[Federal Register Volume 60, Number 226 (Friday, November 24, 1995)]
[Notices]
[Pages 58140-58174]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-28803]



      
      

[[Page 58139]]

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Part III





Department of Transportation





_______________________________________________________________________



Federal Transit Administration



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Fiscal Year 1996 Apportionments and Allocations; Notice

  Federal Register / Vol. 60, No. 226 / Friday, November 24, 1995 / 
Notices  

[[Page 58140]]


DEPARTMENT OF TRANSPORTATION

Federal Transit Administration


FTA Fiscal Year 1996 Apportionments and Allocations

AGENCY: Federal Transit Administration (FTA), DOT.

ACTION: Notice.

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

SUMMARY: The Department of Transportation (DOT) and Related Agencies 
Appropriations Act, 1996 (Pub. L. 104-50), signed into law by President 
Clinton on November 15, 1995, provides fiscal year 1996 appropriations 
for the Federal Transit Administration transit assistance programs. 
Based upon this Act, this Notice contains a comprehensive list of 
apportionments/allocations of the various transit programs.
    This Notice includes the apportionment of fiscal year 1996 funds 
for the Urbanized Area Formula Program, the Nonurbanized Area Formula 
Program, the Elderly and Persons with Disabilities Program, the Capital 
Program for Fixed Guideway Modernization, the Metropolitan Planning 
Program and the State Planning and Research Program, based on the 1996 
DOT Appropriations Act and Federal transit laws. This Notice also 
contains the allocations of funds for the New Starts and Bus categories 
under the Capital Program. Statutory limitations on the use of 
operating assistance are also included in this Notice. For the first 
time, this Notice also includes the funding level authorized by the 
Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA) for 
each program.
    In addition, the FTA policy regarding pre-award authority to incur 
project costs, as well as other pertinent information, 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 codified citations.

FOR FURTHER INFORMATION CONTACT: The appropriate FTA Regional 
Administrator for grant specific information and issues; Janet Lynn 
Sahaj, Director, Office of Resource Management and State Programs, 
(202) 366-2053, for general information about the Urbanized Area 
Formula Program (49 U.S.C. 5307), the Nonurbanized Area Formula Program 
(49 U.S.C. 5311), the Elderly and Persons with Disabilities Program (49 
U.S.C. 5310), or the Capital Program (49 U.S.C. 5309); or Sam 
Zimmerman, Director, Office of Planning Operations, (202) 366-2360, for 
general information concerning the Metropolitan Planning Program (49 
U.S.C. 5303) and State Planning and Research Program (49 U.S.C. 
5313(b)).

Supplementary Information:

Table of Contents

I. Codification of Federal Transit Laws
II. Background
III. Overview of Appropriations for Grant Programs
    A. General
    B. ISTEA Authorized Program Levels
    C. Project Management Oversight
IV. Departmental Initiatives
    A. Livable Communities Initiative
    B. Intelligent Transportation Systems
    C. Expanded Capital Eligibility
    D. FTA Home Page on Internet
V. Urbanized Area Formula Program (49 U.S.C. 5307)
    A. Total Urbanized Area Formula Apportionments
    B. Data Used for Urbanized Area Formula Apportionments, and 
Fiscal Year 1995 Apportionment Adjustment
    C. Adjustments for Energy and Operating Efficiencies
    D. Repayment of Temporary Matching Fund Waivers
    E. Urbanized Area Formula Fiscal Year 1996 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
VI. Nonurbanized Area Formula Program (49 U.S.C. 5311) and Rural 
Transit Assistance Program (RTAP) (49 U.S.C. 5311(b)(2)
    A. Nonurbanized Area Formula Program
    B. RTAP Program
VII. Elderly and Persons With Disabilities Program (49 U.S.C. 5310)
VIII. Surface Transportation Program ``Flexible'' Funds Used for 
Transit Purposes (Title 23, U.S.C.)
    A. Transfer Process
    B. Matching Share for Flexible Funds
    C. Other Funds Transferred to FTA
IX. Capital Program (49 U.S.C. 5309)
    A. Fixed Guideway Modernization
    B. New Starts
    C. Bus
    a. Fiscal Year 1996 Allocations
    b. Fiscal Year 1997 FTA Priorities for Allocation of 
Discretionary Bus Funds
    D. Capital Program Circular
X. Unit Values of Data for Section 5307 Urbanized Area Formula 
Program, Section 5311 Nonurbanized Area Formula Program, and Section 
5309(m)(1)(A) Fixed Guideway Modernization Formula
XI. Metropolitan Planning Program (49 U.S.C. 5303) and State 
Planning and Research Program (49 U.S.C. 5313(b))
    A. Metropolitan Planning Urbanized Area Program
    B. State Planning and Research Program
    C. Data Used for Metropolitan Planning and State Planning and 
Research Apportionments
    D. Planning Emphasis Areas (PEAs)
XII. Period of Availability of Funds
XIII. Notice of Pre-Award Authority To Incur Project Costs
    A. Background
    B. Current Coverage
    C. Conditions
    D. Environmental and Other Requirements
XIV. Electronic Grant Making and Management Initiatives: Fiscal Year 
1996 and Beyond
    A. Background
    B. On-Line Grantee Program
    C. Electronic Grant Making and Management (EGMM)
    D. Electronic Signature of Certifications and Assurances
    E. Future EGMM Expansion
XV. Quarterly Approval of Grants
XVI. Grant Application Procedures
Tables
    1. FTA FY 1996 Appropriations and ISTEA Authorizations for Grant 
Programs
    2. FTA FY 1996 Section 5307 Urbanized Area Formula 
Apportionments and ISTEA Authorized Levels
    3. FTA FY 1996 Section 5311 Nonurbanized Area Formula 
Apportionments, Section 5311(b) Rural Transit Assistance Program 
(RTAP) Allocations, and ISTEA Authorized Levels
    4. FTA FY 1996 Section 5310 Elderly and Persons With 
Disabilities Apportionments and ISTEA Authorized Levels
    5. FTA FY 1996 Section 5309(m)(1)(A) Fixed Guideway 
Modernization Formula Apportionments and ISTEA Authorized Levels
    6. FTA FY 1996 Section 5309(m)(1)(B) New Start Allocations and 
ISTEA Authorized Levels
    7. FTA FY 1996 Section 5309(m)(1)(C) Bus Allocations and ISTEA 
Authorized Levels
    8. FTA FY 1996 Section 5303 Metropolitan Planning and Section 
5313(b) State Planning and Research Apportionments, and ISTEA 
Authorized Levels
    9. Unit Values of Data--FTA FY 1996 Section 5307 Urbanized Area 
Formula, Section 5311 Nonurbanized Area Formula, and Section 
5309(m)(1)(A) Fixed Guideway Modernization Formula Apportionments

