FY22 Multimodal Project Discretionary Grant - NOFO_Amendment 1 .pdf

4910-9X

DEPARTMENT OF TRANSPORTATION

Office of the Secretary of Transportation

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

Project Discretionary Grant Opportunity

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

ACTION: Notice of Funding Opportunity (NOFO)

Multimodal Project Discretionary Grant Opportunity (MPDG)

SUMMARY: The purpose of this notice is to solicit applications for three funding opportunities:

the National Infrastructure Project Assistance grants program (Mega), the Nationally Significant

Multimodal Freight and Highways Projects grants program (INFRA), and the Rural Surface

Transportation Grant program (Rural). This notice is amended on May 18, 2022 to amend a clerical error in the “Eligible Project Types” table on page 15. While applicants can choose to apply for only one grant program, this combined solicitation will allow applicants to apply for two, or all three of these funding opportunities by submitting only 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 facilitate individual projects in potentially receiving funding from multiple grant programs. Funds for the INFRA, Mega, and Rural funding opportunities will be awarded on a competitive basis for surface transportation infrastructure projects – including highway and bridge, intercity passenger rail, railway-highway grade crossing or separation, wildlife crossing, public transportation, marine highway, and freight projects, or groups of such projects – with significant national or regional impact, or to improve and expand the surface transportation infrastructure in rural areas.

DATES: Applications must be submitted by 11:59 p.m. EDT on May 23, 2022. The

Grants.gov “Apply” function will open by March 25, 2022.

ADDRESSES: Applications must be submitted through www.Grants.gov. Only applicants who comply with all submission requirements described in this notice and submit applications through www.Grants.gov on or before the application deadline will be eligible for award.

FOR FURTHER INFORMATION CONTACT: For further information regarding this notice, please contact the Office of the Secretary via email at MPDGrants@dot.gov, or call

Paul Baumer at (202) 366-1092. A TDD is available for individuals who are deaf or hard of hearing at 202-366-3993. In addition, up to the application deadline, the U.S.

Department of Transportation (Department) will post answers to common questions and requests for clarifications on the Department’s website at https://www.transportation.gov/grants/mpdg-frequently-asked-questions.

SUPPLEMENTARY INFORMATION:

The organization of this notice is based on an outline set forth in Appendix I to title 2 of the Code of Federal Regulations (CFR) Part 200 to ensure consistency across Federal financial assistance programs. However, that format is designed for locating specific information, not for linear reading. For readers seeking to familiarize themselves with how the Multimodal Project

Discretionary Grant (MPDG) combined application process will work, the Department recommends starting with Section A (Program Description), which describes the Department’s goals for the MPDG common application and purpose in making awards, and Section E

(Application Review Information), which describes how the Department will select among eligible applications for each of the three funding opportunities. Those two sections will provide appropriate context for the remainder of the notice: Section B (Federal Award Information) describes information about the size and nature of awards; Section C (Eligibility Information) describes eligibility requirements for applicants and projects; Section D (Application and http://www.grants.gov/ http://www.grants.gov/ mailto:INFRAgrants@dot.gov http://www.transportation.gov/grants/mpdg-frequently-asked-questions http://www.transportation.gov/grants/mpdg-frequently-asked-questions

Submission Information) describes in detail how to apply for an award; Section F (Federal

Award Administration Information) describes legal requirements that will accompany awards;

and Sections G (Federal Awarding Agency Contacts) and H (Other Information) provide additional administrative information.

Table of Contents

A. Program Description

1. Overview

2. Changes from the FY 2021 INFRA NOFO

3. Additional Information

B. Federal Award Information

1. Amount Available

C. Eligibility Information

1. Eligible Applicants

2. Cost Sharing or Matching

3. Eligible Projects

4. Eligible Project Costs

5. Project Requirements

6. Definition of Rural and Urban Areas

7. Areas of Persistent Poverty and Historically Disadvantaged Communities

8. Project Components

9. Network of Projects

10. Application Limit

D. Application and Submission Information

1. Address

2. Content and Form of Application

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

4. Submission Dates and Timelines

5. Funding Restrictions

6. Other Submission Requirements

E. Application Review Information

1. Criteria

i. Overall Application Rating

ii. Project Outcome Criteria

iii. Benefit-Cost Analysis Rating

iv. Project Readiness Rating

v. Additional Considerations

vi. Previous Awards

2. Review and Selection Process

3. Additional Information

F. Federal Award Administration Information

1. Federal Award Notices

2. Administrative and National Policy Requirements

3. Reporting

G. Federal Awarding Agency Contacts

H. Other Information

1. Protection of Confidential Business Information

2. Publication of Application Information

3. Department Feedback on Applications

4. MPDG Extra, Eligibility, and Designation

A. Program Description

1. Overview

The Multimodal Project Discretionary Grant common application (MPDG) provides

Federal financial assistance to highway and bridge, intercity passenger rail, railway-highway grade and separation, wildlife crossing, public transportation, marine highway, and freight and multimodal projects, or groups of such projects, of national or regional significance, as well as to projects to improve and expand the surface transportation infrastructure in rural areas.

