[Federal Register Volume 74, Number 42 (Thursday, March 5, 2009)]
[Notices]
[Pages 9656-9691]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-4745]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration


American Recovery and Reinvestment Act of 2009 Public 
Transportation Apportionments, Allocations and Grant Program 
Information

AGENCY: Federal Transit Administration (FTA), DOT.

ACTION: Notice.

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SUMMARY: The ``American Recovery and Reinvestment Act, 2009'' (Pub. L. 
111-5; ``ARRA''), signed into law by President Barack Obama on February 
17, 2009, includes $8.4 billion for transit capital improvements. This 
notice implements the transit formula program related provisions of the 
ARRA and provides program and grant application requirements for these 
funds, to be made available through Federal Transit Administration 
(FTA) assistance programs. Additional notices will be published in the 
near future for the transit discretionary program provisions in the 
ARRA.

DATES: Complete grant applications must be submitted in TEAM by July 1, 
2009. FTA must reallocate certain unobligated funds by September 1, 
2009.

FOR FURTHER INFORMATION CONTACT: For general information about this 
notice contact Henrika Buchanan-Smith, Director, Office of Transit 
Programs, at (202) 366-2053. Please contact the appropriate FTA 
regional or metropolitan office (Appendix C) for any specific requests 
for information or technical assistance. An FTA headquarters contact 
for each major program area also is included in the discussion of that 
program in the text of the notice.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Overview of This Notice
II. The American Recovery and Reinvestment Act of 2009
    A. Overview of the ARRA
    B. Public Transportation and the American Recovery and 
Reinvestment Act of 2009
III. FTA ARRA Programs and Funding
    A. Transit Capital Assistance Program
    B. Fixed Guideway Infrastructure Investment
    C. Capital Investment Grants (New Starts and Small Starts)
IV. FTA Policy and Procedures for ARRA Grants Requirements
    A. Civil Rights
    B. Automatic Pre-Award Authority to Incur Project Costs
    C. Grant Application Procedures
    D. Reporting Requirements and Certifications Applicable to 
Recipients of ARRA Funding
    E. Oversight
    F. Technical Assistance
Tables
    1. Appropriations and Apportionments for Grant Programs
    2. Transit Capital Assistance (Urbanized)
    3. Transit Capital Assistance (Urbanized) FORMULA
    4. Transit Capital Assistance (Urbanized) Formula Data Unit 
Values
    5. Transit Capital Assistance (Nonurbanized)
    6. Fixed Guideway Infrastructure Investment Apportionments
    7. Fixed Guideway Infrastructure Investment Formula
APPENDIX A: GRANT APPLICATION

[[Page 9657]]

INSTRUCTIONS
APPENDIX B: ARRA QUESTIONS AND ANSWERS
APPENDIX C: REGIONAL AND METROPOLITAN OFFICE CONTACT INFORMATION

I. Overview

    The American Recovery and Reinvestment Act of 2009 (ARRA) provides 
new funding for, among many other categories, public transportation 
capital projects. This legislation includes three separate capital 
investment programs for public transportation. Because of the purposes 
of the legislation, it presents both opportunities and responsibilities 
for those who provide public transportation throughout the United 
States.
    This Federal Register notice does several things. First, it 
provides a summary of ARRA as it relates to public transportation 
programs. Second, the notice discusses in detail the FTA programs 
funded by the ARRA, including specific dollar amounts made available 
under ARRA for each program and program requirements for eligible 
projects. Third, the notice includes policies and requirements that 
apply to the ARRA funds, including general reporting requirements and 
specific application requirements for the different formula programs. 
Fourth, the notice includes tables that apportion funds distributed by 
formula. It does not allocate funds to New/Small Starts projects under 
the Capital Investment Grants program or make discretionary allocations 
for the transit energy program or the tribal transit program. FTA will 
issue subsequent notices addressing these programs. Finally, we include 
three appendices covering application instructions, Questions and 
Answers, and contact information for our regional and metropolitan 
offices.

II. The American Recovery and Reinvestment Act of 2009

A. Overview of the ARRA

    The American Recovery and Reinvestment Act of 2009 (ARRA) was 
signed into law by President Barack Obama on Tuesday, February 17, 
2009. The ARRA includes appropriations and tax law changes totaling 
approximately $787 billion to support multi-pronged efforts to 
stimulate the economy. Goals of the statute include the preservation or 
creation of jobs and promotion of an economic recovery, as well as the 
investment in transportation, environmental protection and other 
infrastructure providing long-term economic benefits.
    Of the $787 billion of spending and tax law changes in ARRA, over 
$48 billion will be invested in transportation infrastructure, 
facilities, and equipment. The Secretary of Transportation has received 
an appropriation of $1.5 billion for a competitive surface 
transportation grant program, including public transportation projects. 
The Federal Highway Administration (FHWA) has received $27.5 billion 
for projects eligible under their Highways and Bridges program, 
including public transportation. FHWA funds can be used to support 
public transportation projects consistent with the Flexible Funding 
procedures under the Safe, Accountable, Flexible, Efficient 
Transportation Equity Act: A Legacy for Users (SAFETEA-LU). FRA has 
received $8 billion for high speed and intercity rail grants. Finally, 
FTA has received $8.4 billion for three categories of funding: Transit 
Capital Assistance, Fixed Guideway Modernization grants, and Capital 
Investment Grants (New Starts/Small Starts). More on the transit 
programs follows.

B. Public Transportation Programs and the ARRA

1. Introduction
    The ARRA includes a total of $8.4 billion in General Fund dollars 
for public transportation, appropriated for three different programs: 
1. Transit Capital Assistance, 2. Fixed Guideway Infrastructure 
Investment, and 3. Capital Investment Grants (New/Small Starts). Tables 
1 through 8 of this notice list the ARRA transit formula funds 
apportioned in this Federal Register notice. Additionally, for each FTA 
program included in this notice, we have provided relevant information 
on the ARRA funding available, program requirements, period of 
availability, and other related program information and highlights, as 
appropriate.
    The ARRA specifies that funds are to be used only for capital 
expenditures. This means that only items defined as capital under FTA's 
current law (Title 49, U.S.C. Chapter 53) are eligible activities under 
this program. (The one exception to this is program administration 
funds provided to States under the nonurbanized area program.)
    Potential grantees are encouraged to identify projects or 
expenditures that meet the broader goals of the statute, including 
preserving or creating jobs, contributing to cleaning our environment 
through green purchases, retrofitting existing facilities, making 
additional public transportation opportunities available to more 
people, and helping ease fiscal problems at the state and local level.
    An important aspect of this legislative initiative is to get the 
money working in the economy as quickly as possible. To foster this 
imperative, ARRA contains limited time frames to obligate these funds. 
As discussed in the detailed description of each program, the inability 
to secure an approved and executed grant within the statutory time 
limits will result in fund availability being withdrawn. FTA will 
reapportion these funds to areas that have successfully executed grants 
within the statutory time frames.
2. Capital Transit Assistance Program
    The ARRA appropriates $6.9 billion for four separate grant programs 
in this category of funding. This notice covers only the funds 
apportioned by formula in two categories of funding: the urbanized area 
formula program and the non-urban formula program. (The tribal transit 
program and the energy savings program will be addressed in a separate 
notice.)
    Specifically, this document apportions funds made available to 
potential program recipients based on the statutory formulas in 49 
U.S.C. sections 5307, 5311 for the following formula programs: Transit 
Capital Assistance (urbanized areas) and Transit Capital Assistance 
(nonurbanized areas) allocated to States.
    This Federal Register notice does not contain application 
requirements for two discretionary programs authorized in this capital 
transit program of the ARRA: a $17 million discretionary capital 
program for Indian Tribes and a $100 million discretionary capital 
program for energy saving measures by transit agencies. FTA anticipates 
issuing notices of Funding Availability for these two programs within 
the next two weeks.
3. Fixed Guideway Infrastructure Investment Program
    The ARRA provides $750 million for FTA's Fixed Guideway 
Infrastructure Investment program to modernize or improve existing 
fixed guideway systems, which could include the purchase or 
rehabilitation of rolling stock, track, equipment, or facilities. 
Maintaining the nation's rail transit system is a core responsibility 
of transit agencies across the country. The Department's biennial 
Conditions and Performance Report gauges asset conditions and the level 
of investment needed to eliminate the backlog of repairs or necessary 
replacements. Current published reports indicate that existing pending 
needs exceed $25 billion.

[[Page 9658]]

4. Capital Investment Grants
    The ARRA makes $750 million available for FTA's New and Small 
Starts programs. Additional financial support for these programs will 
generate over 20,000 jobs, will increase public transportation 
infrastructure, and will expedite the availability of additional 
transportation options. In addition, investing in these major capital 
investments offers communities significant opportunities to develop 
sound approaches for achieving their transportation, environmental, and 
community objectives. A separate Federal Register notice on the ARRA 
Capital Investment Grants program allocations will be published 
shortly.
5. Administration and Oversight of ARRA funds
    ARRA authorizes FTA to use an amount from each of the program 
funding categories for administration and oversight of these programs. 
The ARRA provides oversight and administrative takedowns at the 
following levels: 0.75 percent of Transit Capital Assistance funds for 
Urbanized Area Formula funds and Growing States and High Density 
Allocations, 0.5 percent of Transit Capital Assistance funds for 
Nonurbanized Area Formula funds, one percent of Fixed-Guideway 
Infrastructure Investment funds, and one percent of Capital Investment 
Grants funds. These dollar amounts are identified in the funding tables 
contained in the description for each program.

III. ARRA FTA PROGRAMS: Funding and Eligibility Information

A. Transit Capital Assistance Program in this Notice

    The Transit Capital Assistance Program authorizes $6.9 billion in 
funding for capital expenses as defined by 49 U.S.C. section 
5302(a)(1). Transit Capital Assistance program funds are apportioned by 
formula to Urbanized Areas (UZAs) with populations at least 200,000 and 
to the State for Nonurbanized areas and UZAs with populations below 
200,000. The Transit Capital Assistance Program funds are apportioned 
based on the following percentages that have been established in the 
ARRA: 80 percent of the funds are apportioned for grants under 49 
U.S.C. section 5307 (Urbanized Area Formula program); 10 percent of the 
funds are apportioned in accord with 49 U.S.C. section 5340 for areas 
that are growing States or high density States (these funds are then 
added to the amounts made available under the Urbanized Area and 
Nonurbanized Area Formula Program); and the remaining 10 percent of the 
funds are apportioned for grants under 49 U.S.C. section 5311 
(Nonurbanized Area Formula Program). Of the 10 percent apportioned to 
nonurbanized areas, 2.5 percent has been set-aside for discretionary 
allocation through FTA's Tribal Transit Program. Additionally, 
$100,000,000 of the Transit Capital Assistance program funds will be 
dedicated for discretionary energy-related investments. Neither the 
tribal transit nor energy savings discretionary programs are addressed 
in this Federal Register notice. The ARRA excludes from the formula 
apportionment the SAFETEA-LU computation for small transit intensive 
cities.
    For more information about the Transit Capital Assistance Program 
(Urbanized Areas) contact Henrika Buchanan-Smith, Director, Office of 
Transit Programs, at (202) 366-2053. For information about the Transit 
Capital Assistance Program (Nonurbanized areas) contact Lorna Wilson, 
at (202) 366-2053.
1. Funding Levels
    The ARRA provides $5,440,000,000 to the Transit Capital Assistance 
Program for UZAs. After the 0.75 percent deduction for administrative 
expenses and program management oversight and the addition of the 
urbanized area portion of the Section 5340 Growing States and High 
Density States funds, a total amount of $5,967,852,039 is available to 
be allocated to UZAs under the Transit Capital Assistance Program.
    The ARRA provides $680,000,000 of the $6.9 billion available under 
the Transit Capital Assistance Program, to nonurbanized areas based on 
49 U.S.C. section 5311. After the 2.5 percent set-aside for tribal 
transit, the 0.5 percent deduction for program management oversight and 
administrative expenses, and the addition of the nonurbanized area 
portion of Section 5340 Growing States and High Density States funds, a 
total amount of $765,847,961 is available to be apportioned in this 
notice to States to fund projects in nonurbanized areas under the 
Transit Capital Assistance Program.
    The remainder of the $6.9 billion appropriated to the Transit 
Capital Assistance program will be allocated through competitive 
discretionary processes which includes $17,000,000 through the Tribal 
Transit program, and $100,000,000 allocated to energy-related 
investments. A breakdown of formula funds appropriated under the 
Transit Capital Assistance Program is shown in the table below.

