[Federal Register Volume 79, Number 46 (Monday, March 10, 2014)]
[Notices]
[Pages 13461-13489]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-04759]



[[Page 13461]]

Vol. 79

Monday,

No. 46

March 10, 2014

Part III





Department of Transportation





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Federal Transit Administration





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FTA Fiscal Year (FY) 2014 Apportionments, Allocations, and Program 
Information; Notice

Federal Register / Vol. 79, No. 46 / Monday, March 10, 2014 / 
Notices

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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration


FTA Fiscal Year (FY) 2014 Apportionments, Allocations, and 
Program Information

AGENCY: Federal Transit Administration (FTA), DOT.

ACTION: Notice.

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SUMMARY: On January 17, 2014, President Obama signed the Consolidated 
Appropriations Act, 2014, (FY 2014 Appropriations) which provided a 
full fiscal year's funding for Federal Transit Assistance programs. 
Previous continuing resolutions had provided funds through January 18, 
2014. The Federal Transit Administration (FTA) annually publishes one 
or more notices apportioning funds appropriated by law. This notice 
apportions and provides information on the FY 2014 funding available 
for the FTA assistance programs, and provides program guidance and 
requirements, and information on several program issues important in 
the current year. This notice also provides information on FTA's 
discretionary programs and forthcoming program guidance.

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. A list 
of FTA regional offices and contact information is available on the FTA 
Web site under the heading ``Regional Offices'' at http://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.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Overview
II. FY 2014 Available Funding for FTA Programs
    A. Funding Based on the Consolidated Appropriations Act, 2014
    B. Oversight Takedown
    C. FY 2014 Formula Apportionments; Data and Methodology
    D. FY 2014 Discretionary Program Funding
III. FY 2014 Program Highlights and Changes
    A. MAP-21 Implementation
    B. FHWA Congestion Mitigation and Air Quality Funds for 
Operating Assistance
    C. Transitioning to a New Electronic Grant Management System
    D. Flood Insurance
    E. New Common Rule
IV. FY 2014 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 Grant 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)(3))
    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 
(section 601 of Pub. L. 110-432)
V. FTA Policy and Procedures for FY 2014 Grants
    A. Automatic Pre-Award Authority To Incur Project Costs
    B. Letter of No Prejudice (LONP) Policy
    C. FY 2014 Annual List of Certifications and Assurances
    D. Civil Rights
    E. FHWA Flex Funds and Consolidated Planning Grants
    F. Grant Application Procedures
    G. Grant Management

I. Overview

    On October 1, 2012, the Moving Ahead for Progress in the 21st 
Century Act (MAP-21) (Pub. L. 112-141) authorized the Federal Transit 
Administration's (FTA) public transportation assistance programs for 
FYs 2013-2014. A notice announcing changes and implementation 
instructions in FTA programs in accordance with MAP-21 was published in 
the Federal Register on October 16, 2012. (See 77 FR 63669). On January 
17, 2014, the FY 2014 Appropriations Act (Pub. L. 113-76) was signed 
into law, providing a full fiscal year of funding for FTA's programs as 
authorized by MAP-21. Prior to January 17, 2014, Congress provided 
partial funding for FY 2014 through continuing resolutions (Pub. L. 
113-46 and Pub. L. 113-73). This notice apportions formula funds based 
on the Appropriations Act, 2014. In addition, this notice provides 
funding information for FTA's FY 2014 discretionary programs, including 
the FY 2014 Capital Investment Grant (CIG) Program allocations and 
prior year discretionary programs and their unobligated balances. 
Finally, this notice provides program information, including the status 
of MAP-21 implementation for many of the grant programs.
    Consistent with the budget authority provided in MAP-21, for FTA's 
formula programs, the FY 2014 Appropriations provides an obligation 
limitation of $8.595 billion in FY 2014. The FY 2014 Appropriations 
also provides $150 million in FY 2014 for grants to the Washington 
Metropolitan Area Transportation Authority; $1.943 billion for the 
Capital Investment Grant Program; and $48 million for the Research, 
Technical Assistance and Training Programs.

II. FY 2014 Available Funding for FTA Programs

A. Funding Based on the Consolidated Appropriations Act, 2014

    The FY 2014 Appropriations Act provides $ 10.841 billion for FTA 
programs and administrative expenses in FY 2014, of which $8.595 
billion is derived from the Mass Transit Account of the Highway Trust 
Fund and is available for formula programs. This is in addition to over 
$7 billion in formula funds that remain unobligated from prior fiscal 
years. The FY 2014 Appropriations Act also provides $93.269 million in 
FY 1999 through 2010 unobligated discretionary bus and bus facilities 
funds for new bus rapid transit projects recommend in the President's 
FY 2014 budget submission to Congress provided that such funds are 
subject to the Capital Investment Grant (CIG) Program requirements 
under 49 U.S.C. 5309, and permits unobligated and recovered FY 2010 
through 2012 funds for 49 U.S.C. 5339, Alternative Analysis, to be used 
for CIG purposes as well.

B. Oversight Takedown

    In order to conduct program oversight activities in accordance with 
49 U.S.C. 5338(i), 0.5 percent is set aside from the amounts available 
to carry out the Planning Programs (section 5305); the Enhanced 
Mobility of Seniors and Individuals with Disabilities Formula Program 
(section 5310); and the Rural

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Areas Formula Grants Program (section 5311). In addition, 0.75 percent 
is set aside from amounts made available to carry out the Urbanized 
Area Formula Grants Programs, and the High Intensity Fixed Guideway 
State of Good Repair Formula Program (section 5337(c)). Additionally, 
one percent of the amounts made available to carry out the CIG Program 
(section 5309) as well as one percent of the amounts available for 
grants to the Washington Metropolitan Area Transit Authority (section 
601 of the Passenger Rail Investment and Improvement Act of 2008 (Pub. 
L. 110-432)) is set aside for oversight activities.

C. FY 2014 Formula Apportionments; Data and Methodology

    FTA is publishing apportionment tables on its Web site for each 
program that reflects the full year appropriations less oversight take-
downs, as applicable. FTA is continuing to use, as it did in FY 2013, 
urbanized area and demographic data from the 2010 Census. Tables 
displaying the funds available to eligible states, tribes, and 
urbanized areas have been posted on FTA's Web site at http://www.fta.dot.gov/apportionments.
1. National Transit Database and Census Data Used in the FY 2014 
Apportionments
    Consistent with past practices, the calculations for sections 5307, 
5311, including 5311(j) (``Tribal Transit''), 5329, 5337, and 5339 
programs rely on transit service data reported to the National Transit 
Database (NTD) in 2012, the most recent year that NTD data is 
available. In some cases where an apportionment is based on the age of 
the system, the age is calculated as of September 30, 2013. Any 
recipient or beneficiary of either the section 5307 or section 5311 
program funds is required to report to the NTD. Additionally, a number 
of transit operators report to the NTD on a voluntary basis. For 2012, 
the NTD includes data from 821 reporters in urbanized areas, 795 of 
which reported operating transit service. The NTD reports 1,256 
providers of rural transit reserve, which includes 130 Indian Tribes 
providing transit service.
    The tiers of the sections 5303, 5305, 5307 and 5339 formulas that 
are based on population and population density continue to rely on data 
published by the 2010 Census, as required by MAP-21. Likewise, the 
tiers of the section 5311 formula that are based on rural population 
and rural land area are calculated using 2010 Census data.
    Sections 5307, 5311, and 5311(j) formulas include tiers where 
funding is allocated on the basis of the number of persons living in 
poverty and the section 5310 formula allocates funding on the basis of 
the population of older adults and people with disabilities. The Census 
Bureau no longer publishes decennial census data on persons living in 
poverty and persons with disabilities. As a result, FTA uses the data 
for these populations available via the Census' American Community 
Survey (ACS), which is updated annually.
    The FY 2014 apportionments use data on low-income persons, persons 
with disabilities, and older adults from the 2008-2012 ACS five-year 
data set, which was published in December 2013. This data set provides 
the first estimates that are based on the new Urbanized Area boundaries 
from the 2010 Census.
    Future apportionments will be based on the most-recent three-year 
ACS estimates that are available as of October 1st for the year being 
apportioned. This is consistent with the policies FTA has used for NTD 
data in the past. This policy provides predictability in the data to be 
used for the apportionment, without being contingent on the variable 
dates on which an appropriation is enacted into law, or on which an 
apportionment notice is formally published. In addition, it is 
consistent with the fact that even when an appropriation is enacted 
after the fiscal year, which begins on October 1st, the amount 
appropriated is based on that full fiscal year.
    The NTD and census data that FTA used to calculate the 
apportionments associated with this notice can be found on FTA's Web 
site: www.fta.dot.gov/apportionments.
2. Updates to Formula Calculation Methodology for the FY 2014 
Apportionments
    Section 5336(d)(2) directs FTA to ``publish apportionments of the 
amounts, including amounts attributable to each urbanized area with a 
population of more than 50,000 and amounts attributable to each State 
of a multistate urbanized area on the apportionment date.''
    In response to this requirement, which was present for the first 
time in FY 2013, FTA calculated each state's share of a multi-state 
urbanized area (UZA), as well as the apportionment to the UZA as a 
whole, by pro-rating population and NTD data attributable to each 
state's component of the multi-state UZA, calculating each state's 
share of the funding allocations to the multi-state UZA based on the 
formula for urbanized area grants set forth in section 5336, and 
aggregating the allocations to the UZA level.
    For the FY 2014 section 5307 apportionments, FTA is calculating 
funds to the multi-state UZAs first and then pro-rating the funds to 
the component states in the UZA. This methodology aims to make it 
easier for practitioners in multi-state UZAs to use FTA's formula unit 
values table and is also consistent with how the section 5307 formula 
was calculated under the Safe Accountable, Flexible, Efficient 
Transportation Equity Act: A Legacy for Users (Pub. L. 109-59, SAFETEA-
LU).
    For the FY 2014 apportionments, FTA will pro-rate each state's 
share of the multi-state UZA apportionment on the basis of the share of 
the population residing in the component states of the multi-state UZA 
as determined by the 2010 Decennial Census. This methodology should 
more-accurately suballocate funds than a methodology that relied, in 
part, on the state within the multistate UZA that a transit agency is 
headquartered (regardless of where within the multistate UZA the agency 
provides public transportation service).
    As was the case in FY 2013 the amounts showing each state's share 
of a multistate UZA's apportionment are for illustrative purposes only. 
Designated recipients must continue to sub-allocate funds allocated to 
a UZA based on a locally determined process, consistent with section 
5307 statutory requirements.
    The FY 2013 full-year section 5303 Statewide Planning 
apportionments published in May 2013 inadvertently neglected to provide 
the statutorily required 0.5 percent funding floor to the State of 
Arkansas, resulting in Arkansas being allocated $1,333 less than it 
should have received under these allocations. The FY 2014 Statewide 
planning apportionment includes a technical correction that provides 
$1,333 to Arkansas in addition to the funds allocated for FY 2014. A 
total of $1,333 was deducted from all other States' section 5303 
allocation on the basis of the states' overall share of the statewide 
planning allotment in FY 2014.

