BUILD 2020 NOFO.PDF

G4910-9X

DEPARTMENT OF TRANSPORTATION

Office of the Secretary of Transportation

Notice of Funding Opportunity for the Department of Transportation’s National

Infrastructure Investments under the Consolidated Appropriations Act, 2020

AGENCY: Office of the Secretary of Transportation, DOT

ACTION: Notice of Funding Opportunity

SUMMARY: The Further Consolidated Appropriations Act, 2020 (Pub. L. 116-94, December 20, 2019) (“FY 2020 Appropriations Act”) appropriated $1 billion to be awarded by the Department of Transportation (“DOT”) for National Infrastructure

Investments. This appropriation stems from the program funded and implemented pursuant to the American Recovery and Reinvestment Act of 2009 (the “Recovery Act”) and is known as the Better Utilizing Investments to Leverage Development, or “BUILD

Transportation Grants,” program. Funds for the FY 2020 BUILD Transportation grants program are to be awarded on a competitive basis for surface transportation infrastructure projects that will have a significant local or regional impact. The purpose of this notice is to solicit applications for BUILD Transportation grants.

DATES: Applications must be submitted by 5:00 PM E.D.T. on May 18, 2020.

ADDRESSES: Applications must be submitted through Grants.gov.

FOR FURTHER INFORMATION CONTACT: For further information concerning this notice, please contact the BUILD Transportation grants program staff via e-mail at

BUILDgrants@dot.gov, or call Howard Hill at 202-366-0301. A TDD is available for individuals who are deaf or hard of hearing at 202-366-3993. In addition, DOT will mailto:BUILDgrants@dot.gov regularly post answers to questions and requests for clarifications as well as information about webinars for further guidance on DOT’s website at www.transportation.gov/BUILDgrants.

SUPPLEMENTARY INFORMATION: Each section of this notice contains information and instructions relevant to the application process for these BUILD

Transportation grants, and all applicants should read this notice in its entirety so that they have the information they need to submit eligible and competitive applications. The definitions of urban and rural areas are consistent with the FY 2019 BUILD

Transportation grant definitions, which differed from previous rounds. Additionally, not more than 50 percent of funds will be awarded to projects located in urban and rural areas, respectively. In addition to capital awards, DOT will award at least $15 million for eligible planning and preconstruction activities that do not result in construction of a capital project.

Table of Contents

A. Program Description

B. Federal Award Information

C. Eligibility Information

D. Application and Submission Information

E. Application Review Information

F. Federal Award Administration Information

G. Federal Awarding Agency Contacts

H. Other Information http://www.transportation.gov/BUILDgrants

A. Program Description

The Further Consolidated Appropriations Act, 2020 (Pub. L. 116-94, December 20, 2019) (“FY 2020 Appropriations Act”) appropriated $1 billion to be awarded by the

Department of Transportation (“DOT”) for National Infrastructure Investments. Since this program was created, $8 billion has been awarded for capital investments in surface transportation infrastructure over eleven rounds of competitive grants. Throughout the program, these discretionary grant awards have supported projects that have a significant local or regional impact.

Like the FY 2017 TIGER program, the FY 2020 BUILD program will also give special consideration to projects which emphasize improved access to reliable, safe, and affordable transportation for communities in rural areas, such as projects that improve infrastructure condition, address public health and safety, promote regional connectivity or facilitate economic growth or competitiveness. Consistent with DOT’s R.O.U.T.E.S.

initiative, DOT seeks rural projects that address deteriorating conditions and disproportionately high fatality rates on rural transportation infrastructure. Such projects may concurrently invest in broadband to better facilitate productivity and help rural citizens access opportunities, or promote energy independence to help deliver significant local or regional economic benefit.

B. Federal Award Information

1. Amount Available

The FY 2020 Appropriations Act appropriated $1 billion to be awarded by DOT for the BUILD Transportation grants program. The FY 2020 BUILD Transportation grants are for capital investments in surface transportation infrastructure and are to be awarded on a competitive basis for projects that will have a significant local or regional impact.

Additionally, DOT will award no less than $15 million (of the $1 billion) for the planning, preparation or design of eligible projects. DOT refers to such awards as

BUILD Transportation planning grants. The FY 2020 Appropriations Act also allows

DOT to retain up to $25 million of the $1 billion for award, oversight and administration of grants and credit assistance made under the program. In addition to the FY 2020

BUILD funds, unobligated TIGER FY 2017 and FY 2018 BUILD funds may be made available and awarded under this solicitation to projects that can be obligated before the

September 30, 2020 obligation deadline associated with those prior years’ funds. If this solicitation does not result in the award and obligation of all available funds, DOT may publish additional solicitations.

