Infrastructure Opportunity Alert
The American Recovery and Reinvestment Act of 2009 (ARRA), the economic stimulus legislation enacted by Congress, has created an across-the board, multi-year package of infrastructure programs on the scale of the New Deal WPA and the Interstate Highway System.
The ARRA program is not just an expansion of funding for governmental facilities – it provides for energy and environmental investment and retrofit, technology research and development and tax incentives useful to a wide range of corporate and real estate enterprises. The program also encompasses the technology infrastructure on a broad scale, including the smart power grid, broadband expansion and electronic medical records system. As a result of ARRA, construction, technology networking, government contracting and regulatory interaction are likely to become more important components of business strategy.
Even within the governmental facility arena, ARRA will create investment opportunities for lenders, private equity, investment funds, sovereign wealth funds and public and private pension and retirement funds. Such investors as well as public authorities, municipalities and other governmental entities will be utilizing more bold and sophisticated public private partnerships and joint ventures (PPP) as well as structured financing techniques.
Just as businesses, investors and governmental entities needed to transform themselves to the on-line world in the past decade, they are now in the process of adapting to the new economic environment. Infrastructure and similar governmental economic stimulus programs are going to be an important component of this new era. The Troutman Sanders’ multi-disciplinary infrastructure team seeks to efficiently provide the mix of legal skills and experience our private and public clients will need to develop and execute their strategy for capitalizing upon the economic stimulus package.
We have synthesized the ARRA legislation and set forth below is a snapshot of programs to be funded by ARRA which we believe are of interest to our clients. Troutman Sanders can assist clients in recognizing and implementing opportunities arising from the legislation. We would be pleased to talk with you and interchange views on the ARRA legislation, trends and developments, and infrastructure opportunities for your organization.
Troutman Sanders Infrastructure Initiative 2009 Practice Team:
To help you understand and pursue the opportunities presented by the stimulus package, more than 100 Troutman Sanders professionals from sixteen practice groups have come together to form an Infrastructure Initiative 2009 Practice Team. Client Advisories covering specific components of the stimulus package will be prepared by several of these practice groups; click this link to an Advisory on “Energy in the Stimulus Package”. For a complete listing of skills, project experience and Troutman professionals who form this team, click on any link below:
AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009
Selected Infrastructure Client Opportunities
(Dollar amounts are approximate and may be adjusted)
ENERGY
- Smart Grid and Energy Transmission Programs – $11 billion for R&D, pilot projects, Federal matching funds and power administration borrowing authority, all to modernize the electricity grid
- Renewable Energy Loan Guarantees – $6 billion for power generation and transmission projects
- Facility Retrofits for Energy Efficiency – Federal, Local Government and Institutions – $8.8 billion
- Energy R&D, Pilot and Manufacturing Projects – $11.7 billion covering energy efficiency, renewable energy, advanced batteries and carbon capture technology
TRANSPORTATION
- Highway and Bridge Construction – $27.5 billion
- Mass Transit – $9.3 billion for new construction, system modernization and purchase of railcars, buses and equipment
- AMTRAK and other intercity rail improvements – $1.6 billion
- Airport Improvement Grants – $3 billion
- Airport explosive detection systems – $1 billion
- Border and Maritime Ports – $680 million primarily for security
ENVIRONMENTAL
- Hazardous Waste Cleanup – $1 billion, including Superfund sites, underground storage tanks and “Brownfield” grants
- Clean Water Programs – $6 billion in grants and loans to local governments for drinking water infrastructure and wastewater treatment projects
- Flood Control and Navigation Infrastructure- $4.6 for Army Corps of Engineers projects and $300 million for Coast Guard projects
TELECOMMUNICATIONS, HEALTHCARE AND OTHER INFORMATION TECHNOLOGY
- Wireless and Broadband Services to Underserved Communities – $7.2 billion
- Computerization of HealthCare Records – $19 billion
- Information Technology Upgrades – Federal Agencies – $900 million
- Smart Grid and Energy Transmission Programs – $11 billion – see Energy above
MULTI-FAMILY HOUSING MODERNIZATION
- Energy Efficient Housing Retrofits for HUD sponsored low income housing – $2.3 billion
- HUD Public Housing Capital Fund for repair and modernization – $4 billion
FEDERAL, LOCAL AND UNIVERSITY FACILITY CONSTRUCTION
- Federal, Local and University research facilities – $2.8 billion
- Department of Defense – $8 billion, including $3.8 billion for medical facilities
- Veterans Medical Facilities – $1.2 billion
CONTACT
Lawrence M. Levinson
212.704.6251