1. RALPH COMER TENNESSEE DEPARTMENT of TRANSPORTATION January 19, 2010 THE ASSOCIATION OF GOVERNMENT ACCOUNTANTS TDOT's Approach to Economic Stimulus Funding: Early Planning, Implementation & Successes

2. Pre-Planning During Fall 2008, TDOT developed a list of potential projects:  Ready to let in 180 days (Sept. 1, 2009)  List of projects provided to FHWA (Dec. 11, 2008)  List totaled $850 million (road and bridge) and $100 million (resurfacing)  Posted on the TDOT website (Dec. 19, 2008)

3. Project Selection Criteria The final version of the ARRA was signed into law on February 17, 2009 Based on the Act and guidance from FHWA, the following criteria were used in selecting highway and enhancement projects:  Eligible for funding under federal aid guidelines  Minimum of 80% of the funds will be utilized on projects that can be awarded in 120 days

4. Project Selection Criteria Con’t  Minimum of 70% of the funds for projects projected for completion within 3 years  Minimum of 60% of the funds on projects that are located in economically distressed areas under either of the following:  Counties with unemployment rate 1% above national average  Counties with per capita income of 80% or less of the national average

5. Project Selection Criteria Con’t  Coordination with other projects under construction in the area  Projects across an array of construction activities (bridges, resurfacing, reconstruction, stage construction, paving, etc.)  Balance geographically (east-west, north-south, urban-rural)  Off-system bridges given priority consideration

6. Recovery Act Grant Awards State of Tennessee The “Big Picture”: Recovery Act ProgramTotal Award Highway Infrastructure Investment$572,701,043 Transit Capital Assistance$73,244,842 Grants-in-Aid for Airports$17,534,870 Grand Total of Awards to State of Tennessee $663,480,755

7. Available Funding Obligations $486,877,182 TDOT Total $469,696,151 Highway and Bridges $17,181,031 Enhancement-type Projects TDOT-Administered Funding Highway Infrastructure Investment TDOT Projects Obligated: 315 Percentage Obligation: 99.8 % $486,035,876 as of December 31, 2009

8. Available Funding Obligations $21,168,758 TDOT Total TDOT-Administered Funding Transit Capital Assistance Percentage Obligation: 85 % $17,993,437 as of December 31, 2009

9. Available Funding Obligations $4,568,353 TDOT Total TDOT-Administered Funding Grants-in-Aid for Airports Sub-recipient: Greeneville-Greene County Municipal Airport Percentage Obligation: 100 % $4,568,353 as of November 20, 2009

10. Recovery Act Expenditures Recovery Act ProgramCumulative Expenditures Percent of Total Obligations Highway Infrastructure Investment $212,321,66343.7% Transit Capital Assistance$4,873,90327.1% Grants-in-Aid for Airports$715,45515.7% Grand Total$217,911,02142.8% Data as of December 31, 2009

11. Recovery Act Discretionary Grants Awarded EPA Truck Stop Electrification - $2,000,000 TDOT currently in competitive process to sub-award grant money to truck stops Recovery Act Ferry Boat Discretionary - $3,000,000 Cumberland City Ferry, Stewart County On-the-Job Training/Support Services - $800,000

12. TIGER Grant Applications $1.5 billion available nationwide Tennessee participated in a 5-state joint application with PA, AL, MS, VA for the Norfolk- Southern Railway Crescent Corridor project TN portion of the Crescent Corridor request was $81.0 million Grant ApplicationAmount of Application Highway I-40 Mississippi River "Hernando DeSoto" Bridge Seismic Retrofit Project$34.5 million Interstate 69 Corridor Project - Obion County$98.0 million U.S. 64 (SR-15) Highway Improvement Program - Hardeman County$40.0 million U.S. 64 (SR-15) Highway Improvement Program - Lawrenceburg Bypass$65.0 million U.S. 64 (SR-15) Highway Improvement Program - Lawrence County$26.0 million U.S. 64 (SR-15) Highway Improvement Program - Wayne County$25.0 million Subtotal - Highway$288.5 million Transit Statewide (Urban and Rural) Rail$68.5 million Subtotal - Transit$68.5 million Grand Total of All TIGER Grant Applications$357 million

13. Early Success in Implementation February 2009 Recovery Act Passed March 2009 First bid letting for Recovery Act projects April 2009 TDOT met 50% Obligation requirement May 2009 Developed New Contractor Reporting System June 2009 Over $1 million in Total Recovery Act Payroll July 2009 TN ranked 3 rd in nation for project delivery

14. Recovery Act Jobs Highway Infrastructure Investment Payroll paid to date: $28,309,407 Total Hours Worked: 1,484,912 Data is cumulative through December 31, 2009

15. Obligations by Type of Work As of November 20, 2009 * ARRA Obligation Total includes MPO Obligations Project Type of Work Description # of ProjectsARRA Obligation % of Total Projects To Date % of Total ARRA Obligations to Date New Construction Roadway4 $ 44,553,0421.4%8.8% Reconstruction, Added Capacity15 213,688,1045.3%42.2% Resurfacing131 160,879,70446.5%31.8% Restoration and Rehabilitation1 4,768,2670.4%0.9% Bridge Replacement, No Added Capacity53 56,682,70018.8%11.2% Preliminary Engineering49 2,159,09017.4%0.4% Right of Way1 1,000,0000.4%0.2% Safety1 134,3900.4%0.0% Traffic Management Engineering7 3,000,0002.5%0.6% Facilities for Pedestrians and Bicycles12 11,286,2314.3%2.2% Landscaping and Other Scenic Beautification2 260,0000.7%0.1% Rehabilitation/Operation of Historic Transportation Buildings, Structures, or Facilities 5 7,473,3861.8%1.5% Establishment of Transportation Museums1 200,0000.4%0.0% TOTAL: Highway Infrastructure without Discretionary Project282 $ 506,084,914 *100.0%

16. Recovery Act Reporting Weekly  Updates to Notice to Proceed/Contract Award Dates Monthly  Project Status Report to FHWA  Employment Status Report to FHWA  T&I Committee Status Report  TRAM Status Reports  Status Report to FAA  Status Report to EPA Quarterly  Section 1512 Report to OMB  Financial Status Report to EPA  Status Report to FTA Periodic  Maintenance of Effort Status Report to FHWA  Initial Project Information Report to FHWA  Section 1511 Certifications on new Recovery Act projects  QA/QC Report Reviews by TDOT Staff

17. Major Milestone: Section 1512 Q4 Report State of Tennessee reports centrally on behalf of all state agencies Section 1512 reports are to be submitted to the Office of Management & Budget (OMB) every quarter For Q3 2009 report due October 10, 2009  Total reports submitted: 309 TDOT reports submitted: 259 For Q4 2009 report due January 15, 2009  Total reports submitted: 329 TDOT reports submitted: 271

18. Transparency & Accountability Reviews, Inspections, and Audits Federal  DOT OIG Fraud Awareness Training – May & Oct 2009  DOT OIG In-Depth Project & Field Reviews– Nov 2009  FHWA National Review Team – Nov 2009  FHWA Project Field Reviews & Inspections – On-going State Comptroller  Continual review of ARRA compliance TDOT Internal Audit  Project Review of 2 contractors for ARRA compliance

19. Next Steps Prepare for Q1 2010 Section 1512 report submittal to OMB Enhanced coordination with MPOs to ensure obligation requirements will be met Monitor congressional actions for potential second stimulus Prepare for award of TIGER Grants in January 2010

20. Questions? Check out TDOT’s Recovery Act Website for more information: www.tn.gov/tdot/recovery