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Peter A. Richardson, P.E., LEED AP, CFM
Vice President, Green International Affiliates, Inc.
President-Elect, Boston Society of Civil Engineers Section/ASCE
Public Infrastructure in Massachusetts
Costs, Strategies, and Funding
Presentation Outline
• Infrastructure Funding Challenges at the National,
State, and Local Levels.
• What are the Consequences if we “Fail to Act” and
don’t invest properly in infrastructure?
• Strategies that can be employed to improve our
infrastructure.
• Questions and Discussion.
Infrastructure Challenges at the
National, State and Local Levels
At the National Level
In 2009, ASCE gave the nation’s
infrastructure a cumulative grade
of D, citing a total need of $2.2
Trillion over the next 5 years.
http://www.infrastructurereportcard.org/
At the National Level
At the National Level
{
At the National Level
{
At the National Level
{
At the State Level
Updated in 2012, Raising the
Grade in Massachusetts
focuses attention on the state
of our infrastructure. Its main
purpose is to educate the
general public and our
legislators as to the
importance of designing,
maintaining, and funding
our infrastructure in a
sustainable manner.
At the State Level
• In 2007, MA Transportation Finance Commission Study estimated a
funding gap of $15 to $20 Billion over the next 20 years
http://www.eot.state.ma.us/downloads/tfc/TFC_Findings.pdf
• In 2011, the Sate Auditor reported that $60 million is needed to address
100 publically owned dams in unsafe/poor condition. MA has
approximately 2,900 private and publically owned dams
http://www.engineers.org/tec/file/DLM%20Dam%20Safety%20Report%20(3).pdf
• In 2012, the Massachusetts Water Infrastructure Finance Commission
identified a total 20 year funding gap of $39.4 Billion for water
infrastructure as follows: Drinking water $10.2 Billion; Clean water
$11.2 Billion; and Stormwater $18 Billion
http://www.senatoreldridge.com/legislation/wifc/wifc-committee-resources
At the Local Level
• Decreases in State Aid
• Unfunded Federal Mandates (i.e. NPDES)
• Lack of Capital Improvement Plans and Asset Management
Strategies
• Lack of State and/or Regional Infrastructure Plans
• Deferred Maintenance
• No political will to raise taxes, fees and/or rates
• True cost to deliver services not completely understood
• Misguided priorities; residents “don’t like” when their
cable bill goes up, but they are “outraged” when
water/sewer rates go up
How Much Investment is Enough?
• The US invests approximately 2.4% of its GDP on
infrastructure, while Europe invests approximately 5% and
China invests nearly 10%.
• Can we really expect to remain competitive in a world
economy if don’t invest more in our infrastructure?
• The need to fund our infrastructure in a sustainable manner
is an issue that all political parties should support.
http://www.asce.org/failuretoact/
What if we “Fail to Act”?
 Facilities in poor condition cause:
 Damage to vehicles
 Detours and wasted time
 Increased maintenance costs
 Decreased reliability causes:
 Longer travel time for on-time arrivals and deliveries
 Environmental and safety costs from:
 Wasted energy
 Higher emissions
 Exposure to public health risks
The Costs
Impacts from not Adequately Funding Transportation
Impacts from not Adequately Funding Water Infrastructure
Impacts from not Adequately Funding Electrical Infrastructure
Strategies that can be Employed to
Improve our Infrastructure
ASCE’s Five Key Solutions
at the National Level
1. Increase federal leadership
2. Promote sustainability & resilience to
protect the natural environment
3. Develop national, regional and state
infrastructure plans
4. Address life-cycle costs and ongoing
maintenance
5. Increase & improve investment from all
stakeholders
Action Steps at the State Level
Action Steps at the Local Level
• Get Sustainable (using the triple bottom line)
• Investigate New Technologies
• Look at alternative procurement methods
• Form Public Private Partnerships (P3)
• Use Qualification Based Selection
• Create dedicated maintenance accounts
• Develop Capital Improvement Plans (CIP’s)
• Develop Asset Management Programs
• Create Stormwater Utilities
• Use the Pareto Principle and Prioritize!
Action Steps at the Association Level
• Educate our members and the public
• Work with other groups and form coalitions
• Support Lawmakers who support infrastructure
• Engage the media
? Questions ?

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Public Infrastructure in Massachusetts, Costs, Strategies, and Funding

