FY 23 RCN NOFO Amendment #1 - Redlined.pdf

DEPARTMENT OF TRANSPORTATION

Office of the Secretary of Transportation

Notice of Funding Opportunity for the Reconnecting Communities and Neighborhoods (RCN) Program

AGENCY: Office of the Secretary of Transportation, U.S. Department of Transportation (DOT)

ACTION: Notice of Funding Opportunity (NOFO), Assistance Listing #20.940 and #20.205

SUMMARY: The purpose of this notice is to solicit applications for two programs: the Reconnecting Communities Pilot (RCP) Program and the Neighborhood Access and Equity (NAE) Program, referred to jointly as the Reconnecting Communities and Neighborhoods (RCN) Program. While applicants may choose to apply for only one grant program, this combined solicitation will allow applicants to apply for both funding opportunities by submitting one application. It also aims to better enable the Department to proactively assist project sponsors in matching projects with the most appropriate grant program(s) and facilitating individual projects in potentially receiving funding from multiple grant programs. Applicants are encouraged to submit applications that meet the statutory requirements for both programs to maximize their potential for receiving Federal support. Funds for the Fiscal Year (FY) 2023 RCN Program will be awarded on a competitive basis for projects that advance community-centered connection transportation projects, with a priority for projects that benefit disadvantaged communities, by improving access to daily needs such as jobs, education, health care, food, nature and recreation;

fostering equitable development and restoration; and reconnecting communities by removing, retrofitting, or mitigating highways or other transportation facilities that create barriers to community connectivity, including to mobility, access, or economic development.

DATES: Applications must be submitted by 11:59 PM EDT on Thursday, September 28, 2023. Late applications will not be accepted.

ADDRESSES: Applications must be submitted via Valid Eval, an online proposal submission system used by USDOT, at https://usg.valideval.com/teams/rcn_planning/signup for Community Planning Grants and Regional Partnerships Challenge Grants with planning activities, and at https://usg.valideval.com/teams/rcn_captialconstruction/signup for Capital Construction Grants and Regional Partnerships Challenge Grants with construction activities. Customer support for Valid Eval can be reached at support@valideval.com. Only applicants who comply with all submission requirements described in this notice and submit applications through Valid Eval on or before the application deadline will be eligible for award.

FOR FURTHER INFORMATION:

Ongoing updates, webinar notices, FAQs: https://www.transportation.gov/grants/rcnprogram.

Email: ReconnectingCommunities@dot.gov Contacts:

• RCN Program: Andrew Emanuele at andrew.emanuele@dot.gov and Tameka Macon- Ryan at tameka.maconryan@dot.gov https://usg.valideval.com/teams/rcn_planning/signup https://usg.valideval.com/teams/rcn_captialconstruction/signup mailto:support@valideval.com https://www.transportation.gov/grants/rcnprogram mailto:ReconnectingCommunities@dot.gov mailto:andrew.emanuele@dot.gov mailto:tameka.maconryan@dot.gov

TABLE OF CONTENTS: Each section of this notice contains information and instructions relevant to the application process for the RCN Program. All prospective applicants should read this notice in its entirety to understand how to submit eligible and competitive applications.

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

A. Program Description

1. Overview

The purposes of the RCN Program are 1) to advance community-centered transportation connection projects, with a priority for projects that benefit disadvantaged communities (See Section H.1. Definitions), that improve access to daily needs such as jobs, education, healthcare, food, nature, and recreation, and foster equitable development and restoration, and 2) to provide technical assistance to further these goals.

The RCP Program provides technical assistance and grant funding for planning and capital construction to address infrastructure barriers, restore community connectivity, and improve people’s lives.

The NAE Program provides technical assistance and grant funding to improve walkability, safety, and affordable transportation access through context-sensitive strategies for improving community connectivity; mitigating or remediating negative impacts on the human or natural environment; and assisting economically disadvantaged or underserved communities with planning and capacity building activities.

The RCN Program welcomes applications from eligible applicants from diverse local, Tribal, and regional communities regardless of size, location, and experience administering Federal funding awards.

To help streamline the process for applicants, the Department has combined the RCP and NAE Program applications into the RCN Program. The FY 2023 RCN Program awards will be made for each grant program as appropriate and consistent with each grant program’s statutory requirements. Applicants are encouraged to submit applications that meet the statutory requirements for both programs to maximize their potential for receiving Federal support. If you submit an application that only meets statutory requirements for one program, you will only be considered for that program. As long as they meet the statutory requirements, applicants for the RCN Program will be considered across both programs unless they opt out from consideration for one of the programs.

The total amount of funding available in this NOFO for FY 2023 is $3.353 billion.12 If additional funds are made available prior to RCN award selections, those funds may be allocated to eligible projects. The FY 2023 funding will be implemented in alignment with the priorities in Executive Order 14052, Implementation of the Infrastructure Investment and Jobs Act (86 FR 64355),3 and Executive Order 14802 Implementation of the Energy and Infrastructure Provisions of the Inflation Reduction Act (IRA) of 2022.4 The Department reserves the right to expend additional NAE funds across grant types based on application volume.

