[Federal Register Volume 81, Number 30 (Tuesday, February 16, 2016)]
[Notices]
[Pages 7894-7925]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-02821]



[[Page 7893]]

Vol. 81

Tuesday,

No. 30

February 16, 2016

Part II





Department of Transportation





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Federal Transit Administration





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Notice of FTA Transit Program Changes, Authorized Funding Levels and 
Implementation of Federal Public Transportation Law as Amended by the 
Fixing America's Surface Transportation (FAST) Act and FTA Fiscal Year 
2016 Apportionments, Allocations, Program Information and Interim 
Guidance; Notice

  Federal Register / Vol. 81 , No. 30 / Tuesday, February 16, 2016 / 
Notices  

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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration


Notice of FTA Transit Program Changes, Authorized Funding Levels 
and Implementation of Federal Public Transportation Law as Amended by 
the Fixing America's Surface Transportation (FAST) Act and FTA Fiscal 
Year 2016 Apportionments, Allocations, Program Information and Interim 
Guidance

AGENCY: Federal Transit Administration (FTA), DOT.

ACTION: Notice.

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SUMMARY: This notice announces changes in the Federal Transit 
Administration (FTA) programs in accordance with Federal public 
transportation law by the Fixing America's Surface Transportation 
(FAST) Act, which authorizes surface transportation programs of the 
Department of Transportation (DOT) for Federal fiscal years (FY) 2016 
through 2020. This notice provides preliminary implementation 
instructions and guidance for the new and revised programs in FY 2016, 
announces the apportionment for programs authorized and funded with FY 
2016 contract authority, and describes future plans for several 
discretionary programs. The notice also includes locations of FY 2016 
apportionment tables and unobligated (or carryover) funds allocated 
under the discretionary programs from prior years.

FOR FURTHER INFORMATION CONTACT: For general information about this 
notice contact Kimberly Sledge, Director, Office of Transit Programs, 
at (202) 366-2053. Please contact the appropriate FTA Regional Office 
for any specific requests for information or technical assistance. FTA 
Regional Office contact information is available on FTA's Web site: 
www.fta.dot.gov.
    An FTA headquarters contact for each major program area is included 
in the discussion of that program in the text of this notice. FTA 
recommends that stakeholders subscribe on FTA's Web site 
(www.fta.dot.gov) to receive email notifications when new information 
is available.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Overview
II. FY 2016 Funding for FTA Programs
    A. Federal Transit Law as Amended by the FAST Act Authorization, 
and FY 2016 Appropriations
    B. Oversight Takedown
    C. Previously Authorized Funding
III. FAST Act and FY 2016 Appropriations: Highlights of Changes
    A. Focus Areas
    1. Safety Authority
    2. Transit Award Management System (TrAMS)
    3. Between Car Barriers for Rail Systems
    4. Public Transportation Innovation
    5. Innovative Procurement (Section 3019)
    6. Tribal Transportation Self-Governance Program (Title 23 
Federal-Aid Highways Program)
    7. Discretionary Programs
    a. Transit-Oriented Development Planning Pilot Program (Section 
20005(b) of MAP-21)
    b. Passenger Ferry Grant Program (49 U.S.C. 5307(h))
    c. Innovative Coordinated Access and Mobility Pilot Program (49 
U.S.C. 5310 Section 3006(b)of the FAST Act)
    d. Public Transportation on Indian Reservations (49 U.S.C. 
5311(j))
    e. Grants for Buses and Bus Facilities Competitive Grants (49 
U.S.C. 5339(b))
    f. Low or No Emission Grants (49 U.S.C. 5339(c))
    g. Positive Train Control (Section 3028 of the FAST Act)
    B. Definitional Changes and New Definitions
    1. Associated Transit Improvement
    2. Capital Project
    3. Value Capture and Value Capture Revenue
    C. Repealed and Consolidated Programs in FTA's Authorization
    1. Research, Development, Demonstration and Deployment (49 
U.S.C. 5312)
    2. Transit Cooperative Research (49 U.S.C. 5313)
    3. Technical Assistance and Standards Development (49 U.S.C. 
5314)
    4. Bicycle Facilities (49 U.S.C. 5319)
    5. Human Resources and Training (49 U.S.C. 5322)
    D. Cross-Cutting Programmatic Requirements and Changes
    1. Metropolitan and Statewide Planning
    2. Provision of Non-Fixed Route Paratransit Under ADA
    3. Buy America
    4. Leasing
    5. Project Management Oversight
    6. Incremental Cost of Art and Non-Functional Landscaping 
Prohibited
    7. Use of Geographic Preferences in Hiring
IV. Program-Specific Information
    A. Metropolitan and Statewide Transportation Planning Program 
(49 U.S.C. 5303 and 5305(d))
    B. State Planning and Research Program (49 U.S.C. 5304 and 
5305(e))
    C. Urbanized Area Formula Program (49 U.S.C. 5307)
    D. Fixed Guideway Capital Investment Grant Program (49 U.S.C. 
5309)
    E. Enhanced Mobility of Seniors and Individuals With 
Disabilities Program (49 U.S.C 5310)
    F. Formula Grants for Rural Areas Program (49 U.S.C. 5311)
    G. Rural Transportation Assistance Program (49 U.S.C. 
5311(b)(3))
    H. Appalachian Development Public Transportation Assistance 
Program (49 U.S.C. 5311(c)(2)
    I. Formula Grants for Public Transportation on Indian 
Reservations Program (49 U.S.C. 5311(j))
    J. Public Transportation Innovation (49 U.S.C. 5312)
    K. Technical Assistance and Workforce Development (49 U.S.C. 
5314)
    L. Public Transportation Emergency Relief Program (49 U.S.C. 
5324)
    M. Public Transportation Safety Program (49 U.S.C. 5329)
    N. State of Good Repair Program (49 U.S.C. 5337)
    O. Grants for Buses and Bus Facilities Program (49 U.S.C. 5339)
    P. Growing States and High Density States Formula Factors (49 
U.S.C. 5340)
    Q. Washington Metropolitan Area Transit Authority Grants
V. FTA Policy and Procedures for FY 2016 Grants
    A. Automatic Pre-Award Authority To Incur Project Costs
    B. Letter of No Prejudice (LONP) Policy
    C. FY 2016 Annual List of Certifications and Assurances
    D. Civil Rights Requirements
    E. Consolidated Planning Grants
    F. Grant Application Procedures
    G. Grant Management

I. Overview

    This document contains important information and interim guidance 
about new FTA programs and changes to existing FTA program statutes (49 
U.S.C. 5301, et seq.) as amended by the Fixing America's Surface 
Transportation (FAST) Act (Pub. L. 114-94), signed by President Obama 
on December 4, 2015 and effective on October 1, 2015.
    In addition, this document provides full year apportionments for 
FTA formula and discretionary programs that are available in FY 2016 
pursuant to the Consolidated Appropriations Act, 2016 (Pub. L. 114-113) 
(FY 2016 Appropriations Act). It also contains information on how FTA 
plans to administer its transit programs in FY 2016 and how funds 
appropriated and allocated prior to FY 2016 will be treated.
    This notice highlights important changes to FTA programs, including 
new discretionary programs. It describes definitional changes and 
cross-cutting requirements, identifies repealed programs and provides 
specific information about FTA's statutory programs as amended by the 
FAST Act.
    For each FTA program, FTA has provided information on the FAST Act 
authorized funding levels for FY 2016, the basis for apportionment or 
allocation of funds, requirements specific to the program, period of 
availability of funds, and other program information. A separate 
section provides information on pre-award authority and other 
requirements and guidance applicable to FTA programs and grant

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administration. Finally, the notice includes references to tables on 
FTA's Web site that show amounts apportioned under the FAST Act, and 
approximately $1.04 billion in unobligated or carryover funding 
available in FY 2016 from prior years under certain discretionary 
programs carried out in accordance with prior authorization acts.
    Information in this document includes references to the existing 
FTA program guidance and circulars. Some information may have been 
superseded by new provisions in the FAST Act, but these guidance 
documents and circulars remain a resource for program management in 
most areas. FTA intends to revise the guidance and circulars, as 
appropriate, with an opportunity for public comment where necessary.

II. FY 2016 Funding for FTA Programs

A. Federal Transit Law as Amended by the FAST Act Authorization and FY 
2016 Appropriations

    The FAST Act is the new five-year surface transportation 
authorization that provides FTA an authorization level of $11.78 
billion in FY 2016 and a total of $61.56 billion from FY 2016 through 
FY 2020. The FAST Act realigns several transit programs, provides 
significant funding increases specifically for bus and bus facilities, 
creates several new discretionary programs and changes several cross-
cutting requirements. The law continues and expands FTA authority to 
strengthen the safety of public transportation systems throughout the 
United States.
    The FY 2016 Appropriations Act makes appropriations at the full-
year level for FY 2016 through September 30, 2016. In section 5301 of 
title 49, United States Code, Congress specifies that funding is 
available for the development and revitalization of public 
transportation systems. Current funding availability for each program 
is identified in section IV of this notice and in Table 1 located on 
FTA's FY 2016 Apportionment Web page.

B. Oversight Takedown

    The FAST Act modifies section 5338(f) \1\ to provide for the 
following oversight takedowns of FTA programs: 0.5 percent of 
Metropolitan and Statewide Planning funds, 0.75 percent of Urbanized 
Area Formula funds, 1 percent of Fixed Guideway Capital Investment 
funds, 0.5 percent of Formula Grants for the Enhanced Mobility of 
Seniors and Individuals with Disabilities, 0.5 percent of Formula 
Grants for Rural Areas, 1 percent of State of Good Repair Formula 
funds, 0.75 percent for Grants for Buses and Bus Facilities, and 1 
percent of Capital and Preventive Maintenance Projects for Washington 
Metropolitan Area Transit Authority funds. The funds are used to 
provide necessary oversight activities, such as oversight of the 
construction of any major capital project receiving Federal transit 
assistance; to conduct State Safety Oversight, drug and alcohol, civil 
rights, procurement systems, management, planning certification, and 
financial reviews and audits, as well as evaluations and analyses of 
grantee-specific problems and issues; and to generally provide 
technical assistance and correct deficiencies identified in compliance 
reviews and audits.
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    \1\ All references to ``section'' herein refer to sections of 
Chapter 53 of Title 49 of the United States Code, unless otherwise 
specifically stated.
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C. Previously Authorized Funding

    Funds allocated or apportioned in FY 2013 through 2015 that remain 
unobligated and for which the program has been repealed or its 
activities have been consolidated with other programs under Chapter 53 
will continue to be subject to the program and eligibility requirements 
that existed prior to the enactment of FAST and to new cross-cutting 
requirements found in section III.D. of this notice. These programs are 
as follows:

 Section 5312, Research, Development, Demonstration and 
Deployment
 Section 5313, Transit Cooperative Research Program
 Section 5314, Technical Assistance and Standards Development
 Section 5322, Human Resources and Training

    For programs that are continued under FAST with amendments, the 
provisions of the FAST Act now apply to all unobligated funds from FY 
2015 and prior years, as well as to FY 2016 funds. These programs are:

 Section 5305 Planning Programs
 Section 5307 Urbanized Area Formula Grants
 Section 5309 Fixed Guideway Capital Investment Grants
 Section 5310 Formula Grants for the Enhanced Mobility of 
Seniors and Individuals with Disabilities
 Section 5311 Formula Grants for Rural Areas
 Section 5339 Grants for Buses and Bus Facilities
 Section 20005(b) of MAP-21, Pilot Program for Transit-Oriented 
Development Planning

II. FAST Act and FY 2016 Appropriations: Highlights of Changes

    The FAST Act furthers several important goals of the DOT, including 
safety, state of good repair, performance, innovation and program 
efficiency. The FAST Act continues FTA's expanded authority to 
strengthen the safety of public transportation systems throughout the 
United States. The Act also continues to emphasize restoring and 
replacing the Nation's aging public transportation infrastructure. The 
level of overall funding is increased for transit projects by 17 
percent over the five-year authorization. Most notable is the increase 
to the Bus program where funding increased 62.5 percent in FY 2016 and 
nearly 90 percent over the five-year timeframe. In addition, the Bus 
Discretionary Grant program is reinstated and includes a set-aside for 
low or no emission vehicles and facilities.

A. Focus Areas

1. Safety Authority
    The FAST Act amends 49 U.S.C. 5329 to provide FTA with expanded 
authority to strengthen the safety of public transportation systems 
throughout the United States by developing safety standards for the 
public transportation industry and granting FTA the authority to 
administer temporary Federal safety management and oversight if a State 
Safety Oversight Program is not being carried out in accordance with 
section 5329, has become inadequate to ensure the enforcement of 
Federal safety regulation, or is incapable of providing adequate safety 
oversight consistent with the prevention of substantial risk of death, 
or personal injury. If there is a failure to develop an adequate State 
Safety Oversight Program, FTA may withhold Federal funding from the 
State safety oversight program and from the urbanized area or State in 
which the rail transit system overseen by the State Safety Oversight 
Agency is located. Additional information on FTA's safety authority and 
the requirements under section 5329 can be found in section IV.M. of 
this notice.
2. Transit Award Management System (TrAMS)
    FTA's Transportation Electronic Award and Management (TEAM) system 
closed for grant making and grant management on November 30, 2015. TEAM 
is currently available on a read-only basis and FTA is planning to 
transition to the Transit Award Management System (TrAMS) on February 
16, 2016.

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    When deployed, TrAMS will offer a more efficient, user-friendly, 
and flexible tool to award and manage grants and cooperative 
agreements. It will provide more useful grant information and will 
strengthen the integrity and consistency of the grant award and 
management processes.
    FTA will continue to provide training and technical assistance on 
using TrAMS. Training will include live webinars as well as training 
videos and guidance and technical assistance documents. Information on 
upcoming training will be posted at http://www.fta.dot.gov/TrAMS.
    Recipient and grant award information and attachments as of 
November 30, 2015 will migrate from TEAM into TrAMS. Individual user 
account information and TEAM user roles (as of November 30, 2015) will 
also migrate into TrAMS. Once TrAMS is deployed, recipients will be 
able to manage TEAM awarded grants as well as create new applications 
in TrAMS for FY 2016 and prior year funding.
    As reports contain cumulative information, FTA waived submission of 
monthly (for certain grantees) and quarterly reporting requirements for 
December, January, and February. The first monthly milestone progress 
reports (MPR) and Federal Financial Reports (FFR) will be due in TrAMS 
by March 30, 2016. The MPR and FFR reports for quarterly reporters will 
be due in TrAMS by April 30, 2016.
3. Between Car Barriers for Rail Systems
    All rail systems operating in a level-boarding environment must 
have between car barriers. FTA's Acting Administrator issued a Dear 
Colleague letter related to between car barriers on September 15, 2015. 
See: http://www.fta.dot.gov/newsroom/12910_16573.html.
    The Acting Administrator's letter focused on light rail systems, 
but rapid rail, commuter rail, and automated guideway systems are also 
required to have between car barriers. Specifically, 49 Code of Federal 
Regulations (CFR) sections 38.63, 38.85, 38.109, and 38.173 require 
between car barriers. Generally the requirement is, ``Where vehicles 
operate in a high-platform, level-boarding mode, devices or systems 
shall be provided to prevent, deter or warn individuals from 
inadvertently stepping off the platform between cars.'' The regulations 
do not prescribe a particular type of between car barrier. Rather, they 
state that suitable devices include pantograph gates, chains, and 
motion detectors. The purpose of this provision is to stop an 
individual from mistaking the gap between cars for an open vehicle door 
and then stepping off the platform. It should be noted the regulations 
do not define what constitutes a ``high platform,'' but the regulatory 
text links ``high-platform'' to ``level-boarding mode'' and must be 
considered in conjunction with other key parts of the regulations, 
which clearly point to the relationship between platform height and 
entrance to the vehicle floor. In a level-boarding/platform environment 
without between-car barriers, the hazard of falling to the track bed 
exists whenever a rail system operates trains of more than one car. 
This represents a physical risk to the traveling public as well as a 
financial risk to a transit agency.
4. Public Transportation Innovation
    The FAST Act continues to emphasize innovation and renames FTA's 
research program at 49 U.S.C. 5312 to ``Public Transportation 
Innovation''. Innovation has been a focus area for both the DOT and FTA 
for a number of years. Most recently, FTA launched the XPEDITE 
Innovation initiative, which was an online dialogue that sought 
industry input on a number of innovation areas from technology advances 
to financing and project delivery. FTA's research program will continue 
to build on this effort, along with major departmental initiatives such 
a Beyond Traffic and Ladders of Opportunity with a significant emphasis 
on technology trends that increase public transportation efficiency, 
effectiveness and enhance the quality of customer travel. FTA research 
goals are to promote innovation through projects of national 
significance that improve our nation's public transportation 
operations, infrastructure, and the travelers' experience in three 
focus areas: Safety, asset innovation/management, and mobility. Under 
49 U.S.C. 5312, as amended by the FAST Act, three categories of 
projects are authorized: Research; innovation and development; and 
demonstration, deployment and evaluation. FTA research projects achieve 
public transportation innovation goals by utilizing one or more of the 
following strategic directions:

 Enhancing equitable and accessible mobility for everyone
 Extending public private partnerships
 Ensuring public transportation efficiency, safety and 
reliability
 Enabling seamless, effective integration across transportation 
modes and applications, and;
 Expanding customer satisfaction and value.

    FTA's research and innovation activities harness thought leadership 
and promising practices as directed in 49 U.S.C. 5312 through contracts 
and cooperative agreements across states, academic institutions, 
transportation providers, and private and nonprofit organizations.
5. Innovative Procurement (Section 3019)
    Section 3019 of the FAST Act clarifies and emphasizes the ability 
of FTA recipients to enter into cooperative procurements and creates a 
pilot program. FTA will issue guidance in the near future related to 
cooperative procurement schedules, the Pilot Program for Nonprofit 
Cooperative Procurements, and the Joint Procurement Clearinghouse.
    Additionally, Section 3019 modifies and clarifies FTA's leasing 
requirements and eligibility. See changes for lease requirements in the 
cross-cutting section III.D.4 of this Notice.
6. Tribal Transportation Self-Governance Program (Title 23 Federal-Aid 
Highways Program)
    Section 1121 of the FAST Act establishes a Tribal Transportation 
Self-Governance Program (Self Governance) at 23 U.S.C. 207. The Self-
Governance Program establishes specific criteria for determining 
eligibility for a tribe to participate in the program. DOT will 
implement this program in consultation with tribal representatives and 
other interested stakeholders. More information about this program will 
be provided at a later date.
7. Discretionary Programs
    The FAST Act continues several discretionary programs that were 
authorized under MAP-21 and creates new ones. FTA is in the process of 
developing criteria and program guidance for the discretionary 
programs, which will be published in Notices of Funding Availability 
(NOFA). These include:
a. Transit-Oriented Development Planning Pilot Program (Section 
20005(b) of MAP-21)
    This discretionary pilot program for transit-oriented development 
(TOD) planning grants continues with no changes from what was included 
under MAP-21 and is authorized for $10 million for FY 2016. Eligible 
activities include comprehensive planning in corridors with proposed 
New Starts, Small Starts, or Core Capacity projects. The comprehensive 
plans should enhance economic development, ridership, and other goals; 
facilitate

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multimodal connectivity and accessibility; increase access to transit 
hubs for pedestrian and bicycle traffic; enable mixed-use development; 
identify infrastructure needs associated with the project; and include 
private sector participation. A NOFA will be published announcing the 
amount of funding available, application procedures, project and 
applicant eligibility, and relevant selection criteria. For more 
information or questions on this program, please contact Ben Owen at 
202-366-5602 or [email protected].
b. Passenger Ferry Grant Program (49 U.S.C. 5307)
    Of the amount authorized for Section 5307 each year, $30 million is 
set aside for the competitive discretionary Passenger Ferry Grant 
Program. Eligible projects are capital projects including ferries, 
terminals, and related infrastructure. FTA will allocate FY2016 funds 
for the discretionary passenger ferry competition to specific projects 
submitted in response to a NOFA published August 3, 2015. A Notice of 
Award will be published in the Federal Register announcing project 
selections. Awards will also be posted to FTA's Web site. For more 
information about this program, please contact Vanessa Williams at 202-
366-4818 or [email protected].
c. Innovative Coordinated Access and Mobility Pilot Program (49 U.S.C. 
5310)
    Section 3006(b) of the FAST Act created a new discretionary pilot 
program for innovative coordinated access and mobility. The $2 million 
program is open to Section 5310 recipients and subrecipients to assist 
in financing innovative projects for the transportation disadvantaged 
that improve the coordination of transportation services and non-
emergency medical transportation (NEMT) services. Examples of eligible 
projects include the deployment of coordination technology, and 
projects that create or increase access to community One-Call/One-Click 
Centers. A NOFA will be published announcing the amount of FY 2016 
funding available, application procedures, project and applicant 
eligibility, and relevant selection criteria. A report is required by 
December 31 of each year on the pilot program. The report will include 
a detailed description of the activities carried out under the pilot 
program, and an evaluation of the program, including an evaluation of 
the performance measures. For more information about this program, 
please contact Danielle Nelson at 202-366-2160 or 
[email protected].
d. Public Transportation on Indian Reservations (49 U.S.C. 5311(j))
    The Tribal Transit program continues to be a set-aside from the 
Rural Areas Formula program and includes a $5 million competitive 
discretionary grant program. Eligible projects are planning, capital 
and operating. FTA will publish a NOFA announcing FY 2016 funding, 
application procedures, project and applicant eligibility, and relevant 
selection criteria. For more information or questions on this program, 
please contact Elan Flippin at (202) 366-3800 or [email protected].
e. Buses and Bus Facilities Competitive Grants (49 U.S.C. 5339(b))
    The FAST Act authorizes a discretionary bus and bus facilities 
program in 49 U.S.C. 5339. In FY 2016 a total of $213 million is 
available to carry out the 5339(b) Bus and Bus Facilities Competitive 
Grant Program. Eligible capital projects include projects to replace, 
rehabilitate, lease, and purchase buses and related equipment and 
projects to purchase, rehabilitate, construct or lease bus-related 
facilities. FTA will publish a NOFA announcing the amount of FY 2016 
funding available, application procedures, project and applicant 
eligibility, and relevant selection criteria. For more information 
about the Bus and Bus Facilities competitive grants discretionary 
program, contact Sam Snead, Office of Transit Programs, at (202) 366-
1089 or [email protected].
f. Low or No Emission Grants (49 U.S.C. 5339(c))
    The FAST Act authorizes a total of $55 million for the 5339(c) Low 
or No Emissions Program (Low-No Program). Eligible projects or program 
of projects include the acquisition and leasing of low or no emission 
vehicles, constructing and leasing facilities and rehabilitating or 
improving existing facilities to accommodate low or no emission 
vehicles. FTA will publish a NOFA announcing the amount of FY 2016 
funding available, application procedures, project and applicant 
eligibility, and relevant selection criteria. For more information 
about the Low or No Emission discretionary program, contact Sam Snead, 
Office of Transit Programs, at (202) 366-1089 or [email protected].
    FTA's research office will continue to implement and evaluate the 
MAP-21-authorized FY 2013-2015 resources available through the Low or 
No Emission Deployment Program (49 U.S.C. 5312). FTA expects to 
announce the final research deployment grants (FY 2015; $22.5M) in the 
summer of 2016. For more information about the MAP-21-authorized Low or 
No Emission discretionary research program, contact Sean Ricketson, 
Office of Research, Demonstration and Innovation, at (202) 366-6678 or 
[email protected].
g. Positive Train Control (Section 3028)
    Section 3028 of the FAST Act authorizes grants for positive train 
control. The discretionary program authorizes funding for FY 2017, and 
funds will be used for the installation of positive train control 
systems as required under 49 U.S.C. 20157, which states that Class I 
railroad carriers and each entity providing regularly scheduled 
intercity or commuter rail passenger transportation shall submit to the 
Secretary of Transportation a revised plan for implementing a positive 
train control system by December 31, 2018. The Federal Railroad 
Administration (FRA) will issue the Notice of Funding Availability and 
select the recipients of the positive train control grants. FTA will 
administer the grants once the allocations to recipients are announced.

