Utilities Support $1.2 Trillion Infrastructure Bill
When the bipartisan $1.2 trillion infrastructure bill finally passed and was sent to President Biden to sign into law on 11/5/21, energy and utility industry players applauded it. Known as the Infrastructure Investment and Jobs Act, it includes $65 billion for grid modernization initiatives designed to fortify the grid and increase renewable energy capabilities, and a whole lot more.
How the $1.2 Trillion Infrastructure Bill Will Impact Utility and Energy Companies
The $65 billion will be used to develop thousands of miles of new transmission lines, expand broadband service deeper into rural areas, and develop clean energy technologies to help expand the proliferation of renewable sources, ultimately working toward a so-called “zero-emission” economy.
It also includes $50 billion for initiatives directly related to emergency preparedness – i.e., planning for droughts, heat, floods and wildfires, and similar emergency events. This would presumably include proactive tactics like storm hardening and winterization efforts.
Another $21 billion has been earmarked for brownfield and Superfund site cleanups, and to secure and/or demolish abandoned oil and gas infrastructure.
In addition, over $7 billion will be allocated for “transportation electrification” – specifically, to develop a coast-to-coast electric vehicle (EV) charging-station network (Biden’s ultimate goal is to build 500k EV charging stations across the U.S.).
Overall, every U.S. investor-owned electric utility will likely need to upgrade its infrastructure as a result of the passage of this Act. In terms of broadband service expansion, rural electric cooperatives will be the primary beneficiaries.
Multiple entities gave the passage of the bill high marks. The Edison Electric Institute (EEI), American Gas Association (AGA), National Rural Electric Cooperative Association (NRECA), American Clean Power Association (ACP), Alliance to Save Energy, and many others publicly applauded the bill.
The bottom line is that the $1.2 trillion infrastructure bill appears to be an excellent compromise that benefits the vast majority of interested parties. For utilities specifically, the emphasis on emergency preparedness and infrastructure improvement is great news and can only help improve overall reliability and resiliency going forward.
