Cost matching for BIL funding is — as usual — ASG’s biggest obstacle
Pago Pago, AMERICAN SAMOA — The Bipartisan Infrastructure Law (BIL) states that “available federal funding opportunities require a local cost matching,” says Office of Disaster Assistance and Petroleum Management (ODAPM) director Lisa Tuato’o, who leads the ASG established BIL Team and she is also the BIL Coordinator with federal agencies.
“And depending on the federal awarding agencies, the local cost matching ranges from 20% to 50% of the award,” said Tuato’o responding to Samoa News inquiries following questions raised by some senators recently on whether or not matching funds are required for BIL funded projects for American Samoa.
The Administration’s Fiscal Year 2023 Supplemental Budget of more than $7.4 million includes $500,000 allocated to the Governor’s Office to provide local matching funds for BIL projects. And it’s about this funding allocation that raised questions by senators.
Among the questions Samoa News posed to Tuato’o is which projects required matching funds from ASG.
“Federal funding opportunities under BIL ‘required’ cost matching and local or non-federal cost shares percentages depends on the federal grant announcements or guidelines from the federal awarding agencies,” Tuato’o responded.
Asked for examples of projects requiring matching funds, Tuato’o pointed to the Aunu’u Wharf Reconstruction project that has been awarded a total estimate of $2.6 million - “and local cost matching of the project is $530,000 million and is the reason why we received $2.1 million.”
Port Administration Department’s application for the Aunu’u project submitted in May 2022 to the U.S Transportation Department’s Maritime Administration shows estimated total cost of the project at $2.65 million, with $2.12 million requested in federal funds — which is no more than 80% of total eligible costs — while non-federal sources for $530,000, is the local match from Port Administration.
Included in the Port Administration’s application is a May 13, 2022 local-match commitment letter, saying that Port Administration will accept financial responsibility and commit the required matching for the project in the amount of $530,000. (See Samoa News edition Oct. 31, 2022 for details.)
The USDOT have already announced the awarding of this funding to American Samoa for the Aunu’u Wharf Reconstruction Project.
Another example for the local-matching funds requirement is the Fagaima Drainage project that is estimated to be about $8 million.
“We received $3 million-plus from the U.S. Federal Emergency Management Agency (FEMA) and we’re looking for about $5 million cost matching,” Tuato’o explained.
Additionally, “we just received $1.4 million” in Community Development Block Grant-Mitigation funds from the Commerce Department “and are working on identifying local funds of $3 million-plus for the rest,” she points out.
Tuato’o revealed that the ASG’s BIL Team has shared with federal agencies that, “the number one major challenge — among others — in submitting grant applications for these federal funds, is the lack of non-federal or local cost matching of the total estimated costs of the projects.”
She explained that Public Works Department “is discouraged” from applying for this funding “because infrastructure projects are usually high dollars and in the millions.”
“Our government does not have millions of local funds set aside for this purpose over all these years,” she points out.
“As we maximize the utilization of all these federal funding for infrastructure projects, we would appreciate the support by way of making millions in local funds available for non-federal or local cost matching,” she added.
BIL PROJECTS
Gov. Lemanu P. S Mauga’s address to lawmakers last week as well as his State of the Territory Comprehensive Report pointed to BIL, which the governor says provided an increase in funding for the annual appropriated amounts on formula, cooperative agreement and competitive grants.
And these funds are awarded by the federal government to all Territorial departments serving as the state administrative agencies ensuring compliance in the utilization of these moneys, according to the Comprehensive Report.
Although the BIL lists the approximate amount of funding, the report noted that the within the funding U.S Territories are eligible to apply for and allocated, there is a possibility of receiving more if competitive grant applications are approved and awarded, according to the report, which also provided the list of 2022 BIL allocations, approved awards received and pending applications submitted by ASG.
For applications that are approved and awarded, the list shows four projects totaling nearly $5 million, with the highest project amount for the Aunu’u Wharf Reconstruction Project, followed by more than $1.6 million to the Commerce Department for the LIDAR Mapping.
Additionally, $825,261.94 has been awarded to the Marine and Wildlife Resources Department for the Swains Islands Tropical Ecosystem Restoration project and $395,000 to the local Education Department for the Clean School Bus Rebate program, which allows ASG to purchase the first electric school bus in the territory.
Applications submitted by the BIL Team that are pending approval of awards includes $29.2 million to Public Works Department for shoreline protection and alternate road proposal. Also awaiting approval are applications for three separate American Samoa TeleCommunications Authority projects: Middle Mile proposal - $13.5 million; Local Broadband Fiber Network — $5.5 million; and Mobile Broadband Expansion - $6.5 million.
Not listed in the report are all annual formula grant increases with BIL amounts received by local departments in FY 2022. And Samoa News understands that some lawmakers are seeking additional information on these increases.
BIL TEAM
ASG’s BIL Team comprises Department of Public Works, American Samoa Power Authority, American Samoa Telecommunications, American Samoa Environment Protection Agency, Department of Commerce, Department of Marine and Wildlife Resources, Territorial Energy Office, Office of Disaster Assistance and Petroleum Management and Department of Port Administration, Department of Education and Department of Agriculture.
“The goal is to have a concerted effort in maximizing the chance to apply to these federal funding opportunities as a team for the overall good and benefit of the people of American Samoa,” the Comprehensive Report said in explaining the focus of the team.