[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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