[Senate Hearing 118-733]
[From the U.S. Government Publishing Office]
S. Hrg. 118-733
EXAMINING THE IMPACT
OF THE BIPARTISAN INFRASTRUCTURE
LAW ON TRANSPORTATION INFRASTRUCTURE
=======================================================================
FIELD HEARING
before the
SUBCOMMITTEE ON SURFACE TRANSPORTATION,
MARITIME, FREIGHT, AND PORTS
of the
COMMITTEE ON COMMERCE,
SCIENCE, AND TRANSPORTATION
UNITED STATES SENATE
ONE HUNDRED EIGHTEENTH CONGRESS
SECOND SESSION
__________
JULY 23, 2024
__________
Printed for the use of the Committee on Commerce, Science, and
Transportation
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Available online: http://www.govinfo.gov
______
U.S. GOVERNMENT PUBLISHING OFFICE
61-872 PDF WASHINGTON : 2025
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
ONE HUNDRED EIGHTEENTH CONGRESS
SECOND SESSION
MARIA CANTWELL, Washington, Chair
AMY KLOBUCHAR, Minnesota TED CRUZ, Texas, Ranking
BRIAN SCHATZ, Hawaii JOHN THUNE, South Dakota
EDWARD MARKEY, Massachusetts ROGER WICKER, Mississippi
GARY PETERS, Michigan DEB FISCHER, Nebraska
TAMMY BALDWIN, Wisconsin JERRY MORAN, Kansas
TAMMY DUCKWORTH, Illinois DAN SULLIVAN, Alaska
JON TESTER, Montana MARSHA BLACKBURN, Tennessee
KYRSTEN SINEMA, Arizona TODD YOUNG, Indiana
JACKY ROSEN, Nevada TED BUDD, North Carolina
BEN RAY LUJAN, New Mexico ERIC SCHMITT, Missouri
JOHN HICKENLOOPER, Colorado J. D. VANCE, Ohio
RAPHAEL WARNOCK, Georgia SHELLEY MOORE CAPITO, West
PETER WELCH, Vermont Virginia
CYNTHIA LUMMIS, Wyoming
Lila Harper Helms, Staff Director
Melissa Porter, Deputy Staff Director
Jonathan Hale, General Counsel
Brad Grantz, Republican Staff Director
Nicole Christus, Republican Deputy Staff Director
Liam McKenna, General Counsel
------
SUBCOMMITTEE ON SURFACE TRANSPORTATION, MARITIME, FREIGHT,
AND PORTS
GARY PETERS, Michigan, Chair TODD YOUNG, Indiana, Ranking
AMY KLOBUCHAR, Minnesota JOHN THUNE, South Dakota
BRIAN SCHATZ, Hawaii ROGER WICKER, Mississippi
EDWARD MARKEY, Massachusetts DEB FISCHER, Nebraska
TAMMY BALDWIN, Wisconsin ERIC SCHMITT, Missouri
TAMMY DUCKWORTH, Illinois SHELLEY MOORE CAPITO, West
RAPHAEL WARNOCK, Georgia Virginia
PETER WELCH, Vermont TED BUDD, North Carolina
C O N T E N T S
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Page
Hearing held on July 23, 2024.................................... 1
Statement of Senator Peters...................................... 1
Witnesses
Brad Wieferich, Director, Michigan Department of Transportation.. 3
Prepared statement........................................... 4
Capt. Paul C. LaMarre III, President, American Great Lakes Ports
Association, and Port Director, Port of Monroe................. 6
Prepared statement........................................... 7
Marty Fittante, Chief Executive Officer, InvestUP................ 10
Prepared statement........................................... 11
Amy O'Leary, Executive Director, SEMCOG.......................... 14
Prepared statement........................................... 16
Michael Aaron, Business Manager and Chief Officer, Laborers
International Union of North America (LiUNA!) Local 1191....... 18
Prepared statement........................................... 19
Appendix
Letter dated August 5, 2024 to Hon. Gary Peters from Manistee
County Grant Administration Team............................... 37
EXAMINING THE IMPACT
OF THE BIPARTISAN INFRASTRUCTURE
LAW ON TRANSPORTATION INFRASTRUCTURE
----------
TUESDAY, JULY 23, 2024
U.S. Senate,
Subcommittee on Surface Transportation, Maritime,
Freight, and Ports,
Committee on Commerce, Science, and Transportation,
Lansing, MI.
The Subcommittee met, pursuant to notice, at 10:08 a.m., in
Lansing City Hall, Tony Benavides Council Chambers, 124 West
Michigan, 10th Floor, Lansing, Michigan, Hon. Gary Peters,
Chairman of the Subcommittee, presiding.
Present: Senator Peters [presiding].
OPENING STATEMENT OF HON. GARY PETERS,
U.S. SENATOR FROM MICHIGAN
Senator Peters. Three years ago I was proud to join members
of this committee to help lead a coalition of Democrats and
Republicans to pass historic new investment in our Nation's
infrastructure.
Since then the Infrastructure Investment and Jobs Act, also
known as the ``bipartisan infrastructure law,'' has begun to
make a difference in communities all across our country.
The bipartisan law give us the chance to fix our roads and
bridges it has also expanded access to high speed internet,
upgraded railroads and airports, delivered clean water to
countless families, and made critical progress in the fight for
a clean energy economy.
Those investments have already made an impact here in
Michigan. So far this legislation has funded more than 500
individual projects, and I have seen these benefits firsthand
and heard from constituents who are grateful for these
resources.
Our airports from Detroit to Lansing to the UP have
received funding to improve and expand their services. Our
communities are building the electric vehicle charging stations
that will power the future of clean transportation, and across
our state increased access to high speed Internet is providing
Michiganders with new opportunities for education, health care,
and innovation, and those investments have created thousands of
good-paying jobs and, I will say, union jobs across Michigan.
Today we will focus on the investments in our surface
transportation, maritime, port and freight infrastructure and
the impact that they have had across our state.
In Bay City the Lafayette Avenue Bridge is getting replaced
after almost 85 years. Probably time for a new bridge after 85
years. No more piecemeal repairs. Instead, the Bay City
community is going to get a brand new bridge that will bolster
its local economy.
In Detroit MDOT is building a mobility and innovation
corridor to drive innovation in transit and vehicle
technologies. The city has received historic investments to
make roads safer.
New trails for pedestrians are being built as part of the
Joe Lewis Greenway and the I-375 freeway is getting replaced
with a boulevard at street level.
In Detroit, Menominee, Monroe and the Soo Locks--key Great
Lakes ports--have begun to receive the support they need to
shore up our supply chain, boost the--thank you, Captain--boost
local economies and strengthen our maritime infrastructure. I
can tell you are ready for your testimony.
[Laughter.]
Senator Peters. In Kalamazoo, Pontiac, Sault Ste. Marie,
and Jackson, the bipartisan infrastructure law's RAISE grant
program has kickstarted new projects that will improve
pedestrian safety and access, transform downtowns, and
reconstruct critical roads. And right here in Lansing resources
are going to projects to improve I-496 and U.S. 127 to improve
communities and connectivity to the rest of the state.
These are just a few of the projects funded by the
bipartisan infrastructure law that we will examine at this
morning's hearing and more are breaking ground each and every
day.
These projects are not just building new infrastructure but
they are also improving public health, economic development,
the future of clean energy and so much more, and we are just
beginning to see the full effect of this legislation.
That is why our work is far from over. The next step is to
understand the details of how this law has been actually
implemented and we want to hear directly from local
stakeholders, the people who are on the ground seeing these
projects up front and close.
This will not just allow us to better utilize resources of
the bipartisan infrastructure law but it will also lay the
groundwork for future legislation and help us understand where
we are still falling short.
Perhaps most important, Michigan is exactly the right place
to examine these questions. Our state has rural, urban, and
suburban areas that each face their own unique challenges in
meeting Michigan's infrastructure needs, and as a hub of
domestic manufacturing our state's industries serve millions of
individual customers and play a critical role in protecting our
national interest.
The strategic supply chains that run through Michigan rely
on road, rail, and maritime infrastructure to deliver each and
every day, and as a Great Lake state with an international
border our maritime infrastructure is among the most critical
in North America for trade and for commerce. And there is no
state more fitting than ours to hold the Senate Commerce
Committee's first hearing on the implementation of the
bipartisan infrastructure law.
This morning our panel of expert witnesses will share
essential insights into this legislation. They will help us
understand how it must be implemented to meet infrastructure
needs here in Michigan as well as all across the country.
So I want to thank each and every one of you for being here
today and I certainly look forward to a very productive
conversation.
Our first witness is Brad Wieferich. Mr. Wieferich serves
as the Director of the Michigan Department of Transportation.
He has served the department for nearly 30 years in several
capacities, most recently as the Chief Operations Officer and
Chief Engineer.
Mr. Wieferich also serves on the American Association of
State Highway and Transportation Officials Board of Directors
and represents MDOT on the Council on Future Mobility and
Electrification, and it is Michigan's board--and ITS Michigan
Board of Directors and the Mackinac Bridge Authority. He is
also a fellow Spartan. Go Green.
You are going to get that response here at Lansing. Very
good. Mr. Wieferich, welcome. Welcome to today's subcommittee
field hearing. You may proceed with your opening remarks.
STATEMENT OF BRAD WIEFERICH, DIRECTOR,
MICHIGAN DEPARTMENT OF TRANSPORTATION
Mr. Wieferich. Good morning, Chairman Peters. Go White, and
on behalf of the men and women of the Michigan Department of
Transportation working every day to provide safe passage for
travelers whether they are driving a car or a truck or whether
they are a passenger on a train or a plane or a bus or riding a
bike or walking, I just want to express our sincere
appreciation to you for making a point to spotlight these
important issues.
You have long been a champion for transportation across all
modes and your decades of advocacy as a lawmaker at the state
and Federal levels have helped our fellow citizens
immeasurably.
So the bipartisan infrastructure law, also known as the
Infrastructure Investment and Jobs Act, or IIJA, has been a
boon for Michigan in many ways.
Not only is the additional IIJA highway funding anticipated
to support, roughly, 6,000 new jobs annually over 5 years but
the program has also helped us to offset the impact of
inflation in materials and labor that were spurred by global
events, obviously, most notably being the worst pandemic in a
century.
The highway funds for Michigan amount to almost $8 billion
total. Roughly, $2.2 billion of that is new highway funding,
which works out to about 430 million new dollars in an average
annual increase and that is over the Fiscal Years of 2022 to
2026.
Among other highlights related to surface transportation in
the IIJA this does create a new $27.5 billion bridge program
that will help Michigan replace, rehabilitate, and preserve its
critical bridge infrastructure.
It also creates new discretionary grant programs and
increases existing discretionary grant programs which Michigan
has been quite successful in achieving and then will continue
to look for how these grants can bolster our program.
It also establishes new highway funding programs to support
resiliency. This help--this will help states adapt and mitigate
impacts of climate change on the state's transportation
network.
Overall, the IIJA provides 5 years of certainty in planning
and makes it possible for MDOT to implement $1 billion in
additional projects over the five years of the authorization,
and we all know that some transportation projects can take many
years to bring from the planning table through to construction
and really having that predictable, sustainable funding source
is vital to our planning processes.
I am especially excited about the discretionary grants that
have or will benefit some crucial projects that MDOT would
otherwise struggle to fund. Governor Whitmer was very forward
thinking in establishing the Michigan Infrastructure Office as
well to provide key support to all state departments and local
entities in applying for these grants, not only just for
transportation but to expand broadband services, improve water
and wastewater systems, many other services across the state.
So for the department specifically a couple of things that
that were mentioned but not limited to, obviously, is $105
million that we received for I-375 in Detroit. Spur freeway
that is built below grade we are going to raise that up, making
it an at-grade boulevard, be able to provide some vital
community connections for the neighborhoods.
