[Federal Register Volume 82, Number 12 (Thursday, January 19, 2017)]
[Notices]
[Pages 6692-6716]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-01194]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration


FTA Fiscal Year 2017 Apportionments, Allocations, Program 
Information and Interim Guidance

AGENCY: Federal Transit Administration (FTA), DOT.

ACTION: Notice.

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SUMMARY: This notice provides interim guidance for programs in FY 2017, 
announces the apportionments and allocations for programs authorized 
and funded by the Further Continuing and Security Assistance 
Appropriations Act, 2017 (Pub. L. 114-254) and provides contract 
authority, and describes future plans for several competitive programs. 
The notice also includes locations of FY 2017 apportionment tables and 
unobligated (or carryover) funds allocated under the competitive 
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.transit.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.transit.dot.gov to receive email notifications when new information 
is available.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Overview
II. FY 2017 Funding for FTA Programs
    A. Funding Based on the Further Continuing and Security 
Assistance Appropriations Act, 2017 (Pub. L. 114-254)
    B. Oversight Takedown
    C. FY 2017 Formula Apportionments: Data and Methodology
III. FY 2017 Program Highlights and Changes
    A. Focus Areas
IV. FY 2017 Program-Specific Information
    A. Metropolitan 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
    R. Paul S. Sarbanes Transit in Parks Program (49 U.S.C. 5320)
V. FTA Policy and Procedures for FY 2017 Grants
    A. Automatic Pre-Award Authority To Incur Project Costs
    B. Letter of No Prejudice (LONP) Policy
    C. FY 2017 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 existing FTA program statutes (49 U.S.C. 5301, et. seq.) and 
changes resulting from 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 notice of funding availability 
through April 28, 2017 by the Further Continuing and Security 
Assistance Appropriations Act, 2017 (Pub. L. 114-254) contract 
authority for FTA formula and competitive programs pursuant to the 
Further Continuing and Security Assistance Appropriations Act, 2017 
(Pub. L. 114-254) (``Continuing Appropriations Act'').
    For each FTA program, FTA has provided information on the FY 2017 
authorized funding levels, the basis for apportionment or allocation of 
funds, requirements specific to the program, the period of availability 
of funds, and other program information. A separate section provides 
information on pre-award authority as well as other requirements and 
guidance applicable to FTA programs and grant administration. Finally, 
the notice includes referred to tables on FTA's Web site that show 
$5,323,087,320 in new contract authority apportioned through April 28, 
2017 and approximately $1.04 billion in unobligated or carryover 
contract authority that is available in FY 2017 from prior years.
    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 2017 Funding for FTA Programs

A. Funding Based on the Further Continuing and Security Assistance 
Appropriations Act, 2017

    The Further Continuing and Security Assistance Appropriations Act, 
2017 (Pub. L. 114-254) makes new funding available for FY 2017 
available through April 28, 2017. At approximately seven twelfths of 
the FY 2016 level.
    Current funding availability for each program is identified in 
section IV of this notice and in Table 1 located on FTA's FY 2017 
Apportionment Web page: www.transit.dot.gov/funding/apportionments.

[[Page 6693]]

B. Oversight Takedown

    The FAST Act modified section 5338(f) 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.

C. FY 2017 Formula Apportionments: Data and Methodology

1. Apportionment Tables
    FTA is publishing apportionment tables on its Web site for each 
program that reflects the funding level in the continuing resolution 
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.transit.dot.gov/funding/apportionments. This Web site contains a page listing the apportionment 
and allocation tables for FY 2017 as well as links to prior year 
formula apportionment notices and tables and the National Transit 
Database (NTD) and Census data used to calculate the FY 2017 
apportionments.
2. National Transit Database and Census Data Used in the FY 2017 
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 (NTD), 
which for FY 2017 is the 2015 report year. In some cases where an 
apportionment is based on the age of the system, the age is calculated 
as of September 30, 2016, the last day before FY 2017 began. Any 
recipient or beneficiary of either section 5307 or Rural Areas Formula 
Program program funds is required to report to the NTD. Additionally, a 
number of transit operators report to the FTA's NTD on a voluntary 
basis. For the 2015 report year, the NTD includes data from 866 
reporters in urbanized areas, 836 of which reported operating transit 
service. The NTD also includes data from 1,551 providers of rural 
transit service, which includes 134 Indian Tribes providing transit 
service.
    The 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 Rural Areas Formula Program. 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 
2013, FTA used 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.transit.dot.gov/funding/apportionments.
    The FY 2017 apportionments use data on low-income persons, persons 
with disabilities, and older adults from the 2010-2014 ACS five-year 
data set, which was published in December 2015. 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.'' Data on older adults (over 65 years 
old) comes from ACS Table B01001, ``Sex by Age.''

III. FY 2017 Program Highlights and Changes

A. Focus Areas

1. Tribal Transportation Self-Governance Program (Title 23 Federal-Aid 
Highways Program)
    Section 207 of title 23, United States Code establishes a Tribal 
Transportation Self-Governance Program (Self Governance Program). 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. A Negotiated Proposed Rulemaking to 
implement this program is under development.
2. Public Transportation Innovation
    FTA's research mission is to advance public transportation 
innovation by leading multi-dimensional research, development, 
demonstration, deployment, and technical assistance projects for the 
transit industry that improves riders' experiences and enhances public 
transit's effectiveness, efficiency, quality, and safety. FTA's Office 
of Research, Demonstration, and Innovation sought industry input on a 
five year research strategic plan. The result was an affirmation of 
FTA's research strategic goals to improve safety, enhance mobility, 
promote asset management, and expand asset innovation. These goals 
directly address and support the six primary purposes of U.S. DOT's 
transportation research and development program as defined in Section 
6503 of the FAST Act as follows:
     Improving mobility of people and goods;
     Reducing congestion;
     Promoting safety;
     Improving the durability and extending the life of 
transportation infrastructure;
     Preserving the environment; and
     Preserving the existing transportation system.
    Going forward, FTA will continue to prioritize research investments 
based upon these goals. FTA expects to publish its Research Strategic 
Plan in FY 2017.
3. Shared Mobility
    Shared Mobility continues to remain a key focus area within FTA's 
Public Transportation Innovation program. The definition of personal 
mobility is changing due to social and cultural trends combined with 
the powerful tools in handheld smartphones and related transportation 
technology innovations. New mobility concepts and solutions like bike-
sharing, car-sharing, car-hailing, and innovative demand-response bus 
services are now possible and more convenient because of these 
developments. This gives travelers new, flexible and personally 
tailored transportation options. Many of these services are emerging in 
proximity to high-capacity transit corridors with land uses and 
activities that create the market

[[Page 6694]]

for new services. Supported by smart policies, the interaction between 
public transportation and these emerging services can create improved 
travel choices.
    To support personal mobility innovation, (FTA) recently allocated 
$8 million for 11 projects through the innovative Mobility on Demand 
(MOD) Sandbox Demonstration program using FTA research funds (Public 
Transportation Innovation/Public Transportation Innovation). The 
projects carried out by transit agencies will test new ideas in 
personal mobility and integrated multimodal transportation networks. 
From that MOD program solicitation process, and from dialogue with 
other stakeholders, FTA has identified questions about funding 
eligibility under Federal public transportation law for FTA grant 
programs, like the Urbanized Area and Rural formula programs, as well 
as compliance with federal requirements, such as the Americans with 
Disabilities Act (ADA), related to mobility on demand generally and, 
particularly, to electronic hailing of vehicles such as taxis or other 
transportation network company (TNC) vehicles.
    FTA has prepared answers to Frequently Asked Questions (FAQs) to 
address the eligibility and Federal requirement questions. This 
information is posted on the FTA Web site at https://www.transit.dot.gov/shared-mobility. FTA will use information from the 
MOD Sandbox projects and related efforts, such as the recently launched 
online dialogue, to continue the discussion with agency stakeholders 
and to address questions regarding innovative practices and shared-
ride, on-demand mobility services as they emerge. FTA encourages your 
participation in this online discussion. Stakeholders can also send 
comments and questions to [email protected].
4. Bus Testing Facility (49 U.S.C. 5318)
    On August 1, 2016, FTA issued its final rule to implement minimum 
performance standards, a scoring system, and a pass/fail threshold for 
new model transit buses procured with FTA financial assistance 
authorized under 49 U.S.C. Chapter 53. Consistent with 49 U.S.C. 
5318(e), FTA recipients are prohibited from using FTA financial 
assistance to procure new bus models, that were not previously tested, 
that have not met the minimum performance standards established by this 
rule. The standards and scoring system address the following 
categories: Structural integrity, safety, maintainability, reliability, 
fuel economy, emissions, noise, and performance. Buses must meet a 
minimum performance standard in each of these categories in order to 
receive an overall passing score and be eligible for purchase using FTA 
financial assistance. Buses can achieve higher scores with higher 
performance in each category, and the final rule establishes a 
numerical scoring system based on a 100-point scale so that buyers can 
more effectively compare vehicles.
    The final rule was effective on October 31, 2016. FTA's Web site 
has additional information, resources, and a link to sign up for email 
notices about the Bus Testing Program at: www.transit.dot.gov/research-innovation/bus-testing.
5. FY 2017 Competitive Programs Funding and Schedule
    FTA will issue Notices of Funding Opportunities (NOFO) in FY 2017 
for the programs listed in the following chart. Additional information 
about each competitive program is in section III of this notice.

