[Federal Register Volume 77, Number 200 (Tuesday, October 16, 2012)]
[Notices]
[Pages 63669-63706]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-25152]



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Vol. 77

Tuesday,

No. 200

October 16, 2012

Part V





Department of Transportation





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 Federal Transit Administration





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Notice of FTA Transit Program Changes, Authorized Funding Levels and 
Implementation of the Moving Ahead for Progress in the 21st Century Act 
(MAP-21) and FTA Fiscal Year 2013 Apportionments, Allocations, Program 
Information and Interim Guidance; Notice

Federal Register / Vol. 77 , No. 200 / Tuesday, October 16, 2012 / 
Notices

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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration


Notice of FTA Transit Program Changes, Authorized Funding Levels 
and Implementation of the Moving Ahead for Progress in the 21st Century 
Act (MAP-21) and FTA Fiscal Year 2013 Apportionments, Allocations, 
Program Information and Interim Guidance

AGENCY: Federal Transit Administration (FTA), DOT.

ACTION: Notice.

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SUMMARY: This notice announces changes in the Federal Transit 
Administration (FTA) programs in accordance with the Moving Ahead for 
Progress in the 21st Century Act (MAP-21), which authorizes surface 
transportation programs of the Department of Transportation for Federal 
fiscal years (FY) 2013 and 2014. This notice provides preliminary 
implementation instructions and guidance for the new and revised 
programs in FY 2013, announces the partial apportionment for programs 
authorized and funded with FY 2013 contract authority, and describes 
future plans for notice and comment for several programs. The notice 
also includes locations of tables of unobligated (or carryover) funds 
allocated under the discretionary programs from prior years carried out 
in accordance with the Safe, Accountable, Flexible, Efficient 
Transportation Equity Act: A Legacy For Users (SAFETEA-LU) or prior 
authorization acts.

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. FTA 
regional office contact information is available on FTA's Web site: 
www.fta.dot.gov.
    An FTA headquarters contact for each major program area is included 
in the discussion of that program in the text of the notice.
    FTA recommends that stakeholders subscribe on FTA's Web site 
(www.fta.dot.gov) to receive email notifications when new information 
is available.

SUPPLEMENTARY INFORMATION: 

Table Of Contents

I. Overview
II. FY 2013 Funding for FTA Programs
    A. MAP-21 Authorization and FY 2013 Continuing Resolution (CR) 
Appropriations
    B. Oversight Takedown
    C. Previously Authorized Funding
III. MAP-21 and FY 2013 Appropriations: Highlights of Changes
    A. Focus Areas
    1. Safety Authority
    2. State of Good Repair and Asset Management
    3. Streamlining and Program Efficiency
    i. Fixed Guideway Capital Investment Program
    ii. Pilot Program for Expedited Project Delivery
    4. Formula Funding and MAP-21 Discretionary Programs
    i. Transit-Oriented Development Planning Pilot Program
    ii. Passenger Ferry Program
    iii. Tribal Discretionary Program
    iv. Innovative Workforce Development Program
    v. Low or No Emission Vehicle Deployment
    5. Impacts of the 2010 Census
    B. Definitional Changes and New Definitions
    1. Associated Transit Improvement
    2. Bus Rapid Transit System
    3. Commuter Highway Vehicle or Vanpool Vehicle
    4. Disability
    5. Fixed Guideway
    6. Job Access and Reverse Commute Project
    7. Low-Income Individual
    8. Private Provider of Public Transportation by Vanpool
    9. Public Transportation
    10. Regional Transportation Planning Organization
    11. Senior
    C. Repealed Programs in FTA's Authorization
    1. Clean Fuels Grant Program (49 U.S.C. 5308)
    2. Fixed Guideway Modernization (49 U.S.C. 5309)
    3. Bus and Bus Facilities (49 U.S.C. 5309)
    4. Job Access and Reverse Commute Program (49 U.S.C. 5316)
    5. New Freedom Program (49 U.S.C. 5317)
    6. Paul S. Sarbanes Transit in Parks Program (49 U.S.C. 5320)
    7. Alternatives Analysis Program (49 U.S.C. 5339)
    8. Over-the-Road Bus Accessibility Program (Section 3038, Pub. 
L. 105-85)
    D. Cross-Cutting Programmatic Requirements and Changes
    1. Metropolitan and Statewide Planning
    2. Environmental Review Process
    3. Agency Safety Plans
    4. Transit Asset Management Provisions (and Asset Inventory and 
Condition Reporting)
    5. Costs Incurred by Providers of Public Transportation by 
Vanpool
    6. Revenue Bonds as Local Match
    7. Debt Service Reserve
    8. Government's Share of Cost of Vehicles, Vehicle-Equipment, 
and Facilities for ADA and Clean Air Act Compliance
    9. Private Sector Participation
    10. Bus Testing
    11. Buy America
    12. Corridor Preservation
    13. Rail Car Procurements
    14. Veterans Preference/Employment
    15. Alcohol and Controlled Substance Testing
    E. Title 23 (Federal-Aid Highways Program) Funds Eligible for 
Transit Purposes
    1. Surface Transportation Program (23 U.S.C. 133) (STP) and 
Transportation Alternatives Program (23 U.S.C. 101) (TAP)
    2. Congestion Mitigation and Air Quality Improvement Program (23 
U.S.C. 149) (CMAQ)
    3. National Highway Performance Program (23 U.S.C. 119) (NHPP)
    4. Transferring Title 23 funds from FHWA to FTA
    5. Matching Share for FHWA Transfers
    6. Title 49/Chapter 53 Funds Eligible for Highway Purposes
IV. Program-Specific Information
    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. Fixed Guideway Capital Investment Program (49 U.S.C. 5309)--
New and Small Starts and Core Capacity
    E. Enhanced Mobility of Seniors and Individuals with 
Disabilities Program (49 U.S.C. 5310)
    F. Rural Area Formula Program (49 U.S.C. 5311)
    G. Rural Transportation Assistance Program (49 U.S.C. 
5311(b)(2))
    H. Appalachian Development Public Transportation Assistance 
Program (49 U.S.C. 5311(c)(2)
    I. Formula Grants for Public Transportation on Indian 
Reservations Program (49 U.S.C. 5311(j))
    J. Research, Development, Demonstration, and Deployment Projects 
(49 U.S.C. 5312)
    K. Transit Cooperative Research Program (49 U.S.C. 5313)
    L. Technical Assistance and Standards Development (49 U.S.C. 
5314)
    M. Human Resources and Training Programs (49 U.S.C. 5322)
    N. Public Transportation Emergency Relief Program (49 U.S.C. 
5324)
    O. Public Transportation Safety Program (49 U.S.C. 5329)
    P. State of Good Repair Program (49 U.S.C. 5337)
    Q. Bus and Bus Facilities Formula Grants (49 U.S.C. 5339)
    R. Growing States and High Density States Formula Factors (49 
U.S.C. 5340)
    S. Washington Metropolitan Area Transit Authority Grants
V. FTA Policy and Procedures for FY 2013 Grants
    A. Automatic Pre-Award Authority To Incur Project Costs
    B. Letter of No Prejudice (LONP) Policy
    C. FY 2013 Annual List of Certifications and Assurances
    D. Civil Rights
    E. Consolidated Planning Grants

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    F. Grant Application Procedures
    G. Grant Management

I. Overview

    This document contains important information and interim guidance 
about new FTA programs and changes to existing FTA programs authorized 
by the Moving Ahead for Progress in the 21st Century Act (MAP-21) (Pub. 
L. 112-141), signed by President Obama on July 6, 2012, and effective 
on October 1, 2012.
    In addition, this document provides apportionments for FTA formula 
programs in amounts at approximately one half of the funding levels 
available in FY 2012 pursuant to the Continuing Appropriations 
Resolution, 2013 (CR) (Pub. L. 112-175). It also contains information 
on how FTA plans to administer its transit programs in fiscal year (FY) 
2013 and how funds appropriated and allocated prior to FY 2013 will be 
treated.
    This notice highlights important changes to FTA programs, including 
new safety authority, new asset management requirements, streamlining 
of the New and Small Starts Program, and the impact of the 2010 Census 
on apportionments for FY 2013. It describes definitional changes and 
cross-cutting requirements. It identifies repealed programs and 
provides specific information about FTA's programs as authorized under 
MAP-21.
    For each FTA program included, FTA has provided information on the 
MAP-21 authorized funding levels for FYs 2013 and 2014, funds available 
under the CR, the basis for apportionment or allocation of funds, 
requirements specific to the program, period of availability of funds, 
and other program information. A separate section provides information 
on pre-award authority and other requirements and guidance applicable 
to FTA programs and grant administration. Finally, the notice includes 
references to tables on FTA's Web site that show amounts apportioned 
under the CR, and approximately $1.9 billion in unobligated or 
carryover funding available in FY 2013 from prior years under certain 
discretionary programs carried out in accordance with SAFETEA-LU or 
other authorization acts.
    Information in this document includes references to the existing 
FTA program guidance circulars. While some information in the circulars 
has been superseded by new provisions in MAP-21, the circulars remain a 
resource for program guidance in most areas. FTA intends to revise the 
circulars, as appropriate, with an opportunity for public comment.
    To supplement the guidance provided in this document FTA is 
preparing answers to frequently asked questions (FAQs) on MAP-21 
changes and impacts received from its grantees, stakeholders, and other 
interested parties. These FAQs will be posted on the FTA's Web site as 
they become available.

II. FY 2013 Funding for FTA Programs

A. MAP-21 Authorization and FY 2013 Continuing Resolution (CR) 
Appropriations

    MAP-21 is the new two-year surface transportation authority that 
provides FTA an authorization level of $10.6 billion in FY 2013 and 
$10.7 billion in FY 2014. MAP-21 consolidates certain transit programs 
to improve their efficiency and provides significant funding increases 
specifically for improving the state of good repair of the nation's 
transit systems. The law grants FTA authority to strengthen the safety 
of public transportation systems throughout the United States. It also 
streamlines the New Start process to expedite project delivery and 
provides for core capacity project eligibility. MAP-21 took effect on 
October 1, 2012.
    The CR makes continuing appropriations for FY 2013 through March 
27, 2013 at approximately one half of the FY 2012 funding levels. The 
CR specifies that appropriations are provided for continuing projects 
or activities for which funding was available in that fiscal year, 
except as provided in section 154 of the CR. In section 154 of the CR, 
Congress updated the appropriations language for FTA's formula programs 
providing an obligation limitation and liquidating authority to reflect 
changes to FTA's formula programs authorized in MAP-21. Section 154 of 
the CR allows FTA to administer FY 2013 funds for formula grant 
programs according to the terms and conditions established under MAP-
21. Current funding availability for each program is identified in 
section IV of this notice and in Table 1 located on FTA's FY 2013 
Apportionment Web page. Funding under the CR is not available for 
programs that were repealed by MAP-21 or for the new Transit Oriented 
Development (TOD) discretionary program, which was authorized by MAP-21 
but not identified in section 154 of the CR.

B. Oversight Takedown

    MAP-21 modifies section 5338(i) \1\ to provide for the following 
oversight takedowns of FTA programs: 0.5 percent of Metropolitan and 
Statewide Planning funds, 0.75 percent of Urbanized Area Formula funds, 
1 percent of Fixed Guideway Capital Investment funds, 0.5 percent of 
Formula Grants for the Enhanced Mobility of Seniors and Individuals 
with Disabilities, 0.5 percent of Formula Grants for Rural Areas, 0.75 
percent of High Intensity Fixed Guideway State of Good Repair Formula 
funds, and 1 percent of Capital and Preventive Maintenance Projects for 
Washington Metropolitan Area Transit Authority funds. The funds are 
used to provide necessary oversight activities, such as oversight of 
the construction of any major capital project receiving Federal transit 
assistance; 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.
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    \1\ All references to ``section'' herein refer to sections of 
Chapter 53 of Title 49 of the United States Code, unless otherwise 
specifically stated.
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C. Previously Authorized Funding

    FYs 2005 through 2012 funds that remain unobligated and for which 
the program has been repealed or its activities consolidated with other 
programs under Chapter 53, will continue to be subject to the program 
and eligibility requirements that existed prior to the enactment of 
MAP-21 and to new cross-cutting requirements found in section III.D. of 
this notice. These programs are as follows:

 Section 5307 Urbanized Area Formula Grant Funds
 Section 5309(b)(2) Fixed Guideway Modernization Formula 
Program
 Section 5309(b)(3) Bus, Bus-Related Equipment and Bus 
Facilities Discretionary Grants
 Section 5309(m)(6)(B) Alaska-Hawaii Ferryboats
 Section 5309(m)(6)(C) Denali Commission
 Section 5309(m)(7)(A) Bus and Bus Facility Grants
 Section 5309(m)(7)(B) Fuel Cell Program
 Section 5309(m)(7)(C) Projects Not In Urbanized Areas
 Section 5309(m)(7)(D) Intermodal Terminals

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 Section 5310 Formula Grants for Special Needs of Elderly 
Individuals and Individuals with Disabilities
 Section 5311 Formula Grants for Other Than Urbanized Areas
 Section 5312 Research, Development, Demonstration, and 
Deployment Projects
 Section 5314 National Research Programs
 Section 5316 Job Access and Reverse Commute Formula Grants
 Section 5317 New Freedom Program
 Section 5320 Paul S. Sarbanes Transit in the Parks Program
 Section 5339 Alternatives Analysis Program
 Section 3038 of TEA-21, as amended by SAFETEA-LU, Over-the-
Road Bus Program

    For programs that are continued under MAP-21, the provisions of 
MAP-21 now apply to all unobligated funds from FY 2012 and prior, as 
well as to FY 2013 funds. These programs are:

 Section 5305 Planning Programs
 Section 5309 Fixed Guideway Capital Investment Grants 
(formerly Capital Investment Program)

    All references in this notice to ``section'' refer to Chapter 53 of 
Title 49 of the U.S. Code, unless otherwise specified.

III. MAP-21 and FY 2013 Appropriations: Highlights of Changes

    MAP-21 furthers several important goals of the Department of 
Transportation, including safety, state of good repair, performance, 
and program efficiency. MAP-21 provides FTA significant new authority 
to strengthen the safety of public transportation systems throughout 
the United States. The Act also puts new emphasis on restoring and 
replacing the Nation's aging public transportation infrastructure by 
establishing a new State of Good Repair formula program and new asset 
management requirements. In addition, it aligns Federal funding with 
key goals and tracks progress towards these goals. Finally, MAP-21 
improves the efficiency of administering grant programs by 
consolidating several programs and streamlining the fixed guideway 
capital investment grant program.

A. Focus Areas

1. Safety Authority
    MAP-21 provides FTA significant new authority to strengthen the 
safety of public transportation systems throughout the United States by 
granting FTA the authority to establish and enforce a new comprehensive 
framework to oversee the safety of public transportation. Under MAP-21, 
FTA has enforcement authority to issue directives; require more 
frequent oversight of transit systems; impose more frequent reporting 
requirements; and require that formula grant funds be spent to correct 
safety deficiencies before funds are spent on other projects. FTA will 
implement the new law in consultation with the transit community and 
the U.S. Department of Transportation's (DOT) Transit Rail Advisory 
Committee for Safety (TRACS), the latter of which has been working 
since September of 2010 to help guide this effort. Following the 
promulgation of a rule, recipients of FTA funding will be required to 
have a public transportation agency safety plan in place in order to 
obligate any grant funds available under Chapter 53. Additional 
information on this new authority and the requirements under section 
5329 can be found in section IV.O. of this notice.
2. State of Good Repair and Asset Management
    MAP-21 places greater emphasis on restoring and replacing aging 
transportation infrastructure by establishing new asset management 
requirements as well as a new State of Good Repair formula program.
    Section 5326 as amended by MAP-21, requires FTA to define the term 
``state of good repair'' and create objective standards for measuring 
the condition of capital assets, including equipment, rolling stock, 
infrastructure, and facilities. Subsequent to FTA defining this term 
through a rulemaking, all FTA recipients will be required to set 
performance targets based on that definition, and report on progress 
towards meeting those targets. These measures and targets must be 
incorporated into metropolitan and statewide transportation plans and 
transportation improvement programs (TIPs). Also subsequent to a final 
rule defining state of good repair, all FTA recipients and their 
subrecipients will be required to develop transit asset management 
plans. Recipients of FTA formula funding also will be required to 
report asset inventory and condition information to FTA's National 
Transit Database (NTD). FTA will support this effort through technical 
assistance, including asset management decision support tools that 
allow recipients to estimate their capital investment needs over time 
and assist with asset investment prioritization.
    MAP-21 also establishes a new grant program to maintain public 
transportation systems in a state of good repair. This program, set 
forth in section 5337, replaces the fixed guideway modernization 
program (formerly authorized in section 5309). Funding under this 
program is limited to fixed guideway systems (including rail, bus rapid 
transit, and passenger ferries) and high intensity bus (buses operating 
in high occupancy vehicle (HOV) lanes.) Please see section IV.B. of 
this notice for more information about this new program.
3. Streamlining and Program Efficiency
i. Fixed Guideway Capital Investment Grants Program (49 U.S.C 5309)--
(New and Small Starts)
    MAP-21 modified the Capital Investment Program by expanding the 
eligibility to Core Capacity Improvement projects and streamlining the 
process. Similar to SAFETEA-LU, New Starts projects are defined as 
projects with a total capital cost of $250 million or greater or that 
are seeking $75 million or more in section 5309 funding. Eligible 
projects are new fixed-guideway systems, such as rapid rail (heavy 
rail), commuter rail, light rail, hybrid rail, trolleybus (using 
overhead catenary), cable car, passenger ferries, and bus rapid 
transit, or an extension of any of these systems. Also similar to 
SAFETEA-LU, Small Starts projects are defined as projects with a total 
capital cost less than $250 million and that are seeking less than $75 
million in section 5309 funding. 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 separated fixed 
guideway but include features that emulate the services provided by 
rail fixed guideway including defined stations, traffic signal priority 
for public transit vehicles, and short headway bi-directional services 
for a substantial part of weekdays and weekend days. MAP-21 also makes 
Core Capacity Improvement projects eligible for section 5309 funding. 
These are substantial, corridor-based investments in existing fixed 
guideway systems that are at capacity today or will be in five years. A 
Core Capacity Improvement project must increase the capacity of the 
existing fixed guideway system in the corridor by at least 10 percent.
    MAP-21 reduces the number of steps in the process for projects 
pursuing capital investment program funding. For New Starts and Core 
Capacity Improvement projects, the steps in the process now consist of 
project development, engineering, and construction. For Small Starts 
projects the steps in the process consist of

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project development and construction. Alternatives Analysis no longer 
is required. FTA must evaluate and rate projects seeking section 5309 
funding according to statutorily defined criteria at various steps in 
the process. FTA will implement changes under MAP-21 to improve the 
efficiency of the New and Small Starts process and implement the new 
Core Capacity Improvement process through rule-making and future policy 
guidance, which will be developed through a notice and comment process.
ii. Pilot Program for Expedited Project Delivery
    MAP-21 requires FTA to develop a pilot program for expedited 
project delivery. Eligible projects will be new fixed guideway capital 
projects or core capacity improvement projects as defined under section 
5309 that have not yet received a full funding grant agreement. Three 
projects will be selected for the pilot program, and must demonstrate 
innovative project development and delivery methods or innovative 
financing arrangements that can expedite project delivery. At least one 
of the three projects selected must be an eligible project requesting 
more than $100 million in section 5309 funding and another must be an 
eligible project requesting less than $100 million in section 5309 
funding. Applicants to this program also must certify that their 
existing public transportation system is in a state of good repair. FTA 
will publish guidance in a future Federal Register notice describing 
the process for project sponsors to apply to FTA for consideration as a 
pilot project. The program itself includes no additional funding.
4. Formula Funding and MAP-21 Discretionary Programs
    Under MAP-21, several of FTA's programs were repealed, 
consolidated, or changed from a discretionary program to a formula-
based program. The Bus and Bus Facilities capital program and most of 
the Tribal Transit funding now are provided by formulas specified by 
Congress. The shift to more formula programs provides steady and more 
predictable funding for transit investments.
    MAP-21, however, does authorize several discretionary grant 
programs. FTA is in the process of developing the criteria and program 
guidance for the following discretionary programs, which will be 
published in Notices of Funding Availability (NOFA). These programs 
include:
i. Transit-Oriented Development Planning Pilot Program
    MAP-21 authorizes $10 million per year in FYs 2013 and 2014 for a 
new discretionary pilot program for transit-oriented development (TOD) 
planning grants. Eligible activities include comprehensive planning in 
corridors with new rail, bus rapid transit, or core capacity 
improvement projects. The comprehensive plans should seek to enhance 
economic development, ridership, and other goals; facilitate multimodal 
connectivity and accessibility; increase access to transit hubs for 
pedestrian and bicycle traffic; enable mixed-use development; identify 
infrastructure needs associated with the project; and include private 
sector participation. Grant funds are not currently available under the 
CR. For more information or questions on this program, please contact 
Beth Day at 202-366-5159 or Elizabeth.day@dot.gov.
ii. Passenger Ferry Program
    In FYs 2013 and 2014, $30 million per year is set aside from the 
urbanized area formula program to support passenger ferry projects. 
Funding will be awarded on a competitive basis. FTA will publish more 
details on program purpose, eligible applicants and activities, and 
cost sharing or matching in a subsequent NOFA. For more information or 
questions on this program, please contact Vanessa Williams at (202) 
366-4818 or vanessa.williams@dot.gov.
iii. Tribal Transit Discretionary Program
    The Tribal Transit program continues to be a set-aside from the 
Rural Areas Formula program but now consists of a $25 million formula 
program and a $5 million discretionary grant program. The formula 
program is described in section IV of this notice. With the creation of 
a formula program specifically for tribal transit, FTA intends to 
evaluate, in consultation with the tribes, how the discretionary 
program can be used to augment the formula funding or ``fill gaps.'' 
FTA will develop the terms and conditions for the Tribal Transit 
program in consultation with tribal representatives and other 
interested stakeholders. More information regarding the consultation 
process will be made available in the upcoming FY 2012 Notice of Awards 
in the Federal Register for the FY 2012 Tribal Transit discretionary 
program. For more information or questions on this program, please 
contact Elan Flippin at (202) 366-2053 or elan.flippin@dot.gov.
    iv. Innovative Workforce Development Program
    Along with other Human Resources and Training authorized in section 
5322, MAP-21 authorizes an Innovative Public Transportation Workforce 
Development Competition (section 5322(b)). This competitive grant 
program will assist in the development of new and innovative workforce 
development activities in the transit industry. Funding for this and 
other human resource and training activities is authorized at $5 
million annually.
    No funding is available for this program under the CR. As such, a 
NOFA will be developed subject to further appropriations with more 
details on program purpose, eligible applicants and activities, and 
cost sharing or matching once appropriations are provided. For more 
information or questions on this program, please contact Betty Jackson 
at (202) 366-1730 or betty.jackson@dot.gov.
v. Low or No Emission Vehicle Deployment Program
    MAP-21 restructures the National Research Program and authorizes a 
new competitive grant program within this program for Low or No 
Emissions Vehicle Deployment (section 5312(d)(5)). The Low or No 
Emission Vehicle Deployment Program authorizes funding for a 
competitive grant program for nonattainment or maintenance areas for 
capital projects for low or no emission vehicles, facilities, and 
related equipment. Within the amount appropriated for this program, at 
least 65 percent must be spent for acquiring or leasing low or no 
emissions buses and 10 percent for low or no emissions bus facilities. 
No funding is available for this program under the CR. As such, a NOFA 
will be developed with additional details on program purpose, eligible 
applicants and activities, and cost sharing or matching once 
appropriations are provided. For more information, please contact 
Walter Kulyk at (202) 366-4995 or walter.kulyk@dot.gov.
5. Impacts of the 2010 Census for FTA's Fiscal Year 2013 Apportionments
    In FY 2013, FTA is incorporating the results of the 2010 Census 
into its formula apportionments, as required by law, and grant 
administration procedures for the first time. (Although FTA published 
two supplemental apportionments for FY 2012 after the 2010 Census 
Urbanized Areas (UZAs) were released, those apportionments continued to 
rely on the 2000 Census data).

