ARRA FUNDS General Concepts

Colegio de Ingenieros y Agrimensores

de Puerto Rico

Presented by: Pedro Friederick Meléndez-Arreaga, Esq.

March 3, 2010

AUTORIDAD PARA EL

FINANCIAMIENTO DE LA

INFRAESTRUCTURA

DE PUERTO RICO

Gobierno de Puerto Rico

SEMINAR OVERVIEW

• ARRA Program Objectives

• ARRA Funds Allocated for Puerto Rico

• Weatherization Assistance Program (WAP)

• State Energy Program (SEP)

• Energy Efficiency Conservation Block Grant (EECBG)

• Business Opportunities

• Laws associated with Renewable Energy Regulations

BACKGROUND

Background

American Recovery and Reinvestment Act (ARRA) of 2009 Purposes: Preserve and create jobs and promote economic recovery; Assist those most impacted by the recession; Provide investments needed to increase economic

efficiency by spurring technological advances in science and health;

To invest in transportation, environmental protection, and other infrastructure that will provide long-term economic benefits;

To stabilize State and local government budgets, in order to minimize and avoid reductions in essential services and counterproductive state and local tax increases.

Background

Puerto Rico Facing a Challenging Economic Environment

Government Budget Deficit of $3.2 Billion

Unemployment Rate of 15%

P.R. Credit at Risk

Private Financial Institutions Heavily Impacted by Global Economic Situation

Background

Government Structure was decentralized

Many government agencies and municipalities have their own federal funds program office

Commonwealth lacked a cohesive and strategic plan for qualifying, using and/or maximizing federal funding opportunities

Background

Risks of a decentralized structure: Missing valuable economic opportunities in federal

funding Mishandling and misuse of federal funds Loose opportunity to pursue many federal funding

opportunities due to management constraints Return millions of dollars each year due to the

inability to implement federal funds within the allocated time frames

Federal agencies could reduce funding availability due to the impact of the actions stated above

Puerto Rico’s ARRA Program Management Approach

Program Objectives

To support the Government in the implementation of the ARRA, in order to:

Maximize the revenue from the federal government

Expedite the investment of such revenues

Optimize the return on the investments

Assure compliance with all Federal and State rules and regulations so that the Government and the People of Puerto Rico take full advantage of this initiative

Program Objectives

• In order to perform these tasks the Government of Puerto Rico:

– Enacted Law 8, 2009

• Authorizes AFI to receive, administer, and disburse ARRA funds assign to Puerto Rico and provides technical assistance to government

– Developed the Puerto Rico ARRA Implementation Guidelines

– AFI currently the serves as subgrantee of the Puerto Rico Office of the Governor and the Energy Affairs Administration (EAA)

Government Organization

Federal Government

PR Governor’s Office

Inter-Agency Steering Committee

PR Infrastructure Financing Authority

PR Legislature

• Population of 4.2 million• Office of the Governor• Senate• House of Representatives• 130 Government Entities• 78 Counties / Municipalities• 350 NGOs• Industry• Private Companies

New Centralized Structure

4.2 million

130

78350

ComplianceDefining the Rules and Measuring Success

Law

• §1512 (Reporting)

• §1511 Transparency and Oversight (Certifications)

• §1554 Competitive Procedures

• Other specific provisions (Davis Bacon, Buy American, ect...)

Grant Specific

• Additional requirements including specific reporting

• Catalog of Federal Domestic Assistance (CFDA)

• Code of Federal Regulations (CFR)

OMB

• A-87

• A-102

• A-110

• A-133

• Others as they may apply.

Program management tailored to meet ARRA regulatory framework

Achievements• In March 2009, Puerto Rico projected it would receive

approximately $5 billion in ARRA funds. This estimate has now increased to over $6.2 billion, due to the pursuit of additional competitive opportunities and programs that Puerto Rico had not participated in previously.

• The ARRA Program Manager has reviewed over 1,500 projects for ARRA applicability.

• Puerto Rico has submitted 317 competitive proposals and applications for additional ARRA funding.

• In www.recovery.gov, Puerto Rico is ranked 12 in total jobs creation.

• The OMB publishes a listing of late submission by state and Puerto Rico’s government agencies and municipalities are not included in this report being the only one where all government entities are submitting on time.

