[Federal Register Volume 85, Number 37 (Tuesday, February 25, 2020)]
[Notices]
[Pages 10811-10823]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-03711]


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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, 2020

AGENCY: Office of the Secretary of Transportation, DOT.

ACTION: Notice of funding opportunity.

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SUMMARY: The Further Consolidated Appropriations Act, December 20, 
2019) (``FY 2020 Appropriations Act'') appropriated $1 billion to be 
awarded by the Department of Transportation (``DOT'') 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'') and is known as the 
Better Utilizing Investments to Leverage Development, or ``BUILD 
Transportation Grants,'' program. Funds for the FY 2020 BUILD 
Transportation grants program are to be awarded on a competitive basis 
for surface transportation infrastructure projects that will have a 
significant local or regional impact. The purpose of this notice is to 
solicit applications for BUILD Transportation grants.

DATES: Applications must be submitted by 5 p.m. E.D.T. on May 18, 2020.

ADDRESSES: Applications must be submitted through Grants.gov.

FOR FURTHER INFORMATION CONTACT: For further information concerning 
this notice, please contact the BUILD Transportation grants program 
staff via email at BUILDgrants@dot.gov, 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: Each section of this notice contains 
information and instructions relevant to

[[Page 10812]]

the application process for these BUILD Transportation 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. The definitions of urban and rural areas are consistent 
with the FY 2019 BUILD Transportation grant definitions, which differed 
from previous rounds. Additionally, not more than 50 percent of funds 
will be awarded to projects located in urban and rural areas, 
respectively. In addition to capital awards, DOT will award at least 
$15 million for eligible planning and preconstruction activities that 
do not result in construction of a capital project.

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 Further Consolidated Appropriations Act, 2020 (Pub. L. 116-94, 
December 20, 2019) (``FY 2020 Appropriations Act'') appropriated $1 
billion to be awarded by the Department of Transportation (``DOT'') for 
National Infrastructure Investments. Since this program was created, $8 
billion has been awarded for capital investments in surface 
transportation infrastructure over eleven rounds of competitive grants. 
Throughout the program, these discretionary grant awards have supported 
projects that have a significant local or regional impact.
    Like the FY 2017 TIGER program, the FY 2020 BUILD program will also 
give special consideration to projects which emphasize improved access 
to reliable, safe, and affordable transportation for communities in 
rural areas, such as projects that improve infrastructure condition, 
address public health and safety, promote regional connectivity or 
facilitate economic growth or competitiveness. Consistent with DOT's 
R.O.U.T.E.S. initiative, DOT seeks rural projects that address 
deteriorating conditions and disproportionately high fatality rates on 
rural transportation infrastructure. Such projects may concurrently 
invest in broadband to better facilitate productivity and help rural 
citizens access opportunities, or promote energy independence to help 
deliver significant local or regional economic benefit.

B. Federal Award Information

1. Amount Available

    The FY 2020 Appropriations Act appropriated $1 billion to be 
awarded by DOT for the BUILD Transportation grants program. The FY 2020 
BUILD Transportation 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, DOT will award no less than $15 million (of the 
$1 billion) for the planning, preparation or design of eligible 
projects. DOT refers to such awards as BUILD Transportation planning 
grants. The FY 2020 Appropriations Act also allows DOT to retain up to 
$25 million of the $1 billion for award, oversight and administration 
of grants and credit assistance made under the program. In addition to 
the FY 2020 BUILD funds, unobligated TIGER FY 2017 and FY 2018 BUILD 
funds may be made available and awarded under this solicitation to 
projects that can be obligated before the September 30, 2020 obligation 
deadline associated with those prior years' funds. If this solicitation 
does not result in the award and obligation of all available funds, DOT 
may publish additional solicitations.
    The FY 2020 Appropriations Act allows up to 20 percent of available 
funds (or $200 million) to be used by DOT to pay the subsidy and 
administrative costs of a project receiving credit assistance under the 
Transportation Infrastructure Finance and Innovation Act of 1998 
(``TIFIA'') or Railroad Rehabilitation and Improvement Financing (RRIF) 
programs, if that use of the FY 2020 BUILD funds would further the 
purposes of the BUILD Transportation grants program.

