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Transit and Recovery Act Overview

Federal Transit Administration Update The American Recovery & Reinvestment Act of 2009 Virginia Transit Association Annual Meeting June 8, 2009. Transit and Recovery Act Overview. Overview of Recovery Act FTA Formula programs: Urbanized Non-urbanized Fixed Guideway

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Transit and Recovery Act Overview

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  1. Federal Transit Administration UpdateThe American Recovery & Reinvestment Act of 2009Virginia Transit AssociationAnnual MeetingJune 8, 2009

  2. Transit and Recovery Act Overview • Overview of Recovery Act • FTA Formula programs: • Urbanized • Non-urbanized • Fixed Guideway 3. FTA Discretionary programs: • New Starts • Tribal Transit • Energy/Greenhouse Gas Savings (TIGGER)

  3. Transit and Recovery Act Overview 4. ARRA Multimodal Discretionary Program-Transportation Investment Generating Economic Recovery (TIGER) 5. Reporting Requirements 6. Questions

  4. Transit and Recovery Act Overview • Recovery • Maintain and create jobs • Infuse cash into cash strapped state and local economies • Reinvest • Build and repair infrastructure

  5. Transit Funding in ARRA Note: Amounts are after takedown for Administration and Oversight

  6. Virginia Transit Funding in ARRA $161 million available to Virginia so far

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

  8. 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

  9. ARRA Transit Formula ProgramsUrbanized Area Formula • 100 percent federal funds • Pre-Award Authority • October 1, 2008 • Availability of funds • 50 percent of allocated funds must be obligated by September 1, 2009 • The remaining 50 percent must be obligated by March 5, 2010

  10. ARRA Transit Formula ProgramsUrbanized Area Formula • Allocated directly to large UZAs (200K people and over) • State (Governor’s) apportionment for small UZAs (under 200K people) • Funds tracked at UZA level for large UZAs, statewide level for small UZAs • Program Requirements from 5307 include: • Transit Enhancement Provision (over 200K UZAs) • Security Spending

  11. ARRA Transit Formula ProgramsUrbanized Area Formula • 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

  12. ARRA Transit Formula ProgramsNon-Urbanized Area Formula • Allocated to States by 5311 and 5340 formulas • 100 percent federal funds • Pre-Award Authority • October 1, 2008 • Availability of funds • 50 percent of allocated funds must be obligated by September 1, 2009 • The remaining 50 percent must be obligated by March 5, 2010

  13. ARRA Transit Formula ProgramsNon-Urbanized Area Formula • State Responsibilities • Sub-awards to Subrecipients • Submits Program of Projects • Applies to FTA for funds 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

  14. ARRA Transit Formula ProgramsNon-Urbanized Area Formula • 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

  15. ARRA Transit Formula ProgramsFixed Guideway Infrastructure Investment • 100 percent federal funds • Pre-Award Authority • October 1, 2008 • Availability of funds • 50 percent of allocated funds must be obligated by September 1, 2009 • The remaining 50 percent must be obligated by March 5, 2010

  16. ARRA Transit Formula ProgramsFixed Guideway Infrastructure Investment • Allocated directly 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

  17. Formula Program - Key Dates • July 1:Deadline for submitting first round grants to DOL for review • September 1: Deadline to obligate one half of apportionment(180 Days from apportionment notice) • September 16: Apportionment notice of reallocation of formula funds published in Federal Register • December 30: Deadline for submitting second round (including reallocation funds) grants to DOL for review • March 5, 2010: Second deadline to obligate funds (365 days from apportionment notice • September 30, 2010: Unobligated funds revert to Treasury • September 30, 2015: Last day obligated funds available for drawdown Recovered funds will be redistributed

  18. ARRA Funds Tracking – Gov Appt and 5311

  19. ARRA FundsTracking – Large UZAs

  20. ARRA Transit Discretionary Programs • Major Capital Investments – New Starts ($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 - TIGGER ($100M) - Competitive solicitation and selection; based on new procedures and criteria

  21. ARRA Transit Discretionary ProgramsNew Starts – Major Capital Investments 1. $750 million “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 • Eligible to obligate funds within 150 days of enactment…“