I. Codification of Federal Transit Laws

    On July 5, 1994, President Clinton signed Public Law 103-272, which 
codifies Federal transit laws at title 49, chapter 53 of the United 
States Code. The enactment of Public Law 103-272 repeals the FT Act of 
1992, as amended (the Act), without substantive changes to programs. 
The original meaning of the Act's provisions are unchanged by this 
codification, even though the new Public Law 103-272 language, in some 
instances, differs from that of the Act. The codification now includes 
laws enacted through July 5, 1994. 

[[Page 58141]]
Additional 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. Listed below are the most commonly used citations:

----------------------------------------------------------------------------------------------------------------
                Subject                       49 U.S.C. section           Former Federal Transit Act citation   
----------------------------------------------------------------------------------------------------------------
Capital Program........................  5309                         Section 3                                 
Metropolitan Planning Program..........  5303                         Section 8                                 
Urbanized Area Formula Program.........  5307                         Section 9                                 
Transit Employee Protective              5333(b)                      Section 13(c)                             
 Certification.                                                                                                 
National Transit Database*.............  5335                         Section 15                                
Elderly and Persons with Disabilities    5310                         Section 16                                
 Program.                                                                                                       
Nonurbanized Area Formula Program......  5311                         Section 18                                
Rural Transit Assistance Program (RTAP)  5311(b)(2)                   Section 18(h)                             
State Planning and Research Program....  5313(b)                      Section 26(a)(2)                          
----------------------------------------------------------------------------------------------------------------

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 
Governors for capital and operating assistance in nonurbanized areas. 
The Elderly and Persons with Disabilities Program funds are apportioned 
by statutory formula to the Governors to provide capital assistance to 
organizations providing transportation service for the elderly and 
persons with disabilities. 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 for the Metropolitan Planning Program are apportioned by a 
statutory formula to the Governors for allocation by them to 
Metropolitan Planning Organizations (MPOs) in urbanized areas or 
portions thereof. Appropriated funds for the State Planning and 
Research Program also are apportioned to States by a statutory formula. 
New Start funds identified for specific projects in the 1996 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 1996, the appropriation for the Urbanized Area 
Formula Program and the Nonurbanized Area Formula Programs is 
$2,001,315,905. Of this amount, 94.50 percent ($1,891,243,530) is made 
available to the Urbanized Area Formula Program, and 5.50 percent 
($110,072,375) is made available to the Nonurbanized Area Formula 
Program. The other program appropriations contained in this Notice are 
as follows: $4,500,000 for the Rural Transit Assistance Program (RTAP); 
$51,609,095 for the Elderly and Persons with Disabilities Program; 
$39,500,000 for the Metropolitan Planning Program; $8,250,000 for the 
State Planning and Research Program; and $1,665,000,000 for the Capital 
Program. Of the Capital Program amount, $666,000,000 is for Fixed 
Guideway Modernization, $666,000,000 is for New Starts, and 
$333,000,000 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. ISTEA Authorized Program Levels

    For the first time, FTA is publishing the formula apportionment and 
allocation tables that compare the maximum program level proposed in 
the ISTEA authorization law for fiscal year 1996 and the actual program 
funds appropriated by Congress for fiscal year 1996. The first set of 
columns shows the actual appropriation as apportioned for this fiscal 
year, and the second set of columns shows the authorization level. The 
funding level available to an urbanized area or State for obligation is 
the appropriated amount as apportioned to the area. The authorized 
level does not represent funds that are actually available during the 
fiscal year. Rather, it reflects the maximum dollar amount authorized 
in ISTEA for which funds can be appropriated by Congress for a 
particular fiscal year.

