[Federal Register Volume 59, Number 196 (Wednesday, October 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-25160]
[[Page Unknown]]
[Federal Register: October 12, 1994]
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Part IV
Department of Transportation
_______________________________________________________________________
Federal Transit Aministration
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FTA Fiscal Year 1995 Apportionments and Allocations; Notice
DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
FTA Fiscal Year 1995 Apportionments and Allocations
AGENCY: Federal Transit Administration (FTA), DOT.
ACTION: Notice.
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SUMMARY: The Department of Transportation (DOT) and Related Agencies
Appropriations Act, 1995 (Pub. L. 103-331), signed into law by
President Clinton on September 30, 1994, provides fiscal year 1995
appropriations for the Federal Transit Administration's transit
assistance programs. Based upon this Act, this Notice contains a
comprehensive list of apportionments/allocations of the various funding
programs.
This Notice includes the apportionment of fiscal year 1995 funds
for the Urbanized Area Formula and Nonurbanized Area Formula Programs,
the Elderly and Persons with Disabilities Program, the Interstate
Substitute Transit Program (23 U.S.C. 103(e)(4)), the Capital Program
including Fixed Guideway Modernization, the Metropolitan Planning
Program and State Planning and Research Program, based on the 1995 DOT
Appropriations Act and Federal transit laws. This Notice also contains
the allocations for the statutorily required funding for New Starts and
Bus under the Capital Program. Statutory limitations on the use of
operating assistance are also included in this Notice, as well as other
pertinent information.
In addition, an expanded FTA policy regarding pre-award authority
to incur project costs is included in this Notice.
Public Law 103-272, signed by President Clinton on July 5, 1994,
codifies Federal transit laws under title 49, chapter 53 of the United
States Code. This Notice uses the new form of citation followed by the
former Federal Transit Act, as amended (FTA Act), citation in
parenthesis.
FOR FURTHER INFORMATION CONTACT: The appropriate FTA Regional
Administrator for grant specific information and issues; Janet Lynn
Sahaj, Chief, Resource Management and State Programs Division, Office
of Capital and Formula Assistance, (202) 366-2053, for general
information about the Urbanized Area Formula and Nonurbanized Area
Formula Programs, the Elderly and Persons with Disabilities Program,
the Capital Program (formerly Sections 9, 18, 16, 3) or the 23 U.S.C.
103(e)(4) Interstate Substitute Transit Program; or Sam Zimmerman,
Director, Office of Planning, (202) 366-2360, for general information
concerning the Metropolitan Planning and State Planning and Research
Programs (formerly Sections 8 and 26(a)(2)).
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Codification of Federal Transit Laws
II. Background
III. Overview of Appropriations for Grant Programs
A. General
B. Livable Communities Initiative
C. 1996 Summer Olympic Games
D. Project Management Set-Aside
IV. Urbanized Area Formula Program (Formerly Section 9)
A. Total Urbanized Area Formula Apportionments
B. Data Used for Urbanized Area Formula Apportionments
C. Adjustments for Energy and Operating Efficiencies
D. Repayment of Temporary Matching Fund Waivers
E. Urbanized Area Formula Fiscal Year 1995 Apportionments to
Governors
F. Urbanized Area Formula Operating Assistance Limitations
G. Statewide Operating Assistance Limitations
H. Designated Transportation Management Areas
I. Urbanized Area Formula Funds Used for Highway Purposes
V. Nonurbanized Area Formula Program (Formerly Section 18) and Rural
Transit Assistance (RTAP) Program
A. Nonurbanized Area Formula Program
B. RTAP Program
VI. Elderly and Persons with Disabilities Program (Formerly Section
16)
VII. Title 23 Interstate Substitute Transit Program
VIII. Surface Transportation Program ``Flexible'' Funds Used for
Transit Purposes
A. Transfer Process
B. Matching Share for Flexible Funds
C. Other Funds Transferred to FTA
IX. Capital Program (Formerly Section 3)
A. Fixed Guideway Modernization
B. New Starts
C. Bus
X. Unit Values of Data for Urbanized Area Formula and Nonurbanized
Area Formula and Programs, and Fixed Guideway Modernization Formula
XI. Metropolitan Planning and State Planning and Research Programs
(Formerly Sections 8 and 26(a)(2))
A. Metropolitan Planning Urbanized Area Program
B. State Planning and Research Program
C. Data Used for Metropolitan Planning and State Planning and
Research Apportionments
XII. Period of Availability of Funds
XIII. Notice and Pre-Award Authority to Incur Project Costs
A. Background
B. Expanded Coverage
C. Conditions
D. Environmental and Other Requirements
XIV. Electronic Grant Making and Management (EGMM) Initiative:
Fiscal Year 1995 and Beyond
XV. Quarterly Approval of Grants
XVI. Grant Application Procedures
Tables
1. FTA Fiscal Year 1995 Appropriations for Grant Programs
2. FTA Fiscal Year 1995 Urbanized Area Formula Apportionments
(Formerly Section 9)
3. FTA Fiscal Year 1995 Nonurbanized Area Formula Apportionments
(Formerly Section 18) and Rural Transit Assistance Program (RTAP)
Allocations
4. FTA Fiscal Year 1995 Elderly and Persons with Disabilities
Apportionments (Formerly Section 16)
5. FTA Fiscal Year 1995 Interstate Substitute Tranist Apportionments
6. FTA Fiscal Year 1995 Fixed Guideway Modernization Formula
Apportionments
7. FTA Fiscal Year 1995 New Start Allocations
8. FTA Fiscal Year 1995 Bus Allocations
9. FTA Fiscal Year 1995 Metropolitan Planning and State Planning and
Research Apportionments (Formerly Sections 8 and 26(a)(2))
10. Unit Values of Data--FTA Fiscal Year 1995 Urbanized Area Formula
and Nonurbanized Area Formula Programs, and Fixed Guideway
Modernization Formula Apportionments (Formerly Sections 9, 18, and
3)
I. Codification of Federal Transit Laws
On July 5, 1995, President Clinton signed Public Law 103-272, which
codifies Federal transit laws under title 49, chapter 53 of the United
States Code. The enactment of Public Law 103-272 repeals the FT Act
without substantive change, which means that the original meaning of
the FT Act provisions are unchanged by this codification, even though
the new language in some instances differs from that of the FT Act. The
codification includes laws enacted through June 30, 1993. Provisions
enacted after that date, and revisions to title 49, chapter 53, will be
reflected in subsequent legislation now being drafted in Congress. This
Notice accordingly uses the new form of citation followed by the
relevant FT Act citation in parentheses. Listed below are the most
commonly used citations:
------------------------------------------------------------------------
49 U.S.C.
Federal Transit Act Sec. Subject
------------------------------------------------------------------------
Section 3.................... 5309...... Capital Program.
Section 8.................... 5303...... Metropolitan Planning
Program.
Section 9.................... 5307...... Urbanized Area Formula
Program.
Section 13(c)................ 5333(b)... Labor Protection
Certification.
Section 16................... 5310...... Elderly and Persons with
Disabilities Program.
Section 18................... 5311...... Nonurbanized Area Formula
Program.
Section 26(a)(2)............. 5313/5314. State Planning and Research.
------------------------------------------------------------------------
II. Background
Urbanized Area Formula Program funds are apportioned by statutory
formula to urbanized areas and to the Governors to provide capital,
operating and planning assistance in urbanized areas. Nonurbanized Area
Formula Program funds are apportioned by statutory formula to the
States for capital and operating assistance in nonurbanized areas.
Elderly and Persons with Disabilities Program funds are apportioned by
statutory formula to the States to provide capital assistance to
organizations providing transportation service for elderly persons and
persons with disabilities. Interstate Substitute Transit funds are
apportioned by formula to areas that have withdrawn planned interstate
routes. Fixed Guideway Modernization Formula funds are apportioned by
statutory formula to specified urbanized areas for capital improvements
in rail and other fixed guideways. Funds appropriated under the
Metropolitan Planning Program are apportioned by a statutory formula to
the States for allocation by them to Metropolitan Planning
Organizations (MPOs) in urbanized areas or portions thereof.
Appropriated funds under the State Planning and Research Program also
are apportioned to States by a statutory formula. New Start earmarks in
the 1995 DOT Appropriations Act and all Bus fund allocations in its
accompanying Conference Report are also included in this Notice.
III. Overview of Appropriations for Grant Programs
A. General
In fiscal year 1995, the appropriation for the Urbanized Area
Formula and Nonurbanized Area Formula Programs is $2,416,847,844. Of
this amount, 94.50 percent ($2,283,921,213) is made available to the
Urbanized Area Formula Program; and 5.50 percent ($132,926,631) is made
available to the Nonurbanized Area Formula Program. The other program
appropriations contained in this Notice are as follows: $4,612,500 for
the Rural Transit Assistance Program (RTAP); $59,152,156 for the
Elderly and Persons with Disabilities Program; $41,512,500 for the
Metropolitan Planning Program; $8,475,000 for the State Planning and
Research Program; $48,030,000 for the Interstate Substitute Transit
Program; and $1,725,000,000 for the Capital Program. Of the Capital
Program amount, $725,000,000 is for Fixed Guideway Modernization,
$646,670,000 is for New Starts and $353,330,000 is for Bus.
Table 1 displays the amounts appropriated for these programs,
including adjustments and final apportionment/allocation amounts. The
text following this table provides a narrative explanation for the
funding levels and other factors affecting these apportionments/
allocations.
B. Livable Communities Initiative
FTA urges that grantees incorporate to the extent possible the
concepts of ``livable communities'' into the transit and planning
projects funded with Federal assistance being made available by this
Notice and funds transferred from highway programs. The Livable
Communities Initiative recognizes that transit programs can be
instrumental in shaping the nature of community development and
represent an important tool for enhancing the vitality of individual
communities and neighborhoods served by our regional transit systems.
Transit facilities and stations can become energetic local activity
centers providing convenient shopping, business, and educational
opportunities as well as other needed social services like health and
day care. They can serve as focal points for attractive mixed used
development. Transit services, appropriately sized to community needs,
can bind the community together and provide an environmentally
attractive alternative to automobile travel and a safe and affordable
means of transport for those who might otherwise find it difficult to
have full access to community activities.
Livable communities concepts include: (1) Careful coordination of
transit planning with community development planning leading to
neighborhoods where housing, schools, and parks are within easy walking
distance of user-friendly transit that links residents with local
social and economic services and jobs; (2) alternatives to the
automobile such as transit, pedestrian, and bicycle access and
operational improvements such as guaranteed ride home services,
neighborhood shuttles, and user-friendly fare collection systems that
encourage transit use; (3) mixed-use neighborhoods with residential
areas complemented by office and commercial development, green or open
spaces, and public services (also transit facilities such as major bus
stops or train stations are designed to include , other enterprises
that are useful to transit passengers, e.g., day care centers); (4)
safe, secure, and customer-friendly streets, transit facilities, and
pedestrian walkways; and (5) full community participation in the
decision-making process by neighborhood organizations, small and
minority businesses, and interested individuals.
FTA will soon be issuing guidance on the Livable Communities
Initiative. This initiative will highlight and demonstrate the benefits
of livable communities by providing technical assistance along with a
limited amount of funding for planning and capital grants.
