[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





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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.

-----------------------------------------------------------------------

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          
------------------------------------------------------------------------
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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