[Federal Register Volume 83, Number 82 (Friday, April 27, 2018)]
[Notices]
[Pages 18651-18661]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-08906]


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DEPARTMENT OF TRANSPORTATION

Office of the Secretary of Transportation


Notice of Funding Opportunity for the Department of 
Transportation's National Infrastructure Investments Under the 
Consolidated Appropriations Act, 2018

AGENCY: Office of the Secretary of Transportation, DOT.

ACTION: Notice of funding opportunity.

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SUMMARY: The Consolidated Appropriations Act, 2018 (Pub. L. 115-141, 
March 23, 2018) (``FY 2018 Appropriations Act'' or the ``Act'') 
appropriated $1.5 billion to be awarded by the Department of 
Transportation (``DOT'' or the ``Department'') for National 
Infrastructure Investments. This appropriation stems from the program 
funded and implemented pursuant to the American Recovery and 
Reinvestment Act of 2009 (the ``Recovery Act''). This program was 
previously known as the Transportation Investment Generating Economic 
Recovery, or ``TIGER Discretionary Grants,'' program and is now known 
as the Better Utilizing Investments to Leverage Development, or ``BUILD 
Transportation Discretionary Grants,'' program. Funds for the FY 2018 
BUILD Transportation program are to be awarded on a competitive basis 
for projects that will have a significant local or regional impact. The 
purpose of this Final Notice is to solicit applications for BUILD 
Transportation Discretionary Grants.

DATES: Applications must be submitted by 8:00 p.m. E.D.T. on July 18, 
2018.

ADDRESSES: Applications must be submitted through Grants.gov.

FOR FURTHER INFORMATION CONTACT: For further information concerning 
this notice, please contact the BUILD Transportation program staff via 
email at [email protected], or call Howard Hill at 202-366-0301. A 
TDD is available for individuals who are deaf or hard of hearing at 
202-366-3993. In addition, DOT will regularly post answers to questions 
and requests for clarifications as well as information about webinars 
for further guidance on DOT's website at www.transportation.gov/BUILDgrants.

SUPPLEMENTARY INFORMATION: Many of the selection criteria of BUILD 
Transportation grants overlap with previous rounds of National 
Infrastructure Investments discretionary grants, though the program is 
refocused on infrastructure investment that will make a positive impact 
throughout the country. The FY 2018 BUILD Transportation program will 
continue to give special consideration to projects located in rural 
areas. For this round of BUILD Transportation Discretionary Grants, the 
maximum grant award is $25 million, and no more than $150 million can 
be awarded to a single State, as specified in the FY 2018 
Appropriations Act. Each section of this notice contains information 
and instructions relevant to the application process for these BUILD 
Transportation Discretionary Grants, 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
B. Federal Award Information
C. Eligibility Information
D. Application and Submission Information
E. Application Review Information
F. Federal Award Administration Information
G. Federal Awarding Agency Contacts
H. Other Information

A. Program Description

    The Consolidated Appropriations Act, 2018 (Pub. L. 115-141, March 
23, 2018) (``FY 2018 Appropriations Act'' or the ``Act'') appropriated 
$1.5 billion to be awarded by the Department of Transportation (``DOT'' 
or the ``Department'') for National Infrastructure Investments. Since 
this program was first created, $5.6 billion has been awarded for 
capital investments in surface transportation infrastructure over nine 
rounds of competitive grants. Throughout the program, these 
discretionary grant awards have supported projects that have a 
significant local or regional impact.
    The Department is committed to addressing the unmet transportation 
infrastructure needs of rural areas. Rural America is home to many of 
the nation's most critical transportation infrastructure assets, 
including 444,000 bridges, 2.98 million miles of roadways, and 30,500 
miles of Interstate highways. More than 55 percent of all public road 
miles are locally-owned rural roads. While only 19 percent of the 
nation's population lives in rural areas, 49 percent of all traffic 
fatalities occur on rural roads (2015). In addition, Americans living 
in rural areas and on Tribal lands continue to disproportionately lack 
access to basic broadband service. The Department believes that 
underinvestment in rural transportation systems has allowed a slow and 
steady decline in the transportation routes that connect rural

[[Page 18652]]

American communities to each other and to the rest of the county. New 
investment is necessary to grow rural economies, facilitate freight 
movement, improve access to reliable and affordable transportation 
options and enhance health access and safety for residents. To address 
these rural transportation infrastructure needs, DOT intends to award a 
greater share of BUILD Transportation Discretionary Grant funding to 
projects located in rural areas that align well with the selection 
criteria than to such projects in urban areas.

B. Federal Award Information

1. Amount Available

    The FY 2018 Appropriations Act appropriated $1.5 billion to be 
awarded by DOT for the BUILD Transportation program. The FY 2018 BUILD 
Transportation Discretionary Grants are for capital investments in 
surface transportation infrastructure and are to be awarded on a 
competitive basis for projects that will have a significant local or 
regional impact. Additionally, the Act allows for up to $15 million (of 
the $1.5 billion) to be awarded as grants for the planning, preparation 
or design of eligible projects. DOT is referring to any such awarded 
projects as BUILD Transportation Planning Grants. The FY 2018 
Appropriations Act also allows DOT to retain up to $25 million of the 
$1.5 billion for award, oversight and administration of grants and 
credit assistance made under the BUILD Transportation program. If this 
solicitation does not result in the award and obligation of all 
available funds, DOT may publish additional solicitations.
    The FY 2018 Appropriations Act allows up to 20 percent of available 
funds (or $300 million) to be used by the Department to pay the subsidy 
and administrative costs for a project receiving credit assistance 
under the Transportation Infrastructure Finance and Innovation Act of 
1998 (``TIFIA'') program, if that use of the FY 2018 BUILD funds would 
further the purposes of the BUILD Transportation program.

2. Award Size

    The FY 2018 Appropriations Act specifies that BUILD Transportation 
Discretionary Grants may not be less than $5 million and not greater 
than $25 million, except that for projects located in rural areas (as 
defined in Section C.3.ii.) the minimum BUILD Transportation 
Discretionary Grant size is $1 million. There is no statutory minimum 
grant size, regardless of location, for BUILD Transportation Planning 
grants.

3. Restrictions on Funding

    Pursuant to the FY 2018 Appropriations Act, no more than 10 percent 
of the funds made available for BUILD Transportation Discretionary 
Grants (or $150 million) may be awarded to projects in a single State. 
The Act also directs that not less than 30 percent of the funds 
provided for BUILD Transportation Discretionary Grants (or $450 
million) shall be used for projects located in rural areas. Further, 
DOT must take measures to ensure an equitable geographic distribution 
of grant funds, an appropriate balance in addressing the needs of urban 
and rural areas, and investment in a variety of transportation modes.

4. Availability of Funds

    The FY 2018 Appropriations Act requires that FY 2018 BUILD 
Transportation Discretionary Grants funds are only available for 
obligation through September 30, 2020. Obligation occurs when a 
selected applicant and DOT enter into a written grant agreement after 
the applicant has satisfied applicable administrative requirements, 
including transportation planning and environmental review 
requirements. All FY 2018 BUILD funds must be expended (the grant 
obligation must be liquidated or actually paid out to the grantee) by 
September 30, 2025. After this date, unliquidated funds are no longer 
available to the project. As part of the review and selection process 
described in Section E.2., DOT will consider whether a project is ready 
to proceed with an obligation of grant funds from DOT within the 
statutory time provided. No waiver is possible for these deadlines.

