Detroiter Magazine April 2022

A CRISIS OF COST: INFRASTRUCTURE FIXES OFTEN COME WITH ʻUNPALATABLEʼ PRICE

OUT OF SIGHT, TOP OF MIND: LEADERS PUSHING TO CREATE MORE RESILIENT UNDERGROUND INFRASTRUCTURE

FLEXIBLE INNOVATION: THE INFRASTRUCTURE AUTOMOBILITY NEEDS TO THRIVE

A PUBLICATION OF THE DETROIT REGIONAL CHAMBER • APRIL 2022

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MICHIGAN’S INFRASTRUCTURE PROBLEM

OPPORTUNITY WHERE TO FROM HERE MEMBERSHIP

CONTENTS

MI'S INFRASTRUCTURE PROBLEM

APRIL 2022

6

• V O L U M E 11 4 , I S S U E 1

FRAGILE AND CONSTRAINED Infrastructure’s Ability to Bring the Economy to a Halt

10

A CRISIS OF COST Infrastructure Fixes Often Come with ‘Unpalatable’ Price

12

FEDERAL INFUSION Michigan’s Portion of the Infrastructure Investment and Jobs Act

14

OUT OF SIGHT, TOP OF MIND Leaders Pushing to Create More Resilient Underground Infrastructure

16

ADVOCATING FOR INFRASTRUCTURE A Look at Recent Chamber Efforts

18

HISTORIC FEDERAL FUNDS ONLY PART OF ROADS SOLUTION NEEDED Eric Lupher of Citizens Research Council Opines on Investment Impact

20

PUSHING THE ENVELOPE MDOT and Its Work to Rebuild and Reinvent Michigan's Roadways

24

IN THE WORKS Key Road and Bridge Projects Impacting Business Corridors in the Detroit Region

26

CLOSING THE DIGITAL DIVIDE Top Executives Discuss How Best to Increase Access to Broadband

28

EQUITY IN ARCHITECTURE Transportation Professionals Work to Deliver More Equitable Infrastructure

30

HIGHWAYS IN THE SKY Air Taxis May Be Closer Than You Think

32

FLEXIBLE INNOVATION The Infrastructure Automobility Needs to Thrive

34

SMART CARS NEED SMART ROADS A Look at Infrastructure Innovations as Mobility Evolves

35

LESS ACCIDENTS, MORE LANES Autonomous Vehicles Likely to Improve Efficiency of Existing Infrastructure

36

ARE WE READY? Companies Have No Time to Waste as Energy Challenges Loom

38

ENERGY IN MANUFACTURING Manufacturers Explain What They Need to Thrive in the 21st Century

40 38

ON THE ROSTER Join Us in Welcoming These New Members to the Chamber

44

DETROIT REGIONAL CHAMBER BOARD OF DIRECTORS BALLOT Good Things Are Happening to Businesses Throughout Metro Detroit

Publisher Tammy Carnrike, CCE Managing Editor Melissa Read Editor James Martinez Art Director Bethany Saner Photographers Courtesy photos from: Aerotropolis, Detroit Water and Sewerage Department, Gordie Howe Bridge Project, HNTB, I-75 Modernization Project, I-94 Modernization Project, Macomb County Department of Roads, Macomb County Public Works, Michigan Department of Transportation Advertising Director Jim Connarn Advertising Representative Laurie Scotese Research and Analysis Christyn Lucas Austeja Uptaite Back Issues 313.596.0391 Published by Detroit Regional Chamber Services Inc. No part of this magazine may be reproduced without written permission.

Detroiter (ISSN 0011-9709) is published four times a year (April, June, Oct. and Dec.) by the Detroit Regional Chamber, One Woodward Avenue, Suite 1900, Detroit MI 48226, Phone: (313)964-4000.

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POSTMASTER Send address changes to: Detroiter, One Woodward Avenue, Suite 1900, Detroit MI 48226.

Copyright 2007, Detroit Regional Chamber Services Inc.

2

Executive Summary

FROM THE PRESIDENT

TO BUILD A BETTER MICHIGAN, WE NEED TO BUILD MICHIGAN BETTER

Infrastructure. We’ve been talking about the issue at the national and state levels for over a decade. Everyone is unhappy with the state of our physical public infrastructure. Everyone wants someone else to pay for improving it. In the meantime, we all pay the price for inadequately addressing the issue in our pocketbooks.

Where Michigan Stands Today •

The Michigan Department of Transportation grades Michigan’s public infrastructure a D+, the worst in the Great Lakes region and among the worst in the nation.

•

Michigan ranks as having the fifth worst traffic congestion and comes in 34th in road infrastructure spending according to the Reason Foundation.

•

Nationally, the percentage of our GDP we invest in infrastructure has declined 40% since the 1960s according to the Biden Administration.

Why This Matters Next Generation Mobility. We are still in the early stages of a fundamental transformation of the mobility industry – from propulsion systems powered by fuels to those powered by electrons and from complete human control of vehicles to greater assists from computers and AI. In order for Michigan to continue to be the epicenter of mobility, our state must have the public infrastructure that supports these new technologies, such as connected roads and electric vehicle chargers. If we don’t, others that make these investments will attract the research, technical, engineering – and even manufacturing – jobs that have been ours for the last 100 years.

Business Attraction. While the Chamber was pleased to help lead the coalition resulting in significant new state economic development tools in December that helped land major new investments in vehicle battery production in Michigan, no business-friendly state

policy can trump inadequate infrastructure. If potential businesses see roads in such disrepair that their agricultural products are damaged enroute to processing, or potential development sites without basic utilities service or port capacity that limits their ability to ship to global markets, businesses will take their business elsewhere – resulting in fewer jobs and lost tax collection for us all.

Direct Impact on Our Families. Michigan’s embarrassing road conditions are a hidden tax on our families – with an annual average of $2,544 per motorist according to nonprofit TRIP, a national transportation research entity. Additional costs that fall on households include power outages due to our aging utility infrastructure, loss of economic opportunity due to lack of high-speed internet access in many communities, and, of course, challenges with even getting access to clean drinking water due to aging underground pipes.

What’s Next The passage of the President Biden’s bipartisan Infrastructure Investment and Jobs Act is indeed good news. This is the largest federal infusion of taxpayer funds in physical infrastructure in decades and will result in over $10 billion in Michigan projects – but it’s not enough. Given our state’s chronic underinvestment in infrastructure, the combination of this landmark federal legislation plus Michigan’s existing infrastructure spend plan, we are likely to only increase our grade from D- to C or C+, far from class leading.

While the debate of the moment is understandably focused on how to provide drivers some relief from current high fuel prices, the approaches suggested to-date actually take money away from infrastructure, which would only exacerbate our already challenging situation.

We need a long-term and stable funding plan in Michigan that not only addresses our serious infrastructure deficits, but smartly invests in the technologies of tomorrow that will help our businesses and people thrive in the 21st Century.

SANDY K. BARUAH

PRESIDENT AND CHIEF EXECUTIVE OFFICER, DETROIT REGIONAL CHAMBER

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4

Executive Summary

THE COST OF

INACTION

Infrastructure drives economic growth and is a must for business and society to function.

Unfortunately, the rate of public investment in U.S. infrastructure has declined sharply since the 1960s resulting in massive funding gap that grows wider each year. Locally, Michigan has not been willing to foot the bill needed for a modernized infrastructure – and has a D+ grade from the American Society of Civil Engineers.

The $1.2 trillion Infrastructure and Investment Jobs Act is one of the largest U.S. investments in nearly a century, yet still not enough to overcome decades of disinvestment. Rather, over the

next five years it offers states an opportunity to jumpstart a longterm strategy to modernize infrastructure in a way that keeps them globally competitive for jobs, investment, and talent.

By pairing this investment with other pandemic-related federal funds and the governor’s Rebuilding Michigan plan, the state will see some of its most robust infrastructure spending in its history.

The question is: Will Michigan be able to overcome the costs of decades of inaction and modernize its infrastructure?

If it doesn’t, it risks losing out on future economic growth.

Executive Summary

5

BY THE NUMBERS

40

%

PUBLIC INVESTMENT IN U.S. INFRASTRUCTURE AS A SHARE OF GDP HAS DECREASED BY MORE THAN 40% SINCE THE 1960s.1

13

TH

THE U.S. RANKS 13TH IN OVERALL QUALITY OF INFRASTRUCTURE AMONG COUNTRIES.2

2.6

$

TRILLION GAP U.S. TOTAL INVESTMENT GAP HAS REACHED $2.6 TRILLION OVER 10 YEARS.3 Sources: 1. The White House, 2. The World Economic Forum, 3. American Society of Civil Engineers, 2021 Report Card for America’s Infrastructure

6

MI's Infrastructure Problem

FRAGILE AND CONSTRAINED INFRASTRUCTURE’S ABILITY TO BRING THE ECONOMY TO A HALT

By John Gallagher

INFRASTRUCTURE GRADE1

D+

C

MICHIGAN

WISCONSIN

C-

C-

ILLINOIS

C-

OHIO

U.S.A.

