[Federal Register: December 29, 2004 (Volume 69, Number 249)]
[Notices]
[Page 78203-78277]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29de04-170]
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Part IV
Department of Transportation
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Federal Transit Administration
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FTA Fiscal Year 2005 Apportionments, Allocations and Program
Information; Notice
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DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
FTA Fiscal Year 2005 Apportionments, Allocations and Program
Information
AGENCY: Federal Transit Administration (FTA), DOT.
ACTION: Notice.
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SUMMARY: The ``Consolidated Appropriations Act, 2005'', (Public Law
108-447), signed into law by President Bush on December 8, 2004,
appropriates funds for all of the surface transportation programs of
the Department of Transportation for the fiscal year ending September
30, 2005. This notice provides information on the FY 2005 transit
appropriations for the FTA assistance programs, program guidance and
requirements, and information on several program issues important in
the coming year.
FOR FURTHER INFORMATION CONTACT: For general information about this
notice contact Mary Martha Churchman, Director, Office of Resource
Management and State Programs, (202) 366-2053. Please contact the
appropriate FTA regional office for any specific requests for
information or technical assistance. The Appendix at the end of this
notice includes contact information for FTA regional offices and key
headquarters program staff.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Overview
II. FY 2005 Funding for FTA Programs
A. Funding Based on FY 2005 Appropriations Act and Extension of
Authorization
B. Apportionments and Allocations
C. Program Funds Set-aside for Project Management Oversight
III. Fiscal Year 2005 Key Program Initiatives
A. Improved Customer Service
B. Transportation Coordination--United We Ride
C. Reporting Independent Single Audit Results
IV. FTA Programs
A. Metropolitan Planning Program (49 U.S.C. 5303)
B. Urbanized Area Formula Program (49 U.S.C. 5307)
C. Clean Fuels Formula Program (49 U.S.C. 5308)
D. Capital Investment Program (49 U.S.C. 5309)--Fixed Guideway
Modernization
E. Capital Investment Program (49 U.S.C. 5309)--Bus and Bus-
Related Facilities
F. Capital Investment Program (49 U.S.C. 5309)--New Starts
G. Elderly and Persons with Disabilities Program (49 U.S.C.
5310)
H. Nonurbanized Area Formula Program (49 U.S.C. 5311)
I. Rural Transit Assistance Program (49 U.S.C. 5311(b)(2))
J. Statewide Planning and Research Program (49 U.S.C. 5313(b))
K. National Planning and Research Program (49 U.S.C. 5314)
L. Job Access and Reverse Commute Program (Public Law 105-85,
Section 3037)
M. Over-the-Road Bus Accessibility Program (Public Law 105-85,
Section 3038)
V. FTA Program Guidance and Requirements
A. Automatic Pre-Award Authority To Incur Project Costs
B. Letter of No Prejudice (LONP) Policy
C. FTA FY 2005 Annual List of Certifications and Assurances
D. FHWA Funds Used for Transit Purposes
E. Grant Application Procedures
F. Payments
G. Oversight
H. Technical Assistance
VI. Guidance and Information Specific to FTA Planning Programs
A. Census 2000 Planning and Programming Requirements Deadline
B. Local Match Waiver for Specific Planning Activities
C. Planning Emphasis Areas for FY 2005
D. Consolidated Planning Grants
Tables
1. FTA FY 2005 Appropriations, Apportionments, and Available
Funding for Grant Programs
2. FTA FY 2005 Metropolitan Planning Program and Statewide
Planning and Research Program Apportionments
3. FTA FY 2005 Urbanized Area Formula Apportionments
4. FTA FY 2005 Apportionment Formula for Urbanized Area Formula
Program
5. FTA FY 2005 Formula Programs Apportionments Data Unit Values
6. 2000 Census Urbanized Areas With Populations 200,000 or
Greater Eligible To Use FY 2005 Section 5307 Funds for Operating
Assistance
7. FTA FY 2005 Fixed Guideway Modernization Apportionments
8. FTA FY 2005 Fixed Guideway Modernization Program
Apportionment Formula
9. FTA FY 2005 Bus and Bus-Related Allocations
10. FTA Prior Year Unobligated Bus and Bus-Related Allocations
11. FTA FY 2005 New Starts Allocations
12. FTA Prior Year Unobligated New Starts Allocations
13. FTA FY 2005 Elderly and Persons With Disabilities
Apportionments
14. FTA FY 2005 Nonurbanized Area Formula Apportionments, and
Rural Transit Assistance Program (RTAP) Allocations
15. FTA FY 2005 National Planning and Research Program
Allocations
16. FTA FY 2005 Job Access and Reverse Commute (JARC)
Allocations
17. FTA Prior Year Unobligated JARC Allocations
Appendix
I. Overview
This document apportions or allocates annual appropriations among
potential program recipients. Although the agency has received its
annual appropriation, our authorizing legislation is scheduled to
expire May 31, 2005. Because of this, we will show two amounts--one
reflecting the annual appropriation amount and one showing the amount
currently available, as limited by the 8-month authorization. In
addition, the document contains important information about FTA
programs and areas of emphasis for the fiscal year, including FTA's
Strategic Business Plan Initiative. For each FTA program included, we
have provided relevant information on its total fiscal year (FY) 2005
apportionments/allocations, requirements, period of availability, and
other related information and highlights, as appropriate. A separate
section of the document provides information on requirements and
guidance that are applicable to all FTA programs. The document also
includes a section that delineates various requirements and guidance
specific to the FTA planning programs that grantees should be aware of
for FY 2005.
II. FY 2005 Funding for FTA Programs
A. Funding Based on FY 2005 Appropriations Act and Extension of
Authorization
The Consolidated Appropriations Act, 2005 (Pub. L. 108-447,
December 8, 2004; hereafter called the 2005 Appropriations Act)
provides a combination of trust and general funds that total $7.708
billion for FTA programs. This amount is reduced to $7.646 billion by a
government-wide across-the-board 0.80 percent rescission, as directed
by Section 122 of Division J of the 2005 Appropriations Act. Table 1 of
this document shows the funding for the FTA programs for the entire
fiscal year, as provided for in the 2005 Appropriations Act. However,
because our current program authorization, the Surface Transportation
Extension Act of 2004, Part V (Pub. L. 108-310, September 30, 2004),
only provides contract authority for the trust funds through May 31,
2005, we also show in Table 1 the amount of FY 2005 funds currently
available for obligation for each program based on the extension of
TEA-21 through May 31, 2005. The amount currently available includes
all of the general funds but only a portion of the trust funds included
in the total obligation limitation for FTA programs in the 2005
Appropriations Act. The percentage of the annual amount currently
available varies slightly from program to program, depending on the mix
of general and trust funds appropriated for the program and the
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reallocation of any prior year funds to the program.
B. Apportionments and Allocations
FTA is publishing tables for each program that contain both the
apportionments and allocations based on the full program levels in the
2005 Appropriations Act; and the apportionments and allocations based
on FY 2005 funds currently available for the FTA program. The column
labeled ``Apportionment'' or ``Allocation'' includes both trust funds
(contract authority) and general funds, and reflects the total dollar
amount of obligation limitation and appropriations in the 2005
Appropriations Act, once a full-year contract authority is made
available. This amount is not the amount that is actually available for
obligation at this time. The amount shown in the column labeled
``Available Apportionment'' or ``Available Allocation'' is available
for obligation. All apportionments and allocations reflect the 0.80
percent rescission, which has been proportionately applied to the
discretionary budget authority and obligation limitation, and to each
program, project and activity.
C. Program Funds Set-aside for Project Management Oversight
FTA draws money from funds appropriated to the Urbanized Area
Formula Program, Nonurbanized Area Formula Program, and Capital
Investment Program for program oversight activities conducted by FTA.
The funds are used to provide necessary oversight activities, including
oversight of the construction of any major project under these
statutory programs; to conduct safety, civil rights, procurement,
management and financial reviews and audits; and to provide technical
assistance to correct deficiencies identified in compliance reviews and
audits. Project management oversight is authorized by 49 U.S.C. Section
5327. The percent of Urbanized Area Formula and Nonurbanized Area
Formula funds made available for oversight is one-half percent. The
percentage of Capital Investment Program funding made available for
oversight was increased from three-quarters percent to one percent by
Section 319 of the FY 2002 DOT Appropriations Act and continues to be
drawn at the higher rate.
III. Fiscal Year 2005 Key Program Initiatives
Each year, FTA's apportionment notice draws attention to
significant initiatives or focus areas for the year. Under our
Strategic Business Plan (SBP), we have several initiatives focused on
improved efficiency and enhanced customer service, several of which are
discussed in this section.
In addition, efforts to improve the coordination of human service
program transportation have been paying handsome dividends, and a 2004
Executive Order on Coordinated Human Service Transportation is expected
to further energize and focus government-wide efforts to address the
complex impediments to delivering effective transportation options at
the local level. We discuss this in detail in this section, as well.
Another key issue discussed in this section is Single Audit Act
findings and the closure of findings. Additional information about
these focus areas is available from your regional office (see the
Appendix at the end of this document.)
A. Improved Customer Service
One of the four ``core-accountabilities'' under FTA's SBP is to
reduce grant processing time. This is the third year FTA will track
grant processing time, and, as in last year's SBP, the goal is to
achieve an average processing time of 36 days from the date a complete
application is submitted in TEAM-Web, our electronic grant-making
system. Reduced grant processing time has been adopted as a core
accountability for several reasons. First, it requires FTA to
continually examine how we review and approve grants, and to find ways
to improve our internal processes. More importantly, it reduces the
amount of time a grantee must wait from the date of submission of a
grant until final approval, responding to the needs of grantees to
receive funds on a timely basis in order to maintain their programs.
Because tracking comparable data is key to any performance
measurement, FTA uses the date on which a grant number is assigned (the
date of submission) to measure how long it takes to process a grant.
Inherent in this measure is an assumption that regional offices have
received a complete application from the grantee. We know that this has
been an area of some disagreement in years past, and that some regions
have assigned grant numbers before grant applications were actually
complete.
To continue to meet our efficiency goal and to ensure that we
minimize the time it takes to process a grant, we provide below some
information that will aid in the overall understanding of what
constitutes a complete application. Of course, you can receive
additional information and technical assistance from your regional
office at any time. (Complete contact information is available in the
Appendix at the end of this document.)
For the regional office to be able to assign a grant number,
enabling submission, the application must meet the following
requirements:
1. The project is listed in a currently approved Transportation
Improvement Program (TIP); Statewide Transportation Improvement Program
(STIP), or Unified Planning Work Program (UPWP).
2. All eligibility issues have been resolved.
3. Required environmental findings have been made.
4. The project budget's Activity Line Items (ALI), scope, and
project description meet FTA requirements.
5. Local share funding source(s) have been identified.
6. The grantee's required Civil Rights submissions are current.
7. Certifications and assurances are properly submitted.
8. Funding is available, including any flexible funds included in
the budget.
9. For projects involving new construction (using New Starts or
formula funds), FTA engineering staff has reviewed the project
management plan and given approval.
10. When required for grants related to New Starts projects,
preliminary engineering (PE) and/or final design (FD) has been
approved.
11. Milestone information is complete, or FTA determines that
milestone information can be finalized before the grant is ready for
award.
In every appropriations act, several FTA programs include
Congressional project designations. Congress earmarked over 500 transit
projects for FY 2005. A significant number of project sponsors that
have received Congressional designations for FY 2005 Bus and Bus-
Related Facilities and JARC projects and activities and unobligated
prior year designations will be first-time (new) FTA grantees or sub-
recipients. With respect to new grantees, historically, the following
issues have presented the most significant hurdles to successful and
timely implementation of earmarked projects: (1) Grantee inability to
identify eligible project activities within the scope of the earmark;
(2) misunderstanding and/or lack of awareness of applicable
requirements; and (3) difficulty generating the required local match.
While we provide ``pre-award authority'' (see section V. A of this
document for a complete explanation), we do not recommend that first-
time grant recipients utilize the automatic
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pre-award authority to incur expenses before the grant is actually
awarded by FTA. As a new grantee, it is easy to misunderstand pre-award
authority conditions and not be aware of all of the applicable FTA
requirements that must be met in order to be reimbursed for project
expenditures incurred in advance of grant award. FTA programs have
specific statutory requirements that are often different from those for
other Federal grant programs with which new grantees may be familiar.
