[Federal Register Volume 71, Number 55 (Wednesday, March 22, 2006)]
[Notices]
[Pages 14618-14624]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-4100]



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Part III





Department of Transportation





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Federal Transit Administration



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Public Transportation on Indian Reservation Program (49 U.S.C. 
5311(c)(1)): Notice of Public Meetings, Proposed Grant Program 
Provisions; Notice

  Federal Register / Vol. 71, No. 55 / Wednesday, March 22, 2006 / 
Notices  

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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration

[Docket No. FTA-06-24143]


Public Transportation on Indian Reservations Program (49 U.S.C. 
5311(c)(1)): Notice of Public Meetings, Proposed Grant Program 
Provisions

AGENCY: Federal Transit Administration (FTA), DOT.

ACTION: Notice and request for comment; Announcement of public 
meetings.

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SUMMARY: This notice does several things. First, it summarizes comments 
FTA received in response to information about a new program for Public 
Transportation on Indian Reservations Program (hereafter referred to as 
the Tribal Transit Program) included in an earlier Federal Register 
notice dated November 30, 2005 (70 FR 71950), ``FTA Transit Program 
Changes, Authorized Funding Levels and Implementation of the Safe, 
Accountable, Flexible, Efficient Transportation Equity Act: A Legacy 
for Users,'' and details FTA's response to those comments. Second, it 
announces the process FTA proposes to use to allocate available funds 
starting in FY 2006 and the grant program provisions that FTA proposes 
to apply to the program. Third, the notice seeks further comment on the 
proposed process and grant program provisions. Finally, the notice 
announces two (2) public meetings sponsored by FTA to provide direct 
outreach to tribal governments about the Tribal Transit Program and 
allow for discussion of this notice.

DATES: Comments should be submitted by April 21, 2006. Late-filed 
comments will be considered to the extent practicable.
    Public Meeting Dates: FTA will host two public meetings in April 
2006 intended to provide direct outreach to tribal governments as part 
of the FTA's rollout of the Tribal Transit Program. The first meeting 
will be held on April 4, 2006 in Denver, Colorado and the second 
meeting will be held on April 7, 2006 in Kansas City, Missouri.

ADDRESSES: You may submit comments identified by the docket number 
[Docket No. FTA-06-24143] by any of the following methods:
    1. Web Site: http://dms.dot.gov. Follow the instructions for 
submitting comments on the DOT electronic docket site.
    2. Fax: 202-493-2251.
    3. Mail: Docket Management Facility; U.S. Department of 
Transportation, 400 Seventh Street, SW., Nassif Building, PL-401, 
Washington, DC 20590-0001.
    4. Hand Delivery: Room PL-401 on the plaza level of the Nassif 
Building, 400 Seventh Street, SW., Washington, DC, between 9 a.m. and 5 
p.m., Monday through Friday, except Federal holidays.
    Instructions: You must include the agency name (Federal Transit 
Administration) and Docket number (FTA-06-24143) for this notice at the 
beginning of your comments. You should submit two copies of your 
comments if you submit them by mail. If you wish to receive 
confirmation that FTA received your comments, you must include a self-
addressed stamped postcard. Note that all comments received will be 
posted, without change, to http://dms.dot.gov including any personal 
information provided and will be available to internet users. Please 
see the Privacy Act section of this document.
    Docket: For access to the docket to read background documents and 
comments received, go to http://dms.dot.gov at any time or to Room PL-
401 on the plaza level of the Nassif Building, 400 Seventh Street, SW., 
Washington, DC between 9 a.m. and 5 p.m., Monday through Friday, except 
Federal holidays.
    Public Meeting Addresses: The meeting in Denver will be held at the 
Holiday Inn Denver International Airport, 15500 East 40th Avenue, 
Denver, Colorado 80239. The second meeting in Kansas City, Missouri 
will be held at the Westin Crown Center, 1 Pershing Road, Kansas City, 
Missouri 64108. Anyone interested in attending one of these April 
meetings should register on-line at http://ttap.colostate.edu/ParticipantRegistration.cfm.

FOR FURTHER INFORMATION CONTACT: Jamie Durham or Lorna Wilson, Office 
of Program Management, Federal Transit Administration, 400 Seventh 
Street, SW., Room 9315, Washington, DC 20590, phone: (202) 366-2053, 
fax: (202) 366-7951 or e-mail questions to 
[email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Overview
II. Comments and Responses
    A. Basis for Formula Apportionment
    B. Eligibility
    C. Eligible Activities
    D. Terms and Conditions
    E. Indian Self-Determination and Self-Governance
    F. Other
III. Proposed Grant Program Provisions
    A. Basis for Allocating Funds
    B. Eligibility
    C. Eligible Activities
    D. Terms and Conditions
    E. Local Share
IV. Public Outreach Meetings