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                                                                  2017 Authorized
     FY 2017 competitive programs          Statute 49 U.S.C.       funding level    Timeline for notification of
                                                                   (in millions)               awards
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Passenger Ferry Grant Program........  5307....................             $30.0  Summer 2017.
Rides to Wellness Demonstration and    FAST Section 3006(b)....               3.0  Summer 2017.
 Innovative Coordinated Access and
 Mobility Grants.
Tribal Transit.......................  5311(c)(1)(A)...........               5.0  Spring 2017.
Grants for Buses and Bus Facilities    5339....................             228.0  Summer 2017.
 Competitive Program.
Low or No Emission Grants Competitive  5339....................              55.0  Spring 2017.
 Program.
Pilot Program to D Planning..........  MAP-21 Section 2005(b)..              10.0  Fall 2017.
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IV. FY 2017 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, Planning 
Assistance and Standards. 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 MPO 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 
MPOs 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, economic feasibility, 
performance-based planning; 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

[[Page 6695]]

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 information or questions on the Metropolitan Planning 
program, please contact Victor Austin at (202) 366-2996 or 
[email protected].
1. Authorized Amounts
    Federal transit law authorizes $110,347,597 in FY 2017 to provide 
financial assistance for metropolitan planning needs under section 
5305. Under the Further Continuing Appropriations Act, $62,042,888 is 
available through April 28, 2017.
2. FY 2017 Funding Availability
    In FY 2017, $62,042,888 is available for the period October 1, 2016 
through April 28, 2017 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 $61,732,673 as shown in the table below, after the 
deduction for oversight (authorized by section 5338).

                 Metropolitan Planning Program--FY 2017
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation available through April 28, 2017....     $62,042,888
Oversight Deductions....................................       (310,214)
                                                         ---------------
  Total Apportioned.....................................      61,732,673
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    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 its 
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 2017 plus three additional 
fiscal years. Accordingly, funds apportioned in FY 2017 must be 
obligated in grants by September 30, 2020. Any FY 2017 apportioned 
funds that remain unobligated at the close of business on September 30, 
2020, will revert to FTA for reapportionment under the Metropolitan 
Planning Program.
6. Other Program Information
    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 programs are jointly 
administered by FTA and the Federal Highway Administration (FHWA), 
which provides additional funding. The FAST Act sections 5303 and 5304 
as noted below:
     New emphasis is placed on intercity transportation, 
including intercity buses and intermodal facilities that support 
intercity transportation, and commuter vanpool providers.
     The selection and role of the transit 
representation on MPO policy boards in large urbanized areas is 
clarified. 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 Final Rule on 
Statewide and Nonmetropolitan Transportation Planning and Metropolitan 
Transportation Planning (81 FR, 3404, May 27, 2016).
     The scope of the planning process adds two new planning 
factors, in addition to the eight pre-existing factors established 
under prior law. The two new factors are: (1) Improve the resiliency 
and reliability of the transportation system, and reduce the 
vulnerability of the existing transportation infrastructure to natural 
disasters, and (2) enhance travel and tourism.
     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.
     Plans must place greater emphasis on the congestion 
management process. MPOs that serve transportation management areas 
must 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 long-range statewide transportation plan and 
metropolitan transportation plan must include a description of the 
performance measures and performance targets. State DOTs and MPOs are 
also required to provide a system performance report evaluating the 
condition and performance of the transportation system.
    In the Final Rule on Statewide and Nonmetropolitan Transportation 
Planning and Metropolitan Transportation Planning, FHWA and FTA make 
the statewide, metropolitan, and nonmetropolitan transportation 
planning regulations consistent with current statutory requirements. 
The final rule establishes the following: (1) A new mandate for States 
and MPOs to take a performance-based approach to planning and 
programming; (2) a new emphasis on the nonmetropolitan transportation 
planning process, by requiring States to have a higher level of 
involvement with nonmetropolitan local officials and providing a 
process for the creation of RTPOs; (3) implementation of the afore 
mentioned statutory requirement for a structural change to the 
membership of the larger MPOs; (4) a new framework for voluntary 
scenario

[[Page 6696]]

planning; (5) a new authority for the integration of the planning and 
environmental review processes; and (6) a process for programmatic 
mitigation plans.
    Among the most significant charges is the new mandate for 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, DOT will 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. After May 27, 2018, a State's and MPO's long-range plans, 
STIPs, and TIPs must reflect performance targets and plans according to 
the provisions of the final rule.

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, 
Planning Assistance and Standards. 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 or questions on the State Planning and 
Research program, please contact Victor Austin at (202) 366-2996 or 
[email protected].
1. Authorized Amounts
    Federal transit law authorizes $23,051,336 in FY 2017, to provide 
financial assistance for statewide planning and other technical 
assistance activities under section 5305. Under the Continuing 
Appropriations Act of 2017, $12,960,603 is available through April 28, 
2017. As specified in law, this represents the 17.28 percent of the 
amounts available for section 5305 that are allocated to the Statewide 
Planning and Research program.
2. FY 2017 Funding Availability
    In FY 2017, $12,960,603 is available for the period October 1, 2016 
through April 28, 2017 to the State Planning and Research Program 
(section 5305(e)). The total amount apportioned for the State Planning 
and Research Program (SPRP) is $12,895,800 as shown in the table below, 
after the deduction for oversight (authorized by section 5338).

                   Statewide Planning Program--FY 2017
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation Available through April 28, 2017....     $12,960,603
Oversight Deductions....................................        (64,803)
                                                         ---------------
  Total Apportioned.....................................      12,895,800
------------------------------------------------------------------------

    States' apportionments for this program are displayed in Table 2.
3. Basis for Formula Apportionment
    Of the amount authorized for 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, performance-based planning, 
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.
5. Period of Availability
    The State Planning and Research program funds apportioned in this 
notice are available for obligation during FY 2017 plus three 
additional fiscal years. Accordingly, funds apportioned in FY 2017 must 
be obligated in grants by September 30, 2020. Any FY 2017 apportioned 
funds that remain unobligated at the close of business on September 30, 
2020 will revert to FTA for reapportionment under the State Planning 
and Research program.

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

    The Urbanized Area Formula Program provides financial assistance to 
designated recipients in urbanized areas (UZAs) for capital investments 
in public transportation systems, planning, job access and reverse 
commute projects, and, in some cases, operating assistance. FTA 
apportions funds for this program through a statutory formula. Of the 
amount authorized for Section 5307 each year, $30 million is set aside 
for the competitive Passenger Ferry Grant Program (Ferry program), as 
authorized under 49 U.S.C., 5307(h). The Ferry program offers financial 
assistance to public ferry systems in urbanized areas for capital 
projects. Projects are selected annually through a funding competition. 
Additionally 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 0.5 percent 
apportionment to States for the State Safety Oversight Program is 
provided in section IV.M. of this notice.
    For more information or questions on the Urbanized Area Formula 
Program, contact Tara Clark at (202) 366-2623 or [email protected]. 
For more information on the Ferry Program, contact Vanessa Williams at 
(202) 366-4818 or [email protected].
1. Authorized Amounts
    Federal transit law authorizes $4,629,683,814 in FY 2017 to provide 
financial assistance for urbanized areas under section 5307. Under the 
Continuing Appropriations Act of 2017, $2,604,058,475 is available 
through April 28, 2017.

[[Page 6697]]

2. FY 2017 Funding Availability
    Under the Further Continuing and Security Assistance Appropriations 
Act, 2017, only $2,604,058,475 is available for the Urbanized Area 
Formula program for the period of October 1, 2016 through April 28, 
2017. The total amount apportioned to urbanized areas is 
$2,817,580,866, 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 
Ferry 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 2017
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation available thru April 28,2017......               \a\
                                                          $2,604,058,475
Oversight Deduction...................................      (19,530,439)
Ferry Competitive Program.............................      (17,211,583)
State Safety Oversight Program........................      (13,020,292)
Section 5340 High Density States......................       151,441,543
Section 5340 Growing States...........................       111,800,668
                                                       -----------------
  Total Apportioned...................................     2,817,538,371
------------------------------------------------------------------------
\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 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.
    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.
    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 2017 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, 
population x population density), and when applicable, data from the 
NTD (i.e., route miles, vehicle revenue miles, passenger miles, and 
operating cost).
a. Section 5307--Urbanized Area Formula
    For UZAs between 50,000 and 199,999 in population, the Urbanized 
Area Formula is based on population and population density. For UZAs 
with populations of 200,000 or 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. 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.
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 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 for the 2015 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 2017 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. More information on this program and its formula is 
found in section IV.P. of this notice.
d. 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. 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 2010-2014. This information is 
updated by the Census Bureau annually.
4. Requirements
    The maximum Federal share for the Urbanized Area Formula Program, 
including the Ferry Program, is 80 percent, or 85 percent for the net 
project cost of acquiring vehicles (including clean-fuel or alternative 
fuel) for the purpose of complying with or maintaining compliance with 
the Clean Air Act (CAA) or the Americans with Disabilities Act (ADA) of 
1990. The maximum Federal share is 90 percent of the net project cost 
for acquiring vehicle-related equipment or facilities (including clean-
fuel or alternative-fuel vehicle-related equipment or facilities) for 
the purpose of complying with or maintaining compliance with the CAA or 
ADA.
    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 the Urbanized Area Formula Grants 
program Web page. FTA is in the process of updating the program 
circular