Allocation and Disbursement of Funds

• Funds Allocation $6,427.9 million*

• Funds Disbursement $2,409.8 million*

• 99% of Funds will be disbursed by December 2011.

*Includes individual incentives (Tax Credits, SS, Student Grants)

Source: AFI CRM Database

Puerto Rico ARRA Funds

Allocations

USDA $1,186,253,633.00

DEPARTMENT OF EDUCATION

$1,688,239,172.00

DEPARTMENT OF ENERGY

$124,285,382.00

DEPARTMENT OF HEALTH AND

HUMAN SERVICES $419,459,991.00

DEPARTMENT OF HOUSING AND URBAN

DEVELOPMENT $312,367,181.00

DEPARTMENT OF LABOR

$268,399,976.00

DEPARTMENT OF TRANSPORTATION $178,952,707.00

DEPARTMENT OF TREASURY

$1,723,920,948.00

EPA $72,160,500.00

GENERAL SERVICES ADMINISTRATION $142,377,000.00

SOCIAL SECURITY $183,000,000.00 OTHER

$128,545,516.84

Disbursements

Federal Agency, $ 933,244,393.41

Departamento de Hacienda, $ 374,539,430.92

ADSEF, $ 349,817,694.24

Oficina del Gobernador, $ 254,532,811.16

DTRH, $ 125,594,254.30

Departamento de Educación, $ 106,650,948.39

Departamento de Salud, $ 104,290,051.69

Consejo de Desarrollo Ocupacional y Recursos

Humanos, $ 46,110,707.12

AFV, $ 39,985,205.44

ADFAN, $ 29,208,933.50

AVP, $ 18,623,097.27

ACT, $ 5,809,733.56

Autoridad de los Puertos, $ 5,196,836.07

Other, $ 16,241,925.90

ARRA Infrastructure Funds

•Total Funds Available: $ 848.86 mm

•Total Funds Disbursed: $ 112.0 mm

EducationSchool Modernization

• Total projects 264– Projects started 264

– Completed 179

• ARRA allocation $70 mm

• Amount spent $18.1 mm

Housing

• Number of projects 70– Projects started 53

– Completed 0

– Expected to start by the end of 2010 17

• ARRA allocation $363.8 mm

– Amount spent $58.6 mm

Housing - AVP

Project Construction Starting Date ARRA Funds

HUD Agustin Stahl Phase I 01/15/2010 $ 7,103,214.89

HUD Antonio Marques Arbona 01/15/2010 $ 7,248,053.64

HUD Bella Vista 09/08/2009 $11,572,918.91

HUD Brisas de Cupey 10/12/2009 $ 8,990,517.11

HUD El Cemi I 08/17/2009 $ 223,000.00

HUD Flamboyan Gardens 08/28/2009 $ 160,265.60

HUD Francisco Figueroa 01/01/2010 $ 203,073.88

HUD Guarionex 08/14/2009 $ 407,727.50

HUD Jardines de Caparra 09/18/2009 $ 721,621.47

HUD Jardines de Ceiba 08/17/2009 $ 309,871.75

HUD Jardines de Cidra 09/17/2009 $ 190,862.34

HUD Jardines de Country Club 09/24/2009 $ 1,312,535.20

HUD Jardines de Guanica 10/14/2009 $ 6,354,743.67

HUD Jesus T. Pinero 07/15/2009 $16,973,110.00

HUD Jose Celso Barbosa 09/18/2009 $ 118,063.75

HUD José V. Fortis 02/10/2010 -

HUD Juan Garcia Ducos 08/28/2009 $ 212,900.00

HUD Juan Jimenez Garcia 08/21/2009 $ 205,199.92

HUD La Alegria Apt. 09/18/2009 $ 406,982.50

HUD La Alhambra 07/28/2009 $ 8,358,527.73

Housing - AVP

Project Construction Starting Date ARRA Funds

HUD Las Gardenias 09/18/2009 $503,794.44

HUD Las Palmas $ 5,333.33

HUD Los Lirios 09/28/2009 $ 663,433.98

HUD Los Lirios-MP 11/12/2009 $10,960,331.11

HUD Los Rosales 11/09/2009 $ 9,074,545.28

HUD Luis del C. Echevarria 08/05/2009 $ 88,829.52

HUD Luis Lloréns Torres (El Medio) $ 1,131,861.00

HUD Luis Lloréns Torres (Providencia) $ 1,002,059.00

HUD Luis Lloréns Torres (Youth Center)

