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Early Mitigation Funding

Early Mitigation Funding. A new mechanism to facilitate the timely, cost-effective delivery of transportation projects. Many Lost Opportunities to Maximize Environmental Benefits. Time sensitive opportunities exist (e.g., land with specific resources becoming scarce)

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Early Mitigation Funding

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  1. Early Mitigation Funding A new mechanism to facilitate the timely, cost-effective delivery of transportation projects

  2. Many Lost Opportunities to Maximize Environmental Benefits • Time sensitive opportunities exist (e.g., land with specific resources becoming scarce) • Current lack of volume purchasing power • Chance to reduce capital costs (e.g., land costs rising rapidly in many areas) • Better long-term planning needed

  3. Mitigation Process Improvement Team (MITPIT) • Recommended advanced mitigation planning • Participation of Department (HQ, districts, and many functional units) and FHWA • Completed in 2000

  4. Issue Paper • Funding Pre-project Mitigation Costs • Identified issues and proposed solutions • Approved by Brent Felker, 10/18/2002

  5. Implementing Memo • Guidelines for Implementing Early Mitigation Funding, 4/18/03 • Written by HQ ENV and R/W

  6. Two Funding Processes • Mitigation Advanced (AF) • Single project • Mitigation Only (MO) • To mitigate for multiple projects with same or similar mitigation needs

  7. Use of Existing Data • District mitigation cost estimates are already in PEAR’s compiled by Districts • PEAR’s required for PSR-PDS projects and highly recommended for other projects.

  8. HQ ENV and R/W Roles • Establish statewide project delivery mitigation priorities • Monitor funding reserve availability by program and statewide • Review projects recommended by districts

  9. District ENV and R/W Roles • Compile annual District mitigation Need Summary (MNS) with estimate of R/W Capital Costs - 10 year plan – by 3/31 • Identify candidate projects • AF • MO (as needed)

  10. District MNS Contents • Transportation Project Data • Resources Needed, Benefits • Advance Funds Requested, Justification • Transportation Benefits • Agency Support • District Need Offsets

  11. Example • A series of high priority projects on a 20-mile reach of freeway will impact a large amount of coastal sage scrub and rare species. Resource agencies have identified compensatory mitigation consistent with a Recovery Plan. • Land prices are rising quickly and the landowner is anxious to develop the suggested mitigation parcel; there are few left in this area.

  12. Example • The entire group of projects could be mitigated, allowing congestion relief, air quality improvement, and a safety benefit. A large portion of the district’s mitigation needs would be met. Conservation groups have written the DD urging support. • This example would be a good candidate for a MO or AF project?

  13. Costs Potentially Eligible for Reimbursement • Permit fees • Right of entry costs • ED support costs (e.g., record searches) • Utility design and pot holing • Early acquisition • Hardship and protection acquisition

  14. Costs Potentially Eligible for Reimbursement (continued) • Purchase and holding of properties • Purchase of mitigation bank credits • Conservation easements • Purchase options and endowment funds • Purchase and improvement for MO projects

  15. District Request and Justification • Once R/W Annual Capital allocation and/or fund reserves have been approved by the CTC… • District ENV Chief submits request to HQ ENV and R/W for approval of specific projects previously identified in the MNS submittal.

  16. Factors Considered in Approval Include • Satisfaction of MNS needs • Strength of resource agency agreements, permits, support • Benefit of mitigation and advancing related transportation projects • Strategic opportunities and partnerships • Strength of community support, context sensitivity

  17. Factors Considered in Approval Include (continued) • Savings and efficiencies • Compliance with all environmental laws, regulations, and policies • Availability of ED approval • Preservation of project alternatives • Revocable commitment of resources, if needed • Willingness of the seller

  18. HQ Review and Approval • Limited funding in SHOPP for first year anticipated. • MO projects reviewed and approved by HQ ENV and R/W will be submitted to Programming for use of limited reserves of SHOPP, IIP, or RIP funds.

  19. Close • Early Mitigation Funding will provide additional flexibility to deliver transportation projects and maximize environmental benefits • Better long-range planning • More efficient use of increasingly limited funds

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