5. Previous TIGER Awards

    Recipients of TIGER Discretionary Grants may apply for funding to 
support additional phases of a project awarded funds in the TIGER 
program. However, to be competitive, the applicant should demonstrate 
the extent to which the previously funded project phase has been able 
to meet estimated project schedules and budget, as well as the ability 
to realize the benefits expected for the project.

C. Eligibility Information

    To be selected for a BUILD Transportation Discretionary Grant, an 
applicant must be an Eligible Applicant and the project must be an 
Eligible Project.

1. Eligible Applicants

    Eligible Applicants for BUILD Transportation Discretionary Grants 
are State, local, and tribal governments, including U.S. territories, 
transit agencies, port authorities, metropolitan planning organizations 
(MPOs), and other political subdivisions of State or local governments.
    Multiple States or jurisdictions may submit a joint application and 
must identify a lead applicant as the primary point of contact, and 
also identify the primary recipient of the award. Each applicant in a 
joint application must be an Eligible Applicant. Joint applications 
must include a description of the roles and responsibilities of each 
applicant and must be signed by each applicant.

2. Cost Sharing or Matching

    Per the FY 2018 Appropriations Act, BUILD Transportation 
Discretionary Grants may be used for up to 80 percent of a project 
located in an urban area \1\ and the Secretary may increase the Federal 
share of costs above 80 percent for a project located in a rural area. 
Urban area and rural area are defined in Section C.3.ii of this notice.
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    \1\ To meet match requirements, the minimum total project cost 
for a project located in an urban area must be $6.25 million.
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    For a project located in an urban area, the Federal share of the 
costs for which an expenditure is made under a BUILD Transportation 
grant may not exceed 80 percent. Non-Federal sources include State 
funds originating from programs funded by State revenue, local funds 
originating from State or local revenue-funded programs, or private 
funds. Toll credits under 23 U.S.C. 120(i) are considered a non-Federal 
source. Unless otherwise authorized by statute, State or local cost-
share may not be counted as the non-Federal share for both the BUILD 
Transportation grant and another Federal grant program. The Department 
will not consider previously-incurred costs or previously-expended or 
encumbered funds towards the matching requirement for any project. 
Matching funds are subject to the same Federal requirements described 
in Section F.2. as awarded funds.

3. Other

i. Eligible Projects
    Eligible projects for BUILD Transportation Discretionary Grants are 
capital projects that include, but are not limited to: (1) Highway, 
bridge, or other road projects eligible under title 23, United States 
Code; (2) public transportation projects eligible under chapter 53 of 
title 49, United States

[[Page 18653]]

Code; (3) passenger and freight rail transportation projects; (4) port 
infrastructure investments (including inland port infrastructure and 
land ports of entry); and (5) intermodal projects.\2\ The FY 2018 
Appropriations Act allows up to $15 million for the planning, 
preparation or design of projects eligible for BUILD Transportation 
funding. Activities eligible for funding under BUILD Transportation 
Planning Grants are related to the planning, preparation, or design--
including environmental analysis, feasibility studies, and other pre-
construction activities--of surface transportation projects. Research, 
demonstration, or pilot projects are eligible only if they will result 
in long-term, permanent surface transportation infrastructure that has 
independent utility as defined in Section C.3.iii. Applicants are 
strongly encouraged to submit applications only for eligible award 
amounts.
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    \2\ Please note that the Department may use a BUILD 
Transportation Discretionary Grant to pay for the surface 
transportation components of a broader project that has non-surface 
transportation components, and applicants are encouraged to apply 
for BUILD Transportation Discretionary Grants to pay for the surface 
transportation components of these projects.
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ii. Rural/Urban Definition
    For purposes of this notice, DOT defines ``rural area'' as an area 
outside an Urbanized Area \3\ (UA) as designated by the U.S. Census 
Bureau. In this notice, an ``urban area'' is defined as an area inside 
a UA as designated by the U.S. Census Bureau.\4\
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    \3\ Updated lists of UAs as defined by the Census Bureau are 
available on the Census Bureau website at http://www2.census.gov/geo/maps/dc10map/UAUC_RefMap/ua/.
    \4\ See www.transportation.gov/BUILDgrants for a list of UAs.
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    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. Costs 
incurred on an Urbanized Area border, including an intersection with an 
Urbanized Area, will be considered urban for the purposes of the FY 
2018 BUILD Transportation Program. Rural and urban definitions differ 
in some other DOT programs, including TIFIA and the Nationally 
Significant Freight and Highway Projects Program (FAST Act Sec.  1105; 
23 U.S.C. 117).
    This definition affects three aspects of the program. The FY 2018 
Appropriations Act directs that (1) not less than $450 million of the 
funds provided for BUILD Transportation Discretionary grants are to be 
used for projects in rural areas; (2) for a project in a rural area the 
minimum award is $1 million; and (3) the Secretary may increase the 
Federal share above 80 percent to pay for the costs of a project in a 
rural area.
iii. Project Components
    An application may describe a project that contains more than one 
component, and may describe components that may be carried out by 
parties other than the applicant. DOT may award funds for a component, 
instead of the larger project, if that component (1) independently 
meets minimum award amounts described in Section B and all eligibility 
requirements described in Section C; (2) independently aligns well with 
the selection criteria specified in Section E; and (3) meets National 
Environmental Policy Act (NEPA) requirements with respect to 
independent utility. Independent utility means that the component will 
represent a transportation improvement that is usable and represents a 
reasonable expenditure of DOT funds even if no other improvements are 
made in the area, and will be ready for intended use upon completion of 
that component's construction. All project components that are 
presented together in a single application must demonstrate a 
relationship or connection between them. (See Section D.2.iv. for 
Required Approvals).
    Applicants should be aware that, depending upon the relationship 
between project components and applicable Federal law, DOT funding of 
only some project components may make other project components subject 
to Federal requirements as described in Section F.2.
    DOT strongly encourages applicants to identify in their 
applications the project components that have independent utility and 
separately detail costs and requested BUILD Transportation funding for 
those components. If the application identifies one or more independent 
project components, the application should clearly identify how each 
independent component addresses selection criteria and produces 
benefits on its own, in addition to describing how the full proposal of 
which the independent component is a part addresses selection criteria.
iv. Application Limit
    Each lead applicant may submit no more than three applications. 
Unrelated project components should not be bundled in a single 
application for the purpose of adhering to the limit. If a lead 
applicant submits more than three applications as the lead applicant, 
only the first three received will be considered.
v. Program of Projects
    Applicants that demonstrate the ability to generate additional non-
Federal revenue for transportation infrastructure investment as 
described in Section E.1.i.h. of this notice may apply for multiple 
projects, exceeding the three application limit, that collectively 
constitute a ``program of projects''. A program of projects consists of 
independent projects that address the same transportation challenge and 
whose combined benefits, including funding efficiency, are greater than 
if the projects are completed individually. For a program of projects, 
applicants must submit an application for each project within the 
program and describe how each project constitutes a program. Each 
project application within a program of projects must meet eligibility 
criteria described in Section C of this notice, demonstrate independent 
utility, and individually address the merit criteria within this 
notice. DOT will evaluate each application within a program of projects 
in the same manner in which it evaluates individual project 
applications. Each project within a program of projects is subject to 
the $25 million award maximum and total awards cannot exceed $150 
million per State. Only applicants that generate additional non-Federal 
revenue as described in Section E.1.i.h. may submit applications 
exceeding the three application limit for consideration as a program of 
projects, and only one program of projects may be submitted by each 
eligible applicant.