2. Award Size

    The FY 2020 Appropriations Act specifies that BUILD Transportation 
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.4.(a)) the minimum award size is $1 million. There is no 
minimum award size, regardless of location, for BUILD Transportation 
planning grants. Applicants are strongly encouraged to submit 
applications only for eligible award amounts.

3. Restrictions on Funding

    Pursuant to the FY 2020 Appropriations Act, no more than 10 percent 
of the funds made available for BUILD Transportation grants (or $100 
million) may be awarded to projects in a single State. The Act also 
directs that not more than 50 percent of the funds provided for BUILD 
Transportation grants (or $500 million) shall be awarded to projects 
located in rural areas (as defined in section C.4.(a)) and directs that 
not more than 50 percent of the funds provided for BUILD Transportation 
grants (or $500 million) shall be awarded to projects located in 
urbanized areas (as defined in section C.4.(a)). 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 2020 Appropriations Act requires that FY 2020 BUILD 
Transportation grants funds are available for obligation only through 
September 30, 2022. 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. Unless authorized by 
DOT in writing after DOT's announcement of FY 2020 BUILD awards, any 
costs incurred prior to DOT's obligation of funds for a project are 
ineligible for reimbursement.\1\ All FY 2020 BUILD funds must be 
expended (the grant obligation must be liquidated or actually paid out 
to the grantee) by September 30, 2027. 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 a 
project's likelihood of being ready to proceed with an obligation of 
BUILD Transportation grant funds and complete liquidation of these 
obligations, within the statutory timelines. No waiver is possible for 
these deadlines.
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    \1\ Pre-award costs are only costs incurred directly pursuant to 
the negotiation and anticipation of the BUILD award where such costs 
are necessary for efficient and timely performance of the scope of 
work, as determined by DOT. Costs incurred under an advance 
construction (23 U.S.C. 115) authorization before the DOT announces 
that a project is selected for a FY 2020 BUILD award cannot be 
charged to FY 2020 BUILD funds.
    Likewise, costs incurred under an FTA Letter of No Prejudice 
under Chapter 53 of title 49 U.S.C. before the DOT announces that a 
project is selected for a FY 2020 BUILD award cannot be charged to 
FY 2020 BUILD funds.
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5. Previous BUILD/TIGER Awards

    Recipients of BUILD/TIGER grants may apply for funding to support

[[Page 10813]]

additional phases of a project previously awarded funds in the BUILD/
TIGER program. However, to be competitive, the applicant should 
demonstrate the extent to which the previously funded project phase has 
met 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 grant, an applicant must 
be an Eligible Applicant and the project must be an Eligible Project.

1. Eligible Applicants

    Eligible Applicants for BUILD Transportation 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.
    DOT expects that the eligible applicant that submits the 
application will administer and deliver the project. If the applicant 
seeks a transfer of the award to another agency, a letter of support 
from the designated entity must be included in the application.

2. Cost Sharing or Matching

    Per the FY 2020 Appropriations Act, the Federal share of project 
costs for which an expenditure is made under the BUILD Transportation 
grant program may not exceed 80 percent for a project located in an 
urban area.\2\ 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.4.(a) of this notice. DOT shall 
give priority to projects that require a contribution of Federal funds 
in order to complete an overall financing package.
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    \2\ 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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    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 Federal source under the BUILD program and, 
therefore, cannot be used to satisfy the statutory cost sharing 
requirement of a BUILD award. Unless otherwise authorized by statute, 
non-Federal cost-share may not be counted as the non-Federal share for 
both the BUILD Transportation grant and another Federal grant program. 
DOT 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. If repaid from non-Federal sources, 
Federal credit assistance is considered non-Federal share.
    For each project that receives a BUILD Transportation grant award, 
the terms of the award will require the recipient to complete the 
project using at least the level of non-Federal funding that was 
specified in the application. If the actual costs of the project are 
greater than the costs estimated in the application, the recipient will 
be responsible for increasing the non-Federal contribution. If the 
actual costs of the project are less than the costs estimated in the 
application, DOT will generally reduce the Federal contribution.

