# Presentation: 865928

## American Recovery and Reinvestment Act of 2009MARCH 13, 2009WASHINGTON, D.C.

## Transit and Recovery Act Overview

- 1. Overview of Recovery Act
- 2. DOT Secretarial Discretionary Program
- 3. FTA Formula programs:
- 		- Urban,
- Non-urban,
- Fixed Guideway
- 4. FHWA Formula: STP Flex

## Transit and Recovery Act Overview

- 5. FTA Discretionary Programs
- New Starts
- Tribal Transit
- Energy/Greenhouse Gas Savings
- 6. ARRA Reporting requirements
- 7. Questions

## Purposes Of Legislation 

**Recovery**
- Maintain and create jobs
- Infuse cash into cash strapped state and local economies
**Reinvest**
- Build and repair infrastructure

## Transit Funding in ARRA

| Program |  |  |
| --- | --- | --- |
| Urban Formula  | $5.97 B |  (incl. funds allocated through Sec 5340) |
| Non-Urban Formula |   $760 M | (incl. funds allocated through Sec 5340) |
| Fixed Guideway Modernization Formula |   $742 M |  |
| New Starts / Small Starts | $742 M |  |
| Tribal Grants | $17 M |  |
| Discretionary Energy Program [new] | $100 M |  |
| Discretionary Multimodal Program [new] | [$1.4985B] |  |
| Administration / Oversight
 | $64 M |  |
| Total (Transit Only) | $8.4 Billion |  |

- Note: Amounts are after takedown for Administration and Oversight

## Key Provisions

- No waiver of FTA program requirements (planning/NEPA/Buy America/Labor Protections)
- 100% Federal share, except New Starts
- Capital expenses _*only*_* *are eligible
- Cannot mix Recovery Funds in same grant with any other funds
- ARRA STP Funds can be flexed to transit
- Grant obligation deadlines apply

## To Be Ready for a Grant

- TEAM IS OPEN FOR BUSINESS
- Projects must be in approved TIP/STIP; NEPA completed or completion imminent
- May include estimated ARRA funding for fiscal constraint purposes in TIP/STIP
- May advance project schedules within TIP/STIP “administratively” without formal amendment
- Must meet conformity requirements in non attainment and maintenance areas
- Work to refine project description and budgets for early submission to Dept. of Labor
- Identify procurement strategy

## ARRA Obligation Timetable

**Formula Program**
**September 1: **Deadline to obligate one half of apportionment** (**180 Days from  apportionment notice)
**March 5, 2010**:  Second deadline to obligate funds (365 days from apportionment notice
**September 30, 2010**: Unobligated funds revert to Treasury
- 	‏
**Recovered funds will be redistributed**

## ARRA Multimodal Discretionary Program

- Capital investments in surface transportation infrastructure
- $1.5 billion competitive grant program
- Projects with significant impact on Nation, metro area or region
- Grant awards: $20 m to $300 m
- Up to 100% Federal share

## ARRA Multimodal Discretionary Program

- Eligible Projects
- Highway or bridge projects (Title 23)
- Public transportation projects (Title 49)
- Public transportation projects, including investments in New Starts or Small Starts projects
- Passenger and freight rail projects
- Port infrastructure investments
- Projects that connect ports to other modes of transportation

## ARRA Multimodal Discretionary Program

- Considerations
- Equitable geographic distribution of funds
- Balance needs of urban and rural communities
- Up to $200 million to pay federal credit assistance subsidy costs
- Priority Projects
- Projects that need Federal funds to complete financing package - “gap funding”
- Projects expected to be completed within 3 years

## ARRA Multimodal Discretionary Program

- Statutory Schedule (Days after 2/17/09)

| No later than
 |  |
| --- | --- |
| 75 days | Publish Criteria in Federal Register |
| 180 days | Applications Submitted |
| 360 days | Announce projects to be funded |

## ARRA Transit Formula Programs 

**Urbanized Area Formula ($5.97 B) **– Allocated to Urbanized Areas using Section 5307 formula (includes section 5340, but excludes Transit Intensive Cities Tier)
**Non Urbanized Formula ($760 M) – **Allocated to States using regular Section 5311 formula
**Fixed Guideway Modernization ($742 M) **– Allocated to Urbanized Areas using regular Section 5309 FGM formula – Tiers 1, 2, 3 and part of 4

## ARRA Transit Formula Programs

-  **Transit Capital Assistance Program**
**100 percent federal funds**
**Pre-Award Authority **
- October 1, 2008
**Availability of funds**
- 50 percent must be obligated by
- 	September 1, 2009
- The remaining 50 percent must be obligated by March 5, 2010

