Expanding Federal Support for Predevelopment Activities for Nonfederal Domestic Infrastructure Assets

[Federal Register Volume 80, Number 14 (Thursday, January 22, 2015)]

[Presidential Documents]

[Pages 3455-3457]

From the Federal Register Online via the Government Publishing Office [www.gpo.gov]

[FR Doc No: 2015-01256]

Presidential Documents

Federal Register / Vol. 80, No. 14 / Thursday, January 22, 2015 /

Presidential Documents

[[Page 3455]]

Memorandum of January 16, 2015

Expanding Federal Support for Predevelopment

Activities for Nonfederal Domestic Infrastructure

Assets

Memorandum for the Heads of Executive Departments and

Agencies

The United States is significantly underinvesting in

both the maintenance of existing public infrastructure

and the development of new infrastructure projects.

While there is no replacement for adequate public

funding, innovative financing options and increased

collaboration between the private and public sectors

can help to increase overall investment in

infrastructure.

However, a major challenge for innovative

infrastructure projects, whether using emerging

technologies or alternative financing, is the lack of

funding for the phases of infrastructure project

development that precede actual construction.

Infrastructure projects require upfront costs, commonly

known as ``predevelopment'' costs, for activities such

as project and system planning, economic impact

analyses, preliminary engineering assessments, and

environmental review

nfrastructure project

development that precede actual construction.

Infrastructure projects require upfront costs, commonly

known as ``predevelopment'' costs, for activities such

as project and system planning, economic impact

analyses, preliminary engineering assessments, and

environmental review. Although only accounting for a

small percentage of total costs, predevelopment

activities have considerable influence on which

projects will move forward, where and how they will be

built, who will fund them, and who will benefit from

them. Yet, in light of factors like fiscal constraints,

the extent of overall needs, and risk aversion, State,

local, and tribal governments tend to focus scarce

resources on constructing and developing conventional

projects and addressing their most critical

infrastructure needs, thereby underinvesting in

predevelopment.

Greater attention to the predevelopment phase could

yield a range of benefits--for example, providing the

opportunity to develop longer-term, more innovative,

and more complex infrastructure projects and

facilitating assessment of a range of financing

approaches, including public-private partnerships.

Additional investment in predevelopment costs also may

enable State, local, and tribal governments to utilize

innovations in infrastructure design and emerging

technologies, reduce long-term costs to infrastructure

project users, and provide other benefits, such as

improved environmental performance and enhanced

resilience to climate change.

also may

enable State, local, and tribal governments to utilize

innovations in infrastructure design and emerging

technologies, reduce long-term costs to infrastructure

project users, and provide other benefits, such as

improved environmental performance and enhanced

resilience to climate change.

The Federal Government can meaningfully expand

opportunities for public-private collaboration,

encourage more transformational projects, and improve

project outcomes by encouraging Federal investment in

robust predevelopment activities and providing other

forms of support, such as technical assistance, to

communities during the predevelopment phase.

Therefore, by the authority vested in me as President

by the Constitution and the laws of the United States

of America, I hereby direct the following:

Section 1. Policy. It shall be the policy of the

Federal Government for all executive departments and

agencies (agencies) that provide grants, technical

assistance, and other forms of support for nonfederal

domestic infrastructure assets, or regulate the

development of these infrastructure assets, to actively

support nonfederal predevelopment activities with all

available tools, including grants, technical

assistance, and regulatory changes, to the extent

permitted by law and consistent with agency mission

domestic infrastructure assets, or regulate the

development of these infrastructure assets, to actively

support nonfederal predevelopment activities with all

available tools, including grants, technical

assistance, and regulatory changes, to the extent

permitted by law and consistent with agency mission.

Agencies shall seek to make predevelopment funding and

support available, as permitted by law and consistent

with agency mission and where it is in the public

interest and does not supplant existing public

investment, to encourage opportunities for private

sector investment. Agencies shall pay particular

[[Page 3456]]

attention to predevelopment activities in sectors where

State, local, and tribal governments have traditionally

played a significant role, such as surface

transportation, drinking water, sewage and storm water

management systems, landside ports, and social

infrastructure like schools and community facilities.

Sec. 2. Definitions. For the purposes of this

memorandum:

(a) ``Predevelopment activities'' means activities

that provide decisionmakers with the opportunity to

identify and assess potential infrastructure projects

and modifications to existing infrastructure projects,

and to advance those projects from the conceptual phase

to actual construction. Predevelopment activities

include:

ies'' means activities

that provide decisionmakers with the opportunity to

identify and assess potential infrastructure projects

and modifications to existing infrastructure projects,

and to advance those projects from the conceptual phase

to actual construction. Predevelopment activities

include:

(i) project planning, feasibility studies, economic assessments and cost-

benefit analyses, and public benefit studies and value-for-money analyses;

(ii) design and engineering;

(iii) financial planning (including the identification of funding and

financing options);

(iv) permitting, environmental review, and regulatory processes;

(v) assessment of the impacts of potential projects on the area, including

the effect on communities, the environment, the workforce, and wages and

benefits, as well as assessment of infrastructure vulnerability and

resilience to climate change and other risks; and

(vi) public outreach and community engagement.

