ARPA BBBRC NOFO.pdf

NOTICE OF FUNDING OPPORTUNITY

EXECUTIVE SUMMARY

• Federal Agency Name: Economic Development Administration (EDA or the Agency), U.S. Department of Commerce (DOC).

• Federal Funding Opportunity Title: FY 2021 American Rescue Plan Act Build Back Better Regional Challenge Notice of Funding Opportunity (NOFO) (ARPA BBBRC NOFO).

• Announcement Type and Date: ARPA BBBRC NOFO publishing EDA’s application submission requirements and application review procedures under EDA’s Economic Adjustment Assistance program, as authorized by sections 209 and 703 of the Public Works and Economic Development Act of 1965, as amended (42 U.S.C. § 3121 et seq.) (PWEDA).

Effective date: July 22, 2021.

• Funding Opportunity Number: EDA-HDQ-ARPBBB-2021-2006976

• Catalog of Federal Domestic Assistance (CFDA) Number: 11.307, Economic Adjustment Assistance

• Dates: This is a two-phase competition. The deadline for Phase 1 Concept Proposals is 11:59 p.m. Eastern Time on October 19, 2021. For Phase 1 finalists selected to proceed to Phase 2, the deadline for Full Applications is 11:59 p.m. Eastern Time on March 15, 2022.

Applications received after this deadline will not be reviewed or considered. See section E of this ARPA BBBRC NOFO regarding EDA’s review process for each competition phase.

EDA may amend or cancel the ARPA BBBRC NOFO at any time. All changes will be communicated via Grants.gov.

• Eligible Applicants: Pursuant to section 3(4)(A) of PWEDA (42 U.S.C. § 3122(4)(A)) and 13 C.F.R. § 300.3 (Eligible Recipient), eligible applicants under this NOFO include a(n):

(i) District Organization of an EDA-designated Economic Development District (EDD);

(ii) Indian Tribe or a consortium of Indian Tribes; (iii) State, county, city, or other political subdivision of a State, including a special purpose unit of a State or local government engaged in economic or infrastructure development activities, or a consortium of political subdivisions; (iv) institution of higher education or a consortium of institutions of higher education; or (v) public or private non-profit organization or association acting in cooperation with officials of a general purpose political subdivision of a State.

Under this NOFO, EDA is not authorized to provide grants or cooperative agreements to individuals or to for-profit entities. Requests from such entities will not be considered for funding.

• Funding Opportunity Description: Subject to the availability of funds, awards made under this NOFO will transform regional economies through a collection of complementary, aligned construction and non-construction projects organized under a singular vision and designed to grow new industries and scale existing ones.

FULL ANNOUNCEMENT TEXT

FY 2021 EDA American Rescue Plan Act Build Back Better Regional Challenge Notice of Funding Opportunity

A. Program Description

1. Overview and Program Information

2. EDA Investment Priorities

3. Statutory Authorities for EDA’s Programs

4. What Is Resilience?

B. Federal Award Information

1. What Funding Is Available Under this Announcement?

2. What Type of Funding Instrument Will Be Used to Make Awards? How Long Will a

Project’s Period of Performance Be?

C. Eligibility Information

1. Eligible Applicants

2. Applicable Disaster Declaration and Responsiveness to the Coronavirus Pandemic

3. Cost Sharing or Matching

D. Application Submission Information

1. Address to Request Application Package

2. Content and Form of Phase 1 Concept Proposals and Phase 2 Full Applications

3. Submission Dates and Times

4. Intergovernmental Review

5. Pre-award Costs

6. Other Submission Requirements

E. Concept Proposal and Application Review Information

1. Review and Selection Process

2. Selection Review Committee and Grants Officer’s Decision

3. Federal Awardee Performance and Integrity Information System (FAPIIS) Review

F. Federal Award Administration Information

1. Federal Award Notification

2. Administrative and National Policy Requirements

3. DOC Financial Assistance Standard Terms and Conditions and EDA Standard Terms and

Conditions for RLF and Construction Projects

4. DOC Pre-Award Notification Requirements

5. Reporting

G. Federal Awarding Agency Contacts

Atlanta Regional Office Austin Regional Office

Chicago Regional Office Denver Regional Office Philadelphia Regional Office Seattle Regional Office