D. Application and Submission Information

1. Address

    Applications must be submitted to Grants.gov. Instructions for 
submitting applications can be found at www.transportation.gov/BUILDgrants along with specific instructions for the forms and 
attachments required for submission.

2. Content and Form of Application Submission

    The application must include the Standard Form 424 (Application for 
Federal Assistance), Standard Form 424C (Budget Information for 
Construction Programs), cover page, and the Project Narrative. More 
detailed information about the Project Narrative follows. Applicants 
should also complete and attach to their application the ``BUILD 2018 
Project Information''

[[Page 18654]]

form available at www.transportation.gov/BUILDgrants.
    The Department recommends that the project narrative follow the 
basic outline below to address the program requirements and assist 
evaluators in locating relevant information.

I. Project Description........  See D.2.i.
II. Project Location..........  See D.2.ii.
III. Grant Funds, Sources and   See D.2.iii.
 Uses of all Project Funding.
IV. Merit Criteria............  See D.2.iv.(1).
V. Project Readiness..........  See D.2.iv.(2) and E.1.ii.
 

    The project narrative should include the information necessary for 
the Department to determine that the project satisfies project 
requirements described in Sections B and C and to assess the selection 
criteria specified in Section E.1. To the extent practicable, 
applicants should provide supporting data and documentation in a form 
that is directly verifiable by the Department. The Department may ask 
any applicant to supplement data in its application, but expects 
applications to be complete upon submission.
    In addition to a detailed statement of work, detailed project 
schedule, and detailed project budget, the project narrative should 
include a table of contents, maps and graphics, as appropriate, to make 
the information easier to review. The Department recommends that the 
project narrative be prepared with standard formatting preferences (a 
single-spaced document, using a standard 12-point font such as Times 
New Roman, with 1-inch margins). The project narrative may not exceed 
30 pages in length, excluding cover pages and table of contents. The 
only substantive portions that may exceed the 30-page limit are 
documents supporting assertions or conclusions made in the 30-page 
project narrative. If possible, website links to supporting 
documentation should be provided rather than copies of these supporting 
materials. If supporting documents are submitted, applicants should 
clearly identify within the project narrative the relevant portion of 
the project narrative that each supporting document supports. At the 
applicant's discretion, relevant materials provided previously to an 
operating administration in support of a different DOT financial 
assistance program may be referenced and described as unchanged. The 
Department recommends using appropriately descriptive file names (e.g., 
``Project Narrative,'' ``Maps,'' ``Memoranda of Understanding and 
Letters of Support,'' etc.) for all attachments. DOT recommends 
applications include the following sections:
i. Project Description
    The first section of the application should provide a concise 
description of the project, the transportation challenges that it is 
intended to address, and how it will address those challenges. This 
section should discuss the project's history, including a description 
of any previously completed components. The applicant may use this 
section to place the project into a broader context of other 
transportation infrastructure investments being pursued by the project 
sponsor, and, if applicable, how it will benefit communities in rural 
areas.
ii. Project Location
    This section of the application should describe the project 
location, including a detailed geographical description of the proposed 
project, a map of the project's location and connections to existing 
transportation infrastructure, and geospatial data describing the 
project location. If the project is located within the boundary of a 
Census-designated UA, the application should identify the UA.
iii. Grant Funds, Sources and Uses of Project Funds
    This section of the application should describe the project's 
budget. This budget should not include any previously incurred 
expenses. At a minimum, it should include:
    (A) Project costs;
    (B) For all funds to be used for eligible project costs, the source 
and amount of those funds;
    (C) For non-Federal funds to be used for eligible project costs, 
documentation of funding commitments should be referenced here and 
included as an appendix to the application;
    (D) For Federal funds to be used for eligible project costs, the 
amount, nature, and source of any required non-Federal match for those 
funds;
    (E) A budget showing how each source of funds will be spent. The 
budget should show how each funding source will share in each major 
construction activity, and present that data in dollars and 
percentages. Funding sources should be grouped into three categories: 
non-Federal; BUILD; and other Federal. If the project contains 
individual components, the budget should separate the costs of each 
project component. If the project will be completed in phases, the 
budget should separate the costs of each phase. The budget detail 
should sufficiently demonstrate that the project satisfies the 
statutory cost-sharing requirements described in Section C.2;
    In addition to the information enumerated above, this section 
should provide complete information on how all project funds may be 
used. For example, if a particular source of funds is available only 
after a condition is satisfied, the application should identify that 
condition and describe the applicant's control over whether it is 
satisfied. Similarly, if a particular source of funds is available for 
expenditure only during a fixed time period, the application should 
describe that restriction. Complete information about project funds 
will ensure that the Department's expectations for award execution 
align with any funding restrictions unrelated to the Department, even 
if an award differs from the applicant's request.
iv. Criteria
    This section of the application should demonstrate how the project 
aligns with the Criteria described in Section E.1 of this notice. The 
Department encourages applicants to either address each criterion or 
expressly state that the project does not address the criterion. 
Applicants are not required to follow a specific format, but the 
outline suggested below, which addresses each criterion separately, 
promotes a clear discussion that assists project evaluators. To 
minimize redundant information in the application, the Department 
encourages applicants to cross-reference from this section of their 
application to relevant substantive information in other sections of 
the application. The guidance in this section is about how the 
applicant should organize their application. Guidance describing how 
the Department will evaluate projects against the Merit Criteria is in 
Section E.1 of this notice. Applicants also should review that section 
before

[[Page 18655]]

