[Federal Register Volume 63, Number 121 (Wednesday, June 24, 1998)]
[Notices]
[Pages 34506-34547]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-16698]
[[Page 34505]]
_______________________________________________________________________
Part II
Department of Transportation
_______________________________________________________________________
Federal Transit Administration
_______________________________________________________________________
FTA Transit Program Changes and Final Funding Levels for Fiscal Year
1998 Under the Transportation Equity Act for the 21st Century; Notice
Federal Register / Vol. 63, No. 121 / Wednesday, June 24, 1998 /
Notices
[[Page 34506]]
DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
FTA Transit Program Changes and Final Funding Levels for Fiscal
Year 1998 Under the Transportation Equity Act for the 21st Century
AGENCY: Federal Transit Administration (FTA), DOT.
ACTION: Notice.
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SUMMARY: This Notice announces the availability of the remaining fiscal
year 1998 funding for the Federal transit programs that was not
available previously due to the lack of a full year authorization of
the transit program. The Transportation Equity Act for the 21st Century
(TEA-21), signed into law by President Clinton on June 9, 1998,
provides a six-year reauthorization of the Federal transit program and
the necessary contract authority needed to fully fund the fiscal year
1998 obligation limitations contained in the fiscal year 1998
Department of Transportation Appropriations Act. In addition to
announcing the remaining fiscal year funding, this Notice also revises
the apportionment of funding for the Section 5307 Urbanized Area
Formula Program in compliance with new provisions which require a one
percent set-aside for transit enhancements, and $4,849,950 to be set
aside for financing the Alaska Railroad. Additionally, this Notice
revises the apportionment of funds for the Section 5309 Fixed Guideway
Modernization Program to reflect the new allocation formula established
in TEA-21. It also revises the Section 5309 Bus Allocations to comply
with new provisions in TEA-21 to fund a Bus Test Facility in the amount
of $3,000,000 and a Fuel Cell Bus Program in the amount of $4,850,000
in fiscal year 1998. These two programs were not provided for in the
original Bus Allocations.
This Notice updates and expands on the December 5, 1997, Federal
Register Notice entitled ``FTA Fiscal Year 1998 Apportionments,
Allocations and Program Information.'' It also contains information
regarding the changes made by TEA-21 to the various Federal transit
programs, as well as the FTA policy on pre-award authority and other
new program information.
The new programs are the Clean Fuels Formula Program, the Job
Access and Reverse Commute Program, the Over-the-Road Bus Accessibility
program, the Single State Pilot Program for Intercity Rail
Infrastructure Investment, and the State Infrastructure Banks Pilot
Program. The funding level for the Over-the-Road Bus Accessibility
Program is subject to a pending technical correction bill which would
decrease the $6.8 million a year for operators of other over-the-road
service to a total of $6.8 million for the four years, 2000-2003.
FOR FURTHER INFORMATION CONTACT: The appropriate FTA Regional
Administrator for grant-specific information and issues; Patricia
Levine, Director, Office of Resource Management and State Programs,
(202) 366-2053, for general information about the Urbanized Area
Formula Program, the Nonurbanized Area Formula Program, the Elderly and
Persons with Disabilities Program, the Rural Transit Assistance
Program, or the Capital Program; or Robert Stout, Director, Office of
Planning Operations, (202) 366-6385, for general information concerning
the Metropolitan Planning Program and the State Planning and Research
Program.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. FTA Fiscal Year 1998 Funds Available for Obligation
III. Fiscal Year 1998 Revised Section 5307 Urbanized Area Formula
Apportionments
IV. Fiscal Year 1998 Revised Section 5309 Fixed Guideway
Modernization Apportionments
V. Fiscal Year 1998 Revised Section 5309 Bus Allocations
VI. Transit Authorization Levels Under TEA-21
VII. Changes Affecting FTA Formula, Capital Investment and Planning
Programs
A. Capital Project Definitions
B. Operating Assistance
C. Preventive Maintenance
D. Transit Enhancements
E. Proceeds from Sale of Assets
F. Revenue Bond Proceeds As Local Share
G. Notice of Pre-award Authority to Incur Project Costs
1. Conditions
2. Environmental, Planning, and Other Federal Requirements
H. Metropolitan Planning
I. New Starts Evaluation and Criteria
VIII. New Programs Authorized by TEA-21
A. Clean Fuels Formula Program
1. Definition of Eligible Projects
2. Application and Apportionment Deadlines
3. Formula for Apportioning Funds
4. Availability of Funds
B. Job Access and Reverse Commute Program
1. Definition and Eligible Projects
2. Factors for Consideration
3. Availability of Funds and Grant Requirements
C. Over-the-Road Bus Accessibility Program
D. Single State Pilot Program for Intercity Rail Infrastructure
Investment
E. State Infrastructure Banks Pilot Program
IX. General Information Tables:
1. FTA Fiscal Year 1998 Revised Appropriations and Funds
Available for Grant Programs
2. FTA Fiscal Year 1998 Revised Section 5307 Urbanized Area
Formula Apportionments
3. FTA Fiscal Year 1998 Revised Section 5309 Fixed Guideway
Modernization Apportionments
4. FTA Fiscal Year 1998 Revised Section 5307 Section 5309 Bus
Allocations
5. FTA TEA-21 Authorization Levels
6. FTA TEA-21 New Start Project Authorizations
7. FTA TEA-21 Bus Capital Project Authorizations
8. FTA Fiscal Years 1998-2003 Apportionment Formula for Sections
5307 and 5311
9. FTA Fiscal Years 1998-2003 Apportionment Formula for Section
5309 Fixed Guideway Modernization Program
10. FTA Unit Values of Data--Fiscal Year 1998 Revised Formula
Grant Apportionments
I. Background
The fiscal year 1998 apportionments and allocations for the
formula, capital, and transit planning and research programs were
published in a Federal Register Notice on December 5, 1997, entitled
``FTA Fiscal Year 1998 Apportionments, Allocations and Program
Information.'' That Notice contained apportioned funds based on the
1998 Appropriations Act and Federal transit laws, as well as funds
available under the Surface Transportation Extension Act of 1997.