Seventy-three million dollars you mentioned for the
Lafayette Bridge in Bay City, but in addition $14 million to
revitalize West Bay Shore Drive in Traverse City to help us
with traffic congestion and safety.
We are adding a roundabout at the busy intersection of M-22
and M-72, another $12 million grant to redesign and replace a
pump station on 28th Street in Grand Rapids, which is a vital,
busy commercial corridor.
And, again, those are just some of the highlights that we
are able to use the discretionary grants to improve quality of
life across our state.
We are also pleased to inform or pleased the IIJA has had
an infusion of $5 billion for states to build out the charging
networks as the electric vehicles become more common.
Michigan will have $110 million through Fiscal Year 2026.
So funding from the program is also benefiting passenger rail.
It is benefiting transit. It is benefiting aviation and
maritime travel and movement of all commercial goods.
And in short, Mr. Chairman, I cannot overstate my
appreciation for the IIJA funds and ongoing support of the
Federal Government in helping me and my team deliver on our
promise to provide safe and efficient mobility for all.
[The prepared statement of Mr. Wieferich follows:]
Prepared Statement of Brad Wieferich, Director,
Michigan Department of Transportation
Good morning Chairman Peters,
On behalf of the men and women at the Michigan Department of
Transportation working everyday to provide safe passage for travelers--
whether driving a car or truck, as a passenger on a train, plane or
bus, riding a bicycle or walking--I want to express my sincere
appreciation to you for putting a spotlight on these important issues.
You have long been a champion for transportation across all modes
and your decades of advocacy as a lawmaker at the state and Federal
levels has helped our fellow citizens immeasurably.
The Bipartisan Infrastructure Law, also known as the Investment and
Jobs Act or IIJA has been a boon for Michigan in myriad ways.
Not only is the additional IIJA highway funding anticipated to
support roughly 6,000 new jobs annually over five years, the program
helped us offset the impact of inflation in materials and labor spurred
by two global events: the worst pandemic in a century and the war in
Ukraine.
Those highway funds amount to $7.98 billion total--roughly $2.2
billion in ``new'' highway funding; $433 million average annual
increase--from Fiscal Years 2022 through 2026.
Among other highlights related to surface transportation, the IIJA
Creates a new $27.5 billion bridge program that will help
Michigan replace, rehabilitate, and preserve its critical
bridge infrastructure.
Creates new discretionary grant programs and increases
existing discretionary grant programs, which Michigan has had
some success recently winning and for which the department will
continue to apply.
Establishes new highway formula programs to support building
for resiliency. This will help the state adapt to and mitigate
the lingering impacts of climate change on the state's
transportation network.
Overall, the IIJA provides five years of certainty for planning and
makes it possible for MDOT to implement $1 billion in additional
projects over the five years of the authorization. Transportation
projects take years, sometimes decades, to bring from the planning
table to construction and predictable funding is vital to that process.
I'm especially excited about the discretionary grants that have or
will benefit some crucial projects MDOT would have otherwise struggled
to fund. Gov. Whitmer was forward thinking in establishing the Michigan
Infrastructure Office to provide key support to myriad state
departments applying for infrastructure grants, not just for
transportation but to expand broadband service, improve water and sewer
systems and many other services across the state.
These include but are not limited to a $105 million award for the
transformational conversion of the I-375 spur freeway in Detroit into
an urban boulevard that restores connectivity to vital neighborhoods; a
$73 million boost to a project for a long overdue replacement of the
Lafayette Bridge in Bay City; $14.4 million to revitalize West Bayshore
Drive in Traverse City, mitigating congestion and adding a roundabout
at the busy intersection of M-22 and M-72; to a $12 million grant to
redesign and replace a pump station at a chronically flooded segment of
28th Street in Grand Rapids, a busy commercial corridor.
Those are just some highlights of how the IIJA discretionary grants
are making significant improvements to quality of life across our
state.
We are also pleased that the IIJA offered an infusion of $5 billion
to states to build out their charger networks as electric vehicles
become more common, with Michigan getting $110 million through Fiscal
Year 2026. Not only does that support goals to reduce emissions and
dependency on fossil fuels, it also supports vital Michigan employers
in the automotive industry.
Funding from the program is also benefiting passenger rail,
transit, aviation and maritime travel and movement of commercial goods.
In short Mr. Chairman, I cannot overstate my appreciation for the
IIJA funds and ongoing support of the Federal government in helping me
and my team deliver on our promise to provide safe and efficient
mobility for all.
Thank you.
Senator Peters. Thank you. Thank you, Mr. Wieferich. Thank
you, and thank you for your leadership on all of those issues.
It is always great working with you, not just today but every
day on all of these projects.
Our second witness is Captain Paul LaMarre, the Director of
the Port of Monroe and President of the Great Lakes Pilot
Association.
Captain LaMarre is a third generation Great Lakes mariner.
He is a well known leader and tugboat captain across Great
Lakes St. Lawrence Seaway navigation system. He has served as
the Port Director of the Port of Monroe since 2012 and is
directly responsible for the port's growth into a national
example of seaport revival as well as redevelopment.
Captain LaMarre is also the President of the American Great
Lakes Ports Association which represents all U.S. Great Lakes
ports and is regarded as one of the industry's leading trade
associations.
Captain LaMarre, always a pleasure to see you and welcome.
You may proceed with your opening remarks.
STATEMENT OF CAPT. PAUL LaMARRE,
PRESIDENT, AMERICAN GREAT LAKES PORTS ASSOCIATION,
AND PORT DIRECTOR, PORT OF MONROE
Mr. LaMarre. Thank you, sir. Always a pleasure, and I
actually have the pleasure of towing ships through that
Lafayette Street Bridge so glad to hear that that is going to
be upgraded.
First, Mr. Chairman, I just want to thank you for this
opportunity. We have had the opportunity to sit in many
meetings in many rooms where you have fought for not just the
Port of Monroe but have been one of the champions of the Great
Lakes as a whole.
I consider you a friend. I consider you really one of the
true champions of the Great Lakes St. Lawrence Seaway system.
Anytime I can be in the same room with you I consider it a true
honor.
And as it relates to infrastructure I speak to you today
not just from the Port of Monroe, not just as a Michigander,
not just representing all of the U.S. ports, but as a third
generation mariner whose families relied upon this industry for
over a hundred years, and I consistently tell my team at the
Port of Monroe that while we all do our very best in our jobs
every day there is one thing at the port and through the system
that will outlast all of us and that will span generations and
that is infrastructure.
You cannot go wrong investing in infrastructure,
particularly our marine highways. The Great Lakes St. Lawrence
Seaway system is the vein of industry that has fed a growing
nation since the early 1900s.
The infrastructure bill itself for the first time in a long
time really gave legitimacy to ports and what we do, and ports,
the Great Lakes in particular, needs to be seen as a single
port in competition with the coasts, and the investment in the
infrastructure bill and what it has allowed us to accomplish
with future investment in the Port of Monroe is a great example
of how we can do better in the future.
I would tell you with the port infrastructure development
program and the funds that come along with it, it has been the
single most impactful piece of legislation that our community
has ever experienced nationwide.
I think that the American Association of Port Authorities
and others would attest to that. Of course, our business is
multimodal. The ports represent the first and last mile in
intermodal transportation hubs that connect the major
metropolis of our Nation.
The funding is one piece of this but the execution
undoubtedly is another, and I would say that the efficiency of
funding will continue to be important as well and the
streamlined communication between intergovernmental agencies.
Another is that we must place value on our American flagged
fleet and domestic cargo. What we do on the Great Lakes is
shipping the raw goods that feed our Nation but that come out
of our soil.
We are the iron ore that is in your automobile in the form
of steel. We are the coal that for at least a period of time is
keeping your lights on and contributing to steel production.
It is the limestone in your driveway. It is the grain at
Kellogg's. It is more homegrown America than any other
commodities that are traded throughout the Nation. We are
looking to diversify our cargos but with diversifying we need
to sustain and upgrade aging infrastructure.
The last point that I will make is not just to thank the
Biden administration and yourself but also to thank Secretary
Buttigieg who has through U.S. DOT become a real--well, he is
from the Great Lakes, of course, but he, just like yourself,
has made time to come to the Port of Monroe to visit Michigan
to see what we are all about, and what we are all about travels
from the Committee table at a hearing all the way to the deck
plates of a lake freighter and to the concrete that is on our
dock and the improvements that we are making that will keep
people in Michigan working far after we are no longer involved
in this process.
I thank you for the honor and the opportunity, and you have
my written testimony which has all the details, I guess we
could say.
But I appreciate you, sir. You are a Navy brother and I
thank you very much for your confidence.
[The prepared statement of Mr. LaMarre follows:]
Prepared Statement of Capt. Paul C. LaMarre III, President, American
Great Lakes Ports Association, and Port Director, Port of Monroe
Good morning, Chairman Peters, distinguished members of the
Subcommittee on Surface Transportation, Maritime, Freight and Ports,
and fellow witnesses. Thank you for the opportunity to testify today on
the impact of the Bipartisan Infrastructure Law on transportation
infrastructure in Michigan.
My name is Captain Paul C. LaMarre III, and I am proud to speak as
the Port Director of the Port of Monroe, MI as well as the President of
the American Great Lakes Ports Association which represents all U.S.
Great Lakes Ports and is regarded as one of the industry's leading
trade associations.
I am honored to share our experiences and insights on the
opportunities and challenges we have encountered while implementing the
Bipartisan Infrastructure Law and cannot overstate the importance of
continued investment in our maritime industry's resilience.
Overview of the Bipartisan Infrastructure Law's Impact
The Infrastructure Investment and Jobs Act, commonly referred to as
the Bipartisan Infrastructure Law, has authorized unprecedented
investments in our Nation's surface transportation and port
infrastructure projects. These investments are crucial for addressing
long-standing infrastructure deficiencies and modernizing our
transportation networks to meet future demands.
In October 2022, the Port of Monroe was awarded $11,051,586 through
the Port Infrastructure Development Program (PIDP). This grant award
represents the single largest investment in the Port of Monroe's
infrastructure since the organization's creation in 1932 and will have
profound effects on the sustainability and enhancement of our maritime
infrastructure which supports the Port of Monroe's continued growth as
a regional hub for both domestic and international renewable energy
cargoes.
Successes in Implementation
1. Enhanced Funding for Projects: PIDP funding has allowed the Port
of Monroe to undertake several critical projects that were
previously unfunded. For example, the project rehabilitates and
reinforces end-of-life infrastructure to increase vessel and
cargo handling capacity, improves the efficiency of managing
bulk materials used in local road infrastructure projects and
the manufacture of building materials, improves the handling of
steel coils and plates used in regional automotive
manufacturing, adds shore power to reduce vehicle and vessel
idling, provides new docking capacity to harbor assist vessels
to increase the port's responsiveness against climate change-
related weather events, and adds dedicated vessel berthing
capacity for handling international containers and the marine
transport of wind energy components manufactured at the Port of
Monroe.
2. Rural and Urban Benefits: The law's provisions for discretionary
and formula funding have ensured that both rural and urban
areas in Michigan benefit. The Port is in the City of Monroe,
Monroe County, Michigan. The Port is within the federally
designated Urban Area and community development zone
Opportunity Zone 8318. This positioning allows us to leverage
funding to improve infrastructure that benefits our
economically challenged rural community.
3. Job Creation: The infrastructure projects funded by this law will
create numerous construction and operational jobs in our
community, providing economic stimulus and supporting local
economies, thereby contributing to the reduction of
unemployment in the region.
Leveraging State and Federal Funds
As a small public Port, the Port identifies and collaborates with
state and local governments to leverage and ensure the maximum impact
of public funding sources for infrastructure investment. Examples of
the Port using Federal funding to attract non-federal sources of
infrastructure investment include:
1. Federal Railroad Administration funds for the development of rail
siding to Port tenant manufacturing wind towers were leveraged
with financial participation from the Michigan Department of
Transportation, Ventower, and the Port.
