[Federal Register Volume 87, Number 82 (Thursday, April 28, 2022)]
[Notices]
[Pages 25362-25392]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-09143]



[[Page 25361]]

Vol. 87

Thursday,

No. 82

April 28, 2022

Part II





 Department of Transportation





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Federal Transit Administration





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Notice of FTA Transit Program Changes, Authorized Funding Levels and 
Implementation of the Infrastructure Investment and Jobs Act; and FTA 
Fiscal Year 2022 Apportionments, Allocations, Program Information and 
Interim Guidance; Notice

Federal Register / Vol. 87 , No. 82 / Thursday, April 28, 2022 / 
Notices

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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration


Notice of FTA Transit Program Changes, Authorized Funding Levels 
and Implementation of the Infrastructure Investment and Jobs Act; and 
FTA Fiscal Year 2022 Apportionments, Allocations, Program Information 
and Interim Guidance

AGENCY: Federal Transit Administration (FTA), Department of 
Transportation (DOT).

ACTION: Notice.

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SUMMARY: This notice announces changes in Federal Transit 
Administration (FTA) programs in accordance with amendments to Federal 
public transportation law by the Bipartisan Infrastructure Law (enacted 
as the Infrastructure Investment and Jobs Act (IIJA)). The IIJA 
authorizes surface transportation programs of the Department of 
Transportation (DOT) for Federal fiscal years (FY) 2022 through 2026 
and provides advance appropriations for certain programs. This notice 
provides preliminary implementation instructions and guidance for the 
new and revised programs in FY 2022, announces the funding 
apportionment for programs authorized and funded with FY 2022 contract 
authority and appropriations, and describes future plans for several 
competitive programs. The notice also includes locations of FY 2022 
apportionment tables and unobligated (or carryover) funds allocated 
under the discretionary programs from prior years.

FOR FURTHER INFORMATION CONTACT: For general information about this 
notice contact John Bodnar, Director, Office of Transit Programs, at 
(202) 366-9091. Please contact the appropriate FTA Regional Office for 
any specific requests for information or technical assistance. FTA 
Regional Office contact information is available at: https://www.transit.dot.gov/about/regional-offices/regional-offices.
    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 to GovDelivery (https://public.govdelivery.com/accounts/USDOTFTA/subscriber/new) to receive 
email notifications when new information is available.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Overview
II. FY 2022 Funding for FTA Programs
    A. Federal Transit Law as Amended by the IIJA Authorization and 
FY 2022 Appropriations
    B. Oversight Takedown
    C. Formula Apportionment Data and Methodology
     1. Apportionment Tables
     2. National Transit Database and Census Data Used in FY 2022 
Apportionments
    D. Previously Authorized Funding
III. IIJA and FY 2022 Appropriations: Highlights of Changes
    A. Grant Program Modifications
     1. Modifications to Formula Programs
     2. Competitive Programs
    B. Washington Metropolitan Area Transit Authority Funding
    C. Definitional Changes and New Definitions
    D. Cross-Cutting Programmatic Requirements and Changes
     1. Metropolitan and Statewide Planning
     2. Innovative Bus Procurement
     3. Disposition of Rolling Stock, Equipment and Supplies
     4. Transfer of Property to Non-Governmental Entities
     5. Fleet Transition Plan
     6. National Transit Database
IV. Program-Specific Information
    A. Metropolitan and Statewide Transportation Planning Program 
(49 U.S.C. 5303 and 5305(d))
    B. State Planning and Research Program (49 U.S.C. 5304 and 
5305(e))
    C. Urbanized Area Formula Program (49 U.S.C. 5307)
    D. Fixed Guideway Capital Investment Grants 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. FY 2022 Transit Infrastructure Grants--Community Project 
Funding/Congressionally Directed Spending
V. FTA Policy and Procedures for FY 2022 Grants
    A. Automatic Pre-Award Authority To Incur Project Costs
    B. Letter of No Prejudice (LONP) Policy
    C. FY 2022 Annual List of Certifications and Assurances
    D. Civil Rights Requirements
    E. Consolidated Planning Grants
    F. Grant Application Procedures
    G. Grant Management

I. Overview

    This document contains important information and interim guidance 
about new FTA programs and changes to existing FTA program statutes (49 
U.S.C. 5301, et seq.), as amended by the Bipartisan Infrastructure Law, 
which was enacted as the Infrastructure Investment and Jobs Act (IIJA) 
(Pub. L. 117-58), signed by President Biden on November 15, 2021, and 
effective on October 1, 2021.
    In addition, this document provides apportionments for FTA formula 
and discretionary programs for FY 2022 based on the Consolidated 
Appropriations Act, 2022 (Pub. L. 117-103, March 15, 2022). It also 
contains information on how FTA plans to administer its transit 
programs in FY 2022 and how funds appropriated and allocated prior to 
FY 2022 will be treated.
    This notice highlights important changes to FTA programs, including 
new competitive programs. It describes definitional changes and cross-
cutting requirements and provides specific information about FTA's 
statutory programs as amended by the IIJA.
    For each FTA program, FTA has provided information on the IIJA-
authorized funding levels for FY 2022, the basis for apportionment or 
allocation of funds, requirements specific to the program, period of 
availability of funds, and other program information. A separate 
section provides information on pre-award authority and other 
requirements and guidance applicable to FTA programs and grant 
administration. Finally, the notice includes references to tables on 
FTA's website that show amounts apportioned under the FY 2022 
appropriations and approximately $2.3 billion in unobligated or 
carryover funding available in FY 2022 under certain competitive 
programs carried out in accordance with prior authorization acts.
    Information in this document includes references to the existing 
FTA program guidance and circulars. Some information may have been 
superseded by new provisions in the IIJA, 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 when necessary.

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II. FY 2022 Funding for FTA Programs

A. Federal Transit Law as Amended by the IIJA Authorization and FY 2022 
Appropriations

    The IIJA is the new five-year surface transportation 
reauthorization legislation that provides FTA an authorization level of 
$21.01 billion in FY 2022 and up to a total of $108.15 billion from FY 
2022 through FY 2026. The IIJA modifies certain transit programs; 
provides significant funding increases; creates four new competitive 
grant programs; and changes several cross-cutting requirements. The law 
continues and expands FTA's authority to strengthen the safety of 
public transportation systems throughout the United States.
    Of the $108.15 billion, the IIJA provides for $69.9 billion to be 
provided from the Mass Transit Account, provides $21.25 billion in 
advance appropriations, and authorizes an additional $17 billion to be 
appropriated from the General Fund of the Treasury.
    The Consolidated Appropriations Act, 2022, appropriated 
$16,264,763,267 for FY 2022, providing the authorized $13.355 billion 
for the Mass Transit Account; appropriated $504,263,267 in Transit 
Infrastructure Grants, including an additional $175 million for the 
Buses and Bus Facilities Competitive grant program, an additional $75 
million for the Low or No Emission Grants program, an additional $6.5 
million for the Urbanized Area Passenger Ferry program; an additional 
$2 million for the Bus Testing program, an additional $12 million for 
several research programs, $20 million for competitive grants to assist 
areas of persistent poverty, $200,798,267 for Community Project 
Funding/Congressionally Directed Spending and an additional $12.965 
million to the ferry service for rural communities program; 
appropriated $7.5 million in additional technical assistance and 
training funding; appropriated $2.248 billion for the Capital 
Investment Grant program and the Expedited Project Delivery Pilot 
Program, and appropriated $150,000,000 for the Washington Metropolitan 
Area Transit Authority. Combined with the $4.25 billion in advance 
appropriations for FY 2022, a total of $20,514,763,267 was appropriated 
for FY 2022. Funding availability for each program is identified in 
section IV of this notice and Table 1 located on FTA's FY 2022 
Apportionment web page.

B. Oversight Takedown

    The IIJA did not modify the percentage takedown for oversight 
provided in section 5338(c).\1\ The following oversight takedowns of 
FTA programs will be applied: 0.5 percent of Metropolitan and Statewide 
Planning funds, 0.75 percent of Urbanized Area Formula funds, 1 percent 
of Fixed Guideway Capital Investment Grants 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 recipient-specific problems and 
issues; to generally provide technical assistance and correct 
deficiencies identified in compliance reviews and audits; and to 
support FTA's administrative expenses.
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    \1\ All references to ``section'' herein refer to sections of 
Chapter 53 of Title 49 of the United States Code, unless otherwise 
specifically stated.
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    Additionally, the IIJA provides for a 2 percent takedown from each 
of the advance appropriations provided under Division J, Title VIII of 
IIJA, except for the Capital Investment Grant takedown, which remains 
at 1 percent. One-half percent of that two percent is to be provided to 
the U.S. DOT Office of the Inspector General (OIG).

C. Formula Apportionment Data and Methodology

1. Apportionment Tables
    FTA has published apportionment tables on its website for each 
program that reflect the full-year appropriations less oversight take-
downs, as applicable. Tables displaying the funds available to eligible 
states, tribes, and urbanized areas have been posted to http://www.transit.dot.gov/funding/apportionments. This website contains a 
page listing the apportionment and allocation tables for FY 2022, as 
well as links to prior year formula apportionment notices and tables 
and the National Transit Database and Census data used to calculate the 
FY 2022 apportionments.
2. National Transit Database and Census Data Used in the FY 2022 
Apportionments
    Consistent with past practices, the calculations for sections 5307, 
5311, including 5311(j) (Tribal Transit), 5329, 5337, and 5339 programs 
rely on the most-recent transit service data reported to the National 
Transit Database (NTD), which in this case is the 2020 report year. Due 
to the ongoing impacts of the COVID-19 pandemic, FTA allowed all 
transit agencies to substitute their 2019 NTD data in place of their 
2020 data in all cases where that transit agency provided more vehicle 
revenue miles of service in 2019 than in 2020. In some cases where an 
apportionment is based on the age of the system, the age is calculated 
as of September 30, 2021, which was the last day before FY 2022 began. 
Any recipient or beneficiary of either the section 5307 or section 5311 
program funds is required to report to the NTD. All other FTA grant 
recipients that own, operate, or manage transit capital assets must 
report their asset data to the NTD. Additionally, a number of transit 
operators report to the NTD on a voluntary basis. For the 2020 report 
year, the NTD includes data from 949 reporters in urbanized areas, 929 
of which reported operating transit service. The NTD also includes data 
from 1,326 providers of rural transit service, which includes 133 
Indian Tribes providing transit service. The IIJA made a number of 
changes to NTD reporting requirements. Before implementing these 
changes, FTA will provide notice and seek comment on implementation in 
a separate notice in the Federal Register.
    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 Section 5311.\2\ 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 
has been using the data for these populations available via the Census' 
American Community Survey (ACS). The NTD and census data that FTA used 
to calculate the apportionments associated with this

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notice can be found on FTA's website: Formula Apportionments Data.
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    \2\ It should be noted that the 2020 Census data is not yet 
available. Once published the data will be applied to the FY 2023 
allocations.
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    The FY 2022 apportionments use data on low-income persons, persons 
with disabilities, and older adults from the 2015-2019 ACS five-year 
data set, which was published in December 2020. This data represents 
the most recent five-year ACS estimates that are available as of 
October 1st for the year being apportioned. As was the case in prior 
years, data on low-income persons comes from ACS Table B17024, ``Age by 
Ratio of Income to Poverty in the Last Twelve Months,'' and data on 
people with disabilities under 65 years old comes from ACS Table S1810, 
``Disability Characteristics.'' For the FY 2022 apportionments, FTA is 
using data on older adults (over 65 years old) from ACS Table B01001, 
``Sex by Age'' after determining that the ACS table used in prior 
fiscal years (ACS Table S.0103, ``People over 65 in the United 
States'') did not include data for all urbanized areas.

D. Previously Authorized Funding

    For programs that are continued under the IIJA with amendments, the 
provisions of the IIJA now apply to all unobligated funds from FY 2021 
and prior years, as well as to FY 2022 funds.

III. The IIJA and FY 2022 Appropriations: Highlights of Changes

    The IIJA generally continued FTA's existing programs with 
substantial increases in funding. However, it did modify certain FTA's 
formula and competitive programs, created four new competitive grant 
programs, and modified FTA's cross-cutting and regulatory requirements 
in several areas.

A. Grant Program Modifications

1. Modifications to Formula Programs
    In addition to increased funding levels, the IIJA modified several 
of the formula programs. Modifications to the amounts for particular 
programs or subprograms are described in Section IV.
a. Urbanized Area Formula Program
    The IIJA requires each recipient that serves urbanized areas with 
populations of 200,000 or more to allocate not less than 0.75 percent 
of their Urbanized Area Formula Program funds to safety-related 
projects. Examples of activities that may satisfy this requirement are 
wide-ranging, and may include projects such as improving air filtration 
systems or lighting on transit property, or procurements that improve 
safety by replacing older vehicles in a poor state of good repair with 
newer vehicles in a good state of repair with modern safety features. 
Recipients in large urbanized areas that may use section 5307 funding 
for operating expenses by qualifying under the ``100-bus rule'' may 
identify operating expenses that satisfy the safety requirement. Note 
that this is separate from the requirement for urbanized areas to use 1 
percent of the funds apportioned under section 5336 for security under 
the Urbanized Area Formula Program. However, some safety expenditures 
identified to satisfy the safety requirement may also be used to 
support the 1% requirement for security-related projects for the UZA if 
the recipient can justify the expense as both a safety and a security 
expense.
b. Grants for Buses and Bus Facilities Formula Program
    The IIJA modifies the Grants for Buses and Bus Facilities Formula 
and Competitive programs to include a requirement for applicants to 
use, to the extent possible, innovative procurement tools authorized 
under Section 3019 of the FAST Act (Pub. L. 114-94). If fewer than five 
buses are purchased through a stand-alone procurement, the recipient 
must provide a written explanation to FTA of why the authorized 
procurement tools were not used. (See Section IV.O.)
2. Competitive Programs
    The IIJA continues six competitive programs and creates four new 
programs. FTA is in the process of developing program guidance for all 
discretionary programs, which will be published in Notices of Funding 
Opportunity (NOFO) for each program. These include:
a. Transit-Oriented Development Planning Pilot Program (Section 
20005(b) of MAP-21)
    This competitive pilot program for transit-oriented development 
(TOD) planning grants continues and is authorized for $68.9 million 
over five years, with $13.1 million authorized for FY 2022. Eligible 
activities include site-specific as well as comprehensive planning 
associated with new fixed guideway and core capacity improvement 
projects. The comprehensive plans should enhance economic development, 
ridership, and other goals established during the project development 
and engineering processes; facilitate multimodal connectivity and 
accessibility; increase access to transit hubs for pedestrian and 
bicycle traffic; enable mixed-use development; identify infrastructure 
needs associated with the project; and include private sector 
participation. Also, provisions under the IIJA now permit federal 
financing for site-specific as well as comprehensive planning. 
Previously only comprehensive planning was eligible for federal funds. 
A NOFO will be published announcing the amount of funding available, 
application procedures, project and applicant eligibility, and relevant 
selection criteria.
    For more information or questions on this program, please contact 
April McLean-McCoy at 202-366-7429 or [email protected].
b. Passenger Ferry Grant Program (49 U.S.C. 5307(h))
    The competitive Passenger Ferry Grant Program continues without 
changes. Of the amount authorized for Section 5307 each year, $30 
million is set aside for the competitive discretionary Passenger Ferry 
Grant Program. Eligible projects are capital projects in urbanized 
areas including ferries, terminals, and related infrastructure. A NOFO 
will be published announcing the amount of funding available, 
application procedures, project and applicant eligibility, and relevant 
selection criteria.
    For more information about this program, please contact Vanessa 
Williams at 202-366-4818 or [email protected]">Vanessa.[email protected].
c. Electric or Low-Emitting Ferry Pilot Program (NEW)
    The IIJA authorizes a new pilot program to provide grants for the 
purchase of electric or low-emitting ferries and the electrification of 
or other reduction of emissions from existing ferries. A total of $50 
million for each fiscal year through 2026 is authorized to be 
appropriated to carry out this program. An additional $50 million in 
advance appropriations is provided each fiscal year, for a total of up 
to $100 million annually.
    The term ``electric or low-emitting ferry'' means a ferry that 
reduces emissions by utilizing alternative fuels or onboard energy 
storage systems and related charging infrastructure to reduce emissions 
or produce zero onboard emissions under normal operation.
    A NOFO will be published announcing the amount of funding 
available, application procedures, project and applicant eligibility, 
and relevant selection criteria.
    For more information about this program, please contact Vanessa 
Williams at 202-366-4818 or [email protected]">Vanessa.[email protected].

