2015 hute notice of funding opportunity final.docx

Notice of Funding Opportunity Highway Use Tax Evasion Assistance Announcement; Funding for Fuel Tax Intergovernmental Efforts FY 2015

A. Program Description

The Highway Use Tax Evasion Projects program provides funding to the Internal Revenue Service, and the States to carry out intergovernmental fuel excise tax enforcement efforts along with training and research to reduce evasion of payment of motor fuel and other highway use taxes.

“MAP-21,the Moving Ahead for Progress in the 21st Century (Pub. L. 112-141 was signed into law by President Obama on July 6, 2012”Section 1110 of MAP-21, as further extended by Congress authorizes contract authority funding not to exceed $10 million per fiscal year derived from the Highway Trust Fund for Fuel Tax Evasion Enforcement Intergovernmental Grants to further enhance compliance with motor fuel and highway use taxes.

The Federal Highway Administration (FHWA) administers the program and is seeking applications for the FY 2015 funding cycle.

The Secretary of Transportation has discretion in the allocation of funds to the Internal Revenue Service, and the States, except that $2 million must be made available only to carry out intergovernmental enforcement efforts, including research and training.

FHWA has provided funding to the States for enforcement efforts since the early 1990s and has been providing discretionary grant awards since 2006.

Previous awards have been used to establish new programs for testing fuels, expanding the use of electronic tracking of fuel movement, and for various training and research initiatives. Reports from the awarded agencies have shown increased revenue and assessments in the areas targeted. As the applicants are encouraged to work with other agencies, resources can be combined and information exchanged which often proves valuable in identifying parties engaged in fuel tax evasion.

Statutory citation(s): MAP-21 §1110; 23 USC 143

B. Federal Award Information

For this opportunity, FHWA will have approximately $4,500,000 in Federal assistance available for award. The average number of applicants who applied for these funding opportunities in the past has historically ranged from 18 to 20 applications per announcement, with an average of 15 projects awarded funding. The minimum funding per project will be $10,000 and the maximum funding per year per project will be $250,000.

The anticipated award process would allow for performance periods to start on October 1, 2015 and have various project end dates depending on the type of work that is being performed. On average, the performance period is about 3 years.

Applications for renewal or supplementation of existing projects will be considered, but are not automatically awarded. The benefits associated with continuing the activity is considered as part of the evaluation process.

The Federal assistance will be awarded by issuance of a grant agreement for which the recipient (awarded agency) will be responsible for the performance and reporting of the progress of the project or activity being funded. If the agency responsible for performance of the work is not a State Transportation Agency (e.g. State Revenue Agency, State Police or Enforcement Group, etc.) reimbursement will likely rely on that agency’s working agreement with the State Transportation Agency.

C. Eligibility Information

1. Applicants Eligible applicants include States, which includes the 50 United States and the District of Columbia. Under 23 U.S.C. 302 and 23 CFR 1.3, Federal-aid highway funding is awarded to the State transportation agency; State transportation agencies in turn, may make a sub-award to another agency within the State.

2. Cost Sharing or Matching The Federal share of the cost of a project carried out under this subsection shall be 100 percent. Cost sharing is not required.

3. Other There is no limitation on the number of applications that may be submitted by an eligible applicant.

Funds made available to States to carry out this section shall be used only -

(a) to expand efforts to enhance motor fuel tax enforcement;

(b) to supplement motor fuel tax examinations and criminal investigations;

(c) to develop automated data processing tools to monitor motor fuel production and sales;

(d) to evaluate and implement registration and reporting requirements for motor fuel taxpayers;

(e) to reimburse State expenses that supplement existing fuel tax compliance efforts;

(f) to analyze and implement programs to reduce tax evasion associated with other highway use taxes;

(g) to support efforts between States and Indian tribes to address issues relating to State motor fuel taxes;

(h) to analyze and implement programs to reduce tax evasion associated with foreign imported fuel;

(i) to carry out intergovernmental enforcement efforts, including research and training

(j) Maintenance of effort. - The Secretary may not make an allocation to a State under this program for a fiscal year unless the State certifies that the aggregate expenditure of funds of the State, exclusive of Federal funds, for motor fuel tax enforcement activities will be maintained at a level that does not fall below the average level of such expenditure for the preceding 2 fiscal years of the State.

