Notice of Funding Availability for the Department of Transportation's National Infrastructure Investments Under the Transportation, Housing and Urban Development, and Related Agencies Appropriations Act for 2010, 30460-30480 [2010-13078]

Agencies

• Office of the Secretary
• DEPARTMENT OF TRANSPORTATION

[Federal Register Volume 75, Number 104 (Tuesday, June 1, 2010)]
[Notices]
[Pages 30460-30480]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-13078]


-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Office of the Secretary

[Docket No. DOT-OST-2010-0076]


Notice of Funding Availability for the Department of 
Transportation's National Infrastructure Investments Under the 
Transportation, Housing and Urban Development, and Related Agencies 
Appropriations Act for 2010

AGENCY: Office of the Secretary of Transportation, DOT.

ACTION: Notice of funding availability.

-----------------------------------------------------------------------

SUMMARY: This notice announces the availability of funding and requests 
proposals for the Department of Transportation's National 
Infrastructure Investments. In addition, this notice announces 
selection criteria and pre-application and application requirements for 
the National Infrastructure Investments.
    On December 16, 2009, the President signed the Transportation, 
Housing and Urban Development, and Related Agencies Appropriations Act 
for 2010 (Div. A of the Consolidated Appropriations Act, 2010 (Pub. L. 
111-117, Dec. 16, 2009)) (``FY 2010 Appropriations Act''). The FY 2010 
Appropriations Act appropriated $600 million to be awarded by the 
Department of Transportation (``DOT'') for National Infrastructure 
Investments. This appropriation is similar, but not identical to the 
appropriation for the Transportation Investment Generating Economic 
Recovery, or ``TIGER Discretionary Grant'', program authorized and 
implemented pursuant to the American Recovery and Reinvestment Act of 
2009 (the ``Recovery Act''). Because of the similarity in program 
structure, DOT is referring to the grants for National Infrastructure 
Investments under the FY 2010 Appropriations Act as ``TIGER II 
Discretionary Grants''. As with the TIGER program, funds for the TIGER 
II program are to be awarded on a competitive basis for projects that 
will have a significant impact on the Nation, a metropolitan area or a 
region. Through this notice, DOT is soliciting applications for TIGER 
II Discretionary Grants.
    On April 26, 2010, DOT published an interim notice announcing the 
availability of funding for TIGER II Discretionary Grants. Because this 
is a new program, the interim notice also requested comments on the 
proposed selection criteria and guidance for awarding TIGER II 
Discretionary Grants. DOT considered the comments that were submitted 
in accordance with the interim notice and decided to publish this 
notice revising some elements of the interim notice. Each of the 
substantive revisions made in this notice are described below in 
``Supplemental Information.'' In the event that this solicitation does 
not result in the award and obligation of all available funds, DOT may 
decide to publish an additional solicitation.

DATES: Pre-applications must be submitted by July 16, 2010, at 5 p.m. 
EDT (the ``Pre-Application Deadline''). Final applications must be 
submitted through Grants.gov by August 23, 2010, at 5 p.m. EDT (the 
``Application Deadline''). The DOT pre-application system will open no 
later than June 23, 2010 to allow prospective applicants to submit pre-
applications. Subsequently, the Grants.gov ``Apply'' function will open 
on July 30, 2010, allowing applicants to submit applications. While 
applicants are encouraged to submit pre-applications in advance of the 
Pre-Application Deadline, pre-applications will not be reviewed until 
after the Pre-Application Deadline. Similarly, while applicants are 
encouraged to submit applications in advance of the Application 
Deadline, applications will not be evaluated, and awards will not be 
made, until after the Application Deadline. Pursuant to the FY 2010 
Appropriations Act, DOT will evaluate all applications and announce the

[[Page 30461]]

projects that have been selected to receive TIGER II Discretionary 
Grants no sooner than September 15, 2010.

ADDRESSES: Pre-applications must be submitted electronically to DOT and 
applications must be submitted electronically through Grants.gov. Only 
pre-applications received by DOT and applications received through 
Grants.gov will be deemed properly filed. Instructions for submitting 
pre-applications to DOT and applications through Grants.gov are 
included in Section VIII (Pre-Application and Application Cycle).

FOR FURTHER INFORMATION CONTACT: For further information concerning 
this notice please contact the TIGER II Discretionary Grant program 
manager via e-mail at TIGERIIGrants@dot.gov, or call Robert Mariner at 
202-366-8914. 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 on DOT's Web site 
at https://www.dot.gov/recovery/ost/TIGERII.

