[Federal Register Volume 78, Number 25 (Wednesday, February 6, 2013)]
[Notices]
[Pages 8691-8698]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-02729]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration


Notice of Availability of Emergency Relief Funds in Response to 
Hurricane Sandy

AGENCY: Federal Transit Administration (FTA), DOT.

ACTION: Notice of availability of emergency relief funds.

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SUMMARY: The Federal Transit Administration (FTA) announces the 
availability of funds under the Public Transportation Emergency Relief 
Program (Emergency Relief Program) for States, local governmental 
authorities, Indian tribes and other FTA recipients impacted by 
Hurricane Sandy, which

[[Page 8692]]

affected mid-Atlantic and northeastern states in October 2012, and 
particularly devastated transit operations in New Jersey and New York. 
FTA will distribute these funds in a manner consistent with the 
eligibility requirements of this program on a non-competitive basis, 
subject to the priorities set forth below.
    The Disaster Relief Appropriations Act of 2013 (Pub. L. 113-2) was 
enacted on January 29, 2013, and provides $10.9 billion for FTA's 
Emergency Relief Program for recovery, relief and resiliency efforts in 
areas affected by Hurricane Sandy. The law provides that not more than 
$2 billion shall be made available no later than March 30, 2013. The 
remainder of the appropriated funds shall be made available only after 
FTA enters into a Memorandum of Agreement with the Federal Emergency 
Management Agency (FEMA) as required by section 20017(b) of the Moving 
Ahead for Progress in the 21st Century Act (MAP-21, Pub. L. 112-141), 
and FTA issues interim regulations for the Emergency Relief Program, 
both of which are underway.
    MAP-21 authorized the Emergency Relief Program at 49 U.S.C. 5324. 
With the authorization of this program, Congress provided FTA with 
primary responsibility for reimbursing emergency response and recovery 
costs after an emergency or major disaster that affects public 
transportation systems. The Emergency Relief Program allows FTA to make 
grants for eligible public transportation capital and operating costs 
in the event of a natural disaster, such as a hurricane, that affects a 
wide area. Beginning in late October, President Obama issued major 
disaster declarations for the following States: Connecticut, Delaware, 
Maryland, Massachusetts, New Hampshire, New Jersey, New York, Ohio, 
Pennsylvania, Rhode Island, Virginia, and West Virginia, as well as the 
District of Columbia. Numerous counties in these States have been 
designated as eligible for FEMA assistance under the major disaster 
declarations. Public transportation agencies in the affected areas as 
defined by these Presidential declarations, including any declarations 
related to Hurricane Sandy made after the date of this notice, are 
eligible for Emergency Relief funding.
    This notice announces grant funding for the $2 billion made 
available immediately by the Disaster Relief Appropriations Act to 
States, local governmental authorities, Indian tribes, and other FTA 
grant recipients that provide public transportation service in the 
above impacted States for reimbursement of capital costs to repair, 
reconstruct, or replace equipment and facilities of a public 
transportation system that has suffered serious damage as a result of 
Hurricane Sandy. In addition, costs eligible for reimbursement include 
emergency operating costs incurred for evacuations, rescue operations, 
moving rolling stock to higher ground in order to protect it from storm 
surges, temporary public transportation service, and reestablishing, 
expanding or relocating public transportation service before, during, 
or after Hurricane Sandy.
    FTA has identified three categories of projects for funding for 
this notice: Category One projects will reimburse eligible expenses 
affected FTA recipients incurred and disbursed on or before January 29, 
2013, in preparation for or response to Hurricane Sandy. Category Two 
projects will fund existing contractual commitments and contracts for 
which an affected recipient issued requests for proposals or 
invitations to bid for hurricane response and recovery projects on or 
before January 29, 2013. Category Three projects will fund ongoing 
force account work for hurricane response and recovery for which the 
recipient can submit documentation showing the expense was in the 
recipient's budget on or before January 29, 2013.
    The application process will occur in two stages. First, applicants 
will submit proposals requesting reimbursement of eligible costs for 
the categories of projects described in this notice. Since funds must 
be made available no later than March 30, 2013, applications for 
funding must be submitted between the date of publication of this 
notice and March 8, 2013 through GRANTS.GOV. FTA encourages affected 
recipients to submit their requests for reimbursement expeditiously, as 
FTA intends to allocate funds on a rolling basis. Second, upon 
allocation of funds, FTA will notify recipients that they can enter a 
grant application in FTA's Transportation Electronic Award Management 
system (TEAM). Subsequent to receipt of applications for the above 
project categories, and prior to March 30, 2013, FTA will issue a 
notice in the Federal Register showing the allocation of the initial $2 
billion.
    Prior to the Disaster Relief Appropriations Act, affected 
recipients may have received funding from FEMA for operating or capital 
costs incurred in response to the hurricane. Section 5324(d) of title 
49 United States Code provides that a grant awarded under section 5324 
may be made only for expenses that are not reimbursed under the Robert 
T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act, 
42 U.S.C. 5121-5207). Accordingly, FTA will not fund project expenses 
that FEMA has already funded. Additionally, prior to the Disaster 
Relief Appropriations Act, affected recipients may have received 
insurance proceeds to repair or replace damaged capital items. FTA will 
not fund project expenses for which a recipient has already received 
insurance proceeds. Affected recipients may apply for Emergency Relief 
funds in advance of expected insurance proceeds; when the affected 
recipient receives those insurance proceeds, the funds must be applied 
to an Emergency Relief grant to offset the Federal share.
    This notice includes a description of eligible projects, the 
criteria FTA will use to identify projects for funding, and a 
description of how to apply for funding. This announcement is available 
on the FTA Web site at: http://www.fta.dot.gov. A synopsis of the 
funding opportunity will be posted in the FIND module of the 
government-wide electronic grants Web site at http://www.GRANTS.GOV. 
FTA intends to announce funding allocations on a rolling basis and will 
notify applicants directly of allocations made under the program. In 
addition, FTA will announce final allocations on the FTA Web site.
    Pursuant to the requirement in the Disaster Relief Appropriations 
Act that FTA publish interim regulations before additional funds beyond 
the initial $2 billion will be available, FTA is in the process of 
drafting interim regulations for the Emergency Relief Program. If FTA 
subsequently establishes criteria or conditions for grants made under 
the Emergency Relief Program that are different from those in this 
notice of availability of emergency relief funds, the different 
criteria or conditions will not be applied retroactively to 
applications submitted or grants awarded consistent with this notice, 
unless the change benefits the applicant.

