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The American The American Recovery and Recovery and

Reinvestment Act of Reinvestment Act of 2009 (ARRA)2009 (ARRA)

EnactedEnactedFebruary 17, 2009February 17, 2009

The American Recovery and Reinvestment Bill was signed by president Obama on February 17, 2009. It is a concerted effort to create and save 3 to 4 million jobs & jumpstart our economy.

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Main Objectives of the ActMain Objectives of the Act

• Job preservation and creation

• Infrastructure investment• Energy efficiency and

science• Assistance to

unemployed, and• State and local fiscal

stabilization

This Act has a number of objectives including:•To preserve and create jobs and promote economic recovery•To invest in transportation, environmental protection, and other infrastructure that will provide long-term economic benefits•To provide investments needed to increase economic efficiency by spurring technological advances in science and health•To assist those most impacted by the recession•To stabilize State and local government budgets, in order to minimize and avoid reductions in essential services and counterproductive state and local tax increases.

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Overview of Final Legislation

– $27.5 Billion for Highways– $8.4 Billion for Transit– $1.5 Billion for Discretionary Program– $9.3 Billion for Rail – $1.3 Billion for Aviation– $0.12 Billion Misc. Other Transportation– $48.12 Billion TOTAL

For Transportation

$27.5 Billion for Highways (FHWA administered)$8.4 Billion for Transit (FTA administered)$1.5 Billion for Discretionary Program (FHWA)$9.3 Billion for Rail $1.3 Billion for Aviation$0.12 Billion Misc. Other Transportation$48.12 Billion TOTAL for TRANSPORTATION

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Remainder Apportioned to States $26.6BNew York State:

Transportation Enhancements -

3%

$33,620,542

Sub-Allocation for Areas Based on

Population – 30%

$336,205,417

For Any Area of the State – 67%

$750,858,764

Urbanized Areas over 200,000

Population

$263,944,891

For Areas with Population

≤ 200,000

$52,857,589

For Areas with Population

≤ 5,000

$19,402,937

Poughkeepsie-Newburgh $6,236,056Rochester $12,302,597Syracuse $7,126,955

Albany $9,902,850Bridgeport--Stamford $756,798Buffalo $17,304,223New York--Newark $210,315,412

$392,244,653 by June 30th

$1,120,684,723

•This slide summarizes the distribution of highway funding in ARRA. To recap: $27.5 B is available nationwide. •Of this total, $840 M is taken off the top: FHWA Admin & oversight, Federal lands Highway Program, Puerto Rico & territorial progeams, Ferry Boat & ferry Terminal facilities program, etc, leaving $26.6 B for apportionment to States. •Click> Then the remaining money is apportioned to the States. The apportioned funds to States is done by formula with 3% set-aside for Transportation Enhancements, 30% suballocated to local areas via STP formula and 67% available for any area of the State ($750,858,764). •Note: The suballocated funds are for use in the specific areas as designated. The current STP suballocation process will apply to ARRA suballocated funds. States maintain control of the funds and must consult with MPOs and local governments on the selection of projects to be funded in those areas.

•Note: Suballocation is required for all states. The exception for Alaska and Hawaii under 23 USC 133(d)(3)(C) does not apply.

Click> as shown in a following slide, NY has 120 days (from Match 2, 2009) to obligate 50% of the $750,858,764; otherwise, money gets redistributed to other States. That is $392,244,653 by June 30th. Any portion of this 50% of apportioned funds that is not obligated will be withdrawn and redistributed to other States that have obligated their funds in a timely manner. This provision is applicable only to those funds apportioned to the State and not those funds suballocated by population to Metropolitan Planning Organizations (MPO’s) and local jurisdictions. The obligation cut-off for this redistribution is 11:59 PM on June 29, 2009. (revised 3/24/09)

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Key PointsKey Points

• May not be used for any advance construction on previously authorized federal-aid projects.

• Federal share up to 100%• In selecting projects for funding, priority is to be given

to projects that are:– Projected for completion within 3 years– Located in economically distressed areas

• Eligible Uses– Restoration, repair, construction and other

activities under Surface Transportation Program– Passenger and freight rail transportation and port

infrastructure projects as described under TIFIA

•Eligible Uses•Restoration, repair, construction and other activities eligible under the Surface Transportation Program•Passenger and freight rail transportation •Port infrastructure projects•If rail or port project is eligible for TIFIA funds it is eligible to receive ARRA funds

•<click> May not be used for conversion of advance construction on previously authorized federal-aid projects.