3. Other

i. Eligible Projects
(a) Capital Projects
    Eligible projects for BUILD Transportation grants are surface 
transportation 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 Code; (3) passenger and freight 
rail transportation projects; (4) port infrastructure investments 
(including inland port infrastructure and land ports of entry); (5) 
intermodal projects; and (6) projects investing in surface 
transportation facilities that are located on tribal land and for which 
title or maintenance responsibility is vested in the Federal 
Government.\3\
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    \3\ Please note that DOT may award a BUILD Transportation 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 grants 
to pay for the surface transportation components of these projects.
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    Other than projects described in this section, improvements to 
Federally owned facilities are ineligible under the FY 2020 BUILD 
program. 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.4.(b).
(b) Planning Projects
    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 eligible surface transportation capital projects 
described in Section C.3.(a).
    In addition, eligible activities related to multidisciplinary 
projects or regional planning may include: (1) Development of master 
plans, comprehensive plans, or corridor plans; (2) Planning activities 
related to the development of a multimodal freight corridor, including 
those that seek to reduce conflicts with residential areas and with 
passenger and non-motorized traffic; (3) Development of port and 
regional port planning grants, including State-wide or multi-port 
planning within a single jurisdiction or region; (4) Risk assessments 
and planning to identify vulnerabilities and address the transportation 
system's ability to withstand probable occurrence or recurrence of an 
emergency or major disaster.
ii. Rural/Urban Definition
    For purposes of this notice, a project is designated as urban if it 
is located within (or on the boundary of) a Census-designated urbanized 
area \4\ that had a population greater than 200,000 in the 2010 
Census.\5\ If a project is located outside a Census-designated 
urbanized area with a population greater than 200,000, it is designated 
as a rural project. Rural and urban definitions differ in some other 
DOT programs, including TIFIA.
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    \4\ Updated lists of UAs as defined by the Census Bureau are 
available on the Census Bureau website at https://www.census.gov/geographies/reference-maps/2010/geo/2010-census-urban-areas.html.
    \5\ See www.transportation.gov/BUILDgrants for a list of UAs.
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    A project located in both an urban and a rural area will be 
designated as urban if the majority of the project's costs will be 
spent in urban areas. Conversely, a project located in both an urban 
area and a rural area will be designated as rural if the majority of 
the project's costs will be spent in rural areas. For BUILD 
Transportation planning grants, the location of the project being 
planned, prepared, or designed will be used for the urban or rural 
designation.
    This definition affects four aspects of the program: (1) Not more 
than $500 million of the funds provided for BUILD Transportation grants 
are to be used for

[[Page 10814]]

projects in rural areas; (2) not more than $500 million of the funds 
provided for BUILD Transportation grants are to be used for projects in 
urban areas; (3) for a project in a rural area the minimum award is $1 
million; and (4) 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 expects, and will impose 
requirements on fund recipients to ensure, that all components included 
in an application will be delivered as part of the BUILD project, 
regardless of whether a component includes Federal funding. 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.1; 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. 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 grant 
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.

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), cover page, and the Project Narrative. Applicants 
are encouraged to also complete SF-424C and attach to their application 
the ``BUILD 2020 Project Information'' form available at 
www.transportation.gov/BUILDgrants.
    DOT 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 Uses of all   See D.2.iii.
 Project Funding.
IV. Selection Criteria....................  See D.2.iv. and E.1.
V. Environmental Risk Review..............  See D.2.v. and E.1.ii.
VI. Benefit Cost Analysis.................  See D.2.vi. and E.1. iii.
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    The project narrative should include the information necessary for 
DOT 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 DOT. DOT 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. DOT 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. DOT 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 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. 
Applicants may also 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.
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. The application should also identify whether the 
project is located in an Opportunity Zone.\6\ The

[[Page 10815]]

