Funding & Legislative Update for Auto Communities

1. MAC Staff: Bill Hanka Federal Director Jon Wisbey Policy Associate For more information: www.autocommunities.us Funding & Legislative Update for Auto Communities www.autocommunities.us October 11, 2011

2. Agenda for Today’s Call • Open Federal Opportunities • Legislative Update • Appropriations • Transportation Reauthorization • American Jobs Act • International Trade • Super Committee • What’s Next for MAC in 2011

3. EPA Brownfields • Applications are due on November 28thfor: • Assessment Grants • Up to $200,000 for hazardous substances and/or up to $200,000 for petroleum sites (up to $1 million for a coalition of 3 or more eligible entities) • Funding can be used to inventory, characterize, assess and conduct planning (including economic studies, cleanup and area-wide studies) and community involvement • Cleanup Grants • Up to $200,000 for cleanup activities at a brownfield site • Applicant must own site and a 20% match is required • A draft proposal, including an analysis of brownfield cleanup alternatives must be published community-wide by November 14 • Revolving Loan Fund Grants • Up to $1 million to establish and operate a revolving loan fund that provides subgrants and subloans for brownfield cleanup activities • A 20% match is required and only applicants without an existing RLF can apply this cycle

4. EPA Brownfields Which program to apply for? Assessment Grants: If you are unsure of the extent of the brownfield problems in your community, are interested in determining possible reuses for brownfield properties, or want to begin the initial environmental work to pave the way for the cleanup process. Cleanup Grants: If you have a specific brownfield site that is owned by the local government and has had a Phase II site assessment and the next step is to begin environmental remediation. Revolving Loan Fund Grants: If you have multiple brownfield sites throughout your community that are ready for cleanup and partnerships with local agencies (brownfield redevelopment authorities, etc.) interested in participating in the cleanup.

5. EPA Brownfields • Tips for a Competitive Application: • Follow the application format outlined in the solicitation to every detail, including duplication of sample charts, and address everything. • Emphasize a diverse set of community partnerships, beyond just local agencies – nonprofits that work with disadvantaged populations, regional economic development organizations, businessowners etc. • If you have not written an EPA Brownfields application before, contact your local EPA-funded Technical Assistance to Brownfields provider (Kansas State University for Regions 5 and 7) or your EPA regional staff. • Clearly identify a problem statement and craft a story about how this project will help remedy it.

6. EPA Technical Assistance • EPA currently has two competitive technical assistance opportunities open: Smart Growth Implementation Assistance and Sustainable Communities Building Blocks • Both applications are due on October 28th. • The objective of both programs is to help communities plan for sustainable growth. • Neither of these programs will provide actual funding for your community, but both are good opportunities to begin laying the groundwork for future Partnership for Sustainable Communities grant applications. • Both of these programs have a fairly simple application process that can be completed with a minimal amount of time (maximum two pages for Building Blocks and four pages for SGIA).

7. EPA Technical Assistance • Smart Growth Implementation Assistance • This is a fairly competitive program, with only 3-4 communities receiving assistance each year. The amount of assistance provided is substantial, with $75,000 worth of contracting assistance provided to each awardee. • Applicants must articulate a “smart growth challenge” facing their community: Community Resilience to Disaster and Climate Change, Community Energy Planning, Smart Growth in Tribal Communities, Land Use Strategies for Economic Development Agencies and Economic Viability of Small Towns and Rural Communities. • Awardees will receive a multi-day visit from federal officials and contractors (planning, land use experts, economists, engineers, etc.), who will conduct stakeholder outreach and provide a final report that details options a community can take to address their challenge. • For more information: http://www.epa.gov/smartgrowth/sgia.htm

8. EPA Technical Assistance • Sustainable Communities Building Blocks • This is a mildly competitive program that will provide technical assistance for up to 50 communities. • The nature of this assistance is considerably more limited than SGIA. Awardees will receive only a one-day visit and a memo from contractors that outlines some potential next steps. • Applicants must select one “tool” from the following: Walking Audits, Parking Audits, Sustainable Design and Development, Smart Growth Zoning Codes for Small Cities and Rural Areas, Green Building Toolkit, Using Smart Growth to Produce Economic and Fiscal Health, Complete Streets, Preferred Growth Areas, Creating a Green Streets Strategy, Linking Land Use to Water Quality • For more information: http://www.epa.gov/smartgrowth/buildingblocks.htm

