Notice2024-01696
Federal Share Flexibility Pilot Program
Primary source
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Published
January 29, 2024
Issuing agencies
Transportation DepartmentFederal Highway Administration
Abstract
The FHWA is announcing a pilot program to enable, on an experimental basis, a State department of transportation (State DOT) to determine the Federal share on a project, multi-project, or program basis for projects under certain specified programs. The Federal Share Flexibility Pilot (Pilot) Program will be carried out until September 30, 2026.
Full Text
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<title>Federal Register, Volume 89 Issue 19 (Monday, January 29, 2024)</title>
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[Federal Register Volume 89, Number 19 (Monday, January 29, 2024)]
[Notices]
[Pages 5601-5603]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-01696]
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DEPARTMENT OF TRANSPORTATION
Federal Highway Administration
Federal Share Flexibility Pilot Program
AGENCY: Federal Highway Administration (FHWA), Department of
Transportation (DOT).
ACTION: Notice.
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SUMMARY: The FHWA is announcing a pilot program to enable, on an
experimental basis, a State department of transportation (State DOT) to
determine the Federal share on a project, multi-project, or program
basis for projects under certain specified programs. The Federal Share
Flexibility Pilot (Pilot) Program will be carried out until September
30, 2026.
DATES: Applications must be received by March 29, 2024.
ADDRESSES: All application materials should be emailed to
<a href="/cdn-cgi/l/email-protection#3d7b6e6d6d6d7d6e555c4f584d52545349505c545113595249135a524b"><span class="__cf_email__" data-cfemail="b5f3e6e5e5e5f5e6ddd4c7d0c5dadcdbc1d8d4dcd99bd1dac19bd2dac3">[email protected]</span></a> or mailed attention to Rhonda Shaffer,
Federal Highway Administration, Room E62-332, 1200 New Jersey Avenue
SE, Washington, DC 20590.
FOR FURTHER INFORMATION CONTACT: Mr. Dan Parker, Senior Program
Analyst, Office of Financial Management, (801) 955-3518,
<a href="/cdn-cgi/l/email-protection#f2b6939c9b939edca29380999780b2969d86dc959d84"><span class="__cf_email__" data-cfemail="a0e4c1cec9c1cc8ef0c1d2cbc5d2e0c4cfd48ec7cfd6">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Electronic Access
An electronic copy of this notice may be downloaded from the Office
of the Federal Register's home page at: <a href="http://www.federalregister.gov/">www.federalregister.gov/</a> and
the Government Publishing Office's web page at: <a href="http://www.gpo.gov/fdsys/">www.gpo.gov/fdsys/</a>.
Background
The Federal-aid highway program is a federally funded, State-
administered program, under which State DOTs are responsible for
determining which projects are federally funded. Projects are
authorized and federally funded up to the maximum Federal share as
authorized in statute. Section 11107 of the Bipartisan Infrastructure
Law (BIL), enacted as the Infrastructure Investment and Jobs Act (IIJA)
(Pub. L. 117-58), amended section 120(l) of title 23, United States
Code (U.S.C.) to require the establishment of a Pilot Program not later
than 180 days after the date of enactment of the BIL. In accordance
with 23 U.S.C. 120(l), selected States in the Pilot Program are allowed
to determine the Federal share on an individual project that is more
than 0 percent and up to 100 percent as long as the average annual
Federal share of all participating projects does not exceed the average
of the maximum Federal share of those projects if those projects were
not carried out under the Pilot Program. The following guidelines have
been established for the Pilot Program:
(a) Up to 10 State DOTs may participate in the Pilot Program.
(b) The Pilot Program will expire on September 30, 2026.
(c) The Federal share will be determined based on the following
criteria:
(1) Determined based on project, multiple projects, or program
basis.
(2) Maximum Federal share for an individual project under the Pilot
Program is 100 percent.