Department intends to collect Opportunity Zone information to advance 
other Department activities related to Opportunity Zones, but the 
Department does not consider projects located in an Opportunity Zone to 
be more competitive for a BUILD 2020 award than projects located 
outside an Opportunity Zone.\7\ If the project is located within the 
boundary of a Census-designated urbanized area, the application should 
identify that urbanized area.
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    \6\ See https://www.cdfifund.gov/Pages/Opportunity-Zones.aspx 
for more information on Opportunity Zones.
    \7\ See https://www.transportation.gov/opportunity-zones for 
more information about the Department's activities related to 
Opportunity Zones.
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iii. Grant Funds, Sources and Uses of Project Funds
    This section of the application should describe the budget for the 
BUILD project (i.e., the project scope that includes BUILD funding). 
This budget should not include any previously incurred expenses. At a 
minimum, it should include:
    (a) Costs for the BUILD 2020 project;
    (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. Documentation should also be 
included as an appendix to the application. If matching contributions 
from a State DOT are included as non-Federal match, a supporting letter 
from the State indicating the source of the funds;
    (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; and
    (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 DOT's expectations for award execution align with any 
funding restrictions unrelated to DOT, even if an award differs from 
the applicant's request.
iv. Selection Criteria
    This section of the application should demonstrate how the project 
aligns with the criteria described in Section E.1 of this notice. DOT 
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 
addresses each criterion separately and promotes a clear discussion 
that assists project evaluators. To minimize redundant information in 
the application, DOT 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 DOT will evaluate projects against the Selection 
Criteria is in Section E.1 of this notice. Applicants also should 
review that section before considering how to organize their 
application.
(1) Primary Selection 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. If applicable, the applicant should 
also include information on 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 
estimates of impacts on long-term cost structures or 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 Sustainability
    This section of the application should describe how the project 
addresses the environmental sustainability 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, reduce 
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

[[Page 10816]]

support transportation, they will not be eligible for reimbursement.
(2) Secondary Selection Criteria
(a) 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 applicable Federal requirements and whether the innovations may 
require extraordinary permitting, approvals, exemptions, waivers, or 
other procedural actions, and the effects of those innovations on the 
project delivery timeline.
    If an applicant is proposing to deploy innovative traveler 
information systems or technologies as part of the surface 
transportation capital project, including work zone data exchanges or 
related data exchanges, the application should demonstrate the 
applicant's capacity to implement these innovations, the applicant's 
understanding of applicable data standards, and whether the proposed 
innovations will advance safety or other benefits during and after 
project completion.
    If an applicant is proposing to deploy autonomous vehicles or other 
innovative motor vehicle technology, the application should demonstrate 
that all vehicles will comply with applicable safety requirements, 
including those administered by the National Highway Traffic Safety 
Administration (NHTSA) and Federal Motor Carrier Safety Administration 
(FMCSA). Specifically, the application should show that vehicles 
acquired for the proposed project will comply with applicable Federal 
Motor Vehicle Safety Standards (FMVSS) and Federal Motor Carrier Safety 
Regulations (FMCSR). If the vehicles may not comply, the application 
should either (1) show that the vehicles and their proposed operations 
are within the scope of an exemption or waiver that has already been 
granted by NHTSA, FMCSA, or both agencies or (2) directly address 
whether the project will require exemptions or waivers from the FMVSS, 
FMCSR, or any other regulation and, if the project will require 
exemptions or waivers, present a plan for obtaining them.
(ii) Innovative Project Delivery
    If an applicant plans to use innovative approaches to project 
delivery or is located in a State with NEPA delegation authority, 
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.\8\
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    \8\ 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/toolkit/usdot/sep15/implementation_procedure/.
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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.
(b) 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.
    Applications for projects involving other Federal agencies, or 
requiring action from other Federal agencies, should demonstrate 
commitment and involvement of those agencies. For example, projects 
involving border infrastructure should demonstrate evidence of 
concurrent investment from U.S. Customs and Border Patrol, U.S. 
Department of State, and other relevant Federal agencies; relevant port 
projects should demonstrate alignment with U.S. Army Corps of Engineers 
investment strategies.
v. Environmental Risk
    This section of the application should include sufficient 
information for DOT to evaluate whether the project is reasonably 
expected to begin construction in a timely manner. To assist DOT's 
project environmental risk review, the applicant should provide the 
information requested on project schedule, required approvals and 
permits, NEPA, risk and mitigation strategies, 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 environmental 
risk, promotes a clear discussion that assists project evaluators. To 
minimize redundant information in the application, DOT 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 DOT will evaluate environmental risk is 
described in Section E.1.ii of this notice. Applicants should review 
that section when considering how to organize their application.
(a) 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 (e.g., 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 grant funds to be obligated sufficiently in advance of 
the statutory deadline (September 30, 2022 for FY 2020 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 
grant funds and that those funds will be spent expeditiously once 
construction starts, with all funds expended by September 30, 2027; and
    (3.) all real property and right-of-way acquisition will be 
completed in a timely manner in accordance with 49

