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Summary of ARRA Provisions for FHWA
(Public Law 111-5)

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))

Set-asides:

• $550 million for Indian reservations and Federal lands
• $310 million for Indian Reservation Roads
• ≤ 4% ($12.4 million) may be used by DOI for management and oversight
• $170 million for Park Roads and Parkways
• $60 million for Forest Highway
• $10 million for Refuge Roads
• Priority to capital investments and to projects that can be completed within 2 years of enactment
• 1 year after enactment, can redistribute unobligated funds within respective program
• Lake Tahoe region funding does not apply
• $20 million for Highway Surface Transportation and Technology Training
• $20 million for Disadvantaged Business Enterprises bonding assistance
• $105 million for Puerto Rico Highway
• $45 million for Territorial Highway
• $60 million for construction of ferry boats and ferry terminal facilities
• Distribute as competitive discretionary grants to States
• Priority to projects that can be completed within 2 years of enactment
• ≤ $40 million for management and oversight
• Available through 09/30/2012

Distribution:

• Federal share up to 100% of cost
• 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days after apportionment, withdraw 50% of State funds less obligated amount and redistribute to States with no funds withdrawn (use August Redistribution formula)
• 1 year after apportionment, withdraw any unobligated funds and redistribute to States with no funds withdrawn (use August Redistribution formula)
• May extend 1 year period due to unworkable bidding environment or other extenuating circumstances
• Before granting extension, Secretary to send explanatory letter to House and Senate Appropriations Committees
• Funding in addition to FY 2009 and FY 2010 funds for Federal-aid highways
• Funding not subject to obligation limitations for Federal-aid highways or highway safety construction programs
• 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
• Administer Indian reservation roads and park roads and parkways as if apportioned under 23 U.S.C. Chapter 2
• Cannot be obligated for advance construction
• Disadvantaged Business Enterprises rules apply
• Funds must be apportioned no later than 21 days after enactment

Discretionary Grants (OST):

• Federal share up to 100% of cost
• ≤ $200 million for TIFIA
• For state and local governments to use on longer-range surface transportation projects (including highway, bridge, transit, rail, and port projects)
• Need to demonstrate why their projects have national, regional or metropolitan significance
• Ensure equitable geographic distribution of funds and appropriate balance between urban/rural
• Grants have to be between $20 – $300 million (inclusive)
• May waive minimum for projects in smaller areas
• ≤ 20% of total funds to single State
• Priority to projects that require additional share of Federal funds in order to complete overall financing package and that can be completed within 3 years of enactment
• Publish competitive criteria within 90 days of enactment
• Applications submitted within 180 days of enactment
• Announce selected projects within 1 year of enactment
• Wage rate requirements for public buildings apply
• ≤ $1.5 million for oversight (FHWA, FTA, FRA, MARAD)

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
• Sec. 1553 – Protect government and contractor whistleblowers
• Sec. 1554 – If possible, contracts to be awarded as fixed-price contracts through competitive procedures

General Provisions:

• Sec. 1601 – Appropriated funds are in addition to funds for FYs involved
• Sec. 1602 – Use ≥ 50% of funds for projects that can start within 120 days of bill enactment (general goal; see above for highway provisions)
• Sec. 1603 – Appropriated funds available until 09/30/2010
• Sec. 1604 – Appropriated funds cannot be used for casino, aquarium, zoo, golf course, or swimming pool
• Sec. 1605 – Use of American iron, steel, and manufactured goods
• Sec. 1606 – Laborers and mechanics to be paid prevailing wages
• Sec. 1607 – Certification by Governor and acceptance by State legislature
• Sec. 1608 – Reform of contracting procedures under ESSA to include individuals with disabilities
• Sec. 1609 – Compliance with National Environmental Policy Act requirements
• Sec. 1610 – Contracts to comply with Federal Property and Administrative Services Act and Federal Acquisition Regulation
• Sec. 1611 – Hire American workers in companies receiving TARP funds
• Sec. 1612 – Agency head may transfer ≤ 1% of funds between appropriations during current FY