D. FY 2014 Discretionary Program Funding

1. Notices of Funding Availability
    MAP-21 authorized several discretionary grant programs, such as the 
Transit-Oriented Development (TOD) Planning Pilot Program, Low or No 
Emissions Bus and Facilities Program, Tribal Transit Discretionary 
Program, and Passenger Ferry Program. FTA will publish individual 
Notices of Funding Availability (NOFAs) for some of these programs in 
the coming months now that the FY 2014 full-year appropriations are 
available. NOFAs

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will be posted in Grants.Gov and on FTA's Web site once published in 
the Federal Register.
    In some cases, FTA may use proposals received under the FY 2013 
NOFAs for purposes of allocating FY 2014 funds.
    FTA published the FY 2013 NOFA for the Low or No Emissions Bus and 
Facilities Program on January 19, 2014. Applicants can apply for 
funding through March 10, 2014. http://www.fta.dot.gov/grants/13077_15782.html.
2. Research, Technical Assistance, and Training Program Funding
    The FY 2014 Appropriations provides approximately $48 million for 
Research Technical Assistance and Training program activities of which 
$40 million is available to carry out Research, Development, 
Demonstration, and Development projects under 49 U.S.C. 5312, and $3 
million is available for Transit Cooperative Research Program 
activities under 49 U.S.C. 5313. In addition, $3 million is available 
for Technical Assistance and Standards Development under 49 U.S.C. 5314 
and $2 million is provided to carry out Human Resource and Training 
activities under 49 U.S.C. 5322(a) and (b). More information about 
these programs can be found in Section IV of this notice.
3. FY 2014 Fixed Guideway Capital Investment Grant Program Allocations
    The Fixed Guideway Capital Investment Grant (CIG) Program (49 U.S.C 
5309), which historically authorizes the New and Small Starts Programs 
and now includes the Core Capacity Improvement Program, is excluded 
from the NOFA process because the program has an ongoing project 
development and review process, and funding is allocated consistent 
with information already available to FTA. By way of this notice, 
however, FTA is publishing the FY 2014 CIG Allocations table (Table 7) 
to its Web site for approximately $2.132 billion available to carry out 
the program. These projects were included in the FY 2014 Annual Report 
on Funding Recommendations for CIG Program published on April 12, 2013. 
Pursuant to FY 2014 appropriations, prior year unobligated or recovered 
section 5339 (Alternatives Analysis) funds are made available to carry 
out 49 U.S.C. 5309 for New Starts, Small Starts, or Core Capacity 
projects as applicable. And, prior year unobligated or recovered 
section 5309 (Discretionary Bus and Bus Facilities) funds are available 
to carry out bus rapid transit (BRT) projects subject to the 
requirements of the CIG program. More information about this program 
and the CIG FY 2014 Allocations can be found in Section IV of this 
notice.
4. Unobligated Prior Year Discretionary Allocations
    FTA is posting tables of prior year discretionary allocations that 
remain unobligated as of September 30, 2013 to its FY 2014 
Apportionments Web page. These tables can be found here: 
www.fta.dot.gov/apportionments and are numbered Tables 14-18. Each 
table contains information pertaining to the lapse date of these funds.

III. FY 2014 Program Highlights and Changes

A. MAP-21 Implementation

    As a result of the MAP-21 authorization and in addition to 
regulatory activities, FTA is in the process of updating program 
circulars to reflect MAP-21 changes and provide guidance for new and 
existing programs. Below is a chart of publication dates or expected 
publication dates for the program circulars. FTA publishes the draft 
circulars for notice and comment, taking into consideration all 
comments received prior to final publication. In the interim and until 
FTA publishes final program circulars, existing program circulars 
combined with the interim guidance in the October 16, 2012 
apportionment notice can be used to administer the programs. FTA's 
electronic grant management system and financial systems both have been 
updated to reflect new programs and new codes provided by MAP-21. If 
there are additional questions about the major formula programs or 
grants, please contact your regional office or the Headquarters program 
contacts listed in Section IV of this notice.

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                                       Expected/actual  publication date       Expected/actual  publication of
              Program                      (for  Notice and Comment)                   final circular
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Urbanized Area Formula Grant         April 22, 2013.......................  January 16, 2014.
 Program (Section 5307).
Enhanced Mobility for Seniors and    July 11, 2013........................  Spring 2014.
 Individuals with Disabilities
 (Section 5310).
Rural Areas Formula Program          September 26, 2013...................  Spring 2014.
 (Section 5311).
State of Good Repair Formula         Spring 2014..........................  Fall 2014.
 Program (Section 5337).
Bus and Bus Facilities Formula       Spring 2014..........................  Fall 2014.
 Program (Section 5339).
----------------------------------------------------------------------------------------------------------------

    On October 3, 2013 FTA published an expansive Advanced Notice of 
Proposed Rulemaking (ANRPM) in the Federal Register requesting comment 
on a number of questions related to the implementation of the new 
requirements under MAP-21 for a National Transit Safety Plan, a 
requirement for Agency Safety Plans, a new Safety Certification 
Training Program, and a new National Transit Asset Management System. 
The comment period for this ANPRM closed on January 2, 2014. FTA is 
currently engaged in the process of reviewing approximately 2,500 pages 
of comments from more than 140 commenters. FTA intends to begin issuing 
formal Notices of Proposed Rulemakings (NPRMs) on these topics in late 
2014 or in 2015.
    FTA is also continuing to work with States with rail fixed guideway 
public transportation systems (rail fixed guideway public 
transportation systems or rail transit systems) to develop and carry 
out State Safety Oversight (SSO) Programs consistent with the 
requirements of MAP-21. On October 1, 2013, FTA announced the initial 
certification status of each State and is now working with each State 
to address, among other things, identified gaps in their SSO Programs 
(SSO Program or SSOP) with MAP-21 requirements and to develop work 
plans to address these gaps as well as enhance a State's SSOP. In a 
separate notice, FTA will be providing the new formula for the SSO 
Formula Grant Program apportioning FYs 2013 and 2014 funds that may be 
used to support a State's SSOP that meets the requirements of 49 U.S.C. 
5329(e), as amended by MAP-21. FTA is also developing a Notice of 
Proposed Rulemaking to propose its plan to implement the SSO Program 
and seek feedback from the transit industry. Additional information on 
FTA's safety authority and the requirements under section 5329 can be 
found in Section IV.O. of this notice.

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B. Federal Highway Administration (FHWA) Congestion Mitigation and Air 
Quality Improvement Program (CMAQ) Funds for Operating Assistance

    Section 125 of the 2014 Appropriations included changes to the 
operating assistance section of the CMAQ program (23 U.S.C. 149(m)). 
The changes added new language that prohibits the imposition of a time 
limitation for operating assistance eligibility on a system ``for which 
CMAQ funding was made available, obligated or expended in fiscal year 
2012.'' The Federal Highway Administration (FHWA) understands this 
change is not consistent with the language in its CMAQ Interim Guidance 
available at http://www.fhwa.dot.gov/environment/air_quality/cmaq/policy_and_guidance/2013_guidance/index.cfm. FHWA, working with FTA, 
will provide further guidance to implement this change. However, funds 
transferred in FY 2014 or later (on or after October 1, 2013) for 
operating assistance projects for which CMAQ funding was made 
available, obligated or expended in FY 2012 could be eligible for 
operating assistance without a time limitation, based on the change in 
the 2014 Appropriations Act. FTA will work with grantees at the time of 
grant application to verify eligibility for this provision. More 
information about this provision and the expected procedures can be 
found in Section V of this notice.
    For CMAQ projects not affected by the provision in Section 125 
prohibiting time limitations on operating assistance, grantees are to 
refer to the interpretation in the CMAQ Interim Guidance with regard to 
eligibility and time frames for operating assistance (i.e., eligibility 
for three years, with the option to spread the third year over an 
additional two years).

C. Transitioning to a New Electronic Grant Management System

    FTA will continue to use its Transportation Electronic Award 
Management System (TEAM) to award and manage all grants, cooperative 
agreements, and other funding instruments throughout FY 2014. However, 
beginning in October 2014 FTA expects to award and manage grants 
through the Transit Award Management System (TrAMS), the successor to 
TEAM.
    When deployed, TrAMS aims to offer a more efficient, user-friendly, 
and flexible tool to award and manage grants and cooperative 
agreements. It seeks to provide more useful information, and will 
strengthen the integrity and consistency of our grants award and 
management process.
    FTA has created a page on its Web site, http://www.fta.dot.gov/TrAMS to provide additional information and updates on our new grant 
making system. Individuals who would like access to this Web site 
should contact their FTA regional office for the password to use or 
send an email to fta.trams@dot.gov.
    FTA will provide training and technical assistance on using TrAMS. 
Training will include live, hands-on workshops, where feasible, as well 
as training videos and guidance and technical assistance documents. 
More information on upcoming training will be posted at http://www.fta.dot.gov/TrAMS.
    FTA also will migrate data, information, and attachments about 
current funding recipients and their awarded grants from TEAM into 
TrAMS and will provide grantees with the opportunity to verify that 
their organizations' information has been migrated successfully.
    TrAMS, by design, collects and presents information contained in 
new grant applications differently than TEAM, which will make it 
difficult to migrate applications that have not yet been awarded by the 
end of FY 2014 into the new system. FTA will make a concerted effort to 
award all pending grant applications in TEAM by the end of FY 2014 and 
prior to TrAMS becoming available. However, recipients should be aware 
that grant applications must be in submitted status in TEAM by June 30, 
2014 so that FTA has adequate time to award the grant by the end of FY 
2014, when TrAMS is first expected to become operational. FTA cannot 
guarantee that applications not awarded in TEAM by the end of FY 2014 
will be migrated into TrAMS. If an application is not migrated into the 
new system, the recipient will need to re-create their application in 
TrAMS in FY 2015.
    In addition, in order to minimize the amount of data and 
information that needs to be migrated into TrAMS, FTA encourages its 
grantees to promptly close any awarded grants where funds are fully 
disbursed or where the grantees no longer plan to implement the 
projects funded in the grant. FTA grantees will be able to use TrAMS to 
manage active grants where work on the transit projects identified in 
the grant is ongoing. (These grants will be migrated from TEAM to 
TrAMS).

D. Flood Insurance

    Recipients are reminded they need to maintain flood insurance for 
any building located in a special flood hazard area that received 
Federal financial assistance. Section 102 of the Flood Disaster 
Protection Act of 1973 (FDPA) prohibits the Federal government from 
providing funds for acquisition or construction of buildings located in 
a special flood hazard area (100-year flood zone) unless the owner of 
the property first has obtained flood insurance. FTA's Master Agreement 
and annual Certifications and Assurances reference FDPA and recipients 
agree they will have flood insurance for buildings in a special flood 
hazard area.
    Specifically, Federal agencies may not provide any financial 
assistance for the acquisition, construction, reconstruction, repair, 
or improvement of a building unless the recipient has first acquired 
flood insurance under the National Flood Insurance Act to cover the 
buildings constructed or repaired with Federal funds. The Federal 
Emergency Management Agency (FEMA) has defined ``building'' in its 
regulations implementing the National Flood Insurance Program (NFIP) as 
``a building with two or more outside rigid walls and a fully secured 
roof that is affixed to a permanent site.'' In addition, where 
structures are both above and below ground, the flood insurance 
requirement applies where at least 51 percent of the cash value of the 
structure, less land value, is above ground.
    This flood insurance requirement applies to transit facilities such 
as maintenance facilities, storage facilities, and above-ground 
stations/terminals, as well as equipment and fixtures in the 
facilities. It does not apply to underground subway stations, track, 
tunnels, ferry docks, or to any transit assets outside of a special 
flood hazard area.
    A covered structure must be insured through the NFIP or a 
comparable private policy. The policy must provide coverage at least 
equal to the project cost for which Federal assistance is provided, or 
to the maximum limit of coverage available under the National Flood 
Insurance Act (currently $500,000 for buildings and $500,000 for 
equipment and fixtures), whichever amount is less. Facilities owned by 
state governments may be self-insured, but only where FEMA has approved 
the state's self-insurance policy. Private entities, and public 
entities other than state governments, may not self-insure and must 
obtain a flood insurance policy before receiving Federal funds and 
maintain the policy subsequent to grant award.

[[Page 13466]]

E. New Common Rule

    On December 26, 2013 the Office of Management and Budget (OMB) 
issued the Uniform Administrative Requirements, Cost Principles, and 
Audit Requirements for Federal Awards in 2 CFR Part 200. 2 CFR Part 200 
replaces and combines the former Uniform Administrative Requirements 
for Grants (OMB Circular A-102 and Circular A-110 or 2 CFR Part 215 or 
Circular) as well as the Cost Principles (Circulars A-21 or 2 CFR part 
220; Circular A-87 or 2 CFR part 225; and A-122, 2 CFR part 230). 
Additionally it replaces Circular A-133 guidance on the Single Annual 
Audit.
    For the most part 2 CFR Part 200 does not substantially change 
Administrative Requirements as experienced by FTA grantees. However, 
FTA will be working to update its guidance to ensure it is consistent 
with the new Common Rule. Until that time grantees should continue to 
follow FTA Circular 5010.1D, ``Grant Management Requirements'' as last 
revised on August 27, 2012.