I. Overview

    On November 30, 2005, FTA published a notice (70 FR 71950, 71965-
66) in the Federal Register, which broadly described new program 
changes to or extensions of existing programs contained in its new 
reauthorization legislation, the Safe, Accountable, Flexible, Efficient 
Transportation Equity Act: A Legacy for Users (SAFETEA-LU).
    Among other things, FTA solicited comments relating to the newly 
created program entitled ``Public Transportation on Indian 
Reservations'' (hereafter referred to as the Tribal Transit Program) in 
SAFETEA-LU that authorizes $45 million from the Nonurbanized Area 
Formula Grants Program (49 U.S.C. 5311) for FY 2006--2009 to be 
apportioned for grants directly to Indian tribes (49 U.S.C. 
5311(c)(1)). Under the Tribal Transit Program, Indian tribes are 
eligible direct recipients. The funds are to be apportioned for grants 
to Indian tribes for any purpose eligible under the Nonurbanized Area 
Formula Program (section 5311). More than 20 tribes and several State 
Departments of Transportation (DOTs) submitted comments. These comments 
and our responses are described later in this notice.
    FTA is hosting two public meetings with tribal governments to 
discuss the Tribal Transit Program. FTA encourages public participation 
at these meetings; however, in order for FTA to properly consider any 
comments, they must be submitted in writing to the docket for this 
notice. (See ``Instructions'' under the ADDRESSES section of this 
notice.) FTA will further consider comments it receives in response to 
this notice and at its public meetings as it finalizes the grant 
program provisions and develops its FY 2006 Notice of Funding 
Availability for the Tribal Transit Program.

II. Comments and Responses

    FTA specifically requested comments in the November 30th Federal 
Register notice on what criteria should be considered in selecting 
Indian tribes to receive funding and what factors should be used in 
allocating available funds among successful applicants. FTA also sought 
comment about appropriate terms and conditions for the program, 
especially from Indian tribes that previously received FTA funding. The 
comments are grouped by topic in this notice as follows: (A) Basis for 
formula apportionment; (B) eligibility; (C) eligible activities; (D) 
terms and

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conditions; (E) Indian self-determination and self-governance; and, (F) 
other. The following paragraphs summarize the comments and our 
responses. FTA's responses reflect the agency's analysis to date. Since 
we are continuing to seek comment on aspects of the program, it is 
possible that additional data could be provided which results in FTA 
amending our position before it is finalized in the FY 2006 Notice of 
Funding Availability.

A. Basis for Formula Apportionment

    In its November 30, 2005 Federal Register notice, FTA stated that 
SAFETEA-LU does not specify a basis for formula apportionment. The 
following comments were received regarding the basis for allocating the 
available funds.
    Comment: Multiple commenters suggested FTA use a competitive grant 
process for allocating the available funds.
    Response: FTA agrees with this comment. FTA determined that 
applying the Nonurbanized Area Formula Grants Program (section 5311) 
formula to this apportionment and allocating funds to all eligible 
Indian tribes would only provide a small amount of money to each tribe 
and not all tribes may be interested or able to implement transit 
projects. Instead, FTA proposes using an annual competitive selection 
process to allocate funds among eligible applicants. This process is 
described in section III of this notice.
    Comment: Multiple commenters suggested that instead of awarding 
funds to those with the planning process complete or tribal transit 
service in existence, FTA should offer a 60 or 120 day period for 
accepting any applications and award funds based on identified transit 
needs or planning activities designed to identify transit needs as 
reflected in either of the following: Indian tribe's long range plan, 
planning documents from other tribal government services or programs, 
or tribally established community assessments.
    Response: FTA agrees with this comment in part. FTA intends to 
evaluate how a project addresses the identified transit needs and the 
extent of planning in the eligibility determination and evaluation 
criteria, but FTA will limit eligibility in the first year to those 
that have completed the planning process or have tribal transit service 
in existence (see FTA response to comments in section on eligible 
activities). FTA agrees with the suggestion to offer a 60-day period 
for accepting proposals.
    Comment: Multiple commenters encouraged FTA to establish minimum 
and maximum grant awards to ensure that grant funding is large enough 
to aid Indian tribes significantly and to ensure that as large a number 
of tribes as possible are able to receive the benefits of this program.
    Response: FTA agrees with this comment in principle. Since this is 
a new program, however, FTA does not intend to establish minimum and 
maximum grant awards in the first year of the program in order to 
determine the level of tribal interest. Proposals must identify a 
specific project and include a detailed project budget to be 
considered. The amount allocated to each successful applicant will be 
based in part on the total amount of funding requested by all 
applicants and the appropriateness of the amount requested for the 
activities proposed by the applicant.
    Comment: One commenter suggested allocating one-third of available 
funds evenly among eligible applicants, one-third on a percentage based 
upon resident population to be served, and one-third using a 
competitive method among eligible applicants who can leverage funds to 
best accomplish major milestones that align with the overall program 
intent.
    Response: FTA agrees with this comment in part. FTA does not agree 
in allocating the funds in percentages; but, for reasons noted above 
proposes allocating the entire apportionment to competitively selected 
projects by evaluating the benefits of the project, which include 
evaluating the ratio of estimated daily ridership to total service 
area, the tribal population of the transit service area, and the ratio 
of unduplicated users to tribal population. FTA also proposes 
evaluating applicant's financial commitment and the extent of 
coordination, including the applicants's ability to leverage additional 
funding.
    Comment: One commenter suggested using a scaled weighting factor 
for pre-existing tribal programs, tribal transportation improvement 
plans, planning documents from other tribal government services or 
programs.
    Response: FTA agrees with this comment in part. FTA does not intend 
to use a scaled weighting factor, but propose evaluating the adequacy 
of project planning as one of the selection criteria.
    Comment: One commenter suggested using a rating system that 
included criteria such as: higher consideration for funding to Indian 
tribes currently providing transportation services, Indian tribes 
providing transportation services for participants who are 60- and 
older, or Indian tribes providing transportation services for 
handicapped participants.
    Response: FTA agrees with this comment in principle. Higher 
consideration will not necessarily be given to tribes currently funding 
transit service, or tribes providing these specific transit services, 
but proposals may receive higher scores based on how the proposed 
project addresses the needs demonstrated, on whether the human service 
transportation needs were considered, and on how well the project 
coordinates with other programs, such as transportation services for 
participants who are 60 years and older and transportation services for 
handicapped participants.
    Comment: One commenter suggested the emphasis should be placed on 
new and expanded services, discouraging supplanting of funds currently 
used to support public transportation.
    Response: FTA agrees with this comment. In the first year of the 
program, applications will be accepted for both new (with planning 
complete) and expanded services. In addition to funding under the 
Tribal Transit Program, States must continue to include the tribes in 
the equitable distribution of the section 5311 funds apportioned to the 
States.

