MPDG NOFO 2023-2024 Final.pdf

4910-9X

DEPARTMENT OF TRANSPORTATION

Office of the Secretary of Transportation

Notice of Funding Opportunity for the Department of Transportation’s FY 2023-2024

Multimodal Project Discretionary Grant Opportunity (MPDG)

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

ACTION: Notice of Funding Opportunity (NOFO)

SUMMARY:

SUMMARY OVERVIEW OF KEY INFORMATION: Multimodal Project

Discretionary Grant Opportunity

Issuing Agency Office of the Secretary of Transportation, U.S. Department of

Transportation

Program

Overview

The MPDG opportunity contains three grant programs: 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).

The funding opportunities are 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.

Objective 1) Invest in surface transportation infrastructure projects of national or regional significance and improve/expand infrastructure in rural areas; 2)

Support projects that are consistent with the Department’s strategic goals:

improve safety, economic strength and global competitiveness, equity, and climate and sustainability.

Eligible

Applicants

(Varies by program)

• a State or a group of States;

• a metropolitan planning organization or a regional transportation planning organization; the

• a unit of local government;

• a political subdivision of a State;

• a special purpose district or public authority with a transportation function, including a port authority;

• a Tribal government or a consortium of Tribal governments;

• Federal land management agency that applies jointly with a State or group of States;

• a partnership between Amtrak and 1 or more entities described above

• a group of entities described above

(NOTE: Eligibility may vary by program. Section C.1 provides additional information)

Eligible Project

Types

(Varies by program)

• A highway or bridge project on the National Multimodal Freight

Network, National Highway Freight Network (NHFN), or

National Highway System

• A freight intermodal (including public ports) or freight rail project that provides public benefit

• A highway freight project eligible under National Highway

Freight Program

• A railway highway grade separation or elimination project

• A highway safety improvement project, including a project to improve a high-risk rural road as defined by the Highway Safety

Improvement Program

• An intercity passenger rail project

• A public transportation project that is eligible under assistance under Chapter 53 of title 49 and is a part of any of the project types described above

• A wildlife crossing project

• A surface transportation project within the boundaries or functionally connected to an international border crossing that improves a facility owned by Fed/State/local government and increases throughput efficiency

• A project for a marine highway corridor that is functionally connected to the NHFN and is likely to reduce road mobile source emissions

• A highway, bridge, or freight project on the National Multimodal

Freight Network

• 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

• A project to develop, establish, or maintain an integrated mobility management system, a transportation demand management system, or on-demand mobility services

(NOTE: Not all project types are eligible under all three programs.

Section C.3 provides additional information.)

Funding It is anticipated that this opportunity will award approximately $5.45-

5.575 billion for this round from FY 2023 and FY 2024 funding.

• INFRA: $3-3.1 billion

• Mega: $1.8 billion

• Rural: $650-675 million

The Mega program has the ability to make multi-year awards including funding from future years. Subject to the availability of funding, Mega funding provided for FY 2025 and FY 2026 may also be allocated to projects identified in this competition.

Deadline: August 21, 2023, at 11:59 pm 59pm EDT: Application Due

DATES: Applications must be submitted by 11:59:59 p.m. EDT on August 21, 2023. The

Grants.gov “Apply” function will open by June 22, 2023.

ADDRESSES: Applications must be submitted through www.Grants.gov.

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:

Each section of this notice contains information and instructions relevant to the application process for the MPDG grant program, and all applicants should read this notice in its entirety so that they have the information they need to submit eligible and competitive applications.

Table of Contents

A. Program Description

1. Overview

2. Changes from the FY 2022 MPDG NOFO http://www.grants.gov/ mailto:INFRAgrants@dot.gov

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 Infrastructure Investment and Jobs Act (Pub. L. No. 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). The BIL makes available up to $5 billion for the Mega program for the period of Fiscal Year (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.

To help streamline the process for applicants, the Department has combined solicitations for the Mega, INFRA, and Rural programs into the MPDG opportunity.

Applicants may choose to apply to one, two, or all three of these grant programs. The FY 2023 and 2024 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 2023–2024 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.

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.