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d. Ferry Service for Rural Communities (NEW)
    The IIJA authorizes a new competitive program to provide funds to 
States for basic essential ferry service. A total of $200 million per 
year is authorized to be appropriated over five years with an 
additional $200 million in advance appropriations provided for each of 
fiscal years 2022 through 2026 to carry out this program. In FY 2022, 
an additional $12.965 million was appropriated, for a total of 
$212,965,000 to be made available.
    A NOFO will be published announcing the amount of funding 
available, application procedures, project and applicant eligibility, 
and relevant selection criteria.
    For more information about this program, please contact Sarah 
Clements at 202-366-3062 or [email protected].
e. Innovative Coordinated Access and Mobility Pilot Program (FAST Act 
Section 3006(b))
    The competitive pilot program for innovative coordinated access and 
mobility continues without changes. A total of $24.1 million is 
authorized for this program over five years, with $4.6 million 
authorized in FY 2022. Eligible applicants include state departments of 
transportation, designated recipients of formula grants for the 
Enhanced Mobility of Seniors and Individuals with Disabilities (Section 
5310) program, local governmental entities that operate a public 
transportation service, or their eligible subrecipients. The program is 
designed to assist in financing innovative projects that improve the 
coordination of transportation services and non-emergency medical 
transportation (NEMT) services for people who are transportation 
disadvantaged. A NOFO was published on October 7, 2021, that announced 
funding, application procedures, project and applicant eligibility, and 
relevant selection criteria (86 FR 55907). A report is published each 
year on the pilot program. The most recent report is available at 
Section 3006(b) Pilot Program for Innovative Coordinated Access and 
Mobility Fiscal Year 2021.
    For more information about this program, please contact Destiny 
Buchanan at 202-493-8018 or [email protected].
f. Rail Vehicle Replacement Program (NEW)
    The IIJA authorizes a new competitive program funded under the 
State of Good Repair formula program at $1.5 billion over five years, 
with $300 million annually to assist State and local governmental 
authorities in financing capital projects for the replacement of rail 
rolling stock. The IIJA requires that not more than 3 new awards shall 
be issued to eligible projects under this program on a competitive 
basis each fiscal year.
    In awarding grants under this program consideration shall be given 
to--
    (A) the size of the rail system of the applicant,
    (B) the amount of funds available to the applicant under this 
subsection,
    (C) the age and condition of the rail rolling stock of the 
applicant that has exceeded or will exceed the useful service life of 
the rail rolling stock in the 5-year period following the grant; and
    (D) whether the applicant has identified replacement of the rail 
vehicles as a priority in the investment prioritization portion of the 
transit asset management plan of the recipient pursuant to 49 CFR part 
625 (or successor regulations).
    The amount of grant assistance provided under subsection 5337(f), 
as a share of eligible project costs, shall be not more than 50 
percent. The total Federal share of the cost of an eligible project 
carried out under this program shall not exceed 80 percent; eligible 
recipients may supplement the section 5337(f) share with other Federal 
funds, including FTA formula funds. Eligible projects selected for 
funding may be carried out through a multi-year grant agreement of up 
to 3 consecutive fiscal years.
    A NOFO will be published announcing the amount of funding 
available, application procedures, project and applicant eligibility, 
and relevant selection criteria.
    For more information about this program, please contact Mark 
Bathrick, 202-366-9955 or [email protected].
g. Public Transportation on Indian Reservations Competitive Program (49 
U.S.C. 5311(c)(1)(A))
    The Public Transportation on Indian Reservations competitive 
program continues with $45.8 million authorized over 5 years with $8.75 
million authorized for FY 2022. The program is otherwise unchanged. FTA 
published a NOFO announcing FY 2022 Tribal Transit competitive funding 
on February 16, 2022 (87 FR 8923).
    For more information about this program, please contact Elan 
Flippin, 202-366-3800 or [email protected].
h. Grants for Buses and Bus Facilities Competitive Program (49 U.S.C. 
5339(b))
    The competitive buses and bus facilities program is continued with 
several modifications. A total of $1.9 billion over five years is 
authorized to carry out the 5339(b) Grants for Buses and Bus Facilities 
Competitive Program, with $372 million authorized in FY 2022. An 
additional $175 million was appropriated in FY 2022, for a total of 
$547 million. Eligible capital projects include projects to replace, 
rehabilitate, lease, and purchase buses and related equipment and 
projects to purchase, rehabilitate, construct or lease bus-related 
facilities. Modifications include a requirement for applicants to use, 
to the extent possible, innovative procurement tools authorized under 
Section 3019 of the FAST Act. If fewer than five buses are purchased 
through a stand-alone procurement, the recipient must provide a written 
explanation to FTA of why the authorized procurement tools were not 
used. (See Section C.3). Applicants of zero-emission buses must also 
submit a fleet transition plan and 5 percent of the requested funds in 
their application must be for workforce development activities, unless 
the applicant certifies that less is needed to carry out their zero-
emission fleet transition plan. The law permits an applicant to the 
Grants for Buses and Bus Facilities Competitive Program competitive 
program that is also applying for the Low or No Emission Grant program 
to propose partnerships with other entities, which would then be deemed 
to satisfy the competitive procurement requirements under 49 U.S.C. 
5325. The law now requires FTA to issue the NOFO within 30 days of a 
full-year appropriation and announce selections within 75 days of the 
application due date and increases the minimum for rural awards from 10 
to 15 percent of the total, unless there are insufficient applications. 
FTA published the NOFO for the program on March 4, 2022 (87 FR 12528).
    For more information about the Grants for Buses and Bus Facilities 
Competitive Program, contact Amy Volz, Office of Transit Programs at 
(202) 366-7484 or [email protected].
i. Low or No Emission Program (49 U.S.C. 5339(c))
    The Low or No Emissions Program (Low-No Program) is continued with 
several modifications. The IIJA authorizes $374,550,890 and provides an 
additional $5.25 billion in advance appropriations for a total of $5.6 
billion over five years, with $1.1 billion authorized for FY 2022. An 
additional

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$75 million was appropriated in FY 2022 for a total of $1.175 billion. 
Eligible projects or programs of projects include the acquisition and 
leasing of low or no emission vehicles, constructing and leasing 
facilities, and rehabilitating or improving existing facilities to 
accommodate low or no emission vehicles. Modifications include a 
clarification that requirements of section 5311 apply to rural 
recipients. The law requires applicants for zero-emission buses to 
submit a fleet transition plan, and 5 percent of the funds requested in 
the application must be for workforce development activities, unless 
the applicant certifies that less is needed to carry out its zero-
emission fleet transition plan. A recipient of a grant under this 
subsection may submit an application in partnership with other 
entities, including a transit vehicle manufacturer, that intends to 
participate in the implementation of an eligible project under this 
subsection. Eligible projects awarded with partnerships under this 
subsection shall be considered to satisfy the requirement for a 
competitive procurement under section 5325. Not less than 25 percent of 
Low or No Emissions Grants total funding must be used for low-emission 
vehicles and related facilities (such as compressed natural gas or 
hybrid vehicles). FTA published the NOFO for the program on March 4, 
2022 (87 FR 12528).
    For more information about the Low or No Emission Program, contact 
Amy Volz, Office of Transit Programs at (202) 366-7484 or 
[email protected].
j. All Station Accessibility Program (NEW)
    The advance appropriations of the IIJA provides $1.75 billion ($350 
million per year) for a new competitive All Stations Accessibility 
Program (ASAP) to provide states and local government authorities 
funding for capital projects to upgrade the accessibility of legacy 
rail fixed guideway public transportation systems for people with 
disabilities, including those who use wheelchairs, by increasing the 
number of existing stations or facilities for passenger use that meet 
or exceed the construction standards of Title II of the Americans with 
Disabilities Act of 1990 (42 U.S.C. 12131 et seq.). Eligible entities 
are encouraged to consult with appropriate stakeholders, including 
current and potential transit customers with disabilities and 
disability advocacy groups, and the surrounding community to ensure the 
projects provide accessibility for individuals with disabilities, 
including accessibility for individuals with physical disabilities, 
including those who use wheelchairs; accessibility for individuals with 
sensory disabilities; and accessibility for individuals with 
intellectual or developmental disabilities.
    An eligible entity may not use a grant awarded under this program 
to upgrade a station or facility for passenger use that is accessible 
to and usable by individuals with disabilities, including individuals 
who use wheelchairs, consistent with current (as of the date of the 
upgrade) construction standards under Title II of the Americans with 
Disabilities Act of 1990 (42 U.S.C. 12131, et seq.).
    A grant for a project made with amounts made available under this 
program shall be for 80 percent of the net project cost. All projects 
shall at least meet the construction standards of Title II of the 
Americans with Disabilities Act of 1990 as implemented by the U.S. DOT 
ADA regulations at 49 CFR parts 37 and 38.
    FTA will publish a NOFO announcing the amount of FY 2022 funding 
available, application procedures, project and applicant eligibility, 
and relevant selection criteria.
    For more information about this program, please contact Kevin 
Osborn at 202-366-7519 or [email protected].
k. Public Transportation Emergency Relief Program (49 U.S.C. 5324).
    The IIJA modified the Emergency Relief Program to require an 
applicant, before receiving a grant, to (1) submit to FTA documentation 
demonstrating proof of insurance required under Federal law for all 
structures related to the grant application; and (2) certify to FTA 
that the applicant has insurance required under State law for all 
structures related to the grant application.
    For more information or questions on this program, please contact 
Tom Wilson at (202) 366-5279 or [email protected].
l. Capital Investment Grants Program
    The IIJA continues, with modifications, the discretionary Fixed 
Guideway Capital Investment Grants (CIG) program, which funds fixed 
guideway investments including new and expanded rapid rail, commuter 
rail, light rail, streetcars, bus rapid transit, and ferries, as well 
as corridor-based bus rapid transit investments that emulate the 
features of rail. There are three categories of eligible projects under 
the CIG program: New Starts, Small Starts, and Core Capacity. Each type 
of CIG project has a unique set of requirements in the law, although 
many similarities exist among them. To be eligible to receive a CIG 
construction grant, all proposed projects must go through a multi-year, 
multi-step development process outlined in the law. FTA is required to 
evaluate and rate CIG projects on statutorily defined project 
justification and local financial commitment criteria that differ by 
project type, and a project must receive at least a ``Medium'' overall 
rating to advance through the steps in the process and receive a 
construction grant award. The IIJA authorizes $3 billion per year in 
annual appropriations for the CIG Program, including funding that may 
be awarded under the Expedited Project Delivery Pilot Program. In 
addition, the law directly provides $1.6 billion per year in advance 
appropriations as a supplement to annual appropriations for this 
program.
    Additionally, the IIJA makes several revisions:
     Revises the Small Starts and New Starts eligibility 
thresholds. Small Starts are now projects with a total estimated 
project cost of less than $400,000,000 and that are seeking CIG funding 
of less than $150,000,000. New Starts are projects with a total 
estimated project cost of $400,000,000 or more or that are seeking CIG 
funding of $150,000,000 or more.
     Revises Core Capacity project eligibility to corridors 
that are at capacity today or will be in 10 years, rather than the 5-
year timeframe under the FAST Act.
     Establishes a process for immediate and future bundling of 
CIG projects to allow sponsors to move multiple projects through the 
CIG pipeline simultaneously. The new bundling eligibilities replace the 
prior ``Program of Interrelated Projects'' eligibility.
     Adds a requirement for the Secretary to determine that a 
project sponsor has made progress toward meeting the transit asset 
management performance targets required by 49 U.S.C. 5326(c)(2).
     Amends the ``warrants'' provisions for New Starts and Core 
Capacity projects to remove the requirement that the total estimated 
capital cost of the project must be under $100,000,000.
     Requires the Secretary to provide full and fair 
consideration to projects that seek an updated rating after a period of 
inactivity following an earlier rating and evaluation.
     Adds a requirement that FTA publish, at least monthly, a 
dashboard on its public website with information on each project 
seeking CIG funding.
     Revises Before and After Study requirements (an analysis 
of predicted versus actual cost and ridership

[[Page 25367]]

outcomes after a CIG project opens for service). The requirement that 
FTA report on those studies to Congress annually was also eliminated. 
Instead, the GAO, as part of its biennial review of the CIG program, 
will report to Congress on the differences between the predicted and 
actual outcomes for CIG projects.
     Revises the congressional notification timeframe required 
before a CIG construction grant can be awarded from 30 days to 15 days 
for New Starts and Core Capacity projects.
    On March 15, 2022 FTA published in the Federal Register a Notice of 
availability of initial guidance proposals for the Capital Investment 
Grants program (87 FR 14612).
m. Grants To Assist Areas of Persistent Poverty
    This competitive pilot program for the Areas of Persistent Poverty 
Program (AoPP) has been appropriated in FY 2020 ($8,500,000), 2021 
($16,220,000) and 2022 ($20,000,000). As required by law, funds will be 
awarded competitively for planning, engineering, or development of 
technical or financing plans for projects that assist areas of 
persistent poverty. To be considered eligible, proposed projects must 
be in a county with 20 percent or more of the population living in 
poverty over the 30 years preceding the date of enactment of the 
appropriation act, as measured by the 1990 and 2000 decennial census 
and the most recent Small Area Income and Poverty Estimates, or from 
any census tract with a poverty rate of at least 20 percent as measured 
by the 2013-2017, 5-year data series available from the American 
Community Survey of the Census Bureau. The FTA has posted a table and 
maps of the Areas of Persistent Poverty that meet these criteria at 
www.transit.dot.gov. A NOFO will be published announcing the amount of 
funding available, application procedures, project and applicant 
eligibility, and relevant selection criteria.
    For more information or questions on this program, please contact 
Tonya Holland at 202-493-0283 or [email protected].

B. Washington Metropolitan Area Transit Authority Funding

    The IIJA reauthorizes the Passenger Rail Investment and Improvement 
Act of 2008 (PRIIA) (Pub. L. 110-432) to provide supplemental funding 
for the Washington Metropolitan Area Transit Authority (WMATA) through 
fiscal year 2030 at $150,000,000 annually. Each year, WMATA must set 
aside $5,000,000 for the exclusive use of the WMATA Inspector General. 
A GAO audit is required within three years to assess the independence 
of the Inspector General and the extent to which additional required 
reforms have been implemented and are successful.

C. Definitional Changes and New Definitions

    Section 30001 of the IIJA amended section 5302 to provide one new 
definition and to amend existing definitions that clarify eligibility 
and requirements within FTA's programs. Unless otherwise stated, these 
definitions apply across all FTA programs, and are effective with all 
funds obligated on or after October 1, 2021, even if the funds were 
appropriated in earlier fiscal years. Several important definitional 
changes include:
1. Assault on a Transit Worker
    The term ``assault on a transit worker'' means a circumstance in 
which an individual knowingly, without lawful authority or permission, 
and with intent to endanger the safety of any individual, or with a 
reckless disregard for the safety of human life, interferes with, 
disables, or incapacitates a transit worker while the transit worker is 
performing the duties of the transit worker.
2. Capital Project
    The provision of technology to fuel a zero-emission vehicle is now 
an eligible expense as a part of a joint development project. Guidance 
will be forthcoming on this issue.