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    On March 27, 2012, the Bureau of the Census released a list of UZAs 
based on the results of the 2010 Decennial Census. The Census data 
shows that the number of UZAs increased from 465 in 2000 to 497 in 
2010, and the total population residing in UZAs increased from 195 to 
223 million, an increase of approximately 12 percent.
    The 2010 Census resulted in some UZAs crossing statutorily-mandated 
population thresholds that may change the amount of formula funds that 
those areas can receive and may also change the eligible uses of these 
funds. Five more UZAs now have populations of over 1 million people, 
one UZA lost population such that its population is now under 1 
million, twenty-seven additional UZAs now have populations over 200,000 
but below 1 million, thirty-six areas became newly qualified UZAs with 
populations of between 50,000 and 199,999, and four UZAs experienced 
population losses and are now areas under 50,000 in population and are 
no longer considered to be UZAs.
    In addition, the boundaries of many UZAs have shifted and resulted 
in former urban clusters (i.e., areas with populations under 50,000) 
and former non-urbanized areas to be now located within the boundaries 
of a UZA.
    FTA published on its Web site additional information on 2010 Census 
UZAs, including a fact sheet, a comparison of the 2000 and 2010 Census 
UZAs and their population, and a matrix of how 2010 Census changes will 
affect the eligible activities of and formula apportionments made to 
FTA grant recipients. A Program-by-Program analysis of the impacts of 
the Census data on FTA's formula programs also is posted on FTA's Web 
site. The Census Bureau has published reference maps of the 2010 
urbanized areas at ftp://ftp2.census.gov/geo/maps/dc10map/UAUC_RefMap/ua/.

B. Definitional Changes and New Definitions

    Section 20004 of MAP-21 modified section 5302 to provide new 
definitions and to modify existing definitions that clarify eligibility 
and requirements within FTA's programs. Unless otherwise stated, these 
definitions apply across all FTA programs. Several important 
definitional changes include:
1. Associated Transit Improvement
    The term ``transit enhancements'' was changed to ``associated 
transit improvements.'' An associated transit improvement is a project 
``designed to enhance public transportation service or use and that 
[is] physically or functionally related to transit facilities.'' 
Eligible associated transit improvements include historic preservation, 
rehabilitation, and operation of historic public transportation 
buildings, structures, and facilities (including historic bus and 
railroad facilities) intended for use in public transportation service; 
bus shelters; landscaping and streetscaping, including benches, trash 
receptacles, and street lights; pedestrian access and walkways; bicycle 
access, including bicycle storage facilities and installing equipment 
for transporting bicycles on public transportation vehicles; signage; 
or enhanced access for persons with disabilities to public 
transportation. Congress struck ``public art'' and ``transit 
connections to parks within the recipient's transit service area'' from 
the list of eligible projects. While Federal transit funds are no 
longer available to support public art in transit facilities, art can 
be incorporated into facility design, landscaping, and historic 
preservation, for example through the use of floor or wall tiles that 
contain artistic designs or patterns, use of color, use of materials, 
lighting, and the overall design of a facility. In addition, eligible 
capital projects include incidental expenses related to acquisition or 
construction, including design costs. Therefore, the incidental costs 
of incorporating art into facilities and including an artist on a 
design team continue to be eligible expenses.
2. Bus Rapid Transit (BRT) System
    The term ``bus rapid transit system'' is now defined by statute, 
and this definition impacts how BRT systems qualify as fixed-guideway 
service for the Urbanized Area Formula Program and State of Good Repair 
Formula Program apportionments. The statutory definition is narrower 
than the definition used previously for purposes of the NTD. FTA used 
NTD data and other sources to determine which BRT systems qualify under 
the new statutory definition. FTA will issue a future Federal Register 
Notice to update the reporting guidance in the NTD Reporting Manual. As 
defined by section 5302, a ``bus rapid transit system'' means a bus 
system in which the majority of each line operates in a separated, 
dedicated, right-of-way for transit during peak periods and includes 
features that emulate the services provided by rail transit, 
including--defined stations; traffic signal priority; short headways 
for a substantial part of weekdays and weekend days; and any other 
features the Secretary may determine are necessary to produce high-
quality transit services that emulate the services provided by rail 
transit. This definition means that a BRT system may include a mixture 
of both exclusive guideway and non-dedicated guideway with traffic 
signal priority, so long as the exclusive guideway (during peak 
periods) constitutes a ``majority of the line'' and so long as the 
other features emulating rail transit are present. All BRT systems 
meeting this definition are classified as fixed-guideway (see below) 
for purposes of the Urbanized Area Formula Program and State of Good 
Repair Formula Program apportionments. Readers should be careful not to 
confuse the definition of ``bus rapid transit system'' under section 
5302 with the different types of bus rapid transit projects defined by 
section 5309, the statute that authorizes the New Starts and Small 
Starts programs. Under section 5309 there are definitions for both a 
``fixed guideway bus rapid transit project'' and a ``corridor-based bus 
rapid transit project'' which set limitations for the types of BRT 
projects that may be eligible to compete for discretionary New Starts 
or Small Starts funds.
3. Commuter Highway Vehicle or Vanpool Vehicle
    This term is a new definition in Chapter 53 and is found in section 
5323(i). A Commuter Highway Vehicle or Vanpool Vehicle is defined as 
any vehicle seating at least 6 adults (not including the driver); and 
at least 80 percent of the mileage use of which can be reasonably 
expected to be for the purposes of transporting commuters in connection 
with travel between their residences and their place of employment.
4. Disability
    The definition of ``disability'' was amended so that it has the 
same meaning as in the Americans with Disabilities Act (ADA), 42 U.S.C. 
12101, et seq. However, the definition in section 5302 does not apply 
to the half-fare provision in section 5307(c)(1)(D). The half-fare 
provision continues to apply to seniors, persons with Medicare cards, 
and persons who ``because of illness, injury, age, congenital 
malfunction, or other incapacity or temporary or permanent disability 
(including an individual who is a wheelchair user or has semi-
ambulatory capability), cannot use a public transportation service or a 
public transportation facility effectively without special facilities, 
planning, or design.''
5. Fixed Guideway
    The definition of ``fixed guideway'' was amended to remove high 
occupancy

[[Page 63675]]

vehicle lanes, although bus service operating in high occupancy vehicle 
lanes remains eligible for certain funds under the State of Good Repair 
Formula Program apportionment. The new definition of fixed guideway 
includes any facility for the exclusive use of transit vehicles, as 
well as facilities for rail, using a fixed catenary system (e.g. 
trolleybus service), for a passenger ferry system or for a bus rapid 
transit system (see new definition above).
6. Job Access and Reverse Commute Project
    The SAFETEA-LU Job Access and Reverse Commute (JARC) Program, 
(section 5316), was repealed by MAP-21; however, job access and reverse 
commute projects are eligible under the sections 5307 and 5311 
programs. A definition for ``job access and reverse commute project'' 
was added to section 5302 as follows: ``a transportation project to 
finance planning, capital, and operating costs that support the 
development and maintenance of transportation services designed to 
transport welfare recipients and eligible low-income individuals to and 
from jobs and activities related to their employment, including 
transportation projects that facilitate the provision of public 
transportation services from urbanized areas and rural areas to 
suburban employment locations.'' Please see sections IV.C. and F. of 
this notice for additional information.
7. Low-Income Individual
    The term is defined as, ``an individual whose family income is at 
or below 150 percent of the poverty line, as defined in section 673(2) 
of the Community Services Block Grant Act (42 U.S.C. 9902(2)), 
including any revision required by that section, for a family of the 
size involved.'' The formulas for funding apportionment in sections 
5307 and 5311 now include consideration of the number of low-income 
individuals in a rural or urbanized area for part of the apportionment. 
However, this definition does not apply to the formula for public 
transportation on Indian reservations, which defines a low-income 
individual as an individual whose family income is at or below 100 
percent of the poverty line.
8. Private Provider of Public Transportation by Vanpool
    This term is a new definition in Chapter 53 and is found in section 
5323(i). A private provider of public transportation by vanpool is 
defined as a private entity providing vanpool services in the service 
area of a recipient using a commuter highway vehicle or a vanpool 
vehicle. Under MAP-21 and as described in section D of this notice, 
``Cross-Cutting Programmatic Requirements,'' there is a new allowance 
for local match related to private vanpool providers.
9. Public Transportation
    Congress amended the definition of ``public transportation'' to 
specify that public transportation is regular, continuing, shared-ride, 
surface transportation service that is ``open to the general public or 
open to a segment of the general public defined by age, disability, or 
low income.'' Public transportation does not include Amtrak service, 
intercity bus service, charter bus service, school bus service, 
sightseeing service, courtesy shuttle service for patrons of one or 
more specific establishments; or intra-terminal or intra-facility 
shuttle services.
10. Regional Transportation Planning Organization
    This term is a new definition for Chapter 53, and is found in 
section 5303, Metropolitan Transportation Planning. A ``regional 
transportation planning organization'' is ``a policy board of an 
organization'' that a State may establish and designate under section 
5304(l) ``to enhance the planning, coordination, and implementation of 
statewide strategic long-range transportation plans and transportation 
improvement programs, with an emphasis on addressing the needs of 
nonmetropolitan areas of the State.'' Section 5304(l)(5) further 
provides that, ``if a State chooses not to establish or designate a 
regional transportation planning organization, the State shall consult 
with affected nonmetropolitan local officials to determine projects 
that may be of regional significance.''
11. Senior
    This is a new term to Chapter 53, and means an individual who is 65 
years of age or older. The term is used in section 5310, Enhanced 
Mobility for Seniors and Individuals with Disabilities.

C. Repealed Programs in FTA's Authorization

    MAP-21 focuses on improving the efficiency of grant program 
operations by consolidating certain programs and repealing other 
programs. Several of the activities eligible under repealed programs 
can be found in programs continued or created under MAP-21. The 
following programs expired on September 30, 2012 and no new funding is 
authorized beyond fiscal year 2012. However, unobligated funds 
appropriated or authorized in FY 2012 and prior years remain available 
for obligation (for the established period of availability when 
appropriated or allocated) and expenditure, and follow program-specific 
requirements established under SAFETEA-LU and prior authorizations. In 
addition, there are new cross-cutting requirements under MAP-21 found 
in section III.D of this notice that apply to all grants after October 
1, 2012.
1. Clean Fuels Grant Program (49 U.S.C. 5308)
    The Clean Fuels Grant Program was a discretionary program and the 
final FY 2012 allocations were announced on September 14, 2012 in 
response to the NOFA published February 7, 2012 for sections 5308 and 
5309 bus funds. Unobligated discretionary allocations (found in Table 7 
on FTA's FY 2013 Apportionment Web site) may be obligated through the 
period of availability, following the SAFETEA-LU requirements.
2. Fixed Guideway Modernization (49 U.S.C. 5309(b)(2))
    The Fixed Guideway Modernization Program was a formula program, and 
the funds for FY 2012 and prior years have been previously apportioned. 
Unobligated carryover balances for this program may be obligated 
through the period of availability, following the SAFETEA-LU 
requirements. Under MAP-21, elements of this program have been replaced 
with the State of Good Repair formula program (section 5337).
3. Bus and Bus Facilities Program (49 U.S.C. 5309(b)(3))
    The discretionary Bus and Bus Facilities Program provided funds for 
capital bus and bus facility grants in support of the Department's 
State of Good Repair, Bus Livability, Veterans Transportation and 
Community Living, and Clean Fuels initiatives. In addition, SAFETEA-LU 
allocated funds under this program for Ferry Boat Systems, Fuel Cell 
Bus, and the Bus Testing program.
    FY 2012 Bus and Bus Facilities discretionary funds have been 
allocated through the FY 2012 Veteran's and Community Living Initiative 
(VTCLI), State of Good Repair, and Bus and Bus Livability discretionary 
competitions. FY 2012 and prior year allocations remain available for 
the period of availability and must be used for the purpose selected.
    Prior year allocations for Ferry Boat Systems, Fuel Cell Bus, and 
Bus Testing (found in Table 8 on FTA's FY 2013

[[Page 63676]]

Apportionment Web page) may be obligated through the period of 
availability, following the SAFETEA-LU requirements. Under MAP-21, 
elements of this program have been replaced with the Bus and Bus 
Facilities formula program (section 5339).
4. Job Access and Reverse Commute (JARC) Program (49 U.S.C. 5316)
    The formula JARC Program funds for FY 2012 and prior years under 
SAFETEA-LU have been apportioned. Unobligated carryover balances for 
the JARC program may be obligated through the period of availability, 
but must follow the SAFETEA-LU requirements. For example, section 5316 
JARC projects must still be derived from a human service public 
transportation coordinated plan and must also be selected through an 
area-wide or statewide competitive selection process by the designated 
recipient.
    Under MAP-21, activities that were funded under the section 5316 
JARC program are eligible under sections 5307 Urbanized Area Formula 
Grants, and 5311 Formula Grants for Rural Areas. Please see section 
IV.C. and F. of this notice for additional information.
5. New Freedom Program (49 U.S.C. 5317)
    The formula New Freedom Program funds for FY 2012 and prior years 
under SAFETEA-LU have been apportioned. Unobligated carryover balances 
for the New Freedom program funds may be obligated through the period 
of availability, but must follow the SAFETEA-LU rules and requirements. 
For example, section 5317 New Freedom projects must still be derived 
from a locally developed, coordinated public transit-human services 
transportation plan and must also be selected through an area-wide or 
statewide competitive selection process by the designated recipient.
    Under MAP-21, the types of activities that were funded under the 
section 5317 New Freedom program are now eligible under section 5310, 
Formula Grants for the Enhanced Mobility of Seniors and Individuals 
with Disabilities. Please see section IV.E. of this notice for 
additional information.
6. Paul S. Sarbanes Transit in Parks Program (49 U.S.C. 5320)
    FTA published a notice of funding availability on August 28, 2012 
for the final allocation of program funding, which will be announced in 
fall 2012. Under MAP-21, public transportation investments serving 
national parks and other Federal lands remain eligible under the 
Federal Lands Transportation Program and the Federal Lands Access 
Program administered by the Federal Highway Administration (FHWA). 
Interested recipients should visit the FHWA Web page (http://www.fhwa.dot.gov) for additional information on these programs.
7. Alternatives Analysis Program (49 U.S.C. 5339)
    FTA issued a notice of funding availability for FY 2012 funds on 
March 12, 2012. However, MAP-21 repealed the section 5309 requirement 
that Major Capital Investment projects must be based on the results of 
an alternatives analysis, eliminating the principal statutory 
requirement associated with section 5339 Alternatives Analysis Program 
grants. Therefore, the use of the FY 2012 Alternatives Analysis Program 
funds will be determined at a later date. Unobligated FY 2011 and prior 
year allocations remain available for the period of availability and 
must be used for the purpose selected. Unobligated discretionary 
allocations are listed in Table 16 on FTA's FY 2013 Apportionment Web 
page.
8. Over-the-Road Bus Accessibility Program (Section 3038, Pub. L. 105-
85)
    FTA issued a notice of funding availability on April 30, 2012. The 
final allocation of program funding is scheduled to be announced in 
fall 2012. Unobligated funds will be available for obligation until 
expended.

D. Cross-cutting Programmatic Requirements and Changes

    The following cross-cutting requirements apply to all FTA programs 
as of October 1, 2012 unless otherwise noted. Additionally they also 
apply to programs that otherwise continue to follow SAFETEA-LU 
requirements.
1. Metropolitan and Statewide Planning
    The planning programs provide funding and procedural requirements 
to metropolitan areas and States for multimodal transportation planning 
that is cooperative, continuous, and comprehensive, resulting in long-
range plans and short-range programs of projects of transportation 
investment priorities. $127 million is provided in FY 2013 and $129 
million in FY 2014. The planning programs are jointly administered by 
FTA and FHWA, which provides additional funding. Under MAP-21, four 
significant changes are noted below. These requirements will not go 
into effect until FTA and FHWA complete a rulemaking process and issue 
further guidance.
    i. Establishes a performance-based planning process: MAP-21 
requires Metropolitan Planning Organizations (MPOs) and States to 
establish performance targets that address forthcoming U.S. DOT-issued 
national performance measures that are based on the goals outlined in 
the legislation--safety, infrastructure condition, congestion 
reduction, system reliability, economic vitality, environmental 
sustainability, reduced project delivery delays, transit safety, and 
transit asset management. MPOs also must coordinate their performance 
targets, to the maximum extent practicable, with performance targets 
set by FTA grantees under the new performance measure requirements for 
safety and state of good repair. Transportation Improvement Programs 
(TIPs) must include a description of the anticipated progress toward 
achieving the performance targets resulting from implementation of the 
TIP. Five years after enactment of MAP-21, U.S. DOT is to provide 
Congress with a report evaluating the effectiveness of performance-
based planning and assessing the technical capacity of MPOs in smaller 
areas to undertake performance-based planning.
    ii. Requires transit representation on MPO policy boards in large 
urbanized areas: Within two years, MPOs in urbanized areas designated 
as transportation management areas must include officials of public 
transit agencies that administer or operate major modes of 
transportation, as well as representatives of public transit operators, 
on MPO policy boards.
    iii. Supports optional scenario development: MPOs may undertake 
scenario development exercises in preparing the long-range 
transportation plan that consider alternative demographic growth, 
revenue options, and other factors.
    iv. Allows designation of Regional Transportation Planning 
Organizations: Regional transportation planning organizations may be 
designated, comprised of volunteer local government and transportation 
officials, to assist the State in addressing the needs of 
nonmetropolitan areas. Accordingly, ``statewide planning'' has been 
renamed ``statewide and nonmetropolitan planning'' to signify the 
important role of local officials in nonmetropolitan areas of States in 
the development of statewide plans and programs.
2. Environmental Review Process
    The National Environmental Policy Act (NEPA), 42 U.S.C. 4321, et 
seq., and other Federal environmental laws, regulations and executive 
orders, require that every project proposed for FTA funding assistance 
be subjected to

[[Page 63677]]

some level of environmental review prior to its approval. MAP-21 has 
made changes to the environmental review process intended to accelerate 
the process for major projects and expand the lists of projects that 
are categorically excluded. MAP-21 environmental guidance and 
regulatory changes will be forthcoming.
3. Agency Safety Plans
    Section 5329 requires all FTA grantees to develop comprehensive 
agency safety plans that at a minimum include methods for identifying 
and evaluating safety risks, strategies to minimize exposure to hazards 
and unsafe conditions, and performance targets for safety performance 
criteria and state of good repair standards established in a 
forthcoming National Public Transportation Safety Plan. More 
information regarding state of good repair standards is included in the 
next paragraph, section IV.D.4.a., of this notice. The agency safety 
plan and any updates must be approved by the recipient's board of 
directors (or equivalent entity) and certified by FTA or a State. The 
agency safety plan also will need to identify an adequately trained 
safety officer who reports directly to the recipient's chief executive 
and provide a comprehensive staff training program for operations 
personnel and personnel directly responsible for safety. The staff 
training program must include completion of a safety training program 
and continuing safety education and training. Plans developed pursuant 
to Part 659 of title 49 Code of Federal Regulations and in effect on 
October 1, 2012, will remain in effect until the new agency safety plan 
requirements are in place. For recipients without a 49 CFR part 659 
plan in place on October 1, 2012, this requirement will not apply as a 
condition for receiving assistance until one year after the effective 
date of a final rule. Rural sub-recipients of section 5311 funds may 
have their plans drafted and certified by a State. Similarly, FTA will 
issue a rule designating small urban systems receiving section 5307 
funding that may have their agency safety plan drafted or certified by 
a State.
4. Transit Asset Management Provisions (and Asset Inventory and 
Condition Reporting)
    MAP-21 requires FTA to establish a national transit asset 
management system that includes: (1) A definition of state of good 
repair with performance measures; (2) a requirement that grantees 
develop transit asset management plans; (3) reporting requirements for 
asset inventory and condition assessments; (4) analytical process or 
decision support tools; and (5) technical assistance on asset 
management for grantees.
i. State of Good Repair and Performance Measures
    Through a rulemaking, FTA will define ``state of good repair'' for 
transit systems. MAP-21 specifies that this definition will provide 
``objective standards for measuring the condition of capital assets * * 
* including equipment, rolling stock, infrastructure, and facilities.'' 
At the conclusion of the rulemaking, grant recipients will be required 
to establish performance targets relative to the definition of state of 
good repair and to report these targets, and progress towards meeting 
them to FTA. The measures and targets also must be coordinated to the 
maximum extent practicable with the metropolitan and statewide 
transportation plans and transportation improvement programs (TIPs), as 
well as incorporated into recipients' agency safety plans.
ii. Transit Asset Management (TAM) Plans
    MAP-21 requires that each recipient and subrecipient of FTA grants 
must establish a ``transit asset management'' (TAM) plan for its 
transit system. This requirement, however, will not be a condition for 
receiving FTA grant funds until FTA issues a rulemaking.
    Through a rulemaking, FTA will establish requirements for a capital 
asset inventory, condition assessments, decision support tools, and 
prioritization of capital investments, all of which must be included in 
a TAM. Once the TAM rulemaking is issued, grantees apportioned funds 
under the new State of Good Repair (SGR) Formula Program (section 5337) 
will be required to include all SGR-funded projects in their own TAM 
plan.
iii. Reporting Requirements
    MAP-21 also established new requirements for reporting asset 
inventories and condition assessments to FTA at sections 5326(b)(3), 
5335(a), and 5335(c). FTA grantees and sub-recipients should look for a 
future Federal Register Notice with proposed changes to the FTA's NTD 
Reporting Manual for more information and an opportunity to comment on 
FTA's implementation of these new statutory requirements.
iv. Tools and Technical Assistance
    MAP-21 requires FTA to provide technical assistance on transit 
asset management, including a requirement for FTA to develop a 
``decision support tool'' for use by transit systems in estimating 
capital investment needs and prioritizing capital expenditures. FTA has 
developed such a decision support tool, TERM-Lite, which is available 
online at: http://www.fta.dot.gov/TERM-Lite. This tool has been used by 
several transit agencies to assist them in estimating their investment 
needs, and will continue to be refined by FTA for this purpose.
5. Costs Incurred by Providers of Public Transportation by Vanpool
    MAP-21 amends section 5323(i) ``Government Share of Costs for 
Certain Projects'' to include a paragraph that permits FTA to allow a 
recipient to count, as part of their local match for a capital project, 
funds used to purchase vanpool vehicles by private providers of public 
vanpool (including funds from fare revenues above operating expenses 
but not including any funding from Federal, State or local government 
sources). For the costs to be eligible for a recipient's local share, 
the recipient and the provider must have entered into a legally binding 
agreement requiring the provider to use the rolling stock in the 
recipient's service area.
6. Revenue Bonds as Local Match (5307, 5309, 5337)
    Sections 5323(e)(1) and (2) allow recipients of Urbanized Area 
Formula Grants funds (section 5307), Fixed Guideway Capital Investment 
Grant funds (section 5309) and State of Good Repair Grant funds 
(section 5337) to use bond proceeds, secured by the revenues of a 
transit capital project, as local match for the project, provided that 
the grantee maintains a greater level of local transit investment in 
the subsequent three fiscal years (as demonstrated in the STIP) than in 
the current fiscal year and prior two fiscal years (three total).
7. Debt Service Reserve
    Section 5323(e)(3) allows recipients to be reimbursed from section 
5309 Fixed Guideway Capital Investment Grant funds for deposits of bond 
proceeds in a debt service reserve. Reimbursements from the unobligated 
FY 2012 and prior year section 5309(b)(2) Fixed Guideway Modernization 
Formula Grant funds and section 5309(b)(3) Bus, Related Equipment and 
Bus Facilities Grant funds are eligible after September 30, 2012. 
However, these two programs are repealed as of October 1, 2012 and FY 
2013 funds will not be available for reimbursements except as provided 
under section 5309 as amended by MAP-21. MAP-21 also repealed the Debt 
Service Reserve Pilot Program for