D. Application and Submission Information

1. Address to Request Application Package All application materials may be found on the grants.gov website at http://www.grants.gov.

Once at www.grants.gov, you should select the Search Grants tab. You can then enter either or both:

· Opportunity Number: FHWA-FTE-2015-01

· CFDA Number: 20.240

You will then select the Opportunity and you will be taken to a page with several tabs. The first tab is a synopsis of the opportunity. When you select the Application Package tab, you will be given the opportunity to download the forms needed for the full application. While the forms and navigation is rather intuitive, grants.gov provides robust help and training materials to assist.

If you do not have access to the Internet, you can request paper copies of the application forms from:

Michael Dougherty 1200 New Jersey Ave, SE Room E83-409 Washington, DC 20590 Phone: (202) 366-9234 Fax: (202) 366-3297

TTY: (800) 877-8339

2. Content and Form of Application Submission

The application package shall consist of the following:

• SF424-Short Form

• Project Abstract

• SF424A – Budget Information – Non-Construction Programs

Completion of the SF424-Short Form and the Project Abstract are mandatory. Eligible applicants include States, and the District of Columbia.

3. Unique Entity Identifier and System for Award Management (SAM)

Each applicant is required to:

(i) Be registered in SAM before submitting its application;

(ii) Provide a valid unique entity identifier in its application; and

(iii) Continue to maintain an active SAM registration with current information at all times during which it has an active Federal award or an application or plan under consideration by a Federal awarding agency.

The Federal Highway Administration may not make a Federal award to an applicant until the applicant has complied with all applicable unique entity identifier and SAM requirements. If an applicant has not fully complied with the requirements by the time the Federal awarding agency is ready to make a Federal award, the Federal awarding agency may determine that the applicant is not qualified to receive a Federal award and use that determination as a basis for making a Federal award to another applicant.

The SAM requires the registrant to provide a DUNS number in order to complete the registration. These processes can take several weeks to complete so should be started well before the application deadline.

4. Submission Dates and Times

This opportunity requires one submission. The deadline for the completed application package will be Friday, July 17, 2015 at 4:00 PM EDT. The deadline cited herein is the date and time by which the agency must receive the application.

FHWA uses www.grants.gov for receipt of all applications. In the event of system problems or technical difficulties with the application submittal, applicants should contact the FHWA point of contact designated in the announcement. Late applications will not be reviewed or considered unless it is determined it is in the Government’s best interests to consider the application. In the case of a failure in part or whole to process the application package through the grants.gov site, and in the case of an approved alternative submission format, such as through US Postal Service, Commercial Carrier, electronic mail (e-mail), or other method, the deadline date and time will apply to the applicable time for the submission, such as a postmark.

The applicant will receive automated messages from the grants.gov system when their application is received in the system after passing some basic tests. They will also be notified when the FHWA Office of Highway Policy Information, who manages the program, downloads a correctly submitted application package.

5. Intergovernmental Review

This funding opportunity is subject to Executive Order 12372, “Intergovernmental Review of Federal Programs”. Not every State participates in this review process, but in the case of those that do, you should contact your State Point of Contact (SPOC) to find out about, and comply with the State’s process under Executive Order 12372. The names and addresses of the SPOCs are listed in the Office of Management and Budget's Web site https://www.whitehouse.gov/omb/grants_spoc/.

6. Funding Restrictions

There are no limitations on the inclusion of direct or indirect costs (except that an approved indirect cost rate is a precondition for the agency claiming indirect costs under a Federal award; 2 CFR 200, Appendix VII, States and Local Government and Indian Tribe Indirect Cost Proposals) and allowable activities are included in the defining statute at the United States Code, Title 23, Section 143. Pre-award costs are not allowed under this program.

7. Other Submission Requirements

No other documentation is required other than the full application package on grants.gov. If any technical issues preclude the required electronic submission of the application, please contact the person named in part 1 of this section for further instructions.

E. Application Review Information

1. Criteria Applicants are encouraged to submit innovative proposals to reduce fuel tax evasion and increase collaboration and coordination among several public agencies, including Federal agencies. Research and training proposals are also eligible. If any proposal involves more than one State, one State would be designated as the lead State for the project and would be responsible for filing the application and coordinating the work of all the participants. Any project reports would also be compiled by the lead State.