H. Other Information

1. Right to Use Information

2. Freedom of Information Act Disclosure

3. Notice of Government-Wide Procurement Restriction

4. Past Performance and Non-Compliance with Award Provisions

5. Certifications Required by Annual Appropriations Acts for Corporations and for Awards over $5 Million

6. EDA’s Non-Relocation Policy

7. Audit Requirements

8. Implementing the Americans with Disabilities Act (ADA)

9. Fraud Awareness Training

I. Instructions for Application Submission via Grants.gov

1. Register Early and Submit Early

2. Field Limitations and Special Characters

3. Verify That Your Submission Was Successful

4. Grants.gov Systems Issues

A. Program Description

1. Overview and Program Information

a. Overview

EDA’s mission is to lead the Federal economic development agenda by promoting innovation and competitiveness, preparing American regions for growth and success in the worldwide economy. Through this American Rescue Plan Act Build Back Better Regional Challenge Notice of Funding Opportunity (ARPA BBBRC NOFO), EDA aims to assist communities and regions impacted by the coronavirus pandemic. The pandemic has caused, and continues to cause, economic injury to U.S. communities and regions in devastating and unprecedented ways. This ARPA BBBRC NOFO is designed as a two-phase competition to (1) help regions develop transformational economic development strategies and (2) fund the implementation of those strategies that will create and grow regional growth clusters. Such efforts will help regional economies recover from the pandemic and build economic diversity and resiliency to mitigate impacts of future economic disasters as well as benefit regional workforces and residents through creation of high-quality jobs, increased wages, and revitalized communities.

For the purposes of this NOFO:

• “Regional growth cluster” is defined as several entities working together to grow a regional economy through the growth of an existing and/or creation of a new regional industry or industries. Regional growth clusters may align interconnected projects across state lines and/or across urban, suburban and rural communities, but they are concentrated in a bounded geography relative to the needs and conditions of the region that ensures maximum collaboration and impact.

• “Coalition” is defined as a group of eligible entities (see section C.1) that come together to apply to this ARPA BBBRC NOFO. At minimum, the coalition should include a lead institution and all entities that will submit applications for component projects in Phase 2 of this NOFO.

• “Partner” is defined as an entity that is not part of the official coalition applying to receive ARPA funding but who is committed to partnering with that coalition to make the regional growth cluster successful. Partner(s) could include, but are not limited to, employers and community-based organization and should be broadly representative of the economic and social characteristics of the region.

This ARPA BBBRC NOFO is designed to support clusters in transforming their regional economy through groups of complementary, aligned construction and non-construction projects.

The projects should be organized under a singular vision to support industry growth across the region. Interested regions should form regional coalitions, in coordination with private sector partners and other partners, that share a common vision for how significant investment from EDA could catalyze wage growth, increased economic growth, the creation of a new industry, and/or the scaling or growth of existing industries in their region. The identified projects should foster economic growth and competitiveness through job creation, capacity building, and attracting private investment.

This ARPA BBBRC NOFO will be administered in two phases:

• In Phase 1, EDA will provide technical assistance grants to approximately 50-60 coalitions (through an eligible entity that serves as a lead institution). These coalitions will be considered “finalists” and the grants will be used by the finalists to prepare more detailed applications for transformational projects that benefit their respective geographic regions and are aligned around a holistic approach to building, strengthening, or scaling a strategic industry or industries.

• In Phase 2, EDA will select 20-30 of the finalist coalitions to receive $25-75 million (and potentially up to $100 million) each to fund the collection of projects they identified. The projects will be funded through grants to coalition members.

While geographic diversity is encouraged, the applicant’s footprint should be designed and bounded in a way that ensures maximum collaboration and impact. The target region could correspond closely to statistical labor market areas such as metropolitan and micropolitan statistical areas, or to an industry that may be geographically dispersed but has unusually strong connectivity due to an established coalition of local government, industry, labor, and academic leaders. Regional growth clusters might reflect a hub and spoke model, anchored around a “hub” such as a city, business park, port, educational or research institution, or technology center, and complemented by significant investment strategies in multiple “spokes” that represent demographic and geographic diversity. Coalitions should clearly articulate how the chosen geographic footprint presents potential for globally competitive industries and a purposeful approach to ambitious yet actionable economic transformation, leading to quality jobs,1 long-term economic competitiveness, and creates stronger urban-rural linkages or stronger rural regional growth clusters. Regardless of the geographic and economic characteristics of the regions, it must be clear how the proposed projects will address economic distress, both historical challenges and those created by the global pandemic.

Although supported by several distinct projects, each regional growth cluster should be interconnected and work to drive competitiveness at a transformational scale, and be linked to a long-term strategic planning developed with community involvement. Examples of illustrative regional growth clusters include:

• Establishing an artificial intelligence (AI) corridor by funding: (1) planning and feasibility studies to develop critical, modern infrastructure for the corridor; (2) roads and modernized utilities to grow local industrial parks; (3) entrepreneurship and commercialization programs to capitalize on AI innovations; (4) workforce training programs with wrap-around services to support growing technology companies; (5) rural manufacturing supply chain planning to integrate more local manufacturers into the cluster and coordinated skilling efforts for their workforce as they adopt new technologies; (6) a rural energy biomass project; and (7) upgrades to a manufacturing facility owned by an eligible entity to ensure global readiness and competitiveness. Such

1 A “quality job” is defined as a job that exceeds the local prevailing wage for an industry in the region, includes basic benefits (e.g., paid leave, health insurance, retirement/savings plan) and/or is unionized and helps the employee develop the skills and experiences necessary to advance along a career path.

a cluster might include a significant commitment from a leading university to build a new AI program or supply locally-generated technology for commercialization.