[[Page 63678]]

recipients of section 5307 Urbanized Area Formula Grant funds. The 
establishment of a debt service reserve is included within the 
definition of a ``capital project'' in section 5302(3)(J), as amended.
8. Government's Share of Cost of Vehicles, Vehicle-Equipment, and 
Facilities for ADA and Clean Air Act Compliance
    An FTA grant used for acquiring vehicles to comply or maintain 
compliance with the ADA or the Clean Air Act, 42 U.S.C. 7401, et seq., 
now can cover 85 percent of net project costs. The previously used 83 
percent Federal share (determined for administrative ease) is no longer 
necessary and should no longer be used. FTA grants for vehicle-related 
equipment or facilities needed to comply with or maintain compliance 
with the ADA or Clean Air Act remains at 90 percent of net project 
costs of the equipment of facilities attributable to compliance with 
the Act (the incremental cost).
9. Private Sector Participation
    MAP-21 requires FTA to provide technical assistance when requested 
by project sponsors and grantees on best practices and methods for 
using private providers of public transportation, and on how to use 
public-private partnerships for alternative project delivery of fixed 
guideway capital projects. MAP-21 also requires FTA to identify public 
transportation laws, regulations or practices that impede public-
private partnerships or private investment in transit capital projects. 
FTA must also develop procedures through regulation to address these 
legal impediments, as well as procedures to protect the public interest 
and any public investment in public transportation capital projects 
that involves public-private partnerships or private investment. 
Additionally, FTA must develop guidance to promote greater transparency 
and public access to public-private partnership agreements, and 
guidance regarding how to best document compliance by recipients of 
Federal assistance with the requirements regarding private enterprise 
participation in public transportation and planning and transportation 
improvement programs under sections 5303(i)(6), 5306(a) and 5307(c). 
MAP-21 does not, however, allow FTA to waive any provision of Federal 
law, including labor protections or NEPA.
10. Bus Testing
    MAP-21 amended section 5318, the bus testing provision, to require 
FTA to issue a final rule by September 30, 2014, establishing a `pass/
fail' standard for bus testing. Vehicles must meet performance 
standards for safety, structural integrity, reliability, performance 
(including braking performance), maintainability, emissions, noise, and 
fuel economy. Once FTA has issued the final rule, recipients may not 
use FTA funds to purchase a bus that has not received a passing test 
score.
11. Buy America
    Procurements made with FTA financial assistance continue to be 
subject to the Buy America requirements in section 5323(j) and FTA's 
implementing regulation at 49 CFR Part 661, which requires end products 
to be manufactured or assembled in the United States unless a waiver 
has been issued by FTA. Waiver requests undergo an elevated level of 
scrutiny by FTA as part of the consideration process. MAP-21 amended 
section 5323(j) to require FTA to place waiver determinations in an 
easily identifiable location on DOT's Web site, in addition to 
publishing the waiver determination in the Federal Register. In 
addition, FTA is required to submit a report to Congress every year 
that lists any waivers granted during the preceding year.
12. Corridor Preservation
    MAP-21 added a new provision in section 5323(q) that allows FTA, 
under certain conditions, to assist in the acquisition of right-of-way 
(ROW) before the completion of an environmental review for any transit 
project that will eventually be built on that ROW. FTA will publish 
draft guidance for public comment on the process for acquiring right-
of-way.
13. Rail Car Procurements
    MAP-21 amended the rolling stock requirements of section 5325 by 
extending the length of option years under rail car procurements to 
seven years. A grant recipient using Federal funds to enter into a 
multiyear contract to buy rolling stock and replacement parts may have 
an option in that contract to buy additional rolling stock or 
replacement parts for up to five years after the date of the original 
contract for bus procurements and for up to seven years after the date 
of the original contract for rail procurements. While the change adds 
two extra years for rail car procurements, it also includes a new 
restriction that an option may not allow for significant changes or 
alterations to the rolling stock.
    Grant recipients should note that the additional two years only 
applies to rail car procurements. If a transit agency were to enter 
into a single contract for all rolling stock, such as one for 
replacement parts on existing inventory, then care would be needed to 
differentiate between bus and rail procurements in order to utilize the 
two additional years applicable only to rail procurements. If the 
differentiation is not clearly stated in the contract, the more 
restrictive five year limitation would apply to the entire contract.
14. Veterans Preference/Employment
    MAP-21 amended section 5323, adding subsection (k): ``Recipients 
and subrecipients of Federal financial assistance under this chapter 
shall ensure that contractors working on a capital project funded using 
such assistance give a hiring preference, to the extent practicable, to 
veterans (as defined in section 2108 of title 5) who have the requisite 
skills and abilities to perform the construction work required under 
the contract. This subsection shall not be understood, construed or 
enforced in any manner that would require an employer to give a 
preference to any veteran over any equally qualified applicant who is a 
member of any racial or ethnic minority, female, an individual with a 
disability, or a former employee.'' FTA will issue additional guidance 
for complying with this provision. Grantees also can expect the Master 
Agreement and required Federal procurement clauses to be updated to 
reflect this change.
15. Alcohol and Controlled Substance Testing
    Section 5331 provides that an entity is not eligible for financial 
assistance under sections 5307, 5309, or 5311 if the entity is required 
to establish a program for alcohol and controlled substances testing 
and does not establish such a program. MAP-21 amended section 5331 to 
also allow FTA to withhold funds from an entity that is not in 
compliance with the regulations, in an amount FTA considers 
appropriate.

E. Title 23 (Federal-Aid Highway Programs) Funds Eligible for Transit 
Purposes

    MAP-21 continues the provisions begun under ISTEA and continued 
through TEA-21 and SAFETEA-LU wherein certain program funds under the 
title 23 are ``flexible'' and eligible for Title 49, Chapter 53 
purposes.

[[Page 63679]]

1. Surface Transportation Program (23 U.S.C. 133) (STP) and 
Transportation Alternatives Program (23 U.S.C. 101) (TAP)
    The Surface Transportation Program (STP) authorized since ISTEA is 
continued under MAP-21. Pursuant to 23 U.S.C. 133, FHWA STP funds are 
eligible for a variety of highway-related activities and are also 
available to cover the capital cost of any public transportation 
projects eligible for assistance under chapter 53, which may include 
vehicles and facilities (publicly or privately owned) that are used to 
provide intercity passenger bus service. In addition, STP funds are 
available for surface transportation planning projects as well as 
activities under the newly authorized Transportation Alternatives 
Program (TAP), at 23 U.S.C. 101.
    The TAP replaces the funding from pre-MAP-21 programs including 
Transportation Enhancements, Recreational Trails, and Safe Routes to 
School with a single funding source. TAP funds may be used to carry out 
a part of a program or project, or used to carry out an independent 
program or project related to surface transportation. Eligible 
activities are broadly defined and with respect to transit include 
construction, planning and design of infrastructure-related projects 
and systems that will provide safe routes for non-drivers, including 
children, older adults and individuals with disabilities to access 
daily needs, and historic preservation and rehabilitation of historic 
transportation facilities.
2. Congestion Mitigation and Air Quality Improvement Program (23 U.S.C. 
149) (CMAQ)
    The CMAQ program, at 23 U.S.C. 149, continues to provide a flexible 
funding source to State and local governments for transportation 
projects and programs to help meet the requirements of the Clean Air 
Act. Funding is available to reduce congestion and improve air quality 
for areas that do not meet the National Ambient Air Quality Standards 
(NAAQS) for ozone, carbon monoxide, or particulate matter--
nonattainment areas--and for areas that were out of compliance but have 
now met the standards--maintenance areas. Transit investments, 
including transit vehicle acquisitions and construction of new 
facilities or improvements to facilities that increase transit capacity 
are eligible for CMAQ funds. The Department is reviewing MAP-21's 
treatment of operating assistance eligibilities under CMAQ, and an 
interpretation of the language will be issued in the future.
3. National Highway Performance Program (23 U.S.C. 119) (NHPP)
    MAP-21 enacted the National Highway Performance Program (NHPP), at 
23 U.S.C. 119, which allows funds to be used for the construction of a 
public transportation project eligible for assistance under chapter 53 
if: (1) The project is in the same corridor as, and in proximity to, a 
fully access-controlled highway designated as part of the National 
Highway System; (2) the construction will reduce delays or produce 
travel time savings on such a highway as described in (1) and improve 
regional traffic flow; and (3) a cost-benefit analysis determines that 
the construction is more cost-effective than an improvement on such a 
highway as described in (1).
4. Transferring Title 23 Funds From FHWA to FTA
    MAP-21 changed little with respect to the transfer of highway funds 
to FTA for eligible transit projects to be administered under chapter 
53 of title 49 or the transfer of transit funds to FHWA for eligible 
highway projects to be administered under title 23. Section 104 of 
title 23 U.S.C. preserves the option for FHWA to transfer funds to FTA 
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. The State DOT may request, by 
letter, that the FHWA Division Office transfer highway funds for a 
transit project. The letter should include a description of the project 
as contained in the STIP, the amount to be transferred, the 
apportionment year, State, urbanized area, Federal-aid apportionment 
category (i.e., STP, CMAQ, TAP, NHPP) or other funding source, and 
indication of the intended FTA formula program (i.e., Section 5307, 
5310, or 5311).
    Once a written request for transfer is received (using FHWA 
transfer request form 1576), if, upon review, the FHWA Division Office 
concurs in the transfer, it provides written confirmation to the State 
DOT and FTA that the apportionment amount is available for transfer. 
The FHWA Division Office provides the transfer request to the FHWA 
Office of Budget which transfers the funds to FTA.
    FHWA funds transferred to FTA will be administered under one of the 
three FTA formula programs (i.e., Urbanized Area Formula (section 
5307), Formula Grants for the Enhanced Mobility of Seniors and 
Individuals with Disabilities (section 5310), or Formula Grants for 
Rural Areas (section 5311)). Unobligated balances for High Priority 
projects under Section 1702 of SAFETEA-LU or Transportation Improvement 
projects under Section 1934 of SAFETEA-LU and other such funds for 
which Congress has identified a particular project that are transferred 
to FTA will be aligned with and administered through FTA's Urbanized 
Area Formula Grant Program (section 5307). Under 23 U.S.C. 104(f), FHWA 
funds transferred to FTA retain the same matching share that the funds 
would have if used for highway purposes and administered by FHWA.
    Transferred funds may be used for a capital transit purpose 
eligible under the FTA formula program to which they are transferred. 
MAP-21 revised the operating assistance eligibilities under CMAQ. Those 
changes are being reviewed and an interpretation of the MAP-21 
provisions will be issued in the future.
    The FTA grantee's application for the project must specify the 
program in which the funds will be used, 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.
    In the event that the transferred 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 
State for any eligible capital transit project under the program to 
which they were transferred.
5. Matching Share for FHWA Transfers
    Pursuant to 23 U.S.C. 104(f)(1)(B), FHWA funds transferred to FTA 
retain the same matching share that the funds would have if used for 
highway purposes and administered by FHWA. For the STP, CMAQ, and TAP 
programs, this Federal share is generally 80 percent, subject to upward 
adjustment in sliding scale States as noted below.
    For a period of time under SAFETEA-LU, CMAQ funds were available at 
a 100 percent Federal share. Starting on October 1, 2012, the CMAQ 
Federal share generally will be 80 percent. There are a few instances 
in which a Federal share on funds transferred from FHWA can be higher 
than 80 percent. 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

[[Page 63680]]

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. Also, there may be instances 
where the applicable Federal share may be reduced to a lower Federal 
share than is generally applicable, such as under the NHPP where the 
Federal share must be reduced to a maximum of 65 percent if the State 
DOT does not develop and implement an asset management plan.
    Certain safety projects or projects that include an air quality or 
congestion relief component such as commuter carpooling and vanpooling 
projects using FHWA transfer funds administered by FTA may retain the 
same 100 percent Federal share; however, these projects are subject to 
a limitation for each State of an amount equal to 10 percent of the 
sums apportioned for programs under section 104 of title 23.
    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.'' FHWA 
plans to revise its guidance to reflect MAP-21's changes to transferred 
funds.
6. Title 49/Chapter 53 Funds Eligible for Highway Purposes
    Funds available under chapter 53 for eligible Federal-aid highway 
projects under title 23 may be transferred to FHWA. However, MAP-21 
repealed FTA's authority to transfer to FHWA Urbanized Area Formula 
Grant Funds (section 5307) for highway purposes. As described in 
section IV.H. of this notice, the newly established Appalachian 
Development Public Transportation Assistance program under section 
5311(c)(2) permits transfers to FHWA under certain conditions.

IV. Program-Specific 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 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 (DOTs) 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.
    The metropolitan transportation planning process must establish a 
performance-based approach in which the MPO will develop specific 
performance targets that address transportation system performance 
measures (to be issued by U.S. DOT), where applicable, to use in 
tracking progress towards attaining critical outcomes. These 
performance targets will be established by MPO's in coordination with 
States and transit providers. MPOs will provide a system performance 
report that evaluates the progress of the MPO in meeting the 
performance targets in comparison with the system performance 
identified in prior reports.
    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, 
contact Victor Austin, Office of Planning and Environment at (202) 366-
2996 or victor.austin@dot.gov.
1. Authorized Amounts
    MAP-21 authorizes $126,900,000 in FY 2013 and $128,800,000 in FY 
2014 to provide financial assistance for both the metropolitan and 
statewide planning needs under section 5305.

------------------------------------------------------------------------
            Fiscal year                    2013               2014
------------------------------------------------------------------------
Funds authorized..................       $126,900,000       $128,800,000
Metropolitan......................        104,971,680        106,543,360
Statewide.........................         21,928,320         22,256,640
------------------------------------------------------------------------

    As specified in law and as shown above, 82.72 percent of the 
amounts authorized for section 5305 are allocated to the Metropolitan 
Planning Program and 17.28 percent to the Statewide Planning and 
Research program.
2. FY 2013 Funding Availability
    Under the continuing resolution, a total of $50,545,172 is 
available for the period October 1, 2012 through March 27, 2013 to the 
Metropolitan Planning Program (section 5305(d)) to support metropolitan 
transportation planning activities set forth in section 5303. The total 
amount apportioned for the Metropolitan Planning Program to States for 
MPOs' use in urbanized areas (UZAs) is $50,292,446 as shown in the 
table below, after the deduction for oversight (authorized by section 
5338).

               Metropolitan Planning Program--FY 2013 (CR)
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total appropriation.....................................     $50,545,172
Oversight deductions....................................        -252,726
                                                         ---------------
    Total apportioned...................................      50,292,446
------------------------------------------------------------------------

    States' apportionments for this program are displayed in Table 2.
3. Basis for Formula Apportionment
    MAP-21 did not change the funding formula. Of the amounts 
authorized in

[[Page 63681]]

section 5305, 82.72 percent is made available to the Metropolitan 
Planning program. Eighty percent of the funds are apportioned on a 
statutory basis 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 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.
4. 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 2010 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.
5. Period of Availability
    The Metropolitan Planning program funds apportioned in this notice 
are available for obligation during FY 2013 plus three additional 
fiscal years. Accordingly, funds apportioned in FY 2013 must be 
obligated in grants by September 30, 2016. Any FY 2013 apportioned 
funds that remain unobligated at the close of business on September 30, 
2016, will revert to FTA for reapportionment under the Metropolitan 
Planning program.

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 or victor.austin@dot.gov.
1. Authorized Amounts
    MAP-21 authorizes $21,928,320 in FY 2013 and $22,256,240 in FY 2014 
to provide financial assistance for statewide planning and other 
technical assistance activities under section 5305. As specified in 
law, this represents the 17.28 percent of the amounts authorized for 
section 5305 that are allocated to the Statewide Planning and Research 
program, as shown below.

------------------------------------------------------------------------
              Fiscal year                     2013             2014
------------------------------------------------------------------------
Funds authorized......................     $21,928,320      $22,256,240
------------------------------------------------------------------------

2. FY 2013 Funding Availability
    Under the continuing resolution, a total of $10,558,760 is 
available for the period October 1, 2012 through March 27, 2013 to the 
State Planning and Research Program (section 5305(e)). Thus far, the 
total amount apportioned for the State Planning and Research Program 
(SPRP) is $10,505,966 as shown in the table below, after the deduction 
for oversight (authorized by section 5338).

                Statewide Planning Program--FY 2013 (CR)
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total appropriation.....................................     $10,558,760
Oversight deductions....................................         -52,794
                                                         ---------------
Total apportioned.......................................      10,505,966
------------------------------------------------------------------------

    States' apportionments for this program are displayed in Table 2.
3. Basis for Formula Apportionment
    MAP-21 did not change the funding formula. Of the amount authorized 
in section 5305, 17.28 percent is 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.
4. 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, Program Guidance for Metropolitan Planning and 
State Planning and Research Program Grants, dated September 1, 2008.
5. Period of Availability
    The State Planning and Research program funds apportioned in this 
notice are available for obligation during FY 2013 plus three 
additional fiscal years. Accordingly, funds apportioned in FY 2013 must 
be obligated in grants by September 30, 2016. Any FY 2013 apportioned 
funds that remain unobligated at the close of business on September 30, 
2016 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 assistance for capital, planning, 
job access and reverse commute projects, 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 by the U.S. Census Bureau.
    FTA calculates an apportionment amount for each UZA based on 
statutory formulas. For UZAs with populations of 200,000 or more, FTA 
apportions funds directly to one or more Designated Recipients, which 
are local or statewide agencies appointed by the Governor in accordance 
with sections 5303 and 5304, to receive and allocate section 5307 funds 
to eligible public transportation projects in the UZA. For UZAs with 
populations between 50,000 and 200,000, FTA apportions funds directly 
to the Governor for allocation to those areas in the State. Eligible 
funding recipients are limited to Designated Recipients and other local 
government authorities, as defined under section 5302(4), that are 
authorized to apply by the Designated Recipient.

[[Page 63682]]

    Beginning with this FY 2013 apportionment, FTA is apportioning 
funds based on UZA designations and population counts from the 2010 
Census. The transition from the 2000 Census to the 2010 Census may 
affect the program requirements and/or eligibilities that apply to 
recipients in certain areas. Recipients that are located in UZAs that 
fall under any of the following scenarios may be affected: (1) Existing 
UZAs that have increased in population from fewer than 200,000 
residents to more than 200,000; (2) New UZAs in areas that were 
formerly under 50,000 in population; (3) Formerly rural areas that are 
now part of a geographically-enlarged UZA; (4) Previous UZAs that have 
fallen below 50,000 in population; and, (5) UZAs that have grown or 
merged with other UZAs to include areas in multiple States. Public 
transit providers in areas that are affected by these changes are 
encouraged to work closely with the FTA Regional Office to identify how 
these changes may apply to their agencies.
    In addition to the impacts of the 2010 Census, recipients should be 
aware of several program changes established by MAP-21. Changes include 
a new provision allowing operating assistance for transit agencies in 
UZAs over 200,000 in population that operate a maximum of 100 buses in 
fixed route service during peak service hours, the eligibility of job 
access and reverse commute projects, changes in the definition of 
``capital project,'' expanded eligibility for sources of local match, 
and the replacement of ``transit enhancements'' with the ``associated 
transit improvements'' category.
    Changes to the Urbanized Area Formula Program under MAP-21 and the 
2010 Census apply to funds apportioned for FY 2013, and are not 
retroactive to prior funding apportioned under previous authorization. 
FTA will revise Circular 9030.1D, Urbanized Area Formula Program: 
Program Guidance and Application Instructions, to incorporate any 
relevant changes. Until this revision is complete, the previous 
circular, as amended by this notice, remains a good guidance tool in 
most respects.
    For more information about the Urbanized Area Formula Program 
contact Adam Schildge, Office of Transit Programs, at (202) 366-0778 or 
adam.schildge@dot.gov.
1. Authorized Amounts
    MAP-21 authorizes $4,397,950,000 in FY 2013 and $4,458,650,000 in 
FY 2014 to provide financial assistance for urbanized areas under 
section 5307. Of the amount authorized and appropriated for section 
5307 in each year, $30 million is set aside for a competitive 
discretionary passenger ferry grant program, 0.5 percent will be 
apportioned to eligible States for State Safety Oversight (SSO) Program 
grants, and 0.75 percent will be set aside for program oversight.
    Further information on the Passenger Ferry Discretionary Program is 
provided in section III.A.4.b of this notice. Further information on 
the 0.5 percent apportionment to States for the State Safety Oversight 
Program is provided in section IV.N. of this notice.

------------------------------------------------------------------------
            Fiscal year                    2013               2014
------------------------------------------------------------------------
Funds authorized..................     $4,397,950,000     $4,458,650,000
------------------------------------------------------------------------

2. FY 2013 Funding Availability
    Under the continuing resolution, a total of $2,117,667,740 is 
available for the section 5307 program for the period October 1, 2012 
through March 27, 2013. The total amount apportioned to urbanized areas 
is $2,290,545,383, which includes the addition of amounts apportioned 
to UZAs pursuant to the section 5340 Growing States and High Density 
States Formula factors. This amount excludes the set-aside for the 
Passenger Ferry Discretionary Program, apportionments under the State 
Safety Oversight Program, and oversight (authorized by section 5338), 
as shown in the table below.

              Urbanized Area Formula Program--FY 2013 (CR)
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total appropriation..................................     $2,130,634,943
                                                                     \a\
Ferry discretionary program..........................        -14,445,372
State safety oversight program.......................        -10,588,340
Oversight deduction..................................        -15,882,508
Section 5340 funds added.............................        213,793,863
------------------------------------------------------------------------
    Total apportioned................................      2,290,545,383
------------------------------------------------------------------------
\ a\ Includes 1.5 percent set-aside for Small Transit Intensive Cities
  Formula.