D. Cross-Cutting Programmatic Requirements and Changes

    The following cross-cutting requirements apply to all FTA programs 
as of October 1, 2021, unless otherwise noted.
1. Metropolitan and Statewide Planning
    The planning programs provide funding and procedural requirements 
to metropolitan areas and States for multimodal transportation planning 
that is cooperative, continuous, and comprehensive, resulting in long-
range plans and short-range programs of projects that reflect 
transportation investment priorities. The planning programs are jointly 
administered by FTA and the Federal Highway Administration (FHWA), 
which provides additional funding. There are five changes noted below. 
The amendments to sections 5303, 5304, 5305 include:
     Adds consideration of state and local housing patterns in 
the metropolitan planning process and requires MPOs to provide 
affordable housing organizations an opportunity to comment on the 
transportation plan.
     Requires MPOs to ensure the consistency of data used in 
the planning process, including information used in forecasting travel 
demand, if more than one MPO is designated within an urbanized area.
     Permits the use of social media and other web-based tools 
to encourage public participation in the planning process.
     Requires MPOs to consider the equitable and proportional 
representation of the population of the metropolitan planning area when 
designating officials for the first time.
     Permits a greater than 80 percent federal share for 
transportation planning in certain circumstances and requires a federal 
share of not less than 90 percent for activities that assist lower-
density or lower-income portions of urbanized or adjoining rural areas.
    In addition to changes in sections 5303 and 5304, FTA notes the 
Metropolitan and Statewide planning processes continue to emphasize a 
performance-based planning process: MPOs and State DOTs must establish 
performance targets that address forthcoming U.S. DOT-issued national 
performance measures that are based on the goals outlined in the 
legislation--safety, infrastructure condition, congestion reduction, 
system reliability, economic vitality, environmental sustainability, 
reduced project delivery delays, transit safety, and transit asset 
management. MPOs also must coordinate their performance targets, to the 
maximum extent practicable, with performance targets set by FTA 
recipients 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 identified in the metropolitan transportation 
plan, linking investment priorities to those performance targets.
2. Innovative Bus Procurement
    The IIJA amends the Grants for Buses and Bus Facilities formula and 
competitive programs and requires applicants to use, to the extent 
possible, innovative procurement tools authorized under Section 3019 of 
the FAST Act. If fewer than five buses are purchased through a stand-
alone procurement, the recipient must provide a written explanation to 
FTA of why the

[[Page 25368]]

authorized procurement tools were not used. Innovative procurements 
authorized under Section 3019 of the FAST Act include: (1) State 
cooperative procurement schedules in which a state government enters 
into a cooperative procurement contract with one or more vendors in 
which the vendors agree to provide an option to purchase rolling stock 
and related equipment to the State government and any other 
participant; and the State government acts throughout the term of the 
contract as the lead procurement agency; (2) participation in the FTA 
pilot program for nonprofit cooperative procurements (Interest 
applicants may forward a Letter of Interest to: [email protected]); 
(3) procurements resulting from the joint procurement clearinghouse 
found in TrAMS; or (4) a capital lease. Note that Section 3019 requires 
all recipients of capital leases (rolling stock and related equipment) 
to submit to FTA, no later than three years after the date on which the 
lease was entered, a report evaluating the overall costs and benefits 
of leasing rolling stock and comparing the expected short-term and 
long-term maintenance costs of leasing versus buying rolling stock.
    As procurement decisions may be made before or after grant award, 
the written explanation, if applicable, should be provided with the 
TrAMS grant application or if the procurement decision is made after 
grant award, to the appropriate FTA Regional Office. It is not required 
for an application in response to a NOFO for a project not yet 
selected. The written explanation may be provided in the form of a 
letter explaining why the provisions of Section 3019 were not utilized 
for the procurement.
3. Disposition of Rolling Stock, Equipment, and Supplies
    The IIJA added a provision changing disposition requirements for 
rolling stock and equipment with a fair market value of more than 
$5,000 per unit and unused supplies with a total aggregate fair market 
value of more than $5,000 that were purchased using Federal financial 
assistance under Chapter 53. If the rolling stock, equipment, or 
supplies are sold at the end of their service life, the recipient shall 
now retain an amount equal to: (1) The sum of $5,000, and (2) of the 
remaining proceeds, a percentage of the amount equal to the non-Federal 
share expended by the recipient in making the original purchase. After 
the recipient calculates and retains this amount, any remaining amounts 
must be returned to FTA. For example, if a bus is sold at the fair 
market value of $12,000 and funded with an 80 percent federal share, 
the recipient retains $5,000 plus 20 percent of the remaining $7,000, 
or $1,400, for a total of $6,400; they must return 80 percent of $7,000 
(or $5,600) to FTA.
    This provision is applicable to sales that occurred after the date 
of enactment of the IIJA on November 15, 2021. FTA posted frequently 
asked questions at: https://www.transit.dot.gov/funding/grants/bipartisan-infrastructure-law-disposition-requirements-frequently-asked-questions.
4. Transfer of Property to Non-Governmental Entities
    Section 6609 of the FY 2022 National Defense Authorization Act 
(NDAA) (Pub. L. 117-81) amended 49 U.S.C. 5334(h)(1), adding a 
disposition option for assets acquired with federal assistance but no 
longer needed for the originally authorized purpose. Under the new 
provision, the Secretary may authorize the transfer of the asset to a 
local governmental authority, non-profit organization, or other third-
party entity if, among other factors, it will be used for transit-
oriented development and includes affordable housing. When FTA concurs 
that the following five criteria are met, the asset may be transferred 
with no further obligation to the Government:
    a. The asset is a necessary component of a proposed transit-
oriented development project;
    b. The transit-oriented development project will increase transit 
ridership;
    c. At least 40 percent of the housing units offered in the transit-
oriented development, including housing units owned by nongovernmental 
entities, are legally binding affordability restricted to tenants with 
incomes at or below 60 percent of the area median income and owners 
with incomes at or below 60 percent the area median income, which shall 
include at least 20 percent of such housing units offered restricted to 
tenants with incomes at or below 30 percent of the area median income 
and owners with incomes at or below 30 percent the area median income;
    d. The asset will remain in use for at least 30 years after the 
date the asset is transferred; and
    e. With respect to a transfer to a third-party entity, a local 
government authority or nonprofit organization is unable to receive the 
property; the overall benefit of allowing the transfer is greater than 
the interest of the Government in liquidation and return of the 
financial interest of the Government in the asset, after considering 
fair market value and other factors; and the third party has 
demonstrated a satisfactory history of construction or operating an 
affordable housing development.
    As part of the process to update FTA program circulars to reflect 
the new authorizing legislation, additional guidance and information 
regarding implementation of this and other provisions, maybe published 
for notice and comment, as determined necessary.
5. Fleet Transition Plan
    The IIJA amended the statutory provisions for the Grants for Buses 
and Bus Facilities Competitive Program and the Low or No Emission 
Program to include the requirement that any application for projects 
related to zero-emission vehicles include a Zero-Emission Transition 
Plan.
    A Zero-Emission Transition Plan must, at a minimum:
    1. Demonstrate a long-term fleet management plan with a strategy 
for how the applicant intends to use the current request for resources 
and future acquisitions.
    2. Address the availability of current and future resources to meet 
costs for the transition and implementation.
    3. Consider policy and legislation impacting relevant technologies.
    4. Include an evaluation of existing and future facilities and 
their relationship to the technology transition.
    5. Describe the partnership of the applicant with the utility or 
alternative fuel provider.
    6. Examine the impact of the transition on the applicant's current 
workforce by identifying skill gaps, training needs, and retraining 
needs of the existing workers of the applicant to operate and maintain 
zero-emission vehicles and related infrastructure and avoid 
displacement of the existing workforce.
6. National Transit Database (NTD)
    The IIJA adds new requirements for the NTD to collect data on 
geographic service area coverage from recipients of the Urbanized Area 
Formula and Rural Area Formula programs. There is also a new 
requirement for the NTD to collect data on fatalities that result from 
impact with a bus and on transit worker assaults from all recipients of 
FTA funding. FTA will provide notice of its plans to implement these 
requirements, and may request comment on that proposal as necessary, in 
a separate Federal Register notice.

IV. Program-Specific Information

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

    Section 5305(d) makes available Federal funding to support a

[[Page 25369]]

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 in 23 CFR part 450, as 
incorporated by reference in 49 CFR part 613, Statewide and Non-
metropolitan Transportation Planning. State Departments of 
Transportation (DOTs) are direct recipients of funds allocated by FTA, 
and the funds are then sub-allocated to Metropolitan Planning 
Organizations (MPOs) for planning activities that support the economic 
vitality of the metropolitan area.
    The metropolitan transportation planning process must establish a 
performance-based approach in which the MPO will develop specific 
performance targets that address transportation system performance 
measures (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 
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, safety, and transit asset 
management; 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; planning for multimodal 
transportation access to transit facilities including pedestrian and 
bicycle access, and transit supportive land use plans; systems 
planning, scenario planning, and corridor-level alternative analysis; 
safety, security, and emergency transportation and evacuation planning; 
air quality planning; and development of coordinated public transit 
human services transportation plans. An exhaustive list of eligible 
work activities is provided in FTA Circular 8100.1D, Program Guidance 
for Metropolitan Planning and State Planning and Research Program 
Grants, dated September 10, 2018.
    For more about the Metropolitan Planning Program, contact Victor 
Austin, Office of Planning and Environment at (202) 366-2996 or 
[email protected].
1. Authorized Amounts
    The IIJA authorizes $799.4 million over five years to provide 
financial assistance for metropolitan planning needs under section 5305 
as follows:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                     Fiscal year                             2022                2023                2024                2025                2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
Funds Authorized....................................      $152,740,2811        $155,931,187        $160,002,736        $163,308,011        $167,459,619
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The table above shows the funding amounts authorized for the 
Metropolitan Planning Program.
2. FY 2022 Funding Availability
    A total of $152,740,2811 is authorized and appropriated for the 
period October 1, 2021, through September 30, 2022, 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 $152,178,080, as shown in the 
table below, after the deduction for oversight and the addition of 
reapportioned funds.

                 Metropolitan Planning Program--FY 2022
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation....................................    $152,740,2811
Oversight Deductions...................................        (763,701)
Reapportioned Funds....................................          201,500
                                                        ----------------
  Total Apportioned....................................      152,178,080
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    The IIJA did not change the funding formula. Of the amounts 
authorized in section 5305, 82.72 percent is made available to the 
Metropolitan Planning program. Eighty percent of the funds are 
apportioned on a statutory basis to the States based on the most recent 
decennial Census for each State's UZA population. The remaining 20 
percent is provided to the States based on an FTA administrative 
formula to address planning needs in larger, more complex UZAs. The 
amount published for each State includes the supplemental allocation.
4. Requirements
    The State allocates Metropolitan Planning funds to MPOs in UZAs or 
portions thereof to provide funds for planning projects included in a 
one- or two-year program of planning work activities (the Unified 
Planning Work Program, or UPWP) that includes multimodal systems 
planning activities spanning both highway and transit planning topics. 
Each State has either reaffirmed or developed, in consultation with 
their MPOs, an allocation formula among MPOs within the State, based on 
the 2010 Census. The allocation formula among MPOs in each State may be 
changed annually, but any change requires approval by the FTA Regional 
Office before grant approval. Program guidance for the Metropolitan 
Planning Program is found in FTA Circular 8100.1D, Program Guidance for 
Metropolitan Planning and State Planning and Research Program Grants, 
dated September 10, 2018.
5. Period of Availability
    The Metropolitan Planning program funds apportioned in this notice 
are available for obligation during FY 2022 plus three additional 
fiscal years. Accordingly, funds apportioned in FY 2022 must be 
obligated in grants by September 30, 2025. Any FY 2022 apportioned 
funds that remain unobligated at the close of business on September 30, 
2025, will revert to FTA for reapportionment under the Metropolitan 
Planning program.

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

    This program provides financial assistance to States for statewide 
transportation planning and other technical assistance activities, 
including supplementing the technical assistance program provided 
through the Metropolitan Planning program. The specific requirements of 
Statewide transportation planning are set forth in 49 U.S.C. 5304 and 
in 23 CFR part 450, as incorporated by reference in 49 CFR

[[Page 25370]]

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 comprehensive intermodal transportation 
planning for the movement of people and goods and has the same 
eligibilities as MPP funds. Comprehensive transportation planning is 
not limited to transit planning or surface transportation planning but 
also encompasses the relationships among land use and all 
transportation modes, without regard to the programmatic source of 
Federal assistance.
    For more information, contact Victor Austin, Office of Planning and 
Environment at (202) 366-2996 or [email protected].
1. Authorized Amounts
    The IIJA authorizes $167 million over five years to provide 
financial assistance for statewide planning and other technical 
assistance activities under section 5305 as follows:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                     Fiscal year                             2022                2023                2024                2025                2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
Funds Authorized....................................        $31,907,061         $32,573,633         $33,424,169         $34,114,633         $34,981,893
--------------------------------------------------------------------------------------------------------------------------------------------------------

2. FY 2022 Funding Availability
    In FY 2022, $31,907,061 is authorized and appropriated for the 
period October 1, 2021 through September 30, 2022 to the State Planning 
and Research Program (section 5305(e)). The total amount apportioned 
for the State Planning and Research Program (SPRP) is $32,019,592 as 
shown in the table below, after the deduction for oversight and 
addition of reapportioned funds.

                   Statewide Planning Program--FY 2022
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation....................................      $31,907,061
Oversight Deductions...................................        (159,535)
Reapportioned Funds....................................          272,066
                                                        ----------------
  Total Apportioned....................................       32,019,592
------------------------------------------------------------------------

    States' apportionments for this program are displayed in Table 2.
3. Basis for Formula Apportionment
    The IIJA did not change the funding formula. Of the amount 
authorized in section 5305, 17.28 percent is allocated to the State 
Planning and Research program. FTA apportions funds to States by a 
statutory formula that is based on the most recent decennial Census 
data available, and the State's UZA population as compared to the UZA 
population of all States.
4. Requirements
    Funds are provided to States for Statewide transportation planning 
programs. These funds may be used for a variety of purposes such as 
planning, technical studies and assistance, demonstrations, and 
management training. In addition, a State may authorize a portion of 
these funds to be used to supplement Metropolitan Planning funds 
allocated by the State to its UZAs, as the State deems appropriate. 
Program guidance for the State Planning and Research program is found 
in FTA Circular 8100.1D, Program Guidance for Metropolitan Planning and 
State Planning and Research Program Grants, dated September 10, 2018.
5. Period of Availability
    The State Planning and Research program funds apportioned in this 
notice are available for obligation during FY 2022 plus three 
additional fiscal years. Accordingly, funds apportioned in FY 2022 must 
be obligated in grants by September 30, 2025. Any FY 2022 apportioned 
funds that remain unobligated at the close of business on September 30, 
2025 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 Federal assistance for 
capital, planning, job access and reverse commute projects, and, in 
some cases, operating assistance for public transportation in urbanized 
areas. An urbanized area (UZA) is an area with a population of 50,000 
or more that has been defined and designated as such by the U.S. Census 
Bureau. Program funds are apportioned to urbanized areas through a 
statutory formula. In addition, $30 million is allocated each year 
under this program to passenger ferry projects through a discretionary 
funding competition.
    For more information about the Urbanized Area Formula Program, 
contact Bret Martin with the Office of Transit Programs, at (202) 366-
0870 or [email protected].
1. Authorized Amounts
    The IIJA authorizes $33.5 billion over five years to provide 
financial assistance for urbanized areas under section 5307. Of the 
amounts authorized and appropriated for section 5307 in each year, $30 
million is set aside for the competitive discretionary Passenger Ferry 
Grant Program, 0.75 percent is apportioned to eligible States for State 
Safety Oversight (SSO) Program grants, 3 percent is apportioned to 
small transit intensive cities, and 0.75 percent is set aside for 
program oversight.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                     Fiscal year                             2022                2023                2024                2025                2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
Funds Authorized....................................     $6,408,288,249      $6,542,164,133      $6,712,987,840      $6,851,662,142      $7,025,844,743
--------------------------------------------------------------------------------------------------------------------------------------------------------

2. FY 2022 Funding Availability
    A total of $6,408,288,249 is authorized and appropriated for the 
section 5307 program for FY 2022. The total amount apportioned to 
urbanized areas is $6,920,874,612 which includes the addition of 
amounts apportioned to UZAs pursuant to the Section 5340 Growing States 
and High-Density States Formula factors and reapportioned funds. This 
amount excludes the set-aside for the Passenger Ferry Discretionary 
Program, apportionments under the State Safety Oversight Program, and 
oversight (authorized by section 5338), as shown in the table below:

                 Urbanized Area Formula Program--FY 2022
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation..................................                \a\
                                                          $6,408,288,249
Oversight Deductions.................................       (48,062,162)
State Safety Oversight Program.......................       (48,062,162)

[[Page 25371]]

 
Passenger Ferry Program..............................       (30,000,000)
5340 High Density States.............................        348,290,112
5340 Growing States..................................        280,465,968
Reapportioned Funds..................................          9,954,607
                                                      ------------------
  Total Apportioned..................................      6,920,874,612
------------------------------------------------------------------------
\a\ Includes 3 percent set-aside for Small Transit Intensive Cities
  Formula.