• Scaling an agriculture-technology cluster in rural coal counties by funding: (1) unmanned aerial vehicle (UAV) technology commercialization and entrepreneurship support programing in a downtown university center; (2) the expansion of STEM and agriculture oriented workforce training centers in rural community colleges; (3) water irrigation infrastructure to increase crop resiliency and water usage efficiency across a region; (4) statewide supply chain planning to address seasonal inefficiencies due to crop cycles and build on local and regional food systems or increase national and international reach; and

(5) a multi-county revolving loan fund to provide gap financing for agriculture-technology-centered small businesses. Such a cluster might include significant commitments from industry to procure and support technologies commercialized from the state university and partner with farmers to test new technologies and practices.

• Growing a blue economy cluster (e.g., the sustainable use of ocean and coastal resources for economic growth, improved livelihoods, and jobs while preserving the health of ocean and coastal ecosystems) in a multi-county region that crosses State lines by funding: (1) long-term strategic planning related to supply chain resiliency through expansion and co-locating downstream suppliers; (2) key infrastructure investments like roads, sewer, water, and broadband to facilitate development of industrial parks and ports for blue economy parts suppliers and manufacturers; (3) critical workforce infrastructure at local community colleges to ensure a skilled and prepared workforce; (4) integrated and advanced workforce plans and strategies to link up related sectors; and (5) R&D and commercialization related to key industries. Such a cluster might also have employment commitments for the newly trained workforce from local start-up or expanding companies, and leverage other state and local blue economy infrastructure investments.

• An area historically reliant on the automotive industry wants to create a climate-friendly electric vehicle cluster by funding: (1) a new battery and lightweight composite materials research program and associated facilities at a local university; (2) a new non-profit workforce training center that focuses on the skills required by regional battery and automotive manufacturers; (3) an entrepreneurial center that focuses on commercializing new automotive technologies at start-up firms; and (4) programmatic support for a technology seed fund managed by a local CDFI.

EDA also expects to fund a few regional growth clusters, using at least 10% of the funding available under this NOFO, that support communities negatively impacted by the downturn in the coal economy and that are transitioning away from coal.

b. Key Elements of a Successful Regional Growth Cluster

A strong regional growth cluster will need to have a strong strategy for each of four key elements:

1. Regional Assets – A strong regional growth cluster will identify, make use of, enhance, and/or create regional assets that will support the regional growth cluster’s competitiveness. Regional assets include, but are not limited to, basic infrastructure (e.g., broadband), existing competitive advantages (e.g., access to the ocean, research universities, complementary capabilities among firms in a supply chain, unique recreational landscapes), newly proposed projects to catalyze economic growth (e.g., a new training facility, a new facility at a local community college), and diverse communities and geographies (e.g., diversity, links between urban, suburban, and rural areas). The application materials must discuss how the regional growth cluster will build upon and enhance existing assets and develop new regional assets.

2. Industry Leadership – A strong regional growth cluster will demonstrate strong alignment with existing or prospective industry needs and strong leadership from the private sector, aligned to the coalition’s vision. This could include employer commitments to job creation in the region, expected private sector investments, and the coalition’s private sector engagement strategy.

3. Sustainability – A strong regional growth cluster will have a plan to maintain or improve the cluster’s economic growth and shared prosperity in the years following the ARPA awards.

4. Equity – A strong regional growth cluster will ensure that the proposed projects’ and broader cluster’s benefits are shared across all affected communities, both urban and rural, and provides benefits to existing residents. Although not required, EDA encourages efforts to reach historically excluded populations, racial minorities, and women.

Applicants will communicate their strategies across these four key elements as part of both the Phase 1 and Phase 2 applications (see section D.2 for more details) and applications will be evaluated on the strength of those plans (see section E).

c. Coordinated Projects to Set Clusters Up for Success

Coalitions should propose 3-8 tightly aligned projects that aim to collectively address the following outputs and outcomes, among others as appropriate, considering each proposed project’s regional, sectoral, and economic contexts.

Coalitions should focus on developing a long-term, transformational vision and execution plan for a region’s industry. The plan should work to integrate cluster development efforts across a diverse array of communities and stakeholders, for example: state and local government, labor and community-based organizations, industry, academia, research institutions, philanthropy, and non-profits; and the plan should build technical assistance and coordination capacity to align and support key coalition members and cluster partners throughout project development and execution. The plan should include both near-term actions that can be accomplished in the first year and a longer-term strategy to drive durable change.

In addition, clusters should consider how projects can support economically disadvantaged communities and how both the projects and long-term strategy can advance equity, including the use of quantitative and qualitative data to measure and track outcomes and performance management.

Clusters should increase regional innovation and entrepreneurship capacity. Projects may aim to convert ideas, research, or prototypes into viable products and services that can be brought to market by new or existing businesses in a financially manageable and rapid manner and aim to develop entrepreneurs within the region who can experiment with and can create businesses and high-quality jobs from those innovations through, for example, innovation centers or technology commercialization projects.