B. Definitional Changes and New Definitions

    Section 3002 of the FAST Act amended section 5302 to provide new 
definitions and to amend existing definitions that clarify eligibility 
and requirements within FTA's programs. Unless otherwise stated, these 
definitions apply across all FTA programs, and are effective with all 
funds obligated as of the date of this notice even if the funds were 
appropriated in earlier fiscal years. Several important definitional 
changes include:
1. Associated Transit Improvement
    The term associated transit improvement means, with respect to any 
project or an area to be served by a project, projects that are 
designed to enhance public transportation service or use and that are 
physically or functionally related to transit facilities.
    A few minor changes were noted in the definition of associated 
transit improvement. The word functional has been added as a 
description to landscaping and streetscaping. Also, a sentence was 
restructured to clarify the definition of bicycle access in (1)(E) to 
read bicycle access, including bicycle storage shelters and parking 
facilities and the installation of equipment for transporting bicycles 
on public transportation vehicles.

[[Page 7898]]

2. Capital Project
    Several sections under the definition of capital project have been 
amended. Leasing equipment or a facility for use in public 
transportation no longer is subject to regulations that the Secretary 
prescribes or a cost effectiveness test. (See changes to leasing in the 
cross-cutting requirements section of this Notice).
    The construction of space for commercial uses, including the 
outfitting of commercial space is now an eligible expense as a part of 
a joint development project. Language was removed stating that 
construction of space for commercial uses does not include outfitting 
of commercial space (other than intercity bus station or terminal) or a 
part of a public facility not related to public transportation.
    A new provision was added for non-fixed route paratransit 
transportation services. It retains the eligibility for grant 
recipients to use up to 10 percent of a recipient's annual formula 
apportionment under sections 5307 and 5311 for the provision of non-
fixed route Americans with Disabilities (ADA) complementary paratransit 
services at an 80 percent Federal share. Additionally, recipients now 
may use up to 20 percent of the amounts apportioned under sections 5307 
and 5311 for ADA complementary paratransit service at an 80 percent 
Federal share if the recipient demonstrates that the recipient meets at 
least two of the following requirements: (I) Provides an active fixed 
route travel training program that is available for riders with 
disabilities, (II) provides that all fixed route and paratransit 
operators participate in a passenger safety, disability awareness, and 
sensitivity training class on at least a biennial basis, or (III) has 
memoranda of understanding in place with employers and the American Job 
Center to increase access to employment opportunities for people with 
disabilities.
    The definition of a capital project now specifically includes 
associated transit improvements and technological changes or 
innovations to modify low or no emission vehicles (as defined in 
section 5339)(c)) or facilities.
3. Value Capture and Value Capture Revenue
    The term ``value capture'' is a new term in the FAST Act that has 
been in practice for several years. Value capture is a financing 
strategy for recovering the increased property value from property 
located near public transportation resulting from investments in public 
transportation. Under section 5323(s), a recipient of assistance may 
use the revenue generated from value capture financing mechanisms as 
local matching funds for capital projects and operating costs eligible 
under Chapter 53 of title 49, United States Code. FTA will issue 
subsequent guidance on implementing this provision.

C. Repealed and Consolidated Programs in FTA's Authorization

    The FAST Act focuses on improving the efficiency of grant program 
operations by consolidating certain programs and repealing other 
programs. For programs that expired on September 30, 2015, no new 
funding is authorized beyond fiscal year 2015. However, unobligated 
funds appropriated or authorized in FY 2015 and prior years remain 
available for obligation (for the established period of availability 
when appropriated or allocated) and expenditure, and follow program-
specific requirements established under prior authorizations. In 
addition, there are new cross-cutting requirements under the FAST Act 
found in section III.D of this notice that apply to all grants 
obligated in FY 2016.
1. Research, Development, Demonstration and Deployment Program (49 
U.S.C. 5312)
    Formerly the Research, Development, Demonstration, and Deployment 
Program, the FAST Act amends 49 U.S.C. 5312 and renames this section, 
which authorizes FTA's research program, to ``Public Transportation 
Innovation.'' While maintaining the authority for research, 
development, demonstration, deployment, and evaluation activities as 
previously authorized in section 5312, the Low or No Emission Vehicle 
Deployment Program (Lo-No Deployment Program) is no longer authorized 
as a discretionary research-funded activity; however, FTA is currently 
in the process of evaluating eligible proposals submitted in response 
to the NOFA published on September 24, 2015 (closed on November 23, 
2015) and anticipates allocating the FY 2015 appropriations to selected 
projects in the summer of 2016. FTA also continues to work with the 
recipients of the FY 2013-2014 Lo-No Deployment program to implement 
and evaluate vehicle and facilities projects. And, while no longer 
eligible in the research program, grantees can compete under the new 
discretionary authority found in the Bus and Bus Facilities program 
(section 5339) specifically for Low and No Emission vehicle and 
facility projects in FY 2016.
2. Transit Cooperative Research Program (49 U.S.C. 5313)
    The FAST Act repeals section 5313 and moves the authority for the 
cooperative research program to section 5312 (49 U.S.C. 5312(i)) as 
described above.
3. Technical Assistance and Standards Development (49 U.S.C. 5314)
    Formerly Technical Assistance and Standards Development, the FAST 
Act amends 49 U.S.C. 5314 to include new authority and renames the 
section to ``Technical Assistance and Workforce Development.'' In 
addition to funding technical assistance and standards development, 
this section now authorizes FTA's workforce development activities and 
the National Transit Institute (NTI), both formerly found in section 
5322.
    Of particular note, this section now authorizes recipients under 
sections 5307, 5337, and 5339 to use 0.5 percent of their available 
funds to pay for workforce development activities (up to an 80 percent 
Federal share). There is a separate eligibility to use 0.5 percent of 
available funds under the sections above for training at the National 
Transit Institute.
4. Bicycle Facilities (49 U.S.C. 5319)
    Section 5319--Bicycle facilities has been repealed. This section 
had permitted a higher Federal share of up to 95 percent for bicycle 
access and other bicycle capital projects. However, capital projects 
for bicycle access, including bicycle storage shelters and parking 
facilities and the installation of equipment for transporting bicycles 
on public transportation vehicles remains eligible at an 80 percent 
Federal share.
5. Human Resources and Training (49 U.S.C. 5322)
    The FAST Act repeals section 5322 and moves the authority for human 
resources and training to section 5314, as described above.

D. Cross-Cutting Programmatic Requirements and Changes

    The following cross-cutting requirements apply to all FTA programs 
as of the date of this notice.
1. Metropolitan and Statewide Planning
    The planning programs provide funding and procedural requirements 
to metropolitan areas and States for multimodal transportation planning 
that is cooperative, continuous, and comprehensive, resulting in long-
range plans and short-range programs of projects that reflect 
transportation investment priorities. The planning

[[Page 7899]]

programs are jointly administered by FTA and the Federal Highway 
Administration (FHWA), which provides additional funding. There are six 
changes noted below. These requirements will not go into effect until 
FTA and FHWA complete a rulemaking process and issue further guidance. 
The amendments to sections 5305 and 5304:
     Place new emphasis on intercity transportation, including 
intercity buses and intermodal facilities that support intercity 
transportation, and commuter vanpool providers; and
     Clarify the selection and role of the transit 
representation on Metropolitan Planning Organization (MPO) policy 
boards in large urbanized areas. MPOs in urbanized areas designated as 
transportation management areas must include officials of agencies that 
administer or operate major modes of transportation, as well as 
representatives of public transit operators, on MPO policy boards. The 
representative of public transit shall be selected according to the 
bylaws or enabling legislation of the MPO, and the representative of 
public transit may also serve as a representative of a local 
municipality on the MPO board. For additional information please 
reference the Policy Guidance on Metropolitan Planning Organization 
(MPO) Representation Published on July 2, 2014, at http://www.fta.dot.gov/documents/Transit_Rep_Fed_Register.pdf.
     The scope of the planning process should improve the 
resiliency and reliability of the transportation system, in addition to 
the eight pre-existing goals established under MAP-21, and reduce the 
vulnerability of the existing transportation infrastructure to natural 
disasters.
     MPOs and State DOTs should provide public ports, intercity 
bus operators and employer-based commuting programs with a reasonable 
opportunity to comment on transportation plans.
     Place greater emphasis on the congestion management 
process. MPOs that serve transportation management areas shall develop 
a congestion management plan with input from employers, private and 
public transit providers, transportation management associations, and 
organizations that provide low-income individuals transportation access 
to jobs and job related services.
     The Statewide transportation plan must include a 
description of the performance measures and performance targets. State 
DOTs are also required to provide a system performance report 
evaluating the condition and performance of the transportation system.
    In addition to changes in sections 5303 and 5304, FTA notes the 
Metropolitan and Statewide planning processes continue to emphasize a 
performance-based planning process: MPOs and State DOTs must establish 
performance targets that address forthcoming U.S. DOT-issued national 
performance measures that are based on the goals outlined in the 
legislation-safety, infrastructure condition, congestion reduction, 
system reliability, economic vitality, environmental sustainability, 
reduced project delivery delays, transit safety, and transit asset 
management. MPOs also must coordinate their performance targets, to the 
maximum extent practicable, with performance targets set by FTA 
grantees under the new performance measure requirements for safety and 
state of good repair. Transportation Improvement Programs (TIPs) must 
include a description of the anticipated progress toward achieving the 
performance targets resulting from implementation of the TIP. By 
October 1, 2017, the DOT is to provide Congress with a report 
evaluating the effectiveness of performance-based planning and 
assessing the technical capacity of MPOs in smaller areas to undertake 
performance-based planning.
2. Provision of Non-Fixed Route Paratransit Under ADA
    The FAST Act amended the definition of capital projects relative to 
Americans with Disabilities Act (ADA) complementary paratransit 
services in 49 U.S.C. 5302. Specifically, grant recipients that are in 
compliance with applicable requirements of the ADA, including both 
fixed route and demand responsive service, may continue to expend up to 
10 percent of the recipient's annual formula apportionment under 
sections 5307 and 5311 for ADA complementary paratransit service at an 
80 percent Federal share. In addition, grant recipients may now expend 
up to 20 percent of the recipient's annual formula apportionment under 
sections 5307 and 5311 for ADA complementary paratransit service, at an 
80 percent Federal share, if the recipient provides evidence to the 
applicable FTA Regional office that it meets at least two of the 
following requirements:
    (1) Provides an active fixed-route travel training program that is 
available for riders with disabilities.
    (2) Provides that all fixed route and paratransit operators 
participate in a passenger safety, disability awareness, and 
sensitivity training class on at least a biennial basis.
    (3) Have memoranda of understanding in place with employers and the 
American Job Center to increase access to employment opportunities for 
people with disabilities.
    Eligibility for using formula funds at an 80 percent Federal share 
for ADA service is contingent on compliance with ADA requirements for 
both fixed route and demand responsive service. FTA recipients must 
certify compliance with the ADA annually, and are subject to compliance 
review activities conducted by FTA to monitor compliance and correct 
deficiencies.
3. Buy America
    The FAST Act amended the Buy America requirements to provide for a 
phased increase in the domestic content for rolling stock. For FY16 and 
FY17, the cost of components and subcomponents produced in the United 
States must be more than 60 percent of the cost of all components. For 
FY18 and FY19, the cost of components and subcomponents produced in the 
United States must be more than 65 percent of the cost of all 
components. For FY20 and beyond, the cost of components and 
subcomponents produced in the United States must be more than 75 
percent of the cost of all components. There is no change to the 
requirement that final assembly of rolling stock must occur in the 
United States. FTA will be issuing guidance on the implementation of 
the phased increase in domestic content in the near future.
4. Leasing
    The FAST Act amends the definition of Capital project in section 
5302 to remove the requirement that leasing equipment or a facility for 
use in public transportation is subject to regulations limiting those 
leases to those that are more cost effective than purchase or 
construction. FTA will therefore no longer enforce 49 CFR part 639 
Capital Leases. Recipients should therefore refer to leasing 
eligibility under 2 CFR part 200 Uniform Administrative Requirements, 
Cost Principles, and Audit Requirements for Federal Awards, 
specifically part 200.465 Rental costs of real property and equipment.
    Although the regulatory requirements are eliminated, section 3019 
of the FAST Act requires all recipients of capital leases to submit to 
FTA, no later than 3 years after the date on which the lease was 
entered, a report evaluating the overall costs and benefits of leasing 
rolling stock and comparing the expected short-term and long-term

[[Page 7900]]

maintenance costs of leasing versus buying rolling stock.
    Although already eligible under FTA's programs, section 3019 of the 
FAST Act emphasizes that power sources separately installed in and 
removed from a zero emission vehicle may be acquired through capital 
lease.
5. Project Management Oversight
    The FAST Act amended the project management oversight statute, 49 
U.S.C. 5327, to specify that FTA conduct a review of a grantee's 
compliance with its approved project management plan for a major 
capital project on a quarterly basis, rather than monthly, unless the 
grantee is not in compliance with the project management plan and the 
project is at risk of running over budget and behind schedule, in which 
case FTA may conduct more frequent reviews. Section 5327 also requires 
a grantee for a major capital project to submit quarterly updates of 
the project budget and schedule. These changes in oversight practice 
will apply to all major capital projects.
6. Incremental Costs of Art and Non-Functional Landscaping Prohibited
    The FAST Act makes ineligible the incremental costs of 
incorporating art or non-functional landscaping into facilities, 
including the costs of an artist on a design team.
7. Use of Geographic Preferences in Hiring
    Section 415 of Title IV of the FY2016 Consolidated Appropriations 
Act continues the provision in Section 418 of the Consolidated and 
Further Continuing Appropriations Act, 2015, Public Law 113-235 that 
FTA is prohibited from using appropriated funds for the year to 
implement, administer or enforce section 18.36(c)(2) of title 49, Code 
of Federal Regulations, for construction hiring purposes. Section 
18.36(c)(2) prohibits the use of statutorily or administratively 
imposed in-State or local geographical preferences in the evaluation 
bids or proposals. The provisions of 49 CFR 18.36(c)(2) have been 
recodified in substantially similar form at 2 CFR 200.319(b). Although 
Congress did not address the change in codification in Section 415, FTA 
believes that Congress intended to apply section 415 to grants subject 
to 2 CFR 200.319(b). FTA will administer Section 415 in accordance with 
this intent.
    Please note, however, that Section 192 of the FY2016 Consolidated 
Appropriations Act provides that FTA may assist a contract under title 
49 of the United States Code that utilizes a geographic, economic, or 
any other hiring preference on a contract or construction project with 
which the Department of Transportation is assisting, only if the grant 
recipient certifies the following: (1) That except with respect to 
apprentices or trainees, a pool of readily available but unemployed 
individuals possessing the knowledge, skill, and ability to perform the 
work that the contract requires resides in the jurisdiction; (2) that 
the grant recipient will include appropriate provisions in its bid 
document ensuring that the contractor does not displace any of its 
existing employees in order to satisfy such hiring preference; and (3) 
that any increase in the cost of labor, training, or delays resulting 
from the use of such hiring preference does not delay or displace any 
transportation project in the applicable Statewide Transportation 
Improvement Program or Transportation Improvement Program. FTA will 
provide additional guidance on these provisions in the near future.

II. Program-Specific Information

A. Metropolitan Planning Program (49 U.S.C. 5303 and 5305(d))

    Section 5305(d) authorizes Federal funding to support a 
cooperative, continuous, and comprehensive planning program for 
transportation investment decision-making at the metropolitan area 
level. The specific requirements of metropolitan transportation 
planning are set forth in 49 U.S.C. 5303 and further explained in 23 
CFR part 450, as incorporated by reference in 49 CFR part 613, 
Statewide Transportation Planning; Metropolitan Transportation 
Planning. State Departments of Transportation (DOTs) are direct 
recipients of funds allocated by FTA, which are then sub-allocated to 
Metropolitan Planning Organizations (MPOs), for planning activities 
that support the economic vitality of the metropolitan area.
    The metropolitan transportation planning process must establish a 
performance-based approach in which the MPO will develop specific 
performance targets that address transportation system performance 
measures (to be issued by U.S. DOT), where applicable, to use in 
tracking progress towards attaining critical outcomes. These 
performance targets will be established by MPO's in coordination with 
States and transit providers. MPOs will provide a system performance 
report that evaluates the progress of the MPO in meeting the 
performance targets in comparison with the system performance 
identified in prior reports.
    This funding must support work elements and activities resulting in 
balanced and comprehensive intermodal transportation planning for the 
movement of people and goods in the metropolitan area. Comprehensive 
transportation planning is not limited to transit planning or surface 
transportation planning, but also encompasses the relationships among 
land use and all transportation modes, without regard to the 
programmatic source of Federal assistance. Eligible work elements or 
activities include, but are not limited to studies relating to 
management, mobility management, planning, operations, capital 
requirements, and economic feasibility; evaluation of previously funded 
projects; peer reviews and exchanges of technical data, information, 
assistance, and related activities in support of planning and 
environmental analysis among MPOs and other transportation planners; 
work elements and related activities preliminary to and in preparation 
for constructing, acquiring, or improving the operation of facilities 
and equipment; development of coordinated public transit human services 
transportation plans. An exhaustive list of eligible work activities is 
provided in FTA Circular 8100.1C, Program Guidance for Metropolitan 
Planning and State Planning and Research Program Grants, dated 
September 1, 2008. For more about the Metropolitan Planning Program, 
contact Victor Austin, Office of Planning and Environment at (202) 366-
2996 or [email protected].
1. Authorized Amounts
    The FAST Act authorizes $108.14 million in FY 2016, $110.35 million 
in FY 2017, $112.66 million in FY 2018, $115.05 million in FY 2019 and 
$117.49 million in FY 2020 to provide financial assistance for 
metropolitan planning needs under section 5305.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                       Fiscal year                                2016               2017               2018               2019               2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
Funds Authorized.........................................      $108,141,510       $110,347,597       $112,664,897       $115,053,393       $117,492,524
--------------------------------------------------------------------------------------------------------------------------------------------------------
The table above shows the funding amounts authorized for the Metropolitan Planning Program.


[[Page 7901]]

2. FY 2016 Funding Availability
    In FY 2016, $108,141,510 is available for the period October 1, 
2015 through September 30, 2016 to the Metropolitan Planning Program 
(section 5305(d)) to support metropolitan transportation planning 
activities set forth in section 5303. The total amount apportioned for 
the Metropolitan Planning Program to States for use by MPOs in 
urbanized areas (UZAs) is $107,600,802 as shown in the table below, 
after the deduction for oversight (authorized by section 5338).

                 Metropolitan Planning Program--FY 2016
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation....................................    $108,141,510
Oversight Deductions...................................        (540,707)
                                                        ----------------
    Total Apportioned..................................     107,600,803
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    The FAST Act did not change the funding formula. Of the amounts 
authorized in section 5305, 82.72 percent is made available to the 
Metropolitan Planning program. Eighty percent of the funds are 
apportioned on a statutory basis to the States based on the most recent 
decennial Census for each State's UZA population. The remaining 20 
percent is provided to the States based on an FTA administrative 
formula to address planning needs in larger, more complex UZAs. The 
amount published for each State includes the supplemental allocation.
4. Requirements
    The State allocates Metropolitan Planning funds to MPOs in UZAs or 
portions thereof to provide funds for planning projects included in a 
one or two-year program of planning work activities (the Unified 
Planning Work Program, or UPWP) that includes multimodal systems 
planning activities spanning both highway and transit planning topics. 
Each State has either reaffirmed or developed, in consultation with 
their MPOs, an allocation formula among MPOs within the State, based on 
the 2010 Census. The allocation formula among MPOs in each State may be 
changed annually, but any change requires approval by the FTA Regional 
Office before grant approval. Program guidance for the Metropolitan 
Planning Program is found in FTA Circular 8100.1C, Program Guidance for 
Metropolitan Planning and State Planning and Research Program Grants, 
dated September 1, 2008.
5. Period of Availability
    The Metropolitan Planning program funds apportioned in this notice 
are available for obligation during FY 2016 plus three additional 
fiscal years. Accordingly, funds apportioned in FY 2016 must be 
obligated in grants by September 30, 2019. Any FY 2016 apportioned 
funds that remain unobligated at the close of business on September 30, 
2019, will revert to FTA for reapportionment under the Metropolitan 
Planning program.