The FY 2020 Appropriations Act allows up to 20 percent of available funds (or $200 million) to be used by DOT to pay the subsidy and administrative costs of a project receiving credit assistance under the Transportation Infrastructure Finance and

Innovation Act of 1998 (“TIFIA”) or Railroad Rehabilitation and Improvement Financing

(RRIF) programs, if that use of the FY 2020 BUILD funds would further the purposes of the BUILD Transportation grants program.

2. Award Size

The FY 2020 Appropriations Act specifies that BUILD Transportation grants may not be less than $5 million and not greater than $25 million, except that for projects located in rural areas (as defined in Section C.4.(a)) the minimum award size is $1 million.

There is no minimum award size, regardless of location, for BUILD Transportation planning grants. Applicants are strongly encouraged to submit applications only for eligible award amounts.

3. Restrictions on Funding

Pursuant to the FY 2020 Appropriations Act, no more than 10 percent of the funds made available for BUILD Transportation grants (or $100 million) may be awarded to projects in a single State. The Act also directs that not more than 50 percent of the funds provided for BUILD Transportation grants (or $500 million) shall be awarded to projects located in rural areas (as defined in section C.4.(a)) and directs that not more than 50 percent of the funds provided for BUILD Transportation grants (or $500 million) shall be awarded to projects located in urbanized areas (as defined in section C.4.(a)). Further, DOT must take measures to ensure an equitable geographic distribution of grant funds, an appropriate balance in addressing the needs of urban and rural areas, and investment in a variety of transportation modes.

4. Availability of Funds

The FY 2020 Appropriations Act requires that FY 2020 BUILD Transportation grants funds are available for obligation only through September 30, 2022. Obligation occurs when a selected applicant and DOT enter into a written grant agreement after the applicant has satisfied applicable administrative requirements, including transportation planning and environmental review requirements. Unless authorized by DOT in writing after DOT’s announcement of FY 2020 BUILD awards, any costs incurred prior to

DOT’s obligation of funds for a project are ineligible for reimbursement.1 All FY 2020

1 Pre-award costs are only costs incurred directly pursuant to the negotiation and anticipation of the BUILD award where such costs are necessary for efficient and timely performance of the scope of work, as determined by DOT. Costs incurred under an advance construction (23 U.S.C. 115) authorization before

BUILD funds must be expended (the grant obligation must be liquidated or actually paid out to the grantee) by September 30, 2027. After this date, unliquidated funds are no longer available to the project. As part of the review and selection process described in

Section E.2., DOT will consider a project’s likelihood of being ready to proceed with an obligation of BUILD Transportation grant funds and complete liquidation of these obligations, within the statutory timelines. No waiver is possible for these deadlines.

5. Previous BUILD/TIGER Awards

Recipients of BUILD/TIGER grants may apply for funding to support additional phases of a project previously awarded funds in the BUILD/TIGER program. However, to be competitive, the applicant should demonstrate the extent to which the previously funded project phase has met estimated project schedules and budget, as well as the ability to realize the benefits expected for the project.

C. Eligibility Information

To be selected for a BUILD Transportation grant, an applicant must be an Eligible

Applicant and the project must be an Eligible Project.

1. Eligible Applicants

Eligible Applicants for BUILD Transportation grants are State, local and tribal governments, including U.S. territories, transit agencies, port authorities, metropolitan planning organizations (MPOs), and other political subdivisions of State or local governments.

the DOT announces that a project is selected for a FY 2020 BUILD award cannot be charged to FY 2020 BUILD funds.

Likewise, costs incurred under an FTA Letter of No Prejudice under Chapter 53 of title 49 U.S.C. before the DOT announces that a project is selected for a FY 2020 BUILD award cannot be charged to FY 2020 BUILD funds.

Multiple States or jurisdictions may submit a joint application and must identify a lead applicant as the primary point of contact and also identify the primary recipient of the award. Each applicant in a joint application must be an Eligible Applicant. Joint applications must include a description of the roles and responsibilities of each applicant and must be signed by each applicant.

DOT expects that the eligible applicant that submits the application will administer and deliver the project. If the applicant seeks a transfer of the award to another agency, a letter of support from the designated entity must be included in the application.

2. Cost Sharing or Matching

Per the FY 2020 Appropriations Act, the Federal share of project costs for which an expenditure is made under the BUILD Transportation grant program may not exceed 80 percent for a project located in an urban area.2 The Secretary may increase the Federal share of costs above 80 percent for a project located in a rural area. Urban area and rural area are defined in Section C.4.(a) of this notice. DOT shall give priority to projects that require a contribution of Federal funds in order to complete an overall financing package.