In addition, clusters should foster and grow a workforce for industry and build infrastructure for growth. Some projects may focus on developing and executing training programs and support services that strengthen or build the region’s talent pool, emphasize in-demand skills, connect workers with quality jobs, and develop accessible career pathways for all residents within the region. This may include teaching foundational principles as well as applied knowledge, applicable to more than one employer as much as practicable, as well as supporting wrap-around services such as transportation, child care or career counseling in training programs. Other projects may build the infrastructure that enables the regional growth cluster to thrive, creating the conditions for businesses to grow and expand. This may include physical or non-physical infrastructure owned by an eligible entity that responds to and anticipates the facilities and systems required for the regional growth cluster to start, expand, or diversify.

All projects across should be coordinated such that the result is more than the sum of their parts and ideally together catalyze private sector investment and tangible outcomes for the region’s economy (e.g., wage growth, GDP growth).

d. Eligible Activities

Through this program, EDA can provide funding to support a wide range of non-construction and construction activities. This includes construction activities for eligible entities such as water and sewer system improvements, industrial parks, shipping and logistics facilities, business incubators and accelerators, brownfield redevelopment, technology-based facilities, food aggregation, processing and distribution centers, wet labs, multi-tenant manufacturing facilities, science and research parks, transportation enhancements, and telecommunications infrastructure (e.g., broadband) and development facilities. This also includes non-construction activities such as design and engineering, technical assistance, economic recovery strategy development, entrepreneurial support, demand-driven workforce training, new academic curricula, market feasibility studies, and the capitalization of revolving loan funds (RLFs).

Note that if a particular project is part of a regional growth cluster proposal and otherwise would have been eligible for inclusion in another EDA ARPA NOFO (for example, if the project supports an indigenous community or is focused on workforce training or travel/tourism), applicants are encouraged to include that project as part of a regional growth cluster under this ARPA BBBRC NOFO. However, if a project is submitted as part of a regional growth cluster under this NOFO, it cannot be a successful applicant under another NOFO until EDA makes a determination on the regional growth cluster application. If an applicant has inadvertently applied to the incorrect NOFO, or if a BBBRC Concept Proposal or a given component project is not selected, EDA in its discretion may move one or more of the proposed projects to another NOFO under which it is eligible.

In EDA’s experience with post-disaster recovery, the most effective rebuilding efforts are based on long-term regional development or redevelopment strategies that leverage Federal funding in coordination with state, local, and private sector resources. For this reason, EDA encourages the submission of applications based on long-term, regionally oriented, coordinated, and collaborative economic development or redevelopment strategies that foster economic growth and resilience.

It is important that investments support the economic recovery through strong employment opportunities for workers, including but not limited to opportunities for workforce development, rehiring of laid off workers, and creating and retaining union jobs and well-paying jobs with good benefits. Moreover, it is important that investments in infrastructure and construction projects be carried out in ways that produce high-quality infrastructure, avert disruptive and costly delays, and promote efficiency. EDA understands the importance of promoting workforce development and encourages recipients to ensure that construction projects use strong labor standards, including project labor agreements and community benefit agreements that offer wages at or above the prevailing rate and include local hire provisions to promote effective and efficient delivery of high-quality infrastructure projects, as well as the economic recovery. Using these practices in construction projects may help to ensure a reliable supply of skilled labor that would minimize disruptions, such as those associated with labor disputes or workplace injuries.

Prospective applicants should note that section C sets out eligibility criteria for applications, and only applications meeting the eligibility criteria will be considered. EDA will evaluate and select applications according to the evaluation criteria set forth in section E. EDA may alter or cancel the ARPA BBBRC NOFO at any time. All changes will be communicated via Grants.gov.

e. Assistance to Coal Communities

EDA expects at least $100 million of the funds under this NOFO to go to communities negatively impacted by changes in the coal economy. Like other communities across the country, the coronavirus pandemic exacerbated preexisting economic distress and highlighted the need for implementation projects and activities in these communities,2 such as those that:

o Will produce multiple economic and workforce development outcomes, such as promoting regional economic growth and diversification, new job creation, and re-employment opportunities for displaced coal economy workers; and o Are specifically identified under local and regional economic development plans that have been collaboratively produced by diverse local and regional stakeholders.

“Coal economy” is a term that reflects the complete supply chain of coal-reliant industries.3 This includes, but is not limited to: coal mining, coal-fired power plants, along with related transportation, logistics, and supply chain manufacturing. Applicants should submit information as part of their application demonstrating that the project is in or directly benefits a coal community (discussed below in section D.2). Examples of the types of acceptable data that applicants can use to demonstrate the negative impacts of local and/or regional coal industry

2 In general, EDA will consider applications for projects in communities and regions where the primary coal economy contraction “event” (e.g., closure of a coal mine or a coal-fired power plant, closure of various coal economy supply chain businesses, etc.) took place within 15 years of the application submission date. Note, this timeframe is a range during which projects will generally be eligible; applicants may propose projects outside this timeframe, but should take special care to demonstrate that the primary coal economy contraction “event” continues to tangibly impact the community.

