the exemption, 12% of the nation’s supplied liquid asphalt, mostly coming from Canada, would have been barred from the marketplace, severely impacting the asphalt supply chain in the U.S. With the passage of IIJA and the companion bill, the Consolidated Appropriations Act, 2022, we now have a clear picture of Utah’s pavingmarket for this year. In 2021, the previous surface transportation bill, the FAST Act, provided Utah with $380 million for its highway and bridge program. For 2022, IIJA will provide Utah with $460 million, another $45 million for a new bridge formula program, and $5.4 million to build a network of EV charging stations. The Consolidated Appropriations Act includes $10 million for three highway earmarks and another $1.2 billion in bridge formula grants yet to be distributed to the states. In addition, Utah’s state and local governments can apply for new competitive grant programs to fund road and bridge projects throughout the state. Currently, there are over $6 billion in grants available to apply for, and the U.S. Department of Transportation will be looking to fund projects that use low-embodied carbon constructionmaterials, recycling or both. The increase in funding toward Utah’s paving and bridge market will increase from $380.1 million last year to a whopping $520.4 million this year, a 36% increase! And this does not include the possibility of grant awards later this year. The key to realizing the benefits of this increase will be the readiness of UDOT and local governments to budget for the required match, plan and design highway projects, and get them ready for bid. In December, partnering with the federal government got off to a rough start when Secretary Pete Buttigieg issued a policy memorandum discouraging states from applying federal-aid highway dollars for new capacity highway projects. Sen. Romney has asked Secretary Buttigieg to rescind the memorandum as it did not adhere to congressional intent or the law. Continued from page 31 However, the trend is for states like Utah to spend more and more of their federal highway dollars to repair existing roads and bridges. According to Federal Highway Administration data, in 1993, the percentage of spending by all levels of government on roadway projects was split 50-50 between added capacity and repair projects. Thirty years later, 81% of spending is on reconstruction, restoration, rehabilitation, and repaving markets. The trend toward fixing what we have will only intensify and grow, which will spur asphalt demand even further. IIJA, combined with the Consolidated Appropriations Act, 2022, will provide a significant shot in the arm for the asphalt pavement industry in Utah. Implementation will take a little longer and require a partnership between the federal government, state and local government, and the industry. IIJA will support many years of demand for asphalt in the pavement market at the end of the day. Combined with a strong residential market in Utah, the asphalt pavement industry needs to prepare now for the increase in demand for asphalt pavement mix that will probably arise from these two pieces of legislation. 3 Jay Hansen leads NAPA’s government affairs team on federal legislation and issues important to the asphalt pavement industry. His primary focus is educating members of Congress and their staff on asphalt’s role in America’s economy and keeping the industry informed on issues pending in Washington, D.C. Implementation will take a little longer and require a partnership between the federal government, state and local government, and the industry. IIJA will support many years of demand for asphalt in the pavement market at the end of the day. Combined with a strong residential market in Utah, the asphalt pavement industry needs to prepare now for the increase in demand for asphalt pavement mix that will probably arise from these two pieces of legislation. 32
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