[Federal Register Volume 67, Number 1 (Wednesday, January 2, 2002)]
[Notices]
[Pages 126-184]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-32117]



[[Page 125]]

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

Part II





Department of Transportation





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



Federal Transit Administration



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



FTA Fiscal Year 2002 Apportionments, Allocations and Program 
Information; Notice

  Federal Register / Vol. 67, No. 1 / Wednesday, January 2, 2002 / 
Notices  

[[Page 126]]


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

DEPARTMENT OF TRANSPORTATION

Federal Transit Administration


FTA Fiscal Year 2002 Apportionments, Allocations and Program 
Information

AGENCY: Federal Transit Administration (FTA), DOT.

ACTION: Notice.

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

SUMMARY: The Department of Transportation (DOT) and Related Agencies 
Appropriations Act for Fiscal Year 2002 (FY 2002 DOT Appropriations 
Act) (Pub. L. 107-87) was signed into law by President Bush on December 
18, 2001, and provides FY 2002 appropriations for the Federal Transit 
Administration (FTA) transit assistance programs. Based upon this Act, 
the Transportation Equity Act for the 21st Century (TEA-21), and 49 
U.S.C. Chapter 53, this notice contains a comprehensive list of 
apportionments and allocations for transit programs.
    In addition, prior year unobligated allocations for the section 
5309 New Starts and Bus Programs are listed. The FTA policy regarding 
pre-award authority to incur project costs, Letter of No Prejudice 
Policy, and other pertinent program information are provided.

FOR FURTHER INFORMATION CONTACT: The appropriate FTA Regional 
Administrator for grant-specific information and issues; Mary Martha 
Churchman, Director, Office of Resource Management and State Programs, 
(202) 366-2053, for general information about the Urbanized Area 
Formula Program, the Nonurbanized Area Formula Program, the Rural 
Transit Assistance Program, the Elderly and Persons with Disabilities 
Program, the Clean Fuels Formula Program, the Over-the-Road Bus 
Accessibility Program, the Capital Investment Program, or the Job 
Access and Reverse Commute Program; or Paul L. Verchinski, Chief, 
Statewide and Intermodal Planning Division, (202) 366-1626, for general 
information concerning the Metropolitan Planning Program and the 
Statewide Planning and Research Program; or Henry Nejako, Program 
Management Officer, Office of Research, Demonstration and Innovation, 
(202) 366-3765, for general information about the National Planning and 
Research Program.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Background
II. Overview
    A. Fiscal Year 2002 Appropriations
    B. TEA-21 Authorized Program Levels
    C. Project Management Oversight
    D. VIII Paralympiad for the Disabled
III. Fiscal Year 2002 Focus Areas
    A. Transit Safety and Security
    B. 2000 Census
    C. TEAM-Web
    D. New Starts Rule and Workshops
    E. Intelligent Transportation Systems
    F. Environmental Streamlining
IV. Metropolitan Planning Program and Statewide Planning and 
Research Program
    A. Metropolitan Planning Program
    B. Statewide Planning and Research Program
    C. Data Used for Metropolitan Planning and Statewide Planning 
and Research Apportionments
    D. FHWA Metropolitan Planning Program
    E. Local Match Waiver for Specified Planning Activities
    F. Planning Emphasis Areas for Fiscal Year 2002
    G. Federal Planning Certification Reviews
    H. Consolidated Planning Grants
    I. New Starts Approval to Enter Preliminary Engineering and 
Final Design
V. Urbanized Area Formula Program
    A. Total Urbanized Area Formula Apportionments
    B. Fiscal Year 2001 Apportionment Adjustments
    C. Data Used for Urbanized Area Formula Apportionments
    D. Urbanized Area Formula Apportionments to Governors
    E. Transit Enhancements
    F. Fiscal Year 2002 Operating Assistance
    G. Designated Transportation Management Areas
    H. Urbanized Area Formula Funds Used for Highway Purposes
    I. National Transit Database Internet Reporting and Redesign 
Effort
VI. Nonurbanized Area Formula Program and Rural Transit Assistance 
Program (RTAP)
    A. Nonurbanized Area Formula Program
    B. Rural Transit Assistance Program (RTAP)
VII. Elderly and Persons with Disabilities Program
VIII. FHWA Surface Transportation Program and Congestion Mitigation 
and Air Quality Funds Used for Transit Purposes (Title 23, U.S.C. 
104)
    A. Transfer Process
    B. Matching Share for FHWA Transfers
IX. Capital Investment Program
    A. Fixed Guideway Modernization
    B. New Starts
    C. Bus
X. Job Access and Reverse Commute Program
XI. Over-the-Road Bus Accessibility Program
XII. Clean Fuels Formula Program
XIII.National Planning and Reserach Program
XIV. Unit Values of Data for Urbanized Area Formula Program, 
Nonurbanized Area Formula Program, anf Fixed Guideway Modernization
XV. Period of Availability of Funds
XVI. Automatic Pre-Award Authority to Incur Project Costs
    A. Policy
    B. Conditions
    C. Environmental, Planning, and Other Federal Requirements
    D. Pre-award Authority for New Starts Projects
    1. Preliminary Engineering and Final Design
    2. Acquisition Activities
    3. National Environmental Policy Act (NEPA) Activities
XVII. Letters of No Prejudice (LONP) Policy
    A. Policy
    B. Conditions
    C. Environmental, Planning, and Other Federal Requirements
    D. Request for LONP
XVIII. FTA Homepage on the Internet
XIX. FTA Fiscal Tear 2002 Annual List of Certifications and 
Assurances
XX. Grant Application Procedures

Tables

1. FTA FY 2002 Appropriations for Grant Programs
2. FTA FY 2002 Metropolitan Planning Program and Statewide Planning 
and Research Program Apportionments
3. FHWA FY 2002 Estimated Metropolitan Planning (PL) Program 
Apportionments
4. FTA FY 2002 Urbanized Area Formula Apportionments
5. FTA FY 2002 Nonurbanized Area Formula Apportionments, and Rural 
Transit Assistance Program (RTAP) Allocations
6. FTA FY 2002 Elderly and Persons with Disabilities Apportionments
7. FTA FY 2002 Fixed Guideway Modernization Apportionments
8. FTA FY 2002 New Starts Allocations
8A. FTA Prior Year Unobligated New Starts Allocations
9. FTA FY 2002 Bus Allocations
9A. FTA Prior Year Unobligated Bus Allocations
10. FTA FY 2002 Job Access and Reverse Commute Program Allocations
11. FTA FY 2002 National Planning and Research Program Allocations
12. FTA TEA-21 Authorization Levels (Guaranteed Funding Only)
12A. FTA TEA-21 Authorization Levels (Guaranteed and Non-Guaranteed) 
Funding)
13. FTA FY 2002 Apportionment Formula for Urbanized Area Formula 
Program
14. FTA FY 1998-2003 Fixed Guideway Modernization Program 
Apportionment Formula
15. FTA FY 2002 Formula Grant Apportionments Unit Values of Data

I. Background

    Metropolitan Planning funds are apportioned by statutory formula to 
the Governors for allocation to Metropolitan Planning Organizations 
(MPOs) in urbanized areas or portions thereof to provide funds for 
their Unified Planning Work Programs. Statewide Planning and Research 
funds are apportioned to States by statutory formula to provide funds 
for their Statewide Planning and Research Programs. Urbanized Area 
Formula Program funds are apportioned by statutory formula to urbanized 
areas and to Governors to provide capital, operating and planning 
assistance in urbanized areas. Nonurbanized Area Formula Program funds 
are apportioned

[[Page 127]]

by statutory formula to Governors for capital, operating and 
administrative assistance in nonurbanized areas. Elderly and Persons 
with Disabilities Program funds are apportioned by statutory formula to 
Governors to provide capital assistance to organizations providing 
transportation service for the elderly and persons with disabilities. 
Fixed Guideway Modernization funds are apportioned by statutory formula 
to specified urbanized areas for capital improvements in rail and other 
fixed guideways. New Starts identified in the FY 2002 DOT 
Appropriations Act and Bus Allocations identified in the Conference 
Report accompanying the Act are included in this notice. FTA will honor 
those designations included in report language to the extent that the 
projects meet the statutory intent of the specific program. Job Access 
and Reverse Commute (JARC) funds are awarded on a competitive basis. 
JARC projects identified in the FY 2002 DOT Appropriations Act are 
included in this notice. Over-the-Road Bus Accessibility Program 
projects are also competitively selected.

II. Overview

A. Fiscal Year 2002 Appropriations

    The FY 2002 funding amounts for FTA programs are displayed in Table 
1. The following text provides a narrative explanation of the funding 
levels and other factors affecting the apportionments and allocations.

B. TEA-21 Authorized Program Levels

    TEA-21 provides a combination of trust and general fund 
authorizations that total $7.737 billion for the FY 2002 FTA program. 
Of this amount, $6.747 billion was guaranteed under the discretionary 
spending cap and made available in the FY 2002 DOT Appropriations Act. 
See Table 12 for fiscal years 1998-2003 guaranteed funding levels by 
program and Table 12A for the total of guaranteed and non-guaranteed 
levels by program.
    Information regarding estimates of the funding levels for FY 2003 
by State and urbanized area is available on the FTA Web site. The FY 
2003 numbers are intended for planning purposes only but may be used 
for programming Metropolitan Transportation Improvement Programs and 
Statewide Transportation Improvement Programs. Actual apportionment 
figures for FY 2002 are contained in this notice, while apportionment 
figures for FY 1998-FY 2001 can be found in the appropriate FTA fiscal 
year apportionment notice, which is available on the FTA Web site.

C. Project Management Oversight

    Section 5327 of Title 49 U.S.C., permits the Secretary of 
Transportation to use up to one-half percent of the funds made 
available under the Urbanized Area Formula Program and the Nonurbanized 
Area Formula Program, and three-quarters percent of funds made 
available under the Capital Investment Program to contract with any 
person to oversee the construction of any major project under these 
statutory programs to conduct safety, procurement, management and 
financial reviews and audits, and to provide technical assistance to 
correct deficiencies identified in compliance reviews and audits. 
Language in the 2002 DOT Appropriations Act increases the amount made 
available under the Capital Investment Program for oversight activities 
to one percent.

D. VIII Paralympiad for the Disabled

    The FY 2002 DOT Appropriations Act made $5 million available from 
the formula grants program for the VIII Paralympaid for the Disabled, 
to be held in Salt Lake City, Utah. The funds shall be available for 
grants for the costs of planning, delivery and temporary use of transit 
vehicles for special transportation needs and construction of temporary 
transportation facilities for the VIII Paralympiad for the Disabled.

