[Federal Register Volume 78, Number 187 (Thursday, September 26, 2013)]
[Notices]
[Pages 59415-59419]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-23435]
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DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
[Docket No. FTA-2013-0023]
Formula Grants for Rural Areas: Guidance and Application
Instructions
AGENCY: Federal Transit Administration (FTA), DOT.
ACTION: Notice of Availability of Proposed Circular and Request for
Comments.
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SUMMARY: The Federal Transit Administration (FTA) has placed in the
docket and on its Web site, proposed guidance in the form of a
circular, to assist recipients in their implementation of the section
5311 Rural Area Formula Program. The purpose of this proposed circular
is to provide recipients of FTA financial assistance with updated
instructions and guidance on program administration and the grant
application process. The proposed revisions to the existing circular
are a result of changes made to the Rural Area Formula Program by the
Moving Ahead for Progress in the 21st Century Act (MAP-21). By this
notice, FTA invites public comment on the proposed circular.
DATES: Comments must be submitted by November 25, 2013. Late-filed
comments will be considered to the extent practicable.
ADDRESSES: Please submit your comments by only one of the following
methods, identifying your submission by docket number FTA-2013-0023.
All electronic submissions must be made to the U.S. Government
electronic site at http://www.regulations.gov.
(1) Federal eRulemaking Portal: Go to http://www.regulations.gov
and follow the online instructions for submitting comments.
(2) Mail: Docket Management Facility: U.S. Department of
Transportation, 1200 New Jersey Avenue SE., West Building, Ground
Floor, Room W12-140, Washington, DC 20590-0001.
(3) Hand Delivery or Courier: West Building Ground Floor, Room W12-
140, 1200 New Jersey Avenue SE., between 9 a.m. and 5 p.m. Eastern
time, Monday through Friday, except Federal holidays.
(4) Fax: 202-493-2251.
Instructions: You must include the agency name (Federal Transit
Administration) and Docket number (FTA-2013-0026) for this notice at
the beginning of your comments. Submit two copies of your comments if
you submit them by mail. For confirmation that FTA received your
comments, include a self-addressed stamped postcard. All comments
received will be posted without change to www.regulations.gov including
any personal information provided and will be available to internet
users. You may review DOT's complete Privacy Act Statement published in
the Federal Register on April 11, 2000 (65 FR 19477) or http://DocketsInfo.dot.gov.
Docket: For access to the docket to read background documents and
comments received, go to www.regulations.gov at any time or to the U.S.
Department of Transportation, 1200 New Jersey Ave SE., Docket
Operations, M-30, West Building Ground Floor, Room W12-140, Washington,
DC 20590 between 9:00 a.m. and 5:00 p.m., Monday through Friday, except
Federal holidays.
FOR FURTHER INFORMATION CONTACT: For program questions, Lorna Wilson,
Office of Transit Programs, Federal Transit Administration, 1200 New
Jersey Ave. SE., Room E46-305, Washington, DC, 20590, phone: 202-366-
0893 or email: [email protected]. For legal questions, Bonnie
Graves, Office of Chief Counsel, same address, room E56-306, phone:
202-366-4011, or email: [email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Overview
II. Chapter-by-Chapter Analysis
A. Chapter I--Introduction and Background
B. Chapter II--Program Overview
C. Chapter III--General Program Information
D. Chapter IV--Program Development
E. Chapter V--Program Management and Administrative Requirements
F. Chapter VI--State Management Plan
G. Chapter VII--Appalachian Development Public Transportation
Assistance Program
H. Chapter VIII--Intercity Bus
I. Chapter IX--Rural Transportation Assistance Program
J. Chapter X--Public Transportation on Indian Reservations
K. Chapter XI--Other Provisions
L. Appendices
I. Overview
This notice provides a summary of proposed changes to FTA Circular
9040.1F, ``Non-urbanized Area Formula Program Guidance and Grant
Application Instructions.'' The Moving Ahead for Progress in the 21st
Century Act (MAP-21, Pub. L. 112-141), signed into law on July 6, 2012,
renamed the Section 5311 program as the Formula Grants for Rural Areas
Program. Generally the Section 5311 program provides formula funding to
States and Indian Tribes for the purpose of supporting public
transportation in areas with a population of less than 50,000. Funding
may be used for capital and planning projects, job access reverse
commute projects, operating assistance and administration expenses. FTA
is updating the existing circular, 9040.1F, published on April 1, 2007,
to reflect changes in the law.