B. State Planning and Research Program (49 U.S.C. 5304 and 5305(e))

    This program provides financial assistance to States for statewide 
transportation planning and other technical assistance activities, 
including supplementing the technical assistance program provided 
through the Metropolitan Planning program. The specific requirements of 
Statewide transportation planning are set forth in 49 U.S.C. 5304 and 
further explained in 23 CFR part 450 as referenced in 49 CFR part 613, 
Statewide Transportation Planning; Metropolitan Transportation 
Planning; Final Rule. State DOTs are required to reference performance 
measures and performance targets within the Statewide Planning process. 
This funding must support work elements and activities resulting in 
balanced and comprehensive intermodal transportation planning for the 
movement of people and goods. Comprehensive transportation planning is 
not limited to transit planning or surface transportation planning, but 
also encompasses the relationships among land use and all 
transportation modes, without regard to the programmatic source of 
Federal assistance. For more information, contact Victor Austin, Office 
of Planning and Environment at (202) 366-2996 or [email protected].
1. Authorized Amounts
    FAST authorizes $22,590,490 in FY 2016, $23,051,336 in FY 2017, 
$23,535,414 in FY 2018, $24,034,364 in FY 2019 and $24,543,893 in FY 
2020 to provide financial assistance for statewide planning and other 
technical assistance activities under section 5305. As specified in 
law, this represents the 17.28 percent of the amounts authorized for 
section 5305 that are allocated to the Statewide Planning and Research 
program, as shown below.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                       Fiscal year                                2016               2017               2018               2019               2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
Funds Authorized.........................................       $22,590,490        $23,051,336        $23,535,414        $24,034,364        $24,543,893
--------------------------------------------------------------------------------------------------------------------------------------------------------

2. FY 2016 Funding Availability
    In FY 2016, $22,590,490 is available for the period October 1, 2015 
through September 30, 2016 to the State Planning and Research Program 
(section 5305(e)). The total amount apportioned for the State Planning 
and Research Program (SPRP) is $22,477,537 as shown in the table below, 
after the deduction for oversight (authorized by section 5338).

                   Statewide Planning Program--FY 2016
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation....................................     $22,590,490
Oversight Deductions...................................        (112,953)
                                                        ----------------
  Total Apportioned....................................      22,477,537
------------------------------------------------------------------------
States' apportionments for this program are displayed in Table 2.

3. Basis for Formula Apportionment
    The FAST Act did not change the funding formula. Of the amount 
authorized in section 5305, 17.28 percent is allocated to the State 
Planning and Research program. FTA apportions funds to States by a 
statutory formula that is based on the most recent decennial Census 
data available, and the State's UZA population as compared to the UZA 
population of all States.
4. Requirements
    Funds are provided to States for Statewide transportation planning 
programs. These funds may be used for a variety of purposes such as 
planning, technical studies and assistance, demonstrations, and 
management training. In addition, a State may authorize a portion of 
these funds to be used to supplement Metropolitan Planning funds 
allocated by the State to its UZAs, as the State deems appropriate. 
Program guidance for the State Planning and Research program is found 
in FTA Circular 8100.1C, Program Guidance for Metropolitan Planning and 
State Planning and Research Program Grants, dated September 1, 2008.

[[Page 7902]]

5. Period of Availability
    The State Planning and Research program funds apportioned in this 
notice are available for obligation during FY 2016 plus three 
additional fiscal years. Accordingly, funds apportioned in FY 2016 must 
be obligated in grants by September 30, 2019. Any FY 2016 apportioned 
funds that remain unobligated at the close of business on September 30, 
2019 will revert to FTA for reapportionment under the State Planning 
and Research program.

C. Urbanized Area Formula Program (49 U.S.C. 5307)

    Section 5307 authorizes Federal assistance for capital, planning, 
job access and reverse commute projects, and, in some cases, operating 
assistance for public transportation in urbanized areas. An urbanized 
area (UZA) is an area with a population of 50,000 or more that has been 
defined and designated as such by the U.S. Census Bureau. Program funds 
are apportioned to urbanized areas through a statutory formula. In 
addition, $30 million is allocated each year under this program to 
passenger ferry projects through a discretionary funding competition.
    For more information about the Urbanized Area Formula Program, 
contact Tara Clark, Office of Transit Programs, at (202) 366-2623 or 
[email protected].
1. Authorized Amounts
    The FAST Act authorizes $4,538,905,700 in FY 2016, $4,629,683,814 
in FY 2017, $4,726,907,174 in FY 2018, $4,827,117,606 in FY 2019 and 
$4,929,452,499 in FY 2020 to provide financial assistance for urbanized 
areas under section 5307. Of the amount authorized and appropriated for 
section 5307 in each year, $30 million is set aside for the competitive 
discretionary Passenger Ferry Grant Program, 0.5 percent will be 
apportioned to eligible States for State Safety Oversight (SSO) Program 
grants, and 0.75 percent will be set aside for program oversight.
    Further information on the Passenger Ferry Discretionary Program is 
provided in section III of this notice. Further information on the 0.5 
percent apportionment to States for the State Safety Oversight Program 
is provided in section IV.N. of this notice.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                       Fiscal year                                2016               2017               2018               2019               2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
Funds Authorized.........................................    $4,538,905,700     $4,629,683,814     $4,726,907,174     $4,827,117,606     $4,929,452,499
--------------------------------------------------------------------------------------------------------------------------------------------------------

2. FY 2016 Funding Availability
    A total of $4,538,905,700 is available for the section 5307 program 
for FY 2016. The total amount apportioned to urbanized areas is 
$4,911,077,833 which includes the addition of amounts apportioned to 
UZAs pursuant to the Section 5340 Growing States and High Density 
States Formula factors. This amount excludes the set-aside for the 
Passenger Ferry Discretionary Program, apportionments under the State 
Safety Oversight Program, and oversight (authorized by section 5338), 
as shown in the table below:

                 Urbanized Area Formula Program--FY 2016
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation..................................               \a\
                                                         $4,538,905,700
Oversight Deduction..................................       (34,041,793)
Ferry Discretionary Program..........................       (30,000,000)
State Safety Oversight Program.......................       (22,694,529)
Section 5340 High Density States.....................       263,964,457
Section 5340 Growing States..........................       194,943,998
                                                      ------------------
  Total Apportioned..................................     4,911,077,833
------------------------------------------------------------------------
\a\ Includes 1.5 percent set-aside for Small Transit Intensive Cities
  Formula.
Table 3 displays the amounts apportioned under the Urbanized Area
  Formula Program.

3. Basis for Formula Apportionment
    FTA apportions Urbanized Area Formula Program funds based on 
statutory formulas. Congress established four separate formulas that 
are used to apportion portions of the available funding: The section 
5307 Urbanized Area Formula Program formula, the Small Transit 
Intensive Cities (STIC) formula, the Growing States and High Density 
States formula, and a formula based on low-income population.
    The FAST Act did not make changes to the apportionment formula for 
FY 2016 through 2018. Section 5336(h) states that 3.07 percent of 
section 5307 funds available are for apportionment are allocated on the 
basis of low-income persons residing in urbanized areas, with 25 
percent of these funds allocated to areas below 200,000 in population 
and the remaining 75 percent allocated to areas 200,000 and over in 
population. The percentage of funds allocated on the basis of Small 
Transit Intensive Cities (STIC) factor remains 1.5 percent. However, 
the STIC factor will increase to 2.0 percent in FY 2019. Finally, The 
0.5 percent takedown for State Safety Oversight grant program still 
applies.
    Consistent with prior apportionment notices, Table 3 shows a total 
section 5307 apportionment for each UZA, which includes amounts 
apportioned under each of these formulas. Detailed information about 
the formulas is provided in Table 4. For technical assistance purposes, 
the UZAs that receive STIC funds are listed in Table 6. FTA will 
provide breakouts of the funding allocated to each UZA under these 
formulas upon request to the FTA Regional Office.
a. Section 5307--Urbanized Area Formula
    For UZAs between 50,000 and 199,999 in population, the section 5307 
formula is based on population and population density. For UZAs with 
populations of 200,000 and more, the formula is based on a combination 
of bus revenue vehicle miles, bus passenger miles, bus operating costs, 
fixed guideway vehicle revenue miles, and fixed guideway route miles, 
as well as population and population density. The Urbanized Area 
Formula is defined in 49 U.S.C. 5336.
    To calculate a UZA's FY 2016 apportionment, FTA used population and 
population density statistics from the 2010 Census and validated 
mileage and transit service data from transit providers' 2014 National 
Transit Database (NTD) Report Year (when applicable). Consistent with 
section 5336(b), FTA has included 27 percent of the fixed guideway 
directional route miles and vehicle revenue miles from eligible 
urbanized area transit systems, but which were attributable to rural 
areas outside of the urbanized areas from which the system receives 
funds. FTA has calculated dollar unit values for the formula factors 
used in the Urbanized Area Formula Program apportionment calculations. 
These values represent the amount of money each unit of a factor is 
worth in this year's apportionment. The unit values change each year, 
based on all of the data used to calculate the apportionments, as well 
as the amount appropriated by Congress for the apportionment. The 
dollar unit values for FY 2016 are displayed in Table 5. To replicate 
the basic formula component of a UZA's apportionment, multiply the 
dollar unit value by the appropriate formula factor (i.e., the 
population,

[[Page 7903]]

population x population density), and when applicable, data from the 
NTD (i.e., route miles, vehicle revenue miles, passenger miles, and 
operating cost).
b. Small Transit Intensive Cities Formula
    Under the STIC formula, FTA apportions 1.5% of the funds made 
available for section 5307 to UZAs that are under 200,000 in population 
and have public transportation service that operates at a level equal 
to or above the industry average for UZAs with a population of at least 
200,000, but not more than 999,999. STIC funds are apportioned on the 
basis of one or more of six performance categories: Passenger miles 
traveled per vehicle revenue mile, passenger miles traveled per vehicle 
revenue hour, vehicle revenue miles per capita, vehicle revenue hours 
per capita, passenger miles traveled per capita, and passengers per 
capita. In FY 2019, the STIC set aside will increase from 1.5% to 2%.
    The data used to determine a UZA's eligibility under the STIC 
formula and to calculate the STIC apportionments was obtained from the 
NTD reports for the 2014 reporting year. Because performance data 
change with each year's NTD reports, the UZAs eligible for STIC funds 
and the amount each receives may vary each year. UZAs that received 
funding through the STIC formula for FY 2016 are listed in Table 6.
c. Section 5340--Growing States and High Density States Formula
    FTA also apportions funds to qualifying UZAs and States according 
to the section 5340 Growing States and High Density States formula, as 
shown in Table 3. For fiscal year 2016 FTA apportions $194,943,998 to 
UZAs in Growing States and $263,964,457 to UZAs in High Density States. 
More information on this program and its formula is found in section 
IV.P. of this notice.
d. Low-Income Population
    The FAST Act does not change the formula factor for low-income 
population. Of the amount authorized and appropriated for the Urbanized 
Area Formula Program in each year, 3.07 percent is apportioned on the 
basis of low income population. A total of $139,344,405 has been 
apportioned to UZAs based on this formula for FY 2016, as described 
below.
    As specified in statute, FTA apportions 75 percent of the available 
funds to UZAs with a population of 200,000 or more. Funds are 
apportioned based on the ratio of the number of low income individuals 
in each UZA to the total number of low income individuals in all 
urbanized areas of that size. FTA apportions the remainder of the funds 
(25 percent) to UZAs with populations of less than 200,000, according 
to an equivalent formula. The low income populations used for this 
calculation were based on the American Community Survey (ACS) data set 
for 2009-2013. This information is updated by the Census Bureau 
annually.
4. Eligible Expenses
    Eligible activities include planning, engineering design and 
evaluation of transit projects and other technical transportation-
related studies; capital investments in bus and bus-related activities 
such as replacement of buses, overhaul and rebuilding of buses; crime 
prevention and security equipment; construction of maintenance and 
passenger facilities; and capital investments in new and existing fixed 
guideway systems including rolling stock, overhaul and rebuilding of 
vehicles, track, signals, communications, and computer hardware and 
software. All preventive maintenance and some Americans with 
Disabilities Act complementary paratransit service costs are considered 
capital costs. For urbanized areas with populations less than 200,000, 
operating assistance is an eligible expense. In areas over 200,000 in 
population, operating assistance is an eligible expense if the special 
rule (100 Bus Rule) at 49 U.S.C. 5307(a)(2) applies. Job Access and 
Reverse Commute activities remain eligible under the program.
    In addition, recipients may now use up to one-half of one percent 
of their section 5307 funds to support workforce development activities 
at an 80 percent Federal share; the eligible workforce development 
activities are defined in section 5314; see Section IV.K. of this 
notice for more information. This provision is new in section 5314 and 
is in addition to the one-half of one percent that recipients may use 
for training activities with the National Transit Institute.
5. Requirements
    Program guidance for the Urbanized Area Formula Program is found in 
FTA Circular 9030.1E, Urbanized Area Formula Program: Program Guidance 
and Application Instructions, dated January 16, 2014, and is 
supplemented by additional information and changes provided in this 
notice and that may be posted to section 5307 Web page. FTA is in the 
process of updating the program circular to incorporate changes 
resulting from FAST Act amendments to 49 U.S.C. 5307.
    Key program requirements and changes that apply to all programs are 
addressed in section III.D. of this notice, ``Cross-Cutting 
Programmatic Requirements and Changes.'' The following subsections 
outline several important program requirements and changes that apply 
specifically to the Urbanized Area Formula Program.
    In FY 2016, FTA will apportion funds to a new large UZA for which a 
designated recipient has not yet been selected. These funds will become 
available for grants once FTA has received documentation of the 
selection of a designated recipient (for the Lake Tahoe UZA identified 
in section 5303(r) Bi-State Metropolitan Planning Organization).
6. Period of Availability
    Funds made available under Section 5307 are available for 
obligation during the year of apportionment plus five additional years. 
This is unchanged under the FAST Act. Accordingly, funds apportioned in 
FY 2016 must be obligated in grants by September 30, 2021. Any FY 2016 
apportioned funds that remain unobligated at the close of business on 
September 30, 2021 will revert to FTA for reapportionment under the 
Urbanized Area Formula Program.
    Funds allocated under the Passenger Ferry discretionary program 
follow the same period of availability as section 5307. Accordingly, 
funds allocated in FY 2016 must be obligated in grants by September 30, 
2021. Any of the funds allocated in FY 2016 that remain unobligated at 
the close of business on September 30, 2021 will revert to FTA for 
reallocation under the Passenger Ferry program.
7. What's New and Other Program Highlights
a. Special Rule for Operating Assistance in Large Urbanized Areas
    The FAST Act amended the special rule at 49 U.S.C. 5307(a)(2) to 
add demand response service. The special rule allows recipients in 
urbanized areas with populations of 200,000 or above and those that 
operate 100 or fewer buses in fixed route service or demand response, 
excluding ADA complementary paratransit service, during peak hours, to 
receive a grant for operating assistance subject to a maximum amount 
per system as explained below:
    i. Public transportation systems that operate a minimum of 76 buses 
and a maximum of 100 buses in fixed route

[[Page 7904]]

service or demand response, excluding ADA complementary paratransit 
service, during peak service hours may receive operating assistance in 
an amount not to exceed 50 percent of the share of the apportionment 
that is attributable to such systems within the urbanized area, as 
measured by vehicle revenue hours.
    ii. Public transportation systems that operate 75 or fewer buses in 
fixed route service or demand response, excluding ADA complementary 
paratransit service, during peak service hours may receive operating 
assistance in an amount not to exceed 75 percent of the share of the 
apportionment that is attributable to such systems within the urbanized 
area, as measured by vehicle revenue hours.
    iii. A list of eligible recipients and their maximum operating 
assistance amounts for FY 2016 is shown in Table 3-A. FTA identified 
the systems eligible to use this provision and their maximum amounts 
for FY 2016 using data from the NTD for reporting year 2014. Operating 
assistance requires a 50 percent local match.
    In accordance with section 5307(a)(2), FTA has calculated a fixed 
annual cap on operating assistance for each eligible agency that 
provides service in a large UZA. The cap is determined by dividing the 
UZA's apportionment by the total number of vehicle revenue hours 
reported from all public transportation operators and from all transit 
modes in the UZA, and then by multiplying this quotient by the number 
of bus vehicle revenue hours operated in the UZA by the eligible 
system. The result is the proportional share of the apportionment that 
is attributable to the qualifying system, as measured by vehicle 
revenue hours. This cap is calculated based on the FY 2016 
apportionment for an eligible provider's UZA. Eligible systems 
operating in more than one UZA over 200,000 in population will receive 
separate operating caps from each UZA in which the system operates. The 
FY 2016 Apportionment Table 3A includes all eligible general public 
demand response operators.
    In determining the amount of operating assistance available for 
specific systems in urbanized areas under the Special Rule, public 
transportation systems may execute a written agreement with one or more 
other public transportation systems within the urbanized area to 
allocate funds by a method other than by measuring vehicle revenue 
hours. Systems within the urbanized area may combine their individual 
operating assistance caps and allocate the combined funds using a 
method that is agreed upon by all of the systems. The method used 
should be documented in a written agreement, signed by all parties, and 
transmitted to FTA as a part of the split letter.
b. Equipment and Facilities Maintenance
    Section 5307(c) is amended to require recipients to maintain 
equipment and facilities in accordance with the recipient's transit 
asset management plan.
c. Associated Transit Improvements
    Designated recipients in UZAs with populations of 200,000 or more 
are no longer required to expend not less than one percent of the 
section 5307 funds apportioned to the UZA be set aside for associated 
transit improvements. Designated recipients must still submit an annual 
report listing projects carried out in the preceding year with these 
funds as part of the Federal fiscal year's final quarterly progress 
report in TrAMS. The report should include the following elements: (1) 
Grantee name; (2) UZA name and number; (3) FTA project number; (4) 
associated transit improvement category; (5) brief description of 
improvement and progress towards project implementation; (6) activity 
line item code from the approved budget; and (7) amount awarded by FTA 
for the project. The list of associated transit improvement categories 
and activity line item (ALI) codes may be found in the table of Scope 
and ALI codes in TrAMS.
    It is the responsibility of the recipients in a UZA to identify 
associated transit improvement projects that will receive funding from 
the Urbanized Area Formula Program.
d. Increased Cap on Spending for ADA Paratransit Service
    As under previous authorizations, recipients that are in compliance 
with the requirements of the ADA may use 10 percent of their annual 
formula apportionment for ADA paratransit service, funded at an 80 
percent Federal share. The FAST Act increases the spending cap for ADA 
paratransit service to 20 percent of a recipient's annual formula 
apportionment under certain conditions. See sections III.D. and V.D for 
more information on this provision.
e. Eligibility for Safety Certification Training
    Effective May 2015, FTA established an Interim Safety Certification 
Training Program. Recipients of section 5307 funds are permitted to use 
not more than 0.5 percent of their formula funds under the Urbanized 
Area Formula Program to pay not more than eighty percent of the cost of 
participation for an employee who is directly responsible for safety 
oversight to participate in public transportation safety certification 
training. The interim program will remain in place until the effective 
date of the final rule. FTA published a Notice of Proposed Rulemaking 
(NPRM) for this program on December 3, 2015. Comments were due on 
February 1, 2016.

D. Fixed Guideway Capital Investment Grant Program (49 U.S.C. 5309)

    The Capital Investment Grant (CIG) Program includes four types of 
eligible projects--New Starts projects, Small Starts projects, Core 
Capacity Improvement projects, and Programs of Interrelated Projects. 
Funding is provided for construction of: (1) New fixed guideway systems 
or extensions to existing fixed guideway systems such as rapid rail 
(heavy rail), commuter rail, light rail, trolleybus (using overhead 
catenary), cable car, passenger ferries, and bus rapid transit 
operating on an exclusive transit lane for the majority of the corridor 
length that also includes features that emulate the services provided 
by rail fixed guideway including defined stations, traffic signal 
priority for public transit vehicles, and short headway bi-directional 
service for a substantial part of weekdays and weekends; (2) corridor-
based bus rapid transit service that does not operate on an exclusive 
transit lane but includes features that emulate the services provided 
by rail fixed guideway including defined stations, traffic signal 
priority for public transit vehicles, and short headway bi-directional 
services for a substantial part of weekdays; (3) projects that expand 
the capacity by at least 10 percent of an existing fixed guideway 
corridor that is at capacity today or will be in five years; and (4) 
programs of two or more projects as described above that have logical 
connectivity with one another and will all begin construction in a 
reasonable timeframe.
    Projects become candidates for funding under the Capital Investment 
Grant program by successfully completing steps in the process defined 
in section 5309 and obtaining a satisfactory rating under the 
statutorily-defined criteria. For New Starts and Core Capacity 
Improvement projects, the steps in the process include project 
development, engineering, and construction. For Small Starts projects 
the steps in the process include project development and construction. 
For

[[Page 7905]]

Programs of Interrelated Projects, the steps in the process depend on 
the combination of project types included. New Starts and Core Capacity 
Improvement projects receive construction funds from the program 
through a full funding grant agreement (FFGA) that defines the scope of 
the project and specifies the total multi-year Federal commitment to 
the project. Small Starts projects receive construction funds through a 
single year grant or an expedited grant agreement that defines the 
scope of the project and specifies the Federal commitment to the 
project.
    For more information about the Capital Investment Grant program 
contact Elizabeth Day, Office of Capital Project Development, at (202) 
366-5159 or [email protected]. For information about published 
allocations contact Eric Hu, Office of Transit Programs, at (202) 366-
0870 or [email protected].
1. Authorized Amounts
    The FAST Act authorizes $2,301,785,760 for FY 2016 through FY 2020 
for the Capital Investment Grant program.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                       Fiscal year                                2016               2017               2018               2019               2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
Funds Authorized.........................................    $2,301,785,760     $2,301,785,760     $2,301,785,760     $2,301,785,760     $2,301,785,760
--------------------------------------------------------------------------------------------------------------------------------------------------------

2. FY 2016 Funding Availability
    Although the program is authorized at $2,301,785,760 for FY 2016, 
the Appropriations Act makes $2,177,000,000 available for the section 
5309 program for FY 2016. After the oversight deduction, $2,155,230,000 
is available for eligible projects under the program.