DATES: Since funds must be made available no later than March 30, 2013, 
complete proposals requesting reimbursement of eligible costs must be 
submitted between the date of publication of this notice and March 8, 
2013 by 11:59 p.m. EST. All proposals must be submitted electronically 
through the GRANTS.GOV ``APPLY'' function. Any prospective applicant 
intending to submit a proposal should initiate the process of 
registering on the GRANTS.GOV site immediately to ensure completion of 
registration before the submission deadline. Instructions for 
submitting a proposal can be found on FTA's Web site at http://

[[Page 8693]]

www.fta.dot.gov and in the ``FIND'' module of GRANTS.GOV.

FOR FURTHER INFORMATION CONTACT: Contact the appropriate FTA Regional 
Office found at http://www.fta.dot.gov for application-specific 
information and other assistance needed in preparing a complete 
proposal or TEAM grant application. For program-specific questions 
about applying for the funds as outlined in this notice, please contact 
Adam Schildge, Office of Program Management, 1200 New Jersey Ave, SE., 
Washington, DC 20590, phone: (202) 366-0778, or email, 
[email protected]. For legal questions, Bonnie Graves, Office of 
Chief Counsel, same address, phone: (202) 366-4011, or email, 
[email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Overview of FTA Public Transportation Emergency Relief Program
    A. Authority
    B. Policy Priorities
    C. Definitions
II. Emergency Relief Program Information
    A. Description and Purpose
    B. Pre-award Authority
    C. Eligibility Information
    D. Grant Requirements
    E. Application Content and Allocation of Funds
III. Application and Submission Information
IV. Award Administration

I. Overview of FTA Public Transportation Emergency Relief Program as It 
Applies to Hurricane Sandy Relief

A. Authority

    Section 5324(a)(2) of title 49, United States Code, defines an 
``emergency'' as follows:
    The term `emergency' means a natural disaster affecting a wide area 
(such as a flood, hurricane, tidal wave, earthquake, severe storm, or 
landslide) or a catastrophic failure from any external cause, as a 
result of which--
    (A) The Governor of a State has declared an emergency and the 
Secretary has concurred; or
    (B) The President has declared a major disaster under section 401 
of the Robert T. Stafford Disaster Relief and Emergency Assistance Act 
(42 U.S.C. 5170).
    Section 5324(b) of title 49, United States Code, authorizes the 
Secretary to make awards for FTA's Emergency Relief Program as follows:
    General authority.--The Secretary may make grants and enter into 
contracts and other agreements (including agreements with departments, 
agencies, and instrumentalities of the Government) for--
    (1) Capital projects to protect, repair, reconstruct, or replace 
equipment and facilities of a public transportation system operating in 
the United States or on an Indian reservation that the Secretary 
determines is in danger of suffering serious damage, or has suffered 
serious damage, as a result of an emergency; and
    (2) Eligible operating costs of public transportation equipment and 
facilities in an area directly affected by an emergency during--
    (A) The 1-year period beginning on the date of a declaration 
described in subsection (a)(2); or
    (B) if the Secretary determines there is a compelling need, the 2-
year period beginning on the date of a declaration described in 
subsection (a)(2).
    In addition, section 5324(d) provides that a grant awarded under 
section 5324 shall be subject to the terms and conditions the Secretary 
determines are necessary; and made only for expenses that are not 
reimbursed under the Stafford Act. Accordingly, FTA will not fund 
project expenses that FEMA has already funded.