2. U.S. Department of Transportation's America's Marine Highways
Program funds for the purchase of a U.S.-made Manitowoc MLC165
crawler crane were leveraged with financial participation from
the Michigan Department of Transportation, City of Monroe, and
the Port.
3. Department of Homeland Security Port Security grant funds for the
purchase of a radiation portal monitor to screen international
containers were leveraged with financial participation from the
Port.
Challenges Encountered
1. Implementation Delays: While we are grateful for the significant
funding provided, we have encountered delays in project
implementation due to bureaucratic red tape and compliance with
numerous Federal and state regulations. These delays have
hindered our ability to deliver projects on time. Additionally,
the requirement for additional engineering reviews, despite our
own licensed engineers providing plans, has added unnecessary
layers to the process. Simplifying these procedures would
significantly expedite project delivery. While the Port of
Monroe's PIDP grant was awarded in October of 2022, it was not
until May of 2024 that we were able to achieve a signed grant
agreement with MARAD to be able to proceed.
2. Coordination Issues: Effective coordination between various
stakeholders, including federal, state, and local agencies, has
proven to be challenging. Instances of miscommunication have
led to project delays and increased costs. Establishing more
robust communication channels would greatly enhance project
efficiency.
3. Resource Allocation: Despite substantial funding, there remains a
need for strategic resource allocation to ensure that the most
critical projects are prioritized. There have been instances
where less urgent projects received funding over more critical
ones, underscoring the necessity for a more data-driven and
prioritized approach.
Recommendations
Equitable Distribution of PIDP Funds: There is a pressing
need for an equitable distribution of Port Infrastructure
Development Program (PIDP) funds by regions, particularly for
the Great Lakes region. For example, in 2023, only two Great
Lakes ports received a combined total of $14.4 million, which
is just 2 percent of the $653 million distributed, despite the
region's robust cargo flows and critical role in the national
economy.
Streamlining the PIDP Process: The PIDP process, like many
other grant processes, can be cumbersome. The framework created
to regulate and oversee the grant process often prioritizes
compliance over construction. We urge for a balance that allows
responsible management while ensuring timely project
initiation. For instance, we received the PIDP grant two years
ago but have yet to see Federal dollars disbursed.
Clear Metrics: Expectations for performance monitoring
without clear metrics have created difficulties. For example,
criticisms for not moving containers with the Port's crane
funded through the Marine Highway Grant Program were issued
without providing specific metrics or interagency conversations
when multiple government agency approvals are necessary to
accomplish certain portions of a project. Grant programs should
consider the broader implications and roles of other government
entities involved.
Focus on Marine Transportation System: The priority of
funding should be the bolstering of the marine transportation
system, which includes support vessels and ports but equally
important the seafarers and maritime personnel required to
support the overall system. Currently, there is a heavier focus
on monitoring and managing grant funds rather than on systemic
support. There should be equitable investment in the American
flag fleet, shipbuilding, and the promotion of seafaring
occupations.
Investment in the Great Lakes: On the Great Lakes, it is
essential to shore up existing infrastructure. Unlike coastal
investments that sometimes bolster foreign transportation
systems, we need comprehensive investment in every aspect of
the process, including infrastructure, vessels, and the people
who operate them.
Conclusion
The Bipartisan Infrastructure Law represents a historic opportunity
to transform our transportation infrastructure. While we have seen
significant successes, there are areas for improvement that can enhance
the effectiveness and efficiency of project implementation. It is vital
that programs like PIDP continue to receive support and funding to
sustain and enhance our infrastructure.
The Great Lakes St Lawrence Seaway system represents the vein of
domestic manufacturing and agriculture which fuels the industrial might
and sustainability of our Nation. Investment in the Great Lakes is
direct investment in American manufacturing. Unbalanced investment in
coastal interests further subsidizes a foreign transportation network.
We are deeply appreciative of the Bipartisan Infrastructure Law and
PIDP. These initiatives are crucial not only for strengthening
infrastructure but also for injecting funds into the economy, thereby
promoting economic vitality and job creation.
Most importantly, we are eternally grateful to Senator Gary Peters
and Secretary Pete Buttigieg for their unrelenting support of the Port
of Monroe, the Great Lakes St Lawrence Seaway as a whole, and this 3rd
generation Great Lakes mariner who beams with pride anytime we shake
hands.
We appreciate the continued support of this subcommittee and look
forward to working together to build a better future for Michigan's
transportation infrastructure.
Thank you for your time and consideration. I am happy to answer any
questions you may have.
Senator Peters. Thank you, Captain. Thank you for your
opening statement.
Our third witness is Marty Fittante, who serves as the
Chief Executive Officer of InvestUP, the regional economic
development organization of the Upper Peninsula.
Before taking over InvestUP in 2019 Mr. Fittante served as
the Chief of Staff for Michigan State Senator Tom Casperson. He
also previously worked for the Michigan House Policy Office
where he worked on economic, natural resources, and
transportation policy issues.
Finally, Mr. Fittante has earned degrees from Bay College,
Ferris State University, and Wayne State University Law School.
Welcome to our committee and good to see you and look forward
to your opening comments.
STATEMENT OF MARTY FITTANTE,
CHIEF EXECUTIVE OFFICER, INVESTUP
Mr. Fittante. Thank you, Senator Peters, and good morning.
I appreciate this opportunity to offer a rural Michigan
perspective as you examine the impact of the bipartisan
infrastructure law on transportation infrastructure and
challenges communities like ours have in pursuing such funding.
Senator Peters, as you know from touring on your Harley the
UP is not only one-third the state's land mass and just 3
percent of its population it is also remote. Parts of the UP
are closer to five other state capitals than we are here today
to Lansing.
But before offering you some thought on our perspective
regionally on the bipartisan infrastructure law please let me
go off script from my written testimony. Despite the distance I
am pretty sure I just heard my team up in the Upper Peninsula
scream, no, especially Amy Berglund who you know did great
service for Senator Levin over many years.
But this may be the most important point I offer. As we
celebrate the investments from this Act it is also important,
especially today, to celebrate the simple but profound reality
of the title of this Act, that this was a bipartisan effort.
For that I join all those who are focused on solutions and
say thank you. That you helped lead a bipartisan effort here,
Senator Peters, is no surprise and in light of today's
political climate I think it is also important to recognize the
nature of your approach, recognition which is not my own.
It is that of the nonpartisan Lugar Center at Georgetown
which named you the second most bipartisan U.S. Senator in
2023. For that as a constituent I also say thank you.
Voice. In fact, that gets a round of applause.
Mr. Fittante. Agreed. The aim of the Lugar Index is to
highlight members' willingness to get results and you have done
just that here, maybe because it was a bipartisan effort, and
you have produced results here in the Upper Peninsula. Let me
briefly mention just three.
First, a nearly $20 million investment that will
reconstruct a critical corridor that connects members of the
Sioux Tribe and community members throughout the region to
essential services.
The investment will improve safety for motorists, expand
access to essential tribal resources, and establish additional
nonmotorized nature trails for recreation.
Additionally, the Chippewa County International Airport
received over $5 million that enabled the development of a
brand new general aviation terminal. The new terminal replaced
a former Air Force building built by the military prior to the
closing of Kincheloe Air Force Base in 1977 and with the rural
nature of our area will undoubtedly be critical to helping
strengthen the region's competitive economic position.
Last, we consider ourselves fortunate and excited to see
the City of Menominee, in affiliation with a local
transportation and warehousing business KK Integrated
Logistics, receive a $21 million RAISE grant.
This investment will not only transform capacity at the
existing site but it is, among other things, also expected to
enhance worker and public safety, reduce harbor and highway
congestion, result in a 25 percent increase in jobs, and
revitalize the local economy, an economy that is in direct
competition with its neighbor Wisconsin.
However, how important is this investment to the community?
Cynthia Cooper, President of KKIL, traveled from Menominee
simply to be here with you today.
These three examples illustrate how impactful the
legislation is to the Upper Peninsula and, I suspect, other
rural regions. However, speaking of rural communities, taking
advantage of the opportunity can be as challenging as this
investment is impactful.
Rural communities see challenges in not only competing for
Federal grant opportunities but applying for, accepting,
remaining compliant, tracking, reporting on, and finding the
required match. These challenges can often prove fatal.
Further, the current Federal funding landscape is
structured around competitive one-time awards that tend to
further strain the lack of local capacity. That capacity as an
issue is not a surprise when you appreciate what has taken
place with our population, both with its decline and its aging.
Our three largest age demographics are now between the ages
of 55 and 69 in the UP, which is up from 30-to 39-year-olds
just 35 years ago. That reality makes attentive and accessible
Federal staff all the more critical, Senator Peters, and as I
saw in the lead up to this testimony from Muriel's efforts,
your staff is exceptional and that starts with Aubrey Moore we
are fortunate to have manage your district.
Finally, Senator Peters, you are well acquainted with the
spirit of Sisu. It is the foundation of our perseverance in the
UP. But rather than simply persevering rural communities need
to prosper. Not a surprise law school taught me to be long.
We believe we are at an intersection in time and poised to
grow. In fact, the UP has seen population growth for the first
time in decades over the last three years. But to prosper we
need more Federal--friendly Federal programming.
So thank you, Senator Peters, not only for the opportunity
to appear before you today and for the investments of this law
that you made in the Upper Peninsula, but also for continuing
this conversation in the weeks and months ahead.
[The prepared statement of Mr. Fittante follows:]
Prepared Statement of Marty Fittante, Chief Executive Officer, InvestUP
Thank you for the opportunity to provide feedback on critical
infrastructure funding, the impact it has on rural American
communities, and the challenges we have in seeking such funding.
Chairman Peters, Ranking Member Young and all subcommittee members,
infrastructure connectivity and integration of our counties, towns and
villages is crucial to our rural health and future prosperity.
I am Marty Fittante, CEO of the non-profit economic development
organization, InvestUP, which is based in and proudly calls home, the
Upper Peninsula of Michigan. This northernmost and 100 percent rural
region spans 15 geographically large counties of Michigan's 83
counties, we are 1/3 of the State's total land mass and with a
population of just over 303,000 residents, we are just 3 percent of
Michigan's total population. As a point of reference, right now, you
are almost just as close to Washington DC as you are to Copper Harbor,
the northernmost town of the UP's Keweenaw Peninsula. We are bigger
than 9 states!
To say we are proud of our ruralness is an understatement. With
16,377 square miles of scenic landscape, 4,300 inland lakes, 12,000
miles of streams, 1,700 miles of shoreline and . . . 509 moose!, in
some parts of the region, we can go days without seeing another
neighbor or vehicle in passing. And we are okay with that.
Because, at the very same time, we can boast having three major
universities, three SmartZones, a national park, a national lakeshore,
a national historical park, a national hiking trail, an international
bridge, the only nickel producing mine in the country, one of the
longest iron ore producing mines in the country, one of the oldest
cities in the country, and international ski jumps.
Amidst all this interesting opportunity that brings students,
business travelers and tourists to the region, we also make things--
from the iconic to the sophisticated, in the UP. We make circuit
boards, snowplows, Stormy Kromer hats, Thoracic Fixation Systems,
rocket thrusters and repair kits for the Space Shuttle, and NBA and
NCAA maple hardwood basketball courts. Just to mention a few products.
All of which needs infrastructure to connect our industries and
people within the region as well as the rest of the state, country and
globe, which is becoming increasingly more interconnected and with that
provides more opportunity for rural communities like ours. We see that
reality with population gains, for the first time in decades, in 10 of
our 15 counties.
Small communities and large infrastructure projects typically mix
like Lions and Packers fans, and we have our fair share of those as
well as we share a border with Wisconsin. Our small municipalities,
economic and community development non-profits and schools operate on
limited budgets, resources and staffing. While at the same time, our
roads, railways, ports and telecommunications span a great number of
miles to bring products and people in, as well as out, effectively and
incurs tremendous expenses. Not to mention the added challenge of our
winter weather with that infrastructure.