9. FRA Rail Line Relocation Federal Railroad Administration – Capital Grants for Rail Line Relocation and Improvement Applications are due on October 19th A 10% match is required and a total of $10.5 million is available nationwide. Projects must improve the route or structure of a rail line and either involve a lateral or vertical relocation of a rail line or improve safety, traffic flow, community quality or life or economic development. Both construction and pre-construction activities are eligible.

10. EDA Grants EDA has not yet published an FY 2012 announcement for its Public Works and Economic Development and Economic Adjustment Assistance Program, but we have been told that the next quarterly deadline for applications will be December 15th, 2011. The first application cycle for FY 2012 funding closed on September 15th. No major changes in project/applicant eligibility anticipated. Begin working with your state’s Economic Development Representative now if you are interested in submitting a project in December.

11. DOT TIGER • Mandatory Pre-application was due on October 3rd • Working on your final application? • Remember to articulate the long-term economic impact of the project on your community and the region, not just the short-term impact. • Review the DOT-HUD-EPA Livability Principles and, when possible, incorporate elements into your proposal. • Be inventive on the BCA and make sure that you analyze every potential benefit possible (increases in land value, health benefits of non-vehicular transportation, emission reductions, financial savings for passengers, etc.). • Don’t forget Congressional support. • Want to get ready for next year? • Make sure highway/transit projects are in metropolitan transportation plan, TIP and STIP. • Begin NEPA review so that it can meet substantially complete requirement by next application deadline. • Secure matching funds from local sources and partners. • Begin building a wide range of partnerships with regional entities, state, private sector organizations, community nonprofits, etc.

12. Appropriations Update • Congress is currently operating on a Continuing Resolution through November 18th. • Half of the FY 2012 spending bills have passed the House, while only one has passed the Senate. The Senate has passed all bills but one through committee, while the House Appropriations Committee still needs to act on several bills. Both chambers are expected to continue debate on these bills through October, and to bring an omnibus bill to the floor for a vote in November. • Outstanding contentious issues include: • Opposition by conservative members to leadership’s desire to fund FY 2012 spending at the level of the cap agreed to during the deficit reduction deal, along with opposition by liberal members to cuts necessitated by spending cap. • Funding for the healthcare reform law passed by previous Congress. • Organized labor issues. • Funding and policy riders on EPA.

13. Appropriations Update How do programs important to auto communities stand currently? Despite attempts by the House to cut funding for DOE’s Advanced Technologies Vehicle Loan Guarantee Program, this funding survived.

14. Transportation Update Movement on a transportation reauthorization bill that would set funding levels for highway, transit, rail and other transportation programs, has been stalled all year due to concerns over funding. House Republicans had insisted that the bill only provide funding at the level supported by the current gas tax, which would have required approximately a 30% cut in surface transportation programs. This plan was strongly opposed by Senate Democrats. In the last several weeks, House leadership has allowed Chairman Mica of the House Transportation & Infrastructure Committee to begin looking for new revenues to support a larger bill. This revenue will not include an increase in the gas tax. Both the Senate and House should release draft bills in the coming months.

15. American Jobs Act • President Obama proposednew jobs legislation to a joint session of Congresson September 8, 2011 • Total: $447 billion • Includes a mix of tax cuts, extension of unemployment insurance and new spending (infrastructure investments + hiring initiatives)

16. The American Jobs Act • Short-Term InfrastructureInvestments • TIGER/TIFIA • Formula Highway, Bridge, Transit Funding • Long-Term Infrastructure Investments • National Infrastructure Bank • Jobs Funding • Police • Firefighters • Teachers • School Modernization • Public Schools, Community Colleges • Project Rebuild

17. National Infrastructure Bank • American Infrastructure Financing Authority • Provides loans and loan guarantees • Secured by toll revenues, user fees or other dedicated revenue sources • Modeled on legislation proposed by Senators John Kerry (D-MA), Kay Bailey Hutchison (R-TX), Mark Warner (D-VA) and Lindsey Graham (R-SC) • Capitalized with $10 billion in federal funding • Would finance projects that cost at least $100 million, or $25 million in rural communities