•Click> Federal share for ARRA projects is up to 100%, at the option of the recipient.•Selection priority

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Economically Distressed Areas - Priority shall be given to projects that are located in economically distressed areas as defined by section 301 of the Public Works and Economic Development Act of 1965, as amended (42 U.S.C. 3161). To assist the States in determining where their ARRA projects are relative to economically distressed areas, FHWA has incorporated two maps with the requisite information (low per capital income and/or unemployment rate above national average) on the Office of Planning’s HEPGIS viewer

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““Use It or Lose ItUse It or Lose It”” ProvisionsProvisions

• First Redistribution– Fifty percent of funds apportioned to the State –

excluding funds suballocated – must be obligated within 120 days or the remainder will be redistributed.

$392,244,653 by June 30th

• Second Redistribution– After 1 year after apportionment, all unobligated

balances of apportioned funds, included funds suballocated, will be redistributed. $1,120,684,723

March 2, 2010

• If NY returns $$ on the firstredistribution, State will not be eligible for redistributions.

•• If NY If NY returnsreturns $$ on the $$ on the firstfirstredistribution, State will redistribution, State will notnot be be eligible for redistributions.eligible for redistributions.

Recipients of redistributed funds will Recipients of redistributed funds will have until Sept. 30, 2010 to obligate.have until Sept. 30, 2010 to obligate.

There are two points in time for withdrawal and redistribution of apportioned funds.

•At 120 days after the apportionment to the state (June 30, 2009), fifty percent of the apportioned funds – excluding funds suballocated – must be obligated. Any portion of this fifty percent of apportioned funds, including Transportation Enhancements funds, that are not obligated will be withdrawn and redistributed to other states.•Click> At 1 year after the apportionment to the state (March 2, 2010), all apportioned funds-including suballocated funds-must be obligated. Any portion of the apportioned funds that are not obligated will be withdrawn and redistributed to other states. These funds are then available until September 30, 2010 for obligation. $1,120,684,723•Click> If NY If NY returnsreturns $$ on the first redistribution (June $$ on the first redistribution (June 3030thth, 2009), State will , 2009), State will notnot be eligible for redistributions.be eligible for redistributions.

While the redistribution deadlines focus on obligations, FHWA’s goal will be to get as many ARRA funded project awarded and under construction as quickly as possible.

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National Surface TransportationNational Surface TransportationDiscretionary GrantsDiscretionary Grants

$1.5 billion (≤ $200 million for TIFIA)• Projects with significant impact on Nation,

Metropolitan Area or Region.• Ensure equitable geographic distribution of

funds and appropriate balance between urban/rural

• ≤ 20% of total funds to single State• Grants between $20-$300 million• Federal share up to 100%

• The National Surface Transportation Discretionary Grants will be administered by the Office of the Secretary with support from the modal administrations.

• This program is funded at $1.5 billion and provides for up to $200 million to be used for TIFIA credit program. No decision has been made on the amount to be used for TIFIA.

• Eligible Projects: Capital Investments in surface transportation infrastructure, including:

• Highway or bridge projects under 23 USC• Public transportation projects under chapter 53 or 49 USC, including

New Starts and Small Starts program that will speed the completion of those projects and bring them into revenue service.

• Passenger and freight rail transportation projects• Port infrastructure investments, including projects that connect ports to

other modes and improve the efficiency of freight movement.

• The law calls for equitable geographical distribution with no more than 20% to any one State and an appropriate balance between urban and rural projects. Grants are designed to be between $20 million - $300 million with no more than 20% of the total funds going to any single state. Federal share is up to 100%

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National Surface TransportationNational Surface TransportationDiscretionary GrantsDiscretionary Grants

• Priority to projects that require additional share of Federal funds to complete financing.

• Priority to projects expected to be completed within 3 years of enactment.

• Publish competitive criteria within 90 days of enactment

• Applications submitted within 180 days of enactment

• All projects selected within 1 year• Obligated by end of FY 2011

•Priority will be given to projects that require additional share of Federal funds to complete financing for the project.

•Priority will be given to projects expected to be completed within 3 years of ARRA enactment.

•The competitive criteria will be published within 90 days of enactment of ARRA.

•Applications for the National Surface Transportation Discretionary Grants will need to be submitted within 180 days of ARRA being enacted.

•Projects will be selected within 1 year of enactment and will need to be obligated by end of Fiscal Year 2011.

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Reporting RequirementsReporting RequirementsTypes of ReportsTypes of Reports

• Types of Reports– Certification (once)

– Periodic (90 & 180 days and 1, 2, & 3 years)

– Quarterly

•The ARRA legislation includes several different types of reports. These include:

•Certifications which are provided once.•Periodic reports on specified dates, and•Quarterly reports.

•Three different certifications are required•The due dates range from 30 to 45 days after enactment•The requirements for these certifications are being managed by the Office of the Secretary.

•Periodic reports are required 90 & 180 days, and 1, 2, & 3 years after enactment.

