Category: Infrastructure

A White House “Accelerating Infrastructure Summit” on Oct. 13 showcased actions by the administration to hasten infrastructure project construction by improving coordination with mayors and governors. (Summit video and White House Action Plan)

Accelerating IIJA Investment

• Mitch Landrieu, the White House’s infrastructure coordinator (photo above) stated, “With over 90% of Bipartisan Infrastructure Law funding being delivered by non-federal agencies, our state, tribal, regional, territorial, local and industry partners must also find ways to accelerate the delivery of infrastructure.” (ABC News, Oct. 13)
• The plan—funded under the $1.2 trillion bipartisan Infrastructure Investment and Jobs Act (IIJA) enacted last November and supplemented by the Inflation Reduction Act in August—is the most significant investment in infrastructure since the interstate highway initiative during the Eisenhower administration. The Roundtable strongly backed the IIJA as it moved through the legislative process. (Roundtable Weekly, Nov. 12, 2021)

• The IIJA broadens access to federal funding programs by targeting resources toward communities. The administration launched a webpage on Grants.gov and a Technical Assistance Guide to help communities with infrastructure project resources, from grant writing to funding eligibility requirements. A web-based interactive map also shows where IIJA funds have been disbursed in communities across the nation.

On Time, On Task, and On Budget

• The White House acceleration plan details numerous federal policy initiatives and complements the administration’s Permitting Action Plan, released in May. (Transportation Today, Oct. 17)

The Roundtable continues to support federal transportation infrastructure investments to spur economic growth, support local communities, and enhance America’s competitiveness. (Roundtable Weekly, May 20 and Roundtable’s 2022 Policy Agenda)

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The Biden administration announced this week the restoration of strict environmental reviews for major infrastructure projects. Additionally, the U.S. Office of Management and Budget (OMB) issued new guidance to help federal agencies implement the “Build America, Buy America” sourcing provisions passed as part of the Infrastructure Investment and Jobs Act (IIJA) last November. (PoliticoPro and Council on Environmental Quality, April 19)

Project Permitting & Climate Change

• The environmental guidelines will revive how federal agencies authorize and issue permits for infrastructure construction projects. The regulations reaffirm that Federal agencies must evaluate all environmental impacts – including those associated with climate change – during reviews of proposed projects like bridges, mass transit and energy generation. (Wall Street Journal, April 19)
• A second, broader proposal with additional changes is expected later this year. It is uncertain how the regulatory review guidance will affect projects authorized in the Roundtable-supported $1 trillion IIJA. (White House Council on Environmental Quality, April 19, 2022 and Roundtable Weekly, Nov. 12, 2021)
• The restored regulations, which take effect on May 20, will also allow federal agencies to adopt environmental review standards that are more stringent than what is outlined in the National Environmental Policy Act (NEPA). The NEPA environmental review rules were in effect since 1970 before the Trump administration scaled them back in 2020. (Reuters, July 15, 2020)
• Under Trump’s revisions, full environmental-impact statements were required to be completed within two years, while less comprehensive reviews had a one-year deadline. (Wall Street Journal, July 15, 2020)

Infrastructure Materials Sourced in America

• The OMB’s preliminary guidance issued this week instructs federal agencies how to implement new “Buy America” requirements applicable to federally funded infrastructure projects. (Associated Press, April 18)
• The IIJA requirement provision mandates that all federal agencies must ensure that a “Buy America” requirement applies to all infrastructure projects that receive federal financial assistance, whether or not funded through IIJA. (National Law Review Q&A, April 20)
• The new requirements, which take effect on May 14, require material purchased for infrastructure projects be produced in the U.S, with waivers included in case there are either not enough U.S. producers or domestic material costs prove excessive. (White House blog, April 20)

The Biden administration’s effort to increase domestic manufacturing and ease supply chain pressures from overseas sourcing comes as inflation has reached a 40-year high ahead of the 2022 midterm elections. (U.S. Bureau of Labor Statistics, April 12)