  • 1. Peter A. Richardson, P.E., LEED AP, CFM Vice President, Green International Affiliates, Inc. President-Elect, Boston Society of Civil Engineers Section/ASCE Public Infrastructure in Massachusetts Costs, Strategies, and Funding
  • 2. Presentation Outline • Infrastructure Funding Challenges at the National, State, and Local Levels. • What are the Consequences if we “Fail to Act” and don’t invest properly in infrastructure? • Strategies that can be employed to improve our infrastructure. • Questions and Discussion.
  • 3. Infrastructure Challenges at the National, State and Local Levels
  • 4. At the National Level In 2009, ASCE gave the nation’s infrastructure a cumulative grade of D, citing a total need of $2.2 Trillion over the next 5 years. http://www.infrastructurereportcard.org/
  • 9. { At the State Level Updated in 2012, Raising the Grade in Massachusetts focuses attention on the state of our infrastructure. Its main purpose is to educate the general public and our legislators as to the importance of designing, maintaining, and funding our infrastructure in a sustainable manner.
  • 10. At the State Level • In 2007, MA Transportation Finance Commission Study estimated a funding gap of $15 to $20 Billion over the next 20 years http://www.eot.state.ma.us/downloads/tfc/TFC_Findings.pdf • In 2011, the Sate Auditor reported that $60 million is needed to address 100 publically owned dams in unsafe/poor condition. MA has approximately 2,900 private and publically owned dams http://www.engineers.org/tec/file/DLM%20Dam%20Safety%20Report%20(3).pdf • In 2012, the Massachusetts Water Infrastructure Finance Commission identified a total 20 year funding gap of $39.4 Billion for water infrastructure as follows: Drinking water $10.2 Billion; Clean water $11.2 Billion; and Stormwater $18 Billion http://www.senatoreldridge.com/legislation/wifc/wifc-committee-resources
  • 11. At the Local Level • Decreases in State Aid • Unfunded Federal Mandates (i.e. NPDES) • Lack of Capital Improvement Plans and Asset Management Strategies • Lack of State and/or Regional Infrastructure Plans • Deferred Maintenance • No political will to raise taxes, fees and/or rates • True cost to deliver services not completely understood • Misguided priorities; residents “don’t like” when their cable bill goes up, but they are “outraged” when water/sewer rates go up
  • 12. How Much Investment is Enough? • The US invests approximately 2.4% of its GDP on infrastructure, while Europe invests approximately 5% and China invests nearly 10%. • Can we really expect to remain competitive in a world economy if don’t invest more in our infrastructure? • The need to fund our infrastructure in a sustainable manner is an issue that all political parties should support.
  • 14.  Facilities in poor condition cause:  Damage to vehicles  Detours and wasted time  Increased maintenance costs  Decreased reliability causes:  Longer travel time for on-time arrivals and deliveries  Environmental and safety costs from:  Wasted energy  Higher emissions  Exposure to public health risks The Costs
  • 15. Impacts from not Adequately Funding Transportation
  • 16. Impacts from not Adequately Funding Water Infrastructure
  • 17. Impacts from not Adequately Funding Electrical Infrastructure
  • 18. Strategies that can be Employed to Improve our Infrastructure
  • 19. ASCE’s Five Key Solutions at the National Level 1. Increase federal leadership 2. Promote sustainability & resilience to protect the natural environment 3. Develop national, regional and state infrastructure plans 4. Address life-cycle costs and ongoing maintenance 5. Increase & improve investment from all stakeholders
  • 20. Action Steps at the State Level
  • 21. Action Steps at the Local Level • Get Sustainable (using the triple bottom line) • Investigate New Technologies • Look at alternative procurement methods • Form Public Private Partnerships (P3) • Use Qualification Based Selection • Create dedicated maintenance accounts • Develop Capital Improvement Plans (CIP’s) • Develop Asset Management Programs • Create Stormwater Utilities • Use the Pareto Principle and Prioritize!
  • 22. Action Steps at the Association Level • Educate our members and the public • Work with other groups and form coalitions • Support Lawmakers who support infrastructure • Engage the media

Notas do Editor

  1. When we started this study, we sought to document the effect that surface transportation deficiencies have, and will continue to have, on U.S. economic performance. For example, in 2010, there was a gap of 48% between what was needed to avoid deficiencies in highways, and what was being invested. As a result, 18% of the miles driven by American motorists were spent in congested traffic, and 31% of those miles were on deficient pavement.We found that at current levels of investment, surface transportation conditions will continue to deteriorate over time, in some cases, dramatically. There is some better news. An investment between now and 2020 can prevent these consequences.
  2. We found that deteriorating transportation infrastructure imposes costs on American households and businesses in a number of ways.First, facilities in poor condition lead to increases in operating costs for trucks, cars, and rail vehicles. These costs include: damage to vehicles from deteriorated roadway surfaces, additional miles traveled and time wasted to avoid unusable or heavily congested roadways or due because of the breakdown of transit vehicles, and the added cost of repairing poorly maintained facilities as opposed to preserving them in good condition. Secondly, increased congestion decreases the reliability of transportation facilities. That means that travelers are forced to allot more time for commuting, to assure on-time arrivals for other trips, and for freight vehicles, on-time delivery.  Finally, deficient transportation infrastructure imposes environmental and safety costs.
  3. America will also lose jobs in high-value sectors as business income goes down. Almost 877,000 jobs would be lost by 2020, primarily in the high-value, professional, business and medical sectors which are vital to America’s knowledge-based service economy. Those job losses will be partially offset by new jobs in the few sectors that benefit from deficient transportation – auto repair, deliveries and the like.  Ultimately, Americans will get paid less. While the economy will lose jobs overall, those who are able to find work will find their paychecks cut because of the ripple effects that will occur through the economy. Our findings show that a failing infrastructure will drive the cost of doing business up by adding 430 billion dollars to transportation costs in the next decade. It will cost firms more to ship good, and the raw materials they buy will cost more because of increased transportation costs.