                       Transit Capital Assistance
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.................................      $6,900,000,000
Energy Investment...................................        -100,000,000
Total Appropriation Remaining.......................       6,800,000,000
Appropriation--urbanized Areas......................       5,440,000,000
Admin/Oversight Deduction...........................         -40,800,000
Section 5340 Funds Added............................      \1\586,652,039
                                                     -------------------
    Total Apportioned--urbanized....................       5,967,852,039
------------------------------------------------------------------------
    Appropriation-nonurbanized......................         680,000,000
------------------------------------------------------------------------
Oversight Deduction.................................          -3,400,000
Tribal Program......................................         -17,000,000
Section 5340 Funds Added............................      \1\106,247,961
                                                     -------------------
    Total Apportioned-nonurbanized..................        765,847,961
------------------------------------------------------------------------
\1\ Note: This is the amount allocated to the program after the 0.75
  percent deduction for oversight from section 5340 fund, which totaled
  $5,100,000.


[[Page 9659]]

2. Basis for Formula Apportionment
    Of the $6.9 billion available, $5.44 billion is apportioned to UZAs 
based on 49 U.S.C. section 5336. Different formulas apply to UZAs with 
populations of 200,000 or more and to UZAs with populations less than 
200,000. For UZAs with 50,000 to 199,999 in population, the formula is 
based solely 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. Table 2 displays the amounts 
apportioned under the Urbanized Area Formula Program, and detailed 
information about the urbanized area formula can be found in Table 3 
and Table 4.
    The nonurbanized area funds are apportioned based upon the 
nonurbanized population of each state relative to the national 
urbanized area and land area in nonurbanized areas. Table 5 displays 
the Transit Capital Assistance Program apportionments for nonurbanized 
areas.
3. Eligible Applicants
    Eligible applicants for funds apportioned to UZAs are limited to 
designated recipients in accordance with 49 U.S.C. section 5307(a)(2) 
and other direct FTA grant recipients with the consent of the 
Designated Recipient. For nonurbanized area funds, the State is the 
only eligible applicant with the exception of the nonurbanized area 
funds that will be allocated to tribal recipients at a later date.
4. Program Requirements
    Program guidance for the Urbanized Area Formula Program is found in 
FTA Circular 9030.1C, Urbanized Area Formula Program: Grant Application 
Instructions (October 1, 1998), supplemented by additional information 
or changes provided in this document. Additionally, program guidance on 
the Nonurbanized Area Formula program can be found in FTA Circular 
9040.1F, Nonurbanized Area Formula Program Guidance and Application 
Instructions (April 4, 2007). Several important program requirements 
are highlighted below. Appendix B to this notice contains frequently 
asked questions and answers about the ARRA program.
a. Eligibility
    Transit Capital Assistance funds may be used to fund eligible 
capital projects. In accordance with 49 U.S.C. section 5302(a)(1), 
eligible capital projects include: preventive maintenance; acquiring, 
constructing, supervising, or inspecting equipment or a facility for 
use in public transportation (including engineering, designing, 
location surveying, mapping, and acquiring right-of-way); transit-
related ITS; rehabilitating buses; remanufacturing a bus; overhauling 
rail rolling stock; leasing a facility or equipment for use in public 
transportation where more cost-effective than purchase or construction; 
public transportation improvement that enhances economic development or 
incorporates private investment, including commercial and residential 
development, pedestrian and bicycle access to public transportation 
facilities, construction or renovation of intercity rail stations and 
terminals, renovation and improvements of historic transportation 
facilities, where the improvement enhances the effectiveness of a 
public transportation project and is physically or functionally related 
to that public transportation project, or creates a new or enhanced 
coordination between public transportation and other transportation and 
provides a fair share of revenue to be used in public transportation; 
ADA complementary paratransit in amounts not to exceed 10 percent of 
the recipient's formula apportionment; specified crime prevention and 
security expenses; establishing a debt service reserve; and mobility 
management.
b. Local Match
    Under the ARRA, the Federal share of a Transit Capital Assistance 
grant is up to 100 percent of the net project cost of capital projects 
and state administrative expenses of the Transit Capital Assistance 
(nonurbanized) Formula program funds. Under the ARRA, operating funds 
are not eligible.
5. Period of Availability
    The Transit Capital Assistance Program funds apportioned in this 
notice remain available to be obligated by FTA to recipients for a 
limited period of time. At least 50 percent of Transit Capital 
Assistance Formula funds apportioned in this notice must be obligated 
in a grant no later than September 1, 2009. On this date, FTA will 
withdraw any portion of the 50 percent that each State or urbanized 
area has not obligated and will subsequently redistribute to other 
States and UZAs that successfully obligated at least 50 percent of the 
funds apportioned to them and did not have any funds withdrawn. All 
remaining Transit Capital Assistance program funds must be obligated in 
a grant no later than March 5, 2010. Transit Capital Assistance Funds 
that remain unobligated at the close of business on March 5, 2010 will 
revert to FTA for redistribution to areas that have not had any funds 
withdrawn and that can promptly use the funding. Any Transit Capital 
Assistance program funds that remain unobligated at the close of 
business on September 30, 2010, will revert to the U.S. Treasury. A 
complete list of dates and deadlines will be posted on FTA's Web site 
following publication of this Federal Register notice.

B. Fixed Guideway Infrastructure Investment

    The Fixed Guideway Infrastructure Investment program provides 
capital assistance for the modernization of existing fixed guideway 
systems as authorized under 49 U.S.C. section 5309(b)(2). 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 transit, 
ferryboats, that portion of motor bus service operated on exclusive or 
controlled rights-of-way, and high-occupancy-vehicle (HOV) lanes. 
Eligible applicants are the public transit authorities in those UZAs to 
which the funds are allocated. For more information about Fixed 
Guideway Infrastructure Investment contact Henrika Buchanan-Smith, 
Director, Office of Transit Programs, at (202) 366-2053.
1. FY 2009 ARRA Funding
    The ARRA provides $750,000,000 for the Fixed Guideway 
Infrastructure Investment Program. The total amount apportioned for the 
Fixed Guideway Infrastructure Investment Program is $742,500,000, after 
the one percent deduction for program administration and oversight, as 
shown in the table below.

            Fixed Guideway Infrastructure Investment Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation....................................     $750,000,000
Admin/Oversight Deduction..............................       -7,500,000
                                                        ----------------
    Total Apportioned..................................      742,500,000
------------------------------------------------------------------------

The FY 2009 ARRA Fixed Guideway Infrastructure Investment Program 
apportionments to eligible areas are

[[Page 9660]]

displayed in Table 6. Detailed information regarding the Fixed Guideway 
formula is detailed in Table 7.
2. Basis for Formula Apportionment
    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 National Transit 
Database (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. Section 5337(f) of title 49, U.S.C. 
provides for the inclusion of Morgantown, West Virginia (population 
55,997) as an eligible UZA for purposes of apportioning fixed guideway 
modernization funds. This notice allocates funds on a one time basis 
consistent with the 49 U.S.C. section 5337 formula for the Fixed 
Guideway Modernization program. For the ARRA funds, FTA was able to 
meet the apportionment formulas for the first three tiers of funding. 
Because there were not enough funds to fully fund the fourth tier of 
the formula, the table reflects a pro rata amount to eligible 
recipients within the Tier Four Category. Tiers Five through Seven were 
not used for the ARRA apportionments, since the amount available did 
not reach those tiers.
 3. Program Requirements
    Fixed Guideway Infrastructure Investment funds must be used for 
capital projects to maintain, modernize, or improve fixed guideway 
systems. Eligible UZAs (those with a population of 200,000 or more) 
with fixed guideway systems that are at least seven years old are 
entitled to receive Fixed Guideway Infrastructure Investment funds. A 
threshold level of more than one mile of fixed guideway is required in 
order to receive Fixed Guideway Infrastructure Investment funds. 
Therefore, UZAs reporting one mile or less of fixed guideway mileage 
under the NTD are not included. However, funds apportioned to an 
urbanized area may be used on any fixed guideway segment in the UZAs. 
The program will be implemented under the Fixed Guideway Modernization 
Program guidance. Program guidance for Fixed Guideway Modernization is 
presently found in FTA Circular C9300.1B, Capital Program: Grant 
Application Instructions (November 1, 2008).
4. Period of Availability
    For the fixed Guideway Infrastructure Investment Program in ARRA, 
at least 50 percent of funds must be obligated in a grant on or before 
September 1, 2009. At that time, FTA will withdraw any portion of the 
50 percent that has not been obligated in a grant agreement. These 
funds will be redistributed to eligible UZAs that have not had any 
Fixed Guideway Infrastructure funds withdrawn. Furthermore, on March 5, 
2010 FTA will withdraw any remaining unobligated funds from each UZAs 
and again redistribute such funds to UZAs that have not had any funds 
withdrawn and can promptly spend the funds. Any Fixed Guideway 
Infrastructure program funds that remain unobligated after September 
30, 2010, will revert back to the U.S. Treasury.

C. Capital Investment Program--New Starts and Small Starts

    The Capital Investment Grant program authorizes the Secretary of 
Transportation to make discretionary grants as authorized under 49 
U.S.C. section 5309(d)-(e). The program will be implemented consistent 
with the requirements of the New Starts and Small Starts programs, 
which provide funds for construction of major capital investments in 
new fixed guideway systems, extensions to existing fixed guideway 
systems, or, in the case of Small Starts, corridor-based bus projects. 
This notice does not include an allocation of Capital Investment 
Program resources. FTA will issue a subsequent notice that announces 
project selections and additional guidance. For more information about 
New Starts project development contact Elizabeth Day, Office of 
Planning and Environment, at (202) 366-4033.

IV. FTA Policy Guidance and Procedures for ARRA Grants

A. Civil Rights

    Existing regulations and guidance pertaining to the Americans With 
Disabilities Act (ADA), Equal Employment Opportunity (EEO), Title VI, 
and Disadvantaged Business Enterprise (DBE) programs apply to ARRA 
funds apportioned in this Federal Register notice.
    Concerning DBE in particular, FTA does not expect grantees will 
need to amend FY 2009 overall goals. However, there are some key 
situations to consider. First, it may be that receipt of ARRA funds 
will bring a grantee above the $250,000 threshold amount, which 
triggers the requirement to comply with the DBE program, including goal 
setting. In this case the grantee will need to submit a DBE goal (in 
such a case, it may submit a single goal for the remainder of FY 2009 
and entirety of FY 2010). Second, a grantee's receipt of additional 
ARRA funds could render the FY 2009 goal obsolete. This could occur if 
the additional funds create vastly different contracting opportunities, 
for example. In this case, the grantee may: (a) Submit a project goal 
to be approved by FTA's Administrator (project goals are appropriate 
only if there is a specific large, multi-year, and/or design-build 
project. Additional funding alone would not trigger the need for a 
project based goal); (b) amend the FY 2009 goal (with FTA approval per 
normal procedures under the DBE regulations); (c) submit a new goal for 
the remainder of FY 2009 and entirety of FY 2010 that accounts for 
contracting opportunities derived from ARRA financed projects; or (d) 
do not amend the 2009 goal, but include the ARRA project in your FY 
2010 goal, if the ARRA-funded project will be primarily executed during 
FY 2010. Further Departmental guidance on the Disadvantaged Business 
Utilization program can be found at http://osdbu.dot.gov/DBEProgram/
dbeqna.cfm#economic_recovery.
    Grantees should consult closely with their Regional Civil Rights 
Officer to determine which approach best applies to their specific 
situations. In the interim, grantees must immediately begin considering 
DBE and non-DBE availability and capacity as they relate to anticipated 
or potential projects funded by the ARRA, and discuss strategies for 
DBE utilization with the relevant contracting industries and DBE 
communities.

B. Automatic Pre-Award Authority To Incur Project Costs

1. General Policy
    FTA provides pre-award authority to incur expenses before grant 
award for certain program areas. ARRA program funds will have pre-award 
authority consistent with the FTA programs under which the ARRA funds 
are allocated or apportioned. ARRA program funds that are distributed 
by formula will have blanket pre-award authority beginning October 1, 
2008; ARRA discretionary tribal transit and energy programs funds will 
have pre-award authority once program funds are allocated to the 
project in a Federal Register notice; Capital Investment Grants Program 
allocations are subject to the New and Small Starts pre-award policy, 
discussed in detail in section B5 below.

