[Federal Register Volume 72, Number 234 (Thursday, December 6, 2007)]
[Rules and Regulations]
[Pages 68756-68762]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-23565]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration

49 CFR Part 630

[Docket No: FTA-2007-27319]
RIN 2132-AA94


National Transit Database: Amendment to Reporting Requirements 
and Non-Substantive Technical Changes

AGENCY: Federal Transit Administration (FTA), DOT.

ACTION: Final rule.

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SUMMARY: This notice announces the final rule requiring recipients of 
grants under 49 U.S.C. 5311, Formula Grants for Other Than Urbanized 
Areas (Nonurbanized Area Formula Grants,) to report annual data to the 
National Transit Database (NTD) as a condition for receiving these 
grants. In addition, this final rule makes non-substantive changes, 
technical corrections, and conforming amendments to the ``National 
Transit Database'' regulation.

DATES: Effective Date: January 7, 2008.

FOR FURTHER INFORMATION CONTACT: For program issues: John D. Giorgis, 
Office of Budget and Policy, (202) 366-5430 (telephone); (202) 366-7989 
(fax); or [email protected] (e-mail). For legal issues: Richard 
Wong, Office of the Chief Counsel, (202) 366-4011 (telephone); (202) 
366-0675 (fax); or [email protected] (e-mail).

SUPPLEMENTARY INFORMATION: 

I. Background

    The National Transit Database (NTD) is FTA's primary national 
database for statistics on the transit industry. Section 3033 of the 
Safe, Accountable, Flexible, Efficient Transportation Equity Act: A 
Legacy for Users (SAFETEA-LU) [Pub. L. 109-59 (August 10, 2005)] 
amended the NTD provisions under 49 U.S.C. 5335 to require that each 
recipient receiving Formula Grants for Other Than Urbanized Areas 
(Nonurbanized Area Formula Grants), or any person that will receive 
benefits directly from these funds, must be subject to the reporting 
and uniform systems of the NTD. Section 5335(b) continues to require 
NTD reporting for recipients of and beneficiaries of assistance from 
Urbanized Area Formula Grants.
    In addition, section 3013(b) of SAFETEA-LU amended 49 U.S.C. 
5311(b)(4) to require each recipient receiving Nonurbanized Area 
Formula Grants to submit an annual report containing information on 
capital investment, operations, and service provided with grant funds 
from this program. The recipient must include the following information 
in the report: Total annual revenue; sources of revenue; total annual 
operating costs; total annual capital costs; fleet size and type, and 
related facilities; revenue vehicle miles; and ridership. The mandatory 
reporting criteria will assist FTA in understanding the effectiveness 
of Nonurbanized Area Formula Grants in improving rural public 
transportation. These data are similar to those already collected by 
FTA for recipients of Urbanized Area Formula Grants, but are 
streamlined for rural recipients.
    This final rule revises 49 CFR Part 630, the Uniform System of 
Accounts and Reporting System, to conform with 49 U.S.C. 5335 and 5311, 
as amended by sections 3033 and 3013(b) of SAFETEA-LU.

II. Comments and FTA Response to Comments

    On March 26, 2007, FTA issued a notice of proposed rulemaking 
(NPRM) that provided interested parties with the opportunity to comment 
on substantive amendments to FTA's NTD Regulation that would implement 
the annual reporting requirements for recipients and beneficiaries of 
Nonurbanized Area Formula Grants (72 FR 14061). In this NPRM, FTA 
proposed changes that would: (1) Require recipients of Nonurbanized 
Area Formula Grants to report data to the NTD; and, (2) require the 
annual reporting of rural transit data as a condition for receiving 
Nonurbanized Area Formula Grants. The proposed rule also contained 
technical corrections and conforming amendments, such as changes to 
statutory references. FTA invited comments on the proposed substantive 
amendments that would implement the annual reporting requirements for 
Nonurbanized Area Formula Grant recipients and beneficiaries. In 
accordance with 5 U.S.C. 553(b)(3)(A), FTA did not invite comments on 
the technical corrections and conforming amendments because those 
changes are ``interpretative'' in nature, and FTA was not required to 
accept or consider comments on them.
    FTA received ten comments on the proposed substantive amendments 
that would implement the annual reporting requirements for Nonurbanized 
Area Formula Grant recipients and beneficiaries. FTA hereby responds to 
these comments in the following order: (a) General Coordination and 
Reporting Concerns; (b) Failure to Report Data; (c) Late and Incomplete 
Reports; (d) Questionable Data Items; (e) Notice of FTA action; (f) 
Waiver of Reporting Requirements; (g) Proposed Appendix A; (h) Comments 
on the proposed 2007 Rural NTD Module Reporting Manual; and, (i) 
Additional Technical Revisions.

