LEGISLATIVE UPDATE
Arizona Economic Development Wins With Infrastructure Law I n November 2021, President Joe Biden signed H.R. 3684, the bipartisan Infrastructure Investment and Jobs Act. The compromise legislation, brokered in part by Arizona Senator Kyrsten Sinema, will provide a much-needed boost to the nation’s aging infrastructure. From ports, waterways and electricity to roads, transit and broadband, infrastructure improvements bolster the efficient movement of people and goods and act as a force multiplier for economic development activity. So, what’s in it for Arizona? Arizona Senator Mark Kelly released a list of state projects that will result from the passage of the infrastructure bill. These projects and the funding included in the bill will strengthen economic development with the following:
ROADS, BRIDGES AND MAJOR PROJECTS — $8.2 BILLION In addition to reauthorizing the Surface Transportation Reauthorization Act, the bill provides $8.2 billion for roads, bridges, and transit throughout Arizona. Arizona construction companies such as Skanska and Sundt will benefit greatly from projects funded by the bill through the Arizona Department of Transportation. Workforce transit in rural and urban areas of Arizona will receive the following allocations: • $499.3 million for Valley Metro in the Phoenix Area • $118 million for SunTran in Tucson • $21 million for Yuma County Area Transit • $20.5 million for Mountain Line in the Flagstaff area • $11.1 million for Yavapai Regional Transit in the Prescott area • $7.5 million for Central Arizona Regional 18 | January-February 2022
Carrie Kelly AAED
Transit in the Casa Grande area • $7.2 million for Lake Havasu City Transit • $6.5 million for Vista Transit in Sierra Vista The Capital Investment and National Infrastructure Project Assistance programs will provide grant and discretionary funding for projects such as the I-10 expansion, I-11, light rail extensions and streetcars.
WATER INFRASTRUCTURE — $9 BILLION Water infrastructure is critical to Arizona’s future. Utility providers such as SRP and Central Arizona Project will benefit as the state will receive hundreds of millions for backlogged repairs to aging dams, canals, aqueducts and pumping plants. The bill funds water settlements for our tribal partners, including the Gila River Indian Community, the Tohono O’odham Nation and the White Mountain Apache Tribe. While not Arizona-specific, $250 million will fund grants for desalination projects. Western states will receive $300 million to fund the Lower Basin Drought Contingency Plan, Lake Powell and the Upper Basin drought mitigation. Arizona will also receive $79.6 million annually to help public
wastewater systems finance significant infrastructure investments.
HIGH-SPEED INTERNET ACCESS — $58 BILLION Rural Arizona, in particular, needs better connectivity for economic development and health and safety. Through grants to states, companies such as Cox and Lumen will help with rural broadband deployment and “middle mile” deficiencies throughout Arizona.
ENVIRONMENTAL — $5 BILLION Arizona companies such as Terracon and Ninyo & Moore will see a boost since the bill funds the Hazardous Substance Superfund program. The bill also includes $1.5 billion for the Brownfields program to help governments reuse contaminated properties.
RURAL FORESTS — $460 MILLION The bill includes a $400 million program at Forest Service to provide financial assistance to sawmills and wood products facilities that support forest restoration operations, including those in Arizona, and $60 million for grants under the USDA program to promote the use of wood biomass energy and the use of wood in construction materials. These are only a few of the economic development funding opportunities for Arizona in the bipartisan infrastructure bill. Arizona is a leader in innovation and economic development, and this funding will allow our state to continue to lead the way and provide opportunities for citizens in every community. Carrie Kelly is the executive director of the Arizona Association for Economic Development.