2. RCN Program Grant Types and Deliverables

The RCN Program provides funding for three types of grants.: Community Planning Grants, Capital Construction Grants, and Regional Partnerships Challenge Grants. If eligible, awarded applications may receive funding from one or both funding programs, RCP and NAE.

• Community Planning Grants will award RCP and/or NAE funding for planning activities for future construction projects and allow for innovative community planning to address localized transportation challenges.

• Capital Construction Grants will award RCP and/or NAE funding to carry out a project to remove, retrofit, mitigate, or replace an existing eligible dividing transportation facility with a new facility that reconnects communities; mitigates a burdening transportation facility that is a source of air pollution, noise, stormwater, heat, or other burdens; or implements a strategy to reduce environmental harm and/or improve access through transportation improvements.

• Regional Partnerships Challenge Grants will award NAE funding to a project led by two or more eligible applicants to address a persistent regional challenge related to equitable access and mobility. Eligible activities for Regional Partnerships Challenge Grants are the same as those listed under Capital Construction and Community Planning Grants but

1 Sections 11101(d)(3) and 11509 of Division A of the Infrastructure Investment and Jobs Act (Pub. L. 117-58, November 15, 2021, “Bipartisan Infrastructure Law,” or “BIL”) authorized a total of $500 million of contract authority from the Highway Trust Fund to be awarded by the DOT for the FY 2022-2026 RCP Program. Title VIII, Division J appropriated an additional $500 million from the General Fund to be awarded by the DOT for the FY 2022-2026 RCP Program. Of the total amount of the FY 2023 RCP funding available in this notice, $98 million is authorized contract authority from the Highway Trust Fund (HTF) and $100 million is appropriations from the General Fund (GF). Due to the imposition of the obligation limitation on the HTF, approximately $86 million is available for award. Due to the Federal Highway Administration’s 1.5% administrative take-down from GF funds, $98.5 million is available for award. Section 60501 of the Inflation Reduction Act (Pub. L. 117-169, August 16, 2022, “Inflation Reduction Act” or IRA) authorized a total of $3.155 billion to be awarded by the FHWA for the FY 2023-2024 NAE Program.

2 DOT reserves the right to distribute NAE funds in FY23 and FY24.

3 The priorities of Executive Order 14052, Implementation of the Infrastructure Investments and Jobs Act are: to invest efficiently and equitably, promote the competitiveness of the U.S. economy, improve job opportunities by focusing on high labor standards and equal employment opportunity, strengthen infrastructure resilience to hazards including climate change, and to effectively coordinate with State, local, Tribal, and territorial government partners.

4 The priorities of Executive Order 14802, Implementation of the Energy and Infrastructure Provisions of the Inflation Reduction Act are: to invest efficiently and efficiently, achieve the climate goals of the United States to reduce greenhouse gas emissions, advance environmental and climate justice, promote construction of clean energy generation, storage, and transmission, promote the competitiveness of the U.S. economy, improve job opportunities by focusing on high labor standards, reduce energy costs while increasing energy security, accelerate innovation in clean energy and climate technologies, and to effectively coordinate with State, local, Tribal, and territorial government partners, as well as private-sector stakeholders and nongovernmental organizations.

must have a regional focus, and clearly demonstrate regional coordination and leveraging of local, State, and Federal resources and policies. See Section C for further eligibility information.

3. RCN Program Grant Priorities and Policy Priorities

The RCN Program aligns with the Biden-Harris Administration policies and priorities, including the DOT Strategic Plan goals of Safety, Economic Strength, Equity, Climate and Sustainability, Transformation, and Organizational Excellence.5

A cornerstone of the RCN Program is DOT’s Equity Strategic Goal to reduce inequities across our transportation systems and the communities they affect. The RCN Program seeks to redress the legacy of harm caused by transportation infrastructure, including barriers to opportunity, displacement, damage to the human and natural environment and public health, including air pollution and greenhouse gas emissions, limited access to green and blue spaces, and other hardships. In pursuit of this goal, the RCN Program will support and engage economically disadvantaged communities to increase affordable, accessible, and multimodal access to daily destinations like jobs, healthcare, grocery stores, schools, places of worship, recreation, and park space.

Thus, the program will be implemented consistent with the policy goals highlighted in DOT Equity Action Plan6; Executive Order 14091, Further Advancing Racial Equity and Support for Underserved Communities Through the Federal Government; Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations;

Executive Order 14008, Tackling the Climate Crisis at Home and Abroad; Interim Implementation Guidance for the Justice40 Initiative (July 2021) and Addendum (January 2023);

Executive Order 14096, Revitalizing Our Nation’s Commitment to Environmental Justice for All, the America the Beautiful initiative, the Interagency Memorandum of Understanding on Promoting Equitable Access to Nature in Nature-Deprived Communities signed by DOT7; and these additional equity-related objectives:

• Housing Supply: DOT intends to further the goals of the White House Housing Supply Action Plan8 by evaluating community policies that encourage an increase in housing supply via zoning reform to reduce regional displacement pressures.

