Recovery Act Review

Economic Impacts of ARRA 

The Congressional Budget Office (CBO) reports quarterly on the estimated economic impact of the American Reinvestment and Recovery Act of 2009 (ARRA).  In its report for the third quarter of 2012, it estimated that ARRA funded more than 135, 000 jobs (full-time equivalents, or FTEs).  It expects 90 percent of ARRA’s budget impacts will be realized by the end of the year.  It projects that ARRA will increase they budget deficit by $833 billion by 2019, up from its original estimate of $787 billion.

Cleanup Projects

 The Department of Energy (DOE) received $6 billion from ARRA for the cleanup of DOE-managed sites that produced nuclear material.  According to a Government Accountability Office (GAO) report, ARRA-funded jobs peaked in the fourth quarter of 2010 at about 11,000 FTEs.  They reduced the footprint of managed sites by 70 percent; that is they cleaned up more than 650 square miles.

Beginning with ARRA, DOE implemented a project management approach that broke down projects into more manageable pieces.  GAO found that this practice may have allowed the agency to classify projects in a way that may have allowed them to avoid certain review processes.  In addition, inconsistencies in developing project scope, schedules and targets, along with variability in documentation, makes it difficult to accurately assess and compare project and program performance.

State and Local Management of ARRA

State and local governments had significant responsibilities in managing ARRA funds as recipients.  GAO reported findings related to their review of state and local management.  Some of those findings include:

-The emphasis on obligating ARRA funds resulted in delayed obligation of other funds.

-Recipient expertise effected the management of ARRA funds.  Particularly, state agencies tended to have more success in managing their ARRA projects that local agencies because of greater familiarity with federal requirements.

-Unclear guidance caused problems for various projects.

-Internal controls of some recipients were not adequate, at least at the start, for monitoring compliance with ARRA requirements.

Related posts and articles

American Reinvestment and Recovery Act New (Infrastructure Watch, Dec. 4, 2012)

Coverage of Infrastructure Economic Stimulus (Infrastructure Watch, May 14, 2009)

Economic Stimulus Funds 2000 Transportation Projects (Infrastructure Watch, Apr. 14, 2009)

Government Accountability Office Watches Recovery Act Implementation (Infrastructure Watch, Aug. 23, 2010)

Infrastructure & Stimulus News (Infrastructure Watch, June 17, 2010)

Missouri Top State in Wastewater Stimulus Funding Use (Infrastructure Watch, Mar. 28, 2010)

News about the American Reinvestment and Recovery Act (Infrastructure Watch, Sept. 14, 2011)

Recovery Act Infrastructure Criticism (Infrastructure Watch, Sept. 18, 2012)

Recovery and Stimulus News (Infrastructure Watch, Mar. 25, 2011)

Reviewing the Recovery Act (Infrastructure Watch, Aug. 2, 2011)

States Obligate All Highway Stimulus Funds (Infrastructure Watch, Mar. 10, 2010)

Summary of Transportation Stimulus Oversight Findings (Infrastructure Watch, Sept. 27, 2009)

Economic Stimulus Package Would Increase Environmental Funding

Sen. Harry Reid (Nevada) has introduced a supplemental appropriations bill intended to boost the economy(S. 3689). Some of the programs that may receive a supplement include:

Program—Additional Funding
Automotive Industry Assistance--$25,000,000,000
Department of Energy (DOE): Defense Environmental Cleanup--$800,000,000
DOE: Non-Defense Environmental Cleanup--$150,000,000
DOE: Uranium Enrichment Decontamination--$170,000,000
Economic Development Administration: Public Works & Economic Development--$50,000,000
Environmental Protection Agency: State & Tribal Assistance (includes state revolving fund programs)--$2,500,000,000
National Park Service (NPS): Construction--$105,000,000
NPS: Creates National Park Centennial Fund—up to $1,000,000,000 from 2009 to 2018
Rural Utilities Service: Rural Water & Waste Disposal--$200,000,000
U.S. Fish & Wildlife Service: Construction--$88,000,000

Missouri Receives Stimulus Funds for Brownfields Redevelopment

The Environmental Protection Agency (EPA) has announced that it has selected the Missouri Environmental Improvement and Energy Resources Authority (EIERA) to receive $1,160,000 to provide loans and grants to carry out brownfields cleanup and redevelopment. The grant was funded through the American Recovery and Reinvestment Act of 2009.