[[Page 10817]]

CFR part 24, 23 CFR part 710, and other applicable legal requirements 
or a statement that no acquisition is necessary.
(b) 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:
    i. 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.
    ii. 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,\9\ 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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    \9\ 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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    iii. Environmental studies or other documents, preferably through a 
website link, that describe in detail known project impacts, and 
possible mitigation for those impacts.
    iv. 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.
    v. 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. For projects acquiring State DOT-
owned right of way, applicants should demonstrate they have coordinated 
the project with the State DOT or transportation facility owner. 
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 grant 
projects,\10\ including intermodal projects located at airport 
facilities.\11\ 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. 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.
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    \10\ Under 23 U.S.C. 134 and 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. Plans that do not currently include the 
awarded BUILD project 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 49 U.S.C. 70202 
prior to the start of construction. Port planning guidelines are 
available at StrongPorts.gov.
    \11\ 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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(c) Assessment of Project Risks and Mitigation Strategies
    Project risks, such as procurement delays, environmental 
uncertainties, increases in real estate acquisition costs, uncommitted 
local match, unavailability of vehicles that either comply with Federal 
Motor Vehicle Safety Standards or are exempt from Federal Motor Vehicle 
Safety Standards in a manner that allows for their legal acquisition 
and deployment, unavailability of domestically manufactured equipment, 
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.

[[Page 10818]]

    If an applicant anticipates pursuing a waiver for relevant domestic 
preference laws, the applicant should describe steps that have been or 
will be taken to maximize the use of domestic goods, products, and 
materials in constructing its project.
    To the extent the applicant 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.
vi. 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.
    The appendix should provide present value estimates of a project's 
benefits and costs relative to a no-build baseline. To calculate 
present values, applicants should apply a real discount rate (i.e., the 
discount rate net of the inflation rate) of 7 percent per year to the 
project's streams of benefits and costs. The purpose of the BCA is to 
enable DOT to evaluate the project's cost-effectiveness by estimating a 
benefit-cost ratio and calculating the magnitude of net benefits for 
the project.
    The primary economic benefits from projects eligible for BUILD 
Transportation grants are likely to include savings in travel time 
costs, vehicle or terminal 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 DOT's guidance 
for conducting BCAs for projects seeking funding under the BUILD 
Transportation grant 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. DOT 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 DOT is ready to 
make a BUILD Transportation grant, DOT may determine that the applicant 
is not qualified to receive a BUILD Transportation grant and use that 
determination as a basis for making a BUILD Transportation grant to 
another applicant.

4. Submission Dates and Times

    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.
(a) Deadline
    Applications must be submitted by 5:00 p.m. E.D.T. on May 18, 2020. 
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 DOT 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.
(b) 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.
(c) Late Applications
    Applicants experiencing technical issues with Grants.gov that are 
beyond the applicant's control must contact BUILDgrants@dot.gov prior 
to the application deadline with the user name of the registrant and 
details of the technical issue experienced. The applicant must provide:

[[Page 10819]]

    (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 DOT 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