                        Name of Program--FY 2016
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation..................................    $2,177,000,000
Oversight Deduction..................................       (21,770,000)
                                                      ------------------
  Total Apportioned..................................     2,155,230,000
------------------------------------------------------------------------

3. Basis for Allocation
    Funds are allocated on a discretionary basis and subject to program 
evaluation.
4. Eligible Expenses
    See beginning of section D above.
5. Requirements
    FTA will be completing a rulemaking and interim policy guidance 
documents for the Capital Investment Grant program to implement the 
changes made in FAST. Project sponsors should reference the FTA Web 
site at www.fta.dot.gov for the most current Capital Investment Grant 
program policy guidance to learn what is required to enter and advance 
through the program. Grant-related guidance is found in FTA Circular 
9300.1B, Capital Investment Grant Program Guidance and Application 
Instructions, November 1, 2008; and C5200.1A, Full Funding Grant 
Agreement Guidance, December 5, 2002, which will be updated in the 
future to incorporate the changes made by the FAST Act.
6. Period of Availability
    The FAST Act shortened the period of availability for section 5309 
capital investment grant program funds from five years to four years, 
which is the fiscal year in which the amount is made available plus 
three additional years. Therefore, funds for a project identified in FY 
2016 must be obligated for the project by September 30, 2019. Section 
5309 funds that remain unobligated after four fiscal years to the 
projects for which they were originally designated may be made 
available for other section 5309 projects.
7. What's New and Other Program Highlights
a. New Starts and Core Capacity
    The FAST Act amended the Capital Investment Grant Program (CIG) by 
changing slightly the eligibility parameters for New and Small Starts 
projects as described below, allowing joint intercity rail/public 
transportation projects to be eligible, limiting the maximum CIG share 
for New Starts projects to 60 percent, and clarifying how Programs of 
Interrelated Projects are to be evaluated and rated.
    Under 49 U.S.C. 5309, as amended by the FAST Act, New Starts 
projects are defined as projects with a total capital cost of $300 
million or greater or that are seeking $100 million or more in section 
5309 funding. Previously, these thresholds were $250 million and $75 
million respectively. Eligible New Starts projects are new fixed-
guideway systems, such as rapid rail (heavy rail), commuter rail, light 
rail, streetcars, trolleybus (using overhead catenary), cable car, 
passenger ferries, and fixed guideway bus rapid transit, or an 
extension of any of these systems. Fixed guideway bus rapid transit is 
defined as operating on an exclusive transit lane for the majority of 
the corridor length and that also includes features that emulate the 
services provided by rail fixed guideway including defined stations, 
traffic signal priority for public transit vehicles, and short headway 
bi-directional service for a substantial part of weekdays and weekends.
    Small Starts projects are defined as projects with a total capital 
cost less than $300 million and that are seeking less than $100 million 
in section 5309 funding. Previously, these thresholds were $250 million 
and $75 million respectively. Eligible Small Starts projects are those 
mentioned for the New Starts program, as well as corridor-based bus 
rapid transit projects that do not operate on a separated fixed 
guideway but include features that emulate the services provided by 
rail fixed guideway including defined stations, traffic signal priority 
for public transit vehicles, and short headway bi-directional services 
for a substantial part of weekdays. The previous authorization also 
required substantial, bi-directional service on weekends for corridor-
based bus rapid transit projects but the FAST Act amended 49 U.S.C. 
5309 to remove that requirement.
    Core Capacity Improvement projects are defined as substantial, 
corridor-based investments in existing fixed guideway systems that are 
at capacity today or will be in five years. A Core Capacity Improvement 
project must increase the capacity of the existing fixed guideway 
system in the corridor by at least 10 percent. Core Capacity projects 
cannot include elements designed to maintain a state of good repair. 
This was not changed from the eligibility under MAP-21.
    Additionally, the FAST Act amends section 5309 to define a Program 
of Interrelated Projects as the simultaneous development of two or more 
New Starts projects, Small Starts projects, or Core Capacity projects 
or any combination thereof. The projects in the Program must have 
logical connectivity to one another and construction must begin on the 
projects in the Program in a reasonable timeframe. Programs of 
Interrelated Projects may also include non-federally funded projects, 
which can count as match toward the overall Program. FTA is required to 
evaluate and rate a Program of Interrelated Projects as a whole rather 
than rating the individual projects in the Program. The FAST Act 
amended the evaluation

[[Page 7906]]

criteria in 49 U.S.C. 5309(i) that FTA must use when developing the 
ratings, indicating that if the Program of Interrelated Projects 
includes a combination of project types, the New Starts criteria should 
be used. Annually FTA must review the Program of Interrelated Projects 
to ensure it is adhering to its schedule.
    The number of steps in the process for projects has not changed. 
For New Starts and Core Capacity Improvement projects, the steps in the 
process include project development, engineering, and construction. For 
Small Starts projects the steps in the process include project 
development and construction. FTA must evaluate and rate projects 
seeking section 5309 funding according to statutorily defined criteria 
at various steps in the process. There is a new provision that allows 
for an optional early rating for Small Starts projects after the 
completion of the National Environmental Policy Act (NEPA). FTA will 
implement amendments to 49 U.S.C. 5309 through rule-making and future 
policy guidance, which will be developed through a notice and comment 
process.
b. Expedited Project Delivery for Capital Investment Grants Pilot 
Program
    The FAST Act repealed the pilot program with a similar name 
authorized under MAP-21 and replaced it with this new pilot program at 
section 3005(b) of the Fast Act. Eligible projects for the pilot 
program include New Starts, Small Starts, or Core Capacity improvement 
projects that have not yet received a full funding grant agreement. 
However the definitions of New Starts, Small Starts, and Core Capacity 
differ slightly from those used in the Capital Investment Grant 
program.
    A New Starts project under the pilot program is defined as a 
project with a total capital cost of $300 million or greater or that is 
seeking $75 million or more in funding from the pilot program. A Small 
Starts project under the pilot program is defined as a project with a 
total capital cost less than $300 million and that is seeking less than 
$75 million in funding from the pilot program. A Core Capacity 
Improvement project under the pilot program is defined as a 
substantial, corridor-based investment in an existing fixed guideway 
system that is at capacity today or will be in five years. The Core 
Capacity Improvement project must increase the capacity of the existing 
fixed guideway system in the corridor by at least 10 percent. It can 
include elements designed to maintain a state of good repair.
    The FAST Act allows for up to eight projects to be selected for the 
pilot program. Projects must be supported at least in part through a 
public-private partnership, but must be operated and maintained by 
employees of an existing provider of fixed guideway or bus rapid 
transit services in the area. The maximum Federal funding provided to 
projects selected for the pilot program is 25 percent.
    The FAST Act also requires that FTA determine a proposed pilot 
project is justified based on its mobility improvements, environmental 
benefits, congestion relief, economic development effects, and 
estimated ridership and that it is supported by an acceptable degree of 
local financial commitment. FTA will publish guidance in a future 
Federal Register notice describing the process for project sponsors to 
apply to FTA for consideration as a pilot project.

E. Enhanced Mobility of Seniors and Individuals With Disabilities 
Program (49 U.S.C. 5310)

    The Enhanced Mobility of Seniors and Individuals with Disabilities 
Program provides formula funding apportioned to direct recipients: 
States for rural (under 50,000) and small urban areas (50,000-200,000); 
and designated recipients chosen by the Governor of the State for large 
urban areas (populations of 200,000 or more); or a State or local 
governmental entity that operates a public transportation service. The 
5310 program provides capital and operating assistance for improving 
the mobility for seniors and individuals with disabilities by removing 
barriers to transportation service and expanding transportation 
mobility options. This program supports transportation services 
planned, designed, and carried out to meet the special transportation 
needs of seniors and individuals with disabilities in all areas.
    This program provides funds to: (1) Serve the special needs of 
transit-dependent populations beyond traditional public transportation 
service, where public transportation is insufficient, inappropriate, or 
unavailable; (2) projects that exceed the requirements of the Americans 
with Disabilities Act (ADA); (3) project that improve access to fixed 
route service and decrease reliance on complementary paratransit; and 
(4) projects that are alternatives to public transportation. For more 
information about the section 5310 program, contact Danielle Nelson, 
Office of Transit Programs, at (202) 366-2160 or 
[email protected].
1. Authorized Amounts
    The FAST Act authorizes $264,949,400 in FY 2016, $271,208,388 in FY 
2017, $277,090,764 in FY 2018, $283,146,188 in FY 2019 and $289,074,688 
in FY 2020 for the Enhanced Mobility of Seniors and Individuals with 
Disabilities formula program. These amounts include funding for the 
discretionary pilot program as shown below.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                          Fiscal year                                 2016              2017              2018              2019              2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
5310 Formula Grants...........................................      $262,949,400      $268,208,388      $273,840,764      $279,646,188      $285,574,688
Discretionary Pilot Program...................................         2,000,000         3,000,000         3,250,000         3,500,000         3,500,000
                                                               -----------------------------------------------------------------------------------------
    5310 Total................................................       264,949,400       271,208,388       277,090,764       283,146,188       289,074,688
--------------------------------------------------------------------------------------------------------------------------------------------------------

2. FY 2016 Funding Availability
    In FY 2016, $262,949,400 is available for formula funding and 
$2,000,000 for the discretionary pilot program. Total available funding 
for the section 5310 Program for FY 2016 is $263,634,653 after the 
oversight deduction as shown in the table below.

                  Section 5310 Formula Program--FY 2016
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation....................................    $262,949,400
Oversight Deductions (oversight 0.5%)..................      (1,314,747)
                                                        ----------------
Total Apportioned......................................     261,634,653
Discretionary Pilot Program............................       2,000,000
                                                        ----------------
  Total Apportioned....................................     263,634,653
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    Sixty percent of the funds are apportioned among designated 
recipients for urbanized areas with a population of 200,000 or more

[[Page 7907]]

individuals. Twenty percent of the funds are apportioned among the 
States for their urbanized areas with a population of at least 50,000 
but less than 200,000. Twenty percent of the funds are apportioned 
among the States for their rural areas, areas with a population less 
than 50,000. Census Data on Older Adults and People with Disabilities 
is used for the Section 5310 Enhanced Mobility of Older Adults and 
People with Disabilities Apportionments. To view the Section 5310 table 
which displays the amounts apportioned under the Enhanced Mobility of 
Seniors and Individuals with Disabilities Program click here: http://www.fta.dot.gov/12853_13935.html.
    Under the section 5310 formula, funds are allocated using Census 
data on seniors (i.e., persons 65 and older) and people with 
disabilities. However, beginning in 2010, the Census Bureau stopped 
collecting this demographic information on as part of its decennial 
census. Data on seniors and people with disabilities is now only 
available from the American Community Survey (ACS), which is conducted 
and published on a rolling basis. FTA's FY 2016 section 5310 
apportionments incorporate ACS data published in December 2014. Data on 
seniors comes from the ACS 2009-2013 five-year data set, Table B01001, 
``Sex by Age''. Data on persons with disabilities comes from the ACS 
2009-2013 five-year data set, Table S.1810, ``Disability 
Characteristics.''
4. Eligible Expenses
    At least 55 percent of program funds must be used on capital or 
``traditional'' 5310 project such as buses and vans; wheelchair lifts, 
ramps, and securement devices; transit-related information technology 
systems including scheduling/routing/one-call systems; and mobility 
management programs. The acquisition of transportation services under a 
contract, lease, or other arrangement is also eligible. Both capital 
and operating costs associated with contracted service are eligible 
capital expenses. User-side subsidies are considered one form of 
eligible arrangement. Funds may be requested for contracted services 
covering a time period of more than one year. The capital eligibility 
of acquisition of services is limited to the section 5310 program.
    The remaining 45 percent is for additional ``traditional'' and 
other ``nontraditional'' projects. This includes projects eligible 
under the former 5317 New Freedom program, described as: Capital and 
operating expenses for new public transportation services and 
alternatives beyond those required by the ADA, designed to assist 
individuals with disabilities and seniors.
5. Requirements
a. Eligible Recipients
    Eligible recipients include States for rural and small urban areas 
and designated recipients chosen by the Governor of the State for large 
urban areas; or a State or local governmental entity that operates a 
public transportation service. For urbanized areas less than 200,000 in 
population and in the rural areas, the State is the designated 
recipient for section 5310. Current section 5310 designations remain in 
effect until changed by the Governor of a State by officially notifying 
the appropriate FTA regional administrator of re-designation.
    In urbanized areas over 200,000 in population, the recipient 
charged with administering the section 5310 Program must be officially 
designated in accordance with the planning process, by the Governor of 
a State, responsible local officials, and publicly owned operators of 
public transportation prior to grant award (See definition of 
designated recipient, 49 U.S.C. 5302(4)). Designated recipients are 
responsible for administering the program. Responsibilities include: 
Notifying eligible local entities of funding availability; developing 
project selection processes; determining project eligibility; 
developing the program of projects; and ensuring that all subrecipients 
comply with Federal requirements.
    Although FTA will only award grants to the eligible recipients for 
the program, there are other entities eligible to receive funding as 
subrecipients. These include private nonprofit agencies, public bodies 
approved by the state to coordinate services for seniors and people 
with disabilities, or public bodies which certify to the Governor that 
no nonprofit organizations or associations are readily available in an 
area to provide the service.
b. Local Match
    The matching requirements for this program remain the same; capital 
assistance is provided on an 80 percent Federal share, 20 percent local 
share. Operating assistance requires a 50 percent match. Funds provided 
under other Federal programs (other than those of the DOT, with the 
exception of the Federal Lands Transportation Program and Tribal 
Transportation Program established by sections 202 and 203 of title 23 
U.S.C.) may be used for local match for funds provided under section 
5310, and revenue from service contracts may be used as local match.
c. Planning and Consultation
    The coordinated planning provision requires that all projects be 
included in the local coordinated human service-public transportation 
plan.
    FTA requires the following elements, at a minimum, be included in 
the plans:
    i. An assessment of available services that identifies current 
transportation providers (public, private, and nonprofit);
    ii. An assessment of transportation needs for individuals with 
disabilities and seniors;
    iii. Strategies, activities, and/or projects to address the 
identified gaps between current services and needs, as well as 
opportunities to achieve efficiencies in service delivery; and,
    iv. Priorities for implementation based on resources (from multiple 
program sources), time, and feasibility for implementing specific 
strategies and/or activities identified.
    Additionally, the plan must be developed and adopted with 
representation from seniors, individuals with disabilities, 
representatives of public, private, nonprofit transportation and human 
services providers, and other members of the public. Recipients must 
certify that projects were selected from this process and must make 
reference to the plan in the program of projects, which is described 
below.
d. State and Project Management Plans
    FTA will continue to require States, designated recipients, and 
State or local governmental entities that operate a public 
transportation service who are responsible for implementing the section 
5310 program to document their approach to managing the program. The 
primary purposes of Management Plans are to serve as the basis for FTA 
management reviews of the program, and to provide public information on 
the administration of the programs.
e. Program of Projects (POP)
    Designated recipients are required to develop a Program of Projects 
(POP) with the grant application and submit it to the FTA Regional 
Office. The POP should be developed with respect to the coordinated 
plan, long range plan, and the transportation improvement plan.
    For additional guidance in developing the required POP, recipients 
can use Chapter IV of the FTA Circular 9070.1G, Enhanced Mobility of 
Seniors and Individuals with Disabilities Program Guidance and 
Application Instructions, dated July 7, 2014.

[[Page 7908]]

6. Period of Availability
    For Enhanced Mobility of Seniors and Individuals with Disabilities 
Program funds apportioned under this notice, FTA has administratively 
set the period of availability to three years, which includes the year 
of apportionment plus two additional years. Accordingly, funds 
apportioned in FY 2016 must be obligated in grants by September 30, 
2018. Any FY 2016 apportioned funds that remain unobligated at the 
close of business on September 30, 2018 will revert to FTA for 
reapportionment among the States and urbanized areas.
7. What's New and Other Program Highlights
    Under the FAST Act, 49 U.S.C. 5310(a) is amended to allow a State 
or local governmental entity that operates a public transportation 
service and is eligible to receive direct grants under 5311 or 5307 to 
be a direct recipient for Section 5310 funds.
    The FAST Act amends Section 5310 to require FTA to collect best 
practices for dissemination to the public transportation industry 
related to innovation, program models, new service delivery options, 
performance measure findings, and transit cooperative research program 
reports. FTA will undertake these activities through the National Aging 
and Disability Transportation Center (NADTC).
    Recipients may continue to use a competitive selection process to 
select projects, but it is not required. A State may transfer 
apportioned funds between small urbanized areas and rural areas if it 
can certify that the needs are being met in the area to which the funds 
were originally apportioned. The State can transfer the funds (rural 
and small urbanized area) to any area within the state if a statewide 
program for section 5310 is established. There are no administrative or 
statutory provisions to permit transferring section 5310 funds to other 
FTA programs nor is there a provision for large urbanized areas to 
transfer their funds to the State.
    Section 5310 program recipients may continue to partner with meal 
delivery programs such as the OAA-funded meal programs (to find local 
programs, visit: www.Eldercare.gov) and the USDA Summer Food Service 
Program http://www.fns.usda.gov/sfsp/summer-food-service-program-sfsp. 
Transit service providers receiving 5310 funds may coordinate and 
assist in providing meal delivery services on a regular basis as long 
as this does not conflict with the provision of transit services.
    Program Guidance is found in FTA Circular 9070.1G, Enhanced 
Mobility of Seniors and Individuals with Disabilities Program Guidance 
and Application Instructions, dated July 7, 2014. FTA is in the process 
of updating the program circular to incorporate changes resulting from 
the FAST Act.
    Section 3006(b) of the FAST Act creates a new discretionary pilot 
program for innovative coordinated access and mobility that is 
discussed in section III of this notice. The Federal share is 80% for 
capital projects and 50% for operating assistance. Match can come from 
other Federal (non-DOT) funds. A report will be made available by 
December 31 of each year on the pilot program. The report will include 
a detailed description of the activities carried out under the pilot 
program, and an evaluation of the program, including an evaluation of 
the performance measures.
    In addition, Section 3006(c) of the FAST Act includes Coordinated 
Mobility, which requires that FTA implement recommendations made by the 
Interagency Transportation Coordination Council on Access and Mobility 
(CCAM) 2005 Report to the President relating to the implementation of 
Executive Order No. 13330 (49 U.S.C. 101) including publishing an 
updated strategic plan and developing a cost-sharing policy. The cost-
sharing policy must be developed in compliance with applicable Federal 
laws for use by grantees of Federal programs funded by members of the 
CCAM. The cost allocation model developed under this section will 
facilitate local coordination efforts and include: Eligibility 
requirements; service delivery requirements; and reimbursement 
requirements.

F. Formula Grants for Rural Areas Program (49 U.S.C. 5311)

    The Rural Areas 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, operating, planning, job access and reverse commute projects, 
and State administration expenses. Eligible sub-recipients include 
State and local governmental authorities, Indian Tribes, private non-
profit organizations, and private operators of public transportation 
services, including intercity bus companies. Indian Tribes are also 
eligible direct recipients under section 5311, both for funds 
apportioned to the States and for projects apportioned or selected to 
be funded with funds set aside for a separate Tribal Transit Program. 
For more information about the Formula Grants for Rural Areas program, 
contact Marianne Stock, Office of Transit Programs, at (202) 366-2677 
or [email protected].
1. Authorized Amounts
    The FAST Act authorizes $619,956,600 in FY 2016, $632,355,120 in 
FY2017, $645,634,578 in FY2018, $659,322,031 in FY2019, and 
$673,299,658 in 2020 to provide financial assistance for rural areas 
under section 5311.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                       Fiscal year                                2016               2017               2018               2019               2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
Funds Authorized.........................................      $619,956,000       $632,355,120       $645,634,578       $659,322,031       $673,299,658
--------------------------------------------------------------------------------------------------------------------------------------------------------

    In addition to the funds made available to States under section 
5311, approximately 16 percent of the funds authorized for the new 
section 5340 Growing States and High Density States formula factors 
will be apportioned to States for use in rural areas.
    Funding for oversight, the Rural Transportation Assistance Program 
(RTAP), Tribal Transit Program, and the Appalachian Development Public 
Transportation Assistance Program will be deducted before amounts are 
apportioned to the States.
2. FY 2016 Funding Availability
    In FY 2016, $619,956,000 is available for the section 5311 program 
for the period October 1, 2015 through September 30, 2016.