$ 1,282,514.00

HUD Magnolia Gardens 01/20/2010 $ 1,386.68

HUD Manuel A. Perez 01/14/2010 $ 1,287,487.29

HUD Manuel F. Rossy 06/22/2009 $ 7,190,879.15

HUD Maximo Miranda 05/20/2009 $ 9,648,432.19

HUD Mayaguez Gardens $ 34,496.10

HUD Naguabo Valley 08/05/2009 $ 143,140.00

Housing - AVPProject Construction Starting Date ARRA Funds

HUD Narciso Varona 12/03/2009 $ 6,985,096.14

HUD Narciso Varona II 12/18/2009 $ 8,402,390.08

HUD Nuestra Señora de Covadonga $ 1,324,566.00

HUD Pedro M. Descartes 08/17/2009 $ 115,250.00

HUD Puesta del Sol 08/28/2009 $ 205,100.00

HUD Ramirez de Arellano 07/13/2009 $ 3,250,018.51

HUD San Agustin 12/03/2009 $ 4,697,252.75

HUD Santa Catalina 10/19/2009 $10,857,795.97

HUD Santiago Iglesias Phase II 06/15/2009 $14,896,680.00

HUD Torres de la Sabana 08/17/2009 $ 300,067.60

HUD Valle de Puerto Real 08/17/2009 $ 159,020.19

HUD Villa Orocovis 02/10/2010 -

HUD Villa Real 08/14/2009 $ 283,311.00

HUD Zenon Diaz Valcarcel 09/11/2009 $ 583,514.83

Housing - AFVProject Construction Starting Date ARRA Funds

Caguas Courtyard Comminity 06/30/2011$ 8,344,911.00

Casa Verde Rental Housing 10/31/2011$ 13,490,518.00

Cecilia Orta$ 3,707,046.00

Central American Village 05/01/2010$ 13,681,414.00

Central Americcan Village 04/30/2010$ 49,194,363.00

Egida La Florida 11/30/2010$ 4,510,081.00

Egida Metropolitana 10/31/2010$ 10,311,127.00

Golden Living Barceloneta$ 5,310,021.00

Golden Living Cidra$ 5,749,549.00

Grace Manor Elderly 12/31/2010$ 2,079,036.00

Hogar Manuel Mediavilla 02/28/2010$ 4,325,936.00

Jardín de Las Catalinas 02/28/2010$ 1,193,407.00

Jardínes de Santa María 02/28/2010$ 830,071.00

Laderas del Río Elderly Plaza 02/28/2010$ 642,479.00

Las Piedras Elderly Plaza$ 4,354,469.00

Monserrate Elderly II 02/28/2010$ 206,567.00

P.R. Community Development Fund$ 45,000,000.00

Panorama Gold Apartments 11/30/2010$ 6,425,832.00

San Angel Rental Housing 07/31/2011$ 11,948,712.00

Santa Rosa Elderly Apartments 01/31/2010$ 545,227.00

Urbana I and II Elderly Apartments 08/31/2011$ 5,815,337.00

Water & Wastewater

• Number of projects 20– Projects started 16

– Completed 0

– Expected to start by March 2010 4

• ARRA allocation $85.4 mm– Amount spent $84,433

Water & Wastewater

Project Construction Starting

DateARRA Funds

New Morovis WWTP Under Construction $ 13,230,764

Expansion of Ciales WWTP and Improvement to Dos Rios Pump Station

Under Construction $2,965,909

Elimination of Sabana Grande WWTP Under Construction $ 11,718,004

Torrecillas Force Line Replacement Under Construction $ 8,849,595

Sanitary Sewer System for Ingenio Community Toa Baja Under Construction $ 12,705,360

