[Federal Register Volume 77, Number 7 (Wednesday, January 11, 2012)]
[Notices]
[Pages 1785-1856]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-249]



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Vol. 77

Wednesday,

No. 7

January 11, 2012

Part II





Department of Transportation





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Federal Transit Administration





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FTA Fiscal Year 2012 Apportionments, Allocations, and Program 
Information; Notice

Federal Register / Vol. 77 , No. 7 / Wednesday, January 11, 2012 / 
Notices

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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration


FTA Fiscal Year 2012 Apportionments, Allocations, and Program 
Information

AGENCY: Federal Transit Administration (FTA), DOT.

ACTION: Notice.

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SUMMARY: The Federal Transit Administration (FTA) annually publishes 
one or more notices apportioning funds appropriated by law. In some 
cases, if less than a full year of funds is available, FTA publishes 
multiple partial apportionment notices. This notice is the first notice 
announcing partial apportionment for programs funded with Fiscal Year 
(FY) 2012 contract authority because the current authorization of FTA's 
programs provides contract authority for the period October 1, 2011 
through March 31, 2012. Additionally, the Consolidated and Further 
Continuing Appropriations Act, 2012, provides full-year funding for 
FTA's programs funded from the General Fund of the United States 
Treasury, which are Administrative Expenses, the New Starts and 
Research programs and grants to the Washington Metropolitan Area 
Transit Authority. The Appropriations Act, 2012 also provides an 
obligation limitation for the available contract authority and any 
additional contract authority that Congress may make available this 
fiscal year. This notice also provides program guidance and 
requirements; and provides information on several program issues 
important under the current program authorization. Also included are 
tables that show certain discretionary program unobligated (carryover) 
and reapportioned funding from previous years available for obligation 
during FY 2012.

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

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Overview
II. FY 2011 Available Funding for FTA Programs
    A. Available Funding Based on the Consolidated and Further 
Continuing Appropriations Act, 2012 (Minibus), the Surface and Air 
Transportation Programs Extension Act, 2012, and the Safe, 
Accountable, Flexible, Efficient Transportation Equity Act: A Legacy 
for Users (SAFETEA-LU)
    B. Program Funds Set-Aside for Oversight
III. FTA FY 2012 Program Highlights and Changes
    A. Discretionary Grant Program Competitions
    B. Census Designations and Population Counts for the 
Apportionment of Formula Funds
    C. Federal Share for Biodiesel Buses
    D. Vehicle Fuel and Electrical Propulsion Costs as Capital 
Maintenance for Section 5307
IV. 2012 FTA Programs
    A. Metropolitan Planning Program (49 U.S.C. 5305(d))
    B. State Planning and Research Program (49 U.S.C. 5305(e))
    C. Urbanized Area Formula Program (49 U.S.C. 5307)
    D. Clean Fuels Grant Program (49 U.S.C. 5308)
    E. Capital Investment Program (49 U.S.C. 5309)--Fixed Guideway 
Modernization
    F. Capital Investment Program (49 U.S.C. 5309)--Bus and Bus-
Related Facilities
    G. Capital Investment Program (49 U.S.C. 5309)--New Starts
    H. Special Needs of Elderly Individuals and Individuals With 
Disabilities Program (49 U.S.C. 5310)
    I. Non-Urbanized Area Formula Program (49 U.S.C. 5311)
    J. Rural Transportation Assistance Program (49 U.S.C. 
5311(b)(3))
    K. Public Transportation on Indian Reservations Program (49 
U.S.C. 5311(c)(1))
    L. Job Access and Reverse Commute Program (49 U.S.C. 5316)
    M. New Freedom Program (49 U.S.C. 5317)
    N. Paul S. Sarbanes Transit in Parks Program (49 U.S.C. 5320)
    O. Alternatives Analysis Program (49 U.S.C. 5339)
    P. Growing States and High Density States Formula (49 U.S.C. 
5340)
    Q. Over-the-Road Bus Accessibility Program (Section 3038, Pub. 
L. 105-85)
    R. National Research Program (49 U.S.C. 5314)
    S. Washington Metropolitan Area Transit Authority Grants
V. FTA Policy and Procedures for FY 2012 Grants Requirements
    A. Automatic Pre-Award Authority To Incur Project Costs
    B. Letter of No Prejudice (LONP) Policy
    C. FTA FY 2012 Annual List of Certifications and Assurances
    D. FHWA Funds Used for Transit Purposes
    E. Civil Rights Requirements
    F. Deferred Local Share
    G. Technical Assistance
VI. Tables
    1. FTA FY 2012 Appropriations and Apportionments for Grant 
Programs
    2. FTA FY 2012 Section 5303 and 5304 Metropolitan Planning 
Program and State Planning and Research Program Apportionments
    3. FTA FY 2012 Section 5307 and Section 5340 Urbanized Area 
Apportionments
    3-A. Census 2000 Urbanized Areas 200,000 or More in Population 
Eligible To Use Section 5307 Funds for Operating Assistance
    4. FTA FY 2012 Section 5307 Apportionment Formula
    5. FTA FY 2012 Formula Programs Apportionments Data Unit Values
    6. FTA FY 2012 Small Transit Intensive Cities Performance Data 
and Apportionments
    7. FTA Section 5308 Prior Year Unobligated Clean Fuels 
Allocations
    8. FTA FY 2012 Section 5309 Fixed Guideway Modernization 
Apportionments
    9. FTA FY 2012 Section 5309 Fixed Guideway Modernization Program 
Apportionment Formula
    10. FTA FY 2012 Section 5309 Bus and Bus Related Equipment and 
Facilities Allocations
    11. FTA Section 5309 Prior Year Unobligated Bus and Bus Related 
Equipment and Facilities Allocations
    12. FTA FY 2012 Section 5309 New Starts Allocations
    13. FTA Section 5309 Prior Year Unobligated New Starts Program 
Allocations
    14. FTA FY 2012 Section 5310 Special Needs for Elderly 
Individuals and Individuals With Disabilities Apportionments
    15. FTA FY 2012 Section 5311 and Section 5340 Nonurbanized Area 
Formula Apportionments, and Rural Transportation Assistance Program 
(RTAP) Allocations
    16. FTA FY 2012 Section 5311(c) Prior Year Unobligated Public 
Transportation on Indian Reservations Allocations
    17. FTA FY 2012 Section 5316 Job Access and Reverse Commute 
(JARC) Apportionments
    18. FTA FY 2012 Section 5317 New Freedom Apportionments
    19. FTA Section 5339 Prior Year Unobligated Alternatives 
Analysis Allocations
VII. Appendix

I. Overview

    FTA's current authorization, the Safe, Accountable, Flexible, 
Efficient, Transportation Equity Act: A Legacy for Users (SAFETEA-LU), 
expired September 30, 2009. Since that time, Congress has enacted short 
term extensions allowing FTA to continue its current programs. The 
Surface and Air Transportation Programs Extension Act of 2011 (Pub. L. 
112-30, Div. C), hereinafter (``Temporary Authorization, 2012''), 
continues the authorization of the Federal transit programs of the U.S. 
Department of Transportation (DOT) through March 31, 2012. It extends 
contract authority for the Formula and Bus Grants programs at 
approximately

[[Page 1787]]

fifty percent of the FY 2011 levels until March 31, 2012. Additionally, 
FTA's full-year appropriations bill (Pub. L. 112-055, the Consolidated 
and Further Continuing Appropriations Act, 2012), hereinafter 
(``Appropriations Act, 2012'') was enacted in November, giving FTA 
appropriated resources for Administrative Expenses, Capital Investment 
Grants, and Research programs and grants to the Washington Metropolitan 
Area Transportation Authority. The Appropriations Act, 2012 also 
provides a full fiscal year obligation limitation on any contract 
authority that is made available to FTA programs funded from the Mass 
Transit Account of the Highway Trust Fund during this fiscal year.
    This document apportions the FY 2012 authorized contract authority 
among potential program recipients according to statutory formulas in 
49 U.S.C. Chapter 53. FTA will issue a supplemental notice at a later 
date if additional contract authority becomes available.
    The notice does not include reprogramming of discretionary funds 
that lapsed to the designated project as of September 30, 2011 or the 
allocation of FY 2012 discretionary resources, with the exception of 
Small Starts allocations.
    For each FTA program included in this notice, we have provided 
relevant information about the FY 2012 funding currently available, 
program requirements, period of availability, and other related program 
information and highlights, as appropriate. A separate section of the 
document provides information on program requirements and guidance that 
are applicable to all FTA programs. For additional information on FY 
2012 and prior year annual apportionments, please visit 
www.fta.dot.gov/grants/12853.html.

II. FY 2012 Funding for FTA Programs

A. Funding Based on the Consolidated and Further Continuing 
Appropriations Act, 2012 (Pub. L. 112-55), and the Surface and Air 
Transportation Programs Extension Act of 2011 (Pub. L. 112-30)

    The Surface and Air Transportation Programs Extension Act of 2011 
(Temporary Authorization, 2012) continues the authorization of the 
Federal transit programs of the U.S. Department of Transportation (DOT) 
through March 31, 2012, and provides contract authority for these 
programs equal to approximately one half of the amounts available in FY 
2011. The fiscal year 2012 Appropriations Act provides full-year 
funding for FTA programs funded from the General Fund of the United 
States Treasury and a full year obligation limitation on any contract 
authority that is made available during this fiscal year.
    Table 1 of this document shows the funding that is currently 
available for the FTA programs. In addition to current year contract 
authority and appropriated funds, available funding also includes a 
small amount of additional contract authority not allocated in fiscal 
year 2011 and recoveries of lapsed funds. The amounts shown in Table 1 
also include applicable reductions for set asides and takedowns. This 
Federal Register notice includes tables of apportionments and 
allocations for FTA formula programs as well as carryover discretionary 
funds based on applicable law.

B. Program Funds Set-Aside for Project Management Oversight

    As background, Section 5327 of title 49, U.S.C., authorizes the 
takedown of funds from FTA programs for project management oversight. 
Section 5327 provides oversight takedowns at the following levels: 0.5 
percent of Planning funds, 0.75 percent of Urbanized Area Formula 
funds, 1 percent of Capital Investment funds, 0.5 percent of Special 
Needs of Elderly Individuals and Individuals with Disabilities formula 
funds, 0.5 percent of Non-urbanized Area Formula funds, and 0.5 percent 
of the Paul S. Sarbanes Transit in the Parks Program funds (formerly 
the Alternative Transportation in the Parks and Public Lands Program). 
In addition, the Appropriations Act, 2012 authorizes an oversight 
takedown of 1 percent from the Job Access and Reverse Commute Program.
    The funds are used to provide necessary oversight activities, 
including oversight of the construction of any major capital project 
under these statutory programs; to conduct State Safety Oversight, drug 
and alcohol, civil rights, procurement systems, management, planning 
certification and, financial reviews and audits, as well as evaluations 
and analyses of grantee specific problems and issues; and to provide 
technical assistance to correct deficiencies identified in compliance 
reviews and audits.

III. FTA FY 2012 Program Highlights and Changes

A. Discretionary Grant Program Competitions

    FTA's discretionary grant programs that are funded from the General 
Fund of the United States Treasury (Section 5309 New Starts and the 
National Research Program) are authorized under chapter 53 of title 49, 
U.S.C., and funds are appropriated to carry out project activities in 
the Appropriation Act, 2012. Discretionary grant programs for which 
funding is derived from the Mass Transit Account of the Highway Trust 
Fund (Section 5308 Clean Fuels, 5309 Bus and Bus Facilities, 5311(c) 
Tribal Transit, 5320 Paul S. Sarbanes Transit in Parks, 5339 
Alternatives Analysis, and Section 3038, Pub. L. 105-85 Over the Road 
Bus Accessibility) are provided with contract authority pursuant to 49 
U.S.C. 5338(f)(1). At this time only half of the FY 2011 amount is 
available. Programs that were funded with unallocated Section 5309 bus 
funds in FY 2011 will again be allocated through a competitive process 
in FY 2012. Information about discretionary programs, including 
currently available funding amounts, can be found under the relevant 
subheading within this notice.
    FTA anticipates publishing individual or combined Notices of 
Funding Availability (NOFAs) for discretionary programs in the Federal 
Register during the first quarter of calendar year 2012. Specific 
program requirements and selection criteria will be published in the 
relevant NOFAs. Applications will be due usually within 45-75 days from 
the date of publication. See the subheading for the Transit in Parks 
program for a specific exception relating to that program's schedule. 
New Starts and Small Starts program funds are allocated to specific 
projects by Congress after an extensive review and qualification 
process, and will not be published as a NOFA in the Federal Register.

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[GRAPHIC] [TIFF OMITTED] TN11JA12.000

B. Census Designations and Population Counts Used for the Apportionment 
of Formula Funds

    Formula allocations for Fiscal Year 2012 will continue to be based 
on 2000 Census data and designations. The 2010 Census Urbanized Area 
(UZA) designations and populations, which are expected to be released 
by the Bureau of the Census during FY 2012, will be used for the 
apportionment of FTA formula funds no earlier than FY 2013. For 
information on how the 2010 Census may affect formula funding 
recipients, FTA has published a summary of the potential impacts on its 
Web site at http://www.fta.dot.gov/grants/12853_12408.html.

C. Federal Share for Biodiesel Buses

    Section 164 of the Consolidated Appropriations Act, 2008, the 
Omnibus Act, 2009 and the Consolidated Appropriations Act, 2010 allowed 
a 90 percent Federal share for biodiesel buses and for the net capital 
cost of factory-installed or retrofitted hybrid electric propulsion 
systems and any equipment related to such a system. The Department of 
Defense and Full-Year Continuing Appropriations Act, 2011 continued the 
provision for fiscal year 2011. However, the Appropriations Act, 2012, 
does not contain similar language. Therefore, the increased Federal 
share for biodiesel buses and for the net capital cost of factory-
installed or retrofitted hybrid electric propulsion systems and any 
equipment related to such a system is no longer authorized through the 
appropriation process for grants awarded in fiscal year 2012.

D. Vehicle Fuel and Electrical Propulsion Costs as Capital Maintenance 
for Section 5307

    The Appropriations Act, 2012, permits FTA to treat fuel costs for 
vehicle operations, including utility costs for the propulsion of 
electrical vehicles, as a capital maintenance item for grants made in 
FY 2012 under the Urbanized Area Formula Program, up to a total of 
$100,000,000. Since total obligations for this purpose are limited to 
$100,000,000, the use of funds for this purpose will be limited in 
amount, and will be available only to program recipients that respond 
to an upcoming announcement posted at www.grants.gov. Recipients are 
advised that this provision does not provide any funding in addition to 
their Section 5307 program apportionment. Additional information on 
this provision can be found in IV-C. Urbanized Area Formula Program 
(49.U.S.C. 5307).

IV. FTA Programs

    This section of the notice provides the available FY 2012 funding 
to date and/or other important program-related information for eleven 
FTA formula and discretionary programs that are contained in this 
notice. Funding and/or other important information for each of the 
formula programs is presented immediately below. This includes program 
apportionments, program requirements, length of time FY 2012 funding is 
available for obligation to the recipient and other significant program 
information.

A. Metropolitan Planning Program (49 U.S.C. 5305(d))

    Section 5305(d) authorizes Federal funding to support a 
cooperative, continuous, and comprehensive planning program for 
transportation

[[Page 1789]]

investment decision-making at the metropolitan area level. The specific 
requirements of metropolitan transportation planning are set forth in 
49 U.S.C. 5303 and further explained in 23 CFR Part 450, as 
incorporated by reference in 49 CFR Part 613, Statewide Transportation 
Planning; Metropolitan Transportation Planning. State Departments of 
Transportation are direct recipients of funds allocated by FTA, which 
are then sub-allocated to Metropolitan Planning Organizations (MPOs), 
for planning activities that support the economic vitality of the 
metropolitan area, especially by enabling global competitiveness, 
productivity, and efficiency; increasing the safety and security of the 
transportation system for motorized and non-motorized users; increasing 
the accessibility and mobility options available to people and for 
freight; protecting and enhancing the environment, promoting energy 
conservation, and improving quality of life; enhancing the integration 
and connectivity of the transportation system, across and between 
modes, for people and freight; promoting efficient transportation 
system management and operation; and emphasizing the preservation of 
the existing transportation system. This funding must support work 
elements and activities resulting in balanced and comprehensive 
intermodal transportation planning for the movement of people and goods 
in the metropolitan area. Comprehensive transportation planning is not 
limited to transit planning or surface transportation planning, but 
also encompasses the relationships among land use and all 
transportation modes, without regard to the programmatic source of 
Federal assistance. Eligible work elements or activities include, but 
are not limited to studies relating to management, mobility management, 
planning, operations, capital requirements, and economic feasibility; 
evaluation of previously funded projects; peer reviews and exchanges of 
technical data, information, assistance, and related activities in 
support of planning and environmental analysis among MPOs and other 
transportation planners; work elements and related activities 
preliminary to and in preparation for constructing, acquiring, or 
improving the operation of facilities and equipment; development of 
coordinated public transit human services transportation plans. An 
exhaustive list of eligible work activities is provided in FTA Circular 
8100.1C, Program Guidance for Metropolitan Planning and State Planning 
and Research Program Grants, dated September 1, 2008. For more about 
the Metropolitan Planning Program and the FTA Circular 8100.1C, contact 
Victor Austin, Office of Planning and Environment at (202) 366-2996.
1. FY 2012 Funding Availability
    The Temporary Authorization, 2012 provides $46,943,600 in contract 
authority for the period October 1, 2011 through March 31, 2012 to the 
Metropolitan Planning Program (49 U.S.C. 5305(d) to support 
metropolitan transportation planning activities set forth in 49 U.S.C. 
5303. Thus far, the total amount apportioned for the Metropolitan 
Planning Program to States for MPOs' use in urbanized areas (UZAs) is 
$46,925,691, as shown in the table below, after the addition of 
available FY 2011 contract authority and reapportioned funds and 
deductions for oversight.

