1TEXAS DEPARTMENT OF AGRICULTUREMEMORANDUMDate: February 4, 2010To: Select Committee on Federal Economic Stabilization FundingFrom: Commissioner Todd StaplesSubject: Department Managed ARRA FundingThank you for your service to Texas and diligent review of this critical issue. In response to yourletter dated Jan. 22, 2010, I have developed the following report regarding programs establishedand/or expanded by the American Recovery and Reinvestment Act of 2009. Each program isadministered, at least in part, by the Texas Department of Agriculture.

Agency Contact Information:Name Telephone Email@TexasAgriculture.Gov

Agency Head Commissioner Todd Staples 463-1408 Todd.StaplesARRA Contact Heather Griffith Peterson,Assistant Commissioner forFinancial Services463-3640 Heather.Griffith.PetersonExternalRelationsCatherine Wright Steele,Governmental Affairs Director463-7700 Catherine.Steele

II. Total Stimulus Funds Spent to Date:

TDA

–

ARRA Aquaculture Assistance Grants Program CFDA #10.086 $ 1,553,271.45TDA - National Telecommunications and Information Administration (NTIA)Broadband Technology Opportunities Program CFDA #11.557 $0 .00TDA - NTIA State Broadband Data and Development Grant Program CFDA #11.558 $0.00TDA

–

ARRA Emergency Food Assistance Program (Administrative Costs) CFDA #10.568 $1,373,402.09TDA

–

ARRA Emergency Food Assistance Program (Food Commodities) CFDA #10.569 $8,169,424.96TDA

–

ARRA Equipment Assistance to Schools

CFDA #10.579 $7,083,518.79TDA

–

ARRA Fair Park Agriculture Buildings

CFDA #84.397 $0.00

III. Total Stimulus Funds Spent Since the Last Report:

TDA

–

ARRA Emergency Food Assistance Program (Administrative Costs) CFDA #10.568 $1,373,402.09TDA

–

ARRA Emergency Food Assistance Program (Food Commodities) CFDA #10.569 $8,169,424.96TDA

–

ARRA Equipment Assistance to Schools

CFDA #10.579 $7,083,518.79TDA

–

ARRA Fair Park Agriculture Buildings

CFDA #84.397 $0.00

IV. Description of Ongoing Programs:

Aquaculture Assistance Grant Program

Background: The program is intended to assist aquaculture producers with losses associated with high feed

input costs during the 2008 calendar year. Grant amounts are determined by subtracting the producer’s

average price/unit from the state's 2003-2007 five-year average price per unit, multiplied by the number of units the producer purchased during 2008.TDA Action: TDA is administering the program through a feed credit system. Credits may only be used forthe purchase of feed at cooperating feed suppliers. Any feed supplier can participate by entering into anagreement with TDA. Credits may not be traded, sold, or redeemed for cash. Texas was appropriated$1,732,244 in federal funds including an additional $45,043 received in October 2009.Status: As of the end of January 2010, TDA paid out $1,566,240 to feed mills on behalf of qualifiedproducers. Approximately $166,000 remains for payout.

Broadband Technology Opportunity Program

Background: The American Recovery and Reinvestment Act of 2009 (ARRA) established the following

programs to support the deployment of broadband infrastructure in underserved areas, enhance broadbandcapacity at public computer centers, and to encourage sustainable adoption of broadband service:



$2.5 billion for the Broadband Initiatives Program (BIP) to be administered by the Rural Utility Servicedivision of the U.S. Department of Agriculture.



$4.7 billion for the Broadband Technology Opportunities Program (BTOP) to be administered by theNational Telecommunications and Data Administration (NTIA).TDA Action: Gov. Rick Perry designated the Texas Department of Agriculture (TDA), in consultation withthe Public Utility Commission (PUC) and the Texas Public Safety Commission (PSC), as the lead agency in

coordinating the state’s broadband expansion activities. In this role, TDA will assist in reviewing and

recommending federal stimulus grant applications for projects located in Texas. The application deadline forthe first grant cycle was August 14, 2009. To assist the agency in this role, Commissioner Staplesestablished the Texas Broadband Task Force on July 8, 2009. The Task Force has met and endorsed effortsto pursue federal funding for statewide mapping. Through an RFP process, Connected Nation, a non-profitcorporation, was selected to measure and map the availability and use of broadband across the state.Status: The announcement of funding for the initial phase of broadband funding for Texas was made onJanuary 12, 2010. Connected Nation, the designated entity for the State of Texas, was awarded$3,028,165.00. $500,000 of that amount will be utilized for planning purposes with the remainder expendedon creating a broadband map. These dollars are awarded directly to Connected Nation.