[[Page 6698]]

to incorporate changes resulting from FAST Act amendments to 49 U.S.C. 
5307.
5. Period of Availability
    Funds made available under the Urbanized Area Formula Program are 
available for obligation during the year of apportionment plus five 
additional years. Accordingly, funds apportioned in FY 2017 must be 
obligated by September 30, 2022. Any FY 2017 apportioned funds that 
remain unobligated at the close of business on September 30, 2022 will 
revert to FTA for reapportionment under the Urbanized Area Formula 
Program.
    Funds allocated under the Ferry program follow the same period of 
availability as section 5307. Accordingly, funds allocated in FY 2017 
must be obligated by September 30, 2022. Any of the funds allocated in 
FY 2017 that remain unobligated at the close of business on September 
30, 2022 will revert to FTA for reallocation under the Ferry program.
6. Other Program Information
a. Special Rule for Operating Assistance in Large Urbanized Areas
    The special rule at 49 U.S.C. 5307(a)(2) makes recipients in 
urbanized areas with populations of 200,000 or above that operate 100 
or fewer buses in fixed route service or general public demand response 
service during peak hours, excluding ADA complementary paratransit 
service, eligible 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 service or general public 
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 2017 is shown in Table 3-A. FTA identified 
the systems eligible to use this provision and their maximum amounts 
for FY 2017 using data from the NTD for reporting year 2015. 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 2017 
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 2017 Apportionment Table 3A includes all eligible general public 
demand response operators. Systems that operate more than 100 buses in 
general public demand response service, and which do not operate any 
fixed-route service are not eligible for operating assistance under 
this provision. Systems that only operate ADA complimentary paratransit 
are not eligible for operating assistance under this provision.
    Systems that operate more than 100 buses in fixed route service are 
not eligible for operating assistance under this provision. Systems 
that operate 100 or fewer fixed route buses are eligible, regardless of 
the number of demand response vehicles they operate.
    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 operating 
assistance cap for the urbanized area does not change as a result of 
any agreement between two or more systems. The method used to allocate 
the funds must be documented in a written agreement, signed by the 
participating parties, and transmitted to FTA as part of the split 
letter.
b. Eligibility of Substitute Transit Service as a Capital Project
    The cost of operating substitute service (i.e. a bus bridge) is an 
eligible capital project expense when incidental to a scheduled capital 
maintenance, rehabilitation, or construction project on an existing 
system. Eligible substitute service must be temporary, scheduled, and 
the costs defined in the grant agreement for the capital project. 
Substitute service costs are not an eligible capital project expense in 
conjunction with emergency maintenance, operating incidents, or other 
contingency operations, including emergency operations associated with 
an emergency or a disaster.
c. Prohibition on Funding for Art and Non-Functional Landscaping
    While formerly eligible for Urbanized Area Formula Program funds as 
a ``Transit Enhancement'' (the precursor to Associated Transit 
Improvement), at 49 U.S.C. 5323 (h) now prohibits the use of FTA funds 
for the ``incremental costs of incorporating art or non-functional 
landscaping into facilities, including the costs of an artist on the 
design team.'' This prohibition applies to the creation, production, or 
installation of artworks, defined as objects intended for a primarily 
aesthetic purpose, or the involvement of artists in the development of 
a capital project. However, FTA does not interpret the law to exclude 
or generally prohibit the functional and aesthetic design of transit 
stations or related facilities, including designs intended to minimize 
adverse visual effects on the surrounding community. Transit facilities 
and surrounding landscape designs should incorporate aesthetic 
considerations, including but not limited to decisions regarding the 
use of light, shape, color, materials, the use of space, and the 
historic setting to achieve a functional and welcoming public transit 
facility.
    FTA will not require grantees to assess the often indeterminate 
incremental costs associated with functional design elements, 
including, but not limited to, the use of different types or colors of 
paint or tile, wayfinding elements intended to direct passengers or 
staff, or different or alternate construction materials in the design 
of a transit facility.
    Recipients may continue to use local funds for art in association 
with transit capital projects, but such expenditures may not be counted 
towards the local

[[Page 6699]]

share of a project cost, and should not be included in the grant award.
    With regard to landscaping, FTA recognizes that landscaping is a 
functional element of many transit facilities. For example, landscaping 
can be used to aid in the absorption or drainage of rainwater, 
prevention of erosion, support of structures on a steep grade, 
minimization of noise impacts, protection of habitat, provision of 
shade in hot climates, channeling of pedestrian or vehicle traffic, 
definition of useable or unsafe spaces, and many other purposes. In 
interpreting the term ``functional landscaping'' under this provision 
of law, FTA draws a similar distinction, as with art, between 
functionally appropriate landscape design and landscape elements 
installed primarily for visual or aesthetic appeal.
    For additional information see the Art and Non-Functional 
Landscaping frequently asked questions posted on the Urbanized Area 
Formula Grants Web page.
d. Employee Training Expenses
    Costs associated with employee training may be eligible for 
Urbanized Area Formula Program funding as operating expenses, as 
preventive maintenance expenses, or as provided for under the following 
provisions. A recipient may fund training expenses as an operating 
expense under Section 5307, where allowed, at a 50 percent Federal 
share.
    i. Under Section 5314(b), up to 0.5 percent of the program a 
recipient's section 5307, 5337, and 5339 funds may be used for human 
resources and workforce development activities at an 80 percent Federal 
cost share, including the cost of administering a training program. 
Eligible activities include:
     Various public transportation training programs;
     Outreach programs for targeted groups to increase public 
transportation employment for veterans, women, individuals with 
disabilities, and minorities;
     Development of training partnerships with key stakeholders 
including community colleges, workforce development boards, and other 
industry groups;
     Development of apprenticeships, on-the-job-training, and 
instructional training for public transportation; maintenance and 
operations occupations;
     Improve safety, security, and emergency preparedness in 
local public transportation system through improved safety culture and 
workforce communication with first responders and the riding public. 
And other activities approved by FTA that address human resource needs 
as they apply to public transportation activities.
    ii. Under Section 5314(c), up to 0.5 percent of Section 5307, 5337, 
and 5339 funds are available to a state or public transportation 
authority recipient in a fiscal year to use for tuition and direct 
educational expenses at the National Transit Institute for education 
and training of state and local transportation employees, at a federal 
share not to exceed 80 percent. States may also use these funds for 
training State and local transportation agency employees through grants 
and contracts with public and private agencies, and other institutions 
and individuals with prior FTA approval.

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 Inter-related 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 in an existing fixed guideway 
corridor that is at capacity today or will be in five years; and (4) 
programs of two or more interrelated projects as described above that 
have logical connectivity with one another and will all begin 
construction in a reasonable timeframe.
    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
    Federal transit law authorizes $2,301,785,760 in FY 2017, to 
provide financial assistance under section 5309. Under the Continuing 
Appropriations Act of 2017, $1,241,314,889 is available through April 
28, 2017.
2. FY 2017 Funding Availability
    In FY 2017, $1,241,314,889 is available for the period October 1, 
2016 through April 28, 2017 to the Fixed Guideway Capital Investment 
Grant Program. The total amount available for projects is 
$1,228,901,740 as shown in the table below, after the deduction for 
oversight (authorized by section 5338).

             Capital Investment Grants (New Starts)--FY 2017
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation Available through April 28, 2017..    $1,241,314,889
Oversight Deduction...................................      (12,413,149)
                                                       -----------------
  Total Apportioned...................................     1,228,901,740
------------------------------------------------------------------------

3. Basis for Allocation
    Funds are allocated on a competitive basis and subject to program 
evaluation.
4. Requirements
    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 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 a Small Starts grant agreement 
(SSGA) that defines the scope of the project and specifies the Federal 
commitment to the project.
5. Period of Availability
    Funds for the Fixed Guideway Capital Investment Grant Program 
remain

[[Page 6700]]

available for obligation for four years, which includes the fiscal year 
in which the funds are allocated to projects plus three additional 
years.