C. Project Management Oversight

    49 U.S.C. 5327 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 Program, the Nonurbanized 
Area Formula Program, the National Capital Transportation Act, as 
amended, 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 the 
Urbanized Area Formula Program, the Nonurbanized Area Formula Programs 
and the National Capital Transportation Act, as amended, for fiscal 
year 1996, and three-quarters of one percent of Capital Program funds 
have been reserved for these purposes before apportionment of the 
funds.

IV. Departmental Initiatives

A. Livable Communities Initiative

    The FTA developed the Livable Communities Initiative to encourage a 
stronger link between transit and communities. FTA is promoting the 
development of community-sensitive transit facilities and services in 
order to increase transit ridership, improve personal mobility and 
enhance the quality of life in communities. Active community 
involvement in the planning and design process is essential in 
developing more community-sensitive transit, and planning methods need 
to be more responsive to community concerns.
    Community-sensitive transit is customer-friendly, community-
oriented and designed to function effectively within the community. 
Customer-friendly transit provides readily available information, 
safety and security measures. Real time customer information, 
monitoring devices, help zones and improved lighting are illustrative 
characteristics. Community-oriented transit makes its transfer points 
both origins and destinations of trips through the provision of on-site 
services such as child care, public safety, health care and retail 
conveniences. Well 

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designed transit, from the perspective of more livable communities, 
improves pedestrian access, increases the person-carrying capacity of 
local transportation networks, and reflects the aesthetic and historic 
character of communities. More community-sensitive transit may result 
in increased transit ridership, reduced single occupant vehicle trips 
and improved air quality. In fiscal year 1995, FTA awarded a number of 
capital grants to implement projects which reflected the 
characteristics of community-sensitive transit.
    The Livable Communities Initiative recognizes the important role 
that local land use and transportation policy can play in improving the 
effectiveness of transit. These are important tools in promoting 
transit facilities and services which help to make communities more 
livable. Mixed use development around transportation nodes combined 
with parking management, priority access for transit vehicles and 
transit pass programs can significantly reduce auto trips and increase 
transit ridership. FTA is asking transit agencies to work with local 
governments, employers and the business community in implementing 
transit supportive land use and transportation strategies through the 
metropolitan planning process.
    FTA urges grantees to incorporate the concepts of the Livable 
Communities Initiative into the planning and capital projects financed 
with Federal assistance identified in this Notice and funds transferred 
as permitted by the flexible funding provisions of ISTEA. In addition, 
FTA urges grantees to consider incorporating quality design and art 
into transit projects funded with FTA assistance. FTA Circular 
C9400.1A, Design and Art and Transit Projects, June 9, 1995 provides 
more detail on this matter.

B. Intelligent Transportation Systems

    The Department of Transportation is actively promoting the 
development of Intelligent Transportation Systems (ITS) which apply 
advanced computer, communication, information and navigation 
technologies to surface transportation systems. ITS technologies 
improve customer service and make accurate information available to the 
traveling public, thus enabling travelers to make more informed 
transportation decisions, thereby improving the operational efficiency 
of transit services.
    Customer services are improved through real-time information on bus 
and train arrival, reducing the stress of waiting for vehicles to 
arrive; in-vehicle signs and enunciator systems which inform passengers 
of upcoming stops and other relevant information; hold notification to 
vehicles at change-mode points; emergency response systems which 
decrease delays in responding to problems; and easier access through 
the use of electronic fare cards which eliminate specialized passes, 
cash fares or tokens. For example, the Milwaukee County Transit 
Authority reports on-time schedule adherence improved from 90 percent 
to 94 percent, thus increasing customer service reliability.
    Operational efficiency of transit operations can also be improved 
using these technologies. Automatic Vehicle Location technology has 
helped the Kansas City Area Transit Authority decrease capital costs by 
approximately $1.8 million and operating costs by $400,000 annually. 
The planned introduction of Smart Cards in the Metropolitan Atlanta 
Rapid Transit Authority rail stations as estimated will save 
approximately $2.4 million in annual cash handling costs.
    It is important that transit agencies consider the application of 
these more advanced technologies as current planning and capital 
programs are developed. Authorities planning to purchase equipment such 
as radios, in-vehicle signs, etc. should consider the inclusion of 
state-of-the-art technologies in their programs.
    Applications of these technologies are fully enhanced if the 
transit systems are compatible with similar technologies introduced in 
traffic management systems being acquired by city traffic departments. 
Traveler information systems for all customers are enhanced by 
providing both transit and highway information. Such systems include 
data which is readily and freely shared between the transit and highway 
ITS systems.
    By integrating these systems, a ``Core Infrastructure'' of 
technology will be created providing maximum benefits to all travelers, 
and specifically to those who use transit within metropolitan areas. 
Elements of these systems are currently being purchased.
    As requests for funding assistance are received by the FTA and 
other USDOT modal administrations, they will be reviewed with an intent 
toward ensuring that all surface transportation modes using or planning 
ITS systems share data to realize the fullest advantages of these 
systems. Metropolitan Planning Organizations, state Departments of 
Transportation, and transit authorities are encouraged to cooperate in 
the planning of ITS systems to ensure that they are able to share data 
and are expandable to accept new applications with minimal additional 
cost. It is important that decision makers keep their options open in 
specifying and procuring ITS systems so future enhancements may be 
readily added onto systems without costly conversion or modification.
    To achieve the full benefits of ITS in metropolitan areas, it is 
important that the component elements be able to ``talk'' with each 
other and thereby share data.
    In specifying and procuring ITS systems FTA urges grantees to 
incorporate the ability to share data between highway and transit 
elements and to keep future expansion options open.
    For further information, please contact the appropriate FTA 
Regional Administrator.