III. Fiscal Year 2002 Focus Areas

A. Transit Safety and Security

    Public transit agencies throughout the nation have stepped up 
security efforts following the terrorist events of September 2001. FTA 
has launched an FY 2002 effort to assist transit providers to address 
security issues and has refocused funding to specific security-related 
activities. Initially, FTA will deploy security assessment teams to the 
largest transit systems in the country. These assessment findings and 
best practices will enable the FTA to provide extended assistance to 
all transit agencies to evaluate and update their emergency response 
plans. FTA will provide technical and funding assistance to transit 
agencies for full-scale emergency response drills based on their 
updated response plans and vulnerability assessments. Free regional 
workshops will offer security and emergency response training to local 
transit employees.
    FTA has identified $2 million of FY 2002 research funding to 
undertake security-related transit research under the auspices of the 
Transit Cooperative Research Program of the National Academy of 
Sciences.
    Also, recipients of section 5307 formula funding are reminded that 
at least one percent of the amount a grantee receives each fiscal year 
must be expended on ``mass transportation security projects'' unless 
the grantee certifies, and the Secretary of Transportation accepts, 
that the expenditure for security projects is unnecessary. It is 
unlikely that FTA will waive this requirement.
    Another potential source of funding for transit security 
enhancements is through the FHWA transfer of flexible formula funds, as 
provided in 23 U.S.C. 104, which, in conjunction with Title 23 U.S.C. 
120, provides transit agencies a 100 percent Federal share for safety 
projects (subject to a nationwide 10 percent program limitation).

B. 2000 Census

    The Census Bureau identifies and classifies urban and rural 
population and delineates urbanized areas after each decennial census. 
The FTA uses urbanized and rural designations and statistical data for 
a number of purposes, including the apportionment of funds for its 
formula based programs.
    The Census Bureau had not completed the process of delineating 
urbanized and rural areas for the 2000 Census at the time FTA 
apportioned FY 2002 funds. Therefore, the 1990 Census data was used for 
the FY 2002 apportionments contained in this notice.
    It is anticipated that a number of areas will change categories 
under the 2000 Census, as a result of growth in population and/or the 
application of new criteria that will be used to define/designate 
urbanized and rural areas. Once FTA receives the 2000 Census data, we 
will post, on the FTA Website, estimated FY 2003 apportionments for the 
formula programs.
    For further information contact Ken Johnson, FTA Office of Resource 
Management and State Programs, at (202) 366-2053.

C. TEAM-Web

    The Transportation Electronic Award Management system (TEAM) is 
FTA's electronic grant making and record keeping system. On October 1, 
2001, FTA released TEAM-Web, a new Internet version of the TEAM system. 
TEAM-Web permits grantees to submit their grant information via the 
Internet and provides for continued and enhanced submission of grant 
information electronically.
    TEAM-Web provides the recipients of financial assistance online 
access to the FTA information resources that support their mission 
critical operations,

[[Page 128]]

including real time access to detailed disbursements by project, 
balances in formula budget accounts, and the status of applications in 
the award process. The new system also has an email notification 
process that will ensure accountability when processing applications 
through the FTA Offices and the Department of Labor. All current user 
information has been migrated to the Web version of TEAM. FTA has 
conducted training sessions on how to navigate TEAM-Web in its 
Headquarters and Regional Offices. For information on future training 
sessions, contact the appropriate FTA Regional Office.
    To access TEAM-Web, log onto the Internet at http://FTATEAMWeb.fta.dot.gov. For additional information, contact Glenn 
Bottoms, Chief, Transit Data and Support Division, (202) 366-1632.

D. New Starts Rule and Workshops

    TEA-21 requires the FTA to issue regulations on the manner in which 
candidate projects for capital investment grants or loans for new fixed 
guideway systems and extensions to existing systems (New Starts) will 
be evaluated and rated. The Major Capital Investment Projects Final 
Rule (49 CFR Part 611), referred to as the New Starts Final Rule, was 
published in the Federal Register on December 7, 2000, and became 
effective on April 6, 2001.
    Electronic access to this Final Rule and related documents is 
available through the FTA Web site (http://www.fta.dot.gov), under the 
New Starts section. Paper copies of this Final Rule and other 
documentation can be obtained by contacting FTA at one of our Regional 
Offices.
    As in the previous fiscal year, FTA will conduct outreach sessions 
and workshops in FY 2002 to introduce the Final Rule and to continue 
longstanding outreach efforts on the New Starts program. Information on 
scheduled workshops can be obtained by contacting any FTA Regional 
Office, as well as the FTA Office of Planning and the FTA Office of 
Budget and Policy.

E. Intelligent Transportation Systems (ITS)

    Section 5206(e) of TEA-21 requires that Intelligent Transportation 
Systems (ITS) projects using funds from the Highway Trust Fund 
(including the Mass Transit Account) conform to National ITS 
Architecture and Standards. The FTA National ITS Architecture 
Consistency Policy for Transit Projects implements the TEA-21 
requirements and went into effect on April 8, 2001. The Policy is 
available on the FTA Web site, and guidance material is available on 
the Departmental ITS Web site at www.its.dot.gov. These standards and 
requirements apply to FY 2002 allocations included in this notice that 
contain ITS components. Using existing FTA oversight procedures, FTA 
has initiated a program to provide initial oversight and technical 
assistance with respect to National ITS Architecture Consistency 
requirements.
    Questions regarding the applicability of these standards and 
requirements should be addressed to the FTA Regional Office or FTA 
Office of Research, Demonstration and Innovation, at (202) 366-4991.

F. Environmental Streamlining

    TEA-21 directs DOT to expedite the environmental review process for 
proposed highway and transit projects. With this apportionments notice, 
FTA is introducing two measures concerning proposed major transit 
investments (New Starts) that will support timely delivery of projects, 
while maintaining and enhancing protection of the human and natural 
environment.
    First, FTA is extending automatic pre-award authority to proposed 
New Starts projects for costs incurred to acquire real property and 
real property rights upon the completion of the National Environmental 
Policy Act (NEPA) review of the proposed project. NEPA review is 
complete when FTA signs an environmental Record of Decision (ROD) or 
Finding of No Significant Impact (FONSI) or makes a Categorical 
Exclusion (CE) determination. This measure will enable grant applicants 
to begin earlier to assist persons and businesses that will be 
displaced by the project in a manner consistent with commitments made 
as part of the NEPA review and in compliance with the Uniform 
Relocation Assistance and Real Property Acquisition Policies Act (URA). 
It will also help grant applicant to initiate the lengthy process of 
acquiring property earlier.
    Second, FTA will extend automatic pre-award authority to proposed 
New Starts projects for costs incurred to carry out the NEPA review 
process and to prepare an Environmental Impact Statement (EIS), 
Environmental Assessment (EA), Categorical Exclusion (CE), or other 
environmental documents for that project upon the inclusion of that 
project in a federally approved State Transportation Improvement 
Program (STIP). FTA had previously given pre-award authority for use of 
formula funds. Now New Starts funds may serve as a funding source for 
these New Starts project NEPA activities. This measure will eliminate 
unnecessary delays in starting up the conceptual engineering, public 
involvement process, and interagency coordination for the project.
    For additional information, contact Joseph Ossi, FTA Office of 
Planning, (202) 366-1613.

IV. Metropolitan Planning Program and State Planning and Research 
Program

A. Metropolitan Planning Program

    Funding made available for the Metropolitan Planning Program (49 
U.S.C. 5303) in the FY 2002 DOT Appropriations Act is $55,422,400, 
which is the guaranteed funding level under TEA-21. The FY 2002 
Metropolitan Planning Program apportionment to States for MPOs' use in 
urbanized areas totals $55,662,971. This amount includes $55,422,400 in 
FY 2002 funds, and $240,571 in prior year deobligated funds available 
for reapportionment under this program. A basic allocation of 80 
percent of this amount ($44,530,377) is distributed to the States based 
on the State's urbanized area population as defined by the U.S. Census 
Bureau for subsequent State distribution to each urbanized area, or 
parts thereof, within each State. A supplemental allocation of the 
remaining 20 percent ($11,132,594) is also provided to the States based 
on an FTA administrative formula to address planning needs in the 
larger, more complex urbanized areas. Table 2 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 FY 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.
    By April 2002, the Census Bureau is expected to make available 
detailed results of the 2000 Census and designate new urbanized areas. 
When the Census Bureau issues its population data, FTA will request 
that States reaffirm these in-State formulas. A reaffirmation or new

[[Page 129]]

in-State formula should be submitted to the FTA Regional Office in time 
to receive approval before October 1, 2002. Currently, guaranteed and 
authorized funding levels for each State over the life of TEA-21 
(fiscal years 1999-2003) based on the 1990 Census, are posted at http://www.fta.dot.gov/office/planning/gaf.htm. FTA will post revised fiscal 
year 2003 guaranteed and authorized funding levels based on the 2000 
Census for each State at this same Web site address, when 2000 Census 
data becomes available. This information should be utilized by each 
State when reaffirming or revising in-State formulas.

B. State Planning and Research Program

    Funding made available for the State Planning and Research Program 
(49 U.S.C. 5313(b)) in the FY 2002 DOT Appropriations Act is 
$11,577,600, the guaranteed funding level under TEA-21.
    The FY 2002 apportionment for the State Planning and Research 
Program (SPRP) totals $11,698,648. This amount includes $11,577,600 in 
FY 2002 funds, and $121,048 in prior year deobligated funds, which have 
become available for reapportionment under this program. Final State 
apportionments for this program are also contained in Table 2. These 
funds may be used for a variety of purposes such 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 metropolitan 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 FY 1991 was used as a 
``hold harmless'' base in calculating funding to each State.

D. FHWA Metropolitan Planning Program

    For informational purposes, the estimated FY 2002 apportionments 
for the FHWA Metropolitan Planning Program (PL) are contained in Table 
3. Estimated apportionments for the FY 2002 FHWA State Planning and 
Research Program (SPRP) were not available at the time of publication 
of this notice.

E. Local Match Waiver for Specified Planning Activities

    Job Access and Reverse Commute Planning. Federal, State and local 
welfare reform initiatives may require the development of new and 
innovative public and other transportation services to ensure that 
former welfare recipients have adequate mobility for reaching 
employment opportunities. In recognition of the key role that 
transportation plays in ensuring the success of welfare-to-work 
initiatives, FTA and FHWA permit the waiver of the local match 
requirement for job access and reverse commute planning activities 
undertaken with both FTA and FHWA Metropolitan Planning Program and 
State Planning and Research Program funds. FTA and FHWA will support 
requests for waivers when they are included in Metropolitan Unified 
Planning Work Programs and State Planning and Research Programs and 
meet all other appropriate requirements.