Because the Surface Transportation Extension Act of 1997 only provided
contract authority through March 31, 1998, FTA published (1) a listing
of the full amount of the fiscal year 1998 apportionments and
allocations for the formula, capital, and transit planning and research
programs, based on the 1998 Appropriations Act and Federal transit
laws; and (2) a listing of the partial amount of the apportionments and
allocations, based on the fiscal year 1998 available funds for these
programs, in accordance with the 1998 DOT Appropriations Act and the
Surface Transportation Extension Act of 1997. Now that full year
contract authority is provided under TEA-21, the full amount of the
fiscal year 1998 apportionments and allocations is available for
obligation.
II. FTA Fiscal Year 1998 Funds Available for Obligation
The total fiscal year 1998 apportionments and allocations for the
formula, capital investment, and transit planning and research programs
in the amount of $4,547,737,724 were
[[Page 34507]]
published in the Federal Register Notice of December 5, 1997. Full
obligational authority for each of the amounts listed in the December
5, 1997, Notice is now provided for the following programs:
Section 5307 Urbanized Area Formula Program;
Section 5311 Nonurbanized Area Formula Program;
Section 5310 Elderly and Persons with Disabilities Program;
Section 5309 Capital Investment Program: Fixed-Guideway
Modernization Program, and the Bus Capital Program.
Obligational authority for the following programs is not affected
by this Notice because they received the full year's funding pursuant
to the December 5, 1997, Federal Register Notice:
Section 5311(b) Rural Transit Assistance Program Funds;
Section 5309 New Starts Program;
Section 5303 Metropolitan Planning Program;
Section 5313(b) State Planning and Research Program.
Table 1 displays the amount of appropriations and funds available
for each of the programs listed in this Notice.
III. Fiscal Year 1998 Revised Section 5307 Urbanized Area Formula
Apportionments
The new law provides that, of the funds apportioned each fiscal
year under the Urbanized Area Formula Program to urbanized areas of
200,000 or more in population, at least one percent shall be used for
transit enhancement activities. It also requires that $4,849,950 shall
be available annually to the Alaska Railroad for improvements to its
passenger operations. Accordingly, the fiscal year 1998 Urbanized Area
Formula apportionment has been revised to accommodate these two
provisions.
The fiscal year 1998 funds appropriated and made available for
Urbanized Area Formula grants total $2,303,702,677. After a deduction
of .32343056 of one percent for Project Management Oversight
($7,450,879), $2,296,251,798 is available for apportionment to the
urbanized areas and states. Of this amount, $4,834,264 ($4,849,950 less
$15,6896 for PMO) is set aside for the Alaska Railroad. In addition to
the balance of $2,291,417,534 of the appropriated funds, the revised
apportionment also includes $7,162,381 in deobligated funds which have
become available for reapportionment for the Urbanized Area Formula
Program, leaving a balance of $2,298,579,915 to be apportioned to
urbanized areas and states. Table 2 shows a revised apportionment of
$2,303,414,179, which includes the Alaska Railroad.
There is no longer an operating assistance limitation for areas
under 200,000 in population. TEA-21 eliminates Federal financing of
operating expenses for areas 200,000 and above effective immediately.
Also indicated on Table 2 is the amount set aside for transit
enhancements as provided in TEA-21. See Section VII.D of this Notice
for a further discussion of transit enhancement funds. This transit
enhancement provision is effective immediately.
IV. Fiscal Year 1998 Revised Section 5309 Fixed Guideway
Modernization Apportionments
TEA-21 modifies the formula for allocating the Fixed Guideway
Modernization funds. The new formula contains seven tiers rather than
four. The allocation of funding under the first four tiers has been
modified slightly and, through fiscal year 2003, will be allocated
based on data used to apportion the funding in fiscal year 1997.
Funding in the three new tiers will be apportioned based on the latest
available route miles and revenue vehicle miles on segments at least
seven years old as reported to the National Transit Database, rather
than on route miles and revenue vehicle miles on entire systems which
are seven years old.
TEA-21 specifically required the FTA to revise the fiscal year 1998
Fixed Guideway Modernization funds using the new formula. This has
resulted in generally minor changes in the amounts available. However,
one area, Worcester, Massachusetts, is no longer eligible, because the
fixed guideway segment attributable to that urbanized area was not in
place as of October 1, 1990. For the fiscal year 1998 revised
apportionments, sufficient funds were available to allocate only to the
first five tiers. The revised apportionments are contained in Table 3.
For the reapportionment of fiscal year 1998 funds, Tier 5 uses
Urbanized Area Formula Program fixed guideway tier formula factors that
were used to apportion the fiscal year 1998 Fixed Guideway allocations
in the December 5, 1997, Federal Register Notice. Any fixed guideway
segment that is less than seven years old has been deleted from this
data base.