    Table 3 displays the amounts apportioned under the Urbanized Area 
Formula Program.
    The FY 2022 Appropriations provides $48,062,162 for the State 
Safety Oversight Program and with the addition of $6.5 million in 
Transit Infrastructure Grants, of which $3,250,000 must be made 
available for low or zero-emission ferries and infrastructure, provides 
a total of $36.5 million for the Passenger Ferry Program.
3. Basis for Formula Apportionment
    FTA apportions Urbanized Area Formula Program funds based on 
statutory formulas. Congress established four separate formulas that 
are used to apportion 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 formulas, and a 
formula based on low-income population.
    The IIJA made changes to the apportionment formula for FY 2022 
through 2026. The percentage of funds allocated on the basis of Small 
Transit Intensive Cities (STIC) factor increased to 3 percent. 
Additionally, the takedown for the State Safety Oversight grant program 
has increased to 0.75 percent.
    Consistent with prior apportionment notices, Table 3 shows a total 
section 5307 apportionment for each UZA, which includes amounts 
apportioned under each of these formulas. Detailed information about 
the formulas is provided in Table 4. For technical assistance purposes, 
the UZAs that receive STIC funds are listed in Table 6. FTA will 
provide breakouts of the funding allocated to each UZA under these 
formulas upon request to the FTA Regional Office.
a. Section 5307--Urbanized Area Formula
    For UZAs between 50,000 and 199,999 in population, the section 5307 
formula is based on population and population density. For UZAs with 
populations of 200,000 and more, the formula is based on a combination 
of bus revenue vehicle miles, bus passenger miles, bus operating costs, 
fixed guideway vehicle revenue miles, and fixed guideway route miles, 
as well as population and population density. The Urbanized Area 
Formula is defined in 49 U.S.C. 5336.
    To calculate a UZA's FY 2022 apportionment, FTA used population and 
population density statistics from the 2010 Census and validated 
mileage and transit service data from transit provider's 2020 National 
Transit Database (NTD) Report Year (when applicable). Consistent with 
section 5336(b), FTA has included 27 percent of the fixed guideway 
directional route miles and vehicle revenue miles from eligible 
urbanized area transit systems, but which were attributable to rural 
areas outside of the urbanized areas from which the system receives 
funds. FTA has calculated dollar unit values for the formula factors 
used in the Urbanized Area Formula Program apportionment calculations. 
These values represent the amount of money each unit of a factor is 
worth in this year's apportionment. The unit values change each year, 
based on all of the data used to calculate the apportionments, as well 
as the amount appropriated by Congress for the apportionment. The 
dollar unit values for FY 2022 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).
    The Census Bureau has indicated that it will release urbanized area 
boundaries and definitions from the 2020 Census in summer 2022 or 
later. FTA anticipates implementing these new boundaries and 
definitions in the FY 2023 apportionments. FTA requested comments on 
its procedures for incorporating the urbanized area changes into NTD 
reporting and published its final determination in a Federal Register 
Notice (87 FR 20500).
b. Small Transit Intensive Cities Formula
    Under the STIC formula, FTA apportions 3 percent of the funds made 
available for section 5307 to UZAs that are under 200,000 in population 
and have public transportation service that operates at a level equal 
to or above the industry average for UZAs with a population of at least 
200,000, but not more than 999,999. STIC funds are apportioned on the 
basis of one or more of six performance categories: Passenger miles 
traveled per vehicle revenue mile, passenger miles traveled per vehicle 
revenue hour, vehicle revenue miles per capita, vehicle revenue hours 
per capita, passenger miles traveled per capita, and passengers per 
capita.
    The data used to determine a UZA's eligibility under the STIC 
formula and to calculate the STIC apportionments was obtained from the 
NTD. 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 2022 
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
    The IIJA does not change the formula factor for low-income 
population. Of the amount authorized and appropriated for the Urbanized 
Area Formula Program in each year, 3.07 percent is apportioned on the 
basis of low-income population.
    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 2015-2019. This information is updated by the Census Bureau 
annually.
4. Eligible Expenses
    Eligible activities include planning, engineering design and 
evaluation of transit projects and other technical transportation-
related studies; capital investments in bus and bus-related activities 
such as replacement of buses, overhaul and rebuilding of buses; crime 
prevention and security equipment; construction of maintenance and 
passenger facilities; and capital investments in new and existing fixed 
guideway systems including rolling stock, overhaul and rebuilding of 
vehicles, track, signals, communications, and computer hardware and 
software. All preventive maintenance and some Americans with 
Disabilities Act complementary paratransit service costs are considered

[[Page 25372]]

capital costs. For urbanized areas with populations less than 200,000, 
operating assistance is an eligible expense. In areas over 200,000 in 
population, operating assistance is an eligible expense if the special 
rule (100 Bus Rule) at 49 U.S.C. 5307(a)(2) applies. Job access and 
reverse commute activities remain eligible under the program.
    In addition, recipients may use up to one-half of one percent of 
their section 5307 funds to support workforce development activities at 
an 80 percent Federal share; the eligible workforce development 
activities are defined in Section 5314; see Section IV. K. of this 
notice for more information. This provision is in addition to the one-
half of one percent that recipients may use for training activities 
with the National Transit Institute.
5. Requirements
    Program guidance for the Urbanized Area Formula Program is found in 
FTA Circular 9030.1E, Urbanized Area Formula Program: Program Guidance 
and Application Instructions, dated January 16, 2014, and is 
supplemented by additional information and changes provided in this 
notice and that may be posted to the FTA's section 5307 web page. FTA 
is in the process of updating the program circular to incorporate 
changes resulting from amendments to 49 U.S.C. 5307.
    Key program requirements and changes that apply to all programs are 
addressed in section III.D. of this notice, ``Cross-Cutting 
Programmatic Requirements and Changes.'' The following subsections 
outline several important program requirements and changes that apply 
specifically to the Urbanized Area Formula Program.
6. Period of Availability
    Funds made available under Section 5307 are available for 
obligation during the year of apportionment plus five additional years. 
This is unchanged under the IIJA. Accordingly, funds apportioned in FY 
2022 must be obligated in grants by September 30, 2027. Any FY 2022 
apportioned funds that remain unobligated at the close of business on 
September 30, 2027, will revert to FTA for reapportionment under the 
Urbanized Area Formula Program.
    Funds allocated under the Passenger Ferry discretionary program 
follow the same period of availability as section 5307. Accordingly, 
funds allocated in FY 2022 must be obligated in grants by September 30, 
2027. Any of the funds allocated in FY 2022 that remain unobligated at 
the close of business on September 30, 2027, will revert to FTA for 
reallocation under the Passenger Ferry program.
7. What's New and Other Program Highlights
    Recipients that serve urbanized areas with populations of 200,000 
or more are required to allocate not less than 0.75 percent of their 
Urbanized Area Formula Program funds to safety-related projects. It 
should be noted however, some safety expenditures identified to satisfy 
the safety requirement may also be used to support the 1% requirement 
for security-related projects for the UZA if the recipient can justify 
the expense as both a safety and a security expense.

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

    The Capital Investment Grants (CIG) Program includes three types of 
eligible projects--New Starts projects, Small Starts projects, and Core 
Capacity Improvement 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; and (3) projects that expand the capacity by at least 10 
percent of an existing fixed guideway corridor that is at capacity 
today or will be in ten years.
    Projects become candidates for funding under the Capital Investment 
Grants program by successfully completing steps in the multi-year 
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. 
New Starts and Core Capacity Improvement projects receive construction 
funds from the program through a full funding grant agreement (FFGA) 
that defines the scope of the project and specifies the total multi-
year Federal commitment to the project. Small Starts projects receive 
construction funds through a single year grant or an expedited grant 
agreement that defines the scope of the project and specifies the 
Federal commitment to the project.
    Bundles of CIG projects, comprised of multiple New Starts, Core 
Capacity, and/or Small Starts projects being pursued by the same 
project sponsor, are also allowed. Bundles must enhance or increase the 
capacity of the transportation system and streamline procurements or 
enable time or cost savings for the projects.
    For more information about the Capital Investment Grants program 
contact Elizabeth Day, Office of Capital Project Development, at (202) 
366-5159 or [email protected].
    For information about published allocations contact Kevin Osborn, 
Office of Transit Programs, at (202) 366-7519 or [email protected].
1. Authorized Amounts
    The IIJA authorizes $15 billion to be appropriated over five years 
for the CIG program and the Expedited Project Delivery Pilot Program 
(EPD), with an additional $8 billion in advance appropriations.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                       Fiscal year                                2022               2023               2024               2025               2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
Funds Authorized to be Appropriated......................     $3,000,000,000     $3,000,000,000     $3,000,000,000     $3,000,000,000     $3,000,000,000
Advance Appropriations...................................      1,600,000,000      1,600,000,000      1,600,000,000      1,600,000,000      1,600,000,000
                                                          ----------------------------------------------------------------------------------------------
    Total................................................      4,600,000,000      4,600,000,000      4,600,000,000      4,600,000,000      4,600,000,000
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 25373]]

2. FY 2022 Funding Availability
    In addition to the advance appropriations of $1,600,000,000, 
$2,248,000,000 was appropriated in FY 2022, for a total of 
$3,848,000,00 for the section 5309 CIG and EPD programs. After the 
oversight deduction, $3,809,520,000 is available for eligible projects 
under the program.

                Capital Investment Grant Program--FY 2022
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation....................................   $3,848,000,000
Oversight Deduction....................................     (38,480,000)
                                                        ----------------
  Total Apportioned....................................    3,809,520,000
------------------------------------------------------------------------

3. Basis for Allocation
    Funds are allocated on a discretionary basis and subject to program 
evaluation.
4. Eligible Expenses
    See beginning of section D above.
5. Requirements
    Project sponsors should reference the FTA website at 
www.transit.dot.gov for the most current Capital Investment Grants 
program policy guidance to learn what is required to enter and advance 
through the program. Grant-related guidance is found in FTA Circular 
9300.1B, Capital Investment Grant Program Guidance and Application 
Instructions, November 1, 2008; and C5200.1A, Full Funding Grant 
Agreement Guidance, December 5, 2002, which will be updated to 
incorporate the changes made by the IIJA.
6. Period of Availability
    Funding is available for four years, which is the fiscal year in 
which the amount is made available plus three additional years. 
Therefore, funds for a project identified in FY 2022 must be obligated 
for the project by September 30, 2025. Section 5309 funds that remain 
unobligated after four fiscal years to the projects for which they were 
originally designated may be made available for other section 5309 
projects.
7. What's New and Other Program Highlights
a. New Starts, Small Starts and Core Capacity
    The IIJA amended the Capital Investment Grants Program (CIG) by 
changing the eligibility parameters as described below and eliminating 
the Program of Interrelated Projects and replacing it with a process 
for bundling of projects. Under 49 U.S.C. 5309, as amended by the IIJA, 
New Starts projects are defined as projects with a total capital cost 
of $400 million or greater or that are seeking $150 million or more in 
section 5309 funding. Previously, these thresholds were $300 million 
and $100 million respectively. Eligible New Starts projects are new 
fixed-guideway systems, such as rapid rail (heavy rail), commuter rail, 
light rail, streetcars, trolleybus (using overhead catenary), cable 
car, passenger ferries, and fixed guideway bus rapid transit, or an 
extension of any of these systems. Fixed guideway bus rapid transit is 
defined as operating on an exclusive transit lane for the majority of 
the corridor length and that also includes features that emulate the 
services provided by rail fixed guideway including defined stations, 
traffic signal priority for public transit vehicles, and short headway 
bi-directional service for a substantial part of weekdays and weekends.
    Small Starts projects are defined as projects with a total capital 
cost less than $400 million and that are seeking less than $150 million 
in section 5309 funding. Previously, these thresholds were $300 million 
and $100 million respectively. Eligible Small Starts projects are those 
mentioned for the New Starts program, as well as corridor-based bus 
rapid transit projects that do not operate on a separated fixed 
guideway but include features that emulate the services provided by 
rail fixed guideway including defined stations, traffic signal priority 
for public transit vehicles, and short headway bi-directional services 
for a substantial part of weekdays.
    Core Capacity Improvement projects are defined as substantial, 
corridor-based investments in existing fixed guideway systems that are 
at capacity today or will be in ten years. Previously, the timeframe 
was five years. A Core Capacity Improvement project must increase the 
capacity of the existing fixed guideway system in the corridor by at 
least 10 percent. Core Capacity projects cannot include elements 
designed to maintain a state of good repair. This was not changed from 
the eligibility under the FAST Act.
    The number of steps in the process for projects has not changed. 
For New Starts and Core Capacity Improvement projects, the steps in the 
process include project development, engineering, and construction. For 
Small Starts projects the steps in the process include project 
development and construction. FTA must evaluate and rate projects 
seeking section 5309 funding according to statutorily defined criteria 
at various steps in the process. Bundles of CIG projects, comprised of 
multiple New Starts, Core Capacity, or Small Starts projects being 
pursued by the same project sponsor, are now allowed. Bundles must 
enhance or increase the capacity of the transportation system and 
streamline procurements or enable time or cost savings for the 
projects.
    FTA has issued and will issue additional guidance regarding 
implementation of the IIJA amendments to 49 U.S.C. 5309.
b. Expedited Project Delivery for Capital Investment Grants Pilot 
Program
    The IIJA made several modifications to the pilot program. Eligible 
projects for the pilot program include New Starts, Small Starts, or 
Core Capacity improvement projects that have not yet received a full 
funding grant agreement. However, the definitions of New Starts, Small 
Starts, and Core Capacity differ slightly from those used in the 
Capital Investment Grants program.
    A New Starts project under the EPD pilot program is defined as a 
project with a total capital cost of $400 million or greater or that is 
seeking $150 million or more in funding from the pilot program. A Small 
Starts project under the pilot program is defined as a project with a 
total capital cost less than $400 million and that is seeking less than 
$150 million in funding from the pilot program. A Core Capacity 
Improvement project under the pilot program is defined as a 
substantial, corridor-based capital investment in an existing fixed 
guideway system that increases the capacity of the corridor by not less 
than 10 percent, and can include elements designed to maintain a state 
of good repair.
    Up to eight projects may be selected for the pilot program. 
Projects must be supported at least in part through a public-private 
partnership but must be operated and maintained by employees of an 
existing provider of fixed guideway or bus rapid transit services in 
the area. The maximum Federal funding provided to projects selected for 
the pilot program is 25 percent.
    The IIJA also requires that FTA determine a proposed pilot project 
is justified based on its mobility improvements, environmental 
benefits, congestion relief, economic development effects, and 
estimated ridership and that it is supported by an acceptable degree of 
local financial commitment. FTA published a Notice of Funding 
Opportunity in the Federal Register that described the process for 
project sponsors to apply to FTA for consideration as a pilot project. 
For further information, see 85 FR 45460.

[[Page 25374]]

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

    The Enhanced Mobility of Seniors and Individuals with Disabilities 
Program provides formula funding apportioned to direct recipients: 
States for rural (under 50,000) and small urban areas (50,000-200,000); 
and designated recipients chosen by the Governor of the State for large 
urban areas (populations of 200,000 or more); or a State or local 
governmental entity that operates a public transportation service. The 
Section 5310 program provides capital and operating assistance for 
improving the mobility for seniors and individuals with disabilities by 
removing barriers to transportation service and expanding 
transportation mobility options. This program supports transportation 
services planned, designed, and carried out to meet the special 
transportation needs of seniors and individuals with disabilities in 
all areas.
    This program provides funds to: (1) Serve the special needs of 
transit-dependent populations beyond traditional public transportation 
service, where public transportation is insufficient, inappropriate, or 
unavailable; (2) projects that exceed the requirements of the Americans 
with Disabilities Act (ADA); (3) projects that improve access to fixed-
route service and decrease reliance on complementary paratransit; and 
(4) projects that are alternatives to public transportation.
    For more information about the Section 5310 program, contact 
Destiny Buchanan, Office of Transit Programs, at (202) 493-8018 or 
[email protected]
1. Authorized Amounts
    The IIJA authorizes $1,943,105,343 to be appropriated over five 
years for the Enhanced Mobility of Seniors and Individuals with 
Disabilities formula program, with an additional $250 million provided 
in advance appropriations. This amount does not include funding for the 
Innovative Coordinated Access and Mobility Pilot Program.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                     Fiscal year                            FY 2022             FY 2023             FY 2024             FY 2025             FY 2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
5310 Formula Grants.................................       $421,247,094        $429,002,836        $438,899,052        $446,932,778        $457,023,583
--------------------------------------------------------------------------------------------------------------------------------------------------------

2. FY 2022 Funding Availability
    In FY 2022, $421,247,094 is appropriated for the program. A total 
of $422,037,792 is available for allocation after the oversight and 
administrative deduction, transfer to the US DOT Office of Inspector 
General, and addition of reapportioned funds as shown in the table 
below.