Because MAP-21 amended the name of the section 5311 program from
the Formula Grants for Other Than Urbanized Area Program to the Formula
Grants for Rural Areas Program, the word ``rural'' replaces ``non-
urbanized area'' or ``other than urbanized area'' throughout the
proposed circular. Under MAP-21, the changes to this program include
changes to the formula, eligible activities, and to the set-asides that
support other rural transit programs within this section, such as the
Tribal Transit Program. These changes are described below.
MAP-21 made several significant changes to Federal transit law that
are applicable across all of FTA's financial assistance programs and
reflected in the proposed circular. These changes
[[Page 59416]]
further several important goals of FTA and the U.S. Department of
Transportation (DOT). Most notably, MAP-21 grants FTA significant new
authority to oversee and regulate the safety of public transportation
systems throughout the United States. MAP-21 also puts new emphasis on
restoring and replacing the Nation's aging public transportation
infrastructure by establishing a new State of Good Repair Formula
Program and new asset management requirements, and aligning Federal
funding with key performance goals and tracking recipients' progress
towards these goals. Finally, MAP-21 improves the efficiency of program
administration through program consolidation and streamlining.
In addition to MAP-21 updates addressed above and outlined below,
the proposed circular updates the organization and wording of the
existing circular to improve clarity and to achieve consistency with
FTA's other circulars and to reflect other changes made by MAP-21,
specifically to the 5311 program. When adopted, the final circular will
supersede the existing circular.
This document does not include the proposed circular on which FTA
seeks comment; however, an electronic version is available on FTA's Web
site, at www.fta.dot.gov. Paper copies may be obtained by contacting
FTA's Administrative Services Help Desk, at (202) 366-4865.
II. Chapter-by-Chapter Analysis
A. Chapter I--Introduction and Background
Chapter I of the circular is an introductory chapter that covers
general information about FTA, provides a brief history of the 5311
program, and defines terms applicable across all FTA programs.
The proposed circular updates the definitions section to include
changes and additions made by MAP-21. The following statutory
definitions were amended or added by MAP-21, and are included in the
proposed circular: Associated transit improvements (previously
``transit enhancements''); bus rapid transit (BRT) system; commuter
highway vehicle or vanpool vehicle; disability; fixed guideway; job
access and reverse commute project; private provider of public
transportation by vanpool; public transportation; regional
transportation planning organization; and senior. Non-statutory
definitions for terms that are unclear or currently undefined have also
been added to this section. Where applicable, we have used the same
definitions found in rulemakings or other circulars to ensure
consistency. We have also added a definition for ``electronic grant
management system'' and removed references to the current system--
TEAM--in anticipation of a new system, currently under development.
FTA proposes revising the program history section to incorporate a
summary of changes made by MAP-21. FTA seeks comment on the content of
Chapter I.
B. Chapter II--Program Overview
Chapter II provides an overview of the Section 5311 program.
Proposed changes to this chapter reflect changes in the law.
The chapter begins with a summary of the statutory authority for
Section 5311, and includes a discussion of new and redefined activities
for this program, including takedowns for the new Appalachian
Development Public Transportation Assistance Program, the Rural Transit
Assistance Program, and the revised Tribal Transit Program which
includes both formula and discretionary funding; planning; and job
access and reverse commute projects. This section also describes the
new formula factors by which Section 5311 funds are apportioned.
FTA proposes updating the program goals section, by adding three
additional goals of the program: Providing financial assistance to help
carry out national goals related to mobility for all, including
seniors, individuals with disabilities, and low-income individuals;
increasing availability of transportation options through investments
in intercity bus services; and encouraging mobility management,
employment-related transportation alternatives, joint development
practices, and transit-oriented development.