C. Expanded Capital Eligibility

    Bus Overhaul: Effective March 31, 1996, bus overhauls will be 
eligible for capital assistance. At FTA's request, the 1996 DOT 
Appropriations Act amended 49 U.S.C 5302(a)(1)(B) and (C) to remove the 
requirement that bus rehabilitation or bus remanufacturing must extend 
the economic life of the bus. This change is intended to encourage the 
maintenance and improvement of bus rolling stock assets. Such overhaul 
work can be contracted out or performed directly by transit personnel, 
and will apply to all revenue service buses. FTA intends to issue 
guidance regarding the implementation of bus overhauls as a capital 
expenditure.
    Associated Capital Maintenance Items: FTA has revised the procedure 
for determining whether spare parts to be acquired under the Urbanized 
Area Formula Program and the Capital Program are eligible for capital 
funding. Under 49 U.S.C. 5307(b)(4), certain spare parts are considered 
an eligible capital expense if these items cost at least one-half of 
one percent of the current fair market value of the rolling stock on 
which the items are to be used. Previously, FTA required that the 
current fair market value of rolling stock for which the equipment is 
to be used was the cost of new rolling stock. Consistent with the 
statute, FTA has revised the method of determining the current fair 
market value of rolling stock that serves as the basis for the spare 
parts eligibility calculation. It is now based on the current average 
vehicle value of a recipient's fleet of vehicles. Spare parts to be 
purchased for a bus fleet are eligible for capital funding if they cost 
at least one-half of one percent of the straight line depreciated value 
of the average fleet vehicle or the depreciated value of a comparable 
bus of the same age and type. 

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D. FTA Home Page on the Internet

    FTA in its efforts to provide better customer service and broaden 
the availability of FTA information has established an FTA Home Page on 
the Internet. This apportionment Notice as well as recently issued FTA 
circulars (Section 5309 Capital Program: Grant Application 
Instructions--C9300.1, September 29, 1995; Grant Management Guidelines, 
C5010.1B, September 7, 1995; and Third Party Contracting Requirements, 
C4220.1C, October 1, 1995) will be contained therein.
    The FTA Home Page may be reached through the DOT Home Page at the 
following address: http://www.dot.gov. Once in the DOT Home Page, click 
on the ``Browse the DOT Administrations'' button and then scroll down 
to FTA and click. The FTA Home Page may also be accessed by using the 
worldwide web (www). The FTA direct www address is: http://www.dot.gov/
dotinfo/fta/index.html.

V. Urbanized Area Formula Program (49 U.S.C. 5307)

A. Total Urbanized Area Formula Apportionments

    In addition to the appropriated fiscal year 1996 Urbanized Area 
Formula funds of $1,891,243,530, the apportionment also includes 
$1,030,920 in deobligated funds authorized by 49 U.S.C. 5308 which have 
become available for reapportionment for the Urbanized Area Formula 
Program as provided by 49 U.S.C. 5336(i).
    Table 2 displays the amount apportioned for the Urbanized Area 
Formula Program. After the one-half percent for oversight is reserved 
($9,456,218), the amount appropriated for this program is 
$1,881,787,312. The funds to be reapportioned, described in the 
previous paragraph, were then added. Thus, the total amount apportioned 
for this program is $1,882,818,232.

B. Data Used for Urbanized Area Formula Apportionments, and Fiscal Year 
1995 Apportionment Adjustment

    Data from the 1994 National Transit Database (49 U.S.C. 5335) 
Report Year submitted in late 1994 and early 1995 have been used to 
calculate the fiscal year 1996 Urbanized Area Formula apportionments 
for urbanized areas 200,000 in population and over. The population and 
population density figures used in calculating the Urbanized Area 
Formula are from the 1990 Census.
    An adjustment has been made to the apportionment for one urbanized 
area because of a correction to data from the 1993 National Transit 
Database that were used to compute the fiscal year 1995 Urbanized Area 
Formula apportionments published in the Federal Register of October 12, 
1994 (59 FR 51758). The difference between the corrected apportionment 
and the previously published apportionment resulted in a decrease, and 
the necessary adjustment has been made to the area's apportionment for 
fiscal year 1996.

C. Adjustments for Energy and Operating Efficiencies

    49 U.S.C. 5336(b)(2)(E) provides that, if a recipient of Urbanized 
Area Formula Program funds 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(b)(2)(A)(i) 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 1996 Urbanized Area Formula apportionment 
reflect the amount the recipient would have received without the 
reductions in mileage.

D. Repayment of Temporary Matching Fund Waivers

    In accordance with the Temporary Matching Fund Waiver provision 
authorized by 49 U.S.C. 5307(i)(3) grantees were able to request a 
Federal share of 100 percent up to the area's total apportionment. Four 
grants or amendments were awarded which employed 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 
were to be repaid by March 30, 1994. If not repaid, the amount owed 
would be deducted from the area's fiscal years 1995 and 1996 Urbanized 
Area Formula apportionments.
    All affected grantees opted to have their future apportionments 
reduced rather than repay funds. 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 amount of the project's original local share that was waived. Of 
the calculated amount determined for repayment, 50 percent was deducted 
from the fiscal year 1995 Urbanized Area Formula apportionment. The 
remaining 50 percent is deducted from fiscal year 1996. The dollar 
amounts published in this Notice reflect these fiscal year 1996 
adjustments, and the affected areas have been so advised.