                      Metropolitan planning program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.....................................     $46,943,600
FY 2011 Contract Authority..............................         195,331
Oversight Deductions....................................        -235,695
Reapportioned Funds.....................................          22,455
                                                         ---------------
    Total Apportioned...................................      46,925,691
------------------------------------------------------------------------

    States' apportionments for this program are displayed in Table 2.
2. Basis for Formula Apportionments
    As specified in law, 82.72 percent of the amounts authorized for 
Section 5305 are made available to the Metropolitan Planning program. 
FTA apportions Metropolitan Planning funds to the States according to a 
statutory formula. Eighty percent of the funds are apportioned to the 
States based on the most recent decennial Census for each State's UZA 
population. The remaining 20 percent is provided to the States as a 
supplemental apportionment based on an FTA administrative formula to 
address planning needs in larger, more complex UZAs. The amount 
published for each State includes the supplemental allocation.
3. Program Requirements
    The State allocates Metropolitan Planning funds to MPOs in UZAs or 
portions thereof to provide funds for planning projects included in a 
one or two year program of planning work activities (the Unified 
Planning Work Program, or UPWP) that includes multimodal systems 
planning activities spanning both highway and transit planning topics. 
Each State has either reaffirmed or developed, in consultation with 
their MPOs, an allocation formula among MPOs within the State, based on 
the 2000 Census. The allocation formula among MPOs in each State may be 
changed annually, but any change requires approval by the FTA regional 
office before grant approval. Program guidance for the Metropolitan 
Planning Program is found in FTA Circular 8100.1C, Program Guidance for 
Metropolitan Planning and State Planning and Research Program Grants, 
dated September 1, 2008. For more about the Metropolitan Planning 
Program and the FTA Circular 8100.1C, contact Victor Austin, Office of 
Planning and Environment at (202) 366-2996.
4. Period of Availability
    The funds apportioned under the Metropolitan Planning program to 
each State remain available for obligation to recipients for four 
fiscal years--which includes the year of apportionment plus three 
additional years. Any FY 2012 apportioned funds that remain unobligated 
at the close of business on September 30, 2015 will revert to FTA for 
reapportionment under the Metropolitan Planning Program.
5. Consolidated Planning Grants
    FTA and FHWA planning funds under both the Metropolitan Planning 
and State Planning and Research Programs can be consolidated into a 
single consolidated planning grant (CPG), awarded by either FTA or 
FHWA. The CPG eliminates the need to monitor individual fund sources, 
if several have been used, and ensures that the oldest funds will 
always be used first. Alternatively, FTA planning funds may be 
transferred to FHWA to be administered as a combined grant.
    Under the CPG, States can report metropolitan planning program 
expenditures (to comply with the Single Audit Act) for both FTA and 
FHWA under the Catalogue of Federal Domestic Assistance number for 
FTA's Metropolitan Planning Program (20.505). Additionally, for States 
with an FHWA Metropolitan Planning (PL) fund-matching ratio greater 
than 80 percent, the State can waive the 20 percent local share 
requirement, with FTA's concurrence, to allow FTA funds used for 
metropolitan planning in a CPG to be granted at the higher FHWA rate. 
For some States, this Federal match rate can exceed 90 percent.
    States interested in transferring planning funds between FTA and 
FHWA should contact the FTA Regional Office or FHWA Division Office for 
more detailed procedures. Current guidelines are included in Federal 
Highway Administration Memorandum

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dated July 12, 2007, ``Information: Final Transfers to Other Agencies 
that Administer Title 23 Programs.''
    For further information on CPGs, contact Nancy Grubb, Office of 
Budget and Policy, FTA, at (202) 366-1635.

B. State Planning and Research Program (49 U.S.C. 5305(e))

    This program provides financial assistance to States for statewide 
transportation planning and other technical assistance activities, 
including supplementing the technical assistance program provided 
through the Metropolitan Planning program. The specific requirements of 
Statewide transportation planning are set forth in 49 U.S.C. 5304 and 
further explained in 23 CFR Part 450 as referenced in 49 CFR Part 613, 
Statewide Transportation Planning; Metropolitan Transportation 
Planning; Final Rule. This funding must support work elements and 
activities resulting in balanced and comprehensive intermodal 
transportation planning for the movement of people and goods. 
Comprehensive transportation planning is not limited to transit 
planning or surface transportation planning, but also encompasses the 
relationships among land use and all transportation modes, without 
regard to the programmatic source of Federal assistance. For more 
information, contact Victor Austin, Office of Planning and Environment 
at (202) 366-2996.
1. FY 2012 Funding Availability
    The Temporary Authorization, 2012 provides $9,806,400 in contract 
authority for the period October 1, 2011 through March 31, 2012 to the 
State Planning and Research Program (49 U.S.C. 5305). Thus far, the 
total amount apportioned for the State Planning and Research Program 
(SPRP) is $9,956,684 as shown in the table below, after the addition of 
available FY 2011 contract authority and reapportioned funds and the 
deduction for oversight (authorized by 49 U.S.C. 5327).

                   State Planning and Research Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.....................................      $9,806,400
FY 2011 Contract Authority..............................          40,804
Oversight Deduction.....................................         -49,236
Reapportioned Funds.....................................         158,716
                                                         ---------------
    Total Apportioned...................................       9,956,684
------------------------------------------------------------------------

    State apportionments for this program are displayed in Table 2.
2. Basis for Apportionment Formula
    As specified in law, 17.28 percent of the amounts authorized for 
Section 5305 are allocated to the State Planning and Research program. 
FTA apportions funds to States by a statutory formula that is based on 
the most recent decennial Census data available, and the State's UZA 
population as compared to the UZA population of all States.
3. Requirements
    Funds are provided to States for Statewide transportation planning 
programs. These funds may be used for a variety of purposes such as 
planning, technical studies and assistance, demonstrations, and 
management training. In addition, a State may authorize a portion of 
these funds to be used to supplement Metropolitan Planning funds 
allocated by the State to its UZAs, as the State deems appropriate. 
Program guidance for the State Planning and Research program is found 
in FTA Circular 8100.1C. This funding must support work elements and 
activities resulting in balanced and comprehensive intermodal 
transportation planning for the movement of people and goods. 
Comprehensive transportation planning is not limited to transit 
planning or surface transportation planning, but also encompasses the 
relationships among land use and all transportation modes, without 
regard to the programmatic source of Federal assistance. Eligible work 
elements or activities include, but are not limited to studies relating 
to management, planning, operations, capital requirements, and economic 
feasibility; evaluation of previously funded projects; peer reviews and 
exchanges of technical data, information, assistance, and related 
activities in support of planning and environmental analysis; work 
elements and related activities preliminary to and in preparation for 
constructing, acquiring, or improving the operation of facilities and 
equipment. An exhaustive list of eligible work activities is provided 
in FTA Circular 8100.1C, Program Guidance for Metropolitan Planning and 
State Planning and Research Program Grants, dated September 1, 2008. 
For more information, contact Victor Austin, Office of Planning and 
Environment at (202) 366-2996.
4. Period of Availability
    The funds apportioned under the State Planning and Research program 
to each State remain available for obligation for four fiscal years, 
which include the year of apportionment plus three additional fiscal 
years. Any apportioned funds that remain unobligated at the close of 
business on September 30, 2015, will revert to FTA for reapportionment 
under the State Planning and Research Program.

C. Urbanized Area Formula Program (49 U.S.C. 5307)

    Section 5307 authorizes Federal capital assistance, and in some 
cases, operating assistance for public transportation in urbanized 
areas. An urbanized area (UZA) is an area with a population of 50,000 
or more that has been defined and designated as such in the 2000 Census 
by the U.S. Census Bureau. The Urbanized Area Formula Program funds may 
also be used to support planning activities, and may supplement 
planning projects funded under the Metropolitan Planning program. 
Urbanized Area Formula Program funds used for planning must be shown in 
the Unified Planning Work Program (UPWP) for MPO(s) with responsibility 
for that area. Funding is apportioned directly to each UZA with a 
population of 200,000 or more, and to the State Governors for UZAs with 
populations between 50,000 and 199,999. Eligible applicants are limited 
to entities designated as recipients in accordance with 49 U.S.C. 
5307(a)(2) and other public entities with the consent of the Designated 
Recipient. Generally, operating assistance is not an eligible expense 
for UZAs with populations of 200,000 or more. However, there are 
several exceptions to this restriction. The exceptions are described in 
section 3(d)(5) below. For more information about the Urbanized Area 
Formula Program contact Adam Schildge or Elan Flippin, Office of 
Transit Programs, at (202) 366-0778.
1. FY 2012 Funding Availability
    The Temporary Authorization, 2012 provides $2,080,182,500 in 
contract authority for the period October 1, 2011 through March 31, 
2012 to the Urbanized Area Formula Program (49 U.S.C. 5307). Thus far, 
the total amount apportioned for the Urbanized Area Formula Program is 
$2,280,481,376 as shown in the table below, after the addition of 
available FY 2011 contract authority and reapportioned funds and the 
0.75 percent deduction for oversight (authorized by 49 U.S.C. 5327), 
and including funds apportioned to UZAs pursuant to Section 5340 for 
Growing States and High Density States.

                     Urbanized Area Formula Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.................................    a $2,080,182,500
FY 2011 Contract....................................           8,655,561
Authority...........................................
Oversight Deduction.................................         -15,666,286

[[Page 1791]]

 
Section 5340 Funds Added............................         196,585,277
Reapportioned Funds.................................          10,724,324
                                                     -------------------
    Total Apportioned...............................       2,280,481,376
------------------------------------------------------------------------
a Includes one percent set-aside for Small Transit Intensive Cities
  Formula.

    Table 3 displays the amounts apportioned under the Urbanized Area 
Formula Program.
2. Basis for Formula Apportionment
    FTA apportions Urbanized Area Formula Program funds based on 
legislative formulas. 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 4 includes detailed information about the 
formulas.
    To calculate a UZA's FY 2012 apportionment, FTA used population and 
population density statistics from the 2000 Census and (when 
applicable) validated mileage and transit service data from transit 
providers' 2010 National Transit Database (NTD) Report Year. Consistent 
with 49 U.S.C. 5336(b), FTA used 60 percent of the directional route 
miles attributable to the Alaska Railroad passenger operations system 
to calculate the apportionment for the Anchorage, Alaska UZA.
    FTA has calculated dollar unit values for the formula factors used 
in the Urbanized Area Formula Program apportionment calculations. These 
values represent the amount of money each unit of a factor is worth in 
this year's apportionment. The unit values change each year, based on 
all of the data used to calculate the apportionments. The dollar unit 
values for FY 2012 are displayed in Table 5. To replicate the basic 
formula component of a UZA's apportionment, multiply the dollar unit 
value by the appropriate formula factor (i.e., the population, 
population x population density), and when applicable, data from the 
NTD (i.e., route miles, vehicle revenue miles, passenger miles, and 
operating cost).
    In FY 2012, one percent of funds appropriated for Section 5307, or 
$20,801,825 based on Temporary Authorization, 2012 and Appropriations 
Act, 2012, is set aside for Small Transit Intensive Cities (STIC). FTA 
apportions these funds to UZAs under 200,000 in population that operate 
at a level of service equal to or above the industry average level of 
service for all UZAs with a population of at least 200,000, but not 
more than 999,999, in one or more of six performance categories: 
passenger miles traveled per vehicle revenue mile, passenger miles 
traveled per vehicle revenue hour, vehicle revenue miles per capita, 
vehicle revenue hours per capita, passenger miles traveled per capita, 
and passengers per capita.
    The data for these categories for the purpose of FY 2012 
apportionments comes from the NTD reports for the 2010 reporting year. 
This data is used to determine a UZA's eligibility under the STIC 
formula, and is also used in the STIC apportionment calculations. 
Because these performance data change with each year's NTD reports, the 
UZAs eligible for STIC funds and the amount each receives may vary each 
year. In FY 2012, FTA apportioned $55,976 for each performance factor/
category for which the urbanized area exceeded the national average for 
UZAs with a population of at least 200,000 but not more than 999,999.
    In addition to the funds apportioned to UZAs, according to the 
Section 5307 formula factors contained in 49 U.S.C. 5336, FTA also 
apportions funds to urbanized areas under Section 5340 Growing States 
and High Density States formula factors. In FY 2012, FTA apportions 
$79,851,565 to UZAs in growing States and $116,733,712 to UZAs in High 
Density States. Half of the funds appropriated for Section 5340 are 
available to Growing States and half to High Density States. FTA 
apportions Growing States funds by a formula based on State population 
forecasts for 15 years beyond the most recent Census. FTA distributes 
the amounts apportioned for each State between UZAs and nonurbanized 
areas based on the ratio of urbanized/nonurbanized population within 
each State in the 2000 census, and to UZAs proportionately based on UZA 
population in the 2000 census (because population estimates are not 
available at the UZA level). FTA apportions the High Density States 
funds to States with population densities in excess of 370 persons per 
square mile. These funds are apportioned only to UZAs within those 
States. FTA pro-rates each UZA's share of the High Density funds based 
on the population of the UZAs in the State in the 2000 census.
    FTA cannot provide unit values for the Growing States or High 
Density formulas because the allocations to individual States and 
urbanized areas are based on their relative population data, rather 
than on a national per capita basis.
    Based on language in the conference report accompanying SAFETEA-LU, 
FTA is to show a single apportionment amount for Section 5307, STIC and 
Section 5340. FTA shows a single Section 5307 apportionment amount for 
each UZA in Table 3, the Urbanized Area Formula apportionments. The 
amount includes funds apportioned based on the Section 5307 formula 
factors, any STIC funds, and any Growing States and High Density States 
funding allocated to the area. FTA uses separate formulas to calculate 
and generate the respective apportionment amounts for the Section 5307, 
STIC and Section 5340. For technical assistance purposes, the UZAs that 
received STIC funds are listed in Table 6. FTA will make available 
breakouts of the funding allocated to each UZA under these formulas, 
upon request to the regional office.
3. Program Requirements
    Program guidance for the Urbanized Area Formula Program is 
currently found in FTA Circular 9030.1D, Urbanized Area Formula 
Program: Grant Application Instructions, dated May 1, 2010, and 
supplemented by additional information or changes provided in this 
document.
i. Urbanized Area Formula Apportionments to Governors
    For small UZAs, those with a population of less than 200,000, FTA 
apportions funds to the Governor of each State for distribution. A 
single total Governor's apportionment amount for the Urbanized Area 
Formula, STIC, and Growing States and High Density States is shown in 
the Urbanized Area Formula Apportionment Table 3. The table also shows, 
for informational purposes, the apportionment amount that would be 
attributable by formula to each small UZA within the State. The 
Governor is not bound by the small UZA amounts published for 
informational purposes in this notice and shall determine the sub-
allocation of funds among the small UZAs. The Governor's sub-allocation 
should be sent to the appropriate FTA Regional Office before grants are 
awarded.
ii. Transit Enhancements
    Section 5307(d)(1)(K) requires that one percent of Section 5307 
funds apportioned to UZAs with populations of 200,000 or more be spent 
on eligible transit enhancement activities or

[[Page 1792]]

projects. This requirement is now treated as a certification, rather 
than as a set-aside as was the case under the Transportation Equity Act 
for the 21st Century (TEA-21). Designated recipients in UZAs with 
populations of 200,000 or more certify they are spending not less than 
one percent of Section 5307 funds for transit enhancements. In 
addition, Designated Recipients must submit an annual report on how 
they spent the money with the Federal fiscal year's final quarterly 
progress report in TEAM-Web. The report should include the following 
elements: (1) Grantee name; (2) UZA name and number; (3) FTA project 
number; (4) transit enhancement category; (5) brief description of 
enhancement and progress towards project implementation; (6) activity 
line item code from the approved budget; and (7) amount awarded by FTA 
for the enhancement. The list of transit enhancement categories and 
activity line item (ALI) codes may be found in the table of Scope and 
ALI codes on TEAM-Web, which can be accessed at http://FTATEAMWeb.fta.dot.gov.
    The term ``transit enhancement'' includes projects or project 
elements that are designed to enhance public transportation service or 
use and are physically or functionally related to transit facilities. 
Eligible enhancements include the following: (1) Historic preservation, 
rehabilitation, and operation of historic mass transportation 
buildings, structures, and facilities (including historic bus and 
railroad facilities); (2) bus shelters; (3) landscaping and other 
scenic beautification, including tables, benches, trash receptacles, 
and street lights; (4) public art; (5) pedestrian access and walkways; 
(6) bicycle access, including bicycle storage facilities and installing 
equipment for transporting bicycles on mass transportation vehicles; 
(7) transit connections to parks within the recipient's transit service 
area; (8) signage; and (9) enhanced access for persons with 
disabilities to mass transportation.
    It is the responsibility of the MPO to determine how the one-
percent for transit enhancements will be allotted to transit projects. 
The one percent minimum requirement does not preclude more than one 
percent from being expended in a UZA for transit enhancements. However, 
activities that are only eligible as enhancements--in particular, 
operating costs for historic facilities--may be assisted only within 
the one-percent funding level.
iii. Transit Security Projects
    Consistent with section 5307(d)(1)(J), each recipient of Urbanized 
Area Formula funds must certify that of the amount received each fiscal 
year, it will expend at least one percent on ``public transportation 
security projects'' or that it has decided the expenditure is not 
necessary. For applicants not eligible to receive Section 5307 funds 
for operating assistance, only capital security projects may be funded 
with the one percent. SAFETEA-LU, however, expanded the definition of 
eligible ``capital'' projects to include specific crime prevention and 
security activities, including: (1) Projects to refine and develop 
security and emergency response plans; (2) projects aimed at detecting 
chemical and biological agents in public transportation; (3) the 
conduct of emergency response drills with public transportation 
agencies and local first response agencies; and (4) security training 
for public transportation employees, but excluding all expenses related 
to operations, other than such expenses incurred in conducting 
emergency drills and training. The one percent may also include 
security expenditures included within other capital activities, and, 
where the recipient is eligible, operating assistance.
    FTA is often called upon to report to Congress and others on how 
grantees are expending Federal funds for security enhancements. To 
facilitate tracking of grantees' security expenditures, which are not 
always evident when included within larger capital or operating 
activity line items in the grant budget, we have established a non-
additive (``non-add'') scope code for security expenditures--Scope 991-
00. The non-add scope is to be used to aggregate activities included in 
other scopes, and it does not increase the budget total. Section 5307 
grantees should include this non-add scope in the project budget for 
each new Section 5307 grant application or amendment. Under this non-
add scope, the applicant should repeat the full amount of any of the 
line items in the budget that are exclusively for security and include 
the portion of any other line item in the project budget that is 
attributable to security, using under the non-add scope the same line 
item used in the project budget. The grantee can modify the ALI 
description or use the extended text feature, if necessary, to describe 
the security expenditures.
    The grantee must provide information regarding its use of the one 
percent for security as part of each Section 5307 grant application, 
using a special screen in TEAM-Web. If the grantee has certified that 
it is not necessary to expend one percent for security, the Section 
5307 grant application must include information to support that 
certification. FTA will not process an application for a Section 5307 
grant until the security information is complete.
iv. FY 2012 Operating Assistance
    UZAs under 200,000 in population may use Section 5307 funds for 
operating assistance. In addition, Section 5307, as amended, allows 
some UZAs with a population of 200,000 or more to use Urbanized Area 
Formula funds for operating assistance under certain conditions. 
Temporary Authorization, 2012 extends that eligibility until March 31, 
2012. The specific provisions allowing the limited use of operating 
assistance in large UZAs are as follows:
    a. Section 5307(b)(1)(E) provides for grants for the operating 
costs of equipment and facilities for use in public transportation in 
the Evansville, IN-KY urbanized area, for a portion or portions of the 
UZA if ``the portion'' of the UZA includes only one State, the 
population of ``the portion'' is less than 30,000, and the grants will 
be not used to provide public transportation outside of ``the portion'' 
of the UZA.
    b. Section 5307(b)(1)(F) provides operating costs of equipment and 
facilities for use in public transportation for local governmental 
authorities in areas which adopted transit operating and financing 
plans that became a part of the Houston, Texas, UZA as a result of the 
2000 decennial census of population, but lie outside the service area 
of the principal public transportation agency that serves the Houston 
UZA.
    c. Section 5336(a)(2) prescribes the formula to be used to 
apportion Section 5307 funds to UZAs with population of 200,000 or 
more. SAFETEA-LU amended 5336(a)(2) to add language that stated, ``* * 
* except that the amount apportioned to the Anchorage urbanized area 
under subsection (b) shall be available to the Alaska Railroad for any 
costs related to its passenger operations.'' This language has the 
effect of directing that funds apportioned to the Anchorage urbanized 
area, under the fixed guideway tiers of the Section 5307 apportionment 
formula, be made available to the Alaska Railroad, and that these funds 
may be used for any capital or operating costs related to its passenger 
operations.
    d. Section 3027(c)(3) of TEA-21, as amended (49 U.S.C. 5307 note), 
provides an exception to the restriction