3 Examples of supply chain industries include, but are not necessarily limited to, manufacturers of mining equipment and parts for coal-fired power plants and transportation companies that carry coal.

contractions include (and are not limited to) economic indicators, labor market analyses, official announcements made by local and regional industries and firms, demographic, and industry data.

f. Phase 1: Concept Proposals

In Phase 1 of the BBBRC, eligible applicants should form regional coalitions and collaborate to develop a Concept Proposal that outlines a vision for the development or expansion of a new or existing regional industry or industries as well as a collection of 3–8 potential projects designed to support that vision. The Concept Proposal must articulate the coalition’s proposed vision and possible outcomes for the cluster; articulate how the proposed cluster will meet the four key elements of a successful cluster discussed above (Regional Assets, Industry Leadership, Sustainability, and Equity); identify the lead institution, coalition members, and additional existing or potential cluster partners (including letters of support); and include a proposal for how the technical assistance award funds will be spent along with the identification of any prospective matching funds for Phase 2. See section D.2.a of this NOFO for more detailed information on the requirements for a Concept Proposal.

EDA will review Concept Proposals consistent with the evaluation criteria in section E.1.a of this NOFO. From the Concept Proposals received, EDA anticipates selecting approximately 50–60 regional growth cluster finalists. The lead institution for each of the finalists will receive a technical assistance grant of up to $500,000 to further develop individual component projects necessary to support the regional growth cluster, in collaboration with other coalition members and cluster partners. The deliverables for this technical assistance award include submittal of a Full Application for Phase 2 of this competition and continued development of component projects either into Phase 2 if selected to proceed or to mature the projects for future funding opportunities at EDA or other agencies. Eligible uses of the technical assistance award funds include development of environmental and engineering information, if applicable.4 The lead institution and other appropriate eligible applicants within the Phase 1 coalition will then be eligible to submit a Full Application for Phase 2, including proposals for individual component projects to support the regional growth cluster. See section D.2.a of this NOFO for more detailed information on the requirements for Concept Proposals. EDA staff members are available to provide applicants with technical assistance regarding application requirements.

g. Phase 2: Full Applications

As noted above, selected finalists under Phase 1 should submit a Full Application for Phase 2, which will include an Overarching Narrative and applications for individual component projects necessary to support the regional growth cluster. See section D.2.b of this NOFO for more detailed information on the requirements for a Full Application. Full Applications will be evaluated using the evaluation criteria in section E.1.b EDA anticipates that approximately 20– 30 of the finalists will be selected for full funding of individual construction and non-

4 Note that pursuant to sec. 213 of PWEDA (42 U.S.C. § 3153) and 13 C.F.R. § 302.10(a), EDA funds cannot be used to pay attorney or consultant fees in connection with obtaining a grant or contract under PWEDA, which includes filling out the standard government-wide (Form SF-424 family) or EDA (Form ED-900 family) application forms or expediting an application made to EDA.

construction component projects to support their identified regional growth cluster. Coalitions that are not selected for funding in Phase 2 may be eligible for funding under other EDA programs or other federal agencies.

EDA, at its discretion, may award individual grants or cooperative agreements for component projects to various eligible applicants identified as coalition members. Alternatively, EDA may award the lead institution a grant or cooperative agreement and permit the lead institution to sub-award funds among various coalition members to implement component projects.5 EDA at its discretion may fund all or only some of the originally proposed component projects depending on the viability and feasibility of those components and the availability of funds.

h. Ineligible Projects under this NOFO

Some projects are generally ineligible for EDA funding under this NOFO, including projects that directly improve facilities or improvements owned by a for-profit entity, projects that are primarily residential in nature, projects to create community amenities (e.g., swimming pools, zoos, recreational centers), projects that support general governmental or public safety functions (e.g., buildings to house municipal government, firehouses, public safety equipment), and requests for funding to supplement operating budgets or replace lost revenue (including lost tax revenue). In addition, EDA will not fund projects that are primarily directed at public health responses to the coronavirus pandemic (e.g., testing or vaccination centers, increased hospital capacity, acquisition of personal protective equipment (PPE) for general government use or public distribution) because there are other ARPA funds dedicated to these efforts; however, incidental public health costs may be included in project budgets (e.g., the cost of PPE for personnel providing technical assistance, larger spaces to accommodate social distancing, increased travel costs to accommodate pandemic safety measures). Applicants who are unsure whether their proposed project is eligible under this NOFO should consult the appropriate EDA Regional Office Point of Contact (POC) listed in section G.

