[Federal Register Volume 81, Number 128 (Tuesday, July 5, 2016)]
[Notices]
[Pages 43705-43707]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15801]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration


Fourth Allocation of Public Transportation Emergency Relief Funds 
in Response to Hurricane Sandy

AGENCY: Federal Transit Administration (FTA), DOT.

ACTION: Notice.

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SUMMARY: The Federal Transit Administration (FTA) announces the 
allocation of $834,612,566 through the Public Transportation Emergency 
Relief Program (Emergency Relief Program, Catalogue of Federal Domestic 
Assistance #20.527) for recovery projects to three FTA recipients with 
estimated damages that exceed the amounts of funding previously made 
available: The Metropolitan Transportation Authority of New York, the 
New Jersey Transit Corporation, and the Port Authority of New York and 
New Jersey. Funds allocated in this notice are in addition to funds 
allocated on March 29, 2013 (78 FR 19357), May 29, 2013 (78 FR 32296), 
and November 5, 2014 (79 FR 65762), and brings the total amount of 
Hurricane Sandy Emergency Relief funds allocated by FTA to date to 
$10.088 billion. Of that amount, $5,196,184,125 has been allocated for 
emergency response, recovery, and rebuilding projects and 
$4,891,883,625 has been allocated for resilience projects, which are 
designed to protect transit systems in the Hurricane Sandy disaster 
area from damages associated with future storms. With this notice, FTA 
has now fully allocated all of the funding made available under the 
Disaster Relief Appropriations Act of 2013 (Appropriations Act, Pub. L. 
113-2). FTA is allocating funds consistent with the requirements of the 
Appropriations Act, the FTA Emergency Relief Program 49 U.S.C. 5324, 
the Final Rule for the Emergency Relief Program, 49 CFR part 602, 
published in the Federal Register on October 7, 2014 (78 FR 23806), and 
all previously announced FTA policies and procedures for Hurricane 
Sandy Emergency Relief funding.
    In addition, this notice establishes a procedure for recipients to 
request the reallocation of funding previously allocated for resilience 
projects to fund eligible disaster recovery expenses in excess of the 
total amount of funding available from previous allocations, insurance 
payments, and the expected local cost share. Funds reallocated under 
this procedure must be used for disaster recovery expenses or be 
returned to FTA upon completion of the recovery effort. Reallocation 
requests are subject to the terms and conditions specified in this 
notice and must be approved by FTA.
    Unless specifically revised by this notice, all previously 
published program policies and requirements associated with Hurricane 
Sandy recovery and rebuilding funding remain in effect.

FOR FURTHER INFORMATION CONTACT: Contact the appropriate FTA Regional 
Office found at http://www.fta.dot.gov for application-specific 
information and other assistance needed in preparing an FTA grant 
application. For program-specific questions, please contact Adam 
Schildge, Office of Program Management, 1200 New Jersey Ave. SE., 
Washington, DC 20590, phone: (202) 366-0778, or email, 
[email protected]. For legal questions, contact Helen Serassio, 
Office of Chief Counsel, same address, phone: (202) 366-1974, or email, 
[email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Allocation of Hurricane Sandy Recovery Funding
II. Procedure for Reallocation of Resilience Funds for Disaster 
Recovery
III. Award Administration

I. Allocation of Hurricane Sandy Recovery Funding

    The FTA Emergency Relief (ER) Program provides FTA with the 
authority to reimburse emergency response and recovery costs for public 
transportation systems, including costs for projects to protect systems 
in danger of future damage (resilience projects), after an emergency or 
major disaster. The Disaster Relief Appropriations Act provides $10.9 
billion for FTA's Emergency Relief Program for recovery, relief, and 
resilience efforts in areas affected by Hurricane Sandy. However, as a 
result of the Balanced Budget and Emergency Deficit Control Act of 2011 
(Pub. L. 112-25) for fiscal year (FY) 2013, approximately five percent, 
or almost $545 million of the $10.9 billion, was subject to 
sequestration and is unavailable for Hurricane Sandy disaster relief, 
leaving approximately $10.349 billion available. In addition, $185 
million was transferred to the Federal Railroad Administration (FRA) 
leaving a balance of $10.164 billion. FTA has allocated the available 
funding in multiple tiers for emergency response, recovery and 
rebuilding, locally-prioritized resilience projects, competitively 
selected resilience projects, and through direct transfers to other DOT 
offices.

------------------------------------------------------------------------
                Purpose of allocation                  Amount allocated
------------------------------------------------------------------------
Response, Recovery and Rebuilding (including $834         $5,196,184,125
 million in this notice)............................
Locally-Prioritized Resilience......................       1,300,000,000

[[Page 43706]]

 
Competitive Resilience..............................       3,591,883,625
                                                     -------------------
  Total Allocations.................................  \1\ 10,088,067,750
------------------------------------------------------------------------
\1\ An additional $76,232,250 is available for oversight/administrative
  expenses for a total of $10,164,300,000.

