Infrastructure Investment and Jobs Act White Paper - Power

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INFR ASTRUC TURE INVESTMENT AND JOBS AC T

POWER



Table of Contents Billions Allocated

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Investing in the Future

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Energy Infrastructure

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Selected Energy Infrastructure Projects and Programs

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Zero-Emission Vehicles Supply Chains for Clean Energy Technologies Carbon Capture and Hydrogen Energy Efficiency and Building Infrastructure

Significant Provisions

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How CHA Can Help

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Our Utility Infrastructure Services

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BILLIONS ALLOCATED to Target Clean Energy and the Nation’s Aging Utility Infrastructure

What is the Infrastructure Investment and Jobs Act? The Infrastructure Investment and Jobs Act (IIJA), enacted in November 2021, provides more than $1.0 trillion in funding to improve essential infrastructure in the transportation, power and grid, aviation, environmental remediation, and water sectors. Funding will be provided through formula grants, loans, and competitive grant opportunities and includes $550 billion of new federal spending. State and local governments, in particular, have a once-in-a-generation opportunity to restore their foundations and energize their communities by using the funds to build, repair and rehabilitate infrastructure that has been deteriorating for decades. The IIJA is expected to create hundreds of thousands of jobs over the next five years and bring much-needed investment in the country’s core aging infrastructure. This funding can be transformative for the American economy and embed sustainability in infrastructure projects. These investments will drive demand for clean energy technologies while supporting domestic manufacturing. At the same time, the funding is intended to increase productivity and efficiency and address long-standing social inequity issues for some of our most vulnerable communities. INFR A S TRUC TURE INVES TMENT AND JOBS AC T | P OW ER

Recent polls conclude that Americans favor significant investment into the nation’s aging infrastructure.


Investing in the Future Many of CHA’s clients, including utilities, states, school districts and municipalities will be able to participate in programs funded by the IIJA to build, improve, and expand their utility infrastructure and clean energy capabilities. From natural gas delivery and electricity to planning and evaluation for new electric vehicle infrastructure, our team of skilled professionals across the United States, combined with our full range of services and extensive portfolio, allows us to deliver integrated solutions to a multitude of challenging projects. We base our approach on a thorough understanding of your structure, needs, and regulatory environment. CHA will help define an energy vision, identify the feasibility and costeffectiveness of system upgrades, and create design packages that meet your standards and

INFR A S TRUC TURE INVES TMENT AND JOBS AC T | P OW ER

customers’ needs. Together, we will enhance the reliability of existing transmission and distribution networks, evaluate, and retrofit facilities for smart consumption and expand usage of alternative and clean energy.


Energy Infrastructure The IIJA specifically funds several major program areas:

$65 Billion

$47 Billion

Power and Grid

Resiliency

$65 billion for power and the grid, including the Energy Infrastructure Act to fund:

$47 billion dedicated to infrastructure resiliency, including:

• Grid reliability programs

• Funding for critical infrastructure cybersecurity needs

• Supply chain development • Security for clean energy technology, carbon capture, hydrogen technologies, and energy efficiency

$7.5 Billion

• Flood and wildfire mitigation • Coastal resiliency • Weatherization

$7.5 Billion

Clean School Buses & Ferries

Electric Vehicle Charging

$7.5 billion for clean public transportation, including:

$7.5 billion to boost availability of electric vehicle charging stations, including:

• $5 billion to replace existing school buses with clean, zero-emission buses

• Alternative fuel corridors

• Clean transportation funding prioritized for low-income, rural and tribal schools • $2.5 billion to acquire low carbon ferries and assist states operating rural ferry service

• A national electric vehicle charging network to reduce “range anxiety,” offering convenient charging locations • Enabling long-distance travel • Focus on rural communities

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Selected Energy Infrastructure Projects and Programs The IIJA also includes funding for grid infrastructure, reliability and resilience. Upgrading the Electric Grid for Reliability and Resiliency: Federal grants for eligible projects and programs that demonstrate innovative approaches to electric transmission, energy storage, and electric distribution to harden and improve reliability and resilience. Energy Improvements for Rural and Remote Areas: $1 billion in financial assistance to enhance America’s reliability, resilience, safety, and access of electric power in rural and remote municipalities and unincorporated areas with less than 10,000 people. Environmental protection provisions are included.

INFR A S TRUC TURE INVES TMENT AND JOBS AC T | P OW ER

Grid Infrastructure Resilience and Reliability Grant Program: Addresses extreme weather and other natural disasters by providing competitive grants for activities that make power grids more resilient and reliable. Transmission Facilitation Program: Designed to facilitate the construction of electric transmission lines and appurtenant facilities. Strengthening Mobility and Revolutionizing Transportation (SMART) Grants: Funding of demonstration projects that advance smart community technologies.


Zero-Emission Vehicles In addition to the funding for clean school buses and ferries, there is funding dedicated to electric vehicle charging infrastructure.

Charging and Fueling Infrastructure Grants and the National Electric Vehicle Formula Program through Federal grant programs: • $7.5 billion in funding for the nationwide deployment of electric vehicle charging and other alternative fuel supply infrastructure. • $2.5 billion is made available through competitive grants to eligible entities to install publicly accessible electric vehicle charging, hydrogen fueling, propane fueling, and natural gas fueling infrastructure along designated alternative fuel corridors. • $5 billion for states to deploy electric vehicle charging infrastructure through the National Formula Program and establish an interconnected network for data collection, access, and reliability.