Infrastructure Investment and Jobs Act (Pub. L. 117-58, November 15, 2021) (Bipartisan

Infrastructure Law, or BIL) provided funds to the Department across three programs to invest in projects of national or regional significance – the National Infrastructure Project Assistance grants program, found under 49 U.S.C. § 6701 (Mega), the Nationally Significant Multimodal

Freight and Highways Projects grants program, found at 23 U.S.C. § 117 (Infrastructure for

Rebuilding America or INFRA), and the Rural Surface Transportation Grant program, found at

23 U.S.C. § 173 (Rural). To help streamline the process for applicants, the Department has combined the applications for the Mega, INFRA, and Rural programs into the MPDG common application. Applicants may choose to apply to one, two, or all three of these grant programs.)

The Fiscal Year (FY) 2022 MPDG awards will be made for each of the three grant programs as appropriate and consistent with each grant program’s statutory language. The FY 2022

MPDG round will be implemented, as appropriate and consistent with law, in alignment with the priorities in Executive Order 14052, Implementation of the Infrastructure Investment and

Jobs Act (86 FR 64355)1, and will focus on supporting projects that improve safety, economic strength and global competitiveness, equity, and climate and sustainability consistent with the

Department’s strategic goals.

Applicants are encouraged to apply for multiple programs, to maximize their potential of receiving Federal support. Applicants for the MPDG will be considered across all three programs unless they opt out. To support applicants through the application process, the

Department will provide technical assistance and resources.2

The Department seeks to fund projects under the MPDG common application that reduce greenhouse gas emissions and are designed with specific elements to address climate change impacts. Section E provides more information on the specific measures a project may undertake to support these goals.

The Department also seeks to award projects under the MPDG common application that address environmental justice, particularly for communities (including rural communities) that may disproportionately experience consequences from climate change and other pollutants.

Environmental justice, as defined by the Environmental Protection Agency, is the fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income, with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies. As part of the Department’s implementation of Executive Order 14008, Tackling the Climate Crisis at Home and Abroad (86 FR 7619), the Department seeks to fund

1 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 all hazards including climate change, and to effectively coordinate with State, local, Tribal, and territorial government partners.

2 For Technical Assistance for projects in rural areas, visit https://www.transportation.gov/rural.

https://www.transportation.gov/rural projects that, to the extent possible, target at least 40 percent of resources and benefits towards low-income communities, disadvantaged communities, communities underserved by affordable transportation, or overburdened communities. Projects that have not sufficiently considered climate change and environmental justice in their planning, as determined by the Department, will be required to do so before receiving funds for construction. See Section F.2 of this Notice of Funding Opportunity (NOFO) for program requirements.

The Department also seeks to award projects under the MPDG common application that proactively address equity and barriers to opportunity, including automobile dependence as a form of barrier, or redress prior inequities and barriers to opportunity. Section E describes equity considerations that an applicant can undertake and the Department will consider during the review of applications. Projects that have not sufficiently considered equity and barriers to opportunity in their planning, as determined by the Department, will be required to do so before receiving funds for construction. All projects must comply with Federal civil rights requirements. See Section F.2 of this NOFO for program requirements.

In addition, the Department intends to use the MPDG opportunity 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 workforce programs, in particular registered apprenticeships, labor management partnerships and Local Hire agreements,3 in project planning stages and program delivery. Projects that incorporate such planning considerations are expected to support a strong economy and labor market. Section E describes job creation and labor considerations an applicant can undertake and that the Department will consider during the review of applications.

Projects that have not sufficiently considered job creation and labor considerations in their

3 Contracts awarded with geographic hiring preferences are eligible for assistance under most Department financial assistance programs.

planning, as determined by the Department, will be required to do so to the full extent possible under the law before receiving funds for construction. See Section F.2 of this NOFO for program requirements.

Section E of this NOFO describes the process for selecting projects that further these goals under each of the three grant programs. Section F.3 describes progress and performance reporting requirements for selected projects, including the relationship between that reporting and the program’s selection criteria.

Consistent with the Department’s Rural Opportunities to Use Transportation for

Economic Success (ROUTES) initiative, the Department seeks to award funding to rural projects that address deteriorating conditions and disproportionately high fatality rates and transportation costs in rural communities.

2. Changes from the FY 2021 INFRA NOFO

Of the three programs in the MPDG opportunity, INFRA is the only program that existed in FY2021, while the Rural and Mega are new programs created by the Bipartisan

Infrastructure Law. Applicants who are planning to reapply using materials prepared for prior competitions should ensure that their FY 2022 application fully addresses the criteria and considerations described in this notice and that all relevant information is up to date.

