[Federal Register Volume 79, Number 41 (Monday, March 3, 2014)]
[Notices]
[Pages 11865-11868]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-04512]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration

[Docket No. FTA-2014-0008]


State of Good Repair Grants Program: Proposed Circular

AGENCY: Federal Transit Administration (FTA).

ACTION: Notice of availability of proposed circular and request for 
comments.

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SUMMARY: FTA has placed in the docket and on its Web site proposed 
guidance, in the form of a circular, to assist recipients of financial 
aid under the 49 U.S.C. 5337 State of Good Repair (``SGR'') Grants 
program. The proposed circular provides instructions and guidance on 
program administration and the grant application process.

DATES: Comments must be received by April 2, 2014. Late filed comments 
may be considered so far as practicable.

ADDRESSES: You may submit comments, identified by docket number FTA-
2014-0008, by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Fax: (202) 493-2251.
     U.S. Mail: U.S. Department of Transportation Docket 
Operations, 1200 New Jersey Avenue Southeast, Room W12-140, Washington, 
DC 20590-0001.
     Hand Delivery/Courier: U.S. Department of Transportation 
Docket Operations, 1200 New Jersey Avenue Southeast, Room W12-140, 
Washington, DC 20590-0001, between the hours of 9:00 a.m. and 5:00 
p.m., Monday through Friday, except Federal holidays.
    Instructions: All submissions received must include the agency name 
and docket number for this notice at the beginning of your comment. If 
sent by mail, please include two copies. If you wish to receive 
confirmation that FTA received your comment, you must include a self-
addressed and stamped postcard.
    All comments received will be posted without change to http://www.regulations.gov, including any personal information provided. You 
may review the U.S. Department of Transportation's complete Privacy Act 
Statement published in the Federal Register on April 11, 2000, at 65 FR 
19477-8 or at http://docketsinfo.dot.gov.
    Due to security procedures in effect since October 2001, mail 
received through the U.S. Postal Service may be subject to delays. 
Parties mailing comments should consider using an express mail firm to 
ensure their prompt filing.

FOR FURTHER INFORMATION CONTACT: Eric Hu, FTA Office of Program 
Management, (202) 366-0870, [email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Overview
II. Chapter-by-Chapter Summary
    A. Chapter I: Introduction and Background
    B. Chapter II: Program Overview
    C. Chapter III: General Program Information
    D. Chapter IV: Planning and Program Development
    E. Chapter V: Program Management and Administrative Requirements
    F. Chapter VI: Other Provisions
    G. Appendices

I. Overview

    The Moving Ahead for Progress in the 21st Century Act (``MAP-21''), 
Public Law 112-141, 126 Stat. 405 (2012), made significant changes to 
the Federal transit laws that are applicable across all of FTA's 
financial assistance programs. These changes further several important 
goals of the U.S. Department of Transportation. Most notably, MAP-21 
grants FTA new authority to oversee and regulate the safety of public 
transportation systems in the United States and authorizes a new Public 
Transportation Safety Program at 49 U.S.C. 5329. MAP-21 also 
establishes a new National Transit Asset Management system at 49 U.S.C. 
5326 including a new requirement for transit asset management plans, 
performance measures and annual target setting based on a definition of 
``state of good repair'', and additional technical assistance from FTA.
    MAP-21 also establishes the new State of Good Repair (SGR) Grants 
program at 49 U.S.C. 5337. In contrast to the repealed fixed guideway 
modernization program, the purpose of the SGR Grants program is the 
maintenance, replacement, and rehabilitation of capital assets, along 
with the development and implementation of transit asset management 
plans.
    These three new sections--section 5326 transit asset management, 
section 5329 public transportation safety program, and section 5337 SGR 
Grants program--enhance the process by which a transit provider 
evaluates the SGR needs of capital assets and finances necessary 
replacement or rehabilitation, as informed by conditions of capital 
assets and safety risk priorities. A transit provider's safety and 
asset assessment informs its asset management process, which informs 
budgeting and project