  22. ARRA Transit Discretionary ProgramsTribal 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

  23. ARRA Transit Discretionary ProgramsTribal Transit Program • A separate Notice of Funding Availability issued from 5311 Tribal Transit Program (published 3/23/2009) • Application periods will be concurrent, allowing budgets to reflect both resources • 60 days to Submit proposals, period closed 5/22/2009 • Availability: Funds must be obligated before September 30, 2010

  24. ARRA Transit Discretionary ProgramsTribal Transit Program Evaluation Criteria Being Considered 1. Project Planning and Coordination 2. Demonstration of Need 3. Project Benefits 4. Financial Commitment and Operating Capacity

  25. $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 – Proposal deadline was May 22, 2009 ARRA Transit Discretionary ProgramsTransit Investments for Greenhouse Gas and Energy Reduction (TIGGER) 25

  26. ARRA TIGGER Selection Criteria For Energy Consumption Reduction Projects: Energy purchased directly by a public transportation system. Examples include: diesel fuel, compressed natural gas, and electricity purchased from power plants. The TIGGER Program focuses on the total energy savings of a project expected over its useful life. For greenhouse gas emission reduction projects: TIGGER Program focuses on direct emissions from public transportation systems (e.g., systems vehicles) Program does not include indirect emissions (e.g., third-party power plants) or displaced emissions (e.g., emissions from manufacturing transit equipment, waste disposal, etc.). TIGGER program focuses on the total greenhouse gas emission reductions of a project expected over its useful life. 26

  27. Sample TIGGER Projects • Replacement of existing buses with more energy efficient buses (Hybrid, Fuel Cell) • Re-powering of existing buses • Conversion to more efficient control technology vehicles (DC to AC) • Construction or rehabilitation of transit system facilities

  28. TIGGER Proposal Amounts • Each submitted proposal must request a minimum of $2M. • FTA will allow consolidated proposals from several transit agencies together to reach this $2M threshold • Individual projects within a consolidated proposal may receive less than $2M. • To ensure a variety of projects are funded, FTA has established a maximum grant amount of $25M.

  29. TIGGER General Evaluation Criteria • Return on Investment • Project Readiness • Capabilities of Applicant • Degree of Innovation • National Applicability

  30. ARRA Multimodal Discretionary Program-Transportation Investment Generating Economic Recovery (TIGER) • 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 (can be less than $20m at DOT discretion) • Can be up to 100% Federal share

  31. ARRA TIGER Grants • 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

  32. ARRA TIGER Grants • Considerations • Equitable geographic distribution of funds (no more than 20% of funds may be awarded to projects in a single State) • Balance needs of urban and rural communities • Up to $200 million to pay federal credit assistance subsidy costs (TIFIA program) • Priority Projects • Projects that need Federal funds to complete financing package - “gap funding” (less than 100% Fed share) • Projects expected to be completed by February 17, 2012

  33. ARRA TIGER Grants Primary Selection Criteria: • Long-term outcomes • State of Good Repair • Economic Competitiveness • Livibility • Sustainability • Safety • Jobs Creation and Economic stimulus Secondary Selection Criteria: • Innovation • Partnership

  34. ARRA TIGER Grants Implementation Schedule • Published Federal Register Notice: 5/18/2009 • Application Deadline: 9/15/2009 • Projects selection announcement: no later than 2/17/2010 For further questions, write: TIGERGrants@dot.gov

  35. REPORTING REQUIREMENTS All Recipients of ARRA funds will be required to submit Financial Status Reports and Milestone Progress Reports no later than 10 days after each quarter Section 1201 Report – Grantees to report basic data ($ commitments, number of Federal $ of projects, and job estimates) to USDOT Section 1512 Report – Grantees to report data by program to OMB – first report due October 10, 2009 35

  36. Please visit: www.fta.dot.gov/economicrecovery

  37. Questions? • Tony Cho • Community Planner • 1760 Market St., Suite 500 • Philadelphia, PA 19103 • 215-656-7250 • tony.cho@dot.gov www.fta.dot.gov/economicrecovery

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