[Federal Register: September 28, 2007 (Volume 72, Number 188)]
[Notices]
[Page 55623-55627]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28se07-159]
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Part III
Department of Transportation
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Federal Transit Administration
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Capital Investment Program: Proposed Circular; Notice
Program Guidance for Metropolitan Planning Program and State Planning
and Research Program Grants (49 U.S.C. 5305); Notice of Program
Guidance
Notice of Proposed Guidance and Request for Comment on the Federal
Transit Administration's Grant Management Requirements (FTA Circular
5010.1D); Notice
Third Party Contracting Guidance; Notice of Proposed Program Guidance;
Proposed Circular; Notice
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DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
[Docket No. FTA-2007-29123]
Capital Investment Program: Proposed Circular
AGENCY: Federal Transit Administration (FTA), DOT.
ACTION: Notice of availability of proposed circular and request for
comments.
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SUMMARY: The Federal Transit Administration (FTA) has placed in the
docket and on its Web site, proposed guidance in the form of a circular
to assist grantees in implementing the Capital Investment Program. The
Capital Investment Program includes projects such as bus and bus
facilities, new fixed guideway systems, and fixed guideway
modernization, as authorized by 49 U.S.C. 5309. By this notice, FTA
invites public comment on the proposed circular for this program.
DATES: Comments must be submitted by November 27, 2007. Late-filed
comments will be considered to the extent practicable.
ADDRESSES: You may submit comments identified by the docket number
[FTA-2007-29123] by any of the following methods:
1. Web site: http://www.regulations.gov. Follow the instructions for
submitting comments on the U.S. Government electronic docket site.
[Note: The U.S. Department of Transportation's (DOT's) electronic
docket is no longer accepting electronic comments. All electronic
submissions must be made to the U.S. Government electronic docket site
at http://www.regulations.gov. For mailed and hand-delivered comments,
commenters should follow the directions below.]
2. Fax: 202-493-2251.
3. Mail: U.S. Department of Transportation, 1200 New Jersey Ave.,
SE., Docket Operations, West Building Ground Floor, Room W12-140,
Washington, DC 20590-0001.
4. Hand Delivery: U.S. Department of Transportation, 1200 New
Jersey Ave., SE., Docket Operations, West Building Ground Floor, Room
W12-140, Washington, DC 20590 between 9 a.m. and 5 p.m., Monday through
Friday, except Federal holidays.
Instructions: You must include the agency name (Federal Transit
Administration) and Docket number (FTA-2007-29123) for this notice at
the beginning of your comments. You should submit two copies of your
comments if you submit them by mail. If you wish to receive
confirmation that FTA received your comments, you must include a self-
addressed stamped postcard. Note that all comments received will be
posted without change to http://www.regulations.gov including any personal
information provided and will be available to internet users. You may
review DOT's complete Privacy Act Statement in the Federal Register
published on April 11, 2000 (65 FR 19477).
Docket: For access to the docket to read background documents and
comments received, go to http://www.regulations.gov at any time or to the U.S.
Department of Transportation, 1200 New Jersey Ave., SE., Docket
Operations, West Building Ground Floor, Room W12-140, Washington, DC
20590 between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays.
FOR FURTHER INFORMATION CONTACT: Kimberly Sledge, Office of Program
Management, Federal Transit Administration, 1200 New Jersey Ave., SE.,
East Building, Fourth Floor, Washington, DC 20590, phone: 202-366-2053,
fax: 202-366-7951, or e-mail, Kimberly.Sledge@dot.gov; or Bonnie
Graves, Office of Chief Counsel, Federal Transit Administration, 1200
New Jersey Ave., SE., East Building, Fifth Floor, Washington, DC 20590,
phone: 202-366-0944, fax: 202-366-3809, or e-mail,
Bonnie.Graves@dot.gov.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Overview
II. Chapter-by-Chapter Analysis
A. Chapter I--Introduction and Background
B. Chapter II--Program Overview
C. Chapter III--Buses and Related Acquisitions
D. Chapter IV--Fixed Guideway Modernization
E. Chapter V--New Starts Program
F. Chapter VI--Other Provisions
G. Appendices
I. Overview
This notice provides a summary of proposed changes to FTA Circular
9300.1A, Capital Program: Grant Application Instructions. This program
was affected by the Safe, Accountable, Flexible, Efficient
Transportation Equity Act: A Legacy for Users (SAFETEA-LU, Pub. L. 109-
59), signed into law August 10, 2005. FTA is updating the existing
circular, developed in 1998, to reflect changes in the law. The final
circular, when adopted, will supersede the existing circular.
This document does not include the proposed circular; an electronic
version may be found on FTA's Web site, at http://www.fta.dot.gov.
Paper copies of the circular may be obtained by contacting FTA's
Administrative Services Help Desk, at 202-366-4865. FTA seeks comment
on the proposed circular.