F. Planning Emphasis Areas for Fiscal Year 2002

    The FTA and FHWA identify Planning Emphasis Areas (PEAs) annually 
to promote priority themes for consideration, as appropriate, in 
metropolitan and statewide transportation planning processes. To 
support this, FTA and FHWA will prepare an inventory of current 
practice, guidance and training in those areas. Opportunities for 
exchanging ideas and experiences on innovative practices in these topic 
areas also will be provided throughout the year. For FY 2002, five key 
planning themes have been identified: (1) Consideration of safety and 
security in the transportation planning process; (2) integration of 
planning and environmental processes; (3) consideration of management 
and operations within planning processes; (4) consultation with local 
officials; and (5) enhancing the technical capacity of planning 
processes.
1. Safety and Security in the Transportation Planning Process
    TEA-21 emphasizes the safety and security of transportation systems 
as a national priority and calls for transportation projects and 
strategies that ``increase the safety and security of transportation 
systems.'' This entails integration of safety and facility security 
into all stages of the transportation planning process.
    FTA and FHWA are working together to advance the state-of-practice 
in addressing safety and security in the metropolitan and statewide 
planning process through workshops and case studies. A report prepared 
by the Transportation Research Board (TRB), Transportation Research 
Circular E-C02, ``Safety-Conscious Planning,'' January 2001, describes 
the issues and recommendations identified at a Safety in Planning 
workshop held earlier. The report is available on the TRB Web site at 
www.nas.edu/trb. Also, the Institute of Transportation Engineers (ITE) 
has prepared a discussion paper on the topic, entitled ``The 
Development of the Safer Network Transportation Planning Process,'' 
which is posted to their Web site at [www.ite.org.]
2. Integrated Planning and Environmental Processes
    TEA-21 mandates the elimination of the Major Investment Study as a 
stand-alone requirement, while integrating the concept within the 
planning and project development/environmental review processes. A 
training course entitled ``Linking Planning and NEPA'' is being 
developed and will be made available at the National Transit Institute 
Web site--[www.ntionline.com].
3. Consideration of Management and Operations Within Planning Processes
    TEA-21 challenges FHWA and FTA to move beyond traditional capital 
programs for improving the movement of people and goods--focusing on 
the need to improve the way transportation systems are managed and 
operated. FTA and FHWA have convened a working group and have 
commissioned discussion papers on the topic. This information is 
available at http://plan2op.fhwa.dot.gov.
4. Consultation With Local Officials
    Consultation with local officials is a vital yet sensitive issue 
within the transportation planning process. Within metropolitan areas, 
the MPO provides the venue and policy context for this. Outside of 
metropolitan areas, FHWA and FTA are working to facilitate the most 
effective consultation processes within each State. FTA and FHWA will 
continue to ensure effective consultation between States and local 
officials in non-metropolitan areas in reviewing statewide planning 
and, specifically, in making findings in support of FTA and FHWA STIP 
approvals.
5. Enhancing the Technical Capacity of Planning Processes
    Reliable information on current and projected usage and performance 
of transportation systems is critical to the ability of planning 
processes to supply credible information to decision-makers

[[Page 130]]

to support preparation of plans and programs that respond to their 
localities' unique needs and policy issues. To ensure the reliability 
of usage and performance data, as well as the responsiveness of policy 
forecasting tools, an evaluation is needed of the quality of 
information provided by the technical tools, data sources, forecasting 
models, as well as the expertise of staff to ensure its adequacy to 
support decision-making. And if this support is found to be lacking, 
the responsible agencies within metropolitan and statewide planning 
processes are encouraged to devote appropriate resources to enhancing 
and maintaining their technical capacity.
    The metropolitan and statewide transportation planning processes 
have become critical tools for responding to increasingly complex 
issues at the State and local levels. Many of these issues are 
encompassed in previously listed planning emphasis areas (e.g., 
integrated planning and environmental processes, management and 
operations, analytical tools and methods) and include much more. It is 
essential that FTA and FHWA provide technical assistance, training, and 
information to our customers to further enhance the skills and 
capabilities they utilize to conduct effective transportation planning 
processes. The FTA and FHWA have created the Metropolitan Capacity 
Building (MCB) Program, and the Statewide and Rural Capacity Building 
Programs as tools to disseminate and coordinate information, training, 
and foster a dialogue for the exchange of ideas. More information on 
the MCB program can be found at www.mcb.fhwa.dot.gov.
    For further information on these PEAs, contact Ken Lord, FTA 
Metropolitan Planning Division, (202) 366-2836, or Shana Baker, FHWA 
Office of Metropolitan Planning and Programs, (202) 366-1862.

G. Federal Planning Certification Reviews

    The Intermodal Surface Transportation Efficiency Act (ISTEA) 
initiated, and TEA-21 continued, the requirement for the FTA and FHWA 
to certify, at least every three years, that the planning processes 
conducted in the largest metropolitan areas were being carried out in 
compliance with applicable provisions of Federal law. This provision 
applies specifically to localities termed ``Transportation Management 
Areas'' (TMA), which are urbanized areas with populations of 200,000 
and above, or other urbanized areas that may be designated by the 
Secretary of Transportation. TEA-21 further required that, in 
conducting these certification reviews, provisions be made for public 
involvement appropriate to the metropolitan area under review.
    To that end, an annual calendar of prospective dates and locations 
for certification reviews of TMAs anticipated in FY 2002 has been 
prepared and is posted on the FTA Web site at http://www.fta.dot.gov/library/planning/cert2002.htm.
    For further information regarding Federal certifications of the 
planning process, contact: for FTA, Charles Goodman, FTA Metropolitan 
Planning Division, (202) 366-1944, or Scott Biehl, FTA Office of Chief 
Counsel, (202) 366-4063; for FHWA, Sheldon Edner, FHWA Metropolitan 
Planning Division, (202) 366-4066, or Reid Alsop, FHWA Office of the 
Chief Counsel, (202) 366-1371.

H. Consolidated Planning Grants

    Since FY 1997, FTA and FHWA have offered States the option of 
participating in a pilot Consolidated Planning Grant (CPG) program. 
Additional State participants are sought so that FTA and FHWA can 
benefit from the widest possible range of participant input to improve 
and further streamline the process.
    With the fund transfer provisions of TEA-21, which were applied to 
the CPG beginning in FY 2000, all funds (more than 35 post-FY 1999 FHWA 
sources are eligible for transfer) can be accessed by indicating only 
whether the funds are for State or metropolitan planning. This 
streamlined fund drawdown process eliminates the need to monitor 
individual fund sources, if several have been used, and ensures that 
the oldest funds will always be used first.
    Under the CPG, States can report metropolitan planning expenditures 
(to comply with the Single Audit Act) for both FTA and FHWA under the 
Catalogue of Federal Domestic Assistance number for FTA's Metropolitan 
Planning Program. Additionally, for States with an FHWA Metropolitan 
Planning (PL) fund-matching ratio greater than 80 percent, the State 
(through FTA) can request a waiver of the 20 percent local share 
requirement in order that all FTA funds used for metropolitan planning 
in a CPG can be granted at the higher FHWA rate. For some States, this 
Federal match rate can exceed 90 percent. Currently, three western 
States participating in the pilot (California, Idaho, and Wyoming) are 
using the FHWA PL match rate for FTA's Metropolitan Planning Program.
    Pre-award authority has been granted to FTA's planning programs for 
the life of TEA-21. This pre-award authority enables States to continue 
planning program activities from year to year with the assurance that 
eligible costs can later be converted to a regularly funded Federal 
project without the need for prior approval or authorization from the 
granting agency. Beginning in FY 2000, the transfer procedures 
established to implement the transfer provision in TEA-21 (section 
1103(i) ``Transfer of Highway and Transit Funds'') is applicable to 
FHWA funds used in CPG. For planning projects funded through CPG, the 
State DOT requests the transfer of funds in a letter to the FHWA 
Division Office. The FHWA-funded planning activities must be in 
accordance with the State's or MPO's Planning Work Program. The letter 
must be signed by the appropriate State official or their designee and 
must specify the State and the amount of funding to be transferred for 
the CPG by apportionment category (e.g. STP, CMAQ, Donor State Bonus, 
Funding Restoration, etc.) and by appropriation year. The letter should 
include only the funding for planning activities contained in the 
State's or MPO's Planning Work Program. If no FTA program, either 
Metropolitan Planning (49 U.S.C. 5303) or Statewide Planning and 
Research (49 U.S.C. 5313(b)), is indicated for transfers to CPG, funds 
will be credited to the Metropolitan Planning Program.
    As part of the pilot, FTA will continue to work with participating 
States to increase the flexibility and further streamline the 
consolidated approach to planning grants. For further information on 
participating in the CPG Pilot, contact Candace Noonan, Intermodal and 
Statewide Planning Division, FTA, at (202) 366-1648 or Anthony Solury, 
Office of Planning and Environment, FHWA, at (202) 366-5003.

I. New Starts Approval to Enter Preliminary Engineering and Final 
Design

    TEA-21 extends FTA's long-standing authority for approving the 
advancement of candidate New Starts projects into preliminary 
engineering (PE) by requiring that FTA also approve entrance into the 
final design (FD) stage of project development. Specifically, 49 U.S.C. 
5309(e)(6) requires that a proposed New Starts project may advance into 
preliminary engineering or final design only if FTA finds that the 
project meets the statutory criteria specified in Sec. 5309(e), and 
that there is a reasonable likelihood that it will continue to do so. 
In making such findings, FTA evaluates and rates proposed New Starts 
projects as ``highly

[[Page 131]]

recommended,'' ``recommended,'' or ``not recommended,'' based on the 
results of alternatives analysis, the statutory criteria for project 
justification, and the degree of local financial commitment. FTA has 
established a set of decision rules for approving entrance into 
preliminary engineering and final design at 49 CFR part 611. After 
first meeting several basic planning, environmental, and project 
management requirements which demonstrate the ``readiness'' of the 
project to advance into the next stage of project development, 
candidate projects are subject to FTA evaluation against the New Starts 
project justification and local financial commitment criteria. Projects 
may advance to the next appropriate stage of project development (PE or 
FD) only if rated ``recommended'' or ``highly recommended,'' based on 
FTA's evaluation under the statutory criteria. Projects rated ``not 
recommended'' will not be approved to advance.
    Section 5309(e)(8)(A) of Title 49 U.S.C. exempts projects which 
request a section 5309 New Starts share of less than $25 million from 
the requirements of section 5309(e). TEA-21 also provides statutory 
exemptions to certain specific projects. It is important to note that 
any exemption under section 5309(e)(8)(A) applies only to the statutory 
New Starts project evaluation criteria that serves as the basis for 
FTA's approval to advance to preliminary engineering and final design 
for such projects. Proposed New Starts projects seeking less than $25 
million in funding from the Sec. 5309 New Starts program must still 
request approval to enter the next stage of development, and must 
fulfill all appropriate planning, environmental, and project management 
requirements. Nonetheless, FTA encourages sponsors of projects they 
believe to be exempt to submit the full range of data to FTA for 
evaluation and rating. This will provide FTA with the means necessary 
to make funding recommendations for such projects to Congress, and will 
protect project sponsors in the event that further project development 
activities reveal the need for additional Sec. 5309 New Starts funding 
beyond $25 million.