The FY 2022 INFRA program will be evaluated under common project outcome criteria (formally labeled in FY 2021 as “merit criteria”) that apply to all three programs within the MPDG opportunity, as described in Section E. The FY 2022 MPDG opportunity’s common project outcome criteria will not consider the Performance and Accountability criterion from

INFRA 2021. Instead, the Department will utilize standard approaches to monitoring project performance and ensuring projects are delivered efficiently. Leverage of non-Federal funds contribution, or “leverage,” will now be assessed within the Innovation criterion and for the separate INFRA FY 2022 Leverage pilot set-aside. The Leverage pilot set-aside is described in further detail in Section B.2.ii.

The BIL expanded INFRA eligibility to include wildlife crossing projects; marine highway corridor projects; highway, bridge, or freight projects carried out on the National

Multimodal Freight Network4; surface transportation projects located within or functionally connected to an international border crossing; and transportation facilities owned by a Federal, State, or local government entity.

3. Additional Information

This common application process will result in grants being awarded under three funding programs. The Mega program is authorized at 49 U.S.C. § 6701. The INFRA program is authorized at 23 U.S.C. § 117. The Rural program is authorized at 23 U.S.C. § 173. They are described respectively in the Federal Assistance Listings under the assistance listing program titles “National Infrastructure Project Assistance” (assistance listing number 20.937), “Nationally Significant Freight and Highway Projects” (assistance listing number 20.934), and

“Rural Surface Transportation Grant Program” (assistance listing number 20.938).

The Department is committed to considering project funding decisions holistically among the various discretionary grant programs available in BIL. The Department also recognizes that applicants may be seeking funding from multiple discretionary grant programs and opportunities. An applicant may seek the same award amounts from multiple Department discretionary opportunities or seek a combination of funding from multiple Department opportunities. The applicant should identify describe from any other Department programs and

4 DOT has not yet designated an National Multimodal Freight Network. Any project relying on being on the National Multimodal

Freight Network as their sole basis for eligibility may be considered higher risk.

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 including

Sections D.2.i. and D.2.ii.IV.

B. Federal Award Information

1. Amount Available

The BIL makes available up to $5 billion for the Mega program for the period of FY

2022 through 2026; up to $8 billion to the INFRA program for the period of FY 2022 through

2026; and up to $2 billion for the Rural program for the period of FY 2022 through 2026, for a combined total of up to $15 billion for FY 2022 through 2026. This notice solicits applications for up to $2.85 billion in FY 2022 MPDG opportunity funds. Up to $1 billion will be made available for the Mega program, up to $1.55 billion will be made available for the INFRA program, and up to $300 million will be made available for the Rural funding opportunities program. In addition to the FY 2022 funding, the Department may make award decisions in the

MPDG FY 2022 round to fund Mega project awards in future fiscal years, based on a potential awarded project’s schedule and availability of funding. 5 In addition to the FY 2022 funds, amounts from prior year INFRA authorizations, presently estimated at up to $150 million, may be made available and awarded under this solicitation. Any award under this notice will be subject to the availability of funding. Mega, INFRA, and the Rural program each have their own specific funding restrictions, including award size and types of projects. Refer to Section D.5 for greater detail on funding restrictions for each program.

C. Eligibility Information

5 49 U.S.C. § 6701(j) authorizes the Department to enter multiyear grant agreements for Mega projects. Those agreements may include a commitment, contingent on amounts to be specified in law in advance for such commitments, to provide future year funds.

To be selected for a grant, an applicant must be an Eligible Applicant and the project must be an Eligible Project that meets the minimum project size requirement.

1. Eligible Applicants

Each of the three funding opportunities has slightly different statutory rules for what kinds of applicants are eligible to apply. Applicants should review this section in determining for which of the three programs they are applying.

Eligible Applicants

Mega INFRA Rural

1. a State or a group 1. a State or group of 1. a State;

of States; States; 2. a regional

2. a metropolitan 2. a metropolitan transportation planning planning planning organization organization;

organization; that serves an 3. a unit of local

3. a unit of local Urbanized Area (as government;

government; defined by the Bureau 4. a tribal government

4. a political of the Census) with a or a consortium of subdivision of a population of more tribal governments; or

State; than 200,000 5. a

5. a special purpose individuals; multijurisdictional district or public 3. a unit of local group of entities authority with a government or group above.

transportation of local governments;

function, including 4. a political a port authority; subdivision of a State

6. a Tribal or local government;

government or a 5. a special purpose consortium of district or public

Tribal authority with a governments; transportation function,

7. a partnership including a port between Amtrak authority;

and 1 or more 6. a Federal land entities described management agency in (1) through (6); that applies jointly and, with a State or group

8. a group of entities of States;

described in any of 7. a tribal government

(1) through (7). or a consortium of tribal governments;

8. a multistate corridor organization;

or

9. a multistate or multijurisdictional group of entities described in this paragraph.

