GOVERNOR SENDS ECONOMIC STIMULUS REQUESTS TO PRESIDENT-ELECT
CHEYENNE, Wyo. – Gov. Dave Freudenthal submitted to President-elect Barack Obama today a list of proposed infrastructure projects in Wyoming to be considered as part of the national economic stimulus effort.
The list includes projects in 15 different areas ranging from highway construction and water development to projects addressing beetle-killed timber, environmental restoration and construction at National Guard facilities.
Although the recession has hit Wyoming later than it has other states, Freudenthal called it “useful, if not imperative, for Wyoming to participate in the national stimulus package.” He urged the incoming administration to require careful accounting of stimulus funds and said significant tax relief and temporary adjustments in the tax code should be used to encourage investment in technology development and job creation.
The text of the Governor’s letter follows:
January 5, 2009
President-Elect Barack Obama
Office of the President Elect
451 6th Street NW
Washington, DC 20270
Dear President-Elect Obama:
Wyoming is one of those states for whom the recession is arriving late. In general we tend to be slower entering recession and slower recovering from recession. In some cases we simply do not participate in national economic prosperity as was the case during the dot-com period. As events are unfolding, it clearly would be useful, if not imperative, for Wyoming to participate in the national stimulus package.
The “no earmarks for particular projects at the state level” discussion is encouraging. This may work differently in the federal budget because Congress is the “keeper of the purse.” Hopefully, discussion becomes action.
Part I of this submittal identifies the types of projects within broad categories which we would pursue should categorical funding become available. Generally, these lists will need further refinement depending on the federal requirements. Some of the entities providing information to this office have more sophisticated planning operations than others.
I cannot speak for other states but in the case of Wyoming, the completion of some projects may require permit approvals. These permit requirements should not be waived or reduced, but where possible, the processing of permits for these projects should be moved up on the agency priority lists. Governors can affect state agency priorities, but in those cases where states are operating approved state implementation programs for federally-mandated programs such as the Clean Water Act and in the case of projects impacting federal lands – i.e., Bureau of Land Management or the Forest Service jurisdiction, a sense of urgency from Washington will be necessary. Legislation will need to be carefully worded to make sure the applicable environmental standards are not ignored or minimized. The goal should be to reduce delay, not to reduce standards.
There is so much being written and said about the “stimulus package” that it is difficult to perceive the guiding principles. It seems to me that some basics should be observed in preparing such a package.
• Presumably this will be a stimulus package and not simply a financial bailout of pre-existing state and local government obligations. Allocation of funds based on some form of public debt index would have the unintended consequence of penalizing those who have operated within the context of state constitutional mandates requiring balanced budgets and restricting debt. More importantly, money used to simply retire current debt/current obligations may not provide stimulus to the economy.
• State and local governments should be required to carefully account for dollars received and dollars spent. To the extent possible, the federal government should allow state and local governments to utilize their existing processes and procedures rather than require another set of federal forms. For instance, it makes sense to rely upon the basic EPA/State Clean Water and Safe Drinking Water Revolving Funds structure rather than create an alternative temporary structure.
• Significant effort should be made toward using the public funds to stimulate greater private investment. An immense amount of private capital is simply sitting on the sidelines. This is particularly true in the context of energy/environment infrastructure.
• While state and local governments are commanding the greatest press attention, federal agencies also have significant opportunities to advance projects quickly. In our case it is easy to identify projects within the Department of the Interior (range improvements) and U.S. Forest Service (treatment of beetle kill areas). Opportunities also exist across the board from the National Guard Bureau (facilities and equipment) to the National Science Foundation (NCAR Supercomputer).
• Significant tax relief and temporary adjustments in the tax code to encourage greater investments in technology development and job creation should be included.
This report consists of two parts. Part I is a quick summary of immediate projects for 2009 and a portion of projects for 2010. This submittal need not include a listing of each project contributing to the order of magnitude estimate. However, a link is provided in the event further information on the project list is needed. I am convinced that some of the agencies are overly-optimistic in their representations of project status. Presumably the stimulus legislation will separate optimism from reality.
Part II discusses several regional/national infrastructure investments related to the evolving carbon-managed economy. It also includes other suggested areas of investment for your consideration.