(3) Minimum Federal share for an individual project under the Pilot
Program is greater than 0 percent (i.e., any project authorized under
the Pilot Program cannot be 0 percent).
(4) The average annual Federal share of the total cost of all
projects authorized under this Pilot Program shall not exceed the
average of the maximum Federal share of those projects if those
projects were not carried out under the Pilot Program.
(d) State DOTs participating in the Pilot Program may determine the
Federal share on a project, multiple-project, or program basis for
projects under any of the following programs:
(1) National Highway Performance Program (23 U.S.C. 119).
[[Page 5602]]
(2) Surface Transportation Block Grant (23 U.S.C. 133).
(3) Highway Safety Improvement (23 U.S.C. 148).
(4) Congestion Mitigation and Air Quality Program (23 U.S.C. 149).
(5) National Highway Freight Program (23 U.S.C. 167).
(6) Carbon Reduction Program (23 U.S.C. 175).
(7) Subsection (c) eligible activities of the Promoting Resilient
Operations for Transformative, Efficient, and Cost saving
Transportation Program (23 U.S.C. 176).
(e) Participating State DOT Requirements:
(1) Submit an application in accordance with the instructions
below.
(2) Have in place adequate financial controls to allow the State to
determine the average annual Federal share requirements under the Pilot
Program.
Objectives of the Pilot Program
The objectives of the Pilot Program are to:
(1) Determine if State DOTs experience efficiencies in connection
with oversight of projects and determining the Federal share amounts on
a project, multi-project, or program basis.
(2) Determine whether this innovative approach helps State DOTs
deliver Federal-aid highway projects with more efficiency and
effectiveness.
(3) Assess whether this approach helps FHWA realize process
efficiencies through flexible Federal share amounts.
Pilot Program Description
The Federal-aid highway program supports States by providing
financial assistance for the design, construction, preventive
maintenance, and other federally eligible costs associated with about
25 percent of the 3.9 million mile highway network of the United
States, which includes the Interstate Highway System and the National
Highway System, as well as primary highways and other major collector
roads. Federal funds and obligation authority are distributed to the
State DOTs, which act on behalf of the States in accordance with 23
U.S.C. 145, 302, and 23 Code of Federal Regulations (CFR) 1.3. The
Pilot Program will test the impact of flexible Federal share funding on
project delivery efficiency and effectiveness.
Application and Submission
In accordance with 23 U.S.C. 120(l)(2)(C)(i), applications must
include the information below. Incomplete applications will not be
considered. The FHWA may ask any applicant to supplement data in its
application but expects the applications to be complete upon
submission. The FHWA will expect State DOTs to provide additional
information described in the participant selection section, if
requested. Applications must include the following information for it
to be considered for the Pilot Program:
Title page: The title page must include the State DOT's name,
address, Federal program funding size, total program funding size
(Federal plus other), and primary point of contact for the Pilot
Program.
Structure: The State DOT must show its organizational structure and
clearly articulate how its organizational structure is adequately
staffed and suitably equipped to administer this Pilot Program.
Narrative: The narrative must include and address the following:
(1) Describe and quantify how participation in the Pilot Program
will accelerate project delivery and improve efficiency and
accessibility to the benefits derived from the Federal-aid highway
program, generally and specifically regarding program administration in
the applicant's State. The benefits discussion must address the
anticipated overall program and project delivery cost and scheduled
savings. The State DOT should identify administrative impediments or
delays associated with the current project delivery and oversight
process that would be modified or eliminated under the Pilot Program.
(2) Describe and quantify how participation in the Pilot Program
will provide added value to the State DOT, FHWA, project delivery and
the communities served by the transportation projects.
(3) Describe how the State DOT will evaluate the effects of
applicable Federal-aid project delivery requirements on the State DOT's
project delivery capacity under the Pilot Program. In doing so, the
State DOT should consider comparing the costs and efficiency of project
delivery using historical information under the authorized Federal
share requirements and using the Pilot Program flexibilities.