(a) General Reporting Concerns

    Four comments expressed concern about the burden of the proposed 
reporting requirements. One commenter strongly encouraged FTA to follow 
its stated purpose to provide streamlined reporting requirements for 
the rural program. Another commenter expressed concern that rural 
systems will experience significant difficulties in complying with 
reporting, which will impact the reliability and usefulness of the 
data. One commenter noted that FTA's historical position has been to 
not be involved with subrecipients and that data collection on 
individual subrecipients is a major departure from this practice.
    FTA response: FTA is seeking the data to comply with 49 U.S.C. 5335 
and 49 U.S.C. 5311(b)(4), and the proposed reporting requirements are 
largely specified by statute. FTA notes that it is only requiring the 
States to complete and submit a one-page form for each Section 5311 
grant subrecipient, and is only requiring Tribes that are direct 
recipients of Section 5311 grants to complete the same form. Comments 
on the specific nature of the reporting requirements, however, are 
outside the scope of this rulemaking. FTA considered these comments as 
part of the process of finalizing the 2007 Rural NTD Reporting Manual.
    In response to the commenter regarding data collection from 
subrecipients, FTA notes that FTA has the statutory authority to 
require recipients to gather and report subrecipients' NTD data to FTA 
pursuant to 49 U.S.C. 5335. Section 5335(a) states that FTA may request 
and receive appropriate information for the NTD from ``any source,'' 
which includes requesting information from a Nonurbanized Area Formula 
Grant subrecipient. Moreover, Section 5335(b) states that FTA ``may 
award a grant under section 5307 or 5311 only if the

[[Page 68757]]

applicant, and any person that will receive benefits directly from the 
grant, are subject to the reporting and uniform systems.'' A 
subrecipient of Section 5311 is a direct beneficiary of the grant and, 
as such, is subject to providing information for the NTD to the extent 
FTA requires. FTA reminds the commenter that subrecipients must meet a 
number of grant requirements before the disbursement of grant money, 
and that the NTD reporting is one of these requirements.
    FTA recognizes that rural systems may not have sophisticated 
technical resources. FTA has limited the information collection to data 
that any transit provider should collect for its own internal 
management purposes. FTA will train and work with reporters to ensure 
data quality, while recognizing that, in some cases, good-faith 
estimates may have to suffice.
    FTA received three comments expressing concern about the ambiguity 
of the reporting requirements for those transit agencies receiving 
grants under both Section 5307 and Section 5311, and the burden that 
this would have on small transit agencies. One commenter particularly 
expressed concern about allocating operating data and safety data 
across separate reports for urbanized areas and for rural areas, and 
across funding sources. Another commenter asked FTA to specifically 
detail how it would prevent double-counting across urbanized area and 
rural area NTD submissions. One commenter suggested that FTA should 
relieve States from the responsibility of reporting on behalf of 
subrecipients that are already reporting directly to the NTD as an 
urbanized area reporter.
    FTA Response: FTA accepts the suggestion of the commenter to 
relieve States from the responsibility of reporting on behalf of 
subrecipients that are already reporting directly to the NTD as an 
urbanized area reporter. Since the urbanized area reporting 
requirements are more extensive than the rural reporting requirements, 
all of the data required by the rural NTD reporting requirements can be 
captured through the urbanized area NTD reporting requirements. As 
such, FTA has amended Sec.  630.4 to specify that States need not 
provide reports for those transit agencies that are already providing 
reports to the NTD as urbanized area transit agencies. This amendment 
to the rule will preclude the need for allocation of data in the rural 
reporting, and will eliminate the possibility of double-counting.
    FTA understands, however, that as proposed, the rule may have been 
unclear as to which entity should submit data to the NTD. As such, FTA 
replaced the term ``reporting agency,'' in the proposed rule, with the 
term ``reporting entity,'' which FTA defined as a transit agency, a 
State Department of Transportation that is a recipient of grants under 
49 U.S.C. 5311, or a Federally-recognized Indian Tribe that is a direct 