[[Page 9661]]

2. Caution to New Grantees
    While FTA provides pre-award authority to incur expenses before 
grant award for many projects, first-time grant recipients are 
discouraged from using this automatic pre-award authority and 
encouraged to wait until the grant is actually awarded by FTA before 
incurring costs. 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 and, in certain cases, the 
entire project may be rendered ineligible for FTA assistance.
3. Policy Details
    Pre-award authority allows grantees to incur certain project costs 
before grant approval and retain the eligibility of those costs for 
subsequent reimbursement after grant approval. The grantee assumes all 
risk and is responsible for ensuring that all conditions are met to 
retain eligibility. For the ARRA program, this pre-award spending 
authority permits a grantee to incur costs on an eligible transit 
capital project without prejudice to possible future Federal 
participation in the cost of the project. All pre-award authority is 
subject to conditions and triggers stated below:
    a. Grantees may be reimbursed for expenses incurred before grant 
award, so long as funds have been expended in accordance with all 
Federal requirements. In addition to cross-cutting Federal grant 
requirements, program specific requirements must be met. For example: 
expenditure on State Administration expenses under State Administered 
programs must be consistent with the State Management Plan.
    b. Preaward authority (beginning October 1, 2008 for the ARRA 
formula funds or allocation of discretionary funds in a Federal 
Register notice) for capital project implementation activities 
including property acquisition, demolition, construction, and 
acquisition of vehicles, equipment, or construction materials is 
triggered by completion of the environmental review process, signified 
by FTA's finding that the project is a categorical exclusion (CE) or 
FTA's signing of an environmental Record of Decision (ROD) or Finding 
of No Significant Impact (FONSI). Before exercising pre-award 
authority, grantees must comply with the conditions and Federal 
requirements outlined in paragraph 4 below. Failure to do so will 
render an otherwise eligible project ineligible for FTA financial 
assistance.
    c. Blanket pre-award authority applies to formula funds apportioned 
under the Transit Capital Assistance Program and the Fixed Guideway 
Infrastructure Investment Program from October 1, 2008, until September 
30, 2010. Blanket pre-award does not apply to Section 5309 Capital 
Investment Grant funds, Energy savings or Tribal Transit Program funds. 
Specific instances of pre-award authority for ARRA Capital Investment 
Grants--New and Small Starts projects are described in paragraph 5 
below.
4. 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 subject project 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.
    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 after the date of the pre-
award authority will be eligible for credit toward local match (if 
applicable for ARRA) or reimbursement if FTA later makes a grant or 
grant amendment for the project. Local funds expended by the grantee 
before the date of the pre-award authority will not be eligible for 
credit toward local match or reimbursement. Furthermore, the 
expenditure of local funds on activities such as land acquisition, 
demolition, or construction before the date of pre-award authority for 
those activities (i.e., the completion of the NEPA process) would 
compromise FTA's ability to comply with Federal environmental laws and 
may render the project ineligible for FTA funding.
    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 funds. Grantees should be 
mindful that a portion of ARRA funds begin to lapse to the UZAs and 
States on September 1, 2009. Please see the applicable program 
information in Section III above for program specific lapse dates.
    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.
    h. All Federal environmental, planning and other grant requirements 
must be met at the appropriate time for the project to remain eligible 
for Federal funding. The growth of the Federal transit program has 
resulted in a growing number of grantees that are inexperienced in 
compliance with Federal planning and environmental laws. FTA has 
therefore modified its approach to pre-award authority to use the 
completion of the NEPA process, which has as a prerequisite the 
completion of planning and air quality requirements, as the trigger for 
pre-award authority for all activities except design and environmental 
review.
    i. The requirement that a project be included in a locally adopted 
metropolitan transportation plan, the 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. If the project is 
located within an EPA-designated non-attainment area or maintenance 
area for a national air quality standard, the transportation conformity 
regulations under the Clean Air Act, 40 CFR Part 93, must also be met 
before the project may be advanced into implementation-related 
activities under pre-award authority. Compliance with 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 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 issued a Categorical Exclusion, Finding of No Significant Impact, 
or Record of Decision consistent with FTA/FHWA environmental 
regulations at 23 CFR Part 771.

[[Page 9662]]

    j. In addition, Federal procurement procedures, as well as the 
whole range of applicable Federal requirements (e.g., Davis-Bacon Act, 
Disadvantaged Business Enterprise, and Buy America) 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.
5. Special Requirements for Pre-Award Authority for ARRA Capital 
Investment Grants (New and Small Starts)
    a. Preliminary Engineering (PE) and Final Design (FD) and Small 
Starts Project Development (PD). Projects proposed for Section 5309 
Capital Investment funds are required to follow a federally defined New 
Starts project development process. This process includes, among other 
things, FTA approval of the entry of New Starts projects into PE and 
into FD and approvals regarding Small Starts projects. In accordance 
with Section 5309(d) and (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 of a New Starts 
project into PE or FD or a Small Starts project into PD. Upon FTA 
approval of a New Starts project to enter PE, FTA extends pre-award 
authority to incur costs for PE activities. Upon FTA approval of a New 
Starts project to enter FD, FTA extends pre-award authority to incur 
costs for FD activities. Upon FTA approval of a Small Starts project to 
enter PD, FTA extends pre-award authority to incur costs for 
preliminary engineering activities. Once FTA has completed its 
environmental determination on the Small Starts project, FTA extends 
pre-award authority to incur costs for final design activities, right-
of-way acquisition, and utility relocation. 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 FTA's 
New Starts regulation at 49 CFR part 611 and further information on 
these project development milestones is available at http://
www.fta.dot.gov/index_5221.html.
    b. Real Property Acquisition Activities. FTA extends automatic pre-
award authority for the acquisition of real property and real property 
rights for a New or Small Starts project upon completion of the NEPA 
process for that project. As noted above, the NEPA process is completed 
when FTA issues a CE, FONSI, or ROD. With the limitations and caveats 
described below, real estate acquisition for a New or Small 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.
    Pre-award authority for property acquisition is also provided when 
FTA makes a CE determination for a protective buy or hardship 
acquisition in accordance with 23 CFR 771.117(d)(12), and when FTA 
makes a CE determination for the acquisition of a pre-existing railroad 
right-of-way in accordance with 49 U.S.C. section 5324(c). When a 
tiered environmental review in accordance with 23 CFR 771.111(g) is 
being used, pre-award authority is NOT provided upon completion of the 
first-tier environmental document except when the Tier-1 ROD or FONSI 
signed by FTA explicitly provides such pre-award authority for a 
particular identified acquisition.
    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. 
FTA provides pre-award authority upon completion of the NEPA process to 
maximize the time available to project sponsors to move people out of 
their homes and places of business, in accordance with the requirements 
of the Uniform Relocation Act, but also with maximum sensitivity to the 
plight of the people so affected. Although FTA provides pre-award 
authority for property acquisition upon completion of the NEPA process, 
FTA will not make a grant to reimburse the sponsor for real estate 
activities conducted under pre-award authority until a New Starts 
project has been approved into FD. Even if funds have been appropriated 
for the project, the timing of an actual grant for property acquisition 
and related activities must await FD approval to ensure that Federal 
funds are not risked on a project whose advancement beyond PE is still 
not yet assured.
    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.
    Under FTA's environmental impact procedures at 23 CFR part 771, 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)). Accordingly, FTA extends pre-award 
authority for costs incurred to comply with NEPA regulations and to 
conduct NEPA-related activities for a proposed New Starts or Small 
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

[[Page 9663]]

incurred to conduct the NEPA process, and to prepare environmental, 
historic preservation and related documents. It does not cover PE 
activities beyond those necessary for NEPA compliance.
    d. Other New or Small 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 or Small 
Starts funds not yet awarded. 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 C 
below.

C. Grant Application Procedures

    Grantees will be able to receive ARRA grant funds through the TEAM-
Web system beginning March 9, 2009. The following grant procedures 
apply to ARRA program funds; however, more detailed grant application 
instructions including standard grant language can be found in Appendix 
A of this document.
    1. Eligible recipients for project funds under the ARRA are direct 
and designated recipients in UZAs, States, and Tribal Transit 
providers.
    2. An application for ARRA should be submitted electronically to 
the appropriate FTA regional office through TEAM-Web.
    3. Grantees may not commingle ARRA funds into a grant application 
that contains FTA funding authorized under SAFETEA-LU or any prior 
authorization. Furthermore, grantees cannot apply for funding allocated 
under separate ARRA programs in a single grant. Example: If City ``A'' 
receives Transit Capital Assistance program funds under ARRA and 
funding for Fixed Guideway Infrastructure Investment Funds under ARRA, 
City ``A'' must apply to receive the Fixed Guideway Infrastructure 
Investment funds in one grant and develop a separate grant containing 
projects to be funded using the Transit Capital Assistance funds. 
Moreover, neither type of ARRA grant may include any FTA funding under 
49 U.S.C. Chapter 53.
    4. FTA will process ARRA grants promptly upon receipt of a 
completed application. Because ARRA grants must be processed in a 
timely manner to assure that project funds begin to flow into the 
economy as quickly as possible, FTA will consider an ARRA grant 
application complete if: (a) The TEAM grant application template has 
been completed; (b) the budget is firm; (c) the project details contain 
adequate information for determining eligibility; and (d) projects 
requiring a Finding of No Significant Impact (FONSI) or Record of 
Decision (ROD) have submitted the environmental documentation for 
review. After these prerequisites are met, FTA will assign a grant 
number, enabling official submittal of the grant for further 
processing. Once a grant number is assigned, FTA will immediately send 
the grant for Department of Labor (DOL) certification.
    FTA is modifying its established grant development procedures to 
speed delivery of ARRA grants. Although FTA is allowing grants to be 
submitted at an earlier stage in development, the following 
requirements must still be met before grant award:
    a. The project is listed in a currently FTA approved Metropolitan 
Transportation Plan, Metropolitan Transportation Improvement Program 
(TIP); and federally approved Statewide Transportation Improvement 
Program (STIP).
    b. The grantee's required Civil Rights submissions are current.
    c. The FY 2009 certifications and assurances are properly 
submitted.
    d. The required environmental findings have been made.
    e. The milestone information is complete. The grant must include 
sufficient milestones appropriate to the scale of the project to allow 
adequate oversight to monitor the progress of projects from the start 
through completion and closeout.

    Note: It is critical that grantees receiving ARRA grant funds 
update activity milestones and the financial status report on a 
quarterly basis.

    f. The grant has been certified by DOL.
    g. Necessary certifications are complete.
    5. As stated above, grants containing ARRA funds must be submitted 
to DOL for certification of the labor protective arrangements before 
FTA can award the grant. To streamline the process, DOL intends to 
certify ARRA program grants in accordance with its procedures for 
certifying the current FTA program whose requirements are applicable. 
Accordingly, ARRA programs that follow the requirements of 49 U.S.C. 
section 5307 or 49 U.S.C. section 5309 will be referred out to the 
unions if the grant contains new project activities. Grants for like-
kind equipment or replacements will not be referred out to the unions 
before certification. ARRA programs that follow the requirements of 49 
U.S.C. section 5311 will be certified based on the special warranty 
provision including grants to Indian tribes. Additional information 
regarding grants that require referral can be found on DOL's Web site 
https://www.dol.gov/esa/olms/regs/compliance/redesign_2006/
redesign2006_transitemplprotect.htm.
    Consistent with DOL's guidelines, grants subject to a referral may 
require up to 60 days to complete. (29 CFR 215.3). Accordingly, the 
obligation deadlines associated with most ARRA program funds make it 
essential that grantees expecting to utilize the ARRA funding submit 
grants that require union referral to FTA for processing in a timely 
manner. FTA will consider a submittal timely if a complete ARRA formula 
grant is received on or before July 1, 2009.
    6. Before executing an ARRA grant, the executing official must 
inform FTA via the TEAM system of the (1) purpose of the investment, 
and (2) the rationale for the investment. Grantees must select one or 
more of the following purposes in TEAM before the grant can be 
executed:
    a. To preserve and create jobs and promote economic recovery.
    b. To assist those affected negatively by the recession.
    c. To provide investments needed to increase economic efficiency by 
spurring technological advances.
    d. To invest in transportation infrastructure that will provide 
long-term economic benefits.
    e. To stabilize State and local government budgets, in order to 
minimize reductions in essential services and counterproductive State 
and local tax increases.
    In addition, grantees must also select one or more of the following 
rationales:
    a. Project is ready to go (all applicable federal requirements are 
complete).
    b. Use of Recovery funds for this project frees up other FTA/State/
local resources for other purposes.
    c. Project is high local/regional priority.
    d. Project could not have been implemented without supplemental 
funding.
    e. Funding accelerates completion and decreases over-all project 
costs.
    f. Project provides equipment or facilities to increase transit 
ridership.
    g. Project is a needed investment to bring assets to a state of 
good repair.
    h. Project addresses immediate maintenance needs.
    7. Other important issues that affect FTA grant processing 
activities are discussed below.
    a. DBE Goal--Existing DOT and FTA regulations and guidance 
pertaining to the ADA, EEO, Title VI, and DBE