We consider ourselves extremely fortunate and grateful to see that
the City of Menominee, in affiliation with a local transportation and
warehousing business, K&K Integrated Logistics, has been awarded a $21M
RAISE grant this year. This $26M infrastructure improvement project
will not only transform the existing site to greater capacity, it is
expected to enhance worker and public safety, reduce harbor and highway
congestion, result in a 25 percent increase in KKIL jobs, reduce
emissions, incorporate greater energy efficiencies and savings, and
revitalize the local economy--a local economy that is both in direct
competition with the State of Wisconsin as well as shares workforce and
industry, within a disadvantaged county of the region.
K&K Integrated Logistics is a private, family-owned company which
transports products and raw materials and is planning a large-scale
project that includes dock wall improvements, rail reconfiguration and
expansion, storage construction and equipment installation. The project
would not move forward without the RAISE grant to invest in this
community. Menominee County has a population of just over 23,000, the
City of Menominee just over 8,000 and K&K IL currently has 48
employees.
Successfully implementing Federal funds is as much of a challenge
as it is impactful. In another example of Federal infrastructure grants
deploying to rural communities in our region, the Chippewa County
International Airport received $5.2M from the FAA's Supplemental
Airport Improvement Program.
This award enabled the development of a brand-new general aviation
terminal which opened in 2022 at the Chippewa County International
Airport in the eastern Upper Peninsula. The new terminal replaced a
former air force building, built by the military prior to closing the
Kincheloe Air Force Base in 1977.
Chris Olson, president of the Chippewa County Economic Development
Corporation which manages the airport, says, ``This infrastructure
investment is another key project to help our community expand its
reach both domestically and internationally. The project will
ultimately strengthen the county's competitive position and help build
capacity that will generate economic opportunity for the region.''
To provide an example of demonstrated economic impact of Federal
infrastructure funds in one of our more remote and rural counties, in
2010 the Alger County Road Commission completed the repaving and
construction of county road H-58 from the City of Munising to the
Village of Grand Marais along a scenic stretch of Lake Superior and
within the Pictured Rocks National Lakeshore. Senator Peters, you might
recall this route in northern Alger County from a Harley ride in the
UP?
The roadway was promised as part of the park's enabling legislation
from 1966 but remained partially paved and largely gravel and dirt up
until the early 2000s when Congress finally passed full funding for the
$14m project. Completing the roadway effectively connected the two
rural communities and opened up the park for greater access. In fact,
the Park Service indicates that visitation to the park has increased
steadily year over year since H-58 opened in 2010, bringing at the
peak, over 1.3m tourists to the small county of only about 8,800
residents during the short summer months of 2021. Several years prior
to improvements to H-58 the park averaged under 450,000 visitors per
summer season.
While the completion of H-58 became a reality only because of the
dedication of Congressional funding, the length of time between
authorization (1966) and completion (2010) was due to sporadic and
inadequate funding. The impact is tremendous, but it took over four
decades to get to this point.
As I am sure you are well aware, these grant funds do come with
some challenges, especially for small rural municipalities. Not only
the difficulty in competing for round after round of Federal grant
opportunities, but in applying for, accepting, remaining compliant,
tracking and reporting on grant awards poses great capacity challenges
for small communities. In fact, while immensely appreciative of the
RAISE grant for the City of Menominee, Brett Botbyl, City Manager said,
``Well the grants are very labor intensive, so you almost need a grant
writer or engineering company to do the work for you.'' Deploying this
additional expertise in Menominee's case can certainly be directly
attributed to the success of the project award.
Sadly, the complexity that can come along with Federal funding
actually caused InvestUP to return a nearly $1m grant award that was
designed for workforce training because we could not, after
considerable effort, find a compliant practical use. The required
actions and collection of personal information from participants
adversely impacted the public's willingness to participate where they
could have received ``free'' funding for skilled training through our
colleges and universities.
To further support these small municipalities experiences, the
University of Michigan's Michigan Public Policy Survey found in 2023
that of statewide local government leaders, only 15 percent of township
leaders were confident they can monitor grant opportunities and only 14
percent of village leaders felt the same.
In addition, overall, 33 percent of Michigan local leaders are NOT
confident they can successfully apply for future grants or funding. In
fact, one comment from the study boldy stated, ``The application
process is what holds small townships back. Navigating Federal systems
is very intimidating. This township qualifies for many, but they barely
ever get submitted or even applied for because of the lack of staffing
and expertise.''
In the same U of M survey, leaders offered some recommendations on
how their governments could best approach grant funding opportunities
and they are consistent with comments that we have heard from municipal
leaders and non-profit leaders time and again. These include the need
for more local expertise such as hiring grant writers, not only to
write and monitor grants, but to identify available opportunities in a
timely manner.
Perhaps the most impactful approach around building that local
expertise would be a long-term, sustained funding source, that isn't
overly prescriptive, that would allow communities to build internal
capacity for planning and grant writing. Michigan's Office of Rural
Prosperity has supported efforts to build internal capacity through
their Rural Readiness Program, with small grants to rural communities
to fund grant writers, planning, and grant writing education.
``In just six months, the success of this approach has become
clear, with just half a dozen communities able to submit over $13
million in grant applications, secure over $2 million in funding, and
educate over 300 community partners on the grant writing process,''
says Sarah Lucas, Director, Office of Rural Prosperity within the
Michigan Department of Labor & Economic Opportunity. She goes on
further to say, ``These are small, one-time grants; but longer-term
investments like this in capacity would provide certainty and expertise
that could help communities look towards future opportunities, and to
plan and budget accordingly.''
Currently, the Federal funding landscape is structured around
competitive, one-time awards that tend to further strain the lack of
local capacity. The episodic nature of these funds discourages
communities from working towards long-term solutions and developing
projects for which there may or may not be funds available. More
predictable structures and funding resources for rural communities
could both streamline the process and build in certainty and capacity
for large investments. To emphasize this point, InvestUP did not submit
an application for the U.S. EDA's Recompetes pilot grant, although we
seemed to be well-suited for it, for this very reason. So as grateful
as we are for the Office of Rural Development and its efforts, more
opportunity would result by entrusting regions with the resources to
build this capacity.
An important, parallel consideration, addressed in Michigan's
Roadmap to Rural Prosperity, is the potential for funders and agencies
to reduce the time, expense, and capacity burden that local governments
and rural non-profits experience in Federal funding opportunities by
streamlining and simplifying processes related to grant application,
submittal, and reporting processes.
One such approach is to provide shorter application forms or
standardized forms and required submittals across programs and agencies
to eliminate redundant data entry and application information. Other
changes could include lowered or eliminated financial match
requirements. Another related challenge here is that urban areas and
non-profits have philanthropic funds they can also call on to use to
our competitive disadvantage to secure that funding. Further approaches
could include the allowance of in-kind matching, and inclusion of
administrative or indirect costs in grant awards, to allow communities
or organizations with limited resources to compete in grant programs.
Additionally, it would be helpful to expand timelines to allow for
planning and implementation with reduced staffing resources; and
cooperative grant agreements that feature strong funder engagement and
partnership in program implementation, to help communities and
organizations build greater administrative expertise and capacity to
successfully plan, implement, and manage grant awards.
Understandably, these issues are not easily solved over the course
of this testimony or subcommittee hearing. But we offer up our time and
further feedback if called upon to assist in any way we can to making
Federal grants true opportunities.
We do sincerely appreciate and thank you for the Federal investment
in rural community infrastructure and the opportunity to express our
appreciation as well as provide some feedback on how we can,
collectively, do even better. And arguably as importantly, we are also
happy to recommend a few scenic stretches for your next ride back in
the UP, Senator Peters.
Senator Peters. Thank you, Mr. Fittante. Thank you.
Our fourth witness is Amy O'Leary. Ms. O'Leary is the
Executive Director of the Southeast Michigan Council of
Governments, or SEMCOG, the metropolitan planning organization
for that region.
She has worked for SEMCOG for 30 years and became ED in
2017. Ms. O'Leary also holds leadership positions at the Six
Rivers Regional Land Conservancy, the Detroit Area Agency on
Aging, and the Executive Directors Council of the National
Association of Regional Councils.
Ms. O'Leary, thank you for being here. It is great seeing
you again. It is always a pleasure working with you. You may
proceed with your opening remarks.
STATEMENT OF AMY O'LEARY,
EXECUTIVE DIRECTOR, SEMCOG
Ms. O'Leary. Thank you. Thank you, Senator Peters, and
thank you for your support of our infrastructure in Southeast
Michigan.
So SEMCOG is a regional planning agency serving almost 5
million people in the seven-county area of metro Detroit. We
are a local government association of over 180 members that
include counties, cities, villages, and townships.
As the metropolitan planning organization SEMCOG is
responsible for ensuring data-driven efficient use of
transportation funds. This includes the development of our 2050
long-range transportation plan for our complex system of roads,
bridges, transit, nonmotorized transportation and freight, and
it includes $38 billion in transportation projects.
We also develop and manage a current list of federally
funded projects which for the years 2023 to 2026 totals $5.8
billion in Federal funds. Today, I will group my comments into
three different buckets.
Bucket one, the impact of discretionary grants are
transformational. One of the best examples of this are large
projects which exceed the scope of formula funding including
INFRA, RAISE, and the railroad crossing elimination program.
For example, Innovate Mound in Macomb County received $98
million through INFRA to reconstruct nine miles of roadway to
support economic development as the state's defense corridor.
The $104 million INFRA grant to help reconnect one of
Detroit's historically black and economically strong
neighborhoods which was divided and devastated by the highway
construction of I-375, as was mentioned earlier. This
reconstruction will convert a sunken freeway to a lower speed
surface level boulevard.
The third project is a $24 million railroad crossing
elimination grant program in the City of Monroe. This project
will improve response times for emergency vehicles, ease
congestion and increase safety for pedestrians and motorists.
These projects are, indeed, transformational and we
strongly encourage these programs to continue in
reauthorization. The need is great. For example, we have over
1,000 at-grade crossings in southeast Michigan and when a grade
separation needs to occur the cost is between $20 million and
$100 million.
The good news is that partnerships are happening. Wayne
County in partnership with MDOT and Romulus, Hurton Township,
and CSX will be submitting for the separation on Pennsylvania
Road with the state adding millions in match.
Discretionary funds are also essential for emerging issues
such as addressing flooding through the Protect program and
addressing the devastating spike in fatalities on our roadways
through the Safe Streets for All program.
Safety is one of the several issues best understood and
addressed at the local level. We have one fatality a day in
southeast Michigan. Last year 100 of them were either
pedestrians or bicyclists.
In response our region has aggressively pursued funding to
tackle this issue and we received over $80 million in planning
and construction funds. Reauthorization of the program should
consider this national crisis and move Safe Streets for All to
a formula program.
The second bucket is the critical role of formula funds.
The majority of southeast Michigan's 25,000 miles of roads and
almost 3,000 bridges rely on formula funds. The consistent
funding source is essential for implementing advanced planning
and data-driven approaches.
While discretionary funds have been transformational, time
and financial resources, each in short supply for local
governments, are needed to compete for these funds.
To more effectively allocate resources and enhance the
Nation's transportation systems a balanced approach is needed.
The balanced approach should increase formula funds. Our roads
and bridges continue to be in disrepair despite significant
investments in recent years.
For example, depending on the ownership our road conditions
receive a poor rating from 22 up to 47 percent of our roads.
Local and county roads are by far in the worst condition, which
threatens our economy as well because over 1,500 miles of them
are freight and truck routes.
The third bucket is the critical role regions and MPOs play
in the process. Regions ensure a data-driven approach occurs
including project selection for these formula-based funds that
is over a billion dollars annually.
