Title
Apply for U.S. Department of Transportation Low-Carbon Transportation Materials Program Grant Opportunity for Federal Fiscal Year 2021-22 - Federal Inflation Reduction Act Funding (Ordinance S-51574) - Citywide
Description
Request to retroactively authorize the City Manager, or his designee, to apply for, accept, and if awarded, enter into an agreement for disbursement of Federal funding from the U.S. Department of Transportation (USDOT) through the Low-Carbon Transportation Materials (LCTM) Program for Federal Fiscal Year (FFY) 2021-22. Further request to authorize the City Treasurer to accept, and the City Controller to disburse, all funds related to this item. Funding for this grant opportunity is available through the Federal Inflation Reduction Act. The total grant funds applied for will not exceed $13 million, and there is no local match required.
Report
Summary
The LCTM Program is a funding initiative under the Biden-Harris administration's Federal Inflation Reduction Act, Federal Buy Clean Initiative, which aims to catalyze clean energy industries and jobs. The USDOT announced a Notice of Funding Opportunity (NOFO) on August 27, 2024, with over $800 million available. The grant deadline was November 25, 2024. If awarded, all funds must be obligated by September 30, 2026, and expended by September 30, 2031, with a performance period of one to six years.
The City will undertake several initiatives, including developing an Environmental Product Declaration (EPD) program to quantify carbon emissions. The City will evaluate the opportunity to implement low-carbon materials on upcoming capital improvement projects and look for opportunities to update contract and administrative requirements and establish a quality assurance plan with post-construction monitoring. The City will also pursue the opportunity to establish a framework for identifying or incentivizing low-carbon materials, research new material and products to pilot or test on Phoenix roadways and purchase new material lab equipment to better test and evaluate the benefit of low carbon materials. The proposed LCTM program aims to reduce carbon emissions and enhance the sustainability and resilience of the Phoenix’s transportation network. If awarded, City staff will also look for opportunities to continue partnering with local universities and industry on this low-carbon transportation materials initiative.
Financial Impact
The estimated total incremental cost of the project is approximately $13 million. The maximum Federal participation rate is 100 percent of incremental costs, with no local match requirement. If awarded, the Federal match would not exceed $13 million (100 percent of incremental costs), with no local match requirement.
Potential grant funding received is available through the Federal Inflation Reduction Act, from USDOT through the FFY 2021-22 LCTM Program grant opportunity.
Department
Responsible Department
This item is submitted by Deputy City Managers Inger Erickson and Mario Paniagua, and the Street Transportation Department.