Source: 1. Michigan Department of Transportation

To weigh the importance of roads, bridges, and other infrastructure to keep the American economy humming, look no further than the trucker blockade that shut the Ambassador Bridge for several days in February.

Within days of the first stoppages, auto plants in the U.S. and Canada began to idle shifts. Patrick Anderson, president and chief executive officer of East Lansingbased Anderson Economic Group estimated lost wages and other costs to the auto industry reached about $300 million.

Sandy K. Baruah, president and chief executive officer of the Detroit Regional Chamber, sees the episode as emblematic of how America has neglected its infrastructure for far too long.

“Our infrastructure is so fragile, so constrained, that a bunch of malcontent truckers can bring the North American supply chain literally to a screeching halt,” he said.

BETTER ‘HYGIENE INFRASTRUCTURE’ A MUST Baruah uses the term “hygiene infrastructure” to capture how America needs to do much better at the basics of maintaining roads, bridges, water and sewer lines, and more. With businesses increasingly running on “just in time” operations, the nation’s deteriorating roads, bridges, ports, and air and rail facilities all pose threats to production and profitability. Fixing the “damn roads,” a recent mantra in Michigan’s political discourse, is just one piece of the puzzle.

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8

MI's Infrastructure Problem

Are we doing enough to make sure Michigan remains relevant in this mobility space? I think we haven’t done enough to expand our thinking on it. We’re always thinking about today without a thought of tomorrow.

LISA LUNSFORD CO-FOUNDER AND CHIEF EXECUTIVE OFFICER, GS3 GLOBAL Pointing to concerns over lead water pipes in many places to sinkholes in Macomb County to the estimated 50,000 bridges in the U.S. that need serious maintenance, Baruah said, “These are all examples of neglecting hygiene infrastructure investments over the years. Just like maintaining your house. The less you spend on maintenance, the more you’re going to spend in the end on big projects.”

In some ways, other nations are moving much faster to embrace their infrastructure needs and solutions. China and Europe have invested in high-speed rail. And when Michigan’s legislators refused to pay for a new border crossing, Canada agreed to pay the entire upfront costs of the new Gordie Howe International Bridge, which will add six lanes of capacity and direct links to expressways on both sides of the border when it opens in 2024.

As Roy Norton, Canada’s representative in Detroit from 2010 to 2014, told Crain’s Detroit Business recently, "It was worth $5 billion to us to ensure" the continued movement of goods across the busiest trade corridor between the two nations.

INVESTMENT NEEDED IN UPGRADES OF THE FUTURE But maintaining our roads and bridges is only a beginning step, said Lisa Lunsford, chief executive officer and founder, Global Strategic Supply Solutions and chair of the board of MICHauto, a statewide initiative of the Detroit Regional Chamber.

For Michigan to retain its leading position in the mobility marketplace, the state

needs to invest more in the transportation upgrades of the future, she said.

That means investments in “smart” roads that communicate with vehicles about hazards. It means bringing to market not just electric vehicles, but entire systems automated to move people and goods in the cleanest, safest, most efficient ways.

MICHIGAN HAS CATCHING UP TO DO

Lisa Lunsford speaks at the 2021 Mackinac Policy Conference

Like Baruah, Lunsford believes Michigan has a long way to go to stay ahead of rivals.

“I’m constantly asking, are we prepared?” she said. “Are we doing enough to make sure that Michigan remains relevant in this mobility space? I think we haven’t done enough to expand our thinking on it.

We’re always thinking about today without a thought of tomorrow.”

Baruah echoes that.

“Compared to what we need as the home of mobility, the state that’s supposed to own mobility, we need to be an aggressive early adopter in all of these technologies and we’re not,” Baruah said.

So patching potholes is the least of it.

Michigan’s infrastructure needs stretch from the border with Canada to future technologies just now coming into view. As Lunsford and Baruah said, Michigan has a lot of catching up to do. • John Gallagher is a freelance writer and author in Detroit, and formerly of the Detroit Free Press.

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2022 HOME OPPONENTS

10 MI's Infrastructure Problem

A CRISIS OF COST

INFRASTRUCTURE FIXES OFTEN COME WITH ‘UNPALATABLE’ PRICE

By Rene Wisely

THE UNITED STATES' TOTAL INVESTMENT GAP HAS REACHED

$

2.6 TRILLION OVER 10 YEARS.

BY 2039, A CONTINUED UNDERINVESTMENT IN OUR INFRASTRUCTURE WILL COST: 10 T IN GDP

$

3 M+ JOBS

It’s unsexy but necessary. Often hidden and yet it’s part of every Michigan resident’s daily life. And it’s almost always ignored.

Michigan’s current infrastructure receives the Rodney Dangerfield treatment: It gets no respect.

2.4 T IN EXPORTS1

$

For legislators, it’s a political hot potato, that’s prevented sustainable financing solutions.

“We tend to only respond when it's a crisis,” said Lance Binoniemi of the Michigan Infrastructure and Transportation Association.

Michigan has trailed most of the nation in road funding for the past 55 years, said Craig Bryson, senior communications manager of the Road Commission for Oakland County, which takes care of 2,700 miles, the largest county road system in the state.

Over the past decade or more, Michigan has had one infrastructure crisis after another. Failed dams and crumbled bridges. Pothole-riddled roads. Flooded streets and sewer back-ups.

“Because we track investment in roads, Michigan’s been in the bottom 10 states in the nation per capita, in state and local road funding, since at least 1964,” said Bryson.

And more of these crises are on the horizon. Michigan relies on many systems that date back to the late 1800s, with age serving as infrastructure’s worst nemesis.

And don’t dare compare Michigan’s roads with Ohio’s, Bryson said. Ohio motorists pay gas taxes of 38.5 cents per gallon. In Michigan, its 26.3 cents. Those extra 12 cents per gallon mean an extra $1 billion a year for Ohio’s roads.

How did Michigan let that happen? How did we get here?

THE MONEY EQUATION It’s all about money. Michiganders have resisted paying more to fund long-term infrastructure investment, Binoniemi said.

Source: 1.American Society of Civil Engineers, 2021 Report Card For America’s Infrastructure

“That adds up over time,” he said.

Going back in time, any gains Michigan had from federal programs in the 1950s-1980s, vanished during the Great Recession.

Because we track investment in roads, Michigan’s been in the bottom 10 states in the nation per capita, in state and local road funding, since at least 1964.

CRAIG BRYSON SENIOR COMMUNICATIONS MANAGER, ROAD COMMISSION FOR OAKLAND COUNTY

RECENT FUNDING BRIGHT SPOTS FALL SHORT Former Gov. Rick Snyder passed a $1.2 billion road funding bill in November 2015 that raised the cost to register a vehicle, the first significant one in 20 years, and upped the gasoline tax by 7.3 cents per gallon. This came only after voters overwhelmingly said no to the Proposal 1 transportation package the previous May, which the Detroit Regional Chamber supported as a sustainable, long-term way to pay for roads. The previous gas tax increase was 4 cents in 1997, half of what was requested.

Michigan Gov. Gretchen Whitmer in her first State of the State address in 2019 suggested a 45-cent gas tax increase, a

necessary amount to fix the potholeridden roads she campaigned on, which was expected to raise $2.5 billion annually.

The legislature said no, so she used a $3.5 billion bond stretching over five years to work on roads, which wasn’t enough, Binoniemi said.

time,” with less construction headaches and results in long-term savings, said Eric DeLong, Grand Rapids’ deputy city manager.

LOCAL AGENDA

Proper infrastructure leads to improving a resident’s quality of life and that is the key to good governing, said Macomb County Board of Commissioners Chair Don Brown.

Other communities study Grand Rapids’ Vital Roads program, where residents voted for a tax increase in 2014 to shore up its own roads and embrace an asset management system.

“No one cares if the toilet flushes just fine,” Brown said. “It’s when that waste backs up in your house or ends up in Lake St. Clair and causes an algae bloom that people care.” •

“We coordinate all our road projects with all of our other utilities, public and private, so everything is done at the same

Rene Wisely is a freelance writer in Metro Detroit.

MICHIGAN’S PORTION OF THE INFRASTRUCTURE INVESTMENT AND JOBS ACT

FEDERAL INFUSION

The $1.2 trillion Infrastructure Investment and Jobs Act is the largest long-term investment in U.S. infrastructure and competitiveness in nearly a century.