considering how to organize their application.
(1) Merit Criteria
(a) Safety
    This section of the application should describe the anticipated 
outcomes of the project that support the Safety criterion (described in 
Section E.1.i.(a) of this notice). The applicant should include 
information on, and to the extent possible, quantify, how the project 
would improve safety outcomes within the project area or wider 
transportation network, to include how the project will reduce the 
number, rate, and consequences of transportation-related accidents, 
serious injuries, and fatalities among transportation users, or how the 
project will eliminate unsafe grade crossings or contribute to 
preventing unintended releases of hazardous materials.
(b) State of Good Repair
    This section of the application should describe how the project 
will contribute to a state of good repair by improving the condition or 
resilience of existing transportation facilities and systems (described 
in Section E.1.i.(b) of this notice), including the project's current 
condition and how the proposed project will improve it, and any 
estimation of impacts on long-term cost structures or impacts on 
overall life-cycle costs. If the project will contribute to a state of 
good repair of transportation infrastructure that supports border 
security, the applicant should describe how.
(c) Economic Competitiveness
    This section of the application should describe how the project 
will support the Economic Competitiveness criterion (described in 
Section E.1.i.(c) of this notice). The applicant should include 
information about expected impacts of the project on the movement of 
goods and people, including how the project increases the efficiency of 
movement and thereby reduces costs of doing business, improves local 
and regional freight connectivity to the national and global economy, 
reduces burdens of commuting, and improves overall well-being. The 
applicant should describe the extent to which the project contributes 
to the functioning and growth of the economy, including the extent to 
which the project addresses congestion or freight connectivity, bridges 
service gaps in rural areas, or promotes the expansion of private 
economic development.
(d) Environmental Protection
    This section of the application should describe how the project 
addresses the environmental protection criterion (described in Section 
E.1.i.(d) of this notice). Applicants are encouraged to provide 
quantitative information, including baseline information that 
demonstrates how the project will reduce energy consumption, stormwater 
runoff, or achieve other benefits for the environment such as 
brownfield redevelopment.
(e) Quality of Life
    This section should describe how the project increases 
transportation choices for individuals, expands access to essential 
services for people in communities across the United States, improves 
connectivity for citizens to jobs, health care, and other critical 
destinations, particularly for rural communities, or otherwise 
addresses the quality of life criterion (described in Section E.1.i.(e) 
of this notice). If construction of the transportation project will 
allow concurrent installation of fiber or other broadband deployment as 
an essential service, the applicant should describe those activities 
and how they support quality of life. Unless the concurrent activities 
support transportation, they will not be eligible for reimbursement.
(f) Innovation
    This section of the application should describe innovative 
strategies used and the anticipated benefits of using those strategies, 
including those corresponding to three categories (described in Section 
E.1.i.(f) of this notice): (i) Innovative Technologies, (ii) Innovative 
Project Delivery, or (iii) Innovative Financing.
(i) Innovative Technologies
    If an applicant is proposing to adopt innovative safety approaches 
or technology, the application should demonstrate the applicant's 
capacity to implement those innovations, the applicant's understanding 
of whether the innovations will require extraordinary permitting, 
approvals, or other procedural actions, and the effects of those 
innovations on the project delivery timeline.
(ii) Innovative Project Delivery
    If an applicant plans to use innovative approaches to project 
delivery, applicants should describe those project delivery methods and 
how they are expected to improve the efficiency of the project 
development or expedite project delivery.
    If an applicant is proposing to use SEP-14 or SEP-15 (as described 
in section E.1.i.(f) of this notice) the applicant should describe that 
proposal. The applicant should also provide sufficient information for 
evaluators to confirm that the applicant's proposal would meet the 
requirements of the specific experimental authority program.\5\
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    \5\ SEP-14 information is available at https://www.fhwa.dot.gov/programadmin/contracts/sep_a.cfm. SEP-15 information is available at 
https://www.fhwa.dot.gov/ipd/p3/tools_programs/sep15_procedures.aspx.
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(iii) Innovative Financing
    If an applicant plans to incorporate innovative funding or 
financing, the applicant should describe the funding or financing 
approach, including a description of all activities undertaken to 
pursue private funding or financing for the project and the outcomes of 
those activities.
(g) Partnership
    This section of the application should include information to 
assess the partnership criterion (described in Section E.1.i.(g) of 
this notice) including a list of all project parties and details about 
the proposed grant recipient and other public and private parties who 
are involved in delivering the project. This section should also 
describe efforts to collaborate among stakeholders, including with the 
private sector.
(h) Non-Federal Revenue for Transportation Infrastructure Investment
    If an applicant generates additional non-Federal revenue (as 
described in Section E.1.i.(h) of this notice), this section should 
provide evidence of newly secured and committed revenue for 
transportation infrastructure investments and identify the source of 
the revenue. If new revenue for transportation infrastructure 
investments has not already been secured, the applicant should explain 
necessary steps to securing revenue and provide a timeline of key 
milestones leading to its commitment. To ensure new revenue does not 
supplant existing sources, applications should provide estimates of 
future revenue levels absent and, separately, with the new revenue. If 
applicable, this section should describe any fiscal or legal 
constraints that affect the applicant's ability to generate non-Federal 
revenue.
(2) Project Readiness
    This section of the application should include information that, 
when considered with the project budget information presented elsewhere 
in the application, is sufficient for the Department to evaluate 
whether the project is reasonably expected to begin

[[Page 18656]]

construction in a timely manner. To assist the Department's project 
readiness assessment, the applicant should provide the information 
requested on technical feasibility, project schedule, project 
approvals, and project risks, each of which is described in greater 
detail in the following sections. Applicants are not required to follow 
the specific format described here, but this organization, which 
addresses each relevant aspect of project readiness, promotes a clear 
discussion that assists project evaluators. To minimize redundant 
information in the application, the Department encourages applicants to 
cross-reference from this section of their application to relevant 
substantive information in other sections of the application.
    The guidance here is about what information applicants should 
provide and how the applicant should organize their application. 
Guidance describing how the Department will evaluate a project's 
readiness is described in Section E.1.ii of this notice. Applicants 
also should review that section when considering how to organize their 
application.
(a) Technical Feasibility
    The applicant should demonstrate the technical feasibility of the 
project with engineering and design studies and activities; the 
development of design criteria and/or a basis of design; the basis for 
the cost estimate presented in the BUILD application, including the 
identification of contingency levels appropriate to its level of 
design; and any scope, schedule, and budget risk-mitigation measures. 
Applicants should include a detailed statement of work that focuses on 
the technical and engineering aspects of the project and describes in 
detail the project to be constructed.
(b) Project Schedule
    The applicant should include a detailed project schedule that 
identifies all major project milestones. Examples of such milestones 
include State and local planning approvals (programming on the 
Statewide Transportation Improvement Program); start and completion of 
NEPA and other Federal environmental reviews and approvals including 
permitting; design completion; right of way acquisition; approval of 
plans, specifications and estimates; procurement; State and local 
approvals; project partnership and implementation agreements, including 
agreements with railroads; and construction. The project schedule 
should be sufficiently detailed to demonstrate that:
    (1) All necessary activities will be complete to allow BUILD 
Transportation funds to be obligated sufficiently in advance of the 
statutory deadline (September 30, 2020 for FY 2018 funds), and that any 
unexpected delays will not put the funds at risk of expiring before 
they are obligated;
    (2) the project can begin construction quickly upon obligation of 
BUILD Transportation funds, and that the grant funds will be spent 
expeditiously once construction starts, with all BUILD Transportation 
funds expended by September 30, 2025; and
    (3) all real property and right-of-way acquisition will be 
completed in a timely manner in accordance with 49 CFR part 24, 23 CFR 
part 710, and other applicable legal requirements or a statement that 
no acquisition is necessary.
(c) Required Approvals
    (1) Environmental Permits and Reviews. The application should 
demonstrate receipt (or reasonably anticipated receipt) of all 
environmental approvals and permits necessary for the project to 
proceed to construction on the timeline specified in the project 
schedule and necessary to meet the statutory obligation deadline, 
including satisfaction of all Federal, State and local requirements and 
completion of the NEPA process. Specifically, the application should 
include:
    (a) Information about the NEPA status of the project. If the NEPA 
process is complete, an applicant should indicate the date of 
completion, and provide a website link or other reference to the final 
Categorical Exclusion, Finding of No Significant Impact, Record of 
Decision, and any other NEPA documents prepared. If the NEPA process is 
underway, but not complete, the application should detail the type of 
NEPA review underway, where the project is in the process, and indicate 
the anticipated date of completion of all milestones and of the final 
NEPA determination. If the last agency action with respect to NEPA 
documents occurred more than three years before the application date, 
the applicant should describe why the project has been delayed and 
include a proposed approach for verifying and, if necessary, updating 
this material in accordance with applicable NEPA requirements.
    (b) Information on reviews, approvals, and permits by other 
agencies. An application should indicate whether the proposed project 
requires reviews or approval actions by other agencies,\6\ indicate the 
status of such actions, and provide detailed information about the 
status of those reviews or approvals and should demonstrate compliance 
with any other applicable Federal, State or local requirements, and 
when such approvals are expected. Applicants should provide a website 
link or other reference to copies of any reviews, approvals, and 
permits prepared.
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    \6\ Projects that may impact protected resources such as 
wetlands, species habitat, cultural or historic resources require 
review and approval by Federal and State agencies with jurisdiction 
over those resources.
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    (c) Environmental studies or other documents, preferably through a 
website link, that describe in detail known project impacts, and 
possible mitigation for those impacts.
    (d) A description of discussions with the appropriate DOT operating 
administration field or headquarters office regarding the project's 
compliance with NEPA and other applicable Federal environmental reviews 
and approvals.
    (e) A description of public engagement about the project that has 
occurred, including details on the degree to which public comments and 
commitments have been integrated into project development and design.
    (2) State and Local Approvals. The applicant should demonstrate 
receipt of State and local approvals on which the project depends, such 
as State and local environmental and planning approvals and Statewide 
Transportation Improvement Program (STIP) or (Transportation 
Improvement Program) TIP funding. Additional support from relevant 
State and local officials is not required; however, an applicant should 
demonstrate that the project has broad public support.
    (3) Federal Transportation Requirements Affecting State and Local 
Planning. The planning requirements applicable to the relevant 
operating administration apply to all BUILD Transportation projects,\7\ 
including