recipient of grants under 49 U.S.C. 5311. FTA also added the definition 
of ``State Department of Transportation'' for clarification purposes.
    One comment reminded FTA to be cognizant of the efforts of many 
rural transportation agencies in following the Executive Order on Human 
Service Agency Transportation Coordination, and to not provide 
additional barriers in the final rule that undermine those agencies in 
making the best use of limited transportation resources.
    FTA response: FTA agrees with the second comment, and has taken 
coordinated funding sources and human service trips into consideration 
in the 2007 Rural NTD Module Reporting Manual. This rule does not 
conflict with the Executive Order on Human Service Agency 
Transportation Coordination.
    One comment expressed the concern that removing the rural area 
ridership and revenue data from the previously-combined urbanized and 
rural services reporting will negatively affect Section 5307 funding 
for grant recipients that currently receive both Section 5307 and 
Section 5311 funding.
    FTA response: FTA notes that it uses the data submitted to the 
Annual NTD Module for the apportionment of Section 5307 funds 
(Urbanized Area Formula Grants), and services provided in nonurbanized 
areas have never been permitted to be included in the apportionment of 
Section 5307 funds. In addition, FTA notes that under the current 
Annual NTD Module Reporting Manual (for Urbanized Areas) transit 
agencies providing service in urbanized areas subject to the 
apportionment of funds based on service data must separate their data 
for services provided in urbanized areas from services provided in non-
urbanized areas.
    Three commenters asked FTA to use a reporting system similar to the 
Management Information System (MIS) used for Drug and Alcohol testing 
so that individual subrecipients and their contracted providers can 
enter their own data, subject to a review by the State, rather than 
requiring the State to collect and enter the data into the NTD. One 
commenter asked FTA to implement an automated reporting system that did 
not require manual entry.
    FTA response: FTA understands some transit agencies and State DOTs 
may prefer to have transit agencies enter their data directly. However, 
FTA believes State DOT reporting is in the public interest, and reduces 
the reporting burden on the smallest rural transit agencies. Therefore, 
FTA will continue to require the States to submit subrecipient data, as 
developed in consultation with State DOTs and Section 5311 grant 
subrecipients. While FTA is neither able to consider using the Volpe 
Center's MIS submissions system nor some similar automated reporting 
system for direct reporting by subrecipients at this time, FTA may 
explore implementing improvements in the reporting software as 
financial resources permit.
    Two commenters identified a discrepancy between the definitions of 
``public transportation'' in the proposed rulemaking and the 2007 Rural 
NTD Module Reporting Manual with regard to whether public 
transportation includes or excludes intercity bus. In particular, these 
commenters note that the proposed rule excludes intercity bus from 
public transportation, while the proposed 2007 Rural NTD Module 
Reporting Manual includes intercity bus as public transportation. These 
commenters ask for clarity and consistency between the two definitions. 
One commenter asked FTA to further clarify whether the State or the 
intercity bus company is responsible for reporting intercity bus data.
    FTA Response: FTA understands that, as proposed, the definition of 
``public transportation'' agency presents an apparent conflict with the 
definition of public transportation in the proposed 2007 Rural NTD 
Module Reporting Manual. FTA revised the proposed definition of 
``public transportation agency'' to clarify that a transit agency means 
an entity providing public transportation as defined in 49 U.S.C. 5302, 
and updated the references to public transportation agency accordingly.
    Under 49 U.S.C. 5311, intercity bus projects are identified as a 
beneficiary of a certain portion of Section 5311 grants, and 49 U.S.C. 
5335 requires that all recipients or beneficiaries of Section 5311 
grants be subject to NTD reporting requirements. FTA does not believe 
that Congress intended the definition of ``public transportation'' in 
49 U.S.C. 5302 to provide States with an exception to NTD reporting for 
intercity bus transportation subrecipients. Thus, States should include 
information on all beneficiaries of the State's Section 5311 grants, 
including intercity bus