(a) Capital Projects
    This section specifies the criteria that DOT will use to evaluate 
and award applications for BUILD Transportation grants. The criteria 
incorporate the statutory eligibility requirements for this program, 
which are specified in this notice as relevant. For each proposed 
project, DOT will review the potential long-term benefits for the 
primary and secondary merit criteria described in this section. DOT 
does not consider any primary merit criterion more important than the 
others. Applications that do not demonstrate a potential for moderate 
long-term benefits based on these criteria will not proceed in the 
evaluation process. In evaluating the primary and secondary merit 
criteria, DOT will review the project's local or regional impact as 
well the content and credibility of information used to explain project 
benefits.
i. Primary Merit Criteria
a. Safety
    DOT will assess the project's ability to foster a safe 
transportation system for the movement of goods and people. DOT 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
    DOT 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) the project will 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. DOT will prioritize projects that ensure the 
good condition of transportation infrastructure, including rural 
transportation infrastructure, that support commerce and economic 
growth.
c. Economic Competitiveness
    DOT will assess whether the project will (1) decrease 
transportation costs and improve access, 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 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 Sustainability
    DOT 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. DOT 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
    DOT 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; or (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 DOT 
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.
ii. Secondary Merit Criteria
a. Innovation
    DOT will assess the extent to which the applicant uses innovative 
strategies, including: (1) Innovative technologies, (2) innovative 
project delivery, or (3) innovative financing.
1. 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 grant award decisions, DOT will consider any innovative 
safety approaches proposed by the applicant,

[[Page 10820]]

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, smart traffic signals, or pricing 
systems to reduce congestion;
     Traveler information systems, to include work zone data 
exchanges;
     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, DOT 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. DOT 
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.
2. Innovative Project Delivery
    DOT will consider the extent to which the project utilizes 
innovative practices in contracting (such as public-private 
partnerships), congestion management, asset management, or long-term 
operations and maintenance.
    DOT 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. DOT's objective 
is to achieve timely and consistent environmental review and permit 
decisions. Accordingly, projects from States with NEPA assignment 
authority under 23 U.S.C. 327 are considered to use an innovative 
approach to project delivery. Participation in innovative project 
delivery approaches will not remove any statutory requirements 
affecting project delivery.
    While BUILD Transportation grant award recipients are not required 
to employ innovative approaches, DOT encourages BUILD Transportation 
grant 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 grant award decisions, DOT 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. DOT is not replacing the application processes for 
SEP-14 or SEP-15 with this notice or the BUILD Transportation grant 
program application. Instead, it seeks detailed expressions of interest 
in those programs. If selected for an BUILD Transportation grant award, 
the applicant would need to satisfy the relevant programs' requirements 
and complete the appropriate application processes. Selection for a 
BUILD Transportation grant award does not mean a project's SEP-14 or 
SEP-15 proposal has been approved. DOT will make a separate 
determination in accordance with those programs' processes on the 
appropriateness of a waiver.
3. 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 revenue from the competitive sale or 
lease of publicly owned or operated assets.
b. Partnership
    DOT 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 
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 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.
iii. Demonstrated Project Readiness
    During application evaluation, DOT may consider project readiness 
to assess the likelihood of a successful project. In that analysis, DOT 
will consider three evaluation ratings: Environmental Risk, Technical 
Capacity, and Financial Capacity. Environmental Risk assessment 
analyzes the project's environmental approvals and likelihood of the 
necessary approval affecting project obligation. The Technical Capacity 
will be reviewed for all eligible applications and will assess the 
applicant's capacity to successfully deliver the project in compliance 
with applicable Federal requirements based on factors including the 
recipient's experience working with Federal agencies, previous 
experience with BUILD or INFRA awards, and the technical experience and 
resources