Readers familiar with the existing FTA Circular 9300.1A will notice
a number of changes to the proposed circular. For example, we have
changed the name of the circular to ``Capital Investment Program'' to
reflect a focus on the capital investment nature of eligible activities
in 49 U.S.C. 5309 (``Section 5309''), as amended by SAFETEA-LU. In
addition, we changed the format to make this circular consistent with
the style of other circulars FTA is updating. At the same time, we have
tried to maintain some consistency with the previous document; for
example, information about the Bus program is still in Chapter III,
Fixed Guideway Modernization continues to be in Chapter IV, with New
Starts/Small Starts information in Chapter V. Substantive changes in
content are discussed in the chapter-by-chapter analysis.
II. Chapter-by-Chapter Analysis
A. Chapter I--Introduction and Background
Chapter I of the proposed circular is an introductory chapter and
covers general information about FTA and our contact information,
briefly reviews the authorizing legislation for the Capital Investment
Program (a.k.a. ``Section 5309 Program''), provides information about
Grants.gov, includes definitions applicable to the program, and
provides a brief program history. The Definitions section is new to
this circular, and includes definitions related to the Section 5309
program, as well as the Section 5308, Clean Fuels Grant program. Where
applicable, we have used the same definitions found in rulemakings or
other circulars to ensure consistency. In the existing circular,
eligible projects are included in Chapter I. Eligible projects have
been moved to Chapter II in the proposed circular, and will be
discussed further there.
B. Chapter II--Program Overview
Chapter II of the existing circular is titled, ``How to Use This
Circular.'' The content of this chapter has been eliminated or moved to
other chapters. Chapter II of the proposed circular provides more
detail about the Capital Investment program. This chapter starts with
the statutory authority for the Capital Investment program, followed by
the goals of the program, and a list of eligible projects. Also
included in the
[[Page 55625]]
proposed Chapter II is information on apportionment, funds
availability, Federal/local matching requirements, relationship to
other FTA programs, and the requirements to ensure a recipient has the
legal, financial, and technical capacity to carry out a Capital
Investment project.
As stated previously, eligible projects have been moved to the
proposed Chapter II. There were significant changes to eligible
projects under 49 U.S.C. 5309 with the enactment of SATETEA-LU. Under
the previous statute (The Transportation Equity Act for the 21st
Century (TEA-21)), there were eight categories of eligible projects in
49 U.S.C. 5309. These included bus and bus facilities, new fixed
guideways, fixed guideway modernization, development of corridors to
support fixed guideway systems, projects designed to meet the needs of
elderly and disabled passengers, projects to introduce new technology,
the capital costs of coordinating public transportation with other
transportation, and capital projects needed for an efficient and
coordinated public transportation system. Under SATETEA-LU, there are
only four categories of eligible projects in 49 U.S.C. 5309: bus and
bus facilities, new fixed guideways, fixed guideway modernization, and
corridor improvements. Therefore, the list of eligible projects in the
proposed circular has changed, as well. We have defined the four
categories of eligible projects as ``capital investment projects'' and
listed them in this proposed chapter as ``assets for which FTA provides
assistance.'' In addition to these ``capital investment projects,''
however, we have included a list of projects that, ``when integral to a
capital investment project,'' would be eligible for Section 5309
funding. This includes the introduction of new technology, previously
eligible under TEA-21. While not specifically listed as an eligible
project, bus purchases to meet the needs of elderly persons and persons
with disabilities would be eligible, since bus purchases generally are
eligible. We note that the purpose of the Section 5310 Program is to
purchase buses to meet the special transportation needs of these
populations, and Section 5310 funding is available to private non-
profit organizations where public transportation is unavailable,
insufficient, or inappropriate.
In keeping with the purpose of Section 5309 as a capital
``investment'' program, we propose removing two previously eligible
projects from the proposed circular: The capital cost of contracting
and preventive maintenance for the bus program. Both of these capital
expenditures are eligible for funding under other FTA programs,
including the Urbanized Area Formula program (Section 5307) and the
Nonurbanized Area Formula program (Section 5311). The capital cost of
contracting allows recipients to fund the capital portion of contracts,
thus acquiring the use of capital assets for the short-term. The
purpose of the Section 5309 program is long-term investment, and the
purchase of assets for short-term use is not consistent with the
program's purpose. ``Capital projects'' are defined in 49 U.S.C. 5302,
and preventive maintenance is included in that definition. Sections
5307 and 5311 broadly permit the Secretary to make grants for capital
projects (e.g., ``the Secretary may make grants for capital
projects''). Under Section 5309, however, capital projects are more
narrowly defined, and in the bus program, the Secretary is permitted to
make grants for ``capital projects to replace, rehabilitate, and
purchase buses and related equipment.'' In light of Congress' generally
limiting the list of Section 5309 eligible projects to those with an
``investment'' purpose, FTA proposes similarly limiting the bus program
to projects that provide an investment in future transportation, and
removing preventive maintenance since it does not fall within the
statutory eligibility of ``capital projects to replace, rehabilitate,
and purchase buses.'' Bus-related equipment remains an eligible
project. FTA seeks comment on the proposed list of eligible projects.