• Rural and Tribal Communities: Consistent with DOT’s Rural Opportunities to Use Transportation for Economic Success (ROUTES) initiative, DOT seeks to award funding to rural and tribal communities that face unique challenges related to mobility and economic development, including isolation, transportation cost burden, and traffic safety.

In addition to Equity, DOT will also promote the following DOT Strategic Plan priorities in evaluating applications and RCN Program implementation:

5 https://www.transportation.gov/mission/us-dot-strategic-plan-fy-2022-2026 6 https://www.transportation.gov/priorities/equity/actionplan 7 https://www.whitehouse.gov/ceq/news-updates/2022/09/23/fact-sheet-biden-%e2%81%a0harris-administration-advances-commitment-to-create-more-equitable-access-to-parks-and-nature-in-communities/ 8 https://www.whitehouse.gov/briefing-room/statements-releases/2022/05/16/president-biden-announces-new-actions-to-ease-the-burden-of-housing-costs/ https://www.transportation.gov/mission/us-dot-strategic-plan-fy-2022-2026 https://www.transportation.gov/priorities/equity/actionplan https://www.whitehouse.gov/ceq/news-updates/2022/09/23/fact-sheet-biden-%e2%81%a0harris-administration-advances-commitment-to-create-more-equitable-access-to-parks-and-nature-in-communities/ https://www.whitehouse.gov/ceq/news-updates/2022/09/23/fact-sheet-biden-%e2%81%a0harris-administration-advances-commitment-to-create-more-equitable-access-to-parks-and-nature-in-communities/ https://www.whitehouse.gov/briefing-room/statements-releases/2022/05/16/president-biden-announces-new-actions-to-ease-the-burden-of-housing-costs/ https://www.whitehouse.gov/briefing-room/statements-releases/2022/05/16/president-biden-announces-new-actions-to-ease-the-burden-of-housing-costs/

• Safety: The Department is committed to advancing safe, efficient transportation, including through the RCN Program. The National Roadway Safety Strategy (NRSS), issued January 27, 2022, commits the Department to respond to the current crisis in roadway fatalities by “taking substantial, comprehensive action to significantly reduce serious and fatal injuries on the Nation’s roadways,” particularly for vulnerable road users, in pursuit of the goal of achieving zero roadway deaths through a Safe System Approach.9 The outcomes that are anticipated from the projects funded by the RCN Program should align with the NRSS.

• Climate and Sustainability: The Department seeks to fund projects under the RCN Program that reduce greenhouse gas emissions in the transportation sector, include climate-friendly forms of transportation, incorporate evidence-based climate resilience measures and features, reduce the lifecycle greenhouse gas emissions from the project materials, improve environmental conditions or at least avoid adverse environmental impacts to air or water quality, wetlands, and endangered species, and address the disproportionate negative environmental impacts of transportation on disadvantaged communities, consistent with Executive Order 14008, Tackling the Climate Crisis at Home and Abroad (86 FR 7619).10

• Equity and Justice40: The Department seeks to award projects under the RCN Program that will create proportional impacts to all populations in a project area, remove transportation related disparities to all populations in a project area, and increase equitable access to project benefits, consistent with Executive Order 13985, Advancing Racial Equity and Support for Underserved Communities Through the Federal Government (86 FR 7009). The Department also seeks to award projects that address equity and environmental justice, particularly for communities that have experienced decades of underinvestment and are most impacted by climate change, pollution, and environmental hazards, consistent with Executive Order 14008, Tackling the Climate Crisis at Home and Abroad (86 FR 7619).11

• Workforce Development, Job Quality, and Wealth Creation: The Department intends to use the RCN Program to support the creation of good-paying jobs with the free and fair choice to join a union and the incorporation of strong labor standards and training and placement programs, especially registered apprenticeships, in project planning stages, consistent with Executive Order 14025, Worker Organizing and Empowerment (86 FR 22829), and Executive Order 14052, Implementation of the Infrastructure Investment and Jobs Act (86 FR 64335). The Department also intends to use the RCN Program to support wealth creation, consistent with the Department’s Equity Action Plan through the inclusion of Local inclusive economic development and entrepreneurship such as the utilization of Disadvantaged Business Enterprises, Minority-owned Businesses, Women-owned Businesses, or 8(a) firms.

9 https://www.transportation.gov/NRSS 10 See U.S. Department of Transportation Strategic Framework FY 2022–2026 (Dec. 2021) at https://www.transportation.gov/administrations/office-policy/fy2022-2026-strategic-framework 11 Established by Executive Order 14008, the Justice40 Initiative set the goal that 40 percent of the overall benefits from certain federal investments in climate, and clean energy and other areas, flow to disadvantaged communities and improve communities’ quality of life, environment, and health. Both RCP and NAE programs advance the Justice40 Initiative.

https://www.transportation.gov/NRSS https://www.transportation.gov/administrations/office-policy/fy2022-2026-strategic-framework

• Transformation: The program will advance innovative solutions to reconnecting communities through technical assistance, applicants’ research and study of communities divided by infrastructure, and program evaluation that will assess the outcomes of the pilot.

