The Ferguson Group Blog

EPA Opens FY 2012 Brownfield Application Period

This afternoon, the U.S. Environmental Protection Agency (EPA) released solicitations for its FY 2012 Brownfields Assessment, Cleanup and Revolving Loan Fund Grants. Full Requests for Proposals for each program can be found here and applications are due by November 28.

Brownfields Assessment Grants provide localities with funding to inventory, characterize, assess, and conduct planning (including area-wide planning, economic reuse planning and cleanup planning) and community involvement related to sites potentially contaminated by petroleum or hazardous substances (brownfield sites). Brownfields Cleanup Grants allow localities to fund cleanup activities at brownfield sites that are owned by the grant recipient. Brownfields Revolving Loan Fund Grants provide funding that allows localities to capitalize a revolving fund and to make loans and provide subgrants to carry out cleanup activities at brownfield sites.

Although these guidelines are very similiar to those produced by EPA in FY 2011, long-time applicants should note that EPA has made one significant change to the Brownfield Cleanup Grant program. Now applicants for Cleanup Grants must prepare a draft Analysis of Brownfields Cleanup Alternatives and make this document available for public review and comment no later than November 14.

Bipartisan Agreement Should Prevent Government Shutdown

Following news that the Federal Emergency Management Agency (FEMA) had enough funding available to sustain disaster relief efforts through the end of the current Fiscal Year on Friday, the Senate reached a deal tonight to fund the federal government through November 18th. FEMA's announcement that it would not require additional funding to continue relief operations this week defused a potential confrontation between Senate Democrats and House Republicans over how to provide additional disaster relief funding. Republicans had insisted that emergency funding be offset by cuts to other federal programs, while Democrats argued that disaster relief funds should not require a specific offset. By pre-empting the need to provide funding in Fiscal Year 2011 for disaster relief, FEMA's declaration enabled Congress to avoid the issue of offsetting disaster funding and allow FEMA to begin immediately drawing down its Fiscal Year 2012 funding on Saturday.

With the House in recess this week and the Fiscal Year ending on Friday, there was concern that Congress would be unable to pass a stopgap measure to prevent a government shutdown on Saturday. The two bills approved by the Senate tonight would allow the House to remain on recess while keeping the government running. The first bill, which is expected to be approved this week by voice vote in the House, will provide federal funding through the end of next week. The second bill, which the House is expected to debate when it returns next week, would extend funds through November 18th. Both bills enforce the cap on Fiscal Year 2012 spending that was agreed to in the debt ceiling debate.

The House and Senate are expected to put forth a omnibus bill to fund the federal government through the rest of Fiscal Year 2012 within the next few months, and to try and pass this legislation by the November 18th deadline.

Funding for Parks and Playgrounds: Funding Formulas at Risk for Localities

In 1965, Congress enacted the Land and Water Conservation Fund (LWCF) for the purpose of “helping preserve, develop, and assure access to outdoor recreation facilities to strengthen the health of U.S. citizens.”  LWCF is much more than a federal land acquisition program and provides considerable benefit to local communities.  Recognizing that not all communities host a national park or federal lands and that the purpose of this program would most likely be achieved at the local level, Congress created the LWCF State Assistance program- a dollar-for-dollar matching grant program that assists states and localities in recreational planning and development of outdoor recreational areas.

The LWCF State Assistance program funds a wide array of projects ranging in scope from land acquisition for parks, playgrounds or recreational areas; ADA compliance projects; to the construction of restrooms, picnic areas, campgrounds, lighting and much more. 

Under the existing formula, funding decisions are left to the states.   Currently, Congress annually appropriates a designated amount to the State Assistance program.  40% of the appropriated amount is equally divided among all the states and territories.  The remaining 60% is primarily allocated based on state population.  Localities then submit project funding requests to the state which has the discretion to decide which projects receive funding.  The success of the State Assistance program is due, in part, to the fact that someone sitting in Washington, DC is not deciding which local projects should be funded.  Instead, state officials who are familiar with the needs of the state and local communities make the funding decisions based on those needs.   