V. Urbanized Area Formula Program

A. Total Urbanized Area Formula Apportionments

    The amount made available to the Urbanized Area Formula Program (49 
U.S.C. 5307) in the FY 2002 DOT Appropriations Act is $3,216,040,006. 
In addition, $7,092,285 in deobligated funds became available for 
reapportionment under the Urbanized Area Formula Program as provided by 
49 U.S.C. 5336(i).
    After reserving $16,080,200 for oversight, the amount of FY 2002 
funds available for apportionment is $3,199,959,806. The funds to be 
reapportioned, described in the previous paragraph, are then added and 
increase the total amount apportioned for this program to 
$3,207,052,091. Table 4 displays the amounts apportioned under the 
Urbanized Area Formula Program. Table 13 contains the apportionment 
formula for the Urbanized Area Formula Program.
    An additional $4,849,950 is made available for the Alaska Railroad 
for improvements to its passenger operations. After reserving $24,250 
for oversight, $4,825,700 is available for the Alaska Railroad.

B. Fiscal Year 2001 Apportionment Adjustments

    Adjustments were made to the apportionment of two urbanized areas 
because of corrections to data used to compute the FY 2001 Urbanized 
Area Formula Program apportionments, published in the Federal Register 
of January 18, 2001 (66 FR 4918). The differences between the 
previously published apportionment and the corrected apportionment for 
these areas have been resolved and the necessary adjustment made to the 
areas' apportionment for FY 2002. The amounts published in this notice 
contain the adjustments and the affected urbanized areas have been 
advised.

C. Data Used for Urbanized Area Formula Apportionments

    Data from the 2000 National Transit Database (NTD) Report Year (49 
U.S.C. 5335) submitted in late 2000 and early 2001 were used to 
calculate the FY 2002 Urbanized Area Formula apportionments for 
urbanized areas 200,000 in population and over. Population and 
population density data are also used in calculating apportionments 
under the Urbanized Area Formula Program.

D. Urbanized Area Formula 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 in 
Table 4. This table also contains the total apportionment amount 
attributable to each urbanized area 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 in 
Section G below, 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.

E. Transit Enhancements

    One percent of the Urbanized Area Formula Program apportionment in 
each urbanized area with a population of 200,000 and over must be made 
available only for transit enhancements. Table 4 shows the amount set 
aside for enhancements in these areas.
    The term ``transit enhancement'' includes projects or project 
elements that are designed to enhance mass transportation service or 
use and are physically or functionally related to transit facilities. 
Eligible enhancements include the following: (1) Historic preservation, 
rehabilitation, and operation of historic mass transportation 
buildings, structures, and facilities (including historic bus and 
railroad facilities); (2) bus shelters; (3) landscaping and other 
scenic beautification, including tables, benches, trash receptacles, 
and street lights; (4) public art; (5) pedestrian access and walkways; 
(6) bicycle access, including bicycle storage facilities and installing 
equipment for transporting bicycles on mass transportation vehicles; 
(7) transit connections to parks within the recipient's transit service 
area; (8) signage; and (9) enhanced access for persons with 
disabilities to mass transportation.
    It is the responsibility of the MPO to determine how the one 
percent will be allotted to transit projects. The one percent minimum 
requirement does not preclude more than one percent being expended in 
an urbanized area for transit enhancements. Items that are only 
eligible as enhancements--in particular, operating costs for historic 
facilities--may be assisted only within the one percent funding level.
    The recipient must submit a report to the appropriate FTA Regional 
Office listing the projects or elements of projects carried out with 
those funds during the previous fiscal year and the amount awarded. The 
report must be submitted with the Federal fiscal year's final quarterly 
progress report in TEAM-Web. The report should include the following 
elements: (a) Grantee name, (b) urbanized area name and number, (c) FTA 
project number, (d) transit enhancement category, (e) brief description 
of enhancement and progress towards project implementation, (f) 
activity line item code from the approved budget, and (g)

[[Page 132]]

amount awarded by FTA for the enhancement.

F. Fiscal Year 2002 Operating Assistance

    FY 2002 funding for operating assistance is available only to 
urbanized areas with populations under 200,000. For these areas, there 
is no limitation on the amount of the State apportionment that may be 
used for operating assistance, and the Federal/local share ratio is 50/
50.
    TEA-21 provides two exceptions to the restriction on operating 
assistance in areas over 200,000 in population. These exceptions have 
been addressed and eligible areas previously notified.

G. 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). Additional areas have been 
designated as TMAs upon the request of the Governor and the MPO 
designated for such area or the affected local officials. During FY 
2001, no additions to existing TMAs were designated.
    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, i.e., the 
Governor only has discretion to allocate Governor's Apportionment funds 
attributable to areas that are outside of designated TMA boundaries.
    If any additional small urbanized areas--within the boundaries of a 
TMA--are identified, notification should be made in writing to the 
Associate Administrator for Program Management, Federal Transit 
Administration, 400 Seventh Street, SW., Washington, DC 20590, no later 
than July 1 of each fiscal year. FTA's most recent list of urbanized 
areas with population less than 200,000 that are included within the 
planning boundaries of designated TMAs, is contained in the ``FTA 
Fiscal Year 2001 Apportionment, Allocations and Program Information; 
Notice'' which, can be found on the FTA Web site.

H. Urbanized Area Formula Funds Used for Highway Purposes

    Urbanized Area Formula funds apportioned to a TMA can be 
transferred to FHWA and made available for highway projects if the 
following three conditions are met: (1) Such use must be approved by 
the MPO in writing 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 
(ADA); and (3) the MPO determines that local transit needs are being 
addressed.
    Urbanized Area Formula funds that are designated for highway 
projects will be transferred to and administered by FHWA. The MPO 
should notify FTA of its intent to use FTA funds for highway purposes, 
as prescribed in section VIII.A., below.

I. National Transit Database (NTD) Internet Reporting and Redesign 
Effort

    The NTD is the FTA database for nation-wide statistics on the 
transit industry, including safety data. Prior to FY 2001, FTA 
reporters utilized diskettes to submit statistics on their operating, 
financial and safety activities to FTA. Last year, reporters had the 
option of using the diskette system or the FTA new Internet reporting 
system. Beginning with FY 2002, all reports will need to be submitted 
via the Internet. Diskettes will no longer be accepted. The FTA NTD 
reporting seminars, held six times annually across the country, have 
concentrated on the Internet reporting system. The changeover to 
Internet reporting has received favorable comments and has resulted in 
accelerated data collection and validation.
    NTD statistics are utilized, in part, to apportion Urbanized Area 
Formula Program funds for areas over 200,000 in population. In 
addition, NTD data is summarized and used to report to Congress on the 
performance of the transit industry and associated costs. These data 
are used to assist in assessing whether annual FTA Strategic Plan goals 
are achieved.
    The overall effort to modernize and redesign the NTD--as detailed 
in the FTA May 31, 2001 report to Congress entitled ``Review of the 
National Transit Database''--continues and is now in the programming 
phase. Plans call for reporting via the new NTD in the Fall of 2002 
with training for NTD reporters to begin in the winter of 2001. The 
monthly/quarterly reporting of summary safety, security, and extent of 
service data, as well as immediate reporting of major safety and 
security incidents, will be implemented in calendar year 2002. This 
reporting has been structured to exempt smaller transit properties 
(under 100 vehicles in maximum service) from the monthly reporting 
requirement. An increased number of NTD seminars are scheduled to 
assist transit properties in reporting. See the NTD Web site for 
further information at www.ntdprogram.com.

VI. Nonurbanized Area Formula Program and Rural Transit Assistance 
Program (RTAP)

A. Nonurbanized Area Formula Program

    The amount made available for the Nonurbanized Area Formula Program 
(49 U.S.C. 5311) in the FY 2002 DOT Appropriations Act is $224,555,243. 
The FY 2002 Nonurbanized Area Formula apportionments to the States 
total $226,410,089 and are displayed in Table 5. Of the $224,555,243 
available, $1,122,776 was reserved for oversight. The funds apportioned 
include $2,977,622 in deobligated funds from fiscal years prior to FY 
2002.
    The Nonurbanized Area Formula Program provides capital, operating 
and administrative assistance for areas under 50,000 in population. 
Each State must spend no less than 15 percent of its FY 2002 
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.

B. Rural Transit Assistance Program (RTAP)

    Funding made available for the RTAP (49 U.S.C. 5311(b)(2)) in the 
2002 DOT Appropriations Act was $5,250,000, the guaranteed funding 
level under TEA-21. The FY 2002 RTAP allocations to the States total 
$5,270,729 and are also displayed in Table 5. This amount includes 
$5,250,000 in FY 2002 funds, and $20,729 in prior year deobligated 
funds, which are available for reapportionment.
    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.
    FTA also supports RTAP activities at the national level within the 
National

[[Page 133]]

Planning and Research Program (NPRP). The National RTAP projects 
support the States in their use of the formula allocations for training 
and technical assistance. Congress did not designate any funds for the 
National RTAP among the NPRP allocations in the Conference Report 
accompanying the FY 2002 DOT Appropriations Act. FTA will, however, 
include the National RTAP among priority projects to be funded from 
available NPRP funds. During FY 2002, FTA will conduct a competitive 
selection to choose providers of the National RTAP services for the 
next five years.