[[Page 68758]]

transportation, in the State's NTD report.

(b) Failure to report data.

    Four commenters expressed concern that Sec.  630.5 was unduly harsh 
in tying Section 5311 funding to compliance with a data collection 
program. These commenters argued that providing transit services was 
more important than providing data, and expressed concern that 
withholding funds from applicants who do not comply with NTD reporting 
requirements does not seem reasonable and may not be in the best 
interest of the applicant or the State.
    FTA Response: Pursuant to 49 U.S.C. 5335(b), FTA may award a grant 
under section 5307 or 5311 only if the applicant, and any person that 
will receive benefits directly from the grant, are subject to NTD 
reporting. As a result, FTA does not have discretion to separate 
Section 5311 funding from compliance with NTD reporting.
    Four commenters expressed concern that Sec.  630.5 did not provide 
FTA with enough discretion in evaluating the compliance of recipients 
and direct beneficiaries of Section 5311 grants with NTD reporting, and 
that this section mandated automatic ineligibility for Section 5311 
funding, even for non-major violations. These commenters recommended 
that FTA amend the first sentence of Sec.  630.5 to substitute the word 
``may'' for the word ``will'' when discussing ineligibility for future 
grants based on a failure to report data to NTD.
    FTA Response: FTA understands the basis of the commenters' desire 
to amend the first sentence of Sec.  630.5. However, the statute states 
that FTA may award a grant under Section 5307 or 5311 ``only if the 
applicant and any person that will receive benefits directly from the 
grant are subject to the reporting and uniform systems.'' FTA does not 
have the discretion to award a grant under section 5307 or 5311 to a 
recipient that fails to report the required data to the NTD. Therefore, 
FTA did not adopt the commenters' suggestion to use the discretionary 
word ``may'' in this section.
    One commenter suggested that Sec.  630.5 be amended to require that 
the determination of ineligibility be possible only for data reporting 
efforts that, ``when viewed as a whole,'' are not in ``substantial 
conformance'' with this part. This commenter also argued that reporting 
entities should receive ``a written notice from FTA explaining the 
reasons why the data submitted, viewed as a whole, are not in 
substantial conformance with this part'' and that a reporting entity 
should have ``a reasonable opportunity to file amended or additional 
data in response to such FTA notice.''
    FTA Response: FTA declines to adopt the commenters' suggestion to 
amend Sec.  630.5 to require that the determination of ineligibility be 
made only for data reporting efforts that, when ``viewed as a whole'' 
are not in ``substantial conformance'' with 49 CFR part 630. FTA agrees 
that reporters should be given an opportunity to remedy deficiencies in 
their submissions and has provided this opportunity in a notice 
provision set forth in Sec.  630.9 and the waiver provision set forth 
in Sec.  630.10.
    Five commenters asked if FTA intends to hold the entire State 
liable if only one subrecipient does not submit NTD data to the State.
    FTA Response: FTA does not intend to hold the entire State liable 
if a subrecipient does not submit NTD data to the State. FTA reminds 
commenters that pursuant to Circular 9040.1F, ``Nonurbanized Area 
Formula Program Guidance and Application Instructions,'' States must 
ensure that subrecipients of Section 5311 grants are in compliance with 
a number of FTA requirements. Ensuring that a subrecipient supports the 
State's ability to comply with NTD reporting would be one of these 
requirements. Pursuant to Circular 9040.1F, a State would be required 
to withhold the disbursement of funds to a subrecipient that did not 
support the State's ability to comply with NTD reporting. By 
withholding disbursement of funds to the subrecipient, that 
subrecipient would no longer be a direct beneficiary of the State's 
Section 5311 grant.
    One commenter suggested that FTA amend the proposed part 630 to add 
a section that makes it clear that an agency declared ineligible for 
funding will be able to file for reinstatement when it: (1) Files data 
that sufficiently corrects deficiencies in its prior data submission; 
or (2) makes a filing consistent with the Alcohol Program Incentive 
Grant Program established by 23 U.S.C. 163(e). Another commenter asked 
FTA to clarify how long the subrecipient would be ineligible for 
funding once FTA determined ineligibility.
    FTA Response: FTA has amended the proposed rule in Sec.  630.5 to 
clarify that failure to report data in accordance with this part will 
result in the ``noncompliant reporting entity'' being ineligible to 
receive any Section 5307 or 5311 Grants until such time as a report is 
filed in accordance with this part. This change also clarifies that a 
transit agency that fails to report data as a recipient of a Section 
5307 grant would also be ineligible to be a beneficiary, as a 
subrecipient, of a Section 5311 grant. Pursuant to 49 U.S.C. 5335(b), 
FTA may make grants under Section 5311 only if the applicant and any 
person that will receive benefits directly from the grant are subject 
to the reporting and uniform systems. As a result, the approach 
outlined in 23 U.S.C. 163(e), which describes penalties for States that 
have not enacted or enforced safety incentives to prevent operation of 
motor vehicles by intoxicated persons, cannot be applied to the NTD 
program.
    Two commenters were concerned that the proposed Sec.  630.5 
empowers FTA staff to determine ineligibility for funding if they find 
that the data submitted does not meet ``regulatory requirements.'' 
These commenters suggested that Sec.  630.5 be rewritten to require the 
Administrator to declare a reporting entity ineligible for Federal 
transit funds for noncompliance with NTD reporting.
    FTA Response: FTA does not adopt the suggested revision to Sec.  
630.5 to require the Administrator to make a determination of 
ineligibility of funding. The FTA Administrator's concurrence, or that 
of his or her designee, will be sought prior to an ineligibility 
determination being issued.

(c) Late and Incomplete Reports

    One commenter asked if FTA intends to require that NTD reports be 
accurate and complete. Another commenter argued that ``if there is a 
data gap, it should not create a risk of ineligibility if, viewed as a 
whole, the agency data submission is in substantial conformance with 
the requirements.'' This commenter requested an amendment to permit 
agencies to provide good faith estimates.
    FTA Response: FTA reminds the commenter requesting clarity 
concerning the accurateness and completeness of NTD data that Congress 
created the NTD to meet the needs of the Nation for information on 
which to base public transportation service planning. As such, data 
submitted must be accurate and complete. FTA does not accept the 
suggestion to explicitly allow for accepting good-faith estimates. 
Section 630.8 already provides for agencies to comply by ``exhausting 
all possibilities for obtaining this information.'' Additionally, as 
set forth in Sec.  630.10, FTA may grant waivers to reporting entities 
on a case-by-case basis when the reporting entity cannot furnish the 
data without unreasonable expense and inconvenience. Further, before 
taking final action under Sec. Sec.  630.5 and 630.8, FTA will transmit 
a written