[[Page 18657]]

intermodal projects located at airport facilities.\8\ Applicants should 
demonstrate that a project that is required to be included in the 
relevant State, metropolitan, and local planning documents has been or 
will be included in such documents. If the project is not included in a 
relevant planning document at the time the application is submitted, 
the applicant should submit a statement from the appropriate planning 
agency that actions are underway to include the project in the relevant 
planning document.
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    \7\ Under 23 U.S.C. 134 and Sec.  135, all projects requiring an 
action by FHWA must be in the applicable plan and programming 
documents (e.g., metropolitan transportation plan, transportation 
improvement program (TIP) and statewide transportation improvement 
program (STIP)). Further, in air quality non-attainment and 
maintenance areas, all regionally significant projects, regardless 
of the funding source, must be included in the conforming 
metropolitan transportation plan and TIP. Inclusion in the STIP is 
required under certain circumstances. To the extent a project is 
required to be on a metropolitan transportation plan, TIP, and/or 
STIP, it will not receive a BUILD Transportation grant until it is 
included in such plans. Projects not currently included in these 
plans can be amended by the State and MPO. Projects that are not 
required to be in long range transportation plans, STIPs, and TIPs 
will not need to be included in such plans in order to receive a 
BUILD Transportation grant. Port, freight rail, and intermodal 
projects are not required to be on the State Rail Plans called for 
in the Passenger Rail Investment and Improvement Act of 2008, or in 
a State Freight Plan as described in the FAST Act. However, 
applicants seeking funding for freight projects are encouraged to 
demonstrate that they have done sufficient planning to ensure that 
projects fit into a prioritized list of capital needs and are 
consistent with long-range goals. Means of demonstrating this 
consistency would include whether the project is in a TIP or a State 
Freight Plan that conforms to the requirements Section 70202 of 
Title 49 prior to the start of construction. Port planning 
guidelines are available at StrongPorts.gov.
    \8\ Projects at grant obligated airports must be compatible with 
the FAA-approved Airport Layout Plan, as well as aeronautical 
surfaces associated with the landing and takeoff of aircraft at the 
airport. Additionally, projects at an airport: Must comply with 
established Sponsor Grant Assurances, including (but not limited to) 
requirements for non-exclusive use facilities, consultation with 
users, consistency with local plans including development of the 
area surrounding the airport, and consideration of the interest of 
nearby communities, among others; and must not adversely affect the 
continued and unhindered access of passengers to the terminal.
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    To the extent possible, freight projects should be included in a 
State Freight Plan and supported by a State Freight Advisory Committee 
(49 U.S.C. 70201, 70202), if these exist. Applicants should provide 
links or other documentation supporting this consideration.
    Because projects have different schedules, the construction start 
date for each BUILD Transportation grant must be specified in the 
project-specific agreements signed by relevant operating administration 
and the grant recipients, based on critical path items that applicants 
identify in the application and will be consistent with relevant State 
and local plans.
(d) Assessment of Project Risks and Mitigation Strategies
    Project risks, such as procurement delays, environmental 
uncertainties, increases in real estate acquisition costs, uncommitted 
local match, or lack of legislative approval, affect the likelihood of 
successful project start and completion. The applicant should identify 
all material risks to the project and the strategies that the lead 
applicant and any project partners have undertaken or will undertake in 
order to mitigate those risks. The applicant should assess the greatest 
risks to the project and identify how the project parties will mitigate 
those risks.
    To the extent it is unfamiliar with the Federal program, the 
applicant should contact the appropriate DOT operating administration 
field or headquarters offices, as found in contact information at 
www.transportation.gov/BUILDgrants, for information on the pre-
requisite steps to obligate Federal funds in order to ensure that their 
project schedule is reasonable and that there are no risks of delays in 
satisfying Federal requirements.
    BUILD Transportation Planning Grant applicants should describe 
their capacity to successfully implement the proposed activities in a 
timely manner.
(3) Benefit Cost Analysis
    This section describes the recommended approach for the completion 
and submission of a benefit-cost analysis (BCA) as an appendix to the 
Project Narrative. The results of the analysis should be summarized in 
the Project Narrative directly, as described in Section D.2.
    Applicants should delineate each of their project's expected 
outcomes in the form of a complete BCA to enable the Department to 
evaluate the project's cost-effectiveness by estimating a benefit-cost 
ratio and calculating the magnitude of net benefits and costs for the 
project. In support of each project for which an applicant seeks 
funding, that applicant should submit a BCA that quantifies the 
expected benefits of the project against a no-build baseline, provides 
monetary estimates of the benefits' economic value, and compares the 
properly-discounted present values of these benefits to the project's 
estimated costs.
    The primary economic benefits from projects eligible for BUILD 
Transportation Grants are likely to include savings in travel time 
costs, vehicle operating costs, and safety costs for both existing 
users of the improved facility and new users who may be attracted to it 
as a result of the project. Reduced damages from vehicle emissions and 
savings in maintenance costs to public agencies may also be quantified. 
Applicants may describe other categories of benefits in the BCA that 
are more difficult to quantify and value in economic terms, such as 
improving the reliability of travel times or improvements to the 
existing human and natural environments (such as increased 
connectivity, improved public health, storm water runoff mitigation, 
and noise reduction), while also providing numerical estimates of the 
magnitude and timing of each of these additional impacts wherever 
possible. Any benefits claimed for the project, both quantified and 
unquantified, should be clearly tied to the expected outcomes of the 
project.
    The BCA should include the full costs of developing, constructing, 
operating, and maintaining the proposed project, as well as the 
expected timing or schedule for costs in each of these categories. The 
BCA may also consider the present discounted value of any remaining 
service life of the asset at the end of the analysis period. The costs 
and benefits that are compared in the BCA should also cover the same 
project scope.
    The BCA should carefully document the assumptions and methodology 
used to produce the analysis, including a description of the baseline, 
the sources of data used to project the outcomes of the project, and 
the values of key input parameters. Applicants should provide all 
relevant files used for their BCA, including any spreadsheet files and 
technical memos describing the analysis (whether created in-house or by 
a contractor). The spreadsheets and technical memos should present the 
calculations in sufficient detail and transparency to allow the 
analysis to be reproduced by DOT evaluators. Detailed guidance for 
estimating some types of quantitative benefits and costs, together with 
recommended economic values for converting them to dollar terms and 
discounting to their present values, are available in the Department's 
guidance for conducting BCAs for projects seeking funding under the 
BUILD Transportation program (see www.transportation.gov/BUILDgrants/additional-guidance).