EIERA will use its supplemental funding to replenish a revolving loan fund, from which it will provide funding to support cleanup activities at as many as five shovel-ready projects identified as being contaminated with hazardous substances and petroleum. Brownfields are sites where expansion, redevelopment or reuse may be complicated by the presence or potential presence of a hazardous substance, pollutant or contaminant.

You can read the original EPA news release here.

Infrastructure & Environment Roudup

Drinking Water Supplies Threatened by Dry Weather

The Associated Press put together a nice, short summary the problem of shrinking water supplies.  You can read it at the NBC News site and see video of a related story.

Earthquake Preparedness: The Great Shakeout

February 7 will be the Great Central U.S. Shakeout.  If you’re a fellow Missourian, find more information at the Missouri Division of Geology.  If you live elsewhere in the central United States, check out the Shakeout Web site (participating states are Alabama, Arkansas, Illinois, Indiana, Kentucky, Oklahoma, Mississippi, and Tennessee).

Highway Trust Fund Out of Money by 2015

The Congressional Budget Office (CBO) has released projections of funds available in the Highway Trust Fund.  They expect it to have insufficient funds to meet obligations by fiscal year 2015.

The Highway Trust Fund is the primary source of money for the federal-aid highway system.  Revenues to the fund come primarily from the federal gas tax.

You can see the CBO projections here→.

Related posts and articles

Highway Trust Fund Running Out of Money (Infrastructure Watch, Feb. 9, 2012)

Hydropower Bill Reported Out of Committee

The Hydropower Regulatory Efficiency Act of 2013 (H.R. 267) was reported out of the House Committee on Energy and Commerce.  The bill would expand hydropower development.

Mississippi River Affected by Drought

We’ve been following stories about the effects of the prolonged drought on the Mississippi River.  Our posts have mostly related to barge traffic and the effort to keep the river open downstream of St. Louis.

NPR has posted an article about the effects at the mouth of the river.  One of the issues is salt water intrusion, which as the potential to change the water quality in that part of the river and has already reached the intake of one drinking water system in Louisiana.  Of course, barge traffic is an issue for New Orleans, too, because the port there is where goods move from river barges to ocean-going vessels.

Recently, barge traffic has been back up by an oil spill on the river, too.  Cleanup of the spill near Vicksburg, Mississippi, continues.

Related posts and articles

Mississippi River barge backup shrinks, oil cleanup continues (Plume, K., Reuters, Feb. 1, 2013)

Rock clearing on drought-hit Mississippi River nears completion (Plume, K., Reuters, Jan. 29, 2013)

Work to Keep Mississippi River Open Continues (Infrastructure Watch, Jan. 29, 2013)

New Staff Leader Announced for Senate Environment & Public Works Committee

Sen. Barbara Boxer (CA), chair of the Senate Committee on Environment and Public Works, announced that Jeremy Symons will join the committee staff as Deputy Staff Director. He will focus on environmental issues, including clean water, air quality, wildlife, and climate change.  Symons currently serves as the Senior Vice President for Conservation and Education at the National Wildlife Federation (NWF). Previously, he was Executive Director of NWF's Climate Change Campaign, held positions in the Environmental Protection Agency's Office of Air and Radiation, and served in Sen. Ron Wyden's (OR) office.

You can read the original news release here→.

Secretary Chu Leaving Energy

Energy Secretary Steven Chu announced he will be resigning his post.  Other officials who announced their resignation include Transportation Secretary Ray LaHood and EPA Administrator Lisa P. Jackson.