## ARRA Transit Formula programs

**Urbanized Area Formula Program**
**$5.97 B**
- Allocated to the UZA
- Section 5307 and 5340 formula
- Small Transit Intensive Cities (Section 5336(i)(1) and (j) explicitly excluded from formula  by ARRA
**Designated Recipient and State**
- Suballocates Funds
- Submit split letter to FTA

## ARRA Transit Formula Programs

**Urbanized Area Formula Program**
**Eligible recipients**: Public transportation providers
**Eligible Activities**
**Capital Expenses consistent with 5302(a)(1)**
**Preventive Maintenance**
**Up to 10 percent ADA paratransit**
**Engineering and Design**
**Crime prevention and security**
**Excluding operating activities **
**Exceptions – costs associated with emergency response drills and security training**

## ARRA Transit Formula Programs

**Urbanized Area Formula Program**
- Program Requirements
- Section 5307 including:
- Transit Enhancement Provision
- UZAs over 200,000
- Security Spending
- DOL Certification

## ARRA Transit Formula Programs

**Nonurbanized Area Formula Program**
- $760 M
- Allocated to States
- Section 5311 and 5340 formulas
- State** **
- Sub-awards to Subrecipients
- Submits Program of Projects
- Applies to FTA for funds

## ARRA Transit Formula Programs

**Nonurbanized Area Formula Program**
**Eligible Subrecipients:  **State, local gov’t, nonprofit organizations, Indian tribes, operators of public transportation or intercity bus services.
**Eligible Activities**
**Capital Expenses consistent with 5302(a)(1)**
**Preventive Maintenance**
**Up to 10 percent ADA paratransit**
**Engineering and Design**
**State Administration**
**Up to 15% of apportionment**

## ARRA Transit Formula Programs

**Nonurbanized Area Formula Program**
- Program Requirements
- Section 5311 including:
- Intercity Bus Provision
- 15 percent required, or
- Certification
- FY 2009 certifications sufficient
- DOL Special Warranty Provision
- Tribal subrecipients
- May apply directly to FTA

## ARRA Transit Formula Programs

**Fixed Guideway Infrastructure Investment**
-  $750 Million: to modernize , maintain, or improve existing fixed guideway systems
- 100 percent Federal
- Availability of funds
- 50 percent must be obligated by September 1, 2009
- The remaining 50 percent must be obligated by March 5, 2010
- Pre-Award Authority
- October 1, 2008

## ARRA Formula Transit ProgramsFixed Guideway Infrastructure Investment

- Allocated to UZAs
- Fixed guideway systems 7 years or older
- Must have a threshold of at least one mile
- Allocation made under Tiers 1,2,3, and partially Tier 4

## ARRA Transit Discretionary Programs 

**Major Capital Investments ($742.5M)****‏**** - **FTA  focussing on projects “under construction or able to obligate funds within 150 days”
**Tribal Transit ($17M)****‏**** - **Competitive solicitation and selection‏ using existing procedures; capital projects only
**Energy Program ($100M) - **Competitive solicitation and selection; based on new procedures and criteria to be announced soon

## Transit Investments for Greenhouse Gas and Energy Reduction (TIGGER)

**Transit Investments for Greenhouse Gas and Energy Reduction (TIGGER)**

**$100 Million **
**Grants to transit agencies for Capital Projects that either:**
- Reduce energy consumption _of the transit agency_, or
- Reduce greenhouse gas emissions _of the transit agency_.
**Application Procedures **- FTA will publish in the Federal Register and post on website.

## ARRA TIGGER Selection Criteria

**ARRA TIGGER Selection Criteria**

**For Energy Consumption Reduction Projects**
- Total energy reduction of the project
- Total energy reduction of the project as a percentage of the total energy usage of the transit agency
- Others under development
**For greenhouse gas emission reduction projects**
- Under development

## ARRA Tribal Transit Program

**$17 million**
**Eligible Applicants**: Federally-recognized Indian tribes or Alaska Native villages, groups, or communities as identified by the Bureau of Indian Affairs (BIA) in the Department of the Interior (DOI).
**Eligible Projects**
- Capital Projects

## ARRA Tribal Transit Program

- A separate NOFA issued from 5311 TTP program
- Application periods will be concurrent
- Allowing budgets to reflect both resources
- 60 days to Submit proposals
- Submitted via e-mail
- Availability:  Funds must be obligated before September 30, 2010

## ARRA Tribal Transit Program

**Evaluation Criteria Being Considered**
- 1:  Project Planning and Coordination
- 2:  Demonstration of Need
- 3:  Project Benefits
- 4:  Financial Commitment and Operating Capacity

## ARRA Tribal Transit Program

- Program Requirements
- Section 5311 TTP
- DOL special warranty applicable
- Grants will be sent before award