Applicants are encouraged to apply for multiple programs, to maximize their potential of receiving Federal support. Applicants to MPDG will be considered across all three programs unless they opt out of a specific program. To support applicants through the application process, the Department will provide technical assistance and resources.2

The Department is committed to advancing safe, efficient transportation, including in the

MPDG programs. 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,’ in pursuit of the goal of achieving zero roadway deaths through a Safe

System Approach. The outcomes that are anticipated from the roadway projects funded by the

MPDG programs should align with the NRSS.

The Department seeks to fund projects that reduce greenhouse gas emissions and are designed with specific elements to address climate change impacts, projects that include nature-based solutions to increase the climate resilience and sustainability of the transportation system, consistent with recommendations in the Nature-Based Solutions Roadmap, responsive to Executive

Order 14008, Tackling the Climate Crisis at Home and Abroad and Executive Order 14072, Strengthening the Nation’s Forests, Communities and Local Economies.

The Department seeks to award projects that address environmental justice, particularly for communities (including rural and Tribal communities) that may disproportionately experience consequences from climate change and pollutants. 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 projects that, to the extent possible, target 40 percent of the overall

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

https://www.transportation.gov/rural benefits of certain federal investments in climate and, clean energy and other areas to disadvantaged communities. Such communities may include low-income communities and communities that are marginalized by underinvestment, including those underserved by affordable transportation, and overburdened by pollution.

Both the National Infrastructure Project Assistance grants program (Mega) and the Nationally

Significant Multimodal Freight and Highways Projects grants program (INFRA)3 are covered under the President’s Justice40 Initiative which set a goal that 40 percent of the overall benefits from certain federal investments in climate and, clean energy and other areas, flow to disadvantaged communities.

The Department seeks to award projects that proactively address equity and barriers to opportunity, including automobile dependence as a form of barrier, or redress prior inequities and barriers to opportunity consistent with Executive Order 13985.

The Department also seeks to award projects that 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, in project planning stages and program delivery.

In addition, 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.

Section E of this NOFO describes the process for selecting projects that further these

3 The INFRA program will be implemented in line with Administration policies and orders including the America the Beautiful initiative, the White House Council on Environmental Quality Guidance for Federal Departments and Agencies on Ecological

Connectivity and Wildlife Corridors and the interagency Memorandum of Understanding (MOU) on Promoting Equitable Access to Nature in Nature-Deprived Communities signed by DOT.

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.

2. Changes from the FY 2022 MPDG NOFO

While the six Outcome Area criteria from FY 2022 remain the same, the FY 2023-2024

NOFO has revised how each criterion will be rated, using a rubric that updates and distinguishes how an application will be assigned a 0, 1, 2, or 3 for each criterion.

Rural Program applicants who are requesting less than $25 million need address only three of the outcome area criteria: (a) Safety; (b) Climate Change, Resiliency, and the

Environment; and (c) Equity, Multimodal Options, and Quality of Life.

For the first time in FY 2023-2024, the Department is establishing a Cost Estimate

Review team, who will evaluate in greater detail the cost estimates for any project requesting

$1 billion or more in funding from the MPDG opportunity.

The list of counties qualifying as Areas of Persistent Poverty has been updated from

MPDG 2022 to reflect more recent Census data4. The definition of census tracts qualifying as

Historically Disadvantaged Communities has also been updated, in accordance with the

Climate & Economic Justice Screening Tool (CEJST), a new tool by the White House Council on Environmental Quality (CEQ), that aims to help Federal agencies identify disadvantaged communities as part of the Justice40 initiative to accomplish the goal that 40% of benefits from certain federal investment reach disadvantaged communities.

Applicants who are planning to reapply using materials prepared for prior competitions

4 The definition of a County that is an Area of Persistent Poverty is linked to the most recent SAIPE data. On December 15, 2022, the 2021 Small Area Income Poverty Estimates (SAIPE) Dataset was published at https://www.census.gov/data/datasets/2021/demo/saipe/2021-state-and-county.html. The Department is updating its APP resources based on the 2021 SAIPE data.

should ensure that their FY 2023-2024 application fully addresses the criteria and considerations described in this notice and that all relevant information is up to date.

3. Additional Information

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).

