Conference Presentation, Panel, Fireside Chat
New Pathways for Resilient Infrastructure Innovation with Michigan Governor Gretchen Whitmer
Milken InstituteGretchen Whitmer, Jainey Bavishi, Eric Letsinger, Angela Martinez, Gary Moore, Laurie Schoeman, Dan Carroll, Lori Schumann
- Leaders from multiple cities and states plan to meet over the next two days to discuss funding, financing, and delivering essential public services to rebuild resilient economies through new infrastructure investments.
- Governor Whitmer anticipates that modernizing aging infrastructure is essential for a strong, equitable post-COVID recovery and expects to accomplish more goals than during her first two years due to the pandemic.
- Future federal investment is expected to focus on broadband as an essential service to level the playing field for underserved communities, alongside electrified mobility solutions and clean vehicle research.
- Specific legislative expectations include expanded electric vehicle tax credits, the testing of automated vehicles, and the promotion of clean vehicle and advanced safety technologies by Congressional leaders.
- The new federal administration is anticipated to partner with state officials on economic rebuilding, climate change mitigation, and manufacturing leadership, with a specific focus on creating millions of good-paying jobs.
- Infrastructure packages are viewed as critical for economic recovery, with expectations of Republican support for electric vehicles and charging infrastructure despite a closely divided Congress.
- Michigan's recovery plan aims to jumpstart the economy by rebuilding small businesses, attracting new jobs, upskilling the workforce, and utilizing initiatives like the "60 by 30" plan to close skills gaps.
- Climate change impacts, including record rainfalls, erosion, and the inability of Great Lakes to freeze solidly, are expected to drive immediate concerns and demand for mitigation measures.
- New York City is investing over $20 billion into resiliency programs to protect coastal communities, with the Eastside Coastal Resiliency Project expecting to protect 110,000 people including 28,000 in public housing.
- New York City plans to raise East River Park, build a flood wall, and rebuild pedestrian bridges while integrating future climate impacts into every new school, road, and wastewater treatment plant.
- A new Amazon primary hub at the Cincinnati Northern Kentucky International Airport involves a $1.5 billion investment expected to create at least 3,000 jobs and open in late summer or early fall.
- Boone County expects to address infrastructure needs for the Amazon facility, including roads, mass transit, and broadband, noting that 11,000 households currently lack service and another 8,000 are underserved.
- Counties manage 45% of public roads and 70% of transit systems but face fiscal shortfalls, with broadband now ranked alongside water, sewer, and roads as a top conversation priority.
- Quantified Ventures aims to utilize outcomes-based financing to enable governments to pay for green infrastructure outcomes rather than front-end costs, shifting these projects from priority 27 to priority 1.
- Financing models for nature-based projects, such as conservation practices on farms, are expected to generate revenue through carbon offsets and water quality offtake agreements to attract significant capital.
- The Economic Development Administration (EDA) covers 10 states in its Denver region and faces historic flooding and drought, with a $3 billion injection from the Biden administration and $1.5 billion from the CARES Act.
- EDA infrastructure grants typically range from $1 million to $3 million, with research indicating that every $1 invested generates $15 in private investment.
- Funding challenges include the difficulty smaller municipalities face with reimbursement-based federal funds and the need for pre-development funds to save time and get projects shovel-ready.
- Counties are advocating for direct funding in stimulus bills to stimulate the economy, noting that the last CARES Act only allocated direct funding to communities with 500,000 people or more.
- The Highway Trust Fund requires more aggressive funding to ensure multi-year planning and a reliable source of state and local funding, while innovation in resilience is expected to overcome standard payment barriers.
- FEMA's Building Resilient Infrastructure and Communities (BRIC) program is growing, with a potential $10 billion available from FEMA funding if maximum allowable amounts from COVID response spending are redirected to hazard mitigation.
- A deep financial and social capital commitment is required to repair infrastructure ill-prepared for climate realities, including tornadoes, earthquakes, flooding, and extreme heat.
- Community engagement is critical for developing buy-in on coastal protection solutions, and funding for operations and maintenance must be set aside at the start of a capital project to ensure success.
- Efforts to improve infrastructure must be informed by local leadership, and the definition of resilient infrastructure includes the ability to respond to, absorb shock from, and recover from disruptive events.