The Department of Interior (DOI) is working to change the current distribution formula in a way that would decrease the amount of funding that annually flows to states and the localities within those states.   DOI’s proposal continues to equally allocate 40% of the State Assistance funding among all the states and territories.   However, the 60% of the funding would be under the control of DOI and would be allocated through a national competitive grant program.  This portion of the funding would no longer be spread out among ALL states; it would likely go to only a few states.  While states will submit a list of projects, DOI will have sole discretion over which projects are funded by the competitive grant program.

States can currently decide which projects to fund based on their priorities, but DOI’s competitive grant program will fund only those projects that that meet the priorities of the Administration which are urban parks, large scale conservation, and blueways.  Assumingly, this means that small projects like ball fields and playgrounds in local communities will not eligible for funding through the competitive grant program.  Using 60% of LWCF State Assistance funding for the Administration’s priorities will yield less funding for small projects, will create greater competition for limited funds, and will ultimately result in the fewer projects being funded at the local level.

For instance, in FY11 $37.4 million was allocated to states through the State Assistance program and Florida received approximately $1.6 million.  A DOI grant program based on $37.4 million would equally divide $14.8 million among all the states.  So Florida, just like every other state, would receive approximately $292,000 but would be at considerable risk for losing $1.4 million at a time when it is reporting $32 million in unmet need.

Allowing DOI to use the bulk of LWCF State Assistance funding for projects of its choosing at a time when local park and recreation agencies in every state throughout the country is in need of funding just doesn’t make sense or achieve the original intent of the program.

The National Recreation and Park Association encourages local governments to discuss this issue with your Governor’s office and to ask your Member of Congress to ensure the distribution formula is not changed. 

 By Stacey Pine, Guest Author

(Stacey Pine is Chief Government Affairs Officer for the National Recreation and Park Association (NRPA), a national organization that is dedicated to educating professionals and the public on the essential nature of parks and recreation. NRPA advocates for increased national funding for parks and recreation through federal grants and initiatives that support healthy lifestyles, economic vitality and environmental stewardship. )

House Passes Continuing Resolution

Leaders in the House were able to garner enough support in order to successfully pass a continuing resolution (CR) this morning. The measure remains largely unchanged from the original version that failed to pass on Wednesday. The CR would extend the federal funding authority through November 18^th and would set the spending level at $1.043 trillion, the cap agreed to during negotiations over the debt ceiling and a $7 billion cut from FY 2011.

The bill would also provide about $3.65 billion in disaster aid, which would be offset by eliminating $1.5 billion from the Department of Energy's (DOE) Advanced Technology Vehicles Manufacturing Loan Program. In addition, the bill would cut $100 million from the DOE loan guarantee program that supported Solyndra before it went bankrupt.

Senate Majority Leader Harry Reid and many other Senate Democrats have said that they will reject this legislation, making the prospect of passing the CR before the start of next week’s scheduled congressional recess dim.

Both House and Senate Democrats want more money than the House passed measure provides and disagree with the offsets provided in the House bill.

Disagreement Over Disaster Relief Threatens Government Shutdown

With the current federal Fiscal Year ending on September 30th and both the House and Senate scheduled to be in recess next week, there is not yet a clear path forward for Congress to extend federal funding authority into October. Although Congressional leaders in both chambers are seeking to pass a Continuing Resolution (CR) that would extend federal funding through November 18th, disagreements over how to replenish the Federal Emergency Management Agency's (FEMA) Disaster Relief Fund have thus far derailed these efforts.

With FEMA's Fund depleted by recent disasters, the Senate has passed legislation that would provide $6.9 billion for the Fund, including an immediate infusion of $500 million, without any of this funding offset by cuts to other federal programs. Republican leadership in the House has insisted that funding for disaster relief must be at least partially offset with spending cuts, and earlier this week put forward a bill that would have provided $3.7 billion for the Fund, but also cut $1 billion from the Department of Energy's Advanced Technology Vehicles Manufacturing Loan Program. Unlike the Senate bill, the House disaster relief bill also included a CR to extend federal funding through November 18th. Last night, the House's bill was defeated by a vote of 195-230, after a coalition of Democrats and conservative Republicans joined together to reject the legislation. With this bill's defeat, it is unclear how House and Senate leadership will be able to bridge the gap that remains between their current positions.

Congressional leadership has already advised its members that a weekend session is possible as work continues on both disaster relief funding and the CR. If no agreement is reached to extend federal funding authority, a government shutdown on October 1st is possible. The absence of an agreement on disaster relief may mean delays for states, localities and individuals recovering from recent and future disasters.