                  Section 5310 Formula Program--FY 2022
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation....................................     $421,247,094
Oversight and Administrative...........................      (2,851,235)
Transfer to OIG........................................          (5,000)
Reapportioned Funds....................................        3,646,933
                                                        ----------------
  Total Apportioned....................................      422,037,792
------------------------------------------------------------------------

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 their urbanized areas with a population of at least 50,000 
but less than 200,000. Twenty percent of the funds are apportioned 
among the States for rural areas with a population of less than 50,000. 
Census Data on Older Adults and People with Disabilities is used for 
the Section 5310 Enhanced Mobility of Older Adults and People with 
Disabilities Apportionments. To view the Section 5310 table which 
displays the amounts apportioned under the Enhanced Mobility of Seniors 
and Individuals with Disabilities Program click here: https://www.transit.dot.gov/funding/apportionments.
    Under the Section 5310 formula, funds are allocated using Census 
data on seniors (i.e., persons 65 and older) and people with 
disabilities. However, beginning in 2010, the Census Bureau stopped 
collecting this demographic information 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 2022 Section 5310 
apportionments incorporate ACS data published in December 2020. Data on 
seniors comes from the ACS 2015-2019 five-year data set, Table B01001, 
``Sex by Age.'' Data on persons with disabilities comes from the ACS 
2015-2019 five-year data set, Table S.1810, ``Disability 
Characteristics.''
4. Eligible Expenses
    Section 5310 funds are available for capital and operating expenses 
to support the provision of transportation services to meet the 
specific needs of seniors and individuals with disabilities. Of the 
amounts apportioned to states and designated recipients, not less than 
55 percent of funds must be used for ``traditional'' Section 5310 
projects--those public transportation capital projects planned, 
designed, and carried out to meet the specific needs of seniors and 
individuals with disabilities when public transportation is 
insufficient, unavailable, or inappropriate. This includes capital 
equipment such as buses and vans; wheelchair lifts, ramps, and 
securement devices; transit-related information technology systems 
including scheduling/routing/one-call systems; and mobility management 
programs. The acquisition of transportation services under a contract, 
lease, or other arrangement is also eligible. Both capital and 
operating costs associated with contracted service are eligible capital 
expenses. The capital eligibility of acquisition of services is limited 
to the Section 5310 program.
5. Requirements
    Up to 45 percent of an area's apportionment may be used for 
additional public transportation projects that: Exceed the Americans 
with Disabilities Act minimum requirements; improve access to fixed-
route service and decrease reliance by individuals with disabilities on 
ADA-complementary paratransit service; or provide alternatives to 
public transportation that assist seniors and individuals with 
disabilities with transportation. This includes projects eligible under 
the former New Freedom program.
a. Eligible Recipients
    Eligible direct recipients include States for rural and small urban 
areas and designated recipients chosen by the Governor of the State for 
large urban areas. Federally recognized Indian tribes and State or 
local governmental entities that operate a public transportation 
service are also eligible direct recipients. For urbanized areas less 
than 200,000 in population and in the rural areas, the State is the 
designated recipient for section 5310. Section 5310 designated 
recipients remain in effect until changed by the Governor of a State by 
officially notifying the appropriate

[[Page 25375]]

FTA regional administrator of re-designation.
    In urbanized areas over 200,000 in population, the recipient 
charged with administering the Section 5310 Program must be officially 
designated in accordance with the planning process, by the Governor of 
a State, responsible local officials, and publicly owned operators of 
public transportation prior to grant award (See definition of 
designated recipient, 49 U.S.C. 5302(5)). Designated recipients are 
responsible for administering the program. Responsibilities include: 
Notifying eligible local entities of funding availability; developing 
project selection processes; determining project eligibility; 
developing the program of projects; and ensuring that all subrecipients 
comply with Federal requirements.
    Although FTA will only award grants to the eligible recipients for 
the program, there are other entities eligible to receive funding as 
subrecipients. These include private nonprofit organizations, and state 
or local governmental authorities approved by a state to coordinate 
services for seniors and people with disabilities, or state or local 
governmental authorities which certify to the Governor that no 
nonprofit organizations or associations are readily available in an 
area to provide the service.
b. Local Match
    The matching requirements for this program remain the same; capital 
assistance is provided on an 80 percent Federal share, 20 percent local 
share. Operating assistance requires a 50 percent local share. Funds 
provided under other Federal programs (other than those of the U.S. 
DOT, with the exception of the Federal Lands Transportation Program and 
Tribal Transportation Program established by sections 202 and 203 of 
title 23, U.S.C.) may be used for local match for funds provided under 
Section 5310, and revenue from service contracts may be used as local 
match.
c. Planning and Consultation
    The coordinated planning provision requires that all projects be 
included in the local coordinated human service-public transportation 
plan.
    FTA requires the following elements, at a minimum, be included in 
the plans:
    i. An assessment of available services that identifies current 
transportation providers (public, private, and nonprofit);
    ii. An assessment of transportation needs for individuals with 
disabilities and seniors;
    iii. Strategies, activities, and/or projects to address the 
identified gaps between current services and needs, as well as 
opportunities to achieve efficiencies in service delivery; and,
    iv. Priorities for implementation based on resources (from multiple 
program sources), time, and feasibility for implementing specific 
strategies and/or activities identified.
    Additionally, the plan must be developed and adopted with 
representation from seniors, individuals with disabilities, 
representatives of public, private, nonprofit transportation and human 
services providers, and other members of the public. Recipients must 
certify that projects were selected from this process and must make 
reference to the plan in the program of projects, which is described 
below.
d. State and Project Management Plans
    FTA will continue to require States, designated recipients, and 
State or local governmental entities that operate a public 
transportation service who are responsible for implementing the Section 
5310 program to document their approach to managing the program. The 
primary purposes of State or Program Management Plans are to serve as 
the basis for FTA management reviews of the program, and to provide 
public information on the administration of the programs.
e. Program of Projects (POP)
    Designated recipients are required to develop a Program of Projects 
(POP) with the grant application and submit it to the FTA Regional 
Office. The POP should be developed with respect to the coordinated 
plan, long range plan, and the transportation improvement plan.
    For additional guidance in developing the required POP, recipients 
can use Chapter IV of the FTA Circular 9070.1G, Enhanced Mobility of 
Seniors and Individuals with Disabilities Program Guidance and 
Application Instructions, dated July 7, 2014.
6. Period of Availability
    For Enhanced Mobility of Seniors and Individuals with Disabilities 
Program funds apportioned under this notice, FTA has administratively 
set the period of availability to the year of apportionment plus two 
years. Accordingly, funds apportioned in FY 2022 must be obligated in 
grants by September 30, 2024. Any FY 2022 apportioned funds that remain 
unobligated at the close of business on September 30, 2024, will revert 
to FTA for reapportionment among the States and urbanized areas.
7. What's New and Other Program Highlights
    The IIJA continues the Section 5310 program without change. 
Recipients may continue to use a competitive selection process to 
select projects, but it is not required. A State may transfer 
apportioned funds between small urbanized areas and rural areas if it 
can certify that the needs are being met in the area to which the funds 
were originally apportioned. The State can transfer the funds (rural 
and small urbanized area) to any area within the state if a statewide 
program for Section 5310 is established. There are no administrative or 
statutory provisions to permit transferring Section 5310 funds to other 
FTA programs nor is there a provision for large urbanized areas to 
transfer their funds to the State.
    Section 5310 program recipients may continue to partner with meal 
delivery programs such as the OAA-funded meal programs (to find local 
programs, visit: www.Eldercare.gov) and the USDA Summer Food Service 
Program http://www.fns.usda.gov/sfsp/summer-food-service-program-sfsp. 
Transit service providers receiving Section 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.
    The Innovative Coordinated Access and Mobility Pilot program 
created through Section 3006(b) of the Fixing America's Surface 
Transportation (FAST) Act, is continued through IIJA.

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 subrecipients include State 
and local governmental authorities, Indian Tribes, private non-profit 
organizations, and private operators of public transportation services, 
including intercity bus companies. Indian Tribes are also eligible 
direct recipients under Section 5311, both for funds apportioned to the 
States and for projects apportioned or selected to be

[[Page 25376]]

funded with funds set aside for a separate Tribal Transit Program.
    For more information about the Formula Grants for Rural Areas 
program, contact Elan Flippin, Office of Transit Programs, at (202) 
366-3800 or [email protected].
1. Authorized Amounts
    The IIJA authorizes $4.1 billion over five years to provide 
financial assistance for rural areas under section 5311(c)(3). The 
Section 5311 program includes three other programs: The Rural Transit 
Assistance Program (RTAP); the Appalachian Development Public 
Transportation Assistance Program; and the Tribal Transit Program. 
These separate programs are described in the sections that follow.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                     Fiscal year                             2022                2023                2024                2025                2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
Funds Authorized....................................       $785,148,545        $801,551,125        $822,480,580        $839,471,067        $860,812,057
--------------------------------------------------------------------------------------------------------------------------------------------------------

    In addition to the funds made available to States under Section 
5311, approximately 14 percent of the funds authorized for the Section 
5340 Growing States formula factors will be apportioned to States for 
use in rural areas.
2. FY 2022 Funding Availability
    In FY 2022, a total of $785,148,545 is authorized and appropriated 
for the section 5311 program for the period October 1, 2021, through 
September 30, 2022. The total amount apportioned is $893,663,711 to 
Section 5311 programs and includes the amount for Growing States 
formula factors, reapportioned funds, and deduction for oversight 
(required by section 5338), as shown in the table below.

             Formula Grants for Rural Areas Program--FY 2022
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation....................................     $785,148,545
Oversight Deductions...................................      (4,376,448)
Section 5340 Growing States............................      112,286,712
Reapportioned Funds....................................          604,902
                                                        ----------------
  Total Apportioned....................................      893,663,711
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    The IIJA made no changes to the formula for the Rural Areas 
Program. FTA apportions Section 5311 funds to the states by a statutory 
formula using the latest available U.S. decennial census data. The 
majority of rural formula funds (83.15 percent) are apportioned based 
on land area and population factors. In this first tier, no state may 
receive more than 5 percent of the amount apportioned on the basis of 
land area. The remaining rural formula funds (16.85 percent) are 
apportioned based on land area, vehicle revenue miles, and low-income 
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 Rural Module of the National Transit Database (NTD) 
was used for this apportionment, including data from directly reporting 
Indian tribes. Data from public transportation systems that reported to 
the Annual (Urbanized Area) Module, and that was not attributable to an 
urbanized area, was also included.
4. Eligible Expenses
    The Section 5311 program provides funding for capital, operating, 
planning, job access and reverse commute projects, and administration 
expenses for public transit service in rural areas under 50,000 in 
population. The planning activities undertaken with Section 5311 funds 
are in addition to those awarded to the State under Section 5305 and 
must be used specifically for rural areas' needs.
a. Intercity Bus Transportation
    Each State must continue to spend no less than 15 percent of its 
annual Rural Areas Formula apportionment for the development and 
support of intercity bus transportation, unless it can certify, after 
consultation with affected intercity bus service providers, that the 
intercity bus service needs of the State are adequately being met. FTA 
continues to encourage consultation with other stakeholders, such as 
communities affected by loss of intercity service. The intercity bus 
service match requirement in 49 U.S.C. 5311(g)(3) allows the cost of an 
unsubsidized portion of privately provided intercity bus service that 
connects feeder service, including all operating and capital costs of 
such service whether or not offset by revenue from such service, to be 
used as in-kind local match for the intercity bus projects.
b. State Administration
    The IIJA did not change the amount available to States for 
administration, planning, and technical assistance. States may elect to 
use up to 10 percent of their apportionment at 100 percent Federal 
share to administer the Section 5311 program and provide technical 
assistance to subrecipients. Technical assistance includes project 
planning, program and management development, public transportation 
coordination activities, and research the State considers appropriate 
to promote effective delivery of public transportation to rural areas.
c. Eligibility for Safety Certification Training
    Recipients of Section 5311 funds are permitted to use not more than 
0.5 percent of their formula funds under the Rural Areas program to pay 
not more than 80 percent of the cost of participation for an employee 
who is directly responsible for safety oversight to participate in 
public transportation safety certification training. Safety 
certification training program requirements are established in 
accordance with Section 5329.
5. Requirements
    The program requirements under this section are generally 
unchanged, with the exception of the cross-cutting requirements 
mentioned in section III.D. of this notice and specific subsections 
outlined below.
    The Federal share for capital assistance is 80 percent and for 
operating assistance is 50 percent, except that States eligible for the 
sliding scale match under FHWA programs may use that match ratio for 
Section 5311 capital projects and 62.5 percent of the sliding scale 
capital match ratio for operating projects. This is not changed under 
the current authorization.
    Each State prepares an annual program of projects, which must 
provide for fair and equitable distribution of funds within the States,

[[Page 25377]]

including Indian reservations, and must provide for maximum feasible 
coordination with transportation services assisted by other Federal 
sources.
    Additional program guidance for the Rural Areas Program is found in 
FTA Circular 9040.1G, Formula Grants for Rural Areas: Program Guidance 
and Application Instructions, dated October 24, 2014, and is 
supplemented by additional information and changes provided in this 
notice and that may be posted to FTA's Section 5311 web page. FTA is in 
the process of updating the program circular to incorporate changes 
resulting from IIJA amendments to 49 U.S.C. 5311.
    The following subsections outline several important program 
requirements that apply specifically to the section 5311 program.
6. Period of Availability
    Section 5311 funds remain available to states for obligation for 
three Federal fiscal years, beginning with the year of apportionment 
plus two additional years. The Rural Areas program funds apportioned in 
this notice are available for obligation during FY 2022 plus two 
additional years. Any FY 2022 apportioned funds that remain unobligated 
at the close of business on September 30, 2024, will revert to FTA for 
reapportionment under the Rural Areas program.
7. What's New and Other Program Highlights
    The IIJA did not modify the rural formula program.

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

    This program is not changed in the IIJA and continues to provide 
funding to assist in the design and implementation of training and 
technical assistance projects, research, and other support services 
tailored to meet the needs of transit operators in rural areas. For 
more information about Rural Transportation Assistance Program (RTAP) 
contact Elan Flippin, Office of Transit Programs, at (202) 366-3800 or 
[email protected].
1. Authorized Amounts
    The IIJA authorizes a two percent takedown from the funds 
appropriated for section 5311 for RTAP. Of this amount, 15 percent is 
reserved for the National RTAP program. The remainder is available for 
allocation to the States.
    The IIJA authorizes $105 million over five years to carry out this 
program.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                     Fiscal year                             2022                2023                2024                2025                2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
Funds Authorized....................................        $20,117,845         $20,538,128         $21,074,403         $21,509,749         $22,056,569
--------------------------------------------------------------------------------------------------------------------------------------------------------

2. FY 2022 Funding Availability
    In FY 2022, $20,117,845 is authorized and appropriated for the 
Section 5311 RTAP program. After the reduction to the National RTAP 
program, and the addition of reapportioned funds a total of $17,563,773 
is available for allocation to the States, as shown in the table below.

            Rural Transportation Assistance Program--FY 2022
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation....................................      $20,117,845
National RTAP..........................................      (2,625,869)
Reapportioned Funds....................................           71,797
                                                        ----------------
  Total Apportioned....................................       17,563,773
------------------------------------------------------------------------

    Table 12 shows the FY 2022 RTAP allocations to the States.
3. Basis for Formula Apportionment
    FTA will continue to allocate funds to the States by an 
administrative formula. First, FTA allocates $65,000 to each State 
($10,000 to territories), and then allocates the balance based on rural 
population in the 2010 census.
4. Eligible Expenses
    Eligible expenses include the design and implementation of training 
and technical assistance projects, research, and other support services 
tailored to meet the needs of transit operators in rural areas.
5. Requirements
    States may use the funds to undertake research, training, technical 
assistance, and other support services to meet the needs of transit 
operators in rural areas. These funds are to be used in conjunction 
with a State's administration of the Rural Areas Formula Program, but 
also may support the rural components of the Section 5310 program.
6. Period of Availability
    The Section 5311 RTAP funds apportioned in this notice are 
available for obligation in FY 2022 plus two additional years, 
consistent with that established for the Section 5311 program.
7. What's New and Other Program Highlights
    The National RTAP project is administered by cooperative agreement 
and re-competed at five-year intervals. In 2019, FTA awarded a 
cooperative agreement to Neponset Valley Transportation Management 
Association to administer the National RTAP Program. The National RTAP 
projects are guided by a project review board that consists of managers 
of rural transit systems and State DOT RTAP programs. National RTAP 
resources also support the biennial TRB National Conference on Rural 
Public and Intercity Bus Transportation and other research and 
technical assistance projects of a national scope.

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

    This program continues as a take-down under the section 5311 
program to provide additional funding to support public transportation 
in the Appalachian region. There are sixteen eligible States that 
receive an allocation under this provision. The States and their 
allocation are shown in the Rural Areas Formula program table posted on 
FTA's website under the FY 2022 Apportionments page.
    For more information about the Appalachian Development Public 
Transportation Assistance Program, contact Elan Flippin, Office of 
Transit Programs, at (202) 366-3800 or [email protected].
1. Authorized Amounts
    The IIJA authorizes a take-down of three percent of Section 5311 
funding for the Appalachian Development Public Transportation 
Assistance Program. A total of $137.4 million is authorized over five 
years as shown on the following table to support public transportation 
in the Appalachian region.

