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

2 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

3 Transit and Recovery Act Overview 5. FTA Discretionary Programs –New Starts –Tribal Transit –Energy/Greenhouse Gas Savings 6. ARRA Reporting requirements 7. Questions

4 Purposes Of Legislation Recovery – Maintain and create jobs – Infuse cash into cash strapped state and local economies Reinvest – Build and repair infrastructure

5 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

6 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

7 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

8 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

9 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

10 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

11 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

12 ARRA Multimodal Discretionary Program Statutory Schedule (Days after 2/17/09) No later than 90 daysPublish Criteria in Federal Register 180 daysApplications Submitted 360 daysAnnounce projects to be funded

13 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

14 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

15 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

16 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

17 ARRA Transit Formula Programs Urbanized Area Formula Program Program Requirements – Section 5307 including: Transit Enhancement Provision – UZAs over 200,000 Security Spending DOL Certification

18 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

19 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

20 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

21 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

22 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

23 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

24 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.

25 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

26 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

27 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 Availability: Funds must be obligated before September 30, 2010

28 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

29 ARRA Tribal Transit Program Program Requirements – Section 5311 TTP – DOL special warranty applicable Grants will be sent before award

30 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: a)“Projects that are in construction or are b)[E]igible to obligate funds within 150 days of enactment…“

31 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.

32 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

33 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 33

34 ARRA CERTIFICATIONS Secretary LaHood Letter to Governors – February 27, 2009 ONE-DOT Certs – for FHWA and FTA Certifications Received are posted on recovery site Certs required by 1201, 1511, and

35 Cert: S 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 35

36 Cert: S – Project Vetting Cert S – 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 36

37 Cert: S – ACCEPTING ARRA FUNDS S –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 37

38 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 reporting requirement Specific ARRA data reporting 38

39 Reporting: S (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 39

40 Reporting: S Government Wide ARRA requirement – Quarterly Reports due 10 days after each quarter for grantee/30 days for DOT First report due July 10, 2009 Detailed project/activity level information – including jobs data 40

41 Reporting: S 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 ( and CCR ( registrationwww.dnb.comwww.ccr.gov 41

42 Reporting: S 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 42

43 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.

44 Questions? *Please contact your FTA Regional Office with your questions as soon as possible. Webpage: