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OFA Bill Analysis
SB 106
AN ACT CONCERNING LEGISLATIVE OVERSIGHT AND
APPROVAL FOR THE EXPENDITURE OF FEDERAL
TRANSPORTATION INFRASTRUCTURE FUNDING.
SUMMARY:
The bill establishes the Connecticut Infrastructure Strategy Board to
report to the legislature on strategy and recommendations regarding the
use of federal funding received by the state pursuant to the
Infrastructure Investment and Jobs Act (IIJA), P.L. 117-58. The bill
outlines the membership and responsibilities of the board, requires
various state agencies to provide staff assistance to the board, sets
deadlines for its activities, and outlines legislative approval
responsibilities.
EFFECTIVE DATE: Upon Passage
Establishment of the Connecticut Infrastructure Strategy Board
The bill establishes a 19-member Connecticut Infrastructure Strategy
Board. It allows the board to establish organizational guidelines, hire
consultants subject to the approval of the Office of Policy and
Management (OPM), and requires various state agencies to provide
staff assistance to the board.
Board membership consists of one gubernatorial appointment who
shall serve as the chair, nine legislative appointments, and nine
executive branch officials serving ex-officio. Board members serve
without compensation, and initial board terms expire on a staggered
basis with subsequent appointments lasting four years. Members are
appointed as follows:
• Five members from the private sector, each having specified areas 2022SB-00106-R000435-BA.DOCX
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of expertise, including one by the Governor (chair) and one by
each of the following: president pro tempore of the Senate,
speaker of the House, and minority leaders of the Senate and
House.
• One member from each of the five transportation investment
areas (TIAs) defined in CGS. Sec. 13b-57d. The chairs of the board
of the local planning agencies in each TIA must nominate three
individuals, at least one of whom must be a chief elected official
in a municipality in such TIA, for consideration by the respective
appointing authorities, which are as follows: Transportation
Committee chairs for the southeast corridor TIA; Senate president
pro tempore for the I-91 TIA; speaker of the House for the coastal
corridor TIA; Senate majority leader for the I-395 TIA; and House
majority leader for the I-84 TIA.
• Nine executive branch officials serving ex-officio, including: the
Commissioners of Administrative Services, Transportation,
Energy and Environmental Protection, Economic and
Community Development, Revenue Services, Public Health,
Emergency Services and Public Protection, the Secretary of OPM,
and the Consumer Counsel.
Duties of the Board
The board is required, no later than January 1, 2023, to report to the
Transportation and Appropriation Committees (the committees) on a
strategy and recommended allocations for the use of funding received
by the state pursuant to IIJA. The board must update the strategy, if
necessary, by December 15, 2024, and every two years thereafter. The
strategy, including all such updates and revisions, is subject to the
approval of the committees and must be posted on the public websites
of the board, the Department of Transportation (DOT) and OPM.
In developing the strategy, the board is required to consider DOT's
long-range plans and to include criteria for prioritizing infrastructure
projects. Additionally, the board may conduct public hearings, consult
with stakeholders and other relevant documentation, and request 2022SB-00106-R000435-BA.DOCX
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information from any public entity in the state.
Legislative Approval
Within 15 days of receipt of the board's initial report, the committees
must meet to either approve or modify the board's recommended
allocations. If the committees do not act within 15 days, the board's
recommendations shall be deemed approved.
On and after July 1, 2024, within 15 days of receipt of any IIJA funds,
the board must again submit recommended allocations to the
committees, who must either approve or modify such recommendations
within 15 days.
OPM must report any proposed changes to both the board and the
committees. The committees must either approve or modify the
proposed changes within 15 days.
Disbursement and Accounting of Funds
Disbursement of IIJA funds by OPM must be in accordance with the
board's recommendations, as modified or approved by the committees.
If allocations are not found to be allowable under federal rules, OPM
must immediately notify the committees regarding the amounts,
intended recipients, and reasons that such allocations are not allowed.
The bill further requires the board and OPM, not later than January
1, 2024 and annually thereafter, to jointly report to the committees on:
(1) a full accounting of funds received and disbursed, (2) a plan for the
disbursement of any remaining funds, (3) a description of any projects
wholly or partially funded via IIJA, and (4) the status of each such
project and timeline for completion.
DOT Reporting Requirements
The bill requires DOT, on or before February 1, 2023, and annually
thereafter, to report to the committees on: (1) the department's capital
plan, (2) the condition of the state's transportation infrastructure, and (3)
DOT's long-range transportation plan. The committees must hold a
public hearing on the report within 30 days, at which time DOT must 2022SB-00106-R000435-BA.DOCX
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provide a detailed summary and fiscal analysis of the report.
The bill also requires DOT to establish a separate internet page
dedicated to the status of the department's various capital projects, as
outlined in the bill.
BACKGROUND
Federal Transportation Funding
Federal transportation funds are provided to states on a reimbursable
basis through dozens of programs and funding categories. In general,
federal funds are not received by state DOTs until after projects have
been authorized by the relevant federal agency, states have made
payments for actual costs incurred, and states have submitted bills to
the federal agency for reimbursement of such costs. Given that DOT
typically has hundreds of federal-aid projects ongoing at any given time,
the actual number of individual disbursements to the department is
high.
Additionally, federal programs typically include established funding
ratios that define the federal and state cost share responsibilities. For
transportation formula funding, the federal share is 80%-90%, though it
could be higher for certain projects including eligible safety or
innovation projects. For competitive grant programs, the federal share
can vary widely but is typically below 50% of total project costs. In
Connecticut, the state share for federal transportation projects is
normally provided through bond funds.
Infrastructure Investment and Jobs Act
In November 2021, IIJA was signed into law, directing $1.2 trillion in
funding nationwide for roads, bridges, ports, and airports as well as
expanded clean water, broadband, and climate initiatives. Under the
law, Connecticut is expected to receive approximately $5.38 billion in
transportation formula funding over five years, which is 43% higher
than the previous federal authorization for Connecticut's ongoing
transportation capital programs. The law also includes over $100 billion
in competitive grant programs, as well as an additional $30 billion
specific to the Northeast Corridor, for which Connecticut may be 2022SB-00106-R000435-BA.DOCX
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eligible to apply, among other provisions. It should be noted that IIJA
funds largely represent a continuation and expansion of existing federal
programs.
COMMITTEE ACTION
Appropriations
Joint Favorable Substitute
Yea 49 Nay 0