• Thriving Communities: DOT will also consider whether the applicant is participating in a federal technical assistance program as part of the Thriving Communities Network, which includes DOT’s Thriving Communities Program and Regional Infrastructure Accelerator Program, the Department of Housing and Urban Development’s Thriving Communities Technical Assistance, DOE-Energy Communities, USDA’s Rural Partner Network, and the Government Service Administration’s Land Port of Entry communities.

Federal Interagency Thriving Communities Network | US Department of Transportation

See Section E.1.i for more detail on merit criteria that implement priorities outlined above.

4. Technical Assistance

DOT will provide technical assistance for grantees and potential grantees under the RCN Program, including through the forthcoming Reconnecting Communities Institute (RCI)12 launching later in 2023.

5. Changes from the FY 2022 RCP NOFO

The RCP Program’s inaugural year occurred in FY 2022 after its creation in the Bipartisan Infrastructure Law (BIL), while NAE is a new program created by the Inflation Reduction Act (IRA). Applicants planning to reapply using materials prepared for the FY 2022 RCP Program should ensure that their FY 2023 application fully addresses the criteria and considerations described in this notice and that all relevant information is up to date.

Applications are submitted through Valid Eval instead of Grants.gov. The application structure for the key information table questions and other application submission details has been standardized through Valid Eval.

The FY 2023 RCN Program includes an updated definition of an economically disadvantaged community, with applicants encouraged to use Climate & Economic Justice Screening Tool (CEJST),13 a tool created by the White House Council on Environmental Quality, that helps Federal agencies identify disadvantaged communities as part of the Justice40 initiative to accomplish the goal that 40% of overall benefits from certain federal investment flow to disadvantaged communities. Applicants should use CEJST as the primary tool to identify disadvantaged communities (Justice40 communities). Applicants are strongly encouraged to use

12 The mission of the RCI will be to serve as DOT’s center for learning to restore and reconnect communities that have been harmed, isolated, and cut off from opportunity by transportation infrastructure. Enrollment into the RCI will be open to States, local and tribal governments, metropolitan planning organizations, and nonprofit organizations. For more information about the RCI, please visit https://www.transportation.gov/grants/reconnecting-communities/reconnecting-communities-institute-rci 13 https://screeningtool.geoplatform.gov/en/#3/33.47/-97.5 https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.transportation.gov%2Ffederal-interagency-thriving-communities-network&data=05%7C01%7Candrew.emanuele%40dot.gov%7Cd8d28382d1f042838dd108db8c5b9a75%7Cc4cd245b44f04395a1aa3848d258f78b%7C0%7C0%7C638258097294778918%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=aUNLxNSS1TVN1bHP1k11m1G%2BwqTbUMjxZWATOnvVMp4%3D&reserved=0 https://gcc02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.transportation.gov%2Ffederal-interagency-thriving-communities-network&data=05%7C01%7Candrew.emanuele%40dot.gov%7Cd8d28382d1f042838dd108db8c5b9a75%7Cc4cd245b44f04395a1aa3848d258f78b%7C0%7C0%7C638258097294778918%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=aUNLxNSS1TVN1bHP1k11m1G%2BwqTbUMjxZWATOnvVMp4%3D&reserved=0 https://www.transportation.gov/grants/reconnecting-communities/reconnecting-communities-institute-rci https://www.transportation.gov/grants/reconnecting-communities/reconnecting-communities-institute-rci https://screeningtool.geoplatform.gov/en/#3/33.47/-97.5 the USDOT Equitable Transportation Community (ETC) Explorer to understand how their community or project area is experiencing disadvantage related to lack of transportation investments or opportunities. Through understanding how a community or project area is experiencing transportation-related disadvantage, applicants are able to address how the benefits of a project will reverse or mitigate the burdens of disadvantage and demonstrate how the project will address challenges and accrued benefits. See Section H.1. Definitions for more information.

The FY 2023 RCN Program uses the term Community Planning Grants instead of Planning

Grants, as in the FY 2022 RCP Program.

The FY 2023 RCN Program will be evaluated under common project outcome criteria (formally labeled in FY 2022 as “merit criteria”) that apply to both the RCP Program and NAE Program within the RCN Program, as described in Section E. The common project outcome criteria retain similar concepts from the FY 2022 RCP merit criteria but are separated into more specific criteria and include additional considerations from the NAE Program. See Section E for more information.

6. Additional Information

This common application process will result in grants being awarded under two funding programs. The RCP Program is authorized at Section 11509 of the BIL. The NAE Program is authorized at 23 U.S.C. § 177. They are described respectively in the Federal Assistance Listings under the Assistance Listings #20.940, Reconnecting Communities Pilot (RCP) Discretionary Grant Program, and #20.205, Highway Planning and Construction.

The Department is committed to holistically considering project funding decisions among the various discretionary grant programs in BIL and IRA. The Department also recognizes that applicants may seek funding from multiple discretionary grant programs and opportunities. An applicant may seek the same award amounts from multiple Department discretionary opportunities or a combination of funding from multiple Department opportunities. The applicant should identify and describe any other Department programs and opportunities they intend to apply for (or utilize if the Federal funding is already available to the applicant) and what award amounts they will be seeking in the appropriate sections.

