On November 15, 2021, President Biden signed the Infrastructure Investment and Jobs Act (IIJA) into law. Referred to by the Administration as the Bipartisan Infrastructure Law (BIL), the five-year, $1.2 trillion comprehensive infrastructure bill represents a historic investment in the nation’s infrastructure and includes funding for transportation (roads, bridges, ports, airports, transit, and rail), water, the electric grid, broadband, and resiliency. Broadly, this memo (1) explains how the majority of funding will be distributed; (2) highlights major competitive grant programs; (3) identifies major formula grant programs; and (4) describes how potential applicants should pursue funding opportunities. For a complete list of all of the programs in the BIL, please see Appendix A.

Notably, the BIL includes significant funding for competitive programs, which gives the Biden Administration additional influence over how the programs are administered. While there is statutory language guiding these programs that the various departments must adhere to, the administering agencies have discretion to include factors related to President Biden’s top policy priorities, including: equity, including racial justice; resiliency; economic transformation and job creation; and supply chain solutions. Project applicants should keep these priorities in mind as they identify potential projects, as projects that do not address some or all of these issues will generally not be considered as competitive.

1. Funding Distribution

The bulk of BIL funding is distributed via two methods:

• Formula funding programs are apportioned to recipients, based on predetermined formulas established by Congress and the various agencies. While there are some administrative requirements – such as verifying information – for the most part, there is very little recipients need to do to access this funding.

• Competitive, or discretionary grants, are managed by agencies and open to any eligible applicants. They are awarded through a competitive process in which an individual or team of reviewers determines which applications most closely align with the program criteria.

Most of the formula and discretionary funding in the BIL is directed towards public entities – states, localities, metropolitan planning organizations (MPOs), Tribes, etc. While there are very few programs where private companies can receive direct federal funding, there is ample opportunity for such entities to partner with public entities to access funding – and oftentimes, working directly with the private companies while putting together an application can make it stronger and more competitive.

2. Major Competitive Programs

The BIL represents a major investment in infrastructure. While many of the competitive opportunities for Fiscal Year (FY) 2022 have closed, the BIL is a five year bill – meaning all of these opportunities will reopen in FY23.

a. Transportation

The majority of the funding in the BIL – $550 billion – is directed to the Department of Transportation (DOT). It includes $318.9 million for roads, bridges, and major projects; $66 billion for rail (with most going to Amtrak); $87.7 billion for transit; and $25 billion for airports. While most of that will be distributed via formula to the states, there is over $100 billion in competitive grant funding – a significant increase over past years.

• RAISE. The BIL provides $7.5 billion in funding for local and regional project assistance grants (RAISE, formerly BUILD and TIGER). Funding can be used for “projects that will have a significant local/regional impact,” including highway, transit, rail, port, and certain surface-transportation related airport projects. Of note, the BIL added “tourism” as one of the new criteria for the RAISE grant moving forward. Eligible applicants include states, territories, local governments, public agencies, special purpose districts or public authorities with a transportation function (including a port authority), Tribal governments, and Amtrak partnerships. The FY22 application closed in April 2022, and the FY23 application will likely open in late winter/early spring.

• INFRA. The BIL provides $7.25 billion in funding for the Nationally Significant Freight and Highway Projects (also known as the Infrastructure for Rebuilding America, or INFRA, program). Awards are granted for “multimodal freight and highway projects of national or regional significance to improve the safety, efficiency, and reliability of the movement of freight and people in and across rural and urban areas.” Eligible applicants include states, MPOs, local governments, political subdivisions of states or local governments, special purpose districts or public authorities with a transportation function (including a port authority), federal land management agencies (in connection with states), Tribal governments, or multistate corridor organizations. The FY22 application – which was a combined Notice of Funding Opportunity (NOFO) for the INFRA, rural surface transportation, and megaprojects programs, closed in May 2022. The FY23 application will likely open in late winter/early spring.

