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Stimulus Bill Has Cash for Ports . . . for the Right Projects By Peter Hull With the worldwide economy in the doldrums, the federal government has attempted to throw the nation a lifeline in the form of the American Recovery and Reinvestment Act of 2009, better known as the stimulus bill. The far-reaching bill provides a whopping $787 billion for projects as diverse as school construction to alternative energy research. While money in the bill specifically earmarked for the nation’s ports is scant, there is considerable opportunity for the maritime industry. Some $40 billion is available in the form of grants for transportation and infrastructure projects. Port officials only need to ask for it. Well, kind of. Requesting Stimulus Funds Ports need to make a good case for their particular projects, because it’s competitive, said Aaron E. Ellis, communications director for the American Association of Port Authorities. That’s never been the case before. Simply put, the stimulus bill provides the largest pot of funding that ports have ever received from the federal government, he said. “If you can show that your project is worthy — that it has the significance at the local level — you’re going to stand a very good chance of qualifying for a grant.” Understanding the Stimulus Bill At more than a thousand pages, how do you separate the wheat from the chaff in the bill? Ellis gave Cargo Business News a quick primer. Transportation More than $27 billion for state and local governments in “use or lose” grants are available through September 30, 2010. States must spend 50 percent within six months and 100 percent of any money received within a year. In addition to traditional highway and transit projects, eligible projects include passenger and freight rail transportation and port infrastructure projects. Projects located within the boundaries of a port terminal are eligible if they are surface transportation infrastructure modifications necessary for direct intermodal interchange, transfer, and access into and out of the port. transportation grants — $1.5 billion in “use or lose” are available through September 30, 2011, for state and local governments to use on longer-range surface transportation projects, including highway, bridge, transit, rail, and port projects. Funding is to state and local governments and transit agencies, which must apply through the Department of Transportation. Applicants must demonstrate why their projects have national, regional, or metropolitan significance. Grants will be between $20 and $300 million. “We’re talking big grants,” Ellis said. “These are not little things $20 million is the minimum grant.” Port security — $150 million in port security grants from the Department of Homeland Security. Cost sharing is waived, and priority will go to construction projects and those that create jobs. Applicants may need to outline jobs created. Civil works — $4.6 billion in grants for the Army Corps. of Engineers’ Civil Works program. Of interest to ports is $2 billion for ongoing construction projects, although no new starts qualify, and $2 billion for operation and maintenance. Environmental projects — $300 million in grants from the Environmental Protection Agency for the Diesel Emissions Reduction Act, or DERA. By statute, 70 percent of the pot will go to national programs and 30 percent will go to state programs. $156 million will be distributed through a competitive grant process. Cost-sharing is waived, and DERA grants will fund 100 percent of all projects, except for engine “repowers” (up to 75 percent of the cost is covered) and replacements (up to 25 percent is covered). Ports that apply for DERA funding are strongly encouraged to include a jobs estimate with their application, AAPA says. While traditional criteria are still important, port authorities should remember that this funding is part of the stimulus package, not the traditional appropriations process. Applications are more likely to be funded if they include reliable estimates for the number of jobs created by the project, AAPA says. On the Web More information is available online from AAPA at www.aapa-ports.org.	In This Issue News, Trends & Analysis New Items Glimmer of Recovery Supply Chain A Quick Primer on Site Selection Managing with the Supply Chain in Mind Compliance Corner: Trade Compliance Requires a Focus on Information Gathering How to Green Up Your Logistics Operation Supply Chain product review Trucking Software Special Section Creating the Extraordinary — the Prince Rupert Story Features Building a Future from Drayage Wreckage Gateway at a Glance Pacific Northwest Ports & infrastructure Stimulus Bill Has Cash for Ports . . . for the Right Projects What Shippers Need from Inland Ports Port Product Review Lift Trucks Commentary New Trends Driving Transpacific Trade Who, What, Where, When Final Say
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