The Bipartisan Infrastructure Bill (BIL) is creating new and expanded opportunities for airports and maritime facilities to receive grants and low-interest loans for projects that in the past were not eligible for these funds – at least, not without providing access to surface transportation.

Over the next five years, the new federal infrastructure program will provide $25 billion in aviation and airport funding, as well as $17 billion over five years in new maritime spending across multiple agencies.

For aviation, this includes $15 billion in entitlement and competitive grants for airport infrastructure, $5 billion in competitive grants for airport terminals, and $5 billion for Federal Aviation Administration’s (FAA) facilities and equipment.

“One of the most interesting things is the funding within the new discretionary programs,” said Stephanie Atallah, senior aviation consultant with WSP’s Advisory business. “Larger airports are able to use federal funds now for more than just airfield projects, which are typically covered under the Airport Improvement Program (AIP), but also cover new terminal and passenger facility projects.”

While the newly introduced competitive funding application process that was issued by the FAA for airport terminal projects was very concise and brief this year, the application may vary slightly for 2023. But it is expected that the eligibility and evaluation criteria may look the same, with a focus on shovel-ready projects replacing aging infrastructure, improving energy efficiency, achieving compliance with Americans with Disabilities Act (ADA) and in other areas.

“Since this is a five-year program, prioritizing projects and answering the eligibility criteria will be crucial to successfully winning discretionary grant funding,” Atallah said.

The first round of Airport Terminal Program (ATP) grants for fiscal year 2022 were announced on July 7 for 91 projects at 85 airports, receiving a total of $968.6 million. It is interesting to note that the FAA received more than 650 ATP applications for about $14 billion in project requests, highlighting the significant need for funding to support our airports’ infrastructure. The allocation of these competitive grants was also based on the size of the airport. For fiscal year 2022, 53 percent of the funds went to large hubs, 13 percent to medium hubs, 20 percent to small hubs, and the remaining 14 percent to non-hub or non-primary airports, Atallah said.

Airports are also fully eligible for the U.S. Department of Transportation (DOT) Transportation Infrastructure Finance and Innovation Act (TIFIA) program, which are low-interest loan programs that provide subordinate debt at low interest rates. In the past, airports were not eligible unless there was a nexus to surface transportation, but airport agencies are now eligible to pursue TIFIA funds for projects that are eligible under the Passenger Facility Charge (PFC) program.

“This eligibility expansion now includes other airport-related infrastructure projects, such as terminal projects or surface transportation projects,” Atallah said. “These types of projects usually work well with alternative delivery options, either with airport funds or private capital, and private public partnerships.”

Airport agencies receiving grants under BIL will be required to follow the AIP grant application procedures prior to award. This includes conforming to the Buy America / Buy American preferences per the newly published guidance by the Office of Management and Budget and the recently issued temporary waiver of Buy America requirements for construction materials by the DOT.

Furthermore, although alternative delivery methods, such as design-build and construction management at-risk, are eligible to be used with projects funded with the BIL, Atallah said there have been some problematic issues with airports because of the need to submit hard competitive bids.

“It’s very important for airports to understand the requirements that come with their awarded funds, now that there’s extended eligibility,” she said. “We’re not just talking about airfield projects, and there is a need to comply with FAA grant requirements and grant assurances as airports navigate through the use of their BIL funds.”

Airports are a huge area of opportunity for a green initiative. With so many different things happening at once the importance of implementing a green initiative could have huge positives effects if implemented correctly.

Brian Shell, WSP USA senior technical principal and consultant and service area manager for the national alternative delivery advisory group, noted the importance of funding green infrastructure in places like airports.

“When you start to think about all the facilities that we use at an airport, not just the ones that we see throughout the site, but the facilities that passengers don't see but are critical to its operations and ensuring resiliency such as stormwater management … there are a lot of opportunities to incorporate good green infrastructure throughout an airport site,” Shell said.

Creative partnerships are also a core part of using all the tools in the funding and financing toolbox enabled by the BIL.

“The ability to approach improvements in a collective sense through a public-public partnership, where one entity may be responsible for the stormwater utility and another has a need to control runoff in a creative way, is a valuable opportunity for airports and their stakeholder partners,” Shell added.

The funding earmarked for maritime and marine projects represents a significant increase in investment into waterway and coastal infrastructure, inland waterway improvements, port infrastructure, and programs and competitive grants for ferry boats and terminal facilities.

The bulk of those funds – about $11.6 billion, will flow through the Army Corps of Engineers to cover multiple construction projects, flood control and coastal storm risk management.

“But there is also significant funding targeted to ferry boat programs and ferry service, including competitive grants totaling $1 billion for rural ferry service and $250 million for ferry electrification to promote emissions reduction at ports,” Atallah said.

Additionally, the U.S. Maritime Administration Port Infrastructure Development Program will receive $2.25 billion dollars over five years under the BIL, and $684 million in 2022 including additional appropriations. “We're looking at three times what we usually see under that program, corresponding to the highest level of funding ever made available under this program,” Atallah said. 

“Part of the emphasis of this program is going toward projects to improve resiliency, safety and efficiency of ports such as port electrification or development of terminal micro-grids, equipment replacement or retrofits and more,” she added.

A new program provides $400 million for truck emissions reductions at ports. Louis Wolinetz, WSP lead for airport and seaport infrastructure funding and grants, noted that “Seaports and airports seeking to reduce ground access congestion and encourage zero-emissions vehicles and equipment can look for grant opportunities through surface transportation and utility infrastructure components of the BIL, in addition to their traditional agency funds.”

This is the sixth article in a six-part series offering a sector-by-sector review of what's been happening with BIL funding, and how to make the most of these opportunities. This series covers the BIL’s impact on:

• Part 1: Climate, Resilience & Sustainability (CRS) and Equity
• Part 2: Highways, Bridges and Electric Vehicles
• Part 3: Transit and Rail
• Part 4: Water
• Part 5: Energy
• Part 6: Aviation and Maritime Infrastructure

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