i. Mega

Eligible applicants for Mega grants are: (1) a State or a group of States; (2) a metropolitan planning organization; (3) a unit of local government; (4) a political subdivision of a State; (5) a special purpose district or public authority with a transportation function, including a port authority;

(6) a Tribal government or a consortium of Tribal governments; (7) a partnership between Amtrak and 1 or more entities described in (1) through (6); and (8) a group of entities described in any of (1) through (7).

ii. INFRA

Eligible applicants for INFRA grants are: (1) a State or group of States; (2) a metropolitan planning organization that serves an Urbanized Area (as defined by the Bureau of the Census) with a population of more than 200,000 individuals; (3) a unit of local government or group of local governments; (4) a political subdivision of a State or local government; (5) a special purpose district or public authority with a transportation function, including a port authority; (6) a Federal land management agency that applies jointly with a State or group of

States; (7) a tribal government or a consortium of tribal governments; (8) a multistate corridor organization; or (9) a multistate or multijurisdictional group of entities described in this paragraph.

iii. Rural

Eligible applicants for Rural grants are: (1) a State; (2) a regional transportation planning organization; (3) a unit of local government; (4) a tribal government or a consortium of tribal governments; or (5) a multijurisdictional group of entities above.

iv. Joint Applications for Any Program

Multiple States or entities that submit a joint application should identify a lead applicant as the primary point of contact. Joint applications should include a description of the roles and responsibilities of each applicant and should be signed by each applicant. The applicant that will be responsible for financial administration of the project must be an eligible applicant.

2. Cost Sharing or Matching

Mega grants may be used for up to 60 percent of future total eligible project costs. Other

Federal assistance may satisfy the non-Mega share requirement for a Mega grant, but total Federal assistance for a project receiving a Mega grant may not exceed 80 percent of future total eligible project costs.

INFRA grants may be used for up to 60 percent of future eligible project costs. Other

Federal assistance may satisfy the non-INFRA share requirement for an INFRA grant, but total

Federal assistance for a project receiving an INFRA grant may not exceed 80 percent of future total eligible project costs, except that, for States with a population density of not more than 80 persons per square mile of land area, based on the 2010 census, the maximum share of the total

Federal assistance provided for a project receiving a grant under this section shall be the applicable share under section 120(b) of title 23, U.S.C. The following chart identifies the maximum total Federal cost share for INFRA projects, under such section 120(b), for projects for FY 2022.

State

Maximum

Federal Share for INFRA projects

Alaska 90.97%

Arizona 90.94%

California 83.57%

Colorado 82.79%

Hawaii 81.30%

Idaho 84.97%

Montana 82.75%

Nevada 94.89%

New Mexico 85.44%

Oregon 84.63%

South Dakota 81.95%

Utah 89.52%

Washington 81.42%

Wyoming 86.77%

If a Federal land management agency applies jointly with a State or group of States, and that agency carries out the project, then Federal funds that were not made available under titles 23 or

49 of the U.S.C. may be used for the non-Federal share.

Rural grants may be used for up to 80 percent of future eligible project costs, except eligible projects that further the completion of a designated segment of the Appalachian Development

Highway System under section 14501 of title 40 of the U.S.C., or address a surface transportation infrastructure need identified for the Denali access system program under section

309 of the Denali Commission Act of 1998 may apply for up to 100 percent of the project costs.

Other Federal assistance may satisfy the non-Rural share requirement for a Rural grant up to

100 percent of project costs.

Please note that the Rural Program has a higher statutory maximum Federal share than Mega and INFRA. Applications which seek funding above the statutory maximum share for MEGA and INFRA will only be eligible for an award from the Rural program.

iv. Universal Cost Sharing or Matching Guidance

Unless otherwise authorized by statute, non-Federal cost-share may not be counted as non-

Federal share for both the programs under MPDG and another Federal program. For any project under MPDG, the Department cannot consider previously incurred costs or previously expended or encumbered funds towards the matching requirement. Matching funds are subject to the same

Federal requirements described in Section F.2.iii as awarded funds. See Section D.2 for information about documenting cost sharing in the application.

Non-Federal sources include State funds originating from programs funded by State revenue, local funds originating from State or local revenue-funded programs, private funds, or other funding sources of non-Federal origin.

For the purpose of evaluating eligibility under the statutory limit on total Federal assistance in the Mega and INFRA programs, funds from TIFIA and RRIF credit assistance programs are considered Federal assistance and, combined with other Federal assistance, may not exceed 80 percent of the future eligible project costs, except as indicated for the INFRA program (see Section C.2.ii).

3. Eligible Projects

Each of the three funding opportunities has different statutory rules for what kinds of projects are eligible for funding. Applicants should review this section in determining for which of the three programs they are applying, given the type of project being proposed. Projects may be eligible for funding under multiple MPDG programs and applicants may apply for any program for which their project is eligible.