If funds are expended for an ineligible project or activity, FTA will
be unable to reimburse the project sponsor.
We encourage project sponsors of both Bus and JARC earmarked
projects who will be first-time FTA grantees to contact their FTA
regional office staff to discuss the project and relevant FTA
requirements. The regional staff will assist you with identifying
requirements and understanding FTA's grant application procedures, and
help you develop an approvable application. (See the Appendix to this
document for contact information)
B. Transportation Coordination--United We Ride
Transportation is an essential link to employment, health, and
educational services. Without adequate transportation services, many
older Americans, persons with disabilities, and individuals with low-
incomes are often unable to access work, medical services, educational
resources or recreation opportunities.
In February 2004, President Bush issued Executive Order (EO) 13330
on Human Service Transportation Coordination to improve transportation
for those who are transportation disadvantaged, by improving the
coordination of transportation services provided under programs in ten
Federal Departments. The goals of the Executive Order are to simplify
access to transportation services, reduce duplication and overlap, and
improve the effectiveness of the transportation services provided. In
response to the EO, the Department of Transportation, with its partners
at the Department of Health and Human Services, Labor, Education, and
elsewhere, launched the United We Ride (UWR) initiative. To assist
States and communities in moving forward, FTA and our Federal partners
introduced an initiative that includes a Framework for Action, a self-
assessment tool for States and communities; the National Leadership
Forum on Human Service Transportation Coordination; State Coordination
Grants; and Technical Assistance.
Forty-five States have been selected to receive grants for human
service transportation coordination efforts in FY 2005. The State
Coordination Grants may be used to: (1) Conduct a comprehensive State
assessment using the UWR Framework for Action, (2) develop a
comprehensive State action plan for Coordinating Human Service
Transportation, and/or (3) implement one or more of the elements
identified within the Framework for Action (for those States that have
not established a comprehensive State action plan). Planning teams
involving regional leadership from the Federal agencies named in the EO
are bringing together State teams for workshops in six of the ten U.S.
Department of Transportation (U.S. DOT) regional offices this year.
C. Reporting Independent Single Audit Results
A recent audit of the FY 2004 Highway Trust Fund financial
statements found that provisions of the Single Audit Act (SAA), and the
related Office of Management and Budget (OMB) Circular No. A-133 had
not been effectively implemented. In order to correct this weakness,
FTA has determined that it is critical that key information from the
grantee's audit report be reviewed on an annual basis. Therefore, we
are implementing the new reporting requirements described in the June
17, 2004, Dear Colleague letter from Administrator Dorn, which is
posted on the FTA Web site at: http://www.fta.dot.gov/legal/guidance/dear_colleague/2004/12128_15811_ENG_HTML.htm
.
Grantees should continue to work with FTA regional offices to
resolve any FTA-related findings in these independent annual audits.
FTA regional offices will be tracking progress in the resolution of
these findings, and will contact grantees that have not complied with
the requirements in a timely manner. Copies of responses to audit
findings that relate to a resolution of the findings should be sent to
the appropriate regional office.
Consistent with the requirements of OMB Circular No. A-133, FTA
requires a grant recipient expending $500,000 or more (previously
$300,000 or more) in Federal financial assistance to secure an
independent annual audit of its financial activities. The audit report
must be submitted to the Federal Clearinghouse within the earlier of 30
days after the audit report is issued, or nine months after the end of
the audit period.
At the same time, grant recipients should send a copy of the
Federal Clearinghouse transmittal sheet to the appropriate FTA regional
office, and if there are FTA program findings or if FTA is your point-
of-contact for all DBE program issues, send FTA a copy of the entire
audit report.
IV. FTA Programs
This section of the notice provides FY 2005 funding and other
important program-related information for the four major FTA program
areas included in the notice (transit planning and research; formula
grants; capital investments; and Job Access and Reverse Commute). Of
the 14 separate FTA programs contained in this notice that fall under
the major program area headings, the funding for seven is apportioned
by statutory formula. Funding for the other seven is allocated on a
discretionary or competitive basis.
Funding and other important information for each of the 14 programs
is presented immediately below. This includes program apportionments or
allocations, certain program requirements, length of time FY 2005
funding is available to be committed, and other significant program
information pertaining to FY 2005.
A. Metropolitan Planning Program (49 U.S.C. 5303)
Section 5303 authorizes a cooperative, continuous, and
comprehensive planning program for transportation investment decision-
making at the metropolitan area level. State Departments of
Transportation (DOTs) and Metropolitan Planning Organizations (MPOs)
may receive funds for planning projects that support the economic
vitality of the metropolitan area, especially by enabling global
competitiveness, productivity, and efficiency; increasing the safety
and security of the transportation system for motorized and non-
motorized users; increasing the accessibility and mobility options
available to people and for freight; protecting and enhancing the
environment, promoting energy conservation, and improving quality of
life; enhancing the integration and connectivity of the transportation
system, across and between modes, for people and freight; promoting
efficient system management and operation; and emphasizing the
preservation of the existing transportation system. For more about the
Metropolitan Planning Program contact Candace Noonan, Program Manager,
at (202) 366-1648.
1. Total Apportionments
The 2005 Appropriations Act provides $59,902,515 to the
Metropolitan Planning Program (49
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U.S.C. 5303) after the across-the-board 0.80 percent rescission. The
total amount apportioned for the Metropolitan Planning Program (to
States for MPOs' use in urbanized areas (UZAs)) is $60,628,846, as
shown in the table below.
Metropolitan Planning Program
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Appropriation........................................ $60,385,600
Rescission........................................... (483,085)
Prior Year Funds Added............................... 726,331
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Total Apportioned.................................. 60,628,846
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States' apportionments for this program are displayed in Table 2.
Also displayed in Table 2 is the amount of each State's apportionments
that is currently available for obligation, in accordance with the
Surface Transportation Extension Act of 2004, Part V.
FTA allocates Metropolitan Planning funds to the States according
to a statutory formula. Eighty percent of the funds are distributed to
the States as a basic allocation based on each State's population in
the UZA, as designated by the Census Bureau. The remaining 20 percent
is provided to the States as a supplemental allocation based on an FTA
administrative formula to address planning needs in the larger, more
complex UZAs. The amount published for each State is a combined total
of both the basic and supplemental allocation.
2. Program Requirements
The State allocates Metropolitan Planning funds to MPOs in UZAs or
portions thereof to provide funds for projects included in an annual
work program (the Unified Planning Work Program, or UPWP) that includes
both highway and transit planning projects. All States have either
reaffirmed or developed, in consultation with their MPOs, new
allocation formulas as a result of the 2000 Census. These formulas may
be changed annually, but any changes require approval by the FTA
regional office before grant approval. Program guidance for the
Metropolitan Planning Program is found in FTA Circular C8100.1B,
Program Guidance and Application Instructions for Metropolitan Planning
Program Grants, dated October 25, 1996.
3. Period of Availability
The funds apportioned in this notice under the Metropolitan
Planning Program will remain available to be obligated by FTA to
recipients for three fiscal years following FY 2005. Any of these
apportioned funds that remain unobligated at the close of business on
September 30, 2008, will revert to FTA for reapportionment under the
Metropolitan Planning Program.
4. Other Program or Apportionment Related Information and Highlights
Section VI of this document provides guidance and information
specific to FTA planning programs, including the Metropolitan Planning
Program. Please refer to that section for additional information
relevant to this program.
B. Urbanized Area Formula Program (49 U.S.C. 5307)
Section 5307 authorizes Federal capital and operating assistance
for transit in urbanized areas (UZAs). An UZA is an incorporated area
with a population of 50,000 or more that has been designated as such by
the U.S. Census Bureau. The Urbanized Area Formula Program also
supports planning, in addition to that funded under the Metropolitan
Planning Program described above. Funding is apportioned directly to
each UZA with a population of 200,000 or more, and to the State
Governors for UZAs with populations between 50,000 and 200,000. With a
few exceptions, operating assistance is not an eligible expense for
UZAs with populations 200,000 or more. For more information about the
Urbanized Area Formula Program contact Ken Johnson, Office of Resource
Management and State Programs, at (202) 366-2053.
1. Total Apportionments
The 2005 Appropriations Act provides $3,593,195,773 to the
Urbanized Area Formula Program (49 U.S.C. 5307) after the across-the-
board 0.80 percent rescission. The total amount apportioned for the
Urbanized Area Formula Program is $3,575,229,794, as shown in the table
below, after the deduction for oversight (authorized by 49 U.S.C.
5327).
Urbanized Area Formula Program
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Appropriation........................................ $3,622,173,158
Rescission........................................... (28,977,385)
Oversight Deduction.................................. (17,965,979)
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Total Apportioned.................................. 3,575,229,794
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Table 3 displays the amounts apportioned under the Urbanized Area
Formula Program.\1\ Also displayed in Table 3 is the amount currently
available for obligation, in accordance with the Surface Transportation
Extension Act of 2004, Part V. Table 4 contains the apportionment
formula for the Urbanized Area Formula Program.
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\1\ Sec. 198 of the 2005 Appropriations Act states that Norman,
OK, is to be considered part of the Oklahoma City, OK, UZA for FY
2004 and 2005. This provision has an unintended impact on the
apportionments for these UZAs, and also affects the apportionment of
all UZAs with populations less than 1 million. FTA anticipates a
correction and has not applied this provision. If the correction is
not made, we will adjust the FY 2006 apportionments to the Norman
and Oklahoma City UZAs to compensate.
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Additional funds are appropriated for the Alaska Railroad for
improvements to its passenger operations. The total amount allocated to
the Alaska Railroad is $4,787,094 after deduction for the 0.80 percent
rescission and oversight, as shown in the table below.
Alaska Railroad Set-Aside
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Appropriation........................................ $4,849,950
Rescission........................................... (38,800)
Oversight Deduction.................................. (24,056)
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Total Allocated.................................... 4,787,094
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Of this amount $3,233,450 is currently available for obligation, in
accordance with the Surface Transportation Extension Act of 2004, Part
V. Funding for the Alaska Railroad is based on the set-aside amount
specified in the 2005 Appropriations Act. This is in lieu of
apportioning funds for the Anchorage, AK UZA, under the fixed guideway
tier of the section 5307 formula using data attributable to the Alaska
Railroad Corporation.
2. Program Requirements
Urbanized Area Formula Program funds are apportioned based on
legislative formulas. Different formulas are used for UZAs with
populations of 200,000 or more and UZAs with populations less than
200,000. For UZAs 50,000 to 199,999 in population, the formula is based
simply on population and population density. For UZAs with populations
of 200,000 and more, the formula is based on a combination of bus
revenue vehicle miles, bus passenger miles, fixed guideway revenue
vehicle miles, and fixed guideway route miles, as well as population
and population density. See Table 4 for more detailed information about
the formulas. Program guidance for the Urbanized Area Formula Program
is found in FTA Circular C9030.1C, Urbanized Area Formula Program:
Grant Application Instructions, dated October 1, 1998. There are
several important program requirements we highlight below.
[[Page 78208]]
a. Urbanized Area Formula Apportionments to Governors
For UZAs with populations less than 200,000 (small UZAs), the funds
are apportioned to the Governor of each State for distribution. The
total Urbanized Area Formula apportionment for the Governor and the
amount currently available for obligation, in accordance with the
Surface Transportation Extension Act of 2004, Part V, is shown in Table
3. This table also shows the apportionment amount attributable to each
small UZA within the State. The Governor may determine the allocation
of funds among the small UZAs with the following exception (as further
discussed in item e below): funds attributed to a small UZA that is
located within the planning boundaries of a Transportation Management
Area (TMA) must be obligated to that small UZA.
b. Transit Enhancements
For UZAs with populations 200,000 or more, TEA-21 establishes that
a minimum of one-percent of a UZA's Urbanized Area Formula
apportionment be spent for transit projects and project elements that
qualify as transit enhancements. One percent of the Urbanized Area
Formula Program apportionment in each UZA with a population of 200,000
or more has been set aside specifically for transit enhancement
expenditures. Table 3 shows the amount set aside for enhancements in
these areas.