SUPPLEMENTARY INFORMATION: On April 26, 2010, DOT published an interim 
notice announcing funding availability for the TIGER II Discretionary 
Grant program. Because this is a new program, the interim notice also 
requested comments on the proposed selection criteria and guidance for 
awarding TIGER II Discretionary Grants. DOT considered the comments 
that were submitted in accordance with the interim notice and decided 
to publish this notice revising some elements of the interim notice. 
Each of the substantive revisions made in this notice are described in 
the following numbered paragraphs.
    This notice revises the interim notice published on April 26, 2010, 
as follows:
    1. The notice is no longer an interim notice, and DOT is no longer 
considering comments on the proposed selection criteria and guidance 
for awarding TIGER II Discretionary Grants. This notice is the 
operative notice of funding availability for the TIGER II Discretionary 
Grant program.
    2. In the interim notice, DOT indicated that it was seeking 
comments on its intention to conduct a multi-agency evaluation and 
award process with the Department of Housing and Urban Development 
(``HUD'') for DOT's TIGER II Planning Grants (as defined below in the 
``Background'' section) and HUD's Community Challenge Planning Grants, 
which were also authorized under the FY 2010 Appropriations Act. DOT 
and HUD have considered the comments that were submitted and have 
agreed to conduct a multi-agency evaluation and award process for their 
respective planning grants. This approach is consistent with DOT and 
HUD's participation in the ``Partnership for Sustainable Communities'' 
with the U.S. Environmental Protection Agency (``EPA'') to help 
American families in all communities--rural, suburban and urban--gain 
better access to affordable housing, more transportation options, lower 
transportation costs, and a cleaner environment. The details of this 
multi-agency planning grant program, including information about 
eligibility, selection criteria, and pre-application and application 
requirements, are described in a joint notice of funding availability 
to be published in the Federal Register by DOT and HUD. The joint 
notice will be published shortly after this notice and signed by the 
Secretaries of each agency. Interested parties are encouraged to review 
the joint notice for more information. However, DOT applicants may 
request funding for planning and capital expenses for the same project 
under this notice.
    3. This notice provides additional guidance in the ``Background'' 
section about the matching funds required to satisfy the FY 2010 
Appropriations Act. DOT will consider any non-Federal funds as a local 
match for purposes of this program, whether such funds are contributed 
by the public sector (State or local) or the private sector. However, 
DOT will not consider funds already expended as a local match. 
Furthermore, the 20 percent matching requirement for project that are 
not in rural areas is an eligibility requirement. All projects, whether 
in an urban or rural area, can increase their competitiveness by 
demonstrating significant contributions in excess of the required local 
match, and DOT will give priority, based on the FY 2010 Appropriations 
Act, to projects for which Federal funding is required to complete an 
overall financing package.
    4. This notice clarifies the definition of ``rural area'' that DOT 
is using for purposes of the TIGER II Discretionary Grant program. The 
interim notice stated that DOT will consider a project to be in a rural 
area if ``all or a material portion of a project is located in a rural 
area''. This notice clarifies that DOT will only consider a material 
portion of a project to be located in a rural area if the majority of 
the project is located in a rural area. The reason this language was 
included in the notice was to ensure that rural transportation 
corridors could be considered to be in rural areas even if the 
corridors terminate in, or otherwise pass through, Urbanized Areas (as 
such term is defined by the Census Bureau). To the extent more than a 
de minimis portion of a project is located in an Urbanized Area, this 
notice asks applicants to identify the estimated percentage of project 
costs that will be spent in the Urbanized Area. This will allow DOT to 
appropriately account for the $140 million that the FY 2010 
Appropriations Act sets aside for rural areas. Also, this notice 
revises the footnote in Section V (Projects in Rural Areas) to clarify 
that rural areas include any area not in an Urbanized Area, as such 
term is defined by the Census Bureau, including Urban Clusters.
    5. This notice revises Section II(B)(1)(b)(ii) (Environmental 
Approvals) to provide additional guidance about the assurance that 
applicants should provide with their pre-applications to demonstrate 
that the project has received (or reasonably anticipates receipt of) 
all necessary environmental approvals required for the project to 
proceed rapidly upon receipt of a TIGER II Discretionary Grant.
    6. This notice revises the Economic Competitiveness criterion 
described in Section II(B)(1)(a)(ii) and the guidance for conducting a 
benefit-cost analysis provided in Appendix A to further clarify what 
the Department considers to be long-term economic benefits.
    This notice revises Section VI (TIGER II TIFIA Payments) to clarify 
that the correct amount of the TIFIA application fee is $50,000, not 
$30,000. Applicants do not need to submit this fee with their 
application for a TIGER II TIFIA Payment. However, if a project is 
selected for a TIGER II TIFIA Payment, the project sponsor will be 
invited to submit a TIFIA application, and will be required to pay the 
TIFIA application fee with submission of the TIFIA application. These 
substantive changes to the interim notice published on April 26, 2010, 
have been included in this notice. All comments received prior to the 
May 7, 2010, deadline were received and considered by DOT.

Table of Contents

I. Background
TIGER II Discretionary Grants
II. Selection Criteria and Guidance on Application of Selection 
Criteria
III. Evaluation and Selection Process
IV. Grant Administration
V. Projects in Rural Areas
VI. TIGER II TIFIA Payments
VII. TIGER II Planning Grants
Application Requirements
VIII. Pre-Application and Application Cycle
IX. Project Benefits
X. Questions and Clarifications
Appendix A: Additional Information on Cost Benefit Analysis

[[Page 30462]]

Appendix B: Additional Information on Applying Through Grants.gov

I. Background

Recovery Act TIGER Discretionary Grants

    On February 17, 2009, the President of the United States signed the 
Recovery Act, which appropriated $1.5 billion of discretionary grant 
funds to be awarded by DOT for capital investments in surface 
transportation infrastructure. DOT refers to these grants as Grants for 
Transportation Investment Generating Economic Recovery or ``TIGER 
Discretionary Grants''. DOT solicited applications for TIGER 
Discretionary Grants through a notice of funding availability published 
in the Federal Register on June 17, 2009 (an interim notice was 
published on May 18, 2009). Applications for TIGER Discretionary Grants 
were due on September 15, 2009 and DOT received over 1400 applications 
with funding requests totaling almost $60 billion. Funding for 51 
projects totaling nearly $1.5 billion was announced on February 17, 
2010. Grant announcements ranged from $3.15 million to $105 million for 
individual projects, with an average award size of approximately $30 
million and the median award amount being $22 million. Less than three 
percent of the applications (by dollar value) received any funding. 
Projects were selected for funding based on their alignment with the 
selection criteria specified in the June 17, 2009, Federal Register 
notice for the TIGER Discretionary Grant program.
    On December 16, 2009, the President signed the FY 2010 
Appropriations Act, which appropriated $600 million to DOT for National 
Infrastructure Investments using language that is similar, but not 
identical, to the language in the Recovery Act authorizing the TIGER 
Discretionary Grants. DOT is referring to the grants for National 
Infrastructure Investments as TIGER II Discretionary Grants.

TIGER II Discretionary Grants

    Like the TIGER Discretionary Grants, TIGER II Discretionary Grants 
are for capital investments in surface transportation infrastructure 
and are to be awarded on a competitive basis for projects that will 
have a significant impact on the Nation, a metropolitan area, or a 
region. Key requirements of the TIGER II Discretionary Grant program 
are summarized below, and material differences from the TIGER 
Discretionary Grant program are highlighted.
    ``Eligible Applicants'' for TIGER II Discretionary Grants are State 
and local governments, including U.S. territories, tribal governments, 
transit agencies, port authorities, metropolitan planning organizations 
(MPOs), other political subdivisions of State or local governments, and 
multi-State or multi-jurisdictional groups applying through a single 
lead applicant (for multi-jurisdictional groups, each member of the 
group, including the lead applicant, must be an otherwise eligible 
applicant as defined in this paragraph).
    Projects that are eligible for TIGER II Discretionary Grants under 
the FY 2010 Appropriations Act (``Eligible Projects'') include, but are 
not limited to: (1) Highway or bridge 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; and (4) port infrastructure investments. 
Federal wage rate requirements included in subchapter IV of chapter 31 
of title 40, United States Code, apply to all projects receiving funds. 
This description of Eligible Projects is, in practice, identical to the 
description of eligible projects under the TIGER Discretionary Grant 
program.\1\
---------------------------------------------------------------------------