• Megaprojects. The BIL provided $5 billion for a new program intended to support “large, complex projects that are difficult to fund by other means and likely to generate national or regional economic, mobility, or safety benefits.” Funding is reserved for projects with a total cost of $100 million or more, with a federal cost share of 60%. Eligible applicants include states, MPOs, local governments, a political subdivision of a state, special purpose districts or public authorities with a transportation function (including a port authority), Tribal governments, and Amtrak partnerships. The FY22 application – which was a combined NOFO for the INFRA, rural surface transportation, and megaprojects programs, closed in May 2022. The FY23 application will likely open in late winter/early spring.

• Bridge Investment Program. This new DOT program provides $12.2 billion to “replace, rehabilitate, preserve, or protect …important and economically significant bridges.” Eligible recipients include states, MPOs (representing an area with a population of more than 200,000), local governments, special purpose districts or public authorities with a transportation function, Federal land management agencies, and Tribal governments. The FY22 planning application closed in July 2022; the large bridge project applications closed in August 2022; and the bridge project applications close on September 8, 2022.

• Capital Investment Grants. The BIL provides $8 billion in funding for Capital Investment Grants. Awards are granted by the Federal Transit Administration for transit capital investments including heavy rail, commuter rail, light rail, streetcars, and bus rapid transit. Eligible recipients include state and local government agencies, including transit agencies.

• EV Charging Grants.
• Community Charging. The BIL provides $1.25 billion in funding for Charging and Fueling Infrastructure Grants for community charging. Awards are granted to “install electric vehicle charging and alternative fuel in locations on public roads, schools, parks, and in publicly accessible parking facilities,” prioritizing rural and low-income areas. Eligible recipients included States, MPOs, Tribes, local governments, special purpose districts, or public authorities with a transportation function. The NOFO is expected in winter 2022.
• Corridor Charging. The BIL also provides an additional $1.25 billion in funding for Charging and Fueling Infrastructure Grants aimed at corridor charging. The funding is intended to help “deploy electric vehicle charging and hydrogen/propane/natural gas fueling infrastructure along designated alternative fuel corridors and in communities.” Eligible applicants include states, MPOs, local governments, special purpose districts or public authorities with a transportation function, Tribes, and territories. The NOFO is expected in winter 2022.

• Transit Oriented Development. The BIL provides $68.9 million for the Pilot Program for Transit Oriented Development. Awards are granted to efforts “to integrate land use and transportation planning with a new fixed guideway or core capacity transit capital investment.” Eligible recipients include state or local government authorities. The FY22 NOFO closed in July 2022.

• Reconnecting Communities. The BIL provides $1 billion in funding for the Reconnecting Communities Pilot Program. Awards are granted for capital construction projects that will restore community connectivity by “removing, retrofitting, or mitigating highways or other transportation facilities that create barriers to community connectivity, including to mobility, access, or economic development.” The FY22 application for this program is open now through October 13, 2022.

• CRISI Grants. The BIL provides $5 billion in funding for the Consolidated Rail Infrastructure and Safety Improvement Grants (CRISI). Awards are granted to a wide range of “freight and passenger rail capital, safety technology deployment, planning, environmental analyses, research, workforce development, and training projects.” Eligible recipients include states, public agencies, Amtrak and other rail carriers, Tribes, university transportation centers, and non-profit labor organizations. DOT expects to release the FY22 NOFO in August.

• SMART Grant Program. The BIL provides $500 million in funding for the Strengthening Mobility and Revolutionizing Transportation (SMART) Grants. Grants are awarded to carry out demonstration projects focused on advanced smart city or community technologies and systems in a variety of communities to improve transportation efficiency and safety. Eligible recipients include a State, political subdivision of a state, Tribal government, public transit agency, public toll authority, MPOs, or groups of these entities. DOT expects to release the FY22 NOFO in September.

b. Clean Energy and Power

The BIL includes funding for delivering clean power ($21.3 billion), clean energy demonstrations ($21.5 billion), energy efficiency and weatherization retrofits ($6.5 billion), clean energy manufacturing/workforce development ($8.6 billion), nuclear power ($6 billion), and hydropower ($700 million). The funding is intended to modernize the electric grid, reduce energy costs, and facilitate the expansion of clean energy. New programs created by the BIL will support the development and deployment of clean energy technologies, while also aiming to supportgood paying jobs in the transition to a net-zero economy.