B. Policy Priorities for Hurricane Sandy Relief

    The Emergency Relief Program is intended to assist recipients and 
subrecipients in restoring public transportation service and in 
repairing and reconstructing public transportation assets to a state of 
good repair as expeditiously as possible following an emergency or 
major disaster. With regard to the $2 billion available immediately 
under the Disaster Relief Appropriations Act of 2013, FTA has 
identified three categories of projects: Category One projects will 
reimburse eligible expenses already incurred and disbursed by affected 
recipients on or before January 29, 2013, in preparation for or 
response to Hurricane Sandy. Category Two projects will fund existing 
contractual commitments and contracts for which an affected recipient 
issued requests for proposals (RFP) or invitations to bid (ITB) for 
hurricane response and recovery projects on or before January 29, 2013, 
as evidenced by a signature/date page for each contract, RFP and ITB. 
Category Three projects will fund ongoing force account work for 
hurricane response and recovery for which the recipient can submit 
documentation, such as Board approval or budget documents, showing the 
expense was in the recipient's budget on or before January 29, 2013.
    Section 5324(b) provides that funds are available for capital 
projects to ``protect * * * equipment and facilities of a public 
transportation system * * * the Secretary determines is in danger of 
suffering serious damage.'' Steps taken to protect equipment and 
facilities in preparation or response to Hurricane Sandy are eligible 
expenses under this notice. However, FTA has prioritized recovery and 
response activities for the first $2 billion of the funds available in 
the Disaster Relief Appropriations Act. Therefore, projects related to 
reducing the risk of damage from future disasters in areas impacted by 
Hurricane Sandy are not eligible for funding under this notice, but 
will be eligible in future notices.
    In the event the total costs of the three categories of projects 
identified in this notice do not reach $2 billion, FTA reserves the 
right to fund additional recovery and response projects identified by 
affected recipients, without issuing a supplemental notice of 
availability of emergency relief funds.

C. Definitions for Use in This Notice

    The following terms are used in this notice:
    Applicant. An entity that operates or allocates funds to operate 
public transportation service and applies for a grant under 49 U.S.C. 
5324.
    Affected recipient. An FTA recipient that operates public 
transportation service in an area impacted by Hurricane Sandy.
    Emergency. A natural disaster affecting a wide area or a 
catastrophic failure from any external cause, as a result of which: (a) 
The Governor of a State has declared an emergency and the Secretary of 
Transportation has concurred; or (b) the President has declared a major 
disaster under the Stafford Act. 49 U.S.C. 5324.
    Emergency operations. The net project cost of temporary service 
that is outside the scope of an affected recipient's normal operations, 
including but not limited to: Evacuations; rescue operations; moving 
rolling stock to higher ground in order to protect it from storm 
surges; additional bus or ferry service to replace inoperable rail 
service or to detour around damaged areas; returning evacuees to their 
homes after Hurricane Sandy; and the net project costs related to 
reestablishing, expanding, or relocating public transportation service 
before, during, or after Hurricane Sandy.
    Emergency repairs. Those repairs undertaken immediately before, 
during, or following Hurricane Sandy for the purpose of:
    (1) Minimizing the extent of the damage,
    (2) Protecting remaining facilities, or

[[Page 8694]]

    (3) Restoring service.
    Heavy maintenance. Work usually done by a recipient or subrecipient 
in repairing damage normally expected from seasonal and occasionally 
unusual natural conditions or occurrences, such as routine snow 
removal, or debris removal from seasonal thunderstorms. This may 
include work required as a direct result of a disaster, but which can 
reasonably be accommodated by a recipient or subrecipient's 
maintenance, emergency or contingency program.
    Major Disaster. Any natural catastrophe (including any hurricane, 
tornado, storm, high water, wind-driven water, tidal wave, tsunami, 
earthquake, volcanic eruption, landslide, mudslide, snowstorm, or 
drought), or, regardless of cause, any fire, flood, or explosion, in 
any part of the United States, which in the determination of the 
President causes damage of sufficient severity and magnitude to warrant 
major disaster assistance under the Stafford Act to supplement the 
efforts and available resources of States, local governments, and 
disaster relief organizations in alleviating the damage, loss, 
hardship, or suffering caused thereby. 42 U.S.C. 5122.
    Net project cost. The part of a project that reasonably cannot be 
financed from revenues. 49 U.S.C. 5302.
    Permanent repairs. Those repairs undertaken following the 
occurrence of Hurricane Sandy for the purpose of repairing, replacing 
or reconstructing seriously damaged public transportation system 
elements, including rolling stock, equipment, facilities and 
infrastructure, as necessary to restore the elements to a state of good 
repair.
    Recipient. An entity that operates or allocates funds to operate 
public transportation service and receives federal transit funds 
directly from FTA.
    Serious damage. Heavy, major or unusual damage to a public 
transportation facility that severely impairs the safety or usefulness 
of the facility. Serious damage must be beyond the scope of heavy 
maintenance.
    Subrecipient. An entity that operates public transportation service 
and receives FTA funding through a recipient.

II. Emergency Relief Program Information for Hurricane Sandy Relief

A. Description and Purpose

    For purposes of this notice, eligible activities include eligible 
emergency operating costs and capital projects to repair, reconstruct, 
or replace equipment and facilities of a public transportation system 
that the Secretary determines has suffered serious damage as a result 
of Hurricane Sandy, including projects undertaken prior to the storm to 
minimize or prevent serious damage. Section 5324 funds are in addition 
to a recipient's formula funds and the receipt of section 5324 funds 
does not preclude the receipt of funds from FEMA.