             Formula Grants for Rural Areas Program--FY 2016
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation....................................    $619,956,000
Oversight Deductions...................................      (3,099,780)
RTAP Takedown..........................................     (12,399,120)
Tribal Takedown........................................     (35,000,000)
Appalachian Takedown...................................     (20,000,000)
Section 5340 Growing States............................      77,353,084
                                                        ----------------
  Total Apportioned....................................     626,810,184
------------------------------------------------------------------------


[[Page 7909]]

    Table 12 displays the amounts apportioned to the States under the 
Formula Grants for Rural Areas Program.
3. Basis for Formula Apportionment
    The FAST Act made no changes to the formula for the Rural Areas 
Program. FTA apportions section 5311 funds to the states by a statutory 
formula using the latest available U.S. decennial census data. The 
majority of rural formula funds (83.15 percent) are apportioned based 
on land area and population factors. In this first tier, no state may 
receive more than 5 percent of the amount apportioned on the basis of 
land area. The remaining rural formula funds (16.85 percent) are 
apportioned based on land area, vehicle revenue miles, and low-income 
individuals factors. In this second tier, no state may receive more 
than 5 percent of the amount apportioned on the basis of land area, or 
more than 5 percent of the amounts apportioned for vehicle revenue 
miles. In addition to funds made available under Section 5311, FTA adds 
amounts apportioned based on rural population according to the growing 
states formula factors of 49 U.S.C. 5340 to the amounts apportioned to 
the states under the Section 5311 formula. Before FTA apportions 
Section 5311 funds to the states, FTA subtracts funding from the total 
available amounts for the Appalachian Development Transportation 
Assistance Program, the Tribal Transit Program, the Rural 
Transportation Assistance Program (RTAP), and FTA oversight activities.
    Data from the Rural Module of the National Transit Database (NTD) 
2014 Report Year was used for this apportionment, including data from 
directly-reporting Indian tribes. Data from public transportation 
systems that reported to the Annual (Urbanized Area) Module, and that 
was not attributable to an urbanized area, was also included. The 
section 5311 program includes three takedowns: The Appalachian 
Development Public Transportation Assistance Program; the Rural Transit 
Assistance Program (RTAP); and the Tribal Transit Program. These 
separate programs are described in the sections that follow.
4. Eligible Expenses
    The section 5311 program provides funding for capital, operating, 
planning, job access and reverse commute projects, and administration 
expenses for public transit service in rural areas under 50,000 in 
population. 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 areas' needs. Job access and 
reverse commute projects are also eligible under this program.
a. Intercity Bus Transportation
    Each State must continue to spend no less than 15 percent of its 
annual Rural Areas 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 adequately being met. FTA 
continues to encourage consultation with other stakeholders, such as 
communities affected by loss of intercity service. The FAST Act amended 
the intercity bus service match requirement in 49 U.S.C. 5311(g)(3) and 
now allows the cost of an unsubsidized portion of privately provided 
intercity bus service that connects feeder service, including all 
operating and capital costs of such service whether or not offset by 
revenue from such service to be used as in-kind local match for the 
intercity bus projects. FTA will update the Section 5311program 
circular to include this change.
b. State Administration
    The FAST Act did not change the amount available to States for 
administration, planning, and technical assistance. States may elect to 
use up to 10 percent of their apportionment at 100 percent Federal 
share to administer the section 5311 program and provide technical 
assistance to subrecipients. Technical assistance includes 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.
c. Eligibility for Safety Certification Training
    Recipients of section 5311 funds are permitted to use not more than 
0.5 percent of their formula funds under the Rural Areas program to pay 
not more than eighty percent of the cost of participation for an 
employee who is directly responsible for safety oversight to 
participate in public transportation safety certification training. 
Safety certification training program requirements are established in 
accordance with section 5329.
5. Requirements
    The program requirements under this section are generally 
unchanged, with the exception of the cross-cutting requirements 
mentioned in section III.D. of this notice and specific subsections 
outlined below.
    The Federal share for capital assistance is 80 percent and for 
operating assistance is 50 percent, except that States eligible for the 
sliding scale match under FHWA programs may use that match ratio for 
section 5311 capital projects and 62.5 percent of the sliding scale 
capital match ratio for operating projects. This is not changed under 
the current authorization.
    Each State prepares an annual program of projects, which must 
provide for fair and equitable distribution of funds within the States, 
including Indian reservations, and must provide for maximum feasible 
coordination with transportation services assisted by other Federal 
sources.
    Additional program guidance for the Rural Areas Program is found in 
FTA Circular 9040.1G, Formula Grants for Rural Areas: Program Guidance 
and Application Instructions, dated October 24, 2014, and is 
supplemented by additional information and changes provided in this 
notice and that may be posted to FTA's section 5311 Web page. FTA is in 
the process of updating the program circular to incorporate changes 
resulting from FAST Act amendments to 49 U.S.C. 5311.
    The following subsections outline several important program 
requirements and changes that apply specifically to the section 5311 
program.
6. Period of Availability
    Section 5311 funds remain available to states for obligation for 
three Federal fiscal years, beginning with the year of apportionment 
plus two additional years. The Rural Areas program funds apportioned in 
this notice are available for obligation during FY 2016 plus two 
additional years. Any FY 2016 apportioned funds that remain unobligated 
at the close of business on September 30, 2018 will revert to FTA for 
reapportionment under the Rural Areas program.
7. What's New and Other Program Highlights
    Revenue from the sale of advertising and concessions may be used as 
local match. The capital and operating costs, with no revenue offset, 
of an unsubsidized portion of privately provided intercity bus service 
that connects feeder service can be used as in-kind local match for the 
intercity bus projects.

[[Page 7910]]

G. Rural Transportation Assistance Program (49 U.S.C. 5311(b)(3))

    This program is not changed in the FAST Act and 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. For 
more information about Rural Transportation Assistance Program (RTAP) 
contact Marianne Stock, Office of Transit Programs, at (202) 366-2677 
or [email protected].
1. Authorized Amounts
    The Fast Act authorizes a two percent takedown from the funds 
appropriated for section 5311 for RTAP. Of this amount, 15 percent is 
reserved for the National RTAP program. The remainder is available for 
allocation to the States.
    The Fast Act authorizes the following amounts to carry out this 
program for fiscal years 2016-2020.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                            Fiscal year                                    2016             2017             2018             2019             2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
Funds Authorized...................................................     $12,399,120      $12,647,102      $12,912,692      $13,186,441      $134,659,93
--------------------------------------------------------------------------------------------------------------------------------------------------------

2. FY 2016 Funding Availability
    In FY 2016, $12,399,120 is available for the section 5311 RTAP 
program. After the reservation for the National RTAP program, a total 
of $10,539,252 is available for allocation to the States, as shown in 
the table below.

            Rural Transportation Assistance Program--FY 2016
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.....................................     $12,399,120
National RTAP...........................................      -1,859,868
                                                         ---------------
  Total Apportioned.....................................      10,539,252
------------------------------------------------------------------------

    Table 12 shows the FY 2016 RTAP allocations to the States.
3. Basis for Formula Apportionment
    FTA will continue to allocate funds to the States by an 
administrative formula. First, FTA allocates $65,000 to each State 
($10,000 to territories), and then allocates the balance based on rural 
population in the 2010 census.
4. Eligible Expenses
    Eligible expenses include 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.
5. Requirements
    States may use the funds to undertake research, training, technical 
assistance, and other support services to meet the needs of transit 
operators in rural areas. These funds are to be used in conjunction 
with a State's administration of the Rural Areas Formula Program, but 
also may support the rural components of the section 5310 program.
6. Period of Availability
    The section 5311 RTAP funds apportioned in this notice are 
available for obligation in FY 2016 plus two additional years, 
consistent with that established for the section 5311 program.
7. What's New and Other Program Highlights
    The National RTAP project is administered by cooperative agreement 
and re-competed at five-year intervals. In July of 2014, FTA awarded a 
cooperative agreement to Neponset Valley Transportation Management 
Association to administer the National RTAP Program. The National RTAP 
projects are guided by a project review board that consists of managers 
of rural transit systems and State DOT RTAP programs. National RTAP 
resources also support the biennial TRB National Conference on Rural 
Public and Intercity Bus Transportation and other research and 
technical assistance projects of a national scope.

H. Appalachian Development Public Transportation Assistance Program (49 
U.S.C. 5311(c)(2))

    This program continues as a take-down under the section 5311 
program to provide additional funding to support public transportation 
in the Appalachian region. There are sixteen eligible States that 
receive an allocation under this provision. The States and their 
allocation are shown in the Rural Areas Formula program table posted on 
FTA's Web site under the FY 2013 Apportionments page. For more 
information about the Appalachian Development Public Transportation 
Assistance Program, contact Marianne Stock, Office of Transit Programs, 
at (202) 366-2677 or [email protected].
1. Authorized Amounts
    The FAST Act authorizes $20 million in each of FY 2016 through FY 
2020 as a take-down under the section 5311 program to support public 
transportation in the Appalachian region.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                            Fiscal year                                    2016             2017             2018             2019             2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
Funds Authorized...................................................     $20,000,000      $20,000,000      $20,000,000      $20,000,000      $20,000,000
--------------------------------------------------------------------------------------------------------------------------------------------------------

2. FY 2016 Funding Availability
    A total of $20,000,000 is available for the Appalachian Development 
program for FY 2016, as shown below.

  Appalachian Development Public Transportation Assistance Program--FY
                                  2016
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.....................................     $20,000,000
Total Apportioned.......................................      20,000,000
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    FTA apportions the funds using percentages established under 
section 9.5(b) of the Appalachian Regional Commission Code (subtitle IV 
of title 40). Allocations are based in general on each State's 
remaining estimated need to complete eligible sections of the 
Appalachian Development Highway System as determined from the latest 
percentages of available cost estimates for completion of the System. 
Such cost estimates are produced at approximate five year intervals. 
Allocations contain upper and lower limits in amounts determined by the 
Commission and are made in accordance with legislative instructions.
4. Requirements
    Funds apportioned under this program can be used for purposes 
consistent with section 5311 to support public transportation in the

[[Page 7911]]

Appalachian region. Funds can be applied for in the State's annual 
section 5311 grant.
    Appalachian program funds that cannot be used for operating may be 
used for a highway project under certain circumstances. States should 
contact their regional office if they intend to request a transfer. 
Additional information about the requirements for this section can be 
found in Chapter VII of FTA Circular 9040.1G, Formula Grants for Rural 
Areas: Program Guidance and Application Instructions, dated October 24, 
2014.
5. Period of Availability
    Section 5311 Appalachian program funds are available for three 
years, which includes the year of apportionment plus two additional 
years, consistent with that established for the section 5311 program.

I. Formula Grants for Public Transportation on Indian Reservations 
Program (49 U.S.C. 5311(j))

    The Public Transportation on Indian Reservations Program or Tribal 
Transit Program (TTP) totals $35 million, of which $30 million is for a 
formula program and $5 million is for a discretionary grant program. It 
is funded as a takedown from funds made available for the section 5311 
program. Formula factors include vehicle revenue miles and the number 
of low-income individuals residing on tribal lands (American Indian 
Areas, Alaska Native Areas, and Hawaiian Home Lands). More information 
on the Discretionary program can be found in section III.6 of this 
notice. Eligible direct recipients are Federally recognized Indian 
tribes and Alaskan Native Villages providing public transportation in 
rural areas. The TTP funds are to be allocated for grants to eligible 
recipients for any purpose eligible under section 5311, which includes 
capital, operating, planning, job access and reverse commute projects. 
For more information about the Tribal Transit Program contact Elan 
Flippin, Office of Transit Programs at (202) 366-3800 or 
[email protected].
1. Authorized Funding
    Under the FAST Act, $35 million is authorized in in each of FY 
2016-FY 2020. Five million will be allocated on a competitive basis and 
$30 million will be allocated by formula.
2. FY 2016 Funding Availability
    In FY 2016, $30,000,000 is made available by formula as shown in 
the table below.

Formula Grants for Public Transportation on Indian Reservations Program--
                                 FY 2016
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.....................................     $30,000,000
Total Apportioned.......................................      30,000,000
------------------------------------------------------------------------

3. Basis for Allocation
    Funding is allocated by formula and distributed to eligible Indian 
tribes providing public transportation on tribal lands. The formula 
apportionment shown in Table 9 is based on a statutory formula which 
includes three tiers. Tiers 1 and 2 are based on data reported to NTD 
by Indian tribes; Tier 3 is based on 2009-2013 American Community 
Survey data. The three tiers for the formula are: Tier 1--50 percent 
based on vehicle revenue miles reported to the NTD; Tier 2--25 percent 
provided in equal shares to Indian tribes reporting at least 200,000 
vehicle revenue miles to the NTD; Tier 3--25 percent based on Indian 
tribes providing public transportation on tribal lands (American Indian 
Areas, Alaska Native Areas, and Hawaiian Home Lands) on which more than 
1,000 low income individuals reside. If more than one tribe provides 
public transportation services on tribal lands in a single Tribal 
Statistical area, and the tribes cannot determine how to allocate Tier 
3 funds, FTA will allocate the funds based on the relative portion of 
transit (as defined by unlinked passenger trips) operated by each 
tribe, as reported to the National Transit Database.
4. Requirements
    Formula funds apportioned under this program can be used for 
purposes consistent with section 5311 to support public transportation 
on Indian Reservations in rural areas. Funds allocated under the 
discretionary program must be used consistent with the tribe's proposal 
and the allocation notice published in the Federal Register, which is 
used to announce the selected projects. Eligible recipients under both 
the discretionary and formula program include federally-recognized 
Indian tribes or Alaska native villages, groups, or communities as 
identified by the U.S. Department of the Interior Bureau of Indian 
Affairs (BIA). A tribe must have the legal, financial and technical 
capabilities to receive and administer Federal funds.
    Section 5335 requires NTD reporting for all direct recipients of 
section 5311 funds. This reporting requirement has and continues to 
apply to the Tribal Transit Program. Tribes that provide public 
transportation in rural areas are reminded to report annually so they 
are included in the TTP formula apportionments. To be considered in the 
FY 2016 formula apportionments, tribes should have submitted their 
reports to the NTD no later than April 30, 2015; voluntary reporting to 
the NTD is also encouraged. Additionally, to be considered for the FY 
2017 formula apportionment funds, tribes need to submit their reports 
to the NTD no later than April 30, 2016. Tribes needing assistance with 
reporting to the NTD should contact the NTD Helpline at 1-888-252-0936 
or [email protected].
5. Period of Availability
    Funding for the TTP is available for three years, which includes 
the year of apportionment or allocation plus two additional years, 
consistent with that established for the section 5311 program. Any FY 
2016 formula funds that remain unobligated at the close of business on 
September 30, 2018 will revert to FTA for reapportionment under the 
TTP.
6. What's New and Other Program Highlights
    The FAST Act establishes a Tribal Transportation Self Governance 
Program (Self Governance). The Self Governance Program establishes 
specific criteria for determining eligibility for a tribe to 
participate in the program. DOT will develop rulemaking and the 
implementation of this program in consultation with tribal 
representatives and other interested stakeholders. See section III. 6 
of this notice for more information.
    The funds set aside for the TTP are not meant to replace or reduce 
funds that Indian tribes receive from States through the section 5311 
program but are to be used to enhance public transportation on Indian 
reservations and transit serving tribal communities. Funds allocated to 
Indian tribes by the States may be included in the State's section 5311 
application or awarded by FTA in a grant directly to the Indian tribe. 
FTA encourages Indian tribes intending to apply to FTA as direct 
recipients to contact the appropriate FTA Regional Office at the 
earliest opportunity.
    TTP grantees must comply with all applicable Federal statutes, 
regulations, executive orders, FTA circulars, and other Federal 
requirements in carrying out the project supported by the FTA grant. To 
assist tribes with understanding these requirements, FTA regularly 
conducts Tribal Transit Technical Assistance Workshops, and expects to 
offer several workshops in FY2016. FTA has also expanded its technical 
assistance to tribes receiving

[[Page 7912]]

funds under this program. In FY15, FTA implemented the Tribal Transit 
Technical Assistance Assessments initiative. Through these assessments, 
FTA collaborates with tribal transit leaders to review processes and 
identify areas in need of improvement and then assist with solutions to 
address these needs--all in a supportive and mutually beneficial 
manner. FTA completed fifteen assessments in FY15, and expects to do a 
similar number in FY 2016. These assessments include discussions of 
compliance areas pursuant to the Master Agreement, a site visit, 
promising practices reviews, and technical assistance from FTA and its 
contractors. These workshops and assessments received exemplary 
feedback from Tribal Transit Leaders, and provided FTA with invaluable 
opportunities to learn more about tribal transit leaders' perspectives, 
and honor the sovereignty of tribal nations. FTA will post information 
about upcoming workshops to its Web site and will disseminate 
information about the reviews through its Regional offices. FTA has 
regional tribal transit liaisons in each of the FTA Regional Offices 
that are available to assist tribes with applying for and managing FTA 
grants. A list of regional tribal transit liaisons can be found on 
FTA's Web site at http://www.fta.dot.gov/13094_15845.html. Tribes are 
encouraged to work directly with their regional tribal transit liaison. 
For more information about the Tribal Transit Program, please contact 
[Eacute]lan Flippin at [email protected] or 202-366-3800.

J. Public Transportation Innovation (49 U.S.C. 5312)

    Section 5312 is FTA's research program. Within this section, the 
FAST Act authorizes several different activities that comprise three 
distinct programs: (a) A Research, Development, Demonstration, 
Deployment, & Evaluation program (49 U.S.C. 5312(b-e)); (b) a Low or No 
Emission Vehicle Component Assessment (Lo-No Component Testing program) 
(49 U.S.C. 5312(h)); and (c) a Transit Cooperative Research Program (49 
U.S.C. 5312(i)).
    For more information about the Public Transportation Innovation 
program, contact Mary Leary, Office of Research, Demonstration and 
Innovation at (202) 366-4052 or [email protected]
1. Authorized Funding
    The FAST Act authorizes $48 million for FY 2016 through FY 2020 for 
the Public Transportation Innovation program as shown in the table 
below, $28 million from the Mass Transit Account of the Highway Trust 
Fund and $20 million from General Fund appropriations.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                            Fiscal year                                    2016             2017             2018             2019             2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
Public Transportation Innovation...................................     $48,000,000      $48,000,000      $48,000,000      $48,000,000      $48,000,000
--------------------------------------------------------------------------------------------------------------------------------------------------------

2. FY 2016 Funding Availability
    In FY 2016, $28,000,000 is available for the Public Transportation 
Innovation program as shown in the table below.

                Public Transportation Innovation--FY 2016
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Research, Development, Demonstration, Deployment, &          $20,000,000
 Evaluation.............................................
Low or No Emission Vehicle Component Testing............       3,000,000
Transit Cooperative Research Program (TCRP).............       5,000,000
                                                         ---------------
  Total Apportioned.....................................      28,000,000
------------------------------------------------------------------------

3. Basis for Allocation of Funds
    Section 5312 funds are allocated according to the authorized 
purposes and amounts described above, and then remaining amounts are 
subject to discretionary allocations where not specifically authorized. 
For FY 2016, FTA intends to fund projects and activities in support of 
three major areas: Asset Innovation and Management, Mobility, and 
Safety. Projects may be selected through Notices of Funding 
Availability (NOFA) or Requests for Proposals (RFPs). Potential 
recipients can register to receive notification of funding availability 
under this program on Grants.gov.
4. Eligible Expenses
    Eligible expenses include activities involving (a) Research, 
Innovation, Development, Demonstration, Deployment, Evaluation; (b) Low 
or No Emission Vehicle Component Testing; and (c) Transit Cooperative 
Research.
5. Requirements
    The Government share of the cost of a project carried out under 
FTA's Research, Development, Deployment, and Demonstration program 
shall not exceed 80 percent; the remaining 20 percent of the costs can 
be met with in-kind resources. In some cases, FTA may require a higher 
non-Federal share if FTA determines a recipient would obtain a clear 
and direct financial benefit from the project, or if the non-Federal 
share is an evaluation factor under a competitive selection process. 
However, for the Lo-No Component Testing Program, the Government share 
is 50 percent; the remaining 50 percent of the costs will be paid by 
amounts recovered through the fees established by the testing 
facilities. There is no match requirement for the TCRP.
    Application instructions and program management guidelines are set 
forth in FTA Circular C 6100.1E, Technology Development and Deployment, 
``Research, Technical Assistance and Training Program: Application 
Instructions and Program Management Guidelines'' dated April 10, 2015. 
All research recipients are required to work with FTA to develop 
approved Statements of Work. FTA will be updating the Circular for the 
Research program during FY 2016.
6. Period of Availability
    FTA establishes the period in which the funds must be obligated to 
the project. If the funds are not obligated within that period of time, 
they revert to FTA for reallocation under the program.
7. What's New and Other Program Highlights
    The FAST Act amends 49 U.S.C. 5312 to create a new voluntary Lo-No 
Component Testing Program, which is separate and apart from the Bus 
Testing Program (Section 5318) and is authorized at $3 million 
annually.
    The annual Research Report on projects, evaluations, and benefits 
will be posted to FTA's Web site rather than submitted to the Congress.
    Section 6019(b) of the FAST Act establishes new requirements for 
annual modal research plans in 49 U.S.C. 6501. This section requires 
FTA to submit its comprehensive annual modal research plan to the 
Assistant Secretary for Research and Technology for review and approval 
prior to expending funds.
    Pursuant to the Small Business Innovation Development Act, a 
portion of the 5312 funds must be set aside for the Department's SBIR 
program to address high priority research that will demonstrate 
innovative, economic,

[[Page 7913]]

accurate, and durable technologies, devices, applications, or solutions 
to significantly improve current transit-related service including 
transit vehicle operation, safety, infrastructure and environmental 
sustainability, mobility, rider experience, or broadband communication.

K. Technical Assistance and Workforce Development (49 U.S.C. 5314)

    The Technical Assistance and Workforce Development program, 49 
U.S.C. 5314, provides assistance to: (1) Carry out technical assistance 
activities that enable more effective and efficient delivery of 
transportation services, foster compliance with Federal laws, and 
improve public transportation service; (2) develop standards and best 
practices for the transit industry; and (3) address public 
transportation workforce needs through research, outreach, training and 
the implementation of a frontline workforce grant program, and conduct 
training and educational programs in support of the public 
transportation industry.
    Section 5314 is funded from the Highway Trust Fund and is 
authorized at $9 million a year for all five years, with $5 million of 
that amount specifically set-aside for a National Transit Institute. 
FAST authorizes an additional $5 million from the General Fund that is 
subject to annual appropriations; for FY 2016, there are no additional 
appropriations from the General Fund leaving a balance of $4 million to 
fund all technical assistance, standards development, and workforce 
development activities.
    For more information about the Technical Assistance and Workforce 
Development program, contact Betty Jackson, Office of Research, 
Demonstration and Innovation at (202) 366-4052 or 
[email protected].
1. Authorized Amounts
    The FAST Act authorizes $14 million for each of FY 2016 through FY 
2020 for the Technical Assistance and Workforce Development program as 
shown in the table below. $9 million is authorized from the trust fund. 
Of this amount $5 million is for the National Transit Institute (NTI). 
An additional $5 million is authorized to be appropriated from the 
General Fund of the Treasury.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                            Fiscal year                                    2016             2017             2018             2019             2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
Technical Assistance and Workforce Development.....................     $14,000,000      $14,000,000      $14,000,000      $14,000,000      $14,000,000
--------------------------------------------------------------------------------------------------------------------------------------------------------

2. FY 2016 Funding Availability
    In FY 2016, $9,000,000 is available for Technical Assistance and 
Workforce Development as shown in the table below.