B. Federal Award Information

1. Amount Available

This notice solicits applications for up to $5.575 billion in FY 2023 and FY 2024 MPDG opportunity funds. Up to $1.8 billion from FY 2023–2024 will be made available for the Mega program, up to $3.1 billion will be made available for the INFRA program, and up to $675 million will be made available for the Rural program. In addition to the FY 2023 and FY 2024 funding, the Department may make award decisions in the MPDG FY 2023–2024 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 2023– and FY 2024 funds, prior year INFRA amounts, presently estimated at up to $50 million, may be made available and awarded under this solicitation. Any award under this notice will be subject to the availability of funding. The

Mega, INFRA, and Rural programs each have their own specific funding restrictions, including

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.

award size and types of projects. Refer to Section D.5 for greater detail on funding restrictions for each program.

C. Eligibility Information

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 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)

8. a group of entities described in any of (1) through (7)

(For the Mega program, “State” includes any of the 50 states, the

District of Columbia, the

Commonwealth of Puerto Rico, the

Commonwealth of the Northern

Mariana Islands, the United States

Virgin Islands, Guam, American

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

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

(For the INFRA program, State includes any of the 50 states, the District of

Columbia, or Puerto Rico. Otherwise

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

5. a multijurisdictional group of entities above

(For the Rural program, State includes any of the

50 states, the District of

Columbia, or Puerto Rico.

Otherwise eligible entities located in or serving U.S.

Territories are eligible.)

Samoa, and any other territory or possession of the United States.)

eligible entities located in or serving U.S.

Territories are eligible.)

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). With regards to Mega grants, “State” includes any of the 50 states, the District of

Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, the United States Virgin Islands, Guam, American Samoa, and any other territory or possession of the United States.

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. With regards to INFRA grants, “State” includes any of the 50 states, the

District of Columbia, or Puerto Rico.

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. With regards to Rural grants, “State” includes any of the 50 states, the District of Columbia, or Puerto Rico.

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 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 23 U.S.C. § 120(b). The following chart identifies the states that with a population of fewer than 80 persons per square mile, based on the 2010 census. If your project is located in one of the States below, please consult the following link to determine which sliding scale applies to you: https://www.fhwa.dot.gov/legsregs/directives/notices/n4540-12.cfm.

State

Alaska

Arizona

Arkansas

Colorado

Idaho

Iowa

Kansas

Maine

Minnesota

Mississippi

Montana

Nebraska

Nevada

New Mexico

North Dakota

Oklahoma

Oregon

South Dakota

Utah

Vermont

West Virginia

Wyoming

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.

https://www.fhwa.dot.gov/legsregs/directives/notices/n4540-12.cfm

iii. Rural

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 40 U.S.C. § 14501 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).

v. Coronavirus State and Local Fiscal Recovery Funds (SLFRF)

Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program funds available under sections 602(c)(1)(C) and 603(c)(1)(C) of the Social Security Act (42 U.S.C §§ 802–803) may be used for the provision of government services. A recipient State or local government may use those amounts from their SLFRF funds as non-Federal share of an INFRA or Mega grant. For the applicants seeking funding from the Rural program, if the recipient’s SLFRF payment exceeded their reduction in revenue due to the emergency, the excess amounts cannot be used as non-

Federal share.

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.6

Eligible Project Types

Mega INFRA Rural

1. A highway or bridge project on the National

Multimodal Freight Network

2. A highway or bridge project on the National

Highway Freight Network

3. A highway or bridge project on the National

Highway System

4. A freight intermodal

(including public ports) or

1. A highway freight project on the National Highway

Freight Network

2. A highway or bridge project on the National

Highway System

3. A freight intermodal, freight rail, or freight project within the boundaries of a public or private freight rail, water (including ports), or

1. A highway, bridge, or tunnel project eligible under

National Highway

Performance Program

2. A highway, bridge, or tunnel project eligible under

Surface Transportation Block

Grant

3. A highway, bridge, or tunnel project eligible under

Tribal Transportation Program

6 Project sponsors should also consider using the DOT Discretionary Grant Dashboard tool that can provide lists of DOT and other agency programs based on project or applicant type: https://www.transportation.gov/grants/dashboard freight rail project that provides public benefit

5. A railway highway grade separation or elimination project

6. An intercity passenger rail project

7. A public transportation project that is eligible under assistance under Chapter 53 of title 49 and is a part of any of the project types described above intermodal facility and that is a surface transportation infrastructure project necessary to facilitate direct intermodal interchange, transfer, or access into or out of the facility*

4. A highway-railway grade crossing or grade separation project

5. A wildlife crossing project

6. A surface transportation project within the boundaries or functionally connected to an international border crossing that improves a facility owned by

Fed/State/local government and increases throughput efficiency

7. A project for a marine highway corridor that is functionally connected to the

NHFN and is likely to reduce road mobile source emissions

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

Multimodal Freight Network

4. A highway freight project eligible under National

Highway Freight Program

5. A highway safety improvement project, including a project to improve a high-risk rural road as defined by the Highway Safety

Improvement Program

6. 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

7. A project to develop, establish, or maintain an integrated mobility management system, a transportation demand management system, or on-demand mobility services

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.