• Regional Clean Energy Hydrogen Hubs. This new Department of Energy (DOE) program provides $8 billion in funding. The purpose of the program is to support the development of at least four regional clean hydrogen hubs to improve clean production, processing, delivery, storage, and end use. Eligible projects must demonstrate the production, processing, delivery, storage, and end use of clean hydrogen hubs within close proximity. Recipients that are eligible for funding include technology developers, industry, utilities, universities, national laboratories, construction and engineering firms, community based organizations, as well as state, local, and Tribal governments. The next Funding Opportunity Announcement (FOA) will open in Quarter 4 of 2022

• Clean Hydrogen Electrolysis Program and Manufacturing Initiative. This new DOE program provides $1 billion in funding. The research, development, demonstration, and deployment program is intended for commercialization and to improve the efficiency and durability of producing clean hydrogen using electrolyzers. Eligible recipients include nonprofit and for-profit entities, universities, consortia, national laboratories, local governments, and other entities deemed eligible by the Secretary. The Notice of Intent (NOI) will be released in Quarter 4 of 2022.

• Carbon Capture Demonstration Programs. This new DOE program provides $2.5 billion in funding. The program seeks to establish a carbon capture technology program for the development of six facilities that will deploy technologies to improve the efficiency, effectiveness, costs, emissions reductions, and environmental performance of natural gas and coal use, including in manufacturing and industrial facilities. Eligible recipients include technology developers, industry, utilities, universities, national laboratories, construction and engineering firms, community based organizations, as well as state, local, and Tribal governments. The NOI for the program will be available in Quarter 4 of 2022.

• Battery Manufacturing and Recycling Grants. This new DOE program provides $3 billion in funding. The program provides grants to ensure the U.S. has a viable domestic manufacturing and recycling capability to support a North American battery supply chain. Eligible uses of funding include demonstration projects, construction of commercial-scale facilities, and retrofit or retooling of existing facilities for battery component manufacturing, advanced battery manufacturing, and recycling. Eligible recipients include nonprofit and for-profit entities, national laboratories, institutes of higher education, and local governments. The NOFO for this program closed in July 2022. As this is a new program, timing for the FY23 application is unclear.

• Hydropower: The IIJA expands existing incentive programs for hydropower under Section 242 and Section 243 of the Energy Policy Act of 2005. In addition, the IIJA creates a new programs (Section 247) that make payments to hydropower operators for improvements in grid resiliency, dam safety and environmental protections. DOE is also directed to establish a demonstration project for pairing pumped hydropower storage with intermittent renewables.

• Nuclear Energy: The IIJA establishes new DOE program – the Civilian Nuclear Credit Program - to support existing reactors. DOE, under the IIJA, is also able to transfer fee title or property interest acquired by the Secretary from any project funded under the Advanced Reactor Demonstration Program, and extends the confidentiality of intellectual property associated with the Advanced Demonstration Program from five to thirty years.

• Preventing Outages and Enhancing the Resilience of the Electric Grid/Hazard Hardening. This new DOE program provides $5 billion in funding to prevent outages and enhance the resilience of the electric grid. Eligible uses of funding include carrying out activities that are supplemental to existing hardening efforts and reduce the risk of power lines causing a wildfire, or reduce the likelihood and consequences of disruptive events. Eligible recipients include electric grid operators, electricity storage operators, electricity generators, transmission owners and operators, distribution providers, fuel suppliers, states, and Tribes. The Request for Information (RFI) closed in June 2022. As this is a new program, timing for the FY23 application is unclear.

• Program Upgrading Our Electric Grid and Ensuring Reliability and Resiliency. This new DOE program provides $5 billion in funding. The program is available to local governments and public utility commissions with the intention of collaboration with electric sector owners and operators to demonstrate innovative approaches to transmission, storage, and distribution infrastructure to enhance resilience and reliability. The NOI for the program will be released in 2022.