         Technical Assistance and Workforce Development--FY 2016
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Technical Assistance, Standards Development & Human           $4,000,000
 Resource Training......................................
National Transit Institute..............................       5,000,000
                                                         ---------------
  Total Appropriated....................................      $9,000,000
------------------------------------------------------------------------

3. Basis for Allocation of Funds
    Under section 5314, $5 million is available for the NTI. The 
remaining $4 million will be allocated in support for both FTA and 
USDOT strategic goals for technical assistance, standards development, 
and workforce development. Projects may be selected through Notices of 
Funding Availability (NOFA) or Requests for Proposals (RFPs). Potential 
recipients can register to receive notification of funding availability 
under this program on Grants.gov. Once selected, FTA enters into 
cooperative agreements, contracts, or other agreements to award funds 
and manage the projects carried out under this section.
4. Eligible Expenses
    Eligible expenses include activities involving (a) Technical 
Assistance; (b) Standards Development; and (c) Human Resources and 
Training, to include Workforce Development programs and activities.
    Eligible Technical Assistance activities may include activities to 
support: (a) Compliance with the ADA; (b) compliance with coordinating 
planning and human services transportation; (c) meeting the 
transportation needs of elderly individuals; (d) increasing transit 
ridership in coordination with MPOs and other entities, particularly 
around transit-oriented development; (e) addressing transportation 
equity with regard to the effect that transportation planning, 
investment, and operations have for low-income and minority 
individuals; (f) facilitating best practices to promote bus driver 
safety; (g): Compliance with Buy America and pre- and post-award 
audits; (h) assisting with the development and deployment of low and no 
emission vehicles or components for vehicles; (i) and other technical 
assistance activities that are necessary to advance the interests of 
public transportation.
    Eligible Standards activities include the development of voluntary 
and consensus-based standards and best practices by the industry to 
include those needed for safety, fare collection, intelligent 
transportation systems, accessibility, procurement, security, asset 
management, operations, maintenance, vehicle propulsion, 
communications, and vehicle electronics.
    Eligible Human Resources and Training activities include (a) 
employment training programs; (b) outreach programs to increase 
employment for veterans, females, individuals with disabilities, 
minorities in public transportation activities; (c) research on public 
transportation personnel and training needs; (d) training and 
assistance for veteran and minority business opportunities; and (e) 
consensus-based national training standards and certifications in 
partnership with industry stakeholders. FTA funding directly allocated 
for these eligible purposes must be done through a discretionary 
frontline workforce development program as required in the 
authorization. Should FTA allocate funds for these purposes, it will 
advertise the available funding in a Notice of Funding Availability 
(NOFA) on Grants.gov and on its Web site. FTA will be issuing 
additional guidance in the coming months on how grantees can utilize 
their formula funds in support of these eligible activities.
5. Requirements
a. Federal Share
    The Government's share of the cost of a project carried out using a 
grant under this section shall not exceed 80 percent. However, for the 
Human Resources and Training, including the Innovative Public 
Transportation Frontline Workforce Development Program, the 
Government's share cannot exceed 50 percent. The Federal share for 
other types of awards will be stated in the agreement. In some cases, 
FTA may require a higher non-Federal share if FTA determines a 
recipient would obtain a clear and direct financial benefit from the 
project, or if the non-Federal share is an evaluation factor under a 
competitive selection process.

[[Page 7914]]

There is no match requirement for the National Transit Institute.
b. Non-Government Share
    The non-Government share of the cost of a project carried out under 
these sections (Technical Assistance and Standards and Technical 
Assistance and Training) may be derived from in-kind contributions as 
defined in the most current version of FTA Circular 5010, ``Grants 
Management Guidelines'' found on FTA's Circular Web page at (http://www.fta.dot.gov/circulars). Application instructions and program 
management guidelines are set forth in FTA Circular 6100.1E, 
``Research, Technical Assistance and Training Program: Application 
Instructions and Program Management Guidelines'' dated April 10, 2015. 
All research recipients are required to work with FTA to develop 
approved Statements of Work.
5. Period of Availability
    FTA establishes the period in which the funds must be obligated to 
the project. If the funds are not obligated within that period of time, 
they revert to FTA for reallocation under the program.
6. What's New and Other Program Highlights
    Under 49 U.S.C. 5314(b)(4), recipients may use no more than one-
half of one percent (0.5%) of their section 5307, 5337 and 5339 funds 
to support workforce development activities. In addition, 49 U.S.C. 
5314(c)(4) allows recipients to use no more than one-half of one 
percent (0.5%) of their 5307, 5337, and 5339 funds to attend NTI 
training. Both provisions allow recipients to use these funds to pay up 
to 80 percent of the cost of training. This amounts to approximately 
$36 million in formula funds that grantees can use to support workforce 
development activities and another $36 million that can be used to 
support NTI training activities. For more information about the NTI, 
contact Faith Hall, Office of Research, Demonstration and Innovation at 
(202) 366-9055 or [email protected].
    FTA is required to publish an annual report to Congress on the 
technical assistance and standards activities that receive assistance 
under this section. Additionally, FTA must report annually on the 
Frontline Workforce Development Program.

L. Public Transportation Emergency Relief Program (49 U.S.C. 5324)

    FTA's Emergency Relief (ER) Program is authorized to provide 
funding for public transportation expenses incurred as a result of an 
emergency or major disaster. No funding was provided in the FY 2016 
Appropriations Act for this program.
    In the event of a publicly declared emergency or disaster, eligible 
expenses will include emergency operating expenses, such as 
evacuations, rescue operations, and expenses incurred to protect assets 
in advance of a disaster, as well as capital projects to protect, 
repair, reconstruct, or replace equipment and facilities of a public 
transportation system 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. Additional 
information on eligible expenses and the process for applying for ER 
Program funding can be found in FTA's Emergency Relief Manual: A 
Reference Manual for States & Transit Agencies on Response and Recovery 
from Declared Disasters and FTA's Emergency Relief Program (49 U.S.C. 
5324), which was published on October 5, 2015.
    While Congress did not provide funding for this program in FY 2016, 
recipients of FTA funding affected by a declared emergency or disaster 
are authorized to use funds apportioned under sections 5307 and 5311 
for emergency purposes. Recipients are advised that formula funds used 
for emergency purposes will not be replaced or restored in the event 
that funding is subsequently made available through FTA under the ER 
Program or by Federal Emergency Management Agency (FEMA).
    In the event of a disaster affecting a public transportation 
system, the affected recipient should contact their FTA Regional Office 
as soon as practicable to determine whether Emergency Relief funds are 
available, and to notify FTA that it plans to seek reimbursement for 
emergency operations and/or repairs that have already taken place or 
are in process. If Emergency Relief funds are unavailable the recipient 
may seek reimbursement from FEMA. Properly documented costs for which 
the grantee has not received reimbursement from FEMA may later be 
reimbursed by grants made either from section 5324 funding (if 
appropriated) or sections 5307 and 5311 program funding, once the 
eligible recipient formally applies to FTA for reimbursement and FTA 
determines that the expenses are eligible for emergency relief. 
Additional information about the Emergency Relief program and FTA's 
response to Hurricane Sandy is available on the FTA Web site at 
www.fta.dot.gov/emergencyrelief. For more information, contact Adam 
Schildge, Office of Program Management, at 202-366-0778 or 
[email protected].

M. Public Transportation Safety Program (49 U.S.C. 5329)

    Section 5329(e)(6) of 49 U.S.C. provides funding to support States 
with rail fixed guideway public transportation systems (rail transit 
systems) to develop and carry out State Safety Oversight (SSO) Programs 
consistent with the requirements of 49 U.S.C. 5329. For more 
information, contact Maria Wright, Office of Safety Review at (202) 
366-5922 or [email protected].
1. Authorized Amounts

 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                Year                                       2016             2017             2018             2019             2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
Funds Authorized...................................................     $22,694,529      $23,148,419       23,634,536       24,135,588       24,647,262
--------------------------------------------------------------------------------------------------------------------------------------------------------

2. FY 2016 Funding Availability
    In FY 2016, $22,694,529 is available for the State Safety Oversight 
(SSO) program. The total amount allocated for the SSO program is as 
shown in the table below.

              Public Transportation Safety Program--FY 2016
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.....................................     $22,694,529
Total Apportioned.......................................     $22,694,529
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    FTA will continue to allocate funds to the States by an 
administrative formula, which is detailed in the Federal Register 
notice which apportioned SSO Formula Grant Program FY13 and FY14 funds 
(Vol. 79, No. 46/Monday, March

[[Page 7915]]

10, 2014). Grant funds for the SSO program are apportioned to eligible 
States using a three-tier formula based on statutory requirements, 
which apportion sixty percent (60%) of available funds based rail 
transit system vehicle passenger miles (PMT), vehicle revenue miles 
(VRM), and directional route miles (DRM), twenty percent (20%) of 
available funds equally to each eligible State, and twenty percent 
(20%) based on the number of rail transit systems.
4. Requirements
    FTA requires each applicant to demonstrate in its grant application 
that its proposed grant activities will develop, lead to, or carry out 
an State Safety Oversight program that meets the requirements under 49 
U.S.C. 5329(e). Grant funds may be used for program operational and 
administrative expenses, including employee training activities. Please 
see the Federal Register notice which apportioned SSO Formula Grant 
Program FY13 and FY14 funds (Vol. 79, No. 46/Monday, March 10, 2014) 
for more information.
5. Period of Availability
    SSO Formula Grant Program funds are available for the year of 
apportionment plus two additional years. Any FY 2016 funds that remain 
unobligated at the close of business on September 30, 2018 will revert 
to FTA for reapportionment under the SSO Formula Grant Program.
6. What's New and Other Program Highlights
    Under the FAST Act, section 5329 provides for a temporary Federal 
assumption of rail transit safety oversight, under certain 
circumstances. This section also authorizes FTA to issue restrictions 
and prohibitions to address unsafe conditions or practices, and to 
withhold funds for non-compliance with safety requirements.

N. State of Good Repair Program (49 U.S.C. 5337)

    The State of Good Repair program (SGR) provides capital assistance 
for maintenance, replacement, and rehabilitation projects of existing 
high intensity fixed guideway and high intensity motorbus systems to 
maintain a state of good repair. Additionally, SGR grants are eligible 
for developing and implementing Transit Asset Management plans. 
Estimates from the 2010 National State of Good Repair Assessment 
identified an $86 billion backlog in deferred maintenance and 
replacement needs, a backlog that continues to grow. This program 
provides funding for the following fixed guideway transit modes: Rapid 
rail (heavy rail), commuter rail, light rail, hybrid rail, monorail, 
automated guideway, trolleybus (using overhead catenary), aerial 
tramway, cable car, inclined plane (funicular), passenger ferries, and 
bus rapid transit. Fixed-route bus capital projects for services 
operating on high-occupancy-vehicle (HOV) facilities are also funded 
through High Intensity Motorbus tier of this program.
    FTA published the State of Good Repair program guidance, FTA 
Circular 5300.1, State of Good Repair Grants Program: Guidance and 
Application Instructions, on January 28, 2015. The circular can be 
accessed at www.fta.dot.gov/circulars. For more information about the 
SGR program, contact Eric Hu, Office of Transit Programs, at (202) 366-
0870 or [email protected].
1. Authorized Amounts
    The FAST Act authorizes $2,507,000,000 for FY 2016, $2,549,670,000 
for FY 2017, $2,593,703,558 for FY 2018, $2,638,366,859 for FY 2019, 
and $2,683,798,369 for FY 2020 for the State of Good Repair program.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                       Fiscal year                                2016               2017               2018               2019               2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
Funds Authorized.........................................    $2,507,000,000     $2,549,670,000     $2,593,703,558     $2,638,366,859     $2,683,798,369
--------------------------------------------------------------------------------------------------------------------------------------------------------

2. FY 2016 Funding Availability
    In FY 2016, $2,507,000,000 is available for the State of Good 
Repair program. After a one percent oversight takedown, the total 
amount allocated for the State of Good Repair program is $2,481,930,000 
as shown in the table below.

                  State of Good Repair Program--FY 2016
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation...................................               \a\
                                                          $2,507,000,000
Oversight Deductions..................................       -25,070,000
                                                       -----------------
  Total Apportioned...................................     2,481,930,000
------------------------------------------------------------------------
\a\ Total appropriation includes $2,435,550,500 for the High Intensity
  Fixed Guideway Formula and $71,449,500 for the High Intensity Motorbus
  Formula.

    Table 15 shows the FY 2016 State of Good Repair Program formula 
apportionments to eligible urbanized areas.
3. Basis for Formula Apportionment
    FTA allocates State of Good Repair program funds according to a 
statutory formula. Funds are apportioned to urbanized areas with high 
intensity fixed guideway and high intensity motorbus systems that have 
been in operation for at least seven years. This means that only 
segments of high intensity fixed guideway and motorbus systems that 
entered into revenue service on or before September 30, 2008 are 
included in the formula, as identified in the NTD.
    The law requires that 97.15 percent of the total amount authorized 
for the State of Good Repair program be apportioned to urbanized areas 
with ``High Intensity Fixed Guideway'' systems. The apportionments to 
urbanized areas with ``High Intensity Fixed Guideway'' systems are 
determined by two equal elements: (1) The proportion of the amount an 
urbanized area would have received in FY 2011 to the total amount 
apportioned to all urbanized areas in FY 2011 using new fixed guideway 
definition; (2) the proportion of vehicle revenue miles of an urbanized 
area to the total vehicle revenue miles of all urbanized areas and the 
proportion of directional route miles of an urbanized area to the total 
directional route miles of all urbanized areas. High Intensity Motorbus 
systems will receive the remaining 2.85 percent of the total amount 
authorized for the State of Good Repair program, and the apportionments 
to urbanized areas are based on vehicle revenue miles and directional 
route miles.
    Vehicle revenue miles and directional route miles attributable to 
an urbanized area must be placed in revenue service at least 7 years 
before the first day of the fiscal year. A threshold level of more than 
one mile of high intensity fixed guideway is required in order to 
receive State of Good Repair funds. Therefore, urbanized areas 
reporting one mile or less of fixed guideway mileage under the NTD are 
not included. FTA will apportion funds to designated recipients in the 
UZAs (see section IV. C. of this notice for more information about 
designated recipients; FTA will apportion section 5337 funds to the 
section 5307 designated recipient for the UZA) with high intensity 
fixed guideway systems operating at least 7 years. The designated 
recipients will

[[Page 7916]]

then allocate funds as appropriate to recipients that are public 
entities in the urbanized areas and provide split letters to the FTA. 
FTA can make grants to direct recipients after sub-allocation of funds.
4. Eligible Expenses
    Eligible activities include projects that maintain, rehabilitate, 
and replace transit assets, as well as projects that implement Transit 
Asset Management plan. Additionally, training and workforce activities 
authorized under 49 U.S.C. 5314(b) and (c) are eligible for the State 
of Good Repair funds, and the funds are limited to 1 percent of the 
total amount that apportioned to the recipient (0.5 percent for each of 
the authorized activities).
5. Requirements
    In addition to the program guidance found in the circular, all 
recipients will need to certify that they will comply with the 
forthcoming rule issued under section 5326 for the Transit Asset 
Management plan, and SGR projects will need to be included in 
recipients' Transit Asset Management plans. This requirement is subject 
to FTA rulemaking and will become effective only after the rule is 
issued.
6. Period of Availability
    The State of Good Repair Program funds apportioned in this notice 
are available for obligation during FY 2016 plus three additional 
years. Accordingly, funds apportioned in FY 2016 must be obligated in 
grants by September 30, 2019. Any FY 2016 apportioned funds that remain 
unobligated at the close of business on September 30, 2019 will revert 
to FTA for reapportionment under the State of Good Repair Program.
7. What's New and Other Program Highlights
    High intensity motorbus funds may be used for any project eligible 
under section 5337(b)(1). Therefore, these funds may be used to 
maintain rail fixed guideways as well as to maintain high intensity 
motorbus equipment and facilities
    Recipients may now use up to one-half of one percent of their 
section 5307 funds to support workforce development activities at an 80 
percent Federal share; the eligible workforce development activities 
are defined in Section 5314; see Section IV. K. of this notice for more 
information. This provision is new in section 5314 and is in addition 
to the one-half of one percent that recipients may use for training 
activities with the National Transit Institute.

O. Grants for Buses and Bus Facilities Program (49 U.S.C. 5339)

    The section 5339 program provides funding to replace, rehabilitate, 
and purchase buses and related equipment as well as construct bus-
related facilities.
    Additional guidance on the section 5339(a) formula program can be 
found in FTA Circular 5100.1, which was published on May 18, 2015. This 
circular will be updated to reflect the amendments to section 5339 by 
the FAST Act. Information on the 5339(b) Buses and Bus Facilities 
Competitive Grant Program and the Section 5339(c) Low or No Emission 
Bus Competitive Grant Program will be published in a forthcoming Notice 
of Funding Availability. For more information about the Bus and Bus 
Facilities program, contact Sam Snead, Office of Transit Programs, at 
(202) 366-1089 or [email protected].
1. Authorized Amounts
    The FAST Act authorizes a total of $695,800,000 for FY 2016, 
$719,960,000 for FY 2017, $747,030,000 for FY 2018, $777,020,000 for FY 
2019 and $808,650,000 for FY 2020 for the section 5339 Program, as 
shown below.

 
----------------------------------------------------------------------------------------------------------------
           Fiscal year                 2016            2017            2018            2019            2020
----------------------------------------------------------------------------------------------------------------
5339(a) Formula Program.........    $427,800,000    $436,360,000    $445,519,476    $454,964,489    $464,609,736
5339(b) Bus Discretionary.......     213,000,000     228,600,000     246,514,000     267,059,980     289,044,179
5339(c) Low or No Emission            55,000,000      55,000,000      55,000,000      55,000,000      55,000,000
 Discretionary..................
                                 -------------------------------------------------------------------------------
    Section 5339 Total..........     695,800,000     719,960,000     747,033,476     777,024,469     808,653,915
----------------------------------------------------------------------------------------------------------------

2. Funding Availability
    In FY 2016, $427,800,000 is available for the section 5339(a) Bus 
and Bus Facilities formula program. After the 0.75 percent take-down 
for oversight, $424,591,500 is available to be apportioned to States 
and urbanized areas.

              Grants for Buses and Bus Facilities--FY 2015
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation (Formula)..........................    $427,800,000
Oversight Deduction....................................      (3,208,500)
                                                        ----------------
  Total Apportioned (Formula)..........................     424,591,500
Total Appropriation (Discretionary)....................     268,000,000
Oversight Deduction....................................      (2,010,000)
                                                        ----------------
  Total to be Allocated (Discretionary)................     265,990,000
------------------------------------------------------------------------

    Table 17 shows the FY 2015 Bus and Bus Facilities formula 
apportionments to States, Territories, and urbanized areas.
3. Basis for Allocation
    Section 5339(a) Bus and Bus Facility formula program funds are 
apportioned to States, territories, and designated recipients based on 
a statutory formula. Under the National Distribution, each State is 
allocated $1.75 million and each territory is allocated $500,000 for 
use anywhere in the State or territory. The remainder of the available 
funding is then apportioned for UZAs based on population, vehicle 
revenue miles and passenger miles using the same apportionment formula 
and allocation process as section 5307. Funds for UZAs under 200,000 in 
population are apportioned to the State through a section 5339(a) 
Governor's Apportionment for allocation to eligible recipients within 
such areas of the State at the Governor's discretion. Funds for UZAs 
with populations of 200,000 or more are apportioned directly to one or 
more designated recipient(s) within each UZA for allocation to eligible 
projects and recipients within the UZA.
4. Eligible Expenses
    Eligible capital projects continue to include projects to replace, 
rehabilitate, and purchase buses and related equipment, and projects to 
construct bus-related facilities.

[[Page 7917]]

    Recipients may now use up to one-half of one percent of their 
section 5307 funds to support workforce development activities at an 80 
percent Federal share; the eligible workforce development activities 
are defined in Section 5314; see Section IV. K. of this notice for more 
information. This provision is new in section 5314 and is in addition 
to the one-half of one percent that recipients may use for training 
activities with the National Transit Institute.
5. Requirements
    The FAST Act modifies the definition of eligible recipients under 
Section 5339(a) to now include local governmental entities that operate 
fixed route bus service. Accordingly eligible recipients now include 
(1) designated recipients that allocate funds to fixed route bus 
operators, (2) States, and (3) local governmental entities that operate 
fixed route bus service and are direct recipients of Section 5307 
funding. Eligible subrecipients continue to include public agencies or 
private nonprofit organizations engaged in public transportation, 
including those providing services open to a segment of the general 
public, as defined by age, disability, or low income. Consistent with 
the application of other changes under the FAST Act, this change to the 
definition of eligible recipients applies to funding apportioned in 
previous fiscal years that remains available for obligation.
    The requirements of section 5307 apply to recipients of section 
5339 funds within an urbanized area. The requirements of Section 5311 
apply to recipients of section 5339 funds within rural areas. For 
additional program requirements, refer to FTA Circular 5100.1.
6. Period of Availability
    The Bus and Bus Facilities Formula Program funds apportioned in 
this notice are available for obligation during FY 2016 plus three 
additional years. Accordingly, funds apportioned in FY 2016 must be 
obligated in grants by September 30, 2019. Any FY 2016 apportioned 
funds that remain unobligated at the close of business on September 30, 
2019 will revert to FTA for reapportionment under the Bus and Bus 
Facilities Formula Program.
    Discretionary program funds authorized under section 5339(b) and 
(c) (Bus and LoNo) follow the same period of availability: Year of 
allocation plus three additional years.
7. What's New and Other Program Highlights
a. Cost Effective Capital Investment Pilot Program (49 U.S.C. 
5339(a)(9)
    Although it does not provide additional funding, as authorized 
under section 5339(a)(9), FTA is establishing a pilot program to allow 
designated recipients in urbanized areas between 200,000 and 1 million 
in population to elect to pool their section 5339(a) formula 
allocations with other designated recipients within their respective 
states. The purpose of this provision is to allow for the transfer of 
formula funding within a State in a manner that supports the transit 
asset management plans of the participating designated recipients.
    A State that intends to participate in this pilot program beginning 
in FY 2016 must submit a request to establish a State Pool to the FTA 
section 5339 Program Manager, Samuel Snead, ([email protected]) by 
March 31, 2016. The request must identify the urbanized areas that will 
participate in the pool for FY 2016, and must include a letter from 
each participating designated recipient, and from any affected eligible 
recipients of 5339(a) funds within the urbanized area, indicating their 
intention to participate in this pooling provision for FY 2016. An 
urbanized area that participates in a State Pool must contribute its 
entire section 5339(a) apportionment for the fiscal years in which it 
participates in the pool. A designated recipient for a multistate area 
may participate in only one State Pool. A State that does not establish 
a State Pool in FY 2016 may choose to begin participating in this 
provision in a future fiscal year, but should be aware that the 
benefits of pooling program funds will be diminished over a shorter 
duration.
    For FY 2016, the request must specify the proposed distribution of 
the pooled funding and must provide a detailed explanation of how this 
distribution will support the transit asset management plans of each 
participating designated recipient, including any eligible recipients 
to which the designated recipient will allocate funding. Upon approval, 
FTA will make the requested amounts of program funding available to the 
urbanized areas as directed in the request.
    A State that elects to participate in this pilot program will be 
required to develop an allocation plan for the period of fiscal years 
2016 through 2020 that ensures that a designated recipient 
participating in the State's pool receives under the program an amount 
of funds that equals the amount of funds that would have otherwise been 
available to the designated recipient for that period pursuant to the 
formulas provided. The amounts in the State Pool will be apportioned 
separately from funds apportioned to the State under the Governor's 
Apportionment for urbanized areas under 200,000 in population, and will 
be made available directly by FTA to the participating urbanized areas, 
as directed in the approved allocation plan. An allocation plan may be 
revised for future fiscal years, provided that it remains compliant 
with the requirement to ensure equity over the period the pool is in 
effect.
    Approved requests to establish a State Pool for the specified UZAs 
will remain in effect until cancelled at the request of the State or 
one or more designated recipients. If a State or designated recipient 
elects to end its participation in this pooling provision in any future 
fiscal year, FTA will adjust the formula allocations so that the total 
amount that each affected urbanized area has received over the fiscal 
years in which it participated, plus the following apportionment, 
equals the amount it would have received over this period had it not 
participated in the State pool. Adjustments will be made using the 
formula apportionment factors used for each of the affected fiscal 
years.
    After the pools are determined, FTA will publish a supplementary 
table showing the participating UZAs, the State total, and the amounts 
for each UZA for FY 2016. In future years, the States must provide the 
amounts determined by August 31 (in an updated allocation plan), so 
that FTA can publish the breakdowns and make the funds available in the 
Apportionment Notice.
b. Program Management Plans
    As a result of the changes to the definition of eligible recipients 
under the FAST Act, designated recipients are no longer required to 
obligate grants on behalf of entities that are eligible direct 
recipients of Section 5307 funds. Accordingly, FTA no longer requires 
designated recipients to maintain program management plans (PMPs) if 
they do not manage any sub-awards of section 5339 funds.