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The White House on Jan. 31 released its guidebook to funding for the Infrastructure Investment and Jobs Act, the $1.2 trillion bipartisan measure signed into law last year. (The Hill, Jan. 31 and (Roundtable Weekly, Jan. 21) 

Roadmap to Infrastructure Funding 

• The Bipartisan Infrastructure Law Guidebook is a key tool for states and local governments to apply for federal grants, loans, and public-private partnership resources under more than 375 infrastructure investment programs.
• Mitch Landrieu, White House Senior Advisor and Infrastructure Implementation Coordinator, stated, “Our primary goal is to empower people across the country with information, so they know what to apply for, who to contact, and how to get ready to rebuild.” (White House news release, Jan. 31)
• The White House last week also outlined steps for cities and mayors to prepare for funding applications. Landrieu on Jan. 4 sent a request to all of the nation’s governors, urging them to appoint their own infrastructure implementation coordinators to work on the smooth disbursement of funds over the next several years. 

Support for Infrastructure Important to CRE 

The Guidebook consolidates information on the funding available from myriad federal agencies to build and repair infrastructure assets that are positive for local communities and commercial real estate, including: 

• Bridges

  A total of $40 billion is dedicated for bridges, including $12.5 billion for a new DOT grant program to replace or rehabilitate some of the nation’s most economically significant bridges. (Roads, Bridges and Major Projects section.)

• Transit-Oriented Development

  The infrastructure law invests $91.2 billion to repair and modernize mass transit. (Public Transportation section). The public-private TIFIA loan program receives $1.25 billion in funding with expanded authorities to assist airport and transit-oriented development projects. (Major Projects section).

• Passenger Rail

  $36 billion is available for federal-state partnership grants to repair existing rail routes or establish new intercity service. Amtrak’s Northeast Corridor benefits from a $6 billion grant program.  (Passenger Rail section)

• EV Charging

  $7.5 billion in grants is available to help build out a national network of 500,000 electric vehicle chargers – particularly along highway corridors to facilitate long-distance travel and within disadvantaged communities. (Electric Vehicles section)

• Clean Energy

  The infrastructure law will deploy more than $20 billion in federal financing tools to deliver clean power. The U.S. Department of Energy in January launched the “Building a Better Grid” Initiative to catalyze construction of electric transmission lines that can deliver solar, wind, and other renewable energy over long distances. (Clean Energy and Power section and DOE website)

• Superfund Clean-up Program

  The law provides $3.5 billion for the Environmental Protection Agency’s Superfund program to clean up some of the nation’s most contaminated sites. (EPA news release, Dec. 20, 2021)

• Underserved Communities
  A set of funding sources aim to make transformative investments in disadvantaged and low-income communities. (Supporting Underserved Communities section) For example, $1 billion is devoted to a “Reconnecting Communities” competitive grant program that can remove or retrofit highways built decades ago that isolated low-income neighborhoods. 

Future versions of the guidebook will update key timelines for program implementation, best practices, case studies, and links to resources developed by the White House. 

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The disbursement of $1.2 trillion in federal infrastructure investment approved by Washington policymakers two months ago is moving forward – in careful coordination with federal agencies, state and local partners – according to recent announcements by President Biden and White House Infrastructure Implementation Coordinator Mitch Landrieu, above. (News conference transcript and video, Jan. 18) 

Improving Infrastructure Assets 

• The bipartisan infrastructure law enacted in November includes measures to improve infrastructure assets via public-private partnership efforts, streamline the federal permitting process, and improve key federal energy data that supports Environmental Protection Agency building labels. (Roundtable Weekly, Nov. 12, 2021 and White House Executive Order on Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability, Dec. 8, 2021)
• Real Estate Roundtable Chair John Fish (Chairman and CEO, Suffolk) commended the bipartisan effort and called the legislative package “an historic opportunity to position our nation for sustainable growth and greater economic prosperity.” (Roundtable Statement, Nov. 8, 2021)
• Former New Orleans Mayor Mitch Landrieu now leads a task force of federal agency officials charged with implementing the infrastructure law through a combination of direct federal grants and competitive bidding. (White House Infrastructure Implementation Fact Sheet, Jan. 14)

• A White House fact released today lists 25 available or soon-to-be-available sources of funding that local governments – particularly cities – can compete or apply for directly.
• The White House also plans to release a comprehensive guidebook of all available funding from the bipartisan infrastructure law in the coming weeks.