The term ``transit enhancement'' includes projects or project
elements that are designed to enhance mass transportation service or
use and are physically or functionally related to transit facilities.
Eligible enhancements include the following: (1) Historic preservation,
rehabilitation, and operation of historic mass transportation
buildings, structures, and facilities (including historic bus and
railroad facilities); (2) bus shelters; (3) landscaping and other
scenic beautification, including tables, benches, trash receptacles,
and street lights; (4) public art; (5) pedestrian access and walkways;
(6) bicycle access, including bicycle storage facilities and installing
equipment for transporting bicycles on mass transportation vehicles;
(7) transit connections to parks within the recipient's transit service
area; (8) signage; and (9) enhanced access for persons with
disabilities to mass transportation.
It is the responsibility of the MPO to determine how the one-
percent for transit enhancements will be allotted to transit projects.
The one percent minimum requirement does not preclude more than one
percent being expended in a UZA for transit enhancements. However,
items that are only eligible as enhancements--in particular, operating
costs for historic facilities--may be assisted only within the one-
percent funding level.
The recipient must submit a report to the appropriate FTA regional
office listing the projects or elements of projects carried out with
those funds during the previous fiscal year and the amount awarded. The
report must be submitted with the Federal fiscal year's final quarterly
progress report in TEAM-Web. The report should include the following
elements: (a) Grantee name, (b) UZA name and number, (c) FTA project
number, (d) transit enhancement category, (e) brief description of
enhancement and progress towards project implementation, (f) activity
line item code from the approved budget, and (g) amount awarded by FTA
for the enhancement. The list of transit enhancement categories and
activity line item codes may be found in FTA Circular 9030.1C,
Urbanized Area Formula Program: Grant Application Instructions, dated
October 1, 1998, and on TEAM-Web, which can be accessed at http://FTATEAMWeb.fta.dot.gov
.
c. Transit Security Projects
All recipients of Urbanized Area Formula funds are required to
expend at least one percent of the amount the grantee receives each
fiscal year on ``mass transit security projects.'' For applicants
serving a UZA with a population of 200,000 or more, only capital
security projects may be funded with the one percent.
d. FY 2005 Operating Assistance
There are three transit provisions that allow FY 2005 Urbanized
Area Formula funds to be used for operating assistance in a UZA with a
population of 200,000 or more: (1) Language in Section 3027(c) of TEA-
21, as amended, which allows the use of funds for operating assistance
to certain recipients of section 5307 funds that provide service
exclusively for elderly persons and persons with disabilities and
operate 20 or fewer vehicles; (2) the provision of 5307(b), as amended,
and extended by Section 8(n) of the Surface Transportation Extension
Act of 2004, Part V, which allows transit systems in UZAs that crossed
the 200,000 population threshold for the first time as a result of the
2000 Census, the flexibility to use section 5307 funds for operating
assistance; and (3) the provision of 5307(b), as amended, and extended
by Section 8(n) of the Surface Transportation Extension Act of 2004,
Part V, which allows funds apportioned to a 2000 Census UZA with a
population of 200,000 or more to be used for operating assistance in
that portion of the UZA that was nonurbanized under the 1990 Census.
Each provision has its own requirements, which are described separately
below.
(1) Section 3027(c)(3) of TEA-21, as previously amended, provides
an exception to the restriction on the use of operating assistance in a
UZA with a population of 200,000 or more, by allowing transit
providers/grantees that provide service exclusively to elderly persons
and persons with disabilities and that operate 20 or fewer vehicles to
use section 5307 funds apportioned to the UZA for operating assistance.
The total amount of funding made available for this purpose under
Section 3027(c)(3) of TEA-21, as amended, is $1.4 million. Transit
providers/grantees eligible under this provision have already been
identified and notified.
(2) The Surface Transportation Extension Act of 2004, Part V,
continues the provisions of Public Law 107-232, which allow transit
systems in UZAs that, for the first time, exceeded 200,000 population
according to the 2000 Census to use section 5307 funds for operating
assistance. A list of the eligible 2000 Census UZAs (with populations
200,000 or more ) that may use FY 2005 funds for operating assistance
is provided in Table 6. The table also shows the maximum amount of the
area's FY 2005 apportionment that may be used for operating assistance,
and the amount of an area's apportionment currently available for
obligation as operating assistance. The use of the UZA funds for
operating assistance by these areas is restricted to projects carried
out within the geographical or service area boundary of the affected
1990 Census small UZA.
(3) In addition, the Surface Transportation Extension Act of 2004,
Part V, permits the continued use of Urbanized Area Formula Program
(section 5307) funds for operating assistance in certain UZAs with a
population of at least 200,000 when the qualifying UZA includes a
portion that was not designated as a UZA under the 1990 Census and
received assistance under section 5311 in FY 2002. The provision
further stipulates that the portion not designated a UZA under the 1990
Census shall receive an amount of funds under section 5307 that is not
less than the amount the portion received under section 5311 in FY
2002. Affected areas are not identified in Table 6. A grant applicant
for an area eligible to receive operating assistance under this
[[Page 78209]]
provision that wants to make use of this provision must so indicate in
the grant application. The application must identify the previously
nonurbanized portion of the UZA that qualifies (i.e., that portion of
the area that was not designated as urbanized under the 1990 Census and
received assistance under section 5311). Contact the appropriate FTA
regional office for additional information and guidance if you intend
to make use of this provision.
Unless one of the exceptions noted above applies, the use of FY
2005 Urbanized Area Formula Program funds for operating assistance is
available only to small UZAs (those with populations less than
200,000). For these areas, there is no limitation on the amount of the
State apportionment that may be used for operating assistance, and the
Federal/local share ratio is 50/50.
e. Designated Transportation Management Areas (TMA)
Guidance for setting the boundaries of TMAs is contained in the
joint transportation planning regulations codified at 23 CFR part 450
and 49 CFR part 613. In some cases, the TMA planning boundaries
established by the MPO for the designated TMA includes one or more
small UZAs. In addition, one small UZA (Santa Barbara, CA) has been
designated as a TMA. In either of these situations, the Governor cannot
allocate ``Governor's Apportionment'' funds attributed to the small
UZAs to other areas; that is the Governor only has discretion to
allocate Governor's Apportionment funds attributable to areas that are
outside of designated TMA planning boundaries.
The list of small UZAs included within the planning boundaries of
designated TMAs is provided in the table below.
------------------------------------------------------------------------
Small urbanized area included
Designated TMA in TMA planning boundary
------------------------------------------------------------------------
Albany, NY............................. Saratoga Springs, NY.
Houston, TX............................ Galveston, TX; Lake Jackson-
Angleton, TX; Texas City, TX;
The Woodlands, TX.
Jacksonville, FL....................... St. Augustine, FL.
Orlando, FL............................ Kissimmee, FL.
Palm Bay-Melbourne, FL................. Titusville, FL.
Philadelphia, PA-NJ-DE-MD.............. Pottstown, PA.
Pittsburgh, PA......................... Monessen, PA; Weirton, WV-
Steubenville, OH-PA (PA
portion); Uniontown-
Connellsville, PA.
Seattle, WA............................ Bremerton, WA.
Washington, DC-VA-MD................... Frederick, MD.
------------------------------------------------------------------------
The MPO must notify the Associate Administrator for Program
Management, Federal Transit Administration, 400 Seventh Street, SW.,
Washington, DC 20590, in writing, no later than July 1 of each year, to
identify any small UZA within the planning boundaries of a TMA.
f. Urbanized Area Formula Funds Used for Highway Purposes
Funds apportioned to a TMA are eligible for transfer to FHWA for
highway projects. However, before funds can be transferred, the
following conditions must be met: (1) Such use must be approved by the
MPO in writing, after appropriate notice and opportunity for comment
and appeal are provided to affected transit providers; (2) in the
determination of the Secretary, such funds are not needed for
investments required by the Americans with Disabilities Act of 1990
(ADA); and (3) the MPO determines that local transit needs are being
addressed.
The MPO should notify FTA of its intent to use FTA funds for
highway purposes, as prescribed in section V.D, below. Urbanized Area
Formula funds that are designated by the MPO for highway projects will
be transferred to and administered by FHWA.
3. Period of Availability
The Urbanized Area Formula Program funds apportioned in this
notice, as well as the set-aside for the Alaska Railroad, will remain
available to be obligated by FTA to recipients until September 30,
2008. Any of these apportioned funds that remain unobligated at the
close of business on September 30, 2008, will revert to FTA for
reapportionment under the Urbanized Area Formula Program.
4. Data Used to Generate Apportionments and Dollar Unit Values
Population and population density statistics from the 2000 Census
and (when applicable) validated mileage and transit service data from
transit providers' 2003 National Transit Database (NTD) Report Year
were used to calculate a UZA's FY 2005 Urbanized Area Formula
apportionment.
We have calculated dollar unit values for the formula factors used
in the Urbanized Area Formula Program apportionment calculations. These
values represent the amount of money each unit of a factor is worth in
this year's apportionment. The unit values change each year, based on
all of the data used to calculate the apportionments. The dollar unit
values for FY 2005 are displayed in Table 5. To replicate a UZA's
apportionment, multiply the dollar unit value by the appropriate
formula factor, i.e., the population, population x (times) population
density, and (when applicable) data from the NTD (i.e., route miles,
vehicle revenue miles, passenger miles, and operating cost.)
C. Clean Fuels Formula Program (49.U.S.C. 5308)
FTA's authorizing legislation, TEA-21, established the Clean Fuels
Formula Grant Program to support the goals of the Clean Air Act. This
program has a two-fold purpose. First, the program is intended to
assist non-attainment and maintenance areas in achieving or maintaining
air quality attainment status. Second, the program seeks to support
emerging clean fuel and advanced propulsion technologies for transit
buses, and to create markets for these technologies. No funds were
provided for this program in the 2005 Appropriations Act. For more
information about this program contact Nancy Grubb, Office of Resource
Management and State Programs, at (202) 366-2053.
D. Capital Investment Program (49 U.S.C. 5309)--Fixed Guideway
Modernization
This program provides capital assistance for the modernization of
existing fixed guideway systems. Funds are allocated by a statutory
formula to UZAs with fixed guideway systems that have been in operation
for at least seven years. A ``fixed guideway'' refers to any transit
service that uses exclusive or controlled rights-of-way or rails,
entirely or in part. The term includes heavy rail, commuter rail, light
rail, monorail, trolleybus, aerial tramway, inclined plane, cable car,
automated guideway
[[Page 78210]]
transit, ferryboats, that portion of motor bus service operated on
exclusive or controlled rights-of-way, and high-occupancy-vehicle (HOV)
lanes. For more information about Fixed Guideway Modernization contact
Ken Johnson, Office of Resource Management and State Programs, at (202)
366-2053.
1. Total Apportionments
The 2005 Appropriations Act provides $1,204,684,800 to the Fixed
Guideway Modernization Program after the across-the-board 0.80 percent
rescission. The total amount apportioned for the Fixed Guideway
Modernization Program is $1,192,637,952, after the deduction for
oversight, as shown in the table below.
Fixed Guideway Modernization Program
------------------------------------------------------------------------
------------------------------------------------------------------------
Appropriation........................................ $1,214,400,000
Rescission........................................... (9,715,200)
Oversight Deduction.................................. (12,046,848)
------------------
Total Apportioned.................................. 1,192,637,952
------------------------------------------------------------------------
The FY 2005 Fixed Guideway Modernization Program apportionments to
eligible areas are displayed in Table 7. Also Displayed in Table 7 is
the amount of each area's apportionment that is currently available for
obligation, in accordance with the Surface Transportation Extension Act
of 2004, Part V.
2. Program Requirements
Fixed Guideway Modernization funds must be used for capital
projects to maintain, modernize, or improve fixed guideway systems.
Eligible UZAs (those with a population of at least 200,000) with fixed
guideway systems that are at least seven years old are entitled to
receive Fixed Guideway Modernization funds. A threshold level of more
than one mile of fixed guideway is required in order to receive Fixed
Guideway Modernization funds. Therefore, UZAs reporting one mile or
less of fixed guideway mileage under the NTD are not included. Program
guidance for Fixed Guideway Modernization is found in FTA Circular
C9300.1A, Capital Program: Grant Application Instructions, dated
October 1, 1998.