B. Eligibility

    In its November 30, 2005 Federal Register notice, FTA stated that 
because planning is not an eligible activity under this program, it was 
considering limiting participation to Indian tribes that already have 
transit options or that have already conducted planning and are 
prepared to implement new transit service. The following paragraphs 
summarize the comments and responses received in response to this 
approach.
    Comments: Comments received showed both support and disfavor of 
this approach; those showing disfavor were concerned that this approach 
would leave a substantial amount of money unobligated because there are 
too few tribal transit programs in existence. Additionally, commenters 
were concerned that this was not Congress' intent for the program and 
urged FTA to reconsider planning as an eligible activity (discussed in 
more detail in the next section).
    Response: FTA recognizes these concerns, but is bound by the 
authority in the statute that states the funds are eligible for any 
purpose under section 5311. These purposes include capital and 
operating expenses for rural transit and rural intercity bus service. 
Planning is not eligible under section 5311 except pursuant to 5311(e), 
which is limited to

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15 percent of the funds. Since planning for transit service is not 
directly eligible under the Tribal Transit Program, FTA will limit the 
eligibility in the first year of the program to tribes that have 
completed the planning process and are ready to implement new transit 
service or projects that expand or enhance existing transit services. 
If there are remaining funds available at the completion of the award 
process, the funds will remain in the Tribal Transit Program and will 
be available for allocation in FY 2007.
    Comment: One commenter encouraged FTA to define eligible recipients 
as Federally recognized Indian tribes only.
    Response: FTA agrees with this comment. FTA accepts this 
recommendation as consistent with the statute and with other DOT 
programs for tribes. For the duration of the program, FTA will consider 
eligible direct recipients for this program to be the Federally 
recognized Indian tribes as identified by the Bureau of Indian Affairs 
(BIA) in the U.S. Department of the Interior. As of March 2006, there 
are 561 federally-recognized Indian tribes. Non-federally-recognized 
Indian tribes are eligible for section 5311 funds apportioned to the 
States, but not as eligible direct recipients, and not under the Tribal 
Transit Program.

C. Eligible Activities

    FTA did not solicit public comment on eligible activities, but we 
received many comments encouraging FTA to define planning as an 
eligible activity under the Tribal Transit Program. Section 3013 in 
SAFETEA-LU amended 49 U.S.C. 5311(c) by authorizing funding for the 
Tribal Transit Program ``for any purpose eligible under this section''. 
The term ``section'' in this provision refers to 49 U.S.C. 5311. 
Eligible purposes under section 5311 include capital projects, 
operating costs of equipment and facilities, and the acquisition of 
public transportation services for rural transit and rural intercity 
bus service. Planning activities are not eligible costs for funding in 
section 5311, except pursuant to section 5311(e), limited to 15 percent 
of the funds apportioned to the State, and 5311(f) for intercity bus 
service. Congress may enact a technical correction to allow the use of 
Tribal Transit Program funds for planning purposes in future years. 
Until this legislation is enacted, FTA recommends the use of other 
resources, such as Indian Reservation Roads Program funds, or section 
5311 funds allotted from a State's administrative funds for planning 
proposed new tribal transit service. Additional comments received were 
about the language in sections 5311(e) and 5311(f); those comments and 
responses are described below.
    Comment: Many commenters expressed confusion regarding the language 
in the statute about the 15 percent permissible for States to spend on 
administration, planning, and technical assistance.
    Response: FTA agrees that this section can be confusing. Section 
5311(e) provides that a State may use not more than 15 percent of its 
annual apportionment for administration, planning and technical 
assistance. The State may allocate funds from the 15 percent for use 
for these purposes by subrecipients, including tribes. If the State 
allocates funds from this source to a tribe, the funds can be awarded 
to the tribe by the State or directly from FTA. There is no statutory 
authority for using funds from the Tribal Transit Program for 
administration, planning and technical assistance.
    Comment: A few commenters also expressed confusion with regards to 
the requirement in section 5311(f) that requires each State to spend 15 
percent of its annual section 5311 apportionment ``to carry out a 
program to develop and support intercity bus transportation,'' unless 
the Governor certifies that ``the intercity bus service needs of the 
State are being met.'' The confusion surrounds the eligibility of 
``planning and marketing for intercity bus transportation'' as 
described in 5311(f).
    Response: FTA agrees that this section can be confusing. The intent 
of section 5311(f) is to support the connection between nonurbanized 
(rural and small urban) areas and the larger regional or national 
system of intercity bus service. Another objective is to support 
services to meet the intercity travel needs of residents in 
nonurbanized areas. Support of intercity bus service is an eligible 
expense under section 5311; therefore funds may be used for planning 
and marketing specifically for that service. FTA does not intend to 
require tribes to spend 15 percent of the funds allotted to them under 
the Tribal Transit Program for intercity bus service because the 
requirement to spend 15 percent for intercity bus service only applies 
to the Section 5311 funds apportioned to the States.

