Posted on December 14, 2021
DredgeWire Exclusive
By Judith Powers
“So my message to the American people is this: America is moving again, and your life is going to change for the better,” President Joe Biden said as he signed the Infrastructure Investment and Jobs Act (IIJA) on November 15th . His energetic advocacy for this bill followed up on his campaign promise to “rebuild the backbone” of the country.”
The $1.2 trillion bill will fund improvements in nearly every public area of concern and was supported whole-heartedly by legislators on both sides of the aisle, hence its nickname, BIF, the Bipartisan Infrastructure Framework. The votes in both the House and Senate showed nearly universal support by Democrats, strong Republican support in the Senate, and sufficient Republican “yeas” in the House to comfortably pass the bill. The IIJA raises federal spending by $579 billion above previously-expected levels according to the Congressional Budget Office.
Money will be allocated over a five-year period, with Congress receiving regular detailed reports on projects receiving IIJA funding.
Civil Works
The Act provides $17.1 billion for U.S. Army Corps of Engineers’ (USACE) Civil Works programs, projects, and activities to address current and future water resources infrastructure needs. The signing of the Act began a 60-day countdown for the Chief of Engineers to submit a submit a detailed spend plan to Congress. This report is due on January 14, 2022.
Prior to passage of the bill, the Corps Districts, Divisions and Headquarters began analyzing dredging and waterway projects to be considered for funding, and this process continues.
Gene Pawlik of the USACE HQ Public Affairs office said “The development of the report to Congress is an ongoing collaborative process. Working within the administration, USACE will ensure the programs, projects and activities included in the report for funding meet congressional guidance in the legislation and support Administration priorities. The report will be cleared by Administration officials before it is submitted to Congress in time to meet the 60-day requirement.”
The first projects to be advertised will be for FY2022.
The bi-annual Waterways Development Acts (WRDAs) have authorized changes and projects in the nation’s waterways, some of which have never been funded, though the port and waterways industries have worked diligently over the years to increase the Civil Works portion of the annual budget. The IIJA provides what one observer called “a tidal wave of federal spending,” expected finally to enable previously-authorized, unfunded projects, as well as ongoing and new projects, to go forward. The IIJA refers to previous WRDAs and other laws that outline authorizations, procedures, and restrictions, providing a smooth transition into the new funding regimen.
One Federal Decision formalized and made permanent, intended to streamline project permitting
A significant item in the Act is its codification of the One Federal Decision process which eliminates the wasted time and increased project cost caused by prior permit application procedures.
OFD was initiated as a memorandum of understanding (MOU) by the Office of Management and Budget (OMB) under the Trump Administration on March 20, 2018, implementing Section 5 of Executive Order 13807, which states “Federal agencies shall follow a more unified environmental review and authorization process.” The MOU directs all Federal agencies with environmental review, authorization, or consultation responsibilities for major infrastructure projects to develop a single Environmental Impact Statement (EIS) for such projects, sign a single Record of Decision (ROD) and issue all necessary authorizations within 90 days, subject to limited exceptions.”
The directive eliminates the necessity for project planners to apply for and receive permits from multiple agencies, followed by an ROD from the U.S. EPA, a time consuming process that has been in place for decades that can delay the start of a project indefinitely.
Division J of the Act outlines appropriations for Corps of Engineers port and waterways funding in Title III: Energy and Water Development and related agencies. (Page 930 of the PDF file.)
The amounts stated will remain available until expended, and the projects are not subject to the limitation of project costs stated in the Water Resources Development Act of 1986 (PL 99-662).
For each heading, 60 days after the signing of the Act (Jan. 14, 2022) the Chief of Engineers is directed to submit to the House and Senate Appropriations Committees a detailed spend plan that includes lists of studies and projects selected to be funded in fiscal years 2022 and 2023, including new projects selected. No later than 120 days after passage of the Act, the Chief of Engineers must submit a monthly report on the allocation of funds for each heading.
In an overview of the funding, allocations are:
Investigations. $150,000,000. This section specifies amounts to be used to complete ongoing studies and previously authorized studies.
Construction. $11,615,000,000. The Secretary of the Army may initiate additional new construction starts with these funds.
Mississippi River and tributaries. $808,000,000 to remain available until expended. $258,000,000 will be obligated within 90 days of enactment of the Act, to address emergency situations at Corps of Engineers Federal projects caused by natural disasters.
Operations and Maintenance. $4,000,000,000. This heading specifies amounts to be used in fiscal years 2022, 2023, and 2024.
Regulatory Program. $160,000,000 to remain available until September 30, 2026.
Flood Control and Coastal Emergencies. $251,000,000 to remain available until expended.
Stakeholders in the waterways industries, including advocacy organizations, were quick to respond to IIJA’s passage on November 8 and the signing of the legislation on November 15. The following statements from dredging industry people describe the benefits of the Act to their segments of the industry.
Great Lakes Dredge & Dock Co, LLC (GLDD)
William Hanson told DredgeWire: “GLDD is pleased that the Administration and Congress continue to see the benefit of funding the Corps of Engineers and its dredging program including port deepening, maintenance dredging, and coastal protection. While robust annual funding continues to increase for the Corps, the Corps program will also benefit from both the IIJA and the IDA Supplemental” (a $5 billion dollar storm supplement that was attached to the first continuing resolution.)