P. Growing States and High Density States Formula Factors (49 U.S.C. 
5340)

    The FAST Act continues the use of formula factors to distribute 
additional funds to the section 5307 and section 5311 programs for 
Growing States and High Density States. FTA will continue to publish 
single urbanized and rural apportionments that show the total

[[Page 7918]]

amount for 5307 and 5311 programs that includes section 5340 
apportionments for these programs.
1. Authorized Amounts
    The FAST Act authorizes $536,261,539 for FY 2016, $544,433,788 for 
FY 2017, $552,783,547 for FY 2018, $561,315,120 for FY 2019 and 
$570,032,917 for FY 2020 for the Growing States and High Density States 
Formula factors, as shown below:

 
----------------------------------------------------------------------------------------------------------------
           Fiscal year                 2016            2017            2018            2019            2020
----------------------------------------------------------------------------------------------------------------
Growing States..................    $272,297,082    $279,129,509    $286,132,747    $293,311,066    $300,668,843
High Density States.............     263,964,457     265,304,279     266,650,800     268,004,054     269,364,074
                                 -------------------------------------------------------------------------------
    Total Funds Authorized......     536,261,539     544,433,788     552,783,547     561,315,120     570,032,917
----------------------------------------------------------------------------------------------------------------

2. FY 2016 Funding Availability
    In FY 2016, $536,261,539 is available for apportionment in 
accordance with the formula factors prescribed for Growing States and 
High Density States set forth in section 5340 for FY 2016. The FAST Act 
did not change the funding formula.

     Growing States and High Density States Formula Factors--FY 2016
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.....................................    $536,261,539
Total Apportioned.......................................     536,261,539
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    Under the Growing States portion of the section 5340 formula, FTA 
projects each State's 2025 population by comparing each State's 
apportionment year population (as determined by the Census Bureau) to 
the State's 2010 Census population and extrapolating to 2025 based on 
each State's rate of population growth between 2010 and the 
apportionment year. Each State receives a share of Growing States funds 
on the basis of its projected 2025 population relative to the 
nationwide projected 2025 population.
    Once each State's share is calculated, funds attributable to that 
State are divided into an urbanized area allocation and a non-urbanized 
area allocation on the basis of the percentage of each State's 2010 
Census population that resides in urbanized and non-urbanized areas. 
Urbanized areas receive portions of their State's urbanized area 
allocation on the basis of the 2010 Census population in that urbanized 
area relative to the total 2010 Census population in all urbanized 
areas in the State. These amounts are added to the Urbanized Area's 
section 5307 apportionment.
    The States' rural area allocation is added to the allocation that 
each State receives under the section 5311 Formula Grants for Rural 
Areas program.
    The High Density States portion of the section 5340 formula are 
allocated to urbanized areas in States with a population density equal 
to or greater than 370 persons per square mile. Based on this threshold 
and 2010 Census data, the States that qualify are Maryland, Delaware, 
Massachusetts, Connecticut, Rhode Island, New York and New Jersey 
(these are the same States that qualified under SAFETEA-LU and based on 
2000 Census data). The amount of funds provided to each of these seven 
States is allocated on the basis of the population density of the 
individual State relative to the population density of all seven 
States. Once funds are allocated to each State, funds are then 
allocated to urbanized areas within the States on the basis of an 
individual urbanized area's population relative to the population of 
all urbanized areas in that State.

Q. Washington Metropolitan Area Transit Authority Grants

    Under the FY 2016 Appropriations Act, $150 million is available for 
the period October 1, 2015 through September 30, 2016 for grants to the 
Washington Metropolitan Area Transit Authority (WMATA). After the one 
percent oversight takedown, $148.5 million is available for obligation. 
Such funding is authorized under section 601 of the Passenger Rail 
Investment and Improvement Act of 2008. See Public Law 110-432, 
Division B, Title VI.

     Washington Metropolitan Area Transit Authority Grants--FY 2016
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation....................................    $150,000,000
Oversight Deduction....................................      (1,500,000)
                                                        ----------------
  Total Apportioned....................................     148,500,000
------------------------------------------------------------------------

    Grants may be provided for capital and preventive maintenance 
expenditures for WMATA after it has been determined that WMATA has 
placed the highest priority on investments that will improve the safety 
of the system, including but not limited to fixing the track signal 
system, replacing 1000 series railcars, installing guarded turnouts, 
buying equipment for wayside worker protection, and installing rollback 
protection on cars that are not equipped with the safety feature. FTA 
will communicate further program requirements directly to WMATA.

V. FTA Policy and Procedures for FY 2016 Grants

A. Automatic Pre-Award Authority To Incur Project Costs

1. Caution to New Grantees
    While FTA provides pre-award authority to incur expenses before 
grant award for formula programs, it recommends that first-time grant 
recipients NOT utilize this automatic pre-award authority without 
verifying with the appropriate FTA Regional Office that all pre-
requisite requirements have been met. As a new grantee, it is easy to 
misunderstand pre-award authority conditions and be unaware of all of 
the applicable FTA requirements that must be met in order to be 
reimbursed for project expenditures incurred in advance of grant award. 
FTA programs have specific statutory requirements that are often 
different from those for other Federal grant programs with which new 
grantees may be familiar. If funds are expended for an ineligible 
project or activity, or for an eligible activity but at an 
inappropriate time (e.g., prior to NEPA completion), FTA will be unable 
to reimburse the project sponsor and, in certain cases, the entire 
project may be rendered ineligible for FTA assistance.
2. Policy
    FTA provides pre-award authority to incur expenses before grant 
award for certain program areas described below. This pre-award 
authority allows grantees to incur certain project costs before grant 
approval and retain the eligibility of those costs for subsequent 
reimbursement after grant approval. The grantee assumes all risk and is 
responsible for ensuring that all conditions are met to retain 
eligibility.

[[Page 7919]]

This pre-award spending authority permits an eligible grantee to incur 
costs on an eligible transit capital, operating, planning, or 
administrative project without prejudice to possible future Federal 
participation in the cost of the project. In this notice, FTA provides 
pre-award authority through the authorization period of the FAST Act 
(October 1, 2015 through September 30, 2020) for capital assistance 
under all formula programs, so long as the conditions described below 
are met. FTA provides pre-award authority for planning and operating 
assistance under the formula programs without regard to the period of 
the authorization. All pre-award authority is subject to conditions and 
triggers stated below:
a. Operating, Planning, or Administrative Assistance
    FTA does not impose additional conditions on pre-award authority 
for operating, planning, or administrative assistance under the formula 
grant programs. Grantees may be reimbursed for expenses incurred before 
grant award so long as funds have been expended in accordance with all 
Federal requirements, and the grantee is otherwise eligible to receive 
the funding. In addition to cross-cutting Federal grant requirements, 
program specific requirements must be met. For example, a planning 
project must have been included in a Unified Planning Work Program 
(UPWP); a section 5310 project must have been included in a coordinated 
public transit-human services transportation plan (coordinated plan) 
and selected by the designated recipient before incurring expenses; 
expenditures on State Administration expenses under State Administered 
programs must be consistent with the State Management Plan (as defined 
in FTA Circular 9040.1G, Chapter 6). Designated recipients for section 
5310 have pre-award authority for the ten percent of the apportionment 
they may use for program administration.
b. Transit Capital Projects
    For transit capital projects, the date that costs may be incurred 
is: (1) For design and environmental review, the date of the 
authorization of formula funds or the date of the announcement of the 
discretionary allocation of funds for the project; and (2) for property 
acquisition, demolition, construction, and acquisition of vehicles, 
equipment, or construction materials for projects that qualify for a 
categorical exclusion pursuant to 23 CFR 771.118(c), the date of the 
authorization of formula funds or the date of the announcement of the 
discretionary allocation of funds for the project; and (3) for property 
acquisition, demolition, construction, and acquisition of vehicles, 
equipment, or construction materials for projects that require a 
categorical exclusion pursuant to 23 CFR 771.118(d), an environmental 
assessment, or an environmental impact statement, the date that FTA 
completes the environmental review process required by NEPA and its 
implementing regulations by its issuance of a Section 771.118(d) 
categorical exclusion determination, a Finding of No Significant Impact 
(FONSI), or a Record of Decision (ROD). For projects that qualify for a 
categorical exclusion pursuant to 23 CFR 771.118(c), if a project is 
subsequently found not to qualify for this CE, it will be ineligible 
for FTA assistance. FTA recommends that a grant applicant contact FTA's 
Regional Office for assistance in determining the appropriate 
environmental review process and level of documentation necessary 
before incurring costs for property acquisition, demolition, 
construction, and acquisition of vehicles, equipment, or construction 
materials. In particular, FTA encourages grant applicants to contact 
FTA's Regional Office before exercising pre-award authority for 
projects to which it believes a CE at 23 CFR 771.118(c)(8), (c)(9), 
(c)(10), (c)(12), or (c)(13) applies. Before an applicant may incur 
costs when pre-award authority has not been granted, it must first 
obtain a written Letter of No Prejudice (LONP) from FTA. To obtain an 
LONP, a grantee must submit a written request accompanied by adequate 
information and justification to the appropriate FTA regional office, 
as described in section 4 below.
c. Public Transportation Innovation, Technical Assistance and Workforce 
Development
    Unless provided for in an announcement of project selections, pre-
award authority does not apply to section 5312 Public Transportation 
Innovation projects or section 5314 Technical Assistance and Workforce 
Development. Before an applicant may incur costs for activities under 
these programs, it must first obtain a written Letter of No Prejudice 
(LONP) from FTA. To obtain an LONP, a grantee must submit a written 
request accompanied by adequate information and justification to the 
appropriate FTA headquarters office. Information about LONP procedures 
may be obtained from the appropriate headquarters office.
3. Conditions
    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.
    iii. No action will be taken by the grantee that prejudices the 
legal and administrative findings that the Federal Transit 
Administration must make in order to approve a project.
    iv. Local funds expended by the grantee after the date of the pre-
award authority will be eligible for credit toward local match or 
reimbursement if FTA later makes a grant or grant amendment for the 
project. Local funds expended by the grantee before the date of the 
pre-award authority will not be eligible for credit toward local match 
or reimbursement. Furthermore, the expenditure of local funds or the 
undertaking of certain activities that would compromise FTA's ability 
to comply with Federal environmental laws (e.g., project implementation 
activities such as land acquisition, demolition, or construction before 
the date of pre-award authority) may render the project ineligible for 
FTA funding.
    v. The Federal amount of any future FTA assistance awarded to the 
grantee 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/local match ratio at the time the funds are 
obligated.
    vi. For funds to which the pre-award authority applies, the 
authority expires with the lapsing of the fiscal year funds.
    vii. When a grant for the project is subsequently awarded, the 
grant and the Federal Financial Report in TrAMS must indicate the use 
of pre-award authority.
    viii. Planning, Environmental, and Other Federal requirements.
    All Federal grant requirements must be met at the appropriate time 
for the project to remain eligible for Federal funding. The growth of 
the Federal transit program has resulted in a growing number of 
inexperienced grantees who find compliance with Federal planning and 
environmental laws increasingly challenging.
    FTA has modified its approach to pre-award authority, and the date 
that costs may be incurred is as follows. For design and environmental 
review, costs

[[Page 7920]]

may be incurred as of the date of the authorization of formula funds or 
the date of the announcement of the discretionary allocation of funds 
for the project. For property acquisition, demolition, construction, 
and acquisition of vehicles, equipment, or construction materials for 
projects that require a categorical exclusion pursuant to 23 CFR 
771.118(d), an environmental assessment, or an environmental impact 
statement, costs may be incurred as of the date that FTA completes the 
environmental review process required by NEPA and its implementing 
regulations (i.e., through issuance of a Section 771.118(d) categorical 
exclusion determination, a Finding of No Significant Impact (FONSI), or 
a Record of Decision (ROD)). For pre-award authority triggered by the 
completion of the NEPA process, the completion of planning and air 
quality requirements is a prerequisite, as those activities are 
completed prior to conclusion of the environmental review process.
    Formula funds must be authorized or appropriated and earmarked 
project allocations published or announced before pre-award authority 
can be considered.
    The requirement that a project be included in a locally-adopted 
Metropolitan Transportation Plan, the metropolitan transportation 
improvement program and federally-approved statewide transportation 
improvement program (23 CFR part 450) must be satisfied before the 
grantee may advance the project beyond planning and preliminary design 
with non-federal funds under pre-award authority. If the project is 
located within an EPA-designated non-attainment or maintenance area for 
air quality, the conformity requirements of the Clean Air Act, 40 CFR 
part 93, must also be met before the project may be advanced into 
implementation-related activities under pre-award authority triggered 
by the completion of the NEPA process. For projects that qualify for a 
categorical exclusion pursuant to 23 CFR 771.118(c), if a project is 
subsequently found not to qualify for this CE, it will be ineligible 
for FTA assistance. For all other projects, compliance with NEPA and 
other environmental laws and executive orders (e.g., protection of 
parklands, wetlands, and historic properties) must be completed before 
State or local funds are spent on implementation activities, such as 
site preparation, construction, and acquisition, for a project that is 
expected to be subsequently funded with FTA funds.
    For a planning project to have pre-award authority, the planning 
project must be included in a MPO-approved Unified Planning Work 
Program (UPWP) that has been coordinated with the State.
    ix. Federal procurement procedures, as well as the whole range of 
applicable Federal requirements (e.g., Buy America, Davis-Bacon Act, 
and Disadvantaged Business Enterprise) must be followed for projects in 
which Federal funding will be sought in the future. Failure to follow 
any such requirements could make the project ineligible for Federal 
funding. In short, this increased administrative flexibility requires a 
grantee to make certain that no Federal requirements are circumvented 
through the use of pre-award authority.
    x. All program specific requirements must be met. For example, 
projects under section 5310 must comply with specific program 
requirements, including coordinated planning.
    Before incurring costs, grantees are strongly encouraged to consult 
with the appropriate FTA Regional office regarding the eligibility of 
the project for future FTA funds and for questions on environmental 
requirements, or any other Federal requirements that must be met.
4. Pre-Award Authority for the Fixed Guideway Capital Investment Grant 
Program (New and Small Starts Projects and Core Capacity Projects)
    Projects proposed for section 5309 Capital Investment Grant (CIG) 
program funds are required to follow a multi-step, multi-year process 
defined in law. For New Starts and Core Capacity projects, this process 
includes three phases--project development (PD), engineering, and 
construction. For Small Starts projects, this process includes two 
phases--PD and construction. After receiving a letter from the project 
sponsor requesting entry into the PD phase, FTA must respond in writing 
within 45 days whether the information was sufficient for entry. If 
FTA's correspondence indicates the information was sufficient and the 
New Starts, Small Starts or Core Capacity project enters PD, FTA 
extends pre-award authority to the project sponsor to incur costs for 
PD activities. PD activities include the work necessary to complete the 
environmental review process and as much engineering and design 
activities as the project sponsor believes are necessary to support the 
environmental review process. Upon completion of the environmental 
review process with a ROD, FONSI, or CE determination by FTA for a New 
Starts, Small Starts, or Core Capacity Improvement project, FTA extends 
pre-award authority to project sponsors to incur costs for as much 
engineering and design as needed to develop a reasonable cost estimate 
and financial plan for the project, utility relocation, and real 
property acquisition and associated relocations for any property 
acquisitions not already accomplished as a separate project for 
hardship or protective purposes or right-of-way under 49 U.S.C. 
5323(q). For Small Starts projects, upon completion of the 
environmental review process and confirmation from FTA that the overall 
project rating is at least a Medium, FTA extends pre-award authority 
for vehicle purchases. Upon receipt of a letter notifying a New Starts 
or Core Capacity project sponsor of the project's approval into the 
engineering phase, FTA extends pre-award authority for vehicle 
purchases as well as any remaining engineering and design, demolition, 
and procurement of long lead items for which market conditions play a 
significant role in the acquisition price. The long lead items include, 
but are not limited to, procurement of rails, ties, and other 
specialized equipment, and commodities. Please contact the FTA Regional 
Office for a determination of activities not listed here, but which 
meet the intent described above. FTA provides this pre-award authority 
in recognition of the long-lead time and complexity involved with 
purchasing vehicles as well as their relationship to the ``critical 
path'' project schedule. FTA cautions grantees that do not currently 
operate the type of vehicle proposed in the project about exercising 
this pre-award authority. FTA encourages these sponsors to wait until 
later in the process when project plans are more fully developed. FTA 
reminds project sponsors that the procurement of vehicles must comply 
with all Federal requirements including, but not limited to, 
competitive procurement practices, the Americans with Disabilities Act, 
and Buy America. FTA encourages project sponsors to discuss the 
procurement of vehicles with FTA in regards to Federal requirements 
before exercising pre-award authority. Because there is not a formal 
engineering phase for Small Starts projects, FTA does not extend pre-
award authority for demolition and procurement of long lead items. 
Instead, this work must await receipt of a construction grant award or 
an expedited grant agreement.
a. Real Property Acquisition
    As noticed above, FTA extends pre-award authority for the 
acquisition of real property and real property rights for fixed 
Guideway Capital Investment Grant projects (New or Small Starts or

[[Page 7921]]

Core Capacity) upon completion of the environmental review process for 
that project. The environmental review process is completed when FTA 
signs an environmental Record of Decision (ROD) or Finding of No 
Significant Impact (FONSI), or makes a Categorical Exclusion (CE) 
determination. With the limitations and caveats described below, real 
estate acquisition may commence, at the project sponsor's risk. For 
FTA-assisted projects, any acquisition of real property or real 
property rights must be conducted in accordance with the requirements 
of the Uniform Relocation Assistance and Real Property Acquisition 
Policies Act (URA) and its implementing regulations, 49 CFR part 24. 
This pre-award authority is strictly limited to costs incurred: (i) To 
acquire real property and real property rights in accordance with the 
URA regulation, and (ii) to provide relocation assistance in accordance 
with the URA regulation. This pre-award authority is limited to the 
acquisition of real property and real property rights that are 
explicitly identified in the final environmental impact statement 
(FEIS), environmental assessment (EA), or CE document, as needed for 
the selected alternative that is the subject of the FTA-signed ROD or 
FONSI, or CE determination. This pre-award authority regarding property 
acquisition that is granted at the completion of the environmental 
review process does not cover site preparation, demolition, or any 
other activity that is not strictly necessary to comply with the URA, 
with one exception. That exception is when a building that has been 
acquired, has been emptied of its occupants, and awaits demolition 
poses a potential fire safety hazard or other hazard to the community 
in which it is located, or is susceptible to reoccupation by vagrants. 
Demolition of the building is also covered by this pre-award authority 
upon FTA's written agreement that the adverse condition exists. Pre-
award authority for property acquisition is also provided when FTA 
makes a CE determination for a protective buy or hardship acquisition 
in accordance with 23 CFR 771.117(d)(12). Pre-award authority for 
property acquisition is also provided when FTA completes the 
environmental review process for the acquisition of right-of-way as a 
separate project in accordance with 49 U.S.C. 5323(q). When a tiered 
environmental review in accordance with 23 CFR 771.111(g) is used, pre-
award authority is NOT provided upon completion of the first tier 
environmental document except when the Tier-1 ROD or FONSI signed by 
FTA explicitly provides such pre-award authority for a particular 
identified acquisition. Project sponsors should use pre-award authority 
for real property acquisition relocation assistance with a clear 
understanding that it does not constitute a funding commitment by FTA. 
FTA provides pre-award authority upon completion of the environmental 
review process for real property acquisition and relocation assistance 
to maximize the time available to project sponsors to move people out 
of their homes and places of business, in accordance with the 
requirements of the URA, but also with maximum sensitivity to the 
circumstances of the people so affected.
b. Reimbursement of Costs Incurred Under Pre-Award Authority
    Although FTA provides pre-award authority for property acquisition, 
long lead items, and vehicle purchases upon completion of the 
environmental review process, FTA will not make a grant to reimburse 
the sponsor for real estate activities, vehicle purchases or purchases 
of long lead items conducted under pre-award authority until the 
project receives its construction grant. This is to ensure that Federal 
funds are not risked on a project whose advancement into construction 
is still not yet assured.
c. National Environmental Policy Act (NEPA) Activities
    NEPA requires that major projects proposed for FTA funding 
assistance be subjected to a public and interagency review of the need 
for the project, its environmental and community impacts, and 
alternatives to avoid and reduce adverse impacts. Projects of more 
limited scope also need a level of environmental review, either to 
support an FTA finding of no significant impact (FONSI) or to 
demonstrate that the action is categorically excluded (i.e., CE) from 
the more rigorous level of NEPA review. FTA's regulation titled 
``Environmental Impact and Related Procedures,'' at 23 CFR part 771 
states that the costs incurred by a grant applicant for the preparation 
of environmental documents requested by FTA are eligible for FTA 
financial assistance (23 CFR 771.105(e)). Accordingly, FTA extends pre-
award authority for costs incurred to comply with NEPA regulations and 
to conduct NEPA-related activities, effective as of the earlier of the 
following two dates: (1) The date of the Federal approval of the 
relevant STIP or STIP amendment that includes the project or any phase 
of the project, or that includes a project grouping under 23 CFR 
450.216(j) that includes the project; or (2) the date that FTA approves 
the project into the project development phase of the CIG program. The 
grant applicant must notify the FTA Regional Office upon initiation of 
the Federal environmental review process in accordance with the ``Dear 
Colleague'' letter from the FTA Administrator dated February 24, 2011. 
NEPA-related activities include, but are not limited to, public 
involvement activities, historic preservation reviews, section 4(f) 
evaluations, wetlands evaluations, endangered species consultations, 
and biological assessments. This pre-award authority is strictly 
limited to costs incurred to conduct the NEPA process and associated 
engineering, and to prepare environmental, historic preservation and 
related documents. When a New Starts, Small Starts, or Core Capacity 
project is granted pre-award authority for the environmental review 
process, the reimbursement for NEPA activities conducted under pre-
award authority may be sought at any time through section 5307 
(Urbanized Area Formula Program) or the flexible highway programs (STP 
and CMAQ). Reimbursement from the section 5309 CIG program for NEPA 
activities conducted under pre-award authority is provided only for 
expenses incurred after entry into the project development phase and 
only once a construction grant agreement is signed. As with any pre-
award authority, FTA reimbursement for costs incurred is not 
guaranteed.
d. Other New and Small Starts and Core Capacity Project Activities 
Requiring Letter of No Prejudice (LONP)
    Except as discussed in paragraphs i through iii above, a CIG 
project sponsor must obtain a written LONP from FTA before incurring 
costs for any activity not covered by pre-award authority. To obtain an 
LONP, an applicant must submit a written request accompanied by 
adequate information and justification to the appropriate FTA Regional 
Office, as described in B below.

