Implementation of the Economic Recovery Act

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Funding for Highways, Roads, Bridges, and Transit
Implementation of the Economic Recovery Act
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Agenda

• Highlight transportation provisions of American
  Recovery and Reinvestment Act
• Resources available to help you from the
  Transportation 4 America Coalition

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Overview of Legislation

• Signed into law on Tuesday, February 17, 2009
• Includes 27.5 billion in funding for federal
  surface transportation dollars directed to state
  and local government projects
• Fund projects that are "shovel-ready" and can
  contribute to immediate job creation

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Implementation Status

• Agencies releasing guidance
• Transportation Investment Generating Economic
  Recovery (TIGER) team created at Department of
  Transportation
• TIGER composed of officials from across the
  Department to oversee implementation of economic
  recovery funds
• TIGER to develop reporting standards to
  accurately track the money as it is being spent
  and ensure that all accountability requirements
  are being met
• Funding beginning to flow to transportation
  projects across the country

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States, Cities in Tug-of-War Over Stimulus
Funds - The Wall Street Journal
Portsmouth City Council will talk stimulus,
state funds and hiring freeze - Seacoast
Money Stimulates Debate in States Over Plan's
Goals - The Washington Post
NJ Assembly holds hearings on stimulus money -
New York Newsday
Local company hiring thanks to stimulus -
Tampa, FL
Stimulus funds could boost highway projects -
The Miami Herald
Stimulus Funds Attract City, County
Officials - Wall Street Journal
Public Transit Ridership Rises To Highest Level
in 52 Years The Washington Post
Stimulus paying for local projects -The Daily
Sentinel
Bloomberg Slams Paterson Over Stimulus Money -
New York Times
U.S., state to keep watch on stimulus money
The Boston Herald
Milwaukee County bus system to get one-third of
stimulus transportation funds - New Richmond
News
Transportation Stimulus to fund 14 projects
The Daily Item, Sunsbury, PA
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Requirements

• No funds may be used for any casino or other
  gambling establishment, aquarium, zoo, golf
  course or swimming pool.
• American iron and steel
• Prevailing wage under Davis Bacon for all workers

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Requirements

• National Environmental Policy Act (NEPA)
• NEPA reviews to be completed on an expeditious
  basis
• The shortest existing applicable process under
  the NEPA shall be utilized
• Governors must certify within 45 days that the
  state will request and use funds provided
• The state legislature can also adopt a concurrent
  resolution to certify funds
• Allows distribution to local governments either
  by formula or at the states discretion

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Accountability and Transparency

• Governors, mayors or others making funding
  decisions must certify investments have been
  fully vetted and are appropriate uses of taxpayer
  dollars
• Grantees must submit quarterly reports detailing
  the use of funds
• Newly created Recovery Accountability and
  Transparency Board will conduct and coordinate
  oversight of covered funds to prevent waste,
  fraud and abuse
• Recovery Act Accountability and Transparency
  Recovery Board to conduct spending oversight and
  prevent waste, fraud and abuse will submit
  flash reports
• Board shall make recommendations to agencies on
  measure to prevent fraud, waste and abuse

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Surface Transportation Program

• Law provides a total of 27.5 billion for formula
  grants for surface transportation projects
• The Surface Transportation Program allows funds
  to be used for highway, bridge, transit, rail and
  port infrastructure
• Based on allowed uses for transportation funds in
  current transportation law, SAFETEA-LU

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Suballocation to Local Governments

• 30 percent of state allocation goes to
  metropolitan planning organizations in areas
  200,000 population and above
• Congress has given State Highway Agencies
  (SHAs) the authority to prioritize and select
  projects (in consultation with their MPO partners
  if projects are located in an MPO area)
• - Federal Highway Administration