Optimization of Humacao Water Distribution System Under Construction $ 292,700

Optimization of Guaynabo Water Distribution System Under Construction $ 454,780

Optimization of Guanica Water Distribution System Mar-10 $166,210

Optimization of Caimito Water Distribution System Under Construction $397,000

Optimization of Barceloneta Water Distribution System Mar-10 $270,000

Water & Wastewater

Project Status ARRA Funds

La Jurada Community Distribution System Under Construction $ 1,385,000

Improvements to Yahuecas Water System, phase II Under Construction $ 8,521,000

Improvements to Hatillo Distribution System Under Construction $ 3,321,000

Extension to Water System at Camino Viejo, Los Crotos and La Yuca Parcels

Under Construction $ 965,642

Expansion of Utuado Urbana WTP - EB Caonillas Under Construction $ 832,000

Aibonito, La Plata WTP Improvements - Compliance (Phase II) - DWSRF Under Construction $ 2,606,900

Aibonito La Plata WTP Water Intake (Phase I) Under Construction $ 4,479,000

Elimination of WWTP at Alturas de Orocovis and Sanitary Sewer System at El Gato Community

Mar-10 $ 6,793,000

Las Marías Water Distribution System - Phase II A Mar-10 $ 5,574,410

Improvemets to Trujillo Alto Sergio Cuevas WTP Under Construction $ 4,200,000.00

Transportation

• Number of projects 25– Projects started 19

– Completed 1

– Expected to start by the end of May 2010 6

• ARRA allocation $120.2 mm– Amount spent $11.0 mm

Transportation

Project Construction Starting Date ARRA Funds

FHWA Replacement of Bridge No. 763 PR-2 Aguadilla Under Construction $6,716,258.75

FHWA Roadways Improvement - South Region - Unit I Under Construction $2,128,944.40

FHWA Roadways Improvement - South Region - Unit II Under Construction $3,758,034.40

FHWA Roadways Improvement - South Region - Unit III Under Construction $3,455,054.83

Runway 9-27 Rehabilitation and Associated Work at Fernando L. Ribas Dominicci Airport

Under Construction $6,008,214.00

Reconstruction of the Fajardo Ferry Terminal, purchase of equipment, and preventive maintenance

Under Construction $8,250,000.00

FHWA Bridge No 1875 Rehab @ PR-20 (Martínez Nadal) Under Construction $762,680.00

FHWA Landslide at PR-173 Km. 3.0 in Cidra Under Construction $531,990.00

FHWA PR-2 Conversion to Expressway Under Construction $25,722,760.24

FHWA Mayaguez West Bypass, Stage 3 Under Construction $15,536,565.55

FHWA Roadways Improvement - East Region - Unit I Under Construction $3,632,308.35

FHWA Roadways Improvement - East Region - Unit II Under Construction $3,394,006.50

FHWA Roadways Improvement - East Region - Unit III Under Construction $2,265,862.25

FHWA Roadways Improvement - East Region - Unit IV Under Construction $1,207,051.50

Transportation

Project Status ARRA Funds

FHWA Roadways Improvement - Metro Region - Unit I Under Construction $3,004,260.00

FHWA Roadways Improvement - Metro Region - Unit II Under Construction $2,477,399.00

FHWA Roadways Improvement - Metro Region - Unit III Under Construction $4,072,162.00

FHWA Roadways Improvement - North Region - Unit I Apr-10 $3,488,824.00

FHWA Roadways Improvement - North Region - Unit II Apr-10 $4,805,103.76

FHWA Roadways Improvement - North Region - Unit III Apr-10 $6,794,763.50

FHWA Roadways Improvement - West Region - Unit I Mar-10 $3,279,307.80

FHWA Roadways Improvement - West Region - Unit II Mar-10 $2,048,555.13

FHWA Roadways Improvement - West Region - Unit III Mar-10 $5,578,398.15

Improvements to Acuaexpreso Maintenance Building Facility Under Construction $625,000.00

Improvements to Acuaexpreso Terminal Facility Under Construction $675,314.00

Federal Government Projects in Puerto Rico

• Number of projects 42– Projects started 5

– Expected to start by the end of 2010 37

• ARRA allocation $229.7 mm

ARRAEnergy Programs in Puerto Rico

ARRA has allocated approximately $122 MM to the Energy Affairs Administration by way of 4 programs, among which are:

WAP

SEP

EECBG

AFI serves as the subgrantee for the WAP and SEP program and provides technical assistance to EAA concerning these and other programs.