FTA proposes amending the section on the relationship to other FTA
programs to include a brief discussion of programs repealed by MAP-21
but for which funding may still be available. These programs include:
Clean Fuels Grant Program (former section 5308); Bus and Bus Facilities
Discretionary Program (former section 5309(b)(3)); Job Access and
Reverse Commute Program (former section 5316); New Freedom Program
(former section 5317); and Paul S. Sarbanes Transit in the Parks
Program (former section 5320). Funds previously authorized for programs
repealed by MAP-21 remain available for their originally authorized
purposes until the period of availability expires, the funds are fully
expended, the funds are rescinded by Congress, or the funds are
otherwise reallocated.
Also included in this section is a brief discussion of the
relationship between the Section 5311 Program and other programs that
are either new or were significantly modified by MAP-21, including:
Urbanized Area Formula Program (section 5307); State of Good Repair
Formula Program (section 5337); Bus and Bus Facilities Formula Program
(section 5339); Transit Oriented Development Pilot Program (section
20005(b) of MAP-21); Transportation Alternatives Program (23 U.S.C.
213(b)); Federal Lands Access Program (23 U.S.C. 204); and Federal
Highway Administration (FHWA) flexible funds. FTA seeks comment on the
content of Chapter II.
C. Chapter III--General Program Information
This chapter provides general information about the 5311 program.
This chapter specifically discusses apportionments under the program,
eligible uses of program funds, and matching requirements.
As stated previously, Congress amended the formula by which Section
5311 program funds are apportioned. Under previous authority, 80
percent of funds were allocated to States on the basis of rural area
population, and the remaining 20 percent of funds were allocated on the
basis of the land area within the rural area. Under MAP-21, 83.15
percent of available funds are apportioned on the basis of these two
factors, while 16.85 percent of funds are apportioned on the basis of
land area, vehicle revenue miles and the number of low-income
individuals in rural areas. Vehicle revenue miles are a new formula
factor and the low-income individuals factor reflects that job access
and reverse commute projects are now eligible activities under the
Section 5311 program.
In addition to funds made available to States under Section 5311,
funds authorized for the Section 5340 growing States formula will be
apportioned to States for use in rural areas.
Funding for oversight, the Rural Transportation Assistance Program
(RTAP), Tribal Transit Program, and the new Appalachian Development
Public Transportation Assistance Program will be taken off the total
amount available to carry out the Section 5311 Program in each fiscal
year before amounts are apportioned to the States.
FTA proposes clarifying the provisions related to transferring
funds between programs. We propose maintaining the transfer provision
language for transfer of Section 5316 (Job Access and Reverse Commute)
and Section 5317 (New Freedom), since
[[Page 59417]]
many areas continue to have FY 12 and earlier funds available for
obligation and expenditure. Funds made available for the Appalachian
Development Public Transportation Assistance Program may be transferred
to FHWA if a State provides documentation to the FTA regional office
that includes: a description of the notice and comment process used to
establish stakeholder involvement (i.e. State, local transit operators,
and local MPO), a statement that the funds cannot be used for operating
expenses, and a certification that the local transit needs are being
addressed.
FTA proposes making only clarifying edits to the section on
Eligibility. We propose several changes to the section on Eligible
Activities. MAP-21 reduced the amount of administrative funds available
to the State, from 15 percent to 10 percent, but added planning
activities as an eligible expense. Administrative funds may be used for
to administer the program and provide technical assistance to
subrecipients, including project planning, program and management
development, public transportation coordination activities, and
research the State considers appropriate to promote effective delivery
of public transportation to rural areas. In addition, States may use up
to 0.5 percent of the Section 5311 apportionment to pay for 80 percent
of the costs of safety certification training for employees directly
responsible for safety oversight.
As stated previously, planning is a new eligible expense under MAP-
21. The planning activities undertaken with Section 5311 funds are in
addition to those awarded to the State under Section 5305 and must be
used specifically for rural area needs.
The Job Access and Reverse Commute (JARC) Program, (former Section
5316), was repealed by MAP-21; however, job access and reverse commute
projects are now eligible under the Section 5311 program. A job access
reverse commute project is a ``transportation project to finance
planning, capital, and operating costs that support the development and
maintenance of transportation services designed to transport welfare
recipients and eligible low-income individuals to and from jobs and
activities related to their employment, including transportation
projects that facilitate the provision of public transportation
services from urbanized areas and rural areas to suburban employment
locations.'' 49 U.S.C. 5302(9).
