SAFETEA-LU High Priority Projects
What you should know
The recently enacted Safe, Accountable, Flexible, and Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) contained an unprecedented level of funding for High Priority Projects. Arizona received over $119 million of such earmarks for 33 separate highway projects. Much of this funding is for tribal, county or city street projects, projects that will be administered by local jurisdictions.
HPP Funded projects have significantly less flexibility than some other types of federally funded projects. Because Congress appropriates HPP funding for specific projects, in a specific dollar amounts, to be funded in specific years, there is virtually no flexibility in the use of the funds. The Arizona Department of Transportation has prepared this informational summary to assist local governments in understanding the rules and regulations associated with the use of these funds.
As the recipient of funding for one or more High Priority Projects, you need to be aware of the following:
- SAFETEA-LU specifies that funding for high priority projects (HPP) will occur over the life of the Authorization. Specifically, each HPP will be allocated 20% of its total funding each year for the five Federal Fiscal Years (FFY) 2005 – 2009 (Federal Fiscal Years begin October 1). This means that total funding for each HPP will not be available prior to October 1, 2009.
- Funds for most HPP’s will be administered through the Arizona Department of Transportation (ADOT). However, funds for some HPP’s will be administered through other entities, such as the BIA. If funds for a particular HPP are being administered by an entity other than ADOT, the local entity will need to work directly with the entity administering funds for that specific project. The HPP project summary attached to this document indicates those projects that will not be administered by ADOT.
- Funds for HPP’s must follow the same basic processes as other federally funded projects, including;
- The project must be in the entities’ local Transportation Improvement Program (TIP) and (if applicable) the State Transportation Improvement Program (STIP)
- An agreement must be signed with FHWA authorizing the project prior to the expenditure of any funds.
- Project design, environmental clearance, advertisement, award and construction administration will, in most cases, have to be processed through ADOT. Only certified jurisdictions are eligible to design and administer construction of HPP projects without ADOT’s direct involvement.
- An Intergovernmental Agreement between the local recipient and ADOT will be required for all HPP projects that the local entity wishes to build on an Advance Construction (AC) basis.
- HPP’s can receive federal funding on a reimbursement basis only. Local entities will not receive an upfront, lump-sum check for the project.
- Only eligible expenditures under Title 23 U.S.C. and Title 28 A.R.S. are eligible for reimbursement.
- Funds authorized for a HPP can be used only for the project for which the funds were authorized. They cannot be “swapped” to fund other projects, nor can they be “swapped” for state HURF funds.
- All HPP appropriations will require a federal match. The normal match for such projects is 20 percent.
Frequently asked questions
Will I get an upfront check in the amount shown for the project?
No. Funding is only available on a reimbursement basis for funds previously spent.
Can I swap the funds for HURF funds?
No, the funding may not be swapped.
Can I use the money for a different project?
No. Funds can only be used for the specific project for which Congress appropriated the funds.
If the amount of funds appropriated for the project is not sufficient to build the project, what can I do?
The local entity will have to come up with the additional funds for the project.
How long do I have to spend the funds?
Generally, funding for HPP projects will not lapse as long as there is a reasonable assurance that the project will be built.
Can I use HPP money for a project phase different from that specified in the appropriation of the HPP funds and the agreement with FHWA?
No. The funding can only be used for the project phase as described in the appropriation of the HPP funds and the agreement with FHWA. For example, if the HPP description says that funds are for “construction” of a project, HPP funds cannot be used for design or right-of-way.
Will there be a federal match requirement for my project, and if so, how much?
Yes, federal match requirements do apply to High Priority Projects. The general match requirement is 80% federal / 20% local.
Since I will not have total funding for my project prior to October 1, 2009, do I have to wait until then to build my project?
No. A local entity has the option to build its project as an Advanced Construction project. As long as the local entity has sufficient funds to build the project in advance of the full funding provided under SAFETEA-LU, it can proceed as soon as it has received all necessary federal approvals. However, the local entity can only be reimbursed for funds spent in accordance with the 20% per year appropriation schedule.
Alternatively, a local entity can use “other” federal funds (from a program under which the project would be eligible) to build the project, as long as the entity restores the “other” federal funds with HPP funds once they become available.
Who can I contact at ADOT if I have questions regarding my HPP project?
Questions related to funding or project eligibility should be directed to:
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