This includes suballocated programs such as the new carbon
reduction program and the highly successful transportation
alternatives program.
Second, we convene and support communities to ensure they
are taking advantage of the discretionary funding
opportunities. Currently, we bring together communities in our
region, which predominantly fall into the Justice 40
designation to collaborate on projects and ideas and provide
needed support.
Regions also apply on behalf of local communities and pass
those funds on to communities, which is what we have done with
$10 million of this Safe Streets for All funding.
Finally, we are a voice for local communities and the
public regarding their infrastructure concerns and
frustrations.
One frustration was the lack of financial and technical
ability to apply for these highly competitive funds. MDOT and
the state of Michigan's infrastructure office have been strong
partners for us locally.
In fact, the MIO office has developed a program to write
grant applications for communities through a regionally vetted
program.
So I would like to conclude by thanking you for this
opportunity and really acknowledging the important role that
infrastructure is in southeast Michigan and the role that
regions play.
Thank you.
[The prepared statement of Ms. O'Leary follows:]
Prepared Statement of Amy O'Leary, Executive Director, SEMCOG
Thank you Senator Peters, Ranking Member Young, and members of the
Committee for the opportunity to testify today.
My name is Amy O'Leary, and I serve as the Executive Director of
SEMCOG, the Southeast Michigan Council of Governments. SEMCOG is a
regional planning agency serving almost 5 million people in the seven-
county area of Metro Detroit. We are a local government association
with over 180 members that include counties, cities, villages, and
townships.
As a Metropolitan Planning Organization, SEMCOG is responsible for
ensuring data-driven, efficient use of transportation funds. This
includes the development of our 2050 long-range transportation plan for
our complex system of roads, bridges, transit, nonmotorized
transportation, and freight and includes $38 billion in transportation
projects. We also develop and manage the current list of federally
funded road projects, which for 2023-26 totals $5.8 billion in Federal
funds.
Today I'll group my comments into three buckets:
Bucket 1--The impact of discretionary grants can be transformational.
One of the best examples of this are large projects, which exceed
the scope of formula funding, including INFRA, RAISE, and the Railroad
Crossing Elimination Program. For example, Innovate Mound in Macomb
County received $98 million through the INFRA Program to reconstruct 9
miles of roadway to support economic development as the State's defense
corridor.
A $104-million INFRA grant will help to reconnect one of Detroit's
historically Black and economically strong neighborhoods, which was
divided and devastated by the highway construction of I-375. The
reconstruction will convert a sunken freeway to a lower-speed surface
level boulevard.
A third project is the $24 million Railroad Crossing Elimination
Grant Program in the City of Monroe. This project will improve response
times for emergency vehicles, ease congestion, and increase safety for
pedestrians and motorists.
These projects are indeed transformational, and we strongly
encourage these programs continue in reauthorization. The need is
great. For example, we have over 1,000 at-grade crossings in Southeast
Michigan. When a grade separation needs to occur, the cost is between
$20- and $100 million. The good news is that partnerships are
happening. Wayne County, in partnership with MDOT, Romulus, Huron
Township, and CSX will be submitting for the separation on Pennsylvania
Road with the State adding millions in local match.
Discretionary funds are also essential for emerging issues such as
addressing flooding through the PROTECT program and addressing the
devastating spike in fatalities on our roadways through the Safe
Streets for All program. Safety is one of several issues best
understood and addressed at the local level. We have one fatality a day
in Southeast Michigan. Last year 100 of the people killed were
pedestrians or bicyclists. In response, our region has aggressively
pursued funding to tackle this challenge and we have received $80
million in planning and construction funds.
Reauthorization of the program should recognize this national
crisis and move Safe Streets for All to a formula program.
The second bucket is the critical role of formula funds.
The majority of Southeast Michigan's 25,000 miles of roads and
almost 3,000 bridges rely on formula funds. This consistent funding
source is essential for implementing advanced planning and data driven
approaches. While discretionary funds have been transformational, time
and financial resources--each in short supply for local governments--
are needed to compete for discretionary funds. To more effectively
allocate resources and enhance the Nation's transportation systems, a
more balanced approach is needed.
This balanced approach should increase formula funds. Our roads and
bridges continue to be in disrepair despite significant investments in
recent years. For example, depending on the ownership, our road
conditions receiving a ``Poor'' rating range from 22 up to 47 percent.
Local and county roads are by far in the worst condition, which
threatens our economy as over 1,500 miles of these roads serve as
freight and truck routes.
The third bucket is the critical role regions and MPOs play in the
process.
Regions ensure a data-driven approach occurs, including project
selection for formula-based funds with over $1 billion annually coming
through our program. This includes suballocated programs including the
new Carbon Reduction Program as well as the highly successful
Transportation Alternatives Program.
Second, we convene and support local communities to ensure they are
taking advantage of the discretionary funding opportunities. Currently,
we bring together the communities in our region which are predominantly
fall into the Justice 40 designation to collaborate on project ideas
and provide needed support. Regions also apply on behalf of local
communities and then pass the funds through to our communities. This is
what SEMCOG is doing with our $10 million Safe Streets for All award.
Finally, regions are a voice for local communities and the public
regarding their infrastructure concerns and frustrations. One
frustration was the lack of financial and technical ability to apply
for highly competitive funds. MDOT and the State of Michigan's
Infrastructure Office have been strong partners for us locally. In
fact, MIO has developed a program to write grant applications for
communities through a regionally vetted process.
I would like conclude by thanking the members of the Committee for
acknowledging the important role of regions and providing much needed
funding that helps us do our job and improve the lives of our
residents.
Senator Peters. Thank you, Ms. O'Leary. Appreciate your
comments.
Our fifth witness is Mike Aaron. Mike Aaron serves as the
Business Manager for the Laborers Local 1191 and President of
the Michigan Labor's District Council.
He is certainly a very well respected labor leader in his
community. He also serves as Vice President of the Metropolitan
AFL-CIO and a Board Member on the Mayor of Detroit's Detroit
Employment Solutions Corporation.
Mr. Aaron, welcome to the Committee. We all look forward to
your opening statement and appreciate your leadership on so
many union issues and labor issues in general.
STATEMENT OF MICHAEL AARON, BUSINESS MANAGER AND
CHIEF OFFICER, LABORERS INTERNATIONAL UNION OF
NORTH AMERICA (LiUNA!) LOCAL 1191
Mr. Aaron. Thank you, Senator Peters, and I want to say
thank you for the work that--thank you, Senator Peters, and I
just want to say thank you for the work that you and this
Committee is doing on the infrastructure for Michigan as well
as the United States.
As you have heard, my name is Mike Aaron and I am the
Business Manager of Laborers International Union Local 1191
located in Detroit, Michigan. The Michigan Laborers District
Council represent more than 13,000 skilled trades persons in
the state of Michigan.
Laborers Local 1191 is one of seven LiUNA! locals in the
state. It is also the largest in the state of Michigan,
representing more than 5,700 active construction skilled trades
persons in its geographic jurisdiction of Wayne and Macomb
Counties.
Local Laborers 1191 members primarily work on building
trades and heavy and highway and bridge construction projects.
I have been a member of Laborers Local 1191 since 1984. I have
been in the union administration leadership since 1988 for over
37 years, good, bad or indifferent.
As business manager of Laborers Local 1191 some of my
duties consist of upholding the constitution of the
International Union Organization, managing the business affairs
of Local 1191 union, protecting the rights of members and
laborers' jurisdiction on work projects, enforcing all
collective bargaining agreements and securing fair wages and
benefits through organizing, policy support, and collective
bargaining.
A large part of my responsibility as business manager of
Laborers Local 1191 is to vet and endorse policies and
candidates that support the core principles of the
organization.
One of our core principles is one man one job. This means
our members should be able to take care of their families with
the earnings from one job. This, among other reasons, is why
LiUNA! International and Local 1191 support the bipartisan
infrastructure package.
The package has supported large investments in highways,
street, and bridge construction, which guaranteed good-paying
jobs for the Local 1191 membership and the Michigan laborers.
Most important to the construction industry and myself and
my membership of the funds in the bipartisan infrastructure law
are covered under the prevailing wage protection of Davis-Bacon
Act.
The Davis-Bacon Act is very important to labor. This means
that billions of dollars are coming into municipalities to
support investments in energy technologies that will help raise
standards for workers and industries like charging
infrastructure, electrical vehicles, and clean water
infrastructure.
The bipartisan package also created unprecedented
investments in underserved communities and expand pathways to
good-paying jobs, especially for the underrepresented worker.
We know with good-paying jobs come the need for proper
training. The law accounted for the need for training by
creating training center partnerships being labor unions and
employers for the installation of maintenance of energy-
efficient building technologies.
Surface transportation funds were also activated to create
registered apprenticeship and pre-apprentice programs.
Finally and most importantly, municipalities and local
governments are the first time--for the first time ever
receiving Federal funds to establish local hiring programs with
economic or geographic preference to incentivize people living
in these areas to pursue trade careers.
I am very happy to be here today because my--from my
perspective the package was an easy piece of legislation for
Local 1191 to get behind. It comes to positively impact every
facet of my membership's day to day lives.
Thank you to this committee and Senator Peters.
[The prepared statement of Mr. Aaron follows:]
Prepared Statement of Michael Aaron, Business Manager and Chief
Officer, Laborers International Union of North America (LiUNA!) Local
1191
Opening Remarks/Introduction (5 Minutes)
My name is Michael Aaron, and I am the Business Manager of Laborers
International Union of North America (LiUNA!) Local 1191 located in
Detroit, Michigan.
The Michigan Laborers District Council represents more than 13,000
skilled Tradesmen and women in the state of Michigan. Laborers' Local
1191 is one of 7 LiUNA! locals in the state of Michigan. It is also the
largest in the state of Michigan representing more than 5,700 Active
Construction skilled tradesmen and women in its geographical
jurisdiction of Wayne and Macomb counties.
Local 1191 Members primarily work on building trades and heavy
highway and bridge construction projects.
I have been a Member of Laborers' Local 1191 since 1984. I have
been in Union Administration leadership since 1988--over 37 years!
As Business Manager of Laborers Local 1191, some of my duties
consist of:
upholding the constitutions of the LiUNA! International
organization;
Managing the business affairs of the Local Union;
Protecting the rights of Members and Laborers' jurisdiction
on work projects;
Enforcing all collective bargaining agreements; AND
Securing fair wages & benefits through organizing, policy
support & collective bargaining.
A large part of my responsibilities as Business Manager of
Laborers' Local 1191 is to vet and endorse policies and candidates that
support the core principles of the Organization. One of our core
principals is--one man, one job!
This means that our members should be able to take care of their
families with the earnings from one job.
This, among other reasons, is why the LiUNA! International and
Local 1191 supported the Bipartisan Infrastructure package. The package
has supported large investments in highway, street and bridge
construction, which has guaranteed good paying jobs for the Local 1191
membership.
Most important to the construction industry and my membership, most
of the funds in the Bipartisan Infrastructure Law are covered under the
prevailing wage protections of the Davis-Bacon Act. The Davis-Bacon Act
is very important to Labor.
This means that billions of dollars are coming into municipalities
to support investments in energy technologies that will help raise
standards for workers in industries like charging infrastructure for
electric vehicles and clean water infrastructure.
The bipartisan package also created unprecedented investments in
underserved communities and expanded pathways into good jobs,
especially for underrepresented workers.
We know that with good paying jobs comes the need for proper
training. The law accounted for the need for training by creating
training center partnerships been Labor Unions and employers for the
installation and maintenance of energy efficient building technologies.
Surface transportation funds were also activated to create
registered apprenticeship and pre-apprenticeship programs.
Finally, and most importantly, municipalities and localities are,
for the first time ever, receiving Federal funds to establish local
hiring programs with economic or geographic preferences to incentivize
people living in these areas to pursue trade careers.