BELOW IS A BREAKDOWN OF THE FUNDS MICHIGAN WILL BE RECEIVING: 7.3 B

$

563 M

1.3 B

$

$

IMPROVE WATER INFRASTRUCTURE, INCLUDING LEAD SERVICE LINE REPLACEMENT

FIX ROADS AND BRIDGE REPLACEMENT AND REPAIRS

1B

363 M

$

$

INFRASTRUCTURE DEVELOPMENT FOR AIRPORTS

IMPROVE PUBLIC TRANSPORTATION ACROSS THE STATE

110 M

100 M

$

$

SUPPORT THE EXPANSION OF THE STATE’S ELECTRIC VEHICLE CHARGING INFRASTRUCTURE

EXPAND BROADBAND COVERAGE TO AN ADDITIONAL 398,000 MICHIGANDERS

24 M

$

PROTECT AGAINST CYBERATTACKS

23 M

$

PROTECT AGAINST WILDFIRES

MICHIGAN TOTAL INVESTMENT: $10.8 BILLION1 Source: 1. The White House Note: Funds allocated over five years. Values are estimates and may change based on updated factor data each fiscal year.

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14 MI's Infrastructure Problem

OUT OF SIGHT, TOP OF MIND LEADERS PUSHING TO CREATE MORE RESILIENT UNDERGROUND INFRASTRUCTURE

By Karen Dybis

When it comes to Michigan’s aging underground infrastructure, state leaders such Macomb County Public Works Commissioner Candice Miller knows there’s a temptation to ignore the problem.

We recognize our sewer system has to be more climate resilient and while we replace water mains, we also need to replace lead service lines. We started this combined effort in June 2019 with the launch of a $500 million capital improvement program to begin to address our aging infrastructure.

But she also knows with visible emergencies from neighborhood sinkholes to Southeast Michigan’s recent flooding to Flint’s leadcontaminated drinking water, issues that are out of sight cannot be out of mind.

“There’s such a need that it’s overwhelming.

But you can’t look at it that way or it will be overwhelming,” Miller said. “It’s taking a bite of the elephant. You just have to keep eating it. It has to be done.”

UNDERGROUND WORK DEMANDS UPGRADES, COLLABORATION Miller and other leaders, including Detroit Water and Sewerage Department Director Gary Brown, agree: The state’s underground infrastructure demands investment, upgrades, and collaboration.

GARY BROWN DIRECTOR, DETROIT WATER AND SEWERAGE DEPARTMENT

The Detroit Water and Sewerage Department is busy replacing lead service lines.

For example, this spring DWSD will start a $40-million project in the Far West

MI's Infrastructure Problem 15 Miller also knows what happens when underground infrastructure is ignored, inspections deferred, and investments delayed. She not so fondly recalls the 2016 interceptor sewer pipe collapse, which created a football-field sized sinkhole at 15 Mile near Utica Road in Fraser. The collapse, estimated at $150 million and three years to fix, took under a year and about $70 million, Miller said.

To combat these disasters, Miller established what she called the biggest inspection project of underground structures in Macomb County’s history.

County crews also started an extensive grouting program, injecting grout into critical pipes like ones that go under I-94 or the Clinton River. Another project will line these all-important interceptors with an impervious material that will extend the pipe’s life indefinitely.

This rendering from Detroit’s Rouge Park is part of a $40 million project that will redirect rain and snowmelt from the neighborhood to two new stormwater detention basins

Detroit neighborhood near Rouge Park.

The massive project will not only replace water mains and lead service lines, but it will also redirect rain and snowmelt from the neighborhood to two new stormwater detention basins in the park.

“It will create 99 million more gallons of capacity in the combined sewer system that will benefit Detroit and the region, especially during rain events, which is why the Great Lakes Water Authority and the Oakland County Water Resources Commissioner are sharing in the cost,” Brown said.

CREATING A CLIMATE RESILIENT SYSTEM Accelerating these infrastructure upgrades also is a primary focus, Brown added.

“We recognize our sewer system has to be more climate resilient and while we replace water mains, we also need to replace lead service lines,” Brown said. “We started this combined effort in June 2019 with the launch of a $500 million capital improvement program to begin to address our aging infrastructure.”

“Think about what an environmental catastrophe it would be to have a huge issue with raw sewage spilling eventually

SPENDING A DIME TO SAVE A DOLLAR Miller said another huge issue for Southeast Michigan is the combined sewer overflows – the same issue that caused the massive flooding across Wayne County last year. Macomb County is working on reducing its impact, Miller said, but there needs to be more widespread efforts.

“This also is a generational thing. We don’t have to live this way,” Miller said. “I try to do a lot of public education around (underground infrastructure). I am spending a lot of money on this stuff. Sometimes, you have to spend a dime to save a dollar. That’s the way I look at this.”• Karen Dybis a freelance writer in Metro Detroit.

G N I T POS

s r e y o l p m ichigan e

JOB FREE M

into Lake St. Clair,” Miller said. “We’re spending a lot of money on (underground infrastructure), but we’ll have to invest more. … I’m not interested in a shortterm fix.”

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Advocating to Congress, Chamber plays integral role in backing Gov. Jennifer Granholm’s successful push for increased federal transportation funding for Michigan.

2 00 2

1

2 00

In recent decades, the Chamber has continued its support of bipartisan infrastructure and transportation projects essential to economic growth often creating opportunity for voters and elected officials to consider increased investments. Wins include the first regional dedicated funding source for mass transit, the Gordie Howe International Bridge, Soo Locks rebuild, and modest gas tax increases. While other efforts have not succeeded, the Chamber continues to advocate for the infrastructure – its members and business needs – to thrive.

A LOOK AT RECENT CHAMBER EFFORTS

2 2 01

Founded in 1903 as the Detroit Board of Commerce, the Detroit Regional Chamber’s origins of advocating for transportation and infrastructure go back to its earliest of days. It includes a successful “Good Roads for Michigan” 19101911 campaign, which culminated in voter approval of a $2-million bond proposal to fix Wayne County’s roads and highways.

Chamber supports new bridge to Canada, with Gov. Rick Snyder signing agreement with Prime Minister Stephen Harper to build New International Trade Crossing (Gordie Howe International Bridge). The bridge is currently under construction.

1

McNamara Terminal opens in Detroit Metro Airport following several years of Chamber support and collaboration with Northwest (now Delta) Airlines for public and private sector funding.

7 99

5 99

20

01

Chamber leads successful SMART millage campaign that establishes a dedicated source of funding for mass transportation for the first time in the region’s history.

Gas tax increase of 4.2 cents goes into effect, well short of the 10- to 12-cent increase supported by many groups, including the Chamber.

Chamber leads successful push to create Detroit Area Regional Transportation Authority, which is vetoed by Gov. John Engler in 2002.

MI's Infrastructure Problem 17 Chamber supports legislation creating the Regional Transit Authority, which Gov. Snyder signs.

2

20

Michigan’s fuel taxes officially tied to consumer price index and will rise with inflation, following 2015 legislation, increasing road funding.

20

14

19

Chamber supports push for federal funding for M1-Rail (now QLine) project in Detroit.

16

20

20

15

2018

Chamber advocacy continues for state and federal funding and reauthorization of Soo Locks project, culminating in full funding of the project in the 2022 Infrastructure Investment and Jobs Act.

20

18

Chamber-backed millage for Regional Transit Authority appears on ballot and is narrowly defeated by approximately 18,000 votes.

$5.4 billion, 20-year Connect Southeast Michigan plan, which Chamber supported, fails to gain regional support for November ballot.

20

17

Voters overwhelmingly reject Chamber-backed Proposal 1 to raise gas taxes and provide long-term sustainable funding. Chamber supports subsequent legislative plan that passes to increase gas taxes 7.3 cents – the first such increase in nearly 20 years – and includes a provision tying motor fuel rates to the consumer price index.

Mackinac Policy Conference To-Do List includes supporting bipartisan effort to fund the rebuilding of the Soo Locks.

2

2 01

Gov. Gretchen Whitmer’s 45cent gas tax to raise $2.5 billion annually, does not garner legislative support.

2 02

2

1 02

Chamber voices support for Line 5 and Great Lakes Tunnel as means to carry resilient, affordable energy.

Chamber joins national coalition supporting bipartisan passage of $1.2 trillion Infrastructure Investment and Jobs Act.

Qline (formerly M1-Rail) opens in downtown Detroit.

18 Opportunity HISTORIC FEDERAL FUNDS ONLY PART OF ROADS SOLUTION NEEDED

ERIC LUPHER P R E S I D E N T, C I T I Z E N S R E S E A R C H C O U N C I L O F M I C H I G A N ADEQUACY OF FEDERAL FUNDING INCREASE WILL BE TESTED This increase in revenue alone does little to meet the state’s full needs. On an annual basis, the IIJA provides $334 million in new funding for state roads and $94 million for eligible local government roads. The $428 million in new funding for five years only helps to address a small portion of the annual funding gap. It will lessen the pace of decline in road conditions. It will not reverse the downward trend.

We should also not expect this funding to address the needs of the entire road system. An effective road system provides both longrange mobility and local access to homes and businesses. With some exceptions, federal highway dollars fund roads that provide mobility, such as interstates and other major roads.