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

    The Section 5310 Enhanced Mobility of Seniors and Individuals with 
Disabilities Program provides formula funding to states for the purpose 
of meeting the transportation needs of older adults and people with 
disabilities when the transportation service provided is unavailable, 
insufficient, or inappropriate to meet these needs. The program aims to 
improve mobility for seniors and individuals with disabilities by 
removing barriers to transportation service and expanding 
transportation mobility options.
    The Pilot Program for Innovative Coordinated Access and Mobility 
Program (Pilot Program) open to Section 5310 recipients--was 
established by Section 3006(b) of the FAST Act. The purpose of the 
program is to assist in financing innovative projects for the 
transportation disadvantaged that improve the coordination of 
transportation services and non-emergency medical transportation (NEMT) 
services, including, for example, the deployment of coordination 
technology, and projects that create or increase access to community 
One-Call/One-Click Centers.
    For more information or questions on the Enhanced Mobility of 
Seniors and Individuals with Disabilities program, please contact Kelly 
Tyler at (202) 366-3120 or [email protected].
1. Authorized Amounts
    Federal transit law authorizes $268,208,388 in FY 2017 to provide 
formula funding to states for the purpose of meeting the transportation 
needs of older adults and people with disabilities. The law also 
authorizes $3 million for the competitive Pilot Program. Under the 
Further Continuing and Security Assistance Appropriations Act, 2017, 
$150,859,185 is available through April 28, 2017 for the formula 
program.
2. FY 2017 Funding Availability
    The total available funding for projects under the Section 5310 
formula program for FY 2017 is $150,104,889 after the oversight 
deduction as shown in the table below.

                  Section 5310 Formula Program--FY 2017
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation Available through April 28, 2017)...    $150,859,185
Oversight Deductions (oversight 0.5%)...................      ( 754,296)
                                                         ---------------
  Total Apportioned.....................................     150,104,889
Competitive Pilot Program...............................       1,147,439
------------------------------------------------------------------------

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 
individuals. Twenty percent of the funds are apportioned among the 
States for 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 rural areas, defined as 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. FY 2017 Apportionments Table 8 
displays the amounts apportioned under the Enhanced Mobility of Seniors 
and Individuals with Disabilities Program.
    Under the section 5310 formula, funds are allocated using Census 
data on older adults (i.e., persons 65 and older) and people with 
disabilities. However, beginning in 2010, the Census Bureau stopped 
collecting this demographic information 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 2017 section 5310 
apportionments incorporate ACS data published in December, 2015. Data 
on seniors comes from the ACS 2010-2014 five-year data set, Table 
B01001, ``Sex by Age. Data on persons with disabilities comes from the 
ACS 2010-2014 five-year data set, Table S.1810, ``Disability 
Characteristics.''
4. Requirements
    At least 55 percent of program funds must be used on capital 
projects such as buses and vans; wheelchair lifts, ramps, and 
securement devices or transit-related information technology systems 
including scheduling/routing/one-call systems. Mobility management 
programs are also defined as capital projects for purposes of this 
provision. The acquisition of transportation services under a contract, 
lease, or other arrangement is also eligible; both the capital and 
operating costs associated with contracted service are eligible capital 
expenses for purposes of this provision. The capital eligibility of 
acquisition of services is limited to the section 5310 program. The 
remaining 45 percent of a recipient's 5310 funds can be used for 
capital or operating.
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. A State 
or local governmental entity that operates a public transportation 
service may be a direct recipient for Section 5310 funds.
    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 the definition of 
designated recipient, 49 U.S.C. 5302(4)). Designated recipients are 
responsible for administering the program. Eligible subrecipients 
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
    Capital assistance is provided at 80 percent Federal share; 20 
percent local share. Operating assistance requires a 50 percent local 
match. Funds provided under other Federal programs (other than those of 
the DOT, with the exception of the Federal Lands Transportation Program 
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. The plan must be developed and adopted with representation from 
seniors, individuals

[[Page 6701]]

with disabilities, representatives of public, private, nonprofit 
transportation and human services providers, and other members of the 
public.
d. State and Project Management Plans
    States, designated recipients, and State or local governmental 
entities that operate a public transportation service that are 
responsible for implementing the section 5310 program are required to 
document their approach to managing the program. The Management Plans 
serve as the basis for FTA management reviews of the program, and 
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, see 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.
5. Period of Availability
    For Enhanced Mobility of Seniors and Individuals with Disabilities 
Program funds apportioned under this notice, the period of availability 
is three years, which includes the year of apportionment plus two 
additional years. Accordingly, funds apportioned in FY 2017 must be 
obligated in grants by September 30, 2019. Any FY 2017 apportioned 
funds that remain unobligated at the close of business on September 30, 
2019 will revert to FTA for reapportionment among the States and 
urbanized areas.
6. Other Program Information
    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. 
Section 5310 funds may not be transferred to other FTA programs. 
Section 5310 funds apportioned to large urbanized areas may not be 
transferred to other areas. Section 5310 program recipients may 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. Section 3006(b) of 
the FAST Act creates a new competitive 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. Local Match 
can come from other Federal (non-DOT) funds.

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 Rural Areas Formula Program, 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, please contact [Eacute]lan Flippin at (202) 366-
3800 or [email protected].
1. Authorized Amounts
    Federal transit law authorizes $632,355,120 in FY 2017 to provide 
financial assistance for rural areas under Rural Areas Formula Program.
2. FY 2017 Funding Availability
    Under the Further Continuing Security Assistance Appropriations 
Act, 2017, $317,012,628 is available through April 28, 2017 to the 
Rural Area Programs which includes $44,378,969 for Growing States. The 
total amount apportioned to the program is $359,613,193 as shown in the 
table below, after the deduction for oversight (authorized by section 
5338).

             Formula Grants for Rural Areas Program--FY 2017
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation Available Through April 28, 2017....    $317,012,628
Oversight Deductions....................................     (1,778,404)
Section 5340 Growing States.............................      44,421,465
                                                         ---------------
  Total Apportioned.....................................     359,655,689
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    FTA apportions Rural Areas Formula Program funds to the states by a 
statutory formula using the latest available U.S. decennial census 
data. The majority of Rural Formula Program 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 
Program funds (16.85 percent) are apportioned based on land area, 
vehicle revenue miles, and low-income individual 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 National Transit Database (NTD) 2015 Report Year was 
used for this apportionment, including data from directly-reporting 
Indian tribes. Data from public transportation systems that reported as 
urbanized area systems, but that was not attributable to an urbanized 
area, was also included. The Rural Areas Formula Program 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. Requirements
    The Rural Areas Formula Program provides funding for capital, 
operating, planning, job access and reverse commute projects, and 
administration expenses for public transit service in

[[Page 6702]]

rural areas under 50,000 in population. The planning activities 
undertaken with Rural Areas Formula Program funds are in addition to 
those awarded to the State under section 5305 and must be used 
specifically for the needs of rural areas.
a. Intercity Bus Transportation
    Each State must spend no less than 15 percent of its annual Rural 
Areas Formula Program 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 met. FTA encourages 
consultation with other stakeholders, such as communities affected by 
loss of intercity service. 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 may be used as in-kind local 
match for the intercity bus projects. FTA is updating the Rural Areas 
Formula Program program circular to include this change.
b. State Administration
    States may elect to use up to 10 percent of their apportionment at 
100 percent Federal share to administer the Rural Areas Formula Program 
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. Other Requirements
    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 
Rural Areas Formula Program capital projects and 62.5 percent of the 
sliding scale capital match ratio for operating projects. No longer 
exists
    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 Formula Program is 
found in FTA Circular 9040.1G, Formula Grants for Rural Areas: Program 
Guidance and Application Instructions, dated November 24, 2014, and is 
supplemented by additional information that may be posted to FTA's Web 
page.
5. Period of Availability
    Rural Areas Formula Program 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 Formula 
Program funds apportioned in this notice are available for obligation 
during FY 2017 plus two additional years. Any FY 2017 apportioned funds 
that remain unobligated at the close of business on September 30, 2019 
will revert to FTA for reapportionment under the Rural Areas program.
6. Other Program Information
    Revenue from the sale of advertising and concessions may be used as 
local match.

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

    This program provides 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), please contact [Eacute]lan 
Flippin at (202) 366-3800 or [email protected].
1. Authorized Amounts
    There is a two percent takedown from the funds made available for 
RTAP. Of the remaining amount, 15 percent is reserved for the National 
RTAP program. The remainder is available for allocation to the States.
    Federal Transit Law authorizes $12,647,102 in FY 2017 to provide 
technical assistance.
2. FY 2017 Funding Availability
    Under the Further Continuing and Security Assistance Appropriations 
Act, 2017 $7,113,616 is available through April 28, 2017 to the RTAP 
Program. The total amount apportioned for RTAP is $6,046,574 as shown 
in the table below, after the deduction for National RTAP.

            Rural Transportation Assistance Program--FY 2017
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation Available through April 28, 2017....      $7,113,616
National RTAP (15%).....................................     (1,067,042)
                                                         ---------------
  Total Apportioned.....................................       6,046,574
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    FTA allocates 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. Requirements
    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.
    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.
5. Period of Availability
    The RTAP funds apportioned in this notice are available for 
obligation in FY 2017 plus two additional years, consistent with that 
established for the Rural Areas Formula Program Rural Program.
6. Other Program Information
    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 the 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 Transportation Research Board 
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 is a take-down under the Rural Areas Formula 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 State allocations are shown in the 
Rural Areas Formula program table posted on FTA's Web site on the FY 
2017 Apportionments page. For more information about the Appalachian

[[Page 6703]]

Development Public Transportation Assistance Program, please contact 
[Eacute]lan Flippin at (202) 366-3800 or [email protected].
1. Authorized Amounts
    Federal transit law authorizes $20 million in each of FY 2016 
through FY 2020 as a take-down under the Rural Areas Formula Program to 
support public transportation in the Appalachian region.
2. FY 2017 Funding Availability
    Under the Further Continuing and Security Assistance Appropriations 
Act, 2017 $11,474,389 is available through April 28, 2017.