[[Page 68759]]

request to the reporting entity for it to provide the necessary 
information to FTA.
    Two commenters suggested that FTA implement a process that provides 
new Section 5311 reporters with additional time for compliance. One 
commenter suggested the rules regarding timely submission proposed in 
Sec.  630.6(a) should provide for (1) an extension of 30 days to be 
granted automatically, not as a matter of FTA discretion, and (2) 
longer extensions as a matter of FTA discretion for good cause shown.
    FTA Response: FTA disagrees that it should provide Section 5311 
reporters with additional time to comply with the reporting 
requirements. As set forth in 49 U.S.C. 5335, Congress established the 
NTD to meet the needs of all levels of government, and the needs of the 
public, for public transportation service planning. Public 
transportation service planners have consistently advised FTA that 
public transportation service planning requires current and complete 
data. Thus, late and incomplete reports have negative and severe 
impacts on the NTD's ability to fulfill its statutory purpose. FTA will 
grant reasonable waivers and extensions as provided in the rule, but 
FTA does not agree to institute an automatic waiver, which would 
constitute a de facto extension of all reporting deadlines by 30 days. 
As proposed, the rule gives reporting entities the opportunity to 
remedy deficiencies in their submissions by providing reporting 
entities with the opportunity to request a 30-day extension for 
submission, and the opportunity to request a waiver as set forth in 
Sec.  630.10. However, FTA revised the proposed rule to clarify that a 
reporting entity may submit its report on an extended deadline, as 
opposed to on the due date prescribed in the reference documents.

(d) Questionable Data Items

    FTA received two comments on the proposed Sec.  630.8 
``Questionable Data Items.'' These commenters expressed concern that 
the proposed Sec.  630.8 provided the possibility of an apportionment 
adjustment for the Section 5311 program based on deficiencies in data. 
These commenters highlighted that the relevant factors for the Section 
5311 grant program apportionments are (1) the non-urbanized area 
population, and (2) land area and suggested that FTA amend the proposed 
Sec.  630.6 to delete reference to modification of 5311 apportionments. 
One commenter asked FTA to clarify how it intends to use the NTD 
information for rural programs to gauge how the increased 
apportionments affect 5311 recipients when there is no previous data to 
analyze.
    FTA Response: FTA agrees that the proposed Sec.  630.8 
inadvertently provided the possibility of an apportionment adjustment 
for the Section 5311 program based on deficiencies in data. FTA notes 
that the relevant factors for the Section 5311 grant program 
apportionments are (1) the population in nonurbanized areas, and (2) 
the land area in nonurbanized areas. Accordingly, FTA revised the 
proposed rule to clarify that FTA does not use data from rural transit 
agencies in the apportionment of Section 5311 funds. FTA notes that 
there are some previous studies of rural transit service to rely upon 
for retrospective comparisons. Additionally, FTA notes that this data 
collection will provide a consistent time series for rural transit data 
forwarding the future.

(e) Notice of FTA Action

    FTA received two comments on the proposed Sec.  630.9 ``Notice of 
FTA action.'' One commenter noted that FTA should not make adjustments 
to any data submitted without speaking or writing directly to the 
agency submitting the data. Another commenter expressed concern that 
the proposed language, ``request the necessary information,'' is 
insufficient notice to a reporting entity. This commenter recommended 
that FTA amend the proposed Sec.  630.9 to specify that FTA's notice 
must ``explain'' to the agency what information the agency should 
provide to FTA.
    FTA Response: FTA reminds the first commenter that, as proposed in 
Sec.  630.9, FTA transmits a written request to the reporting entity to 
provide the necessary information to FTA before it takes final agency 
action. In addition, when FTA identifies questionable data items in NTD 
submissions, FTA contacts the reporter in writing, and provides the 
reporter with an opportunity to either explain or revise the 
questionable data item. FTA revised the proposed Sec.  630.7 to clarify 
this procedure. FTA believes that the revised language in Sec.  630.7 
and FTA's current practice, adequately addresses this commenters 
concern. FTA finds the suggested amendment unnecessary.

(f) Waiver of Reporting Requirements

    FTA received two comments on the proposed Sec.  630.10 ``Waiver of 
Reporting Requirements.'' These commenters suggested that FTA personnel 
should have considerable flexibility to grant waivers, extensions or 
leniency to transit agencies attempting to comply, particularly in the 
initial years of implementation. One commenter suggested that FTA amend 
Sec.  630.10 to add the following sentence: ``Waivers of one or more of 
the requirements of this part may be granted for good cause shown. Each 
waiver will be for a specified period of time.''
    FTA response: FTA agrees that it should have flexibility to grant 
waivers. However, FTA declines to adopt the amendment as proposed by 
the commenter as FTA believes the proposed waiver provision already 
provides FTA with considerable flexibility to grant waivers to transit 
agencies attempting to comply.