Only about 30% of Michigan’s road miles qualify for federal funding, but potholes, dangerous bridges, and poor road conditions are found on roads of all characteristics. Granted, these 30% are the most heavily traveled roads, but that does little good if you can’t get to them.

Amid the talk about the recently enacted federal Infrastructure Investment and Jobs Act (IIJA), it’s critical to understand one thing that can be lost in the headlines – the new funding will not “fix” Michigan’s roads. It’s something that was also lost after the modest gas tax increase approved in 2015.

THERE’S NO QUICK FIX AFTER CHRONIC DISINVESTMENT Michigan’s deteriorating roads and bridges are the result of decades of chronic underfunding the IIJA cannot undo. The most recent statewide assessment estimated $2.2 billion of unmet annual funding needs as of 2016. While state and many local governments have enacted minor funding increases since that estimate, roads and bridges continue to deteriorate.

Before the IIJA, Michigan received $1.1 billion annually in federal road and bridge funding. From the $4.3 billion IIJA sets aside for Michigan infrastructure (including broadband, water systems, and electric vehicle charging) over the next five years, only $2.2 billion is specifically for roads and bridges, which is a 35% increase over allocations.

Michigan counties, cities, and villages are responsible for the balance of the road miles that provide local access. Responsibility for funding these roads falls to the state and local governments.

NEW FUNDING MODEL NEEDED Ultimately, you and I bear the primary responsibility for funding Michigan’s roads. Our antiquated current highway funding tax structure must be replaced, especially as our motor fleet is evolving to electric vehicles that do not consume gas. Other states and nations are experimenting with fee structures based on vehicle miles traveled.

Ultimately, state and local governments would be best served by weaning themselves off of total reliance on the earmarking model.

End the notion that road users should be solely responsible for funding the roads. As public goods, an argument can be made that funding road and bridge infrastructure should come from the general funds. This is the most sustainable approach and reflects the value of the infrastructure for more than the vehicles on it.

Eric Lupher is the president of the Citizens Research Council of Michigan, a not-for-profit organization whose mission is to improve state and local government in Michigan.

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20 Opportunity

PUSHING THE ENVELOPE MDOT AND ITS WORK TO REBUILD AND REINVENT MICHIGAN’S ROADWAYS

MDOT Director Paul C. Ajegba is also a professionally licensed engineer and oversaw the US-23 Flex Route, a project nominated for the America's Transportation Award, landing among the top 12 national finalists

By James Martinez

In February, Governor Gretchen Whitmer announced that Electreon was selected to build a public wireless in-road charging system on a one mile of road in Detroit within the Michigan Central mobility innovation district. The electric road system – the first of its kind in the nation – pilots technology that would allow electric vehicles (EVs) to extend their charge without stopping and is designed to keep Michigan at the forefront of EV innovation.

MICHIGAN HAD

10,620 LIGHT-DUTY ELECTRIC VEHICLES REGISTRATIONS IN 2020 BY 2030, MICHIGAN ESTIMATES

2 MILLION ELECTRIC VEHICLES WORLDWIDE

1

This comes as a once-in-a-generation infusion of funding from the governor’s 2020 Rebuilding Michigan $3.5 billion bonding effort and the federal Infrastructure Investment and Jobs Act is providing a unique opportunity to rebuild and modernize. It also, creates a juxtaposition as Michigan’s roads and bridges are in poor condition and have been for years, drawing D- and C- grades, respectively, from the American Society of Civil Engineers in 2018.

The Detroiter sat down with Michigan Department of Transportation Director Paul C. Ajegba to discuss MDOT’s work. Answers have been edited for clarity and length.

Source: 1. State of Michigan and National Renewable Energy Laboratory

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22 Opportunity MICHIGAN’S ROADS AND BRIDGES RATED POORLY BY THE AMERICAN SOCIETY OF CIVIL ENGINEERS. HOW DO YOU DIG OUT OF THAT HOLE? We are slowly digging out of a 40year disinvestment hole. A lot of infrastructure was rated in very poor and bad condition. To climb out of that hole takes a lot of money and time. And when our governor came in, she gave us $3.5 billion in January 2020, and said: “Go to work and start fixing these roads.” You can see a lot of the results now. Last year 2021 was the highest we’ve ever spent on infrastructure with $2.6 billion. And this year with the infusion of federal money, with the governor's Rebuilding Michigan money, we're probably going to spend over $3.5 billion.

Director Paul C. Ajegba has more than 31 years of experience at MDOT

Gov. Gretchen Whitmer and MDOT Director Paul C. Ajegba are leading the $3.5 billion Rebuilding Michigan plan to restore some of the state’s most vital freeways and bridges

WHY IS THE INDUCTIVE VEHICLE CHARGING PILOT AT MICHIGAN CENTRAL SO IMPORTANT?

ARE THERE ANY ADDITIONAL POLICIES NEEDED TO HELP INFRASTRUCTURE KEEP UP?

Michigan is home to the auto industry, and the OEMs committed that by 2035 all their vehicles are going to be electric. For us, as a state infrastructure owner, it’s about what role do we play in making that happen.

How do help support their vision, so we all get there together? And the governor's idea with the inductive charging system is let's pilot it and see if this works. If it works we may see more of this all over the country. It’s the first of its kind in the U.S. and all eyes are on us. We’ll make it work.

There's talk about creating a connected autonomous vehicle and electric vehicle lane. That legislation is going through our state legislature to look at what that means, how it works, and how do you enforce it.

This is all part of pushing the envelope to try new things that most states probably have not thought about or would not want to venture into. And that's the beauty of what we are doing in Michigan. We have the leadership saying: ‘Go out there and try some new things with the OEMs.’

DO YOU HAVE CONCERNS ABOUT INFRASTRUCTURE KEEPING UP WITH CONNECTED VEHICLE TECHNOLOGY?

HOW CLOSE WILL THIS INFLUX OF FUNDING GET US TO A MODERNIZED TRANSPORTATION INFRASTRUCTURE?

That's the challenge. If you look at the connected autonomous vehicle technology, MDOT and most of the state (departments of transportation) across the country have been keeping up because we realize this is a partnership between us and the manufacturers. And we've been in lockstep with them. So us being involved with this decision-making helps both sides share data and ideas and improve connectivity.

Those are some of the conversations that we need to start having with our legislature. We are funded based on gas tax as these electric vehicles are coming to the market. That means people are buying less gas. That means less tax revenue coming in. Eventually we have to have that conversation on how we replace the gas tax to fund our roadways. • James Martinez is editor of the Detroiter and a content creation consultant.

MI's Infrastructure Problem 23

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24 Opportunity

IN THE WORKS

KEY ROAD AND BRIDGE PROJECTS IMPACTING BUSINESS CORRIDORS IN THE DETROIT REGION

Anchored by the Gordie Howe International Bridge project, several major road and bridge projects are underway which will greatly impact some of the Detroit region’s busiest economic corridors. Collectively, these projects will improve safety, reduce congestion, add multimodal options, and implement new technologies and design features to Southeast Michigan’s infrastructure.

INFRASTRUCTURE LOCATION DETROIT/WINDSOR

1.5 MILES

SIX LANE BRIDGE BUDGET

5.7 BILLION

$

ESTIMATED COMPLETION

2024

Once completed, it will be among the top five longest bridges in North America and includes: •

Michigan Interchange consisting of 1.8 miles of I-75 and interchange ramps with four bridges and five pedestrian bridges

•

One approach bridge on each side of the crossing to connect ports of entry in Canada and the U.S.