[[Page 25378]]



--------------------------------------------------------------------------------------------------------------------------------------------------------
                     Fiscal year                             2022                2023                2024                2025                2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
Funds Authorized....................................        $26,258,687         $26,807,258         $27,507,228         $28,075,461         $28,789,194
--------------------------------------------------------------------------------------------------------------------------------------------------------

2. FY 2022 Funding Availability
    A total of $26,258,687 is authorized and appropriated for the 
Appalachian Development program for FY 2022, as shown below.

  Appalachian Development Public Transportation Assistance Program--FY
                                  2022
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation....................................      $26,258,687
                                                        ----------------
  Total Apportioned....................................       26,258,687
------------------------------------------------------------------------

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 U.S.C.). Allocations are based in general on each State's 
remaining estimated need to complete eligible sections of the 
Appalachian Development Highway System as determined from the latest 
percentages of available cost estimates for completion of the System. 
Such cost estimates are produced at approximate five-year intervals. 
Allocations contain upper and lower limits in amounts determined by the 
Commission and are made in accordance with legislative instructions.
4. Requirements
    Funds apportioned under this program can be used for purposes 
consistent with Section 5311 to support public transportation in the 
Appalachian region. Funds can be applied for in the State's annual 
Section 5311 grant.
    Appalachian program funds that cannot be used for operating may be 
used for a highway project under certain circumstances. States should 
contact their regional office if they intend to request a transfer. 
Additional information about the requirements for this section can be 
found in Chapter VII of FTA Circular 9040.1G, Formula Grants for Rural 
Areas: Program Guidance and Application Instructions, dated October 24, 
2014.
5. Period of Availability
    Section 5311 Appalachian program funds are available for three 
years, which includes the year of apportionment plus two additional 
years, consistent with that established for the Section 5311 program.
6. What's New and Other Program Highlights
    The IIJA Establishes fixed funding percentages for the Appalachian 
Development Public Transportation Assistance programs, providing three 
percent of Section 5311 funding each year.

I. Formula Grants for Public Transportation on Indian Reservations 
Program (49 U.S.C. 5311(c)(1))

    The Public Transportation on Indian Reservations Program or Tribal 
Transit Program (TTP) is continued as a takedown from the Section 5311 
program. Over the five-year period from FY 2022 through FY 2026, the 
program is authorized at a total of $229 million, of which $183 million 
is for a formula program and $45.8 million is for a discretionary grant 
program. More information on the discretionary program can be found in 
section III.6 of this notice. Eligible direct recipients are federally 
recognized Indian tribes and Alaskan Native Villages providing public 
transportation in rural areas. The TTP funds are to be allocated for 
grants to eligible recipients for any purpose eligible under Section 
5311, which includes capital, operating, planning, and job access and 
reverse commute projects.
    For more information about the Tribal Transit Program contact 
Matthew Lange, Office of Transit Programs at (312) 353-4118 or 
[email protected].
1. Authorized Funding
    Over the five-year period from FY 2022 through FY 2026, the program 
is authorized at a total of $229 million, of which $183 million is for 
a formula program and $45.8 million is for a discretionary grant 
program.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                       Fiscal year                                2022               2023               2024               2025               2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
Formula Funds Authorized.................................        $35,011,582        $35,743,011        $36,676,304        $37,433,948        $38,385,592
Discretionary Funds Authorized...........................          8,752,896          8,935,753          9,169,076          9,358,487          9,596,398
                                                          ----------------------------------------------------------------------------------------------
    Total................................................         43,764,478         44,678,764         45,845,380         46,792,435         47,981,990
--------------------------------------------------------------------------------------------------------------------------------------------------------

2. FY 2022 Funding Availability
    In FY 2022, $35,011,582 is authorized and appropriated for the 
formula program as shown in the table below. After the addition of 
reapportioned funds, a total of $35,823,941 is available to be 
apportioned.

Formula Grants for Public Transportation on Indian Reservations Program--
                                 FY 2022
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation....................................      $35,011,582
Reapportioned Funds....................................          812,359
                                                        ----------------
  Total Apportioned....................................       35,823,941
------------------------------------------------------------------------

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 9 is based on a statutory formula which 
includes three tiers. Tiers 1 and 2 are based on data reported to NTD 
by Indian tribes; Tier 3 is based on 2009-2013 American Community 
Survey data. The three tiers for the formula are: Tier 1--50 percent 
based on vehicle revenue miles reported to the NTD; Tier 2--25 percent 
provided in equal shares to Indian tribes reporting at least 200,000 
vehicle revenue miles to the NTD; Tier 3--25 percent based on Indian 
tribes providing public transportation on tribal lands (American Indian 
Areas, Alaska Native Areas, and Hawaiian Home Lands) on which more than 
1,000 low income individuals reside. If more than one tribe provides 
public transportation services on tribal lands in a single Tribal 
Statistical area, and the tribes cannot determine how to allocate Tier 
3 funds, FTA will allocate the funds based on the relative portion of 
transit (as defined by unlinked passenger trips) operated by each 
tribe, as reported to the National Transit Database.

[[Page 25379]]

4. Requirements
    Formula funds apportioned under this program can be used for 
purposes consistent with Section 5311 to support public transportation 
on Indian Reservations in rural areas. Funds allocated under the 
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 direct recipients and 
beneficiaries of Section 5311 funds. This reporting requirement has and 
continues to apply to the Tribal Transit Program. Tribes that provide 
public transportation in rural areas are reminded to report annually so 
they are included in the TTP formula apportionments. Tribes needing 
assistance with reporting to the NTD should contact the NTD Helpdesk: 
[email protected] or the Appian NTD Reporting Application Support line: 
(877) 561-7466.
5. Period of Availability
    Funding for the TTP is available for three years, which includes 
the year of apportionment or allocation plus two additional years, 
consistent with that established for the section 5311 program. Any FY 
2022 formula funds that remain unobligated at the close of business on 
September 30, 2024, will revert to FTA for reapportionment under the 
TTP.
6. What's New and Other Program Highlights
    The IIJA establishes fixed funding percentages for the Public 
Transportation on Indian Reservations program. Five percent of Rural 
Formula (Section 5311) funding is available for the Public 
Transportation on Indian Reservations program. Twenty percent of the 
Public Transportation on Indian Reservations funds must be distributed 
on a competitive basis, while the remainder must be apportioned by 
formula.
    The funds set aside for the TTP are not meant to replace or reduce 
funds that Indian tribes receive from States through the Section 5311 
program but are to be used to enhance public transportation on Indian 
reservations and transit serving tribal communities. Funds allocated to 
Indian tribes by the States may be included in the State's Section 5311 
application or awarded by FTA in a grant directly to the Indian tribe. 
FTA encourages Indian tribes intending to apply to FTA as direct 
recipients to contact the appropriate FTA Regional Office at the 
earliest opportunity.
    TTP recipients must comply with all applicable Federal statutes, 
regulations, executive orders, FTA circulars, and other Federal 
requirements in carrying out the project supported by the FTA grant. To 
assist tribes with understanding these requirements, FTA regularly 
conducts Tribal Transit Technical Assistance Workshops, and expects to 
offer several workshops in FY 2022. FTA has also 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. These workshops and assessments received exemplary 
feedback from Tribal Transit Leaders and provided FTA with invaluable 
opportunities to learn more about tribal transit leaders' perspectives 
and honor the sovereignty of tribal nations. FTA will post information 
about upcoming workshops to its website and will disseminate 
information about the reviews through its Regional Offices. FTA has 
regional tribal transit liaisons in each of the FTA Regional Offices 
that are available to assist tribes with applying for and managing FTA 
grants. A list of regional tribal transit liaisons can be found on 
FTA's website at https://www.transit.dot.gov/funding/tribal-entities. 
Tribes are encouraged to work directly with their regional tribal 
transit liaison.
    The Tribal Transportation Self Governance Program (TTSGP) was 
authorized by the FAST Act and is codified at 23 U.S.C. 207. The TTSGP 
final rule became effective on October 1, 2020 (85 FR 33494). Grant 
funding made available through the FTA formula or competitive TTP may 
be included in a Tribal Transportation Self-Governance funding 
agreement if there is an existing Self-Governance compact in place 
between the Tribe and the Department of Transportation. If funds are 
transferred to a Tribal Self-Governance funding agreement, the funds 
will be subject to the requirements and provisions of the Tribal 
Transportation Self-Governance Program regulation at 49 CFR part 29 and 
may be used only for the purpose for which they were awarded.
    For more information about the Tribal Transit Program, please 
contact Matthew Lange at [email protected] or 312-353-4118.

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

    FTA's innovative research program includes 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 (Lo-No CAP) (49 U.S.C. 5312(h)); and (c) a 
Transit Cooperative Research Program (TCRP) (49 U.S.C. 5312(i)).
    For more information about the Public Transportation Innovation 
program, contact Mary Leary, Office of Research, Demonstration and 
Innovation at (202) 366-4052 or [email protected].
1. Authorized Funding
    The IIJA authorizes $192.8 million over five years as follows:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                       Fiscal year                                2022               2023               2024               2025               2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
Research, Development,...................................        $25,261,523        $25,789,262        $26,462,651        $27,009,306        $27,695,935
Low-No Component Testing.................................          5,000,000          5,104,455          5,237,739          5,345,938          5,481,842
Transit Cooperative Research Program.....................          6,578,592          6,716,026          6,891,389          7,033,749          7,212,560
                                                          ----------------------------------------------------------------------------------------------
    Total................................................         36,840,115         37,609,743         38,591,779         39,388,993         40,390,337
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 25380]]

2. FY 2022 Funding Availability
    In FY 2022, $36,840,115 is authorized for the Public Transportation 
Innovation program. With the addition of $12 million in Transit 
Infrastructure Grants, a total of $48,840,115 is available in FY 2022.

                Public Transportation Innovation--FY 2022
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Research, Development, Demonstration, Deployment, &          $37,261,523
 Evaluation............................................
Low or No Emission Vehicle Component Testing...........        5,000,000
Transit Cooperative Research Program (TCRP)............        6,578,592
                                                        ----------------
  Total Apportioned....................................       48,840,115
------------------------------------------------------------------------

3. Basis for Allocation of Funds
    Section 5312 funds are allocated according to the authorized 
purposes and amounts described above, and then remaining amounts are 
subject to discretionary allocations where not specifically authorized. 
For FY 2022, FTA intends to fund projects and activities in support of 
the FTA FY 2022 action plan in five major areas: Safety, climate and 
resiliency, equity, economic strength, and transformation. The 
Consolidated Appropriations Act, 2022, (Pub. L. 117-103) included $12 
million in Transit Infrastructure Grants, including: $1 million for 
demonstration and deployment for innovation mobility solutions; $1 
million for the accelerating innovative mobility initiative; and $10 
million for technical assistance, research, demonstration, or 
deployment activities or projects to accelerate the adoption of zero 
emissions buses. Projects may be selected through competitive Notices 
of Funding Opportunity (NOFO), noncompetitive awards, and partnerships 
with other Federal entities through interagency agreements. Potential 
recipients can register to receive information on NOFOs that are 
released under this program on Grants.gov.
4. Eligible Expenses
    Eligible expenses include activities involving: Research; 
innovation and development; demonstration, deployment, and evaluation; 
accelerated implementation and deployment of advanced digital 
construction management systems; evaluation; low or no emission vehicle 
component testing and research; and the Transit Cooperative Research 
Program.
5. Requirements
    The Government share of the cost of a project carried out under 
this section shall not exceed 80 percent, except if there is 
substantial public interest or benefit, FTA may approve a greater 
Federal share. The non-Government share of the cost of a project 
carried out under this section may be derived from in-kind 
contributions. If FTA determines that there would be a clear and direct 
financial benefit to an entity under a grant, contract, cooperative 
agreement, or other agreement under this section, FTA shall establish a 
Government share of the costs of the project to be carried out under 
the grant, contract, cooperative agreement, or other agreement that is 
consistent with the benefit. However, for the Lo-No Component Testing 
Program, the Government share is 50 percent; the remaining 50 percent 
of the costs will be paid by amounts recovered through the fees 
established by the testing facilities. There is no match requirement 
for the TCRP.
    Application instructions and program management guidelines are set 
forth in FTA Circular C 6100.1E, Technology Development and Deployment, 
``Research, Technical Assistance and Training Program: Application 
Instructions and Program Management Guidelines'' dated April 10, 2015. 
All research recipients are required to work with FTA to develop 
approved Statements of Work. FTA will be updating the Circular for the 
Research program.
6. Period of Availability
    FTA establishes the period in which the funds must be obligated to 
the project. If the funds are not obligated within that period of time, 
they revert to FTA for reallocation under the program.
7. What's New and Other Program Highlights
    The IIJA amends 49 U.S.C. 5312 to create an accelerated 
implementation and deployment of advanced digital construction 
management systems research program to promote, implement, deploy, 
demonstrate, showcase, support, and document the application of 
advanced digital construction management systems, practices, 
performance, and benefits.
    Also amended is the Low or No Emission Vehicle Component Assessment 
Program (Lo-No CAP). This program is expanded to allow the 
competitively selected center(s) to conduct directed technology 
research and to conduct testing, evaluation, and analysis of low or no 
emission vehicle components, and new and emerging technology 
components, intended for use in low or no emission vehicles. LONO-CAP 
funds may be used to purchase capital equipment and capital projects 
related to testing low or no emission vehicle components; or research 
related to advanced vehicle technologies that provide advancements to 
the entire public transportation industry.
    Pursuant to the Small Business Innovation Development Act, a 
portion of the Section 5312 funds must be set aside for the 
Department's Small Business Innovation Research 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.

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 about the Technical Assistance and Workforce 
Development program, contact Betty Jackson, Office of Research, 
Demonstration and Innovation at (202) 366-4052 or 
[email protected].
1. Authorized Amounts
    The IIJA authorizes $61.98 million over five years for technical 
assistance. Of this amount, $34.4 million is authorized for the 
National Transit Institute under section 5314(c);

[[Page 25381]]



--------------------------------------------------------------------------------------------------------------------------------------------------------
                       Fiscal year                                2022               2023               2024               2025               2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
Technical Assistance, Standards Development & Human               $5,262,873         $5,372,820         $5,513,111         $5,626,999         $5,770,048
 Resource Training.......................................
National Transit Institute...............................          6,578,592          6,716,026          6,891,389          7,033,749          7,212,560
                                                          ----------------------------------------------------------------------------------------------
    Total................................................         11,841,465         12,088,846         12,404,500         12,660,748         12,982,608
--------------------------------------------------------------------------------------------------------------------------------------------------------

2. FY 2022 Funding Availability
    In FY 2022, a total of $11,841,465, is authorized for the Technical 
Assistance and Workforce Development program for the period October 1, 
2021, through September 30, 2022. With the addition of $7.5 million 
from the General Fund, a total of $19,341,465 was appropriated for FY 
2022 as shown in the table below.