Non-Federal sources include State funds originating from programs funded by State revenue, local funds originating from State or local revenue-funded programs, or private funds. Toll credits under 23 U.S.C. 120(i) are considered a Federal source under the

BUILD program and, therefore, cannot be used to satisfy the statutory cost sharing requirement of a BUILD award. Unless otherwise authorized by statute, non-Federal cost-share may not be counted as the non-Federal share for both the BUILD

Transportation grant and another Federal grant program. DOT will not consider

2 To meet match requirements, the minimum total project cost for a project located in an urban area must be $6.25 million.

previously incurred costs or previously expended or encumbered funds towards the matching requirement for any project. Matching funds are subject to the same Federal requirements described in Section F.2. as awarded funds. If repaid from non-Federal sources, Federal credit assistance is considered non-Federal share.

For each project that receives a BUILD Transportation grant award, the terms of the award will require the recipient to complete the project using at least the level of non-

Federal funding that was specified in the application. If the actual costs of the project are greater than the costs estimated in the application, the recipient will be responsible for increasing the non-Federal contribution. If the actual costs of the project are less than the costs estimated in the application, DOT will generally reduce the Federal contribution.

3. Other

i. Eligible Projects

(a) Capital Projects

Eligible projects for BUILD Transportation grants are surface transportation capital projects that include, but are not limited to: (1) highway, bridge, or other road projects eligible under title 23, United States Code; (2) public transportation projects eligible under chapter 53 of title 49, United States Code; (3) passenger and freight rail transportation projects; (4) port infrastructure investments (including inland port infrastructure and land ports of entry); (5) intermodal projects; and (6) projects investing in surface transportation facilities that are located on tribal land and for which title or maintenance responsibility is vested in the Federal Government.3

3 Please note that DOT may award a BUILD Transportation grant to pay for the surface transportation components of a broader project that has non-surface transportation components, and applicants are encouraged to apply for BUILD Transportation grants to pay for the surface transportation components of these projects.

Other than projects described in this section, improvements to Federally owned facilities are ineligible under the FY 2020 BUILD program. Research, demonstration, or pilot projects are eligible only if they will result in long-term, permanent surface transportation infrastructure that has independent utility as defined in Section C.4. (b).

(b) Planning Projects

Activities eligible for funding under BUILD Transportation planning grants are related to the planning, preparation, or design—including environmental analysis, feasibility studies, and other pre-construction activities—of eligible surface transportation capital projects described in Section C.3. (a).

In addition, eligible activities related to multidisciplinary projects or regional planning may include: (1) Development of master plans, comprehensive plans, or corridor plans; (2) Planning activities related to the development of a multimodal freight corridor, including those that seek to reduce conflicts with residential areas and with passenger and non-motorized traffic; (3) Development of port and regional port planning grants, including State-wide or multi-port planning within a single jurisdiction or region;

(4) Risk assessments and planning to identify vulnerabilities and address the transportation system’s ability to withstand probable occurrence or recurrence of an emergency or major disaster.

ii. Rural/Urban Definition

For purposes of this notice, a project is designated as urban if it is located within (or on the boundary of) a Census-designated urbanized area4 that had a population greater

4 Updated lists of UAs as defined by the Census Bureau are available on the Census Bureau website at https://www.census.gov/geographies/reference-maps/2010/geo/2010-census-urban-areas.html.

than 200,000 in the 2010 Census.5 If a project is located outside a Census-designated urbanized area with a population greater than 200,000, it is designated as a rural project.

Rural and urban definitions differ in some other DOT programs, including TIFIA.

A project located in both an urban and a rural area will be designated as urban if the majority of the project’s costs will be spent in urban areas. Conversely, a project located in both an urban area and a rural area will be designated as rural if the majority of the project’s costs will be spent in rural areas. For BUILD Transportation planning grants, the location of the project being planned, prepared, or designed will be used for the urban or rural designation.

This definition affects four aspects of the program: (1) not more than $500 million of the funds provided for BUILD Transportation grants are to be used for projects in rural areas; (2) not more than $500 million of the funds provided for BUILD Transportation grants are to be used for projects in urban areas; (3) for a project in a rural area the minimum award is $1 million; and (4) the Secretary may increase the Federal share above

80 percent to pay for the costs of a project in a rural area.

iii. Project Components

An application may describe a project that contains more than one component, and may describe components that may be carried out by parties other than the applicant.

DOT expects, and will impose requirements on fund recipients to ensure, that all components included in an application will be delivered as part of the BUILD project, regardless of whether a component includes Federal funding. DOT may award funds for a component, instead of the larger project, if that component (1) independently meets

5 See www.transportation.gov/BUILDgrants for a list of UAs.

minimum award amounts described in Section B and all eligibility requirements described in Section C; (2) independently aligns well with the selection criteria specified in Section E.1; and (3) meets National Environmental Policy Act (NEPA) requirements with respect to independent utility. Independent utility means that the component will represent a transportation improvement that is usable and represents a reasonable expenditure of DOT funds even if no other improvements are made in the area, and will be ready for intended use upon completion of that component's construction. All project components that are presented together in a single application must demonstrate a relationship or connection between them. (See Section D.2. for Required Approvals).