E. Urbanized Area Formula Fiscal Year 1996 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 in Section H, funds attributed to an urbanized area 
under 200,000 in population, located 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 1996 limitations on the amount of Urbanized Area 
Formula funds that may be used for operating assistance are shown on 
Table 2 with the fiscal year 1996 apportionment.
    The operating assistance limitations for all urbanized areas have 
been adjusted by 49 U.S.C. 5336(d)(2) 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 1994, 
published by the Department of Labor (DOL), establishes that the 
calendar year 1994 CPI increase for all urban consumers is 2.7 percent. 
This increase was applied against the base operating assistance 
limitation calculated in accordance with 49 U.S.C. 5336(d)(2).
    This adjustment results in an overall national fiscal year 1996 
authorized operating assistance limitation level of $1,112,922,445. 
However, the 1996 DOT Appropriations Act limits the nationwide 
availability for operating assistance to a maximum of $400,000,000. 
Further, it maintains the level of transit operating assistance to 
urbanized areas of less than 200,000 in population at seventy-five 
percent of the amount of operating assistance such areas received in 
fiscal year 1995. Accordingly, the operating assistance limitation 
published in this Notice takes into account both the 1996 DOT 
Appropriations Act and Federal transit laws. Therefore, the higher 
operating assistance limitation as authorized under Federal transit 
laws 

[[Page 58144]]
($1,112,922,445) was reduced to the $400,000,000 required by the 1996 
DOT Appropriations Act by taking a pro rata reduction across all 
categories of grantees. Further, the operating assistance limitation to 
urbanized areas less than 200,000 in population was adjusted to 
$92,949,803 or seventy-five percent of the amount of their fiscal year 
1995 level of $123,933,070. The remaining $307,050,197 of the 
$400,000,000 was prorated to urbanized areas above 200,000 in 
population, as authorized by the 1996 DOT Appropriations Act.
    Consistent with the 1996 Conference Report, the Secretary hereby 
directs each area of 1,000,000 or more in population to give priority 
consideration to the impact of reductions in operating assistance on 
smaller transit authorities operating within the area, and to consider 
the needs and resources of such transit authorities when the limitation 
is distributed among all transit authorities operating in the area.

G. Statewide Operating Assistance Limitations

    49 U.S.C. 5307(f) 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. However, the amount of operating assistance provided for 
another State or local transportation agency within the affected 
urbanized areas may not be reduced.

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. 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, 1995, 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 
combined and designated as one TMA.
    Guidance for setting the boundaries of TMAs is contained in the 
joint transportation planning regulations codified at 23 CFR part 450 
and 49 CFR part 613. In some cases, the TMA boundaries which have been 
established by the MPO for the designated TMA also include one or more 
urbanized areas with less than 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 with less than 200,000 in population is restricted.
    As required by 49 U.S.C. 5307(a)(2), a recipient(s) must be 
designated to dispense the Urbanized Area Formula funds attributable to 
TMAs. Those urbanized 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 with less 
than 200,000 in population that may receive TMA designation 
independently, or those with less than 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 Program Management, Federal 
Transit Administration, 400 7th Street, SW., Washington, DC 20590, no 
later than July 1 of each fiscal year. To date, FTA has been notified 
of the following urbanized areas with less than 200,000 in population 
that are included within the planning boundaries of designated TMAs:

----------------------------------------------------------------------------------------------------------------
               Designated TMA                           Small urbanized area included in TMA boundaries         
----------------------------------------------------------------------------------------------------------------
Baltimore, Maryland.........................  Annapolis, Maryland.                                              
Dallas-Fort Worth, Texas....................  Denton, Texas; Lewisville, Texas.                                 
Houston, Texas..............................  Galveston, Texas; Texas City, Texas.                              
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, except for those 
amounts which can be used for the payment of operating expenses, 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 (ADA) 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 its intent to 
program FTA funds for highway purposes. 

[[Page 58145]]


VI. Nonurbanized Area Formula Program (49 U.S.C. 5311) and Rural 
Transit Assistance Program (RTAP) (49 U.S.C. 5311(b)(2))

A. Nonurbanized Area Formula Program

    The fiscal year 1996 Nonurbanized Area Formula apportionments total 
$111,152,194. The Governor's apportionments are displayed on Table 3. A 
total of $110,072,375 is appropriated for the Nonurbanized Area Formula 
Program. After deducting the one-half percent for oversight ($550,362), 
the fiscal year 1996 apportionment also includes $1,630,181 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.
    The population figures used in calculating these apportionments are 
from the 1990 Census. The apportionments for the States of Illinois and 
Oklahoma have been adjusted to compensate for incorrect population 
figures used in the fiscal year 1995 apportionments.
    Each State must spend no less than 15 percent of its fiscal year 
1996 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 1996 Nonurbanized Area Formula grant 
applications must reflect this level of programming for intercity bus 
or include a certification from the Governor.

B. RTAP Program

    The fiscal year 1996 RTAP allocations to the States totaling 
$4,571,903 are also displayed on Table 3. This amount includes 
$4,500,000 in fiscal year 1996 appropriated funds, and $71,903 in prior 
year deobligated funds which have become available for reallocation for 
this program. 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.

