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Are Short-Term, Modular, or Temporary Resiliency Projects Eligible for Funding Under the FTA Emergency Relief Program?

It depends. Capital projects may not have a useful life of less than one year. “Resiliency projects” are defined as capital projects designed and built to reduce the vulnerabilities of a public transportation facility or system to future emergencies or major disasters likely to occur in the geographic area in which the public transportation system is located; or to projected changes in development patterns, demographics, or extreme weather or other climate patterns.

All resiliency projects must comply with FTA’s useful life requirements for capital assets. FTA’s useful life requirements state that a recipient must reimburse FTA for the remaining useful life of any asset that is disposed of prior to the end of its useful life.

Useful life is determined in accordance with the purpose of the project as well as the type of asset acquired. Since the purpose of a resiliency project is to protect other assets, the useful life of a resiliency project is tied to the lesser of the length of time that an asset (or its replacement) needs protection or the standard useful life of the purchased asset. For example, the useful life of a concrete flood barrier around a substation that is projected to be moved in five years is equal to five years. The useful life of movable equipment, such as modular flood barriers, should be determined by the grantee based on guidance in FTA Circular 5010.

Updated: Friday, June 9, 2017
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