Funds may not be used, directly or indirectly as an offset for other funds, to support or oppose collective bargaining.

i. CEDS Alignment

Each individual component project funded under this NOFO must be consistent with the region’s current CEDS or an equivalent EDA-accepted regional economic development strategy that meets EDA’s CEDS or strategy requirements. The lead institution should include in the Phase 2 Overarching Narrative (see Section D.2.b.i) a discussion of how the collection of proposed component projects will support the economic development needs and objectives outlined in the CEDS or equivalent strategy and provide a copy of this planning document, either by attaching the document to the application or providing a web link for the document. Because of the regional footprint of the projects anticipated by this NOFO, applicants may need to show alignment with multiple CEDS or regional or statewide equivalents. In addition, applicants

5 To the extent that a lead institution may sub-award any of these funds, the lead institution is responsible as a pass-through as defined in 2 C.F.R. § 200.332.

should indicate if other Federal funds have been secured or requested to support any portion of the project for which an EDA investment is proposed. Applicants should describe how the EDA investment will complement, leverage, or otherwise align with other public and private investments to accomplish the planned deliverables and outcomes. Where other Federal funding may be involved in the project, the applicant should provide the Federal program name and contact information with the application in order to facilitate interagency coordination, identify opportunities to leverage and complement aligned investments, and avoid duplication of resources.

2. EDA Investment Priorities

All projects considered for EDA funding under this ARPA BBBRC NOFO must be consistent with EDA’s Recovery and Resilience Investment Priority. Applicants also may demonstrate that a project is consistent with any of EDA’s other Investment Priorities and may be considered more competitive as a result. EDA’s Investment Priorities are located at https://www.eda.gov/ about/investment-priorities/. The priorities may be updated from time to time. Any future revisions will be reflected on EDA’s website on January 15, April 15, July 15, or October 15 of each year.

3. Statutory Authorities for EDA’s Programs

The statutory authority for this program is section 209 of the Public Works and Economic Development Act of 1965 (PWEDA) (42 U.S.C. § 3149). The statutory authorization of supplemental appropriations for economic disaster recovery activities is section 703 of PWEDA (42 U.S.C. § 3233). Additional programmatic authority is provided by the American Rescue Plan Act of 2021 (Pub. L. 117-2).

Applicant eligibility and program requirements are set forth in EDA’s regulations (codified at 13 C.F.R. Chapter III), and all applicants must address these requirements. EDA’s regulations are accessible at the Electronic Code of Federal Regulations website at https://www.ecfr.gov/cgi-bin/ECFR?page=browse. Under “Browse,” select “Title 13 – Business Credit and Assistance”, then “Go”, then “300-399”.

4. What Is Resilience?

In terms of economic development, resilience is broadly defined as the ability of a community or region to anticipate, withstand, and bounce back from various disruptions to its economic base.

These disruptions can be caused by a variety of things, including a downturn in the national or local economy as a result of the pandemic. Enhancing resilience in the face of the pandemic, especially in light of the on-going impacts of natural disasters and climate change, is a multi-dimensional effort emphasizing engagement and support from all aspects of the community, including economic development practitioners. Some examples include efforts to broaden the industrial base or local sectoral specialization with diversification initiatives (e.g., moving away from a local or regional economy overly dependent on one industry or employer that might be susceptible to downturns caused by the outsized effects of climate change on areas already hard-hit by the pandemic); enhance business retention and expansion programs to strengthen existing high-growth sectors and industries, development and construction of high-performance and resilient infrastructure and buildings (e.g., broadband, energy, flexible and natural infrastructure, https://www.eda.gov/about/investment-priorities/ https://www.eda.gov/about/investment-priorities/ https://www.eda.gov/about/investment-priorities/ https://www.ecfr.gov/cgi-bin/ECFR?page=browse https://www.ecfr.gov/cgi-bin/ECFR?page=browse https://www.ecfr.gov/cgi-bin/ECFR?page=browse safe development practices, business incubators) to mitigate future risk and vulnerability;

comprehensive planning efforts that involve extensive engagement from the community to define and implement a collective vision for economic recovery; reducing the environmental impact of a cluster; and helping firms in a cluster adopt practices that allow more flexible responses to changes in demands and supply (e.g., smart manufacturing, additive manufacturing, workforce trained in problem-solving and able to do a variety of jobs demanded by the current and future job markets). The development and adoption of new technologies play vital roles in strengthening economic resilience: deploying technologies (e.g., through more robust broadband networks) enables resilience in the face of natural disasters made worse by the pandemic and changing climate, and nurturing technology ecosystems supports dynamic, diverse economies that better withstand acute disruptions.

Resilience (within the context of economic development) should include methods and measures to mitigate the potential for future economic injury, promote a faster “up-time” for economic anchors (e.g., key businesses and/or industries), and strengthen local and regional capacity to troubleshoot and address vulnerabilities within the regional economy. As noted above, to be competitive under this ARPA BBBRC NOFO, application submissions must explicitly incorporate resilience principles. Additional information about this subject is available at https://www.eda.gov/ceds/content/economic-resilience.htm.