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selection. FTA anticipates publishing in the Federal Register an 
Advance Notice of Proposed Rulemaking [RIN 2132-AB20] that will begin 
an in-depth discussion of safety and asset management issues and the 
interrelation of these three programs.
    This Notice provides a summary of a proposed guidance document, FTA 
Circular 5300.1, that provides program guidance and application 
instructions to assist grant recipients in implementing the SGR Grants 
program. FTA seeks public comment on the proposed Circular 5300.1. Any 
proposed policies on which FTA is seeking comment that impact service 
data used from National Transit Database to calculate the SGR formula 
apportionment will go into effect once a final circular is published.
    This Notice does not include the proposed Circular 5300.1. The 
proposed circular is approximately 150 pages in length, and is 
available in its entirety on FTA's Web site, http://www.fta.dot.gov. 
Paper copies may be obtained by contacting FTA's Administrative 
Services Help Desk at (202) 366-4865.
    The following is a chapter-by-chapter summary of the content of the 
proposed Circular 5300.1.

II. Chapter-By-Chapter Summary

A. Chapter I: Introduction and Background

    Chapter I of the proposed circular is an introductory chapter that 
contains general information about FTA, a distinction between the new 
SGR grants program and previous programs that existed under section 
5337, and a set of definitions applicable throughout the proposed 
circular. The circular includes several definitions that are new or 
that clarify statutory definitions including: ``bus rapid transit 
system,'' ``commuter rail,'' and ``high intensity motorbus.'' FTA 
specifically seeks comment on these proposed definitions. The proposed 
definitions would impact project eligibility under the SGR Grants 
program and how system data are reported to the National Transit 
Database, which is used to calculate SGR Grants program apportionments. 
The proposed definition of commuter rail includes a provision to 
preserve the designation of any service designated as commuter rail as 
of 2012. FTA specifically seeks comment on these proposed definitions.

B. Chapter II: Program Overview

    Chapter II provides general information about the SGR grants 
program.
1. Statutory Authority
    This section states the statutory authorization of the SGR grants 
program, MAP-21 section 20027, codified at 49 U.S.C. 5337.
2. Program Goals
    This section describes the program goals for the SGR Grants 
program: the maintenance, repair or replacement of capital assets to 
bring fixed-guideway and high-intensity motorbus systems into a state 
of good repair. The SGR Grants program is part of MAP-21's emphasis on 
improved safety, asset management, and restoring aging transit 
infrastructure.
3. FTA Role in Program Administration
    This section describes the respective roles of FTA's headquarters 
and regional offices in program administration. The headquarters office 
is generally responsible for policy guidance and national program 
reviews, while the regional offices are generally responsible for day-
to-day program administration, obligating funds, providing technical 
assistance, and reviewing recipients' compliance with Federal 
requirements.
4. Designated Recipient Role in Program Administration
    This section explains that SGR Grants are apportioned to designated 
recipients. The term designated recipient is defined at 49 U.S.C. 
5302(4), and designated recipients for purposes of the SGR Grants 
program are the same as for the Section 5307 urbanized area formula 
grants program.
5. Direct Recipient and Sub-Recipient Eligibility
    This section describes how to establish a direct recipient and the 
process for allocating funds to direct recipients and for sub-awarding 
funds to subrecipients. A direct recipient is a public entity that may 
apply for some or all of an urbanized area's funding if certain 
requirements are met.
6. FTA Oversight
    This section describes the oversight conducted by FTA to ensure a 
recipient's compliance with grant program conditions. FTA performs 
comprehensive triennial reviews and may perform reviews focused 
specifically on a recipient's technical capability, procurement 
practices, civil rights compliance, safety and security, or other 
subject areas. Also, FTA may apply the Project Management Oversight 
Requirements to SGR grants for the rehabilitation of fixed guideway 
systems having total project costs in excess of $100 million.
7. Relationship to Other Programs
    This section discusses other FTA grant programs that have been 
repealed but for which funds may still be available, and programs 
created or amended by MAP-21. Funds previously authorized for programs 
that were repealed by MAP-21 remain available for their authorized 
purposes until the statutory period of availability expires or until 
the funds are fully expended, rescinded by Congress, or reallocated.