Related posts and articles

Outgoing Energy Secretary Warns Of Dangers Of Climate Change (Shogren, E., NPR, Feb. 1, 2013)

Missouri Environment & Infrastructure Roundup

Lead Contamination Continues in Herculaneum
Environmental Protection Agency (EPA) Region 7 is considering a range of enforcement actions against the Doe Run Resources Corporation, now that recent tests have shown more than one-third of a group of properties situated within a mile of the company's lead smelter in Herculaneum, contain lead at levels exceeding 400 parts per million (ppm), EPA's threshold for removing and replacing such soils.Of 372 properties sampled, 129 had at least one area exceeding the 400 ppm action level for lead. A total of 104 of those 129 "action level" properties have already undergone soil remediation within the past nine years, under work previously ordered by EPA. EPA intends to work with the Missouri Department of Natural Resources (MoDNR) to correct the problem by requiring Doe Run to implement a solution.Doe Run's facility at 881 Main Street in Herculaneum has been in operation for more than a century and is the largest smelter of its kind in the United States.

Both EPA and MDNR have taken a number of enforcement actions against Doe Run over the years, including EPA's July 2009 unilateral administrative order, directing the company to sample and test gravel driveways and surface yard soils from all homes within one mile of the smelter. Those tests, completed by a contractor hired by Doe Run, were completed last month, after which the company sent confidential letters to property owners and residents, informing them only of the test results from their respective properties. EPA received a full report of the sampling activity on October 8, 2009. A redacted copy of that report is available at www.epa.gov/region07/news_events/legal/.

See the original EPA news release here.

Stimulus Funds Aid Clean Up of Madison Co. Mine Superfund Site
EPA Region 7 has awarded a contract to an Ohio environmental firm to proceed with the cleanup of lead-contaminated soils at approximately 800 residential properties within the Madison County Mines Superfund Site in southeast Missouri. The contract is supported by more than $9.8 million in funding through the American Recovery and Reinvestment Act (ARRA) of 2009.Environmental Quality Management, Inc., of Cincinnati, has a two-year base period with one option year, and a maximum possible award of $13,915,694, under the contract. Total ARRA funding for the contract is $9,885,000.The funding will enable EPA to proceed with the cleanup of an estimated 800 residential properties at the site over a two-year period, with additional funding to clean up 200 more residential properties in the third year of the contract.Madison County Mines Superfund Site is located in southeast Missouri near Fredericktown, in the Old Lead Belt where heavy metal mining has occurred since the early 1700s. Past mining operations have left at least 13 major tailings and chat deposits from mineral processing operations within the county. Wind and water erosion has moved the lead-contaminated material to residential surface soils, sediments, groundwater and surface water, posing threats to human health and the environment.

See the original EPA news release here.

Governor Makes Environmental & Infrastructure Nominations
Gov. Jay “Boondoggle Bridge” Nixon has announced several nominees to boards and commissions.

Jack Baker, Air Conservation Commission (reappointment) - Baker is a cattleman who was first appointed to the Air Conservation Commission in 2002 and has served as chairman and vice-chairman of the committee. He sits on the state board for the Association of Missouri Electric Cooperatives and has served on several cattle-related boards. Baker has received several awards and honors for his Angus cattle. His term ends Oct. 14, 2013.

Thomas B. Bradley, State Soil and Water Districts Commission - Bradley is a farmer who is currently serving his fifth term as treasurer for New Madrid County. He earned a bachelor's degree in agriculture, with a minor in geology, from Southeast Missouri State University. Bradley also has served as a member and treasurer of the New Madrid County Soil and Water District. The Governor has appointed him for a term ending Aug. 15, 2012.

Steven B. Martin, Missouri Agricultural and Small Business Development Authority - Martin is the division manager for Crop Production Services for Missouri and Arkansas and has worked in the agricultural industry since 1980. He has also worked for United Agri Products Inc. and for Terra Industries in sales and management. Martin also is involved in the operation of a family farm. The Governor has appointed him for a term ending June 30, 2014.