Eligible Project Types

Mega INFRA Rural

1. A highway or bridge 1. A highway freight 1. A highway, bridge, or project on the National project on the National tunnel project eligible under

Multimodal Freight Highway Freight Network National Highway

Network 2. A highway or bridge Performance Program

2. A highway or bridge project on the National 2. A highway, bridge, or project on the National Highway System tunnel project eligible under

Highway Freight Network 3. A freight intermodal, Surface Transportation

3. A highway or bridge freight rail, or freight Block Grant project on the National project within the 3. A highway, bridge, or

Highway System boundaries of a public or tunnel project eligible under

4. A freight intermodal private freight rail, water Tribal Transportation

(including public ports) or (including ports), or Program freight rail project that intermodal facility and that 4. A highway freight provides public benefit is a surface transportation project eligible under

5. A railway highway infrastructure project National Highway Freight grade separation or necessary to facilitate direct Program elimination project intermodal interchange, 5. A highway safety

6. An intercity passenger transfer, or access into or improvement project, rail project out of the facility* including a project to

7. A public transportation 4. A highway-railway improve a high risk rural project that is eligible under grade crossing or grade road as defined by the assistance under Chapter 53 separation project Highway Safety of title 49 and is a part of any

5. A wildlife crossing Improvement Program of the project types project 6. A project on a publicly-described above 6. A surface transportation owned highway or bridge project within the that provides or increases boundaries or functionally access to an agricultural, connected to an commercial, energy, or international border intermodal facility that crossing that improves a supports the economy of a facility owned by rural area Fed/State/local government 7. A project to develop, and increases throughput establish, or maintain an efficiency integrated mobility

7. A project for a marine management system, a highway corridor that is transportation demand functionally connected to management system, or on-the NHFN and is likely to demand mobility services reduce road mobile source emissions

8. A highway, bridge, or freight project on the

National Multimodal

Freight Network

Eligible projects for Mega grants are: a highway or bridge project on the National Multimodal

Freight Network; a highway or bridge project on the National Highway Freight Network; a highway or bridge project on the National Highway System; a freight intermodal (including public ports) or freight rail project that provides public benefit; a railway-highway grade separation or elimination project; an intercity passenger rail project; a public transportation project that is eligible under assistance under Chapter 53 of title 49 U.S.C. and is a part of any of the project types described above; or a grouping, combination, or program of interrelated, connected, or dependent projects of any of the projects described above.

ii. INFRA

Eligible projects for INFRA grants are: highway freight projects carried out on the National

Highway Freight Network (NHFN) (23 U.S.C. § 167); highway or bridge projects carried out on the National Highway System (NHS), including projects that add capacity on the Interstate

System to improve mobility or projects in a national scenic area; railway-highway grade crossing or grade separation projects; or a freight project that is 1) an intermodal or rail project, or 2) within the boundaries of a public or private freight rail, water (including ports), or intermodal facility; a wildlife crossing project; a surface transportation project within the boundaries of, or functionally connected to, an international border crossing that improves a facility owned by a

Federal, State, or local government and increases throughput efficiency; a project for a marine highway corridor that is functionally connected to NHFN and is likely to reduce on-road mobile source emissions; or a highway, bridge, or freight project on the National Multimodal Freight

Network under section 70103 of title 49 of the United States Code. To be eligible under INFRA, a project within the boundaries of a freight rail, water (including ports), or intermodal facility must be a surface transportation infrastructure project necessary to facilitate direct intermodal interchange, transfer, or access into or out of the facility and must significantly improve freight movement on the NHFN. In this context, improving freight movement on the NHFN may include shifting freight transportation to other modes, thereby reducing congestion and bottlenecks on the NHFN. For a freight project within the boundaries of a freight rail, water

(including ports), or intermodal facility, Federal funds can only support project elements that provide public benefits.

Eligible projects for Rural grants are: a highway, bridge, or tunnel project eligible under

National Highway Performance Program (23 U.S.C.119); a highway, bridge, or tunnel project eligible under Surface Transportation Block Grant (23 U.S.C. 133); a highway, bridge, or tunnel project eligible under Tribal Transportation Program (23 U.S.C. 202); a highway freight project eligible under National Highway Freight Program (23 U.S.C.167); a highway safety improvement project, including a project to improve a high risk rural road as defined by the Highway Safety

Improvement Program (23 U.S.C. 148); a project on a publicly-owned highway or bridge that provides or increases access to an agricultural, commercial, energy, or intermodal facility that supports the economy of a rural area; or a project to develop, establish, or maintain an integrated mobility management system, a transportation demand management system, or on-demand mobility services.

An eligible entity may bundle two or more similar eligible projects under the Rural program if projects are included as a bundled project in a statewide transportation improvement program under 23 U.S.C. § 135 and will be awarded to a single contractor or consultant pursuant to a contract for engineering and design or construction between the contractor and the eligible entity.