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

    Each applicant must: (1) Be registered in SAM before submitting its 
application; (2) provide a valid unique entity identifier in its 
application; and (3) continue to maintain an active SAM registration 
with current information at all times during which it has an active 
Federal award or an application or plan under consideration by a 
Federal awarding agency. The Department may not make a BUILD 
Transportation grant to an applicant until the applicant has complied 
with all applicable unique entity identifier and SAM requirements and, 
if an applicant has not fully complied with the requirements by the 
time the Department is ready to make a BUILD Transportation grant, the 
Department may determine that the applicant is not qualified to receive 
a BUILD Transportation grant and use that determination as a basis for 
making

[[Page 18658]]

a BUILD Transportation grant to another applicant.

4. Submission Dates and Times

i. Deadline
    Applications must be submitted by 8:00 p.m. E.D.T. on July 18, 
2018. The Grants.gov ``Apply'' function will open by June 3, 2018.
    To submit an application through Grants.gov, applicants must:
    (1) Obtain a Data Universal Numbering System (DUNS) number;
    (2) Register with the System for Award Management (SAM) at 
www.SAM.gov;
    (3) Create a Grants.gov username and password; and
    (4) The E-Business Point of Contact (POC) at the applicant's 
organization must respond to the registration email from Grants.gov and 
login at Grants.gov to authorize the applicant as the Authorized 
Organization Representative (AOR). Please note that there can be more 
than one AOR for an organization.
    Please note that the Grants.gov registration process usually takes 
2-4 weeks to complete and that the Department will not consider late 
applications that are the result of failure to register or comply with 
Grants.gov applicant requirements in a timely manner. For information 
and instruction on each of these processes, please see instructions at 
http://www.grants.gov/web/grants/applicants/applicant-faqs.html. If 
applicants experience difficulties at any point during the registration 
or application process, please call the Grants.gov Customer Service 
Support Hotline at 1(800) 518-4726, Monday-Friday from 7:00 a.m. to 
9:00 p.m. EST.
ii. Consideration of Applications
    Only applicants who comply with all submission deadlines described 
in this notice and electronically submit valid applications through 
Grants.gov will be eligible for award. Applicants are strongly 
encouraged to make submissions in advance of the deadline.
iii. Late Applications
    Applicants experiencing technical issues with Grants.gov that are 
beyond the applicant's control must contact [email protected] prior 
to the application deadline with the user name of the registrant and 
details of the technical issue experienced. The applicant must provide:
    (1) Details of the technical issue experienced;
    (2) Screen capture(s) of the technical issues experienced along 
with corresponding Grants.gov ``Grant tracking number'';
    (3) The ``Legal Business Name'' for the applicant that was provided 
in the SF-424;
    (4) The AOR name submitted in the SF-424;
    (5) The DUNS number associated with the application; and
    (6) The Grants.gov Help Desk Tracking Number.
    To ensure a fair competition of limited discretionary funds, the 
following conditions are not valid reasons to permit late submissions: 
(1) Failure to complete the registration process before the deadline; 
(2) failure to follow Grants.gov instructions on how to register and 
apply as posted on its website; (3) failure to follow all instructions 
in this notice of funding opportunity; and (4) technical issues 
experienced with the applicant's computer or information technology 
environment. After the Department reviews all information submitted and 
contact the Grants.gov Help Desk to validate reported technical issues, 
DOT staff will contact late applicants to approve or deny a request to 
submit a late application through Grants.gov. If the reported technical 
issues cannot be validated, late applications will be rejected as 
untimely.

E. Application Review Information

1. Criteria

    This section specifies the criteria that DOT will use to evaluate 
and award applications for BUILD Transportation Discretionary Grants. 
The criteria incorporate the statutory eligibility requirements for 
this program, which are specified in this notice as relevant. Projects 
will also be evaluated for demonstrated project readiness and benefits 
and costs.
i. Merit Criteria
    Applications that do not demonstrate a likelihood of significant 
long-term benefits based on these criteria will not proceed in the 
evaluation process. DOT does not consider any merit criterion more 
important than the others. BUILD Transportation Planning Grant 
applications will be evaluated against the same criteria as capital 
grant applications. While the FY 2018 Appropriations Act allows funding 
solely for pre-construction activities, the Department will prioritize 
FY 2018 BUILD Transportation funding for projects which demonstrate the 
ability to move into the construction phase within the period of 
obligation. The selection criteria, which will receive equal 
consideration, are:
(a) Safety
    The Department will assess the project's ability to foster a safe 
transportation system for the movement of goods and people. The 
Department will consider the projected impacts on the number, rate, and 
consequences of crashes, fatalities and injuries among transportation 
users; the project's contribution to the elimination of highway/rail 
grade crossings, or the project's contribution to preventing unintended 
releases of hazardous materials.
(b) State of Good Repair
    The Department will assess whether and to what extent: (1) The 
project is consistent with relevant plans to maintain transportation 
facilities or systems in a state of good repair and address current and 
projected vulnerabilities; (2) if left unimproved, the poor condition 
of the asset will threaten future transportation network efficiency, 
mobility of goods or accessibility and mobility of people, or economic 
growth; (3) the project is appropriately capitalized up front and uses 
asset management approaches that optimize its long-term cost structure; 
(4) a sustainable source of revenue is available for operations and 
maintenance of the project and the project will reduce overall life-
cycle costs; (5) maintain or improve transportation infrastructure that 
supports border security functions; and (6) the project includes a plan 
to maintain the transportation infrastructure in a state of good 
repair. The Department will prioritize projects that ensure the good 
condition of transportation infrastructure, including rural 
transportation infrastructure, that support commerce and economic 
growth.
(c) Economic Competitiveness
    The Department will assess whether the project will (1) decrease 
transportation costs and improve access, especially for rural 
communities, through reliable and timely access to employment centers 
and job opportunities; (2) improve long-term efficiency, reliability or 
costs in the movement of workers or goods; (3) increase the economic 
productivity of land, capital, or labor; (4) result in long-term job 
creation and other economic opportunities; or (5) help the United 
States compete in a global economy by facilitating efficient and 
reliable freight movement.
    Projects that address congestion in major urban areas, particularly 
those that do so through the use of congestion

[[Page 18659]]