Applicants should be aware that, depending upon the relationship between project components and applicable Federal law, DOT funding of only some project components may make other project components subject to Federal requirements as described in

Section F.2.

DOT strongly encourages applicants to identify in their applications the project components that have independent utility and separately detail costs and requested

BUILD Transportation grant funding for those components. If the application identifies one or more independent project components, the application should clearly identify how each independent component addresses selection criteria and produces benefits on its own, in addition to describing how the full proposal of which the independent component is a part addresses selection criteria.

iv. Application Limit

Each lead applicant may submit no more than three applications. Unrelated project components should not be bundled in a single application for the purpose of adhering to the limit. If a lead applicant submits more than three applications as the lead applicant, only the first three received will be considered.

D. Application and Submission Information

1. Address

Applications must be submitted to Grants.gov. Instructions for submitting applications can be found at www.transportation.gov/BUILDgrants along with specific instructions for the forms and attachments required for submission.

2. Content and Form of Application Submission

The application must include the Standard Form 424 (Application for Federal

Assistance), cover page, and the Project Narrative. Applicants are encouraged to also complete SF-424C and attach to their application the “BUILD 2020 Project Information” form available at www.transportation.gov/BUILDgrants.

DOT recommends that the project narrative follow the basic outline below to address the program requirements and assist evaluators in locating relevant information.

I. Project Description See D.2.i II. Project Location See D.2.ii III. Grant Funds, Sources and Uses of all Project

Funding See D.2.iii

IV. Selection Criteria See D.2. iv. and E.1 V. Environmental Risk Review See D.2. v. and E.1.ii VI. Benefit Cost Analysis See D.2.vi. and E.1. iii.

The project narrative should include the information necessary for DOT to determine that the project satisfies project requirements described in Sections B and C and to assess the selection criteria specified in Section E.1. To the extent practicable, applicants should provide supporting data and documentation in a form that is directly verifiable by DOT. DOT may ask any applicant to supplement data in its application but expects applications to be complete upon submission.

In addition to a detailed statement of work, detailed project schedule, and detailed project budget, the project narrative should include a table of contents, maps and graphics, as appropriate, to make the information easier to review. DOT recommends that the project narrative be prepared with standard formatting preferences (a single-spaced document, using a standard 12-point font such as Times New Roman, with 1-inch margins). The project narrative may not exceed 30 pages in length, excluding cover pages and table of contents. The only substantive portions that may exceed the 30-page limit are documents supporting assertions or conclusions made in the 30-page project narrative. If possible, website links to supporting documentation should be provided rather than copies of these supporting materials. If supporting documents are submitted, applicants should clearly identify within the project narrative the relevant portion of the project narrative that each supporting document supports. DOT recommends using appropriately descriptive file names (e.g., “Project Narrative,” “Maps,” “Memoranda of

Understanding and Letters of Support,” etc.) for all attachments. DOT recommends applications include the following sections:

i. Project Description

The first section of the application should provide a description of the project, the transportation challenges that it is intended to address, and how it will address those challenges. This section should discuss the project’s history, including a description of any previously completed components. The applicant may use this section to place the project into a broader context of other transportation infrastructure investments being pursued by the project sponsor, and, if applicable, how it will benefit communities in rural areas. Applicants may also include a detailed statement of work that focuses on the technical and engineering aspects of the project and describes in detail the project to be constructed.

ii. Project Location

This section of the application should describe the project location, including a detailed geographical description of the proposed project, a map of the project’s location and connections to existing transportation infrastructure, and geospatial data describing the project location. The application should also identify whether the project is located in an Opportunity Zone.6 The Department intends to collect Opportunity Zone information to advance other Department activities related to Opportunity Zones, but the Department does not consider projects located in an Opportunity Zone to be more competitive for a

BUILD 2020 award than projects located outside an Opportunity Zone7. If the project is located within the boundary of a Census-designated urbanized area, the application should identify that urbanized area.

iii. Grant Funds, Sources and Uses of Project Funds

This section of the application should describe the budget for the BUILD project

(i.e. the project scope that includes BUILD funding). This budget should not include any previously incurred expenses. At a minimum, it should include:

(a) Costs for the BUILD 2020 project;

(b) For all funds to be used for eligible project costs, the source and amount of

6 See https://www.cdfifund.gov/Pages/Opportunity-Zones.aspx for more information on Opportunity Zones 7 See https://www.transportation.gov/opportunity-zones for more information about the Department’s activities related to Opportunity Zones.

https://www.cdfifund.gov/Pages/Opportunity-Zones.aspx https://www.transportation.gov/opportunity-zones those funds;

(c) For non-Federal funds to be used for eligible project costs, documentation of funding commitments. Documentation should also be included as an appendix to the application. If matching contributions from a State DOT are included as non-Federal match, a supporting letter from the State indicating the source of the funds;

(d) For Federal funds to be used for eligible project costs, the amount, nature, and source of any required non-Federal match for those funds; and

(e) A budget showing how each source of funds will be spent. The budget should show how each funding source will share in each major construction activity, and present that data in dollars and percentages.