(g) Proposed Appendix A to Part 630

    FTA received two comments on the proposed Appendix A to Part 630. 
One commenter was unsure whether the auditor statement requirement set 
forth in Appendix A, Subsection F(2)(b) applied to all providers of 
transit using 5311 funds or only some. This commenter suggested that if 
FTA intends to impose such a requirement on only some Section 5311 
providers, FTA should clarify this intent. This commenter suggested 
that if FTA intended to impose this requirement on all Section 5311 
providers, FTA should indicate that FTA will require an audited 
statement on a case-by-case basis to avoid unnecessary costs and delays 
in filing. In particular, this commenter suggests that FTA reduce the 
burden of this requirement by requiring an audited statement for 5311 
providers that have 20 or more vehicles in service. Another commenter 
suggested that FTA incorporate the CEO certification into the annual 
Certifications and Assurances.
    FTA response: FTA agrees that the proposed Appendix A to Part 630 
caused a great deal of confusion, as it mixed the urbanized area NTD 
reporting requirements with the rural NTD reporting requirements, and 
duplicated information that is provided in the NTD Reporting Manuals. 
In order to ensure that the public has a single, consistent reference 
for NTD information, FTA is no longer proposing to include Appendix A 
as part of this rule. FTA believes that this change does not have a 
substantive effect on the regulated public since the same information 
is available in the NTD Reporting Manuals.

(h) Comments on the Proposed 2007 Rural NTD Module Reporting Manual

    FTA received three comments on the proposed 2007 Rural NTD Module 
Reporting Manual.
    Three commenters provided detailed comments on the proposed 2007 
Rural

[[Page 68760]]

NTD Module Reporting Manual. Although these comments are outside the 
scope of this rulemaking, FTA considered the comments in the process of 
finalizing the Rural NTD Reporting Manual.

(i) Additional Technical Revisions

    In addition to the revisions discussed above, FTA revised the 
proposed rule to update the proposed regulation and make certain 
provisions clearer. Such revisions include: (1) Replacing the term 
``section 5335 report'' with the term ``NTD submission'', (2) 
consistently using the definition of ``reference documents,'' (3) 
updating the titles of the NTD Manuals, (4) deleting reference to 
``optional report fields,'' (5) specifying that the apportionment in 
Sec.  630.11 is the Section 5307 apportionment, (6) combining Sec.  
630.4(a) with Sec.  630.4(b), (7) updating the statutory authority, and 
(8) changing the title to reflect the commonly-used term ``National 
Transit Database.'' Additionally, FTA eliminated Sec.  630.12, as it 
was redundant of existing requirements, and FTA removed language in 
Sec.  630.4 that specified that FTA would annually mail CDs to 
reporters, as updated copies of the reference documents are 
electronically available on FTA's NTD Web site. Reporters without 
Internet access may continue to request a CD, and reporters without 
computer access may request a printed copy. These changes have no 
substantive effect on the regulated public. Pursuant to 5 U.S.C. 
553(b)(3)(A), such changes are ``interpretative'' in nature and, FTA is 
not required to accept or consider comments on them.

Regulatory Process Matters

Executive Order 12866

    Executive Order 12866 requires agencies to regulate in the ``most 
cost-effective manner,'' to make a ``reasoned determination that the 
benefits of the intended regulation justify its costs,'' and to develop 
regulations that ``impose the least burden on society.'' This final 
rule amends the NTD reporting and recordkeeping requirements to require 
recipients of Nonurbanized Area Formula Grants to report annual transit 
data to the NTD following previously established guidelines for a 
voluntary State-based rural data module developed in consultation with 
State Departments of Transportation.
    FTA has determined that this action is not a significant regulatory 
action under section 3(f) of Executive Order 12866, and that the direct 
economic impact of this rulemaking would be minimal. Section 3033 of 
SAFETEA-LU amended 49 U.S.C. 5335 to require that recipients and 
beneficiaries of Nonurbanized Area Formula Grants report annual transit 
data to the NTD. This final rule clarifies existing regulatory 
requirements, and the changes adopted do not adversely affect, in any 
material way, any sector of the economy. In addition, the final rule 
does not interfere with any action taken or planned by another agency 
and does not materially alter the budgetary impact of any entitlements, 
grants, user fees, or loan programs.

Executive Order 13132

    Executive Order 13132 requires agencies to assure meaningful and 
timely input by State and local officials in the development of 
regulatory policies that may have a substantial, direct effect on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. FTA analyzed the final rule in accordance 
with the principles and criteria contained in Executive Order 13132, 
and FTA determined that this final rule does not have sufficient 
implications to warrant the preparation of a federalism assessment. FTA 
also determined that this final rule does not preempt any State law or 
State regulation or affect States' abilities to discharge traditional 
government functions.