         Technical Assistance and Workforce Development--FY 2022
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Technical Assistance, Standards Development & Human          $12,762,873
 Resource Training.....................................
National Transit Institute.............................        6,578,592
                                                        ----------------
  Total Appropriated...................................       19,341,465
------------------------------------------------------------------------

3. Basis for Allocation of Funds
    Under the authorized level of section 5314, $6.6 million is 
available for the National Transit Institute (NTI) in FY 2022. The 
remaining $12.76 million of appropriated funds will be allocated in 
support of both FTA and USDOT strategic goals for technical assistance, 
standards development, and workforce development. Projects may be 
selected through Notices of Funding Opportunity (NOFO) or sole source 
cooperative agreements. Potential recipients can register to receive 
notification of NOFOs under this program on Grants.gov.
    Once selected, FTA enters into cooperative agreements, contracts, 
or other agreements to award funds and manage the projects carried out 
under this section.
4. Eligible Expenses
    Eligible expenses include activities involving (a) technical 
assistance; (b) standards development; and (c) human resources and 
training, which includes workforce development programs and activities.
    Eligible technical assistance activities may include activities to 
support: (a) Compliance with the Americans with Disabilities Act (ADA); 
(b) compliance with coordinating planning and human services 
transportation; (c) meeting the transportation needs of elderly 
individuals; (d) increasing transit ridership in coordination with MPOs 
and other entities, particularly around transit-oriented development; 
(e) addressing transportation equity with regard to the effect that 
transportation planning, investment, and operations have for low-income 
and minority individuals; (f) facilitating best practices to promote 
bus driver safety; (g) compliance with Buy America and pre- and post-
award audits; (h) assisting with the development and deployment of low 
and no emission vehicles or components for vehicles; (i) and other 
technical assistance activities that are necessary to advance the 
interests of public transportation.
    Eligible standards activities include the development of voluntary 
and consensus-based standards and best practices by the industry to 
include those needed for safety, fare collection, intelligent 
transportation systems, accessibility, procurement, security, asset 
management, operations, maintenance, vehicle propulsion, 
communications, and vehicle electronics.
    Eligible human resources and training activities include (a) 
employment training programs; (b) outreach programs to increase 
employment for veterans, females, individuals with disabilities, and 
minorities in public transportation activities; (c) research on public 
transportation personnel and training needs; (d) training and 
assistance for veteran and minority business opportunities; and (e) 
consensus-based national training standards and certifications in 
partnership with industry stakeholders. FTA funding directly allocated 
for these eligible purposes must be done through a competitive 
frontline workforce development program as required in the 
authorization. Should FTA allocate funds for these purposes, it will 
advertise the available funding in a Notice of Funding Opportunity 
(NOFO) on Grants.gov and on its website. FTA will be issuing additional 
guidance in the coming months on how recipients can utilize their 
formula funds in support of these eligible activities.
5. Requirements
a. Federal Share
    The Government's share of the cost of a project carried out using a 
grant under this section shall not exceed 80 percent. However, for the 
human resources and training, including the Innovative Public 
Transportation Frontline Workforce Development Program, the 
Government's share cannot exceed 50 percent. The Federal share for 
other types of awards will be stated in the agreement. In some cases, 
FTA may require a higher non-Federal share if FTA determines a 
recipient would obtain a clear and direct financial benefit from the 
project, or if the non-Federal share is an evaluation factor under a 
competitive selection process. There is no match requirement for the 
National Transit Institute.
b. Non-Government Share
    The non-Government share of the cost of a project carried out under 
these sections (Technical Assistance and Standards and Technical 
Assistance and Training) may be derived from in-kind contributions as 
defined in the most current version of FTA Circular 5010, Grants 
Management Guidelines found on FTA's Circular web page at (https://www.transit.dot.gov/regulations-and-guidance/fta-circulars/final-circulars). Application instructions and program management guidelines 
are set forth in FTA Circular 6100.1E, Research, Technical Assistance 
and Training Program: Application Instructions and Program Management 
Guidelines dated April 10, 2015. All research recipients are required 
to work with FTA to develop approved Statements of Work.
6. Period of Availability
    FTA establishes the period in which the funds must be obligated to 
the project. If the funds are not obligated within that period of time, 
they revert to FTA for reallocation under the program.
7. What's New and Other Program Highlights
    Under 49 U.S.C. 5314(b)(4), recipients may use no more than one-
half of one percent (0.5 percent) of their section 5307, 5337 and 5339 
funds to support workforce development activities. In addition, 49 
U.S.C. 5314(c)(4) allows recipients to use no more than one-half of one 
percent (0.5 percent) of their 5307, 5337, and 5339 funds to attend NTI 
training. Both provisions allow recipients to use these funds to pay up 
to 80 percent of the cost of training.

[[Page 25382]]

    For more information about the NTI, contact Lisa Colbert, at the 
FTA Office of Research, Demonstration, and Innovation (TRI): 
[email protected] or call 202-366-9261.

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 
Consolidated Appropriations Act, 2022, for this program.
    In the event of a publicly declared emergency or disaster, eligible 
expenses will include emergency operating expenses, such as 
evacuations, rescue operations, and expenses incurred to protect assets 
in advance of a disaster, as well as capital projects to protect, 
repair, reconstruct, or replace equipment and facilities of a public 
transportation system in the United States or on an Indian reservation 
that the Secretary determines is in danger of suffering serious damage 
or has suffered serious damage as a result of an emergency. Additional 
information on eligible expenses and the process for applying for ER 
Program funding can be found in FTA's Emergency Relief Manual: A 
Reference Manual for States & Transit Agencies on Response and Recovery 
from Declared Disasters and FTA's Emergency Relief Program (49 U.S.C. 
5324), which was published on October 5, 2015.
    While Congress did not provide funding for this program in FY 2022, 
recipients of FTA funding affected by a declared emergency or disaster 
are authorized to use funds apportioned under sections 5307 and 5311 
for emergency purposes. Recipients are advised that formula funds used 
for emergency purposes will not be replaced or restored in the event 
Congress subsequently makes funding 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 their FTA Regional Office 
as soon as practicable to determine whether Emergency Relief funds are 
available, and to notify FTA that it plans to seek reimbursement for 
emergency operations 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 
recipient has not received reimbursement from FEMA may later be 
reimbursed by grants made either from section 5324 funding (if 
appropriated) or sections 5307 and 5311 program funding, once the 
eligible recipient formally applies to FTA for reimbursement and FTA 
determines that the expenses are eligible for emergency relief.
    In addition, before receiving a grant under this section following 
an emergency, the recipient shall: (1) Submit documentation 
demonstrating proof of insurance required under Federal law for all 
structures related to the grant application; and (2) certify that the 
recipient has insurance required under State law for all structures 
related to the grant application.
    Additional information about the Emergency Relief program is 
available on the FTA website at https://www.transit.dot.gov/funding/grant-programs/emergency-relief-program.
    For more information, contact Tom Wilson, Office of Program 
Management, at 202-366-5279 or [email protected].

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

    Section 5329(e)(6) provides funding to support States with rail 
fixed guideway public transportation systems (rail transit systems) to 
develop and carry out State Safety Oversight (SSO) Programs consistent 
with the requirements of 49 U.S.C. 5329. For more information, contact 
Maria Wright, Office of Safety Review at (202) 366-5922 or 
[email protected].
1. Authorized Amounts
    A total of $251.6 million is authorized over five years for the 
State Safety Oversight Program.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                     Fiscal year                             2022                2023                2024                2025                2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
Funds Authorized....................................        $48,062,162         $49,066,231         $50,347,409         $51,387,466         $52,693,836
--------------------------------------------------------------------------------------------------------------------------------------------------------

2. FY 2022 Funding Availability
    In FY 2022, $48,062,162 is authorized and appropriated for the 
State Safety Oversight (SSO) program. With the addition of 
reapportioned funds, a total apportionment of $49,011,483 is provided 
for FY 2022. The total amount allocated for the SSO program is as shown 
in the table below.

              Public Transportation Safety Program--FY 2022
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation....................................      $48,062,162
Reapportioned Funds....................................          949,321
                                                        ----------------
  Total Apportioned....................................       49,011,483
------------------------------------------------------------------------

3. Basis for Formula Apportionment
    FTA will continue to allocate funds to the States by an 
administrative formula, which is detailed in the Federal Register 
notice which apportioned SSO Formula Grant Program FY13 and FY14 funds 
(79 FR 13380). Grant funds for the SSO program are apportioned to 
eligible States using a three-tier formula based on statutory 
requirements, which apportion 60 percent of available funds based on 
rail transit system vehicle passenger miles (PMT), vehicle revenue 
miles (VRM), and directional route miles (DRM), 20 percent of available 
funds equally to each eligible State, and 20 percent based on the 
number of rail transit systems.
4. Requirements
    FTA requires each applicant to demonstrate in its grant application 
that its proposed grant activities will develop, lead to, or carry out 
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 FY13 and FY14 funds (79 FR 13380) 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 2022 funds that remain 
unobligated as of September 30, 2024, will revert to FTA for 
reapportionment under the SSO Formula Grant Program.
6. What's New and Other Program Highlights
    Under the IIJA, the percent takedown for the SSO Formula Grant 
Program increased from 0.5% to 0.75% of the section 5307 Urbanized Area 
Formula Program. The IIJA enhances State safety oversight programs by 
strengthening rail inspection practices by providing state safety 
oversight agencies authority to

[[Page 25383]]

collect and analyze data and conduct risk-based inspections of rail 
fixed guideway transportation systems. FTA continues to be authorized 
to issue restrictions and prohibitions to address unsafe conditions or 
practices, and to withhold funds for non-compliance with safety 
requirements.

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

    The State of Good Repair (SGR) program provides capital assistance 
for maintenance, replacement, and rehabilitation projects of existing 
high intensity fixed guideway and high intensity motorbus systems to 
maintain a state of good repair. Additionally, SGR grants are eligible 
for developing and implementing Transit Asset Management plans. This 
program provides funding for the following fixed guideway transit 
modes: Rapid rail (heavy rail), commuter rail, light rail, hybrid rail, 
monorail, automated guideway, trolleybus (using overhead catenary), 
aerial tramway, cable car, inclined plane (funicular), passenger ferry, 
and bus rapid transit. Fixed-route bus capital projects for services 
operating on high-occupancy-vehicle (HOV) facilities are also funded 
through High Intensity Motorbus tier of this program. Of the amount 
authorized for Section 5337 each year, $300 million is set aside for 
the competitive Rail Vehicle Replacement Program.
    FTA published the State of Good Repair program guidance, FTA 
Circular 5300.1, State of Good Repair Grants Program: Guidance and 
Application Instructions, on January 28, 2015. The circular can be 
accessed at https://www.transit.dot.gov/regulations-and-guidance/fta-circulars/final-circulars.
    For more information about the SGR program, contact Kevin Osborn, 
Office of Transit Programs, at (202) 366-7519 or [email protected].
1. Authorized Amounts
    The IIJA authorizes $18.35 billion over five years for the State of 
Good Repair program, including $1.5 billion for the newly created Rail 
Vehicle Replacement Program, and provides an additional $4.75 billion 
in advance appropriations.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                       Fiscal year                                2022               2023               2024               2025               2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
SGR Formula Funds Total..................................     $4,165,528,226     $4,237,778,037     $4,330,934,484     $4,405,675,417     $4,500,496,668
Rail Vehicle Replacement Program.........................        300,000,000        300,000,000        300,000,000        300,000,000        300,000,000
                                                          ----------------------------------------------------------------------------------------------
    Total................................................      4,465,528,226      4,537,778,037      4,630,934,484      4,705,675,417      4,800,496,668
--------------------------------------------------------------------------------------------------------------------------------------------------------

2. FY 2022 Funding Availability
    In FY 2022, $4,165,528,226 is authorized and appropriated for the 
State of Good Repair Formula program. As shown in the table below, 
these amounts are apportioned to support the State of Good Repair 
Formula program, for the High Intensity Fixed Guideway Formula program 
as well as the High Intensity Motorbus Formula program.

              State of Good Repair Formula Program--FY 2022
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation....................................   $4,165,528,226
Oversight Deductions...................................     (54,060,282)
Transfer to OIG........................................         (95,000)
Reapportioned Funds....................................          131,921
                                                        ----------------
  Total Available to Apportion.........................    4,111,504,865
------------------------------------------------------------------------
Total Apportioned to High Intensity Fixed Guideway         3,994,326,976
 Formula...............................................
Total Apportioned to High Intensity Motorbus Formula...      117,177,889
------------------------------------------------------------------------

    Table 15 shows the FY 2022 State of Good Repair Program formula 
apportionments to eligible urbanized areas.
3. Basis for Formula Apportionment
    FTA allocates State of Good Repair program funds according to a 
statutory formula. Funds are apportioned to urbanized areas with high 
intensity fixed guideway and high intensity motorbus systems that have 
been in operation for at least seven years. This means that only 
segments of high intensity fixed guideway and motorbus systems that 
entered into revenue service on or before September 30, 2014, are 
included in the formula, as identified in the NTD.
    The law requires that 97.15 percent of the total amount authorized 
for the State of Good Repair program be apportioned to urbanized areas 
with ``High Intensity Fixed Guideway'' systems. The apportionments to 
urbanized areas with ``High Intensity Fixed Guideway'' systems are 
determined by two equal elements: (1) The proportion of the amount an 
urbanized area would have received in FY 2011 to the total amount 
apportioned to all urbanized areas in FY 2011 using new fixed guideway 
definition; (2) the proportion of vehicle revenue miles of an urbanized 
area to the total vehicle revenue miles of all urbanized areas and the 
proportion of directional route miles of an urbanized area to the total 
directional route miles of all urbanized areas. High Intensity Motorbus 
systems will receive the remaining 2.85 percent of the total amount 
authorized for the State of Good Repair program, and the apportionments 
to urbanized areas are based on vehicle revenue miles and directional 
route miles.
    Vehicle revenue miles and directional route miles attributable to 
an urbanized area must be placed in revenue service at least 7 years 
before the first day of the fiscal year. A threshold level of more than 
one mile of high intensity fixed guideway is required in order to 
receive State of Good Repair funds. Therefore, urbanized areas 
reporting one mile or less of fixed guideway mileage under the NTD are 
not included. FTA will apportion funds to designated recipients in the 
UZAs (see section IV. C. of this notice for more information about 
designated recipients; FTA will apportion Section 5337 funds to the 
Section 5307 designated recipient for the UZA) with high intensity 
fixed guideway and/or high intensity motorbus systems operating at 
least 7 years. The designated recipients will then allocate funds as 
appropriate to recipients that are public entities in the urbanized 
areas and provide split letters to FTA. FTA can make grants to direct 
recipients after sub-allocation of funds.
4. Eligible Expenses
    Eligible activities include projects that maintain, rehabilitate, 
and replace transit assets, as well as projects that implement Transit 
Asset Management plans. Additionally, training and workforce activities 
authorized under 49 U.S.C. 5314(b) and (c) are eligible for the State 
of Good Repair funds; funds for such activities are limited to 1 
percent of the total amount apportioned to the recipient (0.5 percent 
for each of the authorized activities).
5. Requirements
    In addition to the program guidance found in the circular, all 
recipients will need to certify that they will comply with the rule 
issued under Section 5326 for the Transit Asset Management plan, 49 CFR 
part 625, and SGR projects will need to be included in recipients' 
Transit Asset Management plans.

[[Page 25384]]

6. Period of Availability
    The State of Good Repair Program funds apportioned in this notice 
are available for obligation during FY 2022 plus three additional 
years. Accordingly, funds apportioned in FY 2022 must be obligated in 
grants by September 30, 2025. Any FY 2022 apportioned funds that remain 
unobligated at the close of business on September 30, 2025, will revert 
to FTA for reapportionment under the State of Good Repair Program.
7. What's New and Other Program Highlights
    The IIJA created as a takedown from Section 5337 authorized amounts 
for the Rail Vehicle Replacement Program. This is a $300,000,000 annual 
takedown. FTA will issue a NOFO with additional details including 
eligibility and program requirements.

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

    The Section 5339 program provides funding to replace, rehabilitate, 
and purchase buses and related equipment as well as construct bus-
related facilities.
    Additional guidance on the Section 5339(a) formula program can be 
found in FTA Circular 5100.1, which was published on May 18, 2015. This 
Circular will be updated to reflect the amendments to section 5339 by 
the IIJA. Information on the Section 5339(b) Buses and Bus Facilities 
Competitive Grant Program and the Section 5339(c) Low or No Emission 
Bus Competitive Grant Program was published in a Notice of Funding 
Opportunity on March 7, 2022 (87 FR 12528).
    For more information about the Buses and Bus Facilities program, 
contact Amy Volz, Office of Transit Programs at (202) 366-7484 or 
[email protected].
1. Authorized Amounts
    The IIJA authorizes a total of $9.75 billion to be appropriated 
over five years for the Section 5339 Program. Of that amount, three-
quarters of one percent is set aside for oversight. The IIJA provides 
an additional $1,050,000,000 in advance appropriations for the Section 
5339(c) Low or No Emission Program, with two percent set aside for 
oversight and administrative expenses.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                       Fiscal year                                2022               2023               2024               2025               2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
5339(a) Formula Program..................................       $599,462,712       $611,986,119       $627,965,806       $640,938,080       $657,231,976
5339(b) Bus Competitive..................................        372,341,813        380,120,424        390,045,823        398,103,239        408,223,797
5339(c) Low or No Emission Discretionary.................      1,100,561,189      1,102,056,178      1,103,963,762      1,105,512,334      1,107,457,427
Oversight, Administrative and OIG transfer...............         28,884,376         29,049,089         29,259,260         29,429,876         29,644,180
                                                          ----------------------------------------------------------------------------------------------
    Section 5339 Total...................................      2,101,250,090      2,123,211,810      2,151,234,651      2,173,983,529      2,202,557,380
--------------------------------------------------------------------------------------------------------------------------------------------------------

2. Funding Availability
    In FY 2022, $2,101,250,090 is authorized for section 5339 Buses and 
Bus Facilities or provided through advance appropriations. The 
Consolidated Appropriations Act, 2022, provided an additional $250 
million for Transit Infrastructure Grants, including $175 million for 
the Buses and Bus Facilities Competitive Program and $75 million for 
the Low or No Emission Grant Program, for a total appropriation of 
$2,351,250,090 in FY 2022. For the Formula Program, a total 
apportionment of $601,222,535 is provided after a takedown for 
oversight and the addition of reapportioned funds.