I am happy to be here today because from my perspective, the
package was an easy piece of legislation for Local 1191 to get behind.
It continues to positively impact every facet of my Membership's day-
to-day lives.
Thank you.
Senator Peters. Thank you. Thank you, Mr. Aaron, for those
comments.
Mr. Wieferich, I am particularly excited to see the
progress that it has made to restore the Michigan Central
Station in Detroit and I am currently working to secure an
additional $3 million in funding through the congressionally
directed spending program to make Michigan Central an
intermodal station again with passenger train service, which I
think will be transformative in so many ways.
MDOT received a corridor ID grant under the bipartisan
infrastructure law, as you know, to begin planning how to
extend passenger rail service into downtown Detroit and even
across the border into Windsor.
So my question for you is once this planning process is
over I am sure implementation funding is going to be needed to
carry out this project.
Could you please discuss the importance of Congress
continuing to support the corridor ID and Federal/state inner
city rail program to enable train service like this?
Mr. Wieferich. Absolutely, and--yes, the Michigan Central
opportunity that we have in front of us is extremely exciting.
I am a transportation person, obviously, but when I see the
opportunity for us to be able to connect so many modes together
it just makes sense.
So the idea at Michigan Central would be not only to have
passenger rail service back through there but also connect with
our inner city bus systems along with local transportation
systems to create and really build out and maximize our network
as a whole.
You mentioned the corridor ID grants that we are very
appreciative of. We actually have corridor ID work, which is
identification and development work that we are doing on
three--all three of our passenger rail services from Grand
Rapids and Port Huron and Detroit to Chicago.
In addition, we are actually supporting an Ohio grant that
is looking at traveling east out of Detroit down toward Toledo
and Cleveland.
So, obviously, we have gotten through step one in the
corridor ID process and getting our grant agreement set up.
Federal rail, or FRA, has been extremely helpful. We have a
very good working relationship with them. Look forward to
continuing that.
I think you mentioned the importance of continuing this.
Yes, we are in study phase right now. We are looking at the
opportunities and what could be.
But we are going to need the resources to be able to
actually implement the things that we know will allow those
projects to get completed, to opening the doors to greater
reliability and better service and expanded frequencies.
So we are very much looking forward to what is next,
especially for the Detroit to Windsor connection that we are
talking about, working with Amtrak and Canadians' VIA as well
and we really look forward to that.
I think one thing I would like to mention and is a bit of a
challenge is that there is not any formula funding available
for passenger rail, and as I had mentioned in my opening
remarks the more certainty we have around that the better we
can be at planning and most efficiently actually delivering
those projects.
So thank you.
Senator Peters. May I just follow up? You mentioned about
Windsor involved, which is interesting. Being on an
international border makes it a particularly interesting
project.
But that could also add some complexity to everything. So
my question for you is has MDOT received sufficient interagency
coordination to carry that out, particularly given the fact we
have got an international border? And is there any additional
support either related to that or any additional support that
Congress can lend?
Mr. Wieferich. Yes, I really appreciate that offer. But to
this point we have actually had very good coordination both
with the Federal partners and with our Canadian partners. So it
is still a concept right now that is gaining momentum and as we
need assistance to help us with some barriers we will certainly
reach out.
Senator Peters. Great.
Captain LaMarre, the Port of Monroe is vital to the Great
Lakes shipping network and the country's supply chain as a
whole--and I do not need to tell you that, you tell me that
every opportunity you get to do that--to ensure that efficient
transportation of highly diversified cargo, you mentioned in
your opening comments limestone, asphalt, steel coils, wind
energy components. The list can go on.
And that is certainly why I was happy to support your $11
million award through the Port Infrastructure Development
Programs, also PIDP, to drive the upgrades.
But I understand that these improvements include the
rehabilitation of operating areas responsible for exporting
wind energy components, a key part of the Port of Monroe's
operation as the county's only port host to a wind
manufacturer.
So my question for you, Captain LaMarre, is could you
expand on the ways in which the PIDP grant helps ensure a
robust and resilient supply chain and ensures that the port can
meet the growing freight volumes in critical sectors such as
agriculture, construction, and clean energy infrastructure?
You have got a lot on your plate.
Mr. LaMarre. Thank you, sir.
We see the Port of Monroe as the gateway to Michigan ports.
We are the first stop.
As Michigan's gateway port we believe that we are the front
door to the intermodal transportation in the region. The
infrastructure bill and what it will do through PIDP for the
Port of Monroe will not only rehabilitate infrastructure that
was constructed in 1932 when the port was created but it will
also expand our ability and connectivities to other modes.
Ports in general, the Great Lakes State, of course, having
more ports than any other state, and the Great Lakes and St.
Lawrence Seaway system were built up in wartime above anything
else and the maritime industry as a whole is often overlooked
because, quite frankly, we have such little impact on the
public.
People sit at rail crossings. They see trucks on the
highway. The ships come and go in the night with the least
environmental impact in existence to move the most tons per
mile with the least environmental footprint at the Port of
Monroe, enhancing our ability to handle both domestic and
international freight and also bolster existing state and
Federal investment.
As you mentioned, the Port of Monroe is home to the only
wind tower manufacturer in the country located at a port.
I can tell you that at the height of the pandemic the Port
of Monroe had its busiest season on record and that was because
the port serving as a regional distribution hub for General
Electric Wind was both manufacturing and sending out wind
towers but also bringing in additional wind towers from Canada
and also by rail bringing in the hubs and nacelles and serving
as a distribution point for all of those components.
Having the ability to utilize the port's infrastructure,
which in that case was funded through the state of Michigan,
was critically important and this investment will represent the
single largest investment in the Port of Monroe's history.
I speak to you today, though, not just as the Port of
Monroe but as the American Great Lakes Ports Association as a
whole, and it will continue to be critically important not only
to renew the legislation but to ensure that the Great Lakes are
represented equitably with the coasts because as it stands it
has been a much smaller percentage that has gone to Great Lakes
ports than that of our coastal competitors.
However, while there is room for improvement it undoubtedly
is going to pave the way for the most significant enhancements
that our port and others around the system have ever seen.
Senator Peters. Right. There is no question we have to make
sure our coast is represented there and we will continue to
fight. We say we have the East Coast, the West Coast and the
best coast.
Mr. LaMarre. Amen.
Senator Peters. We are going to be fighting for the----
Mr. LaMarre. That gets an amen.
Senator Peters. We will be fighting for the best coast.
Mr. Fittante, as you discussed in your testimony the
ability for rural areas to compete for Federal funding can be
very different from both suburban and urban jurisdictions and
the substance of the infrastructure needs themselves are also
very different as well.
So if you could expand for the Committee on how
infrastructure needs differ in the Upper Peninsula specifically
but also what types of infrastructure are most needed?
And, finally, how has the bipartisan infrastructure law
supported those needs and equally as important what do we need
to be doing in the future to build on what we have done so far?
Mr. Fittante. Thank you, Senator.
I guess I would look at it in two ways. I think, first of
all, the Act addressed some unique needs in the Upper Peninsula
very well.
We certainly have a need for broadband, as other
communities do, but particularly acute in rural communities and
the Act has followed on to some of the Federal investment that
is already making a meaningful difference there.
Additionally, when you look at what the Act does around
reclamation of mines, again, very important for the legacy that
we have around abandoned mines.
And then, additionally, it provides for EV chargers. I
think from our perspective maybe there is a little bit
different way to look at that type of investment and how that
is unique to the Upper Peninsula, and as we look to electrify
what does that mean toward outdoor recreation and what is going
on with outdoor recreation mobility and do you electrify trails
along those ways.
We see, as I talked about population, great opportunity
around water, climate, and outdoor recreation and if you look
at Bentonville, Arkansas, it is an example of that.
They credit their focus on outdoor recreation to attracting
1,000 new people a month to that community and if Bentonville
can do that we should be eating their lunch in terms of what we
have with regard to the topography, the geography, and the
climate around outdoor recreation.
Additionally, as you well know from, I think, the last time
we had a chance to talk in person, when you tried to fly into
Marquette and struggled to get there to drop a puck at the NMU
game--go Wildcats--air service is a critical need that is
really challenging regionally, and I think from our perspective
we have got to figure a way to address that issue because it is
so critical.
From our lens it is not a transportation issue alone. It is
really an economic development issue and to get in and out of
the Upper Peninsula right now in light of what the current
flight schedule looks like, in light of what the investment
looks like, it is really a 3-day business trip.
And as we try to develop business, as we try to attract
business, that is largely a nonstarter and when I look at what
we are doing around some sophisticated stuff with technology
and entrepreneurship we have got to figure out what a solution
to air service looks like.
And then, additionally, I think the big difference for us
regionally as opposed to other parts of the state is our state
trunk lines--and thank you, Mr. Director--are in really good
shape.
It is our local roads that are really our challenge, and so
what can we do to make that investment in our local roads to
really kind of match what you see as you come into our
communities.
When you talk about what we can do to ensure that we are
better able to compete I will offer you three different ideas
quickly, Senator.
First, good planning leads to good projects and good
projects get funded. The challenge for us is getting
communities focused on planning and what they need rather than
chasing whatever dollars may presently be in front of them.
I think training communities on planning, prioritizing, and
implementing efforts to help redevelop themselves is critical.
Most rural cities, villages, and townships are short
staffed to start with and let alone have a staff person focused
on getting a municipality in a position to plan and implement
the opportunity that is presently in front of them and need
technical assistance, and that was the case with that KKIL City
of Menominee grant.
They had to--really, a need for a grant writer engineering
firm to help define that project, compete, and submit the
application. So I can certainly expand upon that later,
Senator, but those certainly would put us in a pretty good
position to compete.
Senator Peters. Great. Thank you. Thank you.
Ms. O'Leary, the RAISE grants authorized by the bipartisan
infrastructure program offered one of the more flexible, high-
value opportunities for communities to fund complex and high-
priority local projects.
Southeast Michigan has received several RAISE grants
including $16 million for the City of Pontiac for the Pike
Street Clinton River Trail connector project, $8.5 million for
electrical vehicle charging in Wayne County, and over $25
million for the City of Detroit to reconstruct a portion of
Michigan Avenue with cutting-edge mobility technologies
incorporated into that corridor.
Could you speak to the importance of retaining the RAISE
grant program in the next surface transportation
reauthorization bill?
And if you would also share with the Committee any
recommendations you have to improve the program when we work to
reauthorize that bill.
Ms. O'Leary. Right. Absolutely. Thank you.
So one of the great things about the RAISE program is that
it is a way to fund large projects that the formula funding
just cannot do, and I think whether it was raised in INFRA the
importance for those large projects to be retained in
reauthorization is critically important.
The other thing, as you noted, with what got funded in
southeast Michigan is the variety and transportation needs and
solutions are not singular and so being able to allow for what
makes sense in Pontiac may be different than what makes sense
in Detroit, and so this does that and we are very appreciative
of that.
I think another reason it was successful is it is a known
program. It has been around a while.
I think both administratively it is known and also to the
applicants it is known. So scaling it up was wise. It is not
seen as a new program that people have to understand better.
Because it is such a large amount of dollars I think the
applicant is pretty flexible with doing their best with meeting
timelines and other requirements but I do think there are some
things that we could do a little bit better and one is if
partial funding is awarded to really work with the applicant
about what that means, because it is so much money even MDOT
has trouble when it is partially funded and they run the
biggest program in Michigan.
So when a smaller community would receive partial funding
their avenue to add to that pot is pretty limited. So that
would be one recommendation.
And the second would be just ensuring that the MPO is
involved and you all in your group--that you do a great job of
making sure that you hear from the MPO for congressionally
directed spending awards and that goes back and forth in that
we make sure that it is--can get put in our Transportation
Improvement Program--our TIP--but also that it makes sense for
our region and that we are ready for the funds when they get
here.
So there are times when we see large funding announcements
and we had no idea that they were happening in our region.