Executive Order 13175

    Executive Order 13175 requires agencies to assure meaningful and 
timely input from Indian tribal government representatives in the 
development of rules that significantly or uniquely affect Indian 
communities and that impose ``substantial and direct compliance costs'' 
on such communities. This final rule requires Indian tribes that are 
recipients of Nonurbanized Formula Program Grants to report to the NTD. 
In addition, this rule requires Indian tribes that are subrecipients of 
Nonurbanized Formula Program Grants to report NTD data to the State. 
FTA analyzed this rule under Executive Order 13175, and determined that 
the final rule does not have substantial direct effects on one or more 
Indian tribes; does not impose substantial direct compliance costs on 
Indian tribal governments; and does not preempt tribal laws. Therefore, 
a tribal impact statement is not required.

Regulatory Flexibility Act

    Under the Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et 
seq.), FTA must consider whether a proposed rule would have a 
significant economic impact on a substantial number of small entities. 
``Small entities'' include small businesses, not-for-profit 
organizations that are independently owned and operated and are not 
dominant in their fields, and governmental jurisdictions with 
populations under 50,000. FTA analyzed this rule under Regulatory 
Flexibility Act of 1980 and certifies that this final rule does not 
have a significant economic impact on a substantial number of small 
entities.

Paperwork Reduction Act

    Under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501 
et seq.) (Pub. L. 104-13, 109 Stat. 163), FTA may not conduct or 
sponsor, and a person is not required to respond to or may not be 
penalized for failing to comply with, a collection of information 
unless it displays a currently valid Office of Management and Budget 
(OMB) control number.
    OMB approved an extension of FTA paperwork collection number 2132-
0008. The new expiration date of this collection number is August 31, 
2008. On June 27, 2007, FTA sought to add the collection of rural data 
under the NTD to this collection number. This rule only has effect to 
the extent that the data collection provided for under this rule has 
approval under the Paperwork Reduction Act.

Unfunded Mandates Assessment

    This rule does not impose unfunded mandates as defined by the 
Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4, 109 Stat. 48). 
This rule does not result in the expenditure by State, local, and 
tribal governments, in the aggregate, or by the private sector, of 
$128.1 million or more in any one year (2 U.S.C. 1532). Further, in 
compliance with the Unfunded Mandates Reform Act of 1995, FTA evaluated 
any regulatory action that might be proposed in subsequent stages of 
the proceeding to assess the effects on State, local, and tribal 
governments and the private sector.

National Environmental Policy Act

    The National Environmental Policy Act of 1969, (42 U.S.C. 4321-
4347), requires Federal agencies to consider the consequences of major 
Federal actions and prepare a detailed statement on actions 
significantly affecting the quality of the human environment. The rule 
does not have any effect on the quality of the environment under the 
National Environmental Policy Act of 1969.

[[Page 68761]]

Privacy Act

    Anyone is able to search the electronic form for all comments 
received into any of our dockets by the name of the individual 
submitting the comments (or signing the comment, if submitted on behalf 
of an association, business, or labor union). You may review DOT's 
complete Privacy Act Statement in the Federal Register published on 
April 11, 2000 (65 FR 19477), or you may visit http://dms.dot.gov.

List of Subjects in 49 CFR Part 630

    National Transit Database.

0
For the reasons discussed in the preamble, the Federal Transit 
Administration revises 49 CFR part 630 as follows:

PART 630--NATIONAL TRANSIT DATABASE

Subpart A--General
Sec.
630.1 Purpose.
630.2 Scope.
630.3 Definitions.
630.4 Requirements.
630.5 Failure to report data.
630.6 Late and incomplete reports.
630.7 Failure to respond to questions.
630.8 Questionable data items.
630.9 Notice of FTA action.
630.10 Waiver of reporting requirements.
630.11 Data adjustments.

    Authority: 49 U.S.C. 5307, 5311, 5335, and 49 CFR 1.51.


Sec.  630.1  Purpose.

    The purpose of this part is to prescribe requirements and 
procedures necessary for compliance with the National Transit Database 
Reporting System and Uniform System of Accounts, as mandated by 49 
U.S.C. 5335, and to set forth the procedures for addressing a reporting 
entity's failure to comply with these requirements.


Sec.  630.2  Scope.

    This part applies to all applicants for, and any person that 
receives benefits directly from, a grant under 49 U.S.C. 5307 or 5311.


Sec.  630.3  Definitions.