C. 1996 Summer Olympic Games
The 1995 DOT Appropriations Act has made available $16,000,000 for
costs associated with unique transportation requirements of the
Centennial Olympic Games and Paralympic Games, which will take place in
Atlanta, Georgia, in summer 1996. These funds will be used for the
round-trip delivery costs and preparation of roughly 2,000 buses being
made available by transit authorities around the country to support the
unique transportation requirements of the Olympic and Paralympic Games.
D. Project Management Set-Aside
49 U.S.C. 5327 (formerly Section 23 of the FT Act), allows the
Secretary of Transportation to use not more than one-half of one
percent of the funds made available under the Capital Program, the
Urbanized Area Formula and Nonurbanized Area Formula Programs, the
National Capital Transportation Act, as amended, and the Interstate
Substitute Transit Program, and an additional one-quarter of one
percent of Capital Program funds, to contract with any person to
oversee the construction of any major project under these statutory
programs and to conduct safety, procurement, management and financial
reviews and audits. Therefore, one-half of one percent of the funds
appropriated for fiscal year 1995 for the programs noted above, and
three-quarters of one percent of Capital Program funds have been
reserved for this purpose before apportionment of the funds.
IV. Urbanized Area Formula Program (Formerly Section 9)
A. Total Urbanized Area Formula Apportionments
In addition to the appropriated fiscal year 1995 Urbanized Area
Formula funds of $2,283,921,213, the apportionment also includes
$24,351,386 in deobligated Urbanized Area Formula funds (including
formerly Section 5 formula funds) which have become available for
reapportionment under the Urbanized Area Formula Program as provided
for under 49 U.S.C. 5336(i) (formerly section 9(o)).
Table 2 displays the amount apportioned for the Urbanized Area
Formula Program. After the one-half percent set-aside ($11,419,606),
the amount appropriated under this program is $2,272,501,607. The funds
to be reapportioned, described in the previous paragraph, were then
added. Thus, the total amount apportioned for this program is
$2,296,852,993.
B. Data Used for Urbanized Area Formula Apportionments
Data from the 1993 National Transit Database (Section 15) Report
Year submitted in late 1993 and early 1994 have been used to calculate
the fiscal year 1995 Urbanized Area Formula apportionments for
urbanized areas over 200,000 in population. The population and
population density figures used in calculating the Urbanized Area
Formula are from the 1990 Census.
C. Adjustments for Energy and Operating Efficiencies
49 U.S.C. 5336(b)(2) (formerly section 9(b)(4) of the FT Act)
provides that, if a recipient under this section demonstrates to the
satisfaction of the Secretary that energy or operating efficiencies
would be achieved by actions that reduce revenue vehicle miles but
provide the same frequency of revenue service to the same number of
riders, the recipient's apportionment under 49 U.S.C. 5336 (formerly
Section 9(b)(2)(A)) shall not be reduced as a result of such actions.
One recipient has submitted data acceptable to FTA in accordance with
this provision. Accordingly, the revenue vehicle miles used in the
Urbanized Area Formula database to calculate the fiscal year 1995
Urbanized Area Formula apportionment reflect the amount the recipient
would have received without the reductions in mileage.
D. Repayment of Temporary Matching Fund Waivers
Under the Temporary Matching Fund Waiver provision authorized at 49
U.S.C. 5307(i)(3) (formerly Section 9(g)(3)), grantees have been able
to request a Federal share of 100 percent up to the area's total
apportionment. Four grants or amendments have been awarded which employ
the temporary waiver of local matching funds for Urbanized Area Formula
grants approved in fiscal years 1992 and 1993. The local share amounts
for these grants had to be repaid by March 30, 1994. If not repaid, the
amount owed will be deducted from the area's fiscal years 1995 and 1996
Urbanized Area Formula apportionments.
All affected grantees have opted to have their future
apportionments reduced rather than pay back funds. Accordingly, the FTA
is reducing the areas' future apportionments to reflect the amount
owed. The local share payment amount for each project was determined by
dividing the project's total disbursement amount through September 30,
1994, by the project's total Federal capital obligations. The
calculated percentage was then applied to the project's original local
share waived amount. Of the calculated amount determined for repayment,
50 percent has been deducted from the fiscal year 1995 Urbanized Area
Formula apportionment. The remaining 50 percent will be deducted in
fiscal year 1996. The dollar amounts published in this Notice reflect
these fiscal year 1995 adjustments, and the affected areas have been so
advised.
E. Urbanized Area Formula Fiscal Year 1995 Apportionments to Governors
The total Urbanized Area Formula apportionment to the Governor for
use in areas under 200,000 in population for each State is shown on
Table 2. Table 2 also contains the total apportionment amount
attributable to each of the urbanized areas within the State. The
Governor may determine the allocation of funds among the urbanized
areas under 200,000 in population with one exception. As further
discussed below, funds attributed to an urbanized area under 200,000,
which is within the planning boundaries of a transportation management
area, must be obligated in that area.
F. Urbanized Area Formula Operating Assistance
Limitations
The fiscal year 1995 limitations on the amount of Urbanized Area
Formula funds that may be used for operating assistance are included in
Table 2 with the fiscal year 1995 apportionment.
The operating assistance limitations for all urbanized areas have
been increased under 49 U.S.C. 5336(d)(2) (formerly section 9(k)(2)(B)
of the FT Act) to reflect the increase in the Consumer Price Index
(CPI) for all urban consumers during the most recent calendar years.
The CPI Detailed Report, December 1993, published by the Department of
Labor (DOL), indicates the calendar year 1993 CPI increase for all
urban consumers is 2.7 percent. This increase was applied against the
base operating assistance limitation calculated under 49 U.S.C.
