Now that President Joe Biden has signed the Infrastructure Investment and Jobs Act (IIJA), the focus turns to determining the best and, hopefully, most efficient means to invest the $18 billion to $20 billion slated for Pennsylvania.
Our team of energy and infrastructure experts has analyzed the bill and offers its views on this once-in-a-generation opportunity.
Adam Pope, Senior Director — Bridging the transportation funding gap
One of its most anticipated aspects is the significant investment that will be made in Pennsylvania’s transportation sector over the next five years. It’s no secret to the millions of people who traverse the state’s roads and bridges each day that the enormous lack of needed infrastructure funding has left our highways and bridges in a constant state of disrepair.
In fact, a recent report released by TRIP, a national transportation research institute, found that Pennsylvania is the 11th-worst state when analyzing the condition of our interstate system and 12th worst when it comes to the condition and structural integrity of our bridges. These numbers are concerning at best and downright frightening at worst.
Of the infrastructure funding allocated to Pennsylvania, $11.3 billion is earmarked for highways and $1.6 billion for bridge replacement and repairs. The state will be eligible for additional funding to improve transportation infrastructure in rural areas.
This infusion of money will help ease the ongoing issues related to the state’s growing transportation funding gap, and it will be a significant economic driver in job creation in the construction sector and increasing interstate and intrastate commerce.
Lauren Barr, Energy and Regulatory Practice Lead — Letting the market lead
Another component of significance included in the act is $7.5 billion for a national network of electric vehicle (EV) chargers, with Pennsylvania in line to receive an estimated $171 million over five years to support the buildout in the state. The goal of the network is to accelerate adoption of EVs. Consumers have “range anxiety,” which makes them less inclined to buy an EV over concerns about access to chargers on longer trips, so charging infrastructure is key to EV proliferation.
Electrification infrastructure comes at a cost and must be built in response to market forces and demand, as the private market is demonstrating by investing in such infrastructure. These federal funds are an opportunity to ensure that the charging network in Pennsylvania reflects demand and supplements existing private investment, rather than expending taxpayer dollars to build a utility-owned network that will need to be maintained on the backs of ratepayers.
Steve Kratz, Senior Director — Spending strategically, not swiftly
Like most states, Pennsylvania faces myriad issues that the IIJA addresses: supply chain challenges, deteriorating roads and bridges, aging water and wastewater infrastructure, outdated public transit and airports, and high prices at the pump.
Pennsylvania leaders have an opportunity to make strategic decisions to invest for the future. Although the push will be to spend the $18 billion to $20 billion as fast as possible, the focus should be on bringing government, labor and business leaders together to invest in making the commonwealth an economic powerhouse.
Pennsylvania’s strategic location to consumer markets, road network, international airports, ports, colleges and universities, and energy resources make it an attractive destination for new business and economic development. Conversely, its attributes quickly can become liabilities if the proper investments are not made to meet the needs of the 21st century.
Undoubtedly, there will be a push to start at the top of the pile to fund shovel-ready projects and score immediate wins. This approach is perfectly fine if your goal is to spend for the present. It will take political courage from our elected leaders and collaboration with business and labor experts to develop and execute a strategy to capitalize on this opportunity and build for the future.