[[Page 1793]]

on the use of operating assistance in a UZA with a population of 
200,000 or more, by allowing transit providers/grantees that provide 
service exclusively to elderly persons and persons with disabilities 
and that operate 20 or fewer vehicles to use Section 5307 funds 
apportioned to the UZA for operating assistance. The total amount of 
funding made available for this purpose under Section 3027(c)(3) is 
$1.4 million. Transit providers/grantees eligible under this provision 
have already been identified and notified.
    e. Section 5307(b)(2), as amended, allows, in FYs 2008 through 2011 
and for the period October 1, 2011 through March 31, 2012, (1) UZAs 
that grew in population from under 200,000 to over 200,000 or that were 
under 200,000 but merged into another urbanized area and the population 
is over 200,000, as a result of the 2000 Census to use Section 5307 
funds for operating assistance in an amount up to 50 percent of the 
grandfathered amount for FY 2002 funds; (2) Areas that were 
nonurbanized under the 1990 Census and became urbanized, as a result of 
the 2000 Census, to use no more than 50 percent of the amount 
apportioned to the area for FY 2003 for operating assistance; and (3) 
nonurbanized areas under the 1990 Census that merged into urbanized 
areas over 200,000, as a result of the 2000 Census, to use 50 percent 
of the amount the area received in FY 2002 Section 5311 funding for 
operating assistance. These allowances are shown in Table 3-A.
v. Treatment of Fuel and Electrical Propulsion Costs as Capital 
Maintenance
    The Appropriations Act, 2012, permits FTA to treat fuel costs for 
vehicle operations, including utility costs for the propulsion of 
electrical vehicles, as a capital maintenance item for grants made in 
FY 2012 under the Urbanized Area Formula Program, up to a total of 
$100,000,000. The treatment of these costs as capital maintenance items 
means that they may be eligible for reimbursement under this program at 
an 80/20 matching rate. As explained in the preceding section, fuel 
costs are also eligible for reimbursement as an operating expense for 
UZAs under 200,000 in population, and under other special conditions 
noted above, but require a 50 percent match.
    Since total obligations for this purpose are limited to 
$100,000,000, the use of funds for this purpose will be limited in 
amount, and will be available only to program recipients that respond 
to an upcoming announcement posted at www.grants.gov. Designated 
recipients for each Urbanized Area are directed to respond to this 
announcement with the dollar amount, out of their annual urbanized area 
apportionment funding, that they would like to apply to these costs for 
grants made in Fiscal Year 2012. While this provision applies to grants 
made during FY 2012, it is not limited to grants made using FY 2012 
apportioned funds and may also include grants made during FY 2012 that 
contain prior year funds.
    Recipients are directed to submit a request for the maximum dollar 
amount that they would elect to apply to capitalized fuel or propulsion 
under this provision based on the anticipated availability of full FY 
2012 funding. Funds will be distributed as dollar caps for an 
interested urbanized area's Section 5307 apportionment. FTA will base 
the amount of the cap it allocates to each urbanized area that responds 
to the announcement on a fixed percentage applied to the Section 5307 
apportionment of that urbanized area, not to exceed the amount 
requested. However, if all urbanized area 5307 recipients respond to 
the announcement, each could expect to be permitted to use no more than 
2.2% of their annual formula apportionment amount for this purpose. 
Eligible respondents to this request are only the designated recipients 
for the urbanized area formula apportionment, including the State DOTs 
for areas under 200,000. The upcoming funding announcement will provide 
further direction. FTA will publish the distribution in a Federal 
Register notice.
    Recipients are advised that this provision does not provide any 
funding in addition to their Section 5307 program apportionment. Funds 
granted under this provision will be treated as an alternative use of 
the eligible recipient's formula funding. Distribution of such funds 
among sub-recipients is subject to Federal planning requirements and 
will require coordination between the designated recipient(s), MPO, and 
other direct recipients of FTA funds. Funds sub-allocated to direct 
recipients within a UZA will be included in their FTA grants. 
Procurements to which these 5307 funds are applied must comply with 
Federal procurement requirements and include all applicable Federal 
procurement clauses.
    Recipients, if selected to use this provision, will be required to 
obligate funds no later than September 30, 2012. Once funds are 
obligated, they will remain available until expended; funds can be 
requested for the applicant's current fiscal year plus one additional 
year. FTA does not plan to reallocate funding caps under this provision 
after it has been initially distributed.
    Eligible designated recipients of Section 5307 funding that are 
interested in using funds under this provision are encouraged to become 
familiar with using grants.gov and are advised to monitor the site for 
the upcoming solicitation of interest. In addition, FTA recommends that 
grantees register for automatic email updates for Section 5307 
Urbanized Area Formula Program on the FTA Web site. Further details 
will be posted with the announcement at www.grants.gov.
vi. Sources of Local Match
    Consistent with Section 5307(e), the Federal share of an urbanized 
area formula grant is 80 percent of net project cost for a capital 
project and 50 percent of net project cost for operating assistance 
unless the recipient indicates a greater local share. The remainder of 
the net project cost (i.e., 20 percent and 50 percent, respectively) 
shall be provided from the following sources:
    a. From non-Federal government sources other than revenues from 
providing public transportation services;
    b. From revenues derived from the sale of advertising and 
concessions;
    c. From an undistributed cash surplus, a replacement or 
depreciation cash fund or reserve, or new capital;
    d. From amounts received under a service agreement with a State or 
local social service agency or private social service organization; and
    e. Proceeds from the issuance of revenue bonds.
    f. Funds from Section 403(a)(5)(C)(vii) of the Social Security Act 
(42 U.S.C. 603(a)(5)(C)(vii)) can be used to match Urbanized Area 
Formula funds.
vii. Designated Transportation Management Areas (TMA)
    Guidance for setting the boundaries of TMAs is in the joint 
transportation planning regulations codified at 23 CFR Part 450 as 
referenced in 49 CFR Part 613. In some cases, the TMA planning 
boundaries established by the MPO for the designated TMA includes one 
or more small UZAs. In addition, one small UZA (Santa Barbara, CA) has 
been designated as a TMA by Secretary pursuant to section 5303(k). The 
Governor's Apportionment for small UZAs may include funds attributable 
to a small UZA designated as a TMA or within the planning boundaries of 
a TMA.
    The list of small UZAs included within the planning boundaries of 
designated TMAs is provided in the table below.

[[Page 1794]]



------------------------------------------------------------------------
                                    Small urbanized area included in TMA
          Designated TMA                      planning boundary
------------------------------------------------------------------------
Albany, NY........................  Saratoga Springs, NY.
Houston, TX.......................  Galveston, TX; Lake Jackson-
                                     Angleton, TX; Texas City, TX; The
                                     Woodlands, TX.
Jacksonville, FL..................  St. Augustine, FL.
Orlando, FL.......................  Kissimmee, FL.
Palm Bay-Melbourne, FL............  Titusville, FL.
Philadelphia, PA-NJ-DE-MD.........  Pottstown, PA.
Pittsburgh, PA....................  Monessen, PA; Weirton, WV-
                                     Steubenville, OH-PA (PA portion);
                                     Uniontown-Connellsville, PA.
Seattle, WA.......................  Bremerton, WA.
Washington, DC-VA-MD..............  Frederick, MD.
------------------------------------------------------------------------

    Section 5303(k) provides that the Secretary shall designate ``any 
additional area as a transportation management area on the request of 
the Governor and the MPO designated for the area.'' In the event a 
Governor and an MPO determine that a small UZA should be a TMA or 
included within the boundaries of a TMA, the MPO and Governor must 
jointly request such designation from the Associate Administrator for 
Program Management, Federal Transit Administration, 1200 New Jersey 
Avenue SE., Washington, DC 20590, in writing, no later than July 1 of 
each year of the identity of any small UZA within the planning 
boundaries of a TMA.
viii. Urbanized Area Formula Funds Used for Highway Purposes
    Funds apportioned to a TMA are eligible for transfer to FHWA for 
highway projects, if the Designated Recipient has allocated a portion 
of the area's Section 5307 funding for such use. However, before funds 
can be transferred, the following conditions must be met: (1) Approval 
by the MPO in writing, after appropriate notice and opportunity for 
comment and appeal are provided to affected transit providers; (2) a 
determination of the Secretary that funds are not needed for 
investments required by the Americans with Disabilities Act of 1990 
(ADA); and (3) the MPO determines that local transit needs are being 
addressed.
    The MPO should notify the appropriate FTA Regional Administrator of 
its intent to use FTA funds for highway purposes. Urbanized Area 
Formula funds that are designated by the MPO for highway projects and 
meet the conditions cited in the previous paragraph will be transferred 
to and administered by FHWA.
4. Period of Availability
    The Urbanized Area Formula Program funds apportioned in this notice 
are available for obligation during the year of apportionment plus 
three additional years. Accordingly, these funds must be obligated in 
grants by September 30, 2015. Any apportioned funds that remain 
unobligated at the close of business on September 30, 2015 will revert 
to FTA for reapportionment under the Urbanized Area Formula Program.
5. Other Program or Apportionment Related Information and Highlights
    In each UZA with a population of 200,000 or more, the Governor, in 
consultation with responsible local officials and publicly owned 
operators of public transportation, has designated one or more entities 
to be the Designated Recipient for Section 5307 funds apportioned to 
the UZA. The same entity(s) may or may not be the Designated Recipient 
for the Job Access and Reverse Commute (JARC) and New Freedom program 
funds apportioned to the UZA. In UZAs under 200,000 in population, the 
State is the Designated Recipient for Section 5307, as well as JARC and 
New Freedom programs. The Designated Recipient for Section 5307 may 
authorize other entities to apply directly to FTA for Section 5307 
grants pursuant to a supplemental agreement. While the requirement that 
projects selected for funding be included in a locally developed 
coordinated public transit/human service transportation plan is not 
included in Section 5307 as it is in Sections 5310, 5316 (JARC) and 
5317 (New Freedom), FTA expects that in their role as public transit 
providers, recipients of Section 5307 funds will be participants in the 
local planning process for these programs.

D. Clean Fuels Grant Program (49 U.S.C. 5308)

    The Clean Fuels Grant program is a discretionary grant program that 
supports the use of alternative fuels in air quality maintenance or 
nonattainment areas for ozone or carbon monoxide through capital grants 
to urbanized areas for clean fuel vehicles and facilities. Funds will 
be distributed in response to a discretionary competition announced in 
the Federal Register during the first quarter of calendar year 2012. 
For more information about this program contact Vanessa Williams, 
Office of Program Management, at (202) 366-4818.
1. FY 2012 Funding Availability
    The Temporary Authorization, 2012 provides $25,750,000 in contract 
authority for the period October 1, 2011 through March 31, 2012 for the 
Clean Fuels Program. After the addition of available FY 2011 contract 
authority, a total of $25,857,145 is thus far available for grants, as 
shown in the table below.

                           Clean Fuels Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriated......................................     $25,750,000
FY 2011 Contract Authority..............................         107,145
                                                         ---------------
    Total Apportioned...................................      25,857,145
------------------------------------------------------------------------

2. Requirements
    Clean Fuels Grant program funds may be made available to any 
grantee in a UZA that is designated as maintenance or nonattainment 
area for ozone or carbon monoxide as defined in the Clean Air Act. 
Eligible recipients include section 5307 Designated Recipients as well 
as recipients in small UZAs. The State in which a small UZA is located 
will act as the recipient of funds. Eligible projects include the 
purchase or lease of clean fuel buses, the construction or lease of 
clean fuel or electrical recharging facilities and related equipment 
for such buses, and construction or improvement of public 
transportation facilities to accommodate clean fuel buses.
3. Period of Availability
    Clean Fuels Program funds are available for three years, which 
includes the year the funds are allocated to a project through a notice 
of award or appropriation plus two. FY 2012 funds will be distributed 
through a competitive discretionary process, which will be announced in 
a Federal Register Notice of Funding Availability during the first 
quarter of calendar year 2012.

[[Page 1795]]

4. Other Program or Apportionment Related Information and Highlights
    Table 7 lists prior year carryover of $13,761,707 for Clean Fuels 
projects allocated FY 2010 program funds. These projects were announced 
during FY 2011 and are available for obligation until September 30, 
2013. For more information about the FY 2011 Clean Fuels Grant Program 
award announcements, please visit www.gpo.gov/fdsys/pkg/FR-2011-12-12/pdf/2011-31694.pdf (Federal Register Citation: 76 FR 77302--FTA 
Sustainability Program Funds: Announcement of Project Selections, 
December 12, 2011).

E. Capital Investment Program (49 U.S.C. 5309)--Fixed Guideway 
Modernization

    This program provides capital assistance for the maintenance, 
recapitalization, and modernization of existing fixed guideway systems. 
Funds are apportioned 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 
urbanized areas to which the funds are apportioned. For more 
information about Fixed Guideway Modernization contact Kimberly Sledge, 
Office of Transit Programs, at (202) 366-2053.
1. FY 2012 Funding Availability
    The Temporary Authorization, 2012 provides $833,250,000 in contract 
authority for the period October 1, 2011 through March 31, 2012 for the 
Fixed Guideway Modernization Program. Thus far, the total amount 
apportioned for the Fixed Guideway Modernization Program is 
$831,257,145, after the addition of available FY 2011 contract 
authority and reapportioned funds and deductions for oversight, as 
shown in the table below.

                  Fixed Guideway Modernization Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.....................................    $833,250,000
FY 2011 Contract Authority..............................       3,467,122
Oversight Deduction (total).............................      -8,367,171
Reapportioned Funds.....................................         363,287
                                                         ---------------
    Total Apportioned...................................     831,257,145
------------------------------------------------------------------------

    The FY 2012 Fixed Guideway Modernization Program apportionments to 
eligible areas are displayed in Table 8.
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 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. Also, consistent to 49 U.S.C. 5336(b), FTA uses 60 percent of 
the directional route miles attributable to the Alaska Railroad 
passenger operations system to calculate the apportionment for the 
Anchorage, Alaska UZA under the Section 5309 Fixed Guideway 
Modernization formula.
    FY 2012 Formula apportionments are based on data grantees provided 
to the NTD for the 2010 reporting year. Table 9 provides additional 
information and details on the formula. Dollar unit values for the 
formula factors used in the Fixed Guideway Modernization Program are 
displayed in Table 5. To replicate an area's apportionment, multiply 
the dollar unit value by the appropriate formula factor, i.e., route 
miles and revenue vehicle miles.
3. Program Requirements
    Fixed Guideway Modernization funds must be used for capital 
projects to maintain, modernize, or improve fixed guideway systems. 
Eligible UZAs (those with a population of 200,000 or more) with fixed 
guideway systems that are at least seven years old are entitled to 
receive Fixed Guideway Modernization funds. A threshold level of more 
than one mile of fixed guideway is required in order to receive Fixed 
Guideway Modernization funds. Therefore, UZAs reporting one mile or 
less of fixed guideway mileage under the NTD are not included. However, 
funds apportioned to an urbanized area may be used on any fixed 
guideway segment in the UZA. Program guidance for Fixed Guideway 
Modernization is presently found in FTA Circular C9300.1B, Capital 
Facilities and Formula Grant Programs, dated November 1, 2008.
4. Period of Availability
    The funds apportioned in this notice under the Fixed Guideway 
Modernization Program remain available to recipients to be obligated in 
a grant during the year of appropriation plus three additional years. 
FY 2012 Fixed Guideway Modernization funds that remain unobligated at 
the close of business on September 30, 2015, will revert to FTA for 
reapportionment under the Fixed Guideway Modernization Program.