VII. Elderly and Persons with Disabilities Program

    Funds in the amount of $84,604,801 are made available for the 
Elderly and Persons with Disabilities Program (49 U.S.C. 5310) in the 
FY 2002 DOT Appropriations Act. A total of $84,930,249 is apportioned 
to the States for FY 2002 for the Elderly and Persons with Disabilities 
Program. In addition to the FY 2002 funding of $84,604,801, the FY 2002 
apportionment includes $325,448 in prior year unobligated funds, which 
are available for reapportionment under the Elderly and Persons with 
Disabilities Program. Table 6 shows each State's apportionment.
    The formula for apportioning these funds uses Census population 
data for persons aged 65 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 there are no non-profit organizations in the area that are 
readily available to carry out the service, may receive these funds.
    These funds may be transferred by the Governor to supplement 
Urbanized Area Formula or Nonurbanized Area Formula capital funds 
during the last 90 days of the fiscal year.

VIII. FHWA Surface Transportation Program and Congestion Mitigation 
and Air Quality Funds Used for Transit Purposes (Title 23, U.S.C. 
104)

A. Transfer Process

    The process for transferring flexible formula funds between FTA and 
FHWA programs is described below. Information on the transfer of FHWA 
funds to FTA planning programs can be found in section IV.H., above.
Transfer From FHWA to FTA
    FHWA funds designated for use in transit capital projects must 
result from the metropolitan and statewide planning and programming 
process, and must be included in an approved Statewide Transportation 
Improvement Program (STIP) before the funds can be transferred. The 
State DOT requests, by letter, the transfer of highway funds for a 
transit project to the FHWA Division Office. The letter should specify 
the project, amount to be transferred, apportionment year, State, 
Federal aid apportionment category (i.e., Surface Transportation 
Program (STP), Congestion Mitigation and Air Quality (CMAQ), Interstate 
Substitute, or congressional earmark), and a description of the project 
as contained in the STIP.
    The FHWA Division Office confirms that the apportionment amount is 
available for transfer and concurs in the transfer by letter to the 
State DOT and FTA. The FHWA Office of Budget and Finance then transfers 
obligation authority and an equal amount of cash to FTA. All CMAQ, STP, 
and FHWA funds allocated to transit projects in the Appropriations Act 
or Conference Report will be transferred to one of the three FTA 
formula capital programs (i.e. Urbanized Area Formula (section 5307), 
Nonurbanized Area Formula (section 5311) or Elderly and Persons with 
Disabilities (section 5310).
    The FTA grantee's application for the project must specify which 
capital program the funds will be used for and the application should 
be prepared in accordance with the requirements and procedures 
governing that program. Upon review and approval of the grantee's 
application, FTA obligates funds for the project.
    The transferred funds are treated as FTA formula funds, but are 
assigned a distinct identifying code for tracking purposes. The funds 
may be used for any purpose eligible under the FTA formula capital 
program to which they are transferred. FTA and FHWA have issued 
guidance on project eligibility under the CMAQ program in a Federal 
Register notice dated February 23, 2000 (65 FR 9040). All FTA 
requirements are applicable to transferred funds except local share--
FHWA local share requirements apply. Transferred funds should be 
combined with regular FTA funds in a single annual grant application.
Transfers From FTA to FHWA
    The Metropolitan Planning Organization (MPO) submits a request to 
the FTA Regional Office for a transfer of FTA section 5307 formula 
funds (apportioned to an urbanized area 200,000 and over in population) 
to FHWA based on approved use of the funds for highway purposes, as 
contained in the Governor's approved State Transportation Improvement 
Program. The MPO must certify that: (1) The funds are not needed for 
capital investments required by the Americans with Disabilities Act; 
(2) notice and opportunity for comment and appeal has been provided to 
affected transit providers; and (3) local funds used for non-Federal 
match are eligible to provide assistance for either highway or transit 
projects. The FTA Regional Administrator reviews and concurs in the 
request, then forwards the approval to FTA Headquarters, where a 
reduction is made to the grantee's formula apportionment and FTA's 
National Operating Budget in TEAM-Web, equal to the dollar amount being 
transferred to FHWA.
    For information regarding these procedures, please contact Kristen 
D. Clarke, FTA Budget Division, at (202) 366-1699; or Richard Meehleib, 
FHWA Finance Division, at (202) 366-2869.

B. Matching Share for FHWA Transfers

    The provisions of Title 23 U.S.C., regarding the non-Federal share 
apply to Title 23 funds used for transit projects. Thus, FHWA funds 
transferred to FTA retain the same matching share that the funds would 
have if used for highway purposes and administered by FHWA.
    There are three instances in which a Federal share higher than 80 
percent would be permitted. 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 transfers used to 
fund transit projects 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 FHWA transfers 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;

[[Page 134]]

however, these are subject to a nationwide 10 percent program 
limitation.

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

A. Fixed Guideway Modernization

    The formula for allocating the Fixed Guideway Modernization funds 
contains seven tiers. The apportionment of funding under the first four 
tiers, through FY 2003, is based on data used to apportion the funding 
in FY 1997. Funding under the last three tiers is apportioned based on 
the latest available route miles and revenue vehicle miles on segments 
at least seven years old, as reported to the NTD.
    Table 7 displays the FY 2002 Fixed Guideway Modernization 
apportionments. Fixed Guideway Modernization funds apportioned for this 
section must be used for capital projects to maintain, 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 NTD reporting system to ensure that all 
eligible fixed guideway data is included in the calculation of the 
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 NTD are not included.
    For FY 2002, $1,136,400,000 is made available for Fixed Guideway 
Modernization in the FY 2002 DOT Appropriations Act, which is the 
guaranteed funding level in TEA-21. An amount of $11,364,000 was then 
deducted for oversight, and $7,047,502 was set aside for the Alaska 
Railroad as directed by language in Section 1124 of the FY 2001 Omnibus 
Consolidated Appropriations Act (Pub. L. 106-554), leaving 
$1,117,988,498 available for apportionment to eligible urbanized areas. 
In addition to the FY 2002 funding, $547,205 in deobligated funds from 
fiscal years prior to FY 2002 is added and increases the total amount 
apportioned to $1,118,535,703 under Fixed Guideway Modernization. Table 
14 contains information regarding the Fixed Guideway Modernization 
apportionment formula.
    The Alaska Railroad has been determined to be eligible for funding 
under the Fixed Guideway Modernization program for service provided in 
the Anchorage, AK, urbanized area. The FY 2002 Fixed Guideway 
Modernization apportionment for the Alaska Railroad is, in part, based 
on a calculated amount derived from application of the Fixed Guideway 
Modernization formula--using approved Alaska Railroad data for fixed 
guideway directional route miles located within the Anchorage, AK, 
urbanized area. In addition, the Alaska Railroad apportionment includes 
the $7,047,502 set aside for the Alaska Railroad as directed in Public 
Law 106-554.
    The Alaska Railroad eligibility to receive funds under the Fixed 
Guideway Modernization program is pursuant to FTA's determination that: 
(1) it is the fixed guideway system for the Anchorage, AK urbanized 
area (which is an urbanized area eligible for assistance under section 
5336(b)(2)(A) of 49 U.S.C. Chapter 53, and therefore eligible for 
funding under sections 5337(a)(5)(B), 5337(a)(6)(B), and 
5337(a)(7)(B)); and (2) the Alaska Railroad meets the standard of 
having been in service for at least seven years.
    The Alaska Railroad was built by the Federal Government between 
1914 and 1923. The Railroad operated under the control of the Interior 
Department until April 1967 when the Department of Transportation 
assumed that responsibility. After passage of special Federal 
legislation, the assets of the Alaska Railroad were sold to the State 
of Alaska, which assumed ownership of the railroad in January 1985. 
Since Federal ownership of the Alaska Railroad has extended over the 
greater part of its existence, the DOT acknowledges a special 
stewardship towards the Alaska Railroad within the Anchorage urbanized 
area. For purposes of formula apportionments beginning in FY 2004 and 
beyond, FTA will create a mode code exclusively for reporting to the 
NTD by the Alaska Railroad in the NTD Reporting Manual for report year 
2002.

B. New Starts

    The amount made available for New Starts in the FY 2002 DOT 
Appropriations Act is $1,136,400,000, which was fully allocated and 
represents the guaranteed funding level under TEA-21. Of this amount, 
$11,364,000 is reserved for oversight activities, leaving 
$1,125,036,000 available for allocations to projects. Prior year 
unobligated funds specified by Congress to be reallocated in the amount 
of $1,488,840 are then added and increase the total amount allocated to 
$1,126,524,840. The reallocated funds are derived from unobligated and 
deobligated balances for the following projects: Hartford-Old Saybrook, 
CT, project, $496,280; New London-Waterfront, CT, access project, 
$496,280; and North Front Range, CO, corridor feasibility study, 
$496,280. The final allocation for each New Starts project is listed in 
Table 8.
    Prior year unobligated allocations for New Starts in the amount of 
$543,136,665 remain available for obligation in FY 2002. This amount 
includes $531,342,762 in fiscal years 2000 and 2001 unobligated 
allocations, and $11,793,903 for fiscal years 1998 and 1999 unobligated 
allocations that are extended in the FY 2002 Conference Report. These 
unobligated amounts are displayed in Table 8A.
    Capital Investment Program funds for New Starts projects identified 
as having been extended in the FY 2002 Conference Report accompanying 
the FY 2002 DOT Appropriations Act, will lapse September 30, 2002. A 
list of the extended projects and the amount that remains unobligated 
as of September 30, 2001, is appended to Table 8A for ready reference.