• Transmission and Smart Grid . This new DOE program provides $2.5 billion in funding to transmission developers to facilitate the construction of electric power transmission lines to enable greater clean energy growth and provide low-cost clean energy. To facilitate eligible projects, the Secretary may enter into contract with or issue a loan to an eligible project related to the costs of developing, operating, and/or carrying out the project. The comment period for the program’s RFI closed in June 2022. In addition, the BIL provides the Federal Energy Regulatory Commission with backstop authority to issue permits for the certain interstate transmission facilities if a state commission withholds or denies an application seeking approval for the siting of such facilities. The BIL also provides $3 billion for the Smart Grid Investment Program which will facilitate the deployment of technologies to enhance grid flexibility.

c. Water

The BIL includes $55 billion for “water, wastewater, water reuse, conveyance and water storage infrastructure.” Major competitive programs include:

• Drinking Water State Revolving Fund Lead Service Lines Replacement. This existing Environmental Protection Agency (EPA) program provides states $15 billion in funding to offer loans to water utilizes for lead service line replacement and associated activities related to identification, planning, design, and removal. Capitalization grants are issued after states complete their Intended Use Plan (IUP). Most Year 1 capitalization grants should be issued in Fall 2022.

• Clean Water State Revolving Fund. This existing EPA program provides $11.7 billion towards a federal-state partnership that provides communities low-cost financing for a wide range of water quality infrastructure projects. The program provides capitalization grants to States, which will provide a long-term source of State financing for construction of wastewater treatment facilities and implementation of other water quality management activities. Capitalization grants are issued after states complete their IUP. Most Year 1 capitalization grants should be issued in Fall 2022.

• Drinking Water State Revolving Fund Emerging Contaminants. This existing EPA program provides $4 billion in loans to states to fund drinking water infrastructure projects to address emerging contaminants, including PFAS. States initially receive funding, then provide funds to water utilities and municipal or other entities. Capitalization grants are issued after states complete their Intended Use Plan (IUP). Most Year 1 capitalization grants should be issued in Fall 2022.

• WaterSMART Grants. This existing Department of Interior (DOI) program provides $400 million in competitive grants under the SECURE Water Acter for water management improvements that contribute to water supply sustainability, increase drought resilience, and have other environmental benefits. Federal cost share varies for this program: 25 percent, 50 percent, or up to 65 percent for some projects. First-round funding allocations and selections will be announced in September 2022.

d. Resilience

The BIL invests more than $50 billion to “protect against droughts, heat, floods, wildfires, and cyber threats, in addition to a major investment in weatherization.” Major competitive programs include:

• Promoting Resilient Operations for Transformative, Efficient, and Cost-Saving Transportation (PROTECT). This new DOT program authorizes $1.4 billion to support planning, resilience improvements, community resilience and evacuation routes, and at-risk coastal infrastructure. There is separate formula funding ($7.3 billion) that will go directly to states. Eligible uses include highway, transit, and certain port projects. Eligible recipients for program funding include States, MPOs, local governments, or public authorities with a transportation function. DOT will open the NOFO for this program in Winter 2022-2023.

• Building Resilient Infrastructure and Communities. This existing Department of Homeland Security (DHS) program provides $1 billion in federal funds to States, territories, and local communities for hazard mitigation and capacity-building activities. The NOFO for this program is expected to open in Fall 2022.

• Cybersecurity for the Energy Sector Research, Development, and Demonstration Program. This new DOE program provides $250 million to support development and deployment of advanced cyber applications, technologies, and threat collaboration efforts with the U.S. energy sector. Eligible recipients include utilities, national labs, manufacturers, and vendors. The program provides funding for projects that develop, deploy, and leverage existing or new technologies that integrate the cybersecurity and energy sectors. Program application information is still being determined.

e. Environmental Remediation

The BIL invests $21 billion in environmental remediation. Funding is directed to projects that will “remediate environmental harms, address the legacy pollution that harms the public health of communities, create good-paying union jobs, and advance long overdue environmental justice.” Major competitive programs include:

• Superfund Program. This existing program provides $3.5 billion in funding from the EPA to industry partners, federal, state, and local governments, as well as special districts. The program is responsible for cleaning up contaminated land and making a visible and lasting difference in communities, ensuring that people can live and work in healthy environments. Cleanup activity is funded on a rolling basis.