4. Eligible Project Costs

The table below defines eligible project costs for each program per the program statutes:

Eligible Project Costs

Mega INFRA Rural

Development-phase activities and costs, including planning, feasibility analysis, revenue forecasting, alternatives analysis, data collection and analysis, environmental review and activities to support environmental review, preliminary engineering and design work, and other preconstruction activities, including the preparation of a data collection and post-construction analysis plan; and, Construction, reconstruction, rehabilitation, acquisition of real property (including land relating to the project and improvements to that land), environmental mitigation (including projects to replace or rehabilitate culverts or reduce stormwater runoff for the purpose of improving habitat for aquatic species), construction contingencies, acquisition of equipment, protection, and operational improvements directly relating to the project.

Development phase activities, including planning, feasibility analysis, revenue forecasting, environmental review, preliminary engineering, design, and other preconstruction activities, provided the project meets statutory requirements.

Construction, reconstruction, rehabilitation, or acquisition of property (including land related to the project and improvements to the land), environmental mitigation

(including a project to replace or rehabilitate a culvert, or to reduce stormwater runoff for the purpose of improving habitat for aquatic species), construction contingencies, equipment acquisition, and operational improvements directly related to system performance.

INFRA grant recipients may use INFRA funds to pay for the subsidy and administrative costs necessary to receive

TIFIA credit assistance.

Development phase activities, including planning, feasibility analysis, revenue forecasting, environmental review, preliminary engineering and design work, and other preconstruction activities; and, Construction, reconstruction, rehabilitation, acquisition of real property (including land related to the project and improvements to the land), environmental mitigation, construction contingencies, acquisition of equipment, and operational improvements.

v. Mega

Mega grants may be used for development-phase activities and costs, including planning, feasibility analysis, revenue forecasting, alternatives analysis, data collection and analysis, environmental review and activities to support environmental review, preliminary engineering and design work, and other preconstruction activities, including the preparation of a data collection and post-construction analysis plan; and construction, reconstruction, rehabilitation, acquisition of real property (including land relating to the project and improvements to that land), environmental mitigation (including projects to replace or rehabilitate culverts or reduce stormwater runoff for the purpose of improving habitat for aquatic species), construction contingencies, acquisition of equipment, protection, and operational improvements directly relating to the project.

vi. INFRA

INFRA grants may be used for the construction, reconstruction, rehabilitation, or acquisition of property (including land related to the project and improvements to the land), environmental mitigation (including a project to replace or rehabilitate a culvert, or to reduce stormwater runoff for the purpose of improving habitat for aquatic species), construction contingencies, equipment acquisition, and operational improvements directly related to system performance. Statutorily, INFRA grants may also fund development phase activities, including planning, feasibility analysis, revenue forecasting, environmental review, preliminary engineering, design, and other preconstruction activities, provided the project meets statutory requirements. However, the

Department is seeking to prioritize INFRA funding for projects that result in construction; as a result, development phase activities may be less competitive under INFRA by nature of the evaluation structure described in Section E. Public-private partnership assessments for projects in the development phase are also eligible costs.

INFRA grant recipients may use INFRA funds to pay for the subsidy and administrative costs necessary to receive TIFIA credit assistance.

vii. Rural

Rural grants may be used for development phase activities, including planning, feasibility analysis, revenue forecasting, environmental review, preliminary engineering and design work, and other preconstruction activities; and construction, reconstruction, rehabilitation, acquisition of real property (including land related to the project and improvements to the land), environmental mitigation, construction contingencies, acquisition of equipment, and operational improvements.

5. Project Requirements for Each Funding Opportunity

Applicants only need to address the requirements for the program or programs from which they are requesting funding in in their application.

For the purposes of determining whether a project meets the minimum project size requirement, the Department will count all future eligible project costs under the award and some related costs incurred before selection for a Mega grant. Previously incurred costs will be counted toward the minimum project size requirement only if they were eligible project costs under Section

C.4.i and were expended as part of the project for which the applicant seeks funds. Although those previously incurred costs may be used for meeting the minimum project size thresholds described in this Section, they cannot be reimbursed with Mega grant funds, nor will they count toward the project’s required non-Federal share.

(a) Mega Project Sizes

The Department will make awards under the Mega program both to projects greater than

$500 million in cost, and to projects greater than $100 million but less than $500 million in cost. For each fiscal year of Mega funds, 50 percent of available funds are reserved for projects greater than $500 million in cost, and 50 percent to projects between $100 million and $500 million in cost.

(b) Mega Project Requirements

For a Mega project to be selected, the Department must determine that the project meets all five requirements described in 49 U.S.C. § 6701(f)(1) and below and further described in

Section E.1.b.v and Section D.2.b.vii. If your project consists of multiple components with independent utility, the Department must determine that each component meets each requirement to select it for an award. See Section D.2.ii.VIII.

Mega Project Requirement #1: The project is likely to generate national or regional economic, mobility, or safety benefits.

Mega Project Requirement #2: The project is in significant need of Federal funding.

Mega Project Requirement #3: The project will be cost-effective.