(b) ``Predevelopment funding'' means funding for

predevelopment activities and associated costs, such as

flexible staff, external advisors, convening potential

investment partners, and associated legal costs

directly related to predevelopment activities.

Sec. 3. Federal Action to Support Predevelopment

Activities. Agencies shall take the following actions

to support predevelopment activities:

(a) the Department of Commerce, through the

Economic Development Administration's Public Works

grants and Economic Adjustment Assistance grants, and

consistent with the programs' mission and goals, shall

take steps to increase assistance for the

predevelopment phase of infrastructure projects;

(a) the Department of Commerce, through the

Economic Development Administration's Public Works

grants and Economic Adjustment Assistance grants, and

consistent with the programs' mission and goals, shall

take steps to increase assistance for the

predevelopment phase of infrastructure projects;

(b) the Department of Transportation shall develop

guidance to clarify where predevelopment activities are

eligible for funding through its programs. To further

encourage early collaboration in the project

development process, the Department of Transportation

shall also clarify options for providing early feedback

into environmental review processes;

(c) the Department of Homeland Security shall

clarify for grantees where predevelopment funding is

available through the Hazard Mitigation Grant Program;

(d) the Department of Housing and Urban Development

shall clarify for grantees how the Community

Development Block Grant program and other Federal

funding sources can be used for predevelopment

activities;

(e) the Department of Agriculture shall develop

guidance to clarify where predevelopment activities are

eligible for funding through its programs, including

grants for water and waste projects pursuant to 7 CFR

1780.1 et seq., the Special Evaluation Assistance for

Rural Communities and Households Program, the Community

Facilities Grant program, and the Watershed and Flood

Prevention Operations Program

eligible for funding through its programs, including

grants for water and waste projects pursuant to 7 CFR

1780.1 et seq., the Special Evaluation Assistance for

Rural Communities and Households Program, the Community

Facilities Grant program, and the Watershed and Flood

Prevention Operations Program. To encourage innovative

predevelopment work, the Department of Agriculture

shall also train Water and Environmental Programs field

staff on predevelopment best practices and prioritize

predevelopment in the Department of Agriculture's

project development process; and

(f) the other members of the Working Group

established in section 3 of my memorandum of July 17,

2014 (Expanding Public-Private Collaboration

[[Page 3457]]

on Infrastructure Development and Financing), shall

take such steps as appropriate to clarify program

eligibilities related to predevelopment activities for

nonfederal domestic infrastructure assets.

Sec. 4. Implementation, Public Education, and Best

Practices. The Departments of Agriculture, Commerce,

Labor, Housing and Urban Development, Transportation,

Energy, and Homeland Security, and the Environmental

Protection Agency shall develop plans for implementing

the requirements of this memorandum, providing

technical assistance to nonfederal actors engaged in

predevelopment activities, and educating grantees and

the public on the benefits of predevelopment and the

Federal resources available for these activities

Protection Agency shall develop plans for implementing

the requirements of this memorandum, providing

technical assistance to nonfederal actors engaged in

predevelopment activities, and educating grantees and

the public on the benefits of predevelopment and the

Federal resources available for these activities. These

agencies shall also work together to develop a guide

for nonfederal actors undertaking nonfederal

predevelopment activities that includes best practices

on how to evaluate and compare traditional and

alternative financing strategies. No later than 60 days

after the date of this memorandum, these agencies shall

provide these plans and the best practice guide to the

Director of the National Economic Council.

Subsequently, these agencies shall provide regular

updates to the Director of the National Economic

Council on their progress in increasing support for

predevelopment activities.

Sec. 5. General Provisions. (a) Nothing in this

memorandum shall be construed to impair or otherwise

affect:

(i) the authority granted by law to an executive department or agency, or

the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget

relating to budgetary, administrative, or legislative proposals.

(b) This memorandum is not intended to, and does

not, create any right or benefit, substantive or

procedural, enforceable at law or in equity by any

party against the United States, its departments,

agencies, or entities, its officers, employees, or

agents, or any other person.

tive proposals.

(b) This memorandum is not intended to, and does

not, create any right or benefit, substantive or

procedural, enforceable at law or in equity by any

party against the United States, its departments,

agencies, or entities, its officers, employees, or

agents, or any other person.

(c) The Secretary of Transportation is hereby

authorized and directed to publish this memorandum in

the Federal Register.

(Presidential Sig.)

THE WHITE HOUSE,

Washington, January 16, 2015

[FR Doc. 2015-01256

Filed 1-21-15; 11:15 am]

Billing code 4910-9