Each potential project must be for the ``development'' or
``maintenance'' of transportation services designed to transport
welfare recipients and eligible low-income individuals to and from jobs
and employment-related activities. FTA defines ``development of
transportation services'' to mean new projects that were not in service
on October 1, 2012. New job access and reverse commute projects may
include the expansion or extension of an existing service, so long as
the new service is designed to support the target populations; such
projects are not required to be solely for the use of the target
populations. ``Maintenance of transportation services'' means projects
that continue and maintain job access or reverse commute projects that
received funding under the former JARC (Section 5316) program. Projects
funded under the former Section 5316 program must be eligible under
Section 5311 in order to continue to receive funding. On April 22,
2013, FTA published the proposed circular for the Urbanized Area
Formula program for notice and comment. In that circular, FTA proposed
to amend the list of eligible job access and reverse commute projects
under the section 5307 program. The comment period on that circular has
closed, and FTA is in the process of reviewing comments and developing
a final circular. Because the circular for the Section 5307 program is
not yet final, and job access and reverse commute projects are in both
the Sections 5307 and 5311, FTA is proposing the same list of eligible
job access and reverse commute projects in this circular for the Rural
Areas program. Comments are welcome in response to this publication;
however, duplicate comment submissions are not necessary as the
comments received in response to the earlier circular will be
considered when establishing the final list of eligible job access and
reverse commute projects under both the Section 5307 and Section 5311
programs.
Although job access and reverse commute projects under Section 5311
are not required to be developed through a coordinated planning
process, the project must be identified by the metropolitan planning
organization (MPO) and the designated recipient as a job access and
reverse commute project in the designated recipient's annual program of
projects, which must be developed in consultation with interested
parties, published with the opportunity for comments, and is subject to
a public hearing.
The unobligated carryover balances of FY 2012 and older JARC
program funds may be obligated through the period of availability, but
must follow the SAFETEA-LU requirements. For example, Section 5316 JARC
projects must be derived from a locally developed, coordinated public
transit-human services transportation plan and must also be selected by
the designated recipient through an area-wide or statewide competitive
selection process. Although not required by law, FTA encourages
recipients to continue to use the coordinated planning process to
identify and develop job access and reverse commute projects for
funding under Section 5311, as amended by MAP-21.
The Federal share of capital and planning projects is 80 percent,
and the Federal share for operating projects is 50 percent. Prior to
MAP-21, vehicle-related equipment to comply with the Americans with
Disabilities Act (ADA) or the Clean Air Act (CAA) was funded at 90
percent. FTA administratively ``blended'' the 80 percent Federal share
for revenue vehicles with the 90 percent share for equipment to reach
an 83 percent Federal share for revenue vehicles that were compliant
with the ADA or the CAA. Under MAP-21, the Federal share is now 85
percent for these vehicles. In addition, the 90 percent Federal share
for vehicle-related equipment and facilities acquired for purposes of
complying or maintaining compliance with the CAA or required by the ADA
continues.
MAP-21 codified the ``Intercity Pilot Match Program'' established
by FTA in March 2007, which permits the cost of an unsubsidized portion
of privately provided intercity bus service that connects feeder
service to be used as in-kind local match for the intercity bus
projects. For the costs to be eligible for a recipient's local share,
the recipient and the provider must have entered into a legally binding
agreement requiring the provider to use the rolling stock in the
recipient's service area. FTA seeks comment on the content of Chapter
III.
D. Chapter IV--Program Development
Generally, FTA has made only clarifying edits to this chapter.
There are two areas of significant change from C 9040.1F: The addition
of information on the new performance based planning approach under
MAP-21, and revisions to the program of projects section.
MAP-21's new broad performance management program supports seven
national performance goals as well as the general purposes of Federal
transit law described in 49 U.S.C. 5301. The performance management
framework attempts to improve project decision-making through
performance-based planning and programming and through fostering a
transparent and accountable decision-making process for MPOs, States,
and providers of public transportation. States may establish or
[[Page 59418]]
designate regional transportation planning organizations to carry out
the statewide planning process, with an emphasis on addressing the
rural needs of nonmetropolitan areas of the State. If a State elects
not to establish or designate a regional transportation planning
organization, the State must consult with affected nonmetropolitan
local officials to determine projects that may be of regional
significance.