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 49 U.S.C. § 70103. 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.

iii. Rural

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

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

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 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.

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.

improvements.

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. For single-year Mega awards, Mega grant funds cannot be used until

NEPA is complete.

ii. 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.

iii. 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 need to address only the requirements for the program or programs from which they are requesting funding 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.

1. Mega Project Sizes

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.

2. Mega Project Requirements

For a Mega project to be selected, the Department must determine that the project meets all six requirements described in 49 U.S.C. § 6701(f)(1) and 49 U.S.C. § 6701(g), which are further described below and in Section E.1.v.b.. If the project consists of multiple components with independent utility, the Department must determine that each component meets each requirement to select it for an award.

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.

Mega Project Requirement #6: The application includes a plan for the collection and analysis of data to identify the impacts of the project and accuracy of forecasts included in the 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 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 will they count toward the project’s required non-Federal share.

For the INFRA State Incentives 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 2022 Federal-aid apportionment if the project is located in one State;

or (3) 50 percent of the larger participating State’s FY 2022 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 2023 for single State projects. If a State is not listed, the minimum for a single state project is $100 million. All multi-State projects must meet the $100 million threshold.

State FY 23 INFRA

(30% of FY 22

FY 24 INFRA

(30% of FY 23 apportionment)

One-State Minimum

(millions) apportionment)

One-State Minimum

(millions)

Delaware $68 $69

Dist. Of Col. $64 $65

Hawaii $68 $69

Maine $74 $75

New Hampshire $66 $67

North Dakota $99 $100

Rhode Island $87 $89

Vermont $81 $83

(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.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.

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 not 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.

iii. Rural

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.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.

Rural Project Requirement #1: The project 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, as designated by the U.S. Census Bureau.8 Please note that 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 for MPDG programs. A project located in both an urban area with a population over 200,000 according to the 2020 Census, and a rural area will be designated as urban if the majority of the project’s costs will be spent in the urban area with population over 200,000. Conversely, a project located in both an urban area with population over 200,000 and a rural area will be designated as rural if the majority of the project’s costs will be spent in the rural areas. 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

7 The 2020 Census no longer utilizes the term “urbanized area” but provides designations of “urban areas” and their populations.

For the purpose of this NOFO, Census-designated “urbanized area” means Census-designated “urban area”.

8 See www.transportation.gov/grants/infra-urban-and-rural-areas for the list of urban areas with a population of 200,000 or more.

http://www.transportation.gov/grants/infra-urban-and-rural-areas 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 and according to BIL, an Area of Persistent Poverty (APP) 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 (2021) 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 decennial census; (2) the 2000 decennial census; and (3) the 2021 Small Area Income Poverty Estimates. Please note that most of these datasets utilize pre-2020 census tracts, but the Department has cross-walked those census tracts to the 2020 census tracts, and lists all current counties and census tracts that meet the definition for Areas of Persistent Poverty at https://www.transportation.gov/grants/mpdg-areas-persistent-poverty-and-historically-disadvantaged-communities. If an applicant believes their project qualifies as APP based on the pre-2020 Census tract boundaries that significantly changed and are not aligned with the cross-walked census tracts, they should provide the supporting information for the USDOT to make that determination.

Historically Disadvantaged Communities (HDC) –Consistent with the Office of https://www.transportation.gov/grants/mpdg-areas-persistent-poverty-and-historically-disadvantaged-communities https://www.transportation.gov/grants/mpdg-areas-persistent-poverty-and-historically-disadvantaged-communities

Management and Budget (OMB)’s Interim Guidance for the Justice40 Initiative and the 2023

Addendum to this Guidance, Historically Disadvantaged Communities include (1) certain qualifying census tracts identified as disadvantaged due to categories of environmental, climate, and socioeconomic burdens, and (2) any Federally Recognized Tribes or Tribal entities, whether or not they have land.9 Applicants…