B. Pre-award Authority

    FTA grants pre-award authority to affected recipients for expenses 
incurred in preparation for Hurricane Sandy (e.g., evacuation, 
relocation, protecting and safeguarding assets) and for immediate 
disaster-response and recovery expenses incurred as a result of 
Hurricane Sandy. Pre-award authority allows affected recipients to 
incur certain project costs before grant approval and retain the 
eligibility of those costs for subsequent reimbursement after grant 
approval.
    The conditions under which pre-award authority may be utilized are 
specified below:
    (i) Pre-award authority is not a legal or implied commitment that 
the subject project will be approved for FTA assistance or that FTA 
will obligate Federal funds. Furthermore, it is not a legal or implied 
commitment that all items undertaken by the applicant will be eligible 
for inclusion in the project.
    (ii) All FTA statutory, procedural, and contractual requirements 
must be met, except as provided for the three project categories in 
this notice. See section II.D of this notice.
    (iii) The recipient must take no action that prejudices the legal 
and administrative findings that the Federal Transit Administrator must 
make in order to approve a project.
    (iv) The Federal amount of any future FTA assistance awarded to the 
recipient for the project will be determined on the basis of the 
overall scope of activities and the prevailing statutory provisions 
with respect to the Federal/non-Federal match ratio at the time the 
funds are obligated.
    (v) When a grant for the project is subsequently awarded, the 
Financial Status Report in TEAM-Web must indicate the use of pre-award 
authority.
    In addition to the pre-award authority described above, affected 
recipients are permitted to submit grant amendments for existing 
section 5307 and 5311 grants in order to utilize available unexpended 
balances for eligible disaster-related project costs. Use of formula 
funds for these purposes is at the discretion of the affected 
recipient. Section 5324 funds may not be used to replenish formula 
funds spent in response to an emergency.

C. Eligibility Information

1. Eligible Applicants
    FTA recipients affected by Hurricane Sandy, including States, local 
governmental authorities, and Indian tribes that provide public 
transportation service may apply for section 5324 Emergency Relief 
funds on behalf of themselves and their subrecipients. As of the date 
of this notice, the President has declared a major disaster for the 
following States: Connecticut, Delaware, Maryland, Massachusetts, New 
Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, 
Virginia, and West Virginia, as well as the District of Columbia. The 
affected transit system must be located in or serving an area that was 
impacted by Hurricane Sandy, as defined by the presidential declaration 
of major disaster or declaration of emergency for that State. See 
http://www.fema.gov/disasters/. In addition, public transportation 
agencies in areas that receive a major disaster declaration related to 
Hurricane Sandy after the date of this notice are eligible for 
Emergency Relief funding.
    Entities that provide public transportation service and are not 
current recipients of FTA funding may be eligible to receive Emergency 
Relief funding as a subrecipient of an FTA recipient. These entities 
should contact the appropriate FTA Regional Office, the contact 
information of which is available at www.fta.dot.gov, to find a direct 
FTA recipient in their area to apply on their behalf.
2. Eligible Costs

New York, New Jersey and Connecticut Operating Assistance

    On October 31, 2012, the President amended the cost-sharing 
arrangements for the States of New York, New Jersey and Connecticut 
regarding Federal funds provided under the authority of the Stafford 
Act as follows:

    I authorize a one hundred percent (100%) Federal cost share for 
ten days for emergency power restoration assistance and emergency 
public transportation assistance, including direct Federal 
assistance, for those areas within counties designated for Public 
Assistance [in New York, New Jersey and Connecticut]. I authorize 
this cost-share adjustment beginning October 30, 2012 through 
November 9, 2012.

    On November 9, 2012, the President authorized continuation ``until 
11:59 p.m. on Wednesday, November 14, 2012, of the 100 percent Federal 
cost share for emergency power restoration assistance and emergency 
public transportation assistance (including emergency protective 
measures to

[[Page 8695]]

