Failing Grades: Cards in Place for Building Back a Better Michigan

Failing Grades

CARDS IN PLACE FOR BUILDING BACK A BETTER MICHIGAN

BY SUSAN THWING

N

o one likes bad grades. But when Michigan received a D+ rating in the American Society of Civil Engineers (ASCE) Infrastructure Report Card, no one disagreed with the assessment. Michigan has long battled failing roads, bridges, and energy systems—and finding the funding solutions to pay for repairing them. Even in 2018—the year the ASCE report was released—Governor Gretchen Whitmer ran on the campaign slogan of “Fix the Roads.”

Since 1998, ASCE has issued the Infrastructure Report Card, and beginning in 2001, the Report Card has been released every four years. Pothole-ridden roads, bridges propped with temporary supports, sinkholes destroying homes, and closed beaches were all indications Michigan had a problem.

This April, even President Biden seemed to concur with the grading when announcing the Infrastructure Investment and Jobs Act. The bill is a plan that is expected to be approved this fall that includes a $2.3 trillion infrastructure plan with an anticipated more than $7.3 billion going to Michigan.

SO, WHAT’S WRONG?

To define infrastructure, ASCE includes “fundamental facilities and systems necessary for Michigan’s economy to function. Roads, bridges, schools, water and sewer systems, dams, railways, and energy systems are categories of infrastructure that directly affect our ability to live, work, and play.”

As the report states “Quality infrastructure allows Michigan to be a front-runner in research and development, manufacturing, farming, and tourism. The transportation system gets people to work every day or up north for weekends. Water systems deliver clean drinking water to our homes, communities, and businesses. School buildings provide a safe place for children to learn. Stormwater and wastewater treatment systems protect neighborhoods from floods and our lakes, rivers, and beaches from contamination.”

In other words, right now, the lifeblood of the state is not functioning successfully. And failing infrastructure is a big order to fix.

The 2018 ASCE Michigan Report Card is being used as a tool used to help residents, businesses, and policymakers understand the state of Michigan’s infrastructure, and outlines the specific problems. Biden’s plan earmarks dollars to make solutions and improvements within reach.

According to the initially proposed bill, Michigan is expected to get $7.3 billion for highways and $563 million for bridge replacements over a five-year period.

Specifically the plan notes these issues in Michigan: % Roads and bridges: In Michigan there are 1,219 bridges and over 7,300 miles of highway in poor

Michigan is expected to get $7.3 billion for highways and $563 million for bridge replacements over a five-year period.

condition. Since 2011, commute times have increased by 4.6 percent in Michigan and on average, each driver pays $644 per year in costs due to driving on roads in need of repair. % Public transportation: Michiganders who take public transportation spend an extra 67.7 percent of their time commuting and non-White households are 5.6 times more likely to commute via public transportation. 17 percent of trains and other transit vehicles in the state are past useful life. % Resilient infrastructure: From 2010 to 2020, Michigan has experienced 19 extreme weather events, costing the state up to $5 billion in damages. % Drinking water: Over the next 20 years, Michigan’s drinking water infrastructure will require $13 billion in additional funding. % Home energy: In Michigan, an average low-income family spends

8-10% of their income on home energy, forcing choices between paying energy bills and buying food, medicine or other essentials. % Clean energy jobs: As of 2019, there were 125,365 Michiganders working in clean energy, and the

American Jobs Plan invests in creating jobs advancing clean energy production by extending and expanding tax credits for clean energy generation, carbon capture and sequestration and clean energy manufacturing.

The plan also outlines deficiencies in housing, broadband, caregiving services/childcare, and veterans health.

To help alleviate the issues, and begin a path to rebuilding, the legislation will add $550 billion in new funding for the nation’s roads, bridges and other physical infrastructure and related programs. Based on state-bystate allocations, a break down by the Detroit News, indicates Michigan stands to receive: % $7.3 billion in federal highway aid % $563 million for bridge replacement and repairs % $1 billion in federal investments in buses, rail lines and other means of public transportation % $100 million to help extend broadband Internet coverage % Between $200 million and $300 million a year to pay for environmental projects in and around the

Great Lakes % A portion of $7.5 billion for building charging stations across the U.S.