B. Federal Award Information

1. Total Funding Available

In FY 2023, BIL allocates up to $198 million for the RCP Program. It allocates $50 million for Community Planning Grants, including funding for technical assistance, and $148 million for Capital Construction Grants. The IRA allocates $3.155 billion for the NAE Program, of which the Department expects to award up to $135 million to Community Planning Grants, up to $2.57 billion to Capital Construction Grants, and up to $450 million to Regional Partnerships Challenge Grants, but the final allocation will depend upon applications received. Of the NAE Program funds, at least 40%, or up to $1.262 billion, will be distributed to economically disadvantaged communities (See Section H.1. Definitions). DOT reserves the right to award NAE funding in future fiscal years.

In total, for the RCN Program, the Department expects to award up to $188 million to Community Planning Grants, $2.718 billion to Capital Construction Grants, and $450 million to Regional Partnerships Challenge Grants. RCP and NAE each have their own specific funding restrictions, including award size, matching requirements, and types of projects. See Section C – Eligibility Information. If additional funds are made available prior to RCN award selections, those funds may be allocated to eligible projects.

DOT understands that the amount allocated for Capital Construction Grants in FY 2023 may not cover the recipient’s full request. If a Capital Construction Grant recipient does not receive the full funds requested, the funded project will receive a ‘RCN Program Extra’ designation. If a project designated ‘RCN Program Extra’ applies for funding under the FY 2024 – FY 2026 Rebuilding American Infrastructure with Sustainability and Equity (RAISE) or Multimodal Projects Discretionary Grant (MPDG) programs and is determined eligible, DOT will deem the RCN Program project application ‘Highly Recommended’ subject to evaluation with the relevant program’s merit criteria. The Department will still consider the project’s alignment with the relevant program’s requirements and any project risks before making any award to that project.

Projects with this designation that apply for DOT financing programs, such as the Transportation Infrastructure Finance and Innovation Act (TIFIA) program and Railroad Rehabilitation and Improvement Financing (RRIF) program, will be considered for assistance to the extent permissible under law.

2. Availability of Funds

RCP Program grant funds are available until expended. NAE funds are available to be obligated until September 30, 2026. However, to ensure that projects are started and completed efficiently, DOT encourages all projects awarded with FY 2023 RCN Program funds to be obligated by the same date of September 30, 2026. DOT retains the right to prioritize projects for selection that are most likely to achieve this timeline and choose from which source to award funds to recipients, as applicable.

Obligation occurs when a selected applicant and DOT enter into a written grant agreement after the applicant has satisfied applicable administrative requirements. Unless authorized by DOT in writing after DOT’s announcement of the FY 2023 RCN Program, any costs incurred prior to DOT’s obligation of funds for a project (“pre-award costs”) are ineligible for reimbursement per 23 CFR 1.9.14 In order to meet this timeline, DOT will prioritize project readiness and the likelihood that obligation can occur by this deadline when making project selections.

In general, RCN Program funds are administered on a reimbursement basis. Grant recipients will generally be required to pay project costs upfront using their own funds, and then request reimbursement for those costs through billings. If a recipient cannot complete a project on a

14 Pre-award costs are only costs incurred directly pursuant to the negotiation and anticipation of the RCP Program and/or NAE 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 the DOT announces that a project is selected for a FY 2023 RCP Program and/or NAE Program award cannot be charged to FY 2023 RCP and/or NAE 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 2023 RCP Program and/or NAE Program award, cannot be charged to FY 2023 RCP Program and/or NAE Program funds.

reimbursement basis, DOT will—on a case-by-case basis—consider recipient requests to use alternate payment methods as described in 2 CFR 200.305(b), including advance payments and working capital advances.

DOT will pay for or count toward mandatory cost sharing only costs incurred after a grant agreement has been executed. At its sole discretion and in limited circumstances, DOT may establish “pre-award” authority for recipients. If approved by DOT, pre-award authority permits DOT, after a grant agreement is executed, to pay for or count toward mandatory cost sharing specific, identified costs that were incurred before that grant agreement was executed.

Because award recipients under the RCN Program may be first-time recipients of Federal funding, DOT is committed to implementing the program as flexibly as permitted by statute and providing assistance to help award recipients through the process of securing a grant agreement and delivering projects.

3. Award Size

i. Community Planning Grants

In FY 2023, DOT may award up to $50 million of RCP funds and $135 million of NAE funds for eligible public engagement, feasibility studies, and other planning activities described in Section C. Eligibility Information. BIL specifies that the maximum Community Planning Grant award funded with RCP funds is $2 million. There is no maximum award amount for a Community Planning Grant award funded with NAE funds.

ii. Capital Construction Grants

In FY 2023, DOT may award up to $148 million of RCP funds and $2.57 billion of NAE funds for eligible construction activities described in Section C. Eligibility Information. BIL specifies that the minimum Capital Construction Grant award funded with RCP funds is $5 million. There is no minimum award amount for a Capital Construction Grant award funded with NAE funds. If a project is partially funded, project components executed through the RCN Program must demonstrate independent utility.

iii. NAE Regional Partnerships Challenge Grants

In FY 2023, DOT may award up to $450 million of NAE funds to support regional collaboration and innovation on the eligible activities under Community Planning or Capital Construction Grants. DOT anticipates awarding three to five Regional Partnerships Challenge Grants.