For fiscal year 1998, there is an $800,000,000 obligation
limitation for fixed guideway modernization. After a deduction of
.32343056 of one percent for Project Management Oversight ($2,587,445),
$797,412,555 is available for apportionment to the specified urbanized
areas.
Each year, the new fixed guideway modernization formula will
allocate funds by seven tiers as follows:
Tier 1
The first $497,700,000 shall be apportioned to the following
urbanized areas as follows: Baltimore $8,372,000; Boston $38,948,000;
Chicago/Northwestern Indiana $78,169,000; Cleveland $9,509,500; New
Orleans $1,730,588; New York $176,034,461; Northeastern New Jersey
$50,604,653; Philadelphia/Southern New Jersey $58,924,764; Pittsburgh
$13,662,463; San Francisco $33,989,571; Southwestern Connecticut
$27,755,000.
Tier 2
The next $70,000,000 shall be apportioned as follows: Tier 2B: 50
percent to areas identified in Tier 1; and Tier 2B: 50 percent to other
urbanized areas with fixed guideway in operation at least seven years.
Funds for both Tiers 2A and 2B are apportioned using the Urbanized Area
Formula Program fixed guideway tier formula factors that were used to
apportion funds for the Fixed Guideway Modernization Program in fiscal
year 1997.
Tier 3
The next $5,700,000 shall be apportioned to the following urbanized
areas as follows: Pittsburgh, 61.76 percent; Cleveland, 10.73 percent;
New Orleans, 5.79 percent; the remaining 21.72 percent is apportioned
to areas in Tier 2B using the fixed guideway tier formula factors used
in fiscal year 1997.
Tier 4
The next $186,600,000 shall be apportioned to all eligible areas
using the fixed guideway tier formula factors used in fiscal year 1997.
Tier 5
The next $70,000,000 shall be apportioned as follows: 65 percent to
the eleven areas specified in Tier I, and 35 percent to all other
urbanized areas using the most current urbanized area formula program
fixed guideway tier formula factors. Any segment this is less than
seven years old has been deleted from this data base.
Tier 6
The next $50,000,000 shall be apportioned as follows: 60 percent to
the eleven areas specified in Tier I, and 30 percent to the other
urbanized areas with fixed guideway system segments in
[[Page 34508]]
revenue service for at least seven years. Allocations will be based on
the latest available route miles and revenue vehicle miles for fixed
guideway segments at least seven years old as reported to the National
Transit Database.
Tier 7
Any remaining amounts shall be apportioned as follows: 50 percent
to the eleven urbanized areas specified in Tier I, and 50 percent to
the other urbanized areas with fixed guideway system segments in
revenue service for at least seven years. Allocations will be based on
the latest available route miles and revenue vehicle miles for fixed
guideway segments at least seven years old as reported to the National
Transit Database.
V. Fiscal Year 1998 Revised Section 5309 Bus Allocations
TEA-21 provides funding for a Bus Testing Facility in the amount of
$3,000,000 and a Fuel Cell Bus Program in the amount of $4,850,000 in
fiscal year 1998. These two programs were not provided for in the
original allocations; therefore, all bus allocations have been reduced
on a prorated basis to accommodate these two additional activities.
Table 4 displays the revised allocations.
VI. Transit Authorization Levels Under TEA-21
TEA-21 provides a combination of trust and general fund
authorizations that total $42.0 billion over the six year period,
fiscal years 1998--2003. However, $36 billion is guaranteed funds
included under the discretionary spending cap. TEA-21 includes $6
billion above the guaranteed level. See Table 5 for the guaranteed
funding levels by program, and Table 5A for the guaranteed and
nonguaranteed levels by program.
TEA-21 authorizes 191 New Starts projects. Of this number, 108
projects are authorized for final design and construction funding and
68 projects are authorized for alternatives analysis and preliminary
engineering funding. Of these, 34 projects have specific dollar amounts
associated with them. An additional 15 projects have specific dollar
amounts but are not included in the first two lists. All earmarks are
listed in Table 6 by area and project, including the dollar amount if
specified. Projects authorized for alternatives analysis and
preliminary engineering also become authorized for final design and
construction as of October 1, 2000.
TEA-21 contains a provision that makes $10,400,000 available from
Section 5309 New Starts funds in fiscal years 1999--2003 for ferry boat
capital projects in Alaska or Hawaii. These projects may be ferry boats
or ferry terminal facilities or approaches to ferry terminal
facilities. TEA-21 also authorizes an additional $3,600,000 from
Section 5309 New Start nonguaranteed funds in fiscal years 1999--2003
for ferry projects as defined above.
It should be noted that projects earmarked in TEA-21 are subject to
Congressional actions in later appropriations bills.
Also authorized are project specific allocations in fiscal years
1999 and 2000 for 158 Capital Investment Bus projects totaling
$539,637,000. These projects by amount and area are displayed on Table
7.
Information regarding estimates of funding levels for 1999--2003 by
state and urbanized area is available on the FTA home page at
www.fta.dot.gov. These numbers are for planning purposes only as they
will be revised in the future but may be used for programming
metropolitan transportation improvement programs and statewide
transportation improvement programs.
VII. Changes Affecting FTA Formula, Capital Investment, and
Planning Programs
A. Capital Project Definitions
TEA-21 amends the definition of a capital project placing several
new items in the general definition and formally codifying in the FTA
authorizing statute several items that had been modified in the past
through appropriations acts.