• Landrieu on Jan. 4 sent a request to all the nation’s governors, urging them to appoint their own infrastructure implementation coordinators to work on the smooth disbursement of funds over the next several years, in coordination with both federal agencies and state and local leaders.
• Landrieu noted during his Jan. 18 White House news conference that the $1.2 trillion disbursement involves 14 federal agencies. He also said federal talks are also underway with Amtrak and that “the Northeastern Corridor … needs immediate attention.” (News conference transcript and video)

Specific Programs Impacting CRE

President Biden on Jan. 14 discussed a variety of recently announced infrastructure projects and funding commitments with Infrastructure “Czar” Landrieu. (White House Remarks and Infrastructure Implementation Fact Sheet, Jan. 14 and Competitive Infrastructure Funding Opportunities for Local Governments Fact Sheet, Jan. 21).

• The following five programs are among the many agency-specific infrastructure projects enabled by the bipartisan infrastructure law that are positive for local communities and commercial real estate:

1. The U.S. Department of Energy (DOE) launched the “Building a Better Grid” Initiative, which will catalyze the nationwide development of new and upgraded high-capacity electric transmission lines by deploying more than $20 billion in federal financing tools. (DOE news release, Jan. 12)
2. The U.S. Department of Transportation (DOT) and Federal Highway Administration announced $27 billion in funding to replace, repair, and rehabilitate thousands of bridges across the country. (Wall Street Journal and ABC News, Jan. 14)
3. DOT Secretary Pete Buttigieg and DOE Secretary Jennifer Granholm formed a Joint Office of Energy & Transportation focused on building a national network of 500,000 electric vehicle chargers. (Department of Energy news release, Dec. 14, 2021 and White House EV Charging Action Plan, Dec. 13, 2021)
4. The Federal Aviation Administration (FAA) announced $3 billion for 3,075 airports across the country to upgrade critical infrastructure.
5. The Environmental Protection Agency (EPA) announced a $1 billion investment to initiate cleanup and clear the backlog of 49 previously unfunded Superfund sites and accelerate cleanup at dozens of other sites across the country. (EPA news release, Dec. 20, 2021)

• Additionally, Labor Secretary Marty Walsh discussed in an interview today with The Hill  how he is focused on implementing the infrastructure law and launching a new program called the Good Jobs Initiative. Walsh emphasized the need for “workers at all different levels of construction” and stated, “I think we’re going to need additional housing in our country in the next five to 10 years, we’re going to have lots more development going on in our country.” (The Hill, Jan. 21)

The various infrastructure improvement programs and their impact on the economy, commercial real estate and local communities will be a focus of discussion during The Roundtable’s Jan. 25-26 Virtual State of the Industry Meeting and its policy advisory committee meetings.

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The Real Estate Roundtable on Nov. 8 congratulated congressional policymakers and the Biden administration for their bipartisan efforts in passing the trillion-dollar infrastructure bill late last week. President Joe Biden plans to sign the legislation on Monday, Nov. 15 as Congress returns from recess to consider a separate $1.85 trillion social and climate package. (JD Supra and White House Statement, Nov. 10) 

