Update on Michigan Infrastructure: Pilots and Policies

Michigan Forum on Economic Regulatory

PolicyFebruary 23rd 2018

21st Century Infrastructure Commission• 27 appointed members:

▪ Infrastructure experts▪ Government representatives▪ Academic scholars▪ Business representatives

• Plan for 30-50 years across sectors: transportation, water, energy and communications

• Report included 110 recommendations ▪ Asset Management▪ Coordinated Planning▪ Sustainable Funding▪ Emerging Technologies

Asset Management Pilot

• Executive Directive 2017-1 signed April 3, 2017 ▪ West Michigan (Region 4)▪ Southeast Michigan (Region 10)

• Asset classes included: ▪ Drinking Water▪ Storm Water▪ Wastewater ▪ Transportation ▪ Private Utilities

• Goal: Create a culture of asset management across all infrastructure assets.

3,300 Michigan Infrastructure Entities

Asset Management Pilot Tentative Results

• Created standardized data collection template and process

• 154 communities, road commissions, counties, and other entities have submitted data

• Public and Private Utility Coordination and Communication Summits

• Asset Management Maturity Self-Assessment Webinar

• Prioritizing infrastructure:▪ Michigan Infrastructure Council▪ Transportation Asset Management

Council ▪ Water Asset Management Council

• Long-term infrastructure funding

Michigan’s Future

Michigan Infrastructure Council (HB 5335)

• Phase I (1-3 years)▪ Create statewide asset management system

o Coordinate with TAMC/WAMC/MPSCo Develop performance and condition goalso Identify regional processo Require standard AM componentso Education and trainingo Research and best practices

▪ Publish annual report

• Phase II (4+ years)▪ Predictive analytics▪ Public dashboard

▪ 30-year strategy (updated every 5 years)

Transportation Asset Management Council (HB 5408)• Aligns with Michigan Infrastructure Council and Water

Asset Management Council • Assist in implementing Pilot recommendations • Makes TAMC consistent with existing water

requirements for development of an AM plan

Water Asset Management Council (HB 5406)• Creates council within Department of Environmental

Quality , modeled after TAMC• Coordinates and aligns DEQ asset management

requirements

Infrastructure and Environment Week

• Ubiquitous Broadband Access and Adoption

• Renewing our Environment, CMI Bond Replacement

• Protecting our Waterways, Preventing Asian Carp

• Rebuilding Michigan’s Water Infrastructure

• Tripling our Recycling Rate

Renewing our Environment, CMI Bond Replacement

$675 million CMI Bond is expired▪ Cost $1.1 billion in GF

▪ Addressed over 1,000 sites, created 21,585 jobs

▪ 3,299 sites left to address

Raise $0.36/ton tipping fee to $4.75/ton▪ Generate $79M/year

▪ Address sites and recycling

▪ 25.5% waste is out-of-state

▪ Polling wello 2:1 fee (80%) over bond (42%)

Rebuilding Michigan’s Water Infrastructure

Increase state fee to drinking water systems

▪ $5/resident/year, Avg $210/non-residential account

▪ Generates $110M/yearoAsset Management ($25M)

oSRF State Fund ($75M)

oEmergency Failure Fund ($10M)

▪Applies to systems w/1000+ people

▪20 year sunset

▪80% returned to the region

Where do we go from here?

•Continue the dialogue

•Work together on solutions across assets

•Determine environment for project coordination

•Create a 21st century infrastructure system