4. Type of Award

State DOT Applicant

If the successful applicant is a State Department of Transportation (State DOT), RCN funds will be awarded upon the execution of a project agreement which is a type of grant agreement for administration of funds to a State DOT in Fiscal Management System (FMIS).

Non-State DOT Applicant

If the successful applicant is a non-State DOT, RCN funds may be awarded under one of two options:

(1) RCN funds will be awarded upon the execution of a grant agreement with the FHWA.

The non-State DOT is the recipient of the grant funds and will be responsible for ensuring the project is delivered in accordance with all applicable Federal requirements and terms and conditions of the grant award. Under this option, the non-State DOT recipient may enter into a contractual agreement with a State DOT for assistance with project activities (such as drafting solicitations for consultant services, drafting request for proposals for physical construction, construction management) that comply with the applicable procurement standards (see 2 CFR

200.318 through 200.327). In this relationship, the non-State DOT recipient would reimburse the State DOT for eligible project activities as outlined in their contractual agreement. The Federal agency has no direct relationship with a contractor under a federal award. Management of contracts is the responsibility of the recipient.

(2) At the request of the applicant selected to receive a RCN grant, and with the concurrence of the applicable State DOT, a determination may be made that the State DOT may be designated as the recipient of the grant funds.15 The designation will be made at the time of the grant award and funds will be obligated to the project upon the execution of a project agreement in FMIS. The State DOT would be reimbursed through FMIS for any direct costs as well as any indirect costs if the State has an FHWA approved indirect cost rate.

C. Eligibility Information

1. Eligible Applicants

RCP and NAE have different statutory rules for determining applicant eligibility. Applicants should review this section to determine their grant type eligibility.

Eligible Applicants

RCP – Community Planning Grants

RCP – Capital Construction Grants

NAE – Community Planning, Capital

Construction, and Regional Partnerships Challenge

Grants16

1. a State;

2. a unit of local government;

3. a Tribal government;

1. owner(s) of the eligible facility proposed in the project for which adequate planning

1. a State or territory of the United States;

2. a unit of local government;

15 The non-State DOT recipient and the State DOT designated subrecipient may enter into a separate agreement, to which the FHWA is not a party, assigning responsibilities, administrative and oversight responsibilities, and to satisfy the requirements under 2 CFR 200.332.

16 NAE Regional Partnerships Challenge Grants must be a partnership between two or more of the eligible applicants listed in this column.

4. a Metropolitan Planning Organization; or

5. a non-profit organization.

activities such as public involvement, user data evaluation, and conceptual design have been completed; or

2. a partnership between a facility owner (#1 above) and any eligible RCP Community Planning Grant applicant.

3. a political subdivision of a State;

4. a Tribal government;

5. a special purpose district or public authority with a transportation function;

6. a Metropolitan Planning Organization; or

7. a nonprofit organization or institution of higher education that has entered into a partnership with an eligible entity (#1-6 above) and is applying for a grant for planning and capacity building activities in disadvantaged or underserved communities.17

For NAE, all eligible applicants are listed above in #1-7; however, DOT encourages for Community Planning Grants and Regional Partnerships Challenge Grants with planning activities, and requires for Capital Construction Grants and Regional Partnerships Challenge Grants with construction activities, that all lead applicants be the owner of the facility proposed in the project or, if the lead applicant is another eligible entity, to demonstrate a partnership with the Facility Owner.

17 Regional councils and councils of governments that are organized as non-profit organizations, units of local government, or metropolitan planning organizations, are eligible applicants. DOT encourages regional council or council of government applicants to include in their application documentation showing how they are established under relevant State law.

The designated lead applicant will serve as the recipient to administer and implement the project. If the applicant seeks to transfer the award to another entity, that intention should be made clear in the application and a letter of support from the otherwise eligible, designated entity should be included in the application.

Applicants without experience in DOT funding requirements may opt to jointly apply with a partner in the same State or region that has an established financial relationship with DOT and knowledge of Federal grant administration requirements to minimize delays in establishing and implementing funding agreements. For joint application partners that would also receive grant funds through the recipient (lead applicant), or if the recipient seeks to transfer the award to another agency, the recipient must determine whether such an arrangement would be contractual (for example, with philanthropic or community-based organizations), or if the partners would be treated as a sub-recipient (for example, with other governmental entities). Ultimately, the recipient is responsible for compliance with all Federal requirements applicable to the award.