F. Capital Investment Program (49 U.S.C. 5309)--Bus and Bus-Related 
Facilities

    This program provides capital assistance for new and replacement 
buses, and related equipment and facilities. Funds are allocated on a 
discretionary basis. Eligible purposes are acquisition of buses for 
fleet and service expansion, bus maintenance and administrative 
facilities, transfer facilities, bus malls, transportation centers, 
intermodal terminals, park-and-ride stations, acquisition of 
replacement vehicles, bus rebuilds, bus preventive maintenance, 
passenger amenities such as passenger shelters and bus stop signs, 
accessory and miscellaneous equipment such as mobile radio units, 
supervisory vehicles, fare boxes, computers, and shop and garage 
equipment. Eligible applicants are State and local governmental 
authorities. Eligible sub-recipients include other public agencies, 
private companies engaged in public transportation and private non-
profit organizations.
    For more information about Bus and Bus-Related Facilities (Bus 
Program) contact Samuel Snead, Office of Transit Programs, at (202) 
366-1089.
1. FY 2012 Funding Availability
    The Temporary Authorization, 2012 provides $492,000,000 in contract 
authority for the period October 1, 2011 through March 31, 2012 for the 
Bus and Bus-Related Facilities program. The total amount apportioned 
for the program thus far is $489,106,722, after the addition of 
available FY 2011 contract authority and deductions for oversight, as 
shown in the table below.

                     Bus and Bus-Related Facilities
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriated......................................    $492,000,000
FY 2011 Contract Authority..............................       2,047,194
Oversight Deduction.....................................      -4,940,472
                                                         ---------------
    Total Apportioned...................................     489,106,722
------------------------------------------------------------------------


[[Page 1796]]

2. Basis for Allocation
    FY 2012 Bus and Bus-Related Facilities program allocations are 
shown in Table 10. Allocations include nine Section 5309 Capital 
Investment Program New and Small Starts Bus Rapid Transit (BRT) 
projects, which are funded through the Bus and Bus-Related Facilities 
program in FY 2012.
    Unallocated 2012 Bus and Bus-Related Facilities Program funds will 
be distributed through discretionary program competitions. FY 2012 
discretionary competitions will include a State of Good Repair program, 
a Bus Livability program and a Veterans Transportation and Community 
Living Initiative. FTA will publish one or more Notices of Funding 
Availability (NOFAs) during the first quarter of calendar year 2012 to 
announce these discretionary program competitions. Specific program 
requirements and selection criteria will be published in the relevant 
notices of funding availability (NOFA).
3. Requirements
    Program guidance for Bus and Bus-Related Facilities is found in FTA 
Circular C9300.1B, ``Capital Investment Program Guidance and 
Application Instructions,'' (November 1, 2008) and in subsequent 
notices of funding availability for each discretionary program.
4. Period of Availability
    Section 5309 Bus and Bus-Related Facilities funds are available for 
three years, which includes the year the funds are allocated to a 
project through a notice of award or appropriation plus two. Fiscal 
Year 2012 Bus and Bus-Related Facilities allocations, including the 
Ferry Boat Allocations for FY 2010-2012, listed in Table 10 not 
obligated in an FTA grant for eligible purposes by September 30, 2014 
may be made available for other Bus and Bus-Related Facilities projects 
under Section 5309 during the following fiscal year.
5. Other Program or Allocation Related Information and Highlights
    Prior year unobligated balances for Bus and Bus-Related allocations 
in the amount of $367,630,155 remain available for obligation in FY 
2012. The prior year carryover amounts are displayed in Table 11. 
Footnotes are included in Table 11 to identify the period of 
availability for each of these allocations. These tables do not include 
funds allocated in the recent discretionary competitions announced 
after September 30, 2011.
    This notice publishes the allocation of funds for Section 5309 
Ferry Boat Systems projects for FY 2010, FY 2011, and FY 2012. These 
projects are shown in Table 10. The list of FY 2010 Ferryboat projects 
replaces the projects published in the FTA FY 2010 apportionment notice 
(February 16, 2010, Table 10), which incorrectly published a list of 
Ferry Boat Systems projects administered by the Federal Highway 
Administration (FHWA).
    For more information about the FY 2011 Bus Livability Program award 
announcements, please visit www.gpo.gov/fdsys/pkg/FR-2011-11-07/pdf/2011-28779.pdf. (Federal Register Citation: 76 FR 68813-FY 2011 
Discretionary Livability Funding Opportunity; Section 5309 Bus and Bus 
Facilities Livability Initiative Program Grants and Section 5339 
Alternatives Analysis Program, November 7, 2011.)
    For more information about the FY 2011 State of Good Repair Program 
award announcements, please visit www.gpo.gov/fdsys/pkg/FR-2011-11-07/pdf/2011-28774.pdf. (Federal Register Citation: 76 FR 68819--State of 
Good Repair Bus and Bus Facilities Discretionary Program Funds, 
November 7, 2011.)
    For more information about the FY 2011 Veterans Transportation and 
Community Living Initiative award announcements, please visit 
www.gpo.gov/fdsys/pkg/FR-2011-12-19/pdf/2011-32447.pdf (Federal 
Register Citation: 76 FR 78732-FY 2011 Discretionary Funding 
Opportunity; Section 5309 Bus and Bus Facilities Veterans 
Transportation and Community Living Initiative, December 19, 2011).

G. Capital Investment Program (49 U.S.C. 5309)--New and Small Starts

    The New Starts program provides funds for construction of new fixed 
guideway systems or extensions to existing fixed guideway systems. 
Eligible purposes are light rail, rapid rail (heavy rail), commuter 
rail, monorail, automated fixed guideway system (such as a ``people 
mover''), or a busway/high occupancy vehicle (HOV) facility, Bus Rapid 
Transit that is fixed guideway, or an extension of any of these. 
Eligible purposes for the Small Starts program are those mentioned for 
the New Starts program, as well as corridor based bus systems that do 
not operate on a fixed guideway but include elements such as 
substantial transit stations, signal priority or pre-emption, branding 
of vehicles, and service frequencies of 10 minutes during peak periods 
and 15 minutes during off peak periods for at least 14 hours per day.
    Projects become candidates for funding under this program by 
successfully completing the appropriate steps in the major capital 
investment planning and project development process, which includes 
evaluation and rating by FTA based on several statutorily-defined 
criteria. Major new fixed guideway projects, or extensions to existing 
systems, financed with New Starts funds typically receive these funds 
through a full funding grant agreement (FFGA) that defines the scope of 
the project and specifies the total multi-year Federal commitment to 
the project. Small Starts projects typically receive funds through a 
project construction grant agreement (PCGA) that defines the scope of 
the project and specifies the Federal commitment to the project or a 
single year construction grant if the Small Starts contribution is $25 
million or less and has already been appropriated.
    For more information about the New or Small Starts project 
development process or evaluation and rating process contact Elizabeth 
Day, Office of Planning and Environment, at (202) 366-4033, or for 
information about published allocations contact Eric Hu, Office of 
Transit Programs, at (202) 366-0870.
1. FY 2012 Funding Availability
    The Appropriations Act, 2012 appropriated $1,955,000,000 to the 
major capital investment program (New and Small Starts) for the full 
fiscal year. Thus far, the total amount allocated for the major capital 
investment program (New and Small Starts) is $1,935,450,000, after the 
one percent deduction for oversight, is shown in the table below.

                 Capital Investment Program (New Starts)
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation..................................     $1,955,000,000
Oversight (one percent)..............................        -19,550,000
                                                      ------------------
    Total Available..................................      1,935,450,000
------------------------------------------------------------------------

2. Basis for Allocation
    Congress included authorizations for specific New Starts projects 
with Full Funding Grant Agreements (FFGA) in SAFETEA-LU. Funds 
allocated to specific projects are shown in Table 12. These non-
discretionary allocations amount to $1,388,515,000. Table 12 also 
includes a discretionary allocation of $35,481,000 for the Small Starts 
Project Central Mesa LRT Extension (Mesa, AZ). Unallocated funds total 
$511,454,000.
    The Appropriations Bill, 2012 includes a rescission of $58,500,000 
of unspent funds appropriated in FY 2009 under Public law 111-8.

[[Page 1797]]

3. Requirements
    FY 2010 New Starts projects were earmarked in law. Thus, 
reprogramming for a purpose other than that specified must also occur 
in law. While FY 2012 New Starts projects were identified in conference 
report accompanying the Appropriations Act, 2012 and not the Act 
itself, New Starts projects are subject to a complex set of approvals 
related to planning and project development set forth in 49 CFR Part 
611. FTA has published a number of rulemakings and interim guidance 
documents related to the New Starts program since the passage of 
SAFETEA-LU. Grantees should reference the FTA Web site at 
www.fta.dot.gov for the most current program guidance about project 
developments and management. Grant related guidance for New Starts is 
found in FTA Circular C9300.1B, Capital Investment Program Guidance and 
Application Instructions dated November 1, 2008; and C5200.1A, Full 
Funding Grant Agreement Guidance, dated December 5, 2002.
4. Period of Availability
    New Starts funds that remain unobligated to the projects designated 
the funds after three fiscal years (including the fiscal year the funds 
are allocated plus two additional years) may be made available for 
other section 5309 New Start projects. Therefore, corresponding funds 
for projects identified in the FY 2012 conference report must be 
obligated for the project by September 30, 2014.
5. Other Program or Apportionment Related Information and Highlights
    Prior year FY 2010 and FY 2011 unobligated discretionary and non-
discretionary allocations for New Starts, including Urban Circulator 
projects, in the amount of $1,323,217,298 remain available for 
obligation in FY 2012. These unobligated amounts are displayed in Table 
13.

H. Special Needs of Elderly Individuals and Individuals With 
Disabilities Program (49 U.S.C. 5310)

    This program provides formula funding to States for capital 
projects to assist private nonprofit groups in meeting the 
transportation needs of the elderly and individuals with disabilities 
when the public transportation service provided in the area is 
unavailable, insufficient, or inappropriate to meet these needs. A 
State agency designated by the Governor administers the Section 5310 
program. The State's responsibilities include: notifying eligible local 
entities of funding availability; developing project selection 
criteria; determining applicant eligibility; selecting projects for 
funding; and ensuring that all sub-recipients comply with Federal 
requirements. Eligible nonprofit organizations or public bodies must 
apply directly to the designated State agency for assistance under this 
program. For more information about the Elderly and Individuals with 
Disabilities Program contact Gil Williams, Office of Transit Programs, 
at (202) 366-0797.
1. FY 2012 Funding Availability
    The Temporary Authorization, 2012 provides $66,750,000 in contract 
authority for the period October 1, 2011 through March 31, 2012 for the 
Elderly and Individuals with Disabilities Program (49 U.S.C. 5310). 
After deduction of 0.5 percent for oversight, and the addition of 
reapportioned prior year funds, $67,055,892 remains available for 
allocation to the States. The FY 2012 Elderly and Individuals with 
Disabilities Program apportionments to the States are displayed in 
Table 14.

            Elderly and Individuals With Disabilities Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.....................................     $66,750,000
FY 2011 Contract Authority..............................         277,744
Oversight Deduction.....................................        -335,139
Reapportioned Funds.....................................         363,287
                                                         ---------------
    Total Apportioned...................................      67,055,892
------------------------------------------------------------------------

2. Basis for Apportionment
    FTA allocates funds to the States by an administrative formula 
consisting of a $125,000 floor for each State ($50,000 for smaller 
territories) with the balance allocated based on 2000 Census population 
data for persons aged 65 and over and for persons with disabilities.
3. Requirements
    Funds are available to support the capital costs of transportation 
services for older adults and people with disabilities. Uniquely under 
this program, eligible capital costs include the acquisition of 
service. Seven specified States (Alaska, Louisiana, Minnesota, North 
Carolina, Oregon, South Carolina, and Wisconsin) may use up to 33 
percent of their apportionment for operating assistance under the terms 
of the SAFETEA-LU Section 3012(b) pilot program.
    Capital assistance is provided on an 80 percent Federal, 20 percent 
local matching basis except that Section 5310(c) allows States eligible 
for a higher match under the sliding scale for FHWA programs to use 
that match ratio for Section 5310 capital projects. Operating 
assistance is 50 percent Federal, 50 percent local. Funds provided 
under other Federal programs (other than those of the DOT, with the 
exception of the Federal Lands Highway Program established by 23 U.S.C. 
204) may be used as match. Revenue from service contracts may also be 
used as local match.
    While the assistance is intended primarily for private non-profit 
organizations, public bodies approved by the State to coordinate 
services for the elderly and individuals with disabilities, or any 
public body that certifies to the State that there are no non-profit 
organizations in the area that are readily available to carry out the 
service, may receive these funds.
    States may use up to ten percent of their annual apportionment to 
administer, plan, and provide technical assistance for a funded 
project. No local share is required for these program administrative 
funds. Funds used under this program for planning must be shown in the 
United Planning Work Program (UPWP) for MPO(s) with responsibility for 
that area.
    The State recipient must certify that: The projects selected were 
derived from a locally developed, coordinated public transit-human 
services transportation plan; and, the plan was developed through a 
process that included representatives of public, private, and nonprofit 
transportation and human services providers and participation by the 
public. The locally developed, coordinated public transit-human 
services transportation planning process must be coordinated and 
consistent with the metropolitan and statewide planning processes and 
funding for the program must be included in the metropolitan and 
statewide Transportation Improvement Program (TIP and STIP) at a level 
of specificity or aggregation consistent with State and local policies 
and procedures. Finally, the State must certify that allocations to 
sub-recipients are made on a fair and equitable basis.
    The coordinated planning requirement is a requirement in two 
additional programs. Projects selected for funding under the Job Access 
Reverse Commute program and the New Freedom program also are required 
to be derived from a locally developed coordinated public transit/human 
service transportation plan. FTA anticipates that most areas will 
develop one consolidated plan for all the programs, which may include 
separate elements and other human service transportation programs.
    The Section 5310 program is subject to the requirements of Section 
5307

[[Page 1798]]

formula program to the extent the Secretary determines appropriate. 
Program guidance is found in FTA Circular 9070.1F, dated May 1, 2007. 
The circular is posted on the FTA Web site at www.fta.dot.gov.
4. Period of Availability
    Section 5310 funds are available for three years, which includes 
the year of apportionment plus two. Fiscal Year 2012 Section 5310 funds 
not obligated in an FTA grant for eligible purposes by September 30, 
2014 will revert to FTA for reapportionment among the States under the 
Elderly and Individuals with Disabilities Program.
5. Other Program or Apportionment Related Information and Highlights
    States may transfer Section 5310 funds to Section 5307 or Section 
5311, but only for projects selected under the Section 5310 program, 
not as a general supplement for those programs. FTA anticipates that 
the States would use this flexibility primarily for projects to be 
implemented by a Section 5307 recipient in a small urbanized area, or 
for federally recognized Indian Tribes that elect to receive funds as a 
direct recipient from FTA under Section 5311. A State that transfers 
Section 5310 funds to Section 5307 must certify that each project for 
which the funds are transferred has been coordinated with private 
nonprofit providers of services. FTA has established a scope code (641) 
in the TEAM grant system to track Section 5310 projects included within 
a Section 5307 or 5311 grant. Transfer to Section 5307 or 5311 is 
permitted, but not required. FTA expects primarily to award stand-alone 
Section 5310 grants to the State for any and all sub-recipients.
6. Performance Measures
    To support the evaluation of the program, FTA has established 
performance measures for the Section 5310 program, which should be 
submitted with the State's annual program of projects status report on 
October 31, 2012. States should submit performance measures on behalf 
of their sub-recipients. Information on the Section 5310 performance 
measures can be found at http://www.fta.dot.gov/laws/circulars/leg_reg_6622.html.

I. Nonurbanized Area Formula Program (49 U.S.C. 5311)

    This program provides formula funding to States and Indian Tribes 
for the purpose of supporting public transportation in areas with a 
population of less than 50,000. Funding may be used for capital, 
operating, State administration, and project administration expenses. 
Eligible sub-recipients include State and local governmental authority, 
Indian Tribes, private non-profit organizations, and private operators 
of public transportation services, including intercity bus companies. 
Indian Tribes are also eligible direct recipients under Section 5311, 
both for funds apportioned to the States and for projects selected to 
be funded with funds set aside for a separate Tribal Transit Program. 
For more information about the Nonurbanized Area Formula Program 
contact Lorna Wilson, Office of Transit Programs, at (202) 366-0893.
1. FY 2012 Funding Availability
    The Temporary Authorization, 2012 provides $232,500,000 in contract 
authority for the Nonurbanized Area Formula Program (49 U.S.C. 5311) 
for the period October 1, 2011 through March 31, 2012. Thus far, the 
total amount apportioned for the Nonurbanized Area Formula Program is 
$269,879,990 after take-downs of two percent for the Rural 
Transportation Assistance Program (RTAP), 0.5 percent for oversight, 
and $7,500,000 for the Tribal Transit Program, and the addition of 
Section 5340 funding for Growing States and of reapportioned funds, as 
shown in the table below.