pricing or the deployment of advanced technology, projects that bridge 
gaps in service in rural areas, and projects that attract private 
economic development, all support local or regional economic 
competitiveness.
(d) Environmental Protection
    The Department will consider the extent to which the project 
improves energy efficiency, reduces dependence on oil, reduces 
congestion-related emissions, improves water quality, avoids and 
mitigates environmental impacts and otherwise benefits the environment, 
including through alternative right of way uses demonstrating 
innovative ways to improve or streamline environmental reviews while 
maintaining the same outcomes. The Department will assess the project's 
ability to: (i) Reduce energy use and air or water pollution through 
congestion mitigation strategies; (ii) avoid adverse environmental 
impacts to air or water quality, wetlands, and endangered species; or 
(iii) provide environmental benefits, such as brownfield redevelopment, 
ground water recharge in areas of water scarcity, wetlands creation or 
improved habitat connectivity, and stormwater mitigation.
(e) Quality of Life
    The Department will consider the extent to which the project: (i) 
Increases transportation choices for individuals to provide more 
freedom on transportation decisions; (ii) expands access to essential 
services for communities across the United States, particularly for 
rural communities; and (iii) improves connectivity for citizens to 
jobs, health care, and other critical destinations, particularly for 
rural communities. Americans living in rural areas and on Tribal lands 
continue to disproportionately lack access and connectivity, and the 
Department will consider whether and the extent to which the 
construction of the transportation project will allow concurrent 
installation of fiber or other broadband deployment as an essential 
service.
(f) Innovation
    The Department will assess the extent to which the applicant uses 
innovative strategies, including: (i) Innovative technologies, (ii) 
innovative project delivery, or (iii) innovative financing.
(i) Innovative Technologies
    DOT will assess innovative approaches to transportation safety, 
particularly in relation to automated vehicles and the detection, 
mitigation, and documentation of safety risks. When making BUILD 
Transportation award decisions, the Department will consider any 
innovative safety approaches proposed by the applicant, particularly 
projects which incorporate innovative design solutions, enhance the 
environment for automated vehicles, or use technology to improve the 
detection, mitigation, and documentation of safety risks. Innovative 
safety approaches may include, but are not limited to:
     Conflict detection and mitigation technologies (e.g., 
intersection alerts and signal prioritization);
     Dynamic signaling or pricing systems to reduce congestion;
     Signage and design features that facilitate autonomous or 
semi-autonomous vehicle technologies;
     Applications to automatically capture and report safety-
related issues (e.g., identifying and documenting near-miss incidents); 
and
     Cybersecurity elements to protect safety-critical systems.
    For innovative safety proposals, the Department will evaluate 
safety benefits that those approaches could produce and the broader 
applicability of the potential results. DOT will also assess the extent 
to which the project uses innovative technology that supports surface 
transportation to significantly enhance the operational performance of 
the transportation system.
    Innovative technologies include: broadband deployment and the 
installation of high-speed networks concurrent with the project 
construction; connecting Intelligent Transportation System (ITS) 
infrastructure; and providing direct fiber connections that support 
surface transportation to public and private entities, which can 
provide a platform and catalyst for growth of rural communities. The 
Department will consider whether and the extent to which the 
construction of the transportation project will allow concurrent 
broadband deployment and the installation of high-speed networks.
(ii) Innovative Project Delivery
    DOT will consider the extent to which the project utilizes 
innovative practices in contracting, congestion management, asset 
management, or long-term operations and maintenance.
    The Department also seeks projects that employ innovative 
approaches to improve the efficiency and effectiveness of the 
environmental permitting and review to accelerate project delivery and 
achieve improved outcomes for communities and the environment. The 
Department's objective is to achieve timely and consistent 
environmental review and permit decisions. Participation in innovative 
project delivery approaches will not remove any statutory requirements 
affecting project delivery. While BUILD Transportation award recipients 
are not required to employ innovative approaches, the Department 
encourages BUILD Transportation applicants to describe innovative 
project delivery methods for proposed projects.
    Additionally, DOT is interested in projects that apply innovative 
strategies to improve the efficiency of project development or expedite 
project delivery by using FHWA's Special Experimental Project No. 14 
(SEP-14) and Special Experimental Project No. 15 (SEP-15). Under SEP-14 
and SEP-15, FHWA may waive statutory and regulatory requirements under 
title 23 on a project-by-project basis to explore innovative processes 
that could be adopted through legislation. This experimental authority 
is available to test changes that would improve the efficiency of 
project delivery in a manner that is consistent with the purposes 
underlying existing requirements; it is not available to frustrate the 
purposes of existing requirements.
    When making BUILD Transportation award decisions, the Department 
will consider the applicant's proposals to use SEP-14 or SEP-15, 
whether the proposals are consistent with the objectives and 
requirements of those programs, the potential benefits that 
experimental authorities or waivers might provide to the project, and 
the broader applicability of potential results. The Department is not 
replacing the application processes for SEP-14 or SEP-15 with this 
notice or the BUILD Transportation program application. Instead, it 
seeks detailed expressions of interest in those programs. If selected 
for an BUILD Transportation award, the applicant would need to satisfy 
the relevant programs' requirements and complete the appropriate 
application processes. Selection for a BUILD Transportation award does 
not mean a project's SEP-14 or SEP-15 proposal has been approved. The 
Department will make a separate determination in accordance with those 
programs' processes on the appropriateness of a waiver.
(iii) Innovative Financing
    DOT will assess the extent to which the project incorporates 
innovations in transportation funding and finance through both 
traditional and innovative means, including by using private sector 
funding or financing and recycled

[[Page 18660]]

revenue from the competitive sale or lease of publicly owned or 
operated assets.
(g) Partnership
    The Department will consider the extent to which projects 
demonstrate strong collaboration among a broad range of stakeholders. 
Projects with strong partnership typically involve multiple partners in 
project development and funding, such as State and local governments, 
other public entities, and private or nonprofit entities. DOT will 
consider rural applicants that partner with State, local, or private 
entities for the completion and operation of transportation 
infrastructure to have strong partnership. DOT will also assess the 
extent to which the project application demonstrates collaboration 
among neighboring or regional jurisdictions, including neighboring 
rural areas, to achieve local or regional benefits. In the context of 
public-private partnerships, DOT will assess the extent to which 
partners are encouraged to ensure long-term asset performance, such as 
through pay-for-success approaches.
    DOT will also consider the extent to which projects include 
partnerships that bring together diverse transportation agencies or are 
supported, financially or otherwise, by other stakeholders that are 
pursuing similar objectives. For example, DOT will consider the extent 
to which transportation projects are coordinated with economic 
development, housing, water and waste infrastructure, power and 
electric infrastructure, broadband and land use plans and policies or 
other public service efforts.
(h) Non-Federal Revenue for Transportation Infrastructure Investment
    The Administration believes that attracting significant new, non-
Federal revenue streams dedicated to transportation infrastructure 
investment is desirable to maximize investment in transportation 
infrastructure. The Department will assess the extent that applications 
provide evidence that the applicant will secure and commit new, non-
Federal revenue to transportation infrastructure investment.
    New revenue means revenue that is not included in current and 
projected funding levels and results from specific actions taken to 
increase transportation infrastructure investment. For example, an 
applicant may generate new revenue through asset recycling, tolling, 
tax-increment financing, or sales or gas tax increases. New revenue 
does not include the proceeds of a new bond issuance unless an 
applicant raises or commits to raising new revenue to repay the bonds. 
The Department will consider actions to create new revenue only if 
those actions occurred after January 1, 2015 or will occur in the 
future; it will not consider actions that occurred before January 1, 
2015. For applications that propose to generate revenue over multiple 
years, the maximum time period that should be used is 10 years, 
beginning on January 1, 2018. Among otherwise similar applications, 
applicants that generate more new non-Federal revenue for future 
transportation infrastructure investment will be more competitive. The 
Department recognizes that applicants have varying abilities and 
resources to generate non-Federal revenue. If an applicant describes 
broader legal or fiscal constraints that affect its ability to generate 
non-Federal revenue, the Department will consider those constraints. As 
mandated by the FY 2018 Appropriations Act, the Department will not use 
the Federal share as a selection criterion in awarding projects.
 ii. Demonstrated Project Readiness
    During application evaluation, the Department may consider project 
readiness to assess the likelihood of a successful project. In that 
analysis, the Department will consider significant risks to successful 
completion of a project, including risks associated with environmental 
review, permitting, technical feasibility, funding, and the applicant's 
capacity to manage project delivery. Risks do not disqualify projects 
from award, but competitive applications clearly and directly describe 
achievable risk mitigation strategies. A project with mitigated risks 
or with a risk mitigation plan is more competitive than a comparable 
project with unaddressed risks.
iii. Project Costs and Benefits
    The Department may consider the costs and benefits of projects 
seeking BUILD Transportation funding. To the extent possible, the 
Department will rely on quantitative, data-supported analysis to assess 
how well a project addresses this criterion, including an assessment of 
the project's estimated benefit-cost ratio and net quantifiable 
benefits based on the applicant-supplied BCA described in Section 
D.2.vi.
iv. Additional Considerations
    The FY 2018 Appropriations Act requires the Department to consider 
contributions to geographic diversity among recipients, including the 
need for a balance between the needs of rural and urban communities 
when selecting BUILD Transportation projects.