The Federal/local matching requirements, found in Chapter I of the
existing circular and Chapter II of the proposed circular, are
consistent with 49 U.S.C. Chapter 53; namely, the Federal share is 80
percent of an eligible project unless the applicant requests a lower
percentage. Exceptions include Clean Air Act (CAA), Americans with
Disabilities Act (ADA), and bicycle projects, all of which have a 90
percent Federal share.
In 1992, under the provision allowing the Secretary ``to determine
through practicable administrative procedures, the costs attributable
to compliance with those Acts,'' FTA computed an 83 percent composite
Federal match for bus or van related equipment, which reflects a blend
of 80 percent for the bus or van and 90 percent for the incremental
cost of equipment added to the bus or van and associated with CAA and
ADA compliance. For all other vehicles, including rail vehicles, a
detailed accounting of the incremental cost required for CAA and ADA
compliance must be provided in the grant application to determine the
Federal share.
Beginning with Fiscal Year 2006, recipients may apply for a 90
percent share of the actual incremental costs of vehicle-related
facility improvements related to ADA or CAA compliance. FTA is
requesting that recipients provide documentation supporting these
requests. The 83 percent Federal share does not apply to facilities,
for which the costs are more variable. The eligibility of facility-
related cost elements at the 90 percent share will be reviewed on a
case-by-case basis as part of the grant application process. FTA seeks
comment on this proposal.
Finally, the proposed Chapter II includes information on how a
recipient demonstrates that it has the legal, financial, and technical
capacity required to carry out a Capital Investment project. This
information is found in Chapter VI of the existing circular, and FTA
did not substantively change the language of this section.
C. Chapter III--Buses and Related Acquisitions
Chapter III addresses buses and related acquisitions, commonly
known as ``the bus program.'' The information in the proposed circular
compares to information found in Chapter III of the existing circular,
and the proposed Chapter III has been completely reworked, while
retaining much of the information in the existing circular. The
proposed circular contains information on how funds are allocated,
examples of eligible projects, environmental considerations,
requirements related to vehicles, equipment, and facilities, and the
Clean Fuels Grant program. Information in the existing circular that
was not retained in the proposed circular includes the following:
information about other programs available for funding buses and bus-
related facilities (some of this information is retained in the
proposed Chapter II--Relationship to Other FTA Programs); the lead time
needed for purchasing new buses; and an expected time frame for a bus
facilities project. FTA removed the lead time and time frame as they
were at best speculative in nature. Further, individuals or agencies
seeking Section 5309 funds generally understand the lead time and time
frames involved in these projects, and FTA regional office staff can
assist interested parties in determining how long a particular project
will take.
Language from the existing Chapter III that was retained in the
proposed Chapter III remains largely unchanged, with some exceptions to
bring the circular up to date with changes in the
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law. For example, 49 U.S.C. 5323(m) was amended so rolling stock
procurements of 20 vehicles or fewer for use in areas under 200,000
population are not required to have an inspector on-site; this is
reflected in paragraph 6(c)(3) in the proposed circular. Paragraph
6(a)(2) states the current status of the charter rule, and notes that
the paragraph may change if a final charter rule is published before
the final FTA Circular 9300 is issued. In addition, paragraph 6(d)
reflects passage of the Presidential Coin Act of 2005, requiring that
as of January 1, 2008, all transit systems that receive Federal funding
shall be capable of accepting and dispensing $1 coins.
Since Section 5309 bus funds may be used to purchase buses that use
clean fuels, the proposed Chapter III contains a paragraph on the
Section 5308 Clean Fuels Grant program. This section of the chapter
describes the purpose of the program, and, in the event Congress
appropriates funds under Section 5308, describes eligible recipients,
eligible projects, funds availability, and Federal share. We note also
that FTA has promulgated a final rule for the Clean Fuels Grant program
at 49 CFR part 624 (72 FR 15049, March 30, 2007).
D. Chapter IV--Fixed Guideway Modernization
Chapter IV addresses fixed guideway modernization. The information
in the proposed circular compares to information found in Chapter IV of
the existing circular, with only minor changes. For example, paragraph
6(c) Clean Air Act Compliance has been updated. Further, as in the bus
chapter, the change in 49 U.S.C. 5323(m) to forgo on-site inspections
for rolling stock procurements of 20 vehicles or fewer for use in areas
under 200,000 population is reflected in paragraph 6(e). The Buy
America requirement was updated in paragraph 6(g), as was the Major
Capital Project paragraph 6(h).