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Supply Chains for Clean Energy Technologies The IIJA provides funding for innovation and development of clean energy technologies. Battery Manufacturing and Recycling Grants: Provides grants for demonstration projects to advance innovative battery manufacturing. Battery Processing Grants: Allows eligible firms to conduct demonstration programs to process battery materials, construct new U.S.based commercial battery material processing facilities, and retool, retrofit or expand existing battery material processing facilities. Battery Recycling Research, Development, and Demonstration Grants: Grants for research, development, and demonstration projects to create new methods to increase the reuse and recycling of batteries. Electric Drive Vehicle Battery Recycling and Second-Life Applications Program: Research, development, and demonstration of second-life applications for electric vehicle batteries and develop technologies and processes for final recycling and disposal.

INFR A S TRUC TURE INVES TMENT AND JOBS AC T | P OW ER

Carbon Capture and Hydrogen The IIJA provides funding directed to carbon capture and hydrogen programs. Carbon Capture Large-Scale Pilot and Demonstration Project: Funding to demonstrate carbon capture with coal and natural gas generation and begin demonstration projects by 2025. Regional Direct Air Capture Hubs: Funds for regional direct air capture hubs that have the capacity to capture, sequester and utilize at least one million metric tons of carbon dioxide from the atmosphere annually. Regional Clean Hydrogen Hubs: Federal grant program to assist with developing a minimum of four geographically dispersed hydrogen hubs. Carbon Utilization Grant Program: Grants for states, local governments, or public utilities to acquire and use commercial or industrial products demonstrating net reductions in lifecycle greenhouse gas emissions. Clean Hydrogen Electrolysis Program: A demonstration program to improve efficiency, reduce costs, increase durability, and commercialize clean hydrogen electrolyzers. Clean Hydrogen Manufacturing and Recycling: Two programs authorized to award grants, contracts, and cooperative agreements for research, development, and demonstration projects to advance clean hydrogen technology.


Energy Efficiency and Building Infrastructure The IIJA provides funding and loans directed at energy users and those responsible for building infrastructure.

Energy Efficiency Revolving Loan Fund Capitalization Grant Program: State grants to establish revolving, low-interest loans to provide for commercial energy audits. Cost-Effective Codes Implementation for Efficiency and Resilience: Grants to enable cost-effective implementation of building energy codes. Energy Auditor Training Grant Program: Competitive grant funding for eligible states to access job training initiatives for individuals to conduct energy audits and surveys of commercial and residential facilities.

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Significant Provisions The IIJA covers many areas within energy infrastructure, including the largest investment in clean energy programs and grid in American history. Funding will be provided to support the development and deployment of clean energy technologies to achieve a zero-emission economy. One of the significant provisions pertains to transmission siting authority. If the Department of Energy determines a proposed transmission line is within a National Interstate Electric Transmission Corridor, the Federal Energy Regulatory Commission could overrule a state’s local determination. The IIJA includes “Build America, Buy America” requirements for federally supported projects, including iron, steel, manufactured goods and products, and many construction materials.

INFR A S TRUC TURE INVES TMENT AND JOBS AC T | P OW ER

It also has strong union protection measures, including requirements for the use of union jobs, prevailing wage rates, and workforce development.


How CHA Can Help Like the IIJA, CHA covers many areas in energy infrastructure, and our expert engineers can deliver a full complement of power, utility infrastructure, industrial/manufacturing, environmental, and asset management services under one roof.

For more information, please contact: Greg Corso, PE Power Sector President GCorso@chacompanies.com

James Fuller, PE Utility Infrastructure Business Line Director JFuller@chacompanies.com

Our power services are tied by a common thread: an innovative approach to problem solving. We embrace new, renewable technologies and strive to enhance the reliability of existing transmission and distribution networks, evaluate and retrofit facilities for smart consumption, expand alternative energy options, address complex environmental issues, and analyze data to produce focused, actionable information. With decades of experience, we will bring your IIJA-funded projects and programs to successful completion with our inspired talent, forward-leaning technology, and innovative approach to project delivery. CHA is your trusted advisor and partner committed to responsibly improving the world we live in.

INFR A S TRUC TURE INVES TMENT AND JOBS AC T | P OW ER

Greg Germain, PE Utility National Market Director GGermain@chacompanies.com

Dwayne Basler, PE Utility Market Segment Leader DBasler@chacompanies.com

Frank Peverly, PMP Utility Market Segment Leader FPeverly@chacompanies.com


Our utility infrastructure services include: • Asset Integrity • Construction Inspection • Data Management • Distribution Line Design • Electrical and System Studies • Environmental Services • Equipment Specifications • Gas Delivery Services • Line Routing • Linear Permitting • Owner’s Engineer Services • Program and Project Management • Protection, Control, and SCADA Design • Regulatory Assistance • Standards Review and Development • Storm and Feeder Hardening • Substation and Interconnection Services • Substation Upgrade and Retrofit Design • Survey and Staking • System Operations Audits • Transmission Line Design

Additional Information Visit Energy.gov for updates on events, requests for information (RFI), and funding opportunity announcements (FDAs) pertaining to energy provisions in the IIJA.

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An innovative, full-service engineering consulting and construction management firm delivering sustainable, integrated solutions to the world’s most challenging infrastructure projects. POWER

BUILDINGS

INFRASTRUCTURE

Your trusted advisor and partner committed to responsibly improving the world we live in.

chacompanies.com

iija@chacompanies.com


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