    \1\ Consistent with the FY 2010 Appropriations Act, DOT will 
apply the following principles in determining whether a project is 
eligible as a capital investment in surface transportation: (1) 
Surface transportation facilities generally include roads, highways 
and bridges, ports, freight and passenger railroads, transit 
systems, and projects that connect transportation facilities to 
other modes of transportation; and (2) surface transportation 
facilities also include any highway or bridge project eligible under 
title 23, U.S.C., or public transportation project eligible under 
chapter 53 of title 49, U.S.C. Please note that the Department may 
use a TIGER II Discretionary Grant to pay for the surface 
transportation components of a broader project that has non-surface 
transportation components, and applicants are encouraged to apply 
for TIGER II Discretionary Grants to pay for the surface 
transportation components of these projects.
---------------------------------------------------------------------------

    The FY 2010 Appropriations Act requires a new solicitation of 
applications and, therefore, any unsuccessful applicant for a TIGER 
Discretionary Grant that wishes to be considered for a TIGER II 
Discretionary Grant must reapply according to the procedures in this 
notice.
    The FY 2010 Appropriations Act specifies that TIGER II 
Discretionary Grants may be not less than $10 million and not greater 
than $200 million. The comparable figures for TIGER Discretionary 
Grants funded under the Recovery Act were $20 million and $300 million, 
although the largest grant announced under the TIGER program was $105 
million. Based on DOT's experience with the TIGER Discretionary Grant 
program, it is unlikely that the $200 million maximum grant size for 
the TIGER II Discretionary Grant program will be reached for any 
project. The Recovery Act gave DOT discretion to waive the minimum 
grant size for significant projects in smaller cities, regions, or 
States. The FY 2010 Appropriations Act does not provide similar 
authority to waive the minimum $10 million grant size for TIGER II 
Discretionary Grants. However, for projects located in rural areas (as 
defined in section V (Projects in Rural Areas)), the minimum TIGER II 
Discretionary Grant size is $1 million. The term ``grant'' in the 
provision of the FY 2010 Appropriations Act specifying a minimum grant 
size does not include TIGER II TIFIA Payments, as defined below.
    Pursuant to the FY 2010 Appropriations Act, no more than 25 percent 
of the funds made available for TIGER II Discretionary Grants (or $150 
million) may be awarded to projects in a single State. The comparable 
figure for TIGER Discretionary Grants was 20 percent (or $300 million).
    The FY 2010 Appropriations Act directs that not less than $140 
million of the funds provided for TIGER II Discretionary Grants is to 
be used for projects located in rural areas. There was no comparable 
amount set aside for rural areas under the Recovery Act for TIGER 
Discretionary Grants. In awarding TIGER II Discretionary Grants 
pursuant to the FY 2010 Appropriations Act, 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 the investment in a variety of transportation modes. The Recovery 
Act provided a similar provision for the TIGER Discretionary Grant 
program, but with no language on ensuring investments in a variety of 
transportation modes.
    TIGER II Discretionary Grants may be used for up to 80 percent of 
the costs of a project, but priority must be given to projects for 
which Federal funding is required to complete an overall financing 
package and projects can increase their competitiveness by 
demonstrating significant non-Federal contributions.\2\ The Recovery 
Act included a similar priority for TIGER Discretionary Grants, but 
allowed DOT to fund up to 100 percent of the costs of a project. For 
TIGER II Discretionary Grants, DOT may increase the Federal

[[Page 30463]]

share above 80 percent only for projects located in rural areas, in 
which case DOT may fund up to 100 percent of the costs of a project. 
However, the statutory requirement to give priority to projects that 
use Federal funds to complete an overall financing package applies to 
projects located in rural areas as well, and projects located in rural 
areas can increase their competitiveness for purposes of the TIGER II 
program by demonstrating significant non-Federal financial 
contributions.
---------------------------------------------------------------------------

    \2\ DOT will consider any non-Federal funds for purposes of 
meeting the 20 percent match requirement, whether such funds are 
contributed by the public sector (State or local) or the private 
sector; however, DOT will not consider funds already expended for 
purposes of meeting the 20 percent match requirement.
---------------------------------------------------------------------------

    The Recovery Act required DOT to give priority to projects that 
were expected to be completed by February 17, 2012. The FY 2010 
Appropriations Act does not include any similar requirements for the 
TIGER II Discretionary Grants, although TIGER II funds are only 
available for obligation through September 30, 2012.
    The Recovery Act emphasizes the generation of near-term economic 
effects from expenditures on project costs, such as construction job 
creation, as a fundamental goal of the TIGER Discretionary Grant 
program. However, the FY 2010 Appropriations Act does not include 
explicit emphasis on job creation and instead focuses more broadly on 
the impact of projects on the Nation, a metropolitan area, or a region 
including the medium and long-term benefits that would accrue post-
project completion. Therefore, in all cases, TIGER II Discretionary 
Grant applications will need to be competitive on the merits of the 
medium to long-term impacts of the projects themselves, as demonstrated 
by a project's alignment with the Long-Term Outcomes selection 
criterion described in Section II(A) (Selection Criteria) below. 
However, because communities nationwide continue to face difficult 
economic times, DOT will also continue to incorporate near-term impacts 
like job creation in its evaluation of TIGER II applications, as 
demonstrated by a project's alignment with the Job Creation & Economic 
Stimulus selection criterion described in Section II(A) below. 
Consideration of near-term benefits will apply particularly in the case 
of projects that will employ people in Economically Distressed Areas as 
discussed in more detail in Section II(A) below.
    The FY 2010 Appropriations Act allows for an amount not to exceed 
$150 million of the $600 million to be used to pay the subsidy and 
administrative costs of the Transportation Infrastructure Finance and 
Innovation Act of 1998 (``TIFIA'') program, a Federal credit assistance 
program, if it would further the purposes of the TIGER II Discretionary 
Grant program. DOT is referring to these payments as ``TIGER II TIFIA 
Payments.'' The Recovery Act authorized DOT to use up to $200 million 
of the amount available for TIGER Discretionary Grants for similar 
purposes.
    Based on the subsidy amounts required for projects in the TIFIA 
program's existing portfolio, DOT estimates that $150 million of TIGER 
II TIFIA Payments could support approximately $1.5 billion in TIFIA 
credit assistance. The amount of budget authority required to support 
TIFIA credit assistance is calculated on a project-by-project basis. 
Applicants for TIGER II TIFIA Payments should submit an application 
pursuant to this notice and a separate TIFIA letter of interest, as 
described below in Section VI (TIGER II TIFIA Payments). Unless 
otherwise noted, or the context requires otherwise, references in this 
notice to TIGER II Discretionary Grants include TIGER II TIFIA 
Payments.
    DOT reserves the right to offer a TIGER II TIFIA Payment to an 
applicant that applied for a TIGER II Discretionary Grant even if DOT 
does not choose to fund the requested TIGER II Discretionary Grant and 
the applicant did not specifically request a TIGER II TIFIA Payment. 
Therefore, as described below in Section VI (TIGER II TIFIA Payments), 
applicants for TIGER II Discretionary Grants, particularly applicants 
that require a substantial amount of funds to complete a financing 
package, should indicate whether or not they have considered applying 
for a TIGER II TIFIA Payment. To the extent an applicant thinks that 
TIFIA may be a viable option for the project, applicants should provide 
a brief description of a project finance plan that includes TIFIA 
credit assistance and identifies a source of revenue which may be 
available to support the TIFIA credit assistance.
    The FY 2010 Appropriations Act also permits DOT to use an amount 
not to exceed $35 million of the available TIGER II funds for the 
planning, preparation, or design of Eligible Projects (``TIGER II 
Planning Grants''). TIGER II Planning Grants may be awarded to Eligible 
Applicants. The Recovery Act did not explicitly provide funding for 
similar activities under the TIGER Discretionary Grant program.
    The FY 2010 Appropriations Act provides that the Secretary of 
Transportation may retain up to $25 million of the $600 million to fund 
the award and oversight of TIGER II Discretionary Grants. Portions of 
the $25 million may be transferred for these purposes to the 
Administrators of the Federal Highway Administration, the Federal 
Transit Administration, the Federal Railroad Administration, and the 
Federal Maritime Administration.
    The purpose of this notice is to solicit applications for TIGER II 
Discretionary Grants.