B. Federal Award Information

1. What Funding Is Available Under this Announcement?

Under the American Rescue Plan Act of 2021 (Public Law 117-2), Congress provided EDA with $3,000,000,000, to remain available until September 30, 2022, to “prevent, prepare for, and respond to coronavirus and for necessary expenses for responding to economic injury as a result of coronavirus.” Of the $3 billion in appropriated funds, this NOFO specifically allocates $1,000,000,000 for regional growth cluster development, with $100,000,000 of those funds going to communities negatively impacted by the downturn in the coal economy, supporting transitioning away from coal.

If an applicant is awarded funding, neither DOC nor EDA is under any obligation to provide any future funding in connection with that award or to make any future award(s). Amendments or renewals of an award to increase funding or to extend the period of performance are at the sole discretion of DOC and EDA.

Publication of this announcement does not obligate DOC or EDA to award any specific grant or cooperative agreement or to obligate all or any part of available funds. The granting of any award is subject to the availability of funds at the time of award as well as to DOC priorities at the time of award. Neither DOC nor EDA will be held responsible for application preparation costs.

EDA anticipates up to $30,000,000 in total being awarded in Phase 1, in technical assistance grants of up to $500,000 each. In Phase 2, EDA anticipates funding regional growth clusters with component projects that collectively cost between approximately $25,000,000 and $75,000,000, though EDA will consider regional growth clusters above and below these amounts depending on the strength of the application and quality of the individual component projects. EDA https://www.eda.gov/ceds/content/economic-resilience.htm https://www.eda.gov/ceds/content/economic-resilience.htm anticipates that the cost of individual non-construction and construction component projects within regional growth clusters will range from approximately $750,000 to $25,000,000, or more if the cluster or project warrants it.

Depending on demand under this NOFO, EDA may exercise its discretion to adjust the total amount available under this NOFO and other American Rescue Plan Act NOFOs to ensure funds are used to maximum effect or to adjust to unforeseen changes in recovery efforts.

2. What Type of Funding Instrument Will Be Used to Make Awards? How Long Will a Project’s Period of Performance Be?

Funding Instrument: Subject to the availability of funds, EDA may award grants or cooperative agreements to eligible applicants. EDA will award a cooperative agreement on a case-by-case basis if substantial agency involvement is required. For a cooperative agreement, the nature of EDA’s “substantial involvement” (to be included in the terms and conditions of the award) will generally be collaboration between EDA and the recipient on the scope of work, including administering sub-awards to other coalition members. However, other possible examples of EDA’s “substantial involvement” may include, but are not limited to: (i) authority to halt immediately an activity if detailed performance specifications are not met; (ii) stipulation that the recipient must meet or adhere to specific procedural requirements before subsequent stages of a project may continue; and (iii) operational involvement and monitoring during the project to ensure compliance with statutory requirements.

Period of Performance: Under this program, the project period of performance depends on the nature of the project for which the grant or cooperative agreement is awarded. Typically, non-construction projects, including Phase 1 technical assistance grants and non-construction components in Phase 2, may range in duration from 12 to 24 months, but given the current on-going economic conditions, EDA expects some projects may require a period of performance of up to 48 months. Implementation grants involving construction of project facilities and infrastructure generally are expected to range from 12 to 48 months. EDA will work closely with award recipients to accommodate their projected timelines within reason and allowances of regulations and grant policies. EDA expects that all projects will proceed efficiently and expeditiously, and EDA encourages applicants to clearly document how quickly they will be able to start and complete the proposed project scope of work. All American Rescue Plan Act Funds must be expended by September 30, 2027, and therefore no grant periods of performance may be extended beyond that date.

C. Eligibility Information

1. Eligible Applicants

Eligible applicants for investment assistance as a lead institution or a coalition member include a(n):

a. District Organization;

b. Indian Tribe or a consortium of Indian Tribes;

c. State, county, city, or other political subdivision of a State, including a special purpose unit of a State or local government engaged in economic or infrastructure development activities, or a consortium of political subdivisions;

d. Institution of higher education or a consortium of institutions of higher education; or

e. Public or private non-profit organization or association acting in cooperation with officials of a political subdivision of a State.6

2. Applicable Disaster Declaration and Responsiveness to the Coronavirus Pandemic

EDA has determined that economic injury from the coronavirus pandemic constitutes a “Special Need,” and eligibility may be established on that basis without reference to the other economic distress criteria. This determination of nationwide eligibility for these funds is consistent with the March 13, 2020 emergency declaration for the coronavirus disease 2019 (COVID-19) pandemic pursuant to the Stafford Act for all states, tribes, territories, local governments, and the District of Columbia (https://www.fema.gov/disasters/coronavirus/ disaster-declarations#).

EDA has further determined that due to the pervasive nature of the economic impacts of the coronavirus pandemic, any construction or non-construction project that would address those impacts by creating or retaining jobs, or increasing the economic diversity or resiliency of a region, is eligible for funding. For example, an infrastructure project that creates new jobs in a region is responsive to the requirement that the funds be spent to respond to “economic injury as a result of coronavirus.”