Part 1 | Wyoming Infrastructure Project List | 2009 |
| 2010 |
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| University of Wyoming |
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| NCAR Supercomputer Facility | $50,000,000 |
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| Wyoming Dept of Transportation |
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| "Ready to Go" Highway Projects |
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| 105 Projects, all divisions | $400,271,644 |
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| (click here for complete project list) |
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| Aeronautics Division "Ready to Go" |
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| 20 Airport Projects | $73,060,000 |
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| (click here for complete project list) |
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| Wyoming Game and Fish Dept Prioritized Projects |
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| Total of first 19 on priority list (click here for complete project list): | $22,615,000 |
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| Remainder (click here for complete project list)) |
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| $40,050,000 |
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| Wyoming Water Development Commission |
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| Projects ready for bid by 8-1-09 |
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| *Municipal Water Projects | $55,095,000 |
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| *Irrigation Projects | $3,680,000 |
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| (click here for complete project list) |
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| School Facilities Commission |
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| *Construction projects not currently funded |
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(Click here for complete project list)
| $42,400,000 |
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| *Demolition projects on hold | $3,400,000 |
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| *Infrastructure (off-site) projects | $6,800,000 |
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| Dept. of Administration & Information |
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| Construction Management Division |
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| *State facility paving projects statewide | $12,181,503 |
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| *Repair or demolition projects | $2,120,608 |
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| *ADA projects | $1,694,000 |
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| (click here for complete project list) |
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| Dept. of State Parks and Cultural Resources |
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| *State Parks road improvements (click here for complete project list) | $18,158,000 |
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| *Non-road construction projects (click here for complete project list) | $3,368,100 |
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| *Camping, trail & visitor improvements |
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| (1/2 of total funding split 2009/2010) (click here for complete project list) | $21,823,190 |
| $21,823,190 |
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| Dept. of Corrections |
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| *Concrete & paving at cor. Facilities | $5,050,000 |
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| *Fencing, irrigation, lighting projects | $6,725,000 |
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| (click here for complete project list) |
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| Office of State Lands and Investments |
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| *Clean Water State Revolving Fund projects | $32,300,000 |
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| *Safe Drinking Water Revolving Fund projects | $21,700,000 |
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| *SLIB local project applications |
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| (1/2 of total funding split 2009/2010) (click here for complete project list) | $85,798,978 |
| $85,798,978 |
| *Forestry Division forest enhancement/Green | $1,240,000 |
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| infrastructure projects (click here for complete project list) |
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| Wyoming Business Council |
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| *Business Ready Community/Community Facility |
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| *Unfunded requests (tier 1) |
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| (1/2 of total funding split 2009/2010) | $56,766,990 |
| $56,766,990 |
| *Unfunded requests (tier 2) |
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| $46,500,000 |
| (click here for complete project list) |
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| Dept. of Environmental Quality |
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| *Brownfield Remediation | $2,000,000 |
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| *Underground Storage Tank Replacement Incentive Grants | $500,000 |
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| *Bitter Creek Improvement Project | $4,000,000 |
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| *Day Loma uranium reclamation | $3,000,000 |
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| Wyoming Military Department |
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| *Air Guard Cheyenne Projects | $20,160,000 |
| $27,430,000 |
| (click here for complete project list) |
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| *Army Guard State Projects | $18,870,759 |
| $2,732,500 |
| (click here for complete project list) |
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| *Army Guard Federal Projects |
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| $24,375,100 |
| (click here for complete project list) |
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| Wyoming Wildlife Trust Fund Board |
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| *Beetle Killed Forest Projects | $17,500,000 |
| $17,500,000 |
| *Salt Cedar and Russian Olive Control | $7,500,000 |
| $7,500,000 |
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| Community Colleges |
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| *Ready to go Projects (click here for complete project list)) | $60,511,487 |
| $53,976,450 |
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| TOTAL | $1,060,290,259 |
| $384,453,208 |
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PART II: Regional and National Energy/Environment Infrastructure and Other TopicsInadequate infrastructure to move energy from low-cost producers to demand centers has historically hampered the proper working of the energy economy. This has consistently been the case with regard to natural gas pipelines and is increasingly evident in the electrical transmission grid. Significant investment in the form of low cost financing and/or direct incentives to private developers is essential to America’s economy.