TIGER II Discretionary Grants

II. Selection Criteria and Guidance on Application of Selection 
Criteria

    This section specifies the criteria that DOT will use to evaluate 
applications for TIGER II Discretionary Grants. The criteria 
incorporate the statutory eligibility requirements for this program, 
which are specified in this notice as relevant. This section is divided 
into two parts. Part A (Selection Criteria) specifies the criteria that 
DOT will use to rate projects. Additional guidance about how DOT will 
apply these criteria, including illustrative metrics and examples, is 
provided in Part B (Additional Guidance on Selection Criteria).

A. Selection Criteria

    TIGER II Discretionary Grants will be awarded based on the 
selection criteria as outlined below. There are two categories of 
selection criteria, ``Primary Selection Criteria'' and ``Secondary 
Selection Criteria.''
    The Primary Selection Criteria include (1) Long-Term Outcomes and 
(2) Job Creation & Economic Stimulus. The Secondary Selection Criteria 
include (1) Innovation and (2) Partnership. The Primary Selection 
Criteria are intended to capture the primary objective of the TIGER II 
provisions of the FY 2010 Appropriations Act, which is to invest in 
infrastructure projects that will have a significant impact on the 
Nation, a metropolitan area, or a region. The Secondary Selection 
Criteria are intended to capture the benefits of new and/or innovative 
approaches to achieving this programmatic objective.
1. Primary Selection Criteria
(a) Long-Term Outcomes
    DOT will give priority to projects that have a significant impact 
on desirable long-term outcomes for the Nation, a metropolitan area, or 
a region. Applications that do not demonstrate a likelihood of 
significant long-term benefits in this criterion will not proceed in 
the evaluation process. The following types of long-term outcomes will 
be given priority:
    (i) State of Good Repair: Improving the condition of existing 
transportation facilities and systems, with particular emphasis on 
projects that minimize life-cycle costs.

[[Page 30464]]

    (ii) Economic Competitiveness: Contributing to the economic 
competitiveness of the United States over the medium- to long-term.
    (iii) Livability: Fostering livable communities through place-based 
policies and investments that increase transportation choices and 
access to transportation services for people in communities across the 
United States.
    (iv) Environmental Sustainability: Improving energy efficiency, 
reducing dependence on oil, reducing greenhouse gas emissions and 
benefitting the environment.
    (v) Safety: Improving the safety of U.S. transportation facilities 
and systems.
(b) Job Creation & Economic Stimulus
    While the TIGER II Discretionary Grant program is not a Recovery 
Act program, job creation and economic stimulus remain a top priority 
of this Administration; therefore, DOT will give priority (as it did 
for the TIGER Discretionary Grant program) to projects that are 
expected to quickly create and preserve jobs and stimulate rapid 
increases in economic activity, particularly jobs and activity that 
benefit economically distressed areas as defined by section 301 of the 
Public Works and Economic Development Act of 1965, as amended (42 
U.S.C. 3161) (``Economically Distressed Areas'').\3\
---------------------------------------------------------------------------

    \3\ While Economically Distressed Areas are typically identified 
under the Public Works and Economic Development Act at the county 
level, for the purposes of this program DOT will consider regions, 
municipalities, smaller areas within larger communities, or other 
geographic areas to be Economically Distressed Areas if an applicant 
can demonstrate that any such area otherwise meets the requirements 
of an Economically Distressed Area as defined in section 301 of the 
Public Works and Economic Development Act of 1965.
---------------------------------------------------------------------------

2. Secondary Selection Criteria
(a) Innovation
    DOT will give priority to projects that use innovative strategies 
to pursue the long-term outcomes outlined above.
(b) Partnership
    DOT will give priority to projects that demonstrate strong 
collaboration among a broad range of participants and/or integration of 
transportation with other public service efforts.