•Over half of the required data should be available in the FHWA Financial Management and Information System (FMIS)

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Periodic ReportsPeriodic ReportsReporting ScheduleReporting Schedule

• Required 90 & 180 days, and 1, 2, and 3 years after enactment.

• Includes information on:1. Number of projects where work has

begun2. Number of projects where work is

complete3. Number of direct and indirect jobs4. Aggregate expenditure of State funds5. Total amount appropriated, allocated,

obligated, and outlayed6. Number of projects let to bid and number

of projects awarded

• First report due to FHWA by May 19th

•The clock starts ticking with the date of enactment (February 19, 2009). 1th FHWA report due May 19th

•The States will be responsible for reporting numbers 1 – 4•FHWA will be able to get numbers 5 & 6 from existing data systems.

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Quarterly Reports Quarterly Reports Reporting ScheduleReporting Schedule

• States to report to FHWA within 10 days of the end of each calendar quarter

• First report due to FHWA by April 10• FHWA to report to Recovery.gov within 30 days

of the end of each calendar quarter• Includes information on:

1. Name of project2. Description of project3. Estimate of completion status4. Number of jobs created and number of

jobs retained5. Purpose, cost, and rationale6. Subcontract information7. Total funds received8. Total amount expended or obligated

•The States will be responsible for items 1 – 6•FHWA will be able to provide items 7 & 8•It’s anticipated that items 1, 2, and 5 will need to be provided within 30 days of enactment.•These items will be used to meet the quarterly reporting requirements.•States would only need to resubmit items 1, 2, or 5 if somethingchanges.

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OverviewOverviewState DOT provide dataState DOT provide data

Periodic reportsProjects bidProjects awardedContractor info.

Initial reportsProject numberName of projectDescriptionPurposeCostRationaleLocation

Sent to FHWASent to FHWAFHWA provide dataFHWA provide data

Periodic reportsIndirect jobs

Monthly reportsAppropriatedAllocatedObligatedOutlayed

Geospatial dataHighway networkPer capita incomeUnemployment rate

Monthly reportsJobs createdJobs retainedCompletion status

•This slide illustrates the different types of data required, frequency of data and reporting, and the expected source of the data.

•By March 13 FHWA will provide specific guidance to the States onhow, when, and where to provide the required data. The guidance will also outline how the States data will be incorporated with existing federal data (FHWA and non-FHWA) to meet the ARRA reporting requirements. •FHWA is also looking at other ways to reduce the data reporting burden for States.•OMB has recently issued two sets of guidance that includes data specifications and additional reporting requirements. •The initial OMB “Implementation Guidance” will not impact the States or FHWA, however the second “Recovery Act Architecture” may impact the States and/or FHWA. •OMB has indicated that their initial guidance will be revised; the proposed changes and their impact on the States and FHWA are still unknown.

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FHWA FHWA Stewardship and OversightStewardship and Oversight

• Delivery of the ARRA is the top priority for FHWA

• FHWA is redirecting existing staff and adding additional part-time and full time staff to support increased work load.

•The delivery of the ARRA is critical to the Nation’s economy and is the top priority for FHWA.

•We have analyzed our expected work load and are taking steps to redirect existing staff and add additional staff to provide the necessary support.

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FHWA FHWA Stewardship and OversightStewardship and Oversight

• Projects must follow all Federal requirements

• Projects will be advanced with maximum flexibility under the regulations

• Projects will be administered in accordance with our normal Stewardship Agreements

•While we will do all we can to be flexible in our approach the Congress and the Secretary have made clear that we are to follow all existing Federal requirements.

•Our normal Stewardship Agreement provisions (as modified by the provisions of the ARRA) will be used to administer these funds.

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FHWA FHWA Stewardship and OversightStewardship and Oversight

• A higher level of accountability and increased attention by GAO and IG is expected.

• FHWA is developing an ARRA Risk Management Plan.

• FHWA will use a variety of techniques to conduct in-process examination of areas identified as high risk.

• Financial management and State oversight of local projects will be areas of particular attention.

•Increased attention by GAO, the OIG, and others should be expected.

•We are developing an ARRA Risk Management Plan to ensure that FHWA is most effectively using its resources to oversee theARRA efforts.

•We will use a variety of techniques involving both Division Staff and other teams to conduct in-process examination of the delivery of the ARRA.

•Financial Management has been and will continue to be an area of increased oversight.

•State stewardship and oversight for local project administration is currently an area of focus for FHWA and will be given particularattention.

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For More InformationFor More Information

http://www.fhwa.dot.gov/economicrecovery

• Summary of Highway Provisions• Funding Distribution Tables• FAQs• Best Practices

The weblink shown on the screen is the “go to” place for information on the highway portion of the American Recovery and Reinvestment Act. It includes:•Summary on Highway Provisions•Funding Distribution Tables•Frequently Asked Questions•Best Practices

This page will be updated as new information becomes available.