    (a) Except as otherwise provided, terms defined in 49 U.S.C. 5302 
et seq. apply to this part.
    (b) Except as otherwise provided, terms defined in the current 
editions of the National Transit Database Reporting Manuals and the NTD 
Uniform System of Accounts are used in this part as so defined.
    (c) For purposes of this part:
    Administrator means the Federal Transit Administrator or the 
Administrator's designee.
    Applicant means an applicant for assistance under 49 U.S.C. 5307 or 
5311.
    Assistance means Federal financial assistance for the planning, 
acquisition, construction, or operation of public transportation 
services.
    Beneficiary means any entity that receives benefits from assistance 
under 49 U.S.C. 5307 or 5311.
    Current edition of the National Transit Database Reporting Manuals 
and Uniform System of Accounts means the most recently issued editions 
of the reference documents.
    Days mean calendar days.
    Reference Document(s) means the current editions of the National 
Transit Database Reporting Manuals and Uniform System of Accounts. 
These documents are subject to periodic revision. Beneficiaries and 
applicants are responsible for using the current editions of the 
reference documents.
    Reporting entity means a transit agency, a State Department of 
Transportation that is a recipient of grants under 49 U.S.C. 5311, or a 
Federally-recognized Indian Tribe that is a direct recipient of grants 
under 49 U.S.C. 5311.
    State Department of Transportation means the Department of 
Transportation of a State of the United States, the District of 
Columbia, Puerto Rico, the Northern Mariana Islands, Guam, American 
Samoa, or the U.S. Virgin Islands.
    Transit agency means an entity providing public transportation as 
defined in 49 U.S.C. 5302.


Sec.  630.4  Requirements.

    (a) National Transit Database Reporting System. Each applicant for 
and beneficiary of Federal financial assistance under 49 U.S.C. 5307 or 
5311 must comply with the applicable requirements of 49 U.S.C. 5335, as 
set forth in the reference documents. State Departments of 
Transportation shall provide reports on behalf of their subrecipients 
of grants under 49 U.S.C. 5311 as specified in the reference documents. 
Transit agencies that are beneficiaries of grants under both 49 U.S.C. 
5307 and 5311 must file an individual report as an urbanized area 
transit agency. Federally-recognized Indian Tribes that are direct 
beneficiaries of grants under 49 U.S.C. 5311 must file an individual 
report. State Departments of Transportation should not report on behalf 
of transit agencies that have filed individual reports as urbanized 
area transit agencies nor on behalf of Indian Tribes that are required 
to file an individual report.
    (b) Copies. Copies of reference documents are available from the 
National Transit Database Web site located at http://www.ntdprogram.gov. These reference documents are subject to periodic 
revision. Revisions of reference documents will be posted on the 
National Transit Database Web site and a notice of any significant 
changes to the reporting requirements specified in these reference 
documents will be published in the Federal Register.


Sec.  630.5  Failure to report data.

    Failure to report data in accordance with this part will result in 
the noncompliant reporting entity being ineligible to receive any 
Section 5307 or 5311 grants directly or indirectly until such time as a 
report is filed in accordance with this part.


Sec.  630.6  Late and incomplete reports.

    (a) Late reports. Each reporting entity shall ensure that FTA 
receives its report by the due dates prescribed in the reference 
documents. A reporting entity may request a 30 day extension to submit 
its report. FTA will treat a failure to submit the required report by 
the due date or the extension date as failure to report data under 
Sec.  630.5.
    (b) Incomplete reports. FTA will treat an NTD submission that does 
not contain all of the required data; or does not contain the required 
certifications, where applicable; or that is not in substantial 
conformance with the definitions, procedures, and format requirements 
set out in the reference documents as a failure to report data under 
Sec.  630.5, unless the reporting entity has exhausted all 
possibilities for obtaining this information.


Sec.  630.7  Failure to respond to questions.

    FTA will review each NTD submission to verify the reasonableness of 
the data submitted. If any of the data do not appear reasonable, FTA 
will notify the reporting entity of this fact in writing, and request 
written justification from the reporting entity to either document the 
accuracy of the questioned data, or to revise the questioned data with 
a more accurate submission. Failure of a reporting entity to make a 
good-faith written response to this request will be treated as a 
failure to report data under Sec.  630.5.


Sec.  630.8  Questionable data items.

    FTA may enter a zero, or adjust any questionable data item(s), in 
any reporting entity's NTD submission that is used in computing the 
Section 5307 apportionment. These adjustments may be made if any data 
appears to be inaccurate, have not been collected and

[[Page 68762]]

reported in accordance with FTA reference documents, or if there is not 
adequate documentation and a reliable recordkeeping system.


Sec.  630.9  Notice of FTA action.

    Before taking final action under Sec. Sec.  630.5 or 630.8, FTA 
will transmit a written request to the reporting entity to provide the 
necessary information within a specified reasonable period of time. FTA 
will advise the reporting entity of its final decision.


Sec.  630.10  Waiver of reporting requirements.

    Waivers of one or more sections of the reporting requirements may 
be granted at the discretion of the Administrator on a written showing 
that the party seeking the waiver cannot furnish the required data 
without unreasonable expense and inconvenience. Each waiver will be for 
a specified period of time.


Sec.  630.11  Data adjustments.

    Errors in the data used in making the Section 5307 apportionment 
may be discovered after any particular year's apportionment is 
completed. If so, FTA shall make adjustments to correct these errors in 
a subsequent year's apportionment to the extent feasible.

    Issued on: November 29, 2007 at Washington, DC.
James S. Simpson,
Administrator.
[FR Doc. E7-23565 Filed 12-5-07; 8:45 am]
BILLING CODE 4910-57-P