B. Additional Guidance on Selection Criteria

    The following additional guidance explains how DOT will evaluate 
each of the selection criteria identified above in Section II(A) 
(Selection Criteria). Applicants are encouraged to demonstrate the 
responsiveness of a project to any and all of the selection criteria 
with the most relevant information that applicants can provide, 
regardless of whether such information has been specifically requested, 
or identified, in this notice. Any such information shall be considered 
part of the application, not supplemental, for purposes of the 
application size limits specified below in Section IX(D) (Length of 
Application).
1. Primary Selection Criteria
(a) Long-Term Outcomes
    In order to measure a project's alignment with this criterion, DOT 
will assess the public benefits generated by the project, as measured 
by the extent to which a project produces one or more of the following 
outcomes:
    (i) State of Good Repair: In order to determine whether the project 
will improve the condition of existing transportation facilities or 
systems, including whether life-cycle costs will be minimized, DOT will 
assess (i) Whether the project is part of, or consistent with, relevant 
State, local or regional efforts and plans to maintain transportation 
facilities or systems in a state of good repair, (ii) whether an 
important aim of the project is to rehabilitate, reconstruct or upgrade 
surface transportation assets that, if left unimproved, threaten future 
transportation network efficiency, mobility of goods or people, or 
economic growth due to their poor condition, (iii) whether the project 
is appropriately capitalized up front and uses asset management 
approaches that optimize its long-term cost structure, and (iv) the 
extent to which a sustainable source of revenue is available for long-
term operations and maintenance of the project. The application should 
include any quantifiable metrics of the facility or system's current 
condition and performance and, to the extent possible, projected 
condition and performance, with an explanation of how the project will 
improve the facility or system's condition, performance and/or long-
term cost structure, including calculations of avoided operations and 
maintenance costs and associated delays.
    (ii) Economic Competitiveness: In order to determine whether a 
project promotes the economic competitiveness of the United States, DOT 
will assess whether the project will measurably contribute over the 
long term to growth in the productivity of the American economy. For 
purposes of aligning a project with this outcome, applicants should 
provide evidence of how improvements in transportation outcomes (such 
as time savings and operating cost savings) translate into long-term 
economic productivity benefits. These long-term economic benefits that 
are provided by the completed project are different from the near-term 
economic benefits of construction that are captured in the Job Creation 
& Economic Stimulus criterion. In weighing long-term economic 
competitiveness benefits, applicants should describe how the project 
supports increased long-term efficiency and productivity.
    Priority consideration will be given to projects that: (i) Improve 
long-term efficiency, reliability or cost-competitiveness in the 
movement of workers or goods, or (ii) make improvements that increase 
the economic productivity of land, capital or labor at specific 
locations, particularly Economically Distressed Areas. Applicants may 
propose other methods of demonstrating a project's contribution to the 
economic competitiveness of the country and such methods will be 
reviewed on a case-by-case basis.
    Economic competitiveness may be demonstrated by the project's 
ability to increase the efficiency and effectiveness of the 
transportation system through integration or better use of all existing 
transportation infrastructure (which may be evidenced by the project's 
involvement with or benefits to more than one mode and/or its 
compatibility with and preferably augmentation of the capacities of 
connecting modes and facilities), but only to the extent that these 
enhancements lead to the economic benefits that are identified in the 
opening paragraph of this section.
    For purposes of demonstrating economic benefits, applicants should 
estimate National-level or region-wide economic benefits on 
productivity and production, and should net out those benefits most 
likely to result in transfers of economic activity from one localized 
area to another. Therefore, in estimating local and regional benefits, 
applicants should consider net increases in economic productivity and 
benefits, and should take care not to include economic benefits that 
are being shifted from one location in the United States to another 
location. Highly localized benefits will receive the most consideration 
under circumstances where such benefits are most likely to improve an 
Economically Distressed Area (as defined herein) or otherwise improve 
access to more productive employment opportunities for under-employed 
and disadvantaged populations.

[[Page 30465]]

    Finally, the TIGER II program strives to promote long-term economic 
growth in a manner that will be sustainable for generations to come. 
Therefore, for projects designed to enhance economic competitiveness, 
applicants should also provide evidence that the project will achieve 
the goals of this outcome in an environmentally sustainable manner. To 
satisfy this condition, applicants should reference the fourth 
criterion in this Section II(B) ``Environmental Sustainability'' for 
more information on what features promote sustainable growth and be 
sure to address the extent to which sustainability features are 
incorporated into the proposed project's economic impact.
    (iii) Livability: Livability investments are projects that not only 
deliver transportation benefits, but are also designed and planned in 
such a way that they have a positive impact on qualitative measures of 
community life. This element of long-term outcomes delivers benefits 
that are inherently difficult to measure. However, it is implicit to 
livability that its benefits are shared and therefore magnified by the 
number of potential users in the affected community. Therefore, 
descriptions of how projects enhance livability should include a 
description of the affected community and the scale of the project's 
impact as measured in person-miles traveled or number of trips 
affected. In order to determine whether a project improves the quality 
of the living and working environment of a community, DOT will consider 
whether the project furthers the six livability principles developed by 
DOT with HUD and EPA as part of the Partnership for Sustainable 
Communities, which are listed fully at https://www.dot.gov/affairs/2009/dot8009.htm. For this criterion, the Department will give particular 
consideration to the first principle, which prioritizes the creation of 
affordable and convenient transportation choices.\4\ Specifically, DOT 
will qualitatively assess whether the project:
---------------------------------------------------------------------------

    \4\ In full, this principle reads: ``Provide more transportation 
choices. Develop safe, reliable and economical transportation 
choices to decrease household transportation costs, reduce our 
nation's dependence on foreign oil, improve air quality, reduce 
greenhouse gas emissions and promote public health.''
---------------------------------------------------------------------------

    (1) Will significantly enhance or reduce the average cost of user 
mobility through the creation of more convenient transportation options 
for travelers;
    (2) will improve existing transportation choices by enhancing 
points of modal connectivity, increasing the number of modes 
accommodated on existing assets, or reducing congestion on existing 
modal assets;
    (3) will improve accessibility and transport services for 
economically disadvantaged populations, non-drivers, senior citizens, 
and persons with disabilities, or will make goods, commodities, and 
services more readily available to these groups; and/or
    (4) is the result of a planning process which coordinated 
transportation and land-use planning decisions and encouraged community 
participation in the process.

Livability improvements may include projects for new or improved biking 
and walking infrastructure. Particular attention will be paid to the 
degree to which such projects contribute significantly to broader 
traveler mobility through intermodal connections, enhanced job 
commuting options, or improved connections between residential and 
commercial areas. Projects that appear designed primarily as isolated 
recreational facilities and do not enhance traveler mobility as 
described above will not be funded.
    (iv) Environmental Sustainability: In order to determine whether a 
project promotes a more environmentally sustainable transportation 
system, DOT will assess the project's ability to:
    (1) Improve energy efficiency, reduce dependence on oil and/or 
reduce greenhouse gas emissions; applicants are encouraged to provide 
quantitative information regarding expected reductions in emissions of 
CO2 or fuel consumption as a result of the project, or 
expected use of clean or alternative sources of energy; projects that 
demonstrate a projected decrease in the movement of people or goods by 
less energy-efficient vehicles or systems will be given priority under 
this factor; and
    (2) maintain, protect or enhance the environment, as evidenced by 
its avoidance of adverse environmental impacts (for example, adverse 
impacts related to air or water quality, wetlands, and endangered 
species) and/or by its environmental benefits (for example, improved 
air quality, wetlands creation or improved habitat connectivity).