5336(d)(2) (formerly section 9(k)(2)(A) of the FT Act).
This increase results in an overall national fiscal year 1995
authorized operating assistance limitation level of $1,083,663,529.
However, the 1995 DOT Appropriations Act limits the nationwide
availability for operating assistance to a maximum of $710,000,000.
Accordingly, the operating assistance limitation published in this
Notice takes into account both the 1995 DOT Appropriations Act and
Federal transit laws. Therefore, the higher operating assistance
limitation under Federal transit laws ($1,083,663,529) has been reduced
to the $710,000,000 required by the 1995 DOT Appropriations Act by
taking a pro rata reduction across all categories of grantees.
G. Statewide Operating Assistance Limitations
49 U.S.C. 5307(a)(2) (formerly section 9(m)(1) of the FT Act)
specifies that in any case in which a statewide agency or
instrumentality is responsible under State laws for the financing,
construction and operation, directly, by lease, contract or otherwise,
of public transportation services, and when such statewide agency or
instrumentality is the designated recipient of FTA funds, and when the
statewide agency or instrumentality provides service among two or more
urbanized areas, the statewide agency or instrumentality shall be
allowed to apply for operating assistance up to the combined total
permissible amount of all urbanized areas in which it provides service,
regardless of whether the amount for any particular urbanized area is
exceeded.
H. Designated Transportation Management Areas
All urbanized areas over 200,000 in population have been designated
as transportation management areas (TMAs), in accordance with 49 U.S.C.
5305 (formerly section 8(i)(1) of the FT Act). These designations were
formally made in a Federal Register Notice dated May 18, 1992 (57 FR
21160), signed by the Federal Highway Administrator and the Federal
Transit Administrator. Additional areas may be designated as TMAs upon
the request of the Governor and the MPO designated for such area or the
affected local officials. As of October 1, 1994, two additional TMAs
have been formally designated: Petersburg, Virginia, comprised solely
of the Petersburg, Virginia, urbanized area; and Santa Barbara, Santa
Maria, and Lompoc, California, which were designated as one TMA.
Guidance for setting the boundaries of TMAs is contained in the
joint transportation planning regulations published in the Federal
Register on October 28, 1993 (58 FR 58040). In some cases, the TMA
boundaries which have been established by the MPO for the designated
TMA also include one or more urbanized areas under 200,000 in
population. Where this situation exists, the discretion of the Governor
to allocate urbanized area formula program ``Governor's Apportionment''
funds for urbanized areas under 200,000 in population is restricted.
49 U.S.C. 5307(a)(2) was modified by the Intermodal Surface
Transportation Efficiency Act of 1991 (ISTEA) to require that a
recipient(s) be designated to dispense the Urbanized Area Formula funds
attributable to TMAs. Those areas that do not already have a designated
recipient must name one and notify the appropriate FTA regional office
of the designation. This would include those urbanized areas under
200,000 in population that may receive TMA designation independently,
or those under 200,000 in population which are currently included
within the boundaries of a larger designated TMA. In both cases, the
Governor would only have discretion to allocate Governor's
Apportionment funds attributable to areas which are outside of
designated TMA boundaries. In order for the FTA and Governors to know
which urbanized areas under 200,000 in population are included within
the boundaries of an existing TMA, and so that they can be identified
in future Federal Register notices, each MPO whose TMA planning
boundaries include these smaller urbanized areas is asked to identify
such areas to the FTA. This notification should be made in writing to
the Associate Administrator for Grants Management, Federal Transit
Administration, 400 7th Street, SW, Washington, DC 20590, no later than
July 1 of each fiscal year. In fiscal year 1994, MPOs notified FTA that
the following urbanized areas under 200,000 in population are included
within the planning boundary of a designated TMA:
------------------------------------------------------------------------
Small urbanized area included in
Designated TMA TWA boundaries
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Baltimore, Maryland................ Annapolis, Maryland.
Philadelphia, Pennsylvania......... Pottstown, Pennsylvania.
Pittsburgh, Pennsylvania........... Monessen, Pennsylvania,
Steubenville-Weirton, OH-WV-PA (PA
portion).
Seattle, Washington................ Bremerton, Washington.
Washington, DC-MD-VA............... Frederick, Maryland (MD portion).
------------------------------------------------------------------------
I. Urbanized Area Formula Funds Used for Highway Purposes
Urbanized Area Formula funds apportioned to a TMA which cannot be
used for the payment of operating expenses (i.e., capital funds) are
also available for highway projects if the following three conditions
are met: (1) Such use must be approved by the MPO after appropriate
notice and opportunity for comment and appeal are provided to affected
transit providers; (2) in the determination of the Secretary, such
funds are not needed for investments required by the Americans with
Disabilities Act of 1990; and (3) funds may be available for highway
projects under title 23, U.S.C., only if funds used for the State or
local share of such highway projects are eligible to fund either
highway or transit projects.
Urbanized Area Formula funds which are designated for highway
projects will be transferred to and administered by the Federal Highway
Administration (FHWA). The MPO should notify FTA of their intent to
program FTA funds for highway purposes.
V. Nonurbanized Area Formula Program (Formerly Section 18) and Rural
Transit Assistance (RTAP) Program
A. Nonurbanized Area Formula Program
The fiscal year 1995 Nonurbanized Area Formula apportionments total
$132,752,946. The State apportionments are displayed on Table 3. A
total of $132,926,631 is appropriated for the Nonurbanized Area Formula
Program. After the one-half percent set-aside ($664,633), the fiscal
year 1995 apportionment also includes $490,948 in prior year
deobligated funds which have become available for reapportionment under
this program. These funds provide capital, operating and administrative
assistance for areas less than 50,000 in population.