C. Bus

    The FY 2002 DOT Appropriations Act provides $568,200,000, for the 
purchase of buses, bus-related equipment and paratransit vehicles, and 
for the construction of bus-related facilities. This amount represents 
the guaranteed funding level under TEA-21.
    TEA-21 established a $100 million Clean Fuels Formula Program under 
49 U.S.C. 5308 (described in section XII below). The program is 
authorized to be funded with $50 million from the Bus category of the 
Capital Investment Program and $50 million from the Formula Program. 
However, the FY 2002 DOT Appropriations Act directs FTA to transfer the 
formula portion to, and merge it with, funding provided for the Bus 
category of the Capital Investment Program. Thus, $618,200,000 
appropriated in FY 2002 is available for funding the Bus category of 
the Capital Investment Program. In addition, Congress directed that 
funds made available for bus and bus facilities be supplemented with 
$1,733,658 from projects included in previous Appropriations Acts, 
which increases the total amount made available to $619,933,658. The 
supplemental funds are derived from unobligated balances for the 
following projects: Carroll County, NH transportation alliance buses, 
$198,500; New Hampshire statewide buses, $34,001; Gary, IN transit 
consortium buses, $310,157; Jefferson Parish, LA bus and bus 
facilities, $347,375; Louisiana state infrastructure bank, bus and bus

[[Page 135]]

facilities, $347,375; and North Slope borough, AK, $496,250.
    After deducting $6,182,000 for oversight, the amount available for 
allocation under the Bus category is $613,751,658. Table 9 displays the 
allocation of the FY 2002 Bus funds by State and project. The FY 2002 
Conference Report accompanying the FY 2002 DOT Appropriations Act 
allocated all of the FY 2002 Bus funds to specified States or 
localities for bus and bus-related projects. FTA will honor those 
allocations to the extent that they comply with the statutory 
authorization for that program.
    Prior year unobligated balances for Bus Program allocations in the 
amount of $494,182,292 remain available for obligation in FY 2002. This 
includes $477,559,360 in fiscal years 2000 and 2001 unobligated 
allocations, and $16,622,932 for fiscal years 1998 and 1999 unobligated 
allocations that are extended in the FY 2002 Conference Report or the 
FY 2001 Supplemental Appropriations Act Conference Report. These 
unobligated amounts are displayed in Table 9A.
    Capital Investment Program funds for Bus projects identified as 
having been extended in the Conference Report accompanying the FY 2002 
DOT Appropriations Act or the FY 2001 Supplemental Appropriations Act, 
will lapse September 30, 2002. A list of the extended projects and the 
amount that remains unobligated as of September 30, 2001, is appended 
to Table 9A for ready reference.
    In addition, the FY 2002 Conference Report provides clarification 
for FY 2001 projects and permits the use of FY 2001 appropriations for 
additional work as follows:
    (1) Funds appropriated for the Lowell, Massachusetts transit hub 
can be used for the Hale Street bus maintenance and operations center;
    (2) Funds appropriated for the Municipal Transit Operators in 
California can be used for bus and bus facilities;
    (3) Funds appropriated for the King County Metro Eastgate park and 
ride can be used for the Issaquah Highlands park and ride;
    (4) Funds allocated for buses for Suburban Mobility Authority for 
Regional Transportation (SMART) in Southeast Michigan may also be 
available for bus facilities; and
    (5) Funds appropriated to the Burlington, Vermont multi-modal 
transit project in fiscal years 1998, 1999, 2000, and 2001 will be 
available for construction of the multimodal project and other transit 
improvements.

X. Job Access and Reverse Commute Program

    The FY 2002 DOT Appropriations Act provides $125 million for the 
Job Access and Reverse Commute (JARC) Program, which is the guaranteed 
funding level under TEA-21. In the FY 2002 Conference Report the 
appropriators indicated their desire that $109,339,000 of this amount 
be awarded to certain specified States and localities. These areas and 
the corresponding amounts are listed in Table 10. States and localities 
listed in the FY 2002 Conference Report, along with other States and 
localities not so listed, are invited to apply for JARC funding 
according to the procedures that will be published in a separate 
Federal Register notice. That notice will solicit applications for the 
$125 million available in FY 2002 and the $150 million that is the 
guaranteed level of funding for FY 2003.
    Because recipients of JARC funds have expressed the need for multi-
year funding through the early stages of implementation, FTA will no 
longer limit awards to a single year, but rather will consider multi-
year funding in appropriate cases. To give effect to this new policy, 
FTA will give priority to funding continuation of previously selected 
projects. FTA will solicit applications for continued funding from 
those applicants previously funded under the JARC program. Grantees may 
apply for up to two additional years of continuation funding beyond 
that previously approved. Continuation does not include expansion of 
services beyond those previously funded. Expanded services will be 
treated as new projects. Continuation projects are expected to document 
their progress through their most recent progress report. Evaluation of 
JARC projects' progress will be a key element in determining continued 
FTA financial support.
    FTA will solicit applications for new JARC projects both from 
existing recipients and from States, localities and nonprofit 
organizations that have not previously been awarded JARC funds. Because 
FY 2003 is the last year of the TEA-21 authorization of the JARC 
program, applicants for new projects will be encouraged to apply for a 
level of funding that would allow them to sustain service for at least 
two years.
    Applicants identified in the FY 2002 Conference Report must 
participate in this application process along with all other 
applicants. FTA will evaluate and rank all projects submitted in 
response to this new solicitation. Because it is expected that FY 2002 
funds will be used primarily, if not entirely, for continuation 
projects, it is expected that new projects will not be funded until FY 
2003 funds become available.
    The JARC program, established under TEA-21, provides funding for 
the provision of transportation services designed to increase access to 
jobs and employment-related activities. Job Access projects are those 
that transport welfare recipients and low-income individuals, including 
economically disadvantaged persons with disabilities, in urban, 
suburban, or rural areas to and from jobs and activities related to 
their employment. Reverse Commute projects provide transportation 
services for the general public from urban, suburban, and rural areas 
to suburban employment opportunities. A total of up to $10,000,000 from 
the appropriation can be used for Reverse Commute Projects.
    One of the goals of the JARC program is to increase collaboration 
among transportation providers, human service agencies, employers, 
metropolitan planning organizations, States, and affected communities 
and individuals. All projects funded under this program must be derived 
from an area-wide Job Access and Reverse Commute Transportation Plan, 
developed through a regional approach which supports the implementation 
of a variety of transportation services designed to connect welfare 
recipients to jobs and related activities. A key element of the program 
is making the most efficient use of existing public, nonprofit and 
private transportation service providers.

XI. Over-the-Road Bus Accessibility Program

    The amount made available for the Over-the-Road Bus Accessibility 
(OTRB) Program in the FY 2002 DOT Appropriations Act is $6,950,000, 
which is the guaranteed funding level under TEA-21. Of this amount, 
$5,250,000 is available to providers of intercity fixed-route service, 
and $1,700,000 is available to other providers of over-the-road bus 
services, including local fixed-route service, commuter service, and 
charter and tour service.
    The OTRB program authorizes FTA to make grants to operators of 
over-the-road buses to help finance the incremental capital and 
training costs of complying with the DOT over-the-road bus 
accessibility final rule, published on September 28, 1998 (63 FR 
51670). Funds will be provided at 90 percent Federal share. FTA 
conducts a national solicitation of applications and grantees are 
selected on a competitive basis.
    In FY 2001, a total of $3 million was available to intercity fixed-
route

[[Page 136]]

providers and $1.7 million was available to all other providers. FTA 
selected 61 applicants from among the 84 applications submitted for 
funding incremental capital and training costs of complying with DOT's 
OTRB Accessibility requirements.
    A separate Federal Register Notice providing program guidance and 
application procedures for FY 2002 will be issued.

XII. Clean Fuels Formula Program

    TEA-21 established the Clean Fuels Formula Grant Program under 
section 5308 of Title 49 U.S.C., to assist non-attainment and 
maintenance areas in achieving or maintaining attainment status and to 
support markets for emerging clean fuel technologies. Under the 
program, public transit agencies in maintenance and non-attainment 
areas (as defined by the EPA) are to apply for formula funds to acquire 
clean fuel vehicles. The legislation specified the program to be funded 
with $50 million from the bus category of the Capital Investment 
Program, and $50 million from the Urbanized Area Formula Program in 
each fiscal year of TEA-21. However, congressional appropriation 
actions in this fiscal year as well as in fiscal years 1999, 2000, and 
2001 have provided no funds for this program.
    A Notice of Proposed Rulemaking was published in the Federal 
Register on August 28, 2001 (66 FR 45561). The proposed rule 
establishes the procedures potential recipients must use to apply for 
this program. Comments on the proposed rule were due October 12, 2001. 
Responses to those comments and preparation of the final rule are in 
progress.
    For further information contact Nancy Grubb, FTA Office of Resource 
Management and State Programs, at (202) 366-2053.

XIII. National Planning and Research Program

    The amount made available to the National Planning and Research 
Program in the FY 2002 DOT Appropriations Act is $31,500,000, of which 
Congress allocated $15,500,000 for specific activities. These 
allocations are listed in Table 11.
    The program's core effort is the deployment of technological 
innovation to improve personal mobility, enhance the safety and 
security of transit operations, minimize fuel consumption and air 
pollution, increase ridership and enhance the quality of life of all 
communities. Emphasis is placed on mainstreaming proven cost-effective 
technological innovation through the FTA planning and capital 
assistance programs. Primary target areas are security technologies to 
protect against weapons of mass destruction, safety systems for 
railroad grade crossing protection and shared-track operations, cost 
reduction in advances in bus technology, and bus rapid transit.
    FTA is directing resources for research, development, demonstration 
and deployment activities associated with technology and other 
innovations in four priority areas:
     Safety and security systems--to improve driver operations, 
minimize pedestrian conflicts, reduce terrorist threats and to 
facilitate shared track operations;
     Transit buses--to reduce operating and maintenance costs 
through improved energy management; to introduce rapid bus operations; 
to foster trade opportunities; to deploy low emission vehicles; and to 
leverage the $600 million or more invested annually through the FTA Bus 
capital assistance program;
     Infrastructure--to support the $4.9 billion annual FTA 
capital investment; to protect the integrity of federally supported 
assets; and to facilitate the deployment of lower cost systems options 
for expanding capacity; and
     Knowledge Management--to expand U.S. transit industry 
professional capacity and participation in global markets.

For additional information contact Henry Nejako, Program Management 
Officer, Office of Research, Demonstration and Innovation, at (202) 
366-3765.

XIV. Unit Values of Data for Urbanized Area Formula Program, 
Nonurbanized Area Formula Program, and Fixed Guideway Modernization

    The dollar unit values of data derived from the computations of the 
Urbanized Area Formula Program, the Nonurbanized Area Formula Program, 
and the Capital Investment Program--Fixed Guideway Modernization 
apportionments are displayed in Table 15 of this notice. To replicate 
an area's apportionment amount multiply its population, population 
density, and data from the NTD by the appropriate unit value.

XV. Period of Availability of Funds

    The funds apportioned under the Metropolitan Planning Program and 
the Statewide Planning and Research Program, the Urbanized Area Formula 
Program, and Fixed Guideway Modernization, in this notice, will remain 
available to be obligated by FTA to recipients for three fiscal years 
following FY 2002. Any of these apportioned funds unobligated at the 
close of business on September 30, 2005, will revert to FTA for 
reapportionment under the respective program.
    Funds apportioned to nonurbanized areas under the Nonurbanized Area 
Formula Program, including RTAP funds, will remain available for two 
fiscal years following FY 2002. Any such funds remaining unobligated at 
the close of business on September 30, 2004, 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, 
2002. 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 FY 2002 DOT Appropriations Act 
includes a provision requiring that FY 2002 New Starts and Bus funds 
not obligated for their original purpose as of September 30, 2004, 
shall be made available for other projects under 49 U.S.C. 5309.
    JARC funds for projects selected by FTA for funding in FY 2002 will 
remain available for two fiscal years following FY 2002. Any such funds 
remaining unobligated at the close of business on September 30, 2004, 
will revert to FTA for reallocation under the JARC program.
    Capital Investment Program funds for New Starts and Bus projects 
identified as having been extended in the FY 2002 Conference Report 
accompanying the FY 2002 DOT Appropriations Act will lapse September 
30, 2002.

