Infrastructure Investment and Jobs Act Becomes Law

President Biden will sign the Senate Amendment to H.R. 3684 into law today at a bipartisan White House ceremony. The bipartisan infrastructure agreement was passed by the Senate (69-30) in early August, with the House of Representatives following suit on November 5th (228-205). The legislation will reauthorize surface transportation programs for highway, transit, rail, pipeline, and research and safety programs, providing an additional $550 billion in program funding above the previous baseline over the next five years. The Congressional Budget Office (CBO), a nonpartisan entity, estimates that the bill will add $256 billion to budget deficits over the next decade.
 
The bill also includes key portions of the Biden Administration’s “Build Back Better” agenda, including provisions to address climate change, streamline environmental reviews, and include incentives for domestic content in U.S. infrastructure projects. It provides $445.9 billion in emergency funds, most of which will be spent over the next five years, including:

• $40 billion to repair and replace bridges.
• $10.3 billion for Transit Infrastructure Grants, including transit safety programs.
• $5 billion for states to deploy electric vehicle charging infrastructure and a data-sharing network.
• $66 billion for passenger and freight rail.
• $17 billion for port infrastructure.
• $25 billion for airports.
• Over $50 billion for clean water and sustainable water infrastructure.
• $65 billion for electric power infrastructure grants, research, and modernization. 
  In addition to providing the largest investment in the resilience of physical infrastructure in U.S. history, the bill provides historic investments aimed at mitigating the worst effects of climate change:

• Carbon Capture: $3.5 billion for projects that help develop four regional hubs to capture carbon dioxide from the atmosphere and transport, store, and use it. The measure would create a “carbon dioxide transportation infrastructure finance and innovation,” or CIFIA, program to leverage federal funding to make loan guarantees and secured loans supporting large projects for infrastructure to transport carbon dioxide.
• Batteries: The bill authorizes $3 billion over five years for grants through the Energy Department’s Office of Fossil Energy and Carbon Management for demonstration projects to process battery materials and for constructing or retrofitting processing facilities.
• Hydrogen Economy: $8 billion over five years to support hydrogen fuel production from different sources, use of hydrogen for electricity and industrial processes, and hydrogen fuel transportation. The Energy Department will establish at least four regional clean hydrogen hubs that locate clean hydrogen producers, users, and transport infrastructure near one another.
• Nuclear Industry Support: The bill authorizes $6 billion from fiscal 2022 through 2026 for an Energy Department civil nuclear credit program to support reactors projected to cease operations because of economic factors. Credits will be provided for a commitment to generate a specific amount of power over a four-year period. No credits will be issued after Sept. 30, 2031.  

For additional information on the Infrastructure Investment and Jobs Act, visit: https://www.whitehouse.gov/briefing-room/statements-releases/2021/08/02/updated-fact-sheet-bipartisan-infrastructure-investment-and-jobs-act/.
 
To read the full bill text, visit: https://www.congress.gov/bill/117th-congress/house-bill/3684