D. Terms and Conditions

    FTA solicited comments about appropriate terms and conditions for 
the program and requirements we should consider waiving for this 
program, especially from Indian tribes that previously received FTA 
funding. The comments and FTA's responses are below.
    Comment: One commenter suggested that requirements and procedures 
be commensurate with the funds available.
    Response: FTA agrees with this comment. FTA is undertaking a 
thorough and complete review of its statutory, regulatory, and program 
requirements to determine the appropriate substantive and programmatic 
requirements that will apply to the Tribal Transit Program. FTA is 
seeking comment on the proposed requirements described in section III 
of this notice.
    Comment: One commenter suggested that FTA's ``open door'' 
requirement of section 5311, which stipulates services must be 
available to the general public, should not be waived.
    Response: FTA agrees with this comment. Section 5311(c)(1) does not 
permit FTA to waive the requirement that eligible projects under the 
Tribal Transit Program be open to the general public. Transit service 
funded under this program must be available to the general public in 
the service area; services funded by this program cannot purposefully 
exclude other members of the general public, nor can they purposefully 
exclude persons who are not members of the applicant tribe.
    Comment: One commenter suggested that the tribal program should be 
subject to similar comprehensive planning requirements to ensure 
maximum utilization of limited funds and to avoid duplication of 
service.
    Response: FTA agrees with this comment. Planning is included in the 
eligibility determination and adequacy of planning is included in the 
proposed evaluation criteria for selecting projects as described in 
section III of this notice.
    Comment: One commenter suggested that tribes be active participants 
in the locally-developed, coordinated public transit-human services 
transportation planning process.
    Response: FTA agrees with this comment in principle. A locally-
developed, coordinated public transit-human services transportation 
plan is not an explicit requirement of 49 U.S.C. 5311; however, in 
areas seeking funds under the Job Access Reverse Commute Program (49 
U.S.C. 5316), the New Freedom Program (49 U.S.C. 5317), or the Special 
Needs of Elderly Individuals and Individuals with Disabilities Program 
(49 U.S.C. 5310), tribal transit agencies are encouraged to participate 
in the development of the plan.
    Comment: One commenter suggested that tribes demonstrate financial 
stability and agree to data and financial reporting requirements.

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    Response: FTA agrees with this comment. Demonstration of financial 
capacity and financial reporting are necessary requirements. 
Demonstration of financial commitment is included in the proposed 
evaluation criteria.
    Comment: One commenter representing multiple tribal clients 
suggested that tribes not be required to comply with State-administered 
Disadvantaged Business Enterprise (DBE) certification programs as a 
condition of receiving tribal transit grants.
    Response: FTA agrees with this comment. FTA does not intend to 
apply 49 CFR part 26 to tribes under this program; this includes the 
requirement of complying with State-administered DBE certification 
programs.
    Comment: One commenter suggested that Americans with Disabilities 
Act of 1990 (ADA) standards be kept in place.
    Response: FTA agrees with this comment. Since service funded under 
the Tribal Transit Program is limited to public transportation as 
defined in 49 U.S.C. 5302(a)(10), FTA believes it is in the national 
interest to ensure accessible transportation for persons with 
disabilities as required by the Americans with Disabilities Act of 
1990.
    Comment: Several commenters encouraged FTA to consider providing 80 
percent Federal share for operating assistance and anywhere from 80-100 
percent Federal share for capital projects.
    Response: FTA agrees with this comment in part. FTA recognizes the 
particular challenges tribes may have providing the local match, but to 
ensure that participants in this program have a vested interest we 
propose requiring some local match. To encourage participation in this 
program FTA is proposing two alternatives for lower local match 
requirements than typically required under other FTA programs. The 
proposals are described in detail in section III of this notice and FTA 
welcomes comments on which proposal we should apply under this program.
    Comment: Several commenters said that tribes should not have to 
provide local match for the first two years of grant award.
    Response: FTA agrees with this comment in part. FTA is proposing to 
use our existing procedures to allow eligible recipients to request 
deferral of the local share, as needed, as long as the commitment to 
provide local match before project completion exists. FTA disagrees 
with allowing local share to be waived entirely in the first two years 
of grant award; some local match will be required from the Indian 
tribes and the source of these funds must be identified in proposals.