[[Page 9664]]

programs will apply to the ARRA funds. Concerning the DBE program (49 
CFR part 26) the U.S. DOT has issued ARRA DBE Questions & Answers at 
http://osdbu.dot.gov/DBEProgram/dbeqna.cfm#economic_recovery. This 
Q&A should address some of the unique issues and opportunities raised 
by the new spending, express DOT's expectations, and delineate 
grantees' continued obligations and options as they prepare for and 
execute their potential grants.
    b. Special Conditions of Grant Award--In the interest of time, FTA 
is not issuing a separate grant contract for ARRA funds. However, 
because different requirements flow with the ARRA funds, these 
additional requirements will be added by FTA regional staff as 
conditions of grant approval in each TEAM application. Recipients 
applying for grants that contain ARRA funds must agree to the following 
grant conditions that will be included in the grant application.
    1. Recipient of ARRA funds agrees to comply with reporting 
requirements and deadlines set out in section 1201(c) of Public Law 
111-5.
    2. Recipient of ARRA funds agrees to comply with reporting 
requirements and deadlines set out in section 1512 of Public Law 111-5.
    3. Recipient of ARRA funds agrees that all data submitted to FTA in 
compliance with the requirements of Public Law 111-5 is accurate, 
objective, and of the highest integrity.
    4. Recipient of ARRA funds acknowledges that receipt of ARRA funds 
is a ``one-time'' disbursement that does not create any future 
obligation by the FTA to advance similar funding amounts.
    5. Recipient of ARRA funds agrees that it or its sub-recipients 
will report any credible evidence that a principal, employee, agent, 
contractor, sub-recipient, subcontractor, or other person has submitted 
a false claim under the False Claims Act or has committed a criminal or 
civil violation of law pertaining to fraud, conflict of interest, 
bribery, gratuity, or similar misconduct involving ARRA funds.
    c. Buy America--The Buy America requirements under 49 U.S.C. 
section 5323(j) that typically apply to projects accepting Federal 
assistance under the Federal Transit program authorized under Chapter 
53 of title 49, United States Code, apply to all capital public 
transportation projects funded with amounts appropriated in the ARRA. 
Therefore, an applicant, in carrying out a procurement financed with 
Federal assistance authorized under the ARRA must comply with 
applicable Buy America requirements in 49 U.S.C. section 5323(j) and 49 
CFR part 661.

D. Reporting Requirements and Certifications Applicable to Recipients 
of ARRA Funds

    As a condition of award, grantees receiving ARRA funds will be 
required to report on grant activities on a routine basis. FTA grantees 
will be responsible for reporting up-to-date and accurate information 
in the milestone status report and financial status report on a 
quarterly basis, as well as additional data elements that are required 
to be reported in www.recovery.gov. Additionally, special 
certifications and grant conditions also will be required of ARRA grant 
recipients. FTA will issue additional specific guidance on reporting 
requirements in the near future for your information. The ARRA 
statutory reporting requirements and certifications are identified 
below:
1. Section 1511: Certifications
    For covered funds made available to State or local governments for 
infrastructure investments, the Governor, mayor, or other chief 
executive, as appropriate, is required to certify that the 
infrastructure investment has received the full review and vetting 
required by law and that the chief executive accepts responsibility 
that the infrastructure investment is an appropriate use of taxpayer 
dollars. Such certification must include a description of the 
investment, the estimated total cost, and the amount of covered funds 
to be used, and must be posted on a specified Web site. A State or 
local agency may not receive infrastructure investment funding from 
funds made available under ARRA unless this certification is made and 
posted.
    On February 27, 2009, USDOT Secretary LaHood sent a letter to the 
Governors providing guidance and a template for this certification and 
instructing them to send the Section 1511 certification and the other 
two certifications by the Governor described below to the Department at 
the following address: TigerTeam@dot.gov. A single certification by the 
Governor, based on the established planning process, and including a 
link to a Web site posting of the Statewide Transportation Improvement 
Program, which must contain the required section 1511 information for 
each investment, will satisfy the requirement for certification by the 
Governor for both FHWA and FTA projects. FTA will provide further 
guidance in the near future about any additional certifications that 
may be required by local officials to ensure that all ARRA projects 
have been properly vetted.
2. Section 1512: Reports on Use of Funds
    Recipient Reports.--Not later than 10 days after the end of each 
calendar quarter, each recipient that received recovery funds from a 
Federal agency shall submit a report to that agency that contains--
    (i) The total amount of recovery funds received from that agency;
    (ii) the amount of recovery funds received that were expended or 
obligated to projects or activities; and
    (iii) a detailed list of all projects or activities for which 
recovery funds were expended or obligated, including--
    (A) The name of the project or activity;
    (B) a description of the project or activity;
    (C) an evaluation of the completion status of the project or 
activity;
    (D) an estimate of the number of jobs created and the number of 
jobs retained by the project or activity; and
    (E) for infrastructure investments made by State and local 
governments, the purpose, total cost, and rationale of the agency for 
funding the infrastructure investment with funds made available under 
ARRA, and name of the person to contact at the agency if there are 
concerns with the infrastructure investment.
    (iv) detailed information on any subcontracts or subgrants awarded 
by the recipient to include the data elements required to comply with 
the Federal Funding Accountability and Transparency Act of 2006 (Pub. 
L. 109-282), allowing aggregate reporting on awards below $25,000 or to 
individuals, as prescribed by the Director of the Office of Management 
and Budget.
    The data elements required to comply with Public Law 109-282 are: 
name of entity receiving the award; the amount of the award; 
information on the award including transaction type, funding agency, 
the North American Industry Classification System Code or Catalog of 
Federal Domestic Assistance number (where applicable); program source; 
and an award title descriptive of the purpose of each funding action.
    FTA will extract as much as possible of this information from grant 
information and standard reports provided through the TEAM electronic 
grants award and management system. Supplemental reporting may be 
required, however, to provide the project and contract level 
information. FTA will provide further reporting instructions at a later 
date. FTA is working with other modal

[[Page 9665]]

administrations within the Department of Transportation (DOT) to 
standardize the information required from all DOT recipients. 
Additional frequency of reporting may be required to be responsive to 
Congressional oversight requirements.
3. Section 1512(h) Registration
    Recipients of ARRA funds that are required to report information 
per subsection (c)(4) must register with Central Contractor 
Registration database (CCR) or complete other registration requirements 
as determined by the Director of the Office of Management and Budget 
(OMB).
    The reporting and registration requirements are effective 180 days 
after enactment of ARRA. OMB has not yet determined whether to use the 
CCR or some other registration database. However, OMB has issued 
guidance requiring FTA and other Federal agencies to ensure that 
grantees and first tier subawardees (subrecipients and contractors) 
obtain a DUNS number, or update their DUNS record if necessary. OMB has 
not yet issued a final determination on the extent to which subawardees 
will be required to register in CCR.
4. Section 1201(a) Maintenance of Effort
    Not later than March 19, 2009 for each amount that is distributed 
to a State or its agency from an appropriation in ARRA for a covered 
program, the Governor of that State is required to certify to the 
Secretary of Transportation that the State will maintain its effort 
with regard to State funding for the types of projects that are funded 
by the appropriation. As part of this certification, the Governor is 
required to submit to the Secretary of Transportation a statement 
identifying the amount of funds the State planned to expend from State 
sources as of February 17, 2009, during the period of February 17, 2009 
through September 30, 2010, for the types of projects that are funded 
by the appropriation.
    This requirement applies only to State funding for transportation 
projects eligible for ARRA funding. DOT will treat this maintenance of 
effort requirement through one consolidated certification from the 
Governor to the Secretary, which must include State funding for transit 
projects, as well as highway and other transportation modal projects.
5. Section 1201(2)(c) Periodic Reports
    For amounts received under each covered program by a grant 
recipient under ARRA, the grant recipient shall include in the periodic 
reports information tracking:
    (A) The amount of Federal funds appropriated, allocated, obligated, 
and outlayed under the appropriation;
    (B) the number of projects that have been put out to bid under the 
appropriation;
    (C) the number of projects for which contracts have been awarded 
under the appropriation and the amount of Federal funds associated with 
such contracts;
    (D) the number of projects for which work has begun under such 
contracts and the amount of Federal funds associated with such 
contracts;
    (E) the number of projects for which work has been completed under 
such contracts and the amount of Federal funds associated with such 
contracts;
    (F) the number of direct, on-project jobs created or sustained by 
the Federal funds provided for projects under the appropriation and, to 
the extent possible, the estimated indirect jobs created or sustained 
in the associated supplying industries, including the number of job-
years created and the total increase in employment since February 17, 
2009 and
    (G) the actual aggregate expenditures by each grant recipient from 
State sources for projects eligible for funding under the program 
during the period of February 17, 2009 through September 30, 2010, as 
compared to the level of such expenditures that were planned to occur 
during such period as of the date of enactment of ARRA.
    Each grant recipient is required to submit the first of the 
periodic reports required alone not later than 90 days from February 
17, 2009 and is required to submit updated reports not later than.
    FTA will extract as much as possible of this information from grant 
information and standard reports provided through the TEAM electronic 
grants award and management system. Supplemental reporting may be 
required, however, to provide the project and contract level 
information. FTA will provide further reporting instructions at a later 
date. FTA is working with other modal administrations within DOT to 
standardize the information required from all DOT recipients, including 
the possibility of generating the required jobs data through the use of 
economic models and factors applied to the data provided in the grant 
awards and other information reported by the grant.
6. Section 1607
    Section 1607 requires that the Governor certify within 45 days of 
enactment (April 3, 2009) that, for funds provided, the state will 
request and use funds provided by this Act and the funds will be used 
to create jobs and promote economic health. If the Governor does not 
provide this certification, then the state legislature may act to 
accept the funds.
7. Section 1609
    Under section 1609(c), FTA is required to report to certain 
congressional committees every 90 days following enactment on the 
status and progress of projects funded or proposed for funding under 
the Act with respect to compliance with NEPA and its implementing 
regulations. FTA will necessarily ask recipients for assistance in 
compiling this quarterly report.
8. Other Reporting
    To satisfy the needs for transparency and accountability related to 
funding appropriated under the ARRA, grantees may be required to 
provide additional information not yet specified in response to 
requests from the Office of Management and Budget (OMB), the 
Congressional Budget Office (CBO), the Government Accountability Office 
(GAO), or the DOT Inspector General (IG). FTA will inform grantees if 
and when such additional reports are required.

E. Oversight

    Two key principles in the ARRA are transparency and accountability. 
Because the ARRA funds are being provided without a local share, (with 
the exception of the Capital Investment Grant program), FTA's careful 
stewardship of these funds is even more critical than under normal 
program provisions. To ensure funds are deployed rapidly, competently, 
and for the intended purposes, FTA is adapting some of its oversight 
reviews to accommodate a specialized ARRA oversight program. FTA will 
conduct periodic oversight reviews to assess grantee compliance with 
Federal requirements for projects funded under the ARRA. ARRA grantees 
already are monitored with FTA's comprehensive oversight program, which 
includes Triennial Reviews, capital construction reviews, civil rights 
reviews, drug and alcohol reviews, procurement system reviews, 
financial system reviews, planning certification reviews, and other 
more specialized reviews and these will continue under the rubric of 
our ongoing grant program.
    In addition to maintaining its existing oversight program 
structure, FTA is developing new vehicles for ensuring that ARRA 
funding is expended consistent with the purpose and

[[Page 9666]]

principles of the law. Additional training and technical assistance to 
support its grantees' efforts to comply with ARRA requirements also is 
being planned. FTA intends to work closely with its grantees to monitor 
progress in the implementation of ARRA transit programs and to deploy 
its oversight resources as necessary to assist in the achievement of 
the legislation's goals and objectives. FTA will post more details 
concerning its ARRA oversight program on its Web site as plans are 
finalized.

