Guide to Local Recovery Update: June 15

The U.S. Department of the Treasury announced that it has phased out DUNS numbers — the main type of identification cities used to receive their American Rescue Plan Act (ARPA) funding. Non-entitlement cities must switch to a new type of identification as soon as possible to receive their second tranche of funding, which is expected shortly for cities of all sizes. Additionally, the League of California Cities will hold a June 21 roundtable discussion about ARPA planning and reporting requirements. New information about several federal grants, including a June 16 ARPA reporting webinar, is also available.  

NEUs must update their federal identification to receive upcoming second tranche of recovery funding as expected

The California Department of Finance recently notified non-entitlement units (NEUs) of local government — generally municipalities with less than 50,000 residents — that their second and final tranche of State and Local Fiscal Recovery Funds should arrive in the coming weeks. However, non-entitlement cities must update their federal identification number to receive this funding.

The U.S. Department of the Treasury has phased out DUNS numbers — a unique nine-character number used for federal identification purposes — in favor of Unique Entity Identifiers (UEI). The federal government used DUNS numbers to track how federal money was allocated.

In order to receive the second installment of funds, non-entitlement cities must do the following:

1. View their new UEI number by logging in to their SAM.gov profile.
2. Email a screenshot or other form of verification of their UEI number to the California Department of Finance at FiscalRecovery@dof.ca.gov.

Non-entitlement cities do not need to reapply for funding. The documentation submitted in 2021 prior to receipt of the first installment of funding, along with these steps, is sufficient.

Cities are encouraged to complete this process as soon as possible to avoid a delay in funding. More information about Local Fiscal Recovery Funds is available on the California Department of Finance’s website.

Non-entitlement cities that did not receive an email from the California Department of Finance are encouraged to reach out to Jessica Sankus, Cal Cities’ senior policy and legislative affairs analyst.

Additionally, Cal Cities is hosting an American Rescue Plan Act (ARPA) Roundtable Discussion on Tuesday, June 21 at 1 p.m. The member-driven discussion will discuss the Treasury Department’s Final Rule, reporting requirements, and guidance; how to prioritize ARPA funds through community engagement and budget plans; and the second installment of recovery funding.

Treasury Department outlines second tranche process and timeline for metropolitan cities

Some metropolitan cities — as defined by the Housing and Community Development Act of 1974 — have not yet received their second installment of recovery funding. According to the Treasury Department, the second tranche will be made available no earlier than 12 months after the first tranche was delivered. The second installment should occur on or around (but not before) the first tranche payment date in 2022.

The Treasury Department also noted that the submission and payee verification review process generally takes four business days. During that time, a city’s designated point of contact will receive an email noting if the submission needs correction or clarification. If the information and documentation submitted is complete and accurate, the point of contact will receive a confirmation that includes the projected timing for payment.

Recipients who received their first tranche in May 2021 — and have successfully passed payee verification checks — will likely have their second tranche scheduled next week. Funds are generally deposited within 1-2 business days of the date payment is scheduled.

Recipients can monitor the status of their submission at any time by logging into the Treasury Submission Portal.

Updated reporting guidance; federal reporting webinar scheduled for June 16

The Treasury Department also updated its State and Local Fiscal Recovery Funds reporting guidance to reflect the Final Rule, which took effect on April 1, 2022. For annual filers, these updates take effect for the next Project and Expenditure Report, which is due April 30, 2023. The Treasury Department also updated its Recovery Plan template, a reporting tool for Tier 1 recipients — metropolitan cities and counties with a population that exceeds 250,000 residents.

The Treasury Department will hold a June 16 webinar on metrics and evaluation. The webinar will include examples of how metrics may be incorporated into spending and reporting. Although the session is primarily for Tier 1 recipients, cities of all sizes are encouraged to attend.

New federal infrastructure grant opportunities and webinars announced

The U.S. Department of Transportation’s Federal Highway Administration and the U.S. Environmental Protection Agency (EPA) both released new information about grants funded by the Infrastructure and Investment Jobs Act.

The Federal Highway Administration will begin accepting applications for the Bridge Investment Program later this summer. The competitive program focuses on existing bridges to reduce the overall number of bridges in poor condition or at risk of falling into poor condition.

The program will provide $12.5 billion over the next five years to help replace, rehabilitate, protect, and preserve the nation’s bridges through three types of grants: planning, large bridge projects, and bridge projects. The application window for planning grant applications opens July 25, 2022, and will run through Sept. 8, 2022.

The U.S. Environmental Protection Agency is holding a series of webinars on its Clean School Bus Rebates program. The program will provide $5 billion over the next five years to replace existing school buses with zero-emission and low-emission models. The deadline to apply for 2022 funding — $500 million in total — is Aug. 19, 2022.

This year’s clean school bus rebate differs significantly from previous school bus rebate programs; a close reading of 2022’s application materials and guidance is strongly encouraged.

City officials looking for additional information about the American Rescue Plan Act, the Infrastructure Investment and Jobs Act, or additional tools for recovery can visit the Cal Cities Guide to Local Recovery portal.