DOT Announces Grant Funding Opportunity for Rail Line Relocation and Improvement Projects

The Federal Railroad Administration (FRA) will award just over $11.5 million for projects to relocate or improve railroad tracks around the country, according to a notice published in today’s federal register.

Under the Rail Line Relocation and Improvement Program, States and units of local government are eligible for a grant from the FRA for any construction project that improves the route or structure of a rail line and involves a lateral or vertical relocation of any portion of the rail line, or is carried out for the purpose of mitigating the adverse effects of rail traffic on safety, motor vehicle traffic flow, community quality of life, or economic development.

All projects are subject to a non-federal matching requirement equal to at least 10 percent of the project’s total cost. There are no minimum or maximum dollar thresholds for project awards.

Applications are due on October 19^th.

FRA officials recently awarded $20 million to eight rail infrastructure projects around the country. Those awards can be viewed here.

President Obama’s Proposed Tax Changes May Impact Municipal Bonds

Today President Obama sent his “Plan for Economic Growth and Deficit Reduction” to the Joint Select Committee on Deficit Reduction, which is charged with finding at least $1.2 trillion in budgetary savings. This plan includes a series of changes to the tax code and entitlement programs that would produce an estimated $3 trillion in savings over the next decade.

One of the cornerstones of the plan is a proposal to limit the value of itemized deductions and exclusions to 28% for households with a gross income over $250,000, or individuals with a gross income of $200,000. If enacted, this provision is likely to have an impact on the market for municipal bonds. Since 1913, interest income from municipal bonds has been exempt from federal taxation, with no limit to the amount of tax-free interest that could be earned. Under the new proposal, interest proceeds from municipal bonds would only be tax-exempt until a high-income taxpayer’s deductions and exclusions reached the 28% cap. All interest earnings beyond that cap would be subject to federal taxation.

Although the precise impact of this policy is still unclear, there is significant concern that reducing the benefits of municipal bond investments for high-income persons might make these bonds less attractive to investors, raising interest rates and reducing the amount available for municipal borrowers. House Republicans have rejected the proposed 28% limitation, contending that this provision represents a tax increase that would hurt charitable organizations and local and State governments.

Senate Passes FAA/Transportation Extension Bill

The Federal Aviation Administration (FAA) was facing another partial shutdown at midnight tonight due to an impasse over how the Senate would consider the a bill to extend taxation and funding authority for both the FAA and the Highway Trust Fund. However after a series of bipartisan negotiations, last night the Senate passed by a vote of 92-6 a transportation extension bill approved by the House earlier this week. The bill includes a four-month FAA extension and a six-month extension for surface transportation programs. Attempts by Senator Tom Coburn (R-OK) to eliminate a mandate that states spend 10 percent of their surface transportation funding on “transportation enhancements” such as bike lanes and footpaths, threatened to hold up consideration of the legislation. However, Sen. Coburn eventually relented, saying that he had won assurances that the next multi-year highway bill will include his language allowing states to opt out of the enhancements.

The bill now goes to the White House, where President Obama is expected to sign the bill sometime before the end of today.

Guide to the American Jobs Act for Local Governments

Last week, President Obama addressed a Joint Session of Congress and outlined his strategy to help boost the economy and create more jobs in America.  On Monday, September 12th, he sent the American Jobs Act (AJA) to the Hill. In outlining his legislative proposal, the President declared that this bill would “provide a jolt to an economy that has stalled” and repeatedly urged Congress to “pass this jobs bill.”

Although Congress is unlikely to quickly pass the AJA in its entirety, several elements of the proposal have attracted preliminary support from House Republican leadership and it is possible that segments of the legislation will be considered by Congress in the coming months. To view an overview of how new federal funding might flow to local governments if the AJA is enacted, please visit our Guide to the American Jobs Act. Stay tuned to this blog to remain up-to-speed on the progress to enact the AJA.

Assistance to Firefighters Grant Application Period Extended to September 23rd

The U.S. Department of Homeland Security's Federal Emergency Management Agency (FEMA) announced that the Assistance to Firefighters Grant (AFG) application period will be extended for one additional week. The new deadline for AFG applications is September 23, 2011 at 5:00 P.M. EST.