GORDIE HOWE INTERNATIONAL BRIDGE

Opportunity 25

I-94 MODERNIZATION LOCATION

DETROIT

INFRASTRUCTURE

BUDGET

FROM EAST OF THE I-96/I-94 INTERCHANGE TO EAST OF CONNER AVENUE

3 BILLION+

$

ESTIMATED COMPLETION: TBD Freeway construction expected to begin in 2024 • Reconstructs nearly seven miles of the freeway and two interchanges • Adds fourth travel lane in each direction • Rebuilds 70+ bridges • Widens median shoulder, lengthens freeway entrance ramps for safer merging and improved mobility

I-75 MODERNIZATION LOCATION

OAKLAND COUNTY

INFRASTRUCTURE

BUDGET

FROM M-102 NEAR HAZEL PARK TO SOUTH OF M-59 NEAR OAK GROVE TOWNSHIP

970 MILLION

$

ESTIMATED COMPLETION: FALL 2023 Reconstructs approximately 18 miles of freeway from M-102 near Hazel Park to South of M-59 near Oak Grove Township removing five bridges and replacing 46 structures • Adds high occupancy vehicle lanes in high congestion areas • Intelligent transportation systems to monitor real-time traffic conditions • New tunnel to collect stormwater drainage leading to safer travel

INNOVATE MOUND PROJECT LOCATION

WARREN AND STERLING HEIGHTS

INFRASTRUCTURE BETWEEN I-696 AND M-59

BUDGET

217 MILLION

$

ESTIMATED COMPLETION: 2024 Reconstructs approximately nine miles of Mound Road between I-696 and M-59 • Adds fourth lane in each direction from 17 Mile Road to M-59 • Connected vehicle and fiber optic communications technology • Signal optimization and energy efficient lighting

MILLER ROAD BRIDGE LOCATION

DEARBORN

INFRASTRUCTURE

ROTUNDA DRIVE AND FORD MOTOR COMPANY'S ROUGE COMPLEX

BUDGET

$

60 MILLION

ESTIMATED COMPLETION: EXPECTED TO BEGIN IN 2023 AND CONCLUDE IN 2025 Reconstructs bridge that connects Rotunda Drive and Ford Motor Company's Rouge complex • Current bridge has over 500 temporary supports maintaining it • Main thoroughfare for Ford employees coming to and from work • Widens median shoulder, lengthens freeway entrance ramps for safer merging, and improved mobility

CLOSING THE

DIGITAL DIVIDE

WHAT IS THE TO BROADBA

The pandemic put to rest any lingering doubts of highspeed internet’s status as essential infrastructure. It also laid bare the repercussions of a digital divide and elevated the importance of increasing equitable access to broadband service in a society that requires connectivity. The Detroiter asked key telecommunications leaders to opine on how best to close the digital divide moving forward.

73% 68%

PERCENT OF MICHIGAN

54%

HOUSEHOLDS WITH BROADBAND SUBSCRIPTION1

MICHIGAN

DETROIT MSA

CITY OF DETROIT

20%

PERCENT OF MICHIGAN

11%

HOUSEHOLDS WITH

TIM COLLINS SENIOR VICE PRESIDENT, HEARTLAND REGION, COMCAST

10%

NO INTERNET ACCESS1

MICHIGAN

DETROIT MSA

CITY OF DETROIT

“Digital access and adoption are different challenges. Robust network infrastructure and reliable service are widely available across Southeast Michigan, so the primary challenge lies in broadband adoption. The Affordable Connectivity Program eliminates cost as a digital adoption barrier. As a community, we need to focus on getting devices and digital skills training to those who will benefit.”

Opportunity 27

KEY TO ENSURING EQUITABLE ACCESS AND ACROSS SOUTHEAST MICHIGAN?

BRIANNA ELLISON

DAVID LEWIS

LAURA GRANNEMANN

DIRECTOR, COMMUNITY ENGAGEMENT, VERIZON

PRESIDENT, AT&T MICHIGAN

VICE PRESIDENT, ROCKET COMMUNITY FUND; EXECUTIVE DIRECTOR, GILBERT FAMILY FOUNDATION

“Leading by example, Verizon knows bridging the digital divide requires collaboration with government to develop affordable, equitable and sustainable broadband solutions; and community investments – as demonstrated by Verizon’s local partnerships with Mercy Education Project, empowering women and girls; JOURNI, equipping youth through tech; and Connect 313, supporting digital inclusion. This vision aligns with our Citizen Verizon Corporate Social Responsibility initiative.”

“We believe broadband connectivity is essential. Addressing affordability, access and adoption is at the heart of our commitment to creating connection. By working together with government and other industry leaders, we can expand affordable access and increase broadband adoption in communities across Southeast Michigan, to help every American have an opportunity to succeed.”

"Truly bridging the digital divide in Detroit requires a paradigm shift. Only through expert leadership, community-driven prioritization and deep collaboration can we ensure equitable access to the internet, technology and digital literacy training Detroiters need to thrive in this interconnected world. We are proud that the Connect 313 Fund is setting the bar for this type of partnership and innovation."

Source: 1 .U.S. Census Bureau, 2019 One-Year American Community Survey

28 Opportunity MI's Infrastructure Problem

EQUITY IN ARCHITECTURE TRANSPORTATION PROFESSIONALS WORK TO DELIVER MORE EQUITABLE INFRASTRUCTURE

By James Martinez

Infrastructure provides the basic physical and organizational structures and framework for society to function – meaning society cannot truly operate equitably if infrastructure is designed and built without diverse voices and impacted communities participating from start to finish.

“The work we do directly affects economic opportunities, economic development, and community development because where you put a highway impacts who has access to jobs and the forthcoming opportunities that come from connection to other markets,” said G. Jerry Attia, vice president and managing principle of AECOM’s Michigan practice.

Locally, the construction of 375 freeway in Detroit – which demolished the Black Bottom neighborhood and its business center, Paradise Valley, in the late 1950s and early 1960s – stands out as an egregious example.

The work we do directly affects economic opportunities, economic development, and community development because where you put a highway impacts who has access to jobs and the forthcoming opportunities that come from connection to other markets.

G. JERRY ATTIA VICE PRESIDENT AND MANAGING PRINCIPLE, AECOM MICHIGAN

“When (I-375) was built, it took away a whole community in Black Bottom and that was a thriving neighborhood with Black businesses,” said Paul Ajegba, director of the Michigan Department of Transportation (MDOT).

“Those business owners never got a chance to transfer those businesses to the next generation to build wealth.”

NEW APPROACH TO I-375 SHOWS INDUSTRY SEA CHANGE Today, as work continues on a proposal to replace the mile long I-375, the organizations leading the project such as MDOT and City of Detroit are engaging the community neighborhoods in the planning phases, reflecting a broader sea change in the transportation planning industry.

Under the traditional approach, transportation professionals would have likely examined traffic flow, determined no major traffic issues, and decided to simply replace the project with minimal community input, according to Eric Morris, senior vice president and Michigan office leader at HNTB, which serves as MDOT’s lead consultant on the I-375 project.

“It’s about trying to use that (architect’s) skillset to inform clients and stakeholders of the impact, and then trying to quantify or articulate those impacts by looking at not just cost and return on investment, but also factoring in social equity issues in the areas that we work,” Attia said.

DIVERSITY AMONG TRANSPORTATION PROFESSIONALS KEY Intertwined with a greater emphasis on social justice in infrastructure planning is addressing the pipeline issues that impact who is involved or working on projects at all levels.

“Elevating minorities, specifically African Americans in engineering and architecture in STEM fields is critical,” Attia said. “The more you elevate more diverse people, the more sensitivity you have to equity issues.”

For AECOM, those efforts include engaging high schools and institutions of higher education including historically Black colleges and universities to recruit, retain and engage Black students and professionals.

The key he said is the industry needs to continue to think about transportation more broadly beyond just cars and streets, but including walkways, bike trails and overall community impact in a way that increases safety, livability, access, and quality of life – something that is occurring on the current I-375 project.

Expanding diversity also means larger companies bringing in smaller companies and minority-owned firms on major projects that help further establish them in the industry.

That’s something HNTB is increasingly doing as it works through an array of internal and external equity initiatives.

“If you really boil it down to its essence, it's us as transportation professionals becoming better listeners and being better at asking questions,” said Morris.

“We are not the social organization and we're not the nonprofit organization. What we want to do is to be the most effective and efficient at bringing a broad change in this area, but in what we do best,” said Regine Beauboeuf, HNTB’s senior vice president and director of infrastructure and mobility equity. •

That recognition underscores the voice unique infrastructure consulting firms such as HNTB and AECOM have in shaping a more equitable society.

James Martinez is editor of the Detroiter magazine and a content creation consultant.

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30 Where to from Here

HIGHWAYS IN THE SKY

AIR TAXIS MAY BE CLOSER THAN YOU THINK

By James Martinez

Rep. Debbie Dingell (D-MI 12) speaks with the Aerotropolis team

With the proliferation of drone technology and e-commerce, there’s an effort to build highways in the sky – a system of lowaltitude flight routes at between 40 and 400 feet where lightweight air vehicles would fly, carrying everything from Amazon purchases to automotive parts.

This new advanced air mobility industry is taking root at the Detroit Region Aerotropolis, the economic development organization that encompasses 6,000 developable acres in Wayne and Washtenaw counties in a prime transportation network that includes railways, highways, Detroit Metro and Willow Run airports and the American Center for Mobility. Currently, Aerotropolis is building and testing the digital infrastructure needed to integrate drones safely into national airspace and local communities at scale via LAANC (Low Altitude Authorization and Notification Capability), a partnership between the Federal Aviation Administration (FAA) and private industry.

This work focusing initially on transported goods, could potentially clear the way for air taxis flying people at low altitudes – bringing Jetsons like fantasies into reality and changing the way people move through the air. The Detroiter magazine interviewed Aerotropolis Executive Director Chris Girdwood recently.

Answers have been edited for length and clarity.