Following is the definition of a capital project contained in TEA-
21. The term `capital project' means a project for:
1. Acquiring, constructing, supervising or inspecting equipment or
a facility for use in mass transportation, expenses incidental to the
acquisition or construction (including designing, engineering, location
surveying, mapping, and acquiring rights of way), payments for the
capital portions of rail trackage rights agreements, transit-related
intelligent transportation systems, relocation assistance, acquiring
replacement housing sites, and acquiring, constructing, relocating, and
rehabilitating replacement housing;
2. Rehabilitating a bus;
3. Remanufacturing a bus;
4. Overhauling rail rolling stock;
5. Preventive maintenance;
6. Leasing equipment or a facility for use in mass transportation
subject to regulations the Secretary prescribes limiting the leasing
arrangements to those that are more cost-effective than acquisition or
construction;
7. Joint development: a mass transportation improvement that
enhances economic development or incorporates private investment,
including commercial and residential development, pedestrian and
bicycle access to a mass transportation facility, and the renovation
and improvement of historic transportation facilities, because the
improvement enhances the effectiveness of a mass transportation project
and is related physically or functionally to that mass transportation
project or establishes new or enhanced coordination between mass
transportation and other transportation, and provides a fair share of
revenue for mass transportation that will be used for mass
transportation--
(a) Including property acquisition, demolition of existing
structures, site preparation, utilities, building foundations,
walkways, open space, safety and security equipment and facilities
(including lighting, surveillance, and related intelligent
transportation system applications), facilities that incorporate
community services such as daycare and health care, and a capital
project for, and improving, equipment or a facility for an intermodal
transfer facility or transportation mall, except that a person making
an agreement to occupy space in a facility under this subparagraph
shall pay a reasonable share of the costs of the facility through
rental payments and other means; and
(b) Excluding construction of a commercial revenue-producing
facility or a part of a public facility not related to mass
transportation;
8. The introduction of new technology, through innovative and
improved products, into mass transportation; or
9. The provision of nonfixed route paratransit transportation
services in accordance with section 223 of the Americans with
Disabilities Act of 1990 (42 U.S.C. 12143), but only for grant
recipients that are in compliance with applicable requirements of that
Act, including both fixed route and demand responsive service, and only
for amounts not to exceed 10 percent of such recipient's annual formula
apportionment under sections 5307 and 5311.''
B. Operating Assistance
Operating assistance for urbanized areas with populations under
200,000 continues to be available, at the Federal/local share ratio of
50/50, with no limitation on the amount of a grantee's
[[Page 34509]]
apportionment that may be used for operating assistance. Operating
assistance funds for urbanized areas with populations of 200,000 and
above are no longer available as of effective date of TEA-21.
For fiscal year 1999 and thereafter, operating assistance is
available only to nonurbanized and urbanized areas with populations
under 200,000. For these smaller areas, there is no limitation on the
amount of the apportionment that may be used for operating assistance,
and the Federal/local share ratio is 50/50. However, for both
categories of urbanized areas, many of the activities formerly funded
by FTA with operating assistance are now eligible capital items under
the category of preventive maintenance. Operating assistance as a
capital project with an 80 percent federal match ratio will continue
for fiscal year 1998 for areas under 200,000. Operating assistance at
the 80/20 match will not be available in fiscal year 1999 or
thereafter.
C. Preventive Maintenance
Preventive maintenance, an expense that became eligible for FTA
capital assistance with the DOT 1998 Appropriations Act, is now
eligible for FTA capital assistance under TEA-21, so that fiscal year
1998 funds and subsequent fiscal year appropriations may be used for
preventive maintenance. Preventive maintenance costs, as in fiscal year
1998, are defined as all maintenance costs. For general guidance as to
the definition of eligible maintenance costs, the grantee should refer
to the definition of maintenance in the most recent National Transit
Database reporting manual. A grantee may continue to request assistance
for capital expenses under the FTA policies governing associated
capital maintenance items (spare parts), maintenance of vehicles leased
under contract, and vehicle overhauls; or a grantee may choose to
capture all maintenance under preventive maintenance. If a grantee
purchases service instead of operating service directly, and
maintenance is included in the contract for that purchased service,
then the grantee may apply for preventive maintenance capital
assistance for the actual maintenance costs of the purchased service.
For accounting purposes, the grantee is cautioned not to confuse
the fact that an item generally considered to be an operating expense
is now eligible for FTA capital assistance. Generally accepted
accounting principles and the grantee's accounting system determine
those costs that are to be accounted for as operating costs. The
National Transit Database Reporting System (NTD) follows generally
accepted accounting principles, and so a grantee reporting to the NTD
must report the operating costs the grantee has incurred as operating
costs regardless of grant eligibility as capital. Nevertheless, under
provisions of the fiscal year 1998 Appropriations Act, and now under
provisions of TEA-21, some of those operating costs, while continuing
to be accounted for as operating costs in the grantee's accounting
records, are now eligible for FTA capital assistance. Grantees may not
count the same costs twice.