Certification: A certification statement that the State DOT has the
capacity and internal control to administer the Pilot Program in
accordance with the applicable requirements including adequate
financial controls to allow the State to determine the average annual
Federal share requirements under the Pilot Program.
This information collection has been approved by Office of
Management and Budget (OMB) under #2125-0670. Notwithstanding any other
provision of law, no person is required to respond to, nor shall any
person be subject to a penalty for failure to comply with, a collection
of information subject to the Paperwork Reduction Act, unless that
collection displays a currently valid OMB control number.
Application Review and Selection
This section outlines the process and factors that FHWA will use to
evaluate and select applicants to participate in the Pilot Program. The
FHWA will use the following rating factors, each of which is of equal
importance, for the selection of Pilot Program participants.
Rating Factors
(1) Anticipated project delivery cost savings.
(2) Anticipated project delivery time savings.
(3) Added value of the proposed approaches to the State DOT, FHWA,
project delivery and the communities served by the transportation
projects (e.g., fosters effective and efficient stewardship and
oversight as well as integrity of the Federal-aid Highway Program
funds; promotes sustainability; or captures higher impact
opportunities).
(4) Evaluation of the State DOT's financial management (i.e.,
accounting) and project delivery systems in accordance with 23 U.S.C.
106(g)(2)(A) and (g)(3).
(5) Compliance assessment of the State DOT's financial controls and
project delivery program in accordance with government-wide
requirements in 2 CFR 200.302-303.
After determining eligibility, FHWA will evaluate proposals and
make selections using the rating factors described above to determine
the applications that are in the best interest of FHWA. The FHWA will
then select the State DOTs eligible as Pilot Program participants. The
FHWA will accept proposals throughout the duration of the Pilot
Program.
Performance of Pilot Program Participants
A State DOT selected to participate in the Pilot Program will
assume responsibility for compliance with all procedural and
substantive Federal requirements as would apply to the Pilot Program.
These requirements include Pilot Program specific reporting, regular
Federal-aid reporting, construction administration, financial
administration, performance management, and all other applicable
Federal requirements, unless FHWA determines that such assumption of
responsibility for one or more of the
[[Page 5603]]
procedural or substantive requirements is not appropriate. Each State
DOT selected for the Pilot Program must work with FHWA to develop and
implement a plan to collect information and report on the State DOT's
performance with respect to the relevant objectives outlined in the
Pilot Program.
Each participating State DOT will enter into a memorandum of
agreement (MOA) with FHWA. The MOA will require the State DOT to
provide to FHWA any information that FHWA considers necessary to ensure
that the State DOT carries out the requirements of the Pilot Program.
The MOA shall not extend beyond September 30, 2026.
To ensure compliance with the Pilot Program by participating State
DOTs, FHWA may conduct audits, reviews, and assessments during the
Pilot Program. Such audits will be in addition to any of FHWA's other
stewardship and oversight responsibilities relating to the Pilot
Program, as well as any other projects or other activities carried out
under the Pilot Program.
The FHWA will assess the partnership developed under this Pilot
Program in accordance with existing requirements. The FHWA may
terminate a MOA with State or a Pilot Program within a State at any
time for failure to comply with requirements of 23 U.S.C. 120(l) or for
any reason consistent with 2 CFR 200.339, including, but not limited
to, inadequate performance or resources to administer the Pilot
Program. The participating State DOT may also terminate the Pilot
Program upon FHWA's receipt of a 90-day notice from a State DOT.
Authority: 23 U.S.C. 120(l); Sec. 11107, Pub. L. 117-58, Stat. 459.
Shailen P. Bhatt,
Administrator, Federal Highway Administration.
[FR Doc. 2024-01696 Filed 1-26-24; 8:45 am]
BILLING CODE 4910-22-P
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</html>Indexed from Federal Register on January 29, 2024.
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