Each State must spend no less than 15 percent of its fiscal year
1995 Nonurbanized Area Formula apportionment for the development and
support of intercity bus transportation, unless the Governor certifies
to the Secretary that the intercity bus service needs of the State are
being adequately met. Fiscal year 1995 Nonurbanized Area Formula grant
applications must reflect this level of programming for intercity bus
or include a certification from the Governor. The population figures
used in calculating these apportionments are from the 1990 Census.
B. RTAP Program
The fiscal year 1995 RTAP allocations to the States totaling
$4,612,500 are also displayed on Table 3. The funds are allocated to
the States to undertake research, training, technical assistance, and
other support services to meet the needs of transit operators in
nonurbanized areas. These funds are to be used in conjunction with the
States' administration of the Nonurbanized Area Formula Program.
VI. Elderly and Persons With Disabilities Program (Formerly Section 16)
A total of $59,152,156 is apportioned to the States for fiscal year
1995 under the Elderly and Persons with Disabilities Program. Table 4
shows each State's apportionment.
The formula for apportioning these funds uses 1990 Census
population data for persons aged sixty-five and over and for persons
with disabilities.
The funds provide capital assistance for transportation for elderly
persons and persons with disabilities. Eligible capital expenses may
include, at the option of the recipient, the acquisition of
transportation services under a contract, lease, or other arrangement.
While the assistance is intended primarily for private non-profit
organizations, public bodies that coordinate services for the elderly
and persons with disabilities, or any public body that certifies to the
State that non-profit organizations in the area are not readily
available to carry out the service, may receive these funds.
These program funds may be transferred by the Governor to
supplement the Urbanized Area Formula or Nonurbanized Area Formula
capital funds during the last 90 days of the fiscal year.
VII. Title 23 Interstate Substitute Transit Program
A total of $48,030,000 is appropriated for the Interstate
Substitute Transit Program. Of that amount, $9,500,000 is earmarked for
a substitute transit project in Milwaukee, Wisconsin. The balance of
$38,530,000 is appropriated for other transit projects which have been
substituted for withdrawn interstate highway segments. The funds are
apportioned by formula which reflects the remaining costs to complete
each withdrawal area's substitute transit projects. After the one-half
percent set-aside ($192,585), $38,337,415 of the $38,530,000 remains
for projects. This completes the funding for the Interstate Substitute
Transit Program for these withdrawal areas. Table 5 displays the
apportionment of these funds.
In addition to the funds directly appropriated for Interstate
Substitute Transit projects, Substitute Highway funds apportioned to a
withdrawal area may be transferred from FHWA to FTA to be used for
transit projects.
VIII. Surface Transportation Program ``Flexible'' Funds Used for
Transit Purposes
A. Transfer Process
``Flexible'' DOT funds, such as Surface Transportation Program
(STP) funds, Congestion Mitigation and Air Quality (CMAQ) funds, or
others, which are designated for use on transit projects, are
transferred from the FHWA to FTA for project approval. Flexible funds
programmed for transit projects must result from the local and state
planning and programming process, and must be contained in an approved
State Transportation Improvement Program (STIP) before the funds can be
transferred. In order to initiate the transfer process, the grantee
must submit a completed application to the FTA Regional Office, and
must notify the state highway/transportation agency that it has
submitted an application which requires a transfer of funds. Once the
state highway/transportation agency determines that the state has
sufficient obligation authority, it must notify FHWA that the funds are
to be used for transit purposes and request that they be obligated by
FHWA as a transfer project to FTA. The flexible funds transferred to
FTA will be placed in an urbanized area or state account under one of
the three existing formula programs--Urbanized Area, Elderly and
Persons with Disabilities, or Nonurbanized Area.
They are then treated as FTA formula funds, although they will
retain a special identifying code. The flexible funds may be used for
any non-operating purpose eligible under these FTA programs. All FTA
requirements are applicable to transferred funds. Flexible funds should
be combined with regular FTA formula funds in a single annual grant
application.
B. Matching Share for Flexible Funds
The provisions of Title 23, U.S.C. regarding the non-Federal share
apply to Title 23 funds used for transit projects. Thus, flexible funds
transferred to FTA retain the same matching share that such funds would
have if used for highway purposes and administered by the FHWA.
There are three instances in which a higher than 80 percent Federal
share would be maintained. First, in States with large areas of Indian
and certain public domain lands, and National Forests, parks and
monuments, the local share for highway projects is determined by a
sliding scale rate, calculated based on the percentage of public lands
within that state. This sliding scale, which permits a greater Federal
share, but not to exceed 95 percent, is applicable to transit projects
funded with flexible funds in these public land states. FHWA develops
the sliding scale matching ratios for the increased Federal share.
Additionally, commuter carpooling and vanpooling projects and
transit safety projects using flexible funds administered by FTA may
retain the same 100 percent Federal share that would be allowed for
ride-sharing or safety projects administered by the FHWA. The 100
percent safety projects are subject to a nationwide ten percent program
limitation.
C. Other Funds Transferred to FTA
Certain demonstration projects authorized under Title 23 are
specified to be used for transit projects and are more appropriately
administered by FTA. In such cases, FHWA has transferred the funds to
FTA for administration. Since these funds are not STP flexible funds,
they are transferred into the appropriate Capital Program category
(Bus, New Starts, or Fixed Guideway Modernization) for obligation and
are administered as Capital projects.
IX. Capital Program (Formerly Section 3)
A. Fixed Guideway Modernization Formula
Fixed Guideway Modernization funds are allocated by formula.
