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On February 17, 2009, the President signed into law the American Recovery and Reinvestment Act of 2009 (ARRA). ARRA provides $27.5 billion supplemental funding to Federal Highway Administration (FHWA) to be apportioned to the states after certain takedowns. California’s share is estimated to be $2.57 billion. FHWA has recently published ARRA Implementing Guidance, which contains detailed instruction to FHWA division offices and State DOT on the implementation of ARRA. A copy of the guidance may be downloaded from FHWA’s Economic Recovery website: http://www.fhwa.dot.gov/economicrecovery/guidance.htm .
Caltrans is committed to helping regional and local agencies deliver their projects funded with the federal economic recovery funds by providing timely guidance and information, by expediting project review and approval process. This webpage is set up to provide information related the Economic Recovery legislation and publish questions we received from local agencies and responses provided by Caltrans and FHWA CA Division.
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Below are highlights of the American Recovery and Reinvestment Act of 2009:
Funding:
- $27.5 billion as supplemental formula grants (FHWA)
- Available through 09/30/2010
- $1.5 billion for discretionary grants program (OST)
- Available through 09/30/2011
- Appropriated from General Fund
Eligibility:
- Surface Transportation Program
- Passenger and freight rail transportation and port infrastructure projects (23 U.S.C. 601(a)(8))
Distribution:
- Federal share up to 100% of cost
- Funds must be apportioned by FHWA no later than 21 days after enactment, by 3/9/2009.
- Apportion 50% using STP formula and 50% using same ratio as FY 2008 distribution of obligation limitation
- 3% TE set-aside (without regard to comparison to FY 2005)
- 30% suballocated by population according to portions under STP requirements (exempt from 120-day redistribution requirement below)
- 120 days after apportionment, withdraw 50% of State funds less obligated amount and redistribute to States with no funds withdrawn (use August Redistribution formula)
- 1 year after apportionment, withdraw any unobligated funds and redistribute to States with no funds withdrawn.
- Priority for projects that:
- Are projected for completion within 3 years
- Are located in economically distressed areas
- Administer as if apportioned under 23 U.S.C. Chapter 1
- Cannot be obligated for advance construction
- Disadvantaged Business Enterprises rules apply
Maintenance of Effort:
- Within 30 days of enactment, Governor to certify that State will maintain own funding for highway projects; identify amount of funds State plans to expend from non-Federal sources between date of enactment and 09/30/2010
- If unable to maintain level of effort certified, then State prohibited from receiving additional limitation via August Redistribution for FY 2011
Reporting:
- Amount of Federal funds appropriated, allocated, obligated, and outlayed under appropriation
- Number of projects put out to bid under appropriation and amount of Federal funds associated with them
- Number of projects for which contracts have been awarded under appropriation and amount of Federal funds associated with such contracts
- Number of projects for which work has begun under such contracts and amount of Federal funds associated with such contracts
- Number of projects for which work has been completed under such contracts and amount of Federal funds associated with such contracts
- Number of direct jobs created or sustained by Federal funds provided for projects under appropriation and (if possible) estimated indirect jobs created or sustained in associated supplying industries, including job-years and total increases
- Actual aggregate expenditures by each grant recipient from non-Federal sources for projects eligible for funding under program from enactment date through 09/30/2010, as compared to level of such expenditures that were planned to occur during such period as of enactment date
- Timing of reports – no later than 90 days after date of enactment and updated reports not later than 180 days, 1 year, 2 years, and 3 years after date of enactment
- Paperwork Reduction Act requirements do not apply to this reporting section
Transparency:
- Establish Recovery Accountability and Transparency Board
- Establish Recovery Independent Advisory Panel
- Publish plan for using funds on www.recovery.gov
- Protect government and contractor whistleblowers
General Provisions:
- Appropriated funds cannot be used for casino, aquarium, zoo, golf course, or swimming pool
- Use of American iron, steel, and manufactured goods
- Laborers and mechanics to be paid prevailing wages
- Certification by Governor and acceptance by State legislature
- Compliance with National Environmental Policy Act requirements
The questions received from local agencies and responses provided by Caltrans and FHWA CA Division have been updated based upon the ARRA signed into law by the President. If you have questions related to the implementation of the economic recovery legislation, please email them to Nancy_Phillips@dot.ca.gov.
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