BEAM Regional Infrastructure Report

1. BEAM Regional Infrastructure Report 2014 Governor’s Conference on Energy & the Environment October 8, 2014 Greg Heitzman Executive Director Louisville MSD

2. BEAM Study Area

3. BEAM Infrastructure Report Goal: Identify the critical gaps and develop recommendations for infrastructure that will support the strategies of the BEAM Regional Economic Growth Plan, focusing primarily on manufacturing. • Used the 2011 Kentucky Infrastructure Report Card, published by the American Society of Civil Engineers (ASCE), as a foundation. • Much of the infrastructure covered in the report – airports, waterways, highways and bridges – is not funded by cities.

4. Grading 2011 ASCE KY Infrastructure Report Card A = Exceptional B = Good C = Fair D = Poor F = Inadequate

5. Timeline

6. BEAM Infrastructure Committee Chair: Chris Hermann Vice Chair: Greg Heitzman

7. Recommendations • 35 “recommendations” across the 10 Sectors • Consolidated into 3 broad categories: • Essential Services (energy, water, wastewater, solid waste, and communications) • Moving People (surface and air transportation) • Moving Products (roads, rail, airports, waterways)

8. Themes • Multimodal focus: Take advantage of existing assets – UPS Worldport, Ohio River, and rail network – while reducing the burden on our road network • Low-cost basic services (energy, water) are critical assets, but will be challenged by needs to invest in aging infrastructure • Growing need for high-speed fiber technology • Growing funding needs are consistent across all sectors • Showed the need and value of holistic, regional thinking when it comes to infrastructure

9. Summary of Recommendations by Sector

10. Aviation • Prevent the state’s aviation fuel tax from being diverted to the KY General Fund. • Provide support for continued funding for aviation at the federal level. • Surrounding states such as IN, OH, and TN have lower (or no) property tax on general aviation aircraft, placing companies that base aircraft in KY at a disadvantage.

11. Communications • Support broadband engagement at the local level, where access can be addressed in a meaningful way. • Form broadband task forces and caucuses (Iowa did this recently). • Support targeted initiatives that focus on critically underserved regions. • Factor technology planning into economic development site assessments. • Closely monitor emerging technologies for deployment. • Monitor and support the Next Generation Kentucky Highway project (Gov. Beshear’s plan to expand high-speed internet access throughout the state).

12. Energy • Continue to provide least cost supply options to customers • Promote exploration and investment in a diverse generation energy supply, including renewables where proven economic. • Continue to prepare for the future through participation in research opportunities.

13. Freight Rail • Focus on multimodal freight transportation, by identifying and utilizing intermodal transfer sites. Focus should be on waterway-rail and aviation-rail interchanges. • Preserve existing rail right-of-way, for both current and future freight movement, as well as any future development of passenger rail. • Support the Statewide Rail Plan, published in 2002 and undergoing an update currently.

14. Public Transportation • Incentivize higher density growth patterns and direct economic development towards designated nodes and major corridors, so that large employment centers can be efficiently served. • Maintain and preserve existing road and rail infrastructure. • Focus on multimodal transportation for both people and goods. • Create a dedicated KY state funding source for public transportation (KY ranks last amongst its neighboring states in per capita investment and total dollars for public transportation). • At the federal level, support the adoption of a long-term transportation reauthorization bill by Congress.

15. Roads & Bridges • Continually improve safety, capacity, condition, and reliability on the BEAM region’s interstate and arterial highway corridors. • Have available a sufficient, reliable, and sustainable source of highway transportation funding (the current federal funding mechanisms will not be sufficient in the future – alternative options include public/private partnerships, TIFs, tolls, local option sales taxes, and user fees). • Support multimodal transportation options.

16. Solid Waste • Additional landfill capacity is not needed in the BEAM Region. • It is unlikely that additional recycling facilities will be located in the region. • It is not recommended that additional hazardous waste disposal facilities be sited within the state.

17. Water & Wastewater • Form Water/Wastewater Advisory Groups to coordinate major infrastructure investments and shape regulations. • Coordinate planning through the Regional Water Management Councils. • Develop watershed-based plans to more effectively manage wastewater and storm water. • Develop a plan of the 20-year water and wastewater needs. • Conduct a benchmark study of water and wastewater rates for the region. • Continue support of water and wastewater grant and loan programs, such as the State Revolving Fund Program and the Water Infrastructure Finance and Innovation Authority. • Develop state funding mechanisms through economic development incentives to invest in needed water and wastewater facilities to major economic development sites.

18. Waterways • Support port infrastructure improvements to keep up with customer expectations. • Support the continuation of the state funding source for ports (funds offered in the form of 50/50 grants to public riverports for maintenance and improvement projects).

19. Major Development Sites • Conduct detailed assessments of all infrastructure needs for the BEAM region’s top 8 economic development sites (those greater than 300 acres and located along the I-64 and I-65 corridors). • Fund the construction of critical facilities for these top 8 sites to meet infrastructure needs of targeted manufacturing industries.

20. Major BEAM Area Development Sites

21. Next Steps • Promote the Report through the Louisville and Lexington BEAM websites. • The Report will be used as to encourage state and federal funding. • The Report will receive ongoing support from the Infrastructure Subcommittee of Kentucky-Indiana Exchange (KIX), a Regional Leadership Coalition.

22. More Information on Kentucky Infrastructure • www.infrastructurereportcard.org • www.kyasce.org/report-card • www.louisvilleky.gov/BEAM • www.lexingtonky.gov/BEAM • www.louisvilleky.gov/BEAM/BEAMPlansforOurRegion.htm