XVI. Automatic Pre-Award Authority to Incur Project Costs

A. Policy

    FTA provides blanket or automatic pre-award authority to cover 
certain program areas described below. This pre-award authority allows 
grantees to incur project costs prior to grant approval and retain 
their eligibility for subsequent reimbursement after grant approval. 
The grantee assumes all risk and is responsible for ensuring that all 
conditions, which are described below, are met to retain eligibility. 
This automatic pre-award spending authority permits a grantee to incur 
costs on an eligible transit capital or planning project without 
prejudice to possible future Federal participation in the cost of the 
project or projects. Prior to exercising pre-award authority, grantees 
must comply with the conditions and Federal requirements outlined in

[[Page 137]]

paragraphs B and C immediately below. Failure to do so will render an 
otherwise eligible project ineligible for FTA financial assistance. In 
addition, grantees are strongly encouraged to consult with the 
appropriate FTA regional office if there is any question regarding the 
eligibility of the project for future FTA funds or the applicability of 
the conditions and Federal requirements.
    Pre-award authority was extended in the June 24, 1998 Federal 
Register Notice on TEA-21 to all formula funds and flexible funds that 
will be apportioned during the authorization period of TEA-21, 1998-
2003. Pre-award authority also applies to Capital Investment Bus 
allocations identified in this notice. For such section 5309 Capital 
Investment Bus projects, the date that costs may be incurred is the 
date that the appropriation bill in which they are contained is 
enacted. Pre-award authority does not apply to Capital New Start funds, 
or to Capital Investment Bus projects not specified in this or previous 
notices, except as described in D below.

B. Conditions

    Similar to the FTA Letter of No Prejudice (LONP) authority, the 
conditions under which this authority may be utilized are specified 
below:
    (1) The pre-award authority is not a legal or moral commitment that 
the project(s) will be approved for FTA assistance or that FTA will 
obligate Federal funds. Furthermore, it is not a legal or moral 
commitment that all items undertaken by the applicant will be eligible 
for inclusion in the project(s).
    (2) All FTA statutory, procedural, and contractual requirements 
must be met.
    (3) No action will be taken by the grantee that prejudices the 
legal and administrative findings that 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 the pre-award authority will be eligible for credit toward 
local match or reimbursement if FTA later makes a grant for the 
project(s) or project amendment(s).
    (5) The Federal amount of any future FTA assistance awarded 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 the pre-award authority applies, the 
authority expires with the lapsing of the fiscal year funds.
    (7) The Financial Status Report, in TEAM-Web, must indicate the use 
of pre-award authority.

C. Environmental, Planning, and Other Federal Requirements

    FTA emphasizes that all of the Federal grant requirements must be 
met for the project to remain eligible for Federal funding. 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 spent on implementing 
activities such as final design, construction, and acquisition for a 
project that is expected to be subsequently funded with FTA funds. 
Depending on which class the project is included under in FTA 
environmental regulations (23 CFR part 771), the grantee may not 
advance the project beyond planning and preliminary engineering before 
FTA has issued either a categorical exclusion (refer to 23 CFR part 
771.117(d)), a finding of no significant impact, or a record of 
decision. The conformity requirements of the Clean Air Act (40 CFR part 
93) also must be fully met before the project may be advanced with non-
Federal funds.
    Similarly, the requirement that a project be included in a locally 
adopted metropolitan transportation improvement program and federally 
approved statewide transportation improvement program must be followed 
before the project may be advanced with non-Federal funds. For planning 
projects, the project must be included in a locally approved Planning 
Work Program that has been coordinated with the State. In addition, 
Federal procurement procedures, as well as the whole range of Federal 
requirements, must be followed for projects in which Federal funding 
will be sought in the future. Failure to follow any such requirements 
could make the project ineligible for Federal funding. In short, this 
increased administrative flexibility requires a grantee to make certain 
that no Federal requirements are circumvented through the use of pre-
award authority. If a grantee has questions or concerns regarding the 
environmental requirements, or any other Federal requirements that must 
be met before incurring costs, it should contact the appropriate 
regional office.
    Before an applicant may incur costs for activities expected to be 
funded by New Start funds, or for Bus Capital projects not listed in 
this notice or previous notices, it must first obtain a written LONP 
from FTA. To obtain an LONP, a grantee must submit a written request 
accompanied by adequate information and justification to the 
appropriate FTA regional office.

D. Pre-Award Authority for New Starts Projects

1. Preliminary Engineering and Final Design
    New Starts projects are required to follow a federally defined 
planning process. This process includes, among other things, FTA 
approval of entry of a project into preliminary engineering and 
approval to enter final design. The grantee request for entry into 
preliminary engineering and the request for entry into final design 
both document the project and how it meets the New Starts statutory 
criteria for project evaluation and rating in detail. With FTA approval 
to enter preliminary engineering, and subsequent approval to enter 
final design, FTA will automatically extend pre-award authority to that 
phase of project development.
2. Acquisition Activities
    In the past, FTA provided applicant grantees pre-award authority to 
incur costs for right-of-way acquisition for projects funded by sources 
other than New Starts funds under the conditions described in 
paragraphs A, B and C, above. With the issuance of this Notice, FTA 
will extend automatic pre-award authority for the acquisition of real 
property and real property rights for a New Starts project upon 
completion of the National Environmental Policy Act (NEPA) review of 
that project. NEPA review is completed when FTA signs an environmental 
Record of Decision (ROD) or Finding of No Significant Impact (FONSI), 
or makes a Categorical Exclusion (CE) determination. The real estate 
acquisition activities for a proposed New Starts project prior to 
approval of Federal funding, no longer require a Letter of No Prejudice 
(LONP) described in section XVII below. Real estate acquisition may now 
commence upon completion of the NEPA review process.
    Most major FTA-assisted projects require the acquisition of 
residential and/or business properties and the relocation of the 
occupants. Often real property rights, like railroad track usage 
rights, are needed. With limited exceptions set forth in FTA's NEPA 
guidance, the purchase of real property can prejudice the consideration 
of less damaging alternatives and may not take place until the NEPA 
process has been completed by FTA's signing of an environmental ROD or 
FONSI or making a CE determination.
    For FTA-assisted projects, acquisition of real property must be 
made in accordance with the requirements of the Uniform Relocation 
Assistance and Real

[[Page 138]]

Property Acquisition Policies Act (URA) and its implementing 
regulations (49 CFR part 24). Compliance with the URA regulations 
requires substantial lead-time. Properties must be appraised, persons 
who will be displaced must be educated about their relocation rights, 
proper housing must be found for displaced residents, and businesses 
must be relocated in accordance with the URA. In some cases, the 
remediation of contaminated soils or groundwater, or the removal of 
underground storage tanks must be dealt with during the acquisition 
process. Potentially responsible parties to the contamination must be 
identified and their financial liability negotiated or litigated. 
Acquisition of railroad right-of-way or usage rights is frequently a 
negotiated transaction that is fundamental to the transit project and 
therefore should be negotiated as early as possible after the 
completion of the NEPA process. Delays in the closing on an acquisition 
can lead to inconvenience or hardship for residents and businesses that 
are being displaced. Delays can also lead to increases in property 
values or in the current owners' financial expectations that prolong 
negotiated settlements.
    To facilitate the acquisition process for New Starts projects, FTA 
will extend automatic pre-award authority to the acquisition of real 
property and real property rights with the signing of the environmental 
ROD or FONSI or the CE determination. This pre-award authority is 
strictly limited to costs incurred to acquire real property and real 
property rights and to provide relocation assistance in accordance with 
the URA regulation. It is limited to the acquisition of real property 
and real property rights that are explicitly identified in the final 
EIS, EA or CE determination, as needed for the selected alternative 
that is the subject of the FTA-signed ROD or FONSI, or the CE 
determination. It does not cover site preparation, demolition, or any 
other activity that is not strictly necessary to comply with the URA. 
At FTA's discretion, these other activities may be covered by Letters 
of No Prejudice, described in section XVII, below. This pre-award 
authority does not cover the acquisition of construction equipment or 
vehicles or any other acquisition except that of real property and real 
property rights.
    Grant applicants should use this pre-award authority for real 
property very discreetly with a clear understanding that it does not 
constitute a funding commitment by FTA. On occasion, even projects that 
received a ``recommended'' rating from FTA under the New Starts 
regulation (49 CFR part 611) have not received a Full Funding Grant 
Agreement from FTA simply because the competition for the limited New 
Starts funds is so intense.
    This pre-award authority for the acquisition of real property and 
real property rights, in accordance with the URA and after FTA's 
signing of a ROD or FONSI or making a CE determination, is intended to 
streamline the project delivery process, to enhance relocation services 
for residents and businesses, and to avoid the escalation in the cost 
of real property caused by delays in its acquisition. In granting this 
pre-award authority, FTA is aware that the risk taken by the grant 
applicant in acquiring real property without an FTA commitment is 
somewhat mitigated by the re-sale value of the real property, in the 
event that FTA funding assistance is not ultimately forthcoming and the 
project is abandoned.
3. National Environmental Policy Act (NEPA) Activities
    The National Environmental Policy Act (NEPA) requires that projects 
with potentially significant adverse impacts proposed for Federal 
funding assistance be subjected to a public and interagency review of 
the need for the project, its environmental and community impacts, and 
alternatives with potentially less damaging actions. Projects for which 
FTA experience indicates there are no significant impacts are subject 
to NEPA, but categorically excluded from the more rigorous levels of 
NEPA review.
    FTA regulations (23 CFR 771.105(e)) state that the costs incurred 
by a grant applicant for the preparation of environmental documents 
requested by FTA are eligible for FTA assistance. FTA has previously 
extended pre-award authority to incur costs for environmental reviews 
and documents from other funding sources but not from New Starts funds.
    With issuance of this notice, FTA extends automatic pre-award 
authority for costs incurred to conduct the NEPA environmental review, 
including historic preservation activities, and to prepare an EIS, EA, 
CE, or other environmental documents for a proposed New Starts project, 
effective as of the date of the federal approval of the relevant 
Statewide Transportation Improvement Program (STIP) or STIP amendment 
that includes the project. This pre-award authority applies to New 
Starts funding, as well as other funding sources. This pre-award 
authority is strictly limited to costs incurred to conduct the NEPA 
process and prepare environmental and historic preservation documents. 
It does not cover preliminary engineering activities beyond those 
absolutely necessary for NEPA compliance. As with any pre-award 
authority, FTA participation in costs incurred is not guaranteed.
    This pre-award authority for using New Starts funds for 
environmental and historic preservation work for proposed New Starts 
projects, as long as those projects are in FTA-approved STIPs, is being 
provided for the first time with this Notice. It is intended to 
streamline the NEPA process in accordance with TEA-21 section 1309, 
``Environmental Streamlining,'' by eliminating unnecessary delays in 
starting up the conceptual engineering and environmental reviews, the 
public involvement process, and the interagency coordination process 
for New Starts projects.