WHAT DOES ‘HIGHWAYS IN THE SKY’ REFER TO? We think the future is in low altitude airspace between 40 and 400 feet. When

you look at some of the use cases for drones or other aerial vehicles, it comes from an ecological and sustainable perspective. Why continue to widen roads when we can move traffic to the sky? Why is a two-ton truck driving a five-pound part 45 miles across Metro Detroit when that five-pound part could be flown in low-altitude airspace from a parts depot to an advanced assembly plant? The goal is to take lightweight high value cargo off the road and move it into low-altitude airspace.

WHAT TYPE OF TECHNOLOGY DOES THIS REQUIRE? We're taking air data from the airport authority and the FAA’s LAANC program and we're building out this robust software technology stack to find out where we can fly between 40 and 400 feet safely.

To enable this technology, we need to have authoritative data. We need to have infrastructure that communicates with each other, and we need to have recreational and commercial drone pilots using this LAANC program to get (FAA) authorization. We're getting to that point.

WILL PEOPLE SEE THE ‘HIGHWAY IN THE SKY’ FROM THE GROUND? We've been very focused on that question because when we're working with municipalities, they ask that question, and if there is going to be noise pollution or safety issues because residents won't want to have drones flying over their home or in their neighborhood. We are looking at

CHRIS GIRDWOOD EXECUTIVE DIRECTOR, AEROTROPOLIS

existing infrastructure and how to use it to adapt this new mobility revolution. And we’ve started to focus on rail and if the future highway in the sky can be above rail lines initially, because there's already some noise associated with rail and it connects our industrial corridors, which is where high value cargo moves to.

DO YOU HAVE ANY SENSE OF WHEN A REGION MIGHT BE UTILIZING A 'HIGHWAY IN THE SKY' AT SCALE? I think industry is going to be able to do this in the next three years. Consumers will be able to go onto their favorite retailer and get a 15-minute drone delivery within the next five to seven years. And I think maybe in the next 10 years, you'll be able to fly an air taxi from a parking deck in Ann Arbor to a parking deck in Detroit.

LIKE PEOPLE ACTUALLY RIDING IN AN AIR TAXI? Of course. That technology is coming along very quickly. I have four- and sixyear-old kids, and I think they'll be able to fly in air taxis in their late teenage years.

That technology is coming quickly. • James Martinez is editor of the Detroiter magazine and a content creation consultant.

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32 Where to from Here

FLEXIBLE INNOVATION THE INFRASTRUCTURE AUTOMOBILITY NEEDS TO THRIVE

General Motors wants to take autonomous driving to the next level, petitioning the National Highway Traffic Safety Administration to permit the launch of commercial ride-sharing services using the new Cruise Origin – which would become the first vehicle ever to operate on public roads with neither steering wheel nor other driver controls.

The question is what sort of infrastructure will be needed to support this grand transformation. And that leads to the follow-up question: who will fund it all? The answers depend upon which technology you’re talking about.

GM is one of many companies working on self-driving vehicles, millions of which could be operating by the early 2030s.

But that’s only one of the radical changes transforming the auto industry to a degree not seen since its earliest days. President Joe Biden wants nearly half of all new vehicles to use battery power by decade’s end. And, by then, connected cars will roll out by the millions.

Beefing up the public charging network is essential to encourage EV sales, said General Motors Chairman and Chief Executive Officer Mary Barra. Potential buyers “need to know they can trust that a charging infrastructure” will make it easy to plug in wherever they travel.

PUBLIC CHARGING NETWORK KEY TO EV SALES

The roll-out is accelerating, backed both by startups like ChargePoint and Electrify America, and billions in new federal funds authorized by the Biden infrastructure

By Paul Eisenstein

bill. The administration wants 500,000 chargers in place by 2030.

Meanwhile, connected car pilot programs are already coming together, including one covering a 100 square-mile grid of Southeast Michigan.

CAUTION REQUIRED IN INFRASTRUCTURE SPENDING But Gary Silberg, a partner and Global Automotive Sector Leader with KPMG, cautions the challenge is to ensure such new infrastructure programs don’t shortcircuit rapid changes in technology the automobility revolution is bringing. “We should be very cautious about throwing billions of dollars into infrastructure because we could wind up backing a technology that becomes obsolete,” he said.

Where to from Here 33

Potential (EV) buyers need to know they can trust that a charging infrastructure will make it easy to plug in wherever they tavel.

Connected cars offer a case in point.

Automakers want a dedicated “V2X” communications network allowing vehicles to not only “talk” to one another but a highway infrastructure. They may lose that battle to the telecom industry which also wants that radio spectrum and says a more cost-effective solution for connected cars is to rely on the existing 5G spectrum.

That could mean that autonomous vehicles will need to operate largely in standalone mode, rather than “off-boarding” digital processing, because there are simply too many gaps in 5G coverage.

Even when it comes to electric vehicles, there are those who question how extensive the infrastructure will need to be.

“Today, about 80% of charging is done at home,” said Pat Romano, the Chargepoint chief executive officer. “And that’s likely to remain the case going forward.”

That’s not to say a nationwide charging infrastructure isn’t needed, Silberg emphasizes. Motorists will need public chargers when they stray away from home.

That network just won’t need to be a 1-for1 replacement for today’s service station infrastructure.

And it will be critical to ensure that the network is flexible enough to evolve with new charging technologies. Ford and Denso, for example, are working on inductive systems that won’t need you to plug in. As with the latest smartphones, you’ll just drive over an inductive pad to wirelessly recharge. Denso is one of several companies developing ways to charge up will driving, with an inductive system built into the road itself.

TOP TO BOTTOM STRATEGY NEEDED Silberg stresses infrastructure programs must be thought through from top to bottom. EVs offer a case in point: where

will the necessary power come from?

The power grid is already creaking, as recent blackouts in California and Texas underscored.

Ironically, EVs could help address the problem. GM, Ford and Stellantis are among automakers exploring “second life” applications for battery packs. Even when EVs are scrapped, many have enough remaining capacity to be repurposed in backup systems to reduce grid disruptions or to level out renewable energy sources like solar and wind.

There is little doubt that there will be a need for significant infrastructural changes to support the automobility revolution, but it will be equally critical to think through what that entails before tossing either public or private money at the problem. • Paul Eisenstein is publisher and editor-in-chief of automotive news site TheDetroitBureau.com.

BIDEN ADMINISTRATION

2022: 46,328 PUBLIC EV CHARGING STATIONS ACROSS THE U.S.

115,245 PUBLIC CHARGING PORTS ACROSS THE U.S.

500,000 PUBLIC EV CHARGING STATIONS AND PORTS ACROSS THE U.S.

34 Where MI's Infrastructure to from Here Problem

The charging devices are embedded in the road, and they provide electricity to vehicles when they pass over or halt on the devices.

KEISUKE TANI ELECTRIFICATION SYSTEM ENGINEER, DENSO

SMART CARS NEED SMART ROADS

By Paul Eisenstein

The nation’s first smart vehicle corridor is set to link downtown Detroit and Ann Arbor. A joint effort pairing the State of Michigan, Ford, Google parent Alphabet, Cavnue and AECOM, it will create dedicated lanes for the use of CAV, or “Connected and Autonomous Vehicles.”

Stations could be added along the way where autonomous vehicles – such as the fully driverless Origin shuttle being developed by General Motors’ Cruise subsidiary – pick up and drop off passengers.

“This partnership will advance transportation in a way that’s sustainable, smarter and safer for generations to come in Michigan,” said Jennifer Aument, AECOM’s global transportation chief executive.

The transportation world will undergo a dramatic transformation this decade.

President Joe Biden wants half of all new vehicles to be battery-powered by 2030.

Autonomous and fully driverless vehicles could become commonplace by then. And by decade’s end, most vehicles are expected to be able to “talk” to one another, passing information about things like traffic and weather conditions.

The challenge will be to turn concept into reality, and Southeast Michigan’s CAV pilot will provide invaluable insight into how to make that happen. The final layout is still being determined but it is expected to “link key destinations including the University of Michigan, Detroit Metropolitan Airport, and Michigan Central Station,” according to the Michigan Department of Transportation.

While focusing on CAV, it may be possible to test out other emerging technologies at some point. Setting up a nationwide charging network is seen as essential to building demand for battery-electric vehicles.

But Denso is one of several companies hoping to eliminate the need to plug in while traveling.

Instead, its dynamic wireless power transfer system uses inductive charging – a large-scale version of the technology widely used for smartphones.

“The underlying mechanism is very simple,” said Denso Electrification System Engineer Keisuke Tani. “The charging devices are embedded in the road, and they provide electricity to vehicles when they pass over or halt on the devices.”

A pilot program launched near Stockholm, Sweden takes an alternative approach.

It requires EVs to have a pickup to tap electrically charged rails in the road, much like slot cars. Meanwhile, U.S. start-up Solar Roadways is developing a system that would, as its name suggests, build solar panels right into the pavement. The power they generate could be pushed into the grid or charge vehicles en route.