Equipment Assistance to Schools

Background: Under the ARRA, Texas was allocated $11.5 million for equipment assistance to school food

authorities (SFAs) participating in the National School Lunch Program (NSLP). Equipment is defined asarticles of nonexpendable, tangible personal property with a useful life of more than one year and a per unitacquisition cost of $5,000 or more. Equipment had to be reasonable, necessary, allocable and allowable inorder to be a permissible cost.TDA Action: TDA is charged with the distribution of the grants and more than 3,000 schools applied. Theapplications included requests for nearly 10,000 separate pieces of equipment totaling over $135 million. Areview panel scored applications, with consideration given to how the purchase would do the following:

• improve the quality of the school foodservice meals that meet dietary guidelines,• improve

the safety of food served in the school meals programs,

• improve

the overall energy efficiency of the school foodservice operations and/or

• allow the SFAs to support expanded participation in the school meals programs.

Status: TDA awarded grants to 381 Texas schools in June, 2009 for the purchase of 939 pieces of newkitchen equipment including ovens, freezers, steam tables, and food processors. Over $700,000 of theoriginal grants were not utilized by the awarded schools due to cost savings realized during the biddingprocess. Therefore, TDA will re-allocate these funds for over 60 additional pieces of equipment. Acomplete list of recipients and equipment can be found at www.SquareMeals.org/ARRA.

IV. Description of Ongoing Programs Continued.

Texas Emergency Food Assistance Program

Background: The ARRA appropriated an additional $8.2 million for food and $2 million for administrationof the Texas Emergency Food Assistance Program (TEFAP). The funding will be administered by TDAthrough the Texas Commodity Assistance Program (TEXCAP). The program coordinates the distribution of USDA-donated commodities to emergency feeding organizations such as food pantries, soup kitchens, andhousing authorities. These organizations supply the commodities to participants through prepared meals thatare served on-site and food packages that may be used for home consumption.TDA Action: The funding will increase the amount of food purchased by USDA for distribution to foodbanks throughout the state. Each food bank contractor's share of funds for commodities and share of fundsfor administration was determined on a 60/40 formula (i.e. 60 percent on poverty and 40 percentunemployment). TDA has notified food banks of their food allocationStatus: TDA has reimbursed food banks $1.3 million to date or 67% of the $2 million for administration of the ARRA TEFAP. The remaining $678,000 (33%) will be allocated to the food banks on a pro-rata basis.In Award Year 2010 TDA will receive AN ADDITIONAL $1.9 million in ARRA TEFAP funding. Thiswill be allocated to the food banks following the same process as the AY2009 ARRA TEFAPAdministration funds.

Fair Park Agriculture Buildings

Background: TDA was appropriated $1 million in the 81

Legislative GAA for the purpose of contractingwith the City of Dallas for structural building improvements to the Fair Park Agriculture Buildings, inDallas, Texas. Upon further examination and review of the implementation guidelines and requirementsassociated with ARRA funds from construction, the Texas Higher Education Coordinating Board (THECB),TDA and the City of Dallas determined the administrative requirements associated with constructionexpenditures, though achievable, are time consuming and would unnecessarily delay the implementation of this project, and would consequently fail to contribute to an immediate economic stimulus. TDA Action: TDA is in the process of requesting the LBB and Governor's Office to approve therepurposing of these ARRA funds to be used for security and utility expenditures associated with the FairPark. If approval is granted for the repurposing, TDA, on behalf of the City of Dallas as its grantee, willapply to the Texas Higher Education Coordinating Board for $1 million to pay for utility and security costsincurred in connection with operation of the Fair Park facility in Dallas, Texas.Upon award from the THECB, TDA will enter into an agreement with the City of Dallas to sub-grant fundsfor the proposed expenditures. As a condition of the sub-agreement, the City of Dallas will be required tocomplete rehabilitation and modernization work of the Pan American Arena in Fair Park. The rehabilitationwork should focus on life-safety and electrical issues within the Pan American Arena, as originally planned.Status: TDA is in the process of requesting authorization to repurpose funds from the LBB and Governor'sOffice.

V. Description of Future Projects:All projects identified in paragraph IV. Remain active. Presently no new projects are anticipated.VI. New Stimulus Funding Received:With the exception of $45,043.00 for the Aquaculture grant and $1,979,046.00 for the Emergency FoodAssistance Program (Administrative Costs) for program year 2010, no new stimulus funding has beenreceived by TDA.VII. New Hires for Auditing and Accounting of Stimulus Funds:None