F. Technical Assistance

    FTA headquarters and regional staff are pleased to answer your 
questions and provide any technical assistance you may need to apply 
for FTA ARRA funds and to manage the grants you receive. In addition to 
this notice, Questions and Answers regarding FTA's implementation of 
the ARRA, and additional resources may be viewed via the FTA Web site 
http://www.fta.dot.gov/economicrecovery. Further, all FTA circular are 
posted on our Web site, including: C4220.1F, Third Party Contracting 
Requirements, dated November 1, 2008; and C5010.1D, Grant Management 
Guidelines (November 1, 2008). FTA is currently developing a toll-free 
hotline for civil rights-related ARRA inquiries. The number will be 
available at: http://www.fta.dot.gov/civil_rights.html. You may also 
contact the regional civil rights officer at the Regional Office listed 
in Appendix C.

    Issued in Washington, DC, this 2nd day of March, 2009.
Matthew J. Welbes,
Acting Deputy Administrator.

APPENDIX A--INSTRUCTIONS FOR PREPARING A GRANT APPLICATION USING ARRA 
FUNDS

    1. Pre-Application Stage.

    Note: To streamline the grant development process, ARRA grants 
may receive official grant numbers and be submitted before all 
traditional pre-application requirements are complete. However, ARRA 
grants may not be awarded until all pre-application requirements 
have been satisfied. In addition, FTA is minimizing the project 
level detail required in grants for certain categories of funding, 
such as vehicle purchases. Sample language is included in this 
notice and sample grants may be accessed in the TEAM system for 
information purposes.

    a. Planning. Project activities to be funded must be included in 
a Federally-approved Statewide Transportation Improvement Program 
(STIP) for capital and/or operating projects. FTA will not require 
that planning requirements be completed before the submission of 
grant applications for ARRA funding. However, project planning 
requirements must be complete and properly documented before grant 
award.
    b. Environmental Determination. The impact that a proposed FTA 
assisted project will have on the environment shall be evaluated and 
documented in accordance with the National Environmental Policy Act 
of 1969 (42 U.S.C. section 4321 et seq.). Before assigning a grant 
number, the regional staff should assess the feasibility that any 
outstanding environmental reviews or actions will be completed in a 
timely manner and must be completed before grant award.
    c. Annual Submission of Certifications and Assurances. A grant 
applicant applying for assistance under Federal Transit Programs 
including ARRA programs must submit certifications and assurances 
that are applicable to the grant applicant's active and new grants 
during the fiscal year. A grantee that has already submitted a FY 
2009 Certifications and Assurances does not need to resubmit these 
assurances.
    d. Civil Rights Submissions. Civil Rights submissions that may 
be required include a Title VI Plan, Equal Employment Opportunity 
(EEO) Program, Disadvantaged Business Enterprise (DBE) Program, and 
ADA Paratransit Plan. Typically, FTA's Regional Civil Rights Officer 
must verify that all required Civil Rights submissions are current 
at the time that the grant application is entered into TEAM. For 
ARRA funds, the grant number will be assigned before civil rights 
reviews are complete, but the grant will not be awarded with pending 
civil rights requirements. In addition, it may be necessary to 
verify compliance with specific Title VI, EEO, DBE and ADA 
requirements as part of the grant review and approval process. 
Please work closely with your Regional Civil Rights officer to 
ensure no delays in the award of a grant.
    2. Application Stage (Team Information). Applications for ARRA 
funds must be submitted electronically through the Transportation 
Electronic Award Management (TEAM) System. Each ARRA program funding 
request must be applied for in its own grant (i.e., ARRA Capital 
Assistance Formula funds may not be applied for in the same grant as 
ARRA Fixed Guideway Modernization funds). Further, ARRA funds can 
not be commingled in a grant application with program funds 
apportioned under SAFETEA-LU.
    ARRA grants should be developed using newly created Section 
codes in TEAM. These codes appear in the color red in the TEAM 
dropdown menu. The red is only to distinguish the ARRA section codes 
from other FTA program codes. ARRA grants should be developed using 
one of the following section codes:

96--Urbanized Area Formula--Economic Recovery
66--STP Urbanized Area Formula--Economic Recovery (FHWA Flex)
86--Nonurbanized Area Formula--Economic Recovery
06--STP Nonurbanized Area Formula--Economic Recovery (FHWA Flex)
36--New Start--Economic Recovery
56--Fixed Guideway--Economic Recovery

    Information that should be entered into TEAM when preparing an 
application includes:
    a. Recipient Information. Applicants should enter or update all 
required information about the organization in the appropriate 
fields in TEAM, including recipient address, contact information, 
union information, urbanized area identification number (UZA), 
Congressional district(s), DUNS number, etc. The information shall 
be current and accurate for each grant and periodically updated as 
changes occur.
    b. Project Information. Applicants should identify the project 
start/end date, program date, Executive Order 12372 review date, 
metropolitan planning organization (MPO) concurrence date (if 
applicable), and grant project costs. The ``brief project 
description'' field should include information that can be used to 
report the type of infrastructure investment such as: 25 Replacement 
Buses, Intermodal Terminal Construction, etc.
    (1) Project Description. This information must be in sufficient 
detail for FTA to obtain a general understanding of the nature and 
purpose of the planned activities. If applicable, the project 
description should identify subrecipients funded through the grant 
application and the projects being implemented by each subrecipient. 
There is a project description field as well as a specific text 
field for this information associated with each activity line item. 
Project activities shall be sufficiently described to assist the 
reviewer in determining eligibility under the program. State DOTs 
applying for Transit Capital Assistance Grants for rural recipients 
must include a program of projects (POP), which should be attached 
using the paperclip feature or included in this section.
    (2) Program Date and Page of STIP or Unified Planning Work 
Program (UPWP). All projects for ARRA funds in the grant application 
must be included in the current STIP. The STIP is jointly approved 
by FTA and FHWA. FTA funds cannot be obligated unless the STIP is 
approved by FTA. The application should note the page(s) in the most 
recently approved STIP on which the project(s) contained in the 
application are listed. The electronic system has a field designated 
``program date'' where the date of the most recent FTA/FHWA STIP 
approval should be entered.
    In the case of ARRA grants, FTA regional offices will continue 
to process grants while awaiting STIP amendment actions. Grant 
numbers will be assigned before the inclusion of the STIP date in 
the grant application if the grantee is awaiting formal STIP action 
or approval.
    c. Budget. The appropriate scopes and activity line items (ALI) 
should be used when developing the project budget. All sources of 
funds shall be identified and confirmed. All rolling stock 
procurements shall include vehicle description and fuel type; 
expansion activities shall include a brief discussion of the 
expanded service. The project budget should reflect the precise 
activities for which the grant funds will be used. As a streamlining 
measure, FTA is not requiring that grantees include any non-add 
scopes in the project budget when purchasing activities that are 
categorized as ITS, ADA, or security.
    d. Project Milestones. Estimated completion dates for all 
milestones should be

[[Page 9667]]

provided and updated quarterly. If milestones are not pre-populated 
by the TEAM system for a particular activity line item (ALI), use 
the add function to add milestones for that ALI to the grant 
application. At a minimum, activities that will require a contract 
award should have milestones tracking (1) the date the RFP is 
issued; (2) the anticipated date of contract award; and (3) the date 
the contract will be completed. Activity line items that are not 
contracted out should include (1) the date the activity is initiated 
and (2) the anticipated completion date.
    It is critical that milestones for ARRA grant activities are 
updated and monitored quarterly from February 17, 2009, the date of 
enactment of the legislation.
    e. Environmental Findings. The application should include a 
proposed classification of each ALI that is an independent project 
with discrete transit utility, in accordance with the FTA/FHWA 
environmental impact procedures. (See 23 CFR 771.115 and 771.117.) 
Grant applicants should refer to 23 CFR 771.117(c) and (d) for 
listings of projects that qualify as categorical exclusions (CEs). 
Many projects (such as vehicle purchases that can be accommodated 
within existing yards and shops, purchase of software and hardware, 
security upgrades, mobility management, preventive maintenance, 
preliminary engineering) meet the criteria for a and require no 
further action.
    f. Fleet Status. The fleet status report should be completed in 
order to purchase vehicles under the Transit Capital Assistance 
Program for UZAs; however, a completed fleet status report will not 
be required for any other ARRA program funds. A grantee who wishes 
to use ARRA funds to purchase vehicles that would cause the 
grantee's fleet to exceed the applicable spare ratio requirements 
should contact their FTA regional office. FTA will consider 
approving exceptions to a spare ratio requirement if the request 
meets certain criteria, such as: the excess spare ratio would be 
temporary in nature, with it returning to within the 20 percent 
level within 2-3 years of delivery of the new vehicles, or whether 
the buses would ``green'' the fleet of the transit agency.
    g. Application Submission. Once FTA deems (1) the TEAM 
application template completed, (2) the activities eligible, (3) the 
budget complete and firm, and (4) environmental documentation 
submitted or near submittal for applications requiring a FONSI or 
ROD, FTA will assign a grant number. At this point, the grant is 
ready to be pinned and submitted in TEAM by the designated 
recipient/grantee. As previously stated, ARRA grants may be 
submitted prior to the completion of all pre-application 
requirements such as: Civil Rights documentation, Planning, and NEPA 
review. This concurrent review process is a departure from FTA's 
standard operating procedures and only applies to grants for ARRA 
program funds.

    Note: Although ARRA program grants can be officially submitted 
to FTA for review and approval, grant funds can not be awarded or 
obligated until all applicable federal requirements have been met 
and documented in the application.

    h. Certification of Labor Protective Arrangements. With the 
exception of Transit Capital Assistance Grants allocated to 
nonurbanized areas which are covered by the special warranty 
provision, ARRA Act grants will be sent to DOL, as soon as the 
budget is confirmed, budget details are included in the grant, and 
the application is officially submitted for processing. DOL 
procedures have minimum wait times built in for replies or 
objections by management and unions. Accordingly, a grantee's prompt 
response to DOL communications regarding the grant before the 
expiration of the minimum wait period could result in the grant 
being certified before the end of the allowable processing period.
    Transit Capital Assistance grants for nonurbanized areas tribes 
are covered by the special warranty provision and will be sent to 
DOL for information immediately prior to fund reservation and grant 
award.
    i. Grant Approval. Once FTA staff determines through a final 
review of the application that FTA program requirements have been 
met and that the ARRA section 1511 certification is made and posted 
to a Web site, FTA will reserve the funds and obligate the grant.
    j. Grant Execution. After FTA has awarded the grant, the 
applicant must execute the award before funds can be drawn down from 
the grant. Before executing ARRA grants, the grantee will be 
prompted to select both the rationale for the investment and the 
purpose of the investment from menus that have been established in 
the reservation screen. ARRA grants that include activities funded 
using pre-award authority will require the submission of a Financial 
Status Report before grant execution.

Application Checklist

Part I--Recipient Information

    1. Is the Grantee Contact & Other information Current and 
Complete?
    2. Are Annual Certifications & Assurances pinned?
    3. Is UZA/Congressional District information entered and 
accurate?
    4. Is union contact information entered and accurate?
    5. Has Civil Rights Program Documentation been approved by FTA?
    6. Has the applicant's DUNS Number been entered in the 
appropriate field?

Part II--Project Details

    1. Does the Project Description (including the POP (Transit 
Capital Assistance--Nonurbanized areas) and other attachments) 
include adequate descriptive information of funded projects and 
subrecipients?
    2. Are the project activities included in the grant eligible to 
be funded using ARRA program funds?
    3. Has a split allocation letter been submitted for UZAs with 
more than one direct grant recipient?
    4. Is the program of projects attached for state administered 
grant to nonurbanized grants?

Part III--Project Information

    1. Has the grant been identified as a new application or 
amendment?
    2. Start/End date entered?
    3. Has the Program Date (STIP or UPWP date) been entered?
    4. Have Control Totals been entered?
    5. Does the brief project description field adequately 
articulate what is being funded (example: Bus replacements, 
Intermodal Center Construction, etc.)?
    6. If pre-award authority is applicable, has ``yes'' been 
selected?
    7. Has the EO 12372 Review field been completed, if applicable?