Applicants are encouraged to provide quantitative information that 
validates the existence of substantial transportation-related costs 
related to energy consumption and adverse environmental effects and 
evidence of the extent to which the project will reduce or mitigate 
those costs.
(v) Safety
    In order to determine whether the project improves safety, DOT will 
assess the project's ability to reduce the number, rate and 
consequences of surface transportation-related crashes, and injuries 
and fatalities among drivers and/or non-drivers in the United States or 
in the affected metropolitan area or region, and/or the project's 
contribution to the elimination of highway/rail grade crossings, the 
protection of pipelines, or the prevention of unintended release of 
hazardous materials.
    Evaluation of Expected Project Costs and Benefits: DOT believes 
that benefit-cost analysis (``BCA''), including the monetization and 
discounting of costs and benefits in a common unit of measurement in 
present-day dollars, is an important discipline. For BCA to yield 
useful results, full consideration of costs and benefits is necessary. 
These include traditionally quantified fuel and travel time savings as 
well as reductions in greenhouse gas emissions, water quality impacts, 
public health effects, and other costs and benefits that are more 
indirectly related to vehicle-miles or that are harder to measure. In 
addition, BCA should attempt to measure the indirect effects of 
transportation investments on land use and on the portions of household 
budgets spent on transportation. The systematic process of comparing 
expected benefits and costs helps decision-makers organize information 
about, and evaluate trade-offs between, alternative transportation 
investments. DOT has a responsibility under Executive Order 12893, 
Principles for Federal Infrastructure Investments, 59 FR 4233, to base 
infrastructure investments on systematic analysis of expected benefits 
and costs, including both quantitative and qualitative measures.
    Therefore, applicants for TIGER II Discretionary Grants are 
generally required to identify, quantify, and compare expected benefits 
and costs, subject to the following qualifications:
    All applicants will be expected to prepare an analysis of benefits 
and costs; however, DOT understands that the level of expense that can 
be expected in these analyses for surveys, travel demand forecasts, 
market forecasts, statistical analyses, and so on will be less for 
smaller projects than for larger projects. Smaller projects will 
therefore be given greater latitude to estimate benefits subjectively. 
However, even smaller projects will be expected to quantify these 
subjective estimates of benefits and costs, and to provide whatever 
evidence they have available to lend credence to their subjective 
estimates. Estimates of benefits should be presented in monetary terms 
whenever possible; if a monetary estimate is not possible, then at 
least a

[[Page 30466]]

quantitative estimate (in physical, non-monetary terms, such as 
ridership estimates, emissions levels, etc.) should be provided.
    The requirement to conduct an economic analysis is not applicable 
to applicants seeking TIGER II Planning Grants; however, such 
applicants should describe the expected benefits of the underlying 
project(s) that the planning activities will help advance.
    The lack of a useful analysis of expected project benefits and 
costs may be the basis for denying an award of a TIGER II Discretionary 
Grant to an applicant. If it is clear to DOT that the total benefits of 
a project are not reasonably likely to outweigh the project's costs, 
DOT will not award a TIGER II Discretionary Grant to the project. 
Consistent with the broader goals of DOT and the FY 2010 Appropriations 
Act, DOT can consider some factors that do not readily lend themselves 
to quantification or monetization, including equitable geographic 
distribution of grant funds and an appropriate balance in addressing 
the needs of urban and rural areas and investment in a variety of 
transportation modes.
    Detailed guidance for the preparation of benefit-cost analyses is 
provided in Appendix A. Benefits should be presented, whenever 
possible, in a tabular form showing benefits and costs in each year for 
the useful life of the project. Benefits and costs should both be 
discounted to the year 2010 and present discounted values of both the 
stream of benefits and the stream of costs should be calculated. If the 
project has multiple parts, each of which has independent utility, the 
benefits and costs of each part should be estimated and presented 
separately. A project component has independent utility if the 
component itself is an Eligible Project and provides benefits that 
satisfy the selection criteria specified in this notice, as described 
further in Section III(B) (Evaluation of Eligibility) below. The 
benefit-cost analysis should be summarized in the text of the 
application itself, but the details may be presented in an attachment 
to the application.
    DOT recognizes that some categories of costs and benefits are more 
difficult to quantify or monetize than others. In presenting benefit-
cost analyses, applicants should include qualitative discussion of the 
categories of benefits and costs that they were not able to quantify, 
noting that these benefits and costs are in addition to other benefits 
and costs that were quantified. However, in the event of an 
unreasonable absence of data and analysis, or poor applicant effort to 
put forth a robust quantification of benefits and costs, the 
application is unlikely to receive further consideration. In general, 
the lack of a useful analysis comparing benefits and costs for any such 
project is ground for denying the award of a TIGER II Discretionary 
Grant.
    Evaluation of Project Performance: Each project selected for TIGER 
II Discretionary Grant funding will be required to work with DOT on the 
development and implementation of a plan to collect information and 
report on the project's performance with respect to the relevant long-
term outcomes that are expected to be achieved through construction of 
the project.
(b) Job Creation & Economic Stimulus
    In order to measure a project's alignment with this criterion, DOT 
will assess whether the project promotes the short- or long-term 
creation or preservation of jobs and whether the project rapidly 
promotes new or expanded business opportunities during construction of 
the project or thereafter. Demonstration of a project's rapid economic 
impact is critical to a project's alignment with this criterion. 
Applicants are encouraged to provide information to assist DOT in 
making these assessments, including the total amount of funds that will 
be expended on construction and construction-related activities by all 
of the entities participating in the project and, to the extent 
measurable, the number and type of jobs to be created and/or preserved 
by the project by calendar quarters during construction and annually 
thereafter. Applicants should also identify any business enterprises to 
be created or benefited by the project during its construction and once 
it becomes operational.\5\
---------------------------------------------------------------------------

    \5\ The Executive Office of the President, Council of Economic 
Advisers, issued a memorandum in May 2009 on ``Estimates of Job 
Creation from the American Recovery and Reinvestment Act of 2009.'' 
The memorandum is available at: https://www.whitehouse.gov/administration/eop/cea/Estimate-of-Job-Creation/. Table 5 of this 
memorandum provides a simple rule for estimating job-years created 
by government spending, which is that $92,000 of government spending 
creates one job-year. Of this, 64% of the job-year estimate 
represents direct and indirect effects and 36% of the job-year 
estimate represents induced effects. Applicants can use this 
estimate as an appropriate indicator of direct, indirect and induced 
job-years created by TIGER II Discretionary Grant spending, but are 
encouraged to supplement or modify this estimate to the extent they 
can demonstrate that such modifications are justified. However, 
since the May 2009 memorandum makes job creation purely a function 
of the level of expenditure, applicants should also demonstrate how 
quickly jobs will be created under the proposed project. Projects 
that generate a given number of jobs more quickly will have a more 
favorable impact on economic recovery. A quarter-by-quarter 
projection of the number of direct job-hours expected to be created 
by the project is useful in assessing the impacts of a project on 
economic recovery. Furthermore, applicants should be aware that 
certain types of expenditures are less likely to align well with the 
Job Creation & Economic Stimulus criterion. These types of 
expenditures include, among other things, engineering or design work 
and purchasing existing facilities or right-of-way.
---------------------------------------------------------------------------