William J. Schumake, Dam and Reservoir Safety Council - Schumake has owned Town and Country Motors in Sedalia for 42 years. He has served as director of the Sedalia Pettis County Development Corporation, the Thompson Hills Investment Corporation, and the Sylvia G. Thompson Residence Center Inc. His term ends April 3, 2010.

You can read the original news release here.

Brownfields Reauthorization Bill Introduced

Leaders of the House Tranpsortation and Infrastructure Committee have introduced Brownfields Reauthorization Act of 2008 (H.R. 5336). The bill would extend authorization for brownfields grants programs through 2012, modify provision related to hazardous waste cleanup and emergency response training, and add a green building provision to the brownfields grants prioirities.

Missouri Communities Receive $1.36 Mill in Brownfield Grants

Environmental Protection Agency (EPA) Administrator Lisa P. Jackson announced today the availability of an estimated $1,360,000 in grants, bolstered by funds from the American Recovery and Reinvestment Act of 2009, to help communities in Missouri clean brownfields. The grants, which include $800,000 from the Recovery Act of 2009 and $560,000 from the EPA brownfields general program funding, will help restore former industrial and commercial sites to productive use.

Successful applicants in Missouri include:

-Kansas City which will receive $200,000 in Recovery Act funds to clean up the former Greyhound Bus Terminal as part of the East Village Project.

-Springfield which will receive $200,000 in Recovery Act funds to clean up the Jordan Valley West Meadows Site 4.

-Springfield which will receive $400,000 in Recovery Act funds to address community-wide hazardous waste and petroleum.

-Beacon Hill Homeowners Association (Kansas City) which will receive $160,000 in brownfields general program funds to clean up four lots in the Beacon Hill neighborhood.

-St. Louis Land Reutilization Authority which will receive $400,000 to clean up hazardous waste and the former ATCOM Site, and to clean up petroleum at the Former Porter Oil Site.

The grants will help to assess, clean up and redevelop abandoned, contaminated properties known as brownfields. Brownfields are sites where expansion, redevelopment, or reuse may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant.

For more information on brownfields cleanup revolving loan fund pilots and grants, and other brownfields activities under the Recovery Act, go to: http://www.epa.gov/brownfields/eparecovery/index.htm.

For more information on the EPA Region 7 brownfields recipients and their pilots, go to: http://www.epa.gov/brownfields.

American Reinvestment and Recovery Act News

$1 of Highway Spending Creates $2 of Economic Activity (Infrastructure Watch, Dec. 4, 2012)

Recovery Act: Most DOE Cleanup Projects Are Complete, but Project Management Guidance Could Be Strengthened (Government Accountability Office, Oct. 15, 2012)

GSA REPORT: OBAMA ADMINISTRATION BROKE STIMULUS RULES TO BUY CHINESE SOLAR PANELS (Hayward, J., Human Events, Sept. 25, 2012)

Feds ignore rules and use stimulus cash to buy Chinese solar panels (McElhatton, J., Washington Times, Sept. 17, 2012)

FL: Millions in fraud, waste rampant in federal energy stimulus, reveals state audit (Ossowski, Y., FloridaWatchdog.org, July 26, 2012)

Improving the Timeliness of Grant Closeouts by Federal Agencies and other Grant Management Challenges (Government Accountability Office, July 25, 2012)

Transportation Sec. LaHood jabs Republican critics of stimulus (Yokley, E., PoliticMo, July 10, 2012)

New Chair of Recovery Board Appointed (Recovery.gov, Dec. 27, 2011)

News about the American Reinvestment and Recovery Act (Infrastructure Watch, Sept. 14, 2011)

Obama Hopes ‘Recovery Summer’ Will Warm Voters to the Stimulus (Cooper, M., New York Times, June 18, 2010)