18. National Infrastructure Bank • Eligible projects: • Highways, roads and bridges • Mass transit • Inland waterways and commercial ports • Airports and air traffic control systems • Passenger rail and freight rail • Wastewater treatment facilities and stormwater management systems • Dams and levees • Solid-waste disposal facilities • Energy generation, transmission, distribution and storage • Energy-efficiency enhancements for buildings

19. Project Rebuild • Rehabilitation of vacant and foreclosed homes and businesses (think NSP + commercial) • $15 billion • Goals: create jobs, stabilize neighborhoods, reverse vacancy reduction and increase or stabilize residential and commercial property values • 2/3 of funding allocated by formula to states and local governments, 1/3 allocated competitively to all eligible entities

20. Project Rebuild • Eligible uses: • Financing mechanisms • Property acquisition/rehabilitation • Land banks • Demolition • Redevelopment • Bringing properties up to applicable codes • Renewable energy sources

21. Prospects for Passage • Very uncertain • Proposed offsets thus far are all revenue-based, which limits Republican support for entire package • Debt limit crisis soured manyAmericans on the ability of Congress to tackle important issues • Obama likely to campaign vigorously on proposal over next several months • Congress will be under intense pressure to take some action to create jobs before 2012 action • Even if legislation does not pass in entirety, some elements of the package may become law

22. International Trade • Despite disagreements between Democrats and Republicans on how to best use domestic policy to create jobs, there is bipartisan movement on international trade legislation. • In the next week, Congress will take action on several major trade bills, including: • Legislation that would impose a new tariff on exports of countries that devalue their currency, in order to force China into a revaluation of the yuan. • Free trade agreements with Colombia, Panama and South Korea that will reduce tariffs on imports and exports. • Renewal of Trade Adjustment Assistance programs to provide health insurance, worker training and other benefits to U.S. workers negatively impacted by foreign trade.

23. International Trade • Chinese Currency Manipulation • The Senate is poised to pass S. 1619 today, following the resolution of a procedural dispute last week over the number of amendments to allow. The bill is expected to pass with the support of nearly the entire Democratic caucus and approximately half of the Republican caucus. • House Speaker John Boehner has been outspoken in his opposition to the bill and it is unclear if he will bring the legislation up for a vote. A similar bill passed the House last session and has been reintroduced with 225 cosponsors in this session. • The White House has not formulated an official position on the bill, but has voiced concern that it may violate international law.

24. International Trade • Free Trade Agreements & TAA • All three agreements were negotiated under President Bush, but have been modified under President Obama. • These modifications included a reduction of trade restrictions on American automotive exports and a continuation of American tariffs on Korean automobiles, which helped secure UAW support. • President Obama did not submit the agreements to Congress for ratification until last week in order to win Republican support for an extension of TAA benefits. • Both legislation to extend TAA benefits and the trade deals are expected to be voted on and approved by Congress on Wednesday. • If the House is not able to approve the TAA legislation, the Democrat-controlled Senate may retaliate by voting down one or more of the agreements.

25. Super Committee The August debt ceiling compromise created a new Joint Select Committee on Deficit Reduction. This Committee must agree to a plan that achieve at least $1.2 to $1.5 trillion in deficit reduction over the next ten years by November 23rd. This legislation will receive a vote in both the House and Senate with no amendments. If a deficit reduction plan is not passed into law by January 15th, an automatic reduction of $1.2 trillion will take place starting in FY 2013. Twelve Super Committee Members include Sen. Rob Portman (R-OH), Rep. Dave Camp (R-MI), and Rep. Fred Upton (R-MI)

26. What’s Next for MAC in 2011? • Finalize “Toolkit for Auto Community Revitalization” • Begin planning a spring event around “Make it in America” theme • If you know of a regional or national organization that might be interested in supporting this event, please help put us in contact with them • Continue providing technical assistance to communities through webinars and direct conversation • Potential conferences in Midwest

27. Discussion