[Federal Register Volume 61, Number 48 (Monday, March 11, 1996)]
[Rules and Regulations]
[Pages 9650-9651]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-5670]
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DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
49 CFR Part 671
[Docket 93-A]
RIN 2132-AA49
Temporary Local Match Waiver; Removal
AGENCY: Federal Transit Administration, DOT.
ACTION: Final Rule.
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SUMMARY: Because the supporting statutory authority has expired, the
Federal Transit Administration (FTA) is removing the Temporary Local
Match Waiver for sections 9 and 18 from the Code of Federal
Regulations. FTA made this determination as part of the President's
``reinventing government'' initiative.
EFFECTIVE DATE: March 11, 1996.
FOR FURTHER INFORMATION CONTACT: Nancy Zaczek, Attorney-Advisor, Office
of the Chief Counsel, (202) 366-4011.
SUPPLEMENTARY INFORMATION:
Introduction
On August 11, 1993, FTA published an Interim Final Rule announcing
a temporary change in how it finances capital projects for certain FTA-
funded programs, specifically allowing for a ``waiver'' of the local
match requirements under two FTA-funded programs. 58 FR 42690. The
underlying statutory authority for that policy change has expired, thus
prompting FTA to remove 49 CFR 671 from the Code of Federal
Regulations. The Federal Highway Administration (FHWA) published a
final rule on February 2, 1993 at 58 FR 6713, subsequently codified at
23 CFR 140, waiving the State matching requirements to fund certain
kinds of construction projects under the Federal-aid highway program.
Because FTA and FHWA were authorized by the same statute to waive the
local or State matching requirements, FTA and FHWA adopted similar
approaches to implementing the temporary waiver program.
The Temporary Waiver Program
As explained in the interim final rule, under section 9 of the
Federal Transit Act, as amended (FT Act) now codified at 49 U.S.C.
Sec. 5336 and called ``urbanized area formula program,'' and under
section 18 of the FT Act, now codified at 49 U.S.C. Sec. 5311 and
called ``non-urbanized area formula program,'' FTA and a recipient of
its funds share the costs of financing local mass transit capital
projects. Specifically, FTA pays eighty percent of a capital project's
eligible costs (the Federal share), and a recipient pays the remaining
twenty percent (the local match or local share). To ensure the
sufficiency of local financing for a project, 49 U.S.C. Sec. 5307
requires a recipient to certify that it can pay its share of the
project's cost. A similar requirement applies to grants made under
FTA's ``non-urbanized area formula program.''
During fiscal years 1992 and 1993, however, an alternative approach
to these Federal and local share requirements was available.
Specifically, the Dire Emergency Supplemental Appropriations Act, 1992,
P.L. 102-302, and the Department of Transportation Appropriations Act,
1993, P.L. 102-388, (the Acts) permitted FTA, under limited
circumstances, to waive in fiscal years 1992 and 1993 part or all of
the local share required for capital projects under 49 U.S.C.
Secs. 5311 and 5336, thereby increasing the proportion of Federal money
used to pay for a project, which Part 671 called the ``increased
Federal share.'' In short, in fiscal years 1992 and 1993 a recipient
could have funded a project's costs using only Federal money.
The rule specified the circumstances under which FTA would grant a
waiver, described the application process, and detailed procedures for
the repayment of the ``increased Federal share.'' The waiver applied
only to funds obligated by FTA and drawn down by the recipient before
October 1, 1993.
Analysis of the Comment
FTA received only one comment to the interim final rule. That
comment, from a State Department of Transportation (DOT), raised
concerns about how the ``increased Federal share'' would be repaid by a
recipient. The ``increased Federal share'' equals the amount of the
local share waived by FTA.
The rule specified that recipients must repay the ``increased
Federal share'' before March 31, 1994. Should a recipient fail to meet
this deadline, the rule provided that FTA would deduct fifty percent of
the amount waived in fiscal year 1995 and fifty percent in fiscal year
1996 from the recipient's apportionment. If, however, the funds were
transferred from the Surface Transportation Program or the Congestion
Mitigation and Air Quality program to formula programs for urbanized or
non-urbanized areas and the recipient did not repay those funds before
March 31, 1994, the Federal Highway Administration (FHWA) would deduct
fifty percent of the amount waived from the originating apportionment
under the appropriate highway program in FY 1995 and the remaining
portion in FY 1996.
The State DOT objected to the latter alternative and recommended
that State DOTs be given a formal role in approving any waiver
requested by a recipient, and that any waiver of the local share for a
transit project be repaid from a recipient's transit apportionment
regardless of the original source of the funding.
This State DOT was the only commenter who raised this particular
concern and therefore FTA concluded that virtually all FTA recipients
and State DOTs did not see this particular repayment provision as
burdensome or objectionable. Moreover, the Acts did not give State DOTs
a role in approving waiver requests. Consequently, FTA did not change
this particular provision.
[[Page 9651]]
Regulatory Analysis
This is not a significant rule under Executive Order 12866 or under
the Department's Regulatory Policies and Procedures. It does not impose
costs on regulated parties; it merely removes a Part that has become
obsolete and whose underlying statutory authority has lapsed. There are
not sufficient Federalism implications to warrant the preparation of a
Federalism Assessment. The Department certifies that this rule will not
have a significant economic impact on a substantial number of small
entities.
List of Subjects in 49 CFR Part 671
Grant programs-transportation, Mass Transportation.
Accordingly, for the reasons set forth above, and under the
Authority 49 U.S.C. 5334 (b)(2), part 671 is hereby removed.
Issued: March 5, 1996.
Gordon J. Linton,
Administrator.
[FR Doc. 96-5670 Filed 3-8-96; 8:45 am]
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