2. Cost Sharing and Matching

i. Match Requirements

Matching funds may include non-Federal sources such as:

• State funds originating from programs funded by State revenue,

• Local funds originating from State or local revenue-funded programs,

• Philanthropic funds, or

• Private funds

Grant recipients may also use in-kind contributions toward local match requirements so long as those contributions meet the federal legal requirements. In-kind contributions may include compensation for community members’ time, materials, pro bono work provided to the project by third parties, and donations from private sponsors.18

ii. Federal Share

Eligible Applicants

RCP – Community Planning Grants

RCP –Capital Construction Grants

NAE – Community Planning, Capital

Construction, and Regional Partnerships Challenge

Grants

80% RCP funds

20% local match

50% RCP funds

50% local match

80% NAE funds

20% local match

18 Any in-kind contributions used to fulfill the cost-share requirement for Community Planning Grants, Capital Construction Grants, and Regional Partnerships Challenge Grants must: be in accordance the cost principles in 2 CFR Part 200, Subpart E; including 2 CFR § 200.306(b) Cost Sharing or Matching; include documented evidence of completion within the period of performance; and support the execution of the eligible activities in Section C.3. See 23 CFR § 710.505 for requirements related to the donation of real property.

Other Federal funds may be used to bring the total Federal share up to a maximum of 80% of the total cost of the project

Projects in a disadvantaged or underserved community do not require a local match (see Section H.1. Definitions)

a) RCP – Community Planning Grants Federal Share

Community Planning Grants funded with RCP funds may not exceed 80 percent of the total cost of the project for which the grant is awarded. Recipients are required to contribute a local matching share of no less than 20 percent of eligible activity costs. As noted above, the local matching share may consist partially or entirely of in-kind contributions as well as contributions from the private sector and/or philanthropic organizations.

b) RCP – Capital Construction Grants Federal Share

Capital Construction Grants funded with RCP funds may not exceed 50 percent of the total cost of the project for which the grant is awarded. Federal assistance other than the RCN Program award (such as DOT formula funds, Tribal Transportation Program funds, or other Federal grants) may be used to partially satisfy the match requirement so long as total Federal assistance (all Federal sources) does not exceed 80 percent of the total cost of the project.

Recipients are required to contribute a local matching share of no less than 20 percent of eligible activity costs. As noted above, the local matching share may consist partially or entirely of in-kind contributions as well as contributions from the private sector and/or philanthropic organizations.

c) NAE Community Planning, Capital Construction, and Regional Partnerships Challenge Grants Federal Share

NAE grants under the three grant types may not exceed 80 percent of the total cost of the project for which the grant is awarded, except in a disadvantaged or underserved community as noted below. All other recipients are required to contribute a local matching share of no less than 20 percent of eligible activity costs. As noted above, the local matching share may consist partially or entirely of in-kind contributions as well as contributions from the private sector and/or philanthropic organizations.

NAE projects in a disadvantaged or underserved community do not require a non-Federal cost share. See Section H.1. Definitions for “economically disadvantaged community.”

3. Eligible Facilities, Activities, and Costs19

Each of the funding opportunities has slightly different statutory rules for eligible facilities and different eligible activities and costs. Applicants should review this section to determine which of the two programs they may be eligible for.

19 Eligible activity costs must comply with the cost principles set forth in with 2 CFR Subpart E (i.e., 2 CFR §

200.403 and § 200.405). DOT reserves the right to make cost eligibility determinations on a case-by-case basis.

i. Eligible Facilities

a) RCP Eligible Facilities – Community Planning and Capital Construction Grants

The proposed project must address an “eligible facility,” which is defined as a highway or other transportation facility that creates a barrier to community connectivity, including barriers to mobility, access, or economic development, due to high speeds, grade separations, or other design factors. Eligible facilities may include limited access highways, viaducts, any other principal arterial facilities, and other facilities such as transit lines, rail lines, gas pipelines, and airports. See Section H.1. Definitions for “highway” and Section D.2.ii. Key Information Questions for a suggested list of other facilities.

b) NAE Eligible Facilities – Community Planning, Capital Construction, and Regional Partnerships Challenge Grants

The proposed project may address one of two “eligible facilities”:

(1) A dividing facility: a surface transportation facility that creates an obstacle to community connectivity by high speeds, grade separation, or other design factors;

(2) A burdening facility: a surface transportation facility that is a source of air pollution, noise, stormwater, heat, or other burden to a disadvantaged or underserved community.

*** Please note: NAE activities are not limited to addressing the facilities listed under Section 3.i.(b). See below for additional information about NAE eligible activities.***

ii. Eligible Activities and Costs

Community Planning Grants

Both RCP and NAE NAE Only

Public engagement activities, including community visioning or other place-based strategies for public input into project plans.

Planning and capacity building activities in disadvantaged or underserved communities to:

• Identify, monitor, or assess local and ambient air quality, emissions of transportation greenhouse gases, hot spot areas of extreme heat or elevated air pollution, gaps in tree canopy coverage, or flood prone transportation infrastructure

Planning studies to assess the feasibility of removing, retrofitting, or mitigating an existing eligible dividing facility to reconnect communities, including assessments of:

• Current traffic patterns on the facility and the surrounding street network.

• Capacity of existing transportation networks to maintain mobility needs.