                    Nonurbanized Area Formula Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation..................................       $232,500,000
FY 2011 Contract Authority...........................            916,869
Oversight Deduction..................................         -1,167,337
Tribal Takedown......................................         -7,500,000
RTAP Takedown........................................         -4,650,000
Section 5340 Funds Added.............................         36,882,147
Reapportioned Funds..................................            748,311
                                                      ------------------
    Total Apportioned................................        269,879,990
------------------------------------------------------------------------

    The FY 2012 Nonurbanized Area Formula apportionments to the States 
are displayed in Table 15.
2. Basis for Apportionments
    FTA apportions the funds after take-down for oversight, the Tribal 
Transit Program, and RTAP according to a statutory formula. FTA 
apportions the first twenty percent to the States based on land area in 
nonurbanized areas with no state receiving more than 5 percent of the 
amount apportioned. FTA apportions the remaining eighty percent based 
on nonurbanized population of each State relative to the national 
nonurbanized population. FTA does not apportion Section 5311 funds to 
the Virgin Islands, which by a statutory exception are treated as an 
urbanized area for purposes of the Section 5307 formula program.
    FTA is allocating $36,729,317 to the States and territories for 
nonurbanized areas from the Growing States portion of Section 5340. FTA 
apportions Growing States funds by a formula based on State population 
forecasts for 15 years beyond the most recent census. FTA distributes 
the amounts apportioned for each State between UZAs and nonurbanized 
areas based on the ratio of urbanized/nonurbanized population within 
each State in the 2000 census.
3. Program Requirements
    The Nonurbanized Area Formula Program provides capital, operating 
and administrative assistance for public transit service in 
nonurbanized areas under 50,000 in population.
    The Federal share for capital assistance is 80 percent and for 
operating assistance is 50 percent, except that States eligible for the 
sliding scale match under FHWA programs may use that match ratio for 
Section 5311 capital projects and 62.5 percent of the sliding scale 
capital match ratio for operating projects.
    Each State must spend no less than 15 percent of its FY 2012 
Nonurbanized Area Formula apportionment for the development and support 
of intercity bus transportation, unless the State certifies, after 
consultation with affected intercity bus service providers, that the 
intercity bus service needs of the State are being adequately met. FTA 
also encourages consultation with other stakeholders, such as 
communities affected by loss of intercity service.
    Each State prepares an annual program of projects, which must 
provide for fair and equitable distribution of funds within the States, 
including Indian reservations, and must provide for maximum feasible 
coordination with transportation services assisted by other Federal 
sources.
    To retain eligibility for funding, recipients of Section 5311 
funding must report data annually to the NTD. Additional information on 
NTD reporting is contained in paragraph 5 of this section, below.
    Program guidance for the Nonurbanized Area Formula Program is found 
in FTA Circular 9040.1F, ``Nonurbanized Area Formula Program Guidance 
and Grant Application Instructions,'' dated April 1, 2007. The circular 
is posted at www.fta.dot.gov.
4. Period of Availability
    Section 5311 Nonurbanized Area Formula Program funds are available 
for

[[Page 1799]]

three years, which includes the year of appropriation, plus two. Fiscal 
Year 2012 Nonurbanized Area Formula funds not obligated in an FTA grant 
for eligible purposes by September 30, 2014 will revert to FTA for 
reapportionment among the States under the Nonurbanized Area Formula 
Program.
5. Other Program or Apportionment Related Information and Highlights
i. NTD Reporting
    By law, FTA requires that each recipient under the Section 5311 
program submit an annual report to the NTD containing information on 
capital investments, operations, and service provided with funds 
received under the Section 5311 program. Section 5311(b)(4), as amended 
by SAFETEA-LU, specifies that the report shall include information on 
total annual revenue, sources of revenue, total annual operating costs, 
total annual capital costs, fleet size and type, and related 
facilities, revenue vehicle miles, and ridership. State or Territorial 
DOT 5311 grant recipients must complete a one-page form of basic data 
for each 5311 sub-recipient, unless the sub-recipient is already 
providing a full report to the NTD as a Tribal Transit direct recipient 
or as an urbanized area reporter (without receiving a Nine or Fewer 
Vehicles Waiver). For the 2012 Report Year, State or Territorial DOTs 
must report on behalf of any sub-recipient receiving Section 5311 
grants in 2012, or that continued to benefit in 2012 from capital 
assets purchased using Section 5311 grants. Tribal Transit direct 
recipients must report if they received an obligation or an outlay for 
a Section 5311 grant in 2012, or if they continued to benefit in 2012 
from capital assets using Section 5311 Grants, unless the Tribe is 
already filing a full NTD Report as an urbanized area reporter or 
unless the Tribe only received $50,000 or less in planning grants. The 
NTD Rural Reporting Manual contains detailed reporting instructions and 
is posted on the NTD Web site, www.ntdprogram.gov.
ii. Extension of Intercity Bus Pilot of In-Kind Match
    Beginning in FY 2007, FTA implemented a two year pilot program of 
in-kind match for intercity bus service. The initial program was set to 
expire after FY 2008; however, FTA decided to extend the program 
through FY 2011. Through this notice FTA extends the In-Kind Match 
program through FY 2012. FTA published guidance on the in-kind match 
pilot in the Federal Register on February 28, 2007, as Appendix 1 of 
the Notice announcing the final revised circular 9040.1F, which is 
available at www.fta.dot.gov.

J. Rural Transportation Assistance Program (49 U.S.C. 5311(b)(3))

    This program provides funding to assist in the design and 
implementation of training and technical assistance projects, research, 
and other support services tailored to meet the needs of transit 
operators in nonurbanized areas. For more information about Rural 
Transportation Assistance Program (RTAP) contact Lorna Wilson, Office 
of Transit Programs, at (202) 366-0893.
1. FY 2012 Funding Availability
    The Temporary Authorization, 2012 provides $4,650,000 in contract 
authority for RTAP (49 U.S.C. 5311(b)(2)), as a two percent takedown 
from the funds appropriated for Section 5311 for the period October 1, 
2011 through March 31, 2012. FTA has reserved 15 percent for the 
National RTAP program. After the reservation for the National RTAP 
program and the addition of FY 2011 contract authority and 
reapportioned funds, thus far a total of 4,105,923 is available for 
allocation to the States, as shown in the table below.

                    Rural Transit Assistance Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation............................               $4,650,000
FY 2011 Contract Authority.....................                   19,348
National RTAP Takedown.........................                 -697,500
Reapportioned Funds............................                  134,075
                                                ------------------------
Total Apportioned..............................                4,105,923
------------------------------------------------------------------------

    Table 15 shows the FY 2012 RTAP allocations to the States.
2. Basis for Allocation
    FTA allocates funds to the States by an administrative formula. 
First, FTA allocates $65,000 to each State ($10,000 to territories), 
and then allocates the balance based on nonurbanized population in the 
2000 census.
3. Program Requirements
    States may use the funds to undertake research, training, technical 
assistance, and other support services to meet the needs of transit 
operators in nonurbanized areas. These funds are to be used in 
conjunction with a State's administration of the Nonurbanized Area 
Formula Program, but also may support the rural components of the 
Section 5310, JARC, and New Freedom programs.
4. Period of Availability
    Section 5311 RTAP funds are available for three years, which 
includes the year the funds are made available to a project through a 
notice of award, plus two.
5. Other Program or Apportionment Related Information and Highlights
    The National RTAP project is administered by cooperative agreement 
and re-competed at five-year intervals. In FY 2008, FTA awarded the 
cooperative agreement to the Neponset Valley Transportation Management 
Association (NVTMA) located in Waltham, Massachusetts through a 
competitive process. The National RTAP projects are guided by a project 
review board that consists of managers of rural transit systems and 
State DOT RTAP programs. National RTAP resources also support the 
biennial TRB National Conference on Rural Public and Intercity Bus 
Transportation and other research and technical assistance projects of 
a national scope.

K. Public Transportation on Indian Reservations Program (49 U.S.C. 
5311(c)(1))

    FTA refers to this program as the Tribal Transit Program. It is 
funded as a takedown from funds made available for the Section 5311 
program. Eligible direct recipients are federally recognized Indian 
Tribes. The funds are to be allocated for grants to Indian Tribes for 
any purpose eligible under Section 5311, which includes capital, 
operating, planning, and administrative assistance for rural public 
transit services and rural intercity bus service. For more information 
about the Tribal Transit Program contact Lorna Wilson, Office of 
Transit Programs, at (202) 366-0893.
1. Funding Availability in FY 2012
    Based on the Temporary Authorization, 2012 FTA is allocating 
$7,500,000 for the Tribal Transit Program for the period October 1, 
2011 through March 31, 2012. After the addition of available FY 2011 
contract authority and reapportioned funds, and the deduction of FY 
2012 funds apportioned to the program in FY 2011, a total of $8,020,905 
is available for grants, as shown in the table below.

                         Tribal Transit Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriated......................................      $7,500,000
FY 2011 Contract Authority..............................          31,207
FY 2011 Program Apportionment...........................         -36,410
                                                         ---------------

[[Page 1800]]

 
Reapportioned Funds.....................................         489,698
                                                         ---------------
    Total Apportioned...................................       8,020,905
------------------------------------------------------------------------

2. Basis for Allocation
    Based on procedures developed in consultation with the Tribes, FTA 
will issue a Notice of Funding Availability (NOFA) soliciting 
applications for FY 2012 funds. Projects are competitively selected 
based on the criteria published in the NOFA.
3. Requirements
    FTA developed streamlined program requirements based on statutory 
authority allowing the Secretary to determine the terms and conditions 
appropriate to the program. These conditions are contained in the 
annual NOFA. Beginning with grants awarded in FY 2009, the grant 
agreement has incorporated the statement of warranty for labor 
protective arrangements, and tribal grants will be submitted to the 
Department of Labor (DOL) for information upon FTA approval. Projects 
funded under the Tribal Transit Program are not required to have local 
match.
4. Period of Availability
    Section 5311 Tribal Transit funds are available for three years, 
which includes the year of allocation, plus two. Fiscal Year 2012 
Tribal Transit funds announced during FY 2012 that are not obligated in 
an FTA grant for eligible purposes by September 30, 2014 may be made 
available for other Tribal Transit projects under Section 5311 during 
the following fiscal year.
5. Other Program Changes and Highlights
    The funds set aside for the Tribal Transit Program are not meant to 
replace or reduce funds that Indian Tribes receive from States through 
the Section 5311 program but are to be used to enhance public 
transportation on Indian reservations and transit serving tribal 
communities. Funds allocated to Tribes by the States may be included in 
the State's Section 5311 application or awarded by FTA in a grant 
directly to the Tribe. We encourage Tribes intending to apply to FTA as 
direct recipients to contact the appropriate FTA regional office at the 
earliest opportunity.
    Technical assistance for Tribes may be available from the State DOT 
using the State's allocation of RTAP or funds available for State 
administration under Section 5311, from the Tribal Transportation 
Assistance Program (TTAP) Centers supported by FHWA, and from the 
Community Transportation Association of America under a program funded 
by the United States Department of Agriculture (USDA). The National 
RTAP will also be developing new resources for Tribal Transit. The 
National RTAP program, in conjunction with FTA, will be hosting a 
Tribal Transit Training and Technical Assistance meeting in Scottsdale, 
Arizona from March 18-21, 2012. Tribes who have active grants with 
FTA's Tribal Transit program are encouraged to attend the two and half 
day training session. For more information contact Lorna Wilson, 
Program Manager at (202) 366-0893 or visit the National RTAP Web site 
regarding preliminary conference logistics at http://www.nationalrtap.org.
    Table 16 lists prior year carryover of $6,373,776 for Tribal 
Transit program projects allocated project funding in FY 2010. The FY 
2010 allocations were announced on March 30, 2011 and are available for 
obligation until September 30, 2013. For more information about the FY 
2011 Tribal Transit program selections announced on December 1, 2011, 
please visit www.fta.dot.gov/tribaltransit. FTA anticipates publishing 
its FY 2011 Tribal Transit Program Notice of Award, formally announcing 
the FY 2011 program selections, in the Federal Register in early 
January.

L. Growing States and High Density States Formula Factors (49 U.S.C. 
5340)

    The Temporary Authorization, 2012 makes $232,500,000 in contract 
authority available for apportionment in accordance with the formula 
factors prescribed for Growing States and High Density States set forth 
in 49 U.S.C. 5340 for the period October 1, 2011 through March 31, 
2012. After the addition of available FY 2011 contract authority, a 
total of $233,467,424 is available for apportionment. Fifty percent of 
this amount is apportioned to eligible States and urbanized areas using 
the Growing State formula factors. The other 50 percent is apportioned 
to eligible States and urbanized areas using the High Density States 
formula factors.
    The term ``State,'' for purposes of this program, is defined to 
mean only the 50 States. For the Growing State portion of the program, 
funds are allocated based on the population forecasts for fifteen years 
after the date of that census. Forecasts are based on the trend between 
the most recent decennial census and Census Bureau population estimates 
for the most current year. Census population estimates as of July 1, 
2010 were used in the FY 2012 apportionments. Funds allocated to the 
States are then sub-allocated to urbanized and non-urbanized areas 
based on forecast population, where available. If forecasted population 
data at the urbanized level is not available, as is currently the case, 
funds are allocated to current urbanized and non-urbanized areas on the 
basis of current population in the 2000 Census. Funds allocated to 
urbanized areas are included in their Section 5307 apportionment. Funds 
allocated for non-urbanized areas are included in the states' Section 
5311 apportionments.

M. Job Access and Reverse Commute Program (49 U.S.C. 5316)

    The Job Access and Reverse Commute (JARC) program provides formula 
funding to States and Designated Recipients to support the development 
and maintenance of job access projects designed to transport welfare 
recipients and low-income individuals to and from jobs and activities 
related to their employment, and for reverse commute projects designed 
to transport residents of UZAs and other than urbanized areas to 
suburban employment opportunities. For more information about the JARC 
program contact Gil Williams, Office of Transit Programs, at (202) 366-
0797.
1. Funding Availability in FY 2012
    The Temporary Authorization, 2012 provides $82,250,000 in contract 
authority for the JARC Program for the period October 1, 2011 through 
March 31, 2012. The Appropriations Act, 2012 allows for a takedown of 
one percent of JARC program funds for oversight. After this takedown of 
one percent for oversight, and the addition of available FY 2011 
contract authority and reapportioned funds, a total of 95,047,060 is 
thus far available for allocation to the States, as shown in the table 
below.

                 Job Access and Reverse Commute Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.....................................     $82,250,000
FY 2011 Contract Authority..............................         342,239
Oversight Deduction.....................................        -822,500
Reapportioned Funds.....................................      13,277,321
                                                         ---------------
    Total Apportioned...................................      95,047,060
------------------------------------------------------------------------

    Table 17 shows the FY 2012 JARC apportionments.
2. Basis for Formula Apportionment
    By law, FTA allocates 60 percent of funds available to UZAs with 
populations of 200,000 or more persons (large UZAs); 20 percent to the 
States for urbanized areas with populations ranging from 50,000 to 
199,999 persons

[[Page 1801]]

(small UZAs), and 20 percent to the States for rural and small urban 
areas with populations of less than 50,000 persons. FTA apportions 
funds based upon the number of low income individuals residing in a 
State or large urbanized area, using data from the 2000 Census for 
individuals with incomes below 150 percent of the poverty level. FTA 
publishes apportionments to each State for small UZAs and for rural and 
small urban areas and a single apportionment for each large UZA.
    The Designated Recipient, either for the State or for a large UZA, 
is responsible for further allocating the funds to specific projects 
and sub-recipients through a competitive selection process. If the 
Governor has designated more than one recipient of JARC funds in a 
large UZA, the Designated Recipients may agree to conduct a single 
competitive selection process or sub-allocate funds to each Designated 
Recipient, based upon a percentage split agreed upon locally, and 
conduct separate competitions.
    States may transfer funds between the small UZA and the 
nonurbanized apportionments, if all of the objectives of JARC are met 
in the size area the funds are taken from. States may also use funds 
apportioned to the small UZA and nonurbanized area apportionments for 
projects anywhere in the State (including large UZAs) if the State has 
established a statewide program for meeting the objectives of JARC. A 
State that is planning to transfer funds under either of these 
provisions should submit a request to the FTA regional office. FTA will 
assign new accounting codes to the funds before obligating them in a 
grant.
3. Requirements
    States and Designated Recipients must solicit grant applications 
and select projects competitively, based on application procedures and 
requirements established by the Designated Recipient, consistent with 
the Federal JARC program objectives. In the case of large UZAs, the 
area-wide solicitation shall be conducted in cooperation with the 
appropriate MPO(s).
    Funds are available to support the planning, capital, and operating 
costs of transportation services that are eligible for funding under 
the program. Assistance may be provided for a variety of transportation 
services and strategies directed at assisting welfare recipients and 
eligible low-income individuals to address unmet transportation needs, 
and to provide reverse commute services. The transportation services 
may be provided by public, non-profit, or private-for-profit operators. 
The Federal share is 80 percent of capital and planning expenses and 50 
percent of operating expenses. Funds provided under other Federal 
programs (other than those of the DOT, with the exception of the 
Federal Lands Highway Program established by 23 U.S.C. 204) may be used 
for local/State match for funds provided under Section 5316, and 
revenue from service contracts may be used as local match.
    States and Designated Recipients may use up to ten percent of their 
annual apportionment for administration, planning, and to provide 
technical assistance. No local share is required for these program 
administrative funds. Funds used under this program for planning in 
urbanized areas must be shown in the UPWP for MPO(s) with 
responsibility for that area.
    The Designated Recipient must certify that: The projects selected 
were derived from a locally developed, coordinated public transit-human 
services transportation plan; and, the plan was developed through a 
process that included representatives of public, private, and nonprofit 
transportation and human services providers and participation by the 
public, including those representing the needs of welfare recipients 
and eligible low-income individuals. The locally developed, coordinated 
public transit-human services transportation planning process must be 
coordinated and consistent with the metropolitan and statewide planning 
processes and funding for the program must be included in the 
metropolitan and statewide Transportation Improvement Program (TIP and 
STIP) at a level of specificity or aggregation consistent with State 
and local policies and procedures. Finally, the State must certify that 
allocations of the grant to sub-recipients are made on a fair and 
equitable basis.
    The coordinated planning requirement is also a requirement in two 
additional programs. Projects selected for funding under the Elderly 
and Individuals with Disabilities Program (Section 5310) and the New 
Freedom program (Section 5317) also are required to be derived from a 
locally developed coordinated public transit-human service 
transportation plan. FTA anticipates that most areas will develop one 
consolidated plan for all the programs, which may include separate 
elements and other human service transportation programs. The goal of 
the coordinated planning process is not to be an exhaustive document, 
but to serve as a tool for planning and implementing beneficial 
projects. The level of effort required to develop the plan will vary 
among communities based on factors such as the availability of 
resources. FTA does not approve coordinated plans.
    The JARC program is subject to the relevant requirements of Section 
5307, including the requirement for certification of labor protections. 
JARC program requirements are published in FTA Circular 9050.1, dated 
April 1, 2007. The circular and other guidance including frequently 
asked questions are posted on the FTA Web site at www.fta.dot.gov.
4. Period of Availability
    Section 5316 JARC funds are available for three years, which 
includes the year of apportionment, plus two. Fiscal Year 2012 JARC 
funds not obligated in an FTA grant for eligible purposes by September 
30, 2014 will revert to FTA for reapportionment among the States and 
large UZAs under the JARC program.
5. Other Program or Apportionment Related Information and Highlights
    Transfers to Section 5307 or Section 5311: States may transfer JARC 
funds to Section 5307 or Section 5311, but only for projects 
competitively selected under the JARC program, not as a general 
supplement for those programs. FTA anticipates that the States would 
use this flexibility primarily for projects to be implemented by a 
Section 5307 recipient in a small urbanized area or for federally 
recognized Indian Tribes that elect to receive funds as a direct 
recipient from FTA under Section 5311. FTA has established a scope code 
(646) to track JARC projects included within a Section 5307 or 5311 
grant. All activities within a Section 5307 or Section 5311 grant 
application that are funded with JARC resources should be listed under 
the 646-00 scope code. Transfer to Section 5307 or 5311 is permitted 
but not required. FTA also will award stand-alone JARC grants to the 
State for any and all sub-recipients. To track disbursements accurately 
against the appropriate program, FTA will not combine JARC funds with 
Section 5307 funds in a single Section 5307 grant, nor will FTA combine 
JARC with New Freedom funds in a single Section 5307 grant.