VII. Section 5310 Elderly and Persons With Disabilities Program

    A total of $51,703,234 is apportioned to the States for fiscal year 
1996 for the Elderly and Persons with Disabilities Program. In addition 
to the fiscal year 1996 appropriation of $51,609,095, the fiscal year 
1996 apportionment also includes $94,139 in prior year unobligated 
funds which have become available for reapportionment for the Elderly 
and Persons with Disabilities Program. The apportionment for 
Connecticut is adjusted to restore fiscal year 1995 funds which were 
not obligated due to an administrative error. 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 by 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 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. 3

VIII. Surface Transportation Program ``Flexible'' Funds Used for 
Transit Purposes (Title 23, U.S.C.)

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 in transit projects, are 
transferred from the FHWA to FTA after which FTA approves the project 
and awards a grant. Flexible funds designated for transit projects must 
result from the local and state planning and programming process, and 
must be included 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, the State agency notifies FHWA that the funds are 
to be used for transit purposes and requests that the funds 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 
for one of the three existing formula programs--Urbanized Area, Elderly 
and Persons with Disabilities, or Nonurbanized Area.
    The flexible funds are then treated as FTA formula funds, although 
they retain a special identifying code. They may be used for any 
purpose eligible under these FTA programs except for operating 
expenses. 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 the 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.
    Secondly, 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 third instance 
includes the 100 percent Federal safety projects; however, these are 
subject to a nationwide ten percent program limitation.

C. Other Funds Transferred to FTA

    Certain demonstration projects authorized in 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 

[[Page 58146]]
Starts, or Fixed Guideway Modernization) for obligation and are 
administered as Capital projects.

IX. Capital Program (49 U.S.C. 5309)

A. Fixed Guideway Modernization

    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 1996, $666,000,000 was 
appropriated for fixed guideway modernization. After deducting the 
three-quarter percent for oversight ($4,995,000), $661,005,000 is 
available for apportionment to the specified urbanized areas for Fixed 
Guideway Modernization funding.
    Table 5 displays these apportionments. Fixed Guideway Modernization 
funds apportioned for this section must be used for capital projects to 
modernize or improve fixed guideway systems.
    All urbanized areas with fixed guideway systems that 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 National Transit Database 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 one mile or 
less of fixed guideway mileage under the National Transit Database are 
not included.

B. New Starts

    The fiscal year 1996 appropriation for New Starts is $666,000,000. 
In addition, Congress reprogrammed $21,361,250 in unobligated New Start 
funds originally provided in fiscal year 1993, for a total of 
$687,361,250. The entire amount was allocated to projects specified 
within the 1996 DOT Appropriations Act. The actual amount of 
unobligated fiscal year 1993 New Start funds available for 
reprogramming is only $18,361,250, thereby reducing the total amount 
available in fiscal year 1996 to $684,361,250. This amount is further 
reduced by $4,995,000 (three quarter percent of $666,000,000 for 
oversight), leaving $679,366,250 available for allocation to areas. The 
reductions were prorated against all projects. Table 6 displays the 
allocations by area and also shows prior year unobligated allocations 
for New Starts.

C. Bus

a. Fiscal Year 1996 Allocations
    The fiscal year 1996 appropriation for Bus is $333,000,000 for the 
purchase of buses, bus-related equipment and paratransit vehicles, and 
for the construction of bus-related facilities. After deducting the 
three-quarter percent for oversight ($2,497,500), $330,502,500 remains 
available for projects. The Conference Report accompanying the 1996 DOT 
Appropriations Act earmarked all of the fiscal year 1996 Bus funds to 
specified states or localities for bus and bus-related projects. In 
three instances where funds were earmarked to States, the funds were 
further suballocated to local entities within these states. The 
Conference Report also includes the multi-year ISTEA earmarks. In 
addition, the conferees direct those transit systems in the State of 
New York receiving Bus discretionary allocations in areas over 200,000 
population for the express purpose of providing fixed-route transit 
services, to purchase alternative fueled buses.
    Because the three-quarter percent for oversight was subtracted from 
the amount appropriated, each bus project identified in the Conference 
Report receives three-quarter percent less than the funding level 
contained in the report. No funds remain available for discretionary 
allocation by the Federal Transit Administrator. Table 7 displays the 
allocations of the fiscal year 1996 Bus funds by area and also shows 
prior year unobligated earmarks for the Bus Program.
b. Fiscal Year 1997 FTA Priorities for Allocation of Discretionary Bus 
Funds
    FTA is opposed to the congressional earmarking of the discretionary 
bus program because it tends to favor certain areas year after year and 
limits the ability of the Administration to focus these resources to 
address critical national bus needs, including a backlog of grant 
applications to the FTA for discretionary bus funding totalling over 
$488 million. The FTA has established two priority areas for the use of 
capital bus funds, and as future funds are available for allocation, 
the FTA Administrator will follow these priorities: (1) Bus replacement 
for transit systems with significantly overaged transit fleets; and (2) 
projects that would assist areas in meeting the fixed route bus and 
paratransit requirements under the ADA.
    Overaged Bus Transit fleets. The Federal useful life standard for 
full sized transit buses is 12 years, meaning that the FTA will not 
participate in the replacement of a standard transit bus that has not 
met its 12 year useful life. The national average age for bus fleets is 
8.3 years, which is well above the six year national average required 
to maintain the national transit bus fleet at 12 years. Some individual 
transit systems are operating bus fleets significantly above the 
national average. It is an Administration priority to use discretionary 
resources to assist such areas where formula capital resources 
available are also being used for bus replacement purposes but are 
insufficient to meet all of the bus replacement needs.
    ADA Requirements for Bus Systems. It is also an Administration 
priority to assist public transit systems to come into full compliance 
with the ADA. This means using bus capital funds to purchase accessible 
fixed-route buses as well as paratransit vehicles. This emphasis is 
particularly important in light of the January 26, 1997, deadline for 
full compliance with the ADA paratransit service requirements.
    Other Considerations. In the allocation of funding according to the 
priorities discussed above, consideration will be given to applications 
which are complete and have met all Federal requirements and to areas 
that have programmed all of their formula resources. Consideration will 
also be given to an equitable distribution of funds among areas of 
different sizes, as well as to a geographic distribution of funding.
    Fiscal Year 1997 Capital Bus Funding Requests. FTA invites transit 
authorities to submit applications for fiscal year 1997 capital bus 
funding during fiscal year 1996, with the realization that funds 
appropriated by Congress in FY 1997 may again be fully earmarked. The 
information acquired by FTA in this application process will be fully 
shared with appropriations committees during the fiscal year 1997 
appropriations process to assist them in their decision-making.