3. Period of Availability
The funds apportioned in this notice under the Fixed Guideway
Modernization Program will remain available to be obligated by FTA to
recipients for three fiscal years following FY 2005. Any of these
apportioned funds that remain unobligated at the close of business on
September 30, 2008, will revert to FTA for reapportionment under the
Fixed Guideway Modernization Program.
4. Other Program or Apportionment Related Information and Highlights
The formula for allocating the Fixed Guideway Modernization funds
contains seven tiers. The apportionment of funding under the first four
tiers is based on amounts specified in law and/or NTD data used to
apportion funds in FY 1997. Funding under the last three tiers is
apportioned based on the latest available data on route miles and
revenue vehicle miles on segments at least seven years old, as reported
to the NTD. Table 8 contains information regarding the Fixed Guideway
Modernization apportionment formula.
Dollar unit values for the formula factors used in the Fixed
Guideway Modernization Program are displayed in Table 5. To replicate
an area's apportionment, multiply the dollar unit value by the
appropriate formula factor, i.e., route miles and revenue vehicle
miles.
E. Capital Investment Program (49 U.S.C. 5309)--Bus and Bus-Related
Facilities
This program provides capital assistance for new and replacement
buses and related facilities. Funds are allocated on a discretionary
basis. Eligible purposes are acquisition of buses for fleet and service
expansion, bus maintenance and administrative facilities, transfer
facilities, bus malls, transportation centers, intermodal terminals,
park-and-ride stations, acquisition of replacement vehicles, bus
rebuilds, bus preventive maintenance, passenger amenities such as
passenger shelters and bus stop signs, accessory and miscellaneous
equipment such as mobile radio units, supervisory vehicles, fare boxes,
computers, and shop and garage equipment. For more information about
Bus and Bus-Related Facilities contact Ryan Hammon, Office of Resource
Management and State Programs, at (202) 366-2053.
1. Total Allocations
The 2005 Appropriations Act provides $719,200,000 for the purchase
of buses, bus-related equipment and paratransit vehicles, and for the
construction of bus-related facilities, after the across-the-board 0.80
percent rescission. This amount includes funds transferred from the
Clean Fuels Program as described below. The total amount allocated for
Bus and Bus-Related Facilities is $712,008,000, as shown in the
following table.
Bus and Bus-Related
------------------------------------------------------------------------
------------------------------------------------------------------------
Appropriation........................................ $725,000,000
Rescission........................................... (5,800,000)
Oversight Deduction.................................. (7,192,000)
------------------
Total Allocation................................... 712,008,000
------------------------------------------------------------------------
* Includes $50 million transferred from Clean Fuels.
TEA-21 authorized a $100 million Clean Fuels Formula Program under
49 U.S.C. 5308 (described in section IV.C above). The program is
authorized to be funded with $50 million from the Bus and Bus-Related
Facilities category of the Capital Investment Program and $50 million
from the Formula Grants Programs. However, the 2005 Appropriations Act
directs FTA to transfer the Clean Fuels formula portion to, and merge
it with, funding provided for the Bus and Bus-Related category of the
Capital Investment Program. The $100 million from the Clean Fuels
program, both capital and formula portion, is included in the total
appropriations amount in the Bus and Bus-Related Facilities table above
and the 0.80 percent across-the-board rescission has been applied to
the entire amount. In FY 2005, Congress did not make available for bus
and bus-related facilities any funds reallocated from projects in
previous appropriations acts. Instead, prior year reallocated bus and
bus facilities funds were made available to the New Starts program.
Table 9 displays the allocation of the FY 2005 Bus and Bus-Related
Facilities funds by State and project. Each project allocation has been
adjusted proportionally from the amount designated in the conference
report accompanying the 2005 Appropriations Act to account for the
across the board rescission, the amount deducted for oversight, and the
shortfall between the amount designated for projects and the amount
made available to the program. Also displayed in Table 9 is the amount
of each Bus and Bus-Related Facilities project allocation that is
currently available for obligation, in accordance with the Surface
Transportation Extension Act of 2004, Part V.
2. Program Requirements
The Conference Report to FTA's 2005 Appropriation Act lists 440
discrete projects for funding under Bus and Bus-Related Facilities. The
2005 Appropriations Act includes Section 125 that contains language
making these designated projects eligible under the program
``notwithstanding any other provision of law.'' The Consolidated
Appropriations Act 2004, included a similar provision in Section 547.
This
[[Page 78211]]
language makes the bus projects designated in FYs 2005 and 2004
eligible for the designated purpose. However, if you want to apply to
use funds designated under the bus program in any year for project
activities outside the scope of the project designation included in
report language, you must submit your request for reprogramming to the
House and Senate Committees on Appropriations for resolution. FTA will
not reprogram Congressionally-designated projects without direction
from the Appropriations Committees.
Unless the law provides otherwise, projects designated prior to FY
2004 must conform to the eligibility requirements of the Bus and Bus-
Related Facilities program. Requests for reprogramming of funding for
projects designated prior to FY 2004 that are found not to be
consistent with the statutory intent of the program should also be
directed to the House and Senate Committees on Appropriations. Program
guidance for Bus and Bus-Related Facilities is found in FTA Circular
C9300.1A, Capital Program: Grant Application Instructions, dated
October 1, 1998.
3. Period of Availability
The 2005 Appropriations Act includes a provision requiring that FY
2005 Bus and Bus-Related Facilities funds not obligated for their
original purpose as of September 30, 2007, be made available for other
projects under 49 U.S.C. 5309. Certain Bus and Bus-Related Facilities
projects identified in previous years but not obligated were extended
for one year in the reports accompanying the 2005 Appropriations Act.
These project funds will lapse September 30, 2005, if they are not
obligated in a grant before then. A list of these extended projects
included in the Conference report and the amounts that remain
unobligated as of September 30, 2004, can be found in Table 10.
However, two projects in the Conference report are not included,
pending clarification of Congressional intent to reallocate the balance
to the New Starts program. FTA is seeking clarification from Congress
regarding Congressional intent to extend other projects that are listed
in the House or Senate report but not listed in the Conference Report.
4. Other Program or Allocation Related Information and Highlights
Prior year unobligated balances for Bus and Bus-Related allocations
in the amount of $791,171,631 remain available for obligation in FY
2005. This includes $758,522,868 in fiscal years 2003 and 2004
unobligated allocations, and $32,648,763 for fiscal years 1998-2002
unobligated allocations that were extended in the FY 2005 Conference
Report. These unobligated amounts are displayed in Table 10. Included
with the FY 2004 carryover projects in Table 10 is one project that was
transferred from the Job Access and Reverse Commute (JARC) program to
the Bus program by Section 531 of the 2005 Appropriations Act.
F. Capital Investment Program (49 U.S.C. 5309)--New Starts
The New Starts program provides funds for construction of new fixed
guideway systems or extensions to existing fixed guideway systems.
Eligible purposes are light rail, rapid rail (heavy rail), commuter
rail, monorail, automated fixed guideway system (such as a ``people
mover''), or a busway/high occupancy vehicle (HOV) facility, Bus Rapid
Transit that is fixed guideway, or an extension of any of these.
Projects become candidates for funding under this program by
successfully completing the appropriate steps in the major capital
investment planning and project development process. Major new fixed
guideway projects, or extensions to existing systems, financed with New
Starts funds typically receive these funds through a full funding grant
agreement (FFGA) that defines the scope of the project and specifies
the total multi-year Federal commitment to the project. For more
information about New Starts contact Sean Libberton, Office of Planning
and Environment, at (202) 366-4033.
1. Total Allocations
The 2005 Appropriations Act provides $1,437,829,600 to New Starts
after the across-the-board 0.80 percent rescission. The total amount
allocated for New Starts is $1,449,596,996, as shown in the table
below.
New Starts
------------------------------------------------------------------------
------------------------------------------------------------------------
Appropriation........................................ $1,449,425,000
Rescission........................................... (11,595,400)
Oversight Deduction.................................. (14,378,296)
Reallocated Prior Year Funds......................... a/26,145,692
------------------
Total Allocation................................... 1,449,596,996
------------------------------------------------------------------------
a/ Includes reallocated prior year New Starts and Bus funds.
The amount reallocated to New Starts includes $3,591,548 in FY 2001
funds and $22,554,144 in FY 2002 funds under the Capital Investment
Grants account, in accordance with language in the 2005 Appropriations
Act. FTA is in the process of clarifying with Congress the projects
from which these funds are to be derived and we will publish the
complete list as soon as possible.
The final allocation for each New Starts project is listed in Table
11. Each project allocation has been adjusted proportionally from the
amount designated in the 2005 Appropriations Act to account for the
across-the-board rescission and the amount deducted for oversight.
Table 11 also shows $11,016,268 as unallocated. Following notification
to Congress, FTA will reallocate these funds among certain projects on
the list. Also displayed in Table 11 is the amount of each New Starts
project allocation that is currently available for obligation, in
accordance with the Surface Transportation Extension Act of 2004, Part
V.
2. Program Requirements
Because New Starts projects are earmarked in law rather than report
language, reprogramming for a purpose other than that specified must
also occur in law. New Starts projects are subject to a complex set of
approvals related to planning and project development set forth in 49
CFR Part 611. Program guidance for New Starts is found in FTA Circular
C9300.1A, Capital Program: Grant Application Instructions, dated
October 1, 1998; and C5200.1A, Full Funding Grant Agreement Guidance,
dated December 5, 2002.
3. Period of Availability
The 2005 Appropriations Act includes a provision requiring that FY
2005 New Starts and Bus and Bus-Related funds not obligated for their
original purpose as of September 30, 2007, shall be made available for
other projects under 49 U.S.C. 5309.
Capital Investment Program funds for New Starts projects identified
as having been extended for one year in the FY 2005 Conference Report
accompanying the 2005 Appropriations Act will lapse September 30, 2005.
A list of these extended projects and the amounts that remained
unobligated as of September 30, 2004, appears in Table 12.
4. Other Program or Apportionment Related Information and Highlights
Prior year unobligated allocations for New Starts in the amount of
$479,244,898 remain available for obligation in FY 2005. This amount
includes $408,126,399 in fiscal years 2003 and 2004 unobligated
allocations, and $71,118,499 for fiscal years 2000, 2001 and 2002
unobligated allocations that are extended in the FY 2005 Conference
Report. These unobligated amounts are displayed in Table 12.
Information on pre-award authority for
[[Page 78212]]
New Starts projects is detailed in section V below.
G. Elderly and Persons With Disabilities Program (49 U.S.C. 5310)
This program (49 U.S.C. 5310) provides formula funding to States
for capital projects to assist private nonprofit groups in meeting the
transportation needs of the elderly and persons with disabilities when
the public transportation service provided is unavailable,
insufficient, or inappropriate to meet these needs. The State (or
State-designated agency) administers the Section 5310 program. The
State's responsibilities include: Notifying eligible local entities of
funding availability; developing project selection criteria;
determining applicant eligibility; selecting projects for funding; and
ensuring that all subrecipients comply with Federal requirements.
Eligible nonprofit organizations or public bodies must apply directly
to the designated State agency for assistance under this program. For
more information about the Elderly and Persons with Disabilities
Program contact Sue Masselink, Office of Resource Management and State
Programs, at (202) 366-2053.
1. Total Apportionments
The 2005 Appropriations Act provides $94,526,689 to the Elderly and
Persons with Disabilities Program (49 U.S.C. 5310) after the across-
the-board 0.80 percent rescission, which is the total amount
apportioned for the program, as shown in the table below.
Elderly and Persons With Disabilities Program
------------------------------------------------------------------------
------------------------------------------------------------------------
Appropriation........................................ 95,289,001
Rescission........................................... (762,312)
------------------
Total Apportioned.................................. 94,526,689
------------------------------------------------------------------------
The FY 2005 Elderly and Persons with Disabilities Program
apportionments to the States are displayed in Table 13. Also displayed
in Table 13 is the amount of a State's apportionment currently
available for obligation, in accordance with the Surface Transportation
Extension Act of 2004, Part V.
FTA allocates funds to the States by an administrative formula
consisting of a $125,000 floor for each State ($50,000 for smaller
territories) with the balance allocated based on 2000 Census population
data for persons aged 65 and over and for persons with disabilities.