secure public transportation infrastructure), including direct Federal 
assistance, for those areas within counties designated for Public 
Assistance [in New York, New Jersey and Connecticut].'' \1\
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    \1\ See the following Federal Register notices for details of 
the authorizations:
    New York adjustment: Amendment No. 1 to Notice of a Major 
Disaster Declaration, 77 FR 66862 (Nov. 7, 2012), available at 
http://www.gpo.gov/fdsys/pkg/FR-2012-11-07/pdf/2012_27269.pdf.
    New York extension: Amendment No. 4 to Notice of a Major 
Disaster Declaration, 77 FR 73489 (Dec. 10, 2012), available at 
http://www.gpo.gov/fdsys/pkg/FR-2012-12-10/pdf/2012-29652.pdf.
    New Jersey adjustment: Amendment No. 1 to Notice of a Major 
Disaster Declaration, 77 FR 66861 (Nov. 7, 2012), available at 
http://www.gpo.gov/fdsys/pkg/FR-2012-11-07/pdf/2012_27273.pdf.
    New Jersey extension: Amendment No. 5 to Notice of a Major 
Disaster Declaration, 77 FR 73488 (Dec. 10, 2012), available at 
http://www.gpo.gov/fdsys/pkg/FR-2012-12-10/pdf/2012-29654.pdf.
    Connecticut adjustment: Amendment No. 1 to Notice of a Major 
Disaster Declaration, 77 FR 66860 (Nov. 7, 2012), available at 
http://www.gpo.gov/fdsys/pkg/FR-2012-11-07/pdf/2012-27275.pdf.
    Connecticut extension: Amendment No. 2 to Notice of a Major 
Disaster Declaration, 77 FR 73487 (Dec. 10, 2012), available at 
http://www.gpo.gov/fdsys/pkg/FR-2012-12-10/pdf/2012-29656.pdf.
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    Section 5324 provides that the Federal share for operating expenses 
and capital projects for the Emergency Relief Program is 80 percent; 
however, the Secretary may waive, in whole or in part, the non-Federal 
share. Therefore, consistent with the President's authorization and 
what FEMA would fund under section 419 of the Stafford Act (Emergency 
Public Transportation), FTA will fund the net project costs of 
emergency operations in specified counties in New York, New Jersey and 
Connecticut from October 30 to November 14, 2012, at a 100 percent 
Federal share, that FEMA has not already funded. All of New Jersey's 
counties qualify for the 100 percent Federal share under this 
authorization. In New York, the following counties may apply for 
emergency operating assistance at a 100 percent Federal share: Bronx, 
Kings, Orange, Nassau, New York, Putnam, Queens, Richmond, Rockland, 
Suffolk, Sullivan, Ulster, and Westchester. See http://www.fema.gov/disaster/4085/affected-counties. In Connecticut, the following counties 
may apply for emergency operating assistance at a 100 percent Federal 
share: Fairfield, Litchfield, Middlesex, New Haven, New London, 
Tolland, Windham and the Mashantucket Pequot and Mohegan Tribal Nations 
in New London County. See http://www.fema.gov/disaster/4087/affected-counties. The President's authorizations include the costs of emergency 
public transportation service provided in affected counties in New 
York, New Jersey and Connecticut for that 16-day period. Affected 
recipients in New York, New Jersey and Connecticut may apply for the 
full net project cost of temporary service that is outside the scope of 
the affected recipient's normal operations provided between October 30 
and November 14, 2012, including but not limited to: Evacuations; 
rescue operations; moving rolling stock to higher ground in order to 
protect it from storm surges; additional bus or ferry service to 
replace inoperable rail service or to detour around damaged areas; 
returning evacuees to their homes after the hurricane; and the net 
project costs related to reestablishing, expanding, or relocating 
public transportation service before, during, or after the hurricane. 
Lost revenue as a result of Hurricane Sandy is not an eligible cost.
    In addition, the costs incurred for any emergency protective 
measures to secure public transportation infrastructure taken between 
October 30 and November 14, 2012, are eligible for 100 percent Federal 
share if not already funded by FEMA.

Other Operating Assistance

    Section 5324 provides that the Federal share for operating expenses 
and capital projects for the Emergency Relief Program is 80 percent; 
however, the Secretary may waive, in whole or in part, the non-Federal 
share. The Administration's December 7, 2012, request to Congress for 
emergency relief funds acknowledged that the ``level of damage caused 
by Hurricane Sandy is expected to meet the regulatory threshold 
necessary to increase the Federal share of most disaster programs to 90 
percent.'' \2\ Therefore, the Secretary has determined that the Federal 
share for operating and capital projects undertaken in response to 
Hurricane Sandy will be 90 percent, thus waiving part of the non-
Federal share. The following operating costs are eligible at a 90 
percent Federal share: The net project cost of temporary service that 
is outside the scope of an affected recipient's normal operations, 
including but not limited to: evacuations; rescue operations; moving 
rolling stock to higher ground in order to protect it from storm 
surges; additional bus or ferry service to replace inoperable rail 
service or to detour around damaged areas; returning evacuees to their 
homes after the hurricane; and the net project costs related to 
reestablishing, expanding, or relocating public transportation service 
before, during, or after the hurricane. The non-Federal share of the 
net project cost may be provided from an undistributed cash surplus, a 
replacement or depreciation cash fund or reserve, or new capital.
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    \2\ http://www.whitehouse.gov/sites/default/files/supplemental__december_7_2012_hurricane_sandy_funding_needs.pdf.pdf.
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    FTA notes that some States entered into agreements or mission 
assignments with FEMA to fund operating costs immediately after the 
storm. If those States are seeking operating funds from FTA and have 
already received funding from FEMA, they must submit a copy of the 
agreement with FEMA, including the scope of the agreement, the amount 
funded, and the dates that FEMA agreed to fund operating costs, as well 
as the scope and dates of service for which the applicant is seeking 
FTA funding, in order to ensure that an application submitted to FTA 
for project costs has not already been funded by FEMA. FTA will not 
fund project expenses for which a recipient has already received 
insurance proceeds. Loss of operating revenue is not an eligible 
expense. However, the cost of providing fare-free emergency public 
transportation service in the days immediately following the storm is 
eligible if FEMA has not already funded the service.