 Appalachian Development Public Transportation Assistance Program Funds
                                 FY 2017
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation Available through April 28, 2017....     $11,474,389
                                                         ---------------
  Total Apportioned.....................................      11,474,389
------------------------------------------------------------------------

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 the Rural Areas Formula Program to support public 
transportation in the Appalachian region. Funds can be applied for in 
the State's annual Rural Areas Formula Program 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 November 
24, 2014.
5. Period of Availability
    Appalachian Program funds are available for three years, which 
includes the year of apportionment plus two additional years, 
consistent with that established for the Rural Areas Formula 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 competitive grant program. It 
is funded as a takedown from funds made available for the section Rural 
Areas Formula Program. Formula factors include vehicle revenue miles 
and the number of low-income individuals residing on tribal lands 
(defined as American Indian Areas, Alaska Native Areas, and Hawaiian 
Home Lands). Eligible direct recipients are Federally recognized Indian 
tribes and Alaskan Native Villages providing public transportation in 
rural areas. The TTP funds are allocated for grants to eligible 
recipients for any purpose eligible under Rural Areas Formula Program, 
which includes capital, operating, planning, and 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 Amounts
    Federal transit law authorizes $35 million in FY 2017 ($30 million 
for formula and $5 million for the competitive program).
2. FY 2017 Funding Availability
    Under the Further Continuing and Security Assistance Appropriations 
Act, 2017 $15,080,181 is available for the formula program and $5 
million for the competitive program through April 28, 2017 as shown 
below.

 Formula Grants for Public Transportation on Indian Reservations Program
                                 FY 2017
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation (formula)...........................     $15,080,181
Total Apportioned (competitive).........................       5,000,000
                                                         ---------------
  Total Apportioned.....................................      20,080,181
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    Funding is allocated by formula and distributed to eligible Indian 
tribes providing public transportation on tribal lands. The formula 
apportionment shown in Table 10 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 2010-2014 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 eligible 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 Rural Areas Formula Program to support public 
transportation on Indian Reservations in rural areas. Funds allocated 
under the competitive 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 competitive 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 recipients or 
beneficiaries all section 5311 funds. This reporting requirement 
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 2017 formula apportionments, tribes should have submitted 
their reports to the NTD no later than April 30, 2016; voluntary 
reporting to the NTD is also encouraged. Additionally, to be considered 
for the FY 2018 formula apportionment funds, tribes need to submit 
their reports to the NTD no later than April 30, 2017. Tribes needing 
assistance with reporting to the NTD

[[Page 6704]]

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 plus two additional years, consistent with 
that established for the Rural Areas Formula Program. Any FY 2017 
formula funds that remain unobligated at the close of business on 
September 30, 2019 will revert to FTA for reapportionment under the 
TTP.
6. Other Program Information
    Section 207 of title 23, United States Code establishes a Tribal 
Transportation Self-Governance Program (Self Governance Program). The 
Self Governance Program will establish specific criteria for 
determining eligibility for a tribe to participate in the program. A 
Negotiated Rulemaking to implement this program in consultation with 
tribal representatives and other interested stakeholders is under 
development.
    The funds set aside for the TTP are not meant to replace or reduce 
funds that Indian tribes receive from States through the Rural Areas 
Formula 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 
Rural Areas Formula Program application or maybe 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. FTA has also 
expanded its technical assistance to tribes receiving funds under this 
program. In FY 2015, 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. 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. 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. Tribes are encouraged to work directly with their 
regional tribal transit liaison.

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

    Public Transportation Innovation is FTA's research program. Within 
this section, are 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 Program (LoNo-CAP) (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 Edwin Rodriguez, Office of Research, 
Demonstration and Innovation at (202) 366-0671 or 
[email protected].
1. Authorized Amounts
    Federal transit law authorizes $48 million for FY 2017 for the 
Public Transportation Innovation program.
2. FY 2017 Funding Availability
    Under the Further Continuing and Security Assistance Appropriations 
Act, 2017 $16,064,145 is available through April 28, 2017 shown in the 
table below.

    Public Transportation Innovation Apportioned Thru April 28, 2017
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Research, Development, Demonstration, Deployment, &          $11,474,389
 Evaluation.............................................
Low or No Emission Vehicle Component Testing............       1,721,158
Transit Cooperative Research Program (TCRP).............       2,868,597
                                                         ---------------
  Total Apportioned.....................................      16,064,145
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    Public Transportation Innovation funds are allocated according to 
the authorized purposes and amounts described above, and then remaining 
amounts are subject to competitive allocations where not specifically 
authorized. For FY 2017, FTA intends to fund projects and activities 
consistent with its Research Strategic Plan and in support of three 
major areas: Asset Innovation and Management, Mobility, and Safety. 
Projects may be selected through Notices of Funding Opporunity (NOFO) 
or Requests for Proposals (RFPs), or sole-sourced. Potential recipients 
can register to receive notification of funding availability under this 
program on Grants.gov.
    FTA awards an annual cooperative agreement to the National 
Academies of Science to administer the TCRP. For the LoNo-CAP, 
proposals were due November 28, 2016 and FTA expects to announce the 
selected testing facility or facilities in January 2017.
4. Requirements
    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.
    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 LoNo-CAP, 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 May 11, 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 2017.
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. Other Program Information
    FTA publishes an annual Research Report on projects, evaluations, 
and benefits of its research portfolio. The FY2015 Report is posted on 
FTA's Web

[[Page 6705]]

site, with the FY2016 report expected in February 2017. Section 6019(b) 
of the FAST Act establishes new requirements for annual modal research 
plans in 49 U.S.C. 6501. The FY 2016 plans are posted on DOT's Web 
site.
    For the new LoNo-CAP (5312(h)), FTA solicited proposals for the 
LoNo-CAP in the Fall of 2016, with selection(s) expected in January 
2017. Per the statute, FTA only considered proposals from 
``institutions of higher education'' as defined in section 1002 of 
title 20, U.S.C., the Higher Education Act of 1965. Eligible 
institution(s) of higher education must have capacity to carry out 
transportation-related advanced component testing and evaluation, with 
laboratories capable of testing and evaluation, and direct access to or 
a partnership with a testing facility capable of emulating real-world 
circumstances in order to test low or no emission components.
    LoNo-CAP differs from the Bus Testing Program (Section 5318) in 
that LoNo-CAP testing is voluntary; it will only test components, and 
it will not assign passing or failing scores. The LoNo component 
testing performed under LoNo-CAP complements the Section 5318 Bus 
Testing Program, under which FTA will continue to test complete buses 
as a condition of eligibility for FTA grant funding. Eligible 
activities under LoNo-CAP include testing and assessing voluntarily 
submitted Lo-No components for transit buses, publishing the results of 
these LoNo component assessments, and preparing an annual report to 
Congress summarizing the results of the component assessments. For more 
information on the LoNo-CAP, please contact Marcel Belanger at 
[email protected] or visit: https://www.transit.dot.gov/research-innovation/lonocap.
    TCRP is a cooperative effort of three organizations: FTA; the 
National Academies, acting through the Transportation Research Board 
(TRB); and the Transit Development Corporation, Inc. (TDC), a nonprofit 
educational and research organization established by the American 
Public Transportation Association (APTA). FTA funds the TCRP through a 
cooperative agreement and it is governed by an independent board--the 
TCRP Oversight and Project Selection (TOPS) Committee. The TOPS 
Committee sets priorities to decide what research studies will be 
undertaken and annually selects projects. The FY 2017 selected projects 
can be found at http://www.trb.org/TCRP. For more information about 
TCRP, please contact Faith Hall at [email protected].
    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, 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. Information on current and past 
SBIR projects can be found on the DOT SBIR Web site.

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.
    For more information or questions about the Technical Assistance 
and Workforce Development programs, please contact Edwin Rodriguez, 
Office of Research, Demonstration, and Innovation at (202) 366-0671 or 
[email protected].
1. Authorized Amounts
    The Technical Assistance and Workforce Development Program is at 
$14 million in FY 2017. Under the Further Continuing and Security 
Assistance Appropriations Act, 2017 $5,163,475 is authorized through 
April 28, 2017 as shown in the table below.
2. FY 2017 Funding Availability

   Technical Assistance and Workforce Development Funds Available Thru
                             April 28, 2017
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Technical Assistance, Standards Development & Human           $2,294,878
 Resource Training......................................
National Transit Institute..............................       2,868,597
                                                         ---------------
  Total Appropriated....................................       5,163,475
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    Under the Technical Assistance and Workforce Development Program, 
$2,868,597 is available for the NTI. The remaining $2,294,878 will be 
allocated in support of FTA and USDOT strategic goals for technical 
assistance, standards development, and workforce development. Projects 
may be selected through sole source, Notices of Funding Opportunity 
(NOFO) 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, grants, contracts, or other agreements to award funds and 
manage the projects carried out under this section.
4. Requirements
    Eligible expenses include activities involving: (a) Technical 
assistance; (b) standards development; and (c) human resources and 
training, including 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 requirements 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 development activities include the development 
of voluntary and consensus-based standards and best practices by the 
industry including 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

[[Page 6706]]

disabilities, and minorities in public transportation; (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 competitive 
frontline workforce development program as required by section 5314. 
Should FTA allocate funds for these purposes, it will advertise the 
available funding in a Notice of Funding Opportunity (NOFO) on 
Grants.gov and on its Web site. In the meantime, recipients of funds 
under sections 5307, 5337, and 5339 may 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.
    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.
    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, ``Award 
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 Programs: Application 
Instructions and Program Management Guidelines'' dated May 11, 2015.
    All research recipients are required to work with FTA to develop 
approved statements of work. There is no match requirement for the 
National Transit Institute.
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. Other Program Information
    FTA publishes 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. These reports can be found on FTA's Web 
site.