Funding sources should be grouped into three categories: non-Federal, BUILD, and other Federal. If the project contains individual components, the budget should separate the costs of each project component. If the project will be completed in phases, the budget should separate the costs of each phase. The budget detail should sufficiently demonstrate that the project satisfies the statutory cost-sharing requirements described in

Section C.2.

In addition to the information enumerated above, this section should provide complete information on how all project funds may be used. For example, if a particular source of funds is available only after a condition is satisfied, the application should identify that condition and describe the applicant’s control over whether it is satisfied.

Similarly, if a particular source of funds is available for expenditure only during a fixed time period, the application should describe that restriction. Complete information about project funds will ensure that DOT’s expectations for award execution align with any funding restrictions unrelated to DOT, even if an award differs from the applicant’s request.

iv. Selection Criteria

This section of the application should demonstrate how the project aligns with the criteria described in Section E.1 of this notice. DOT encourages applicants to either address each criterion or expressly state that the project does not address the criterion.

Applicants are not required to follow a specific format, but the outline suggested addresses each criterion separately and promotes a clear discussion that assists project evaluators. To minimize redundant information in the application, DOT encourages applicants to cross-reference from this section of their application to relevant substantive information in other sections of the application. The guidance in this section is about how the applicant should organize their application. Guidance describing how DOT will evaluate projects against the Selection Criteria is in Section E.1 of this notice. Applicants also should review that section before considering how to organize their application.

(1) Primary Selection Criteria

(a) Safety

This section of the application should describe the anticipated outcomes of the project that support the Safety criterion (described in Section E.1.i.(a) of this notice). The applicant should include information on, and to the extent possible, quantify, how the project would improve safety outcomes within the project area or wider transportation network, to include how the project will reduce the number, rate, and consequences of transportation-related accidents, serious injuries, and fatalities. If applicable, the applicant should also include information on how the project will eliminate unsafe grade crossings or contribute to preventing unintended releases of hazardous materials.

(b) State of Good Repair

This section of the application should describe how the project will contribute to a state of good repair by improving the condition or resilience of existing transportation facilities and systems (described in Section E.1.i.(b) of this notice), including the project’s current condition and how the proposed project will improve it, and any estimates of impacts on long-term cost structures or overall life-cycle costs. If the project will contribute to a state of good repair of transportation infrastructure that supports border security, the applicant should describe how.

(c) Economic Competitiveness

This section of the application should describe how the project will support the

Economic Competitiveness criterion (described in Section E.1.i.(c) of this notice). The applicant should include information about expected impacts of the project on the movement of goods and people, including how the project increases the efficiency of movement and thereby reduces costs of doing business, improves local and regional freight connectivity to the national and global economy, reduces burdens of commuting, and improves overall well-being. The applicant should describe the extent to which the project contributes to the functioning and growth of the economy, including the extent to which the project addresses congestion or freight connectivity, bridges service gaps in rural areas, or promotes the expansion of private economic development.

(d) Environmental Sustainability

This section of the application should describe how the project addresses the environmental sustainability criterion (described in Section E.1.i.(d) of this notice).

Applicants are encouraged to provide quantitative information, including baseline information that demonstrates how the project will reduce energy consumption, reduce stormwater runoff, or achieve other benefits for the environment such as brownfield redevelopment.

(e) Quality of Life

This section should describe how the project increases transportation choices for individuals, expands access to essential services for people in communities across the

United States, improves connectivity for citizens to jobs, health care, and other critical destinations, particularly for rural communities, or otherwise addresses the quality of life criterion (described in Section E.1.i.(e) of this notice). If construction of the transportation project will allow concurrent installation of fiber or other broadband deployment as an essential service, the applicant should describe those activities and how they support quality of life. Unless the concurrent activities support transportation, they will not be eligible for reimbursement.

(2) Secondary Selection Criteria

(a) Innovation

This section of the application should describe innovative strategies used and the anticipated benefits of using those strategies, including those corresponding to three categories (described in Section E.1.i.(f) of this notice): (i) Innovative Technologies, (ii)

Innovative Project Delivery, or (iii) Innovative Financing.