C. Chapter III: General Program Information

    This chapter discusses in more detail the apportionments for the 
SGR Grants program.
1. Apportionment of Program Funds
    This section states that FTA will apportion SGR Grants program 
funds to designated recipients in urbanized areas with high intensity 
fixed guideway and high intensity motorbus systems.
2. Formula Apportionment
    This section describes the statutory formula used to apportion 
funds under the SGR Grants program. Of the funds appropriated to the 
SGR Grants program by Congress, 97.15 percent is apportioned among 
urbanized areas with fixed-guideway systems that have been in operation 
for at least 7 years, and 2.85 percent is apportioned among urbanized 
areas with high-intensity motorbus systems that have been in operation 
for at least 7 years.
    An urbanized area's fixed-guideway apportionment is determined by 
two calculations. Half of the apportionment is based on what the 
urbanized area would have received under the pre-MAP-21 fixed guideway 
modernization program, but using calculations contained in the current 
version of 49 U.S.C. 5336(b)(1). The other half of the apportionment is 
calculated based on fixed guideway service attributable to the 
urbanized area, weighted 60-40 between vehicle revenue miles and 
directional route miles; only segments of fixed guideway systems that 
have been in operation for at least seven years prior to the start of a 
fiscal year are included in the calculation for any given fiscal year.
    An urbanized area's high-intensity motorbus apportionment is 
calculated based on vehicle revenue miles and directional route miles. 
FTA proposes that all high occupancy toll lane miles be excluded from 
the calculation, including those systems that were previously 
grandfathered after

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conversion from high occupancy vehicle lanes. As with the fixed 
guideway calculation, the motorbus calculation is weighted 60-40 for 
vehicle revenue miles and directional route miles; only segments of 
motorbus systems in operation for seven years prior to the start of a 
fiscal year are included in the calculation for any given fiscal year.
3. Availability of Funds
    SGR Grants program funds are available for obligation during the 
fiscal year of appropriation plus three additional years.
4. Eligible Recipients
    State and local government authorities in urbanized areas with 
qualifying fixed guideway or motorbus systems are eligible recipients.
5. Eligible Projects
    This section describes projects eligible for SGR Grants program 
funds. The SGR Grants program is available for the maintenance, 
rehabilitation or replacement of existing capital assets. SGR grants 
are not available for projects that expand system capacity or service 
or modernize assets. However, FTA will permit expansion of capacity 
within replacement projects to meet current or projected short-term 
service needs (e.g., replacing a maintenance facility with a larger 
facility, or replacing a bus with a larger bus). Replacement and 
rehabilitation includes (1) replacement of older features with new 
ones; (2) incorporation of current design standards; and (3) additional 
features required by Federal requirements. For any Expansion elements 
included in a replacement project, the grantee will need to address how 
the project meets current or short term service levels. FTA will review 
the reasonableness of such expansion elements when reviewing the grant. 
In addition to replacement and rehabilitation, new maintenance 
facilities or maintenance equipment are eligible if needed to maintain 
the existing fixed guideway system or equipment.
    Funds apportioned under high intensity fixed guideway shall be 
available exclusively for fixed guideway projects. High intensity 
motorbus funds can be used interchangeably on any eligible high 
intensity motorbus or high intensity fixed guideway project. High 
intensity motorbus funds must be used for capital expenses of public 
transportation systems that provide regular, continuing shared-ride 
surface transportation service to the general public.
6. Federal Share of Project Costs
    This section describes the requirement for local funding of 
projects assisted with the SGR Grants program. The Federal share of a 
project generally shall not exceed 80 percent of the net project cost. 
This section also discusses exceptions to the 80 percent limitation.
7. Capital Cost of Contracting
    This section describes the eligibility of recipients who contract 
with a third party for the provision of transit services and therefore 
do not have direct capital costs. In such situations, FTA can apply a 
concept called the ``capital cost of contracting''.
8. Local Share of Project Costs
    This section describes qualifying sources of the local share of a 
project.
9. Additional Sources of Local Share
    This section describes qualifying sources of the local share of a 
project that have special requirements associated with their use.
10. Alternative Financing
    This section describes alternative or innovative sources of project 
financing and the U.S. Department of Transportation's Transportation 
Infrastructure Finance and Innovation Act (TIFIA) loans. Recipients are 
encouraged to investigate and pursue innovative financing methods for 
transit projects.
11. Deferred Local Share
    This section describes a possible arrangement whereby a project 
sponsor may defer contributing the local share of project costs until 
the Federal share has been fully drawn down.