    Table 3 displays the amounts apportioned under the Urbanized Area 
Formula Program.
3. Basis for Formula Apportionment
    MAP-21 made several changes to the formula for this program. 
Specifically, section 5336(h) now provides that 3.07 percent of section 
5307 funds available for apportionment are allocated on the basis of 
low-income persons residing in urbanized areas, with 25 percent of 
these funds allocated to areas below 200,000 in population and the 
remaining 75 percent allocated to areas 200,000 and over in population. 
MAP-21 also increased the percentage of funds allocated on the basis of 
Small Transit Intensive Cities (STIC) factors from 1 to 1.5 percent. 
Finally, MAP-21 established a new 0.5 percent takedown for State Safety 
Oversight grant program.
    FTA apportions Urbanized Area Formula Program funds based on 
statutory formulas. Congress established four separate formulas that 
are used to apportion portions of the available funding: the section 
5307 Urbanized Area Formula Program formula, the Small Transit 
Intensive Cities (STIC) formula, the Growing States and High Density 
States formula, and a formula based on low-income population. 
Additional information on these formulas is provided in the following 
subsections.
    Consistent with prior apportionment notices, Table 3 shows a total 
section 5307 apportionment for each UZA, which includes amounts 
apportioned under each of these formulas. Detailed information about 
the formulas is provided in Table 4. For technical assistance purposes, 
the UZAs that receive STIC funds are listed in Table 6. FTA will 
provide breakouts of the funding allocated to each UZA under these 
formulas upon request to the FTA regional office.
i. Section 5307--Urbanized Area Formula
    For UZAs between 50,000 and 199,999 in population, the section 5307 
formula is based 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, bus operating costs, 
fixed guideway vehicle revenue miles, and fixed guideway route miles, 
as well as population and population density. The Urbanized Area 
Formula is defined in 49 U.S.C. 5336.
    To calculate a UZA's FY 2013 apportionment, FTA used population

[[Page 63683]]

and population density statistics from the 2010 Census and validated 
mileage and transit service data from transit providers' 2011 National 
Transit Database (NTD) Report Year (when applicable). Consistent with 
section 5336(b), FTA has included 22.27 percent of the fixed guideway 
directional route miles and vehicle revenue miles from eligible 
urbanized area transit systems, but which were attributable to rural 
areas outside of the urbanized areas from which the system receives 
funds. Data from public transportation subrecipients in the Rural 
Module of the NTD that were identified by FTA staff as having been 
located in rural areas following the 2000 Census, but are now located 
in urbanized areas over 200,000 in population following the 2010 
Census, were also included in this apportionment, and were not included 
in the apportionment for the Rural Areas Formula Program. These systems 
will be identified in the supplementary data tables accompanying the 
apportionment data tables. This was not done for subrecipients now 
located in urbanized areas under 200,000 in population following the 
2010 Census, data for these systems were included in the apportionment 
for the Rural Areas Formula Program.
    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, as well as the 
amount appropriated by Congress for the apportionment. The dollar unit 
values for FY 2013 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).
ii. Small Transit Intensive Cities Formula
    Under the STIC formula, FTA apportions funds to UZAs under 200,000 
in population that have public transportation service that operates at 
a level equal to or above the industry average for all UZAs with a 
population of at least 200,000, but not more than 999,999. STIC funds 
are apportioned on the basis of 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 used to determine a UZA's eligibility under the STIC 
formula and to calculate the STIC apportionments was obtained from the 
NTD reports for the 2011 reporting year. Because performance data 
change with each year's NTD reports, the UZAs eligible for STIC funds 
and the amount each receives may vary each year. UZAs that received 
funding through the STIC formula for FY 2013 are listed in Table 6.
iii. Section 5340--Growing States and High Density States Formula
    FTA also apportions funds to qualifying UZAs and States according 
to the section 5340 Growing States and High Density States formula, as 
shown in Table 3. Half of the funds appropriated for section 5340 are 
apportioned to Growing States and half to High Density States. For the 
period October 1, 2012 through March 27, 2013, FTA apportions 
$125,640,719 to UZAs in growing States and $125,640,719 to UZAs in High 
Density States. More information on this program and its formula is 
found in section IV.R. of this notice.
iv. Low-Income Population
    New under MAP-21, the formula for this program includes a formula 
factor for low-income population. Section B.7. of this notice contains 
the new definition of low-income population. Of the amount authorized 
and appropriated for the Urbanized Area Formula Program in each year, 
3.07 percent is apportioned on the basis of low income population. A 
total of $65,410,493 has been apportioned to UZAs based on this formula 
for FY 2013, as described below.
    As specified in statute, FTA apportions 75 percent of the available 
funds to UZAs with a population of 200,000 or more. Funds are 
apportioned based on the ratio of the number of low income individuals 
in each UZA to the total number of low income individuals in all 
urbanized areas of that size. FTA apportions the remainder of the funds 
(25 percent) to UZAs with populations of less than 200,000, according 
to an equivalent formula. The low income populations used for this 
calculation were based on the American Community Survey (ACS) data set 
for 2006-2010. This information is updated by the Census Bureau 
annually.
4. Requirements
    Program guidance for the Urbanized Area Formula Program is found in 
FTA Circular 9030.1D, Urbanized Area Formula Program: Program Guidance 
and Application Instructions, dated May 10, 2010, and is supplemented 
by additional information and changes provided in this notice and that 
may be posted to section 5307 web page. FTA is in the process of 
updating the program circular to incorporate changes resulting from 
MAP-21. Key program requirements and changes that apply to all programs 
are addressed in section III.D. of this notice, ``Cross-Cutting 
Programmatic Requirements and Changes.'' The following subsections 
outline several important program requirements and changes that apply 
specifically to the Urbanized Area Formula Program.
i. Designated Recipients Under Census 2010
    For UZAs with populations of 200,000 and above (large UZAs), FTA 
apportions funds to the Designated Recipient(s) that are selected by 
the State's Governor, responsible local officials, and publicly owned 
operators of public transportation to receive and apportion the amounts 
made available to a UZA by Congress and FTA. The Designated Recipient 
may be a State or regional authority if the authority is responsible 
under the laws of the State for a capital project and for financing and 
directly providing public transportation. Section 5307 further provides 
that the Designated Recipient, after consideration of comments and 
views of the public, prepares the final program of projects for the 
amounts available to a UZA of not less than 200,000 in population.
    To be selected as a Designated Recipient, an entity must be a 
public body with the legal capacity to perform all of the following 
responsibilities:
    a. Receive and dispense Federal funds for transit purposes,
    b. Submit projects to be included and considered in the annual 
elements of the Transportation Improvement Program through the 
Metropolitan Planning Organization,
    c. Submit grant applications to FTA, and
    d. Enter into formal grant agreements with FTA.
    For UZAs with a population of less than 200,000 (small UZAs), the 
Governor, or his or her designee, is the Designated Recipient. A single 
total Governor's apportionment amount for the Urbanized Area Formula, 
STIC, and Growing States and High Density States

[[Page 63684]]

for all small UZAs in each State is shown in 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 (or his or her designee) shall determine the sub-allocation of 
funds among the small UZAs and is not bound by the small UZA amounts 
published in this notice. The Governor's sub-allocation must be sent to 
the appropriate FTA Regional Office before grants are awarded.
    In FY 2013, FTA will apportion funds to new large UZAs for which a 
Designated Recipient has not yet been selected. These funds will become 
available for grants once FTA has received documentation of the 
selection of a Designated Recipient.
ii. Process for Designation of Designated Recipients in Areas over 
200,000 in Population
    Given the Census impacts to many urbanized areas, FTA developed 
specific guidance to assist areas with the process and required 
documentation for Designated Recipients in areas over 200,000. Specific 
impacted areas were notified in July 2012 by letter and additional 
guidance on this requirement can be found on FTA's Web site.
ii. Designations and Documentation in Areas Under 200,000 in Population
    For urbanized areas greater than 50,000 but under 200,000 in 
population, the Governor of each State is the Designated Recipient. 
This means that the Governor receives and allocates funding for these 
urbanized areas through the ``Governor's Apportionment,'' which 
consists of the total amount of funding allocated to a State for all of 
its small urbanized areas.
    The Governor may designate another State agency to act as the 
Designated Recipient (e.g. the State DOT); however, the Governor or his 
designee cannot assign the rights and responsibilities of the 
Designated Recipient to regional or local funding recipients or to 
transit providers at the local or regional level. The Governor or his 
designee can, however, authorize local funding recipients or transit 
providers at the local or regional level to apply for grants directly 
to FTA as ``Direct Recipients''.
    If the Governor designates another State agency to act as the 
Designated Recipient, such designation must be documented by letter 
from the Governor naming the Designated Recipient and by an opinion of 
counsel from the Designated Recipient certifying its legal capacity to 
perform the functions of a Designated Recipient.
iv. Direct Recipients and Documentation
    Many of FTA's grantees are direct recipients, but not all grantees 
are designated recipients. A direct recipient is a public entity that 
is legally eligible under Federal transit law to apply for and receive 
grants directly from FTA. The amount of funds available to direct 
recipients is determined cooperatively by public transit providers, the 
MPO, and the designated recipient(s) for that UZA, in adherence with 
federal planning requirements and communicated to FTA by the designated 
recipient. FTA can only make grants to direct recipients after a split 
or suballocation letter is provided to the FTA Regional Office by the 
Designated Recipient. Additionally, when an applicant for federal 
funding is not the Designated Recipient, a supplemental agreement will 
be required. More on this requirement can be found in section V. B. 
``FY 2013 Grant Application Procedures'' of this notice.
    The allocation of funding to a direct recipient in a small UZA is 
determined by the Governor or the Governor's designee, in accordance 
with local transit spending priorities and should be reflected in the 
planning process. The amount of funding available to a direct recipient 
in a large UZA is determined by the Designated Recipient for that UZA 
in accordance with the local MPO and federal planning requirements.
v. Associated Transit Improvements
    Designated Recipients in UZAs with populations of 200,000 or more 
must certify that not less than one percent of the section 5307 funds 
apportioned to the UZA will be used for associated transit 
improvements, formerly known as transit enhancements. See section B 
``Definitional Changes or New Definitions'' in this notice for the new 
definition of what is considered an associated transit improvement. In 
addition, Designated Recipients must submit an annual report listing 
projects carried out in the preceding year with these funds as part of 
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 project. The list of 
associated transit improvement 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.
    Under MAP-21, certain activities previously eligible as ``transit 
enhancements'' are no longer eligible for funding, unless otherwise 
eligible as capital or operating expenses under section 5307. 
Specifically, public art and transit connections to parks within a 
recipient's service area are no longer included as eligible project 
activities under this requirement. (Further information about the use 
of art in the design of a transit facility as a transit capital expense 
is noted in section III. B. of this notice.) Historic preservation 
projects may now only be for historic public transportation buildings, 
structures and facilities that are intended for use in public 
transportation service.
    It is the responsibility of the recipients in a UZA to identify 
associated transit improvement projects that will receive funding from 
the Urbanized Area Formula Program. The one percent minimum does not 
preclude more than one percent from being expended in a UZA for 
associated transit improvements. However, projects and project elements 
that are only eligible under this category--in particular, operating 
costs for historic facilities--may not exceed one percent of a UZA's 
annual apportionment.
vi. Transit Security Projects
    MAP-21 continues the requirement that each recipient of Urbanized 
Area Formula funds must certify that it will expend at least one 
percent of the amount received each fiscal year on ``public 
transportation security projects,'' or that it has decided the 
expenditure for security projects is not necessary. For applicants not 
eligible to receive section 5307 funds for operating expenses, only 
capital security projects may be funded under this one percent 
requirement. The definition of eligible capital projects includes 
specific crime prevention and security activities, including: increased 
lighting in or adjacent to a public transportation system (including 
bus stops, subway stations, parking lots, and garages), increased 
camera surveillance of an area in or adjacent to that system, providing 
an emergency telephone line to contact law enforcement or security 
personnel in an area in or adjacent to that system, and any other 
project intended to increase the security and safety of an existing or 
planned public transportation system. The one percent may also include 
security expenditures included within other capital activities, and, 
where the recipient is eligible,

[[Page 63685]]

operating assistance. Additional funding for transit security projects 
may be available from the Transportation Security Administration (TSA). 
For more information, visit the TSA Transit Security Grants web page 
at: http://www.tsa.gov/what_we_do/grants/programs/tsgp_tieri/2011/index.shtm.
    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.
vii. FY 2013 Operating Assistance
    Recipients in urbanized areas under 200,000 in population may use 
Urbanized Area Formula Program funds for operating assistance at a 50 
percent Federal share. There is no cap to the amount that can be used 
in these areas for operating assistance. Unless specifically 
authorized, recipients in urbanized areas of 200,000 or more in 
population are not permitted to use program funds for operating 
assistance.
    Under MAP-21, a special rule allows recipients in urbanized areas 
with populations of 200,000 or above and that operate 100 or fewer 
buses in fixed route service during peak hours, to receive a grant for 
operating assistance subject to a maximum amount per system as 
explained below:
    a. Public transportation systems that operate a minimum of 76 buses 
and a maximum of 100 buses in fixed route service during peak service 
hours may receive operating assistance in an amount not to exceed 50 
percent of the share of the apportionment that is attributable to such 
systems within the urbanized area, as measured by vehicle revenue 
hours.
    b. Public transportation systems that operate 75 or fewer buses in 
fixed route service during peak service hours may receive operating 
assistance in an amount not to exceed 75 percent of the share of the 
apportionment that is attributable to such systems within the urbanized 
area, as measured by vehicle revenue hours.
    A list of eligible recipients and their maximum operating 
assistance amounts for FY 2013 is shown in Table 3-A. FTA identified 
the systems eligible to use this provision and their maximum amounts 
for FY 2013 using data from the NTD for reporting year 2011. Operating 
assistance requires a 50 percent local match.
    In accordance with section 5307(a)(2), FTA has calculated a fixed 
annual cap on operating assistance for each eligible agency that 
provides service in a large UZA. The cap is determined by dividing the 
UZA's apportionment by the total number of vehicle revenue hours 
reported from all public transportation operators and from all transit 
modes in the UZA, and then by multiplying this quotient by the number 
of bus vehicle revenue hours operated in the UZA by the eligible 
system. The result is the proportional share of the apportionment that 
is attributable to the qualifying system, as measured by vehicle 
revenue hours. This cap is calculated based on the FY 2013 
apportionment for an eligible provider's UZA under the continuing 
resolution, and will be updated as additional funding is made 
available. Eligible systems operating in more than one UZA over 200,000 
in population will receive separate operating caps from each UZA in 
which the system operates.
    If a recipient believes that this table does not accurately reflect 
the number of buses the system operates in fixed route service during 
peak service hours, the recipient may submit a supplementary report to 
the NTD, and should notify the FTA Office of Program Management that it 
is appealing this list for FY 2013. The supplementary NTD report must 
be based on service levels on or prior to October 1, 2012. FTA will 
determine whether a proposed adjustment is necessary based on evidence 
of a continuing change in maximum service levels. FTA will only accept 
supplementary reports through January 15, 2013 so it can validate the 
data and consider any changes prior to the expiration of the current 
continuing resolution.
    In addition, many expenses that accounting rules classify as 
operating costs are eligible as capital expenses in this program, 
including preventive maintenance, expenses (up to 10 percent of the 
amount apportioned) for providing non-fixed route paratransit 
transportation services in accordance with section 223 of the ADA, and 
mobility management expenses.
viii. Job Access and Reverse Commute Projects
    Job access and reverse commute projects are eligible for funding 
under the Urbanized Area Formula Program. A job access and reverse 
commute project is defined as: ``a transportation project to finance 
planning, capital and operating costs that support the development and 
maintenance of transportation services designed to transport welfare 
recipients and eligible low-income individuals to and from jobs and 
activities related to their employment, including transportation 
projects that facilitate the provision of public transportation 
services from urbanized areas and rural areas to suburban employment 
locations.''
    There is no set-aside or cap under MAP-21 for job access and 
reverse commute projects funded under this section. However, the 
projects must be for the ``development and maintenance'' of 
transportation services designed to transport welfare recipients and 
eligible low-income individuals to and from jobs and employment-related 
activities. FTA defines ``development of transportation services'' to 
mean new projects that were not in service on October 1, 2012. New job 
access and reverse commute projects may include the expansion or 
extension of an existing service, so long as the new service was 
designed to support the target population consistent with the 
definition above and the other planning requirements (described below) 
were met. Such projects are not required to be designed exclusively for 
these populations.
    ``Maintenance of transportation services'' is identified as the 
continuation of eligible job access and reverse commute projects that 
received funding under the section 5316 JARC Program, as amended by 
SAFETEA-LU, and which was repealed by MAP-21.
    Reverse commute projects are only eligible under this section if 
they are designed to transport welfare recipients and eligible low-
income individuals to and from jobs and employment-related activities. 
However, as noted above, the services do not need to be exclusively for 
the target population.
    For FY 2013, any projects or project elements that were eligible 
under the section 5316 Job Access and Reverse Commute Program, 
authorized under SAFETEA-LU, will remain eligible, so long as they can 
be classified as development or maintenance, as described above and 
comply with the MAP-21 definition of a job access and reverse commute 
project. A list of these eligible projects elements can be found in FTA 
Circular 9050.1: The Job Access and Reverse Commute (JARC) Program 
Guidance and Application Instructions. FTA anticipates cancelling this 
circular and addressing project eligibility in a revised FTA Circular 
9030.1 for the Urbanized Area Formula Program. Some of these types of 
projects may not continue to be eligible in the future.
    In order to receive funding for a job access and reverse commute 
project

[[Page 63686]]

under this provision, the project must be identified by the MPO and 
Designated Recipient as a job access and reverse commute project in the 
Designated Recipient's annual Program of Projects, which must be 
developed in consultation with interested parties, published with the 
opportunity for comments, and subject to a public hearing.
    While the job access and reverse commute projects funded under this 
section do not have to be selected from a locally-developed, human 
service public transportation planning process (``coordinated planning 
process''), FTA encourages MPOs and section 5307 Designated Recipients 
to continue the coordinated planning process in identifying and 
developing projects for funding. FTA encourages MPOs and recipients to 
coordinate with the organizations previously designated as Designated 
Recipients for the SAFETEA-LU JARC program, and to identify and 
consider the funding needs of existing job access and reverse commute 
projects and services.
    Funds previously apportioned under section 5316 (JARC) that have 
not been obligated will remain available to the entity that was the 
Designated Recipient for those funds at the time of apportionment 
through the period of availability unless a new designation is 
received. These funds are subject to the requirements of SAFETEA-LU and 
cannot be combined in a grant in a section 5307 grant under MAP-21.
ix. Sources of Local Match
    MAP-21 expands the categories of funds that can used as local 
match. These categories are included below and described in the section 
III.D. ``Cross-Cutting Programmatic Requirements and Changes'' of this 
notice. In most cases, the maximum Federal share of an Urbanized Area 
Formula Program 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 lower federal share. The remainder of 
the net project cost (i.e., 20 percent and 50 percent, respectively) 
shall be provided from the following sources:
    a. Non-government sources other than revenues from providing public 
transportation services;
    b. Revenues derived from the sale of advertising and concessions;
    c. An undistributed cash surplus, a replacement or depreciation 
cash fund or reserve, or new capital;
    d. Amounts appropriated or otherwise made available to a department 
or agency of the Government (other than the Department of 
Transportation);
    e. Amounts received under a service agreement with a State or local 
social service agency or private social service organization; and
    f. Proceeds from the issuance of revenue bonds;
    g. Funds from Section 403(a)(5)(C)(vii) of the Social Security Act 
(42 U.S.C. 603(a)(5)(C)(vii));
    h. Transportation Development Credits (formerly Toll Revenue 
Credits); and
    i. Any amounts expended by providers of public transportation by 
vanpool for the acquisition of rolling stock to be used in the 
recipient's service area, excluding any amounts the provider may have 
received in Federal, State or local government assistance for such 
acquisition, provided that the provider has a binding agreement with 
the public transportation agency to provide service in the relevant 
UZA.
x. Urbanized Area Formula Funds Used for Highway Purposes
    Funds apportioned under the Urbanized Area Formula Program are no 
longer eligible for transfer to FHWA for highway projects.
xi. Eligibility for Safety Certification Training
    Recipients of section 5307 funds are permitted to use not more than 
0.5 percent of their formula funds under the Urbanized Area Formula 
Program to pay not more than eighty percent of the cost of 
participation for an employee who is directly responsible for safety 
oversight to participate in public transportation safety certification 
training. Safety certification training program requirements will be 
established in accordance with section 5329.
5. Period of Availability
    MAP-21 expanded the period of availability for section 5307 funds 
to six years (year of apportionment plus five additional years). The 
Urbanized Area Formula Program funds apportioned in this notice are 
available for obligation in FY 2013 plus five additional years. 
Accordingly, funds apportioned in FY 2013 must be obligated in grants 
by September 30, 2018. Any FY 2013 apportioned funds that remain 
unobligated at the close of business on September 30, 2018 will revert 
to FTA for reapportionment under the Urbanized Area Formula Program.
6. Other Program or Apportionment Related Information and Highlights 
State Safety Oversight Funding
    As mentioned above, under MAP-21 there is a 0.5 percent take-down 
from the section 5307 urbanized area program that will be apportioned 
to States for State Safety Oversight (SSO) program activities. These 
funds will be apportioned by formula to States with rail fixed guideway 
public transportation systems that are either operating or in the 
engineering or construction phase of development, and which are not 
subject to regulation by the Federal Railroad Administration (FRA) to 
develop or carry out State safety oversight programs. FTA is currently 
developing the formula by which these funds will be apportioned. By 
law, this formula must take into account fixed guideway route miles, 
fixed guideway vehicle revenue miles, and fixed guideway passenger 
miles on fixed guideway systems. Funds may be used for program 
operational and administrative expenses, including employee training 
activities. A twenty percent non-Federal match is required for these 
funds. The State's share of the cost may include in-kind contributions 
and may not include any funds received from or revenues earned by a 
public transportation agency.
Vehicle Fuel and Electrical Propulsion Costs as Capital Maintenance for 
Section 5307
    The FY 2013 CR does not continue the provision to permit FTA to 
treat fuel costs for vehicle operations, including utility costs for 
the propulsion of electrical vehicles, as a capital maintenance item 
for grants in FY 2013. As such, these expenses are considered operating 
expenses and require a 50 percent local match.
NTD Reporting
    Section 5335 requires that each recipient or beneficiary under the 
section 5307 program submit an annual report to the NTD containing 
information on financial, operating, and asset condition information. 
Annual NTD reports should be full reports of all transit activities, 
regardless of funding source. For the 2012 Report Year, which lasts 
from October 2012 through July 2013, the reporting requirements apply 
to any recipient of a section 5307 grant obligation in 2011, any 
recipient of a section 5307 grant outlay in 2012, or any entity that 
continued to benefit in 2012 from capital assets purchased using 
Section 5307 grants. Also, grantees that received section 5307 grants 
in prior years, and which anticipate receiving section 5307 grants in 
future years, should also continue to report to the NTD. Recipients or 
beneficiaries of section 5307 grants that do not operate transit 
service, either directly or through a contract for purchased 
transportation services, are

[[Page 63687]]

still required to report to the NTD on capital and planning 
expenditures, but have significantly reduced reporting requirements. 
Recipients or beneficiaries of Section 5307 grants that operate 30 or 
fewer vehicles in maximum service across all transit modes are also 
eligible for reduced, ``Small Systems'' reporting requirements. 
Recipients or beneficiaries making full annual reports to the NTD are 
also subject to monthly reporting requirements on service operations 
and safety incidents. MAP-21 also established new requirements for 
reporting asset inventories and condition assessments to FTA at section 
5326(b)(3), 5335(a), and 5335(c). FTA grantees and sub-recipients 
should look for a future Federal Register Notice with proposed changes 
to the FTA's NTD Reporting Manual for more information and an 
opportunity to comment on FTA's implementation of these new statutory 
requirements.
    The NTD Reporting Manuals contains detailed reporting instructions 
and are posted on the NTD Web site, www.ntdprogram.gov.