IV. FY 2014 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; Final Rule. FTA apportions funds directly to State 
Departments of Transportation (DOTs). State DOTs then allocate the 
funds to Metropolitan Planning Organizations (MPOs), for planning 
activities that support the economic vitality of the metropolitan area.
    MAP-21 requires that the metropolitan transportation planning 
process must provide for the establishment of a performance-based 
approach to decision-making. Upon publication of a final rule on the 
metropolitan transportation planning program, MPOs will be required to 
establish 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 MPOs in 
coordination with States and transit providers. MPOs also will be 
required to provide a system performance report that evaluates their 
progress 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; and 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. FY 2014 Funding Availability
    The FY 2014 Appropriations provides a total of $106,543,360 for 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 $106,570,979 as shown in the 
table below, after the deduction for oversight (authorized by section 
5338) and including reapportioned funds.

                 Metropolitan Planning Program--FY 2014
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.....................................    $106,543,360
Oversight Deductions....................................        -532,717
Reapportioned Funds.....................................         560,336
                                                         ---------------
  Total Apportioned.....................................     106,570,979
------------------------------------------------------------------------

    States' apportionments for this program are displayed in Table 2.
2. Basis for Allocation
    Eighty percent of the funds are apportioned to the States based on 
the most recent decennial Census for each State's UZA population. The 
remaining 20 percent is provided to the States with UZAs with one 
million or more in population in order to address planning needs in 
larger, more complex UZAs.
3. 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). The UPWP 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 the FTA regional office must approve any change 
before grant award. 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.
4. Period of Availability
    The Metropolitan Planning program funds apportioned in this notice 
are available for obligation during FY 2014 plus three additional 
fiscal years. Accordingly, funds apportioned in FY 2014 must be 
obligated in grants by September 30, 2017. Any FY 2014 apportioned 
funds that remain unobligated at the close of business on September 30, 
2017, 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

[[Page 13467]]

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. FY 2014 Funding Availability
    FY 2014 Appropriations provides a total of $22,256,640 for the 
State Planning and Research Program (section 5305(e)). The total amount 
apportioned for the State Planning and Research Program (SPRP) is 
$22,910,721 as shown in the table below, after the deduction for 
oversight (authorized by section 5338) and including reapportioned 
funds.

                      Statewide Planning Program--
                                 FY 2014
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.....................................     $22,256,640
Oversight Deductions....................................        -111,283
Reapportioned Funds.....................................         765,364
                                                         ---------------
  Total Apportioned.....................................      22,910,721
------------------------------------------------------------------------

    States' apportionments for this program are displayed in Table 2.
2. Basis for Allocation
    FTA apportions funds to States by a statutory formula that is based 
on the most recent decennial Census data available, and the State's UZA 
population as compared to the UZA population of all States.
3. Requirements
    Funds are provided to States for statewide transportation planning 
programs. These funds may be used for a variety of purposes such as 
planning, technical studies and assistance, demonstrations, and 
management training. In addition, a State may authorize a portion of 
these funds to be used to supplement Metropolitan Planning funds 
allocated by the State to its UZAs, as the State deems appropriate. 
Program guidance for the State Planning and Research program is found 
in FTA Circular 8100.1C, Program Guidance for Metropolitan Planning and 
State Planning and Research Program Grants, dated September 1, 2008.
    MAP-21 requires that the statewide and non-metropolitan 
transportation planning process must provide for the establishment and 
use of a performance-based approach to decision-making. Upon 
publication of a final rule on the statewide and non-metropolitan 
transportation planning program, State Departments of Transportation 
will be required to establish 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 
States in coordination with MPOs and transit providers. States will be 
encouraged to provide a system performance report that evaluates their 
progress in meeting the performance targets in comparison with the 
system performance identified in prior reports.
4. Period of Availability
    The State Planning and Research program funds apportioned in this 
notice are available for obligation during FY 2014 plus three 
additional fiscal years. Accordingly, funds apportioned in FY 2014 must 
be obligated in grants by September 30, 2017. Any FY 2014 apportioned 
funds that remain unobligated at the close of business on September 30, 
2017 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 that a Designated Recipient authorizes to apply 
for the funds directly to FTA.
    FTA published a revised FTA Circular 9030.1E, Urbanized Area 
Formula Program: Program Guidance and Application Instructions on 
January 16, 2014, incorporating changes resulting from MAP-21. This 
circular was made available for public comment prior to final 
publication, and the final circular incorporates and responds to 
comments received. This revised circular is in effect for all grants 
awarded after the date of its publication. The revised circular can be 
accessed at www.fta.dot.gov/circulars.
    Recipients should be aware of several program clarifications and 
changes addressed in the circular, which were established by MAP-21 and 
took effect beginning in FY 2013. 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. These and other changes, including 
clarifications on existing requirements under the program, are 
incorporated in the FTA Circular 9030.1E. 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. FY 2014 Funding Availability
    FY 2014 Appropriations provides a total of $4,458,650,000 for the 
Urbanized Area Formula Program (section 5307). The total amount 
apportioned to UZAs is $4,833,448,449, which includes the addition of 
amounts apportioned to UZAs pursuant to the section 5340 Growing States 
and High Density States Formula factors and reapportioned funds. 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.

[[Page 13468]]



                 Urbanized Area Formula Program--FY 2014
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.................................  \a\ $4,458,650,000
Ferry Discretionary Program.........................         -30,000,000
State Safety Oversight Program......................         -22,293,250
Oversight Deduction.................................         -33,439,875
Section 5340 Funds Added............................         450,840,320
Reapportioned Funds.................................           9,691,254
    Total Apportioned...............................       4,833,448,449
------------------------------------------------------------------------
\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.
2. Basis for Allocation
    Beginning in FY 2013 and continued in FY 2014, MAP-21 made several 
changes to the formula for this program. Specifically, section 5336(h) 
provides that 3.07 percent of section 5307 funds available for 
apportionment are allocated on the basis of low-income persons residing 
in UZAs, 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 a State Safety Oversight formula grant program. 
These funds are apportioned to States using a separate formula.
    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 2014 apportionment, FTA used population and 
population density statistics from the 2010 Census and validated 
mileage and transit service data from transit providers' 2012 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 UZA 
transit systems, but which were attributable to rural areas outside of 
the UZAs 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 UZAs over 200,000 (large UZAs) 
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 UZAs under 200,000 
in population (small UZAs) 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. The dollar unit values for FY 2014 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 2012 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 2014 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. 
Half of the funds appropriated for section 5340 are apportioned to 
Growing States and half to High Density States. More information on 
this program and its formula is found in Section IV.R. of this notice.
iv. Low-Income Population
    Beginning in FY 2013 and continued in FY 2014, the formula for this 
program includes a formula factor for 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.
3. Requirements
    Program guidance for the Urbanized Area Formula Program is found in 
FTA Circular 9030.1E, Urbanized Area Formula Program: Program Guidance 
and Application Instructions, dated January 16, 2014, and is 
supplemented by additional information and changes provided in this 
notice and that may be posted to the section 5307 Web page. Grantees 
should also review the Federal

[[Page 13469]]

Register notice that accompanied the revised circular for specific 
areas that may have changed in response to comments.
4. Period of Availability
    Section 5307 funds are available for a period of six years (year of 
apportionment plus five additional years). Accordingly, 5307 funds 
apportioned in FY 2014 must be obligated in grants by September 30, 
2019. Any FY 2014 apportioned funds that remain unobligated at the 
close of business on September 30, 2019 will revert to FTA for 
reapportionment under the Urbanized Area Formula Program. Grantees are 
encouraged to obligate funds when projects are ready and not wait until 
the last year the funds are available.
5. Other Program Information
i. Allocating Funds to Small Urbanized Areas and Designated Recipients
    Prior to issuing its FY 2012 Apportionments, Allocations and 
Program Information Notice, FTA considered whether the Governor of a 
State could allocate formula fund apportionments to small UZAs located 
within or designated as Transportation Management Areas (TMAs) that are 
different from the allocations FTA publishes. FTA determined that the 
Governor had such discretion and the FY 2012 Apportionments Notice 
included language indicating that determination. (See http://www.gpo.gov/fdsys/pkg/FR-2012-01-11/pdf/2012-249.pdf).
    Before the enactment of MAP-21, the Urbanized Area Formula Grant 
program at 49 U.S.C. 5307(a)(2) defined a ``designated recipient'' as 
an entity designated, in accordance with the planning process under 
sections 5303, 5304, and 5306, by the chief executive officer of a 
State, responsible local officials, and publicly owned operators of 
public transportation, to receive and apportion amounts under section 
5336 that are attributable to transportation management areas 
identified under section 5303; or a State or regional authority if the 
authority is responsible under the laws of a State for a capital 
project and for financing and directly providing public transportation. 
The reference to TMAs in section 5307(a)(2) was directed at areas with 
200,000 or more in population (large UZAs) identified by the Census 
Bureau. FTA did not interpret the reference to include areas under 
200,000 in population, which the Secretary designated as TMAs at the 
request of the Governor and the Metropolitan Planning Organization 
(MPO). Such designations are for planning purposes only.
    MAP-21 moved the definition of ``designated recipient'' to 49 
U.S.C. 5302, which is the section that defines terms applicable to all 
of chapter 53 unless specifically provided otherwise in a particular 
section of that chapter. The term ``designated recipient'' as defined 
in section 5302(4) applies to section 5307, 5337, 5539, except that for 
purposes of section 5339, only designated recipients that operate fixed 
route bus service or that allocate funding to fixed route bus operators 
are eligible recipients. In addition, MAP-21 struck the term 
``transportation management areas'' from the definition of ``designated 
recipient.'' Currently, section 5302(4) defines a ``designated 
recipient'' as an entity designated, in accordance with the planning 
process under section 5303 and 5304, by the Governor of a State, 
responsible local officials, and publicly owned operators of public 
transportation, to receive and apportion amounts under section 5336 to 
urbanized areas of 200,000 or more in population; or a State or 
regional authority, if the authority is responsible under the laws of a 
State for a capital project and for financing and directly providing 
public transportation. While legislative history fails to explain the 
change, it clearly supports FTA's earlier determination. Thus, 
consistent with the definition of ``designated recipient,'' FTA 
apportions funds according to the formula under section 5336 to 
designated recipients in UZAs of 200,000 or more in populations (large 
UZAs) and to the Governor of the State for UZAs of less than 200,000 in 
population (small UZAs). Pursuant to section 5336(e), the Governor of 
the State may allocate apportionments among the small UZAs. FTA 
interprets the legislation to allow a Governor to do so regardless of 
whether a small UZA has been designated as a TMA. FTA can make grants 
under this program to direct recipients after sub-allocation of funds.
ii. 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 has been made 
available to States for State Safety Oversight (SSO) program activities 
as authorized under 49 U.S.C. 5329. More information about this program 
funding will be provided in a separate Federal Register notice.
iii. National Transit Database 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 2013 Report Year, which lasts 
from October 2013 through July 2014, the reporting requirements apply 
to any recipient of a section 5307 grant obligation in 2012, any 
recipient of a section 5307 grant outlay in 2013, or any entity that 
continued to benefit in 2013 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 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 will propose 
guidance for implementing these requirements in a future notice in the 
Federal Register. The NTD Reporting Manuals contains detailed reporting 
instructions and are posted on the NTD Web site, www.ntdprogram.gov.
iv. Definition of a Clean Fuel Vehicle
    In the Federal Register notice dated January 16, 2014 that 
announced the publication of FTA Circular 9030.1E, FTA incorrectly 
described the reason that the term ``biodiesel'' was removed from the 
definition of ``Clean Fuel Vehicle''. This term was removed because 
biodiesel is an alternative fuel capable of running in a standard clean 
diesel vehicle, not because biodiesel is not a type of clean fuel.