[[Page 10821]]

dedicated to the project. The Financial Capacity assessment reviews the 
availability of matching funds and whether the applicant presented a 
complete funding package. 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.
iv. Project Costs and Benefits
    DOT may consider the costs and benefits of projects seeking BUILD 
Transportation grant funding. To the extent possible, DOT 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 (BCR) and net quantifiable benefits based 
on the applicant-supplied BCA described in Section D.2.vi.
    To evaluate the costs and benefits of a proposed project, DOT will 
assign the project into ranges based on its estimated BCR and net 
present value (NPV), and DOT will assign a level of confidence 
associated with the estimated BCR and NPV ranges. DOT will use these 
ranges for BCR: Less than 1; 1-1.5; 1.5-3; and greater than 3. DOT will 
use these ranges for NPV: Less than $0; $0- $50,000,000; $50,000,000-
$250,000,000; and greater than $250,000,000. The confidence levels are 
high, medium, and low.
(b) Planning Grants
    Planning grant applications will be evaluated against the same 
criteria as capital grants. For project-level planning, this means 
considering how the project resulting from the plan will ultimately 
further the primary and secondary merit criteria. For regional 
transportation planning efforts, applications should demonstrate how 
the regional plan will help lead to these outcomes. BUILD 
Transportation planning grant applicants will be evaluated for their 
capacity to successfully implement the proposed planning activities in 
a timely manner. DOT will not evaluate the benefits and costs (as 
expressed in a benefit-cost analysis) or environmental risks of 
projects that do not include construction.
(c) Additional Considerations
    The FY 2020 Appropriations Act requires DOT 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 grant awards.

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 as Highly Recommended, Recommended, Acceptable, or 
Unacceptable. To receive a Highly Recommended rating, (1) the project 
must demonstrate that, more likely than not, it will generate long-term 
benefits in one or more primary merit criteria and the project does not 
appear to negatively affect any of the other merit criteria; (2) the 
project must have a clear, direct, significant, and positive local or 
regional impact (i.e. the project will, more likely than not, reduce 
the problem or use the opportunity that project proposes to address); 
and (3) the application contains sufficient information to assess 
project benefits and the benefits claimed by the applicant appear 
reasonable and justifiable. If the project has not substantively 
changed from prior submissions to BUILD or other Department programs, 
staff may rely on previous analysis. 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 2020 Appropriations Act mandated BUILD Transportation grant 
awards by September 15, 2020. 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. DOT 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. DOT 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 or to incur costs for the proposed 
project. 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.
    Recipients of BUILD Transportation Grant awards will not receive 
lump-sum cash disbursements at the time of award announcement or 
obligation of funds. Instead, BUILD funds will reimburse recipients 
only after a grant agreement has been executed, allowable expenses are 
incurred, and valid requests for reimbursement are submitted. Unless 
authorized in writing by DOT, an expense incurred before a grant 
agreement is executed will not be reimbursed.

2. Administrative and National Policy Requirements

    Please visit https://www.transportation.gov/policy-initiatives/build/grant-agreements for the General Terms and Conditions for BUILD 
2019 awards. The BUILD 2020 Terms and Conditions will be similar to the 
BUILD 2019 Terms and Conditions, but may include relevant updates.
    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. 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 Grant funds, other Federal funds, or 
non-Federal funds.
    In connection with any program or activity conducted with or 
benefiting from funds awarded under this notice, recipients of funds 
must comply with all applicable requirements of Federal law, including, 
without limitation, the Constitution of the United States; the 
conditions of performance, non-discrimination requirements, and other 
assurances made applicable to the award of funds in accordance with 
regulations of the Department of Transportation; and applicable Federal 
financial assistance and contracting

[[Page 10822]]