“But it is important to note that this is not all new money,” explains ESD President Kirk Steudle, Econolite’s Senior Vice President and former Director of the Michigan Department of Transportation (MDOT), referring to the over $5 billion Michigan currently receives in federal funding. The new bill allocates just $1.7 billion in new money over the next five years. Beyond that, new or continued funding is not guaranteed.

“It does include the reauthorization of the current highway and transit funding that is set to expire this year,” Steudle said. “So, the state must do something, or the entire program stops.”

The federal bill isn’t the only measure working to reverse the aging

In the 2010s, Michigan experienced 19 extreme weather events, many causing flooding.

MICHIGAN OVERALL GRADE 2009: D 2018: D+

infrastructure in Michigan. In January 2020, the State Transportation Commission (STC) authorized the Michigan Department of Transportation to issue $3.5 billion in bonds over four years to finance infrastructure improvements. In addition, the Rebuilding Michigan Program (20202024)—a program to rebuild the state highways and bridges that are critical to the state’s economy and carry the most traffic—launched nearly two dozen state highway projects in the spring throughout the state as part of the 2021 Michigan Department of Transportation construction season.

So far, the Rebuilding Michigan Program dashboard reports 47 projects, with 17 roads projects completed and eight bridge repairs in progress.

It’s progress, said Steudle, but the key to any successful foundational improvement is to look ahead, far ahead, strategically, taking what has already been accomplished and planned and moving it forward alongside new ideas.

“The 21st Century Infrastructure Committee under Governor Rick Snyder’s administration made many of the same recommendations. While a few have been enacted, many remain largely ignored,” he explains. “The current generation is benefiting from transportation investments made by prior generations, But right now they are not looking ahead to the future. These programs need to immediately take shape to maintain the economic backbone of our great county. Economic prosperity for Michigan— and our country—requires efficient methods of moving people, goods and information. We must invest the time and resources in an infrastructure that makes that happen.”

Looking ahead, with the expected passage of the Infrastructure Investment and Jobs Act, and the culmination of other Michigan rebuilding programs, when the next ASCE Report Card is issued in 2022, chances are Michigan will receive a much better grade.

DTE INVESTS IN INFRASTRUCTURE

Energy infrastructure advancements are underway via DTE Energy. Over the next three years, DTE Energy recently announced it will invest $110 million to install 92 miles of new pipe and upgrade 9,000 meters in the Grand Rapids area.

The effort, part of the company’s Gas Renewal Program, will further strengthen the reliability of natural gas delivery and significantly reduce methane emissions. The company’s Three Mile Road Station, officially opened on Aug. 25, will serve as a hub for the Gas Renewal Program operations across western and northern Michigan.

The new 19,000-square-foot DTE Gas campus will employ 34 field crew members, 21 office staff and more than 100 contract workers who will perform year-round service in support of the Gas Renewal Program.

“The opening of this facility is part of our multi-year, statewide Gas Renewal Program in which we’re investing $3.5 billion to replace cast-iron and steel pipe with safer, more reliable and environmentally friendly materials,” said Matt Paul, president and chief operating officer at DTE Gas. “The Three Mile Station will help us work more efficiently and collaboratively throughout greater Michigan as we move forward in completing this important work.”

The replacement pipe installed through the Gas Renewal Program is made from durable, flexible plastic that helps reduce methane emissions. The Gas Renewal Program is a key component in DTE’s commitment to achieve net zero carbon emissions across its electric and gas operations by 2050. When completed, the Gas Renewal Program will reduce methane emissions by an amount equivalent to taking 100,000 cars off the road.

“The new pipe will also support our ability to transport new sources of energy as technology advances,” explained Paul. “Our infrastructure already transports renewable natural gas created by capturing methane from landfills, dairy farms and wastewater treatment plant byproducts. In fact, renewable natural gas is currently offered as part of our voluntary Natural Gas Balance program designed to help our customers reduce their carbon footprint.”

The project represents DTE’s proactive approach to serving customers in the growing area. The nearby Wealthy Station will continue to serve as a primary service center for gas operations and together with the Three Mile Road facility will support DTE’s mission to provide safe, reliable, affordable gas to area customers.