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

    The Fixed Guideway Capital Investment Grant (CIG) Program provides 
funds for construction of new fixed guideway systems or extensions to

[[Page 13470]]

existing fixed guideway systems and, as amended by MAP 21, projects 
that will expand the core capacity of an 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 projects 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 addition of Core Capacity eligibility 
under the 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 a Small Starts Grant 
Agreement (SSGA) 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 Elizabeth.day@dot.gov, or for 
information about published allocations contact Eric Hu, Office of 
Transit Programs, at (202) 366-0870 or eric.hu@dot.gov.
1. FY 2014 Funding Availability
    The FY 2014 Appropriations provides a total of $1,942,938,000 for 
the section 5309 program. The total amount available for allocation is 
$1,923,508,620, after the one percent deduction for oversight, as shown 
in the table below.

           Fixed Guideway Capital Investment Program--FY 2014
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation...................................    $1,942,938,000
Oversight Deductions..................................       -19,429,380
                                                       -----------------
  Total Available.....................................     1,923,508,620
------------------------------------------------------------------------

    As noted in Section II.D.3 of this notice, the FY 2014 
Appropriations permitted the use of prior year unobligated balances to 
be used to fulfill the funding recommendations published in the FY 2014 
Annual Report on Funding Recommendations for CIG Program on April 12, 
2013. These funds combined with those shown above have been allocated 
for projects shown in Table 7.
2. Basis for Allocation
    Funds are allocated on a discretionary basis and subject to program 
evaluation.
3. Requirements
    In January 2013, FTA published a final rule explaining the MAP-21 
evaluation and rating process for New and Small Starts projects, which 
became effective in April 2013. Additionally, FTA published 
corresponding final policy guidance in August 2013 that provides 
additional details and explanations on that process. FTA will be 
completing additional rulemaking and guidance documents related to the 
remainder of the section 5309 MAP-21 provisions, including: getting 
into and through the steps in the New Starts and Small Starts process; 
the evaluation and rating process for the Core Capacity Improvement 
program; getting into and through the steps in the Core Capacity 
process; warrants; expedited technical capacity reviews; and Programs 
of Inter-Related Projects. Project sponsors should reference the FTA 
Web site at www.fta.dot.gov for the most current fixed guideway capital 
investment grant program information. 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.
4. 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 2014 must be obligated for the project by 
September 30, 2018. 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. Grantees 
are encouraged to obligate funds when projects are ready and not wait 
until the last year the funds are available.

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 (areas with populations of 200,000 or more) to improve 
mobility for seniors and individuals with disabilities. This program 
provides funds for: (1) public transportation capital projects planned, 
designed, and carried out to meet the special needs of seniors and 
people with disabilities when public transportation is insufficient, 
unavailable, or inappropriate; (2) public transportation projects that 
exceed the requirements of the Americans with Disabilities Act (ADA) of 
1990; (3) public transportation projects that improve access to fixed 
route service and decrease reliance by people with disabilities on 
complementary paratransit; and (4) alternatives to public 
transportation that assist seniors and individuals with disabilities 
with transportation.
    Starting in FY 2013 and continued in FY 2014, FTA apportions funds 
specifically for large UZAs, small UZAs (areas under 200,000 in 
population) and rural areas (areas under 50,000 in population) and 
requires new designations in large UZAs. Additionally, MAP-21 expanded 
the eligibility provisions to include operating expenses.
    On July 11, 2013, FTA published the proposed circular, FTA C 
9070.1G, Enhanced Mobility of Seniors and Individuals with 
Disabilities: Program Guidance and Application Instructions, for notice 
and comment. FTA is in the process of responding to comments and 
anticipates publishing the final circular in spring 2014. Until then, 
grantees can utilize the existing circulars for the former 5310 program 
and repealed 5317 program combined with the interim guidance published 
in in the Federal Register on October 16, 2012 (See 77 FR 63669) to 
implement this program.
    For more information about the Enhanced Mobility of Seniors and 
Individuals with Disabilities Program,

[[Page 13471]]

contact Gil Williams, Office of Transit Programs, at (202) 366-0797 or 
gilbert.williams@dot.gov.
1. FY 2014 Funding Availability
    FY 2014 Appropriations provides a total of $258,300,000 for the 
section 5310 program. The total amount apportioned to States and UZAs 
for the section 5310 program is $257,464,692, after the deduction for 
oversight (authorized by section 5338) and including reapportioned 
funds, as shown below in the table.

Enhanced Mobility of Seniors and Individuals With Disabilities Program--
                                 FY 2014
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.....................................    $258,300,000
Oversight Deductions....................................      -1,291,500
Reapportioned Funds.....................................         456,192
                                                         ---------------
  Total Apportioned.....................................     257,464,692
------------------------------------------------------------------------

    Table 8 displays the amounts apportioned under the Enhanced 
Mobility of Seniors and Individuals with Disabilities Program.
2. Basis for Allocation
    Based on the statutory formula, sixty percent of the funds are 
apportioned among Designated Recipients for large UZAs; twenty percent 
of the funds are apportioned among the States for their small UZAs; and 
twenty percent of the funds are apportioned among the States for their 
rural areas.
3. Requirements
i. Designated Recipients
    For small UZAs and 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 large UZAs, 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. Section 5310 funds cannot be awarded until this designation 
is on file with the FTA Regional office. A State agency could be the 
Designated Recipient for section 5310 funds for a large UZA. However, 
if the State is selected as the Designated Recipient in a large UZA, 
the apportioned funds for the large UZA must be allocated to eligible 
subrecipients within the UZA.
    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; 
obligating and managing the program funds; program reporting; and 
ensuring that all subrecipients comply with Federal requirements.
    Although FTA will only award grants to the States and 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 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, permitting them to be used 
for operating, in addition to capital, for transportation services that 
address the needs of seniors and individuals with disabilities. 
However, not less than 55 percent of the funds available for this 
program must be used for capital 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). FTA refers to these projects as ``traditional 5310'' 
projects and based on the statutory language, these projects must be 
carried out by the traditional 5310 subrecipients, which are non-
profits, or a State or local governmental authority that is approved by 
a State to coordinate services for seniors and individuals with 
disabilities, or certifies that there are no non-profit organizations 
readily available in the area to provide the service. 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 operating or 
capital projects such as: 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. Eligible subrecipients for these other 
eligible section 5310 activities include a State or local governmental 
authority, a private non-profit organization, or an operator of public 
transportation that receives a section 5310 grant indirectly through a 
recipient. 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 guidance, 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 
under section 5310, as can revenue from service contracts.
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. Although the 
requirement for a coordinated plan is not new, FTA recognizes that some 
large UZAs may need to modify existing coordinated plans to address the 
specific needs of the program's target populations and/or be approved 
by

[[Page 13472]]

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 approved 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
    FTA will require States and Designated Recipients responsible for 
implementing the section 5310 program to document their approach to 
managing the program in a Program Management Plan (PMP) or State 
Management Plan (SMP). States may need to update their SMP to reflect 
MAP-21 changes. For large UZAs, the Designated Recipient will be 
required to submit a PMP 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 
SMP and can be used as a guide to develop a PMP for the large UZAs. 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, Elderly Individuals and 
Individuals With Disabilities Program Guidance and Application 
Instructions, dated May 1, 2007.
4. 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 2014 must be obligated in grants by September 30, 
2016. Any FY 2014 apportioned funds that remain unobligated at the 
close of business on September 30, 2016 will revert to FTA for 
reapportionment among the States and UZAs.
5. Other Program Information
    States may transfer rural or small UZA funds. The State may 
transfer apportioned funds between small UZAs 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 
apportioned for rural and small UZAs to any area within the state if a 
statewide program for this section is established. States must submit 
transfer requests to the regional office staff, who then coordinate 
with Headquarters program and budget offices to approve and record the 
transfer. There are no administrative or statutory provisions to permit 
transferring section 5310 funds to other FTA programs nor is there a 
provision for large UZAs to transfer their funds to the State. Funds 
apportioned to the large UZA must be used in the large UZA, regardless 
of who may be the Designated Recipient.
    Multiple areas apportionments' can be combined in a single grant. 
However, unless transferred in accordance with the provisions above, 
the funds must be obligated and expended in the respective area to 
which the funds were apportioned. For example, rural area 
apportionments, must be obligated and expended for projects located in 
rural areas, small UZA funds must be obligated and expended in a 
corresponding small UZA.
    MAP-21 requires FTA to establish performance measures for the 
program, which FTA initially sought comment on during the publication 
of the proposed program circular. Based on comments received to date, 
FTA is planning to launch an electronic dialogue to further engage 
program stakeholders, particularly the non-profit community, to further 
discuss and define performance measures for the program. This dialogue 
is expected to be launched in spring 2014.

F. Rural Area Formula 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 (rural areas). 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.
    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 were described in the proposed circular, FTA C 
9040.1G, Formula Grants for Rural Areas: Program Guidance and 
Application Instructions, which FTA published for notice and comment on 
September 26, 2013. FTA is in the process of responding to comments and 
anticipates publishing the final circular in spring 2014. Until then, 
grantees can utilize the existing circular for the former 5311 program 
combined with the interim guidance published in the Federal Register on 
October 16, 2012 (See 77 FR 63669) to implement this 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.

[[Page 13473]]

1. FY 2014 Funding Availability
    The FY 2014 Appropriations provides $607,800,000 for the section 
5311 program. The total amount apportioned to the States for the 
section 5311 program is $618,401,446, 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 and reapportioned funds, as shown in 
the table below.

             Formula Grants for Rural Areas Program--FY 2014
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation....................................     $607,800,000
Oversight Deductions...................................       -3,039,000
RTAP Takedown..........................................      -12,156,000
Tribal Takedown........................................      -30,000,000
Appalachian Takedown...................................      -20,000,000
Section 5340 Funds.....................................       75,059,680
Reapportioned Funds....................................          736,766
                                                        ----------------
    Total Apportioned..................................      618,401,446
------------------------------------------------------------------------

    Table 9 displays the amounts apportioned to the States under the 
Formula Grants for Rural Areas Program.
2. Basis for Allocation
    MAP-21 modified the formula for the Rural Areas Program. The 
majority of rural formula funds (83.15 percent) are apportioned based 
on land area and population factors. In this first tier, no State may 
receive more than 5 percent of the amount apportioned on the basis of 
land area. The remaining rural formula funds (16.85 percent) are 
apportioned based on land area, vehicle revenue miles, and low-income 
individual factors. Vehicle revenue miles are a new service factor and 
the low-income individual factor reflects that job access and reverse 
commute projects are now eligible under the program. In this second 
tier, no State may receive more than 5 percent of the amount 
apportioned on the basis of land area, or more than 5 percent of the 
amounts apportioned for vehicle revenue miles. In addition to funds 
made available under section 5311, FTA adds amounts apportioned based 
on rural population according to the growing States formula factors of 
49 U.S.C. 5340 to the amounts apportioned to the States under the 
section 5311 formula.
    Data from the Rural Module of the National Transit Database (NTD) 
2012 Report Year was used for this apportionment, including data from 
directly-reporting Indian tribes.
    Section 5311 program includes three takedowns: the Appalachian 
Development Public Transportation Assistance Program (ADTAP); the Rural 
Transit Assistance Program (RTAP); and the Tribal Transit Program. 
These separate programs are described in the sections that follow.
3. Requirements
    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. The planning 
activities undertaken with section 5311 funds are in addition to those 
awarded to the State under section 5305 and must be used specifically 
for rural areas' needs. 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.
    The Federal share for capital assistance is 80 percent and for 
operating assistance is 50 percent, except that States eligible for the 
sliding scale match under FHWA programs may use that match ratio for 
section 5311 capital projects and 62.5 percent of the sliding scale 
capital match ratio for operating projects.
    Each State 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 the 
interim guidance published in the Federal Register on October 16, 2012 
(See 77 FR 63669) 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. All subrecipients of 5311 
funding are expected to comply with the requirements found in the 
program circular.
4. Period of Availability
    FTA is continuing to apply the period of availability of funds 
established under SAFETEA-LU, which is three years; this includes the 
year of apportionment plus two additional years. Any FY 2014 
apportioned funds that remain unobligated at the close of business on 
September 30, 2016 will revert to FTA for reapportionment under the 
Formula Grants to Rural Areas Program.
5. Other Program Information
i. National Transit Database (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 UZA reporter (without receiving a 
full reporting waiver). For the 2013 Report Year, which lasts from 
October 2013 through July 2014, State or Territorial DOTs must report 
on behalf of any sub-recipient receiving section 5311 grants in 2013, 
or that continued to benefit in 2013 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 obligated a grant in 2013, or if they expended 
funds from a section 5311 grant in 2013, or if they continued to 
benefit in 2013 from capital assets using section 5311 grants, unless 
the Tribe is already filing a full NTD Report as an UZA 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

[[Page 13474]]

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)(2))

    This program provides funding to assist in the design and 
implementation of training and technical assistance projects, research, 
and other support services tailored to meet the needs of transit 
operators in rural areas. For more information about the Rural 
Transportation Assistance Program (RTAP) contact Lorna Wilson, Office 
of Transit Programs, at (202) 366-0893 or lorna.wilson@dot.gov.
1. FY 2014 Funding Availability
    The FY 2014 Appropriations provides $12,156,000 for the section 
5311 RTAP Program. Of this amount, 15 percent, or $1,823,400, is 
available for the National RTAP program. The remainder plus any 
reapportioned funds are allocated to the States, as shown below.