N. New Freedom Program (49 U.S.C. 5317)

    SAFETEA-LU established the New Freedom Program under 49 U.S.C. 
5317. The program purpose is to provide new public transportation 
services and public transportation alternatives beyond those currently 
required by the

[[Page 1802]]

Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) that 
assist individuals with disabilities with transportation, including 
transportation to and from jobs and employment support services. For 
more information about the New Freedom program contact Gil Williams, 
Office of Transit Programs, at (202) 366-0797.
1. Funding Availability in FY 2012
    The Temporary Authorization, 2012 provides $46,250,000 in contract 
authority for the New Freedom Program for the period October 1, 2011 
through March 31, 2012. After the addition of available FY 2011 
contract authority and reapportioned funds, a total of 54,405,514 is 
available for allocation to the States, as shown in the table below.

                           New Freedom Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriated......................................     $46,250,000
FY 2011 Contract Authority..............................         192,445
Reapportioned Funds.....................................       7,963,069
                                                         ---------------
    Total Apportioned...................................      54,405,514
------------------------------------------------------------------------

    Table 18 shows the FY 2012 New Freedom apportionments.
2. Basis for Formula Apportionment
    By law, FTA allocates 60 percent of funds available to UZAs with 
populations of 200,000 or more persons (large UZAs); 20 percent to the 
States for urbanized areas with populations ranging from 50,000 to 
199,999 persons (small UZAs), and 20 percent to the States for rural 
and small urban areas with populations of less than 50,000 persons. FTA 
apportions funds based upon the number of persons with disabilities 
over the age of five residing in a State or large urbanized area, using 
data from the 2000 Census. FTA publishes apportionments to each State 
for small UZAs and for rural and small urban areas and a single 
apportionment for each large UZA.
    The Designated Recipient, either for the State or for a large UZA, 
is responsible for further allocating the funds to specific projects 
and sub-recipients through a competitive selection process. If the 
Governor has designated more than one recipient of New Freedom funds in 
a large UZA, the Designated Recipients may agree to conduct a single 
competitive selection process or sub-allocate funds to each Designated 
Recipient, based upon a percentage split agreed on locally and conduct 
separate competitions.
3. Requirements
    States and Designated Recipients must solicit grant applications 
and select projects competitively, based on application procedures and 
requirements established by the Designated Recipient, consistent with 
the Federal New Freedom program objectives. In the case of large UZAs, 
the area-wide solicitation shall be conducted in cooperation with the 
appropriate MPO(s).
    Funds are available to support the capital and operating costs of 
new public transportation services and public transportation 
alternatives that are beyond those required by the Americans with 
Disabilities Act (ADA). Funds provided under other Federal programs 
(other than those of the DOT, with the exception of the Federal Lands 
Highway Program established by 23 U.S.C. 204) may be used as match for 
capital funds provided under Section 5317, and revenue from contract 
services may be used as local match.
    Funding is available for transportation services provided by 
public, non-profit, or private-for-profit operators. Assistance may be 
provided for a variety of transportation services and strategies 
directed at assisting persons with disabilities to address unmet 
transportation needs. Eligible public transportation services and 
public transportation alternatives funded under the New Freedom program 
must be both new and beyond the ADA. In a notice of policy change 
published on April 29, 2009, (Federal Register Volume 74 Number 81, 
April 29, 2009) FTA expanded the type of projects it considers to be 
``beyond the ADA'' and thus increased the types of projects eligible 
for funding under the New Freedom program. Under interpretation 
published in the Federal Register, new and expanded fixed route and 
demand responsive transit service planned for and designed to meet the 
needs of individuals with disabilities are eligible projects.
    The Federal share is 80 percent of capital expenses and 50 percent 
of operating expenses. Funds provided under other Federal programs 
(other than those of the DOT) may be used for local/state match for 
funds provided under Section 5317, and revenue from service contracts 
may be used as local match.
    States and Designated Recipients may use up to ten percent of their 
annual apportionment to administer, plan, and provide technical 
assistance for a funded project. No local share is required for these 
program administrative funds. Funds used under this program for 
planning must be shown in the UPWP for MPO(s) with responsibility for 
that area.
    The Designated Recipient must certify that: the projects selected 
were derived from a locally developed, coordinated public transit-human 
services transportation plan; and, the plan was developed through a 
process that included representatives of public, private, and nonprofit 
transportation and human services providers and participation by the 
public, including those representing the needs of welfare recipients 
and eligible low-income individuals. The locally developed, coordinated 
public transit-human services transportation planning process must be 
coordinated and consistent with the metropolitan and statewide planning 
processes and funding for the program must be included in the 
metropolitan and statewide Transportation Improvement Program (TIP and 
STIP) at a level of specificity or aggregation consistent with State 
and local policies and procedures. Finally, the State must certify that 
allocations of the grant to sub-recipients are made on a fair and 
equitable basis.
    The coordinated planning requirement is also a requirement in two 
additional programs. Projects selected for funding under the Section 
5310 program and the JARC program are also required to be derived from 
a locally developed coordinated public transit-human service 
transportation plan. FTA anticipates that most areas will develop one 
consolidated plan for all the programs, which may include separate 
elements and other human service transportation programs.
    The New Freedom program is subject to the relevant requirements of 
Section 5307, but certification of labor protections is not required. 
New Freedom Program requirements are published in FTA Circular 9045.1, 
which was effective May 1, 2007. The circular and other guidance 
including frequently asked questions are posted on the FTA Web site at 
www.fta.dot.gov.
4. Period of Availability
    Section 5317 New Freedom funds are available for three years, which 
includes the year of apportionment, plus two. Fiscal Year 2012 New 
Freedom funds not obligated in an FTA grant for eligible purposes by 
September 30, 2014 will revert to FTA for reapportionment among the 
States and large UZAs to be used for New Freedom program purposes.
5. Other Program or Apportionment Related Information and Highlights
    Transfers to Section 5307 or 5311: States may transfer New Freedom 
funds to Section 5307 or Section 5311, but only for projects 
competitively selected

[[Page 1803]]

under the New Freedom program, not as a general supplement for those 
programs. FTA anticipates that the States would use this flexibility 
for projects to be implemented by a Section 5307 recipient in a small 
urbanized area or for federally recognized Indian Tribes that elect to 
receive funds as a direct recipient from FTA under Section 5311. FTA 
has established a scope code (647) to track New Freedom projects 
included within a Section 5307 or 5311 grant. All activities within a 
Section 5307 or Section 5311 grant application that are funded with New 
Freedom resources should be listed under the 647-00 scope code. 
Transfer to Section 5307 or 5311 is permitted but not required. FTA 
also will award stand-alone New Freedom Program grants to the State for 
any and all sub-recipients. In order to track disbursements accurately 
against the appropriate program, FTA will not combine New Freedom funds 
with Section 5307 funds in a single Section 5307 grant, nor will FTA 
combine New Freedom with JARC funds in a single Section 5307 grant.

O. Paul S. Sarbanes Transit in Parks Program (49 U.S.C. 5320)

    The Paul S. Sarbanes Transit in Parks Program (Transit in Parks), 
formally the Alternative Transportation in Parks and Public Lands 
(ATPPL) Program, is administered by FTA in partnership with the 
Department of the Interior (DOI) and the U.S. Department of 
Agriculture's Forest Service. The purpose of the program is to enhance 
the protection of national parks and Federal lands, and increase the 
enjoyment of those visiting them. The Program funds capital and 
planning expenses for alternative transportation systems such as buses, 
trams, ferries and bicycle or pedestrian facilities in federally-
managed parks and public lands. Federal land management agencies and 
State, tribal and local governments acting with the consent of a 
Federal land management agency are eligible to apply.
1. FY 2012 Funding Availability
    The Temporary Authorization, 2012 provides $13,450,000 in contract 
authority to the Paul S. Sarbanes Transit in Parks Program for the 
period October 1, 2011 through March 31, 2012. After the addition of 
available FY 2011 contract authority and the deduction for oversight, a 
total of $13,438,435 is available for grants, as shown in the table 
below. Up to ten percent of the funds may be reserved for planning, 
research, and technical assistance.

                Paul S. Sarbanes Transit in Parks Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriated......................................     $13,450,000
FY 2011 Contract Authority..............................          55,965
Oversight Deduction.....................................          67,530
                                                         ---------------
    Total Apportioned...................................      13,438,435
------------------------------------------------------------------------

    As stated in the FY 2011 Notice of Funding Availability, FY 2012 
funds may be used to fund project applications received in response to 
the 2011 program competition. An announcement of project selections 
using both FY 2011 and FY 2012 funds will be published in or around 
January 2012. Depending upon the availability of additional full-year 
funding, FTA may publish a separate notice of Funding Availability 
(NOFA) in the Federal Register inviting additional applications for 
funding in FY 2012. For information on the FY 2011 program competition 
and award announcements, please visit www.fta.dot.gov/transitinparks.
2. Program Requirements
    Projects are competitively selected based on criteria specified in 
the Notice of Funding Availability. The terms and conditions applicable 
to the program are also specified in the NOFA. Projects must conserve 
natural, historical, and cultural resources, reduce congestion and 
pollution, and improve visitor mobility and accessibility. By statute, 
no more than 25 percent of the amount provided may be allocated for any 
one project. Projects funded under the Transit in Parks Program are not 
required to have local match.
3. Period of Availability
    Funds awarded under the Transit in Parks Program remain available 
until expended. Consistent with section 9.5.2a of the ``Department of 
Transportation Financial Management Policies Manual (October 24, 2006), 
funds awarded to Federal land management agencies through interagency 
agreements remain available for a period of five years from execution 
of the agreement.

P. Alternatives Analysis Program (49 U.S.C. 5339)

    The Alternatives Analysis Program provides grants to States, 
authorities of the States, metropolitan planning organizations, and 
local government authorities to develop studies as part of the 
transportation planning process. These studies include: an assessment 
of a wide range of public transportation alternatives designed to 
address transportation needs in a defined corridor or subarea; an 
initiation of the environmental review process by performing the 
planning-level consideration of environmental issues; sufficient 
information to enable the Secretary to make the findings of project 
justification and local financial commitment required under the Major 
Capital Investment Program (New Starts and Small Starts); the selection 
of a locally preferred alternative; and the adoption of the locally 
preferred alternative as part of the Long Range Statewide 
Transportation Plan or Metropolitan Transportation Plan. For more 
information about this program contact Kenneth Cervenka, Office of 
Planning and Environment, at (202) 493-0512, or for information about 
published allocations contact Eric Hu, Office of Transit Programs, at 
(202) 366-0870.
1. FY 2012 Funding Availability
    The Temporary Authorization, 2012 provides $12,500,000 in contract 
authority to the Alternatives Analysis Program for the period October 
1, 2011 through March 31, 2012. After the addition of available FY 2011 
contract authority, a total of $12,552,012 is currently available for 
grants, as shown in the table below.

                      Alternatives Analysis Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriated......................................     $12,500,000
FY 2011 Contract Authority..............................          52,012
                                                         ---------------
    Total Apportioned...................................      12,552,012
------------------------------------------------------------------------

2. Requirements
    The Government's share of the cost of an activity funded may not 
exceed 80 percent of the cost of the activity. The funds will be 
awarded as separate Section 5339 grants. The grant requirements will be 
comparable to those for Section 5309 grants. Eligible projects include 
planning and corridor studies, which lay the foundation for the 
adoption of locally preferred alternatives within the fiscally 
constrained Metropolitan Transportation Plan for that area, and early 
scoping of the environmental review process, which supports the 
incorporation of the planning studies' results into subsequent NEPA 
documents. Funds awarded under the Alternatives Analysis Program must 
be shown in the UPWP for MPO(s) with responsibility for that area. Pre-
award authority for Section 5339 funds applies to projects only after 
FTA funding allocations for a particular fiscal year are published in 
an FTA notice of apportionments and allocations. For

[[Page 1804]]

more information on pre-award authority see Section V of this notice.
    Unless otherwise specified in law, grants made under the 
Alternatives Analysis program must meet all other eligibility 
requirements as outlined in Section 5309.
3. Period of Availability
    Section 5338 Alternatives Analysis funds are available for three 
years, which includes the year the funds are allocated to a project 
through a notice of award or the year of appropriation, plus two.
4. Other Program or Apportionment Related Information and Highlights
    Table 19 lists prior year carryover of $15,031,000 for Alternatives 
Analysis projects allocated project funding in FY 2010. Funding for 
these projects not obligated in an FTA grant by September 30, 2012 may 
be made available for other Alternatives Analysis projects during the 
next fiscal year. For more information about the FY 2011 Alternatives 
Analysis award announcements, please visit www.gpo.gov/fdsys/pkg/FR-2011-11-07/pdf/2011-28779.pdf. (Federal Register Citation: 76 FR 
68813--FY 2011 Discretionary Livability Funding Opportunity; Section 
5309 Bus and Bus Facilities Livability Initiative Program Grants and 
Section 5339 Alternatives Analysis Program, November 7, 2011).

Q. Over-the-Road Bus Accessibility Program (Section 3038, Pub. L. 105-
85 [49 U.S.C. 5310 Note])

    The Over-the-Road Bus Accessibility (OTRB) Program authorizes FTA 
to make grants to operators of over-the-road buses to help finance the 
incremental capital and training costs of complying with the DOT over-
the-road bus accessibility final rule, 49 CFR Part 37, published on 
September 28, 1998 (63 FR 51670). FTA conducts a national solicitation 
of applications, and grantees are selected on a competitive basis. For 
more information about the OTRB program contact Blenda Younger, Office 
of Transit Programs, at (202) 366-4345.
1. Funding Availability in FY 2012
    The Temporary Authorization, 2012 provides $4,400,000 in contract 
authority to the Over-the-Road Bus Accessibility Program for the period 
October 1, 2011 through March 31, 2012. After the addition of available 
FY 2011 contract authority, a total of $4,418,308 is thus far available 
for grants, as shown in the table below.

                 Over-the-Road Bus Accessibility Program
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriated......................................      $4,400,000
FY 2011 Contract Authority..............................          18,308
                                                         ---------------
    Total Apportioned...................................       4,418,308
------------------------------------------------------------------------

    Of this amount, $3,313,731 is allocable to providers of intercity 
fixed-route service, and $1,104,577 to other providers of over-the-road 
bus services, including local fixed-route service, commuter service, 
and charter and tour service.
2. Program Requirements
    Projects are competitively selected. The Federal share of the 
project is 90 percent of net project cost. Program guidance is provided 
in the Federal Register notice soliciting applications. Assistance 
under the program is available to private operators of over-the-road 
buses that are used substantially or exclusively in intercity, fixed 
route and over-the-road bus service. Assistance is also available to 
private operators of over-the-road buses in other services, such as 
charter, tour, and commuter service. Capital projects eligible for 
funding include projects to add lifts and other accessibility 
components to new vehicle purchases and to purchase lifts to retrofit 
existing vehicles. Eligible training costs include developing training 
materials or providing training for local providers of over-the-road 
bus services. A comprehensive listing of program requirements is 
published annually in the OTRB Program Notice of Funding Availability 
(NOFA).
3. Period of Availability
    FTA has observed that some private operators selected to receive 
funding under this program have not acted promptly to obligate the 
funds in a grant and request reimbursement for expenditures. While the 
program does not have a statutory period of availability, in the FY 
2008 Apportionment Notice, FTA published its intention to limit the 
period of availability to a selected operator to three years, which 
includes the year of allocation plus two additional years. Over the 
Road Bus funds allocated to projects in March 2011 must be obligated in 
an FTA grant by September 30, 2013. (Federal Register Citation: 76 FR 
17738--Over-the-Road Bus Accessibility Program Announcement of Project 
Selections, March 30, 2011; http://www.gpo.gov/fdsys/pkg/FR-2011-03-30/pdf/2011-7409.pdf)
4. Other Program or Apportionment Related Information and Highlights
    FTA will publish a notice of award for the FY 2011 program 
competition and a NOFA soliciting 2012 applications in early calendar 
year 2012. The notice will be available at http://www.fta.dot.gov/legislation_law/Federal_register_notices.php. For more information 
about the Over the Road Bus Program, visit www.fta.dot.gov/otrb.

R. Research Programs (49 U.S.C. 5312, 5313, 5314, 5322 and 5506)

    FTA's Research Programs (NRPs) include the National Research and 
Technology Program (NRTP), the Transit Cooperative Research Program 
(TCRP), the National Transit Institute (NTI), and the University 
Transportation Centers Program (UTC). Funds for FTA Human Resource 
Programs are also provided under the Research appropriations account 
heading.
    Through funding under these programs, FTA seeks to deliver 
solutions that improve public transportation. For more information 
contact Linda Wolfe, Office of Research, Demonstration and Innovation, 
at (202) 366-8511.
1. Funding Availability in FY 2012
    The Appropriations Act, 2012 appropriated $44,000,000 under the 
Research and University Research Centers account heading for FY 2012. 
Of this amount, Congress specified that $6,500,000 is allocated for 
TCRP, $3,500,000 for NTI, $4,000,000 for the UTC. As requested in the 
conference report accompanying the Appropriations Act, 2012, FTA 
intends to direct $25,000,000 to fund the research, development, 
demonstration and deployment of new and cutting edge bus and transit 
technologies authorized under section 5312 of chapter 53. The remaining 
$5,000,000 is available to fund eligible projects under section 5306, 
5312-15, 5322, and 5506. All research and research and development 
projects, as defined by the Office of Management and Budget, are 
subject to a 2.6% reduction for the Small Business Innovative Research 
Program (SBIR).
2. Program Requirements
    Program Requirements are defined in FTA Circular 6100.1D Research, 
Technical Assistance, and Training Programs: Application Instructions 
and Program Management Guidelines published on May 1, 2011 and 
available at www.fta.dot.gov. Projects must support FTA's Strategic 
Goals and meet the Office of Management and Budget's Research and 
Development Investment

[[Page 1805]]

Criteria. All recipients are required to work with FTA to develop 
approved Statements of Work and plans to evaluate results before award.
    Eligible activities under the National Research Program include 
research, development, demonstration and deployment projects as 
described in 49 U.S.C. 5312(a); Joint Partnership projects for 
deployment of innovation as described in 49 U.S.C. 5312(b); 
International Mass Transportation Projects as described in 49 U.S.C. 
5312(c); Unless otherwise specified in law, all projects must meet one 
of these eligibility requirements.
    Problem Statements for TCRP can be submitted on TCRP's Web site: 
http://www.tcrponline.org. Information about NTI courses can be found 
at http://www.ntionline.com. UTC funds are transferred to the Research 
and Innovative Technology Administration to make awards.
3. Period of Availability
    Funds are available until expended.
4. Other Program or Apportionment Related Information and Highlights
    Funds not designated by Congress for specific projects and 
activities will be programmed by FTA based on national priorities. 
Opportunities are posted in www.grants.gov under Catalogue of Federal 
Domestic Assistance Number 20.514.