“Accomplishing all this work will be a challenge for all stakeholders, but we have partnered well in the past in previous surge workload periods and are already working with the Corps to meet the demand. GLDD is among the many US dredgers who have invested in new dredge capacity for the US market, so we really need and welcome this infrastructure funding.”
NSSGA
NSSGA Board Chair Darin Matson (left) and NSSGA President & CEO Mike Johnson (right) at the signing of the Infrastructure Investment and Jobs Act (IIJA) at the White House on Nov.15th. Photo courtesy of NSSGA.
The aggregates industry is a major user of dredging equipment that produces sand and gravel building materials for construction. Dredge manufacturers have pioneered important innovations, especially in the area of increasing and monitoring production, and enabling deeper dredging depths when designing dredges for aggregate production.
The National Stone Sand and Gravel Association (NSSGA) is the aggregates industry advocate that “advances public policies and advocates for safe, responsible use of aggregates.” NSSGA President and CEO Michael Johnson attended the signing of the IIJA at the White House on November 15th.
NSSGA posted Johnson’s comment on its website: “With President Biden’s signature affixed upon the Infrastructure Investment and Jobs Act (IIJA), the most consequential infrastructure investment in our nation’s history is now law. NSSGA was proud to represent the aggregates industry at the White House for this historic event, as our advocacy efforts over the last six years were paramount in delivering today’s success.”
Contacted for an explanation of the group’s priorities, NSSGA’s communications officer replied that the group’s four priority accomplishments were:
1. The IIJA provides strategic exemptions to a broad expansion of Buy America for aggregates, stone sand and gravel, cement and cementitious materials, asphalt binder and related inputs. This exemption frees the industry of restrictive regulations imposed on all federal projects that would have negatively impacted aggregate producers.
2. The Act incorporates the ROCKS Act (Rebuilding Our Communities by Keeping aggregates Sustainable Act of 2021) which NSSGA has been advocating for over two years. The legislation establishes a Department of Transportation working group to study and enact polices that improve local access to aggregate deposits.
3. Inclusion of One Federal Decision, which enhances permit streamlining and eliminates duplicate permitting application and review without sacrificing environmental protection and diligent review. These policies will help leverage federal dollars and maximize the historic funding levels authorized in this bill.
4. NSSGA supports the REGROW Act, which is included in the IIJA. It will fund mitigation of almost 56,000 orphaned oil and gas wells across the nation, providing jobs and a market for aggregates while ridding the environment of the danger and pollution caused by these wells.
DSC Dredge
By far the most important parts of the bill for manufacturers of small and medium dredges are the highway and airport expansion segments, said William Wetta, chief technical officer of DSC Dredge in a phone conversation with DredgeWire on December 9th. With $200 billion allocated for highways, and a generous amount to airports, the need for aggregates will vastly increase business for the aggregate mining industry, and in turn for equipment manufacturers, he said. He added that the waterways allocation, though smaller, has already affected the dredging industry. All the large contractors are buying new equipment, and DSC is seeing a small part of that increase.
In addition, Wetta said that the Act continues the FAST Act (Fixing America’s Surface Transportation), a 2015 bill that provided funding certainty for surface transportation infrastructure planning and investment from 2016 through 2020.
“We haven’t seen funding like this since Eisenhower’s interstate highway project,” according to Wetta.
William Wetta, his wife P.J. Wetta, and Charles Johnson, director of domestic dredge sales at DSC, all “lobbied hard” for the bill on Capitol Hill on their own and at NSSGA’s annual Legislative and Policy Forum in September, in which the aggregate industry conducted more than 100 meetings with Republican legislators and 20 meetings with Democratic legislators, pushing for passage of the IIJA.
Ellicott Dredges
Steve Miller, domestic sales manager for Ellicott Dredges, told DredgeWire that the Act will “most certainly have an impact” on the company, which builds small and medium sized dredges for industrial projects and inland waterway maintenance.
There will be a demand for building materials, and sand and gravel dredge manufacturers will benefit, he said. Ellicott’s factories in Baltimore and Wisconsin have been operating at capacity throughout the pandemic, and demand has been such that all the dredge models are sold out. But the factories are still working to capacity and will be prepared for the demand for navigation, sand mining and small dredges for industrial applications when projects are awarded, he explained.
In the Buy America rule, there will be a demand for U.S-made steel, and if the price of steel rises it may become profitable to mine iron ore tailings, which exist in Minnesota and Nebraska. He referenced a dredge Ellicott supplied to an iron tailings operation six years ago.
“We could see that emerge again,” he said.
“The bill will raise the tide all over the industry, higher for some than others,” said Miller, “but with everyone benefitting.”
Neptune Flotation
Blake Elder, president of dredging supplier Neptune Flotation, said in a phone conversation that “We’re glad to see a part of the bill geared toward port and waterways infrastructure. It’s been a long time coming, for our industry to be able to improve our ports,” he said. “Under the Act, the dredging industry will continue to grow, and our business will benefit by it. We do a lot of supply to dredging projects and will continue to innovate and improve our products and costs, which will benefit large projects,” he said.