So, thank you.
Senator Peters. Great. Well, thank you.
Mr. Aaron, as you mentioned in your opening comments, the
Davis-Bacon Act requires contractors and subcontractors to pay
workers employed on Federal projects no less than the local
prevailing wage and benefits received by those doing similar
work on similar projects in the area.
This is something I feel very strongly about as well and
worked very aggressively to include in the bipartisan
infrastructure package to make sure that those projects were
subject to the law and we had good-paying jobs being created.
But for the Committee's benefit could you describe how the
Davis-Bacon Act requirements have been applied on
transportation infrastructure projects here in Michigan since
the passage of the law and what impact that these provisions
have on your members? What does this mean to a member of your
union and other unions across the state?
Mr. Aaron. Well, thank you for the question.
The Davis-Bacon Act requires on these transportation
infrastructure projects flowing from this bipartisan package
has helped to ensure fair treatment and appropriate
compensation for my members and all trade persons that work on
these projects.
These requirements also help make for plan--they keep the
level playing field for the contractor that bid on these
projects. It makes sure that these contractors are paying their
workers the same.
That means that they are properly classified when paying
these workers. They pay them steadily, weekly. This means a lot
to our membership and all trades persons that is working under
this infrastructure package.
The reporting of these employers that they have to make on
a weekly basis to the Department of Labor that--what wages they
are paying and what classification that they are paying these
wages under, and I must say that the Davis-Bacon wage is really
a big thing for my membership because the Davis-Bacon wage is
slightly higher than our normally collective bargaining wage
that we have for this area.
So my members and some of the other trades persons members,
is making more money than they have ever made. So this is very
important to our members and their families that they are paid
weekly, the playing field is level, and they are paid properly
and they have to account for it.
Senator Peters. Excellent. Thank you, Mr. Aaron.
My next question is going to kind of go to all of you and
anyone can jump in in any order that you would like.
I have often heard from stakeholders that a lack of grant
writing experience and capacity as well as just basic knowledge
of Federal programs is perhaps the primary barrier to assessing
Federal funding that we are talking about now with all the
benefits. But it only benefits you if you actually can get it
and get it awarded to you.
And I know some of you have actually mentioned this in your
testimony already and that is why I have introduced the
Streamlining Federal Grants Act to direct all agencies to
make--just to make the process easier to understand and to
apply for.
Should not have specialized training. You should be able to
get this, particularly if you are in an underserved or rural
community it is difficult to have that kind of expertise and
they need assistance, clearly.
So if each of you could expand on how the need for
technical assistance has impacted communities and how your
organization has attempted to address that need and what should
Congress be doing?
So it is open to any or all of you. Who would like to jump
in? Ms. O'Leary, you want to jump in first?
Ms. O'Leary. Sure. Thank you. Great question.
I think one of the biggest challenges of the bipartisan
infrastructure law has been the ability and the capacity to be
able to access the funds.
When it comes to local capacity assistance I know that the
Federal Government does their best, forms Federal navigators,
and that funds a couple communities maybe in each state to be
able to receive that kind of assistance. But even that is not
what needs to happen.
The state does not have the capacity or the local knowledge
to serve in this role but regions across the country do. We
bring communities together for all types of reasons and they
trust us.
We see the big picture but we also understand their local
priorities and one example is bringing together the Justice 40
communities to make sure that they can understand what those
opportunities are.
So when we look at the challenges it is understanding the
opportunity, the match, the grant writing, the contractor
selection, the grant reporting. All of those feed into it.
Communities cannot afford $20,000 to $100,000 to apply for
a grant. SEMCOG just applied for the climate pollution
reduction grant and spent $40,000 to not be successful, and
that happens but it is a lot of money.
The Michigan Infrastructure Office is a good start. Formula
funds can help avoid some of this because we are able to pass
it through. Part of my PL or my planning dollars I pass through
directly to local communities to do local planning to support
our regional priorities.
So we are passing some of the funds through ourselves, as I
mentioned, with the Safe Streets for All grant but also from
some of the GLRI money that we have, and one of the things we
are doing now is adding money in there to help do contractor
selection and procurement for the communities and assistance
with the inspection of the property during construction as well
as the reporting requirements for them if they do not have the
capacity to do that. Thanks.
Senator Peters. Anyone else? Captain LaMarre?
Mr. LaMarre. Those were excellent comments because the port
community, through PIDP and the Port of Monroe, shares very
similar sentiments.
While the funding is outstanding, I always say to my team
when applying for grant funds there is only free cheese in a
mouse trap, and so the regulatory process that you can undergo
throughout all of this can be very tasking and there are a
couple of key points to make here.
You mentioned Justice 40, and I think that is very
important because the Port of Monroe is within a Justice 40
community, and one of the barriers to entry is not just the
grant writing costs that are incurred which, of course, those
costs are public dollars.
It is also the administration if you were to get the grant.
But the local match component for distressed communities is a
barrier to entry and for smaller ports the local match
component has been a barrier to entry.
Thankfully, the Port of Monroe has had the support of
Governor Whitmer and our director of MDOT to answer the call as
it relates to the local match funding for our PIDP grant. But
many other ports cannot and the recurring costs of the process
is also another component.
We have created--and hearing streamlining and grants in the
same sentence when you are talking about legislation just gets
me excited. So streamlining that process because what we have
created is a cottage industry of regulating, monitoring,
reporting, and following up on the funds that we received, and
what we want to see is the efficient and cost effective
implementation of these grants but also the construction of
that infrastructure.
We want to see the public dollar go as far as possible and
the current process needs improvement.
Senator Peters. Great.
Mr. Wieferich.
Mr. Wieferich. Obviously, Ms. O'Leary and the captain did a
wonderful job of explaining this.
But just to put kind of the state DOT perspective in there,
we think of ourselves as a pretty robust agency with a lot of
resources but we actually have hired assistance in there in
getting expertise on the grant writing narratives, on the cost
benefit analysis, on a lot of the administrative stuff that it
really takes to really be successful.
For the locals we do provide letters of support where it
passed through for some of the funding that comes through. So
we work very closely with folks on that. But we do not have the
ability to be that bigger resource.
Thankfully, like we mentioned before, we do have the
Michigan Infrastructure Office that has a technical assistance
program for local units of government and planning
organizations, tribal organizations, to be able to help draw
that infrastructure money to Michigan.
So not really saying a whole lot more new but just, again,
from the state perspective.
Senator Peters. Right. Thank you.
Mr. Fittante.
Mr. Fittante. Senator, if I could just briefly add.
To the captain's point, we have been caught in that mouse
trap and so we actually had to, as I provided in my written
testimony, return $950,000 to the state. Critical opportunity
for our region.
It was all around workforce development and, unfortunately,
it was pass through dollars and we just could not, after nearly
a year of sustained effort, figure out how to navigate that to
get those dollars in partnership to one of the six higher
education institutions in the UP.
And I think the points have been well made. Let me just
offer you one example of where I think opportunity is and it
really gets to the point Ms. O'Leary made about empowering
regions.
We have been fortunate to have a great partnership with the
Michigan Economic Development Corporation and have been
entrusted with some funds from them that are really not
prescriptive.
Part of what we have done with that is to try to tackle
this issue around capacity and technical assistance, and in
partnership with Northern Michigan University we pushed
$200,000 into a partnership that essentially creates a fellows
program where we take a master's level student, we pay that
student on behalf of a local municipality or a nonprofit, and
we embed them with that nonprofit or local municipality. CDEM
does something similar.
And so I think to the extent that you can empower regions
through nonprescriptive ways and help to provide that funding.
We are really, in a way--in a cost effective way--able to help
tackle that challenge and I think this is a new but just one
example of kind of the approaches we are looking at and I think
the Office of Rural Development here in the state--give
Governor Whitmer so much credit for establishing that office,
one of only two in the country at the time it was established--
are doing a lot of similar approaches for really cost effective
return.
Senator Peters. Yes. Good. Very good.
Mr. Wieferich, as you know, a key part of achieving our
service transportation goals is also investing in transit
systems, which is why the bipartisan infrastructure law
provided historic support for transit agencies.
In particular, I have championed the no and low emissions
bus grant program as well as the bus and bus facilities grant
programs, which was--were expanded under the legislation
tenfold.
In Michigan these programs not only benefit our environment
and transit reliant communities but they also support
manufacturing jobs here in Michigan in the commercial vehicle
supply chain, which is significant.
Recently, over $72 million in funding for bus transit was
announced for our state, going to Detroit, Ann Arbor, Grand
Haven, and Fulton, Michigan.
So my question for you is would you please describe what
MDOT's role has been in supporting these transit agencies from
the state's perspective and any recommendations on how we
should move forward with these programs?
Mr. Wieferich. Yes, certainly.
We are very involved with three of those. I will say the
Fulton one was actually a tribal transit grant that is direct
to the tribe, the Nottawaseppi Huron Band of the Potawatomi.
But for the Detroit, Ann Arbor, Grand Haven, the state will
be providing the match for those and we will also be working
closely with those entities to make sure that they are
following the federally compliant procurement procedures.
We kind of go back to some of the rules and regulations. If
you do not use them all the time there are things that locals
are going to need as support to make sure that things do not
get jeopardized.
So we are very happy that we got these urban agencies that
have received these low/no grants. We will say, however, that
we have tried to support some of the local or the rural
agencies and we have kind of coordinated an application--a
single state DOT coordinated application--for the rural
agencies.
We have talked to FTA, tried to get advice about what is
going to be competitive and we just have not gotten there yet.
So the urbans it is great. Obviously, a lot of need for that
infrastructure.
But we are also looking for ways on how we can help the
rural agencies be successful in the implementation of alternate
fuel vehicles.
Senator Peters. Thank you.
Captain LaMarre, I want to follow up on your point about
the Great Lakes receiving more PIPD funding. As you are well
aware, millions of tons of maritime cargo are moved through our
Great Lakes ports.
However, as you mentioned, in 2023 the Great Lakes ports
received only two percent of the PIDP grants nationwide,
despite this tremendous volume coming through.
So, Captain LaMarre, can you expand on why it is essential
that Great Lakes ports start receiving their fair share of this
program and what changes MARAD and Congress should consider to
make this possible?
Mr. LaMarre. You are getting my heart going.
Senator Peters. I know.
Mr. LaMarre. So here we go.
Senator Peters. Get your adrenaline moving.
Mr. LaMarre. Yes, sir, you better believe it.
The reason that the Great Lakes should receive their fair
share of port infrastructure development program funding is
that we are talking about the heartland of America's
transportation network.
We are talking domestic goods that are critical to keeping
our economy going. While investment in our coastal ports is
important, investment in an unbalanced manner to the extent
that it is subsidizing a foreign transportation network.
Ultimately, we are subsidizing the infrastructure to bring
in Toshiba TVs versus moving Michigan soybeans. Ultimately, the
Great Lakes, whether it is a set aside and/or an equitable
percentage, should be on a level playing field with the coasts.
We are American manufacturing, we are American flagged
shipping, and it is very important to look at what are the
induced effects, what are the geopolitical implications, and
what are the outcomes to the general public--how are these
dollars ultimately affecting American citizens across the dock
and the towns that they live in.
Senator Peters. Thank you.
Mr. Fittante, I was so pleased to support the City of
Menomonee's application for a RAISE grant award of over $21
million for the Port of Menominee operated by KK Integrated
Logistics.
It included the installation of rail infrastructure that
was needed to transport freight from the harbor to customers
all around that region.
The Port of Menominee is a key gateway for renewable energy
into the Midwest after making significant investment to handle
the wind energy shipments coming in there.
So my question for you, sir, is could you speak to how
success of this grant and the Port of Menominee opens commerce
to rural areas all through the upper Midwest but in particular
to Michigan's great and wonderful Upper Peninsula?
And also what lessons do you think future UP RAISE grant
programs can learn from that successful application? How can we
replicate that?