Not all these pilot efforts will come to fruition, but they underscore the need to come up with creative solutions to support the upcoming revolution in transportation.

Paul Eisenstein is publisher and editor-in-chief of automotive news site TheDetroitBureau.com.

Where to from Here 35

LESS ACCIDENTS, MORE LANES AUTONOMOUS VEHICLES LIKELY TO IMPROVE EFFICIENCY OF EXISTING INFRASTRUCTURE The way University of Detroit Mercy civil, architectural and environmental engineering professor Utpal Dutta Ph.D., P.E., sees it – autonomous vehicles dominating the roadways one day will expand capacity without increasing the physical footprint, something essential to allowing transportation agencies to maximize revenue in the future and get more out of existing infrastructure.

For example, three-lane divided freeways which now have three 12-footwide lanes, could feature four 9-foot lanes because of the precision autonomous vehicle technology is expected to bring. Currently that’s something that’s not safe with people behind the wheel.

“The accidents we have are just because of (human error), If you can take us out of the driving business, then there most likely are really no accidents,” Dutta said. “You don't have to spend any investment and you don't need any additional funding to make that three-lane freeway to four. Your capacities go up by at least by 25% without any big investment.”

James Martinez is editor of the Detroiter magazine, and a content creation specialist.

36 Where to from Here

ARE WE READY?

COMPANIES HAVE NO TIME TO WASTE AS ENERGY CHALLENGES LOOM

By Karen Dybis

Power outages, electric vehicles, climate change: Michigan’s power grid faces major challenges as state officials and companies look to answer the question residents most want to know: Are we ready?

Time may be the biggest test for DTE, ITC Holdings and Consumers Energy, officials said, considering how important energy is to the state’s growth and how much needs to happen in a tight window.

“We’re up against the clock,” said Linda Apsey, president and chief executive officer of ITC Holdings. “It takes seven to ten years to plan and build the necessary transmission to help meet our renewable energy goals and ensure continued reliability. At a time when extreme weather events are more frequent and our state’s generation portfolio is transitioning away from traditional resources to renewable energy, we simply have no time to waste in expanding our transmission system.”

MODERNIZING THE GRID AND ADDING RESILIENCY DTE, ITC and Consumers agree: The projects they collectively have will create key infrastructure advancements. For example, ITC is working with officials to determine future demand when it comes to electric vehicle (EV) charging and electrification of residential, commercial, and industrial processes, Apsey said.

Safety also matters. To help monitor, analyze and protect the grid, ITC created a proprietary state-of-the-art fiber communications network allowing it to analyze grid security, create a reliable flow of power and provide information for a more “dynamic and intelligent grid,” Apsey said.

At DTE, “we are putting our customers first when we plan for a modernized grid,” said Sharon Pfeuffer, DTE’s vice president of distribution engineering.

“In the short term, we are focusing on work that can give us greater reliability and resiliency in the face of the unusual storm patterns we saw last summer. Our Tree Trim, Pole Top Maintenance and Customer Excellence programs are examples that are supporting all of our customers,” Pfeuffer said.

For the long term, Pfeuffer said DTE created a distribution grid plan, which it filed with the Michigan Service Commission last fall. It is a 10- to 15-year vision that includes adding another 700 megawatts of distribution capacity to the grid, and investing in additional grid hardware, software, and analytics that will support customers’ energy choices.

At a time when extreme weather events are more frequent and our state’s generation portfolio is transitioning away from traditional resources to renewable energy, we simply have no time to waste in expanding our transmission system.

LINDA APSEY PRESIDENT AND CHIEF EXECUTIVE OFFICER, ITC HOLDINGS

Where to from Here 37 GOAL: 2040 NET ZERO CARBON EMISSIONS

GOAL: 2022 INTELLIGENT GRID

GOAL: 2030 EV TRANSFORMATION

ELIMINATING COAL FASTER THAN PLANNED Consumers Energy President and chief executive officer Garrick J. Rochow said his company seeks to be a leader in addressing climate change and designing “a cutting-edge electric distribution system.”

“Actions matter, which is why we recently announced to eliminate coal as a fuel source for electricity by 2025 – 15 years faster than originally planned,” Rochow said. “This will also help us achieve 60% emissions reductions by 2025 – faster than President Biden’s goal – and on the path to net-zero carbon emissions by 2040. The plan will make the company one of the first in the nation to go coal-free.”

Having a more modern power grid will also help Consumers deliver more reliable electricity, Rochow said. One way it will do this is through automation loops.

“They greatly reduce the duration of customer outages by detecting nearby outages and then automatically reconfigure the electric grid to restore power to customers within seconds, without the need to dispatch crews,” Rochow said. “In 2021, this technology has avoided over 24 million customer outage minutes and prevented more than 27,000 outages.”

POWERING 1 MILLION EVS BY 2030 Consumers also wants to power Michigan’s EV transformation, Rochow said, with the goal “to power 1 million EVs in the communities we serve by 2030.”

“EVs are good for people, the planet and Michigan’s prosperity,” Rochow said. “EVs are becoming more affordable, and they cost less to run than cars with internal combustion engines. They’re powered by a cleaner energy grid. And they will help Michigan’s automakers lead their industry for the next century.”• Karen Dybis a freelance writer in Metro Detroit.

38 Where to from Here

ENERGY IN MANUFACTURING Energy reliability, affordability, and sustainability remain critical issues to Michigan’s manufacturing base, its competitiveness, and the state’s position as a leader in automotive that drives innovation. The Detroiter asked some key manufacturers to weigh in on the importance of energy infrastructure to their success in the decades ahead.

33

HOWARD UNGERLEIDER

BRUCE SMITH

PRESIDENT AND CHIEF FINANCIAL OFFICER, DOW; CHAIR OF BUSINESS LEADERS FOR MICHIGAN

CHAIRMAN AND CHIEF EXECUTIVE OFFICER, DETROIT MANUFACTURING SYSTEMS

Government and business must continue to work together to establish sound policies and advance sustainable investments that improve all aspects of Michigan’s and our nation’s infrastructure. This collaboration is vital to supporting job creation, advancing national and global commerce, and maintaining America’s competitive advantage.”

As a manufacturer, we need reliable, affordable, clean energy to run our plants and create the products our clients entrust in us. These essential requirements allow us to be a leader in manufacturing in Michigan and compete with other regions in the U.S. and in the global marketplace, thus granting us the ability to employ talented hard-working people in our community.”

JOHN J. WALSH

FRÉDÉRIC B. LISSALDE

PRESIDENT AND CHIEF EXECUTIVE OFFICER, MICHIGAN MANUFACTURERS ASSOCIATION

PRESIDENT AND CHIEF EXECUTIVE OFFICER, BORGWARNER INC.

Energy is the life blood of Michigan’s manufacturing-based economy. Whether it is natural gas necessary for steel production, fuel for the transportation of raw materials and finished goods, or electricity to run manufacturing operations, energy is a critical component to our state’s competitiveness. Michigan’s energy policy must ensure reliable energy and delivered at a competitive price as these costs are incorporated into the base cost of every product produced.”

To stay ahead of the mobility industry’s needs and remain globally competitive, Michigan needs an enhanced energy infrastructure including DC fast charging stations, broadband capabilities (think vehicle to everything) and hydrogen infrastructure.

These advancements should align with global climate change goals. This is important for BorgWarner as a commitment to sustainability and carbon neutrality are at the forefront of our strategy.”

%

IN 2020, THE INDUSTRIAL SECTOR ACCOUNTED FOR ABOUT 33% OF TOTAL ENERGY CONSUMPTION IN THE U.S. WITH MANUFACTURING THE GREATEST CONSUMER WITHIN THE SECTOR BY A WIDE MARGIN.

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Massachusetts, Detroit, Mississippi, Maryland, and New Jersey, including Bellagio, Mandalay Bay, MGM Grand, and Park MGM.

network, combined with the personal attention of experienced professionals.

Detroit Thermal Todd Grzech 541 Madison Ave. Detroit, MI 48226 313.963.3692

HIM (Hired In Michigan) CJ Eason 24901 Northwestern Hwy, Suite 416 Southfield, MI 48075 248.237.3600

www.detroitthermal.com

www.hiredinmichigan.com

Midwest Steel

Hired In Michigan Employment Agency is Detroit’s largest monthly job expo event featuring hiring employers from several industries. Our job expos connect businesses with experienced candidates, alumni college graduates, entrylevel candidates, apprenticeship candidates, skilled trades workers, bilingual candidates, internship candidates, older workers, military veterans, union workers, individuals seeking immediate employment.

Tom Broad 2525 East Grand Blvd Detroit, MI 48211-2001 313.873.2220 www.midweststeel.com Midwest Steel, founded in 1968, is headquartered in Detroit, Michigan. With offices in Michigan, Indiana, Alabama, Florida and Canada. Since opening their doors they have been delivering quality steel services to customers, and continue to LEAD the Steel Industry.