(i) Innovative Technologies

If an applicant is proposing to adopt innovative safety approaches or technology, the application should demonstrate the applicant’s capacity to implement those innovations, the applicant’s understanding of applicable Federal requirements and whether the innovations may require extraordinary permitting, approvals, exemptions, waivers, or other procedural actions, and the effects of those innovations on the project delivery timeline.

If an applicant is proposing to deploy innovative traveler information systems or technologies as part of the surface transportation capital project, including work zone data exchanges or related data exchanges, the application should demonstrate the applicant’s capacity to implement these innovations, the applicant’s understanding of applicable data standards, and whether the proposed innovations will advance safety or other benefits during and after project completion.

If an applicant is proposing to deploy autonomous vehicles or other innovative motor vehicle technology, the application should demonstrate that all vehicles will comply with applicable safety requirements, including those administered by the National

Highway Traffic Safety Administration (NHTSA) and Federal Motor Carrier Safety

Administration (FMCSA). Specifically, the application should show that vehicles acquired for the proposed project will comply with applicable Federal Motor Vehicle

Safety Standards (FMVSS) and Federal Motor Carrier Safety Regulations (FMCSR). If the vehicles may not comply, the application should either (1) show that the vehicles and their proposed operations are within the scope of an exemption or waiver that has already been granted by NHTSA, FMCSA, or both agencies or (2) directly address whether the project will require exemptions or waivers from the FMVSS, FMCSR, or any other regulation and, if the project will require exemptions or waivers, present a plan for obtaining them.

(ii) Innovative Project Delivery

If an applicant plans to use innovative approaches to project delivery or is located in a State with NEPA delegation authority, applicants should describe those project delivery methods and how they are expected to improve the efficiency of the project development or expedite project delivery.

If an applicant is proposing to use SEP–14 or SEP–15 (as described in section

E.1.i.(f) of this notice) the applicant should describe that proposal. The applicant should also provide sufficient information for evaluators to confirm that the applicant’s proposal would meet the requirements of the specific experimental authority program.8

(iii) Innovative Financing

If an applicant plans to incorporate innovative funding or financing, the applicant should describe the funding or financing approach, including a description of all activities undertaken to pursue private funding or financing for the project and the outcomes of those activities.

(b) Partnership

This section of the application should include information to assess the partnership criterion (described in Section E.1.i.(g) of this notice) including a list of all project parties and details about the proposed grant recipient and other public and private parties who

8 SEP–14 information is available at https://www.fhwa.dot.gov/programadmin/contracts/sep_ a.cfm. SEP–15 information is available at https://www.fhwa.dot.gov/ipd/p3/toolkit/usdot/sep15/implementation_procedure/ https://www.fhwa.dot.gov/ipd/p3/toolkit/usdot/sep15/implementation_procedure/ are involved in delivering the project. This section should also describe efforts to collaborate among stakeholders, including with the private sector.

Applications for projects involving other Federal agencies, or requiring action from other Federal agencies, should demonstrate commitment and involvement of those agencies. For example, projects involving border infrastructure should demonstrate evidence of concurrent investment from U.S. Customs and Border Patrol, U.S.

Department of State, and other relevant Federal agencies; relevant port projects should demonstrate alignment with U.S. Army Corps of Engineers investment strategies.

v. Environmental Risk

This section of the application should include sufficient information for DOT to evaluate whether the project is reasonably expected to begin construction in a timely manner. To assist DOT’s project environmental risk review, the applicant should provide the information requested on project schedule, required approvals and permits, NEPA, risk and mitigation strategies, each of which is described in greater detail in the following sections. Applicants are not required to follow the specific format described here, but this organization, which addresses each relevant aspect of environmental risk, promotes a clear discussion that assists project evaluators. To minimize redundant information in the application, DOT encourages applicants to cross-reference from this section of their application to relevant substantive information in other sections of the application.

The guidance here is about what information applicants should provide and how the applicant should organize their application. Guidance describing how DOT will evaluate environmental risk is described in Section E.1.ii of this notice. Applicants should review that section when considering how to organize their application.

(a) Project Schedule

The applicant should include a detailed project schedule that identifies all major project milestones. Examples of such milestones include State and local planning approvals (e.g., programming on the Statewide Transportation

Improvement Program); start and completion of NEPA and other Federal environmental reviews and approvals including permitting; design completion; right of way acquisition; approval of plans, specifications and estimates; procurement; State and local approvals; project partnership and implementation agreements, including agreements with railroads; and construction. The project schedule should be sufficiently detailed to demonstrate that:

(1.) all necessary activities will be complete to allow BUILD Transportation grant funds to be obligated sufficiently in advance of the statutory deadline (September 30, 2022 for FY 2020 funds), and that any unexpected delays will not put the funds at risk of expiring before they are obligated;

(2.) the project can begin construction quickly upon obligation of grant funds and that those funds will be spent expeditiously once construction starts, with all funds expended by September 30, 2027; and

(3.) all real property and right-of-way acquisition will be completed in a timely manner in accordance with 49 CFR part 24, 23 CFR part 710, and other applicable legal requirements or a statement that no acquisition is necessary.