2. Program Requirements
The funds provide capital assistance for transportation for elderly
persons and persons with disabilities. Eligible capital expenses may
include, at the option of the recipient, the acquisition of
transportation services by a contract, lease, or other arrangement.
While the assistance is intended primarily for private non-profit
organizations, public bodies that coordinate services for the elderly
and persons with disabilities, or any public body that certifies to the
State that there are no non-profit organizations in the area that are
readily available to carry out the service, may receive these funds.
Program guidance for the Elderly and Persons with Disabilities Program
is found in FTA Circular C9070.1E, The Elderly and Persons with
Disabilities Program Guidance and Application Instructions, dated
October 1, 1998.
3. Period of Availability
Funds allocated to States under the Elderly and Persons with
Disabilities Program in this notice must be obligated by September 30,
2005. Any funding that remains unobligated as of that date will revert
to FTA for reapportionment among the States under the Elderly and
Persons with Disabilities Program. FTA extended the period of
availability for FY 2004 funds through March 31, 2005, because full
year funding was not available for obligation until late in the fiscal
year. If TEA-21 has not been extended through the end of FY 2005 when
the current extension through May 31, 2005 expires, FTA will consider
extending the availability of FY 2005 Section 5310 funds.
4. Other Program or Apportionment Related Information and Highlights
These funds may be transferred by the Governor to supplement
Urbanized Area Formula or Nonurbanized Area Formula capital funds
during the last 90 days of the fiscal year.
H. Nonurbanized Area Formula Program (49 U.S.C. 5311)
This program provides formula funding to States for the purpose of
supporting public transportation in areas of less than 50,000
population. Funding may be used for capital, operating, State
administration, and project administration expenses. Each State
prepares an annual program of projects, which must provide for fair and
equitable distribution of funds within the States, including Indian
reservations, and must provide for maximum feasible coordination with
transportation services assisted by other Federal sources. For more
information about the Nonurbanized Area Formula Program contact Lorna
Wilson, Office of Resource Management and State Programs, at (202) 366-
2053.
1. Total Apportionments
The 2005 Appropriations Act provides $250,889,588 to the
Nonurbanized Area Formula Program (49 U.S.C. 5311) after across-the-
board 0.80 percent rescission. The total amount apportioned for the
Nonurbanized Area Formula Program is $249,635,140, after the deduction
for oversight, as shown in the table below.
Nonurbanized Area Formula Program
------------------------------------------------------------------------
------------------------------------------------------------------------
Appropriation........................................ 252,912,891
Rescission........................................... (2,023,303)
Oversight Deduction.................................. (1,254,448)
------------------
Total Apportioned.................................. 249,635,140
------------------------------------------------------------------------
The FY 2005 Nonurbanized Area Formula apportionments to the States
are displayed in Table 14. Also displayed in Table 14 is the amount of
each State's apportionment that is currently available for obligation,
in accordance with the Surface Transportation Extension Act of 2004,
Part V.
2. Program Requirements
The Nonurbanized Area Formula Program provides capital, operating
and administrative assistance for areas under 50,000 in population.
Funds are apportioned in proportion to each State's nonurbanized
population. Each State must spend no less than 15 percent of its FY
2005 Nonurbanized Area Formula apportionment for the development and
support of intercity bus transportation, unless the Governor certifies
to the Secretary that the intercity bus service needs of the State are
being adequately met. Program guidance for the Nonurbanized Area
Formula Program is found in C9040.1E, Nonurbanized Area Formula Program
Guidance and Grant Application Instructions, dated October 1, 1998.
3. Period of Availability
Funds apportioned to nonurbanized areas under the Nonurbanized Area
Formula Program will remain available for two fiscal years following FY
2005. Any funds that remain unobligated at the close of business on
September 30, 2007, will revert to FTA for allocation among the States
under the Nonurbanized Area Formula Program.
[[Page 78213]]
4. Other Program or Apportionment Related Information and Highlights
Given the ongoing changes in the intercity bus industry, FTA
encourages States to consult with intercity bus operators and
communities affected by loss of service when evaluating the intercity
bus needs of the State.
The dollar unit value shown for the Nonurbanized Area Formula
Program in Table 5 of this notice may be multiplied by the States
nonurbanized population to replicate FTA's calculation of each State's
apportionment.
I. Rural Transit Assistance Program (49 U.S.C. 5311(b)(2))
This program provides funding to assist in the design and
implementation of training and technical assistance projects, research,
and other support services tailored to meet the needs of transit
operators in nonurbanized areas. For more information about Rural
Transit Assistance Program (RTAP) contact Lorna Wilson, Office of
Resource Management and State Programs, at (202) 366-2053.
1. Total Apportionments
The 2005 Appropriations Act provides $5,208,000 to RTAP (49 U.S.C.
5311(b)(2)) after the across-the-board 0.80 percent rescission, which
is the total amount apportioned for RTAP, as shown in the table below.
------------------------------------------------------------------------
------------------------------------------------------------------------
Appropriation........................................ 5,250,000
Rescission........................................... (42,000)
------------------
Total Apportioned................................ 5,208,000
------------------------------------------------------------------------
The FY 2005 RTAP allocations to the States are displayed in Table
14. Also displayed in Table 14 is the amount of each State's allocation
that is currently available for obligation, in accordance with the
Surface Transportation Extension Act of 2004, Part V. Funds are
allocated to the States by an administrative formula consisting of a
$65,000 floor for each State ($10,000 for territories), with the
balance allocated based on nonurbanized population in the 2000 Census.
2. Program Requirements
The funds are allocated to the States to undertake research,
training, technical assistance, and other support services to meet the
needs of transit operators in nonurbanized areas. These funds are to be
used in conjunction with a State's administration of the Nonurbanized
Area Formula Program.
3. Period of Availability
Funds apportioned to nonurbanized areas under RTAP will remain
available for two fiscal years following FY 2005. Any funds that remain
unobligated at the close of business on September 30, 2007, will revert
to FTA for allocation among the States under the RTAP.
4. Other Program or Apportionment Related Information and Highlights
FTA also supports RTAP activities at the national level with the
National Planning and Research Program (NPRP). The National RTAP
activities support the States in their provision of training and
technical assistance. Congress did not designate any NPRP funds for the
National RTAP in the Conference Report accompanying the Consolidated
Appropriations Act, 2005. FTA will, however, consider the National RTAP
among projects to be funded from the limited available NPRP funds.
J. Statewide Planning and Research Program (49 U.S.C. 5313(b))
This program provides financial assistance to States for Statewide
planning and other technical assistance activities (including
supplementing the technical assistance program provided through the
Metropolitan Planning Formula Program), planning support for
nonurbanized areas, research, development and demonstration projects,
fellowships for training in the public transportation field, university
research, and human resource development. For more about the Statewide
Planning and Research Program contact Candace Noonan, Program Manager,
at (202) 366-1626.
1. Total Apportionments
The 2005 Appropriations Act provides $12,513,485 to the Statewide
Planning and Research Program (49 U.S.C. 5313(b)) after the across-the-
board 0.80 percent rescission. The total amount apportioned for the
Statewide Planning and Research Program (SPRP) is $12,659,599, as shown
in the table below.
Statewide Planning and Research Program
------------------------------------------------------------------------
------------------------------------------------------------------------
Appropriation........................................ 12,614,400
Rescission........................................... (100,915)
Prior Year Funds Added............................... 146,114
------------------
Total Apportioned.................................. 12,659,599
------------------------------------------------------------------------
State apportionments for this program are displayed in Table 2.
Also displayed in Table 2 is the amount of each State's apportionment
that is currently available for obligation, in accordance with the
Surface Transportation Extension Act of 2004, Part V. Funds are
allocated by a formula that is based on information received from the
latest decennial census, and the State's UZA population as compared to
the UZA population of all States. However, a State must receive at
least 0.5 percent of the amount apportioned under this program.
2. Program Requirements
Statewide Planning and Research funds are apportioned to States by
statutory formula to provide funds for Statewide Planning and Research
Programs. These funds may be used for a variety of purposes such as
planning, technical studies and assistance, demonstrations, management
training, and cooperative research. In addition, a State may authorize
a portion of these funds to be used to supplement metropolitan planning
funds allocated by the State to its UZAs, as the State deems
appropriate. Program guidance for the Statewide Planning and Research
Program is found in FTA Circular C8200.1, Program Guidance and
Application Instructions for State Planning and Research Program
Grants, dated December 27, 2001.
3. Period of Availability
The funds apportioned in this notice under the Statewide Planning
and Research Program will remain available to be obligated by FTA to
recipients for three fiscal years following FY 2005. Any of these
apportioned funds that remain unobligated at the close of business on
September 30, 2008, will revert to FTA for reapportionment under the
program.
4. Other Program or Apportionment Related Information and Highlights
Section VI of this document provides various guidance and
information specific to FTA planning programs, including the Statewide
Planning and Research Program. Refer to that section for additional
information relevant to this program.
K. National Planning and Research Program (49 U.S.C. 5314)
Through funding under this program, FTA seeks to deliver solutions
that improve public transportation. FTA's Strategic Research Goals are
to increase transit ridership, improve capital and operating
efficiencies, improve safety and emergency preparedness, and to protect
the environment and promote energy independence. For more about the
National Planning and Research Program contact Bruce Robinson, Office
[[Page 78214]]
of Research, Demonstration and Innovation, at (202) 366-4209.
1. Total Apportionments
The 2005 Appropriations Act provides $37,200,000 for the National
Planning and Research Program after the across-the-board 0.80 percent
rescission. Of this amount $20,892,622 is allocated for specific
activities, after applicable reductions for the Small Business
Innovation Research program.
National Planning and Research Program
------------------------------------------------------------------------
------------------------------------------------------------------------
Appropriation........................................ 37,500,000
Rescission........................................... (300,000)
------------------
Total Apportioned.................................. 37,200,000
------------------------------------------------------------------------
All research and research and development projects are subject to a
2.6% reduction for the Small Business Innovative Research Program. This
determination is made by FTA based on the proposed statement of work.
The project allocations are listed in Table 15, along with the amount
that is currently available for obligation, in accordance with the
Surface Transportation Extension Act of 2004, Part V.
2. Program Requirements
Application Instructions and Program Management Guidelines are set
forth in FTA Circular 6100.1C. Research projects must support FTA's
Strategic Research Goals and meet the Office of Management and Budget's
Research and Development Investment Criteria. All research recipients
are required to work with FTA to develop approved Statements of Work
and plans to evaluate research results before award.
3. Period of Availability
Funds are available until expended.
4. Other Program or Apportionment Related Information and Highlights
Funds not designated by Congress for specific projects and
activities will be programmed by FTA based on national priorities.
L. Job Access and Reverse Commute Program
The Job Access and Reverse Commute (JARC) Program provides funding
for transportation services designed to increase access to jobs and
employment-related activities. Job Access projects are those that
transport welfare recipients and low-income individuals, including
economically disadvantaged persons with disabilities, in urban,
suburban, or rural areas to and from jobs and activities related to
their employment. Reverse Commute projects provide transportation
services for the general public from urban, suburban, and rural areas
to suburban employment opportunities. A total of up to $10,000,000 from
the appropriation may be used for Reverse Commute Projects. For more
information about the JARC program contact Gregory D. Brown, Office of
Resource Management and States Program, at (202) 366-2053.
1. Total Apportionments
The 2005 Appropriations Act provides $124,000,000 for the Job
Access and Reverse Commute (JARC) Program after the across-the-board
0.80 percent rescission. The total amount allocated to JARC projects is
$123,702,400, as shown in the table below.
Job Access and Reverse Commute
------------------------------------------------------------------------
------------------------------------------------------------------------
Appropriation........................................... $125,000,000
Rescission.............................................. (1,000,000)
Tech. Asst. Takedown.................................... (297,600)
---------------
Total Allocation...................................... 123,702,400
------------------------------------------------------------------------
JARC project allocations designated in the Conference Report are
included in this notice as Table 16. The amounts designated in the
report have been adjusted to reflect the rescission, and the $297,600
set-aside for technical assistance and evaluation of the program.