D. Capital Program Circular

    FTA has issued a new circular (Section 5309 Capital Program Grant 
Application Instructions, C9300.1, September 29, 1995) to provide 
program information and guidance in the preparation of grant 
applications for the Capital Program. 

[[Page 58147]]


X. Unit Values of Data for the Section 5307 Urbanized Area Formula and 
Section 5311 Nonurbanized Area Formula Programs, and Section 
5309(m)(1)(A) 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 9. To determine how a particular apportionment amount was 
developed, areas may multiply their population, population density, and 
data from the National Transit Database by these unit values.

XI. Metropolitan Planning Program (49 U.S.C. 5303) and State Planning 
and Research Program (49 U.S.C. 5313(b))

A. Metropolitan Planning Urbanized Area Program

    The fiscal year 1996 Metropolitan Planning apportionments to States 
for MPOs to be used in urbanized areas total $39,500,000. A basic 
allocation of 80 percent of this amount ($31,600,000) is distributed to 
the States based on the State's urbanized area population for 
subsequent State distribution to each urbanized area, or parts thereof, 
within each State. A supplemental allocation of the remaining 20 
percent ($7,900,000) is also provided to the States based on an FTA 
administrative formula to address planning needs in the larger, more 
complex urbanized areas. Table 8 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 the appropriate FTA Regional 
Office for prior approval.

B. State Planning and Research Program

    The fiscal year 1996 apportionments for the State Planning and 
Research Program total $8,250,000. Final State apportionments for this 
program are also contained on Table 8. This is the fifth 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 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.

D. Planning Emphasis Areas (PEAs)

    The PEAs are aids to the States and MPOs in the development of 
planning work programs. They are advisory and are intended to serve 
FTA, FHWA, and the rest of the Department as a means of helping to meet 
national transportation needs and implementing national transportation 
policy. The last PEAs were issued by the FTA and the FHWA on July 11, 
1994, for Federal fiscal years 1994 and 1995. These remain in effect 
until changed, which is expected some time during the first quarter of 
fiscal year 1996.
    The PEAs currently under development will address common problems 
that have been identified during ongoing reviews of metropolitan (and 
State) planning processes and will also highlight program objectives 
identified in FTA and FHWA strategic plans. These include, but are not 
limited to, financial planning/innovative financing, public 
participation/environmental justice, transportation data/modeling, 
Intelligent Transportation Systems, multimodalism, and the need for 
community sensitive transportation that considers social, 
environmental, economic, land-use and other quality of life factors 
early in the transportation planning and development process.

XII. 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 1996. Any of these apportioned funds unobligated at the 
close of business on September 30, 1999, 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 1996. Any such funds remaining unobligated at the 
close of business on September 30, 1998, will revert to FTA for 
reapportionment among the States under the Nonurbanized Area Formula 
Program. Funds allocated to States under the Elderly and Persons with 
Disabilities Program in this Notice must be obligated by September 30, 
1996. Any such funds remaining unobligated as of this date will revert 
to FTA for reapportionment among the States under the Elderly and 
Persons with Disabilities Program. The 1996 DOT Appropriations Act 
includes a provision requiring that fiscal year 1996 New Starts and Bus 
funds not obligated for their original purpose as of September 30, 
1998, shall be made available for other discretionary projects within 
the respective categories of the Capital Program. Similar provisions in 
the 1994 and 1995 DOT Appropriations Acts required that fiscal year 
1994 Bus and New Start funds that are not obligated by September 30, 
1996, shall also be made available for other discretionary Bus or New 
Start projects, respectively, and fiscal year 1995 Bus and New Start 
funds unobligated by September 30, 1997, shall be made available for 
other discretionary Bus or New Start projects, respectively.

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. Because this provision worked so well to reduce 
the paperwork burden on both the grantee and FTA regional offices in 

[[Page 58148]]
fiscal year 1995, FTA further broadened this authority.