(b) Required Approvals

1. Environmental Permits and Reviews. The application should demonstrate receipt (or reasonably anticipated receipt) of all environmental approvals and permits necessary for the project to proceed to construction on the timeline specified in the project schedule and necessary to meet the statutory obligation deadline, including satisfaction of all Federal, State and local requirements and completion of the NEPA process. Specifically, the application should include:

i. Information about the NEPA status of the project. If the NEPA process is complete, an applicant should indicate the date of completion, and provide a website link or other reference to the final

Categorical Exclusion, Finding of No Significant Impact, Record of

Decision, and any other NEPA documents prepared. If the NEPA process is underway, but not complete, the application should detail the type of NEPA review underway, where the project is in the process, and indicate the anticipated date of completion of all milestones and of the final NEPA determination. If the last agency action with respect to NEPA documents occurred more than three years before the application date, the applicant should describe why the project has been delayed and include a proposed approach for verifying and, if necessary, updating this material in accordance with applicable NEPA requirements.

ii. Information on reviews, approvals, and permits by other agencies.

An application should indicate whether the proposed project requires reviews or approval actions by other agencies,9 indicate the status of such actions, and provide detailed information about the status of those reviews or approvals and should demonstrate compliance with any other applicable Federal, State or local requirements, and when such approvals are expected. Applicants should provide a website link or other reference to copies of any reviews, approvals, and permits prepared.

iii. Environmental studies or other documents, preferably through a website link, that describe in detail known project impacts, and possible mitigation for those impacts.

iv. A description of discussions with the appropriate DOT operating administration field or headquarters office regarding the project’s compliance with NEPA and other applicable Federal environmental reviews and approvals.

v. A description of public engagement about the project that has occurred, including details on the degree to which public comments and commitments have been integrated into project development and design.

2. State and Local Approvals. The applicant should demonstrate receipt of

State and local approvals on which the project depends, such as State and

9 Projects that may impact protected resources such as wetlands, species habitat, cultural or historic resources require review and approval by Federal and State agencies with jurisdiction over those resources.

local environmental and planning approvals and Statewide Transportation

Improvement Program (STIP) or (Transportation Improvement Program)

TIP funding. For projects acquiring State DOT-owned right of way, applicants should demonstrate they have coordinated the project with the

State DOT or transportation facility owner. Additional support from relevant State and local officials is not required; however, an applicant should demonstrate that the project has broad public support.

3. Federal Transportation Requirements Affecting State and Local Planning.

The planning requirements applicable to the relevant operating administration apply to all BUILD Transportation grant projects,10 including intermodal projects located at airport facilities.11 Applicants should demonstrate that a project that is required to be included in the

10 Under 23 U.S.C. 134 and 135, all projects requiring an action by FHWA must be in the applicable plan and programming documents (e.g., metropolitan transportation plan, transportation improvement program (TIP) and statewide transportation improvement program (STIP)). Further, in air quality non-attainment and maintenance areas, all regionally significant projects, regardless of the funding source, must be included in the conforming metropolitan transportation plan and TIP. Inclusion in the STIP is required under certain circumstances. To the extent a project is required to be on a metropolitan transportation plan, TIP, and/or STIP, it will not receive a BUILD Transportation grant until it is included in such plans. Plans that do not currently include the awarded BUILD project can be amended by the State and MPO. Projects that are not required to be in long range transportation plans, STIPs, and TIPs will not need to be included in such plans in order to receive a BUILD Transportation grant. Port, freight rail, and intermodal projects are not required to be on the State Rail Plans called for in the Passenger Rail Investment and Improvement Act of 2008, or in a State Freight Plan as described in the FAST Act. However, applicants seeking funding for freight projects are encouraged to demonstrate that they have done sufficient planning to ensure that projects fit into a prioritized list of capital needs and are consistent with long-range goals. Means of demonstrating this consistency would include whether the project is in a TIP or a State Freight Plan that conforms to the requirements 49 U.S.C. 70202 prior to the start of construction. Port planning guidelines are available at StrongPorts.gov.