2. Program Requirements
Although TEA-21 requires that JARC project selections be made
through a national competition based on statutorily specified criteria,
the 2005 Appropriations Act overrides the requirement for competitive
selection by directing FTA to award grants for the JARC designations
included in the Conference report language upon receipt of an
application. The Federal share for JARC projects, both capital and
operating assistance, is 50 percent of net project cost. Planning is
not an eligible activity.
Unless statutorily directed otherwise, FTA will honor the
discretionary project designations included in Conference Report
language for JARC, to the extent that the projects meet the statutory
intent of the program. Section 125 of the 2005 Appropriations Act, made
the JARC funds designated to projects in FY 2005 available upon FTA's
receipt of an application. Section 547 in the Consolidated
Appropriations Act, 2004, provided likewise for JARC projects
designated in FY 2004. Requests for reprogramming of funding must be
directed to the House and Senate Committees on Appropriations for
resolution.
3. Period of Availability
Funds for JARC projects competitively selected by FTA remain
available for two fiscal years following the fiscal year of selection.
No projects competitively selected in previous fiscal years remain
available for obligation in FY 2005. Congressional allocations of JARC
projects remain available to the designated entity unless reallocated
by Congress. Congress did not reallocate unobligated Congressional
allocations for JARC projects from fiscal years 2002 in the 2005
Appropriations Act, so they remain available for obligation. Projects
designated prior to FY 2002 were reallocated in prior years.
4. Other Program or Apportionment Related Information and Highlights
Prior year unobligated balances for JARC allocations in the amount
of $119,748,937 remain available for obligation in FY 2005. These
balances include Congressional allocations from fiscal years 2002, 2003
and 2004. These unobligated amounts are displayed in Table 17.
M. Over-the-Road Bus Accessibility Program
The Over-the-Road Bus Accessibility (OTRB) Program authorizes FTA
to make grants to operators of over-the-road buses to help finance the
incremental capital and training costs of complying with the DOT over-
the-road bus accessibility final rule, 49 CFR Part 37, published on
September 28, 1998 (63 FR 51670). FTA conducts a national solicitation
of applications, and grantees are selected on a competitive basis. For
more information about the OTRB program contact Blenda Younger, Office
of Resource Management and States Program, at (202) 366-2053.
1. Total Allocation
The 2005 Appropriations Act provides $6,894,400 for the Over-the-
Road Bus Accessibility (OTRB) Program after the across-the-board 0.80
percent rescission, which is the total amount allocable for OTRB, as
shown in the table below.
Over-the-Road Bus Accessibility Program
------------------------------------------------------------------------
------------------------------------------------------------------------
Appropriation........................................... $6,950,000
Rescission.............................................. (55,600)
---------------
Total Allocation...................................... 6,894,400
------------------------------------------------------------------------
Of this amount, $5,239,744 is allocable to providers of intercity
fixed-
[[Page 78215]]
route service, and $1,654,666 to other providers of over-the-road bus
services, including local fixed-route service, commuter service, and
charter and tour service. The total amount of $4,656,832 is currently
available for obligation in accordance with the Surface Transportation
Extension Act of 2004, Part V. This includes $3,539,192 for intercity
fixed-route service and $1,117,640 for other over-the-road bus
services.
2. Program Requirements
Projects are competitively selected. The Federal share of the
project is 90 percent of net project cost. Program guidance is provided
in the Federal Register notice soliciting applications. The FY 2004
notice was published November 24, 2003, and is available at http://www.fta.dot.gov/legal/federal_register/2004/12174_12199_ENG_HTML.htm.
Assistance is available to operators of buses used
substantially or exclusively in intercity, fixed route, over-the-road
bus service. Capital projects eligible for funding include projects to
add lifts and other accessibility components to new vehicle purchases
and to purchase lifts to retrofit existing vehicles. Eligible training
costs include developing training materials or providing training for
local providers of over-the-road bus services.
3. Period of Availability
Funds are available until expended.
4. Other Program or Apportionment Related Information and Highlights
A Federal Register notice providing program guidance and
application procedures for FY 2005 will be published at a later date
and synopsized at http://www.grants.gov. A Federal Register notice of FY 2004
project selections was published November 16, 2004, and is available at
http://www.fta.dot.gov/legal/federal_register/2004/12174_16182_ENG_HTML.htm
.
V. FTA Program Guidance and Requirements
A. Automatic Pre-Award Authority to Incur Project Costs
This information incorporates and elaborates on guidance previously
provided in the FTA Fiscal Years 2002--2004 Apportionments and
Allocations Notices, which can be found on the FTA Web site at http://www.fta.dot.gov/25_ENG_HTML.htm
.
1. Policy
FTA provides blanket, or automatic, pre-award authority to certain
program areas described below. This pre-award authority allows grantees
to incur project costs prior to grant approval and retain their
eligibility for subsequent reimbursement after grant approval. The
grantee assumes all risk and is responsible for ensuring that all
conditions are met to retain eligibility. This automatic pre-award
spending authority permits a grantee to incur costs on an eligible
transit capital or planning project without prejudice to possible
future Federal participation in the cost of the project or projects.
Prior to exercising pre-award authority, grantees must comply with the
conditions and Federal requirements outlined in paragraphs 2 and 3
below. Failure to do so will render an otherwise eligible project
ineligible for FTA financial assistance. In addition, prior to
incurring costs, grantees are strongly encouraged to consult with the
appropriate FTA regional office regarding the eligibility of the
project for future FTA funds and the applicability of the conditions
and Federal requirements.
In the June 24, 1998 Federal Register Notice on TEA-21, pre-award
authority was extended to all formula funds and flexible funds that
would be apportioned during the authorization period of TEA-21, 1998-
2003. In the February 11, 2004 Federal Register Notice of FY 2004
Apportionments and Allocations, FTA extended pre-award authority to
grantees for project costs to be reimbursed by formula funds and
flexible funds to be appropriated in FY 2005. In this notice, FTA is
extending this pre-award authority for formula funds and flexible funds
that will be appropriated in FY 2006. Pre-award authority for operating
and planning projects under the formula grant programs is not limited
to the authorization period. In addition, automatic pre-award authority
for section 5303 and 5313(b) has been granted through FY 2006. Pre-
award authority also applies to section 5309 Capital Investment Bus and
Bus-Related allocations and JARC allocations identified in this and
previous notices. For such section 5309 Capital Investment Bus and Bus-
Related and JARC projects, the date that costs may be incurred is the
date that the appropriation bill in which they are contained was
enacted. In the February 11, 2004 notice FTA extended pre-award
authority to Section 330 projects, and, in this notice, FTA is also
extending comparable pre-award authority to those surface
transportation projects commonly referred to as Section 115 projects
administered by FTA, for which amounts were provided in the
Consolidated Appropriations Act, 2004 and Section 117 projects in the
2005 Appropriations Act. We strongly encourage any prospective
applicant that does not have a relationship with FTA to review Federal
grant requirements with the FTA regional office before incurring costs.
Blanket pre-award authority does not apply to section 5309 Capital
Investment New Starts funds. Specific instances of pre-award authority
for Capital Investment New Starts projects are described in paragraph 4
below. Pre-award authority does not apply to Capital Investment Bus and
Bus-Related projects not specified in this or previous notices. Before
an applicant may incur costs for Capital Investment New Starts
projects, Bus and Bus-Related projects, or any other projects not
listed in this notice or previous notices, it must first obtain a
written Letter of No Prejudice (LONP) from FTA. To obtain an LONP, a
grantee must submit a written request accompanied by adequate
information and justification to the appropriate FTA regional office,
as described V.B below.
In using pre-award authority for FY 2006 formula funds, grantees
are cautioned that reauthorization may result in changes in program
structure, administrative requirements, or funding availability. As
with all pre-award authority, activities must be conducted in
compliance with Federal requirements in order to retain eligibility for
future reimbursement. New grantees are encouraged to contact the
appropriate FTA regional office before incurring costs, in order to
ensure that requirements are met so that expenses remain eligible.
2. Conditions
The conditions under which pre-award authority may be utilized are
specified below:
a. Pre-award authority is not a legal or implied commitment that
the project(s) will be approved for FTA assistance or that FTA will
obligate Federal funds. Furthermore, it is not a legal or implied
commitment that all items undertaken by the applicant will be eligible
for inclusion in the project(s).
b. All FTA statutory, procedural, and contractual requirements must
be met.
c. No action will be taken by the grantee that prejudices the legal
and administrative findings that the Federal Transit Administrator must
make in order to approve a project.
d. Local funds expended by the grantee pursuant to and after the
date of the pre-award authority will be eligible for credit toward
local match or reimbursement if FTA later makes a
[[Page 78216]]
grant for the project(s) or project amendment(s).
e. The Federal amount of any future FTA assistance awarded to the
grantee for the project will be determined on the basis of the overall
scope of activities and the prevailing statutory provisions with
respect to the Federal/local match ratio at the time the funds are
obligated.
f. For funds to which the pre-award authority applies, the
authority expires with the lapsing of the fiscal year funds.
g. When a grant for the project is subsequently awarded, the
Financial Status Report, in TEAM-Web, must indicate the use of pre-
award authority.
3. Environmental, Planning, and Other Federal Requirements
All Federal grant requirements must be met at the appropriate time
for the project to remain eligible for Federal funding. For example,
the requirement that a project be included in a locally adopted
metropolitan transportation improvement program and Federally-approved
statewide transportation improvement program (23 CFR part 450) must be
satisfied before the grantee may advance the project beyond planning
and preliminary design with non-Federal funds under pre-award
authority. For planning projects, the project must be included in a
locally-approved Planning Work Program that has been coordinated with
the State. Compliance with the National Environmental Policy Act (NEPA)
and other environmental laws and executive orders (e.g., protection of
parklands, wetlands, and historic properties) must be completed before
State or local funds are spent on implementation activities, such as
finalizing the design, site preparation, construction, and acquisition,
for a project that is expected to be subsequently funded with FTA
funds. The grantee may not advance the project beyond planning and
preliminary design before FTA has determined the project to be a
categorical exclusion, or has issued a finding of no significant impact
(FONSI) or an environmental record of decision (ROD), in accordance
with FTA environmental regulations, 23 CFR Part 771. The conformity
requirements of the Clean Air Act, 40 CFR Part 93, if applicable, must
also be fully met before the project may be advanced into
implementation under pre-award authority with non-Federal funds.
In addition, Federal procurement procedures, as well as the whole
range of applicable Federal requirements (e.g., Buy America, Davis-
Bacon Act), must be followed for projects in which Federal funding will
be sought in the future. Failure to follow any such requirements could
make the project ineligible for Federal funding. In short, this
increased administrative flexibility requires a grantee to make certain
that no Federal requirements are circumvented through the use of pre-
award authority. If a grantee has questions or concerns regarding the
environmental requirements, or any other Federal requirements that must
be met before incurring costs, it should contact the appropriate
regional office.
4. Pre-Award Authority for New Starts Projects
a. Preliminary Engineering and Final Design
Projects proposed for section 5309 New Starts funds are required to
follow a Federally defined New Starts project development process. This
New Starts process includes, among other things, FTA approval of the
entry of the project into Preliminary Engineering (PE) and into Final
Design (FD). In accordance with section 5309(e), FTA considers the
merits of the project, the strength of its financial plan, and its
readiness to enter the next phase in deciding whether or not to approve
entry into PE or FD. Upon FTA approval to enter PE, FTA extends pre-
award authority to incur costs for PE activities. Upon FTA approval to
enter FD, FTA extends pre-award authority to incur costs for FD
activities. The pre-award authority for each phase is automatic upon
FTA's signing of a letter to the project sponsor approving entry into
that phase. PE and FD are defined in the New Starts regulation entitled
Major Capital Investment Projects, found at 49 CFR Part 611.
b. Real Property Acquisition Activities
FTA extends automatic pre-award authority for the acquisition of
real property and real property rights for a New Starts project upon
completion of the NEPA process for that project. The NEPA process is
completed when FTA signs an environmental Record of Decision (ROD) or
Finding of No Significant Impact (FONSI), or makes a Categorical
Exclusion (CE) determination. With the limitations and caveats
described below, real estate acquisition for a New Starts project may
commence, at the project sponsor's risk, upon completion of the NEPA
process.