Capital Projects

    As stated above, FTA will fund all projects eligible for the 
Emergency Relief Program in response to Hurricane Sandy at a 90 percent 
Federal share. The non-Federal share of the net project cost may be 
provided from an undistributed cash surplus, a replacement or 
depreciation cash fund or reserve, or new capital. Eligible capital 
projects include those projects to repair, reconstruct, or replace 
equipment and facilities of a public transportation system that has 
suffered serious damage as a result of Hurricane Sandy.
    It is not the intent of the Emergency Relief Program to provide 
substitute funding for regular capital maintenance that is not a result 
of an emergency or major disaster. Therefore, heavy maintenance and 
projects for which funds were obligated in a grant prior to Hurricane 
Sandy are not eligible expenses under the Emergency Relief Program. 
Further, projects funded by the Federal Highway Administration's 
Emergency Relief program are not eligible for FTA funding.
    Both emergency repairs and permanent repairs are eligible for 
Emergency Relief funding. When repairing or replacing facilities and 
infrastructure damaged or destroyed by Hurricane Sandy, the following 
activities are eligible for Emergency Relief funding: (1) Replacement 
of older features with new ones; (2)

[[Page 8696]]

incorporation of current design standards; (3) replacement of a 
destroyed facility at a different location when replacing at the 
existing location is not practical or feasible; and (4) additional 
required features resulting from the NEPA process.
    Grants awarded with section 5324 funds, as well as section 5307 and 
5311 grants made for emergency relief purposes, may be made only for 
expenses that are not reimbursed by another Federal agency or by 
insurance proceeds. If an applicant has already received funding from 
another Federal agency, the applicant may not apply for FTA emergency 
relief funding for the same project expenses. However, partial 
compensation for a loss by other sources will not preclude FTA 
participation for the part of the loss not compensated. For example, 
insurance proceeds may only cover the remaining Federal interest of a 
vehicle that was destroyed before the end of its useful life, and not 
the cost to replace that vehicle. Consistent with FTA Circular 5010.1D, 
FTA may participate in the replacement cost beyond the insurance 
proceeds. Rolling stock and other equipment used in public 
transportation that was damaged or destroyed before the end of its 
useful life may be replaced with new rolling stock and equipment. FTA 
advises applicants to review FTA Circular 5010.1D, chapter IV, (http://www.fta.dot.gov/legislation_law/12349_8640.html) for additional 
information on how to determine the remaining Federal interest and how 
to apply insurance proceeds to the cost of replacing the damaged or 
destroyed property.
    Any compensation for damages or insurance proceeds recovered by the 
recipient or subrecipient for repair or replacement of the public 
transit equipment or facility must be used upon receipt to reduce 
emergency relief fund participation in the project. In other words, 
affected recipients may apply for Emergency Relief funds in advance of 
expected insurance proceeds; when the affected recipient receives those 
insurance proceeds, the funds must be applied to an Emergency Relief 
grant to offset the Federal share.
    As with operating expenses, if a recipient has already received 
FEMA funding for repairs and replacement of capital assets, and also 
intends to apply for FTA funding, the recipient must submit a copy of 
any agreement with or funding request from FEMA, including the scope of 
the agreement or funding request (e.g., a list of projects), the amount 
funded, and the disposition of the request.
3. Ineligible Activities
    The following expenses are not eligible under the emergency relief 
program:
    (1) Heavy maintenance;
    (2) Project costs for which the recipient has received funding from 
another Federal agency;
    (3) Project costs for which the recipient has received funding 
through payments from insurance policies;
    (4) Projects that change the function of the original 
infrastructure;
    (5) Projects for which funds were obligated in a grant prior to 
Hurricane Sandy;
    (6) Reimbursements for lost revenue due to service disruptions 
caused as a direct result of the hurricane;
    (7) Project costs associated with the replacement or replenishment 
of damaged or lost material not incorporated into a public 
transportation system such as stockpiled materials or items awaiting 
installation; and
    (8) Other project costs FTA determines are not appropriate for the 
Emergency Relief Program.
    Projects included under item (4) above that change the function of 
the original infrastructure would be projects, for example, that change 
a bus rapid transit system to light rail, or that replace bus shelters 
with intermodal facilities, or that significantly upgrade a maintenance 
facility. Replacing damaged diesel buses with compressed natural gas 
buses is eligible under the Emergency Relief Program, but any costs 
associated with new alternative fueling stations or maintenance 
facilities is not eligible for Emergency Relief funds. However, those 
associated costs are eligible under FTA's formula programs, and 
recipients may use funds apportioned under sections 5307 or 5311 
formula funds for those costs.