S. Washington Metropolitan Area Transit Authority Grants

    The Appropriations Act, 2012 appropriated $150,000,000 in funding 
this fiscal year for grants to the Washington Metropolitan Transit 
Authority, WMATA. Such funding is authorized under section 601 of the 
Passenger Rail Investment and Improvement Act of 2008. See Public Law 
110-432, Division B, Title VI. Grants may be provided for capital and 
preventive maintenance expenditures for WMATA after it has been 
determined that WMATA has placed the highest priority on investments 
that will improve the safety of the system, including but not limited 
to fixing the track signal system, replacing 1000 series cars, 
installing guarded turnouts, buying equipment for wayside worker 
protection, and installing rollback protection on cars that are not 
equipped with the safety feature. FTA will communicate further program 
requirements directly to WMATA.

V. FTA Policy and Procedures for FY 2012 Grants

A. Automatic Pre-Award Authority To Incur Project Costs

1. Caution to New Grantees and Grantees Using Innovative Financing
    While we provide pre-award authority to incur expenses before grant 
award for many projects, we recommend that first-time grant recipients 
NOT utilize this automatic pre-award authority and 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 be unaware 
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, or for an eligible activity but at an 
inappropriate time (e.g., prior to NEPA completion), FTA will be unable 
to reimburse the project sponsor and, in certain cases, the entire 
project may be rendered ineligible for FTA assistance.
    Grantees proposing to use innovative financing techniques or 
capital leasing are required to consult with the applicable FTA 
Regional Office (see Appendix A) before entering into the financial 
agreement--especially when the grantee expects to use Federal funds for 
debt service or capital lease payments. Consulting with FTA before 
entering into the agreement allows FTA to advise the project sponsor of 
any applicable Federal regulations, such as the Capital Leasing 
Regulation, and will minimize the risk of the costs being ineligible 
for reimbursement at a later date.
2. Policy
    FTA provides pre-award authority to incur expenses before grant 
award for certain program areas described below. This 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. This pre-award spending authority permits an eligible 
grantee to incur costs on an eligible transit capital, operating, 
planning, or administrative project without prejudice to possible 
future Federal participation in the cost of the project. In the Federal 
Register Notice of November 30, 2006, FTA extended pre-award authority 
for capital assistance under all formula programs through FY 2009, the 
duration of SAFETEA-LU. Since that time, FTA has extended the same pre-
award authority through FY 2011. In this notice, FTA extends pre-award 
authority through FY 2012 for capital assistance under all formula 
programs. FTA provides pre-award authority for planning and operating 
assistance under the formula programs without regard to the period of 
the authorization. In addition, we extend pre-award authority for 
certain discretionary programs based on the annual Appropriations Act 
each year. All pre-award authority is subject to conditions and 
triggers stated below:
    i. FTA does not impose additional conditions on pre-award authority 
for operating, planning, or administrative assistance under the formula 
grant programs. Grantees may be reimbursed for expenses incurred before 
grant award so long as funds have been expended in accordance with all 
Federal requirements and the grantee is otherwise eligible to receive 
the funding. In addition to cross-cutting Federal grant requirements, 
program specific requirements must be met. For example, a planning 
project must have been included in a Unified Planning Work Program 
(UPWP); a New Freedom operating assistance project or a JARC planning 
or operating project must have been derived from a coordinated public 
transit-human services transportation plan (coordinated plan) and 
competitively selected by the Designated recipient before incurring 
expenses; expenditure on State Administration expenses under State 
Administered programs must be consistent with the State Management Plan 
(as defined in FTA Circular 9040.1F, Section 6). Designated Recipients 
for JARC and New Freedom have pre-award authority for the ten percent 
of the apportionment they may use for program administration, if the 
use is consistent with their Program Management Plan.
    ii. Pre-Award authority for Alternatives Analysis planning projects 
under 49 U.S.C. 5339 is triggered by the publication of the allocation 
in FTA's Federal Register Notice of Apportionments and Allocations 
following the annual Appropriations Act, or announcement of additional 
discretionary allocations. The projects must be included in the UPWP of 
the MPO for that metropolitan area.
    iii. Pre-award authority for design and environmental work on a 
capital project is triggered by the authorization of formula funds, the 
appropriation of

[[Page 1806]]

funds for a earmarked project, or the announcement of competitively 
selected projects.
    iv. Following authorization of formula funds or appropriation and 
publication of earmarked projects or the announcement of competitively 
selected projects, pre-award authority for capital project 
implementation activities, such as property acquisition, demolition, 
construction, and acquisition of vehicles, equipment, or construction 
materials, may be exercised only after FTA concurs that all applicable 
environmental requirements have been satisfied, including those for 
actions classified as normally requiring preparation of environmental 
impact statements, environmental assessments, and categorical 
exclusions found in 23 CFR 771.117. Other conditions and requirements 
set forth in paragraph 3, below, must also be satisfied. Before 
exercising pre-award authority, grantees must comply with the 
conditions and Federal requirements outlined in paragraph 3 below. 
Failure to do so will render an otherwise eligible project ineligible 
for FTA financial assistance. Capital projects under the Section 5310, 
JARC, and New Freedom programs must comply with specific program 
requirements, including coordinated planning and competitive selection. 
In addition, before incurring costs, grantees are strongly encouraged 
to consult with the appropriate FTA regional office regarding the 
eligibility of the project for future FTA funds and the applicability 
of the conditions and Federal requirements.
    v. As a general rule, pre-award authority applies to the Section 
5309 Capital Investment Bus and Bus-Related Facilities, the Clean Fuels 
Bus program, high priority project designations, and any other transit 
discretionary projects only AFTER funds have been appropriated or 
allocated to the project (e.g., published in a Federal Register Notice 
of Award). For Section 5309 Capital Investment Bus and Bus-Related 
Facilities, Clean Fuels Program, or other transit capital discretionary 
projects, the date that costs may be incurred is: (1) For design and 
environmental review, the appropriations act which directs funds to the 
project was enacted or the announcement of the discretionary allocation 
of funds for the project; and (2) for property acquisition, demolition, 
construction, and acquisition of vehicles, equipment, or construction 
materials, the date that FTA approves the document (Record of Decision 
(ROD), Finding of No Significant Impact (FONSI), or Categorical 
Exclusion (CE) determination) that completes the environmental review 
process required by the National Environmental Policy Act (NEPA) and 
its implementing regulations. FTA introduced this new trigger for pre-
award authority in FY 2006 in recognition of the growing prevalence of 
new grantees unfamiliar with Federal and FTA requirements to ensure 
FTA's continued ability to comply with NEPA and related environmental 
laws. Because FTA does not sign a final NEPA document until MPO and 
statewide planning requirements (including air quality conformity 
requirements, if applicable) have been satisfied, this new trigger for 
pre-award will ensure compliance with both planning and environmental 
requirements before irreversible action by the grantee.
    vi. The pre-award authority described above does not apply to 
Section 5309 Capital Investment Program (New and Small Starts) funds. 
Specific instances of pre-award authority for Capital Investment 
Program projects are described in paragraph 4 below. Before an 
applicant may incur costs for Capital Investment New and Small Starts 
projects, Bus and Bus-Related Facilities projects, or any other 
projects not yet published in a notice of apportionments and 
allocations, it must first obtain a written Letter of No Prejudice 
(LONP) from FTA. To obtain an LONP, a grantee must submit a written 
request accompanied by adequate information and justification to the 
appropriate FTA regional office, as described below.
    vii. Pre-award authority does not apply to Section 5314 National 
Research Programs. Before an applicant may incur costs for National 
Research Programs, it must first obtain a written Letter of No 
Prejudice (LONP) from FTA. To obtain an LONP, a grantee must submit a 
written request accompanied by adequate information and justification 
to the appropriate FTA headquarters office. Information about LONP 
procedures may be obtained from the appropriate headquarters office.
3. Conditions
    The conditions under which pre-award authority may be utilized are 
specified below:
    i. 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.
    ii. All FTA statutory, procedural, and contractual requirements 
must be met.
    iii. 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.
    iv. Local funds expended by the grantee pursuant to and after the 
date of the pre-award authority will be eligible for credit toward 
local match or reimbursement if FTA later makes a 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 or undertaking of project implementation 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.
    v. 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.
    vi. For funds to which the pre-award authority applies, the 
authority expires with the lapsing of the fiscal year funds.
    vii. When a grant for the project is subsequently awarded, the 
Financial Status Report, in TEAM-Web, must indicate the use of pre-
award authority.
    viii. Planning, Environmental, and Other Federal requirements.
    All Federal 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 
inexperienced grantees who make compliance with Federal planning and 
environmental laws increasingly challenging. 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.
    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 or

[[Page 1807]]

maintenance area for air quality, the conformity requirements of 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, historic 
properties, and assurance of tribal consultation) 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/
engineering before FTA has determined the project to be a Categorical 
Exclusion (CE), or has issued a Finding of No Significant Impact 
(FONSI) or a Record of Decision (ROD), in accordance with FTA 
environmental regulations, 23 CFR Part 771. For a planning project to 
have pre-award authority, the planning project must be included in a 
MPO-approved Unified Planning Work Program (UPWP) that has been 
coordinated with the State.
    ix. In addition, Federal procurement procedures, as well as the 
whole range of applicable Federal requirements (e.g., Buy America, 
Davis-Bacon Act, Disadvantaged Business Enterprise) 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.
    x. If a grantee has questions or concerns regarding the 
environmental requirements, or any other Federal requirements that must 
be met before incurring costs, it should contact the appropriate 
regional office.
4. Pre-Award Authority for the Major Capital Investment Program (New 
and Small Starts Projects)
    i. Preliminary Engineering (PE), Final Design (FD), and Project 
Development (PD). Projects proposed for Section 5309 capital investment 
program funds (New and Small Starts) are required to follow a federally 
defined project development process. For New Starts projects, this 
process includes, among other things, FTA approval of the entry of the 
project into PE and later into FD. For Small Starts projects, this 
process includes, among other things, approval of the entry of the 
project into PD. In accordance with Sections 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 into PE, FD, or PD. For New Starts projects, upon 
FTA approval to enter PE, FTA extends pre-award authority to incur 
costs for PE activities. Upon completion of NEPA for a New Starts 
project, FTA extends pre-award authority to incur costs for utility 
relocation, real property acquisition and associated relocations, and 
vehicle purchases, which activities are further addressed below. Upon 
FTA approval to enter FD, FTA extends pre-award authority to incur 
costs for FD activities, demolition, and non-construction activities 
such as procurement of long-lead time items or items for which market 
conditions play a significant role in the acquisition price. This 
includes, but is not limited to procurement of rails, ties, and other 
specialized equipment, and commodities. Please contact the FTA Regional 
Office for a determination of activities not listed here, but which 
meet the intent described above. For Small Starts projects, upon FTA 
approval to enter PD, FTA extends pre-award authority to incur costs 
for the design and engineering activities necessary to complete the 
NEPA process. Upon completion of NEPA for a Small Starts project, FTA 
extends pre-award authority to incur costs for utility relocation, real 
property acquisition and associated relocations, and vehicle purchases, 
which activities are further addressed below. Because Small Starts 
projects are not subject to approval into FD, they are not granted pre-
award authority for procurement of rails, ties, and other specialized 
equipment; the procurement of commodities; and demolition. 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.
    ii. Real Property Acquisition Activities and Vehicle Purchases. FTA 
extends automatic pre-award authority for the acquisition of real 
property, real property rights and acquisition of vehicles for a major 
capital investment program (New or Small Starts) project upon 
completion of the NEPA process for that project. The NEPA process is 
completed when FTA signs an environmental Record of Decision (ROD) or 
Finding of No Significant Impact (FONSI), or makes a Categorical 
Exclusion (CE) determination. With the limitations and caveats 
described below, real estate acquisition and vehicle purchases 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 regarding property 
acquisition that is granted at the completion of NEPA 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. 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 relocation assistance, and vehicle purchases 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 for real property acquisition and

[[Page 1808]]

relocation assistance 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. 
FTA provides pre-award authority upon the completion of the NEPA 
process for vehicles purchases in recognition of the long-lead time and 
complexity of this activity as well as its relationship to the 
``critical path'' project schedule. FTA cautions grantees that do not 
currently operate the type of vehicle proposed in the New or Small 
Starts project about exercising this pre-award authority and encourages 
these sponsors to wait until later in the project development process 
when project plans are more fully developed and Federal support for the 
project is more certain. FTA reminds project sponsors that the 
procurement of vehicles must comply with all Federal requirements 
including, but not limited to, competitive procurement practices, the 
Americans with Disabilities Act, and Buy America. FTA encourages 
project sponsors to discuss the procurement of vehicles with FTA in 
regards to Federal requirements before exercising pre-award authority.
    Although FTA provides pre-award authority for property acquisition 
and vehicle purchases 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 the New Starts project has 
been approved into FD or the Small Starts project has received its 
construction grant. FTA will only reimburse the sponsor for vehicle 
purchases through an executed Full Funding Grant Agreement (New Starts) 
or a Project Construction Grant Agreement or single year capital grant 
(Small Starts). This is to ensure that Federal funds are not risked on 
a project whose advancement into 0construction is still not yet 
assured.
    iii. 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 (i.e., CE) from the more rigorous level of NEPA 
review.
    FTA's regulation titled ``Environmental Impact and Related 
Procedures,'' at 23 CFR Part 771 states that the costs incurred by a 
grant applicant for the preparation of environmental documents 
requested by FTA are eligible for FTA financial assistance (23 CFR 
771.105(e)). Accordingly, FTA extends pre-award authority for costs 
incurred to comply with NEPA regulations and to conduct NEPA-related 
activities, 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, or that includes a project grouping under 23 CFR 
450.216(j) that includes the project. The grant applicant must notify 
the FTA regional office upon initiation of the Federal environmental 
review process in accordance with the ``Dear Colleague'' letter from 
the FTA Administrator dated February 24, 2011. NEPA-related activities 
include, but are not limited to, public involvement activities, 
historic preservation reviews, section 4(f) evaluations, wetlands 
evaluations, endangered species consultations, and biological 
assessments. This pre-award authority is strictly limited to costs 
incurred to conduct the NEPA process, and to prepare environmental, 
historic preservation and related documents. When any transit project 
(including New Starts and Small Starts) is adopted into the STIP or 
STIP amendment and pre-award authority is granted, reimbursement for 
NEPA activities may be sought at any time through Section 5339 
(Alternatives Analysis program), Section 5307 (Urbanized Area Formula 
Program), or the flexible highway programs (STP and CMAQ).
    FTA assistance for environmental documents for New Starts and Small 
Starts projects is subject to certain additional restrictions. Under 
SAFETEA-LU, Section 5309 capital investment program funds (New and 
Small Starts) cannot be used to reimburse any activity, including a 
NEPA-related activity that occurs before the approval of a New Starts 
project into PE or a Small Starts project into PD. Only when a project 
has PE approval (for New Starts) or PD approval (for Small Starts) may 
the grant applicant seek reimbursement of Section 5309 major capital 
improvement program funds for NEPA work conducted after the PE or PD 
approval. Prior to PE or PD approval, any NEPA related work for a New 
Starts or Small Starts project can only be reimbursed through the use 
of Section 5339 (Alternatives Analysis Program), Section 5307 
(Urbanized Area Formula Program) and the flexible highway programs. 
NEPA-related activities include, but are not limited to, public 
involvement activities, historic preservation reviews, section 4(f) 
evaluations, wetlands evaluations, endangered species consultations, 
tribal consultation, and biological assessments. NEPA-related 
activities do not include PE activities beyond those necessary for NEPA 
compliance. As with any pre-award authority, FTA reimbursement for 
costs incurred is not guaranteed.
    iv. Other New and Small Starts Project Activities Requiring Letter 
of No Prejudice (LONP). Except as discussed in paragraphs a through c 
above, a project sponsor must obtain a written LONP from FTA before 
incurring costs for any activity expected to be funded by major capital 
investment program 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 B below.

B. Letter of No Prejudice (LONP) Policy

1. Policy
    LONP authority allows an applicant to incur costs on a project 
utilizing non-Federal resources, with the understanding that the costs 
incurred subsequent to the issuance of the LONP may be reimbursable as 
eligible expenses or eligible for credit toward the local match should 
FTA approve the project at a later date. LONPs are applicable to 
projects and project activities not covered by automatic pre-award 
authority. The majority of LONPs will be for Section 5309 capital 
investment program (New Starts or Small Starts) projects undertaking 
activities not covered under automatic pre-award authority, or for 
Section 5309 Bus and Bus-Related projects authorized but not yet 
appropriated funds by Congress. LONPs may be issued for formula and 
discretionary funds beyond the life of the current authorization or 
FTA's extension of automatic pre-award authority; however, the LONP is 
limited to a five-year period, unless otherwise authorized.
2. Conditions and Federal Requirements
    The conditions for pre-award authority specified in section IV.A.2 
above apply to all LONPs. The Planning, Environmental and Other Federal 
Requirements described in section IV.A.3 also apply to all LONPs. 
Because project implementation activities may not be initiated before 
NEPA completion, FTA will not issue an LONP for such activities until 
the NEPA process has been completed with a ROD, FONSI, or CE 
determination.