            Rural Transportation Assistance Program--FY 2014
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation....................................      $12,156,000
National RTAP..........................................       -1,823,400
Reapportioned Funds....................................          281,743
                                                        ----------------
    Total Apportioned..................................       10,614,343
------------------------------------------------------------------------

    Table 12 shows the FY 2014 RTAP allocations to the States.
2. Basis for Allocation
    FTA allocates funds to the States by an administrative formula. 
First, FTA allocates $65,000 to each State ($10,000 to territories), 
and then allocates the balance based on rural population in the 2010 
Census.
3. 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.
4. Period of Availability
    The section 5311 RTAP funds apportioned in this notice are 
available for obligation in FY 2014 plus two additional years, 
consistent with that established for the section 5311 program. Any 
funds that remain unobligated on September 30, 2016 will revert to FTA 
for apportionment under the program.
5. 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 published a Request for Proposals on 
December 26, 2013, which closed on February 10, 2014. Results of this 
competition will be announced in FY 2014. 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. The next TRB National 
Conference on Rural and Intercity Bus Transportation is scheduled for 
October 26-29, 2014 in Monterey, CA. More information can be found 
here: http://www.ribtc.org/.

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

    MAP-21 established 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 2014 Apportionments page. For 
more information about the Appalachian Development Public 
Transportation Assistance Program (ADTAP), contact Lorna Wilson, Office 
of Transit Programs, at (202) 366-0893 or lorna.wilson@dot.gov.
1. FY 2014 Funding Availability
    The FY 2014 Appropriations provides $20,000,000 for the ADTAP, as 
shown below.

  Appalachian Development Public Transportation Assistance Program--FY
                                  2014
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.....................................     $20,000,000
Total Apportioned.......................................      20,000,000
------------------------------------------------------------------------

2. Basis for Allocation
    FTA apportions the funds using percentages established under 
section 9.5(b) of the Appalachian Regional Commission Code (subtitle IV 
of title 40). According to this provision, 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 legislation.
3. 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 
the final circular on how to accomplish a transfer. States should 
contact their regional office if they intend to request a transfer.
4. Period of Availability
    Section 5311 Appalachian program funds are available for three 
years, which includes the year of apportionment plus two additional 
years, consistent with that established for the section 5311 program. 
Funds that remain unobligated on September 30, 2016 will revert to FTA 
for reallocation.

I. Public Transportation on Indian Reservations Program (49 U.S.C. 
5311)

    The Public Transportation on Indian Reservations Program (Tribal 
Transit Program) is a takedown from the section 5311 apportionment, 
which allocates funds by both statutory formula consistent with 5311(j) 
and through a competitive discretionary program consistent with section 
5311(c)(1)(A). The Tribal Transit formula funds are apportioned 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. Eligible direct recipients 
are federally recognized Indian tribes in rural areas. During FY 2013, 
FTA consulted with Tribal recipients and stakeholders to implement 
program requirements, apportion the FY 2013 formula funds, and issue a 
Notice of Funding Availability for the FY 2013

[[Page 13475]]

discretionary funds. For more information about the Tribal Transit 
Program contact Elan Flippin, Office of Transit Programs at (202) 366-
3800 or elan.flippin@dot.gov.
1. FY 2014 Funding Availability
    The FY 2014 Appropriations provides $30,000,000 for the program, of 
which $25,000,000 is apportioned by formula and $5,000,000 will be 
allocated through a competitive discretionary program. FTA expects to 
publish a Notice of Funding Availability (NOFA) for FY 2014 funding in 
the spring of 2014.

      Public Transportation on Indian Reservations Program--FY 2014
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.....................................     $30,000,000
Total Appropriated to Tribes by Formula.................     -25,000,000
Total Available for Discretionary Allocation............       5,000,000
Plus Reapportioned Funds................................        a 55,813
                                                         ---------------
    Total Available for Discretionary Allocation........      5,055,813
------------------------------------------------------------------------
a The reapportioned funds available in FY 2014 are Tribal Transit funds
  that were previously allocated through the competitive process and
  were not obligated by the lapse date. FTA intends to make these
  available for the FY 2014 discretionary competition. In the future, if
  formula funds lapse, those funds will be reapportioned in the formula
  apportionment.

2. Basis for Allocation
    The majority of the funding is allocated by formula, as described 
below. The remainder of the appropriation plus prior year discretionary 
funds that have lapsed, will be made available through a discretionary 
competition.
i. Tribal Transit Formula Program
    The Tribal Transit formula program is distributed to eligible 
Indian tribes providing public transportation on tribal lands. The 
formula apportionment shown in Table 10 is based on a statutory formula 
which includes three tiers. Tiers 1 and 2 are based on data reported to 
NTD by Indian tribes; Tier 3 is based on 2008-2012 American Community 
Survey data.
    The three tiers for the formula are:

Tier 1--50 percent based on vehicle revenue miles reported to the NTD
Tier 2--25 percent provided in equal shares to Indian tribes reporting 
at least 200,000 vehicle revenue miles to the NTD
Tier 3--25 percent based on Indian tribes providing public 
transportation on reservations where more than 1,000 low income 
individuals reside

    Twenty-nine more tribes are receiving a formula apportionment in FY 
2014 than in FY 2013, because they became eligible to receive an 
apportionment after reporting their transit service data to the NTD. 
The available funds for formula apportionment are the same in FY 2013 
and FY 2014, which results in lower apportionments to many of the 
tribes who had received a FY 2013 apportionment. In addition, a tribe's 
apportionment may have increased or decreased in FY 2014 due to 
increases or decreases in the data they reported to the NTD or changes 
to the tribe's population of persons at or below 100 percent of poverty 
reported in the updated ACS data used for the FY 2014 apportionments.
ii. Tribal Transit Discretionary Program
    The Tribal Transit Discretionary program funds are allocated 
annually based on a discretionary competition and as published in a 
Notice of Funding Availability in the Federal Register. Funds will be 
allocated for grants to Indian tribes for purposes eligible under 
section 5311; however, FTA may limit the discretionary program based on 
funding priorities. Eligible projects may include: planning, capital, 
and operating. FTA expects to publish a NOFA in the Federal Register 
soliciting projects for the available FY 2014 discretionary funds in 
spring 2014. The NOFA will announce the available funding, application 
procedures, specific eligibility, and criteria for project selection 
for the discretionary program.
3. Requirements
    Formula funds apportioned under this program can be used for 
purposes consistent with section 5311 to support public transportation 
on Indian Reservations in rural areas. Funds allocated under the 
discretionary program must be used consistent with the tribe's proposal 
and the allocation notice published in the Federal Register, which is 
used to announce the selected projects. Eligible recipients under both 
the discretionary and formula program include Federally-recognized 
Indian tribes or Alaska native villages, groups, or communities as 
identified by the U.S. Department of the Interior Bureau of Indian 
Affairs (BIA). A tribe must have the legal, financial and technical 
capabilities to receive and administer Federal funds.
    Section 5335 requires NTD reporting for all direct recipients of 
section 5311 funds. This reporting requirement has and continues to 
apply to the Tribal Transit Program. Tribes that provide public 
transportation in rural areas are reminded to report annually so they 
are included in the Tribal Transit formula apportionments. Tribes 
needing assistance with reporting to the NTD should contact the NTD 
Helpline at 1-888-252-0936 or NTDHelp@dot.gov.
4. Period of Availability
    Tribal Transit program funds are available for three years, which 
includes the year of apportionment or allocation plus two additional 
years, consistent with that established for the section 5311 program. 
Any FY 2014 formula funds that remain unobligated at the close of 
business on September 30, 2016 will revert to FTA for reapportionment 
under the Tribal Transit Program.
5. Other Program Information
    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 contact the 
appropriate FTA regional office at the earliest opportunity.
    Tribal Transit Program grantees, the same as with all other FTA 
grantees, are obliged to comply with applicable Federal requirements as 
a condition of their financial assistance. To assist tribes with 
understanding these requirements and the recent program changes, FTA 
conducted three Tribal Transit Technical Assistance Workshops in FY 
2013 and expects to continue similar offerings in FY 2014. In addition, 
FTA will begin assessments to review compliance and provide specific 
technical assistance for tribes beginning in FY 2015; these reviews 
will include an assessment of compliance areas pursuant to the Master 
Agreement, a site visit and technical assistance from FTA and its 
contractors. FTA will post information about upcoming workshops to its 
Web site and will disseminate information about the reviews through its 
Regional offices. FTA has regional tribal transit liaisons in each of 
the FTA Regional offices that are available to assist tribes with 
applying for and managing FTA grants. A list of regional tribal transit 
liaisons can be found on FTA's Web site at http://www.fta.dot.gov/13094_15845.html. Tribes are encouraged to work directly with their 
regional tribal transit liaison.

[[Page 13476]]

    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 about National RTAP, contact Lorna Wilson, Program Manager 
at 202-366-0893 or visit the National RTAP Web site http://www.nationalrtap.org.
    For more information about the Tribal Transit Program, contact Elan 
Flippin, Program Manager at 202-366-3800 or elan.flippin@dot.gov.

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

    MAP-21 amended the section 5312: Research; Innovation and 
Development; and, Demonstration, Deployment and Evaluation to include 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 established a structured 
process for applications, evaluations, and reporting for the research 
programs. For more information contact Vincent Valdes, Office of 
Research, Demonstration and Innovation, at (202) 366-3052 or 
Vincent.valdes@dot.gov.
1. FY 2014 Funding Availability
    The FY 2014 Appropriations provides a total of $40,000,000 for 
section 5312. Of this amount, $30,000,000 is allocated for the Low or 
No Emissions Vehicle Deployment Program.
2. Basis for Allocation
    Topical areas are based on the Department's Strategic Goals and 
projects are generally selected through Notices of Funding Availability 
(NOFAs).
3. 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 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.
4. Period of Availability
    Except for the Low or No Emission Vehicle Deployment Program, FTA 
establishes the period in which the funds must be obligated to the 
project. If the funds are not obligated within that period of time, 
they revert to FTA for reallocation under the program. 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.
5. Other Program Information
    Requests for research proposals will be published in Grants.gov. 
The FY 2013 Low and No Emissions discretionary competition is currently 
underway; the NOFA soliciting project proposals was published on 
January 9, 2014 and proposals are due March 10, 2014. FTA may use this 
NOFA to select projects for FY 2014 funding. Prospective applicants can 
find more information on FTA's NOFA page: http://www.fta.dot.gov/grants/13077.html.

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

    The Transit Cooperative Research Program (TCRP) funds a variety of 
applied research efforts for practitioners in the transit industry. 
TCRP is the cooperative effort of three organizations: the FTA; the 
National Academies, acting through the Transportation Research Board 
(TRB); and the Transit Development Corporation, Inc. (TDC), a nonprofit 
educational and research organization established by the American 
Public Transportation Association (APTA).
1. FY 2014 Funding Availability
    The FY 2014 Appropriations provides a total of $3,000,000 for this 
section.
2. Basis for Allocation
    TCRP issues annual calls for problem statements. For more 
information and past reports see www.tcrponline.org.
3. Requirements
    Funds are allocated directly to the Transportation Research Board 
at the National Academies of Sciences. For application requirements for 
this program, please see www.tcrponline.org.
4. Period of Availability
    The Transportation Research Board establishes the period in which 
funds must be obligated to a project.