As for the program of projects, FTA proposes to eliminate Category
C, which was typically used for program reserve. Given that Section
5311 funds are available for obligation for a total of three years, if
the State does not have a project identified that fits in either
Category A or B, FTA recommends the funds remain unobligated until
future needs arise. Second, FTA proposes updating the ``revisions to
the program of projects section'' to provide flexibility to States to
make minor revisions without having to necessarily obtain FTA's prior
approval. FTA seeks comment on the content of Chapter IV.
E. Chapter V--Program Management and Administrative Requirements
Many of the proposed amendments to this chapter are clarifying in
nature. Areas of substantive edits include an increase in the threshold
for small purchases to $150,000 (up from $100,000) and inclusion of the
statutory change that permits multiyear rolling stock contracts for
which the recipient has an option to buy additional rolling stock or
replacement parts to be up to 5 years for bus procurements and up to 7
years for rail procurements, provided the option does not allow for
significant changes or alterations to the rolling stock.
For consistency across circulars, we propose adding a paragraph on
the transit vehicle manufacturer disadvantaged business enterprises
program. This paragraph contains the same information as the proposed
urbanized area formula program circular, 9030.1E. We also propose
adding a paragraph each on the FTA electronic grant management system,
the system for award management (SAM) requirements, and DUNS
registration requirements. We have also added a paragraph describing
the Federal Funding Accountability and Transparency Act (FFATA)
requirement that each recipient report information about each first
tier sub-award over $25,000 by the end of the month following the month
the direct recipient makes any sub-award or obligation. FTA seeks
comment on the content of Chapter V.
F. Chapter VI--State Management Plan
Chapter VI addresses the State Management Plan, a document
describing state policies and procedures for administering state-
managed portions of the Section 5311 program. There are two substantive
changes to this chapter. First, under intercity bus transportation, we
state that if the in-kind provision is used for local match, the State
must document the process used to validate the source of the in-kind
match, and the unsubsidized segment of the intercity bus service.
Second, and consistent with changes to Section 5310, formula grants for
the enhanced mobility of seniors and individuals with disabilities,
effective with FY 2013, Section 5310 funds may not be transferred to
Section 5311. FTA seeks comment on the content of Chapter VI.
G. Chapter VII--Appalachian Development Public Transportation
Assistance Program
FTA proposes a new chapter in this circular: Appalachian
Development Public Transportation Assistance Program (ADTAP). Under
MAP-21, this new formula program is funded as a takedown from funds
made available for the Section 5311 program, with $20 million available
for projects in the Appalachian Region.
Funds for this program are available to support public
transportation service in West Virginia and eligible counties in 12
other States: Alabama, Georgia, Kentucky, Maryland, Mississippi, New
York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee,
and Virginia. Funds are available for grants for any purpose eligible
under Section 5311, which includes capital, operating, planning, job
access and reverse commute projects, and administrative assistance for
the Appalachian Region.
The formula for this program is based on guidelines established
under section 9.5(b) of the Appalachian Regional Commission Code. Funds
that cannot be used for public transportation operating expenses may be
transferred and used for a highway project if the Governor approves the
use in writing after appropriate notice and an opportunity for comment
and appeal are provided to affected public transportation providers.
FTA seeks comment on the content of Chapter VII.
H. Chapter VIII--Intercity Bus
MAP-21 continues the requirement that each State spend no less than
15 percent of its annual Rural Area Formula apportionment for the
development and support of intercity bus transportation, unless it can
certify, after consultation with affected intercity bus service
providers, that the intercity bus service needs of the State are being
adequately met. FTA continues to encourage consultation with other
stakeholders, such as communities affected by loss of intercity
service.
MAP-21 codifies the ``Intercity Pilot Match Program'' established
by FTA in March 2007, which permits the cost of an unsubsidized portion
of privately provided intercity bus service that connects feeder
service to be used as in-kind local match for the intercity bus
projects. We have included the in-kind match language in this chapter.
