CARES Act ODOT Funds Disbursement

DATE CORRECTION:

Under the Needs Based Process section: Beginning on April 17, 2020, the Public Transportation Division will begin accepting applications for grant agreements for remaining CARES funding.

Federal Coronavirus Relief

The recently-enacted “Coronavirus Aid, Relief, and Economic Security Act”, or CARES Act, includes provisions for new transit funding to assist providers during the COVID-19 pandemic. Oregon’s allocation of these funds under the Federal Transit Administration (FTA) Section 5311 Formula Grants for Rural Areas Program is $42,686,023. These funds will be distributed to eligible agencies by ODOT’s Public Transportation Division (PTD).

Note:  FTA also provided relief for 5311 grant recipients to seek reimbursement for COVID-19-related operating expenses at the more favorable capital match rate. This is outside of the CARES legislation. More information about this flexibility can be found here:  PTD Website Coronavirus.


Federal Funding Details

Eligible Recipients

Providers that meet FTA eligibility for 5311 Rural and 5311(f) Intercity funds

Eligible Activities

Projects for preventing, preparing for, and responding to the COVID-19 disease such as:

• Operating costs to maintain service
• Lost revenue due to COVID-19 public health emergency
• Purchase of personal protective equipment associated with response to the pandemic
• Administrative leave salaries for operations personnel

The FTA has also stated that although the priority for the funding is operational expenses, FTA will generally consider all expenses normally eligible under the Section 5307 and 5311 programs that are incurred on or after January 20, 2020 to be in response to economic or other conditions caused by COVID-19 and thus eligible under the CARES Act. 

Match Rate

100% Federal / 0% Local

Project Eligibility Date

January 20, 2020

Access to Funds Through PTD

Transit providers across the state are reducing service, eliminating routes, and, in some cases, closing their doors during this pandemic. Funding assistance to continue service and to recover in the following months is essential. CARES funds have been provided for this purpose. Due to the urgent need, PTD is working to move funds out to transit providers as quickly as possible while also considering future needs and recovery.

Approximately one quarter ($9.3 Million) of the total CARES funds allocated to Oregon will be made available in the next few months as formula funding to any of the current 35 5311 agencies who indicate a need and apply for funding. The remaining funds (approximately $33.3 Million) will be distributed on a continuing basis using a need-based application process. Guidance and applications will be available on the PTD website later this month.

Formula Funds Process

• The equivalent of one year’s worth of 5311 funding will be made available in new grant agreements written to current 5311 agencies based on their 2019-21 biennial allocation. Agreements will be written with agencies expressing interest and need for these funds by submitting an application (see below.)
• Agreements will be effective on May 15 or the date federal funds are available, whichever is sooner. Eligible activities from January 20, 2020 to the present will qualify for reimbursement.
• These initial agreements will expire on June 30, 2021 to allow time for agencies to assess their needs and determine best uses of the funds based on eligible project types. However, agreement amendments for additional funding and time extensions may be allowed as provider needs become clearer.
• Statements of work will cover eligible project activities at a high level. This will allow flexibility for transit providers to complete any eligible activity at their discretion and to adapt quickly to changing needs.
• Agreements will be reimbursement-based and reimbursement requests will generally require the same type of expense documentation as is currently required for other agreement types.

Note:  Since some COVID-19-related expenses may be difficult to document, e.g., loss of revenue, PTD will provide examples and guidance on what is expected.

• Monthly reimbursement requests are allowed.
• Funds will come from FTA’s one-time allocation in response to the COVID-19 pandemic. These funds will not be available again and will not change the regular Section 5311 funding process.
• No match is required.

To indicate interest in formula funds, please complete the “CARES Immediate Formula Funds” form located here:  CARES Formula Funds Request and submit it to PTD no later than April 17, 2020. Choosing your agency from the drop-down menu on the form populates the dollar amount you will be receiving. Your agency will receive a grant agreement for the total one-year amount. Funds that are not expended by the agreement expiration date will be de-obligated and returned to the program for PTD distribution.  A chart of all allocations for formula funds is attached to this announcement.

Only those agencies responding by the deadline will be included in this initial distribution. In the interest of getting these funds out into Oregon communities as soon as possible, late responses cannot be considered.

Agencies choosing not to participate in the formula disbursement may request funding through the need-based application process described in the next section. Any formula funds remaining after the initial disbursement will be added to the total available for distribution in the need-based process.

As soon as CARES funds are made available by FTA, each responding agency will receive a new grant agreement for signature. PTD requests that these agreements be routed for signature as quickly as possible. We will also expedite agreement execution on our end.

Need-Based Funds Process

The balance of CARES funds, approximately $33.3 M, remaining after the formula process described above will be distributed to 5311 and 5311(f) recipients through an ongoing need-based solicitation process. The intent of this process is to ensure funds are directed to transit providers that are realizing the greatest negative impacts under COVID. This process gives PTD the flexibility to be responsive to the ongoing and evolving impacts of COVID. 

Beginning on April 17, 2020, PTD will begin accepting applications for grant agreements for remaining CARES funding. Applications will be available on PTD’s website on the Funding Opportunities page and will be accepted until December 31, 2020 or until all funds are expended. Applicants may submit more than one application at any time during the application period. Applicants may receive no award or a partial award, depending on the level of need, as determined by a review committee of PTD staff, including Regional Transit Coordinators (RTC), program coordinators, and fund managers as well as one PTAC representative who is not a recipient of the funding. The review committee will use previous agency quarterly reports, NTD data, and RTC knowledge of local needs to determine the reasonableness of funding requests.   

Eligible Recipients

• Publicly-funded transit providers eligible to receive Section 5311 or 5311(f) funding who are in compliance with 5311/5311(f) drug and alcohol and other requirements beginning the first day eligible expenses are incurred. This does not automatically entitle future 5311 funding.
• For-profit public transit providers may be eligible; additional conditions will apply.

Eligible Projects

• Projects supporting FTA 5311 (rural) or 5311(f) (intercity) eligible transit service and also those intended to prevent, prepare for, or respond to COVID-19

Eligible Activities

Include projects for preventing, preparing for, and responding to the COVID-19 disease such as:

• Operating costs to maintain service
• Lost revenue due to COVID-19 public health emergency
• Purchase of personal protective equipment associated with response to the pandemic
• Administrative leave salaries for operations personnel

Match Rate

100% Federal / 0% Local

Project Eligibility Date

January 20, 2020


Resources

FTA Coronavirus Page:  https://www.transit.dot.gov/coronavirus

FTA Questions Link: :  FTAResponse@dot.gov

ODOT COVID-19 Page:  https://www.oregon.gov/odot/pages/incident.aspx

ODOT RPTD COVID-19 Page:  https://www.oregon.gov/odot/RPTD/Pages/News.aspx


Contacts

Regional Transit Coordinators:  Link

Marsha Hoskins, PTD Public Transportation Manager marsha.a.hoskins@odot.state.or.us 503.986.3266

Formula Allocation Estimates