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 Further 
Continuing and Security Assistance Appropriations Act, 2017 for this 
program.
    In the event funds are appropriated to this program to assist in 
responding to 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 that the Secretary determines is in danger of 
suffering serious damage or has suffered serious damage as a result of 
an emergency. Additionally, transit agencies in the affected areas may 
request relief from certain FTA administrative and regulatory 
requirements for costs incurred in support of evacuations, rescue 
efforts, and the efficient shut down and resumption of transit services 
during and after the storm. Requests for relief from these requirements 
may be submitted to FTA's Emergency Relief Docket at https://www.regulations.gov/. The docket number for calendar year 2017 is FTA-
2017-0001.
    FTA also encourages transit agencies in affected areas to become 
familiar with FTA's Emergency Relief Program Manual, available at 
transit.dot.gov/emergencyrelief. Should funding be made available by 
Congress through FTA's Emergency Relief Program, or at FEMA's 
direction, FTA will work with agencies to assess the impacts of the 
storm, including emergency operations and any potential damages to 
transit rolling stock or facilities.
    While Congress has not provided funding for this program in FY 
2017, so far 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 under the provisions of FTA's Emergency 
Relief Program. Recipients are advised that formula funds disbursed to 
a grantee 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 the Federal Emergency Management Agency (FEMA).
    In the event of a disaster affecting a public transportation 
system, the affected recipient should contact its FTA Regional Office 
as soon as practicable to determine whether Emergency Relief Program 
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 Emergency 
Relief Program funding (if appropriated) or from 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.
    More information on the Emergency Relief Program and FTA's response 
to Hurricane Sandy is available on the FTA Web site at https://www.transit.dot.gov/funding/grant-programs/emergency-relief-program/emergency-relief-program.
    For more information or questions on this program, please contact 
Adam Schildge at 202-366-0778 or [email protected].

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

    The State Safety Oversight Formula Program 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 or questions on the Public Transportation 
Safety program, please contact Maria Wright at (202) 366-5922 or 
[email protected].

[[Page 6707]]

1. Authorized Amounts
    Federal transit law authorizes $23,148,419 in FY 2017 to provide 
funding to support States in developing and carrying out the SSO 
Program.
2. FY 2017 Funding Availability
    Under the Further Continuing and Security Assistance Appropriations 
Act, 2017 $13,020,292 is available through April 28, 2017 for the 
period October 1, 2016 through April 28, 2017 for the State Safety 
Oversight (SSO) program as shown in the table below.

  Public Transportation Safety Program Funds Apportioned Thru April 28,
                                  2017
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation.....................................     $13,020,292
                                                         ---------------
  Total Apportioned.....................................      13,020,292
------------------------------------------------------------------------

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 apportioning SSO Formula Grant Program FY 2013 and FY 2014 funds 
(Mar. 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 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 in each state.
4. Requirements
    FTA requires each applicant to demonstrate in its grant application 
that its proposed grant activities will develop, lead to, or carry out 
a 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 FY 2013 and FY 2014 funds (79 FR 13380, Mar. 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 2017 funds that remain 
unobligated at the close of business on September 30, 2019 will revert 
to FTA for reapportionment under the SSO Formula Grant Program.
6. Other Program Information
    Section 5329 authorizes FTA to temporarily assume oversight of a 
rail transit safety system, under certain circumstances. FTA also has 
the authority to issue restrictions and prohibitions to address unsafe 
conditions or practices. On August 11, 2016, FTA published a final rule 
to set procedures for FTA's administration of the Public Transportation 
Safety Program. The final rule provides procedures whereby FTA may: (1) 
Require a recipient to use Chapter 53 funds to correct safety 
violations identified by the Administrator or a State Safety Oversight 
Agency before such funds are used for any other purpose, or (2) 
withhold up to than 25 percent of funds apportioned under 49 U.S.C. 
5307 from a recipient when the Administrator has evidence that the 
recipient has engaged in a pattern or practice of serious safety 
violations, or has otherwise refused to comply with the Public 
Transportation Safety Program, or any regulation or directive issued 
under those laws for which the Administrator exercises enforcement 
authority for safety.

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

    The State of Good Repair Program provides financial assistance to 
designated recipients in Urbanized Areas (UZAs) with fixed guideway and 
high intensity motorbus systems for capital investments that maintain, 
rehabilitate, and replace aging transit assets and bring fixed guideway 
and high intensity motorbus systems into a state of good repair. FTA 
apportions funds for this program through a statutory formula using 
data reported to the National Transit Database (NTD).
    For more information or questions on the State of Good Repair 
program, please contact Eric Hu at (202) 366-0870 or [email protected].
1. Authorized Amounts
    Federal transit law authorizes $2,549,670,000 in FY 2017 for the 
State of Good Repair Program.
2. FY 2017 Funding Availability
    Under the Further Continuing and Security Assistance Appropriations 
Act, 2017 $1,438,314,657 is available through April 28, 2017. The total 
amount apportioned is $1,423,931,511 after the deduction for oversight 
as shown in the table below, after the deduction for oversight 
(authorized by section 5338).

         State of Good Repair Program Funds Apportioned FY 2017
------------------------------------------------------------------------
Total Appropriation Available through April 28, 2017..    $1,438,314,657
Oversight Deductions..................................      (14,383,147)
                                                       -----------------
  Total Apportioned...................................     1,423,931,511
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    FTA apportions 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 high intensity motorbus 
systems that entered into revenue service on or before September 30, 
2009 are included in the formula, as identified in the NTD. Funds 
apportioned to urbanized areas with high intensity fixed guideway and 
motorbus 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 the FY 
2011 Fixed Guideway Modernization program using the fixed guideway 
definition defined in prior law; and (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 miles of all urbanized 
areas. 97.15 percent of the total appropriation is apportioned to the 
fixed guideway tier, the remaining 2.85 percent is apportioned to the 
high-intensity motorbus tier.
4. Requirements
    In addition to the program guidance found in the FTA Circular 
5300.1, ``State of Good Repair Grants Program: Guidance and application 
Instructions'' all recipients will need to comply with the rule issued 
under section 5326 for the Transit Asset Management plan (TAM).
5. Period of Availability
    The State of Good Repair Program funds apportioned in this notice 
are available for obligation during FY 2017 plus three additional 
years. Accordingly, funds apportioned in FY 2017 must be obligated in 
grants by September 30, 2020. Any FY 2017 apportioned funds that remain 
unobligated at the close of business on September 30, 2020 will revert 
to FTA for reappointment under the State of Good Repair Program.

[[Page 6708]]

6. Other Program Information
    In July 2016, FTA published a Final Rule for Transit Asset 
Management (81 FR 48890, July 26, 2016). Grantees must have a TAM plan 
in place by October 1, 2018. Beginning in FY 2019 all projects funded 
under the State of Good Repair Program must appear in the investment 
prioritization of the grantees TAM plan.

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

    The Grants for Buses and Bus Facilities Program provides financial 
assistance to states and designated recipients for capital investments 
in public transportation systems to replace, rehabilitate and purchase 
buses and related equipment and to construct bus-related facilities, 
including technological changes or innovations to modify low or no 
emission vehicles or facilities. Funding is provided through formula 
allocations and competitive grants. A sub-program, the Low- or No-
Emission Vehicle Program, provides competitive grants for bus and bus 
facility projects that support low and zero-emission vehicles.
    For more information or questions on the Grants for Buses and Bus 
Facilities Program, please contact Vanessa Williams at (202) 366-4818 
or [email protected]. For information or questions regarding the 
competitive Low or No Emissions Grant Program, contact Tara Clark at 
(202) 366-2623 or [email protected].
1. Authorized Amounts
    Federal transit law authorizes $719,960,000 in FY 2017, to provide 
financial assistance for the Grants for Buses and Bus Facilities 
Program.
2. Funding Availability
    Under the Continuing Appropriations Act of 2017, $399,193,992 is 
available through April 28, 2017. After the 0.75 percent take-down for 
oversight, $396,200,037 is available after the deduction for oversight, 
as shown in the table below.