Statutory percentages were established to allocate the first
$497,700,000 to 11 fixed guideway areas. The next $70,000,000 is
allocated one-half to these 11 urbanized areas and one-half to other
urbanized areas with fixed guideways which are at least seven years old
on the basis of the Urbanized Area Formula Program fixed guideway tier
formula factors. The remaining funds are allocated to all of these
urbanized areas as one universe. For fiscal year 1995, $725,000,000 was
appropriated for fixed guideway modernization. After the three-quarter
percent set-aside ($5,437,500), $719,562,500 is available for
apportionment to the specified urbanized areas for Fixed Guideway
Modernization funding.
Table 6 displays these apportionments. Fixed Guideway Modernization
funds apportioned under this section must be used for capital projects
to modernize or improve fixed guideway systems.
All urbanized areas with fixed guideway systems which are at least
seven years old are eligible to receive Fixed Guideway Modernization
funds. A request for the start-up service dates for fixed guideways has
been incorporated into the Section 15 data reporting system to ensure
that all eligible fixed guideway data is included in the calculation of
these apportionments. A threshold level of more than one mile of fixed
guideway is required to receive Fixed Guideway Modernization funds.
Therefore, urbanized areas reporting less than one mile of fixed
guideway mileage under Section 15 are not included.
B. New Starts
The fiscal year 1995 appropriation for New Starts is $646,670,000.
These funds are entirely earmarked for projects specified within the
1995 DOT Appropriations Act. After the three-quarter percent set-aside
($4,850,025), $641,819,975 remains available for allocation to areas.
Table 7 displays the allocations by area and also shows prior year
unobligated earmarks for New Starts.
C. Bus
The fiscal year 1995 appropriation for Bus is $353,330,000 for the
purchase of buses, bus-related equipment and paratransit vehicles, and
for the construction of bus-related facilities. After the three-quarter
percent set-aside ($2,649,975) for project management oversight,
$350,680,025 remains available for projects. The ISTEA earmarked
$12,000,000 in Bus funding for two bus projects in fiscal year 1995.
The Conference Report accompanying the 1995 DOT Appropriations Act
earmarked an additional $316,330,000 to specified states or localities
for bus and bus-related capital projects. FTA administrative commitment
of fiscal year 1995 funds to one full funding grant agreement totals
$1,700,000. Thus, $20,650,025 remains available for discretionary
allocation by the Federal Transit Administrator. Table 8 displays the
allocations of earmarked fiscal year 1995 Bus funds by area and also
shows prior year unobligated earmarks for the Bus Program.
X. Unit Values of Data for the Urbanized Area Formula and Nonurbanized
Area Formula Programs, and Fixed Guideway Modernization Formula
For technical assistance purposes, the dollar unit values of data
derived from the computations of the Urbanized Area Formula and
Nonurbanized Area Formula Programs, and the Fixed Guideway
Modernization Formula apportionments are included in this Notice on
Table 10. To determine how a particular apportionment amount was
developed, areas may multiply their population, population density, and
Section 15 data by these unit values.
XI. Metropolitan Planning and State Planning and Research Programs
(Formerly Sections 8 and 26(a)(2))
A. Metropolitan Planning Urbanized Area Program
The fiscal year 1995 Metropolitan Planning apportionments to States
for MPOs to be used in urbanized areas total $41,512,500. A basic
allocation of 80 percent of this amount ($33,210,000) is distributed to
the States based on urbanized area population for State distribution to
each urbanized area, or parts thereof, within each State. A
supplemental allocation of the remaining 20 percent ($8,302,500) is
also provided to the States based on an FTA administrative formula to
address planning needs in the larger, more complex urbanized areas.
Table 9 contains the final State apportionments for the combined basic
and supplemental allocations. Each State, in cooperation with the MPOs,
must develop an allocation formula for the combined apportionment which
distributes these funds to MPOs representing urbanized areas, or parts
thereof, within the State. This formula, which must be approved by the
FTA, must ensure to the maximum extent practicable that no MPO is
allocated less than the amount it received by administrative formula
under the Metropolitan Planning Program in fiscal year 1991 (minimum
MPO allocation). Each State formula must include a provision for the
minimum MPO allocation. Where the State and MPOs desire to use a new
formula not previously approved by FTA, it must be submitted to FTA for
prior approval.
B. State Planning and Research Program
The fiscal year 1995 apportionments for the State Planning and
Research Program total $8,475,000. Final State apportionments for this
program are also contained on Table 9. This is the fourth year of a
consolidated program which is apportioned to the States for the purpose
of such activities as planning, technical studies and assistance,
demonstrations, management training, and cooperative research. In
addition, a State may authorize a portion of these funds to be used to
supplement planning funds allocated by the State to its urbanized
areas, as the respective State deems appropriate.
C. Data Used for Metropolitan Planning and State Planning and Research
Apportionments
Population data from the 1990 Census is used in calculating these
apportionments. The Metropolitan Planning funding provided to urbanized
areas in each State by administrative formula in fiscal year 1991 was
used as a ``hold harmless'' base in calculating funding to each State.
Please note that while the fiscal year 1995 apportionment amount
remains unchanged from the fiscal year 1994 apportionment, an
adjustment has been made to more accurately reflect the distribution of
population within a particular bi-state urbanized area. This adjustment
may result in a slight change to each State's individual apportionment
from the fiscal year 1994 amount.
