Subject
title
Proposed FY25 Federal Earmarks
end
Department
City Manager's Office (CMO)
Recommendation
Staff recommends that the Mayor and Council discuss, select, and approve FY25 earmark requests for submittal to the Federal Delegation.
Discussion
The Mayor and Council will discuss and approve FY25 earmark requests at the March 4, 2024 meeting. Senator Cardin’s, Senator Van Hollen’s, and Congressman Raskin’s Offices invited Rockville to submit requests for projects for which the City wishes to partner with the Federal government and seek funding support. Congress revived earmarks in FY22 after a decade long prohibition. Since this funding mechanism was reactivated, on an annual basis, the Mayor and Council discuss and approve projects for submittal to the Federal Delegation. In FY 22, the City was awarded a Federal earmark of approximately $408,000 for the 6 Taft Court emergency generator.
The Senate earmark submittal deadline is March 8, 2024. The House leadership has not established the process and deadline for FY25 earmarks. When a due date is announced, staff will inform the Mayor and Council, and submit the City’s approved FY25 earmarks to Congressman Raskin. The Federal Delegation collaborates on the review and submittal of earmark requests to the House and Senate Appropriations Committees. Rockville’s Federal representatives encourage applicants to submit projects through all three offices. Rockville is following this recommended approach.
The outcome of the FY24 Federal earmarks process is still unknown. The process will not conclude until Congress approves the budget, and the President signs it into law. The continuing resolutions that are currently in effect expire on March 1 and March 8. Several FY24 Rockville earmarks remain under consideration for funding. For a listing of Rockville’s FY 24 earmark projects, please refer to Attachment A. Staff is monitoring the final stages of the FY24 Federal appropriations process. When the Federal Delegation offices notify the City on the outcome, the information will be shared with the Mayor and Council.
After the Mayor and Council select and approve FY 25 earmarks, staff will submit the requests to the Federal Delegation in accordance with established deadlines.
In recent weeks, City staff attended a Senate earmark webinar hosted by Senator Cardin’s and Senator Van Hollen’s Offices and a House earmark webinar hosted by Congressman Raskin’s Office. The following sections provide highlights from the webinars.
Timing of Earmarks:
• The earmark process takes 12-14 months from submittal to receipt of funds, if successful.
• Jurisdictions making requests will be informed in the late spring 2024 as to whether the Federal Delegation submitted any of the requests to the Appropriations Committee.
• Jurisdictions will know by the end of August 2024 as to whether the Appropriations Committee accepted the request.
• If accepted by the Appropriations Committee, the earmark would move through the Congressional budget process.
• To be approved, the earmark must be included in the final budget approved by Congress and signed by the President. That timing is likely in early 2025, if there are no delays. The 2024 Election could potentially delay the process.
Eligibility and Key Considerations Comment from the Congressional Delegation staff:
Staff gleaned important information from the webinars, which are the basis of the proposed recommendations as follows:
• Earmarks must be shovel-ready projects. Once the funds are received, they are to be spent in approximately 12 months from the time of receipt. Requests for additional time will be considered by the agency awarding the funds.
• Projects that do not have design completed are not eligible.
• Multiple earmark submissions were strongly encouraged.
• Earmarks do cause project delays. A project can’t proceed to construction until the earmark funding award is received. If the earmark is not accepted, the project can move forward as planned by the jurisdiction.
• Projects that are already under construction are not eligible.
• Projects that are best suited have design completed, construction has not started, and the project can wait a year or more for the outcome of the Federal earmark process.
A staff team from the City Manager’s Office, and the departments of Police, Public Works, Recreation and Parks, Community Planning and Development Services, and Housing and Community Development recently met to discuss potential projects. The proposed list of projects reflects that discussion, as well as the guidance staff received from the Senators’ and the Congressman’s webinars, which we believe would well position the City to receive a FY25 Federal earmark.
For additional background on the process that staff undertook to determine which projects are best suited for an FY25 earmark, at Attachment B is a summary of Recreation and Parks and Public Works projects in Rockville’s Adopted FY24 CIP that were reviewed, considered, and determined to be ineligible for an FY25 earmarks.
Staff-Suggested FY25 Rockville Earmarks:
A listing of the four staff recommended FY24 earmark funding requests are provided below. They are ranked in priority order, from highest to lowest. The requests are focused on Public Works Department capital improvement projects relating to core public services in the areas of water and sewer service provision with an emphasis on equity focus areas. At attachment C is a map of Disadvantaged Communities in the City of Rockville as defined by the Maryland Department of Environment.
Specifically, staff is recommending the City apply for earmark funding allocated through EPA's State and Tribal Assistance Grants (STAG) program. The STAG program provides funding for the construction and modification of municipal sewage or drinking water treatment plants, replacement of sewer and water pipes, activities to facilitate compliance with primary national drinking water regulations and planning and design work. This funding opportunity would empower the City to leverage federal resources and tackle crucial infrastructure challenges. Staff recommends the Mayor and Council approve the following projects, in the priority order listed below, for submission to the federal legislative process. Should the City secure this vital funding it will enable Rockville to build a stronger water system for the Rockville community.