[[Page 1809]]

3. Request for LONP
    Before incurring costs for project activities not covered by 
automatic pre-award authority, the project sponsor must first submit a 
written request for an LONP, accompanied by adequate information and 
justification, to the appropriate regional office and obtain written 
approval from FTA. FTA approval of an LONP for a New Starts or Small 
Starts project is determined on a case-by-case basis. Federal funding 
under the major capital investment program for a New or Small Starts 
project is not implied or guaranteed by an LONP. Specifically, when 
requesting an LONP, the applicant shall provide sufficient information 
to allow FTA to consider the following items:
    i. Description of the activities to be covered by the LONP.
    ii. Justification for advancing the identified activities. The 
justification should include an accurate assessment of the consequences 
to the project scope, schedule, and budget should the LONP not be 
approved.
    iii. Allocated level of risk and contingency for the activity 
requested.
    iv. Status of procurement progress, including, if appropriate, 
submittal of bids and expiration of those bids for the activities 
covered by the LONP.
    v. Strength of the capital and operating financial plan for the New 
or Small Starts project and the future transit system.
    vi. Adequacy of the Project Management Plan.
    vii. Resolution of any readiness issues that would affect the 
project, such as land acquisition, status of third party agreements, 
and technical capacity to carry out the project.
    FTA will, following the completion of the requirements under NEPA, 
expedite the issuance of LONPs for New and Small Starts projects, when 
appropriate, by no longer performing a detailed review of the cost and 
scope of the request in every instance. Rather, a limited review will 
be performed in those cases that are of a more routine nature, 
especially those involving an experienced sponsor.

C. FTA FY 2012 Annual List of Certifications and Assurances

    The full text of the FY 2012 Certifications and Assurances was 
published in the Federal Register on November 1, 2011, and is available 
on the FTA Web site and in TEAM-Web. The FY 2012 Certifications and 
Assurances must be used for all grants made in FY 2012, including 
obligation of carryover funds. All grantees with active grants are 
required to have signed the FY 2012 Certifications and Assurances 
within 90 days after publication. Any questions regarding this document 
may be addressed to the appropriate Regional Office or to FTA's Office 
of Administration at (202) 366-4022.

D. FHWA Funds Used for Transit Purposes

    SAFETEA-LU continues provisions in the Intermodal Surface 
Transportation Efficiency Act of 1991 (ISTEA) and TEA-21 that expanded 
modal choice options in transportation funding by including substantial 
flexibility to transfer funds between FTA and FHWA formula program 
funding categories. The provisions also allow for transfer of certain 
discretionary program funds for administration of highway projects by 
FHWA and transit projects by FTA. FTA and FHWA execute Flex Funding 
Transfers between the Formula and Bus Grants Transit programs and the 
Federal Aid Highway programs. These transfers are based on a State's 
requests to transfer funding from the Highway and/or Transit programs 
to fund States and local project priorities, and joint planning needs. 
This practice can result in transfers to the Federal Transit Program 
from the Federal Aid Highway Program or vice versa.
1. Transfer Process for Funds
    SAFETEA-LU was signed into law on August 10, 2005. With the 
enactment of SAFETEA-LU, beginning in FY2006, with few exceptions, 
Federal transit programs were funded solely from general funds or trust 
funds. The transit formula and bus grant programs are now funded from 
Mass Transit Account of the Highway Trust Fund. The Formula and Bus 
Grant Programs can also receive flex funding transfers from the Federal 
Aid Highway Program.
    As a result of the changes to program funding mechanisms, there is 
no longer a requirement to transfer budget authority and liquidating 
cash resources simultaneously upon the execution of a flex funding 
transfer request by a State. Since the transfers are between trust fund 
accounts, the only requirement is to transfer budget authority 
(obligation limitation) between the Federal Aid Program trust fund 
account and the Federal Transit Formula and Bus Grant Program account. 
At the point in time that the obligation resulting from the transfer of 
budgetary authority is expended, a transfer of liquidating cash will be 
required.
    Beginning in FY 2007, the accounting process was changed for 
transfers of flex funds and other specific programs to allow budget 
authority and the liquidating cash to be transferred separately. FTA 
requires that flex fund transfers to FTA be in separate and 
identifiable grants in order to ensure that the draw-down of flexed 
funds can be tracked, thus securing the internal controls for 
monitoring these resources from the Federal Highway Administration to 
avoid deficiencies in FTA's Formula and Bus Grants account.
    FTA monitors the expenditures of flexed funded grants and requests 
the transfer of liquidating cash from FHWA to ensure sufficient funds 
are available to meet expenditures. To facilitate tracking of grantees' 
flex funding expenditures, FTA developed codes to provide distinct 
identification of ``flex funds.''
    The process for transferring flexible funds between FTA and FHWA 
programs is described below. Note that the new transfer process for 
``flex funds'' that began in FY 2007 does not apply to the transfer of 
funds from FHWA to FTA to be combined with Metropolitan and Statewide 
Planning and Research resources as Consolidated Planning Grants (CPG). 
These transfers are based on States requests to transfer funding from 
the Highway and/or Transit programs to fund States and local project 
priorities, and joint planning needs. Planning funds transferred will 
be allowed to be merged in a single grant with FTA planning resources 
using the same process implemented in FY 2006. For information on the 
process for the transfer of funds between FTA and FHWA planning 
programs refer to section III.A and B. Note also that certain prior 
year appropriations earmarks (Sections 330, 115, 117, and 112) are 
allotted annually for administration rather than being transferred. For 
information regarding these procedures, please contact Nancy Grubb, FTA 
Budget Office, at (202) 366-1635; or FHWA Budget Division, at (202) 
366-2845.
i. Transfer From FHWA to FTA
    FHWA funds transferred to FTA are used primarily for transit 
capital projects and eligible operating activities that have been 
designated as part of the metropolitan and statewide planning and 
programming process. The project must be included in an approved STIP 
before the funds can be transferred. By letter, the State DOT requests 
the FHWA Division Office to transfer highway funds for a transit 
project. The letter should specify the project, amount to be 
transferred, apportionment year, State, urbanized area, Federal aid 
apportionment category (i.e., Surface

[[Page 1810]]

Transportation Program (STP), Congestion Mitigation and Air Quality 
(CMAQ) or identification of the earmark and indication of the intended 
FTA formula program (i.e., Section 5307, 5311 or 5310) and should 
include a description of the project as contained in the STIP. Note 
that FTA may also administer certain transfers of statutory earmarks 
under the Section 5309 bus program, for tracking purposes.
    The FHWA Division Office confirms that the apportionment amount is 
available for transfer and concurs in the transfer, by letter to the 
State DOT and FTA. The FHWA Office of Budget and Finance then transfers 
budget authority. All FHWA CMAQ and STP funds transferred to FTA will 
be transferred to one of the three FTA formula programs (i.e. Urbanized 
Area Formula (Section 5307), Nonurbanized Area Formula (Section 5311) 
or Elderly and Persons with Disabilities (Section 5310). High Priority 
projects in Section 1702 of SAFETEA-LU or Transportation Improvement 
projects in Section 1934 of SAFETEA-LU and other Congressional earmarks 
that are transferred to FTA will be aligned with and administered 
through FTA's discretionary Bus and Bus Related Facilities Program 
(Section 5309). The most recent guidance on transfers of FHWA funds as 
allowed under SAFETEA-LU is FHWA Memorandum, dated July 19, 2007, 
``Information Fund Transfers to Other Agencies and Among Title 23 
Programs.''
    The FTA grantee's application for the project must specify which 
program the funds will be used for, and the application must be 
prepared in accordance with the requirements and procedures governing 
that program. Upon review and approval of the grantee's application, 
FTA obligates funds for the project.
    Transferred funds are treated as FTA formula or discretionary 
funds, except for local match purposes as described in c below, but are 
assigned a distinct identifying code for tracking purposes. The funds 
may be transferred for any capital purpose eligible under the FTA 
formula program to which they are transferred and, in the case of CMAQ, 
for certain operating costs. FHWA issued revised guidance on project 
eligibility under the CMAQ program in a Notice at 73 FR 62362 et seq. 
(October 1, 2008) incorporating changes made by SAFETEA-LU. In 
accordance with 23 U.S.C. 104(k), all FTA requirements except local 
share, which remains the same as required under the FHWA program, are 
applicable to transferred funds except in certain cases when CMAQ funds 
are authorized for operating expenses. Earmarks that are transferred to 
the Section 5309 Bus Program for administration, however, can be used 
for the congressionally designated transit purposes, and in some cases 
where the law provides, are not limited to eligibility under the Bus 
Program.
    In the event that transferred formula funds are not obligated for 
the intended purpose within the period of availability of the formula 
program to which they were transferred, they become available to the 
Governor for any eligible capital transit project. Earmarked funds, 
however, can only be used for the congressionally designated purposes.
ii. Transfers From FTA to FHWA
    The MPO submits a written request to the FTA regional office for a 
transfer of FTA Section 5307 formula funds (apportioned to a UZA 
200,000 and over in population) to FHWA based on approved use of the 
funds for highway purposes, as determined by the designated recipient 
under Section 5307 and contained in the Governor's approved State 
Transportation Improvement Program. The MPO must certify that: (1) 
Notice and opportunity for comment and appeal has been provided to 
affected transit providers; (2) the funds are not needed for capital 
investments required by the Americans with Disabilities Act, and (3) 
local transit needs are being addressed. The FTA Regional Administrator 
reviews and, if he or she concurs in the request, then forwards the 
approval in written format to FTA Headquarters, where a reduction equal 
to the dollar amount being transferred to FHWA is made to the grantee's 
Urbanized Area Formula Program apportionment.
    Transfers of discretionary earmarks for administration by FHWA are 
handled on a case by case basis, by the FTA regional office, in 
consultation with the FTA Office of Program Management, Office of Chief 
Counsel, and Office of Budget and Policy.
2. Matching Share for FHWA Transfers
    Section 104(k) of title 23 U.S.C., regarding the non-Federal share, 
applies to Title 23 funds used for transit projects. Thus, FHWA funds 
transferred to FTA retain the same matching share that the funds would 
have if used for highway purposes and administered by FHWA.
    There are four instances in which a Federal share higher than 80 
percent would be permitted. First, in States with large areas of Indian 
and certain public domain lands and national forests, parks and 
monuments, the local share for highway projects is determined by a 
sliding scale rate, calculated based on the percentage of public lands 
within that State. This sliding scale, which permits a greater Federal 
share, but not to exceed 95 percent, is applicable to transfers used to 
fund transit projects in these public land States. FHWA develops the 
sliding scale matching ratios for the increased Federal share.
    Second, commuter carpooling and vanpooling projects and transit 
safety projects using FHWA transfers administered by FTA may retain the 
same 100 percent Federal share that would be allowed for ride-sharing 
or safety projects administered by FHWA.
    The third instance is the 100 percent federally-funded safety 
projects; however, these are subject to a nationwide 10 percent program 
limitation.
    The fourth instance occurs with CMAQ funds. Section 1131 of The 
Energy Independence and Security Act, 2007 (Pub. L. 11-140) amended 23 
U.S.C. 120 to increase the Federal share of CMAQ projects to 100% at 
the State's discretion. FTA will honor this increased match for CMAQ 
funds transferred to FTA for implementation if the state chooses to 
fund the project at a higher Federal share than 80 percent. The Federal 
share for CMAQ projects cannot be lower than 80 percent.

E. Civil Rights Requirements

    Recipients of FTA funds are reminded that they must comply with all 
applicable civil rights requirements. All recipients must submit a 
Title VI program on a triennial basis, consistent with Title VI of the 
Civil Rights Act of 1964 and subsequent implementing regulations. 
Specifically, recipients are encouraged to consult their Regional Civil 
Rights Officer (RCRO) and FTA Circular 4702.1A, ``Title VI and Title 
VI-Dependent Guidelines for Federal Transit Administration 
Recipients,'' dated May 13, 2007; and Part II, Section 114(c) of the 
FTA Agreement to develop this program. Recipients receiving $250,000 or 
more in planning, capital or operating assistance are reminded that 
under 49 CFR Part 26, they must have a Disadvantaged Business 
Enterprise (DBE) program and develop a triennial DBE goal. The FTA 
Reporting Schedule for Recipients' 3 year Goal for Disadvantage 
Business Enterprise Programs can be found on FTA's DBE Web site under 
``DBE Guidance'' at http://www.fta.dot.gov/civilrights/12326_13310.html. FTA funding recipients that have 50 or more transit-related 
employees, and that have received capital or operating assistance in 
excess of $1,000,000 or planning assistance in excess of $250,000 in 
the

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previous Federal fiscal year, are required to provide an EEO program 
submission pursuant to Title VII of the Civil Rights Act of 1964; Title 
49, Chapter 53, Section 5332 of the United States Code and FTA Circular 
4704.1, ``Equal Employment Opportunity Program Guidelines for Grant 
Recipients,'' dated July 26, 1988.
    Recent changes to 49 CFR Part 26, the USDOT's DBE regulation, 
became effective in February 2011. Pursuant to those changes, all 
recipients who are required to have DBE programs in place must now also 
have a small business participation element in their DBE program. 
Recipients must submit to FTA by February 28, 2012, an amendment to the 
DBE program plan that sets forth in detail the steps to be taken to 
facilitate competition by small business concerns. Specifically, 
fostering small business participation includes taking all reasonable 
steps to eliminate obstacles to their participation, including 
unnecessary and unjustified bundling of contract requirements that may 
preclude small business participation in procurements as prime 
contractors or subcontractors. Tools that recipients may choose to 
utilize in their small business program could include establishing a 
race-neutral small business set-aside goal in contracts, requiring 
prime contractors to provide subcontracting opportunities of the type 
size that small businesses, including DBEs, can reasonably perform, 
identifying alternative acquisition strategies and structuring 
procurements to facilitate the ability of consortia or joint ventures 
consisting of small businesses, including DBEs to compete for an 
perform prime contacts. The small business program amendment may be 
submitted as a standalone document, but it should also be incorporated 
into the recipient's existing DBE program. Please be advised that if 
you have not updated your DBE program in the last two years, you are 
encouraged to consult with your Regional Civil Rights Officer as there 
may be other updates necessary for you to bring your DBE program into 
full compliance with 49 CFR Part 26. Please visit FTA's Web site at 
http://www.fta.dot.gov/civilrights/12326.html for guidance on the small 
business requirements. In addition, once you have developed your small 
business program, you must attach the full version of your DBE Program 
containing the new section into FTA's Transportation Electronic Award 
Management (TEAM) system. Again, you must submit your small business 
program within your DBE Program to FTA by February 28, 2012, and that 
program must be loaded into TEAM. Paper submissions to FTA will not be 
accepted.
    Please also be advised that recipients in an urbanized area of 
200,000 or more must analyze the impact of any proposed changes to 
transit service and fares. It is important that you conduct this 
analysis now under the existing requirements. This is true even as we 
consider changes to FTA's Title VI Circular 4702.1A itself, via the 
proposal that was published in the Federal Register on September 29, 
2011.
    Specifically, Chapter V of FTA's Title VI Circular, ``Program-
Specific Requirements and Guidelines for Recipients Serving Large 
Urbanized Areas'' sets out directives that include, most notably, the 
requirement to properly assess the impacts of service and fare changes. 
In other words, public transportation agencies serving large urbanized 
areas must conduct a service and fare equity analysis at the planning 
and programming stages to determine whether service and/or fare changes 
have a discriminatory impact. Service change analysis is required both 
for service reductions and service improvements. FTA has developed a 
service and fare analysis questionnaire that can also assist you by 
following this link: http://www.fta.dot.gov/civilrights/12881.html. In 
addition, although our proposed changes to the Title VI Circular are 
not final, you may find the examples included in the appendices of the 
proposed circular helpful as you develop your service and fare 
analysis. You can review the proposed Circular at the following link: 
http://www.fta.dot.gov/12349_13816.html. Please submit this analysis 
to FTA in advance of implementing the changes by attaching the full 
version to FTA's TEAM system.
    As always, FTA staff stands ready to assist you with civil rights 
compliance. Please check the FTA civil rights web page for training 
opportunities. You can also contact your regional civil rights officer 
for assistance.

F. Deferred Local Share

    A recipient may request on a case by case basis that the local 
share for a project funded with FTA formula funds be deferred until 100 
percent of the Federal funds have been drawn down. A request for the 
deferral must accompany the grant application. FTA must approve the 
deferral of local share prior to obligating the grant for which the 
local share is deferred. Approval is contingent upon the deferral's 
resulting in benefits to transit and upon the recipient's demonstrating 
that the recipient has the financial capacity to complete the project. 
In order to complete the project, the local funds must be available to 
match all the Federal funds that were previously drawn down.
    Deferred local share does not apply to FTA discretionary programs. 
Generally, FTA will not approve retroactive deferral of local share. In 
exceptional circumstances, FTA may approve retroactive deferral of 
local share, for example in response to a catastrophic event such as a 
hurricane or flood where sources of local funds are temporarily 
disrupted.

G. Technical Assistance

    FTA headquarters and regional staff will be pleased to answer your 
questions and provide any technical assistance you may need to apply 
for FTA program funds and manage the grants you receive. This notice 
and the program guidance circulars previously identified in this 
document may be accessed via the FTA Web site at www.fta.dot.gov.
    In addition, copies of the following circulars and other useful 
information are available on the FTA Web site and may be obtained from 
FTA regional offices; Circular 4220.1F, ``Third Party Contracting 
Guidance,'' and Circular 5010.1D, ``Grant Management Guidelines.'' Both 
circulars were recently revised and can be found at http://www.fta.dot.gov/laws/leg_reg_circulars_guidance.html. The FY 2012 
Annual List of Certifications and Assurances and Master Agreement are 
also posted on the FTA Web site.
    The DOT final rule on ``Participation by Disadvantaged Business 
Enterprises in Department of Transportation Financial Assistance 
Programs,'' which was effective July 16, 2003, can be found at http://www.access.gpo.gov/nara/cfr/waisidx_04/49cfr26_04.html/.

    Issued in Washington, DC, this 5th day of January, 2012.
Peter Rogoff,
Administrator.

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                    Appendix A--FTA Regional Offices
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Mary Beth Mello, 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.
Anthony Carr, Acting 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. 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.
Brigid Cherin-Hynes, Regional            Terry Rosapep, Regional
 Administrator, Region 3--Philadelphia,   Administrator, Region 8--
 1760 Market Street, Suite 500,           Denver, 12300 West Dakota
 Philadelphia, PA 19103-4124, Tel. 215-   Ave., Suite 310, Lakewood, CO
 656-7100.                                80228-2583, 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, D.C. Metropolitan Office,
 1990 K Street NW., Room 510,
 Washington, DC 20006, Tel. 202-219-
 3562.
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. 404-865-5600.                Room 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. 2012-249 Filed 1-10-12; 8:45 am]
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