2. 2
BUILD Grant Background
▪ Originally implemented as part of the American Reinvestment and Recovery
Act of 2009.
▪ Congress has since allocated $8.9 billion in twelve rounds of funding to “shovel
ready” infrastructure projects in all states and territories that have a significant
local or regional impact.
▪ Intended for projects that achieve national objectives and create jobs.
▪ These include interstate highway improvements; seismic remediation;
improvements to port infrastructure and railways; bridge improvements; and
public transit projects.
3. 3
BUILD Grant Process
▪ BUILD provides funding through Department of
Transportation Grants to any public entity through a
competitive application process.
▪ Eligible entities include:
o state and local governments
o tribal governments
o transit authorities
o port authorities
o metro planning organizations
o multi-state applicants.
4. 4
DOT Consideration Process
▪ This is a competitive process. DOT receives hundreds of
applications in each cycle.
▪ Not all receive funding.
▪ Each applicant must provide a cost-benefit analysis to help
DOT compare the costs and benefits for the project.
▪ Projects must be “shovel ready” since funds must be
obligated within 2 years.
▪ This means that all planning and environmental approvals
must be substantially completed at the time of application.
5. 5
DOT Consideration Process
▪ NEPA analysis, rights-of-way, environmental permitting, and
other project approval processes must be completed or
nearly complete.
▪ If these pre-construction activities would utilize BUILD
funds, DOT may obligate the funding in phases. This would
require additional documentation and monitoring of project
milestones.
▪ Most projects only receive a portion of the total funding
needed. Do not expect to fully fund a project through
BUILD.
6. 6
Applying for a BUILD Grant
▪ DOT will issue a notice of funding availability via the Federal
Register.
▪ Applicants will then have 90 days to submit the completed
forms to DOT via its Award Management System.
▪ Applicants should apply for a username and password on
the Award Management System now at grants.gov. It can
take several weeks to authorize new users.
7. 7
Applying for a BUILD Grant
▪ Ensure all documentation regarding project description;
environmental assessments and permitting; NEPA
processes; cost-benefit analysis; and other information is
submitted to the system.
▪ Because the cost-benefit analysis is highly technical, many
applicants hire a consultant to prepare it.
▪ DOT will then notify applicants if they are awarded a BUILD
Grant.
▪ You may reapply the following year if not awarded a BUILD
Grant.
8. 8
2021 BUILD Grant Cycle
▪ Consolidated Appropriations Act (CAA) contained
$1,000,000,000 in infrastructure funding.
▪ Funding is to be allocated by DOT using selection criteria
for 2017 BUILD Grants
▪ Notice of Funding Opportunity to be issued by April 26,
2021.
o https://www.transportation.gov/buildgrants/build-nofo
9. 9
Specific 2021 BUILD Grant Cycle Earmarks
▪ $30,000,000 can be used for the planning, preparation, and
design of eligible projects. Of which $10,000,000 must be
used for projects located in or directly benefiting areas of
“persistent poverty.”
▪ 20% may be used to pay the subsidy for administrative
project costs.
▪ $5-25 million grant size, except for rural communities where
grant is $1 million.
10. 10
Specific 2021 BUILD Grant Cycle Earmarks (cont.)
▪ “equitable geographic distribution funds, an appropriate balance
in addressing the needs of urban and rural areas, including tribal
areas, and the investment in a variety of transportation modes.”
▪ Each state limited to 10% ($100,000,000)
▪ Prioritize projects with supporting funding.
▪ 80% federal match, generally.
▪ No match for grants supporting areas of persistent poverty.
▪ 50% to rural communities—any area that is not located within
boundaries of an areas (as of 2010 census) having a population
> 200,000
13. 13
BUILD Grant Tips
▪ Consider hiring a consultant to prepare the benefit-cost
analysis.
▪ Assemble a broad multi-jurisdictional team
▪ Plan for multiple application cycles, and continue to iterate.
▪ Can the project support rural communities and areas of
persistent poverty and be multi-modal?
16. 16
Trends and Observations—Montana
▪ Index state gas tax to inflation?
▪ Sustainable state funding
mechanism?
▪ http://mtinfrastructure.org/wp-
content/uploads/2020/12/FullRep
ort-MT2018.pdf
18. 18
Trends and Observations—Biden’s Infrastructure
package
▪ At least $2 trillion, potentially up to $4 trillion over ten years.
▪ Transportation, water and sewer lines, and green energy
sector
▪ Unclear if it can pass through “reconciliation,” i.e. no
republican support.
▪ Funding? Tax increases targeted at incomes over $1 million
▪ Private equity partnerships?
▪ Increased gas tax?