D. Fixed Guideway Capital Investment Program (49 U.S.C. 5309)--New and 
Small Starts and Core Capacity Improvements

    The Fixed Guideway Capital Investment Program provides funds for 
construction of new fixed guideway systems or extensions to existing 
fixed guideway systems and, as amended by MAP-21, projects that will 
expand the core capacity of existing fixed guideway corridor. Eligible 
projects are new fixed-guideway systems, such as rapid rail (heavy 
rail), commuter rail, light rail, hybrid rail, trolleybus (using 
overhead catenary), cable car, passenger ferries, and bus rapid 
transit, or an extension of any of these. The Small Starts program also 
includes corridor-based bus rapid transit systems that do not operate 
on a separate fixed guideway but include features that emulate the 
services provided by rail fixed guideway including defined stations, 
traffic signal priority for public transit vehicles, and short headway 
bi-directional services for a substantial part of weekdays and weekend 
days. The Core Capacity Improvement program provides funds for 
substantial, corridor-based investments in existing fixed guideway 
systems that are at capacity today or will be in five years. Core 
Capacity Improvement projects must increase the capacity of the 
existing fixed guideway system in the corridor by at least 10 percent. 
Projects become candidates for funding under this program by 
successfully completing steps in the process defined in section 5309 
and obtaining a satisfactory rating under the statutorily-defined 
criteria. For New Starts and Core Capacity Improvement projects, the 
steps in the process include project development, engineering, and 
construction. For Small Starts projects the steps in the process 
include project development and construction. New Starts and Core 
Capacity Improvement projects receive construction funds from the 
program 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 receive construction 
funds through a single year grant or an expedited grant agreement that 
defines the scope of the project and specifies the Federal commitment 
to the project. For more information about the New or Small Starts or 
Core Capacity 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 or 
eric.hu@dot.gov.
1. Authorized Amounts
    MAP-21 authorizes the appropriation of $1,907,000,000 in each FY 
2013 and $1,907,000,000 in FY 2014 to provide financial assistance 
under section 5309.

------------------------------------------------------------------------
           Fiscal year                   2013                2014
------------------------------------------------------------------------
Funds Authorized................      $1,907,000,000      $1,907,000,000
------------------------------------------------------------------------

2. FY 2013 Funding Availability
    Under the continuing resolution, a total of $931,994,700 is 
available for the section 5309 program for the period October 1, 2012 
through March 27, 2013. This amount is based on the rate of operations 
as defined in OMB Bulletin 12-02, which specifies that the CR 
annualized level equals the FY 2012 enacted appropriation net of FY 
2012 rescissions. In the case of this account, because $44 million 
would be subject to rescission were the 2012 rescission enacted in FY 
2013, FTA must subtract this amount when calculating the CR annualized 
level. Thus far, the total amount available for allocation is 
$922,674,753, after the one percent deduction for oversight, as shown 
in the table below.

         Fixed Guideway Capital Investment Program--FY 2013 (CR)
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.....................................    $931,994,700
Oversight Deductions....................................     -$9,319,947
Total Available.........................................    $922,674,753
------------------------------------------------------------------------

3. Basis for Allocation
    Funds are allocated on a discretionary basis and subject to program 
evaluation.
4. Requirements
    FTA will be completing a rulemaking and interim guidance documents 
related to the New Starts, Small Starts, and Core Capacity Improvement 
program to implement the provisions of MAP-21. Project sponsors should 
reference the FTA Web site at www.fta.dot.gov for the most current 
fixed guideway capital investment program guidance. Grant-related 
guidance is found in FTA Circular 9300.1B, Capital Investment Program 
Guidance and Application Instructions, November 1, 2008; and C5200.1A, 
Full Funding Grant Agreement Guidance, December 5, 2002, which will be 
updated in the future to incorporate the changes made by MAP-21.
5. Period of Availability
    MAP-21 expanded the period of availability for section 5309 capital 
investment funds to five years, (the fiscal year in which the amount is 
made available plus four additional years). Therefore, funds for a 
project identified in FY 2013 must be obligated for the project by 
September 30, 2017. Section 5309 funds that remain unobligated to the 
projects for which they originally were designated after five fiscal 
years may be made available for other section 5309 projects.
6. Other Program Information
    Prior year FY 2011 and FY 2012 unobligated allocations for New 
Starts in the amount of $528,273,000 remain available for obligation in 
FY 2013. These unobligated amounts are

[[Page 63688]]

displayed in Table 10 on FTA's FY 2013 Apportionments web page.

E. Enhanced Mobility of Seniors and Individuals With Disabilities 
Program (49 U.S.C. 5310)

    The Enhanced Mobility of Seniors and Individuals with Disabilities 
Program provides formula funding to States and Designated Recipients of 
large UZAs (UZAs with populations of 200,000 or more) to improve 
mobility for seniors and individuals with disabilities. This program 
provides funds to: (1) Serve the special needs of transit-dependent 
populations beyond traditional public transportation service, where 
public transportation is insufficient, inappropriate, or unavailable; 
(2) projects that exceed the requirements of the Americans with 
Disabilities Act (ADA) act; (3) project that improve access to fixed 
route service and decrease reliance on complementary paratransit; and 
(4) projects that are alternatives to public transportation.
    Under MAP-21 this program no longer provides a single apportionment 
to the State; however, it now provides apportionments specifically for 
large urbanized, small urbanized and rural areas; and will require new 
designations in large UZAs. Additionally, MAP-21 expanded the 
eligibility provisions to include operating expenses.
    For more information about the Enhanced Mobility of Seniors and 
Individuals with Disabilities Program, contact Gil Williams, Office of 
Transit Programs, at (202) 366-0797 or gilbert.williams@dot.gov.
1. Authorized Amounts
    MAP-21 authorizes $254,800,000 in FY 2013 and $258,000,000 in FY 
2014 for the Enhanced Mobility of Seniors and Individuals with 
Disabilities formula program.

------------------------------------------------------------------------
             Fiscal year                    2013              2014
------------------------------------------------------------------------
Funds Authorized....................      $254,800,000      $258,000,000
------------------------------------------------------------------------

2. FY 2013 Funding Availability
    Under the continuing resolution, a total of $122,689,376 is 
available for the section 5310 program for the period October 1, 2012 
through March 27, 2013. Thus far, the total amount apportioned to 
States and UZAs for the section 5310 program is $122,075,929, after the 
deduction for oversight (authorized by section 5338), as shown below in 
the table.

Enhanced Mobility of Seniors and Individuals With Disabilities Program--
                              FY 2013 (CR)
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.....................................    $122,689,376
Oversight Deductions....................................       -$613,447
Total Apportioned.......................................    $122,075,929
------------------------------------------------------------------------

    Table 11 displays the amounts apportioned under the Enhanced 
Mobility of Seniors and Individuals with Disabilities Program.
3. Basis for Formula Apportionment
    Sixty percent of the funds shall be apportioned among Designated 
Recipients for urbanized areas with a population of 200,000 or more 
individuals. Twenty percent of the funds shall be apportioned among the 
States for their urbanized areas with a population of at least 50,000 
but less than 200,000. Twenty percent of the funds shall be apportioned 
among the States for their rural areas, areas with a population less 
than 50,000. In addition, previous law allowed U.S. DOT to establish 
the formula for section 5310. The Secretary's formula provided a 
$125,000 funding floor (i.e., minimum apportionment amount) for each 
State, as well as for the District of Columbia, Guam and Puerto Rico, 
and a $50,000 funding floor for American Samoa and the Northern Mariana 
Islands. Since the formula is now prescribed in section 5310, as 
amended by MAP-21, there are no funding floors under this program.
    Under the section 5310 formula, funds are allocated using Census 
data on seniors (i.e., persons 65 and older) and people with 
disabilities. However, beginning in 2010, the Census Bureau stopped 
collecting this demographic information on as part of its decennial 
census. Data on seniors and people with disabilities is now only 
available from the American Community Survey (ACS), which is conducted 
and published on a rolling basis. FTA's FY 2013 section 5310 
apportionments incorporate ACS data published in December, 2011. Data 
on seniors comes from the ACS 2006-2010 five-year data set, Table 
S.0103, ``Population 65 Years and Older in the United States,'' and 
Table S.0103PR, ``Population 65 Years and Older in Puerto Rico.'' Data 
on persons with disabilities comes from the ACS 2008-2010 three-year 
data set, Table S.1810, ``Disability Characteristics.'' (A five-year 
data set for persons with disabilities is not yet available because the 
Census changed the wording of its question on disability status after 
2008.)
4. Program Requirements
i. Designated Recipients
    For urbanized areas less than 200,000 and in the rural areas, the 
State is the Designated Recipient for section 5310. Current 5310 
designations remain in effect until changed by the Governor of a State 
by officially notifying the appropriate FTA regional administrator of 
re-designation.
    In urbanized areas over 200,000 in population, the recipient 
charged with administering the section 5310 Program must be officially 
designated through a process consistent with sections 5303 and 5304 
prior to grant award. The MPO, State, or another public agency may be a 
preferred choice based on local circumstances. The designation of a 
recipient shall be made by the governor in consultation with 
responsible local officials and publicly owned operators of public 
transportation, as required in sections 5303 and 5304. As such, FTA 
asks that in the large urbanized areas, the MPO initiate the process 
for designating a 5310 Designated Recipient as soon as possible. Funds 
cannot be awarded until this designation is on file with the FTA 
Regional office. A State agency could be designated as the recipient of 
section 5310 funds for a large urbanized area. However, if the State is 
selected as the designated recipient in a large urbanized area, the 
apportioned funds for the large urbanized area must be allocated to 
agencies within the urbanized area.
    Designated recipients are responsible for administering the 
program. Responsibilities include: Notifying eligible local entities of 
funding availability; developing project selection processes; 
determining project eligibility; developing the program of projects; 
and ensuring that all subrecipients comply with Federal requirements.
    Although FTA will only award grants to the designated recipients 
for the program, there are other entities eligible to receive funding 
as a subrecipient. These include private nonprofit agencies, public 
bodies approved by the state to coordinate services for elderly persons 
and persons with disabilities, or

[[Page 63689]]

public bodies which certify to the Governor that no nonprofit 
corporations or associations are readily available in an area to 
provide the service.
ii. Eligible Expenses
    MAP-21 expands eligibility of the funds to be used for operating, 
in addition to capital, for transportation services that address the 
needs of seniors and individuals with disabilities. Not less than 55 
percent of the funds available for this program must be used for 
projects planned, designed, and carried out to meet the special needs 
of seniors and individuals with disabilities when public transportation 
is insufficient, inappropriate, or unavailable, typically carried out 
by non-profit agencies. The 55 percent is a floor. Recipients may use 
more or all of their section 5310 funds for these types of projects. 
Remaining funds may be used for: public transportation projects that 
exceed the requirements of the ADA; public transportation projects that 
improve access to fixed-route service and decrease reliance by 
individuals with disabilities on complementary paratransit; or 
alternatives to public transportation that assist seniors and 
individuals with disabilities. The expanded eligibility provisions are 
a result of the consolidation of the section 5317 New Freedom Program, 
which was repealed in MAP-21, with the section 5310 program. The 
acquisition of public transportation services remains an eligible 
capital expense under this section.
    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.
    For more on eligible expenses, until FTA revises the section 5310 
circular, recipients may use FTA Circular 9070.1F, Elderly Individuals 
and Individuals with Disabilities Program Guidance and Application 
Instructions, dated May 1, 2007 for 5310 projects and FTA Circular 
9045.1, New Freedom Program Guidance and Application Instructions, 
dated May 1, 2007 for New Freedom-like projects.
iii. Local Match
    The matching requirements for this program remain the same; capital 
assistance is provided on an 80 percent Federal share, 20 percent local 
share. Operating assistance requires a 50 percent match. One difference 
to note, however, is that MAP-21 eliminated the provision for the 
sliding scale match under FHWA programs to be used in this program. 
Funds provided under other Federal programs (other than those of the 
Department of Transportation, with the exception of the Federal Lands 
Transportation Program and Tribal Transportation Program established by 
sections 202 and 203 of title 23 U.S.C.) may be used for local match 
for funds provided under section 5310, and revenue from service 
contracts may be used as local match.
iv. Planning and Consultation
    The States and Designated Recipients must certify that: Projects 
selected for funding under this program are included in a locally 
developed, coordinated public transit-human services transportation 
plan; and the plan was developed and approved through a process that 
included participation by seniors, individuals with disabilities, 
representatives of public, private, nonprofit transportation and human 
services providers, and other members of the public.
    Under MAP-21, the coordinated planning provision requires that all 
projects be included in the local coordinated human service-public 
transportation plan. However, on an interim basis, FTA defines 
``included in'' to mean essentially the same as ``derived from,'' which 
is consistent with the policy established under SAFETEA-LU, so long as 
there is evidence the plan was developed and approved with inclusion 
from the specific targeted populations. FTA will, however, through 
revisions to its circular, seek notice and comment for how to define 
``included in'' for FY 2014.
    Although the requirement for a coordinated plan is not new, FTA 
recognizes that some large urbanized areas may need to modify existing 
coordinated plans to address the specific needs of the program's target 
populations and/or be approved by individuals from the target 
populations. Modifications to existing programs are acceptable. For 
areas where a coordinated plan does not exist, FTA requires the 
following elements, at a minimum, be included in the plans:
    a. An assessment of available services that identifies current 
transportation providers (public, private, and nonprofit);
    b. An assessment of transportation needs for individuals with 
disabilities and seniors;
    c. Strategies, activities, and/or projects to address the 
identified gaps between current services and needs, as well as 
opportunities to achieve efficiencies in service delivery; and,
    d. Priorities for implementation based on resources (from multiple 
program sources), time, and feasibility for implementing specific 
strategies and/or activities identified.
    Additionally, the plan must be developed and adopted with 
representation from seniors, individuals with disabilities, 
representatives of public, private, nonprofit transportation and human 
services providers, and other members of the public.
    Similar to how FTA treated this requirement under SAFETEA-LU 
programs, recipients are not required to submit the coordinated plans 
to FTA. Recipients must certify, however, that projects were selected 
from this process and must make reference to the plan in the program of 
projects, which is described below. Additional guidance for developing 
coordinated plans can be found in Chapter V of the FTA Circular 
9070.1F, Elderly Individuals and Individuals with Disabilities Program 
Guidance and Application Instructions, dated May 1, 2007.
v. State and Project Management Plans
    Similar to the requirements established under SAFETEA-LU, FTA will 
require States and designated recipients responsible for implementing 
the section 5310 program to document their approach to managing the 
program. States may need to update their plan to reflect MAP-21 
changes. In areas over 200,000, the designated recipient will be 
required to submit a plan to the regional office prior to grant award. 
For assistance with developing these plans, recipients can use Chapter 
VII of the FTA Circular 9070.1F, Elderly Individuals and Individuals 
with Disabilities Program Guidance and Application Instructions, dated 
May 1, 2007. This chapter includes guidance on how to create and use 
State Management Plans (SMP), and can be used as a guide to develop a 
Program Management Plan (PMP) in the urbanized areas. The primary 
purposes of Management Plans are to serve as the basis for FTA 
management reviews of the program, and to provide public information on 
the administration of the programs.
vi. Program of Projects (POP)
    Designated Recipients are required to develop a Program of Projects 
(POP) with the grant application and submit it to the FTA regional 
office. The POP should be developed with respect to the coordinated 
plan, long range plan, and the transportation improvement plan.
    For additional guidance in developing the required POP, recipients 
can use Chapter IV of the FTA Circular 9070.1F,

[[Page 63690]]

Elderly Individuals and Individuals with Disabilities Program Guidance 
and Application Instructions, dated May 1, 2007.
5. Period of Availability
    For Enhanced Mobility of Seniors and Individuals with Disabilities 
Program funds apportioned under this notice, FTA has administratively 
set the period of availability to three years, which includes the year 
of apportionment plus two additional years. Accordingly, funds 
apportioned in FY 2013 must be obligated in grants by September 30, 
2015. Any FY 2013 apportioned funds that remain unobligated at the 
close of business on September 30, 2015 will revert to FTA for 
reapportionment among the States and urbanized areas.
6. Other Program Information
    Recipients may use a competitive selection to select projects, but 
it is not required.
    MAP-21 requires FTA to establish performance measures for the 
program, which will be developed in coordination with revisions to the 
existing FTA Circular 9070.1F, Elderly Individuals and Individuals with 
Disabilities Program Guidance and Application Instructions, dated May 
1, 2007, and through notice and comment.
    Cross-cutting requirements for transit asset management plans and 
reporting of asset inventory and condition information will apply to 
this program. See section III.D. in this notice on cross-cutting 
programmatic requirements for more information.
    States may transfer rural or small urbanized areas funds. The State 
may transfer apportioned funds between the small urbanized areas and 
the rural areas if it can certify that the needs are being met in the 
area to which the funds were originally apportioned. The State can 
transfer the funds (rural and small urbanized area) to any area within 
the state if a statewide program for this section is established. There 
are no administrative or statutory provisions to permit transferring 
section 5310 funds to other FTA programs nor is there a provision for 
large urbanized areas to transfer their funds to the State.
    Program Guidance is found in FTA C 9070.1F, Elderly Individuals and 
Individuals with Disabilities Program Guidance and Application 
Instructions, dated May 1, 2007. FTA is in the process of updating this 
circular to incorporate changes resulting from MAP-21 and will publish 
it for notice and comment prior to issuing a final circular.

F. Formula Grants for Rural Areas Program (49 U.S.C. 5311)

    The Rural Areas 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, planning, job access and reverse commute projects, 
and State administration expenses. Eligible sub-recipients include 
State and local governmental authorities, 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 apportioned or selected to 
be funded with funds set aside for a separate Tribal Transit Program. 
For more information about the Formula Grants for Rural Areas program, 
contact Lorna Wilson, Office of Transit Programs, at (202) 366-0893 or 
lorna.wilson@dot.gov.
    Under MAP-21, the changes to this program included changes to the 
formula, eligibility, and to the set-asides that support other rural 
transit programs within this section, such as the Tribal Transit 
Program. These changes are described in the sections below.
1. Authorized Amounts
    MAP-21 authorizes $599,500,000 in FY 2013 and $607,800,000 in FY 
2014 to provide financial assistance for rural areas under section 
5311.

------------------------------------------------------------------------
               Fiscal year                     2013            2014
------------------------------------------------------------------------
Funds Authorized........................    $599,500,000    $607,800,000
------------------------------------------------------------------------

    In addition to the funds made available to States under section 
5311, approximately 16 percent of the funds authorized for the new 
section 5340 Growing States and High Density States formula factors 
will be apportioned to States for use in rural areas.
    Funding for oversight, the Rural Transportation Assistance Program 
(RTAP), Tribal Transit Program, and the new Appalachian Development 
Public Transportation Assistance Program will be taken off the top 
before amounts are apportioned to the States.
2. FY 2013 Funding Availability
    Under the continuing resolution, a total of $290,423,512 is 
available for the section 5311 program for the period October 1, 2012 
through March 27, 2013. Thus far, the total amount apportioned to the 
States for the section 5311 program is $293,341,084, after the 
deductions for the Rural Transportation Assistance Program (RTAP), 
oversight (authorized by section 5338), the Tribal Transit Program, the 
Appalachian Development Public Transportation Assistance Program, and 
the addition of Section 5340 for Growing States, as shown in the table 
below.

          Formula Grants for Rural Areas Program--FY 2013 (CR)
Total Appropriation.....................................    $288,666,722
Oversight Deductions....................................      -1,443,334
RTAP Takedown...........................................      -5,773,336
Tribal Takedown.........................................     -14,445,372
Appalachian Takedown....................................      -9,630,250
Section 5340 Funds Added................................      35,966,654
    Total Apportioned...................................     293,341,084
------------------------------------------------------------------------

    Table 12 displays the amounts apportioned to the States under the 
Formula Grants for Rural Areas Program.
3. Basis for Formula Apportionment
    MAP-21 modifies the formula for the Rural Areas Program. SAFETEA-LU 
directed 80 percent of funds to be allocated to States on the basis of 
non-urbanized population and the remaining 20 percent to be allocated 
on the basis of non-urbanized land area. MAP-21 reduces the amount of 
funds that are apportioned on the basis of non-urbanized population 
from 80 percent to 66.5 percent while adding an apportionment based on 
non-urbanized vehicle revenue miles and an apportionment based on the 
population of low-income individuals residing in non-urbanized areas. 
The percentage of funds allocated on the basis of non-urbanized land 
area is roughly the same under the MAP-21 formula as it was under the 
SAFETEA-LU formula.
    Data from the Rural Module of the National Transit Database (NTD) 
2011 Report Year was used for this apportionment, including data from 
directly-reporting Indian tribes. Data from public transportation 
systems that reported to the Annual (Urbanized Area) Module, and that 
was not attributable to an urbanized area, was also included. Data from 
public transportation

[[Page 63691]]

subrecipients in the Rural Module of the NTD that were identified by 
FTA staff as having been located in rural areas following the 2000 
Census, but are now located in urbanized areas over 200,000 in 
population following the 2010 Census, were not included in this 
apportionment, but were included in the apportionment for the Urbanized 
Area Formula Program. These systems will be identified in the 
supplementary data tables accompanying the apportionment data tables. 
This was not done for subrecipients now located in urbanized areas 
under 200,000 in population following the 2010 Census; data for these 
systems were included in the apportionment for the Rural Areas Formula 
Program.
    Under MAP-21, the section 5311 program now includes three 
takedowns: the new Appalachian Development Public Transportation 
Assistance Program; the Rural Transit Assistance Program (RTAP); and 
the Tribal Transit Program, which was changed under MAP-21. These 
separate programs are described in the sections that follow.
4. Program Requirements
    The program requirements under this section are generally 
unchanged, with the exception of the cross-cutting requirements 
mentioned in section III.D. of this notice and specific subsections 
outlined below.
    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. This is not changed under 
MAP-21.
    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.
    Additional program guidance for the Rural Areas Program is found in 
FTA Circular 9040.1F, Nonurbanized Area Formula Program Guidance and 
Grant Application Instructions, dated April 1, 2007, and is 
supplemented by additional information and changes provided in this 
notice and that may be posted to FTA's section 5311 Web page. FTA is in 
the process of updating the program circular to incorporate changes 
resulting from MAP-21.
    The following subsections outline several important program 
requirements and changes that apply specifically to the section 5311 
program.
i. Eligible Expenses
    The section 5311 program provides funding for capital, operating, 
planning, job access and reverse commute projects, and administration 
expenses for public transit service in rural areas under 50,000 in 
population. Planning is a new eligible expense under MAP-21; note that 
States were permitted to use a portion of the administrative set-aside 
for planning, but now planning is an eligible activity for 
subrecipients under this program. The planning activities undertaken 
with 5311 funds are in addition to those awarded to the State under 
section 5305 and must be used specifically for rural areas' needs. For 
FY 2013, FTA expects States to follow the requirement set forth by 
section 5305 and described in FTA Circular 8100.1C, Program Guidance 
for Metropolitan Planning and State Planning and Research Program 
Grants, dated September 1, 2008, for eligible uses of 5311 funds for 
planning and for programming the funds prior to obligation. Job access 
and reverse commute projects are also eligible under this program; 
further guidance on this eligible activity is described in section iv 
below.
ii. Intercity Bus Transportation
    The requirement did not change under MAP-21 for each State to spend 
no less than 15 percent of its annual Rural Areas Formula apportionment 
for the development and support of intercity bus transportation, unless 
it can certify, after consultation with affected intercity bus service 
providers, that the intercity bus service needs of the State are being 
adequately met. FTA continues to encourage consultation with other 
stakeholders, such as communities affected by loss of intercity 
service. MAP-21 codifies the ``Intercity Pilot Match Program'' 
established by FTA in March 2007, which permits the cost of an 
unsubsidized portion of privately provided intercity bus service that 
connects feeder service to be used as in-kind local match for the 
intercity bus projects. FTA will develop guidance consistent with that 
published in the Federal Register on February 28, 2007, as Appendix 1 
of the Notice that announced the final revised FTA Circular 9040.1F, 
and update the program circular to include this provision.
iii. State Administration
    MAP-21 reduced the amount available to States to 10 percent from 15 
percent for use for administration, planning, and technical assistance. 
States may elect to use 10 percent of their apportionment at 100 
percent federal share to administer the section 5311 program and 
provide technical assistance to subrecipients. Technical assistance 
includes project planning, program and management development, public 
transportation coordination activities, and research the State 
considers appropriate to promote effective delivery of public 
transportation to rural areas.
iv. Job Access and Reverse Commute Projects
    Job access and reverse commute projects are eligible for funding 
under the Rural Areas Formula Program. A job access and reverse commute 
project is defined as:

    ``a transportation project to finance planning, capital and 
operating costs that support the development and maintenance of 
transportation services designed to transport welfare recipients and 
eligible low-income individuals to and from jobs and activities 
related to their employment, including transportation projects that 
facilitate the provision of public transportation services from 
urbanized areas and rural areas to suburban employment locations.''