Mr. Fittante. So, unfortunately, Senator, when we talk
about capacity we were not alongside the City of Menominee and
KKIL for this grant other than supporting it where we could.
But the real work was done by both the city and KKIL and
Cynthia and her team.
And I think the lesson that I take away is you have really
dynamic leadership there, particularly with Cynthia Cooper, and
as you are traveling on your Harley I really urge you to visit
and hear the story of how they persevered through just a
devastating fire. It is absolutely worth your time to hear that
firsthand.
In addition to the remarks I made, Senator, in my comments
about what the grant will do, let me offer you five other
specifics that will enable Menominee to improve and expand the
port and the dock wall.
It enables berthing of multiple vessels simultaneously
versus vessels having to wait and anchor at another port. It
increases opportunity for increased commerce in the port,
benefiting the immediate and surrounding economies and
businesses.
Of course, increased commerce equates to increased jobs and
employment opportunities at KKIL and other supporting supplier
companies.
Additionally, it will benefit related uses at the KKIL dock
to support Fincantieri Marine, the largest employer in the
region. Forty-two percent of its workforce comes from the
Michigan side and, therefore, the U.S. Navy and DOD.
Fincantieri has partnered with KKIL for decades to dock
vessels on their dock during times of over capacity and
launches. And then, last, the improvements the grant makes
possible enable KKIL to transport increased levels of cargo on
waterways and rails, decreased truck transportation, thereby
decreasing CO2 emissions.
Senator Peters. Right. Right.
Ms. O'Leary, the law provides a number of types of funding,
as you well know--formula and discretionary grants--some of
which, though, can be applied for regionally or locally.
Would you please discuss some of the advantages and
disadvantages of programs allowing regional or local
applications instead of solely through the State Department of
Transportation? And do you think that the bipartisan
infrastructure law strikes the right balance on this front?
Our director may want to hear the same.
Ms. O'Leary. I know, right? Well, I want to say----
Senator Peters. He is taking notes right now.
Ms. O'Leary. Yes. First, I want to say MDOT is a great
partner to SEMCOG and to the regions. Really and truly they
are.
That being said, I think there are benefits to directly
allocating funds, both the formula funds through TAP and carbon
reduction as well as the discretionary opportunities such as
Safe Streets for All.
When it comes to certain issues such as safety on our local
roadways, our communities know those issues the best and so
being able to work directly for--applying for the funds or
having that suballocation process is really a huge benefit.
One of the disadvantages like we have talked about is
really the cost to apply. From a regional perspective it has
been interesting because some of the programs, once the locals
receive the funding, are not required to be in the TIP even
though they are Federal funds. So sometimes for regions it is
hard to know, again, what got funded.
We as staff really work as the region to work one on one
when we have those suballocated funds. So for TAP or carbon
reduction we go out and meet with communities, talk about the
programs and be able to provide that technical assistance in a
better application, and then we as a region have an elected
official board that make all of those grant decisions for us. I
think that is harder to do at the state level.
Senator Peters. Right. Thank you.
Mr. Aaron, as we have discussed today, the infrastructure
law invests in a broad range of projects employing many, many
trades including the ones you represent.
It also, though, which I think is significant, for the
first time ever allowed the use of surface transportation funds
for the establishment of registered apprenticeship or pre-
apprenticeship programs.
The need for skilled workers is critical right now for the
success of this project as well as for our economy. So my
question for you, sir, is how are different unions--building
trades, operating engineers, laborers and all of our trades--
working to create and strengthen a workforce pipeline for these
projects including using those funds for apprenticeships and
pre-apprenticeship programs so we have more workers able to do
this critical work?
Mr. Aaron. Well, first of all, I would like to acknowledge
that the building trades including the laborers understand the
unique challenges construction employers have and is facing
with meeting their job demands.
But I feel and I believe labor feels--the building trades--
the answer to these challenging employer--these challenges that
employers face is and has always been registered
apprenticeships.
All of the Michigan building trades including the laborers
offer DOL-approved registered apprenticeships training. These
apprenticeship programs not only get employers the high-skilled
labor they need, they also give people the skills they need to
feed their family and maintain their place or achieve their
place in the middle class.
It is the most proven career pipeline for tomorrow's more
diverse and equitable work force. Currently, the building
trades' general apprenticeships, applications for general
laborers, seamen, masons, bricklayers, carpenters, electrical
workers, plumbers, pipefitters, operator engineers, painters,
sheet metal workers, roofers, we all are doing our best to get
that career trades person in our industry, and these things can
happen if we continue to have the investment in skilled labor
flowing for these--from these Federal dollars coming into the
state of Michigan to help get these apprenticeships off the
ground.
Senator Peters. Yes. Great. And I want to have that as one
of our main takeaways for especially our friends in the media
who are here. These are great jobs. The skilled trades----
Mr. Aaron. These are----
Senator Peters.--are great jobs. They pay great wages. You
have openings in these jobs. Your country needs you. These are
places for young people if you are looking at a future going
into the trades.
Mr. Aaron. Careers.
Senator Peters. These are careers that are great careers
that provide a good income and you can go immediately to work.
So, hopefully, we get more folks in that area. We need it from
the UP to Monroe and everywhere in between is where we need
skilled workers right now.
So I am going to wrap now and I want to thank all of you,
but we are going to--I got one kind of final question for all
of you as we wrap it up, as we--I want to kind of put this all
together because the reason we came here together was to think
about what was--what has the bipartisan infrastructure law--
what has been helpful.
So I would like you all to answer just one thing, what you
believe to be the single most significant benefit of the
infrastructure law so far? It has done a lot. We have talked
about a lot of issues.
But I would be curious as to what each of you think was the
most significant benefit of the law, and--and this is really
important--what outstanding need is there from your perspective
that this committee should keep in mind when we are
reauthorizing?
So this was a start. I think we have got a lot to talk
about. You did. It is very successful. But where do we go from
here?
What is the need you think is still out there that has not
been met adequately or one that has not even been addressed at
all? Give us some perspective.
You just--I know this is hard to distill both of those to
one but I think it would be--it would be helpful. So I guess we
will start with you again, Mr. Director.
Mr. Wieferich. Certainly. Thank you, and that is--it is a
great question and a lot to think about.
I think most significantly, obviously, the IIJA had many
facets to it but for us it allowed us to get to projects that
we otherwise would have never gotten to.
We mentioned the Lafayette Bridge. We mentioned I-375. It
allowed us to actually think about what could be.
Now, obviously, there is more need out there than just the
few projects that we mentioned. So I think, going forward, and
I do not know necessarily if it is outstanding but we need to
make sure that the investment continues so that we do have that
long-term look for planning and efficiency but also really the
long-term what you have mentioned earlier about streamlining
process.
The more we can streamline process and make it most
efficient for all that is how we are going to most efficiently
deliver work for the taxpayer.
Senator Peters. Captain LaMarre.
Mr. LaMarre. Yes, sir.
To expand on the director's comments, to me the single most
important piece of this is lasting improvement with the public
dollar.
This bill was bipartisan. Infrastructure is bipartisan. It
will stand the test of time. It will reap public benefit far
after the investment has been made.
It is apolitical. It does not ebb and flow with the
geopolitical ebb and flow of cargo and/or transportation. It is
critical to our success as a nation.
Your support of this legislation has been priceless and I
would say the last most--well, it is not the second most
important thing because at the end of the day thank you is the
single most important piece of this day.
Thank you for the opportunity and thank you, I think, from
all of us, and it is on us as well to work together, all of our
agencies, within the state of Michigan to fortify the message.
So thank you, sir.
Senator Peters. Thank you.
Mr. Fittante.
Mr. Fittante. Thank you, Senator.
I echo the captain's comments about maybe the most
important thing being appreciation for what you have done and
since he talked about the bipartisan nature I will stand on my
comments before and instead say, as I mentioned, we know what
it is like to be caught in that mousetrap and lose out and I
can give you another example.
We really felt the Recompetes program that was in place was
really well suited for a region like ours, a coal community,
and once again could not qualify.
So I think what I find most heartening about this
legislation is its diversity including its application for
rural regions. And so thank you for that.
But that is not to say that it is easy to get there and so
the one takeaway as you move forward, I think, that I would
urge you and your colleagues to consider is, to Ms. O'Leary's
point, trust the regions.
Take the bureaucracy out of our way and trust your local
partners. We can administer the program in a cost effective way
that knows the community and to be able to deliver the
opportunity.
And if you cannot do that, because I know it is difficult,
then work to ensure that we have got that technical assistance
and capacity on the ground in some way to further take
advantage of this opportunity.
Senator Peters. Yes. Great. Right. Yes, great. Thank you.
Ms. O'Leary.
Ms. O'Leary. I am lucky to be going fourth. Those were
great answers.
To add something different, I would say one of the most
significant benefits was really the recognition of safety as
being core to that legislation, and it is not just the fact
that it was able to get that money down locally, which was
vitally important.
But we all have that mantra nationally and I think being
able to continue to push the dialog about safety first is so
important for this country.
I think when we look at what outstanding need there is--it
is not sexy but road and bridge funding. What the director was
able to do was be able to apply for those discretionary funds
which allowed some freeing up of funds to do some of the roads
and bridges that we needed to do. But that is so vital.
We talked about 46 percent of the roads are in poor
condition still in our region and those are freight roads, not
just subdivision roads.
And so I think we need to really look at that investment.
Thank you.
Senator Peters. Great. Great.
Mr. Aaron, you get the last word. I know a place. But it is
a place you feel very comfortable, having the last word. So----
Mr. Aaron. Well, I think the local hire piece and its
requirements really speak volumes, and if we can keep that
going because my local has benefited and its membership has
benefited from the local hire piece.
Contractors call our office for skilled workers and as well
as workers that is embedded in those communities that the work
is being performed, and it is a wonderful thing to see a person
get an opportunity to get a good-paying job with benefits to
provide and sustain their family and help build their
communities because at the same time these people are buying
lunch in their community.
They are buying fuel in their community. They are help
building their community and that means a lot to these people,
and once these jobs are over they go on to other careers in the
industry.
So, as we say, these are careers of what they are learning
and they do not have the debt that go along with these careers.
You earn a livable, sustainable wage to sustain a family with
benefits.
To have that opportunity is huge. Thank you, Senator. Thank
you for the work that you all have done--doing and will do to
maintain this program.
Senator Peters. Well, thank you. Yes. Thank you, Mr. Aaron,
and I appreciate those comments.
This is a good way to wrap up this hearing. But before I
close I just want to thank the Lansing City Council President
Jeremy Garza--I think Jeremy was here in the audience--and
Mayor Andy Schor for letting us use their chambers here today
and for the opportunity to have this discussion.
But I also want to thank our witnesses. Thank you. Thank
you to all of you for coming in and taking a piece of all of
your very, very busy schedules to offer this testimony, to give
us your perspective.
This is something that we are going to be continuing to
work on for months and years ahead. This is not a job that is
finished. It is nowhere near being finished.
We have got a lot of work to do. I think I heard loud and
clear from each of you that this was a meaningful step forward
and there is much to be happy about. But we also understand
that it is a work in progress and we all have to lock arms
together at all levels of government, all partisanships,
everything. Put all that aside.
And ultimately, as Mr. Aaron said, this is all about people
as well, and it is in the best interest of people and our
communities as to why we make these investments collectively
across all levels of government and as taxpayers, though, they
expect money to be used efficiently and thoughtfully and
effectively, and having these oversight hearings allow us to
continue to do that work that all of you do each and every day.
So thank you.
The hearing record will remain open for four weeks. Any
senators who wish to submit questions or statements for the
record should do so within two weeks by August 6.
Witnesses will then have two weeks or until August 20 to
respond to any questions that may be follow-up questions to
you.
With that, this hearing is now adjourned.
[Whereupon, at 11:35 a.m., the hearing was adjourned.]
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