This is particularly true for the transmission of renewable energy. Vast, high-yield wind resources exist throughout Wyoming and the Intermountain West. Given the production tax credit, wind farm developers are prepared to invest. For several years, transmission has been the recognized bottleneck. Full development of resources to develop wind energy is dependent upon the concurrent rebuilding and coordinated expansion of the interstate electric grid.
Love or hate coal, it is part of America’s energy mix for many decades to come. This is equally if not more true with regard to world energy production. Achieving environmental and energy objectives requires significant investment in clean coal technologies and carbon capture and sequestration. Well thought-out investments in these areas would not only put people to work but would move forward America’s energy and environment agenda.
There are several privately-sponsored projects along with state and federal efforts underway in Wyoming that could benefit from stimulus funding should you adopt a national strategy for funding this type of infrastructure.
The Executive and Legislative branches must prioritize funding for federal natural resource agencies -- particularly the U. S. Forest Service and Bureau of Land Management -- to ensure that the nation's resources are adequately safeguarded and put to their highest and best use. In the West, the Forest Service and BLM have become inextricably linked to many significant policy endeavors. As we seek to put federal stimulus funds to good use, many of the identified projects will transect or have some other nexus to federal lands. Funding is a limiting factor. Federal natural resource agencies have been strangled by tightening budgets - arguably more so than other federal programs.
Enhanced funding must be in addition to existing dollars and should be focused on implementation and compliance. For too long, federal plans have collected dust on bookshelves in BLM and Forest Service field offices. If these plans were actually implemented, our public land resource would in large measure be a model of sound management. Instead, wildlife habitat projects, water development efforts, range improvements and other important work is pushed by the wayside in favor of pushing paper from one side of the desk to the other. With additional funding, federal agencies can do the work that they were entrusted to do - and along the way, provide the backdrop to ensure that federal stimulus dollars achieve their desired result in the West in the short-term and public lands are productive for agriculture, wildlife, recreation and this nation's people in the long-term.
Millions of acres of federal, state and private lands have been reduced to standing dead timber by pine beetle activity. Consequently, the risk of catastrophic wildfire has increased exponentially and the potential for tree blow-downs--which close roads, trails and collapse power lines and other important infrastructure--has become a reality. The funding and manpower required for the effort will be great, whether it focuses on clearing beetle-killed timber to protect communities, power lines and other infrastructure or protecting and, in some cases re-opening, roads and trails that have been overlaid with blown-down trees. The Wyoming Wildlife and Natural Resource Trust Account Board estimates $17.5 million in each of the next two years could be expended for projects to do the work at hand, with appropriate language in the allocation to ensure that the U.S. Forest Service and BLM can authorize the work without having to resort to years of analysis.
In the mid-1900s, the U.S. Department of Agriculture planted salt cedar (also known as tamarisk) and Russian Olive trees in the region to address resource concerns such as stream and river bank stabilization. Unfortunately, these well-intentioned undertakings did not fully account for the ability of these species of woody plants to spread prolifically through the waterways of the West. Today, these trees line thousands of miles streams and rivers and the shores of many lakes and reservoirs, depleting precious water resources, reducing otherwise functional wildlife habitat to overgrown thickets and choking out productive grasses and forbs that used to fuel robust agricultural production – requiring an army of workers and significant financial resources to even begin to curb this blight on the Western landscape. In 2006, Congress passed the “Salt Cedar and Russian Olive Control Demonstration Act” (H.R. 2720) with the aim of funding planning and demonstration projects to control the spread of these invasive woody species. This may be a vehicle for addressing these issues without creating a new structure.
Lastly, the Bureau of Indian Affairs within the Department of Interior has been starved for funding for decades. Much could be done to improve the infrastructure within the Wind River Indian Reservation.
Wyoming's list of projects and initiatives proposes an ambitious effort to participate in the revitalization of the nation's economy. I do not envy you and the Congress as you formulate the priorities within the stimulus package. However, I look forward to working with your administration on these and other initiatives.
Best regards,
Dave Freudenthal
Governor
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