100 years of energy for Detroiters. Unique among Detroit utilities, Detroit Thermal delivers clean steam energy through an extensive, redundant, underground network that runs throughout the greater downtown Detroit area and services more than 100 buildings. The steam is used for space heating, domestic hot water heating, absorption chilling, humidification, cooking, sterilization and beer brewing.

Developing KIDS Kimberly Johnson 19321 West Chicago Detroit, MI 48228 888.294.6554 www.developingkids.org

BDO USA, LLP MGM Grand Detroit Louie Theros 1777 Third Street Detroit, MI 48226-2498 313.465.1777 www.mgmgranddetroit.com MGM Resorts International is an American global hospitality and entertainment company operating destination resorts in Las Vegas,

Amy Whipple 2600 West Big Beaver Rd., Suite 600 Troy, MI 48084-0178 248.362.2100 www.bdo.com BDO provides assurance, tax, advisory and consulting services to a wide range of publicly traded and privately held companies. We offer a sophisticated array of services and the resources and capabilities of the BDO global

Developing Kingdoms In Different Stages (Developing K.I.D.S.) is a nonprofit organization serving its community through three areas: prevention, family management, and community support. The word Kingdoms is used as a synonym for communities. The word Stages represents the process in how we service communities. The underlying philosophy is that leaders will be developed and nurtured in every community that we serve. Therefore, that Kingdom (community) will be initially serviced in a stage that reflects the voice and needs of that community. The mission is fulfilled through efforts of reaching out to families instead of

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Whether at home or on the go, Blue Cross Blue Shield of Michigan is with you every step of the way. With the largest network of the highest-quality doctors and hospitals in Michigan, Blue Cross gives you access to the care you need however, wherever and whenever you need it.

Including our 24-Hour Nurse Line, online visits, mental health support, urgent care and more.

So, you’re covered anytime, anywhere. We’re here for it all and always will be.

Learn more at HereForItAll.com Blue Cross Blue Shield of Michigan and Blue Care Network are nonprofit corporations and independent licensees of the Blue Cross and Blue Shield Association.

W004960

42 Membership individuals. There is tremendous support for youth, but our priority is to connect with the family and host activities for them to work together; hence building and increasing strong communities. We serve over 600 youth, ages 5-24, and their families annually. All programs and services are provided at no cost to our participants.

Facebook Alena Casey 1601 South California Ave. Palo Alto, CA 94304 650.543.4800 www.facebook.com ITG Brands Erika Farley 714 Green Valley Rd. Greensboro, NC 27408 989.928.4565 www.itgbrands.com Moment Strategies Alexis Wiley 12711 East Jefferson, #15245 Detroit, MI 48215 313.510.7222

Association for Advancing Automation www.automate.org

Detroit 2030 District www.2030districts.org

Autism Alliance of Michigan www.aaomi.org

Detroit Horse Power www.detroithorsepower.org

Autokiniton www.autokiniton.com

Digital Detroit LLC www.digitaldetroitllc.com

Automobility Enterprises Inc. www.automobilityenterprises.com

Downtown Boxing Gym Youth Program www.downtownyouthboxing.org

Aviot Energy www.aviot.ca

Flint Downtown Development Authority www.flintdda.org

Cavnue www.cavnue.com

Granny Farm LLC www.grannyfarm.com

Center for Community Progress www.communityprogress.org

Grosse Pointe Moving and Storage www.grossepointestorage.com

Central United Methodist Church of Detroit Community Development Corporation www.noahprojectdetroit.org

Guidehouse www.guidehouse.com

Chamber Music Detroit (313) 335-3300

www.momentstrategies.com Tylin International Robert Gorski 211 North 4th Ave., Suite 2A Ann Arbor, MI 48104 773.515.1207 2

Chase Telecom Inc. www.chasetelecom.ca CitizenDetroit www.citizendetroit.org

www.tylin.com

Citizens Research Council www.crcmich.org

T.Y. Lin International Group is a global, multidisciplinary engineering services firm recognized for solving some of the most significant infrastructure challenges of our age.

City Institute www.thecityinstitiute.com

GENERAL MEMBERSHIP

Cloud Cannabis Company www.cloudcannabis.com

Accounting Aid Society www.accountingaidsociety.org

Communities In Schools of Michigan www.cismichigan.org

ACG Detroit www.acg.org

Community Housing Network, Inc. www.communityhousingnetwork.org

Arc of Northwest Wayne County www.thearcnw.org

Health and Safety For All www.healthandsafetyforall.com Hemlock Semiconductor www.hscpoly.com Human-i-t www.human-i-t.org IBEW Local 58 www.ibewlocal58.org Infrastructure Engineering of Michigan www.infrastructure-eng.com Jackson National Life Insurance www.jackson.com Kapor Center www.kaporcenter.org Math Corps www.mathcorps.org MetCredit www.metcredit.com

Michigan Metal Coatings Co. www.michmc.com Michigan Pipe Trades Association www.michiganpipetrades.com Monique Woods Agency www.moniquewoodsagency.com One Stop Property Maintenance LLC www.ospmain.com

Developing K.I.D.S. High-Quality, Free Programs in Detroit After School Programs for K-12th graders Summer employment for youth ages 14-24 Summer Program for K-8th graders Alumni Support fAMILY & community dEVELOPMENT

Follow Us @developingkids

Workshop Focus Includes: Literacy College Readiness Entrepreneurship Life Skills social Development Mental Health Wellness Community Service Academic Enrichment Homework Help Summer Employment

Oswald www.oswaldcompanies.com PEM Motion www.pem-motion.com Quality Metalcraft and Experi-Metal, Inc. www.qmc-emi.com Redford Township www.redfordtwp.com Roti Bowl & Soul www.rotibowlsoul.com SERVPRO Disaster Recovery Team www.servproromulustaylor.com Sigred Solutions www.sigredsolutions.com Sterling Heights Regional Chamber of Commerce www.shrcci.com The Eddystone www.eddystonedetroit.com The Fisher Group LLC www.thefishergrp.com The NOAH Project (313) 965-5422 Ure's Country Kitchen & Variety Inc. www.ureskitchen.ca Varnum LLP www.varnumlaw.com Weitz & Luxenberg PC www.weitzlux.com

Where Past Meets Present Real World Escape, Old World Charm A season of discovery awaits. The Woodlands Activity Center and Mackinac Island Pizza Co. - serving the only Detroit-style pizza on the Mackinac Island - will make their debut during our 136th season.

Welcome you to America’s Summer Place.

1-800-33GRAND • GRANDHOTEL.COM

44 Membership

OFFICIAL BALLOT Dear Chamber member: This ballot contains names of candidates to be nominated for three-year terms on the Detroit Regional Chamber Board of Directors. Space is also provided for written nominations.

Please complete and sign this ballot and return it by June 10, 2022, via fax to 866.774.7410 or mail to Detroit Regional Chamber, Attn: Chair, Nominating Committee, One Woodward Avenue., Ste. 1900, Detroit, MI 48226.

TO ELECT DIRECTORS OF THE DETROIT REGIONAL CHAMBER The following are proposed for three-year terms on the Detroit Regional Chamber’s Board of Directors ending June 30, 2025. Place a mark next to the name(s) to cast your vote or select all proposed candidates.

Select all proposed candidates for Board Priscilla Archangel President, Archangel and Associates

Ronia Kruse President and Chief Executive Officer, OpTech LLC

Carolyn Cassin Chief Executive Officer and President/General Partner and Co-Founder, Michigan Women Forward

David Lewis President, AT&T Michigan

Bud Denker President, Penske Corporation Matthew Godlewski Vice President, International Government Relations, Ford Motor Company Kouhaila Hammer President and Chief Executive Officer, Ghafari Associates Kenneth Hayward Vice President, Special Assistant to the President for Community Relations, Blue Cross Blue Shield of Michigan

Lisa Lunsford Cofounder and Chief Executive Officer, Global Strategic Supply Solutions David Parent Managing Partner, Deloitte LLP William Phillips President and Chief Executive Officer, PIE Management, LLC Peter Quigley President and Chief Executive Officer, Kelly Rick Hampson Principal, Arctaris

Errol Service President, Jam2, Inc. Suzanne Shank President and Chief Executive Officer, Siebert Williams Shank & Co. Arn Tellem Vice Chairman, Pistons Sports and Entertainment Terence Thomas Principal, Thomas Group Consulting Jason Tinsley Michigan Market President, JP Morgan Private Bank Carla Walker-Miller President and Chief Executive Officer, Walker-Miller Energy Services

Charles Scrase Site Director, Google Ann Arbor, Google

If you wish to nominate candidates not listed above, please use the space below: (Name of Chamber member completing form. Please print clearly.)

By:

Title:

Company:

Date:

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