11 Projects at grant obligated airports must be compatible with the FAA-approved Airport Layout Plan, as well as aeronautical surfaces associated with the landing and takeoff of aircraft at the airport. Additionally, projects at an airport: must comply with established Sponsor Grant Assurances, including (but not limited

to) requirements for non-exclusive use facilities, consultation with users, consistency with local plans including development of the area surrounding the airport, and consideration of the interest of nearby communities, among others; and must not adversely affect the continued and unhindered access of passengers to the terminal.

relevant State, metropolitan, and local planning documents has been or will be included in such documents. If the project is not included in a relevant planning document at the time the application is submitted, the applicant should submit a statement from the appropriate planning agency that actions are underway to include the project in the relevant planning document. To the extent possible, freight projects should be included in a

State Freight Plan and supported by a State Freight Advisory Committee

(49 U.S.C. 70201, 70202), if these exist. Applicants should provide links or other documentation supporting this consideration. Because projects have different schedules, the construction start date for each BUILD

Transportation grant must be specified in the project-specific agreements signed by relevant operating administration and the grant recipients, based on critical path items that applicants identify in the application and will be consistent with relevant State and local plans.

(c) Assessment of Project Risks and Mitigation Strategies

Project risks, such as procurement delays, environmental uncertainties, increases in real estate acquisition costs, uncommitted local match, unavailability of vehicles that either comply with Federal Motor Vehicle

Safety Standards or are exempt from Federal Motor Vehicle Safety

Standards in a manner that allows for their legal acquisition and deployment, unavailability of domestically manufactured equipment, or lack of legislative approval, affect the likelihood of successful project start and completion. The applicant should identify all material risks to the project and the strategies that the lead applicant and any project partners have undertaken or will undertake in order to mitigate those risks. The applicant should assess the greatest risks to the project and identify how the project parties will mitigate those risks.

If an applicant anticipates pursuing a waiver for relevant domestic preference laws, the applicant should describe steps that have been or will be taken to maximize the use of domestic goods, products, and materials in constructing its project.

To the extent the applicant is unfamiliar with the Federal program, the applicant should contact the appropriate DOT operating administration field or headquarters offices, as found in contact information at www.transportation.gov/BUILDgrants, for information on the pre-requisite steps to obligate Federal funds in order to ensure that their project schedule is reasonable and that there are no risks of delays in satisfying Federal requirements.

BUILD Transportation planning grant applicants should describe their capacity to successfully implement the proposed activities in a timely manner.

vi. Benefit Cost Analysis

This section describes the recommended approach for the completion and submission of a benefit-cost analysis (BCA) as an appendix to the Project Narrative. The results of the analysis should be summarized in the Project Narrative directly, as described in Section D.2.

The appendix should provide present value estimates of a project’s benefits and costs relative to a no-build baseline. To calculate present values, applicants should apply a real discount rate (i.e., the discount rate net of the inflation rate) of 7 percent per year to the project’s streams of benefits and costs. The purpose of the BCA is to enable DOT to evaluate the project’s cost-effectiveness by estimating a benefit-cost ratio and calculating the magnitude of net benefits for the project.

The primary economic benefits from projects eligible for BUILD Transportation grants are likely to include savings in travel time costs, vehicle or terminal operating costs, and safety costs for both existing users of the improved facility and new users who may be attracted to it as a result of the project. Reduced damages from vehicle emissions and savings in maintenance costs to public agencies may also be quantified. Applicants may describe other categories of benefits in the BCA that are more difficult to quantify and value in economic terms, such as improving the reliability of travel times or improvements to the existing human and natural environments (such as increased connectivity, improved public health, storm water runoff mitigation, and noise reduction), while also providing numerical estimates of the magnitude and timing of each of these additional impacts wherever possible. Any benefits claimed for the project, both quantified and unquantified, should be clearly tied to the expected outcomes of the project.

The BCA should include the full costs of developing, constructing, operating, and maintaining the proposed project, as well as the expected timing or schedule for costs in each of these categories. The BCA may also consider the present discounted value of any remaining service life of the asset at the end of the analysis period. The costs and benefits that are compared in the BCA should also cover the same project scope.

The BCA should carefully document the assumptions and methodology used to produce the analysis, including a description of the baseline, the sources of data used to project the outcomes of the project, and the values of key input parameters. Applicants should provide all relevant files used for their BCA, including any spreadsheet files and technical memos describing the analysis (whether created in-house or by a contractor).

The spreadsheets and technical memos should present the calculations in sufficient detail and transparency to allow the analysis to be reproduced by DOT evaluators. Detailed guidance for estimating some types of quantitative benefits and costs, together with recommended economic values for converting them to dollar terms and discounting to their present values, are available in DOT’s guidance for conducting BCAs for projects seeking funding under the BUILD Transportation grant program (see www.transportation.gov/BUILDgrants/additional-guidance).

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

Each applicant must: 1) be registered in SAM before submitting its application; 2) provide a valid unique entity identifier in its application; and 3) 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.