The evaluation of the submitted applications will be performed by a team of reviewers from FHWA and the IRS. Each reviewer will evaluate the proposals based on:

· Completeness

· Evasion Enforcement Potential

· Innovation

· Estimation of Risk of Failure of Project

· Intergovernmental Inclusion

Alternatively, those proposals that are primarily for training opportunities, which are allowed explicitly through the statute, will be considered for their potential to instruct methods that will identify and reduce fuel tax evasion. Cost sharing will not be considered in the evaluation.

2. Review and Selection Process

Opportunities will be open to all States and their agencies with no regard to geography or amounts of proposed award. The review teams will use the criteria mentioned in part one of this section and will make recommendations to the Administrator of FHWA who shall make the final approvals for awarding the grants.

F. Federal Award Administration Information

1. Federal Award Notices

Upon selection, the successful applicant will receive written notice of the award from the Federal Highway Administration’s Office of Highway Policy Information as an attachment to e-mail directed to the address of the primary contact as submitted on the required Form 424 included with the application. Shortly afterward, a project agreement (FHWA Form 1548) will be sent to the primary contact for signature. Once the authorized representative from that agency signs two copies of the form, they will retain one copy for their records and forward one to the local FHWA Division Office. Obligation of the funds will take place once the FHWA Division Administrator signs the agreement. The notice will include all of the information required in 23 CFR 200.210.

At the same time, the selected applicants are notified, a letter will be sent, also attached to an e-mail, notifying them that they were not selected for award through this advertisement.

2. Administrative and National Policy Requirements

The administrative policy requirements are listed in the FHWA Form 1548, Project Agreement for the Joint Federal/State Motor Fuel Tax Compliance Project. Applicants may wish to review this document before applying to assure that they can meet the requirements. Copies of the agreement can be obtained by contacting the primary office for the program:

Michael Dougherty 1200 New Jersey Ave, SE Room E83-409 Washington, DC 20590 Phone: (202) 366-9234 Fax: (202) 366-3297

TTY: (800) 877-8339

3. Reporting

An annual report shall be submitted no later than 60 days after the end of each Federal fiscal year (September 30). The annual report shall include a narrative report that describes the projects carried out under this agreement and shall specify the estimated annual yield from such projects along with an expenditure summary. The final performance and financial summary report (if this agreement is not continued) shall be submitted by the State no later than 60 days after the termination of the period of performance. The final report shall include a discussion of the accomplishments of the project, an expenditure summary by cost category, and a summary of any audit findings or plans to address the audit requirements of Article 3 of the General Provisions of the Agreement.

G. Federal Awarding Agency Contacts

If there are any questions regarding the application and award process, they may be addressed to:

Michael Dougherty 1200 New Jersey Ave, SE Room E83-409 Washington, DC 20590 Phone: (202) 366-9234 Fax: (202) 366-3297

TTY: (800) 877-8339

H. Other

There have been various programs that have provided awards to States for efforts to combat fuel tax evasion since the early 1990’s. The competitive discretionary grant format has been used to advertise and award the grants since 2006. The 2015 award is a continuation of the program

Any funds administered under this program shall be used in accordance with the specifications in 2 CFR 200 Subpart E-Cost Principles http://www.ecfr.gov/cgi-bin/text-idx?SID=616a6a6c9a0b52b7bbf48e027a88a1b7&mc=true&node=sp2.1.200.e&rgn=div6. Alternatively, you may go to the Electronic Code of Federal Regulations website at www.ecfr.gov and navigate to Title 2 (Grants and Agreements), Subtitle A, Chapter II, Part 200, Subpart E.

This program is administered by the Federal Highway Administration’s Office of Highway Policy Information. Additional information regarding that office’s initiative, including additional information on fuel tax evasion enforcement initiatives can be found at http://www.fhwa.dot.gov/policyinformation/motorfueldata.cfm.

Details of the Highway Use Tax Evasion program, as authorized under the current Surface Transportation Authorization, the Moving Ahead for Progress in the 21st Century (MAP-21) Act, can be found at http://www.fhwa.dot.gov/map21/factsheets/hut.cfm.