Part IV--Budget

    1. Are ALI codes entered under the appropriate scope codes?
    2. Is grant for up to 100% Federal funds?
    3. Does the funding amount entered in the budget match financial 
information entered in the control totals in the ``Project 
Information'' field?
    4. Has one percent been budgeted for capital transit 
enhancements? (only applicable to Transit Capital Assistance Funds 
allocated to UZAs over 200,000 in population.)
    a. Federal Funds.
    b. Local Funds.
    4. Does the rolling stock (vehicle) line item contain accurate 
information such as:
    a. Description of vehicles purchased.
    b. Fuel Type.
    5. Have details been entered into the ``Extended Budget 
Descriptions''?
    a. Has descriptive information been added in the details section 
of each ALI that identifies the items being funded using the line 
item?

Part V--Project Milestones

    1. Are milestones listed for each ALI? (If an ALI does not have 
milestones, they should be added.)
    2. Have estimated completion dates been entered?

Part VI--Environmental Findings (NEPA)

    1. Has an environmental finding been entered for each ALI?

Standard Language for ARRA Grants

    The following standard language has been approved for ARRA 
grants. This language provides enough detail for FTA to determine 
eligibility and assign a grant number.

Preventive Maintenance

    This application is funded as follows:

2009 Transit Capital Assistance Grants--Urbanized Area Funding Formula 
Funding Program

    Our estimated operating budget, as defined by NTD Reporting 
System (NTD), for --------(insert time-period) is $ (amount). 
Estimated Preventive Maintenance (PM) costs in the operating budget 
for equipment and facilities is $ (amount) less $ (amount) for 
warranty recovery leaving $ (Balance) available for federal 
participation at the 100/0 rate. This grant will apply federal funds 
of $ (amount applied) to this allowable share. Additional PM for the 
period of (insert applicable time-period) is in grant (Grant 
Number).
    These grant activities are a categorical exclusion under NEPA.

[[Page 9668]]

Rolling Stock

    (Initial Grant) Start of TEAM input--insert this is an initial 
grant This application is funded as follows:

2009 Transit Capital Assistance Grants--Urbanized Area Funding Program

    This grant applies the 2009 ARRA Formula allocation of $(amount) 
to bus replacement. We will purchase approximately (number, type and 
length of buses, e.g. five low floor--40 foot buses) that have an 
expected useful life of (insert applicable useful life for buses 
being purchased) years. The vehicles being replaced have met their 
useful life of (insert applicable useful life standard of replaced 
vehicles). A Federal ratio of 100/0 will apply. These buses will 
meet the Clean Air Act standards (CAA) and the Americans with 
Disabilities Act (ADA) requirements. The fleet status section of 
TEAM has been updated to reflect this fleet addition. We are able to 
operate and maintain this vehicle expansion
    These grant activities are a categorical exclusion under NEPA.

Facility

    This application is funded as follows:
    American Recovery and Reinvestment Act--Transit Capital 
Assistance Program (Urbanized)
    This project will use $(amount) of (Section -------- ) ARRA 
funds for a ----(purpose and location i.e., transit center in 
Edmonds, WA). This project includes--see sample descriptions:
    This center will service the Washington State Ferries, AMTRAK, 
Sound Transit Commuter rail, North End Taxi, and the bus services of 
King County Metro and Community Transit (need information for all 
operators to send to DOL). Additionally, bike racks and lockers will 
be added for use by ferry, rail and bus passengers. This project 
will also include a waiting room rest room. This project is also 
funded under grant number ------------A Documented Categorical 
Exclusion (DCE)/Finding of No Significant Impact (FONSI)/Record of 
Decision (ROD) was issued on ------------. A copy of this approval 
is attached to this grant and the environmental section of TEAM is 
complete.

Appendix B--Allocation, Use and Eligibility of FTA ARRA Funds Questions 
and Answers

    Q. Can a local agency combine ARRA funds and other sources to 
implement a project?
    A. While each recipient must apply for a separate grant for each 
economic recovery funding source, a single project may be funded 
with multiple funding sources, including economic recovery and other 
FTA formula and discretionary resources.
    Q. Will the Financial Status Report and Milestone Progress 
Report reporting requirements for ARRA grants be different than 
current requirements?
    A. Yes. Recipients of ARRA funds will be required to report not 
later than 10 days after the end of each calendar quarter. FTA will 
extract as much information as possible from grant information 
standard reports provided through the TEAM system. Supplemental 
reporting may be required to provide the contract and project level 
information.
    Q. Can grantees receive economic recovery grants if the agency's 
ability to apply for FTA program funds is currently suspended?
    A. Grantees that are currently in a fundable status to receive a 
grant under FTA programs will be eligible to receive economic 
recovery funds. Grantees concerned about their status should contact 
their FTA regional office.
    Q. What can ARRA funds be used for?
    A. The law states that funds will be available for capital 
expenditures authorized under 49 U.S.C. 5302(a)(1), which describes 
eligible capital expenses. States may continue to use up to 15% of 
funds apportioned at the State level to administer the non-urbanized 
program on FTA's behalf.
    Q. Are project administration costs eligible for funding?
    A. Yes. ARRA funds can be used to fund the administrative costs 
associated with administering capital projects, including costs 
associated with reporting on project and grant status.
    Q. Do ARRA program funds have pre-award authority?
    A. Yes, FTA will extend pre-award authority to economic recovery 
program funds consistent with the program requirements of the 
applicable FTA program. Economic recovery funds administered under 
the requirements of Section 5307, Section 5311, or Fixed Guideway 
Modernization will have blanket pre-award authority from October 1, 
2008, until September 30, 2010. There are two exceptions: the energy 
savings and tribal transit projects will have pre-award authority 
from the date that project selections are announced in the Federal 
Register. Economic recovery funds administered in accordance with 
the requirements of the Section 5309 Capital Investment Grant 
program (New/Small Starts) will have pre-award authority only for 
the stage approved up to that point. For example, upon approval to 
enter preliminary engineering, the grantee has pre-award authority 
to incur preliminary engineering costs. For more information, refer 
to the FY 2009 Apportionments Notice published in the Federal 
Register, December 18, 2008.
    Q. Can a grantee use ARRA funds to purchase vehicles if the 
agency's spare ratio will exceed the applicable standard?
    A. A grantee wishing to use ARRA funds to purchase vehicles that 
would cause the grantee's fleet to exceed the applicable spare ratio 
requirements should contact their FTA regional office. FTA will 
consider approving exceptions to a spare ratio requirement if the 
request meets certain criteria, such as: the excess spare ratio 
would be temporary in nature, with it returning to within the 20 
percent level within 2-3 years of delivery of the new vehicles, or 
whether the buses would ``green'' the fleet of the transit agency.
    Q. Who will be eligible to receive ARRA funds?
    A. ARRA funding will be made available to current recipients of: 
FTA's Urbanized Area Formula Program (49 U.S.C. section 5307); 
Formula Grants for Other Than Urbanized Areas Program (49 U.S.C. 
section 5311); Fixed Guideway Modernization Formula Program (49 
U.S.C. section 5309); federally recognized tribes (49 U.S.C. section 
5311(c) (1)); and Capital Investment Grants (49 U.S.C. section 5309)
    Q. When will FTA consider apportioned funds as ``obligated?''
    A. For the purposes of the withdrawal provision, FTA will 
consider funds obligated on the date of grant award.
    Q. Is a local match required with use of ARRA funds?
    A. No local match is required except for the Capital Investment 
Grant Program.
    Q. Can ARRA funds be used for operating expenses?
    A. No. ARRA funds may be used only for capital expenses. The 
funds differ from the normal eligibility of FTA's Urbanized Area 
Formula program (Section 5307) for UZAs with less than 200,000 in 
population and Non-Urbanized Area Formula program (Section 5311), 
which can be used for operating expenses.
    Q. Can ARRA funds be used for preventive maintenance activities?
    A. Yes. Capital projects as defined by 49 U.S.C. 5302(a)(1) are 
eligible under the law, and preventive maintenance is included in 
the list of eligible capital expenditures.
    Q. Can ARRA funds be used for preliminary engineering 
activities?
    A. Yes. Capital projects, as defined by 49 U.S.C. 5302(a)(1), 
are eligible under the law. Specifically, 49 U.S.C. 5302(a)(1)(A) 
includes engineering and design work, location surveying, mapping, 
and right-of-way acquisition as eligible capital expenses.
    Q. Can ARRA funds be used by State DOTs to administer the 
program?
    A. Yes. States may continue to use up to 15% of funds 
apportioned at the State level to administer the program for non-
urbanized areas on FTA's behalf.
    Q. Will the 50% of funds awarded during the 180-day period be 
tracked by program or by grantee?
    A. Neither. FTA will track the amount of funds obligated on the 
urbanized area and State level. Therefore, designated recipients and 
State DOTs should consider project readiness when making 
allocations. Example: Brownstone is apportioned $100,000 and 
obligates $30,000 before 180 days after apportionment. FTA will 
withdraw $20,000 from Brownstone's apportionment which is $50,000 
(50% of apportionment) less the $30,000 which was obligated. 
Brownstone will still have $50,000 (remaining 50% of apportionment) 
available to be obligated on or before one year of the 
apportionment.
    Q. If a contract has already been signed and/or a bid awarded, 
can ARRA funds be used?
    A. Yes, if local funds were used to advance a project under 
FTA's pre-award authority provision or a Letter of No Prejudice.
    Q. If an FTA grantee receives ARRA funds from FHWA, can the 
funds be transferred to FTA?
    A. Yes.
    Q. Can FHWA funds transferred to FTA be used for operating?
    A. No. FTA will follow current Surface Transportation Program 
transfer rules.
    Q. Will the states and UZAs be penalized if the vehicles are not 
delivered in time?
    A. No.

[[Page 9669]]

    Q. Will all current recipients of SAFETEA-LU Fixed Guideway 
Modernization funds receive ARRA Fixed Guideway Infrastructure 
Investment funds?
    A. No. Some areas do not meet the standard required to be 
included in the apportionment calculations under the Fixed Guideway 
Modernization (FGM) tiers for which ARRA funds are available. The 
$750 million in FGM funds under AARA is not sufficient to fund all 
tiers of the FGM formula. The allotment of the funds to the tiers, 
in accordance with Section 5337, results in full funding of tiers 1, 
2, and 3, and partial funding of tier 4, in the amount of 
$169,100,000. FTA is not permitted to pro-rate the $750 million over 
all of the FGM formula tiers. The first tier allocates specific 
amounts to designated areas. Funds allotted to tiers 2, 3, and 4 are 
apportioned using the 1997 standard.
    If an area did not receive an FGM apportionment in 1997, it did 
not meet the 1997 standard and, thus, it is not eligible to be 
apportioned funds under tiers 2-4, unless that law specifies 
otherwise.