Elder mentioned recent company developments that have been good for dredging, including a pipe float that can mount lights to identify pipelines according to Coast Guard regulations, and a pump station platform for mounting large dewatering pumps.
AAPA
The American Association of Port Authorities (AAPA) posted this statement on its web site:
“This Federal legislation is a win for maritime ports across the U.S. and the effects of this more than $5.2 billion in direct funding for seaports will bolster programs like the Port Infrastructure and Development Program (PIDP), which will fund port equipment and facilities improvements; the Army Corps of Engineers Coastal Navigation Program, which will dredge and maintain Federal coastal navigation channels; and initiatives like Marine Highways funding, on- and near-dock rail infrastructure and safety funding, and emissions reduction upgrades—just some of the benefits of this infrastructure bill.”
AGC
Stephen Sandherr, chief executive officer of the Associated General Contractors (AGC), which represents dredging contractors as well as industrial land-based contractors, stated online on November 8:
“The reason the Bipartisan Infrastructure Bill passed in the House today is because a majority of Representatives understand that this measure will provide significant, tangible improvements to their lives of the constituents and the success of their local employers. That is because the bill provides the kind of funding needed to modernize the country’s aging and overburdened infrastructure. The legislation also maintains the policy of One Federal Decision, cutting the amount of time needed for federal reviews of infrastructure projects.
Because of today’s vote, state and local officials will be able to invest in a more efficient supply chain network. They will also be able to improve roads and bridges to make them safer and more reliable. Metro areas will be able to better maintain and expand transit systems. And water authorities will be able to further safeguard the quality of local drinking water, among other improvements funded by this bill. The measure also provides needed investments to make infrastructure more resilient to extreme weather events.
Once the President signs this bill into law, (it was signed on Nov. 15th) our members are ready to begin the … work of rebuilding the nation’s infrastructure. They will also begin the work of building rewarding careers for a generation of new construction professionals because of this measure. Ultimately, these new infrastructure investments will provide a needed boost for the construction industry while making our economy more efficient.”
Cable Arm Clamshell
One of two 75-cubic-yard Cable Arm buckets under construction. They have open footprints 22’ long x 29.5’ wide, handled by 2.5” wire rope with 250,000 pound line pull, to achieve maximum production in the channel maintenance and deepening projects funded by the IIJA.Photo courtesy of CableArm.
Ray Bergeron, whose company manufactures custom environmental and maintenance clamshell buckets, is building a 75-cubic-yard bucket, his largest so far. He told DredgeWire that he considers it and his other buckets as strategic tools for the increased dredging enabled by the IIJA. He noted that “Silt falls into the deepest hole,” and deeper channels will require more maintenance dredging. His high-capacity buckets are effective for silt and mud because of their ability to dewater the material before placement in a scow. He anticipates greater demand for his larger buckets as the number of channel maintenance projects increases, and as their depth increases.
Bergeron uses only U.S.-made steel, so he is already on board with Buy America.
How it Happened
President Biden announced his intention to present an infrastructure bill in Pittsburgh in March 2021. On June 4 Rep. Peter DeFazio (D) introduced the original $2.4 trillion bill in the House as the INVEST in America Act. Republicans and some Democrats in the Senate disagreed with the scope of beneficiaries of the bill, and a working group of five Democratic and five Republican Senators stepped forward to re-write bill. Their ranks soon expanded to 22 evenly divided by party and referred to as “G22”. They pared it down by eliminating certain areas and decreasing amounts on many other areas to produce a smaller, $1.2 trillion bill. President Biden stated that he was willing to work with legislators to achieve what was possible, and to accept that the bill would not include everything he had originally included. That is the reality of politics, he said. On July 28, the President and the working group announced that they had agreed on the details of the renamed bill, an unprecedented investment in the nation’s infrastructure, and the Senate immediately took up the IIJA for consideration.
The Senate passed the bill on August 10th by a vote of 69 to 30. Forty-eight Democrats, two independents and 19 Republicans voted to pass the bill, 30 Republicans voted against, and one Republican did not vote.
The House passed the bill on November 5th by a vote of 228 to 206. Two hundred fifteen Democrats and 13 Republicans voted to pass the bill, 6 Democrats and 200 Republicans voted against.
The bill includes $550 billion in new funds for transportation, broadband and utilities; $110 billion for roads, bridges, and other major projects, $66 billion in freight and passenger rail, including upgrades to Amtrak, and $39 billion into public transit systems; $65 billion into expanding broadband — a priority after Covid-19 demonstrated the necessity for broadband in every home; and $55 billion for improving water systems and replacing lead pipes.
IIJA Authors
After finalizing the bill for presentation to Congress, Sen. Angus King (I) member of G22, the 22 Senators that re-drafted the bill, posted on his site: “Together, we’ve crafted a bipartisan bill that will significantly improve our nation. It wasn’t easy – but it was important, and we got it done. Now, the American people will reap the rewards.”