1. Lead Service Line Inventory Investigation (70/30 funding split) - $500,000
The City’s initial lead service inventory, performed as required by the EPA, identified 8,256 unknown service lines, posing a potential threat to Rockville's water safety and compliance with the revised Lead and Copper Rule. To protect residents and meet regulation compliance, we seek EPA STAG funding to accelerate lead service line material verification. This project directly aligns with STAG's goals by ensuring safe drinking water, promoting environmental justice and improving critical water infrastructure: By completing the inventory, we gain valuable data to guide future infrastructure upgrades and ensure long-term system sustainability. Securing STAG funding signifies our commitment to collaborative solutions. This project will leverage federal resources and local expertise to deliver lasting benefits for our community. This project maintains the authorized cost-share agreement of 70% federal funding and 30% local funding.
Project Cost: $ 715,000
Total Request: $500,500
Local Share: $ 214,500
Project schedule:
Project Start: Spring 2023 (planning)
Project Completion: Fall 2027
2. Disadvantaged Community (DAC) Orangeburg Lateral Replacement (80/20 cost share) - $2,520,000
Southeast Rockville faces imminent threats from aging orangeburg laterals. This material, which was previously used until 1970, has less strength and a lower useful life than modern materials. These pipes are prone to frequent failures and risk raw sewer backups, sewage overflows, ground contamination, and environmental spills, directly jeopardizing the health and well-being of residents in this disadvantaged community. This STAG grant application seeks funding to proactively replace over 400 of these publicly maintained failing pipes, safeguarding public health, promoting equitable access to safe infrastructure, and preventing costly reactive repairs. This project aligns with STAG's priorities by directly addressing crucial infrastructure needs, prioritizing environmental justice, and ensuring a healthier future for all residents. This project maintains the authorized cost-share agreement of 80% federal funding and 20% local funding.
Project Cost: $3,150,000
Total Request: $2,520,000
Local Share: $630,000
Project schedule:
Construction Start: Spring 2026
Construction Completion: Fall 2027
3. Disadvantaged Community (DAC) Wastewater Collection System Rehabilitation (80/20 cost share) - $2,416,000
The aging wastewater collection system in southeast Rockville threatens public health with risks such as sewer backups, sewage overflows and environmental pollution. This disadvantaged community disproportionately faces the burden of environmental inequities, and this failing infrastructure further exacerbates these concerns. This project seeks earmark funding to rehabilitate 10.3 miles of failing pipes, safeguarding residents, promoting environmental justice, and preventing costly emergencies. This investment aligns with Rockville’s overarching commitment to environmental justice and sustainable infrastructure development. By supporting this project, we can demonstrably improve the lives of Southeast Rockville residents, foster a more equitable community, and ensure a healthier future for this community. This project maintains the authorized cost-share agreement of 80% federal funding and 20% local funding.
Project Cost: $3,020,000
Total Request: $2,416,000
Local Share: $604,000
Project schedule:
Construction Start: Spring 2026
Construction Completion: Fall 2027
4. Disadvantaged Community (DAC) Water main Rehab and Improvement (80/20 cost share) -
$2,576,000
Southeast Rockville's water infrastructure faces challenges due to aging critical water mains and the presence of asbestos cement pipes (ACP). The City has prioritized the water main rehabilitation in this region and secured MDE State Revolving Loan Fund funding for Census Tract 7009.04, as referenced at Attachment C which illustrates the location of the two Census Tracts included in this request. This project seeks vital EPA STAG grant funding to replace 15,000 linear feet of pipes, safeguarding public health from both infrastructure failures and potential asbestos exposure in Census Tract 7011.02. Addressing these issues not only ensures reliable water access for the community but also promotes environmental justice by tackling historical disparities. This collaborative effort between the community, state, and EPA offers a sustainable solution, minimizing future costs and ensuring all residents have access to safe drinking water for generations. This project maintains the authorized cost-share agreement of 80% federal funding and 20% local funding.
Project Cost: $3,220,000
Total Request: $2,576,000
Local Share: $644,000
Project schedule:
Construction Start: Spring 2026
Construction Completion: Fall 2027
The FY25 earmark process requires the submittal of two letters of support for each project that is submitted. For each Rockville FY25 earmark, there will be a support letter from the Mayor and Council and one from the Environment Commission. Staff is requesting that the Mayor and Council authorize a Rockville elected official to work with staff to finalize the support letters.
Additionally, Rockville’s Department of Housing and Community Development has been engaged with Rockville Housing Enterprises (RHE) to share earmark materials and educate them on funding opportunities. RHE is in the process of exploring potential opportunities that could be suitable for a Federal earmark. They are aware that the Mayor and Council and City staff would be very interested in advocating in support of any FY25 projects that they may submit. City staff will provide additional information to the Mayor and Council when Rockville Housing Enterprises advises City staff on the outcome of their exploration of potential FY25 earmark requests.
Next Steps
Based on Mayor and Council direction, staff will submit approved FY25 earmark requests by the Senate’s March 8 deadline. When the House submittal date is established (TBD), staff will submit the approved FY25 requests in accordance with the deadline. Staff will inform that Mayor and Council on whether the Federal Delegation selects any of Rockville’s FY 25 earmark projects to move forward. Additionally, staff will monitor the FY25 Federal appropriations process and opportunities for the elected to weigh in with support.