Actions Required Before Receiving Funds

State DOT and MPO Actions

    Q. What actions do State DOTs and MPOs need to take, in 
coordination with transit agencies to ensure timely award and 
expenditure of funds?
    A. States and MPOs, in coordination with transit agencies, 
should conduct the transportation planning activities necessary for 
adding proposed ARRA program projects to plans, TIPs and STIPs. 
Planning tasks such as conducting public involvement, demonstrating 
fiscal constraint, and performing travel model runs and analyses 
prerequisite to making transportation air quality conformity 
determinations should take place now. This is necessary to ensure 
timely amendment of the documents to include ARRA projects and to 
award funds as soon as possible. This work should have already 
begun. If it has not, it should be started immediately.
    In identifying and proposing additional projects for amendment 
into TIPs and STIPs, it is reasonable to assume ARRA program funds 
equivalent to a doubling of the current full-year amount of 
comparable FTA program funds--Sections 5307 Urbanized Area Formula 
program, 5309 Fixed-Guideway Modernization program, and 5311 Non-
Urbanized Area Formula program. FTA has not determined how Capital 
Investment Grant Funding (New/Small Starts program in 49 U.S.C. 
5309) will be allocated at this time. Once the necessary planning 
and air quality conformity work has been completed, MPOs and State 
DOTs may amend their plans, TIPs and STIPs. FTA, in coordination 
with FHWA, can make any necessary conformity findings on the amended 
plans and TIPs, and approve the STIP amendment requests.
    Attainment and Nonattainment Conditions. If the project is in an 
area that is in attainment of air quality standards, the MPOs would 
take action and then submit the amended TIP to the State for 
incorporation into the STIP. The State would submit the amended STIP 
to FHWA/FTA for review and approval. With advance coordination among 
the parties, some of these items can be performed concurrently.
    If the project is in an air quality nonattainment or maintenance 
area, the addition of activities or projects that are exempt from 
conformity could be accomplished as a simple amendment and would not 
necessitate a conformity determination. See List of Projects that 
are Exempt from Air Quality Conformity.
    States and the MPOs should begin now to do the necessary 
planning work, such as model runs for the various scenarios; 
analysis work needed for conformity, if necessary; public 
involvement; and any other planning support work to get prepared. 
This preparatory technical work can be completed, and action taken 
to approve the necessary amendments along with conformity 
determination, if required.
    Once the planning and any necessary conformity work has been 
completed, the MPO policy boards and State DOTs may amend their 
plans, TIPs and STIPs, and FTA, in coordination with FHWA, may make 
any necessary conformity determinations.
    Q. Can State DOTs and MPOs count the recovery funds to 
demonstrate ``fiscal constraint'' in plans, TIPs, and STIPs?
    A. Yes. Funds may be used to demonstrate fiscal constraint of 
plans, TIPs, and STIPs in areas that are in attainment, 
nonattainment, or maintenance of air quality standards. This special 
determination is analogous to the assumption of a continuing flow of 
Federal funds
    Q. Can State DOTs and MPOs use ARRA funds to do transportation 
planning activities necessary to amend TIPs and STIPs in preparation 
for subsequent fund award?
    A. Funding from the ARRA program is limited to capital program 
assistance, and transportation planning is not an eligible activity 
for the funds that will be made available to FTA. MPOs and States 
should utilize the planning funds programmed in existing Unified 
Planning Work Programs and State Planning and Research Programs to 
support their planning efforts.
    Q. Can substitution of ARRA funds for FTA funds on projects 
programmed in the TIP and STIP be handled administratively?
    A. Yes, provided that the action involves only a change in the 
source of the funds. The adopted amendment procedures governing your 
specific State or region should be consulted to determine what 
actions are eligible as administrative amendments to the TIP or 
STIP.
    Q. Can ARRA funds be used to support non-federal projects not 
currently listed in plans, TIPs or STIPs?
    A. Yes, provided that the non-federal projects are eligible 
activities for ARRA funding (i.e. capital assistance), that they can 
be amended into plans, TIPs, and STIPs, and that compliance with 
applicable federal requirements such as the environmental review 
process required under NEPA, other environmental laws, and any 
additional applicable federal requirements can be expeditiously 
achieved.
    Q. Can MPOs and States process TIP and STIP amendments to add 
ARRA-funded projects as ``lump-sum'' amounts?
    A. It depends. Yes, if the term ``lump-sum'' refers to a 
``package'' of individually identified projects proposed for 
amendment into TIPs and STIPs. In addition, in accordance with 23 
CFR Part 450, Statewide and Metropolitan Transportation Planning, 
projects that are not considered to be of appropriate scale for 
individual identification in the TIP and STIP may be grouped by 
function, work type, and/or geographic area using the applicable 
classifications under 23 CFR 771.117(c) and (d) and/or 40 CFR part 
93. The adopted amendment procedures governing your specific state 
or region should be consulted for guidance as to ``lump sum'' 
amendments requirements. A ``lump-sum'' dollar figure without a list 
of individual projects or indication of overall project ``group'' 
would not provide sufficient information for MPOs, States, and FTA/
FHWA to approve amendments of TIPs and STIPs or track the use of 
ARRA funds.
    Q. Can State DOTs and MPOs use ARRA funds to do transportation 
planning activities necessary to amend TIPs and STIPs in preparation 
for subsequent fund award?
    A. Funding from the ARRA program is limited to capital program 
assistance, and transportation planning is not an eligible activity 
for the funds that will be made available to FTA. MPOs and States 
should utilize the planning funds programmed in existing Unified 
Planning Work Programs and State Planning and Research Programs to 
support their planning efforts.
    Q. Can FTA, jointly with FHWA, make conditional STIP approvals?
    A. No. Conditional STIP approvals are not allowed under existing 
regulations. The planning regulations (23 CFR 450.218(b)) do allow 
FTA/FHWA to: approve the entire STIP; approve the STIP subject to 
certain corrective actions being taken; or under special 
circumstances, approve a partial STIP covering only a portion of the 
State. However, if States and MPOs complete the steps detailed 
above, FTA/FHWA can approve the STIP amendments immediately.
    Q. What public review and comment activities do organizations 
need to undertake prior to receiving funds?
    A. The public involvement and consultation provisions adopted 
and published by metropolitan and statewide transportation planning 
processes apply to planning and programming of projects supported 
with ARRA funds. The provisions outlined in MPO Participation Plans 
and documented public participation processes of States describe the 
locally agreed upon requirements for public review in the planning 
process, including the schedule and period of time for public input 
and comment that must be met. Additionally, public review and 
comment required by the environmental process must be undertaken.

Transit Agency Actions

    Q. What actions do transit agencies need to take before applying 
for funds?
    A. Planning Process. Projects must be included in the approved 
Statewide Transportation Improvement Program (STIP) and, in UZAs, 
the metropolitan transportation plan (Plan) and Transportation 
Improvement Program (TIP). Transit agencies should be working within 
their metropolitan

[[Page 9670]]

or statewide transportation planning processes to ensure that their 
priority projects are included in those documents and made ready for 
grant award. Therefore, FTA strongly encourages transit agencies to 
reach out to Metropolitan Planning Organizations (MPO) or State 
Departments of Transportation (State DOT) to begin work as soon as 
possible to ensure that public transportation projects are included 
in approved plans, TIPs and STIPs, so that the projects are ready 
and available to advance to grant award, and to begin expending 
funds, as soon as possible.
    Environmental Review. Environmental requirements that apply to 
projects--the National Environmental Policy Act (NEPA) and Section 
4(f) of the Department of Transportation Act, among others--must be 
met. Areas should consider prioritizing projects that qualify as 
categorical exclusions or have completed or nearly completed NEPA in 
order to meet the anticipated timeframes for obligation of funds in 
the new legislation. To the extent that other environmental 
requirements apply and have not been satisfied, grantees should 
begin consulting with managers of affected resources at the earliest 
opportunity.
    Projects with Incomplete Environmental Processes. A project for 
which a categorical exclusion or an environmental assessment is in 
the process of being prepared, but nearing completion, likely will 
qualify as a ``quick-start'' activity targeted for economic recovery 
investment. A project for which an environmental impact statement is 
nearing completion may qualify as a quick-start activity if a record 
of decision is expected to be executed shortly. In accordance with 
section 1609(b) of the Act, FTA staff will provide guidance on the 
most efficient course of action for completing the environmental 
process (including the National Environmental Policy Act (NEPA) 
process and other environmental requirements, such as section 106 of 
the National Historic Preservation Act and section 4(f) of the 
Department of Transportation Act, for any project that may qualify 
as a quick-start activity.
    Q. Can ARRA funds be used to substitute for money in an existing 
grant that has not been expended?
    A. No. ARRA program funds cannot be used to replace funds 
already obligated in an existing FTA grant even if those funds have 
not been expended. ARRA funds can, however, be used to replace 
program funds identified in STIP and TIP but not yet awarded in a 
grant.
    Also, because FTA needs to segregate the funds being made 
available from ARRA legislation, agencies will need to apply for the 
ARRA funds in a new grant application.
    Q. Will FTA consider approving grants before completion of the 
environmental process?
    A. As a general rule, FTA does not award program funds in a 
grant until the NEPA process and review have been completed. 
Grantees with projects in the final stages of NEPA review should 
contact the appropriate FTA regional office for direction.

Grant Application Information

    Q. Can a transit agency combine all ARRA funds into a single 
grant application?
    A. No. Each grant recipient must apply for a separate grant for 
each ARRA program under which they are allocated funds.
    Q. Can a transit agency amend an existing FTA grant to add the 
ARRA funds?
    A. No. FTA program funds cannot be commingled with ARRA funds. 
Each grant recipient must develop a separate grant for each ARRA 
program it seeks funds from.

 Procurement & Contracting

    Q. Can FTA allow progress payments on procurements?
    A. Progress payments are made to the contractor only for costs 
incurred in the performance of the contract. The grantee must obtain 
adequate security for progress payments, which may include taking 
title, letter of credit or equivalent means to protect the grantee's 
interest in the progress payment. More discussion on this subject 
can be found in 4220.1F, Chapter III.
    Q. Are there any changes to Federal procurement and contracting 
rules for grantees anticipated with these new ARRA funds?
    A. Presently, FTA anticipates that existing U.S. DOT procurement 
and contracting regulations (found in 49 CFR part 18) and official 
guidance (found in FTA's Third Party Procurement Circular), 
including the Disadvantage Business Enterprise (DBE) program 
requirements will apply in full force to ARRA funded projects. U.S. 
DOT's Office of General Counsel has issued official guidance via an 
ARRA-specific DBE Question & Answer site to address issues raised by 
the ARRA legislation, express DOT's expectations, and delineate 
grantees' continued obligations and options as they advance grants.
    Q. Are there ways that I can expedite contract delivery of the 
ARRA funds?
    A. There are several opportunities that FTA grantees can take to 
expedite contract delivery of the ARRA funds, as well as any other 
FTA program funds. FTA's Best Practices Procurement Manual contains 
information on how transit agencies and other FTA grantees can 
partner with other grantees to do joint purchases of items such as 
rolling stock. For any other information on how to issue contracts 
using FTA funding, please go to FTA's Third Party Procurement web 
site where you can find an array of procurement resources, including 
a site-specific search engine and an extensive list of Frequently 
Asked Questions.
    Grantees should identify any capital projects (such as bus 
garage repairs or renovations) for ARRA funds. Grantees can initiate 
any contracting (statement of work, purchase requests and 
independent cost estimates) actions, so that when the funding 
becomes available, timely contract awards can be made.
    Q. Is piggybacking onto existing contracts allowed?
    A. Yes. Piggybacking is permissible when the solicitation 
document and resultant contract contain an ``assignability clause'' 
that provides for the assignment of all or a portion of the 
specified deliverables as originally advertised, competed, evaluated 
and awarded. If the supplies were solicited, competed and awarded 
through the use an indefinite-delivery-indefinite-quantity contract 
(IDIQ), then both the solicitation and contract award must contain 
both a minimum and maximum quantity that represent the reasonably 
foreseeable needs of the party(s) to the solicitation and contract. 
If two or more parties jointly solicit and award an IDIQ contract, 
then there must be a total minimum and maximum. See Attachment 1 of 
FTA's Best Practices Manual for the Piggybacking Worksheet.
    Grantees are encouraged to pursue any joint or cooperative 
procurements (including piggybacking) of vehicles across state 
lines. Grantees may place orders against existing State or local 
contracts. It is advantageous to use existing contract rights if 
appropriate assignability clauses are in place so that supplies or 
services can be quickly obtained.
    Q. Can FTA permit ``change orders'' to existing Federal or non-
Federal contracts?
    A. Modifications to contracts are allowed based on the terms and 
conditions established at the time of award. As a general rule, the 
owner agency of a contract is the only entity permitted to 
``modify'' or ``change'' that contract's terms and conditions. If 
the contract stipulates that a portion or portions may be modified, 
then user agencies are restricted to those instructions. Roles and 
responsibilities of recipients in modification and changes to 
contracts are discussed in FTA Circular 4220.1F, chapter VI.
    Q. Can ARRA funding be added to projects/procurements that don't 
currently have Federal funding in them?
    A. Not if construction has already commenced. The FTA planning, 
environmental, and other requirements for such project will not have 
been satisfied at the appropriate time. If construction has not been 
initiated, the applicant should consult with FTA regional office 
about possible ARRA funding. The planning and environmental 
requirements would have to be met, and no construction or other 
implementation activity could commence until these requirements have 
been met. Also, when adding funding to project/procurements that 
were awarded with other than Federal funds, it is imperative that 
the contract modification issued to add those funds include all of 
the federally required clauses (see FTA Circular 4220.1F, Appendix 
D). Also, the modification must be bilateral.
    Q. Is there any way that our contracting processing can be 
accelerated?
    A. Grantees can use design/build and the flexibility to shorten 
bid times. In addition, you may want to look into setting up 
contracts that provide the kind of management services essential to 
moving a collection of projects, including financial management, 
procurement following Federal procedures, scheduling, cost control, 
design and construction management, and performance management 
reporting. This would not relieve a State or transit agency of 
responsibility for such activities.
    In keeping with federal cost principles (2 CFR 225), such costs 
determined to be ``indirect'' in nature must be charged to an

[[Page 9671]]

approved indirect cost allocation plan for distribution to all 
benefiting cost objectives or paid for with State funds. Such a task 
order contract could (1) fill gaps in capacity to deliver a highly 
peaked, high visibility and high political risk stimulus program, or 
(2) provide ``insurance'' in the event they or other agencies in the 
state need immediate access to such resources. Such a contract would 
be a clear risk management/mitigation step and at no cost to the 
client if tasks are not assigned.