For FTA-assisted projects, any acquisition of real property or real
property rights must be conducted in accordance with the requirements
of the Uniform Relocation Assistance and Real Property Acquisition
Policies Act (URA) and its implementing regulations, 49 CFR part 24.
This pre-award authority is strictly limited to costs incurred: (i) to
acquire real property and real property rights in accordance with the
URA regulation, and (ii) to provide relocation assistance in accordance
with the URA regulation. This pre-award authority is limited to the
acquisition of real property and real property rights that are
explicitly identified in the final environmental impact statement
(FEIS), environmental assessment (EA), or CE document, as needed for
the selected alternative that is the subject of the FTA-signed ROD or
FONSI, or CE determination. This pre-award authority does not cover
site preparation, demolition, or any other activity that is not
strictly necessary to comply with the URA, with one exception. That
exception is when a building that has been acquired, has been emptied
of its occupants, and awaits demolition poses a potential fire-safety
hazard or other hazard to the community in which it is located, or is
susceptible to reoccupation by vagrants, demolition of the building is
also covered by this pre-award authority upon FTA's written agreement
that the adverse condition exists.
FTA's rationale for providing this pre-award authority was
described in the FY 2003 Apportionments and Allocations Notice
published in the Federal Register on March 12, 2003, (68 FR 1106 et
seq.). The FY 2003 Notice may be found on the FTA Web site at http://www.fta.dot.gov/library/legal/federalregister/2003/fr31203.pdf.
Project
sponsors should use pre-award authority for real property acquisition
and relocation assistance very carefully, with a clear understanding
that it does not constitute a funding commitment by FTA.
c. National Environmental Policy Act (NEPA) Activities
NEPA requires that major projects proposed for FTA funding
assistance be subjected to a public and interagency review of the need
for the project, its environmental and community impacts, and
alternatives to avoid and reduce adverse impacts. Projects of more
limited scope also need a level of environmental review, either to
support an FTA finding of no significant impact (FONSI) or to
demonstrate that the action is categorically excluded from the more
rigorous level of NEPA review.
FTA's regulation entitled Environmental Impact and Related
Procedures at 23 CFR part 771 states that the costs incurred by a grant
applicant for the preparation of environmental documents requested by
FTA are eligible for FTA financial assistance (23 CFR 771.105(e)).
[[Page 78217]]
Accordingly, FTA extends automatic pre-award authority for costs
incurred to comply with NEPA regulations and to conduct NEPA-related
activities for a proposed New Starts project, effective as of the date
of the Federal approval of the relevant STIP or STIP amendment that
includes the project or any phase of the project. NEPA-related
activities include, but are not limited to, public involvement
activities, historic preservation reviews, section 4(f) evaluations,
wetlands evaluations, endangered species consultations, and biological
assessments. This pre-award authority is strictly limited to costs
incurred to conduct the NEPA process, and to prepare environmental,
historic preservation and related documents. It does not cover
preliminary engineering activities beyond those necessary for NEPA
compliance. As with any pre-award authority, FTA reimbursement for
costs incurred is not guaranteed.
d. Other New Starts Activities Requiring Letter of No Prejudice (LONP)
Except as discussed in paragraphs (a) through (c) above, a grant
applicant must obtain a written LONP from FTA before incurring costs
for any activity expected to be funded by New Start funds not yet
granted. To obtain an LONP, an applicant must submit a written request
accompanied by adequate information and justification to the
appropriate FTA regional office, as described in section V.B below.
B. Letter of No Prejudice (LONP) Policy
1. Policy
LONP authority allows an applicant to incur costs on a project
utilizing non-Federal resources, with the understanding that the costs
incurred subsequent to the issuance of the LONP may be reimbursable as
eligible expenses or eligible for credit toward the local match should
FTA approve the project at a later date. LONPs are applicable to
projects and project activities not covered by automatic pre-award
authority. The majority of LONPs will be for section 5309 New Starts
funds not covered under a full funding grant agreement, or for section
5309 Bus and Bus-Related funds not yet appropriated by Congress. At the
end of an authorization period, LONPs may be issued for formula funds
beyond the life of the current authorization or FTA's extension of
automatic pre-award authority.
2. Conditions and Federal Requirements
The conditions for pre-award authority specified in V.A.2 above
apply to all LONPs. The Environmental, Planning and Other Federal
Requirements described in V.A.3, also apply to all LONPs. Because
project implementation activities may not be initiated prior to NEPA
completion, FTA will normally not issue an LONP for such activities
until the NEPA process has been completed with a ROD, FONSI, or
Categorical Exclusion determination.
3. Request for LONP
Before incurring costs for a project not covered by automatic pre-
award authority, the project sponsor must first submit a written
request for an LONP, accompanied by adequate information and
justification, to the appropriate regional office and obtain written
approval. As a prerequisite to FTA approval of an LONP for a New Starts
project, FTA will require project sponsors to demonstrate project
worthiness and readiness. Projects will be assessed based upon the
criteria considered in the New Start evaluation process. Specifically,
upon the request for an LONP, the applicant shall provide sufficient
information to allow FTA to consider the following items:
a. Description of the activities to be covered by the LONP.
b. Justification for advancing the identified activities.
c. Data that indicates that the project will maintain its ability
to receive a ``Recommended'' rating.
d. Allocated level of risk and contingency for the activity
requested.
e. Status of procurement progress, including, if appropriate,
submittal of bids for the activities covered by the LONP.
f. Strength of the capital and operating financial plan for the New
Starts project and the future transit system.
g. Adequacy of the Project Management Plan.
h. Resolution of any readiness issues that would affect the
project, such as land acquisition and technical capacity to carry out
the project.
C. FTA FY 2005 Annual List of Certifications and Assurances
On October 26, 2004, the Federal Fiscal Year 2005 Annual List of
Certifications and Assurances was published in the Federal Register.
The 2005 Annual List contains the following changes to the previous
year's Federal Register publication:
(1) In the preface to the certifications and assurances, a
paragraph has been added to explain that not all certifications and
assurances will apply to all Applicants; and that the certifications
and assurances are pre-award requirements and do not encompass all
Federal requirements that may apply to the Applicant and its project.
(2) Certification 13(A)(1)(j) is amended to state that in the case
of an Applicant serving in a UZA with a population of 200,000 or more,
only capital security projects may be financed with the one percent of
the UZA formula funds set aside by 49 U.S.C. 5307(d)(1)(J) for security
projects.
(3) The Affirmation of the Applicant has been edited to clarify
that the criminal fraud provisions of 18 U.S.C. 1001 apply to all
certifications, assurances, agreements, and other submissions to FTA.
The 2005 Annual List is accessible on the Internet at
http://www.fta.dot.gov. Any questions regarding this document may be addressed
to the appropriate Regional Office or to Pat Simpich, in the FTA Office
of Program Management, at (202) 366-1662.
D. FHWA Funds Used for Transit Purposes
The Intermodal Surface Transportation Efficiency Act of 1991
(ISTEA) and TEA-21 have expanded modal choice in transportation funding
by including substantial flexibility to transfer funds between FTA and
FHWA program funding categories.
1. Transfer Process
The process for transferring flexible formula funds between FTA and
FHWA programs is described below. For information on the transfer of
funds between FTA and FHWA planning programs, contact the FTA/FHWA
staff identified in VI.D below.
Transfer from FHWA to FTA. FHWA funds designated for use in transit
capital projects must be derived from the metropolitan and statewide
planning and programming process, and must be included in an approved
STIP before the funds can be transferred. By letter, the State DOT
requests the FHWA Division Office to transfer highway funds for a
transit project. The letter should specify the project, amount to be
transferred, apportionment year, State, Federal aid apportionment
category (i.e., Surface Transportation Program (STP), Congestion
Mitigation and Air Quality (CMAQ), Interstate Substitute, or
congressional earmark), and should include a description of the project
as contained in the STIP.
The FHWA Division Office confirms that the apportionment amount is
available for transfer and concurs in the transfer, by letter to the
State DOT and FTA. The FHWA Office of Budget and Finance then transfers
obligation authority and an equal amount of cash
[[Page 78218]]
to FTA. All FHWA CMAQ, STP, and Congressionally earmarked funds for
transit projects in the Appropriations Act or Conference Report will be
transferred to one of the three FTA formula programs (i.e. Urbanized
Area Formula (section 5307), Nonurbanized Area Formula (section 5311)
or Elderly and Persons with Disabilities (section 5310).
The FTA grantee's application for the project must specify which
program the funds will be used for, and the application must be
prepared in accordance with the requirements and procedures governing
that program. Upon review and approval of the grantee's application,
FTA obligates funds for the project.
Transferred funds are treated as FTA formula funds, but are
assigned a distinct identifying code for tracking purposes. The funds
may be used for any capital purpose eligible under the FTA formula
program to which they are transferred and, in the case of CMAQ, for
certain operating costs. FTA and FHWA have issued guidance on project
eligibility under the CMAQ program in a Notice at 65 FR 9040 et seq.
(February 23, 2000). In accordance with 23 U.S.C. 104(k), all FTA
requirements except local share are applicable to transferred funds;
FHWA local share requirements apply to funds transferred from FHWA to
FTA. Transferred funds should be combined with regular FTA funds in a
single annual grant application.
In the event that transferred funds are not obligated for the
intended purpose within the period of availability of the program to
which they were transferred, they become available to the Governor for
any eligible capital transit project.
Transfers from FTA to FHWA. The Metropolitan Planning Organization
(MPO) submits a written request to the FTA Regional Office for a
transfer of FTA section 5307 formula funds (apportioned to a UZA
200,000 and over in population) to FHWA based on approved use of the
funds for highway purposes, as contained in the Governor's approved
State Transportation Improvement Program. The MPO must certify that:
(1) The funds are not needed for capital investments required by the
Americans with Disabilities Act; (2) notice and opportunity for comment
and appeal has been provided to affected transit providers; and (3)
local funds used for non-Federal match are eligible to provide
assistance for either highway or transit projects. The FTA Regional
Administrator reviews and concurs in the request, then forwards the
approval to FTA Headquarters, where a reduction equal to the dollar
amount being transferred to FHWA is made to the grantee's Urbanized
Area Formula Program apportionment.
For information regarding these procedures, please contact Kristen
D. Clarke, FTA Budget Office, at (202) 366-1686; or James V. Lunetta,
FHWA Finance Division, at (202) 366-2845.
2. Matching Share for FHWA Transfers
The provisions of Title 23 U.S.C. regarding the non-Federal share
apply to Title 23 funds used for transit projects. Thus, FHWA funds
transferred to FTA retain the same matching share that the funds would
have if used for highway purposes and administered by FHWA.
There are three instances in which a Federal share higher than 80
percent would be permitted. First, in States with large areas of Indian
and certain public domain lands and national forests, parks and
monuments, the local share for highway projects is determined by a
sliding scale rate, calculated based on the percentage of public lands
within that State. This sliding scale, which permits a greater Federal
share, but not to exceed 95 percent, is applicable to transfers used to
fund transit projects in these public land States. FHWA develops the
sliding scale matching ratios for the increased Federal share.
Second, commuter carpooling and vanpooling projects and transit
safety projects using FHWA transfers administered by FTA may retain the
same 100 percent Federal share that would be allowed for ride-sharing
or safety projects administered by FHWA.
The third instance is the 100 percent Federally-funded safety
projects; however, these are subject to a nationwide 10 percent program
limitation.
3. Miscellaneous Transit Earmarks in FHWA Programs
The FY 2002 and FY 2003 Appropriations Acts and accompanying
reports included Section 330, which identified a number of transit
projects among projects designated to receive funding from certain
Federal Highway Administration (FHWA) funding sources. In FY 2004,
Section 115 similarly included transit projects among projects
designated to receive funding from certain FHWA sources. Some of these
FY 2002-2004 designations for transit projects have not yet been
obligated. The 2005 Appropriations Act also includes a new set of
designations under Section 117, which may include some projects that
FHWA will identify to be administered by FTA. For those projects
identified by FHWA as transit in nature, FHWA allots the funds to FTA
to administer. The funds are available for the designated project until
obligated and expended. However, because these are FHWA funds, FTA
cannot carry over unobligated balances remaining at the end of the
fiscal year. Instead FHWA re-allots carryover to FTA annually, after
reconciling account balances. Because the requirements and procedures
associated with these projects differ in some cases from those for the
FTA programs that FTA grantees are familiar with, and the availability
of funds for obligation by FTA depends on allotments from FHWA, transit
applicants seeking funding under these miscellaneous FHWA designations
must work closely with the appropriate FTA regional office and FHWA
Division Office when applying for a grant under these designations.
