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Where’s the Wind Money?

Wind, Water, and the Warfighter

Society of American Military Engineers (SAME) Industry Government Exchange Conference

Old Dominion University

December 7, 2021

Presented by: Joan M. Bondareff, Of Counsel

Blank Rome Maritime Practice

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Bipartisan Infrastructure Bill ($1T over 10 Years)

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President Biden signed H.R. 3684 into law at a White House Rose Garden ceremony on November 15, 2021, with bipartisan Members of Congress, Governors, Mayors and Labor reps.

The official title of the new law is the Infrastructure Investment and Jobs Act (IIJA)(Pub.L. 117-58).

Here’s what’s in it that Virginians and this audience should care about— $550B each year for traditional infrastructure including roads, bridges, airports, EV charging stations and broadband. The Bipartisan Infrastructure Law Will Deliver for Virginia (transportation.gov).

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Bipartisan Infrastructure Bill ($1T over 10 Years), Cont’d.

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On the transportation side, the law includes:

$17B for ports – most of it going to the ACOE to select projects.
$240M for MARAD/DOT this year for the Port Infrastructure Development Program (PIDP) and Marine Highways.
Secretary Buttigieg announced a plan to get the money out the door at DoT in under 90 days. (This would be the NOFO).
$28B for grid enhancement.
$100M for wind energy demonstration projects.
Makes the FAST-41 Act process permanent to expedite permitting for major infrastructure projects.

Senator Warner touted the bill in a press release and said there’s money in it for Hampton Roads.

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Bipartisan Infrastructure Bill ($1T over 10 Years), Cont’d.

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President Biden announced a new Infrastructure Council at the White House to be Chaired by Brian Deese, Chair of the NEC.
Former NOLA Mayor Mitch Landrieu will be in charge of the delivery of the Infra dollars. (I call him the Infrastructure Czar).
The Council will consist of 7 Cabinet officials and they must comply with the “Justice 40” Initiative, i.e., 40% of the dollars must flow to disadvantaged communities.

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Build Back Better Plan ($1.75T)(H.R. 5376)

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At the same time, Congress is debating the Build Back Better Plan or soft infrastructure. This is where most of the energy and climate change money is. The House passed its Build Back Better Plan on November 19, 2021.

The bill is now pending in the Senate where the Parliamentarian has to apply the Byrd rule and other budget rules to determine what stays in this reconciliation bill.

We expect the Senate to amend the House passed bill which means it has to go back to the House for re-passage before it goes to the President. In particular, Senator Manchin (D-WV) is concerned about spending this much money in light of inflation issues facing the country.

SALT tax credits are still up in the air as is paid family leave.

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Build Back Better Plan ($1.75T)(H.R. 5376), Cont’d.

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The BBB Plan has $300B for climate change or clean energy credits including:

$151B for wind, solar and storage tax credits.
$14B for manufacturing tax credits (but no money for vessels). For example, 2 cents per blade, 5 cents per nacelle and 3 cents per tower.
$23B in nuclear credits.
$11B for grid tax credits.
$9B for clean hydrogen tax credits.
$20B for EV tax credits.
$15B in biofuels incentives.

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Build Back Better Plan ($1.75T)(H.R. 5376), Cont’d.

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Both the ITC and the PTC are extended until 2031 and could be further extended if domestic content requirements are met and until emission targets are met.

Direct payment in lieu of tax credits is available if domestic content requirements are met –20% by 2025, 55% by 2027.

The goal is to have the final bill to the President by the end of the year.

Implementation of both bills will be a challenge.

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Questions or Comments?

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For more information, please contact:

Joan M. Bondareff, Of Counsel

Maritime Practice, Blank Rome LLP

Washington, DC

bondareff@blankrome.com

202.772.5911

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