Mega Project Requirement #4: With respect to related non-Federal financial commitments, one or more stable and dependable funding or financing sources are available to construct, maintain, and operate the project, and to cover cost increases.

Mega Project Requirement #5: The applicant has, or will have, sufficient legal, financial, and technical capacity to carry out the project.

(c) Mega Data Collection Requirements

In accordance with 49 U.S.C. 6701(g), an applicant wishing to submit a project to be considered for a Mega grant award will be required to submit, as an attachment to their application, a plan for the collection and analysis of data to identify the impacts of the project and the accuracy of any forecast prepared during the development phase of the project and included in the grant application. The contents of the plan shall include an approach to measuring proposed project outcome criteria as described in Section E and an approach for analyzing the consistency of predicted project characteristics with actual outcomes.

Each applicant selected for Mega grant funding must collect and report to the Department information on the project’s performance based on performance indicators related to program goals (e.g., travel time savings, greenhouse gas emissions, passenger counts, or level of service) among other information. Performance indicators should include measurable goals or targets that Department will use internally to determine whether the project meets program goals and grant funds achieve the intended long-term outcomes of the Mega Grant Program. To the extent possible, performance indicators used in the reporting should align with the measures included in the application and should relate to at least one of the selection criteria defined in Section E.6

Before the start of construction of the Mega project, the project sponsor must submit a report providing baseline data for the purpose of analyzing the long-term impact of the project. Not later than six (6) years after the date of substantial completion of a project, the eligible entity carrying out the project shall submit a project outcomes report that compares the baseline data to quarterly project data for the duration of the fifth year of the project after substantial completion.

For the purposes of determining whether a project meets the minimum project size requirement, the Department will count all future eligible project costs under the award and some related costs incurred before selection for an INFRA grant. Previously incurred costs will be counted toward the minimum project size requirement only if they were eligible project costs under Section C.3.ii. and were expended as part of the project for which the applicant seeks funds. Although those previously incurred costs may be used for meeting the minimum project size thresholds described in this Section, they cannot be reimbursed with INFRA grant funds, nor

6 The Department may in the future publish a more detailed framework for performance measure data collection that will: indicate standardized measurement approaches; data storage system requirements; and any other requirements the Secretary determines to be necessary.

will they count toward the project’s required non-Federal share.

For the INFRA Leverage Pilot, at least 50 percent of the project’s future eligible project costs must be funded by non-Federal contributions.

(a) Large Projects

The minimum project size for large projects is the lesser of (1) $100 million; (2) 30 percent of a State’s FY 2021 Federal-aid apportionment if the project is located in one State; or

(3) 50 percent of the larger participating State’s FY 2021 apportionment for projects located in more than one State. The following chart identifies the minimum total project cost, rounded up to the nearest million, for projects for FY 2022 for both single and multi-State projects.

State FY 22 INFRA

(30% of FY 21 apportionment)

One-State Minimum

(millions)

FY 22 INFRA (50%

of FY 21 apportionment)

Multi-State

Minimum* (millions)

Alabama $100 $100

Alaska $100 $100

Arizona $100 $100

Arkansas $100 $100

California $100 $100

Colorado $100 $100

Connecticut $100 $100

Delaware $56 $93

Dist. Of Col. $52 $87

Florida $100 $100

Georgia $100 $100

Hawaii $56 $93

Idaho $94 $100

Illinois $100 $100

Indiana $100 $100

Iowa $100 $100

Kansas $100 $100

Kentucky $100 $100

Louisiana $100 $100

Maine $61 $100

Maryland $100 $100

Massachusetts $100 $100

Michigan $100 $100

Minnesota $100 $100

Mississippi $100 $100

Missouri $100 $100

Montana $100 $100

Nebraska $95 $100

Nevada $100 $100

New Hampshire $54 $90

New Jersey $100 $100

New Mexico $100 $100

New York $100 $100

North Carolina $100 $100

North Dakota $82 $100

Ohio $100 $100

Oklahoma $100 $100

Oregon $100 $100

Pennsylvania $100 $100

Rhode Island $72 $100

South Carolina $100 $100

South Dakota $93 $100

Tennessee $100 $100

Texas $100 $100

Utah $100 $100

Vermont $67 $100

Virginia $100 $100

Washington $100 $100

West Virginia $100 $100

Wisconsin $100 $100

Wyoming $84 $100

* For multi-State projects, the minimum project size is the largest of the multi-State minimums from the participating States.

(b) Small Projects

A small project is an eligible project that does not meet the minimum project size described in

Section C.5.ii.

(c) Large/Small Project Requirements

For a large project to be selected, the Department must determine that the project meets seven requirements described in 23 U.S.C. § 117(g) and below and further described in Section

E.1.v.b. and Section D.2.b.vii. If your project consists of multiple components with independent utility, the Department must determine that each component meets each requirement to select it for an award. See Section E.1.v.b.:

Large Project Requirement #1: The project will generate national or regional economic, mobility, or safety benefits.