D. Grant Requirements

    Section 904(c) of the Disaster Relief Appropriations Act provides 
that grant funds awarded under the Act must be expended within 24 
months following FTA's obligation of funds in a grant. Any unexpended 
balances remaining in a grant must be returned to FTA 24 months after 
obligation of grant funds. FTA will include this term in all grants 
made with funds appropriated by the Disaster Relief Appropriations Act.
    Section 5324(d)(1) provides that grants awarded under the Emergency 
Relief Program to address an emergency shall be subject to the terms 
and conditions the Secretary determines are necessary. Affected 
recipients responded quickly to Hurricane Sandy in an effort to restore 
public transportation service as quickly as possible. For the three 
categories of projects described in this notice, FTA has determined the 
following:
    1. Planning requirements. Operating and capital projects do not 
need to be included in a Statewide Transportation Improvement Program 
(STIP) or a metropolitan Transportation Improvement Program (TIP) in 
order to be reimbursed by FTA.
    2. Buy America. Because of extensive damage to public 
transportation systems impacted by Hurricane Sandy and the exigent need 
to rebuild those systems in order to restore service, FTA finds that 
applying its Buy America requirements at 49 U.S.C. 5323(j) would have 
resulted in undue delay in service restoration. Therefore, FTA will 
reimburse those purchases that are included in projects funded under 
Categories One, Two, and Three as described in this notice, even if the 
recipient did not follow FTA Buy America requirements.
    3. Procurement and contracting guidelines. Recipients may have 
extended existing contracts and taken other actions necessary to 
complete response and recovery projects expeditiously. Therefore, FTA 
will reimburse existing contractual commitments and contracts for which 
an affected recipient issued requests for proposals or invitations to 
bid for hurricane response and recovery projects on or before January 
29, 2013, even if the recipient did not follow FTA procurement and 
contracting requirements. Amendments to existing contracts and bid 
requests after January 29, 2013, are subject to all FTA requirements, 
including procurement and contracting requirements.
    The above conditions apply only to this notice and have no 
applicability to future notices. Further, these conditions should not 
be construed as indicative of the conditions FTA may grant in future 
emergencies or disasters. FTA's Public Transportation Emergency Relief 
Program was recently authorized by Congress and FTA had not yet had the 
opportunity to publish guidance or a rule for implementing the program 
when Hurricane Sandy impacted the eastern seaboard. Setting the above 
conditions for this disaster is an acknowledgement that affected 
recipients had to act quickly in order to restore service and may not 
have met all FTA requirements when making those efforts. FTA expects 
that all Federal requirements as outlined in FTA's Master Agreement 
will apply to all grants made in response to Hurricane Sandy that do 
not meet the description

[[Page 8697]]

of the three categories of projects described in this notice.
    In the event an affected recipient or subrecipient finds that FTA 
requirements other than those listed above limit the recipient's or 
subrecipient's ability to respond to Hurricane Sandy, the affected 
recipient or subrecipient may request that applicable administrative 
requirements be waived in accordance with the emergency relief docket 
process as outlined below.
    Under 49 CFR part 601, subpart D, FTA establishes an emergency 
relief docket each calendar year. The purpose of the docket is to allow 
recipients affected by national or regional emergencies to request 
relief from FTA administrative requirements set forth in FTA policy 
statements, circulars, guidance documents, and regulations. As stated 
above, section 5324(d) of title 49, United States Code provides that a 
grant awarded under section 5324 that is made to address an emergency 
shall be subject to the terms and conditions the Secretary determines 
are necessary. Effective with calendar year 2013, recipients affected 
by an emergency or major disaster may request FTA Administrator 
determination that certain terms and conditions not apply when the 
requirement(s) will limit a recipient's or subrecipient's ability to 
respond to an emergency or major disaster. Recipients must follow the 
procedures as set forth in 49 CFR part 601, subpart D when requesting 
such a determination or seeking a waiver of administrative 
requirements. The docket is available on www.regulations.gov, and the 
docket number for calendar year 2013 is FTA-2013-0001.

E. Application Content and Allocation of Program Funds Under This 
Notice

1. Application Content
    FTA will evaluate applications based on information requested 
below. FTA encourages applicants to demonstrate the responsiveness of 
their application with the most relevant information the applicant can 
provide, regardless of whether FTA has specifically requested such 
information in this notice. FTA will assess the extent to which the 
application addresses each of the three criteria below.
    There are three project categories for this notice of availability 
of emergency relief funds: (1) Reimbursement for expenses already 
incurred and disbursed by FTA recipients on or before January 29, 2013; 
(2) existing contractual commitments and contracts for which an 
affected recipient issued requests for proposals (RFP) or invitations 
to bid (ITB) for hurricane response and recovery projects on or before 
January 29, 2013, as evidenced by a signature/date page for each 
contract, RFP and ITB; and (3) ongoing force account work for hurricane 
response and recovery for which the recipient budgeted the expense, as 
evidenced by Board approval or budget documents, on or before January 
29, 2013.
    Documentation to Support Emergency Operating Requests. Applications 
to GRANTS.GOV must include the purpose of the emergency public 
transportation service provided, which may include: evacuations; rescue 
operations; moving rolling stock to higher ground in order to protect 
it from storm surges; additional bus or ferry service to replace 
inoperable rail service or to detour around damaged areas; returning 
evacuees to their homes after the hurricane; and the net project costs 
related to reestablishing, expanding, or relocating public 
transportation service before, during, or after the hurricane. The 
application must include the dates, hours, number of buses, ferries, 
and/or trains, and information relating to fares charged. Only net 
project costs may be reimbursed.
    Documentation to Support Capital Requests. Applications to 
GRANTS.GOV must include copies of detailed damage assessments to 
support the request for assistance for capital projects. FTA and FEMA 
have engaged in a significant effort to conduct damage assessments and 
validate repair/replacement cost estimates in New York and New Jersey. 
Specifically, FTA and FEMA have worked with the New York Metropolitan 
Transportation Authority, the Port Authority for New York and New 
Jersey, New Jersey Transit, and the New York City Department of 
Transportation. When submitting applications for the three categories 
of projects described in this notice, these agencies may include the 
damage assessments developed with FTA and FEMA. Typically, a damage 
assessment involves on-the-ground visits to the damage sites to verify 
the extent of the damage and to estimate the cost of repairs eligible 
for Emergency Relief funding. The damage assessment should document: 
(1) The specific location, type of facility or equipment, nature and 
extent of damage; (2) the most feasible and practical method of repair 
or replacement; and (3) the estimated repair and replacement cost.
    Other Relevant Items. Applicants must provide supporting 
documentation showing other sources of funding available, including 
insurance policies, agreements with FEMA, and any other source of funds 
available to address the damage resulting from the hurricane. 
Applicants from all States that have received funding from FEMA for 
emergency operating expenses and also seek funding from FTA for 
emergency operating costs must include a copy of the agreement with 
FEMA, including the scope of the agreement, the amount funded, and the 
dates that FEMA agreed to fund operating costs, as well as the scope of 
service and dates for which the applicant is seeking FTA funding. 
Applicants that have received funding from FEMA for capital projects 
and also seek funding from FTA for capital projects must include a copy 
of the agreement with FEMA, including the scope of the agreement, the 
amount funded, and a list of projects included in the FEMA application 
or equivalent document. In addition, applicants must provide supporting 
documentation for Category Two and Category Three projects, including a 
signature/date page for each existing contract, RFP and ITB; and Board 
approval or budget documents showing the applicant budgeted ongoing 
force account work in response to the hurricane on or before January 
29, 2013.
2. Allocation of Program Funds
    FTA will allocate funds on a non-competitive basis for the three 
categories of eligible expenses described above. The FTA Administrator 
will determine the final allocation of funding for each applicant after 
validating damage assessments and cost estimates. FTA reserves the 
right to request additional information prior to making a determination 
as to Emergency Relief funding eligibility of any particular project. 
FTA may also seek clarification from any applicant about any statement 
in its proposal that FTA finds ambiguous. FTA intends to announce 
funding allocations on a rolling basis and will notify applicants 
directly of allocations made under the program. In addition, FTA will 
announce final allocations on the FTA Web site.

