advanced cybersecurity grant and technical assistance program.

• Authorizes $250 million to establish a program to be known as the, “Rural and Municipal Utility Advanced Cybersecurity Grant and Technical Assistance Program.”

Sec. 40125. Enhanced grid security.

• Authorizes $250 million to create a program to develop advanced cybersecurity applications and technologies for the energy sector, $50 million for a 2^nd program to enhance and test the emergency response capabilities of the Department of Energy, and $50 million for a 3^rd program to increase the functional preservation of electric grid operations or natural gas and oil operations.

Sec. 40126. Cybersecurity plan.

• Allows the Secretary of Energy to require all funding recipients to submit, prior to issuance of funding, a cybersecurity plan that: (1) demonstrates the cybersecurity maturity of the recipient in the context of the project for which the funding is provided; and (2) establishes plans for cybersecurity maintenance and improvements throughout the life of the relevant project.

Sec. 40127. Savings provision.

• Denotes that nothing in this subtitle affects the authorities of the Secretary of Homeland Security or the Director of the Cybersecurity and Infrastructure Security Agency (CISA).

Supply Chain and Clean Energy Provisions summary (Title II)

Sec. 40201. Earth Mapping Resources Initiative.

• Authorizes $320 million to stablish the “Earth Mapping Resources Initiative” within the U.S. Geological Survey (Survey) with the purpose of accelerating efforts to carry out the Survey’s fundamental resources and mapping mission.

Sec. 40202. National Cooperative Geologic Mapping Program.

• Amends the National Geological Mapping Act of 1992 (43 U.S.C. 31c(d)) to include an abandoned mine land and mine waste geological mapping component. Authorizes appropriations pursuant to the national Geological Mapping Act of 1992 through 2031.

Sec. 40203. National Geological and Geophysical Data Preservation Program.

• Amends the energy Policy Act of 2005 to provide for preservation of samples to track geochemical signatures from critical mineral ore bodies for use in provenance tracking frameworks.

Sec. 40204. USGS energy and minerals research facility.

• Authorizes $167 million for the Director of the US Geological Survey to fund, through a cooperative agreement with an academic partner, the design, construction, and tenant build-out of a facility to support energy and minerals research.

Sec. 40205. Rare earth elements demonstration facility.

• Authorizes $140 million for the Secretary of Energy to fund, through an agreement with an academic partner, the design, construction, and build-out of a facility to demonstrate the commercial feasibility of a full-scale integrated rare earth element extraction and separation facility and refinery.

Sec. 40206. Critical minerals supply chains and reliability.

• Directs the Secretary of the Interior and the Secretary of Agriculture to complete Federal permitting and review processes with respect to critical mineral production on Federal land. Directs the establishment of timelines and schedules for the consideration of authorizations for critical mineral-related activities. Directs the Secretaries of Agriculture and Interior to submit a report to Congress identifying additional measures that would increase timeliness of permitting activities.

Sec. 40207. Battery processing and manufacturing.

• Authorizes $3 billion to establish the “Battery Material Processing Grant Program” within the Department of Energy. Directs the Secretary of Energy to award grants for: (1) demonstration projects for the processing of battery materials; (2) construction of commercial-scale battery material processing facilities; and (3) projects to retool, retrofit, or expand existing battery material processing facilities.
• Authorizes $10 million for the Secretary of Energy to carry out the Lithium-ion Battery Recycling Prize Competition.
• Authorizes $60 million for the Secretary of Energy to award multiyear grants for research, development, and demonstration projects to create innovative and practical approaches to increase the reuse and recycling of batteries.
• Authorizes $50 million for a program to award grants to States and units of local government to assist in the establishment or enhancement of State battery collection, recycling, and reprocessing programs.
• Authorizes $15 million to a grant program for retailers that sell covered batteries or covered battery-containing products to establish and implement a system for the collection of covered batteries and related products for reuse, recycling, or proper disposal.

Sec. 40208. Electric drive vehicle battery recycling and second-life applications program.

• Authorizes $200 million for electric drive vehicle battery recycling and second-life programs to be established by the Secretary of Energy.