XI. Period of Availability of Funds
The funds apportioned under the Urbanized Area Formula Program,
Fixed Guideway Modernization Formula, Metropolitan Planning and State
Planning and Research Programs in this Notice will remain available to
be obligated by FTA to recipients for three (3) fiscal years following
fiscal year 1995. Any of these apportioned funds unobligated at the
close of business on September 30, 1998, will revert to FTA for
reapportionment under these respective programs. Funds apportioned to
nonurbanized areas under the Nonurbanized Area Formula Program,
including RTAP funds, will remain available for two (2) fiscal years
following fiscal year 1995. Any such funds remaining unobligated at the
close of business on September 30, 1997, will revert to FTA for
reapportionment among the States. Funds allocated to States under the
Elderly and Persons with Disabilities Program in this Notice must be
obligated by September 30, 1995. Any such funds remaining unobligated
as of this date will revert to FTA for reapportionment among the
States. Fiscal year 1995 Title 23 Interstate Substitute Transit funds
are available until expended. The 1995 DOT Appropriations Act includes
a provision requiring that fiscal year 1995 New Starts and Bus funds
not obligated for their original purpose as of September 30, 1997,
shall be made available for other discretionary projects. A similar
provision in the 1994 DOT Appropriations Act required that fiscal year
1994 and prior year Bus and New Start funds that are not obligated by
September 30, 1996, shall also be made available for other
discretionary projects.
XIII. Notice of Pre-Award Authority to Incur Project Costs
A. Background
FTA is engaged in an ongoing effort to streamline and simplify the
administration of its programs. To this end, the agency has expanded
the authority extended to grantees to incur costs for operating
assistance projects prior to grant award to cover planning and capital
costs as well. In fiscal year 1994 FTA extended this authority to non-
operating projects funded with current year apportioned formula funds.
This automatic pre-award spending authority permitted a grantee to
incur costs on an eligible transit capital or planning project without
prejudice to possible future Federal participation in the cost of the
project or projects.
B. Expanded Coverage
Because this provision has worked so well to reduce the paperwork
burden on both the grantee and FTA regional offices, effective as of
October 1, 1994, the FTA is further broadening this authority.
Authority to incur costs for Fixed Guideway Modernization Formula,
Metropolitan Planning, Urbanized Area Formula, Elderly and Persons with
Disabilities, Nonurbanized Area Formula, State Planning and Research,
and Title 23 Interstate Substitute Transit projects in advance of
possible future Federal participation is extended to apply to fiscal
year 1995 FTA funds apportioned in this Notice for the programs listed
above, as well as funds to be apportioned in fiscal years 1996 and
1997. Carryover amounts for these programs are also included in this
authority. This pre-award authority is also extended to projects
intended to be funded with STP or CMAQ funds transferred to FTA in
fiscal years 1995 and 1996, provided that the projects are contained in
an approved STIP. The flexible funds would no longer have to be
transferred to FTA before the authority could be used. The two-year
limit for these flexible funds corresponds to the more rigorous
financial constraint contained in the metropolitan planning regulation
for non-attainment and maintenance areas. The authority does not apply
to New Starts or Bus.
C. Conditions
Similar to FTA's Letter of No Prejudice (LONP) authority, the
conditions under which this authority may be utilized are specified
below:
(1) This pre-award authority is not a legal or moral commitment
that the project(s) will be approved for FTA assistance or that the FTA
will obligate Federal funds. Furthermore, it is not a legal or moral
commitment that all items undertaken by the applicant will be eligible
for inclusion in the project(s).
(2) All FTA statutory, procedural, and contractual requirements
must be met.
(3) No action will be taken by the grantee which prejudices the
legal and administrative findings which the Federal Transit
Administrator must make in order to approve a project.
(4) Local funds expended by the grantee pursuant to and after the
date of this authority will be eligible for credit toward local match
or reimbursement if the FTA later makes a grant for the project(s) or
project amendment(s).
(5) The Federal amount of any future FTA assistance 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.
(6) For regular FTA formula funds to which this authority applies,
the authority expires with the lapsing of fiscal year 1997 funds. For
flexible funds transferred from FHWA, the authority expires with the
lapsing of fiscal year 1996 funds.
D. Environmental and Other Requirements
FTA emphasizes that all of the Federal grant requirements must be
met for the project to remain eligible for Federal funding. Some of
these requirements must be met before pre-award costs are incurred,
notably the requirements of the National Environmental Policy Act
(NEPA). Compliance with NEPA and other environmental laws or executive
orders (e.g., protection of parklands, wetlands, historic properties)
must be completed before state or local funds are advanced for a
project expected to be subsequently funded with FTA funds. Depending on
which class the project is included under in FTA's environmental
regulations (23 CFR 771) the grantee may not advance the project beyond
planning and preliminary engineering before FTA has approved either a
categorical exclusion (refer to 23 CFR 771.117(d)), a finding of no
significant impact, or a final environmental impact statement. The
conformity requirements of the Clean Air Act (40 CFR 51) also must be
fully met before the project may be advanced with non-Federal funds.
Similarly, Federal procurement procedures, as well as the whole
range of Federal requirements, 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
thereby. If a grantee has questions or concerns regarding the
environmental requirements, or any other Federal requirements that must
be met before incurring costs, it should contact the appropriate
regional office.
Before an applicant may incur costs either for activities expected
to be funded by Bus or New Start funds, or for activities requiring
funding beyond fiscal year 1997, it must first obtain a written LONP
from the FTA. To obtain an LONP, a grantee must submit a written
request accompanied by adequate information and justification to the
appropriate FTA regional office. FTA will consider the request in light
of its ``Letter of No Prejudice Policy'' (47 FR 46956, October 21,
1982).