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

    This section allows FTA to provide technical assistance to 
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 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 Vincent Valdes, Office of Research, Demonstration and 
Innovation, at 202-366-3052 or vincent.valdes@dot.gov.
1. FY 2014 Funding Availability
    The FY 2014 Appropriations provides a total of $3,000,000 for this 
section.
2. Basis for Allocation
    FTA will allocate funds based on identified technical assistance 
and standards needs for the transit industry and generally selected 
through a competitive process.
3. 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.

[[Page 13477]]

4. Period of Availability
    FTA establishes the period in which funds must be obligated to a 
project. If the funds are not obligated within that period of time, 
they revert back to FTA for reallocation under the program.
5. Other Program Information
    Requests for proposals will be published in Grants.gov.

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

    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 is authorized under section 5322(d). 
The institute is authorized to develop training and education programs 
related to topics in public transportation. For more information 
contact Vincent Valdes, Office of Research, Demonstration and 
Innovation, at (202) 366-3052 or vincent.valdes@dot.gov.
1. FY 2014 Funding Availability
    The FY 2014 Appropriations provides $2,000,000 for this section, 
excepting 5322(d), of which $5,000,000 is available for a national 
transit institute.
2. Basis for Allocation
    FTA will allocate funds based on identified workforce development 
and training needs, as well as by an innovative workforce development 
competition or through the contracting process.
3. 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.
4. Period of Availability
    FTA establishes the period in which funds must be obligated to a 
project. If the funds are not obligated within that period of time, 
they revert back to FTA for reallocation under the program.
5. Other Program Information
    Requests for proposals will be published in Grants.gov.

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

    MAP-21 established a public transportation Emergency Relief Program 
to fund public transportation expenses incurred as a result of an 
emergency or major disaster. No funding was provided in the FY14 
Consolidated Appropriations Act for this program. Eligible expenses 
include emergency operating expenses, such as evacuations, rescue 
operations, and expenses incurred to protect assets in advance of a 
disaster, 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.
    The Disaster Relief Appropriations Act of 2013 made $10.9 billion 
available for the Emergency Relief program in response to Hurricane 
Sandy, which struck several metropolitan areas between Washington, DC 
and coastal New Hampshire in late October 2012. FTA has announced and 
allocated funding for affected transit agencies within the declared 
disaster area through a series of Federal Register notices during 2013. 
While Congress did not provide additional non-Sandy funding for this 
program in FY 2014, in the event of a declared emergency or major 
disaster recipients may use funds apportioned under sections 5307 and 
5311 for emergency purposes.
    In order for an agency to be eligible for Emergency Relief funding, 
the agency must have been affected by an emergency as defined under 
section 5324. 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 Assistance Act.'' 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. If funding is 
available under the Emergency Relief program for a public 
transportation system affected by an emergency, agencies are directed 
to seek emergency relief from FTA rather than FEMA.
    If a recipient has been affected by an emergency or major disaster, 
the recipient should contact the appropriate FTA regional office as 
soon as practicable to determine whether Emergency Relief funds are 
available, and to notify it that it plans to seek reimbursement for 
emergency operations and/or repairs that have already taken place or 
are in process. If Emergency Relief funds are unavailable the recipient 
may seek reimbursement from FEMA. Properly documented costs for which 
the grantee has not received reimbursement from FEMA 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 published an interim final rule for the Emergency Relief 
program on March 29, 2013 (49 CFR part 602, 78 FR 19136) and will 
publish a final program regulation later in 2014. Additional 
information about the Emergency Relief program and FTA's response to 
Hurricane Sandy is available on the FTA Web site at www.fta.dot.gov/emergencyrelief.
    For more information on the Public Transportation Emergency Relief 
Program or FTA's response to Hurricane Sandy, contact Adam Schildge, 
Office of Program Management, at 202-366-0778 or adam.schildge@dot.gov. 
For questions regarding the Interim Final Rule or the final program 
regulation, 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

[[Page 13478]]

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.
    FTA is implementing its new safety authority in consultation with 
the transit community and the U.S. Department of Transportation's (DOT) 
Transit 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. FTA 
published an Advanced Notice of Proposed Rulemaking (ANPRM) on the 
National Public Transportation Safety Program and the National Transit 
Asset Management Program on October 3, 2013, and asked several 
questions on how to implement the safety requirements of MAP-21 (78 FR 
61251). FTA plans to issue several separate rulemakings to implement 
these requirements of MAP-21.
    FTA is also working with States with rail fixed guideway public 
transportation systems (rail transit systems) to develop and carry out 
State Safety Oversight (SSO) Programs consistent with the requirements 
of MAP-21. Section 5329(e)(6) of 49 U.S.C. provides funding to support 
such activities. As mentioned in Section IV.C.5.ii in this notice, 
under MAP-21, there is a 0.5 percent take-down from the section 5307 
Urbanized Area Formula grant program that provides the funding to be 
apportioned to States for SSO program activities. In a separate Federal 
Register notice, FYs 2013 and 2014 funds will be apportioned by a 
formula established by FTA per 49 U.S.C. 5329(e)(6)(B)(i) to States 
with rail transit 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 their SSOPs that meet MAP-21 requirements.
    For more information about the Public Transportation Safety 
Program, contact Angela Dluger, Office of Safety and Oversight, at 
(202) 366-5303 or Angela.Dluger@dot.gov.

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

    The State of Good Repair (SGR) program provides capital assistance 
for maintenance, rehabilitation, and replacement projects of existing 
fixed guideway and high intensity motorbus systems to maintain a state 
of good repair. Additionally, SGR grants are eligible for developing 
and implementing Transit Asset Management plans. 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, bus rapid transit, and 
fixed-route bus services operating on high-occupancy-vehicle (HOV) 
facilities.
    This program replaces and modifies elements of the fixed guideway 
modernization program (section 5309). Projects, including new 
maintenance facilities or maintenance equipment, that solely expand 
capacity or service are not eligible projects. The SGR program is 
intended to fund projects to maintain, replace or rehabilitate existing 
fixed guideway and high intensity motorbus systems.
    FTA is in the process of developing a program circular that will be 
published for notice and comment. In the meantime, recipients should 
review the sections below for interim program guidance combined with 
the previously published interim guidance contained in the FY 2013 
Apportionment Notice, dated October 16, 2012, and FTA Circular 9300.1B, 
Capital Investment Program Guidance and Application Instructions, dated 
November 1, 2008 until a final circular is published. For more 
information about the SGR program, contact Eric Hu, Office of Transit 
Programs, at (202) 366-0870 or eric.hu@dot.gov.
1. FY 2014 Funding Availability
    The FY 2014 Appropriations provides a total of $2,165,900,000 for 
the SGR program. After a 0.75 percent oversight takedown from the 
amount apportioned to the fixed guideway tier, the total amount 
allocated for the SGR program is $2,150,118,711, as shown in the table 
below.

           State of Good Repair Formula Grant Program--FY 2014
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.................................  \a\ $2,165,900,000
Oversight Deductions................................         -15,781,289
                                                     -------------------
Total Apportioned...................................       2,150,118,711
------------------------------------------------------------------------
\a\ Total Appropriation includes $2,104,171,850 for the High Intensity
  Fixed Guideway tier and $61,728,150 for the High Intensity Motorbus
  tier.

    Table 11 shows the FY 2014 SGR Program formula apportionments to 
eligible UZAs.
2. Basis for Allocation
    FTA allocates SGR program funds according to a statutory formula. 
Funds are apportioned to UZAs with fixed guideway and high intensity 
motorbus systems that have been in operation for at least seven years. 
This means that only segments of fixed guideway and high intensity 
motorbus systems that entered into revenue service on or before 
September 30, 2006 are included in the formula, as identified in the 
NTD.
    The law requires that 97.15 percent of the total amount authorized 
for the SGR program be apportioned to UZAs with ``high intensity fixed 
guideway'' systems. The apportionments to UZAs with ``high intensity 
fixed guideway'' systems are determined by two equal elements: (1) The 
proportion a recipient would have received of the fiscal year 2011 
apportionment for 49 U.S.C. 5337, as it then existed, if calculated 
using the current version of 49 U.S.C. 5336(b)(1) and the current 
definition of ``fixed guideway'' at 49 U.S.C. 5337(a); (2) the 
proportion of vehicle revenue miles of an UZA to the total vehicle 
revenue miles of all UZAs and the proportion of directional route miles 
of an UZA to the total directional route miles of all UZAs. High 
Intensity Motorbus systems will receive the remaining 2.85 percent of 
the total amount authorized for the SGR program, and the apportionments 
to UZAs are based on vehicle revenue miles and directional route miles.
    Vehicle revenue miles and directional route miles that are 
attributable to an UZA must be placed in revenue service at least 7 
years before the first day of the fiscal year. FTA will apportion 
section 5337 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 UZA and provide split 
letters to the FTA. FTA can make grants to direct recipients after sub-
allocation of funds.
3. Requirements
    FTA is in the process of updating the program circular to 
incorporate changes resulting from MAP-21. Until a final program 
circular is issued, grantees can utilize program guidance and 
requirements found in this notice along with the interim guidance 
published in the Federal Register on October 16, 2012 (See 77 FR 
63669), combined with the FTA circular formerly used for the Fixed 
Guideway Modernization

[[Page 13479]]

Program: FTA Circular 9300.1B, Capital Investment Program Guidance and 
Application Instructions, dated November 1, 2008.
    In addition to this program guidance, all recipients will need to 
certify that they will comply with the forthcoming rule issued under 
section 5326 for the Transit Asset Management plan, and SGR projects 
will need to 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.
    While funds are apportioned based only on fixed guideway and high 
intensity motorbus segments that have been in operation seven years or 
longer, a recipient may use the funds apportioned to it for eligible 
maintenance, replacement, and rehabilitation projects on any part of 
its existing fixed guideway system.
    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.
    Allowable activities within eligible replacement projects include 
the replacement of older features with new ones. Allowable activities 
within eligible rehabilitation projects include the incorporation of 
current design standards and additional features required by Federal 
law. Equipment, vehicles, and facilities to be replaced must have 
reached or exceeded its minimum useful life to be eligible for SGR 
funds.
    In addition to replacement and rehabilitation, new maintenance 
facilities or maintenance equipment are eligible if needed to maintain 
the existing fixed guideway system or equipment in a state of good 
repair. Also, although not explicitly listed above, preventive 
maintenance activities are eligible.
    FTA will permit expansion of capacity within eligible replacement 
projects to meet current or projected short-term service needs (e.g., 
replacing a maintenance facility with a larger facility, or replacing a 
bus with a larger bus). For any expansion elements included in a 
replacement project, the grantee will need to address how the project 
meets current or short term service levels. FTA will review the 
reasonableness of such expansion elements when reviewing the grant.
4. Period of Availability
    The SGR funds apportioned in this notice are available for 
obligation during FY 2014 plus three additional years. Accordingly, 
funds apportioned in FY 2014 must be obligated in grants by September 
30, 2017. Any FY 2014 apportioned funds that remain unobligated at the 
close of business on September 30, 2017 will revert to FTA for 
reapportionment under the SGR Program.

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

    MAP-21 established 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 transportation, including those 
providing services open to a segment of the general public, as defined 
by age, disability, or low income.
    FTA is in the process of developing a program circular that will be 
published for notice and comment. In the meantime, recipients should 
review the below sections for interim program guidance combined with 
the previously published interim guidance contained in the FY 2013 
Apportionment Notice, dated October 16, 2012, and FTA Circular 9300.1B, 
Capital Investment Program Guidance and Application Instructions, dated 
November 1, 2008 until a final circular is published. 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. FY 2014 Funding Availability
    The FY 2014 Appropriations provides a total of $427,800,000 for the 
Bus and Bus Facilities program. After the take-down for the States and 
Territories (National Distribution), $362,300,000 is available to be 
apportioned to the UZAs, as shown below.