    There is no set-aside or cap under MAP-21 for job access and 
reverse commute projects funded under this section. However, the 
projects must be for the ``development and maintenance'' of 
transportation services designed to transport welfare recipients and 
eligible low-income individuals to and from jobs and employment-related 
activities. FTA defines ``development of transportation services'' to 
mean new projects that were not in service on October 1, 2012. New job 
access and reverse commute projects may include the expansion or 
extension of an existing service, so long as the new service was 
designed to support the target population consistent with the 
definition above and the other planning requirements (described below) 
were met. Such projects are not required to be designed exclusively for 
these populations.
    ``Maintenance of transportation services'' is identified as the 
continuation of eligible job access and reverse commute projects that 
received funding under the SAFETEA-LU section 5316 JARC Program, which 
was repealed by MAP-21.
    Reverse commute projects are only eligible under this section if 
they are designed to transport welfare recipients and eligible low-
income individuals to and from jobs and employment-related activities. 
However, as noted above, the

[[Page 63692]]

services do not need to be exclusively for the target population.
    For FY 2013, any projects or project elements that were eligible 
under the section 5316 Job Access and Reverse Commute Program, 
authorized under SAFETEA-LU, will remain eligible, so long as they can 
be classified as development or maintenance, as described above and 
comply with the MAP-21 definition of a job access and reverse commute 
project. A list of these eligible projects elements can be found in FTA 
Circular 9050.1, The Job Access and Reverse Commute (JARC) Program 
Guidance and Application Instructions. FTA anticipates cancelling this 
circular and addressing project eligibility in a revised FTA Circular 
9040.1C for the Rural Areas Formula Program. Some of these types of 
projects may not continue to be eligible in the future.
    In order to receive funding for a job access and reverse commute 
project under this provision, the project must be identified by the 
State as job access and reverse commute projects in the annual Program 
of Projects.
    While the job access and reverse commute projects funded under this 
section do not have to be selected from a locally-developed, human 
service public transportation planning process (``coordinated planning 
process''), FTA encourages States to continue the coordinated planning 
process in identifying and developing projects for funding.
    Funds previously apportioned under section 5316 (JARC) that have 
not been obligated will remain available to the entity that was the 
Designated Recipient for those funds at the time of apportionment 
through the period of availability unless a new designation is 
received. These funds are subject to the requirements of SAFETEA-LU and 
cannot be combined in a grant in a section 5311 grant under MAP-21.
v. Eligibility for Safety Certification Training
    Recipients of section 5311 funds are permitted to use not more than 
0.5 percent of their formula funds under the Rural Areas program to pay 
not more than eighty percent of the cost of participation for an 
employee who is directly responsible for safety oversight to 
participate in public transportation safety certification training. 
Safety certification training program requirements will be established 
in accordance with section 5329.
5. Period of Availability
    For funds authorized under MAP-21, FTA is continuing to apply the 
period of availability established under SAFETEA-LU, which is four 
years; this includes the year of apportionment plus three additional 
years. The Rural Areas program funds apportioned in this notice are 
available for obligation during FY 2013 plus three additional years. 
Any FY 2013 apportioned funds that remain unobligated at the close of 
business on September 30, 2016 will revert to FTA for reapportionment 
under the Rural Areas program.
6. Other Program Information
    NTD Reporting. Section 5335 requires that each recipient or 
beneficiary under the section 5311 program submit an annual report to 
the NTD containing information on capital investments, operations, and 
service. Section 5311(b)(4) 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. Annual NTD 
reports should be a complete report of all transit activities, 
regardless of funding source. 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 full reporting waiver). 
For the 2012 Report Year, which lasts from October 2012 through July 
2013, 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. State or Territorial DOTs should also continue to report on 
behalf of any sub-recipients that received Section 5311 grants in prior 
years, and which anticipate receiving section 5311 grants in future 
years. Tribal Transit direct recipients must report if they received an 
obligation for a grant in 2011, or if they received 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 has only received $50,000 or less in planning grants. 
MAP-21 also established new requirements for reporting asset 
inventories and condition assessments to FTA at sections 5326(b)(3), 
5335(a), and 5335(c). FTA grantees and sub-recipients should look for a 
future Federal Register Notice with proposed changes to the FTA's NTD 
Reporting Manual for more information and an opportunity to comment on 
FTA's implementation of these new statutory requirements.

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

    This program is not changed in MAP-21 and continues to provide 
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 rural areas. For 
more information about Rural Transportation Assistance Program (RTAP) 
contact Lorna Wilson, Office of Transit Programs, at (202) 366-0893 or 
lorna.wilson@dot.gov.
1. Authorized Amounts
    MAP-21 authorizes a two percent takedown from the funds 
appropriated for section 5311 for RTAP. Of this amount, 15 percent is 
reserved for the National RTAP program. The remainder is available for 
allocation to the States.

 MAP-21 Authorizes the Following Amounts to Carryout Section for Fiscal
                             Years 2013-2014
------------------------------------------------------------------------
               Fiscal year                     2013            2014
------------------------------------------------------------------------
Funds Authorized........................     $11,990,000     $12,156,000
------------------------------------------------------------------------

2. FY 2013 Funding Availability
    Under the continuing resolution, a total of $5,773,336 is available 
for the Section 5311 RTAP program for the period October 1, 2012 
through March 27, 2013. Thus far, after the reservation for the 
National RTAP program, a total of $4,907,336 is available for 
allocation to the States, as shown in the table below.

          Rural Transportation Assistance Program--FY 2013 (CR)
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.....................................      $5,773,336

[[Page 63693]]

 
National RTAP...........................................        -866,000
    Total Apportioned...................................       4,907,336
------------------------------------------------------------------------

    Table 12 shows the FY 2013 RTAP allocations to the States.
3. Basis for Formula Apportionment
    FTA will continue to allocate 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 rural 
population in the 2010 census.
4. Requirements
    States may use the funds to undertake research, training, technical 
assistance, and other support services to meet the needs of transit 
operators in rural areas. These funds are to be used in conjunction 
with a State's administration of the Rural Areas Formula Program, but 
also may support the rural components of the section 5310 program.
5. Period of Availability
    The section 5311 RTAP funds apportioned in this notice are 
available for obligation in FY 2013 plus three additional years, 
consistent with that established for the section 5311 program.
6. Other Program Information
    The National RTAP project is administered by cooperative agreement 
and re-competed at five-year intervals. FY 2013 marks the fifth year of 
the current agreement and FTA will publish a Request for Proposals in 
the spring of FY 2013. 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.

H. Appalachian Development Public Transportation Assistance Program (49 
U.S.C. 5311(c)(2))

    MAP-21 establishes this new program as a take-down under the 
section 5311 program to provide additional funding to support public 
transportation in the Appalachian region. There are sixteen eligible 
States that receive an allocation under this provision. The States and 
their allocation are shown in the Rural Areas Formula program table 
posted on FTA's Web site under the FY 2013 Apportionments page. For 
more information about the Appalachian Development Public 
Transportation Assistance Program, contact Lorna Wilson, Office of 
Transit Programs, at (202) 366-0893 or lorna.wilson@dot.gov.
1. Authorized Amounts
    MAP-21 authorizes $20 million in FY 2013 and in FY 2014 as a take-
down under the section 5311 program to support public transportation in 
the Appalachian region.

------------------------------------------------------------------------
               Fiscal year                     2013            2014
------------------------------------------------------------------------
Funds authorized........................     $20,000,000     $20,000,000
------------------------------------------------------------------------

2. FY 2013 Funding Availability
    Under the continuing resolution, a total of $9,630,250 is available 
for the Appalachian Development program for the period October 1, 2012 
through March 27, 2013, as shown below.

  Appalachian Development Public Transportation Assistance Program--FY
                                2013 (CR)
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total appropriation.....................................      $9,630,250
    Total apportioned...................................       9,630,250
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    FTA apportions the funds using percentages established under 
section 9.5(b) of the Appalachian Regional Commission Code (subtitle IV 
of title 40). Allocations will be based in general on each State's 
remaining estimated need to complete eligible sections of the 
Appalachian Development Highway System as determined from the latest 
percentages of available cost estimates for completion of the System. 
Such cost estimates shall be produced at approximate five year 
intervals. Allocations shall contain upper and lower limits in amounts 
or to be determined by the Commission and shall be made in accordance 
with legislative instructions.
4. Requirements
    Funds apportioned under this program can be used for purposes 
consistent with section 5311 to support public transportation in the 
Appalachian region. Funds can be applied for in the State's annual 
section 5311 grant.
    MAP-21 includes a provision that permits the use of Appalachian 
program funds that cannot be used for operating to be used for a 
highway project under certain circumstances. FTA will issue guidance in 
a subsequent notice on how to accomplish a transfer.
5. Period of Availability
    Section 5311 Appalachian program funds are available for four 
years, which includes the year of apportionment plus three additional 
years, consistent with that established for the section 5311 program.

I. Formula Grants for Public Transportation on Indian Reservations 
Program (49 U.S.C. 5311(j))

    Under SAFETEA-LU, through extensive consultation, FTA administered 
this program as a discretionary program. MAP-21 continues a 
discretionary program and establishes a tribal transit formula program, 
both of which include language that permits FTA to determine the terms 
and conditions for grants under this section. FTA intends to consult 
with Tribal grantees and stakeholders as it implements both of the 
programs authorized under MAP-21. FTA will publish its plans and 
schedule for consultation on its Tribal Transit program Web page and in 
the upcoming FY 2012 Notice of Award allocating the FY 2012 Tribal 
Transit Program funds.
    The Tribal Transit Program now totals $30 million, of which $25 
million is for a formula program and $5 million is for a discretionary 
grant program. Formula factors include vehicle revenue miles and the 
number of low-income individuals residing on tribal lands. It is funded 
as a takedown from funds made available for the section 5311 program. 
Eligible direct recipients are federally recognized Indian tribes in 
rural areas. The funds are to be allocated for grants to Indian tribes 
for any purpose eligible under section 5311, which includes capital, 
operating, planning, job access and reverse commute projects, and 
administrative assistance for rural public transit services and rural 
intercity bus service. For more information about the Tribal Transit

[[Page 63694]]

Program contact Lorna Wilson, Office of Transit Programs, at (202) 366-
0893 or lorna.wilson@dot.gov or Elan Flippin, Office of Transit 
Programs at (202) 366-2053 or elan.flippin@dot.gov.
1. Authorized Funding
    Under MAP-21, $30 million is authorized in FY 2013 and in FY 2014. 
Five million will be allocated on a competitive basis and $25 million 
will be allocated by formula.
2. FY 2013 Funding Availability
    At this time, given the need to consult the tribes on the terms and 
conditions for the program, there are no FY 2013 funds available for 
obligation. FTA is publishing an illustrative apportionment table 
(Table 14) to show the estimated allocations to the Indian tribes by 
formula. Through the consultative process, FTA will invite comment on 
the data and methods used to allocate these funds.
    Following consultation, FTA will publish a final apportionment 
table to show the amounts available to Indian tribes under the formula 
program. As described earlier in the notice, FTA will publish a NOFA 
for the discretionary program soliciting proposals for funding at a 
later date.
3. Basis for Allocation
    Funds will be allocated by formula and through a discretionary 
competition, as described below.
Tribal Transit Formula Program
    The Tribal Transit formula program is distributed to eligible 
Indian tribes providing public transportation on tribal lands. The 
illustrative apportionment shown in Table 14 is based on a statutory 
formula which includes three tiers. Tiers 1 and 2 for the Tribal 
Transit formula program are based on historical data reported to NTD by 
Indian tribes who received section 5311 funding in prior years 
(including discretionary Tribal Transit Program funds); the third tier 
is based on 2010 U.S. Census data. The allocations included in the 
illustrative apportionment are not available for obligation at this 
time. It is FTA's intent to consult Indian tribes and discuss the basis 
for the allocations.
    The three tiers for the formula are:
    Tier 1--50 percent based on vehicle revenue miles.
    Tier 2--25 percent based on Indian tribes providing at least 
200,000 vehicle revenue miles.
    Tier 3--25 percent based on Indian tribes providing public 
transportation on reservations where more than 1,000 low income 
individuals reside.
    In order to calculate the illustrative apportionments, FTA made the 
following interpretations of the statute. These interpretations enable 
FTA to determine how much money each Indian tribe receives under the 
formula program and should be treated as illustrative, pending 
consultation with the Indian tribes. Note, the data used for Tiers 1 
and 2 is from the NTD. Section 5335 requires NTD reporting for all 
direct recipients of section 5311 funds. Since the inception of the 
program, this reporting requirement has applied to the Tribal Transit 
Program. Thus, only current NTD reporters that have provided vehicle 
revenue miles are considered for an allocation under these two tiers.
    i. Vehicle Revenue Miles reported to the NTD from Indian tribes 
will count towards both the Tribal Transit Formula and towards the 
Rural Formula (or Urban Formula.)
    ii. When another local government entity pays an Indian tribe to 
operate service in an off-Reservation jurisdiction, 100% of the service 
operated by the Indian tribe will count towards the Tribal Transit 
Formula. This is service by ``each Indian tribe providing public 
transportation service.''
    iii. When an Indian tribe pays another local government entity to 
extend service to the Reservation, a pro-rated share of the local 
government's vehicle revenue miles will be counted towards the Tribal 
Transit formula. This share will count towards both the Rural and 
Tribal Transit formulas. The pro-rated share will be based on the 
proportion of total operating expenses paid for by the Indian tribe.
    iv. When an Indian tribe provides capital assistance only to a 
local government entity providing service to the Reservation, then no 
vehicle revenue miles are counted towards the Tribal Formula. In this 
case, the Tribe would still participate in the Tier 3 of the Tribal 
Formula, which is based ``on each Indian tribe providing public 
transportation on tribal lands * * *''
    v. Previous recipients of Tribal Transit grants of $50,000 or less 
have been administratively exempted from reporting to the NTD. These 
grants were usually for planning projects. If these Indian tribes were, 
in fact, already operating service, they will be excluded from the FY 
2013 apportionment, due to the absence of NTD data. These Indian tribes 
can still report to the NTD for the 2012 Report Year through July 2013 
to be eligible for the FY 2014 apportionment. Any other Indian tribe 
that is already operating transit service, either directly, through a 
partnership with a local government, or through a contract for 
purchased transportation services may also provide an NTD report by 
July 2013 to be eligible for the FY 2014 apportionment. These Tribes 
should contact Lauren Tuzikow at 202-366-2059 or lauren.tuzikow@dot.gov 
for information on how to begin reporting to the NTD.
    vi. For Indian tribes that have multiple service providers, that 
service data will be consolidated and the Indian tribe will receive a 
single apportionment.
    vii. For Tribal operators that serve multiple reservations, a 
single apportionment will be made based on the combined poverty data 
for all reservations served.
    viii. An Indian tribe that is active in the NTD, but has not 
reported any vehicle revenue miles, will be considered for an 
allocation under Tier 3 only.
Tribal Transit Discretionary Program
    See section III.4.iii of this notice; following, consultation with 
tribal representatives and stakeholders, FTA expects to publish a NOFA 
or the $5 million that is authorized to be allocated on a competitive 
basis.
4. Requirements
    Similar to the implementation of the program under SAFETEA-LU, FTA 
will develop procedures for the Tribal Transit program in consultation 
with tribal representatives and other interested stakeholders. FTA will 
issue its FY 2012 Notice of Award for the FY 2012 program selections in 
fall 2012 and this Notice will include a consultation process and 
timeline for MAP-21 implementation. FTA also intends to participate in 
face-to-face meetings and will invite comments on the applicable terms 
and conditions for the program (e.g. planning, local match, etc.) and 
criteria for the new discretionary program.
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 Indian tribes by the States may be 
included in the State's section 5311 application or awarded by FTA in a 
grant directly to the Indian tribe. FTA encourages Indian tribes 
intending to apply to FTA as direct recipients to

[[Page 63695]]

contact the appropriate FTA regional office at the earliest 
opportunity.
    Additionally, recipients under this program have been and area 
still required to report to the NTD (see section IV.F.6. above). As 
mentioned previously, only those Tribes that reported to the NTD for 
the FY 2011 Report Year through July 2012 will be considered in the FY 
2013 formula apportionment. To be considered in the FY 2014 formula 
apportionment, it is critical that recipients report for the FY 2012 
Report year by July 2013.
    Technical assistance for Indian 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). National RTAP 
will also be developing new resources for Tribal Transit. For more 
information contact Lorna Wilson, Program Manager at 202-366-0893 or 
visit the National RTAP Web site http://www.nationalrtap.org.

J. Research, Development, Demonstration, and Deployment Projects (49 
U.S.C. 5312)

    The previous section 5312 (Research, Development, Demonstration, 
and Deployment Projects) and section 5314 (National Research Programs) 
are now consolidated into one program under section 5312. Additionally, 
MAP-21 divides the program into: Research; Innovation and Development; 
and, Demonstration, Deployment and Evaluation. The latter also includes 
a Low or No Emission Vehicle Deployment program to fund low or no 
emission vehicles, facilities, or related equipment in non-attainment 
or maintenance areas. Additionally, MAP-21 establishes a structured 
process for applications, evaluations, and reporting for the research 
programs.
    For more information contact Walter Kulyk, Office of Research, 
Demonstration and Innovation, at (202) 366-4995 or 
walter.kulyk@dot.gov.
1. Authorized Funding
    MAP-21 authorizes the following amounts for the Research Program 
for FYs 2013 and 2014.

------------------------------------------------------------------------
              Fiscal year                     2013             2014
------------------------------------------------------------------------
Funds Authorized......................     $70,000,000      $70,000,000
------------------------------------------------------------------------

    All research and development projects are subject to a reduction 
for the Small Business Innovative Research Program (SBIR). FTA will 
make the determination as to whether or not the SBIR reduction will be 
applied to a particular project based on a review of the proposed scope 
of work for the project.
2. FY 2013 Funding Availability
    Under the continuing resolution, a total of $12,192,500 is 
available for the Research program for the period October 1, 2012 
through March 27, 2013, as shown below. This amount is based on FY 2012 
appropriations for the section 5312 program as authorized under 
SAFETEA-LU, in which $25 million was appropriated.

 Research, Development, Demonstration, and Deployment Projects--FY 2013
                                  (CR)
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.....................................     $12,192,500
Total Apportioned.......................................      12,192,500
------------------------------------------------------------------------

3. Basis for Allocation of Funds
    Topical areas are based on the Department's Strategic Goals and 
projects are generally selected through Notices of Funding 
Availability. Potential recipients can register to receive notification 
of funding availability under this program on Grants.gov.
4. Requirements
    Application Instructions and Program Management Guidelines are set 
forth in FTA Circular 6100.1D Research, Technical Assistance and 
Training Programs: Application Instructions and Program Management 
Guidelines. FTA is in the process of updating this circular to 
incorporate changes resulting from language in MAP-21. All research 
recipients are required to work with FTA to develop approved Statements 
of Work. Under MAP-21 all research projects now require at least a 20 
percent non-Federal share. In some cases FTA may require a higher non-
Federal share if FTA determines a recipient would obtain a clear and 
direct financial benefit from the project, or if non-Federal share is 
an evaluation factor under a competitive selection process. Projects 
under the Low or No Emission Vehicle Deployment Program are also 
subject to section 5307 requirements.
5. Period of Availability
    Except for the Low or No Emission Vehicle Deployment Program, the 
period of availability is established for each funding allocation or 
within the project agreement. Low or No Emission Vehicle Deployment 
funds are available for two years in addition to the year the funds are 
made available to a recipient, for a total of three years.
6. Other Related Information
    Requests for research proposals will be published in Grants.gov.

K. Transit Cooperative Research Program (49 U.S.C. 5313)

    MAP-21 makes no changes to the Transit Cooperative Research Program 
(TCRP). FTA carries out this program through a Cooperative Agreement 
with the Transportation Research Board.
1. Authorized Funding
    MAP-21 authorizes the following amounts for the TCRP for FYs 2013 
and 2014.

------------------------------------------------------------------------
              Fiscal year                     2013             2014
------------------------------------------------------------------------
Funds Authorized......................      $7,000,000       $7,000,000
------------------------------------------------------------------------

2. FY 2013 Funding Availability
    Under the continuing resolution, a total of $3,170,050 is available 
for the TCRP for the period October 1, 2012 through March 27, 2013, as 
shown below.

           Transit Cooperative Research Program--FY 2013 (CR)
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.....................................      $3,170,050
Total Apportioned.......................................       3,170,050
------------------------------------------------------------------------

3. Basis for Allocation of Funds
    TCRP issues annual calls for problem statements. For more 
information and past reports see www.tcrponline.org.