E. Indian Self-Determination and Self-Governance

    FTA did not solicit comment on this subject, but many commenters 
encouraged FTA to develop a program that supports tribal sovereignty 
and self-determination. Commenters recommended that FTA develop grant-
funding agreements which are consistent with the self-determination and 
self-governance procedures and suggested that the DOT was authorized in 
SAFETEA-LU to enter into Indian Self Determination and Education 
Assistance Act (ISDEAA) contracts and agreements with tribal 
governments.
    Response: FTA agrees that the program should be developed in a way 
that recognizes tribal sovereignty, but disagrees with specific 
suggestions to use the ISDEAA contracts and agreements. Section 1119 in 
SAFETEA-LU amended section 202(d) in Chapter 2 of Title 23 (Highways) 
by authorizing funds for Indian tribal governments to be disbursed by 
contracts or agreements in accordance with the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450 et seq.). 
This statutory authorization is limited to Federal-aid highway funding 
provisions in Chapter 2 of Title 23 (Highways) of the U.S. Code. The 
Tribal Transit Program is authorized in SAFETEA-LU by an amendment to 
49 U.S.C. 5311. Section 5311 is codified in Chapter 53 (Public 
Transportation) of Title 49 of the United States Code. Therefore, FTA 
does not have the statutory authority to use contracts and agreements 
under the Indian Self-Determination and Education Assistance Act for 
projects funded under the Tribal Transit Program.

F. Other

    Many commenters encouraged FTA to work with Indian tribes on a 
government-to-government basis, to follow-up the previous comment 
period with additional consultation meetings, and to further coordinate 
our SAFETEA-LU implementation efforts with the Indian Reservation Roads 
(IRR) Program Coordinating Committee to develop mutually agreeable 
tribal transit procedures. Further, commenters requested that these 
procedures be coordinated with the Deputy Assistant Secretary for 
Tribal Government Affairs within DOT and encouraged FTA to document 
best practices, resources, and up-to-date information through Web sites 
such as Community Transportation Association of America (CTAA), 
American Public Transportation Association (APTA), National Rural 
Technical Assistance Program (RTAP), Multi-State Technical Assistance 
Program (MTAP), Tribal Technical Assistance Program (TTAP), Project 
Action and others.
    Response: FTA is committed to operating within a government-to-
government relationship with Indian tribes consistent with the DOT's 
Order on Program, Policies, and Procedures affecting American Indians, 
Alaska Natives, and Indian tribes (DOT 5301.1, November 16, 1999). FTA 
looks forward to providing up-to-date resources through our Web site 
and others, where possible. FTA has consulted with the Bureau of Indian 
Affairs (BIA) and the Federal Highway Administration (FHWA) since the 
legislation was signed on various aspects of this program. FTA is 
currently working with the regional Tribal Technical Assistance Program 
(TTAP) Centers on tribal transportation matters and will continue to 
work with them as we implement the program. To the maximum extent 
possible, we will continue to coordinate with other agencies and 
departments as this program is developed. In addition, FTA has 
scheduled two outreach meetings to provide face-to-face opportunities 
for interested Indian tribes to meet with FTA staff and discuss the 
program.

III. Proposed Grant Program Provisions

    FTA initially considered using an interim measure to allocate FY 
2006 funds based on letters of interest. Rather than establishing an 
interim process for allocating the funds, however, we now propose 
establishing the allocation methodology and program requirements for 
the life of the program. Using the comments received in the first 
public comment period and the restrictions of the statute, we describe 
below our proposal for the allocation methodology and program 
requirements of the Tribal Transit Program. The paragraphs are grouped 
by topic: (A) Basis for allocating funds; (B) eligibility; (C) eligible 
activities; (D) terms and conditions; (E) local share. We invite 
comments on the methodology and program requirements proposed for the 
Tribal Transit Program described in the following paragraphs.

A. Basis for Allocating Funds

    Rather than establishing a new process for allocating available 
funds each year, we propose using an annual competitive selection 
process to evaluate, score, and rank proposals to receive funding. We 
propose using the following criteria to competitively select projects 
for funding:
     Demonstration of need.

[[Page 14622]]

     Benefits of project.
     Adequacy of project planning.
     Financial commitment.
     Coordination.
    FTA will also consider the reasonableness of the amount requested 
compared to the scope of the proposed project. If the total available 
funds in a given year are not awarded, they will remain in the program 
for allocation in the following year. We intend to solicit the 
proposals through publishing a Notice of Funding Availability 
(``NOFA''). The NOFA will contain all necessary program information 
including: (1) Funding opportunity description; (2) award information; 
(3) eligibility information; (4) application and submission 
information; (5) application review information; and (6) award 
administration information, including requirements associated with an 
FTA grant.