## ARRA Capital Investment Grants

- 1.$750million “allocated under Section 5309(m)(2)(A).....to enable the Secretary of Transportation to make discretionary grants as authorized by Section 5309(d) (New Starts) and (e) (Small Starts)...”
-  2. Statutory Priority to:
- “Projects that are _in construction_ or are
- [_E]igible to obligate funds_ within 150 days of enactment...“

## ARRA CAPITAL INVESTMENT GRANTS

**ARRA CAPITAL INVESTMENT GRANTS**

**Commitment Authority** – ARRA creates between $750 M and $1.5 B in commitment authority, depending on allocation approach.  It’s arcane.
- _Max $1.5 B_ - Allocate all $750 M to existing FFGAs.  This will create an additional $750 M in commitment authority.  Total is $1.5 B.  Twice as much funding to commit.
- _Min $750 M_ - Allocate some or all $750 M to _new_ FFGAs.  This will create commitment authority < $1.5 B.

## Capital Investment Grants: Status

- PMO review of existing and soon-to-be-executed contracts
- Cash flow needs based on contract payables
- FTA look at different allocation scenarios based on need, equity, completion of existing agreements
- Allocations to be announced shortly in FRN

## Reporting and Certifications Under ARRA

- High interest in progress and status of ARRA from all fronts
- Transparency:1512 and other reports posted on Recovery.Gov, available to general public
- Congressional interest in additional reporting (Oberstar/DeFazio letter)
- IG/GAO/CBO – audit and oversight

## ARRA CERTIFICATIONS	

- Secretary LaHood Letter to Governors – February 27, 2009
- ONE-DOT Certs – for FHWA and FTA
- Certifications Received are posted on _[www.dot.gov](http://www.dot.gov/)_ recovery site
- Certs required by 1201, 1511, and 1607

## Cert: S. 1201- MOE

- Maintenance of effort of State funding for all modes of transportation
- Applies to funding Planned from 2/17/09 through 9/30/2010
- ONE-DOT Certification required by March 19
- FY 2011 FHWA funding will be affected by failure to meet MOE for State funding

## Cert: S. 1511 – Project Vetting Cert

- S. 1511 – Projects have been vetted and are good investments of ARRA $
- Gov’t wide Requirement- must be received prior to award
- One State cert based on TIP/STIP Process sufficient for FTA/FHWA if it cites STIP and live link to STIP that includes/or will include transit projects
- FHWA/FTA projects must be listed in STIP with ARRA as funding source

## Cert: S. 1607 – ACCEPTING ARRA FUNDS

- S. 1607 –Governor accepts ARRA funds and will use them to create jobs and promote economic health
-  Applies Government wide – all agencies and programs
- Due April 3, 2009
- Send copy to DOT
- Legislature may accept if Gov. declines ARRA funds

## REPORTING REQUIREMENTS

- Quarterly FSR and MPR reports – Standard FTA Grants management reports
- Report due 10 days after end of each quarter, not usual 30, to support S. 1512 reporting requirement
- Specific ARRA data reporting

## Reporting: S. 1201 (C)(2)

- DOT Requirement in ARRA
- Reports to Congress due 90 days, 180 days, 1 year, 2 years, and 3 years after enactment
- Requires financial and progress information at project level (sub-awards and contracts)
- DOT/FTA still working out logistics

## Reporting: S. 1512

- Government Wide ARRA requirement – starts 180 days after February 17
- Quarterly Reports due starting 10 days after each quarter for grantee/30 days for DOT
- Detailed project/activity level information – including jobs data

## Reporting: S. 1512 Reports (cont’d)	

- OMB developing standard form and instructions
- DOT/FTA still working out logistics
- FTA will use existing TEAM data to extent possible – but insufficient
- All Recipients, sub-recipients, and contractors under ARRA must have DUNS (_[www.dnb.com](http://www.dnb.com/)_) and CCR (_[www.ccr.gov](http://www.ccr.gov/)_) registration

## Reporting: S. 1609 Report

- Report to Congress on status of NEPA compliance for ARRA projects
- FTA will use TEAM environmental findings to extent possible
- May require additional reporting from applicants/grantees

## FTA ARRA Support

**Planning and Environment ** - FTA Regional Office assistance available to States, MPO’s, and transit agencies.** **
**Grant Systems Updates** – TEAM updated and open.
**Apportionment & Guidance **– Final apportionment of funds and grantee guidance published 3/5/09.
**Process Streamlining** – Early assignment of grant numbers to facilitate simultaneous reviews by DOT and DOL.
**FTA Recovery Webpage** - Robust Webpage devoted to ARRA Q’s and A’s.

## Questions?

-  *Please contact your FTA Regional Office with your      questions as soon as possible.
- Webpage: _[www.fta.dot.gov/economicrecovery](http://www.fta.dot.gov/economicrecovery)_