L. Technical Assistance and Standards Development (49 U.S.C. 5314)

    MAP-21 establishes the Technical Assistance and Standards 
Development program which authorizes some activities previously carried 
out through FTA's National Research Program. This section provides 
technical assistance to assist FTA recipients to more effectively and 
efficiently provide transit service and to improve administration of 
federal transit funds. It also authorizes the development of voluntary 
and consensus-based standards and best practices. Additionally, through 
a competitive process, FTA may enter into agreements with national 
nonprofit organizations to assist providers of public transportation 
to: comply with the Americans with Disabilities Act (ADA); comply with 
human services transportation coordination

[[Page 63696]]

requirements and enhance Federal coordination; to meet the 
transportation needs of elderly individuals; to increase transit 
ridership in coordination with MPOs and other entities through 
development around public transportation stations; to address 
transportation equity needs; and to provide any other technical 
assistance activities deemed necessary by FTA.
    For more information contact Walter Kulyk, Office of Research, 
Demonstration and Innovation, at (202) 366-4995 or 
walter.kulyk@dot.gov.
1. Authorized Funding
    MAP-21 authorizes the following amounts for the Technical 
Assistance and Standards program for FYs 2013 and 2014.

------------------------------------------------------------------------
              Fiscal year                     2013             2014
------------------------------------------------------------------------
Funds Authorized......................      $7,000,000       $7,000,000
------------------------------------------------------------------------

2. FY 2013 Funding Availability
    Under the continuing resolution, funding for sections 5314 and 5322 
is provided in a different structure than what is authorized under MAP-
21. Amounts are not specified for sections 5314 or 5322. Therefore, FTA 
does not intend to allocate the funds until further appropriations are 
available.
3. Basis for Allocation of Funds
    Funds will be programmed by FTA based on identified technical 
assistance and standards needs for the transit industry and generally 
selected through a competitive process.
4. Requirements
    Application Instructions and Program Management Guidelines are set 
forth in FTA Circular 6100.1D, Research, Technical Assistance, and 
Training Programs: Application Instructions and Program Management 
Guidelines, dated May 1, 2011. FTA is in the process of updating this 
circular to incorporate changes resulting from language in MAP-21. All 
recipients of Technical Assistance and Standards funds are required to 
work with FTA to develop approved Statements of Work. Projects funded 
using grants require at least a 20 percent non-Federal share.
5. Period of Availability
    The period of availability is established for each funding 
allocation or within the project agreement.
6. Other Related Information
    Requests for proposals will be published in Grants.gov.

M. Human Resources and Training Programs (49 U.S.C. 5322)

    Section 5322 is modified to authorize an Innovative Public 
Transportation Workforce Development Program and to incorporate a 
National Transit Institute.
    FTA may make grants or enter into contracts for human resource 
needs including: Employment training programs; outreach programs to 
increase minority and female employment; research on public 
transportation personnel and training need; and, training and 
assistance for minority business opportunities. Additionally, the 
Innovative Public Transportation Workforce Development program is a 
competitive grant program to assist in the development of innovative 
workforce activities.
    A national transit institute, formerly authorized under section 
5315, is now authorized under section 5322. The institute is authorized 
to develop training and education programs related to topics in public 
transportation.
    For more information contact Walter Kulyk, Office of Research, 
Demonstration and Innovation, at (202) 366-4995 or 
walter.kulyk@dot.gov.
1. Authorized Amounts
    MAP-21 authorizes the following amounts for the Human Resources and 
Training 5322(a), the Innovative Public Transportation Workforce 
Development Program 5322(b), and a National Transit Institute 5322 (d) 
for FYs 2013 and 2014.

------------------------------------------------------------------------
                  Fiscal year                       2013         2014
------------------------------------------------------------------------
Funds Authorized: 5322(a) and (b).............   $5,000,000   $5,000,000
5322 (d) National Transit Institute...........   $5,000,000   $5,000,000
------------------------------------------------------------------------

2. FY 2013 Funding Availability

           Human Resources and Training Programs--FY 2013 (CR)
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Funds Apportioned 5322(a) and (b)........  See Note.
5322 (d) National Transit Institute (NTI)  $1,706,950.
------------------------------------------------------------------------


    Note:  The CR provides funding for sections 5314 and 5322, but 
not in the same structure as MAP-21, and not specifying specific 
amounts for sections 5314 or 5322. Except for the continuation of 
NTI, FTA does not intend to allocate the funds until further 
appropriations are available.

3. Basis for Allocation of Funds
    Funds will be programmed by FTA based on identified workforce 
development and training needs, as well as by competitive selection via 
an innovative workforce development competition or through the 
contracting process.
4. Requirements
    Application Instructions and Program Management Guidelines are set 
forth in FTA Circular 6100.1D, Research, Technical Assistance, and 
Training Programs: Application Instructions and Program Management 
Guidelines, dated May 1, 2011. FTA is in the process of updating this 
circular to incorporate changes resulting from language in MAP-21. All 
recipients of Human Resources and Training funds are required to work 
with FTA to develop approved Statements of Work. FTA may award funds 
through contracts or grants. Grants funded under the Human Resources 
and Training and the Innovative Public Transportation Workforce 
Development Program require a 50 percent non-Federal share.
5. Period of Availability
    The period of availability is established for each funding 
allocation or within the project agreement.
6. Other Related Information
    Requests for proposals will be published in Grants.gov.

N. Public Transportation Emergency Relief Program (49 U.S.C. 5324)

    MAP-21 establishes a public transportation emergency relief program 
to fund eligible operating expenses, as well as capital projects to 
protect, repair, reconstruct, or replace equipment and facilities of a 
public transportation system in the United States or on an Indian 
reservation that the Secretary determines is in danger of suffering 
serious damage or has suffered serious damage as a result of an 
emergency.
    Congress did not provide funding for this program in the continuing 
resolution for FY 2013, however, in certain circumstances recipients 
may use funds apportioned to carry out sections 5307 and 5311 for 
emergency purposes.
    Section 5324(a)(2) defines an emergency as ``a natural disaster 
affecting a wide area (such as a flood, hurricane, tidal wave, 
earthquake, severe storm) or a catastrophic failure from any external 
cause as a result of which (a) the Governor of a State has declared an 
emergency and the Secretary has concurred or (b) the President has 
declared a major disaster under section 401 of the Robert T. Stafford 
Disaster Relief and Emergency

[[Page 63697]]

Assistance Act.'' The key provision here is that at a minimum the 
Governor must declare an emergency (and DOT must concur) in order for 
the section 5324 provisions to apply. Expenses incurred due to 
incidents that do not rise to the level of a Governor's declaration 
with concurrence by the Secretary of Transportation will not be 
eligible to be funded under section 5324. Further, in the event of a 
Presidential declaration of emergency, FTA may reimburse only those 
expenses that are not reimbursed under the Stafford Act.
    Large urbanized areas over 200,000 in population may use funds for 
emergency operating expenses for purposes of evacuations, rescue 
operations, and temporary service in the event of a declared emergency 
as defined above, beginning on the date of declaration. Recipients 
should inform their FTA regional office as soon as practicable that it 
plans to seek reimbursement for emergency operations and/or repairs 
that have already taken place or are in process. Properly documented 
costs may later be reimbursed by grants made either from section 5324 
funding (if appropriated) or section 5307 and 5311 program funding, 
once the eligible recipient formally applies to FTA for reimbursement 
and FTA determines that the expenses are eligible for emergency relief.
    FTA will publish additional guidance on this program using a notice 
and comment process later in FY 2013.
    For more information on the Public Transportation Emergency Relief 
Program, contact Bonnie Graves, Office of Chief Counsel, at 202-366-
4011 or bonnie.graves@dot.gov.

O. Public Transportation Safety Program (49 U.S.C. 5329)

    MAP-21 establishes a Public Transportation Safety Program (section 
5329) authorizing FTA to establish and enforce a new comprehensive 
framework to oversee the safety of public transportation throughout the 
United States. It directs FTA to issue a National Public Transportation 
Safety Plan, which must include safety performance criteria for all 
modes of public transportation and minimum safety performance standards 
for vehicles not regulated by other Federal agencies.
    Section 5329 provides the Secretary with the authority to inspect 
and audit all public transportation systems; to make reports and issue 
directives with respect to the safety of public transportation systems; 
to issue subpoenas and take depositions; to require the production of 
documents; to prescribe record-keeping and reporting requirements; to 
investigate public transportation accidents and incidents; to enter and 
inspect equipment, rolling stock, operations and relevant records; and 
to issue regulations to carry out transit safety provisions.
Safety Certification Training Program
    Section 5329 includes new requirements for establishing a Safety 
Certification Training Program for Federal and State employees, or 
other designated personnel, who conduct safety audits and examinations 
of public transportation systems and employees of public transportation 
agencies directly responsible for safety oversight. FTA will establish 
an Interim Safety Certification Program, which will be in effect until 
the effective date of the final rule. Recipients may use up to 0.5 
percent of section 5307 and section 5311 funds for up to eighty percent 
of costs of participation in the Safety Certification Training Program 
by an employee of a State safety oversight agency or a recipient who is 
directly responsible for safety oversight. Additionally, States that 
receive formula funds under section 5329(e)(6)(B) to develop or carry 
out State Safety Oversight (SSO) programs may use those formula funds, 
for up to eighty percent of the cost, for employee training activities, 
including for the Safety Certification Training Program.
State Safety Oversight (SSO) Program
    Section 5329 requires States with rail fixed guideway public 
transportation systems that are either operating or in the engineering 
or construction phase of development which are not subject to 
regulation by the Federal Railroad Administration (FRA), to establish 
SSO programs which assume responsibility for overseeing public 
transportation rail systems and which establish a SSO agency. SSO 
agencies must be legally and financially independent from the rail 
systems they oversee, and have the authority, staff training, and 
expertise to enforce Federal and State safety laws. FTA must certify 
each SSO program. FTA will oversee implementation of the SSO programs 
and audit each SSO agency at least triennially. Federal and State 
employees, or other designated personnel, who conduct safety audits and 
examinations of public transportation systems and employees of public 
transportation agencies directly responsible for safety oversight must 
complete the Safety Certification Training Program identified in 
section 5329.
    As mentioned in section IV.C.6 in this notice, under MAP-21 there 
is a 0.5 percent take-down from the section 5307 urbanized area program 
that will be apportioned to States for State Safety Oversight (SSO) 
program activities. These funds will be apportioned by formula to 
States with rail fixed guideway public transportation systems that are 
either operating or in the engineering or construction phase of 
development, and which are not subject to regulation by the Federal 
Railroad Administration (FRA) to develop or carry out State safety 
oversight programs. FTA is currently developing the formula by which 
these funds will be apportioned.
    For more information about the Public Transportation Safety 
Program, contact Ronald Keele, Office of Safety and Security, at 
(202)366-5615 or Ronald.keele@dot.gov.

P. State of Good Repair Program (49 U.S.C. 5337)

    The State of Good Repair program provides capital assistance for 
replacement and rehabilitation projects of existing fixed guideway 
systems to maintain a state of good repair. This program provides 
funding for the following transit modes: Rapid rail (heavy rail), 
commuter rail, light rail, hybrid rail, monorail, automated guideway, 
trolleybus (using overhead catenary), aerial tramway, cable car, 
inclined plane (funicular), passenger ferries, and bus rapid transit. 
Fixed-route bus services operating on high-occupancy-vehicle (HOV) 
facilities are also funded through a separate tier of this formula. 
Funding is limited to the above fixed guideway systems.
    This program replaces and modifies elements of the fixed guideway 
modernization program (section 5309). Most notably, recipients should 
be aware that ``modernization'' activities no longer are eligible and 
the SGR program only funds projects to replace or rehabilitate existing 
fixed guideway systems.
    For more information about the State of Good Repair program, 
contact Eric Hu, Office of Transit Programs, at (202) 366-0870 or 
eric.hu@dot.gov.
1. Authorized Amounts
    MAP-21 authorizes $2,136,300,000 for FY 2013 and $2,165,900,000 for 
FY 2014 for the State of Good Repair program.

[[Page 63698]]



------------------------------------------------------------------------
            Fiscal year                    2013               2014
------------------------------------------------------------------------
Funds Authorized..................    $2,136,300,000     $2,165,900,000
------------------------------------------------------------------------

2. FY 2013 Funding Availability
    Under the continuing resolution, a total of $1,034,944,372 is 
available for the State of Good Repair program for the period October 
1, 2012 through March 27, 2013. After a one percent oversight takedown, 
the total amount allocated for the State of Good Repair program is 
$1,021,160,042, as shown in the table below.

               State of Good Repair Program--FY 2013 (CR)
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation...................................               \a\
                                                          $1,034,944,372
Oversight Deductions..................................        -7,495,038
                                                       -----------------
    Total Apportioned.................................    $1,021,160,042
------------------------------------------------------------------------
\a\ Total Appropriation includes $1,005,454,331 for the High Intensity
  Fixed Guideway Formula and $29,490,041 for the High Intensity Motorbus
  Formula.

    Table 15 shows the FY 2013 State of Good Repair Program formula 
apportionments to eligible urbanized areas.
3. Basis for Formula Apportionment
    FTA allocates State of Good Repair program funds according to a 
statutory formula. Funds are apportioned to urbanized areas with fixed 
guideway systems that have been in operation for at least seven years. 
This means that only segments of fixed guideway systems that entered 
into revenue service on or before September 30, 2005 are included in 
the formula, as identified in the NTD. The new formula comprises: (1) 
Modified formula from what was used under SAFETEA-LU, which reflects 
the new definition of fixed guideway; (2) a new service-based formula; 
and (3) a new formula for buses on HOV lanes.
    The law requires that 97.15 percent of the total amount authorized 
for the State of Good Repair program be apportioned to urbanized areas 
with ``High Intensity Fixed Guideway'' systems. The apportionments to 
urbanized areas with ``High Intensity Fixed Guideway'' systems are 
determined by two equal elements: (1) The proportion of the amount an 
urbanized area received in FY 2011 to the total amount apportioned to 
all urbanized areas in FY 2011; (2) the proportion of vehicle revenue 
miles of an urbanized area to the total vehicle revenue miles of all 
urbanized areas and the proportion of directional route miles of an 
urbanized area to the total directional route miles of all urbanized 
areas. High Intensity Motorbus systems will receive the remaining 2.85 
percent of the total amount authorized for the State of Good Repair 
program, and the apportionments to urbanized areas are based on vehicle 
revenue miles and directional route miles.
    Vehicle revenue miles and directional route miles that are 
attributable to an urbanized area must be placed in revenue service at 
least 7 years before the first day of the fiscal year. A threshold 
level of more than one mile of fixed guideway is required in order to 
receive State of Good Repair funds. Therefore, urbanized areas 
reporting one mile or less of fixed guideway mileage under the NTD are 
not included.
    FTA will apportion funds to Designated Recipients in the UZAs (see 
section IV.D.4. of this notice for more information about Designated 
Recipients; FTA will apportion section 5339 funds to the section 5307 
Designated Recipient for the UZA) with fixed guideway transportation 
systems operating at least 7 years. The Designated Recipients will then 
allocate funds as appropriate to recipients that are public entities in 
the urbanized areas and provide split letters to the FTA. FTA can make 
grants to direct recipients after sub-allocation of funds.
4. Eligible Expenses
    While funds are apportioned based only on fixed guideway segments 
that have been in operation seven years or longer, a recipient may use 
the funds apportioned to it for eligible replacement and rehabilitation 
projects on any existing fixed guideway system in the urbanized area.
    Eligible capital projects are those necessary to maintain fixed 
guideway systems in a state of good repair, including projects to 
replace and rehabilitate:
    i. Rolling stock;
    ii. Track;
    iii. Line equipment and structures;
    iv. Signals and communications;
    v. Power equipment and substations;
    vi. Passenger stations and terminals;
    vii. Security equipment and systems;
    viii. Maintenance facilities and equipment;
    ix. Operational support equipment, including computer hardware and 
software;
    x. Development and implementation of a transit asset management 
plan; and
    xi. Other replacement and rehabilitation projects FTA determines 
appropriate.
    Although not explicitly listed above, preventive maintenance 
activities are eligible. However, modernization or expansion projects 
are not eligible under this program.
5. Requirements
    For FY 2013, FTA will rely on program guidance and requirements 
found in the FTA circular formerly used for the Fixed Guideway 
Modernization Program: FTA Circular 9300.1B, Capital Investment Program 
Guidance and Application Instructions, dated November 1, 2008. FTA is 
in the process of updating the program circular to incorporate changes 
resulting from MAP-21.
    In addition to this program guidance, all recipients must certify 
that they will comply with the forthcoming rule issued under section 
5326 for the Transit Asset Management plan, and state of good repair 
projects must be included in recipients' Transit Asset Management 
plans. This requirement is subject to FTA rulemaking and will become 
effective only after the rule is issued
6. Period of Availability
    The State of Good Repair Program funds apportioned in this notice 
are available for obligation during FY 2013 plus three additional 
years. Accordingly, funds apportioned in FY 2013 must be obligated in 
grants by September 30, 2016. Any FY 2013 apportioned funds that remain 
unobligated at the close of business on September 30, 2016 will revert 
to FTA for reapportionment under the State of Good Repair Program.

Q. Bus and Bus Facilities Formula Grants (49 U.S.C. 5339)

    MAP-21 establishes the Bus and Bus Facilities Formula program, 
replacing some of the elements of the former Bus and Bus Facilities 
discretionary program under SAFETEA-LU. The program provides funding to 
replace, rehabilitate, and purchase buses and related equipment well as 
construct bus-related facilities.
    Eligible recipients are Designated Recipients and States that 
operate or allocate funding to fixed-route bus operators. Eligible 
subrecipients include public agencies or private nonprofit 
organizations engaged in public

[[Page 63699]]

transportation, including those providing services open to a segment of 
the general public, as defined by age, disability, or low income. For 
more information about the Bus and Bus Facilities program, contact Sam 
Snead, Office of Transit Programs, at (202) 366-1089 or 
samuel.snead@dot.gov.
1. Authorized Amounts
    MAP-21 authorizes $422,000,000 for FY 2013 and $427,800,000 for FY 
2014 for the Bus and Bus Facilities formula program, as shown below.

------------------------------------------------------------------------
              Fiscal year                     2013             2014
------------------------------------------------------------------------
Funds Authorized......................    $422,000,000     $427,800,000
------------------------------------------------------------------------

2. FY 2013 Funding Availability
    Under the continuing resolution, a total of $203,458,262 is 
available for the Bus and Bus Facilities program for the period October 
1, 2012 through March 27, 2013. After the take-down for the States and 
Territories (National Distribution), $171,659,195 is available to be 
apportioned to the urbanized areas, as shown below.

                  Bus and Bus Facilities--FY 2013 (CR)
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.....................................    $203,198,262
State and Territory Allocation..........................     -31,539,067
                                                         ---------------
Total Apportioned.......................................    $171,659,195
------------------------------------------------------------------------

    Table 17 shows the FY 2013 Bus and Bus Facilities formula 
apportionments to States, Territories, and urbanized areas.
3. Basis for Formula Apportionment
    Funds are allocated according to a statutory formula. However, 
State and Territories (including the District of Columbia and Puerto 
Rico) receive a fixed allocation before applying the formula. Under the 
continuing resolution and the National Distribution allocation, the 
amount that each State receives is $601,891 and the amount each 
territory receives $240,756. The remainder of the funds will be 
allocated to urbanized areas based on population, vehicle revenue miles 
and passenger miles.
    For areas under 200,000 in population, the funding is similar to 
the section 5307 Governor's Apportionment, in that the Governor or 
Governor's designee (e.g. State DOT) will determine the final amounts 
available to urbanized areas under 200,000. The Governor or Governor's 
designee also will have to apply for the funding on behalf of 
recipients that are otherwise able to directly apply to FTA (e.g. 
grantees under section 5307) in urbanized areas under 200,000 in 
population.
4. Requirements
    The requirements of Section 5307 apply to recipients of grants made 
under this section. Eligible capital projects include projects to 
replace, rehabilitate, and purchase buses and related equipment, and 
projects to construct bus-related facilities. This includes the 
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, 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.
    Program guidance for the Bus program is found in FTA Circular 
9300.1B, Bus and Bus Facilities Instructions. FTA is in the process of 
updating this circular to incorporate changes resulting from language 
in MAP-21 and will go out for notice and comment during the circular 
revision process.
    A grant for a capital project under this section shall be for 80 
percent of the net capital costs of the project. A recipient of a grant 
under this section may provide additional local matching amounts. The 
remainder of net project cost shall be provided in cash from non-
Government sources other than revenues from providing public 
transportation services; from revenues derived from the sale of 
advertisement or concessions; from undistributed cash surplus, a 
replacement or depreciation cash fund or reserve, or new capital; or 
from amounts received under a service agreement with a State or local 
social service agency or private social service organization.
5. Period of Availability
    The Bus and Bus Facilities Formula Program funds apportioned in 
this notice are available for obligation during FY 2013 plus three 
additional years. Accordingly, funds apportioned in FY 2013 must be 
obligated in grants by September 30, 2016. Any FY 2013 apportioned 
funds that remain unobligated at the close of business on September 30, 
2016 will revert to FTA for reapportionment under the Bus and Bus 
Facilities Formula Program.
6. Other Program Information
    Based on the language in MAP-21, FTA will only award grants under 
this section to the Designated Recipients in the large urbanized areas 
(section 5307 Designated Recipients) and States for the apportionments 
to areas under 200,000 and for the National Distribution amounts. 
Designated Recipients and States will be required to apply on behalf of 
eligible subrecipients.
    The Governor of a State may transfer any part of the State's 
apportionment under subsection (d)(1) ``National Distribution'' to 
supplement amounts apportioned to the State under the rural areas 
(section 5311) or urbanized areas formula (5307) programs. The funds 
must continue to be used for capital only and for eligible purposes 
under this section. The Governor (or his or her designee) has 
flexibility in the sub-allocation of funds among the small UZAs and is 
not bound by the small UZA amounts published in this notice.

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

    MAP-21 continues the use of formula factors (established under 
SAFETEA-LU) to distribute additional funds to the section 5307 and 
section 5311 programs for Growing States and High Density States. FTA 
will continue to publish single urbanized and rural apportionments that 
show the total amount for 5307 and 5311 programs that includes 
apportionments these programs formulas together with 5340.
1. Authorized Amounts
    MAP-21 authorizes $518,700,000 for FY 2013 and $525,900,000 for FY 
2014 for the Growing States and High Density States Formula factors, as 
shown below.

------------------------------------------------------------------------
              Fiscal year                     2013             2014
------------------------------------------------------------------------
Funds Authorized......................    $518,700,000     $525,900,000
------------------------------------------------------------------------

2. FY 2013 Funding Availability
    Under the continuing resolution, $251,281,438 is available for 
apportionment in accordance with the formula factors prescribed for 
Growing States and High Density States set forth in section 5340 for 
the period October 1, 2012 through March 27, 2013. MAP-21 did not 
change the funding formula.