    Consistent with the Recovery Act, the Updated Implementing Guidance 
for the American Recovery and Reinvestment Act of 2009 issued by the 
Office of Management and Budget (``OMB'') on April 3, 2009 (the ``OMB 
Guidance''), and consistent with applicable Federal laws, applicants 
are encouraged to provide information to assist DOT in assessing (1) 
Whether the project will promote the creation of job opportunities for 
low-income workers through the use of best practice hiring programs and 
utilization of apprenticeship (including pre-apprenticeship) programs; 
(2) whether the project will provide maximum practicable opportunities 
for small businesses and disadvantaged business enterprises, including 
veteran-owned small businesses and service disabled veteran-owned small 
businesses; (3) whether the project will make effective use of 
community-based organizations in connecting disadvantaged workers with 
economic opportunities; (4) whether the project will support entities 
that have a sound track record on labor practices and compliance with 
Federal laws ensuring that American workers are safe and treated 
fairly; and (5) whether the project implements best practices, 
consistent with our Nation's civil rights and equal opportunity laws, 
for ensuring that all individuals--regardless of race, gender, age, 
disability, and national origin--benefit from TIGER II grant funding.
    To the extent possible, applicants should indicate whether the 
populations most likely to benefit from the creation or preservation of 
jobs or new or expanded business opportunities are from Economically 
Distressed Areas. In addition, to the extent possible, applicants 
should indicate whether the project's procurement plan is likely to 
create follow-on jobs and economic stimulus for manufacturers and 
suppliers that support the construction industry. A key consideration 
in assessing projects under this criterion will be how quickly jobs are 
created.
    In evaluating a project's alignment with this criterion, DOT will 
assess whether a project is ready to proceed rapidly upon receipt of a 
TIGER II Discretionary Grant, as evidenced by:

[[Page 30467]]

    (i) Project Schedule: A feasible and sufficiently detailed project 
schedule demonstrating that the project can begin construction quickly 
upon receipt of a TIGER II Discretionary Grant and that the grant funds 
will be spent steadily and expeditiously once construction starts; the 
schedule should show how many direct, on-project jobs are expected to 
be created or sustained during each calendar quarter after the project 
is underway;
    (ii) Environmental Approvals: Receipt (or reasonably anticipated 
receipt) of all environmental approvals necessary for the project to 
proceed to construction on the timeline specified in the project 
schedule, including satisfaction of all Federal, State and local 
requirements and completion of the National Environmental Policy Act 
(``NEPA'') process;
    To demonstrate satisfaction of this requirement, applicants should 
provide assurances with their pre-applications that NEPA review is 
complete or substantially complete and submit relevant draft or final 
NEPA documentation--preferably by way of a Web site link--for DOT 
review. DOT is unlikely to select a project for TIGER II Discretionary 
Grant funding if it involves significant environmental impacts and has 
not substantially completed required environmental and regulatory 
reviews.
    DOT will consider exceptions to the requirement that NEPA be 
substantially complete upon application on a case-by-case basis. An 
applicant must provide a reasonable justification for why NEPA review 
was not initiated with a Federal agency prior to the date of this 
notice, and an assurance that the necessary environmental reviews can 
be completed at least 90 days in advance of the September 30, 2012, 
deadline for obligation of TIGER II Discretionary Grant funds. An 
example of a reasonable justification for why an applicant has not 
initiated NEPA review would be if, prior to the availability of TIGER 
II Discretionary Grant funds, there was no reasonable expectation of 
receiving Federal funding for the project. A project may be selected 
for award but will not receive award grant monies until NEPA is 
complete and all other necessary environmental approvals have been 
received.
    An applicant seeking to justify an exception to this requirement 
should submit the information listed below with its application:
    a. The information required under Sections VIII(C)(2)(V) and 
VIII(F)-(G) (Contents of Applications) of this notice;
    b. Environmental studies or other documents--preferably by way of a 
Web site link--that describe in detail known potential project impacts, 
and possible mitigation for those impacts;
    c. A description of completed, or planned and anticipated 
coordination with Federal and State regulatory agencies for permits and 
approvals;
    d. An estimate of the time required for completion of NEPA and all 
other required Federal, State or local environmental approvals; and
    e. An identification of the proposed NEPA class of action (i.e., 
Categorical Exclusion, Environmental Assessment, or Environmental 
Impact Statement).
    (iii) Legislative Approvals: Receipt of all necessary legislative 
approvals (for example, legislative authority to charge user fees or 
set toll rates), and evidence of support from State and local elected 
officials; evidence of support from all relevant State and local 
officials is not required, however, the evidence should demonstrate 
that the project is broadly supported;
    (iv) State and Local Planning: The inclusion of the project in the 
relevant State, metropolitan, and local planning documents, or a 
certification from the appropriate agency that the project will be 
included in the relevant planning document prior to award of a TIGER II 
Discretionary Grant \6\; any MPO that is applying for a TIGER II 
Discretionary Grant should provide evidence that the owner of the 
project supports the application and will cooperate in carrying out the 
activities to be supported by the TIGER II Discretionary Grant;
---------------------------------------------------------------------------

    \6\ All regionally significant projects requiring an action by 
the FHWA or the FTA must be in the metropolitan transportation plan, 
TIP and 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. To the extent a project is required to 
be on a metropolitan transportation plan, TIP and/or STIP it will 
not receive a TIGER II Discretionary Grant until it is included in 
such plans. Projects not currently included in these plans can be 
amended in 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 TIGER II 
Discretionary Grant. Freight and passenger rail projects are not 
required to be on the State Rail Plans called for in the Passenger 
Rail Investment and Improvement Act of 2008. This is consistent with 
the exemption for high speed and intercity passenger rail projects 
under the Recovery Act. However, applicants seeking funding for 
freight and passenger rail 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.
---------------------------------------------------------------------------