D. Transit Enhancements
TEA-21 establishes a one percent set-aside for transit enhancements
under the Urbanized Area Formula Program for areas 200,000 and above in
population. The term ``transit enhancement'' includes projects that are
designed to enhance mass transportation service or use and are
physically or functionally related to transit facilities. Eligible
projects are: (1) historic preservation, rehabilitation, and operation
of historic mass transportation buildings, structures, and facilities
(including historic bus and railroad facilities); (2) bus shelters; (3)
landscaping and other scenic beautification, including tables, benches,
trash receptacles, and street lights; (4) public art; (5) pedestrian
access and walkways; (6) bicycle access, including bicycle storage
facilities and installing equipment for transporting bicycles on mass
transportation vehicles; (7) transit connections to parks within the
recipient's transit service area; (8) signage; and (9) enhanced access
for persons with disabilities to mass transportation.
One percent of the urbanized area formula apportionment in
urbanized areas with a population of 200,000 and above shall be
available only for transit enhancements. Table 2 indicates the amount
set aside for enhancements in urbanized areas of 200,000 and above. If
these funds are not obligated for transit enhancement projects by three
years following the fiscal year in which the funds are apportioned, the
funds shall be reapportioned under the urbanized area formula program.
The project budget for each urbanized area formula grant
application which includes enhancement funds shall include a scope code
for transit enhancements and specific budget line activity items for
transit enhancements. Transit enhancements may exceed the one percent
set-aside. However, items that are only eligible as enhancements such
as operating costs for historic facilities may only be funded with the
enhancement funds.
Recipients of the one percent set-aside enhancement funds shall
submit a report to the appropriate FTA regional office listing the
projects carried out during the fiscal year with those funds. This
report shall be part of the recipient's annual certification to the
FTA. If at all possible, the report should be submitted electronically
and should utilize the budget line item codes used in the approved
project budget.
Under a related provision, projects providing bicycle access to
mass transportation funded with the enhancement set-aside shall be
funded at a 95 percent Federal share.
E. Proceeds From Sale of Assets
TEA-21 provides an additional option for handling proceeds from the
sale of federally-funded assets. This new provision allows the
recipient, with FTA approval, to sell, transfer, or lease real
property, equipment, or supplies acquired with FTA assistance and no
longer needed for transit purposes. The net proceeds of the transaction
may then be used to reduce the gross project cost of other Federally-
assisted capital transit projects.
If the asset is identified as no longer needed by the grantee for
public transportation purposes, and determined by FTA as eligible for
disposition, then the new requirements would apply. That is, the
proceeds could be retained by the grantee and used to reduce the gross
project costs of another Federally-assisted capital transit project
prior to applying for Federal financial assistance.
If the asset is to be retained in transit use after being
transferred, sold, or leased, such as by another transit provider or in
a joint development project, then existing requirements would apply.
Previous provisions continue to allow the recipient of assistance
to transfer assets to another public agency to be used for a public
purpose. Additional information is available from the appropriate FTA
Regional Office.
F. Revenue Bond Proceeds as Local Share
Beginning with fiscal year 1999, and permissible thereafter, a
recipient of assistance under the Urbanized Area Formula Program
(Section 5307) and the Capital Program (Section 5309), may use as the
local share for capital projects the proceeds from the issuance of
bonds that are backed by future revenue from the farebox. This
provision of TEA-21 is expected to help reduce borrowing costs for
transit authorities. Under this
[[Page 34510]]
provision, using the proceeds of the revenue bonds as matching share
will be approved only if the aggregate amount of financial support from
the State and affected local governmental authorities in the urbanized
area during the next three fiscal years is not less than the aggregate
amount provided by the State and affected local governmental
authorities in the urbanized area during the preceding three fiscal
years (as is made evident in the State Transportation Improvement
Program).
G. Notice of Pre-Award Authority To Incur Project Costs
Since fiscal year 1994, FTA has provided pre-award authority to
cover certain planning and capital costs prior to grant award. This
automatic pre-award spending authority permits 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. Prior to exercising pre-award authority, grantees are
strongly encouraged to consult with the appropriate regional office
where there could be any question regarding the eligibility of the
project for future FTA funds.
Authority to incur costs for fiscal year 1998 Fixed Guideway
Modernization, Metropolitan Planning, Urbanized Area Formula, Elderly
and Persons with Disabilities, Nonurbanized Area Formula, and State
Planning and Research Programs in advance of possible future Federal
participation was provided in the December 5, 1997, Federal Register
Notice. This pre-award authority now also extends to future formula
funds that will be apportioned during the authorization period of TEA-
21, 1998-2003. Pre-award authority also applies to Capital Bus funds
identified in the December 5, 1997, notice. This pre-award authority
also applies to projects intended to be funded with STP or CMAQ funds
transferred to FTA in fiscal year 1998. This pre-award authority for
STP or CMAQ funds is now extended for the 1998-2003 authorization
period of TEA-21. Pre-award authority applies to FTA funds and flexible
funds provided the conditions in paragraphs (1) and (2) below are met.
The pre-award authority does not apply to Capital New Start funds, or
to Capital Bus projects not specified in this or previous notices. Pre-
award authority also applies to preventive maintenance costs incurred
within a local fiscal year ending during calendar year 1997, or
thereafter, under the formula programs cited above.
1. Conditions
Similar to the FTA Letter of No Prejudice (LONP) authority, the
conditions under which this authority may be utilized are specified
below:
a. This pre-award authority is not a legal or moral commitment that
the project(s) will be approved for FTA assistance or that 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).
b. All FTA statutory, procedural, and contractual requirements must
be met.
c. No action will be taken by the grantee that prejudices the legal
and administrative findings which the Federal Transit Administrator
must make in order to approve a project.
d. 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 FTA later makes a grant for the project(s) or
project amendment(s).
e. 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.
f. For funds to which this authority applies, the authority expires
with the lapsing of the fiscal year funds.