• Brownfields Projects.This existing EPA program provides $1.2 billion to states, counties, public housing authorities, and nonprofits with 501(C)(3) status. The program funds activities that prevent, assesses, cleans, and reuses brownfield sites. Additionally, these activities must work to protect human health and the environment, encourage sustainable reuse, promote partnerships, strengthen local economies, and create jobs. Brownfield Job Training Grants were due August 2, 2022. Assessment, Cleanup, and Multipurpose Grant applications are due in November 2022.

• Clean Energy Demonstrations on Current and Former Mine Land. This new DOE program authorizes $500 million in funding to demonstrate the technical and economic viability of carrying out clean energy projects on current and former mine land. Up to five clean energy projects are to be carried out in geographically diverse regions, at least two of which must be solar projects. The Request for Information (RFI) closed in August 2022. DOE expects to announce a funding opportunity to solicit project proposals in 2023.

f. Broadband

The BIL includes $65 billion to “help ensure that every American has access to reliable high-speed internet through a historic investment in broadband infrastructure deployment.” Major competitive programs include:

• Broadband Equity, Access, and Deployment Program. This new Department of Commerce (DOC) program authorizes $42.45 billion to states and territories to use for broadband planning, deployment, and adoption projects. Eligible uses include planning, deploying broadband infrastructure, and promoting broadband adoption. Request for Initial Planning Funds are due August 15, 2022. Initial Planning Funds will be released on a rolling basis between August-October 2022, with additional funding to follow.

• Distance Learning, Telemedicine, and Broadband Program: Reconnect Program. This existing $1.9 billion Department of Agriculture Program offers loans and grants to build infrastructure and install equipment that provides modern, reliable, high-speed Internet service in rural America. Eligible recipients include corporations, limited liability partnerships, limited liability companies, cooperatives or mutual organizations, States, and local governments. The Funding Opportunity Announcement (FOA) opened in August. Applications can be submitted between September 6 – November 2, 2022.

• Affordable Connectivity Program. This existing Federal Communications Commission (FCC) program provides $14.2 billion to internet service providers to help ensure that low-income households can afford broadband. The program provides up to a $30 monthly benefit on a household’s monthly internet bill, and eligible households may also receive a one-time discount to purchase a laptop or tablet from participating providers. The program’s comment period closed on August 8, 2022.

• Middle Mile Grant Program. This existing DOC program provides $1 billion in funding through fiscal years 2022-2026 to states, cities, public utilities, telecommunications companies, nonprofits, and electric cooperatives for the purpose of broadband infrastructure deployment. The purpose of the program is to expand and extend middle mile infrastructure to reduce the cost of connecting unserved and underserved areas to the Internet. Program applications are due at the end of FY22 and awards will be announced in FY23.

3. Major Formula Programs

The majority of the funding in the BIL will be distributed via formula. While private companies will not directly benefit from any of these programs, they can still partner with the entities receiving funding. More information on these programs can be found in Appendix A.

4. What Potential Applicants Should Be Doing

While many of the FY22 competitive opportunities have passed, there are still a number of things those interested in applying for any of the BIL funding (whether directly or with a partner) should be doing. In preparation for the remainder of the FY22 opportunities and FY23 opportunities opening, potential applicants should be identifying lists of priority projects while keeping in mind the Biden Administration’s priorities: equity, resilience, job creation, and the supply chain. Projects that advance these goals will likely rank higher than those that do not.
Additionally, potential applicants should consider:

• Meeting with the Congressional delegation and relevant government agencies to socialize projects;
• Securing and working with stakeholders;
• Coordinating regionally to ensure that multiple applications are not being submitted to the same programs;
• Determining which environmental regulations will need to be satisfied; and
• Reviewing FY22 awards to see which types of projects were advanced and which were not.

Dentons’ US Public Policy Team has helped clients secure millions of dollars in competitive and discretionary grants and is happy to answer any questions you may have.