The section on the Over-the-Road Bus Accessibility Incentive
Program is deleted to reflect the repeal of the program by MAP-21. FTA
proposes updating the ADA regulations section of this chapter to
reflect that as of October 1, 2012, 100 percent of over-the-road buses
that provide fixed route service must be accessible to and usable by
individuals with disabilities, including individuals who use
wheelchairs. FTA seeks comment on the content of Chapter VIII.
I. Chapter IX--Rural Transportation Assistance Program (RTAP)
The RTAP program continues to provide funding to assist in the
design and implementation of training and technical assistance
projects, research, and other support services tailored to meet the
needs of transit operators in rural areas. FTA does not propose any
substantive changes to this chapter. FTA seeks comment on the content
of Chapter IX.
J. Chapter X--Public Transportation on Indian Reservations
Another proposed new chapter in this circular is Chapter X, Public
Transportation on Indian Reservations. Under MAP-21, the Tribal Transit
Program has been expanded, and now totals $30 million annually, of
which $25 million is for a formula program and $5 million is for a
discretionary program.
The formula program is funded as a takedown from funds made
available for the Section 5311 program. The formula factors include
annual vehicle revenue miles and the number of low-income individuals
residing on tribal lands. Eligible direct recipients for both the
formula and discretionary programs are Federally-recognized Indian
tribes. The funds are to be allocated for grants to Indian tribes for
any purpose eligible under Section 5311, which includes capital,
operating, planning, job access
[[Page 59419]]
and reverse commute projects, and administrative assistance for rural
public transit services and rural intercity bus service.
Section 5311(c)(1) provides that the Secretary shall establish the
terms and conditions for the Tribal Transit Program. When Indian tribes
receive funds under a State's Section 5311 program funds, all Federal
requirements attach. When Indian tribes receive Tribal Transit funds,
they must comply with certain cross-cutting requirements as listed in
section 7 of this chapter.
FTA proposes that no local match is required for the formula
program, or for planning grants made under the discretionary program.
We propose a 10 percent local match requirement for discretionary
grants made for both capital and operating expenses.
In order to be eligible for Tribal Transit funds, Indian tribes
must report to the National Transit Database. Information regarding
this reporting requirement is in section 13 of this chapter. FTA seeks
comment on the content of Chapter X.
K. Chapter XI--Other Provisions
Chapter XI provides summaries of FTA-specific and other Federal
requirements with which Section 5311 recipients must comply. FTA
proposes a number of changes to this chapter consistent with changes in
the law. Section 5323(b), as amended by SAFETEA-LU, Notice and Public
Hearing, was repealed by MAP-21, and FTA has removed discussion of this
section from the proposed circular. This section applied to capital
projects that would substantially affect a community. FTA notes that
while Section 5323 was repealed, there are other requirements for
public notice and comment and opportunities for a hearing as part of
the environmental review process and various planning processes. We
propose streamlining the Environmental Review section, we have added a
section on Environmental Justice, we have amended the section on Safety
and Security, and we have made clarifying edits to a number of
sections. FTA seeks comment on the content of Chapter XI.
L. Appendices
The proposed appendices are intended as tools to assist recipients
in submitting grant applications.
Appendix A provides instructions for preparing grant applications
to FTA. In the section on the pre-application stage, we propose
revising the ``Environmental Determination'' paragraph, and we propose
adding a new section explaining the documentation requirements for the
use of flexible funds. The section covering the submission of an
application is revised and expanded and is no longer specific to the
TEAM system. The FTA address included in the ECHO form is updated.
FTA has updated the sample program of projects in appendix B to
reflect the 10 percent limit on rural area formula funding spent on
planning. Appendix C, addressing Section 5311 budget information, is
updated to include coding information for job access and reverse
commute and planning grants, as well as the Public Transportation on
Indian Reservations Program and Appalachian Development Public
Transportation Assistance Program.
FTA has updated Appendix D, explaining flexible-funding
requirements, to reflect changes to the program in MAP-21. Appendix F
provides information on the Section 5311(f) in-kind match for intercity
bus. Appendix G contains information on how to calculate the capital
cost of contracting. FTA seeks comment on the content of the
appendices.
Peter Rogoff,
Administrator.
[FR Doc. 2013-23435 Filed 9-25-13; 8:45 am]
BILLING CODE 4910-57-P