              Grants for Buses and Bus Facilities--FY 2017
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation (Formula)...........................    $245,437,180
Oversight Deduction.....................................     (1,840,779)
                                                         ---------------
  Total Apportioned (Formula)...........................     243,596,401
Total Appropriation (Low No Competition)................      31,554,570
Oversight Deduction.....................................       (236,659)
                                                         ---------------
  Total to be Allocated (Competition)...................      31,317,910
Total Appropriation (Bus Competition)...................     122,202,243
Oversight Deduction.....................................       (916,517)
                                                         ---------------
  Total to be Allocated (Competition)...................     121,285,726
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    Buses and Bus Facilities Program formula funds are apportioned to 
States, territories, and designated recipients based on a statutory 
formula. Under the National Distribution, each State is allocated $1.0 
million and each territory is allocated $286,860 for use anywhere in 
the State or territory for each of fiscal years 2016 through 2020. The 
remainder of the available funding is then apportioned to UZAs based on 
population, vehicle revenue miles, and passenger miles using the same 
apportionment formula and allocation process as the Urbanized Area 
Formula Program. Funds for UZAs under 200,000 in population are 
apportioned to the State 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.
    FTA allocates funds under the competitive section 5339(b) and 
5339(c) programs on an annual basis based on a notice of funding 
opportunity, which contains detailed guidance on applicant eligibility, 
project eligibility, evaluation criteria, and application requirements.
4. Requirements
    Eligible recipients for section 5339(a) formula grants include: (1) 
Designated recipients that allocate funds to fixed route bus operators, 
and (2) States local governmental entities that operate fixed route bus 
service. Eligible subrecipients 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. The definition of eligible 
recipients applies to funding apportioned in previous fiscal years that 
remain available for obligation. The requirements of the Urbanized Area 
Formula Program apply to recipients of section 5339 funds within an 
urbanized area. The requirements of Rural Areas Formula Program apply 
to recipients of section 5339 funds within rural areas.
    Under prior law, only designated recipients were eligible direct 
recipients of section 5339(a) funds. Given that State and local 
government entities that operate fixed route service are now eligible 
direct recipients of section 5339(a) funds. FTA does not require 
designated recipients to maintain program management plans (PMPs) if 
they do not manage any sub-awards of section 5339 funds.
    For additional program requirements, refer to FTA Circular 5100, 
``Bus and Bus Facilities Formula Program: Guidance and Application 
Instructions.''
5. Period of Availability
    The Bus and Bus Facilities Program formula funds apportioned in 
this notice are available for obligation during FY 2017 plus three 
additional years. Accordingly, funds apportioned in FY 2017 must be 
obligated in grants by September 30, 2020. Any FY 2017 apportioned 
funds that remain unobligated at the close of business on September 30, 
2020 will revert to FTA for reapportionment under the Bus and Bus 
Facilities Formula Program. Competitive program funds authorized under 
sections 5339(b) and 5339(c) follow the same period of availability.
6. Other Program Information
    Although it does not provide additional funding, as authorized 
under section 5339(a)(9), FTA has established a pilot program to allow 
designated recipients in urbanized areas between 200,000 and 1 million 
in population to elect to pool their Bus and Bus Facilities Program 
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 2018 must submit a request to establish a State Pool to 
its FTA Regional Office by August 31, 2017. The request must identify 
the urbanized areas that will participate in the pool for FY 2018, and 
must include a letter from each participating designated recipient, and 
from any affected eligible recipients of section 5339(a) funds within 
the urbanized area, indicating their intention to participate in this 
pooling provision for FY 2017. 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 2018 may

[[Page 6709]]

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 2018, 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 2018 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 2017. 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.

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

    Federal transit law authorizes the use of formula factors to 
distribute additional funds to the section 5307 and Rural Areas Formula 
Program programs for growing states and high density states. FTA will 
continue to publish single urbanized and rural apportionments that show 
the total amount for section 5307 and 5311 programs that includes 
section 5340 apportionments for these programs.
    For more information or questions on this program, please contact 
Tara Clark at (202) 366-2623 or [email protected].
1. Authorized Amounts
    Federal transit law authorizes $544,433,788 for apportionment in FY 
2017 for the Growing States and High Density States Formula factors.
2. FY 2017 Funding Availability
    Under the Further Continuing and Security Assistance Appropriations 
Act, 2017 $307,663,675 is available through April 28, 2017.

------------------------------------------------------------------------
 Growing states and high density states formula factors
              available thru April 28, 2017                    2017
------------------------------------------------------------------------
Growing States..........................................    $156,222,132
High Density States.....................................     151,441,543
                                                         ---------------
  Total Apportioned.....................................     307,663,675
------------------------------------------------------------------------

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 Rural Areas Formula Program 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. 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

    Section 601 of the Passenger Rail Investment and Improvement Act of 
2008 (PRIIA) authorized an aggregate amount of $150,000,000 to be 
available in increments over 10 fiscal years beginning in fiscal year 
2009 to assist Washington Metropolitan Transit Authority (WMATA) in 
implementing Capital Improvement Program and preventive maintenance 
projects.
    For more information or questions on the Washington Metropolitan 
Area Transit Authority Grants program, please contact Eric Hu at (202) 
366-0870 or [email protected] or Corey Walker at (202) 219-3562 or 
[email protected].
1. Authorized Amounts
    Section 601 of PRIIA authorizes $150,000,000 in FY 2017.
2. FY 2017 Funding Availability
    Under the Continuing Appropriations Act of 2017, $86,057,917 is 
available through April 28, 2017. The total amount available is 
$85,197,338 after the deduction for oversight as shown in the table 
below.

  Washington Metropolitan Area Transit Authority Grants Funds--FY 2017
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation Available through April 28, 2017....     $86,057,917
Oversight Deduction.....................................       (860,579)
                                                         ---------------

[[Page 6710]]

 
  Total Apportioned.....................................      85,197,338
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    The funding is authorized under Section 601, Authorization for 
Capital and Preventive Maintenance Projects for Washington Metropolitan 
Area Transit Authority, of the Passenger Rail Investment and 
Improvement Act of 2008, (Pub. L. 110-432) Division B, Title VI.
4. Requirements
    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. The 
maximum Federal share for each project shall be for 50 percent of the 
net project cost of the project, and matching funds shall be provided 
in cash from sources other than Federal funds or revenues from the 
operation of public transportation systems.
5. Period of Availability
    Funds appropriated for WMATA under Section 601 PRIIA shall remain 
available until expended.

R. Paul S. Sarbanes Transit in Parks Program

    The Paul S. Sarbanes Transit in Parks Program (Transit in Parks) at 
former 49 U.S.C. 5320, has provided grants for alternative 
transportation in and around America's national parks and Federal lands 
since 2006. FTA is establishing a deadline of September 30, 2017 to 
obligate funds allocated to recipients under the Transit in Parks 
program. Any competitive allocations that remain unobligated after 
September 30, 2017 will revert back to FTA.
    Alternative transportation projects formerly eligible under Transit 
in Parks are now eligible under the Federal Highway Administration's 
Federal Lands Transportation Program and the Federal Lands Access 
Program.

V. FTA Policy and Procedures for FY 2017 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. 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, would have been allowable if incurred after the 
date of award, 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 
varies depending on the type of activity and its potential to have a 
significant impact on the human and natural environment as described 
under conditions in section 3 below. 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 Public Transportation Innovation 
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,

[[Page 6711]]

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:
    a. 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.
    b. All FTA statutory, procedural, and contractual requirements must 
be met.
    c. 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.
    d. 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.
    e. 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.
    f. For funds to which the pre-award authority applies, the 
authority expires with the lapsing of the fiscal year funds.
    g. 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.
    h. Environmental Requirements.
    All Federal environmental grant requirements must be met at the 
appropriate time for the project to remain eligible for Federal 
funding. Designated recipients may incur costs for design and 
environmental review activities for all projects from the date of the 
authorization of formula funds or the date of the announcement of the 
competitive allocations of funds for the project. For projects that 
qualify for a categorical exclusion pursuant to 23 CFR 771.118(c), 
designated recipients may start activities and incur costs for property 
acquisition, demolition, construction, and acquisition of vehicles, 
equipment, or construction materials from the date of the authorization 
of formula funds or the date of the announcement of the competitive 
allocation of funds for the project. FTA recommends that a grant 
applicant considering a categorical exclusion pursuant to 23 CFR 
771.118(c) 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. If FTA subsequently finds that a project does not to qualify 
for this CE, it will be ineligible for FTA assistance. 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), (9), (10), (12), or (13) applies.
    For all other projects that do not qualify for a categorical 
exclusion under 23 CFR 771.118(c), grant applicants may take action and 
incur costs for property acquisition, demolition, construction, and 
acquisition of vehicles, equipment, or construction materials from the 
date that FTA completes the environmental review process required by 
NEPA and its implementing regulations, 23 U.S.C. 139, and other 
environmental laws 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).
    i. Planning and other requirements.
    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 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.
    j. 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.
    k. 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

[[Page 6712]]

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, Disadvantaged Business Enterprise 
program requirements 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 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--namely 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 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

[[Page 6713]]

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 to initiate 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-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 competitive 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. Federal funding under the Fixed Guideway Capital Investment 
Grant program for a New Starts, Small Starts, or Core Capacity project 
is not implied or guaranteed by an LONP. Specifically, when requesting 
an LONP, the applicant shall provide the following items:
    a. Description of the activities to be covered by the LONP.
    b. Justification for advancing the identified activities. The 
justification should include an accurate assessment of the consequences 
to the project scope, schedule, and budget should the LONP not be 
approved.
    c. Allocated level of risk and contingency for the activity 
requested.