B. Current Coverage

    In fiscal year 1996, authority to incur costs for Fixed Guideway 
Modernization Formula, Metropolitan Planning, Urbanized Area Formula, 
Elderly and Persons with Disabilities, Nonurbanized Area Formula, and 
State Planning and Research in advance of possible future Federal 
participation applies to fiscal year 1996 FTA funds apportioned in this 
Notice for the programs listed above, as well as funds to be 
apportioned in fiscal year 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 1996 and 1997, provided that the 
projects are included in a Federally approved STIP. The flexible funds 
do not have to be transferred to FTA before the authority can be used. 
This pre-award authority also applies to Bus funds identified in this 
Notice. The pre-award authority does not apply to Capital New Start 
funds.

C. Conditions

    Similar to the FTA 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 funds to which this authority applies, the authority 
expires with the lapsing of fiscal year 1997 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 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 
transportation improvement program, 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 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.

XIV. Electronic Grant Making and Management Initiatives: Fiscal Year 
1996 and Beyond

A. Background

    As a result of the National Performance Review and the FTA 
strategic planning process, the FTA is implementing a series of 
automation improvements in the grant making and management process 
which are designed to improve customer service and efficiency of 
program delivery. Known as the Electronic Grant Making and Management 
(EGMM) initiative, steps are underway to provide a streamlined 
electronic interface between grantees and FTA which will allow complete 
electronic application submission, review, approval, and management of 
all grants. The ultimate goal is to have in place a fully electronic, 
paperless process for awarding and managing Federal transit assistance 
programs involving grants and cooperative agreements.

B. On-Line Grantee Program

    The On-Line Grantee Program is now available to all grantee 
agencies to enable them to access the FTA Grants Management Information 
System (GMIS) data base via a toll free telephone connection. This 
program was initially designed to permit grantees to inquire about the 
status of grants only, but has now been expanded to all registered 
grantees for filing their required quarterly financial status and 
narrative progress reports and to make annual certifications and 
assurances through GMIS. Over 470 of FTA's approximately 700 grantees 
are currently ``on line''.

C. Electronic Grant Making and Management (EGMM)

    This initiative streamlines the entire FTA grant making and 
management process through a paperless electronic grant application, 
review, approval, acceptance and management process. The Department of 
Labor has agreed to participate in the program and receive requests for 
Transit Employee Protective Certification of projects, as well as issue 
the Transit Employee Protective Certifications electronically for the 
EGMM pilot program participants.
    During fiscal year 1995, 22 grantee agencies participated in the 
FTA EGMM pilot program. The pilot grantees successfully tested and 
utilized the EGMM system to electronically develop, submit, and manage 
their grants during the full life cycle of the grant via grantee 
computer station connections to the FTA GMIS computer using a modem and 
toll free telephone connection. FTA is continuing to implement the EGMM 
system during fiscal year 1996 through the inclusion of additional 
grantee agencies. Any transit agency interested in participating in any 
aspect of the EGMM program should contact the appropriate FTA Regional 
Office. 

[[Page 58149]]


D. Electronic Signature of Certifications and Assurances

    The FTA is required by 49 U.S.C. 5307 as well as other laws and 
regulations to obtain specific certifications and assurances for its 
programs. In fiscal year 1995, FTA compiled the certifications and 
assurances applicable to the FTA programs into one document published 
in the Federal Register. Grantees are now able to sign one document 
annually certifying to all the certifications and assurances applicable 
to FTA grants. During fiscal year 1996, all EGMM grantee participants 
and on-line grantee participants will be able to provide this 
certification electronically, completely eliminating paper 
certification.

E. Future EGMM Expansion

    FTA has several activities under consideration to expand the 
functional content of EGMM, including the following: an enhanced 
distributive PC-based system, a mechanism to facilitate electronic 
submission, review, approval and management of statewide transportation 
improvement programs; electronic development, review, approval and 
management of unified planning work programs; and a more comprehensive 
electronic library system.
    Through these initiatives, FTA hopes to more effectively and 
efficiently serve our customers. We appreciate and look forward to the 
continued support of our grantee agencies as we look for additional 
ways to improve delivery of the mass transit program.

XV. Quarterly 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, and State Planning and Research grants are processed on a 
quarterly basis. This includes 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 Transit Employee Protective Certification will be 
approved before the end of the quarter. There are only two factors 
which would delay FTA approval of the project beyond the end of a 
quarter. First is a failure by DOL to issue a Transit Employee 
Protective 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, 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, applications 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.
    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, 1995.

XVI. 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; Elderly and Persons with Disabilities--
C9070.1C, December 23, 1992; and Section 5309 Capital Program: Grant 
Application Instructions--C9300.1, September 29, 1995. 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 Metropolitan Planning, and 
State Planning and Research funds may be obtained from each FTA 
Regional Office. Also available are newly revised editions of the Grant 
Management Guidelines, C5010.1B, September 7, 1995; and Third Party 
Contracting Requirements, C4220.1C, October 1, 1995. Copies of 
circulars are available from FTA Regional Offices, and revised 
circulars are also available on the FTA Home Page on the Internet.

    Issued on November 17, 1995.
Gordon J. Linton,
Administrator.

BILLING CODE 4910-57-P

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[FR Doc. 95-28803 Filed 11-21-95; 11:07 am]
BILLING CODE 4910-57-C