    With this notice, FTA is allocating the remaining $834.6 million in 
available recovery funding on a proportional basis, based on previous 
FTA recovery allocations and detailed damage assessments submitted by 
the affected agencies that were prepared in cooperation with FTA and 
Federal Emergency Management Administration (FEMA) staff, including 
recently validated updates to these estimates. The damage assessments 
completed in the immediate aftermath of Hurricane Sandy estimated a 
recovery and rebuilding cost of $5.83 billion. During the summer of 
2015, FTA was notified by three of the affected transit agencies that 
the estimated cost of recovery and rebuilding has increased due to 
previously unknown latent damages, refinement of the cost estimates for 
recovery capital projects, and changes in the construction market since 
the original damage estimates were submitted. FTA required submission 
of the revised cost estimates by August 14, 2015. Based on those 
submittals, FTA independently verified the validity of proposed 
increases, and has determined that the estimated total cost of 
repairing the damage has increased by approximately $2.1 billion to a 
revised total estimated $7.9 billion.
    As this is the final allocation of funds, FTA is allocating these 
funds proportionally based on the current estimated unfunded recovery 
need for each agency, which takes into account the current revised 
estimated damage assessments as well as funds that have previously been 
allocated. Consistent with previous allocations and program policies, 
recovery funding allocated in this notice can be used for eligible 
recovery expenses in accordance with the Emergency Relief program 
requirements. This includes the recovery costs of transportation assets 
owned by other entities, to the extent those assets are used for public 
transportation purposes, and in a proportion consistent with written 
agreement(s) between the public transit agency and the owner of the 
asset.
    The approximately $834.6 million allocated in this notice includes 
approximately $817 million that was reserved for future allocation and 
a remaining balance of $17.473 million from the approximately $28 
million that FTA set aside in the March 29, 2013, Federal Register 
Notice of Allocation. Prior to determining the allocation amounts in 
this notice, FTA solicited requests for outstanding Hurricane Sandy 
disaster relief needs from other affected transit agencies. Based on 
the responses received, FTA has determined that there are no remaining 
disaster recovery needs beyond the three agencies included in this 
notice.

                                        Federal Transit Administration FTA Section 5324 Emergency Relief Program
                                                 [Allocations for Hurricane Sandy recovery, by agency *]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                        Additional
              State(s)                        Agency          Discretionary funding ID (current  Previous recovery     recovery and    Total allocations
                                                                         allocation)                allocations        restoration
--------------------------------------------------------------------------------------------------------------------------------------------------------
NY..................................  New York Metropolitan   D2016-SAND-003...................     $2,896,771,774       $432,019,737     $3,328,791,511
                                       Transportation
                                       Authority.
NY, NJ..............................  Port Authority of New   D2016-SAND-004...................      1,073,024,652        299,760,847      1,372,785,499
                                       York and New Jersey.
NJ..................................  New Jersey Transit      D2016-SAND-005...................        341,990,757        102,831,982        444,822,739
                                       Corporation.
Mult................................  Other affected          .................................         49,784,376                  0         49,784,376
                                       agencies.
                                                             -------------------------------------------------------------------------------------------
    Grand total.....................  ......................  .................................      4,361,571,559        834,612,566      5,196,184,125
--------------------------------------------------------------------------------------------------------------------------------------------------------
\*\ Allocation amounts reflect reductions due to sequestration. Recovery funds include capital and operating assistance

II. Procedure for Reallocation of Resilience Funds for Disaster 
Recovery

A. Policy

    FTA has determined that certain transit agencies have estimated 
total recovery and rebuilding costs that exceed the amount of funding 
made available for disaster recovery under the FTA ER Program. These 
damage estimates have increased due to the discovery of latent damages, 
refinement to project cost estimates, and changes in the construction 
market since the original estimates were submitted. The need for 
Federal assistance has also increased due to the use by recipients of 
statutory alternatives to local cost sharing and the undetermined 
status of insurance proceeds. Additionally, FTA has previously 
allocated funding to these agencies for resilience projects designed to 
protect the transit systems from damages associated with future natural 
disasters; however, a portion of this resilience funding has not yet 
been obligated or disbursed.
    Based on a review of the remaining unfunded disaster recovery 
needs, FTA will allow recipients the option to request a reallocation 
of unliquidated resilience funding for their remaining unfunded 
disaster recovery expenses.
    Each agency may request the reallocation of resilience funds up to 
a maximum amount that is based on most recent damage cost estimates 
submitted by the agencies as of August 14, 2015, and validated by FTA, 
insurance payments that have been received to date, and an expectation 
that agencies will provide a local cost share equal to at least 10 
percent of the total cost of Hurricane Sandy disaster recovery. The 
estimated maximum amount each agency may request to reallocate for FTA 
ER funding is shown in the table below. However, these amounts may 
increase or decrease based on additional validated recovery costs and/
or the receipt of additional insurance proceeds.