2. Environmental, Planning, and Other Federal 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), and the planning requirements. 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 part 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
part 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 part 51) also must be fully met before the
project may be advanced with non-Federal funds.
Similarly, the requirement that a project be included in a locally
adopted metropolitan transportation improvement program and federally
approved statewide transportation improvement program must be followed
before the project may be advanced with non-Federal funds. In addition,
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 through the use of pre-
award authority. If a grantee has questions or concerns regarding the
environmental requirements, or any other Federal requirements that must
be met before incurring costs, it should contact the appropriate
regional office.
Before an applicant may incur costs either for activities expected
to be funded by New Start funds, or for Bus Capital projects not listed
in the December 5, 1997, Federal Register Notice, it must first obtain
a written LONP from FTA. To obtain an LONP, a grantee must submit a
written request accompanied by adequate information and justification
to the appropriate FTA regional office.
H. Metropolitan Planning
TEA-21 retains much of the basic structure of the metropolitan and
statewide planning process, as established by ISTEA, with a few
significant changes. The set of sixteen metropolitan planning factors
has been reduced to seven factors: economic vitality; safety and
security; accessibility and mobility; environment, energy conservation
and quality of life; integration and connectivity; efficient operation
and management; and preservation of existing transportation resources.
Freight shippers and users of public transit are added to the explicit
set of stakeholders to be given opportunities to comment on
metropolitan plans and transportation improvement programs (TIPs).
Metropolitan planning organizations (MPOs) may include in their
TIPs an ``illustrative'' list of projects that could be implemented if
additional resources were made available. MPOs will also be encouraged
to coordinate the planning for Federally-funded non-emergency
transportation services as part of the metropolitan planning process.
FTA and FHWA will be revising the Joint Planning Regulations (23 CFR
part 450 and 49 CFR part 613) to formally
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incorporate changes to the planning program.
I. New Starts Evaluation and Criteria
TEA-21 includes several changes to the evaluation process and
criteria for New Starts fixed guideway projects. The Secretary shall
consider several additional factors in the Department's review and
evaluation of candidate New Starts projects. FTA will be required to
evaluate each project authorized for New Starts funding by each
criterion, as well as provide an overall project rating of ``highly
recommended,'' ``recommended,'' and ``not recommended.'' In addition to
its annual report to Congress on Funding Levels and Allocations of
Funds for Transit Major Capital Investments, FTA will be required to
issue a supplemental report in August of each year which rates all
projects that have completed alternatives analysis and preliminary
engineering since the date of the last report. FTA must also approve
candidate New Starts project's entry into final design. FTA also
continues its prior approval authority for entrance into preliminary
engineering.
TEA-21 requires that no less than 92 percent of the annual New
Starts program must be used for final design and construction.
FTA will issue regulations implementing the New Starts provision of
TEA-21.
VIII. New Programs Authorized by TEA-21
A. Clean Fuels Formula Program
1. Definition and Eligible Projects
The Clean Fuels Formula Program will finance the purchase or lease
of clean fuel buses and facilities and the improvement of existing
facilities to accommodate clean fuel buses. Clean fuel buses include
those powered by compressed natural gas, liquefied natural gas,
biodiesel fuels, batteries, alchohol-based fuels, hybrid electric, fuel
cell and certain clean diesel, and other low or zero emissions
technology, and which the Environmental Protection Agency (EPA) has
certified sufficiently reduces harmful emissions. Eligible projects
include:
a. purchasing or leasing clean fuel buses, including buses that
employ a lightweight composite primary structure;
b. constructing or leasing clean fuel buses or electrical
recharging facilities and related equipment;
c. improving existing mass transportation facilities to accommodate
clean fuel buses;
d. repowering pre-1993 engines with clean fuel technology that
meets the current urban bus emission standards;
e. retrofitting or rebuilding pre-1993 engines if before half life
to rebuild; and may,
f. at the discretion of the FTA, projects relating to clean fuel,
biodiesel, hybrid electric or zero emissions technology vehicles that
exhibit equivalent or superior emissions reductions to existing clean
fuel or hybrid electric technologies.
2. Application and Apportionment Deadlines
Any designated recipient seeking to apply for a grant under this
section shall submit an application to FTA no later than January 1 of
each fiscal year. No later than February 1 of each fiscal year FTA
shall apportion funds to designated recipients who submitted
applications. FTA is required to issue regulations to implement this
program.
3. Formula for Apportioning Funds
a. Areas 1,000,000 and above. Two thirds of the funds available
shall be apportioned to designated recipients with eligible projects in
urban areas with a population of 1,000,000 and above. Of this, 50
percent shall be apportioned so that each designated recipient receives
a grant in an amount equal to the ratio between:
(1) the number of vehicles in the bus fleet of the eligible
project, weighted by the severity of nonattainment for the area in
which the eligible project is located; and
(2) the total number of vehicles in the bus fleets of all eligible
projects in areas with a population of 1,000,000 and above funded,
weighted by the severity of nonattainment for all areas in which those
eligible projects are located as provided in c. below. The remaining 50
percent shall be apportioned such that each designated recipient
receives a grant in an amount equal to the ratio between:
(a) the number of bus passenger miles of the eligible project of
the designated recipient, weighted by the severity of nonattainment of
the area in which the eligible project is located as provided in c.
below.