Department of Labor Certification

    Q. Is DOL certification required and can the process be 
streamlined?
    A. Yes. The U.S. Department of Labor (DOL) will need to certify 
grants awarded using ARRA funds. In accordance with DOL's 
guidelines, grants subject to a referral may require up to 60 days 
to complete (29 CFR 215.3). To streamline the process, DOL intends 
to certify ARRA program funds consistent with its procedures for 
certifying the current comparable FTA program. Accordingly, ARRA 
programs that follow the requirements of 49 U.S.C. section 5307 or 
49 U.S.C. section 5309 will be referred out if the grant contains 
new project activities. Grants for like-kind equipment or 
replacements will no longer need to be referred out to the unions 
before certification. Furthermore, ARRA programs that follow the 
requirements of 49 U.S.C. section 5311 will be certified based on 
the special warranty provision including grants to Indian tribes. 
Additionally, grantees may reduce processing time by responding 
immediately to DOL's requests related to your grants. FTA is working 
closely with DOL to identify additional ways to streamline the 
process and will post additional information as it becomes 
available.
    Q. When can ARRA grants be assigned official TEAM application 
numbers and be submitted for DOL review?
    A. ARRA grants should be assigned an official number as soon as 
the budget is developed and project details are sufficient to make 
an eligibility determination. Departing from FTA's standard grant 
procedures, FTA will allow ARRA grants to be assigned a number and 
submitted for DOL review before the completion of in-house FTA 
reviews. Of course, all reviews must be satisfactorily completed 
before FTA can obligate any funds in a grant.

Transit Capital Assistance--Urbanized Area Grantees

    Q. In UZAs with multiple direct FTA grant recipients, should the 
designated recipient notify FTA about the local allocation of funds?
    A. Yes. Consistent with current practice under Section 5307, 
designated recipients in UZAs with multiple direct recipients should 
notify FTA, in writing, of the local allocation, or split, of 
recovery funds.
    Q. When will FTA require a supplemental agreement?
    A. Consistent with current practice under Section 5307, a 
supplemental agreement will be required when a grant is awarded to a 
direct recipient in an urbanized area if that recipient is not the 
designated recipient.
    Q. Will the Governor need to allocate funds to small urbanized 
areas under the Governor's apportionment (50,000-200,000 in 
population)?
    A. Yes, consistent with current Section 5307 requirements for 
urbanized areas between 50,000 and 200,000. The Governor should 
notify FTA of any changes to the published allocations before any 
application of the small urbanized area is submitted for ARRA 
formula funds.
    Q. Can grantees in small urbanized areas (pop. 50,000-200,000) 
apply for funding directly from FTA, or will States be required to 
apply for funds in these areas in a single consolidated grant?
    A. ARRA funds allocated to the Governor for small urbanized 
areas (pop. 50,000-200,000) are subject to the requirements of 
Section 5307 and will be administered consistent with current 
practice. FTA will not require a consolidated grant for the 
urbanized areas of a State with populations less than 200,000. Once 
a Governor allocates recovery formula funds to each urbanized area 
between 50,000 and 200,000 in population (in accordance with Section 
5307), then FTA will make grants directly to recipients in those 
areas.
    Q. Will the section 5307 amounts include section 5340 funds?
    A. Yes. The legislation identified 10% of the transit capital 
assistance funds to be distributed according to the section 5340 
Growing States and High Density States formulas. These amounts are 
included in the amounts apportioned to the UZAs.
    Q. Will the 1% for transit enhancements apply to ARRA funds 
administered under sections 5307 for urbanized areas over 200,000 in 
population?
    A. Yes, UZAs over 200,000 must spend 1% of the area's Transit 
Capital Assistance funds on transit enhancements; however, only 
capital transit enhancement projects can be funded using ARRA 
funding.
    Q. Will we be required to check the security static button in 
TEAM?
    A. Yes. Consistent with the Section 5307 requirement, grantees 
must check the security static button in TEAM to confirm that the 
grantee will expend one percent or more of the Transit Capital 
Assistance funds for security purposes or that spending the one 
percent is not necessary at that time.
    Q. Will Section 5307 transfer rules apply?
    A. Yes, the transfer provisions of Section 5336(f) are 
applicable. (1) Funds can be transferred from small urbanized areas 
(under the Governor's apportionment) to nonurbanized areas after 
consultation with local officials and public transportation 
operators in each area that will lose the amount apportioned. (2) 
Funds from large urbanized areas may be transferred by the 
designated recipient to small urbanized areas. (3) The Governor may 
also use funds apportioned to small urbanized areas throughout the 
State at the beginning of the 90 day period before the funds lapse 
(available 90 days after ARRA Transit Capital Assistance allocations 
are published in the Federal Register).
    Q. If Section 5307 funds can be transferred in accordance with 
5336(f), what is the relationship with the reallocation process? 
Will the new grantee receive additional time to contract or spend 
resources?
    A. No--funds must be obligated within the applicable timeframe.
    Q. Will the section 5307 apportionment for a small urbanized 
area that qualifies for Small Transit Intensive Cities (STIC) 
formula funding, in FY 2009, include STIC funds?
    A. No, the language in the ARRA directs that the formula not 
include 49 U.S.C. Sec.  5307 (i)(1) and (j) that provide for a one 
percent takedown for STICs and the STIC formula.
    Q. Since ADA services are an eligible capital activity, will 
this be limited to 10% of an urbanized area's ARRA funding?
    A. Yes. The 10 percent limitation would apply. Section 
5302(a)(1)(I) explicitly defines nonfixed route ADA paratransit as 
an eligible capital expense but only to the extent that the amount 
does not exceed 10% of the recipients annual formula apportionments 
under Section 5307 and 5311.

Transit Capital Assistance Program--Nonurbanized Areas Grantees

    Q. Are capital intercity bus purchases eligible?
    A. Yes, all Chapter 53 requirements apply to ARRA funds.
    Q. Are states required to use 15% of formula funds allocated to 
non-urbanized areas for intercity bus?
    A. States must use at least 15% of ARRA formula funds allocated 
to non-urbanized areas for intercity bus services. However, 
consistent with Section 5311 requirements, States can certify that 
intercity bus needs have been met after consultation.
    Q. Can States use up to 15% of funds for program administration?
    A. Yes. States may use up to 15% of formula funds allocated 
under the requirements of Section 5311 to cover State administrative 
expenses, at 100% Federal share.

New Starts and Small Starts--Section 5309

    Q. How will FTA distribute major capital investment funding 
provided by the ARRA legislation?
    A. ARRA states that funding priority shall be given to New 
Starts and Small Starts projects currently in construction (which 
FTA interprets as projects with a Full Funding Grant Agreement 
(FFGA) or Project Construction Grant Agreement (PCGA)) or to 
projects able to obligate funds within 150 days of enactment. FTA is 
still determining how the ARRA funding will be distributed to New 
and Small Starts projects. The Act specifies that applicable Chapter 
53 requirements apply. This would include the federal/local share 
provisions; it also means that only projects that have received 
acceptable project ratings in the New or Small Starts process are 
eligible for the funding.
    Q. Will projects with existing FFGAs or PCGAs that receive ARRA 
funds still receive their FY09 apportionments?
    A. FTA will provide projects with their FY09 apportionments as 
identified in the existing FFGAs or PCGAs, to the extent 
appropriated by Congress.

APPENDIX C

[[Page 9672]]



                  FTA Regional and Metropolitan Offices
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Richard H. Doyle, Regional               Robert C. Patrick, Regional
 Administrator, Region 1--Boston,         Administrator, Region 6--Ft.
 Kendall Square, 55 Broadway, Suite       Worth, 819 Taylor Street, Room
 920, Cambridge, MA 02142-1093, Tel.      8A36, Ft. Worth, TX 76102,
 617 494-2055.                            Tel. 817 978-0550.
States served: Connecticut, Maine,       States served: Arkansas,
 Massachusetts, New Hampshire, Rhode      Louisiana, Oklahoma, New
 Island, and Vermont.                     Mexico and Texas.
Brigid Hynes-Cherin, Regional            Mokhtee Ahmad, Regional
 Administrator, Region 2--New York, One   Administrator, Region 7--
 Bowling Green, Room 429, New York, NY    Kansas City, MO, 901 Locust
 10004-1415, Tel. No. 212 668-2170.       Street, Room 404, Kansas City,
                                          MO 64106, Tel. 816 329-3920.
States served: New Jersey, New York      States served: Iowa, Kansas,
                                          Missouri, and Nebraska.
New York Metropolitan Office, Region 2--
 New York, One Bowling Green, Room 428,
 New York, NY 10004-1415, Tel. 212-668-
 2202.
Letitia Thompson, Regional               Terry Rosapep, Regional
 Administrator, Region 3--Philadelphia,   Administrator, Region 8--
 1760 Market Street, Suite 500,           Denver 12300 West Dakota Ave.,
 Philadelphia, PA 19103-4124, Tel. 215    Suite 310, Lakewood, CO 80228-
 656-7100.                                2583, Tel. 720-963-3300.
States served: Delaware, Maryland,       States served: Colorado,
 Pennsylvania, Virginia, West Virginia,   Montana, North Dakota, South
 and District of Columbia.                Dakota, Utah, and Wyoming.
Philadelphia Metropolitan Office,
 Region 3--Philadelphia, 1760 Market
 Street, Suite 500, Philadelphia, PA
 19103-4124, Tel. 215-656-7070.
Washington, DC Office, 1990 K St. NW.,
 Suite 510, Washington, DC 20006,
 Phone: (202) 219-3562 or (202) 219-
 3565, Fax: (202) 219-3545.
Yvette Taylor, Regional Administrator,   Leslie T. Rogers, Regional
 Region 4--Atlanta, 230 Peachtree         Administrator, Region 9--San
 Street, NW. Suite 800, Atlanta, GA       Francisco, 201 Mission Street,
 30303, Tel. 404 562-3500.                Suite 1650, San Francisco, CA
                                          94105-1926, Tel. 415 744-3133.
States served: Alabama, Florida,         States served: American Samoa,
 Georgia, Kentucky, Mississippi, North    Arizona, California, Guam,
 Carolina, Puerto Rico, South Carolina,   Hawaii, Nevada, and the
 Tennessee, and Virgin Islands.           Northern Mariana Islands.
                                         Los Angeles Metropolitan
                                          Office, Region 9--Los Angeles,
                                          888 S. Figueroa Street, Suite
                                          1850, Los Angeles, CA 90017-
                                          1850, Tel. 213-202-3952.
Marisol Simon, Regional Administrator,   Rick Krochalis, Regional
 Region 5--Chicago, 200 West Adams        Administrator, Region 10--
 Street, Suite 320, Chicago, IL 60606,    Seattle, Jackson Federal
 Tel. 312 353-2789.                       Building, 915 Second Avenue,
                                          Suite 3142, Seattle, WA 98174-
                                          1002, Tel. 206 220-7954,
States served: Illinois, Indiana,        States served: Alaska, Idaho,
 Michigan, Minnesota, Ohio, and           Oregon, and Washington.
 Wisconsin.
Chicago Metropolitan Office, Region 5--
 Chicago, 200 West Adams Street, Suite
 320,Chicago, IL 60606, Tel. 312-353-
 2789.
------------------------------------------------------------------------


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 [FR Doc. E9-4745 Filed 3-4-09; 8:45 am]
BILLING CODE 4910-57-P