XIV. Electronic Grant Making and Management (EGMM) Initiative--Fiscal
Year 1995 and Beyond
As a result of the National Performance Review and the FTA
strategic planning process, the FTA has two initiatives designed to
improve customer service and efficiency of program delivery: (1) On-
Line Grantee Program--available to all grantee agencies which can
access the FTA Grants Management Information System (GMIS) mainframe
computer system via a toll free phone connection. This program was
initially designed for ``inquiry only'' purposes. However, this program
will be expanded on a case-by-case basis to allow grantees to make
annual certifications and assurances through GMIS and conduct required
quarterly financial status and narrative grant progress reporting. (2)
Electronic Grant Making and Management Pilot Program--participation in
the fiscal year 1995 pilot program is limited to the 21 grantee
agencies (including Greater Hartford Transit District, Massachusetts
Bay Transportation Authority, Central New York Regional Transportation
Authority, New York Metropolitan Transportation Authority, Baltimore
Mass Transit Administration, Lehigh and North Hampton Transit
Authority, City of Montgomery Area Transit System, Hillsborough Area
Regional Transit Authority, Chicago Transit Authority, Central Ohio
Transit Authority, Metropolitan Transportation Authority of Harris
County, New Mexico State Highway and Transportation Department, Bi-
State Development Agency--St. Louis, Missouri Highway and
Transportation Department, Montana Department of Transportation, Denver
Regional Transportation District, City and County of San Francisco--
Public Utilities Commission, Los Angeles County Metropolitan
Transportation Authority, King County Department of Metropolitan
Services, Washington State Department of Transportation, and National
Easter Seal Society). During the pilot program (October 1, 1994 through
September 30, 1995) these grantees will apply for and manage grants at
their computer stations connected to the FTA GMIS computer using a
modem and toll free phone connection. The purpose of this initiative is
to streamline the FTA grant making and management process through a
paperless electronic grant application, review, approval, acceptance
and management process. DOL has agreed to participate in the program
and receive requests for Labor Protection Certification under 49 U.S.C.
5333(b) of projects as well as issue Labor Protection Certifications
electronically for the EGMM Pilot Program participants.
Quarterly evaluation will be conducted of both the On-Line Grantee
Program and the EGMM Pilot Program. Also during fiscal year 1995 FTA
will implement the annual certifications and assurances for all
grantees in which one signature will replace the continued validity
statement and separate certifications and assurances. All EGMM grantee
participants and On-Line Grantee participants on a case-by-case basis
will be able to provide these certifications electronically. In
preparation of the EGMM initiative, FTA has already issued a Master
Agreement that replaces Part I and portions of Part II of the current
FTA grant agreement.
Upon the completion of the EGMM Pilot Program of fiscal year 1995,
FTA intends to expand the EGMM Program to include additional grantee
agencies during fiscal year 1996. FTA also has several activities under
consideration to expand the functional content of EGMM. The kinds of
activities under consideration include a mechanism to facilitate
electronic statewide transportation improvement programs, electronic
unified planning work programs, and an electronic library. The FTA
would like your comments and suggestions on additional areas FTA could
facilitate electronic interface to better serve our customers. Please
write your regional office with your suggestions on the FTA EGMM Pilot
Program and On-Line Grantee Program.
XV. Quartley Approval of Grants
The FTA has established a quarterly approval and release cycle for
processing grants. All Urbanized Area Formula, Nonurbanized Area
Formula, Elderly and Persons with Disabilities, Capital, Metropolitan
Planning, State Planning and Research, and Title 23 Interstate
Substitute Transit grants are processed on a quarterly basis. This
includes Urbanized Area Formula, Nonurbanized Area Formula, or Elderly
and Persons with Disabilities grants using STP or CMAQ funds.
If completed applications are submitted to the appropriate FTA
Regional Office no later than the first business day of the quarter,
FTA will award grants by the last business day of the quarter.
In order to expedite the grant approval process within the
quarterly approval structure, grants which are complete and have
received the required Labor Protection Certification may be approved
before the end of the quarter. Applications for the first quarter
should be submitted to the FTA Regional Office within five business
days of this Notice. The first-quarter grants will be released on or
before December 30, 1994. There are only two factors which would delay
FTA's approval of the project beyond the end of a quarter. First is a
failure by DOL to issue a Labor Protection Certification where such
certification is a prerequisite to a grant approval, and second is the
failure of FHWA to actually transfer flexible funds.
For an application to be considered complete, all required
activities such as inclusion of the project in a locally approved
Transportation Improvement Program (TIP), a Federally approved State
Transportation Improvement Program (STIP), intergovernmental reviews,
environmental reviews, all applicable civil rights, anti-drug, and
clean air requirements, and submission of all requisite certifications
and documentation must be completed. The application must be in
approvable form with all required documentation and submissions on
hand, except for the Labor Protection Certification which is issued by
DOL. Incomplete applications will not be processed, but if the missing
components are supplied, will be considered in the next quarter.
It is the policy of FTA to expedite grant application reviews and
speed program delivery by reducing the number of grant applications. To
this end, FTA strongly encourages grant applicants to submit only one
application per fiscal year for each formula program. The single
application should contain the fiscal year's capital (including
flexible funds), planning and operating elements.
XV. Grant Application Procedures
All applications for FTA funds should be submitted to the
appropriate FTA Regional Office. Formula grant applications should be
prepared in conformance with the following FTA Circulars: Urbanized
Area Formula--C9030.1A, September 18, 1987; Nonurbanized Area Formula--
C9040.1C, November 3, 1992; and Elderly and Persons with Disabilities--
C9070.1C, December 23, 1992. Applications for STP ``flexible'' fund
grants should be prepared in the same manner as the apportioned funds
under the Urbanized Area Formula, Nonurbanized Area Formula, or Elderly
and Persons with Disabilities Programs. Guidance on preparation of
applications for Capital, Metropolitan Planning, State Planning and
Research, and Title 23 funds may be obtained from each FTA Regional
Office. Copies of circulars are also available from Regional Offices.
Issued on: October 5, 1994.
Gordon J. Linton,
Administrator.
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[FR Doc. 94-25160 Filed 10-11-94; 8:45 am]
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