(b) the total number of bus passenger miles of all eligible
projects in areas with a population of 1,000,000 and above funded,
weighted by the severity of nonattainment of all areas in which those
eligible projects are located as provided in c. below.
b. Areas under 1,000,000 Population. The formula for areas under
1,000,000 is the same as for areas 1,000,000 and above, except that in
areas 1,000,000 and above the formula uses a pool of all eligible
projects in areas with a population of 1,000,000 and above and the
formula for areas under 1,000,000 uses a pool of all eligible project
for areas under 1,000,000.
c. Weighting Factors. The number of clean fuel vehicles in the
fleet or the number of passenger miles shall be multiplied by a factor
of:
(1) 1.0 if, at the time of the apportionment, the area is a
maintenance area for ozone or carbon monoxide;
(2) 1.1 if, at the time of the apportionment, the area is
classified as a marginal ozone nonattainment area or a marginal carbon
monoxide nonattainment area;
(3) 1.2 if, at the time of the apportionment, the area is
classified as a moderate ozone nonattainment area or a moderate carbon
monoxide nonattainment area;
(4) 1.3 if, at the time of the apportionment, the area is
classified as a serious ozone nonattainment area or a serious carbon
monoxide nonattainment area;
(5) 1.4 if, at the time of the apportionment, the area is
classified as a severe ozone nonattainment area or a severe carbon
monoxide nonattainment area;
(6) 1.5 if, at the time of the apportionment, the area is
classified as an extreme ozone nonattainment area or an extreme carbon
monoxide nonattainment area;
(7) The fleet and passenger miles for an eligible project shall
also be multiplied by a factor of 1.2 in those areas that are both
nonattainment for carbon monoxide and are also classified as
nonattainment or maintenance for ozone.
Note: Certain of the carbon monoxide categories are inconsistent
with the categories established by the Clean Air Act, as amended.
d. Limitation on Use of Funds and Maximum Grant Amounts. The amount
of a grant to a designated recipient shall not exceed the lesser of
$15,000,000 in areas under 1,000,000 population, or $25,000,000 in
areas with a population of 1,000,000 and above, or 80 percent of the
total project cost.
No more than $50,000,000 of the amount made available each year may
be available to fund clean diesel buses.
No more than five percent of the amount made available may be
available to fund retrofitting or replacement of the engines of buses
that do not meet the clean air standards of the EPA.
At least five percent of the total program funding must be used for
the
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purchase or construction of hybrid electric or battery-powered buses or
facilities designed to service those buses.
4. Availability of Funds
TEA-21 authorizes $200,000,000 each year for the Clean Fuels
Formula Program. However, only $100,000,000 each year is within the
guaranteed funding level. Any amount made available shall remain
available to a project for one year after the fiscal year for which the
amount is made available and any funds that remain unobligated at the
end of the second fiscal year shall be added to the amount made
available in the following fiscal year.
FTA will issue guidance and application instructions for this
program.
B. Job Access and Reverse Commute Program
1. Definition and Eligible Projects
The Job Access and Reverse Commute Program, to develop additional
transportation services needed to connect welfare recipients and other
low income persons to jobs and needed support services, is authorized
at $150 million annually. However, the amounts under the guaranteed
funding level start at $50 million in fiscal year 1999 and increases to
$150 million in fiscal year 2003.
A Job Access project is a project designed to transport welfare
recipients and eligible low-income individuals to and from jobs and
activities related to their employment. The grants may finance capital
projects and operating cost of equipment, facilities, and associated
capital maintenance items related to providing access to jobs; promote
the use of transit by workers with nontraditional work schedules;
promote the use by appropriate agencies of transit vouchers for welfare
recipients and eligible low-income individuals; and promote the use of
employer provided transportation, including the transit pass benefit
program under section 132 of the Internal Revenue Code of 1986.
A Reverse Commute project is a project related to the development
of transportation services designed to transport residents from urban
areas, urbanized areas and nonurbanized areas to suburban employment
opportunities. Eligible projects include projects which subsidize the
costs associated with adding reverse commute bus, train, carpool, van
routes or service from urbanized and nonurbanized areas to suburban
work places; subsidize the purchase or lease by a nonprofit
organization or public agency of a bus or bus dedicated to shuttling
employees from their residences to a suburban work place; or otherwise
facilitate the provision of mass transportation services to suburban
employment opportunities. Planning and coordination are not eligible
activities under this program.
2. Factors for Consideration
There will be a competitive grant selection process and TEA-21
contains specific factors for consideration in awarding grants under
this program. Factors include:
a. The percentage of the population in the area to be served by the
applicant that are welfare recipients;
b. The need for additional transportation services in the area to
be served;
c. The extent to which the applicant demonstrates:
(1) Coordination with and the financial commitment of existing
transportation service providers; and
(2) Coordination with the State agency that administers the State
program funded under part A of Title IV of the Social Security Act;
d. Maximum utilization of existing transportation service providers
and expanded transit networks or hours of service,
e. Innovative approach that is responsive to identified service
needs;
f. The extent to which the applicant for a Job Access project:
(1) Presents a regional transportation plan for addressing the
transportation needs of welfare recipients and eligible low income
individuals, and
(2) Identifies long-term financing strategies to support the
services;
g. The extent to which the applicant demonstrates that the
community to be served has been consulted in the planning process; and
h. For Reverse Commute projects, the need for additional services
identified in a regional transportation plan to transport individuals
to suburban employment opportunities and the extent to which the
proposed services will address these needs.