D. Chapter IV: Planning and Program Development

    Chapter IV describes planning requirements that apply to most 
recipients of FTA funding and are common to most of FTA's programs. The 
chapter contains a new section, Transit Asset Management (TAM), that 
describes the new national asset management system and the requirements 
for planning, target-setting, and reporting placed on recipients of FTA 
funding that will be effective upon completion of rulemaking. Asset 
management and the management of safety risks should inform recipients' 
selection of SGR Grants program projects.
    Other sections in chapter IV are: (2) Metropolitan and Statewide 
Planning Requirements; (3) Metropolitan Planning Areas; (4) 
Transportation Management Areas; (5) Performance-Based Planning; (6) 
Role of Designated Recipient and Metropolitan Planning Organization in 
Allocating Program Funds; (7) Subarea Allocation; (8) Availability of 
FHWA ``Flexible Funds'' for Transit Projects; (9) Requirements Related 
to Vehicles and Equipment; (10) Requirements Related to Facilities; 
(11) Environmental Considerations; (12) Major Capital Projects; (13) 
Authority to Undertake Projects in Advance; and (14) Public 
Transportation Safety Requirements.

E. Chapter V: Program Management and Administrative Requirements

    Chapter V describes management and administrative requirements that 
apply to FTA grants and are common to FTA's various programs. Sections 
included in chapter V are: (1) FTA Electronic Award Management System; 
(2) System for Award Management Requirements; (3) Data Universal 
Numbering System (DUNS) Registration; (4) DUNS Requirement for 
Subrecipients; (5) Electronic Clearing House Operation (ECHO) 
Requirements; (6) Federal Funding Accountability and Transparency Act 
(FFATA) Requirements; and (7) National Transit Database (NTD) 
Reporting.

F. Chapter VI: Other Provisions

    Chapter VI describes some of the requirements and conditions that 
apply to FTA grants and are common to FTA's programs. Sections included 
in chapter VI are: (1) Introduction; (2) Charter Bus Services; (3) 
Civil Rights; (4) Clean Air Act (CAA); (5) Commercial Driver's License 
(CDL); (6) Debarment and Suspension; (7) Drug and Alcohol Testing; (8) 
Drug-Free Workplace; (9) Employee Political Activity; (10) Energy 
Conservation; (11) Environmental Reviews; (12) Intergovernmental 
Review; (13) Labor Protections; (14) Presidential Coin Act; (15) 
Private Sector Participation; (16) Use of Competitive Procurements; 
(17) Real Property Acquisition and Relocation Assistance; (18) 
Restrictions on Lobbying; (19) Safety and Security; (20) School Bus 
Transportation; (21) Seismic Design and Construction Standards; (22) 
Sensitive Security Information; and (22) State Safety Oversight.

G. Appendices

    The proposed Circular 5300.1 contains three appendices. Appendix A 
contains instructions for recipients preparing a grant application. 
Appendix B contains instructions for how to prepare a project budget. 
Appendix C contains example documents to assist recipients in applying 
for and managing an SGR grant. Appendix D contains FTA

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regional and metropolitan contact information. Appendix E contains a 
list of references for the circular.

Therese W. McMillan,
Deputy Administrator.
[FR Doc. 2014-04512 Filed 2-28-14; 8:45 am]
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