Roundtable Reaction 

• Real Estate Roundtable Chair John Fish (Chairman and CEO, Suffolk) said, “The real estate industry has long been committed to an ambitious vision for infrastructure. The passage of the bipartisan infrastructure bill by Congress is an historic opportunity to position our nation for sustainable growth and greater economic prosperity. Thank you to Members of Congress for coming together and supporting this critical legislation. I urge President Biden to sign the legislation as soon as possible so we can get shovels in the ground and start building a brighter future.” (Roundtable Statement, Nov. 8)
• The infrastructure legislation is a positive catalyst that should dramatically improve the nation’s infrastructure, spur economic growth and advance national efforts to combat the climate crisis. The bill includes measures to expand the use of public-private partnerships to reach infrastructure goals, streamline the federal permitting process and improve key federal energy data that support EPA building labels.
• The bipartisan bill also includes $30 billion for improvements along Amtrak’s Northeast Corridor, including the long-delayed “Gateway” tunnel project between New York and New Jersey, according to a Nov. 10 Bloomberg interview with Amtrak CEO Bill Flynn. (Bloomberg article)
• Roundtable President and CEO Jeffrey DeBoer said, “This infrastructure bill will repair and upgrade the nation’s roads, bridges, mass transit, high-speed rail, broadband, power grid, water pipes, electric vehicle charging stations, and other critical infrastructure. We applaud this investment in our nation’s future and look forward to the jobs, communities and progress it will support.” (MultiHousing News, Nov. 10) 

Build Back Better Act & CRE 

• House Speaker Nancy Pelosi (D-CA) this week said during the U.N. climate change conference that next on her agenda is passage of the Build Back Better Act (H.R. 5376). “That is our plan, to pass the [Build Back Better] bill the week of Nov. 15, as is indicated in our statements that were made at the time of passing the infrastructure bill.” (Pelosi Remarks)
• President Biden in late Oct. scaled back his sprawling social and climate package from $3.5 trillion to $1.85 trillion to resolve intraparty differences in the Democratic congressional caucus. Further changes made last week to the tax and spending measure would increase the cap on the deductibility of state and local taxes (SALT) from $10,000 to $80,000.  Another set of changes would expand and modify the low income housing tax credit (LIHTC) to promote greater construction and rehabilitation of affordable housing.  (Roundtable Weekly, Nov. 5 and House Rules Committee section-by-section summary of the bill.)
• The revised legislation reflects continued progress on a number of tax and climate issues of importance to The Real Estate Roundtable. (Summaries in Roundtable Weekly, Oct. 29)
• The Roundtable has produced a comparison of the real estate-related tax provisions (image above) in the most recent version of the legislation – compared to the bill passed by the House Ways and Means Committee in September, and the Biden Budget .
• Additionally, an Oct. 21 Marcus & Millichap webcast on tax policy featured The Roundtable’s Jeffrey DeBoer. (Registration required before streaming the webcast)
• The revised bill will be considered under budget reconciliation rules, which require a majority vote for approval in the narrowly divided House and the 50-50 Senate. 

Challenges Ahead 

• Five moderate House Democrats have raised concerns regarding the deficit impact of the Build Back Better Act (BBB), threatening its passage even before it goes to the Senate.  They have also urged that the bill be “pre-conferenced” with the Senate. (Letter to Speaker Pelosi Nov. 2; Politico, Nov. 8) 
• The House moderates committed to vote for the BBB no later than the week of Nov. 15 –  if Congressional Budget Office (CBO) cost estimates are in line with the Administration’s estimates (CNBC, Nov. 5)
• CBO stated on Nov. 9 that it plans to unveil estimates for parts of the BBB as the agency completes its reviews. A CBO score is not a technical requirement for a House vote – but Senate rules do require the agency’s cost estimate. (CBO statement and Politico, Nov. 11)
• If the BBB package passes the House, substantive changes are possible in the Senate. (Wall Street Journal, Nov. 9)
• Axios reported on Nov. 10 that Sen. Joe Manchin (D-WV) may withhold his support of the costly BBB legislation until next year due to worries about rising inflation rates.

• Roundtable President and CEO Jeffrey DeBoer commented on the evolving infrastructure legislative developments in an interview with American City Business Journals. “We’re continuing to monitor developments and ensure that nothing comes up without proper vetting or full understanding of how it would impact CRE,” DeBoer said. 

Policymakers return to Washington on Monday for one week before the Thanksgiving break. On Dec. 3, funding for the government will run out unless an appropriations bill or “Continuing Resolution” is passed to avoid a partial shutdown. Additionally, the Bipartisan Policy Center estimates the current debt ceiling will be breached sometime between mid-December and mid-February. 

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