2. Review and Selection Process

    DOT reviews all eligible applications received by the deadline. The 
BUILD Transportation grants review and selection process consists of at 
least Technical Review and Senior Review. In the Technical Review, 
teams comprising staff from the Office of the Secretary (OST) and 
operating administrations review all eligible applications and rate 
projects based on how well the projects align with the selection 
criteria. The Senior Review Team, which includes senior leadership from 
OST and the operating administrations determines which projects to 
advance to the Secretary as Highly Rated. The FY 2018 Appropriations 
Act mandated BUILD Transportation grant awards by December 18, 2018. To 
ensure the Department meets the statutory deadline specified in the FY 
2018 Appropriations Act, the Department may revise the evaluation 
process based on the number of applications received. The Secretary 
selects from the Highly Rated projects for final awards.

3. Additional Information

    Prior to award, each selected applicant will be subject to a risk 
assessment as required by 2 CFR 200.205. The Department must review and 
consider any information about the applicant that is in the designated 
integrity and performance system accessible through SAM (currently the 
Federal Awardee Performance and Integrity Information System (FAPIIS)). 
An applicant may review information in FAPIIS and comment on any 
information about itself. The Department will consider comments by the 
applicant, in addition to the other information in FAPIIS, in making a 
judgment about the applicant's integrity, business ethics, and record 
of performance under Federal awards when completing the review of risk 
posed by applicants.

F. Federal Award Administration Information

1. Federal Award Notice

    Following the evaluation outlined in Section E, the Secretary will 
announce awarded projects by posting a list of selected projects at 
www.transportation.gov/BUILDgrants. Notice of selection is not 
authorization to begin performance. Following that announcement, the 
relevant operating administration will contact the point of contact 
listed in the SF 424 to initiate negotiation of the grant agreement for 
authorization.

[[Page 18661]]

2. Administrative and National Policy Requirements

    All awards will be administered pursuant to the Uniform 
Administrative Requirements, Cost Principles and Audit Requirements for 
Federal Awards found in 2 CFR part 200, as adopted by DOT at 2 CFR part 
1201. Additionally, applicable Federal laws, rules and regulations of 
the relevant operating administration administering the project will 
apply to the projects that receive BUILD Transportation Discretionary 
Grants awards, including planning requirements, Service Outcome 
Agreements, Stakeholder Agreements, Buy America compliance, and other 
requirements under DOT's other highway, transit, rail, and port grant 
programs.
    For projects administered by FHWA, applicable Federal laws, rules, 
and regulations set forth in Title 23 U.S.C. and Title 23 CFR apply. 
For an illustrative list of the applicable laws, rules, regulations, 
executive orders, polices, guidelines, and requirements as they relate 
to a BUILD Transportation project administered by the FHWA, please see 
https://ops.fhwa.dot.gov/Freight/infrastructure/tiger/fy2016_gr_exhbt/index.htm. For BUILD Transportation projects administered by the 
Federal Transit Administration and partially funded with Federal 
transit assistance, all relevant requirements under chapter 53 of title 
49 U.S.C. apply. For transit projects funded exclusively with BUILD 
Transportation Discretionary Grants funds, some requirements of chapter 
53 of title 49 U.S.C. and chapter VI of title 49 CFR apply. For 
projects administered by the Federal Railroad Administration, FRA 
requirements described in 49 U.S.C. Subtitle V, Part C apply.
    Federal wage rate requirements included in subchapter IV of chapter 
31 of title 40, U.S.C., apply to all projects receiving funds under 
this program, and apply to all parts of the project, whether funded 
with BUILD Transportation Discretionary Grant funds, other Federal 
funds, or non-Federal funds.

3. Reporting

i. Progress Reporting on Grant Activities
    Each applicant selected for BUILD Transportation Discretionary 
Grants funding must submit quarterly progress reports and Federal 
Financial Reports (SF-425) to monitor project progress and ensure 
accountability and financial transparency in the BUILD Transportation 
program.
ii. System Performance Reporting
    Each applicant selected for BUILD Transportation Discretionary 
Grant funding must collect information and report on the project's 
observed performance with respect to the relevant long-term outcomes 
that are expected to be achieved through construction of the project. 
Performance indicators will not include formal goals or targets, but 
will include observed measures under baseline (pre-project) as well as 
post-implementation outcomes for an agreed-upon timeline, and will be 
used to evaluate and compare projects and monitor the results that 
grant funds achieve to the intended long-term outcomes of the BUILD 
Transportation program are achieved. 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. Performance reporting 
continues for several years after project construction is completed, 
and DOT does not provide BUILD Transportation Discretionary Grant 
funding specifically for performance reporting.
iii. Reporting of Matters Related to Recipient Integrity and 
Performance
    If the total value of a selected applicant's currently active 
grants, cooperative agreements, and procurement contracts from all 
Federal awarding agencies exceeds $10,000,000 for any period of time 
during the period of performance of this Federal award, then the 
applicant during that period of time must maintain the currency of 
information reported to the SAM that is made available in the 
designated integrity and performance system (currently FAPIIS) about 
civil, criminal, or administrative proceedings described in paragraph 2 
of this award term and condition. This is a statutory requirement under 
section 872 of Public Law 110-417, as amended (41 U.S.C. 2313). As 
required by section 3010 of Public Law 111-212, all information posted 
in the designated integrity and performance system on or after April 
15, 2011, except past performance reviews required for Federal 
procurement contracts, will be publicly available.

G. Federal Awarding Agency Contacts

    For further information concerning this notice please contact the 
BUILD Transportation program staff via email at [email protected], or 
call Howard Hill at 202-366-0301. A TDD is available for individuals 
who are deaf or hard of hearing at 202-366-3993. In addition, DOT will 
post answers to questions and requests for clarifications on DOT's 
website at www.transportation.gov/BUILDgrants. To ensure applicants 
receive accurate information about eligibility or the program, the 
applicant is encouraged to contact DOT directly, rather than through 
intermediaries or third parties, with questions. DOT staff may also 
conduct briefings on the BUILD Transportation Discretionary Grants 
selection and award process upon request.

H. Other information

1. Protection of Confidential Business Information

    All information submitted as part of or in support of any 
application shall use publicly available data or data that can be made 
public and methodologies that are accepted by industry practice and 
standards, to the extent possible. If the application includes 
information the applicant considers to be a trade secret or 
confidential commercial or financial information, the applicant should 
do the following: (1) Note on the front cover that the submission 
``Contains Confidential Business Information (CBI)''; (2) mark each 
affected page ``CBI''; and (3) highlight or otherwise denote the CBI 
portions. DOT protects such information from disclosure to the extent 
allowed under applicable law. In the event DOT receives a Freedom of 
Information Act (FOIA) request for the information, DOT will follow the 
procedures described in its FOIA regulations at 49 CFR 7.17. Only 
information that is ultimately determined to be confidential under that 
procedure will be exempt from disclosure under FOIA.

    Issued on: April 20, 2018.
Elaine L. Chao,
Secretary.
[FR Doc. 2018-08906 Filed 4-26-18; 8:45 am]
 BILLING CODE 4910-9X-P