------------------------------------------------------------------------
                                         Estimated maximum amount of
               Agency                    resilience funds that may be
                                           reallocated ($ million)
------------------------------------------------------------------------
MTA-NY.............................  800.7
Port Authority.....................  466.6
New Jersey Transit.................  187.6
------------------------------------------------------------------------

    A transit agency's request for reallocation of resilience funds may 
include eligible repair work to transportation assets not owned by the 
transit agency, but used by it, if the transit agency provides 
documentation that: Demonstrates that the damage was caused by 
Hurricane Sandy; that the

[[Page 43707]]

asset is used for public transportation purposes; and; that the 
proposed share of the project cost is consistent with written 
agreement(s) between the public transit agency and the owner of the 
asset.
    In determining whether to approve a reallocation request, FTA will 
review the eligibility of the proposed project for Hurricane Sandy 
recovery funding. The reallocation request must include information 
sufficient for FTA to make the following determinations:
     The proposed project is a capital recovery project that 
addresses damage caused directly by Hurricane Sandy.
     The proposed recovery project is documented in previously 
validated damage estimates (original or revised) or in new 
documentation demonstrating that the damage was caused by Hurricane 
Sandy.
     For proposed recovery projects that include costs 
associated with repairing transportation assets owned by other 
entities, the applicant must provide documentation showing that the 
asset is used for public transportation purposes, and that the proposed 
share of the project cost is consistent with written agreement(s) 
between the public transit agency and the owner of the asset.
     The proposed recovery project complies with the 
Appropriations Act, the FTA's Emergency Relief Program Final Rule and 
applicable FTA guidance.
     If funds will be reallocated from a resilience project for 
which FTA has disbursed funding, the applicant must demonstrate that 
that the funds disbursed to date will support a resilience project of 
independent utility, consistent with the scope of the competitive 
funding application if applicable.
     The request must also include documentation explaining why 
the applicant has prioritized the recovery project over the resilience 
project.
    The eligibility of recovery projects for reallocated funding is 
consistent with previous eligibilities for recovery funding under this 
program. Funds reallocated under this procedure may only be used for 
the recovery project or projects listed in the reallocation request.

B. Requirements

    Agencies that wish to request a reallocation of resilience funds 
must provide:
     The name, location, and description of the recovery 
project(s) for which funds are requested to be reallocated to.
     Documentation identifying the project in the most recent 
validated Hurricane Sandy damage assessment, or if new, documentation 
showing that the project is an eligible disaster recovery expense 
resulting directly from damages caused by Hurricane Sandy. Such 
documentation may include FEMA draft project worksheets from the period 
immediately after the disaster, engineering estimates that indicate the 
source of damages and the scope and projected cost of necessary repair 
work, or other similar documents.
     A statement why the requested project is a priority over 
the resilience project losing the funds.
     The source of resilience funds (local priority resilience 
or competitive resilience) that will be returned to the program, as 
well as the location and description of any resilience project(s) from 
which funds will be withdrawn and the status of those projects.
     If applicable, a copy of the subject agreement with a 
third party entity if the proposed project includes an asset owned by a 
third party, including the methodology for determining the allocation 
of costs associated with repairing the relevant asset.
     If FTA funds have been disbursed for a resilience project 
from which the agency proposes to return funds for reallocation, the 
application must indicate the amount of funds not disbursed for the 
project, the amount of those funds to be retained for additional work 
on the project, the status of the project, and an explanation of 
whether or how any funds retained and the disbursed funds will be used 
to complete a resilience project with independent utility.
    All requests for reallocation of funds for recovery projects must 
be submitted to FTA no later than September 30, 2016. All requests must 
be submitted through the FTA Emergency Relief docket under FTA-2016-
0001. FTA will post the agency response to reallocation requests to the 
docket.

III. Coordination With the Federal Emergency Management Agency (FEMA)

    The Disaster Relief Appropriations Act of 2013 appropriated funding 
to FTA for transit systems affected by Hurricane Sandy, and a 
Memorandum of Agreement between FTA and FEMA establishes FTA as the 
primary payor of expenses incurred by public transportation agencies as 
a result of a major disaster. FTA and FEMA continue to coordinate on 
funding for Sandy damages, and FEMA has advised that where FTA has made 
available funding that by FTA's estimation fully satisfies the Federal 
share of 90% of the maximum amount of funding needed for public transit 
disaster recovery expenses required by Hurricane Sandy damage, 
additional funding from FEMA is not eligible.

IV. Award Administration

    All previously published program policies and requirements 
associated with Hurricane Sandy recovery and rebuilding funding remain 
in effect.

    Issued in Washington, DC.
Carolyn Flowers,
Acting Administrator.
[FR Doc. 2016-15801 Filed 7-1-16; 8:45 am]
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