B. Letter of No Prejudice (LONP) Policy

1. Policy
    LONP authority allows an applicant to incur costs on a project 
utilizing non-Federal resources, with the understanding that the costs 
incurred subsequent to the issuance of the LONP may be reimbursable as 
eligible expenses or eligible for credit toward the local match should 
FTA approve the project at a later date. LONPs are applicable to 
projects and project activities not covered by automatic pre-

[[Page 7922]]

award authority. The majority of LONPs will be for section 5309 Capital 
Investment Grant program projects (New or Small Starts or Core 
Capacity) undertaking activities not covered under automatic pre-award 
authority. LONPs may be issued for formula and discretionary funds 
beyond the life of the current authorization or FTA's extension of 
automatic pre-award authority; however, the LONP is limited to a five-
year period, unless otherwise authorized in the LONP. Receipt of 
Federal funding under any program is not implied or guaranteed by an 
LONP.
2. Conditions and Federal Requirements
    The conditions and requirements for pre-award authority specified 
in section V.4.ii and V.4.iii above apply to all LONPs. Because project 
implementation activities may not be initiated before completion of the 
environmental review process, FTA will not issue an LONP for such 
activities until the environmental review process has been completed 
with a ROD, FONSI, or CE determination.
3. Request for LONP
    Before incurring costs for project activities not covered by 
automatic pre-award authority, the project sponsor must first submit a 
written request for an LONP, accompanied by adequate information and 
justification, to the appropriate regional office and obtain written 
approval from FTA. FTA approval of an LONP is determined on a case-by-
case basis.

C. FY 2016 Annual List of Certifications and Assurances

    The FY 2016 Certifications and Assurances and Master Agreement must 
be used for all grants and cooperative agreements awarded in FY 2016, 
once available. All recipients with active projects will be required to 
sign the FY 2016 Certifications and Assurances within 90 days of the FY 
2016 Certifications and Assurances being made available in TrAMS.

D. Civil Rights Requirements

1. Disadvantaged Business Enterprise (DBE)
    The DOT Disadvantaged Business Enterprise (DBE) program is an 
affirmative action program designed to combat discrimination and its 
continuing effects by providing contracting opportunities on federally-
funded highway, transit, and airport projects for small businesses 
owned and controlled by socially and economically disadvantaged 
individuals. Recipients are required to report to FTA their transit 
vehicle manufacturer awards. Recipients must do this within thirty (30) 
days of making the award and must submit: (1) The name of the 
successful bidder; and (2) the total dollar value of the contract. 
Recipients must report this information at the time the purchase is 
finalized. In other words, report the award when the recipient knows 
who the vehicle manufacturer will be and the exact amount of the 
contract award. Please remember that only certified transit vehicle 
manufacturers (TVM) can bid and receive FTA-funded vehicle 
procurements. Recipients may check the list of certified TVMs by 
visiting the FTA TVM Web page at http://www.fta.dot.gov/12326_5626.html 
or checking with a regional civil rights officer. In addition, for 
joint and cooperative procurements, each FTA recipient must separately 
report the information when they or a subrecipient execute a purchase 
order for the specific number of vehicles being purchased. This 
required information must be submitted to FTA on agency letterhead to 
the regional civil rights officer. FTA will work to develop an 
electronic process for tracking transit vehicle purchases in FY 2016.
2. Title VI of the Civil Rights Act of 1964
    The U.S. DOT's Title VI implementing regulations are found in 49 
CFR part 21. FTA's Title VI Circular (4702.1B) provides guidance on 
carrying out the regulatory requirements. For recipients in urbanized 
areas of 200,000 or more in population and with 50 or more fixed-route 
vehicles in peak service, the recipient must conduct a service equity 
analysis for all service changes that meet the recipient's definition 
of ``major service change'' prior to implementing the service change. 
Recipients also must conduct a fare equity analysis for all fare 
increases or decreases prior to implementing a fare change. 
Furthermore, an environmental justice analysis is not a substitute for 
a Title VI service equity analysis triggered by a major service change 
or fare change. As recipients prepare their budgets, it is vitally 
important that an appropriate major service change or fare change 
analysis is completed prior to taking the proposed action. Should you 
have any questions, please refer to 4702.1B, utilize the webinars 
posted on FTA's Title VI Web page, and contact your Regional Civil 
Rights Officer.
3. Americans with Disabilities Act (ADA)
    Effective July 13, 2015, DOT revised it rules under the ADA and 
section 504 of the Rehabilitation Act of 1973, as amended, specifically 
to provide that transportation entities are required to make reasonable 
modifications to policies, practices, and procedures to avoid 
discrimination and ensure that their programs are accessible to 
individuals with disabilities. Recipients must have a process in place 
for making decisions and providing reasonable modifications under the 
ADA to their policies and practices, as set forth in 49 CFR 37.169. 
Recipients are reminded that this rulemaking also revised the 
longstanding local complaint process requirements in 49 CFR 27.13, 
adding additional elements that must be part of the local process. For 
example, recipients must now sufficiently advertise to the public the 
process for filing a disability-related complaint (such as on their Web 
sites) and communicate their response to the complainant. On November 
4, 2015, FTA issued ADA Circular 4710.1, which provides guidance to 
recipients on carrying out the existing provisions of the ADA and 
section 504, including those involving reasonable modification and 
local complaint processing.
4. Equal Employment Opportunity
    FTA's nondiscrimination statute found at 49 U.S.C. 5332 prohibits 
discrimination on the basis of sex. Other Federal statutes such as 
Title VI and Title VII of the Civil Rights Act of 1964 have been 
interpreted to prohibit discrimination on the basis of gender identity, 
including transgender status and nonconformity with gender stereotypes. 
Therefore, FTA interprets section 5332 to also include gender-identity 
discrimination.

E. Consolidated Planning Grants (CPG)

    FTA and FHWA planning funds under both the Metropolitan Planning 
and State Planning and Research Programs can be consolidated into a 
single consolidated planning grant, awarded by either FTA or FHWA. The 
CPG eliminates the need to monitor individual fund sources, if several 
have been used, and ensures that the oldest funds will always be used 
first. Under the CPG, States can report metropolitan planning program 
expenditures (to comply with the Single Audit Act) for both FTA and 
FHWA under the Catalogue of Federal Domestic Assistance number for 
FTA's Metropolitan Planning Program (20.505). Additionally, for States 
with an FHWA Metropolitan Planning (PL) fund-matching ratio greater 
than 80 percent, the State can waive the 20 percent local share 
requirement, with FTA's concurrence, to allow FTA funds used for 
metropolitan planning in a CPG to be granted at the higher FHWA rate.

[[Page 7923]]

For some States, this Federal match rate can exceed 90 percent.
    States interested in transferring planning funds between FTA and 
FHWA should contact the FTA Regional Office or FHWA Division Office for 
more detailed procedures. Current guidelines are included in Federal 
Highway Administration Memorandum dated July 12, 2007, ``Information: 
Final Transfers to Other Agencies that Administer Title 23 Programs.''
    For further information on CPGs, contact Ann Souvandara, Office of 
Budget and Policy, FTA, at (202)366-0649.
1. Grant Application Procedures
    All applications for FTA funds should be submitted to the 
appropriate FTA Regional Office. All applications are filed 
electronically. As noted in Section III of this notice, beginning on 
February 16, 2016, FTA will use the TrAMS system as a replacement for 
TEAM. FTA regional staff is responsible for working with grantees to 
review and process grant applications. In order for an application to 
be considered complete and for FTA to assign a Federal Award 
Identification Number (FAIN), enabling submission in TrAMS, and 
submission to the Department of Labor (when applicable), the following 
requirements must be met:
    i. Recipient has registered in the System for Award Management 
(SAM) and its registration is current. If your agency is not registered 
or needs to ensure it is current, visit the SAM Web site at (https://www.sam.gov).
    ii. Recipient's contact information, including Dun and Bradstreet 
Data Universal Numbering System (DUNS), is correct and up-to-date. If 
requested by phone (1-866-705-5711), DUNS is provided immediately. If 
your organization does not have an DUNS, you will need to go to the Dun 
& Bradstreet Web site at http://fedgov.dnb.com/webform to obtain the 
number.
    iii. Recipient has properly submitted its annual certifications and 
assurances.
    iv. Recipient's Civil Rights submissions are current and approved.
    v. Documentation is on file to support recipient's status as either 
a designated recipient (for the program and area) or a direct 
recipient.
    vi. Funding is available, including any flexible funds included in 
the budget, and split letters or suballocation letters on file (where 
applicable) to support amount being applied for in grant application.
    vii. The project is listed in a currently approved Transportation 
Improvement Program (TIP); Statewide Transportation Improvement Program 
(STIP), or Unified Planning Work Program (UPWP).
    viii. All eligibility issues are resolved.
    ix. Required environmental findings are made.
    x. The application contains a well-defined scope of work including 
at least one project with accompanying project narratives, budget scope 
and activity line item information, Federal and non-Federal funding 
amounts, and milestones.
    xi. Major Capital Projects as defined by 49 CFR 633 Project 
Management oversight must document FTA has reviewed the project 
management plan and provided approval.
    xii. Milestone information is complete, or FTA determines that 
milestone information can be finalized before the grant is ready for 
award. FTA will also review status of other open grants' reports to 
confirm financial and milestone information is current on other open 
grants and projects.
    Before FTA can award grants for discretionary projects and 
activities, notification must be provided to the House and Senate 
authorizing and appropriations committees. Other important issues that 
impact FTA grant processing activities are discussed below.
a. System for Award Management (SAM) Registration and Dun and 
Bradstreet Universal Numbering System (DUNS) Number
    Each applicant or recipient of Federal Funds is required to: (1) Be 
registered in SAM before submitting its application; (2) provide a 
valid DUNS number in its application; and (3) continue to maintain an 
active SAM registration with current information at all times during 
which it has an active award or an application or plan under 
consideration by the Federal Transit Administration (FTA). FTA will not 
make an award to an applicant until the applicant has complied with all 
applicable DUNS and SAM requirements and, if an applicant has not fully 
complied with the requirements by the time the FTA is ready to make a 
Federal award, FTA may determine that the applicant is not qualified to 
receive a Federal award and use that determination as a basis for 
making a Federal award to another applicant.
    The System for Award Management (SAM) https://www.sam.gov/portal/SAM/ is the Official U.S. Government system that consolidated the 
capabilities of many systems, including the CCR, ORCA, and EPLS. There 
is no fee to register or use this site. Entities may register and 
update their information at no cost directly from the above site. SAM 
registration (formerly CCR registration) needs to be renewed at least 
annually.
b. Award Budgets--Scope Codes and Activity Line Items (ALI) Codes; 
Financial Purpose Codes
    FTA uses the Scope and Activity Line Item (ALI) Codes in the award 
budgets to track program trends, to report to Congress, and to respond 
to requests from the Inspector General and the Government 
Accountability Office (GAO), as well as to manage grants. The accuracy 
of the data is dependent on the careful and correct use of codes.
c. Designated and Direct Recipients Documentation
    For its formula programs, FTA primarily apportions funds to the 
Designated recipient in the large UZAs (areas over 200,000), or for 
areas under 200,000 (small UZAs and rural areas), it apportions the 
funds to the Governor, or its designee (e.g., State DOT). Depending on 
the program and as described in the individual program sections found 
in Section IV of this notice, further suballocation of funds may be 
permitted to eligible recipients who can then apply directly to FTA for 
the funding (direct recipients), so long as the required documentation 
is on file.
    For the programs in which FTA can make grants to eligible direct 
recipients, other than the designated recipient(s), recipients are 
reminded that documentation must be on file to support the (1) status 
of the recipient either as a designated recipient or direct recipient; 
and (2) the allocation of funds to the direct recipient.
    Documentation to support existing designated recipients for the UZA 
must also be on file at the time of the first application in FY 2016. 
Further, split letters and/or suballocation letters (Governor's 
Apportionment letters), must also be on file to support grant 
applications from direct recipients. If this information has been 
uploaded to a recipient's profile in TEAM, it will be migrated into 
TrAMS. Once suballocation letters for FY 2016 funding are finalized 
they should also be uploaded into TrAMS.
2. Payments
    Once a grant has been awarded and executed, requests for payment 
can be processed. To process payments FTA uses ECHO-Web, an Internet 
accessible system that provides grantees the capability to submit 
payment requests on-line, as well as receive user-IDs and passwords via 
email. New applicants

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should contact the appropriate FTA Regional Office to obtain and submit 
the registration package necessary for set-up under ECHO-Web.
3. Oversight
    FTA is responsible for conducting oversight activities to help 
ensure that grants recipients use FTA Federal financial assistance in a 
manner consistent with their intended purpose and in compliance with 
regulatory and statutory requirements. FTA conducts periodic oversight 
reviews to assess grantee compliance with applicable Federal 
requirements. Each Urbanized Area Formula Program recipient is reviewed 
every three years, (also known as FTA's Triennial Review); and States 
and state-wide public transportation agencies are reviewed periodically 
to assess the management practices and program implementation of FTA 
state-wide programs (e.g., Planning, Rural Areas, Enhanced Mobility of 
Seniors and Individuals with Disabilities Programs). Other more 
detailed reviews are scheduled based on an annual grantee oversight 
assessment. Important objectives of FTA's oversight program include, 
but are not limited to: Determining grantee compliance with Federal 
requirements; identifying technical assistance needs, and delivering 
technical assistance to meet those needs; spotting emerging issues with 
grantees in a forward-looking fashion; recognizing when there is a need 
for more in-depth reviews in the areas of procurement, financial 
management, and civil rights; and identifying grantees with recurring 
or systemic issues.
4. Technical Assistance
    As noted throughout the notice, FTA continues to rely on several of 
the existing program circulars for general program guidance. FTA is 
continuing to update the program circulars, with an opportunity for 
notice and comment (where warranted), to reflect amendments to chapter 
53 of title 49, U.S.C. made by the FAST Act. In the meantime, if you 
have any questions, please do not hesitate to contact FTA. FTA 
headquarters and regional staff will be pleased to answer your 
questions and provide any technical assistance you may need to apply 
for FTA program funds and manage the grants you receive. At its 
discretion, FTA may also use program oversight consultants to provide 
technical assistance to grantees on a case by case basis. This notice 
and the program guidance circulars previously identified in this 
document may be accessed via the FTA Web site at www.fta.dot.gov.

G. Grant Management

1. Formula Apportionment Data and Methodology
    FTA is publishing apportionment tables on its Web site for each 
program that reflects the full year appropriations less oversight take-
downs, as applicable. Tables displaying the funds available to eligible 
states, tribes, and urbanized areas have been posted to http://www.fta.dot.gov/apportionments. This Web site contains a page listing 
the apportionment and allocation tables for FY 2016 as well as links to 
prior year formula apportionment notices and tables and the NTD and 
Census data used to calculate the FY 2016 apportionments.
2. National Transit Database and Census Data Used in the FY 2016 
Apportionments
    Consistent with past practices, the calculations for sections 5307, 
5311, including 5311(j) (Tribal Transit), 5329, 5337, and 5339 programs 
rely on the most-recent transit service data reported to the National 
Transit Database (NTD), which in this case is the 2014 report year. In 
some cases where an apportionment is based on the age of the system, 
the age is calculated as of September 30, 2015, which was the last day 
before FY 2016 began. Any recipient or beneficiary of either the 
section 5307 or section 5311 program funds is required to report to the 
NTD. Additionally, a number of transit operators report to the NTD on a 
voluntary basis. For the 2014 report year, the NTD includes data from 
864 reporters in urbanized areas, 825 of which reported operating 
transit service. The NTD also includes data from 1,420 providers of 
rural transit service, which includes 130 Indian Tribes providing 
transit service.
    2010 Census data is used to determine population and population 
density for sections 5303, 5305, 5307 and 5339 as well as rural 
population and rural land area for Section 5311. The formulas for 
sections 5307, 5311, and 5311(j) include tiers where funding is 
allocated on the basis of the number of persons living in poverty, and 
the section 5310 formula program allocates funding on the basis of the 
population of older adults and people with disabilities. The Census 
Bureau no longer publishes decennial census data on persons living in 
poverty and persons with disabilities. As a result, since FY 13, FTA 
has been using the data for these populations available via the Census' 
American Community Survey (ACS). The NTD and census data that FTA used 
to calculate the apportionments associated with this notice can be 
found on FTA's Web site: www.fta.dot.gov/apportionments.
    The FY 2016 apportionments use data on low-income persons, persons 
with disabilities, and older adults from the 2009-2013 ACS five-year 
data set, which was published in December 2014. This data represent the 
most recent five-year ACS estimates that are available as of October 
1st for the year being apportioned. As was the case in prior years, 
data on low-income persons comes from ACS Table B17024, ``Age by Ratio 
of Income to Poverty in the Last Twelve Months,'' and data on people 
with disabilities under 65 years old comes from ACS Table S1810, 
``Disability Characteristics.'' For the FY 2016 apportionments, FTA is 
using data on older adults (over 65 years old) from ACS Table B01001, 
``Sex by Age'' after determining that the ACS table used in prior 
fiscal years (ACS Table S.0103, ``People over 65 in the United 
States'') did not include data for all urbanized areas.
3. Grant Reporting
    Recipients of FTA funds are reminded that all FTA grantees are 
required to report on their grants and that it is critical to ensure 
reports demonstrate that reasonable progress is being made on the 
project. At a minimum, all awards require a Federal Financial Report 
(FFR) and a Milestone Progress Report (MPR) on an annual basis, with 
some reports required quarterly or monthly depending on the recipient 
and the type of projects funded under the grant. The requirements for 
these reports and other reporting requirements can be found in FTA 
Circular 5010.1D, Grant Management Requirements, dated August 27, 2012. 
FTA staff, auditors, and contractors rely on the information provided 
in the FFR and MPR to review and report on the status of both financial 
and project-level activities contained in the grant. It is critical 
that recipients provide accurate and complete information in these 
reports and submit them by the required due date. Failure to report 
and/or demonstrate reasonable progress on projects can result in 
suspension or premature close-out of a grant.
4. Inactive Grants and Grant Closeout
    In FY 2016, FTA will continue to focus on inactive grants and 
grants that do not comply with reporting requirements. If appropriate, 
FTA will take action to close out and deobligate funds from these 
grants if reasonable progress is not being made. The efficient use of 
funds will further FTA's fulfillment of its mission to provide 
efficient and effective public

[[Page 7925]]

transportation systems for the nation. As inactive grants continue to 
be an audit finding within the DOT, FTA must take action to ensure its 
grants do not impact the DOT from receiving a ``clean audit'' opinion 
on its annual financial statement.
    In October of 2015, FTA identified a list of grants that were 
awarded on or prior to September 30, 2012 and have had no funds 
disbursed since September 30, 2014 or have never had a disbursement. 
FTA Regional Offices will be contacting grant recipients with grants 
that meet this criteria to notify them that FTA intends to close the 
grant and deobligate any remaining funds unless the grantee can provide 
information that demonstrates that the projects funded by the grant 
remain active and the grantee has a realistic schedule to expedite 
completion of the projects funded in the grant.
5. American Recovery and Reinvestment Act (ARRA) Transportation 
Investments Generating Economic Recovery (TIGER) Grants
    Recipients of open ARRA TIGER grants should be aware that, as a 
matter of law, all remaining ARRA funds MUST be disbursed from grants 
by the end of the 5th FY after funds were obligated. (See 31 U.S.C. 
1552.) For FTA ARRA TIGER projects, that requirement takes effect at 
the end of FY 2016. Accordingly, once ECHO closes for disbursements in 
late September 2016, all remaining funds within FTA ARRA TIGER funded 
grants will no longer be available to the grantee. These undisbursed 
funds will be deobligated from the grant. Even if a grantee has 
incurred costs or disbursed funds prior to the close of ECHO, if the 
grantee has not actually drawn down the funds by the time ECHO closes, 
FTA will be unable to reimburse the grantee. Therefore, grantees with 
open ARRA TIGER grants must ensure project activities are completed and 
all funds are drawn down before ECHO closes by late September 2016. 
This deadline does not apply to TIGER grants that are not funded by 
ARRA.

Therese W. McMillan,
Acting Administrator.
[FR Doc. 2016-02821 Filed 2-12-16; 8:45 am]
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