B. Eligibility

    Eligible direct recipients include Federally-recognized Indian 
tribes or Alaska Native villages, groups, or communities as identified 
by the BIA in the U.S. Department of the Interior. Unless the statute 
is amended to include planning as an eligible activity, eligible 
applicants will be limited to tribes that have completed the planning 
process and are ready to implement transit service and tribes with 
existing transit services. To be eligible applicants, tribes must have 
the requisite legal, financial, and technical capabilities to receive 
and administer Federal funds under this program.

C. Eligible Activities

    Tribal Transit Program funds may be used for any purpose authorized 
under section 5311(b)(1). This means that grants can be awarded to 
recipients located in rural and small urban areas (populations under 
50,000) for public transportation capital projects, operating costs of 
equipment and facilities for use in public transportation, and the 
acquisition of public transportation services, including service 
agreements with private providers of public transportation services.
    Service funded under this program must be designed to maximize use 
by members of the general public who have disabilities. Coordinated 
human service transportation that primarily serves elderly persons and 
persons with disabilities, but which is not restricted from carrying 
other members of the public, is considered available to the general 
public if it is marketed as public transportation.

D. Terms and Conditions

    Section 3013 of SAFETEA-LU amends 49 U.S.C. 5311(c) by authorizing 
funds for the Tribal Transit Program ``under such terms and conditions 
as may be established by the Secretary.'' The term ``Secretary'' in 
this provision refers to the Secretary of Transportation. The Secretary 
of Transportation possesses the authority to limit the applicability of 
certain substantive and procedural requirements that are set forth in 
Title 49 (Transportation) of the United States Code. This includes the 
Federal transit assistance provisions in Chapter 53 (Public 
Transportation) of Title 49, which are administered by FTA. As 
previously stated in this notice, FTA is in the process of reviewing 
the appropriate Department of Transportation and FTA requirements that 
should apply to grants awarded under the Tribal Transit Program. The 
Secretary of Transportation, however, does not possess the authority to 
limit the applicability of government-wide grant requirements (commonly 
referred to as cross-cutting requirements) that apply to all Federal 
grants. Recipients of Federal assistance are subject to many 
requirements regardless of the source of funds, for example 
restrictions on lobbying. Recipients under the Tribal Transit Program 
are subject to these government-wide grant requirements, which are not 
all named in this document. In addition, some Federal requirements are 
applicable regardless of whether Federal assistance is provided. For 
example, the requirement for drivers of vehicles over a certain size is 
to hold a Commercial Drivers License.
    FTA believes the following specific statutory or regulatory 
requirements must or should be applied to grants awarded under this 
program:
    1. Common Grant Rule (49 CFR part 18), ``Uniform Administrative 
Requirements for Grants and Cooperative Agreements to State and Local 
Governments.'' (Federally recognized Indian tribes are included in the 
definition of ``Government'' in 49 CFR part 18.)
    2. Civil Rights Act of 1964. Compliance with civil rights statutes 
will be required, including compliance with equity in service and 
general Equal Employment Opportunity (EEO) principles. FTA proposes, 
however, that grantees under this program not be required to comply 
with the FTA program-specific guidance for Title VI and Title VII.
    3. Section 504 and ADA requirements in 49 CFR parts 27, 37 and 38. 
Part 27 is the regulation for nondiscrimination on the basis of 
disability in programs and activities receiving or benefiting from 
federal financial assistance. Part 37 is the DOT's regulation that 
implements the Americans with Disabilities Act. Part 38 is the 
regulation that specifies the accessibility specifications for 
transportation vehicles.
    4. Drug and Alcohol Testing requirements. 49 CFR part 655 is an FTA 
regulation that addresses a national safety issue for operators of 
public transit.
    5. Planning requirements. The FTA/FHWA joint planning regulations 
within 23 CFR part 450 are not applicable since tribal governments are 
neither States nor metropolitan areas. However, we propose to require 
that all Indian tribes participating in the Tribal Transit Program 
include projects within their transportation plans (i.e. Tribal 
Transportation Improvement Plan (TTIP) or Long Range Transportation 
Plan (LRTP)) and attach their plan to the Statewide Transportation 
Improvement Program (STIP). Proposals will be accepted for rating so 
long as the project exists in a TTIP or the tribe's LRTP. However, FTA 
will not award a grant until the approved project is attached or 
included in the STIP.
    6. National Environmental Policy Act (NEPA) requirement. This 
requirement, similar to the Department's ADA regulation, is an 
environmental requirement that applies government-wide to projects 
funded with Federal financial assistance, and although Federal 
departments might have issued their own regulations, such as DOT's 
regulation in part 771, this requirement is considered a cross-cutting 
requirement.
    7. School Bus and Charter Service. The regulatory implementation 
requirements regarding school bus and charter service must apply 
because the Tribal Transit Program is ``for purposes eligible under 
5311'' and the definition of public transportation does not include 
school bus and charter service. Section 5323(d) places limits on the 
charter services, which may be provided by federally funded public 
transportation operators (49 CFR part 604). Section 5323(f) prohibits 
the use of FTA funds for exclusive school bus transportation for school 
students and school personnel. The implementing regulation (49 CFR part 
605) does permit regular service to be modified to accommodate school 
students along with the general public.
    8. National Transit Database (NTD) Reporting Requirement. 49 U.S.C 
5335 requires NTD reporting for all direct recipients of section 5311 
funds. FTA has not yet identified the specific data

