Agenda - 11-22-2004-d1 - Laserfiche WebLink

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3. Extreme Low- Temperature Cold Start Programs: Projects intended to reduce emissions from extreme cold-start conditions are now eligible for CMAQ funding, This TCM is listed in 42 U.S,C. §7408 (f)(1) and was heretofore excluded from eligibility for CMAQ funding. Examples of such projects include: • Retrofitting vehicles and fleets with water and oil heaters; and • Installing electrical outlets and equipment in publicly -owned garages or fleet storage facilities (see also section below on public- private partnerships for a possible expansion to privately -owned equipment and facilities), 4. Public- Private Partnerships: The TEA -21 provides greater access to CMAQ funds for projects which are cooperatively implemented under agreements between the public and private sectors and /or non - profit entities. The new statutory language leads to several important changes regarding the eligibility of joint public- private initiatives. Nevertheless, it remains the responsibility of the cooperating public agency to apply for CMAQ funds through the metropolitan planning process and to oversee and protect the investment of Federal funds in a public- private partnership, The TEA -21 requires that a legal, written agreement be in place between the public agency and private or non - profit entity before implementing a CMAQ- funded project. This provision supersedes the requirement under previous guidance that private entities have public agency sponsors before participating in CMAQ- funded projects. These agreements should clearly specify the use to which CMAQ funding will be put; the roles and responsibilities of the participating agencies; cost- sharing arrangements for capital investments and /or operating expenses; and how the disposition of land, facilities and equipment will be effected should the original terms of the agreement be changed, such as insolvency or a change in the ownership of the private entity. While the new statute provides greater latitude in funding projects initiated by private or nonprofit entities, it also raises concerns about the use of public funds to benefit a specific private entity. Since the public benefit is air quality improvement, it is expected that future funding proposals involving private entities will demonstrate strong emission reduction benefits. Furthermore, this new flexibility requires that greater emphasis be placed on an open, participatory process leading up to the selection of projects for funding. Because of concerns about the equitable use of public funds, FHWA and FTA consider it essential that all interested parties have full and timely access to the process of selecting projects for CMAQ funding. This should involve open solicitation for project proposals; objective criteria developed for rating candidate projects; and announcement of selected projects, The TEA -21 also contains some restrictions and special provisions on the use of CMAQ funds in public- private partnerships. Eligible costs under this section may not include costs to fund an obligation imposed on private sector or non - profit entities under the CAA or any other Federal law. For example, CMAQ funds may not be used to fund mandatory control measures such as Stage 11 Vapor Recovery requirements placed on fuel sellers. Energy