principles promulgated by the Office of Management and Budget. In 
complying with these requirements, recipients, in particular, must 
ensure that no concession agreements are denied or other contracting 
decisions made on the basis of speech or other activities protected by 
the First Amendment. If DOT determines that a recipient has failed to 
comply with applicable Federal requirements, DOT may terminate the 
award of funds and disallow previously incurred costs, requiring the 
recipient to reimburse any expended award funds.
    Additionally, applicable Federal laws, rules and regulations of the 
relevant operating administration administering the project will apply 
to the projects that receive BUILD Transportation grant 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. In 
particular, Executive Order 13858 directs the Executive Branch 
Departments and agencies to maximize the use of goods, products, and 
materials produced in the United States through the terms and 
conditions of Federal financial assistance awards. If selected for an 
award, grantees must be prepared to demonstrate how they will maximize 
the use of domestic goods, products, and materials in constructing 
their project. BUILD Transportation grant projects involving vehicle 
acquisition must involve only vehicles that comply with applicable 
Federal Motor Vehicle Safety Standards and Federal Motor Carriers 
Safety Regulations, or vehicles that are exempt from Federal Motor 
Vehicle Safety Standards or Federal Motor Carrier Safety Regulations in 
a manner that allows for the legal acquisition and deployment of the 
vehicle or vehicles.
    For projects administered by FHWA, applicable Federal laws, rules, 
and regulations set forth in Title 23 U.S.C. and Title 23 CFR apply, 
including the 23 U.S.C. 129 restrictions on the use of toll revenues, 
and Section 4(f) preservation of parklands and historic properties 
requirements under 23 U.S.C. 138. For an illustrative list of the other 
applicable laws, rules, regulations, executive orders, polices, 
guidelines, and requirements as they relate to a BUILD Transportation 
grant project administered by the FHWA, please see https://ops.fhwa.dot.gov/Freight/infrastructure/tiger/#build18.
    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 grant 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.

3. Reporting

(a) Progress Reporting on Grant Activities
    Each applicant selected for BUILD Transportation grant 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 grant program.
(b) System Performance Reporting
    Each applicant selected for BUILD Transportation grant funding must 
collect and report to the DOT information on the project's performance. 
The specific performance information and reporting time period will be 
determined on a project-by-project basis. Performance indicators will 
not include formal goals or targets, but will include observed measures 
under baseline (pre-project) as well as post-implementation outcomes, 
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 grant 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.1. Performance 
reporting continues for several years after project construction is 
completed, and DOT does not provide BUILD Transportation grant funding 
specifically for performance reporting.
(c) 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 grant program staff via email at 
BUILDgrants@dot.gov, 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 grant 
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 applicant submits information 
that the applicant considers to be a trade secret or confidential 
commercial or financial information, the applicant must provide that 
information in a separate document, which the applicant may cross-
reference from the application narrative or other portions of the 
application. For the separate document containing confidential 
information, the applicant must do the following: (1) State on the 
cover of that document that it ``Contains Confidential Business 
Information (CBI)''; (2) mark each page that contains confidential 
information with ``CBI''; (3) highlight or otherwise denote the 
confidential content on each page; and (4) at the end of the document, 
explain how disclosure of the confidential information would cause 
substantial competitive harm. DOT will protect confidential information 
complying with these requirements to the extent

[[Page 10823]]

required under applicable law. If DOT receives a Freedom of Information 
Act (FOIA) request for the information that the applicant has marked in 
accordance with this section, DOT will follow the procedures described 
in its FOIA regulations at 49 CFR 7.29. Only information that is in the 
separate document, marked in accordance with this section, and 
ultimately determined to be confidential under Sec.  7.29 will be 
exempt from disclosure under FOIA.

2. Publication/Sharing of Application Information

    Following the completion of the selection process and announcement 
of awards, DOT intends to publish a list of all applications received 
along with the names of the applicant organizations and funding amounts 
requested. Except for the information properly marked as described in 
Section H.1., DOT may make application narratives publicly available or 
share application information within DOT or with other Federal agencies 
if DOT determines that sharing is relevant to the respective program's 
objectives.

3. Department Feedback on Applications

    DOT strives to provide as much information as possible to assist 
applicants with the application process. DOT will not review 
applications in advance, but DOT staff are available for technical 
questions and assistance. To efficiently use Department resources, DOT 
will prioritize interactions with applicants who have not already 
received a debrief on their FY 2019 BUILD Transportation grant 
application. Program staff will address questions received at 
BUILDgrants@dot.gov throughout the application period. DOT staff will 
make reasonable efforts to schedule meetings on projects through April 
1, 2020. After that date, DOT staff will schedule meetings only to the 
extent possible and consistent with timely completion of other 
activities.

    Issued On: February 18, 2020.
Elaine L. Chao,
Secretary.
[FR Doc. 2020-03711 Filed 2-24-20; 8:45 am]
 BILLING CODE 4910-9X-P