                     Bus and Bus Facilities--FY 2014
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation....................................     $427,800,000
State and Territory Allocation.........................  ...............
                                                        ----------------
  Total Apportioned....................................     $362,300,000
------------------------------------------------------------------------

    Table 12 shows the FY 2014 Bus and Bus Facilities formula 
apportionments to States, Territories, and UZAs.
2. Basis for Allocation
    Funds are apportioned according to a statutory formula. However, 
State and Territories (including the District of Columbia and Puerto 
Rico) receive a fixed allocation before FTA applies the formula. This 
fixed allocation, referred to as the National Distribution allocation, 
provides each State approximately $1.25 million and each territory 
$500,000. These funds are available for use anywhere in the State or 
Territory. The remainder of the funding is apportioned for UZAs based 
on population, vehicle revenue miles and passenger miles and is 
specifically for use in UZAs.
    For large UZAs, the Designated Recipient(s) work with interested 
parties, including the MPO, to allocate amounts among eligible 
subrecipients. The Designated Recipient in consultation with interested 
parties should determine the subarea allocation fairly and rationally 
through a process based on local needs.
    Pursuant to section 5339(c)(2), except for the funds set aside for 
distribution to each state, funds available to carry out section 5339 
are apportioned consistent with the formula set forth in section 5336 
other than subsection (b). Pursuant to section 5336(e), the Governor 
exercises the authority to allocate section 5339 formula apportionments 
to all small UZAs within the State--including those that lie within the 
planning areas of MPOs serving TMAs. Federal law clearly states that it 
is up to the State to determine the distribution method for section 
5339 funds among small UZAs, and inclusion of small UZAs within the 
planning area of an MPO that serves a transportation management area 
(TMA) does not change the status of those small UZAs. They are still 
small UZAs and subject to the Governor's allocation. There is no legal 
prohibition to the Governor allocating the apportioned funds through 
competition. Regardless of how the State decides to allocate the 
section 5339 bus funds, the MPO, the State, and the transportation 
operators are

[[Page 13480]]

reminded that, with exceptions not relevant in this case, projects not 
included in a federally-approved Statewide Transportation Improvement 
Program (STIP) will not be eligible to receive those program funds. 
(See 23 CFR 450.330(d)).
3. Requirements
    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. While 
bus rehabilitation activities (e.g. rebuilds to extend the useful life) 
are eligible, preventive maintenance and mid-life overhauls are not 
eligible under this program. The grant requirements of section 5307, 
such as the requirement for Department of Labor Certification, apply to 
recipients of grants made under this section.
    Section 5339 limits eligible direct (grant) recipients under this 
program to the Designated Recipients in large UZAs and States for all 
areas under 200,000 in population (small UZAs and rural areas). States 
are expected to be the grant recipient for the National Distribution 
amounts, unless the funds are transferred to a 5307 recipient. Please 
see additional guidance for permissible transfers in ``Other Program 
Information'' section below.
    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 
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.
    FTA is in the process of developing a circular for this formula 
program, which will be made available for public comment. In the 
meantime, grantees can utilize program guidance and requirements found 
in this notice along with the interim guidance published in the Federal 
Register on October 16, 2012 (See 77 FR 63669), combined with the FTA 
circular for the former discretionary Bus program, which can be found 
in FTA Circular 9300.1B, Bus and Bus Facilities Instructions.
4. Period of Availability
    The Bus and Bus Facilities Formula Program funds apportioned in 
this notice are available for obligation during FY 2014 plus three 
additional years. Accordingly, funds apportioned in FY 2014 must be 
obligated in grants by September 30, 2017. Any FY 2014 apportioned 
funds that remain unobligated at the close of business on September 30, 
2017 will revert to FTA for reapportionment under the Bus and Bus 
Facilities Formula Program.
5. Other Program Information
    The only allowable transfer provision for these program funds to 
another FTA program applies to the National Distribution allocation. 
The Governor of a State may transfer any part of the State's National 
Distribution amounts to supplement funding under the rural areas 
(section 5311) or urbanized areas (5307) formula programs. If 
transferred to a 5307 direct recipient (in a large or small UZA), FTA 
will permit the recipient to apply directly for the funds in a 5307 
grant. However, the funds can only be used for purposes eligible under 
this section.
    As for the funding apportioned by formula, for small UZAs, the 
Governor has flexibility to allocate the funds among the small UZAs to 
meet the capital bus needs in those areas.

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 
continues to publish single UZA and rural apportionments that show the 
total amount for 5307 and 5311 programs that includes apportionments 
these programs formulas together with section 5340.
1. FY 2014 Funding Availability
    The FY 2014 Appropriation provides $525,900,000 to be apportioned 
using the formula factors prescribed for Growing States and High 
Density States set forth in section 5340.
2. Basis for Allocation
    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 UZA allocation and a non-UZA allocation on 
the basis of the percentage of each State's 2010 Census population that 
resides in UZA and non-UZA areas. Urbanized areas receive portions of 
their State's urbanized area allocation on the basis of the 2010 Census 
population in that UZA relative to the total 2010 Census population in 
all UZAs in the State. These amounts are added to the UZA'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 UZAs 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). 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 UZAs within the States on the 
basis of an individual UZA's population relative to the population of 
all UZAs in that State.
    FTA cannot provide unit values for the Growing States or High 
Density formulas because the apportionments to individual States and 
UZAs are based on their relative population data, rather than on a 
national per capita basis.

[[Page 13481]]

S. Washington Metropolitan Area Transit Authority Grants

    The FY 2014 Appropriations provides $150,000,000 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 2014 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 pre-requisite 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 until September 30, 2016 for 
capital assistance under all formula programs, so long as the 
conditions described below are met. Historically, FTA provides pre-
award authority until the end of the authorization period and then 
extends it in one year increments. However, given the short 
authorization period and the need for continued pre-award authority, 
FTA is extending this period for two additional years beyond the 
authorization. Recipients entering into any contracts that assume 
federal funding beyond September 30, 2016, should contact their 
regional office to request a letter of no prejudice (see section 
below). FTA provides pre-award authority for planning and operating 
assistance under the formula programs without regard to the period of 
the authorization. Additional information pertaining to specific uses 
of pre-award authority are 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 the most current version of FTA Circular 9040.1, Chapter 6). 
Designated Recipients for section 5310 have pre-award authority for the 
ten percent of 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; (2) for property acquisition, demolition, construction, and 
acquisition of vehicles, equipment, or construction materials for 
projects that qualify for a categorical exclusion pursuant to 23 CFR 
771.118(c), the date of the authorization of formula funds or the date 
of the announcement of the discretionary allocation of funds for the 
project; and (3) for property acquisition, demolition, construction, 
and acquisition of vehicles, equipment, or construction materials for 
projects that require a categorical exclusion pursuant to 23 CFR 
771.118(d), an environmental assessment, or an environmental impact 
statement, the date that FTA completes the environmental review process 
required by NEPA and its implementing regulations by its issuance of a 
Section 771.118(d) categorical exclusion determination, a Finding of No 
Significant Impact (FONSI), or a Record of Decision (ROD). For projects 
that qualify for a categorical exclusion pursuant to 23 CFR 771.118(c), 
if a project is subsequently found not to qualify for this CE, it will 
be ineligible for FTA assistance. FTA recommends that any grant 
applicant that is concerned that a larger project may not clearly 
qualify for the CEs at 23 CFR 771.118(c)(8), (c)(9), (c)(10), (c)(12), 
and (c)(13), contact FTA's Regional Office for assistance in 
determining the appropriate environmental review process and level of 
documentation necessary before incurring costs for property 
acquisition, demolition, construction, and acquisition of vehicles, 
equipment, or construction materials.
    iii. New Starts, Small Starts and Core Capacity Projects. The pre-
award authority described above does not apply to section 5309 Fixed 
Guideway Capital Investment Grant Program (CIG) projects. Specific 
instances of pre-award authority for CIG Program projects are described 
in paragraph 4 below. If pre-award authority has not been granted for a 
particular type of work on a CIG

[[Page 13482]]

program project, the project sponsor must obtain a written Letter of No 
Prejudice (LONP) from FTA before starting that work. 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.
    iv. 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 
initial Federal Financial 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 (DBE)) must be followed for projects 
in which Federal funding will be sought in the future. Failure to 
follow any such requirements could make the project ineligible for 
Federal funding. In short, this increased administrative flexibility 
requires a grantee to make certain that no Federal requirements are 
circumvented through the use of pre-award authority.
    x. Recipients exercising pre-award authority to update, repair, or 
modernize stations, must be mindful that the DOT ADA regulations at 49 
CFR 37.161(b) provide that an accessibility feature must be repaired 
promptly if it is damaged or out of order. When the accessibility 
feature is out of order, a Recipient must take reasonable steps to 
accommodate individuals with disabilities who would otherwise use the 
feature. The rule does not, and probably could not, state a time limit 
for making particular repairs, given the variety of circumstances 
involved. However, repairing accessible features must be made a high 
priority. Allowing obstructions or out of order accessibility equipment 
to persist beyond a reasonable period of time would violate this Part, 
as would mechanical failures due to improper or inadequate maintenance. 
Failure of the entity to ensure that accessible routes are free of 
obstruction and properly maintained, or failure to arrange prompt 
repair of inoperative elevators, lifts, or other

[[Page 13483]]

accessibility-related equipment, would also violate this part.
    xi. 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.
    xii. Recipients exercising pre-award authority are expected to 
comply with the DBE regulations. The Department of Transportation's DBE 
program helps small businesses owned by socially and economically 
disadvantaged individuals to compete in the marketplace, and is 
designed to support the people who create jobs--our nation's 
entrepreneurs. When procuring vehicles, recipients are reminded of the 
requirements of 49 CFR 26.49(a), which requires ``if you are a transit 
vehicle manufacturer, you must establish and submit for FTA's approval 
an annual overall percentage goal'' and ``as a transit vehicle 
manufacturer, you may make the certification required by this section 
if you have submitted the goal this section requires and FTA has 
approved it or not disapproved it.'' Recipients are advised that it is 
not enough to accept a certification stating that ``FTA has not 
disapproved'' of a TVMs DBE goal. Rather, Recipients must ensure that 
the TVM has submitted a goal to FTA and FTA has either approved it or 
not disapproved it. A recipient may request from FTA verification that 
a TVM has submitted a DBE goal to FTA for its review. Please email your 
Regional Civil Rights Officer regarding your request and FTA will 
respond via email within five business days. Furthermore, to assist 
with TVM certification compliance, FTA maintains a web posting of all 
certified TVMs located at http://www.fta.dot.gov/12326_5626.html. 
Finally, FTA takes the position that failure by a Recipient to verify a 
TVM's eligibility to bid on an FTA-assisted contract prior to award 
cannot be cured after award of the contract and will likely result in 
FTA declining to provide Federal funding for the vehicle procurement.
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 Grants (CIG) 
program funds 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--PD and construction. 
After receiving a letter from the project sponsor requesting entry into 
the PD 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 as 
needed 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 construction grant award.
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 delaying demolition 
poses a potential fire safety hazard or other hazard to the community 
in which it is located, or is susceptible to

[[Page 13484]]

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 maximum 
sensitivity to the circumstances of the people so affected.
ii. 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, which, by way of this notice, has been extended until 
September 30, 2016; however, the LONP is limited to a five-year period, 
unless otherwise authorized in the LONP. Recipients preparing to enter 
into contracts that assume federal funding beyond September 30, 2016, 
should contact their regional office to pursue a 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 2014 Annual List of Certifications and Assurances

    The full text of the FY 2014 Certifications and Assurances was 
published in the Federal Register on February 1, 2014 and is available 
on the FTA Web site and in TEAM-Web. The FY 2014 Certifications and 
Assurances

[[Page 13485]]

must be used for all grants and cooperative agreements awarded in FY 
2014. All recipients with active projects are required to sign the FY 
2014 Certifications and Assurances within 90 days after its 
publication.