XVII. Letters of No Prejudice (LONP) Policy

A. Policy

    Letter of No Prejudice (LONP) authority allows an applicant to 
incur costs on a future project utilizing non-Federal resources with 
the understanding that the costs incurred subsequent to the issuance of 
the LONP may be reimbursable as eligible expenses or eligible for 
credit toward the local match should FTA approve the project at a later 
date. LONPs are applicable to projects not covered by automatic pre-
award authority. The majority of LONPs will be for section 5309 New 
Starts funds not covered under a full funding grant agreement or for 
section 5309 Bus funds not yet appropriated by Congress. At the end of 
an authorization period, there may be LONPs for formula funds beyond 
the life of the current authorization.
    Under most circumstances the LONP will cover the total project. 
Under certain circumstances the LONP may be issued for local match 
only, for example, to permit real estate purchased as it becomes 
available to be used for match for the project at a later date.

B. Conditions

    The following conditions apply to all LONPs.
    (1) LONP pre-award authority is not a legal or moral commitment 
that the project(s) will be approved for FTA assistance or that FTA 
will obligate Federal funds. Furthermore, it is not a legal or moral 
commitment that all items undertaken by the applicant will be eligible 
for inclusion in the project(s).
    (2) All FTA, DOT, and other Federal statutory, regulatory, 
procedural, and contractual requirements must be met.
    (3) No action will be taken by the grantee that prejudices the 
legal and

[[Page 139]]

administrative findings that 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 the LONP will be eligible for credit toward local match or 
reimbursement if 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 pre-award authority applies, the 
authority expires with the lapsing of the fiscal year funds.

C. Environmental, Planning, and Other Federal Requirements

    As with automatic pre-award authority, FTA emphasizes that all of 
the Federal grant requirements must be met for the project to remain 
eligible for Federal funding. 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 spent on implementation activities such as final design, 
construction, or acquisition 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 (see 23 CFR 
section 771.117(d)), a finding of no significant impact, or a record of 
decision. The conformity requirements of the Clean Air Act (40 CFR part 
93) also must be fully met before the project may be advanced with non-
Federal funds.
    Similarly, the requirement that a capital project be included in a 
locally adopted metropolitan transportation improvement program and 
federally approved statewide transportation improvement program must be 
followed before the project may be advanced with non-Federal funds. For 
planning projects, the project must be included in a locally approved 
Planning Work Program that has been coordinated with the State. In 
addition, Federal procurement procedures, as well as the whole range of 
Federal requirements, must be followed for projects in which Federal 
funding will be sought in the future. Failure to follow any such 
requirements could make the project ineligible for Federal funding. In 
short, this pre-award authority requires a grantee to make certain that 
no Federal requirements are circumvented. 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 FTA regional office.

D. Request for LONP

    Before an applicant may incur costs for a project not covered by 
automatic pre-award authority, it must first submit a written request 
for an LONP to the appropriate regional office. This written request 
must include a description of the project for which pre-award authority 
is desired and a justification for the request.

XVIII. FTA Home Page on the Internet

    FTA provides extended customer service by making available transit 
information on the FTA Web site, including this Apportionment Notice. 
Also posted on the Web site are FTA program Circulars: C9030.1C, 
Urbanized Area Formula Program: Grant Application Instructions, dated 
October 1, 1998; C9040.1E, Nonurbanized Area Formula Program Guidance 
and Grant Application Instructions, dated October 1, 1998; C9070.1E, 
The Elderly and Persons with Disabilities Program Guidance and 
Application Instructions, dated October 1, 1998; C9300.1A, Capital 
Program: Grant Application Instructions, dated October 1, 1998; 
4220.1D, Third Party Contracting Requirements, dated April 15, 1996; 
C5010.1C, Grant Management Guidelines, dated October 1, 1998; and 
C8100.1B, Program Guidance and Application Instructions for 
Metropolitan Planning Program Grants, dated October 25, 1996. The FY 
2002 Annual List of Certifications and Assurances is also posted on the 
FTA Web site. Other documents on the FTA Web site of particular 
interest to public transit providers and users include the annual 
Statistical Summaries of FTA Grant Assistance Programs, and the 
National Transit Database Profiles.
    FTA circulars are listed at http://www.fta.dot.gov/library/admin/checklist/circulars.htm. Other guidance of interest to Grantees can be 
found at http://www.fta.dot.gov/grantees/index.html. Grantees should 
check the FTA Web site frequently to keep up to date on new postings.

XIX. FTA Fiscal Year 2002 Annual List of Certifications and 
Assurances

    The ``Fiscal Year 2002 Annual List of Certifications and 
Assurances'' is published in conjunction with this notice. It appears 
as a separate Part of the Federal Register on the same date whenever 
possible. The FY 2002 list contains several changes to the previous 
year's Federal Register publication. As in previous years, the grant 
applicant should certify electronically. Under certain circumstances 
the applicant may enter its PIN number in lieu of an electronic 
signature provided by its attorney, provided the applicant has on file 
the current affirmation of its attorney in writing dated this Federal 
fiscal year. The applicant is advised to contact the appropriate FTA 
Regional Office for electronic procedure information.
    The ``Fiscal Year 2002 Annual List of Certifications and 
Assurances'' is accessible on the Internet at http://www.fta.dot.gov/library/legal/ca.htm. Any questions regarding this document may be 
addressed to the appropriate Regional Office.

XX. Grant Application Procedures

    All applications for FTA funds should be submitted to the 
appropriate FTA Regional Office. FTA utilizes TEAM-Web, an Internet 
accessible electronic grant application system, and all applications 
should be filed electronically. FTA has provided exceptions to the 
requirement for electronic filing of applications for certain new, non-
traditional grantees in the Job Access and Reverse Commute and Over-
the-Road Bus Accessibility programs as well as to a few grantees that 
have not successfully connected to or accessed TEAM-Web.
    In FY 2001, FTA established a 90-day goal for processing and 
approving all capital, planning and operating grants, including the 
section 5307 Urbanized Area Formula Program, section 5309 Fixed 
Guideway Modernization, New Starts and Bus Programs, the section 5310 
Elderly and Persons with Disabilities Program, the section 5311 
Nonurbanized Area Formula Program, the TEA-21 Job Access and Reverse 
Commute Program, the TEA-21 Over-the-Road Bus Accessibility Program, 
section 5303 Metropolitan Planning Program, and section 5313(b) 
Statewide Planning and Research Program. The 90-day processing time 
begins with the receipt of a complete application by the Regional 
Office. In order for an application to be considered complete, it must 
meet the following requirements: all projects must be contained in an 
approved STIP (when required), all environmental findings must be made 
by FTA, there must be an adequate project description, local share must 
be secure, all required civil rights submissions must have been 
submitted, and certifications and assurances must

[[Page 140]]

be properly submitted. Once an application is complete, the FTA 
Regional Office will assign a project number and when required submit 
the application to the Department of Labor for a certification under 
section 5333(b). The FTA circulars referenced below contain more 
information regarding application contents and complete applications. 
State applicants for section 5311 are reminded that they must certify 
to DOL that all subrecipients have agreed to the standard labor 
protection warranty for section 5311 and provide DOL with other related 
information for each grant.
    Formula and Capital Investment grant applications should be 
prepared in conformance with the following FTA Circulars: Program 
Guidance and Application Instructions for Metropolitan Planning Program 
Grants--C8100.1B, October 25, 1996; Urbanized Area Formula Program: 
Grant Application Instructions--C9030.1C, October 1, 1998; Nonurbanized 
Area Formula Program Guidance and Grant Application Instructions--
C9040.1E, October 1, 1998; Section 5310 Elderly and Persons with 
Disabilities Program Guidance and Application Instructions C9070.1E, 
October 1, 1998; and Section 5309 Capital Program: Grant Application 
Instructions--C9300.1A, October 1, 1998. Guidance on preparation of 
applications for State Planning and Research funds may be obtained from 
each FTA Regional Office. Copies of circulars are available from FTA 
Regional Offices as well as the FTA Web site.
    Applications for grants containing transferred FHWA funds (STP, 
CMAQ, and others) should be prepared in the same manner as for funds 
under the program to which they are being transferred. The application 
for flexible funds needs to specifically indicate the type and amount 
of flexible funds being transferred to FTA. The application should also 
describe which items are being funded with transferred funds, 
consistent with the Statewide Transportation Improvement Program 
(STIP).

    Issued on: December 26, 2001.
Jennifer L. Dorn,
Administrator.
BILLING CODE 4910-57-P

[[Page 141]]

[GRAPHIC] [TIFF OMITTED] TN02JA02.002


[[Page 142]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.003


[[Page 143]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.004


[[Page 144]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.005


[[Page 145]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.006


[[Page 146]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.007


[[Page 147]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.008


[[Page 148]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.009


[[Page 149]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.010


[[Page 150]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.011


[[Page 151]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.012


[[Page 152]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.013


[[Page 153]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.014


[[Page 154]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.015


[[Page 155]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.016


[[Page 156]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.017


[[Page 157]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.018


[[Page 158]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.019


[[Page 159]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.020


[[Page 160]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.021


[[Page 161]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.022


[[Page 162]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.023


[[Page 163]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.024


[[Page 164]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.025


[[Page 165]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.026


[[Page 166]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.027


[[Page 167]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.028


[[Page 168]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.029


[[Page 169]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.030


[[Page 170]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.031


[[Page 171]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.032


[[Page 172]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.033


[[Page 173]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.034


[[Page 174]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.035


[[Page 175]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.036


[[Page 176]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.037


[[Page 177]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.038


[[Page 178]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.039


[[Page 179]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.040


[[Page 180]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.041


[[Page 181]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.042


[[Page 182]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.043


[[Page 183]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.044


[[Page 184]]


[GRAPHIC] [TIFF OMITTED] TN02JA02.045

[FR Doc. 01-32117 Filed 12-31-01; 8:45 am]
BILLING CODE 4910-57-C