Sec. 40209. Advanced energy manufacturing and recycling grant program.

• Authorizes $750 million for the Secretary of Energy to establish a grant program for “Advanced Energy Projects.”

Sec. 40210. Critical minerals mining and recycling research.

• Authorizes $100 million each year for FY 2021 – 2024 for the Secretary of Energy to issue awards to support basic research that will accelerate innovation to advance critical minerals mining, recycling and reclamation strategies and technologies for the purposes of making better use of domestic resources and eliminating national reliance on minerals that are subject to supply disruptions.

Sec. 40211. 21st Century Energy Workforce Advisory Board.

• Directs the Secretary of Energy to establish the “21^st Century Energy Workforce Advisory Board.” The Board is directed to develop a workforce strategy for the Department of Energy that (1) meets current and future industry and labor needs of the energy sector; (2) provides opportunities for students to become qualified for placement in energy sector jobs.

Fuels and Technology Infrastructure Investments provisions summary (Title III)

Subtitle A—Carbon Capture, Utilization, Storage, and Transportation

Infrastructure

Sec. 40301. Findings.

• Expresses Congressional findings regarding the importance of carbon removal and storage technologies in emission-reducing strategies.

Sec. 40302. Carbon utilization program.

• Establishes a grant program for eligible entities to procure and use commercial or industrial products that use or are derived from anthropogenic carbon dioxides and demonstrate significant net reductions in lifecycle greenhouse as emissions compared to incumbent technologies. Authorizes $41 million for FY22, $65.25 million for FY23, $66.56 million for FY24, $67.94 million for FY25, and $69.39 million for FY26.

Sec. 40303. Carbon capture technology program.

• Amends the energy Policy Act of 2005 by extending grant funding, authorized at $100 million, to programs for carbon capture technologies and front-end engineering and design programs for carbon dioxide transport infrastructure.

Sec. 40304. Carbon dioxide transportation infrastructure finance and innovation.

• Directs the Secretary of energy to establish and carry out a carbon dioxide transportation infrastructure finance and innovation program, under which the Secretary will provide federal credit instruments, grants, loans, or a combination of the three to eligible entities. For this program, authorizes $600 million annually for FY 2022 – 2023 followed by $300 million annually for FY 2024 – 2026.

Sec. 40305. Carbon storage validation and testing.

• Authorizes $2.5 billion to stablish a commercialization program under which the Secretary of Energy will provide funding for development of new or expanded commercial large-scale carbon sequestration projects and associated carbon dioxide transport infrastructure.

Sec. 40306. Secure geologic storage permitting.

• Authorizes $5 million annually through FY 2026 for the Environmental Protection Agency (EPA) Administrator to permit Class VI carbon dioxide sequestration wells.
• Authorizes $50 million annually through FY 2026 for the EPA Administrator to award grants to States that receive EPA approval for a State-run underground carbon dioxide injection control program.

Sec. 40307. Geologic carbon sequestration on the outer Continental Shelf.

• Amends the Outer Continental Shelf Lands Act (43 U.S.C. 1331) to provide for support to the injection of a carbon dioxide stream into sub-seabed geologic formations for the purpose of long-term carbon sequestration.

Sec. 40308. Carbon removal.

• Authorizes $3.5 billion to the Secretary of Energy to establish a funding program for eligible projects that contribute to the development of 4 regional direct air capture hubs. These hubs must: (1) facilitate the deployment of direct air capture projects; (2) have the capacity to capture and sequester, utilize, or sequester and utilize at least 1 million metric tons of carbon dioxide from the atmosphere annually; (3) demonstrate the capture, processing, delivery, and sequestration or end-use of captured carbon; and (4) be able to develop into a regional or interregional carbon network to facilitate sequestration or carbon utilization.

Subtitle B—Hydrogen Research and Development

Sec. 40311. Findings; purpose.

• Establishes the purpose of the subtitle to accelerate research, development, demonstration, and deployment of hydrogen from clean energy sources.

Sec. 40312. Definitions.

• Defines terms “clean hydrogen” and “hydrogen” to mean hydrogen produced in compliance with the greenhouse gas standard established under sect