D. Civil Rights Requirements

1. Americans With Disabilities Act (ADA)
    The ADA Standards issued by the Department of Transportation (DOT) 
apply to facilities used by state and local governments to provide 
designated public transportation services, including bus stops and 
stations, and rail stations. Other types of facilities covered by the 
ADA are subject to similar ADA Standards issued by the Department of 
Justice. Both the DOT and DOJ standards are based on the Board's ADA 
Accessibility Guidelines. DOT's ADA Standards (2006) are consistent 
with the Access Board's updated ADA (and ABA) guidelines, but includes 
a few additional requirements concerning:

 Location of Accessible Routes (206.3)
 Detectable Warnings on Curb Ramps (406.8)
 Bus Boarding and Alighting Areas (810.2.2)
 Rail Station Platforms (810.5.3)

    When constructing new facilities, sixty percent of all public 
entrances to the facility must be accessible. If there are only two 
entrances, both must be accessible. (See DOT ADA Standard 206.4.1.) For 
rail projects, no flange way gap can be greater than 2.5'' where 
passenger circulation paths cross tracks at grade (i.e. a street-level 
pedestrian crossing over streetcar tracks). (See DOT ADA Standard 
810.10.) And, accessible routes that coincide with or are located in 
the same area as general circulation paths and elements such as ramps, 
elevators, and fare vending and collection must be placed to minimize 
the distance that wheelchair users and other persons who cannot climb 
steps must travel in comparison to the general public. (See DOT ADA 
Standard 206.3.) In addition, curb ramps must have detectable warnings 
(see DOT ADA Standard 406.8.) and bus boarding and alighting areas must 
be in compliance with the ADA-ABA Guidelines (Section 810.2), which 
address surfaces (sturdy), dimensions (96'' long x 60'' wide); 
connection to sidewalks, streets and pedestrian paths; slope (not 
steeper than 1:48); signs; and public address systems. (See DOT ADA 
Standard 810.2.) Rail station platforms must be coordinated with the 
vehicle floor height. Where vehicles are boarded from sidewalks or 
street-level, low-level platforms are permitted (see DOT ADA Standard 
810.5.3). For commuter rail stations (and stations serving intercity 
rail systems), where platform to railcar coordination cannot be 
achieved, wheelchair users must have access to all accessible cars 
available to passengers without disabilities in each train using the 
station; FTA (and in some cases, FRA) approval must be granted for any 
plan to provide such access that does not include carborne lifts. (See 
DOT ADA Regulation 49 CFR 37.42.) Finally, vehicles purchased by 
recipients must be accessible as well as remanufactured or overhauled 
vehicles, (see DOT ADA Regulation 49 CFR 37.75; DOT ADA Regulation 49 
CFR 37.83; and DOT ADA Regulation 49 CFR 37.89), and if a 
remanufactured or overhauled vehicle will not be accessible, submit 
information to FTA demonstrating that the structural integrity of the 
vehicle would be significantly compromised if made accessible by 
including appropriate structural engineering analysis. (See DOT ADA 
Regulation 49 CFR 37.75(c); DOT ADA Regulation 49 CFR 37.83(c) and DOT 
ADA Regulation 49 CFR 37.89(c).)
2. Title VI of the Civil Rights Act of 1964
    The U.S. DOT's Title VI implementing regulations are found in 49 
CFR Part 21. FTA's Title VI Circular (4702.1B) provides guidance on 
carrying out the regulatory requirements. For recipients in urbanized 
areas of 200,000 or more in population and with 50 or more fixed-route 
vehicles in peak service, please be advised that under normal 
circumstances, the recipient must conduct a service equity analysis for 
all service changes that meet the recipient's definition of ``major 
service change'' prior to implementing the service change. Recipients 
also must conduct a fare equity analysis for all fare increases or 
decreases prior to implementing a fare change. The authorizations for 
FTA's programs provided by MAP-21 end with FY 2014. While it is not 
unusual for authorizations to end at the end of a fiscal year, and this 
has occurred many times in the past, because of the current status of 
balances in the Mass Transit Account of the Highway Trust Fund, there 
is a greater degree of uncertainty about the nature and timeliness of 
enactment of a reauthorization of FTA's programs. In the event the 
continuation of Federal funding comes into question on or before 
September 30, 2014, and a recipient identified above must cut service 
or increase fares abruptly, FTA expects the recipient to conduct the 
necessary equity analyses concerning the service cuts and/or fare 
increases, including public outreach. However, the equity analyses may 
be conducted after the service cut or fare increase takes effect. The 
recipient must make every effort to conduct the equity analyses as 
expeditiously as possible after the service cuts or fare increases and 
implement any mitigation measures quickly should the equity analysis 
identify a disparate impact or disproportionate burden. In addition, 49 
CFR 21.5(b)(3) provides, ``In determining the site or location of 
facilities, a recipient or applicant may not make selections with the 
purpose or effect of excluding persons from, denying them the benefits 
of, or subjecting them to discrimination under any program to which 
this regulation applies, on the grounds of race, color, or national 
origin; or with the purpose or effect of defeating or substantially 
impairing the accomplishment of the objectives of the Act or this 
part.'' Further, 49 CFR Part 21, Appendix C, Section (3)(iv) provides, 
``The location of projects requiring land acquisition and the 
displacement of persons from their residences and businesses may not be 
determined on the basis of race, color, or national origin.'' FTA's 
Title VI Circular provides the following limited exceptions to the 
above requirement:
    For purposes of this requirement, ``facilities'' do not include bus 
shelters, as these are transit amenities and are covered in Chapter IV 
[of the Title VI circular], nor does it include transit stations, power 
substations, etc., as those are evaluated during project development 
and the NEPA process. Facilities included in this provision include, 
but are not limited to, storage facilities, maintenance facilities, 
operations centers, etc.

E. FHWA ``Flex Funding'' and Consolidated Planning Grants

    Certain Federal-aid highway program funds under the title 23 may be 
transferred or ``flexed'' to FTA for eligible for Title 49, Chapter 53 
purposes. These programs include the Surface Transportation Program (23 
U.S.C. 133) (STP), the Transportation Alternatives Program (23 U.S.C. 
101) (TAP), the Congestion Mitigation and Air Quality Improvement 
Program (23 U.S.C. 149) (CMAQ), the National Highway Performance 
Program (23 U.S.C. 119) (NHPP).
1. Transferring Title 23 Funds From FHWA to FTA
    Section 104(f) of title 23 U.S.C. allows FHWA, at the request of 
the State, to transfer funds for transit capital projects and eligible 
operating activities that have been designated as part of the

[[Page 13486]]

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). As noted in the 
CMAQ paragraph below, requests to transfer CMAQ funding from FHWA to 
FTA must also clearly identify the amount to be used for operating 
assistance.
    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 as 
described in Section III.B above.
    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, in most instances, they become 
available to the State for any eligible capital transit project under 
the program to which they were transferred.
2. 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 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.
    For further guidance, please see FHWA Order, issued on August 12, 
2013 on ``Fund Transfers to Other Agencies and Among Title 23 
Programs'', which is available at http://www.fhwa.dot.gov/legsregs/directives/orders/45511.pdf.
3. CMAQ Funds for Operating Assistance
    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 achieve the goals of the Clean Air Act. 
Funding is available for projects that 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 
may be eligible for CMAQ funds. Under limited circumstances, funds may 
also be used for operating assistance. Refer to the CMAQ Interim 
Guidance, as well as the discussion in Section III.B above, for 
additional information.
    Going forward, all CMAQ transfer requests initiated by grantees to 
the MPO and State, and ultimately processed from FHWA to FTA, must 
clearly identify whether the CMAQ funds will be used for operating 
assistance or capital projects. Grantees must clearly identify the 
operating assistance amounts in the grant budget and, also, when 
requesting expenditures in ECHO-Web.
4. Consolidated Planning Grants
    FTA and FHWA planning funds under both the Metropolitan Planning 
and State Planning and Research Programs can be consolidated into a 
single consolidated planning grant, 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.

[[Page 13487]]

    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 FHWA's Order 
dated August 12, 2013, on ``Fund Transfers to Other Agencies and Among 
Title 23 Programs'', which is available at http://www.fhwa.dot.gov/legsregs/directives/orders/45511.pdf.
    For further information on CPGs, contact Nancy Grubb, Office of 
Budget and Policy, FTA, at (202) 366-1635.

F. Grant Application Procedures

    During FY 2014, 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 2014. In April 2013, FTA also conducted TEAM training 
for grantees to prepare MAP-21 grants; copies of the materials from 
that training are available on the TEAM home page.
    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. As noted in Section III of this notice, FTA 
will continue to use its TEAM to award and manage all grants, 
cooperative agreements, and other funding instruments throughout FY 
2014. However, beginning in October 2014 FTA expects to award and 
manage grants through the Transit Award and Management System (TrAMS) 
its successor to TEAM. Grantees should review Section III of this 
notice for more information on TrAMS. As noted earlier, to facilitate 
the transition to the TrAMS, recipients are asked to have all grant 
applications submitted in TEAM by June 30, 2014 so that FTA has 
adequate time to award the grant by the end of FY 2014. FTA cannot 
guarantee that applications not awarded in TEAM by the end of FY 2014 
will be migrated into TrAMS.
    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:
     Recipient's contact information, including Dun and 
Bradstreet Data Universal Numbering System (DUNS), is correct and up-
to-date. If requested by phone (1-866-705-5711), DUNS is provided 
immediately. If your organization does not have one, you will need to 
go to the Dun & Bradstreet Web site at http://fedgov.dnb.com/webform to 
obtain the number.
     Recipient has registered in the System for Award 
Management (SAM) and its registration is current. (https://www.sam.gov)
     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.
     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 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. At this time in FTA's 
electronic grant system, separate grants are required for each program, 
unless a program permits an administrative transfer of the funds to 
another program. For example, since there are no provisions for 
administrative transfers from or to section 5310 or 5337, these program 
funds must be applied for in separate grants from each other and from 
other programs, such as section 5307 and section 5339.
2. Grant Budgets--SCOPE and ALI Codes; Financial Purpose 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. 
Similarly, for section

[[Page 13488]]

5310 grants made with FY 2013 and later funds, FTA will continue to use 
the SCOPE established for ``new-freedom'' type projects (647-00).
    In addition to SCOPE and ALI codes, FTA uses financial purpose 
codes (FPCs) to identify specific funding uses and track the actual 
obligations and expenditures of funds to a specific use, such as 
capital, planning, or operating. FPCs are identified at the time 
program funds are reserved and must be identified when a grantee 
requests a draw-down in ECHO-web. The available FPCs differ by program, 
based on the programs eligibility. For example, in a grant for a 
capital-only program (e.g. section 5337 or 5339), the funds would be 
obligated using FPC 00. Grantees should be aware that several new FPCs 
were introduced for MAP-21 grants, particularly for section 5307, 5310, 
and 5311 to track eligible uses like job access and reverse commute 
projects and new-freedom projects. Grantees should pay close attention 
to the FPCs used when their grants are obligated so they use the 
correct FPCs in their ECHO-Web requests.
3. Designated and Direct Recipients, Documentation and Supplemental 
Agreements
    For its formula programs, FTA primarily apportions funds to the 
Designated Recipient in the large UZAs (areas over 200,000), or for 
areas under 200,000 (small UZAs and rural areas), 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 UZAs 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 UZAs 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 UZAs.
    For all other programs, documentation to support existing 
designated recipients for the UZA must also be on file at the time of 
the first application in FY 2014. 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 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 is 
continuing to update 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 August 27, 2012. 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

[[Page 13489]]

projects can result in suspension or close-out of a grant.
    In FY 2014, 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.
    In October of 2013 FTA identified a list of grants that were 
awarded on or prior to September 30, 2010 and have had no funds 
disbursed since September 30, 2012 or have never had a disbursement.
    FTA regional offices will be contacting grant recipients with one 
or more grants that meet this criteria to notify them that FTA intends 
to close the grant and deobligate any remaining funds unless the 
grantee can provide information that demonstrates that the projects 
funded by the grant remain active and the grantee has a realistic 
schedule to expedite completion of the projects funded in the grant.

Therese McMillan,
Deputy Administrator.
[FR Doc. 2014-04759 Filed 3-7-14; 8:45 am]
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