E. Chapter V--New Starts
The proposed Chapter V addresses New Starts, and compares to
information found in Chapter V of the existing circular. In addition to
the information found in Chapter V of the proposed circular, FTA
maintains a New Starts Web page, at http://www.fta.dot.gov/planning/planning_environment_5221.html
that contains the most up-to-date
guidance for this program. In addition, there is a New Starts rule,
found at 49 CFR part 611, and FTA published a notice of proposed
rulemaking in the Federal Register (72 FR 43328, Aug. 3, 2007), which
proposes a number of changes to the current rule. Interested readers
are encouraged to review the proposed rule at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-14285.pdf
.
The format of the proposed Chapter V remains similar to that of the
existing circular, and FTA proposes several changes to this chapter,
largely due to changes in the law. For example, FTA draws a distinction
between a ``New Start''--a project that has a total cost of $250
million or more, or for which the project sponsor is requesting more
than $75 million in Federal funds; and a ``Small Start''--a project
that has a total cost of less than $250 million that requests less than
$75 million in Federal funds. The various requirements for both
projects are described throughout the chapter. There is a new phase in
the project development process--alternatives analysis--which is
described at length.
The sections on Environmental Protection, Clean Air Act Compliance,
Available Funding, Project Management Plan, and Value Engineering
Requirements contain only minor edits. The section titled, ``FTA Rating
System'' has been enhanced for greater clarification of how FTA rates
projects. Readers are encouraged also to review FTA's recently
published, ``Proposed Policy Guidance on Evaluation Measures for New
Starts/Small Starts,'' available on the FTA Web site at http://www.fta.dot.gov/documents/NPRM_Policy_Guidance_7-18-07_v_3.doc.
A
Federal Register notice (72 FR 43378, Aug. 3, 2007) accompanied
publication of the proposed policy guidance.
F. Chapter VI--Other Provisions
This chapter is similar to the ``Other Provisions'' chapters in
other FTA circulars, and summarizes a number of FTA-specific and other
Federal requirements that FTA grantees are held to, in addition to the
program-specific requirements and guidance provided in the circular.
The proposed chapter compares to the information found in the existing
Chapter VI, ``Requirements Common to All Capital Program Grant
Applications.'' Much of the information has been retained and
reorganized. As mentioned, the sections on legal, financial, and
technical capacity in the existing Chapter VI have been moved to the
proposed Chapter II. In addition, the ``Relationship to Other
Programs'' sections in the existing Chapter VI have been moved to the
proposed Chapter II. Recipients should use this chapter in conjunction
with FTA's ``Master Agreement'' and the current fiscal year
``Certifications and Assurances'' to assure that they have met all
requirements. Recipients may contact FTA Regional Counsel for
additional information about these requirements.
G. Appendices
The proposed appendices are intended as tools for developing a
grant application. Appendix A specifically addresses steps and
instructions for preparing a grant application, including pre-
application and application stages. This information is comparable to
Chapter VII, Grant Application Contents, in the existing circular,
although it has been updated and reorganized. Appendix A also includes
an application checklist and information for registering with the
Electronic Clearing House Operation (ECHO) payment system. Proposed
Appendix B provides budget information, including a sample budget, and
compares with the information found in Chapter VIII, Instructions for
Preparing a Project Budget, in the existing circular. Proposed Appendix
C, which compares with Chapter IX, Examples, in the existing circular,
contains samples of an Authorizing Resolution, a Transaction for Mid-
life Sale of a Transit Bus, an Opinion of Counsel, a Project Milestone
Schedule, and Proceeds from the Sale of Assets. Proposed Appendix D
contains contact information for all of FTA's regional and metropolitan
offices, and is new information for this circular.
We propose removing the existing Appendix A, Relationship Between
Capital Program Grants and the Metropolitan and Statewide Planning
Process; Appendix B, Joint Development Projects; and Appendix C, Annual
Certifications and Assurances. Readers will find information on
planning requirements throughout the proposed circular, and the
information on Certifications and Assurances has been consolidated into
one paragraph in Chapter VI. Historically, FTA has included guidance on
Joint Development in three circulars: 5010.1, Grants Management;
9030.1, Formula Capital Grants; and 9300.1, Major Capital Investments.
However, FTA issued separate Joint Development guidance in a Federal
Register notice (72 FR 5788, Feb. 7, 2007) and, as FTA stated in that
notice, we have decided to consolidate the appendices in FTA Circulars
5010.1, 9030.1, and 9300.1 into one circular on the eligibility of
joint development improvements. This circular is scheduled for
publication in 2008, but until it is published, readers should refer to
the Federal Register
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notice for guidance on joint development projects.
Issued in Washington, DC, this 24th day of September, 2007.
James S. Simpson,
Administrator.
[FR Doc. E7-19111 Filed 9-27-07; 8:45 am]
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