3. Cost Sharing or Matching

a. EDA Investment Rate

Phase 1 technical assistance grants (as described in section A.1) will be awarded at a 100% federal grant rate for a maximum amount of $500,000.

For component projects awarded under Phase 2, EDA generally expects to fund at least 80% and up to 100% of eligible project costs, given the extent of the economic impact and in accordance with the agency’s statutory authority under section 703 of PWEDA (42 U.S.C. § 3233). In determining whether to fund an individual component project of a regional growth cluster at a Federal share above 80%, EDA will consider on a case-by-case basis whether the circumstances of the coalition member constructing the individual component warrant a Federal share in excess of 80%, including whether the applicant coalition member has exhausted its effective taxing or borrowing capacity, the extent of the economic impact of the coronavirus pandemic on the region, or whether the region meets other thresholds for elevated need based on the relative economic distress of the region. Additionally, EDA may establish a maximum investment rate of up to 100% for projects of Indian Tribes within a regional growth cluster. Any portion of the costs for the EDA scope of work funded below 100% must be borne by the recipients or provided to the recipients by a third party as a contribution for the purposes of and subject to the terms of the award.

6 See section 3 of PWEDA (42 U.S.C. § 3122) and 13 C.F.R. § 300.3.

https://www.fema.gov/disasters/coronavirus/disaster-declarations

b. Documentation of Cost Sharing or Matching

The applicant must document that required matching share will: (i) be committed to the project for the period of performance, (ii) be available as needed, and (iii) not be conditioned or encumbered in any way that may preclude its use consistent with the requirements of EDA investment assistance.7 In order to meet these requirements, applicants must submit for each source of the matching share a commitment letter or equivalent document signed by an authorized representative of the organization providing the matching funds.

Additional documentation may be requested by EDA in order to substantiate the availability of the matching funds. For example, if bonds are contemplated as match, counsel opinion of the applicant’s bonding authority and eligibility of the bonds for use as match, along with full disclosure of the type of bonds and the schedule of the applicant’s intended bond issue, are required. Please contact the appropriate EDA Regional Office Point of Contact (POC) listed in section G of this NOFO with questions regarding EDA’s matching share requirements.

Documented in-kind contributions may provide the required non-Federal Share, if any, of the total project cost, but they must be eligible project costs and meet applicable Federal cost principles and uniform administrative requirements. Examples of in-kind contributions can include space, equipment, services, or forgiveness or assumptions of debt.8 Funds from other Federal financial assistance awards may be considered matching share funds only if authorized by statute, which may be determined by EDA’s reasonable interpretation of the statute.9

Applicants are strongly encouraged to work with the appropriate POC listed in section G of this NOFO to determine how in-kind contributions may be utilized to satisfy the matching share requirement for their application.

D. Application Submission Information

All submissions under this ARPA BBBRC NOFO are subject to the below review process.

To be considered for funding under Phase 1, an applicant must submit a complete Phase 1 Concept Proposal and additional required documentation. To be considered for funding under Phase 2, the proposed project must support a Concept Proposal selected as a finalist under Phase 1, and the applicant for that project must be a member of the Coalition associated with that Concept Proposal. All Phase 2 projects must be part of a Phase 2 Full Application. Requirements for Phase 1 Concept Proposals and Phase 2 Full Applications are detailed in section D.2 of this NOFO.

With respect to Phase 1, Concept Proposals must be submitted by 11:59 p.m. Eastern Time on October 19, 2021. EDA anticipates expeditiously reviewing complete Concept Proposals and awarding technical assistance grants by December 8, 2021. With respect to Phase 2, 7 See 13 C.F.R. § 301.5.

8 See section 204(b) of PWEDA (42 U.S.C. § 3144) and the definition of “In-Kind Contribution” at 13 C.F.R. § 300.3.

9 See the definition of “Local Share or Matching Share” at 13 C.F.R. § 300.3. See also 2 C.F.R. § 200.306.

Full Applications must be submitted by 11:59 p.m. Eastern Time on March 15, 2022; however, applications for Phase 2 projects may be submitted as soon as the application is ready. EDA anticipates expeditiously reviewing complete Full Applications and making Phase 2 award announcements no later than September 2022. EDA may seek additional information or documentation from the applicant to clarify information presented in the Concept Proposal or Full Application. EDA also may, in its sole discretion, continue review of any application with minor defects or errors, while the applicant supplies the missing information. Please see section E of this ARPA BBBRC NOFO for more information on EDA’s review and selection process.

EDA strongly encourages applicants to consult with the appropriate POC listed in section G to discuss whether their project is in alignment with EDA’s Investment Priorities as well as EDA’s eligibility requirements, cost-sharing requirements, property standards, and other requirements outlined in this ARPA BBBRC NOFO.