  Growing States and High Density States Formula Factors--FY 2013 (CR)
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.....................................    $249,760,258
Total Apportioned.......................................     249,760,258
------------------------------------------------------------------------


[[Page 63700]]

3. Basis for Apportionment
    Under the Growing States portion of the section 5340 formula, 50 
percent of funds are allocated to States on the basis of their 
projected population growth. FTA projects each State's 2025 population 
by comparing each State's apportionment year population (as determined 
by the Census Bureau) to the State's 2010 Census population and 
extrapolating to 2025 based on each State's rate of population growth 
between 2010 and the apportionment year. Each State receives a share of 
Growing States funds on the basis of its projected 2025 population 
relative to the nationwide projected 2025 population.
    Once each State's share is calculated, funds attributable to that 
State are divided into an urbanized area allocation and a non-urbanized 
are a allocation on the basis of the percentage of each State's 2010 
Census population that resides in urbanized and non-urbanized areas. 
Urbanized areas receive portions of their State's urbanized area 
allocation on the basis of the 2010 Census population in that urbanized 
area relative to the total 2010 Census population in all urbanized 
areas in the State. These amounts are added to the Urbanized Area's 
section 5307 apportionment.
    The States' rural area allocation is added to the allocation that 
each State receives under the section 5311 Formula Grants for Rural 
Areas program.
    The remaining 50 percent of the section 5340 funds are allocated 
under the High Density States portion of the section 5340 formula. 
These funds are allocated to urbanized areas in States with a 
population density equal to or greater than 370 persons per square 
mile. Based on this threshold and 2010 Census data, the States that 
qualify are Maryland, Delaware, Massachusetts, Connecticut, Rhode 
Island, New York and New Jersey (these are the same States that 
qualified under SAFETEA-LU and based on 2000 Census data). The amount 
of funds provided to each of these seven States is allocated on the 
basis of the population density of the individual State relative to the 
population density of all seven States. Once funds are allocated to 
each State, funds are then allocated to urbanized areas within the 
States on the basis of an individual urbanized area's population 
relative to the population of all urbanized areas in that State.
    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.

S. Washington Metropolitan Area Transit Authority Grants

    Under the continuing resolution, $73,602,709 is available for the 
period October 1, 2012 through March 27, 2013 for grants to the 
Washington Metropolitan Area 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 2013 Grants

A. Automatic Pre-Award Authority To Incur Project Costs

    This section includes some changes to automatic pre-award authority 
published in previous notices, particularly in light of the new 
authorization and several new formula programs, some of which will 
require new Designated Recipients before projects costs can be 
reimbursed.
1. Caution to New Grantees and for New Formula Programs
    While FTA provides pre-award authority to incur expenses before 
grant award for formula programs, it recommends that first-time grant 
recipients and recipients of grants under new formula programs NOT 
utilize this automatic pre-award authority without verifying with the 
appropriate FTA Regional office that all prerequisite requirements have 
been met. 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.
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 this 
notice, FTA provides pre-award authority through the authorization 
period of MAP-21 (FY 2014) for capital assistance under all formula 
programs, so long as the conditions described below are met. FTA 
provides pre-award authority for planning and operating assistance 
under the formula programs without regard to the period of the 
authorization. All pre-award authority is subject to conditions and 
triggers stated below:
    i. Operating, Planning, or Administrative Assistance. 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 5310 project must have been included in a coordinated public 
transit-human services transportation plan (coordinated plan) and 
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 Section 
5310 have pre-award authority for the ten percent of

[[Page 63701]]

the apportionment they may use for program administration.
    ii. Transit Capital Projects. For transit capital projects, the 
date that costs may be incurred is: (1) For design and environmental 
review, the date of the authorization of formula funds or the date of 
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. New Starts, Small Starts and Core Capacity Projects. The 
pre-award authority described above does not apply to Section 5309 
Fixed Guideway Capital Investment Program (New and Small Starts and 
Core Capacity) projects. 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 program 
projects when pre-award authority has not been granted 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 in section 4. below.
    iii. Research, Technical Assistance, and Training. Unless provided 
for in an announcement of project selections, pre-award authority does 
not apply to section 5312 Research, development, demonstration, and 
deployment projects, section 5314 Technical Assistance and Standards 
Development, or section 5322 Human Resources and Training. Before an 
applicant may incur costs for activities under these 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 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 find compliance with Federal planning and 
environmental laws increasingly challenging.
    FTA has 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. Following authorization of formula funds or appropriation and 
publication of earmarked projects or the announcement of project 
allocations, 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.
    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 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, and historic properties) must be 
completed before State or local funds are spent on implementation 
activities, such as site preparation, construction, and acquisition, 
for a project that is expected to be subsequently funded with FTA 
funds. The grantee may not advance the project beyond planning and 
preliminary design/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. 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

[[Page 63702]]

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. All program specific requirements must be met. For example, 
projects under section 5310 must comply with specific program 
requirements, including coordinated planning.
    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 for questions on environmental 
requirements, or any other Federal requirements that must be met.
4. Pre-Award Authority for the Fixed Guideway Capital Investment 
Program (New and Small Starts Projects and Core Capacity Projects)
    Projects proposed for Section 5309 capital investment program funds 
(New and Small Starts and Core Capacity) are required to follow a 
process defined in law. For New Starts and Core Capacity projects, this 
process includes three phases--project development (PD), engineering, 
and construction. For Small Starts projects, this process includes two 
phases--project development and construction. After receiving a letter 
from the project sponsor requesting entry into the project development 
phase, FTA must respond in writing within 45 days whether the 
information was sufficient for entry. If FTA's correspondence indicates 
the information was sufficient and the New Starts, Small Starts or Core 
Capacity project may enter PD, FTA extends pre-award authority to the 
project sponsor to incur costs for PD activities. PD activities include 
the work necessary to complete the environmental review process and as 
much engineering and design activities as the project sponsor believes 
are necessary to support the environmental review process. Upon 
completion of the environmental review process for a New Starts, Small 
Starts, or Core Capacity Improvement project with a ROD, FONSI, or CE 
determination by FTA, FTA extends pre-award authority to project 
sponsors in PD to incur costs for as much engineering and design need 
to develop a reasonable cost estimate and financial plan for the 
project, utility relocation, and real property acquisition and 
associated relocations, for any property acquisitions not already 
accomplished as a separate project for hardship or protective purposes 
or right-of-way under 49 U.S.C. 5323(q). Upon receipt of a letter 
notifying a New Starts or Core Capacity project sponsor of the 
project's approval into the engineering phase, FTA extends pre-award 
authority for any remaining engineering and design, demolition, vehicle 
purchases, and procurement of long lead items for which market 
conditions play a significant role in the acquisition price. The long 
lead items include, but are 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. FTA provides this pre-award 
authority in recognition of the long-lead time and complexity involved 
with purchasing vehicles as well as their relationship to the 
``critical path'' project schedule. FTA cautions grantees that do not 
currently operate the type of vehicle proposed in the project about 
exercising this pre-award authority. FTA encourages these sponsors to 
wait until later in the process when project plans are more fully 
developed. 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. Because there is 
not a formal engineering phase for Small Starts projects, FTA does not 
extend pre-award authority for demolition, vehicle purchases and 
procurement of long lead items. Instead, this work must await receipt 
of a grant award or an expedited grant agreement.
i. Real Property Acquisition
    As noticed above, FTA extends pre-award authority for the 
acquisition of real property and real property rights for fixed 
guideway capital investment projects (New or Small Starts or Core 
Capacity) upon completion of the environmental review process for that 
project. The environmental review 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 may commence, at the project sponsor's risk. 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 the environmental 
review process 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). Pre-award authority for 
property acquisition is also provided when FTA completes the 
environmental review process for the acquisition of right-of-way as a 
separate project in accordance with 49 U.S.C. 5323(q). Guidance on this 
approach to property acquisition will be forthcoming. When a tiered 
environmental review in accordance with 23 CFR 771.111(g) is 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 with a clear 
understanding that it does not constitute a funding commitment by FTA. 
FTA provides pre-award authority upon completion of the environmental 
review process for real property acquisition and 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 URA, but also with

[[Page 63703]]

maximum sensitivity to the circumstances of the people so affected.
i. Reimbursement of Costs Incurred Under Pre-Award Authority
    Although FTA provides pre-award authority for property acquisition, 
long lead items, and vehicle purchases upon completion of the 
environmental review process, FTA will not make a grant to reimburse 
the sponsor for real estate activities, vehicle purchases or purchases 
of long lead items conducted under pre-award authority until the 
project receives its construction grant. This is to ensure that Federal 
funds are not risked on a project whose advancement into construction 
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 earlier of the 
following two dates: (1) 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; or (2) the date that FTA approves 
the project into project development. 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 associated engineering, and to 
prepare environmental, historic preservation and related documents. 
When a New Starts, Small Starts, or Core Capacity project is granted 
pre-award authority for the environmental review process, the 
reimbursement for NEPA activities conducted under pre-award authority 
may be sought at any time through Section 5307 (Urbanized Area Formula 
Program), Section 5309, or the flexible highway programs (STP and 
CMAQ). As with any pre-award authority, FTA reimbursement for costs 
incurred is not guaranteed.
iv. Other New and Small Starts and Core Capacity Project Activities 
Requiring Letter of No Prejudice (LONP).
    Except as discussed in paragraphs i through iii above, a major 
capital investment project sponsor must obtain a written LONP from FTA 
before incurring costs for any activity. 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 or Small Starts or Core Capacity) projects 
undertaking activities not covered under automatic pre-award authority. 
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 in the LONP.
2. Conditions and Federal Requirements
    The conditions and requirements for pre-award authority specified 
in section V.A.2 and V.A.3. above apply to all LONPs. Because project 
implementation activities may not be initiated before completion of the 
environmental review process, FTA will not issue an LONP for such 
activities until the environmental review process has been completed 
with a ROD, FONSI, or CE determination.
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 is determined on a case-by-
case basis. Receipt of Federal funding under the capital investment 
program is not implied or guaranteed by an LONP.

C. FY 2013 Annual List of Certifications and Assurances

    The full text of the FY 2013 Certifications and Assurances will be 
published in the Federal Register in the near future and will be made 
available on the FTA Web site and in TEAM-Web. The FY 2013 
Certifications and Assurances must be used for all grants and 
cooperative agreements awarded in FY 2013. All recipients with active 
projects will be required to sign the FY 2013 Certifications and 
Assurances within 90 days after publication.

D. Civil Rights Requirements

    On August 28, 2012, the Office of Civil Rights published in the 
Federal Register a revised Title VI Circular (4702.1B), which made 
extensive clarifications and refinements to the requirements all FTA 
grantees must meet as recipients of Federal transit funds. In order to 
facilitate the orderly transition from the old Title VI Circular 
(4702.1A) to the revised Title VI Circular (4702.1B), FTA has set out a 
schedule for submitting programs to FTA that conform to the revised 
Circular requirements. The chart below sets out for grantees when they 
should upload their updated Title VI program into TEAM-Web. Further, 
FTA now requires that all updated Title VI programs be submitted in 
TEAM-Web sixty (60) days in advance of the program's expiration date. 
Previously FTA requested this submission 30 days in advance of the 
expiration date. FTA believes that sixty days will allow for review and 
the ability to provide technical assistance, if needed, well in advance 
of the expiration date. Please note that grantees who fail to submit a 
Title VI program for which FTA can concur will jeopardize their ability 
to receive Federal funds or FTA grants. FTA has developed an overall 
schedule as follows:

[[Page 63704]]



----------------------------------------------------------------------------------------------------------------
               Due to FTA                              Includes programs that will expire between:
----------------------------------------------------------------------------------------------------------------
April 1, 2013..........................  Oct 1, 2012 through May 31, 2013.
June 1, 2013...........................  June 1, 2013 through July 31, 2013.
October 1, 2013........................  August 1, 2013 through November 30, 2013.
December 1, 2013.......................  December 1, 2013 through January 31, 2014.
February 1, 2014.......................   February 1, 2014 through March 31, 2014.
April 1, 2014..........................  April 1, 2014 through May 31, 2014.
June 1, 2014...........................  June 1, 2014 through July 31, 2014.
October 1, 2014........................  August 1, 2014 through November 30, 2014.
December 1, 2014.......................  December 1, 2014 through January 31, 2015.
April 1, 2015..........................  February 1, 2015 through May 31, 2015.
June 1, 2015...........................  June 1, 2015 through July 31, 2015.
October 1, 2015........................  August 1, 2015 through November 30, 2015.
----------------------------------------------------------------------------------------------------------------

    FTA has posted a spreadsheet on its Web site that identifies each 
grantee and their respective due dates and expiration dates for their 
next Title VI submission.
    Please note that programs expiring after October 1, 2012, have 
almost seven months to come into compliance with the revised Title VI 
Circular requirements. FTA reserves the right to adjust individual due 
dates for any grantee to ensure even workload distribution. Should you 
have questions about the above process and schedule, please do not 
hesitate to contact your Regional Civil Rights Officer (RCRO). A 
current RCRO contact list is as follows:

 Region 1_Peggy.Griffin@dot.gov
Region 2_Aaron.Meyers@dot.gov
Region 3_Michael.Riess@dot.gov
Region 4_Carlos.Gonzalez@dot.gov
Region 5_Felisha.Phillips@dot.gov
Region 6_Aida.Douglas@dot.gov
Region 7_Rebecca.Rand@dot.gov
Region 8_Rebecca.Tanrath@dot.gov
Region 9_Derrin.Jourdan@dot.gov
Region 10_Chris.MacNeith@dot.gov
HQ_Jean.Comedy@dot.gov
Division Chief: Monica.McCallum@dot.gov

    In addition, FTA will hold monthly webinars. The first series of 
webinars on Title VI will start the week of October 8th and continue 
through November and start again in January 2013. Further information 
will be sent to each grantee regarding the training schedule or you may 
check the FTA Office of Civil Rights Web page at: http://www.fta.dot.gov/civil_rights.html.
    Finally, please be aware that on September 6, 2012, the Office of 
the Secretary published a Notice of Proposed Rulemaking (NPRM) 
regarding the Disadvantaged Business Enterprise Program. The comment 
period will close on November 5, 2012. FTA strongly encourages all 
grantees to read this notice and submit comments to the http://www.regulations.gov. The docket number for the NPRM is OST-2012-0147.

E. Consolidated Planning Grants (CPG)

    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, 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.
    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 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.

F. Grant Application Procedures

    During FY 2013, FTA grantees may be making grants for both SAFETEA-
LU authorized program funds (carryover balances) and MAP-21 authorized 
program funds. There may be different requirements depending on the 
program and the year of funds and different eligibility depending on 
the program. As such, it is critical that grantees work closely with 
the regional and metro office staff to plan and develop their grant 
portfolio for FY 2013.
    All applications for FTA funds should be submitted to the 
appropriate FTA regional office. FTA utilizes TEAM-Web, an Internet-
accessible electronic grant application system, and all applications 
are filed electronically.
    FTA regional staff is responsible for working with grantees to 
review and process grant applications. In order for an application to 
be considered complete and for FTA to assign a grant number, enabling 
submission in TEAM-Web and submitted to Department of Labor (when 
applicable), the following requirements must be met:
     The recipient's contact information, including Dun and 
Bradstreet Data Universal Numbering System (DUNS), is correct and up-
to-date.
     Recipient has properly submitted its annual certifications 
and assurances.
     Recipient's Civil Rights submissions are current and 
approved.
     Documentation is on file to support recipient's status as 
either a designated recipient (for the program and area) or a direct 
recipient.
     Funding is available, including any flexible funds 
included in the budget, and split letters or suballocation letters on 
file (where applicable) to support amount being applied for in grant 
application.
     The project is listed in a currently approved 
Transportation Improvement Program (TIP); Statewide Transportation 
Improvement Program (STIP), or Unified Planning Work Program (UPWP).
     All eligibility issues are resolved.
     Required environmental findings are made.
     The project budget's Activity Line Items (ALI), scope, and 
project description meet FTA requirements.
     Local share funding source(s) is identified.
     For projects involving new construction (using at least 
$100 million in New Starts or formula funds), FTA has reviewed the 
project management plan and given approval.

[[Page 63705]]

     Milestone information is complete, or FTA determines that 
milestone information can be finalized before the grant is ready for 
award. FTA will also review status of other open grants' reports to 
confirm financial and milestone information is current on other open 
grants and projects.
    Before FTA can award grants for discretionary projects and 
activities, notification must be given to members of Congress, and in 
the case of awards greater than $1 million, to the House and Senate 
authorizing and appropriations committees.
    Other important issues that impact FTA grant processing activities 
are discussed below.
1. Combining Program Funds in a Grant
    FTA has updated its internal budgeting rules and systems of funds 
controls to reflect program changes made in MAP-21. Because MAP-21 
consolidated several programs and replaced some programs with new 
formulas or created new formula programs, there will be some instances 
where SAFETEA-LU program funds cannot be combined in a grant with MAP-
21 program funds. Specifically, where a program was repealed and 
replacement activities are eligible in a new program in a new section 
of statute, the grantee will be required to develop a separate grant 
for the MAP-21 program. For example, section 5309 Bus and Bus 
Facilities funds (SAFETEA-LU) cannot be combined with section 5339 Bus 
and Bus Facilities funds (MAP-21) because of the inherent difference in 
the programs, issues with tracking the discretionary program funds, and 
the process for notifying Congress when the funds are being obligated.
    Additionally, program funds from different sections of statute 
cannot be combined with each other, unless, there is a specific 
transfer provision in MAP-21 for the program. Separate grants are 
required for each program, with the exception of section 5339, which 
permits transferring the funds to sections 5307 or 5311 so long as they 
continue to be used for eligible capital purposes under section 5339. 
FTA will issue grant making guidance for requesting these types of 
administrative transfers.
2. Grant Budgets--SCOPE and ALI Codes
    FTA uses the SCOPE and Activity Line Item (ALI) Codes in the grant 
budgets to track program trends, to report to Congress, and to respond 
to requests from the Inspector General and the Government 
Accountability Office (GAO), as well as to manage grants. The accuracy 
of the data is dependent on the careful and correct use of codes. FTA 
is in the process of revising the SCOPE and ALI table to include new 
codes for the newly eligible capital items, to better track certain 
expenditures, and to accommodate the new programs. FTA encourages 
grantees to review the table before selecting codes from the drop-down 
menus in TEAM-Web while creating a grant budget. Additional information 
about how to use the SCOPE and ALI codes to accurately code budgets 
will be added to the resources available through TEAM-Web.
    Under sections 5307 and 5311, FTA will continue to use the SCOPE 
established for job access and reverse projects (646-00) in order to 
track the use of these program funds for this eligible purpose. 
Additional codes may be developed as needed.
3. Designated and Direct Recipients, Documentation and Supplemental 
Agreements
    For its formula programs, FTA primarily apportions funds to the 
Designated Recipient in the large urbanized areas (areas over 200,000), 
or for areas under 200,000, it apportions the funds to the Governor, or 
its designee (e.g. State DOT). Depending on the program and as 
described in the individual program sections found in section IV of 
this notice, further suballocation of funds may be permitted to 
eligible recipients who can then apply directly to FTA for the funding 
(``direct recipients''), so long as the required documentation is on 
file. However, there are certain programs under MAP-21 whereby FTA will 
only award grants to the designated recipients for the area or program. 
These include sections 5310 and 5339.
    For the programs in which FTA can make grants to eligible direct 
recipients, other than the Designated Recipient(s), recipients are 
reminded that documentation must be on file to support the (1) status 
of the recipient either as a Designated Recipient or direct recipient; 
and (2) the allocation of funds to the direct recipient. Additionally, 
FTA requires a supplemental agreement to be pinned to the grant in 
TEAM-Web prior to grant execution. The supplemental agreement is 
required when the recipient of the funds is not the Designated 
Recipient. It permits the grant recipient (e.g. direct recipient) to 
receive and dispense the Federal funds and sets forth that the grant 
recipient is assuming all responsibilities of the grant agreement.
    Under MAP-21, with the exception of the new urbanized areas 
resulting from the 2010 census under the section 5307 program, the only 
program for which NEW designations are needed in the large urbanized 
areas before a grant can be made is Section 5310. Before the first 
grant application in a large urbanized area under section 5310 is 
submitted to FTA, the Governor must designate an agency charged with 
administering the Enhanced Mobility of Seniors and Individuals with 
Disabilities funds. This designation must be on file with the Regional 
office prior to the award of any Section 5310 grants in large urbanized 
areas.
    For all other programs, documentation to support existing 
designated recipients for the urbanized area must also be on file at 
the time of the first application in FY 2013. Further, split letters 
and/or suballocation letters (Governor's Apportionment letters), must 
also be on file to support grant applications from direct recipients.
4. Payments
    Once a grant has been awarded and executed, requests for payment 
can be processed. To process payments FTA uses ECHO-Web, an Internet 
accessible system that provides grantees the capability to submit 
payment requests on-line, as well as receive user-IDs and passwords via 
email. New applicants should contact the appropriate FTA regional 
office to obtain and submit the registration package necessary for set-
up under ECHO-Web.
5. Oversight
    FTA is responsible for conducting oversight activities to help 
ensure that grants recipients use FTA federal financial assistance in a 
manner consistent with their intended purpose and in compliance with 
regulatory and statutory requirements. FTA conducts periodic oversight 
reviews to assess grantee compliance with applicable Federal 
requirements. Each Urbanized Area Formula Program recipient is reviewed 
every three years, (also known as FTA's Triennial Review); and States 
and state-wide public transportation agencies are reviewed periodically 
to assess the management practices and program implementation of FTA 
state-wide programs (e.g. Planning, Rural Areas, Enhanced Mobility of 
Seniors and Individuals with Disabilities Programs). Other more 
detailed reviews are scheduled based on an annual grantee oversight 
assessment. Important objectives of FTA's oversight program include, 
but are not limited to: Determining grantee compliance with Federal 
requirements; identifying technical assistance needs, and delivering 
technical assistance to meet those needs; spotting emerging issues

[[Page 63706]]

with grantees in a forward-looking fashion; recognizing when there is a 
need for more in-depth reviews in the areas of procurement, financial 
management, and civil rights; and identifying grantees with recurring 
or systemic issues. FTA will develop appropriate oversight procedures 
for the new programs authorized by MAP-21.
6. Technical Assistance
    As noted throughout the notice, FTA continues to rely on many of 
the existing program circulars for general program guidance. FTA will 
be updating the program circulars, with an opportunity for notice and 
comment, to reflect changes under MAP-21. In the meantime, if you have 
any questions, please do not hesitate to contact FTA. 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. At its discretion, FTA may also use 
program oversight consultants to provide technical assistance to 
grantees on a case by case basis. 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.

G. Grant Management

    Recipients of FTA funds are reminded that all FTA grantees require 
some level of grant reporting and that it is critical to ensure reports 
demonstrate reasonable progress is being made on the project. At a 
minimum, all grants require a Federal Financial Report (FFR) and a 
Milestone Progress Report (MPR) on an annual basis, with some reports 
required quarterly depending on the recipient and the type of projects 
funded under the grant. The requirements for these reports and other 
reporting requirements can be found in FTA Circular 5010.1D, Grant 
Management Requirements, dated November 1, 2008. FTA staff, auditors, 
and contractors rely on the information provided in the FFR and MPR to 
review and report on the status of both financial and project-level 
activities contained in the grant. It is critical that recipients 
provide accurate and complete information in these reports and submit 
them by the required due date. Failure to report and/or demonstrate 
reasonable progress on projects can result in suspension or close-out 
of a grant.
    In FY 2013, FTA will continue to focus on inactive grants and 
grants that do not comply with reporting requirements and, if 
appropriate, will take action to close out and deobligate funds from 
these grants if reasonable progress is not being made. The efficient 
use of funds will further FTA's fulfillment of its mission to provide 
efficient and effective public transportation systems for the nation.

    Issued in Washington, DC, this 9th day of October, 2012.
Peter Rogoff,
Administrator.
[FR Doc. 2012-25152 Filed 10-15-12; 8:45 am]
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