E. Grant Application Procedures
Grantees must provide a Dun and Bradstreet (D&B) Data Universal
Numbering System (DUNS) number for inclusion in all applications for a
Federal grant or cooperative agreement submitted on or after October 1,
2003. The Office of Management and Budget (OMB) published this
requirement in the Federal Register on June 27, 2003 at 68 FR 38402 et
seq. On August 4, 2003, FTA issued a Dear Colleague letter including
instructions on how to obtain a DUNS number; the letter can be accessed
at http://www.fta.dot.gov/legal/guidance/dear_colleague/2003/178_12145_ENG_HTML.htm.
The DUNS number should be entered into the
grantee profile in TEAM-Web. Additional information about this and
other Federal grant streamlining initiatives mandated by the Federal
Financial Assistance Management Improvement Act of 1999 (Pub. L. 106-
107) can be accessed on OMB's Web site at http://www.whitehouse.gov/omb/grants/reform.html
.
All applications for FTA funds should be submitted to the
appropriate FTA regional office. FTA utilizes TEAM-Web, an Internet-
accessible electronic grant application system, and all applications
are filed electronically. FTA has provided exceptions to the
requirement for electronic filing of applications for certain new, non-
traditional grantees in the JARC and OTRB programs, as well as to a few
grantees that have not successfully connected to or accessed TEAM-Web.
In FY 2005, FTA is committed to maintaining the average number of
days required to process a completed grant application at 36 days or
fewer, while continuing to process at least 80 percent of grants within
60 days of receipt of a completed application by the
[[Page 78219]]
appropriate Regional Office. In FY 2004, FTA achieved this goal, with
an average processing time of 30 days and 91 percent of grants
obligated within 60 days of submission of a completed application.
In order for an application to be considered complete and for FTA
to assign a grant number, enabling submission in TEAM-Web, the
requirements listed in III.A of this document must be met. During FY
2005, any grantee applying for funds available under an extension of
TEA-21 before the full year's apportionment becomes available is
encouraged to include contingency items for the remainder of the funds,
so that the entire project can be certified by DOL at the time of the
initial application. The FTA circulars contain more information
regarding application contents. State applicants for section 5311 funds
are reminded that they must certify to DOL that all subrecipients have
agreed to the standard labor protection warranty for section 5311, and
must provide DOL with specified related information for each grant.
Before FTA can award grants for discretionary projects and
activities designated by Congress, notification must be given to
members of Congress, and in the case of awards greater than $1 million,
to the House and Senate appropriations committees.
F. Payments
Once a grant has been awarded and executed, funds can be drawn
down. On October 6, 2004, FTA implemented its new web-based payment
system called ``ECHO-Web''. ECHO-Web is an Internet accessible system
that provides grantees the capability to submit payment requests on-
line, as well as receive user-IDs and passwords via e-mail. Each
grantee may have three people with a user profile (before, there was
only one ECHO ID). The new system has been improved with encryption and
software applications that meet current computer security standards and
regulations.
FTA's former payment system that required FTA grantees enter draw-
down requests through an outdated modem connection, has been retired.
Grantees that have not submitted the registration package necessary for
set-up under ECHO Web should contact the appropriate FTA regional
office.
G. Oversight
FTA conducts periodic oversight reviews to assess grantee
compliance with Federal requirements. Each UZA grantee is reviewed
every three years (a triennial review). States are reviewed
periodically for their management of the section 5310 and 5311
programs. Other more detailed reviews are scheduled based on an annual
grantee risk assessment.
H. Technical Assistance
FTA headquarters and regional staff will be pleased to answer your
questions and provide any technical assistance you may need to apply
for FTA program funds and manage the grants you receive. This notice
and the program guidance circulars previously identified in this
document may be accessed via the FTA Web site at http://www.fta.dot.gov.
In addition, copies of the following circulars and other useful
information are available on the FTA Web site and may be obtained from
FTA regional offices: 4220.1E, Third Party Contracting Requirements,
dated June 19, 2003; and C5010.1C, Grant Management Guidelines, dated
October 1, 1998. The FY 2005 Annual List of Certifications and
Assurances is also posted on the FTA Web site. Other documents on the
FTA Web site of particular interest to public transit providers and
others include the annual Statistical Summaries of FTA Grant Assistance
Programs and the National Transit Database Profiles. The DOT final rule
on ``Participation by Disadvantaged Business Enterprises in Department
of Transportation Financial Assistance Programs,'' which was effective
July 16, 2003, can be found on the Department's Web site at http://osdbu.dot.gov/business/DBE/49cfrpart26_final_rule.html
.
VI. Guidance and Information Specific to FTA Planning Programs
A. Census 2000 Planning and Programming Requirements Deadline
The 2000 Census made changes, among other things, to the number and
location of UZAs. These UZA designations are used by FTA to apportion
funds. Each UZA must have an MPO in place to program Federal funding
for highway and transit projects. MPOs must submit updates to their
planning area boundaries, based on the 2000 Census.
FY 2005 is a critical year to complete a number of planning and
programming items that resulted from the designation of new and revised
UZAs by the 2000 Census. Subsequent designation by the U.S. DOT of new
TMAs also requires completion of other items. These items, which must
be completed in order to receive Federal funding, include the
following:
1. New TMAs (27) were identified by the U.S. DOT on July 8, 2002.
Federal Certification of these new TMAs must be completed by July 8,
2005. Congestion Management Systems are required for these TMAs.
2. Seventy-six new UZAs were identified by the 2000 Census. Per FTA
and FHWA guidance, these new UZAs must have an existing or new MPO in
place with an adopted plan, TIP, and planning boundary maps no later
than October 1, 2005 in order to continue to receive Federal funds.
3. Some new UZAs will require air quality conformity findings.
Failure to have a plan and TIP with a conformity finding will result in
a conformity lapse.
4. Existing MPOs must update their planning area boundaries (area
expected to be urbanized in the next 20 years) based on the 2000
Census. Previously published guidance requires MPOs to update and send
the new boundaries to the FTA regional office and the FHWA Division
Office no later than the next scheduled plan update after October 1,
2002, or by October 1, 2005, whichever occurs first.
B. Local Match Waiver for Specified Planning Activities
Job Access and Reverse Commute Planning. Federal, State and local
welfare reform initiatives may require the development of new and
innovative public and other transportation services to ensure that
former welfare recipients have adequate mobility for reaching
employment opportunities. In recognition of the key role that
transportation plays in ensuring the success of welfare-to-work
initiatives, FTA and FHWA permit the waiver of the local match
requirement for JARC planning activities undertaken with both FTA and
FHWA Metropolitan Planning Program and State Planning and Research
Program funds. FTA and FHWA will support requests for waivers if they
are included in Metropolitan Unified Planning Work Programs and State
Planning and Research Programs and meet all other requirements.
C. Planning Emphasis Areas for FY 2005
The FTA and FHWA identify Planning Emphasis Areas (PEAs) annually
to promote priority themes for consideration in Statewide and
metropolitan (Unified) planning work programs proposed for FTA and FHWA
funding. The FY 2005 PEAs are proposed for consideration in the
development of unified planning work programs (UPWPs) and State
Planning and Research (SP&R) programs during FY 2005, even though the
UPWP might not be approved until early in FY 2006.
FTA and FHWA provide technical assistance and informational support
for
[[Page 78220]]
the PEAs through the Transportation Planning Capacity Building Program
(TPCB), which can be accessed at http://www.planning.dot.gov/. The TPCB
is available to respond to requests and provide opportunities for peer
exchange of innovative practices in these emphasis areas throughout the
year. Requests for information and technical support through the TPCB
can be made by accessing the Web site noted above. In addition,
training courses that address these PEAs in a variety of planning
contexts are available through the National Transit Institute (NTI) and
the National Highway Institute (NHI). Information on course offerings
is available at the TPCB Web site noted above and at the NTI and NHI
Web sites: http://www.ntionline.com/ and www.nhi.fhwa.dot.gov/default.asp.
For FY 2005, six key planning themes have been identified: (1)
Consideration of safety and security in the transportation planning
process; (2) linkage of the planning and NEPA processes; (3)
consideration of management and operations within planning processes;
(4) State DOT consultation with non-metropolitan local officials; (5)
enhancement of the technical capacity of planning processes; and 6)
coordination of human service transportation.
1. Consideration of Safety and Security in the Transportation
Planning Process. TEA-21 included safety and security as factors to
consider in the development of plans and programs, in recognition of
the importance of safety and security of transportation systems as a
national priority. TEA-21 calls for transportation projects and
strategies that ``increase the safety and security of transportation
systems.'' This entails communication and collaboration among safety
professionals, the enforcement community, and transportation planners
in order to successfully integrate safety and security into all stages
of the transportation planning process.
Information is available at http://www.tfhrc.gov/pubrds/pubrds.htm
describing the tools and strategies associated with the implementation
of safety conscious planning within Statewide and metropolitan
transportation planning processes, including resources targeted to
States and MPOs. A training course titled ``Safety Conscious Planning''
is available through NTI (see Web site above) with additional
information available from TPCB Web site and FHWA and FTA, as follows:
www.fhwa.dot.gov/planning/scp/index.htm and http://transit-safety.volpe.dot.gov/
.
2. Linking the Planning and NEPA Processes. FHWA and FTA are
developing guidance on the appropriate use of planning results during a
NEPA review. This guidance will be derived from a study of NEPA case
law that synthesizes what the Federal courts have said about the role
of MPO and statewide planning in FHWA's and FTA's NEPA decision-making.
The guidance will be posted on the Web site for the Transportation
Planning Capacity Building Program at http://www.planning.dot.gov as
soon as it is available.
A series of facilitated workshops entitled ``Linking Planning and
NEPA'' were delivered in FY 2004, with another series to be delivered
in FY 2005. These workshops are described at the NTI and NHI Web sites
noted above.
3. Consideration of Management and Operations within Planning
Processes. TEA-21 challenged FHWA and FTA to move beyond traditional
capital programs for improving the movement of people and goods--
focusing on the need to improve the way transportation systems are
managed and operated. Discussion papers on the topic are available at
http://www.plan4operations.dot.gov. In addition, an NHI training course on the
topic is scheduled to be available in the second quarter of FY 2005.
Also, ``Getting More by Working Together-Opportunities for Linking
Planning and Operations'', a reference guide for use by State DOT's,
MPO's, and Transit Operators on opportunities for linking planning and
operations, will be released in FY 2005.
4. State DOT Consultation With Non-Metropolitan Local Officials. On
January 23, 2003, FTA and FHWA issued a Final Rule on consultation,
followed by a technical correction on February 14, 2003, which can be
accessed at http://www.fta.dot.gov/library/legal/federalregister/2003/fr12303.html and http://www.fta.dot.gov/library/legal/federalregister/2003/fr21403.html.
This final rule amended the 1993 Joint FTA/FHWA
Planning regulation published in the Federal Register, Volume 58, No.
207, on October 28, 1993. By February 24, 2004, each State was required
to have a documented process(es) that implements consultation with non-
metropolitan local officials in the Statewide transportation planning
process and development of the Statewide Transportation Improvement
Program (STIP), to be separate and discrete from the State's public
involvement process. By February 24, 2006 and every five years
thereafter, States must review and solicit comments (for a minimum of
60 days) from non-metropolitan local officials and other interested
parties on the effectiveness of the existing consultation process(es)
and proposed modifications. As part of this requirement, a ``specific
request for comments shall be directed to the State association of
counties, State municipal league, regional planning agencies, or
directly to non-metropolitan local officials.'' In the meantime, FHWA
and FTA will be using the Statewide planning findings that accompany
approvals of the STIP as the primary mechanism for tracking and
monitoring State progress in implementing and later reviewing and
refining these processes.
5. Enhancing the Technical Capacity of Planning Processes. Reliable
information on current and projected usage and performance of
transportation systems is critical to the ability of planning processes
to supply credible information to decision-makers to support
preparation of plans and programs that respond to ea