Planning studies to assess the feasibility of removing, retrofitting, or mitigating an existing eligible burdening or dividing facility, and predevelopment activities for eligible NAE Capital Construction projects.

• Alternative roadway designs or other uses for the right-of-way including green infrastructure or other nature-based solutions.

• The project’s anticipated impact on mobility of freight and people.

• The project’s anticipated impact on safety.

• The estimated cost to restore community connectivity and to convert the facility to a different design or use, compared to any expected maintenance or reconstruction costs.

• The project’s anticipated economic impact and development opportunities.

• The project’s anticipated environmental, public health, and community impacts.

Other planning activities in advance of the project, such as:

• Conceptual and preliminary engineering, or design and planning studies that support the environmental review for a construction project.

• Developing local anti-displacement policies and community benefit agreements.

• Associated needs such as locally-driven land use and zoning reform, transit-oriented development, housing supply, in particular location-efficient affordable housing, managing gentrification and neighborhood change, proposed project impact mitigation, green and open space, local history and culture, access and mobility barriers, jobs and workforce, or other necessary planning activities as put forth by the applicant that do not result in construction.

Assess transportation equity or pollution impacts.

Administer or obtain technical assistance related to other eligible planning activities listed above.

Capital Construction Grants

Both RCP and NAE NAE

Preliminary and detailed design activities and associated environmental studies;

predevelopment / preconstruction;

construction; permitting activities including the completion of the National Environmental Policy Act (NEPA) process for:

• The removal, retrofit, or mitigation of an eligible dividing facility;

• The replacement of an eligible dividing facility with a new facility that restores community connectivity;

or

• Delivering community benefits and environmental improvements or mitigation of impacts identified through the NEPA process or other planning and project development for the construction project.

Preliminary and detailed design activities and associated environmental studies;

predevelopment / preconstruction;

construction; permitting activities including the completion of the NEPA process for:

• The reuse of a burdening or dividing facility to improve walkability, safety, and affordable transportation access through projects that are context sensitive.

• Projects to mitigate or remediate negative impacts on the human or natural environment resulting from a burdening or dividing facility through:

o Noise barriers o Technologies, infrastructure, and activities to reduce surface transportation-related greenhouse gas emissions and other air pollution o Natural infrastructure, pervious, permeable, or porous pavement, or protective features to reduce or manage stormwater run-off resulting from a burdening facility described in subsection;

o Infrastructure and natural features to reduce or mitigate urban heat island hot spots in the transportation right-of-way or on surface transportation facilities; or o Safety improvements for vulnerable road users

• Building or improving complete streets, multiuse trails, regional greenways, or active transportation networks and spines.

• Providing affordable access to essential destinations, such as through transit, to public spaces, or transportation links and hubs.

Eligible projects for RCP Capital Construction Grants include those for which adequate planning activities such as public involvement, user data evaluation, and conceptual design have been completed. Projects must be consistent with the Long-Range Statewide Transportation Plan, included in the Metropolitan Long-Range Plan (if applicable), and in the Metropolitan Transportation Improvement Program (TIP) and/or Statewide Transportation Improvement Program (STIP), Tribal Transportation Improvement Program (TTIP) or equivalent, as applicable, prior to the obligation of the award. Transit projects must be included in the investment prioritization of the relevant Transit Asset Management (TAM) Plan by the time of the obligation of the award. For NAE Capital Construction Grants and Regional Partnerships Challenge Grants with construction activities, DOT encourages satisfying the requirements described in this paragraph to ensure that projects can be completed efficiently and by the obligation deadline.

Regional Partnerships Challenge Grant – NAE Only

Eligible activities may include those listed under Community Planning and Capital Construction Grants through partnerships of at least two entities from local governments/tribal governments, Metropolitan Planning Organizations, State DOTs, and non-profit, private, and community partners to tackle persistent, regional equitable access and mobility challenges.

Projects must address a regional challenge, such as (provided for example, not an exhaustive list) land use, zoning, and transportation challenges (such as jobs, housing, and transit access), extension of a transit line, traffic signal coordination, multi-jurisdictional trail construction, ADA compliance across a regional transit network, fare free bus pilot on a bus line spanning multiple cities, addressing transit deserts, data collection and sharing, study and/or elimination of transit deserts, transit-oriented development, Rural Main Street Revitalization, etc.

NAE funding shall not be used for a project for additional through travel lanes for single-occupant passenger vehicles.20

iii. Prohibited Use

Funds may not be used to support or oppose union organizing.

4. Data Collection Requirements

Performance indicators used in reporting (See Section F.3) should align with project goals for at least two of the merit criteria defined in Section E.1.i. DOT funds may be used for data collection and performance reporting and should be accounted for in the applicant’s budget.

DOT will work with grant recipients to determine the most appropriate indicators and metrics to assess project benefits before the grant agreement is established. Areas of measurement will relate to 1) mobility, 2) access, 3) safety, 4) human and environmental impacts, 5) congestion, 6) economic development, 7) quality of life, and 8) community engagement. Indicators may

20 23 USC 177(h)(2) document changes from an established baseline such as: new…