    (v) Technical Feasibility: The technical feasibility of the 
project, including completion of substantial preliminary engineering 
work; and
    (vi) Financial Feasibility: The viability and completeness of the 
project's financing package (assuming the availability of the requested 
TIGER II Discretionary Grant funds), including evidence of stable and 
reliable financial commitments and contingency reserves, as 
appropriate, and evidence of the grant recipient's ability to manage 
grants.
    DOT reserves the right to revoke any award of TIGER II 
Discretionary Grant funds and to award such funds to another project to 
the extent that such funds are not timely expended and/or construction 
does not begin in accordance with the project schedule. Because 
projects have different schedules DOT will consider on a case-by-case 
basis how much time after selection for award of a TIGER II 
Discretionary Grant each project has before funds must be obligated 
(consistent with law) and construction started. This deadline will be 
specified for each TIGER II Discretionary Grant in the project-specific 
grant agreements signed by the grant recipients and will be based on 
critical path items identified by applicants in response to items (i) 
through (vi) above. For example, if an applicant reasonably anticipates 
that NEPA requirements will be completed and final documentation 
received within 30 to 60 days of award of a TIGER II Discretionary 
Grant, this timeframe will be taken into account in evaluating the 
application, but also in establishing a deadline for obligation of 
funds and commencement of construction. DOT's ability to obligate funds 
for TIGER II Discretionary Grants expires on September 30, 2012.
2. Secondary Selection Criteria
(a) Innovation
    In order to measure a project's alignment with this criterion, DOT 
will assess the extent to which the project uses innovative technology 
(including, for example, intelligent transportation systems, dynamic 
pricing, rail wayside or on-board energy recovery, smart cards, real-
time dispatching, active traffic management, radio frequency 
identification (RFID), or others) to pursue one or more of the long-
term outcomes outlined above and/or to significantly enhance the 
operational performance of the transportation system. DOT will also 
assess the extent to which the project incorporates innovations that 
demonstrate the value of new approaches to, among other things, 
transportation funding and finance, contracting, project delivery, 
congestion management, safety management, asset management, or long-
term operations and maintenance. The applicant should clearly

[[Page 30468]]

demonstrate that the innovation is designed to pursue one or more of 
the long-term outcomes outlined above and/or significantly enhance the 
transportation system.
    Innovative, multi-modal projects are often difficult to fund under 
traditional transportation programs. DOT will consider the extent to 
which innovative projects might be difficult to fund under other 
programs and will give priority to projects that align well with the 
Primary Selection Criteria but are unlikely to receive funding under 
traditional programs.
(b) Partnership
    (i) Jurisdictional & Stakeholder Collaboration: In order to measure 
a project's alignment with this criterion, DOT will assess the 
project's involvement of non-Federal entities and the use of non-
Federal funds, including the scope of involvement and share of total 
funding. DOT will give priority to projects that receive financial 
commitments from, or otherwise involve, State and local governments, 
other public entities, or private or nonprofit entities, including 
projects that engage parties that are not traditionally involved in 
transportation projects, such as nonprofit community groups. Pursuant 
to the OMB Guidance, DOT will give priority to projects that make 
effective use of community-based organizations in connecting 
disadvantaged people with economic opportunities.
    In compliance with the FY 2010 Appropriations Act, DOT will give 
priority to projects for which a TIGER II Discretionary Grant will help 
to complete an overall financing package. An applicant should clearly 
demonstrate the extent to which the project cannot be readily and 
efficiently completed without Federal assistance, and the extent to 
which other sources of Federal assistance are or are not readily 
available for the project. DOT will assess the amount of private debt 
and equity to be invested in the project or the amount of co-investment 
from State, local or other non-profit sources.
    DOT will also assess the extent to which the project demonstrates 
collaboration among neighboring or regional jurisdictions to achieve 
National, regional or metropolitan benefits. Multiple States or 
jurisdictions may submit a joint application and should identify a lead 
State or jurisdiction as the primary point of contact. Where multiple 
States or jurisdictions are submitting a joint application, the 
application should demonstrate how the project costs are apportioned 
between the States or jurisdictions to assist DOT in making the 
distributional determinations described below in Section III(C) 
(Distribution of Funds).
    (ii) Disciplinary Integration: In order to demonstrate the value of 
partnerships across government agencies that serve various public 
service missions and to promote collaboration on the objectives 
outlined in this notice, DOT will give priority to projects that are 
supported, financially or otherwise, by non-transportation public 
agencies that are pursuing similar objectives. For example, DOT will 
give priority to transportation projects that create more livable 
communities and are supported by relevant public housing agencies or 
are consistent with State or local efforts or plans to promote economic 
development, revitalize communities, or protect historic or cultural 
assets; similarly, DOT will give priority to transportation projects 
that encourage energy efficiency or improve the environment and are 
supported by relevant public agencies with energy or environmental 
missions.

III. Evaluation and Selection Process

A. Evaluation Process

    TIGER II Discretionary Grant applications will be evaluated in 
accordance with the below discussed evaluation process. DOT will 
establish a pre-application evaluation team to review each pre-
application that is received by DOT on or prior to the Pre-Application 
Deadline. This evaluation team will be organized and led by the Office 
of the Secretary and will include members from the relevant modal 
administrations in DOT with the most experience and/or expertise in the 
relevant project areas (the ``Cognizant Modal Administrations''). These 
representatives will include technical and professional staff with 
relevant experience and/or expertise. This evaluation team will be 
responsible for analyzing whether the pre-application satisfies the 
following key threshold requirements:
    1. The project is an Eligible Project or a DOT Eligible Planning 
Activity;
    2. NEPA is substantially complete, as described above in Section 
II(B)(2)(b)(ii) (Environmental Approvals); and
    3. Local matching funds to support 20 percent or more of the costs 
for the project are identified and committed; this requirement is not 
applicable to projects located in rural areas, however, applications 
for projects in rural areas will be more competitive to the extent they 
include non-Federal financial contributions.
    To the extent the pre-application evaluation team determines that a 
pre-application does not satisfy these key threshold requirements, DOT 
will inform the project sponsor that an application for the project 
will not be reviewed unless the application submitted on or prior to 
the Application Deadline can demonstrate that the requirement has been 
addressed.
    DOT will establish application evaluation teams to review each 
application that is received by DOT prior to the Application Deadline. 
These evaluation teams will be organized and led by the Office of the 
Secretary and will include members from each of the Cognizant Modal 
Administrations. These representatives will include technical and 
professional staff with relevant experience and/or expertise. The 
evaluation teams will be responsible for evaluating and rating all of 
the projects and making funding recommendations to the Secretary. The 
evaluation process will