3. Availability of Funds and Grant Requirements
Of the funds made available under this program, 60 percent shall be
allocated for eligible projects in urbanized areas with populations of
200,000 and above. Twenty percent shall be allocated for eligible
projects in urbanized areas with populations under 200,000. Twenty
percent shall be allocated for eligible projects in nonurbanized areas.
The program has a 50 percent federal share. Certain other Federal
funds may be used to meet the 50 percent local match requirement. The
requirements of Section 5307, the Urbanized Area Formula Program, apply
to these grants. All planning requirements apply to these grants.
FTA will issue further guidance and application instructions for
this program.
C. Over-the-Road Bus Accessibility Program
TEA-21 establishes the Rural Transportation Accessibility Incentive
Program, hereinafter referred to as the Over-the-Road Bus Accessibility
Program. This program is designed to assist operators of over-the-road
buses to finance the incremental capital and training costs of
complying with the Department of Transportation's anticipated final
rule regarding accessibility of over-the-road buses required by the
Americans with Disabilities Act.
Beginning in fiscal year 1999, funding will be available for
operators of over-the-road buses in intercity fixed route service,
starting with $2 million in fiscal year 1999 and increasing to $5.25
million in fiscal year 2003. In addition, beginning in fiscal year
2000, an additional $6.8 million each year will also be available for
operators of other over-the-road bus service, including local commuter
service and charter or tour service. Total funding authorized through
fiscal year 2003 is $17,500,000 for fixed route over-the-road bus
operators and $27,200,000 for operators of other over-the road bus
services. (Note: The pending technical correction bill decreases the
$6.8 million a year for operators of other over-the-road service to a
total of $6.8 million for the four years, fiscal years 2000-2003.)
TEA-21 directs FTA to conduct a national solicitation for
applications. FTA must select the recipients of grants on a competitive
basis, considering the following criteria:
1. The identified need for over-the-road bus accessibility for
persons with disabilities in the areas served by the operator;
2. The extent to which the applicant demonstrates innovative
strategies and financial commitment to providing access to over-the-
road buses to persons with disabilities;
3. The extent to which the over-the-road bus operator acquires
equipment required by the final rule prior to any required timeframe in
the final rule;
4. The extent to which financing the costs of complying with the
DOT's final rule regarding accessibility of over-the-
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road buses presents a financial hardship for the applicant; and
5. The impact of accessibility requirements on the continuation of
over-the-road bus service, with particular consideration of the impact
of the requirements on service to rural areas and for low-income
individuals.
The Federal share shall not exceed 50 percent of the project cost.
The grants under this new program will be subject to all of the terms
and conditions applicable to intercity bus operators assisted under the
nonurbanized formula program and any other terms and conditions FTA
prescribes.
FTA will issue implementing guidance.
D. Single State Pilot Program for Intercity Rail Infrastructure
Investment
TEA-21 establishes a pilot program to determine the benefits of
using transit funds to support intercity passenger rail service in the
State of Oklahoma. Any assistance provided to the State of Oklahoma
under Sections 5307 and 5311 during fiscal years 1998-2003 may be used
for capital improvements to, and operating assistance for, intercity
passenger rail service. The Secretary must submit to the House
Transportation and Infrastructure Committee and Senate Banking, Housing
and Urban Affairs Committee by October 1, 2002, a report which
evaluates the pilot program. The evaluation must address the effect of
the pilot program on alternative forms of transportation within the
State, the effects on operators of mass transportation and their
passengers; a calculation of the amount of Federal assistance provided
for intercity passenger rail service; and an estimate of the benefits
to intercity passenger rail service.
E. State Infrastructure Banks Pilot Program
The State Infrastructure Bank program was first authorized as a
pilot program under the National Highway System Designation Act of
1995. TEA-21 provides for a revised pilot program in four states,
California, Florida, Missouri and Rhode Island. These four states may
enter into new or revised cooperative agreements that specify
procedures and guidelines for establishing, operating and providing
assistance from the infrastructure bank. These four states may
capitalize the infrastructure bank with funds from Section 5307, 5310
and 5311 as well as with Federal highway funds. There is no limitation
on the amount of Federal funds that may be used to capitalize the bank
as there was under the original pilot program.
TEA-21 specifies that the requirements of Titles 23 and 49, United
States Code, shall apply to repayments from non-Federal sources to an
infrastructure bank from projects assisted by the bank. Such repayment
shall be considered to be Federal funds. Repayments from Federal
sources will also be subject to the requirements of Titles 23 and 49.
In addition, for transit projects, the requirements for Sections 5307
and 5309 projects will apply.
IX. General Information
For technical assistance purposes, the Fiscal Years 1998-2003
Apportionment Formula for Sections 5307 and 5311 are contained in Table
8. Table 9 displays the FTA Fiscal Years 1998-2003 Apportionment
Formula for the Section 5309 Fixed Guideway Modernization Funding. The
FTA Fiscal Years 1999-2003 Apportionment Formula for the Section 5308
Clean Fuels Formula Program is shown on Table 10. Displayed on Table 11
are the dollar unit values of data derived from the computations of the
fiscal year 1998 revised Urbanized Area Formula Apportionment and the
Fixed Guideway Modernization Apportionment.
This Notice is included on the FTA Home Page and may be accessed at
www.fta.dot.gov.
Issued on: June 18, 1998.
Gordon J. Linton,
Administrator.
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[FR Doc. 98-16698 Filed 6-23-98; 8:45 am]
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