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elements that tribes will be required to report or the reporting 
mechanism, but will seek to minimize the reporting burden while 
collecting basic information about tribal transit systems for inclusion 
in assessments of the effectiveness of FTA programs on a national 
basis. Specific reporting instructions will be provided in subsequent 
years.
    Given the precedent established in executive memorandums, executive 
orders, and our own DOT order to streamline processes and requirements 
for programs that affect Indian tribes, we are proposing not to apply 
the DOT and FTA requirements listed below. FTA solicits comments on the 
requirements we propose not to apply.
    1. Labor Protections (49 U.S.C. 5333(b)). The labor protection 
requirements of section 5333(b) are applied to the section 5311 program 
through a standard warranty agreed to in writing by each subrecipient 
of the States to which funds are apportioned. The State, as FTA's 
direct grantee, certifies to the Department of Labor that each 
subrecipient has agreed to the warranty. Because the tribes will be 
direct recipients of FTA under this program, not subrecipients of the 
States, the existing warranty arrangements are irrelevant. Further, the 
potential impact of grants under this program on organized labor is 
insignificant, so FTA does not consider it necessary to require 
alternative labor protective arrangements.
    2. Buy America (49 CFR part 661). Currently Buy America 
requirements apply only to procurements over $100,000. Given the small 
size of the program relative to other FTA programs to which Buy America 
applies, FTA believes the benefits of imposing this requirement would 
be insignificant relative to the potential increased administrative 
burden to the tribes not receiving assistance under any other FTA 
program.
    3. Pre-award and post-delivery audits (49 CFR part 633). These 
requirements are substantially related to the Buy America requirements 
described above which we are proposing not to apply.
    4. Bus Testing (49 CFR part 665). FTA is proposing not to apply 
this requirement to simplify vehicle procurements by tribes funded only 
under the Tribal Transit Program. Since the vast majority of vehicle 
models that are subject to the requirement will have been tested before 
purchase by other FTA grantees, the purposes of the regulation can be 
met without imposing additional administrative burdens on the tribes.
    5. FTA specific civil rights program requirements, including Title 
VI, and Equal Employment Opportunity (EEO) program specific 
requirements. FTA believes that requiring compliance with the 
underlying civil rights statutes is sufficient. Grantees will be 
required to certify annually to providing equity in service and EEO 
compliance. The FTA specific requirements described in FTA Circulars 
4702.1 and 4704.1 are currently in the process of being updated. Given 
the smaller size of the program relative to other FTA programs to which 
the FTA specific Title VI and EEO guidance applies, FTA believes the 
benefits of imposing these requirements would be insignificant relative 
to the potential increased administrative burden to the tribes not 
receiving assistance under any other FTA program.
    6. Disadvantaged Business Enterprise (DBE) (49 CFR part 26). FTA 
has determined that it is not necessary to apply the DBE requirements 
to this program, because the administrative burdens of compliance with 
the regulation by the tribes may be disproportionate to the incremental 
benefits. The cross-cutting nondiscrimination requirements that are 
applied to the Tribal Transit Program will satisfy the 
nondiscrimination aspects of the DBE rule. Under the regulation, DBE 
goals and plans are required only for contracting opportunities, 
exceeding $250,000, not including vehicle procurements, which may not 
apply to many grantees under this program. Tribes can be expected to 
use DBEs, including tribally-owned businesses when there are 
contracting opportunities whether or not the rule is applied. Transit 
vehicle manufacturers have a direct compliance obligation under the 
regulation.
    When the terms and conditions for the program are finalized they 
will be incorporated into certifications and assurances and grant 
agreements that all successful applicants must sign in order to receive 
Tribal Transit Program funds. These terms and conditions will be 
included in the Notice of Funding Availability for this program. Please 
note that tribes receiving grants under other FTA programs are subject 
to the standard grant provisions for those programs. The authority of 
the Secretary to determine the terms and conditions applies only to the 
Tribal Transit Program.

E. Local Share

    In response to comments that the requirement for a local share is a 
barrier to participation in the program while still ensuring that the 
tribe has an investment in the project, FTA proposes two local share 
alternatives and invites comments on which the tribes find more 
beneficial. The final Notice of Funding Availability will include only 
one of these alternatives:
    a. FTA proposes a Federal share of 80 percent and a local share of 
20 percent for both capital and operating assistance projects. This 
reduces the local share required for operating assistance compared to 
the standard FTA 50/50 match and maintains the standard 80/20 match for 
capital assistance. Under this proposal the Federal share available to 
a tribe under the Tribal Transit Program could be lower than the 
Federal share for a similar project funded from a State's section 5311 
apportionment should that State apply the higher federal share 
(``sliding scale'') allowed under section 5311, which ranges for States 
described in section 120(b) of title 23 from 81.3 percent to 94.89 
percent, in accordance with the formula under that section for States 
with a large amount of federal lands; or
    b. FTA proposes for the tribal program the highest Federal share 
(``sliding scale'') allowed under section 5311 for States described in 
section 120(b) of title 23 in accordance with the formula under that 
section for States with a large amount of federal lands. Since tribes 
are not States and some tribes are located in more than one State, FTA 
will allow tribes the highest sliding scale Federal share allowed for 
any State under section 120(b)(1): 95 percent (rounded up from 94.89) 
for capital and 60 percent (rounded up from 59.31) for operating 
assistance. This proposal provides a higher Federal share for capital 
projects and a slightly higher Federal share for operating assistance 
than the standard 80/20 and 50/50 match and reduces the overall local 
share required for most tribal transit projects.
    To encourage coordination among Federal agencies that provide 
transportation services, matching funds may be provided from Federal 
agencies other than the Department of Transportation. Federal Lands 
Highway program funds, administered by the Federal Highway 
Administration, may also be used as matching funds as can Indian 
Reservation Roads (IRR) Program funds.
    FTA solicits comments on the requirements presented above that we 
propose to apply under this program.