Large Project Requirement #2: The project will be cost-effective.

Large Project Requirement #3: The project will contribute to the accomplishment of one or more of the goals described in 23 U.S.C. § 150.

Large Project Requirement #4: The project is based on the results of preliminary engineering.

Large Project Requirement #5: With respect to related non-Federal financial commitments, one or more stable and dependable funding or financing sources are available to construct, maintain, and operate the project, and contingency amounts are available to cover unanticipated cost increases.

Large Project Requirement #6: The project cannot be easily and efficiently completed without other Federal funding or financial assistance available to the project sponsor.

Large Project Requirement #7 The project is reasonably expected to begin construction no later than 18 months after the date of obligation of funds for the project.

For a small project to be selected, the Department must consider the cost-effectiveness of the proposed project, the effect of the proposed project on mobility in the State and region in which the project is carried out, and the effect of the proposed project on safety on freight corridors with significant hazards, such as high winds, heavy snowfall, flooding, rockslides, mudslides, wildfire, wildlife crossing onto the roadway, or steep grades.

For a Rural project to be selected, the Department must determine that the project meets five requirements described in 23 U.S.C. § 173(g) and below and further described in Section E.1.v.b and Section D.2.b.vii. If your project consists of multiple components with independent utility, the Department must determine that each component meets each requirement, to select it for an award. See Section D.2.VIII.

Rural Project Requirement #1: will generate regional economic, mobility, or safety benefits.

Rural Project Requirement #2: The project will be cost-effective.

Rural Project Requirement #3: The project will contribute to the accomplishment of 1 or more of the national goals under 23 U.S.C. § 150.

Rural Project Requirement #4: The project is based on the results of preliminary engineering.

Rural Project Requirement #5: The project is reasonably expected to begin construction not later than 18 months after the date of obligation of funds for the project.

6. Definition of Rural and Urban Areas

This section describes the definition of urban and rural areas and the minimum statutory requirements for projects that meet those definitions. The INFRA and Rural program statutes define a rural area as an area outside an Urbanized Area7 with a population of over 200,000. In this

7 For Census 2010, the Census Bureau defined an Urbanized Area (UA) as an area that consists of densely settled territory that contains 50,000 or more people. Updated lists of UAs are available on the Census Bureau website at http://www2.census.gov/geo/maps/dc10map/UAUC_RefMap/ua/. For the purposes of the INFRA program, Urbanized Areas with populations fewer than 200,000 will be considered rural.

http://www2.census.gov/geo/maps/dc10map/UAUC_RefMap/ua/ notice, urban area is defined as inside an Urbanized Area, as designated by the U.S. Census

Bureau, with a population of 200,000 or more.8 Rural and urban definitions differ in some other

Department programs, including TIFIA. Cost share requirements and minimum grant awards are the same for projects located in rural and urban areas. The Department will consider a project to be in a rural area if the majority of the project (determined by geographic location(s) where the majority of the money is to be spent) is located in a rural area. However, if a project consists of multiple components, as described under section C.8 or C.9, then for each separate component the

Department will determine whether that component is rural or urban. In some circumstances, including networks of projects under section C.9 that cover wide geographic regions, this component-by-component determination may result in awards that include urban and rural funds.

7. Areas of Persistent Poverty and Historically Disadvantaged Communities

BIL specifies that the Secretary consider, as an additional consideration for the Mega program, whether a project may benefit an Area of Persistent Poverty or a Historically

Disadvantaged Community.

In this context, an Area of Persistent Poverty means: (1) any county that has consistently had greater than or equal to 20 percent of the population living in poverty during the 30-year period preceding November 15, 2021, as measured by the 1990 and 2000 decennial census and the most recent annual Small Area Income Poverty Estimates as estimated by the Bureau of the Census;

(2) any census tract with a poverty rate of at least 20 percent as measured by the 2014-2018 5-year data series available from the American Community Survey of the Bureau of the Census; or

(3) any territory or possession of the United States. A county satisfies this definition only if 20 percent of its population was living in poverty in all three of the listed datasets: (1) the 1990

8 See www.transportation.gov/buildamerica/INFRAgrants for a list of Urbanized Areas with a population of 200,000 or more.

http://www.transportation.gov/buildamerica/INFRAgrants decennial census; (2) the 2000 decennial census; and (3) the 2020 Small Area Income Poverty

Estimates. The Department lists all counties and census tracts that meet this definition for Areas of Persistent Poverty at https://datahub.transportation.gov/stories/s/tsyd-k6ij.

Historically Disadvantaged Communities – The Department has been developing a definition of Historically Disadvantaged Communities as part of its implementation of the Justice40

Initiative and will use that definition for the purpose of this NOFO. Consistent with the Office of

Management and Budget’s (OMB) Interim Guidance for the Justice40 Initiative, Historically

Disadvantaged Communities include (1) certain qualifying…