C. FY 2017 Annual List of Certifications and Assurances

    The FY 2017 Certifications and Assurances and Master Agreement are 
currently available in TrAMS and must be used for all grants and 
cooperative agreements awarded in FY 2017. All recipients with active 
projects are required to sign the FY 2017 Certifications and Assurances 
within 90 days of publication. The FY 2017 Certifications and 
Assurances publication date of December 20, 2016.

D. Civil Rights Requirements

1. Equal Employment Opportunity (EEO)
    The FTA Office of Civil Rights released an updated EEO Circular, 
FTA Circular 4704.1A, effective October 31, 2016. The Circular provides 
guidance to FTA grant recipients to carry out EEO requirements and 
prepare EEO Program Plans. The updated FTA EEO Circular is posted at 
https://www.transit.dot.gov/regulations-and-guidance/civil-rights-ada/eeo-circular. Based on feedback received since publication of the 
Circular, FTA would like to provide clarification regarding the 
Circular.
    First, State DOTs are subject to the same threshold requirements 
for FTA EEO Program submissions, located in Circular Section 1.4, 
Applicability, as other recipients. A State DOT must only submit a 
transit-related EEO Program if: (1) It employs 100 or more transit-
related employees; and (2) requests or receives capital or operating 
assistance in excess of $1 million in the previous Federal fiscal year, 
or requests or receives planning assistance in excess of $250,000 in 
the previous Federal fiscal year. In accordance with a One DOT approach 
and pursuant to the forthcoming Memorandum of Understanding (MOU) with 
the Federal Highway Administration (FHWA), State DOTs must submit a 
single EEO Program to FHWA and FTA which will be jointly reviewed, 
monitored, and approved in accordance with FHWA and FTA regulations 
every four years. As part of the implementation of the MOU, FTA will be 
collecting all State DOT EEO Programs every four years via TrAMS. 
Therefore, a State DOT that does not meet the threshold requirements 
outlined in Circular Section 1.4 must still submit the FHWA-required 
EEO Program every four years to FTA, but will not be required to submit 
a transit-related EEO Program.
    Second, we wish to clarify the threshold requirements for preparing 
and maintaining an abbreviated EEO Program, which is discussed in 
Circular Section 1.4. In the paragraph discussing

[[Page 6714]]

the requirements for agencies employing between 50-99 transit-related 
employees, FTA inadvertently did not include the monetary threshold 
that has been in place since at least 1988. Thus, an agency is required 
to prepare and maintain an abbreviated EEO Program only if: (1) It has 
between 50-99 transit-related employees; and (2) it requests or 
receives capital or operating assistance in excess of $1 million in the 
previous Federal fiscal year, or requests or receives planning 
assistance in excess of $250,000 in the previous Federal fiscal year. 
The inadvertent absence of the monetary threshold would require more 
agencies to prepare and maintain EEO Programs. Thus, reinstating the 
threshold reduces the burden on transit agencies and maintains the 
status quo.
    Third, only direct recipients who cross the EEO Program threshold 
requirements in Circular Section 1.4, and State DOTs are required to 
prepare and/or submit an EEO Program to FTA. All subrecipients and 
contractors who cross the EEO Program threshold must submit EEO 
Programs to the entity from which they receive funds, generally the 
transit agency or the State DOT, as appropriate. This will allow State 
DOTs and transit agencies to determine and document that subrecipients 
and contractors comply with EEO statutes and regulations, in accordance 
with their monitoring responsibilities. FTA applicants, recipients, 
subrecipients, and contractors that do not meet the EEO Program 
threshold are not required to submit an EEO Program to FTA or to the 
entity from which they receive funds.
    FTA will amend the pages of the Circular affected by the above 
clarifications and will post the updated Circular on FTA's Web site.
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 for 
carrying out the regulatory requirements. Recipients in urbanized areas 
of 200,000 or more in population and with 50 or more fixed-route 
vehicles in peak service must conduct a service or fare equity analysis 
for all service changes that meet the recipient's definition of ``major 
service change'' prior to implementing the service change. A service 
equity analysis is also required for all New Start, Small Start, or 
other new fixed guideway capital projects, and must be completed six 
months prior to implementing revenue service. Recipients also must 
conduct a fare equity analysis for all fare increases or decreases 
prior to implementing a fare change. Recipients that do not meet the 
abovementioned threshold of 200,000 or more in population and 50 fixed 
route vehicles in peak service (i.e., small transit providers) are not 
required to conduct a service or fare equity analysis but should review 
their policies and practices to ensure their service and fare changes 
do not result in disparate impacts on the basis of race, color, or 
national origin.
    FTA would also like to stress the importance of public 
participation. Recipients must facilitate effective public engagement 
throughout all stages of the consultation, planning, and the decision-
making process. Particular emphasis should be given to affected, and 
potentially affected, communities. FTA recommends that recipients 
anticipating service and fare changes review FTA Circular 4703.1, 
Environmental Justice Policy Guidance, Chapter III, Achieving 
Meaningful Public Engagement with Environmental Justice Populations, 
available at https://www.transit.dot.gov/regulations-and-guidance/fta-circulars/environmental-justice-policy-guidance-federal-transit for 
ideas on how to engage affected populations. Should you have any 
questions, please contact your Regional Civil Rights Officer.

E. Consolidated Planning Grants

    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. 
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.

F. Grant Application Procedures

    All applications for FTA funds should be submitted to the 
appropriate FTA Regional Office. All applications are filed 
electronically. FTA continues to award and manage grants and 
cooperative agreements using the Transit Award Management System 
(TrAMS) which re-opened for financial activity on November 1, 2016. 
Information on accessing and using TrAMS, including a list of FTA 
points of contact for the system, can be found on FTA's Web site at 
http://www.transit.dot.gov/TrAMS.
    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:
    1. 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).
    2. 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 a DUNS, you will need to go to the Dun 
& Bradstreet Web site at http://fedgov.dnb.com/webform to obtain the 
number.
    3. Recipient has properly submitted its annual certifications and 
assurances.
    4. Recipient's Civil Rights submissions are current.
    5. Documentation is on file to support recipient's status as either 
a designated recipient (for the program and area) or a direct 
recipient.
    6. 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.
    7. The project is listed in a currently approved Transportation 
Improvement Program (TIP); Statewide Transportation Improvement Program 
(STIP), or Unified Planning Work Program (UPWP).

[[Page 6715]]

    8. All eligibility issues are resolved.
    9. Required environmental findings are made.
    10. 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.
    11. Major Capital Projects as defined by 49 CFR part 633 ``Project 
Management Oversight'' must document FTA has reviewed the project 
management plan and provided approval.
    12. 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 competitive 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. 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 disbursements, monitor program trends, 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 2017. 
Further, split letters and/or suballocation letters (Governor's 
Apportionment letters), must also be on file to support grant 
applications from direct recipients. Once suballocation letters for FY 
2017 funding are finalized they should also be uploaded into TrAMS.
    The Direct Recipient is required to upload to TrAMS a copy of the 
Designated Recipient letter indicating their allocation of funding [for 
the appropriate fund program] when the applicant transmits their 
application for initial review. The letter must be signed by the 
Designated Recipient, or as applicable in accordance with their 
planning requirements. If there are two Designated Recipients, both 
entities must sign the Letter. The Letter must: (1) Indicate the 
allocations to the respective Direct Recipients listed in the letter; 
(2) incorporate language above the signatories to reflect this 
agreement; and (3) make clear that the Direct Recipient will assume 
any/all responsibility associated with the award for the funds. When 
drafting the letter, Designated Recipients may use the template 
language below:
    ``As identified in this Letter, the Designated Recipient(s) 
authorize the reassignment/reallocation of [enter fund source; e.g. 
Section 5307 funds] to the Direct Recipient(s) named herein. The 
undersigned agree to the amounts allocated/reassigned to each direct 
Recipient. Each Direct Recipient is responsible for its application to 
the Federal Transit Administration to receive such funds and assumes 
the responsibilities associated with any award for these funds.''
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 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

[[Page 6716]]

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. Grant Reporting
    Recipients of FTA funds are reminded that all FTA grantees are 
required to report on their grants and 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 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 the latest version of FTA 
Circular 5010. 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.
2. Inactive Grants and Grant Closeout
    In FY 2017, FTA will continue to focus on identifying and working 
with recipients to close inactive grants. If appropriate, FTA will take 
action to close out and deobligate funds from these grants if 
reasonable progress is not made. The efficient use of funds will 
further FTA's fulfillment of its mission to provide efficient and 
effective public 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 statements.
    In October 2016, FTA identified a list of grants that were awarded 
on or prior to September 30, 2013 and have had no funds disbursed since 
September 30, 2015 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.

Matthew Welbes,
Executive Director.
[FR Doc. 2017-01194 Filed 1-18-17; 8:45 am]
 BILLING CODE P