III. Application and Submission Information for this Notice

A. Application Submission Instructions

    Proposals requesting reimbursement must be submitted electronically 
through http://www.GRANTS.GOV by March 8, 2013 by 11:59 p.m. EST. Mail 
and fax submissions will not be accepted.
    A complete proposal submission will consist of at least two files: 
(1) The SF 424 Mandatory form (downloaded from GRANTS.GOV) and (2) the 
Hurricane Sandy-specific supplemental form found on the FTA Web site: 
http://

[[Page 8698]]

www.fta.dot.gov/emergencyrelief. The supplemental form provides 
guidance and a consistent format for applicants to respond to the 
information required as outlined in this notice. Once completed, the 
supplemental form must be placed in the attachments section of the SF 
424 Mandatory form.
    Applicants must attach the Hurricane Sandy-specific supplemental 
form to their submission in GRANTS.GOV to successfully complete the 
application process. A proposal submission may contain additional 
supporting documentation as attachments. Within 24-48 hours after 
submitting an electronic application, the applicant should receive 
three email messages from GRANTS.GOV: (1) Confirmation of successful 
transmission to GRANTS.GOV, (2) confirmation of successful validation 
by GRANTS.GOV and (3) confirmation of successful validation by FTA. If 
an applicant does not receive confirmations of successful validation 
and receives a notice of failed validation or incomplete materials, the 
applicant must address the reason for the failed validation, as 
described in the notice, and resubmit before the submission deadline. 
If making a resubmission for any reason, include all original 
attachments regardless of which attachments were updated. Complete 
instructions on the application process can be found on FTA's Web site 
at http://www.fta.dot.gov/emergencyrelief. FTA urges applicants to 
submit their applications at least 72 hours prior to the due date to 
allow time to receive the validation message and to correct any 
problems that may have caused a rejection notification. GRANTS.GOV 
scheduled maintenance and outage times are announced on the GRANTS.GOV 
Web site http://www.GRANTS.GOV. Deadlines will not be extended due to 
scheduled maintenance or outages.

B. Proposal Content

    Applicants may submit one proposal which can include multiple 
projects. Additional projects may be added within the Hurricane Sandy-
specific supplemental form by clicking the ``add project'' button in 
Section II of the supplemental form.
    Information such as applicant name, Federal amount requested, non-
Federal match amount, description of areas served, etc. may be 
requested in varying degrees of detail on both the SF 424 form and 
supplemental form. All fields are required unless stated otherwise on 
the forms. Use both the ``Check Package for Errors'' and the ``Validate 
Form'' validation buttons on both forms to check all required fields on 
the forms. Ensure that the Federal and non-Federal amounts specified 
are consistent.

IV. Award Administration

    Once FTA allocates Emergency Relief funds to a recipient, the 
recipient will be required to submit a grant application electronically 
via FTA's Transportation Electronic Award Management system (TEAM). 
Recipients should work with their FTA Regional Office to develop and 
submit their application in TEAM so that funds can be obligated 
expeditiously. Grant applications in TEAM may only include eligible 
activities under the Emergency Relief program. Upon award, payments to 
recipients will be made by electronic transfer to the recipient's 
financial institution through FTA's Electronic Clearing House Operation 
(ECHO) system.
    Post-award reporting requirements include submission of the Federal 
Financial Report and Milestone reports in TEAM consistent with FTA's 
grants management Circular 5010.1D, as well as any other reporting 
requirements FTA determines are necessary.

    Dated: Issued in Washington, DC, this 1st day of February 2013.
Peter Rogoff,
Administrator.
[FR Doc. 2013-02729 Filed 2-4-13; 11:15 am]
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