IV. Public Outreach Meetings

    FTA is holding one-day outreach meetings in Denver, Colorado on 
Tuesday, April 4, 2006 and Kansas City, Missouri on Friday, April 7, 
2006 as

[[Page 14624]]

part of the implementation of the Tribal Transit Program created by 
SAFETEA-LU. The meetings will be a combination of general sessions and 
break-out sessions and will last from 8 a.m. until 4 p.m. The meetings 
will allow FTA to provide a program update and receive input from 
interested parties on the information presented in this notice. While 
we encourage free dialogue during the public meetings, comments must be 
submitted in writing to the docket in order to be considered by FTA. 
All participants must pre-register for the meeting of their choice by 
registering online at http://ttap.colostate.edu/ParticipantRegistration.cfm. Registration is also available by fax; 
please send an e-mail to [email protected] if registration 
forms are needed or if you have any questions regarding these meetings. 
Registration for the meetings was scheduled to end Thursday, March 16, 
2006. However, due to the late publication of this notice, we will 
accept registration through March 23, 2006.

    Issued in Washington, DC, this 16th day of March, 2006.
Sandra K. Bushue,
Deputy Administrator.

Appendix--FTA Regional Offices

    Richard H. Doyle, Regional Administrator, Region 1--Boston, 
Kendall Square, 55 Broadway, Suite 920, Cambridge, MA 02142-1093, 
Tel. 617 494-2055.
    States served: Connecticut, Maine, Massachusetts, New Hampshire, 
Rhode Island, and Vermont.
    Letitia Thompson, Regional Administrator, Region 2--New York, 
One Bowling Green, Room 429 New York, NY 10004--1415, Tel. No. 212 
668-2170.
    States served: New Jersey, New York, and the Virgin Islands.
    Susan Borinsky, Regional Administrator, Region 3--Philadelphia, 
1760 Market Street, Suite 500, Philadelphia, PA 19103-4124, Tel. 215 
656-7100.
    States served: Delaware, Maryland, Pennsylvania, Virginia, West 
Virginia, and District of Columbia.
    Yvette Taylor, Regional Administrator, Region 4--Atlanta, 
Atlanta Federal Center, Suite 17T50, 61 Forsyth Street SW, Atlanta, 
GA 30303, Tel. 404 562-3500.
    States served: Alabama, Florida, Georgia, Kentucky, Mississippi, 
North Carolina, Puerto Rico, South Carolina, and Tennessee.
    Don Gismondi, Deputy Regional Administrator, Region 5--Chicago, 
200 West Adams Street, Suite 320, Chicago, IL 60606, Tel. 312 353-
2789.
    States served: Illinois, Indiana, Michigan, Minnesota, Ohio, and 
Wisconsin.
    Robert C. Patrick, Regional Administrator, Region 6--Ft. Worth, 
819 Taylor Street, Room 8A36, Ft. Worth, TX 76102, Tel. 817 978-
0550.
    States served: Arkansas, Louisiana, Oklahoma, New Mexico and 
Texas.
    Mokhtee Ahmad, Regional Administrator, Region 7--Kansas City, 
MO, 901 Locust Street, Room 404, Kansas City, MO 64106, Tel. 816 
329-3920.
    States served: Iowa, Kansas, Missouri, and Nebraska.
    Lee O. Waddleton, Regional Administrator, Region 8--Denver, 
12300 West Dakota Ave., Suite 310, Lakewood, CO 80228-2583, Tel. 
720-963-3300.
    States served: Colorado, Montana, North Dakota, South Dakota, 
Utah, and Wyoming.
    Leslie T. Rogers, Regional Administrator, Region 9--San 
Francisco, 201 Mission Street, Room 1650, San Francisco, CA 94105-
1926, Tel. 415 744-3133.
    States served: American Samoa, Arizona, California, Guam, 
Hawaii, Nevada, and the Northern Mariana Islands.
    Rick Krochalis, Regional Administrator, Region 10--Seattle, 
Jackson Federal Building, 915 Second Avenue, Suite 3142, Seattle, WA 
98174-1002, Tel. 206 220-7954.
    States served: Alaska, Idaho, Oregon, and Washington.

[FR Doc. E6-4100 Filed 3-21-06; 8:45 am]
BILLING CODE 4910-57-P