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Project Selection

• Preference in project selection is given to
  activities that can be started and completed
  quickly and at least 50 percent of the funds for
  activities that can be started within 120 days.
• Non Federal-aid funded projects may be converted
  to economic recovery funded projects if the
  projects meet and have documented compliance with
  all Federal-aid requirements
• Priority given to projects that can be completed
  in 3 years and are located in economically
  distressed areas as defined under the Public
  Works and Economic Development Act
• Funds may be used for up to 100 percent of total
  cost of a project
• At the discretion of the recipient to fund a
  portion themselves

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Timeline

• 120 day time clock begins when funds are
  obligated when agreement is reached between the
  state and FHWA
• State DOTs have 120 days to use the funds or lose
  them to other States except suballocated funds
  for metropolitan areas
• States can petition DOT for a one-year extension
• Funds made available for obligation until
  9/30/2010 unless otherwise stated

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Transportation Enhancements

• 3 percent of state allocation setaside for
  Transportation Enhancements
• Can be used for transportation related activities
  such as
• pedestrian and bicycle facilities and paths
• acquisition of scenic easements, scenic or
  historic sites, and other transportation related
  activities
• More at http//www.fhwa.dot.gov/environment/te/

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Transportation Enhancements

• Each state DOT has a TE coordinator who reviews
  applications
• Best chance of receiving TE funds will likely be
  those that have already been submitted through
  the regular application process and have been
  postponed or rejected for lack of funding
• Each state's allocation process varies
• Unlike TE funds in SAFETEA-LU, the federal
  government does not require a match for TE funds
  in Recovery Act
• However, states may still require a match to
  spend recovery funds

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Resources

• www.recovery.gov
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• DOT page
• http//www.fhwa.dot.gov/economicrecovery/
• http//www.fta.dot.gov/index_9118.html
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• Building Americas Future
• http//www.investininfrastructure.org/stimulus
• National Association of Regional Councils
• http//narc.org/news/218/292.html
• Association of Metropolitan Planning
  Organizations
• http//www.ampo.org/
• American Public Transit Administration
• www.apta.com

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Visit http//www.investininfrastructure.org/stim
ulus
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High Speed Passenger Rail

• 8 billion for high-speed rail corridors and
  intercity passenger rail service. Funds are
  allocated by DOT between the Capital Assistance
  to States program and a new High Speed Passenger
  Rail program.
• Projects do not have to be in a state rail plan
  and there is a 100 federal share.
• DOT will submit a strategic funding plan within
  60 days and issue interim guidance covering grant
  terms, conditions and procedures within 120 days.

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Amtrak

• 1.3 billion for AMTRAK
• Funds remain available until September 30, 2010
• 450 million set aside for capital security
  grants
• 845 million set aside for repair, rehabilitation
  and upgrades
• Awarded within 30 days of enactment
• Projects completed within 2 years of enactment

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Transit

• 6,9 billion for transit capital
• 80 allocated by FTA urbanized formula, 10 is
  FTA rural, and 10 is FTA growing states and
  high-density formula.
• Includes 100,000,000 for discretionary grants to
  public transit agencies for capital investments
  that will assist in reducing the energy
  consumption or greenhouse gas emissions of their
  public transit agencies.
• Transit agencies have 180 days to use the funds
  or lose them to other States, but they can
  petition DOT for a one year extension.
• 750 million for Rail Modernization and Repair
• Funds also have 180 day use-it or lose-it
  provisions.
• 750 million for New Starts and Small Starts
  projects that are already in construction or are
  nearly ready to begin construction.
• Priority for projects already under construction
  or able to obligate within 150 days. The funds
  are available through Sept. 30, 2012.

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Supplemental Discretionary Grants

• 1.5 billion for projects with national,
  metropolitan, or regional significance
• Continues intermodal focus, noting interstate and
  bridge maintenance and repair, freight and
  passenger rail, intermodal ports, and new
  starts/small starts are specifically eligible
• Changes funding eligibility to include transit
  agencies directly
• Projects that require less than a 100 Federal
  share are prioritized
• DOT selection criteria will be published within
  90 days projects nominated within 180 days and
  the winners selected within 1 year
• Projects must be complete within 3 years

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