          Grants for Buses and Bus Facilities Formula--FY 2022
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation....................................     $603,992,657
Oversight..............................................      (4,529,945)
Reapportioned Funds....................................        1,759,823
                                                        ----------------
  Total Apportioned....................................      601,222,535
------------------------------------------------------------------------

3. Basis for Allocation
    Section 5339(a) Buses and Bus Facilities formula program funds are 
apportioned to States, territories, and designated recipients based on 
a statutory formula. Under the national distribution, each State is 
allocated $4 million, and each territory is allocated $1 million, for 
use anywhere in the State or territory. The remainder of the available 
funding is then apportioned for UZAs based on population, vehicle 
revenue miles and passenger miles using the same apportionment formula 
and allocation process as section 5307. Funds for UZAs under 200,000 in 
population are apportioned to the State through a section 5339(a) 
Governor's apportionment for allocation to eligible recipients within 
such areas of the State at the Governor's discretion. Funds for UZAs 
with populations of 200,000 or more are apportioned directly to one or 
more designated recipients within each UZA for allocation to eligible 
projects and recipients within the UZA.
4. Eligible Expenses
    Eligible capital projects under the Buses and Bus Facilities 
formula program (Section 5339(a)) continue to include projects to 
replace, rehabilitate, and purchase buses and related equipment, and 
projects to construct bus-related facilities. Recipients may use up to 
one-half of one percent of their Section 5339 funds to support 
workforce development activities at an 80 percent Federal share; the 
eligible workforce development activities are defined in Section 5314; 
see Section IV. K. of this notice for more information. This provision 
is in addition to the one-half of one percent that the recipients may 
use for training activities with the National Transit Institute.
5. Requirements
    Eligible recipients of the Buses and Bus Facilities formula program 
(Section 5339(a)) include designated recipients that operate fixed 
route bus service or that allocate funding to fixed route bus 
operators; and state or local governmental entities that operate fixed 
route bus service that are eligible to receive direct grants under the 
Urbanized Area Formula (Section 5307) and Rural Formula (Section 5311) 
programs. Eligible subrecipients continue to include public agencies or 
private nonprofit organizations engaged in public transportation, 
including those providing services open to a segment of the general 
public, as defined by age, disability, or low income.
    The requirements of Section 5307 apply to recipients of Section 
5339 funds within an urbanized area. The requirements of Section 5311 
apply to recipients of Section 5339 funds within rural areas. For 
additional program requirements, refer to FTA Circular 5100.1.
6. Period of Availability
    The Buses and Bus Facilities Formula Program funds apportioned in 
this notice are available for obligation during FY 2022 plus three 
additional years.

[[Page 25385]]

Accordingly, funds apportioned in FY 2022 must be obligated in grants 
by September 30, 2025. Any FY 2022 apportioned funds that remain 
unobligated at the close of business on September 30, 2025, will revert 
to FTA for reapportionment under the Buses and Bus Facilities Formula 
Program.
    Discretionary program funds authorized under Section 5339(b) and 
(c) (Bus and Low No, respectively) follow the same period of 
availability: Year of allocation plus three additional years.
7. What's New and Other Program Highlights
    The Buses and Bus Facilities formula amounts for the national 
distribution is increased to $4 million for each State and $1 million 
for each territory. Additionally, both the Buses and Bus Facilities 
formula and competitive programs now require that applicants should, to 
the extent possible, utilize Innovative Procurement tools authorized 
under Section 3019 of the FAST Act, and if less than 5 buses are 
purchased through a standalone procurement, they must provide a written 
explanation to FTA explaining why they did not utilize the procurement 
tools authorized.

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

    The IIJA continues the use of formula factors to distribute 
additional funds to the Section 5307 and Section 5311 programs for 
Growing States and High-Density States. FTA will continue to publish 
single urbanized and rural apportionments that show the total amount 
for Section 5307 and 5311 programs that includes Section 5340 
apportionments for these programs.
a. Authorized Amounts
    The IIJA authorizes $3.879 billion over five years for the Growing 
States and High-Density States Formula factors, as shown below:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                       Fiscal year                                2022               2023               2024               2025               2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
Growing States...........................................       $392,752,680       $400,957,696       $411,427,180       $419,926,283       $430,601,628
High Density States......................................        348,290,112        355,566,259        364,850,518        372,387,459        381,854,274
                                                          ----------------------------------------------------------------------------------------------
    Total Funds Authorized...............................        741,042,792        756,523,956        776,277,698        792,313,742        812,455,901
--------------------------------------------------------------------------------------------------------------------------------------------------------

b. FY 2022 Funding Availability
    In FY 2022, $741,042,792 is authorized and appropriated for 
apportionment in accordance with the formula factors prescribed for 
Growing States and High-Density States set forth in Section 5340 for FY 
2022.

     Growing States and High-Density States Formula Factors--FY 2022
------------------------------------------------------------------------
 
------------------------------------------------------------------------
High-Density 5307 Formula..............................     $348,290,112
Growing States (5307 & 5311)...........................      392,752,680
                                                        ----------------
  Total Apportioned....................................      741,042,792
------------------------------------------------------------------------

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

1. Authorized Amounts
    Under the IIJA, $150 million is authorized for each fiscal year 
from 2022 through 2030 for grants to the Washington Metropolitan Area 
Transit Authority (WMATA). After the one percent oversight takedown, 
$148.5 million is available for obligation. Such funding is authorized 
under section 601 of the Passenger Rail Investment and Improvement Act 
of 2008. See Public Law 110-432, Division B, Title VI, as amended by 
the IIJA.
    For more information about WMATA grants, contact Kevin Osborn, 
Office of Transit Programs, at (202) 366-7519 or [email protected].

     Washington Metropolitan Area Transit Authority Grants--FY 2022
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriation....................................     $150,000,000
Oversight Deduction....................................      (1,500,000)
                                                        ----------------
  Total Apportioned....................................      148,500,000
------------------------------------------------------------------------
Grants may be provided for capital and preventive maintenance
  expenditures for WMATA.

2. What's New and Other Program Highlights
    The IIJA requires that $5,000,000 of the funding made available 
each year be used for grants for the WMATA Office of the Inspector 
General to carry out operations in accordance with Section 9 of Article 
III of the WMATA Compact. Grants for capital and preventive maintenance 
projects may not be made until WMATA notifies the Secretary of 
Transportation that $5,000,000 in non-Federal funds has been made 
available for the exclusive use of the WMATA Office of the Inspector 
General. Furthermore, the IIJA requires that WMATA reform the WMATA 
Office of Inspector General and update its capital program planning and 
reporting procedures. FTA will provide additional

[[Page 25386]]

guidance on these requirements to WMATA.

R. FY 2022 Transit Infrastructure Grants--Community Project Funding

1. Appropriated Amounts
    The Consolidated Appropriations Act, 2022, appropriated 
$200,798,267 for Community Project Funding/Congressionally Directed 
Spending for 80 projects in 27 States, identified in the accompanying 
Joint Explanatory Statement. Table 20 identifies the recipient, 
project, amount and a project ID that will be used to identify the 
project in TrAMS. As the Consolidated Appropriations Act, 2022 
identifies that funds are for projects and activities eligible under 
Chapter 53, generally applicable Chapter 53 requirements apply to these 
funds, including the planning requirements of Sections 5303 and 5304; 
bus testing requirements of Section 5318; general provision 
requirements of Section 5323 (such as NEPA and Buy America compliance); 
contract requirements of Section 5325; project management requirements 
of Section 5327; nondiscrimination requirements of Section 5322; 
disposition requirements of Section 5334; and applicability of FTA 
oversight of Section 5338. Non-federal match is not required for these 
funds. Upon written request by the project sponsor in Table 20 and the 
requested direct recipient, FTA may approve another entity to act as 
the direct recipient of the funding and the project sponsor may serve 
as a subrecipient. Pre-award authority is provided consistent with the 
requirements for FTA's formula funds as of the date all necessary 
requirements were met (see Section V, below.) However, before incurring 
costs, recipients 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 before 
incurring pre-award costs.
    For more information about Community Project Funding grants, 
contact Kevin Osborn, Office of Transit Programs, at (202) 366-7519 or 
[email protected].

  Community Project Funding/Congressionally Directed Spending--FY 2022
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Appropriated....................................     $200,798,267
------------------------------------------------------------------------

V. FTA Policy and Procedures for FY 2022 Grants

A. Automatic Pre-Award Authority To Incur Project Costs

1. Caution to New Recipients
    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. Commonly, a new recipient may 
misunderstand pre-award authority conditions and be unaware of all 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 recipient 
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 recipients to incur certain project costs before grant 
approval and retain the eligibility of those costs for subsequent 
reimbursement after grant approval. The recipient assumes all risk and 
is responsible for ensuring that all conditions are met to retain 
eligibility. This pre-award spending authority permits an eligible 
recipient 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 IIJA (October 1, 2022, through September 30, 2026) for 
capital assistance under all formula programs, so long as the 
conditions described below are met. Pre-award authority is indicated in 
the application. The actual items of cost associated with the use of 
pre-award authority are documented in the initial Federal Financial 
Report (FFR) that is required to be completed prior to the recipient 
executing the award. FTA provides pre-award authority for planning and 
operating assistance under the formula programs without regard to the 
period of the authorization. For projects funded by competitive 
programs, pre-award authority may be granted at the time of project 
selection. 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. Recipients may be reimbursed for expenses incurred 
before grant award so long as funds have been expended in accordance 
with all Federal requirements, costs would have been allowable if 
incurred after the date of award, and the recipient is otherwise 
eligible to receive the funding. In addition to cross-cutting Federal 
grant requirements, program specific requirements must be met. 
Designated recipients of Section 5310 funds have pre-award authority 
for the ten percent of the apportionment 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 in 
section 3. Conditions below.
c. Public Transportation Innovation, Technical Assistance and Workforce 
Development
    Unless provided for in an announcement of project selections, pre-
award authority does not apply to Section 5312 Public Transportation 
Innovation projects or Section 5314 Technical Assistance and Workforce 
Development projects. Before an applicant may incur costs for 
activities under these programs, it must first obtain a written Letter 
of No Prejudice (LONP) from FTA.
    For more information, contact Lisa Colbert, at the FTA Office of 
Research, Demonstration, and Innovation (TRI): [email protected] or 
call 202-366-9261.
3. Conditions
    The conditions under which pre-award authority may be utilized are 
specified below:
    i. Pre-award authority is not a legal or implied commitment that 
the subject project will be approved for FTA assistance or that FTA 
will obligate Federal funds. Furthermore, it is not a

[[Page 25387]]

legal or implied commitment that all items undertaken by the applicant 
will be eligible for inclusion in the project.
    ii. All FTA statutory, procedural, and contractual requirements 
must be met.
    iii. No action will be taken by the recipient that prejudices the 
legal and administrative findings that the Federal Transit 
Administration must make in order to approve a project.
    iv. Local funds expended by the recipient 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 recipient before the date of the 
pre-award authority will not be eligible for credit toward local match 
or reimbursement. Furthermore, the expenditure of local funds or the 
undertaking of certain activities that would compromise FTA's ability 
to comply with Federal environmental laws (e.g., project implementation 
activities such as land acquisition, demolition, or construction before 
the date of pre-award authority) may render the project ineligible for 
FTA funding.
    v. The Federal amount of any future FTA assistance awarded to the 
recipient for the project will be determined on the basis of the 
overall scope of activities and the prevailing statutory provisions 
with respect to the Federal/local match ratio at the time the funds are 
obligated.
    vi. For funds to which the pre-award authority applies, the 
authority expires with the lapsing of the fiscal year funds.
    vii. When a grant for the project is subsequently awarded, the 
grant and the Federal Financial Report in TrAMS must indicate the use 
of pre-award authority and an initial Federal Financial Report must be 
submitted in TrAMS to associate those costs with the award.
    viii. Environmental Requirements--All Federal 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 formula funded projects 
from the date of the authorization of the formula funds or for 
discretionary funded projects other than those funded by the Capital 
Investment Grants (CIG) program from the date of the announcement of 
the competitive allocation of funds for the project.
    For projects that qualify for a categorical exclusion (CE) pursuant 
to 23 CFR 771.118(c), designated recipients may start activities and 
incur costs under pre-award authority 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 competitive allocations for 
the project.
    FTA recommends that a grant applicant considering a CE pursuant to 
23 CFR 771.118(c) contact the appropriate FTA Regional Office for 
assistance in determining the proper environmental review process, 
including other applicable environmental laws, and level of 
documentation necessary before incurring the above-mentioned costs. 
This applies especially when the grant applicant believes a c-list CE 
with construction activities, such as 23 CFR 771.118(c)(8), (9), (10), 
(12), or (13), or property acquisition applies to its project. If FTA 
subsequently finds that a project does not qualify for a CE under 23 
CFR 771.118(c) and the sponsor has already undertaken activities under 
pre-award authority, the project will be ineligible for FTA assistance.
    For all other non-CIG projects that do not qualify for a CE 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 23 CFR 771.118(d) CE determination, a finding of 
no significant impact (FONSI), a combined final environmental impact 
statement (FEIS)/record of decision (ROD), or a ROD.
    ix. Planning and other requirements.
    Formula funds must be authorized, or appropriated, and competitive 
project allocations published or announced, before pre-award authority 
can be considered.
    The requirements that a capital project be included in a locally 
adopted Metropolitan Transportation Plan, the metropolitan 
transportation improvement program, and the federally approved 
statewide transportation improvement program (23 CFR part 450) must be 
satisfied before the recipient 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 an MPO-approved UPWP that has been 
coordinated with the State.
    x. 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, the administrative flexibility requires a recipient 
to make certain that no Federal requirements are circumvented.
    xi. 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, recipients 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 Grants 
Program
    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 at that time to the project sponsor to 
incur costs for PD activities. PD activities include the work necessary 
to complete the environmental review process and as much engineering 
and design activities as the project sponsor believes are necessary to 
support the environmental review process. Upon completion of the 
environmental review process with a Record of Decision (ROD), Finding 
of No Significant Impact (FONSI), or Categorical Exclusion (CE) 
determination by FTA for a New Starts, Small Starts, or Core Capacity

[[Page 25388]]

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 appropriate 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 recipients that do not currently operate the 
type of vehicle proposed in the project about exercising this pre-award 
authority. FTA encourages these sponsors to wait until later in the 
process when project plans are more fully developed. FTA reminds 
project sponsors that the procurement of vehicles must comply with all 
Federal requirements including, but not limited to, competitive 
procurement practices, the Americans with Disabilities Act, and Buy 
America. FTA encourages project sponsors to discuss the procurement of 
vehicles with FTA in regard 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
    FTA extends pre-award authority for the acquisition of real 
property and real property rights for CIG 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 a combined FEIS/ROD, ROD, FONSI or makes a CE determination. 
With the limitations and caveats described below, real estate 
acquisition may commence, at the project sponsor's risk. To maintain 
eligibility for a possible future FTA grant award, 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 documented in the draft 
environmental impact statement (DEIS), 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 vacated 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 
unauthorized occupants. 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 771.118(d)(3). 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 
for displaced persons and businesses in accordance with the 
requirements of the URA.
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 does not generally award Federal 
funding for these activities conducted under pre-award authority until 
the project receives a CIG program construction grant. This is to 
ensure that Federal funds are not risked on a project whose advancement 
into construction is still not yet assured.
c. National Environmental Policy Act (NEPA) Activities
    NEPA requires that major projects proposed for FTA funding 
assistance be subjected to a public and interagency review of the need 
for the project, its environmental and community impacts, and 
alternatives to avoid and reduce adverse impacts. Projects of more 
limited scope also need a level of environmental review, to determine 
whether there are significant environmental impacts or confirmation 
that a CE applies. 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(f)). Accordingly, FTA extends pre-award authority for costs 
incurred to comply with NEPA regulations and to conduct NEPA-related 
activities, effective as of the earlier of the following two dates: (1) 
The date of the Federal approval of the relevant STIP or STIP amendment 
that includes the project or any phase of the project, or that includes 
a project grouping under 23 CFR 450.216(j) that includes the project; 
or (2) the date that FTA approves the project into the project 
development phase of the CIG program. The grant applicant must notify 
the appropriate FTA Regional Office upon initiation of the Federal 
environmental review process consistent with 23 CFR 771.111. NEPA-
related activities include, but are not

[[Page 25389]]

limited to, public involvement activities, historic preservation 
reviews, section 4(f) evaluations, wetlands evaluations, and endangered 
species consultations. 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 (e.g., Surface Transportation 
Program or Congestion Mitigation and Air Quality Improvement Program). 
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. FTA reimbursement for costs 
incurred is not guaranteed and recipients may not start activities and 
incur costs under pre-award authority for property acquisition, 
demolition, construction, and acquisition of vehicles, equipment, or 
construction materials until the environmental review process is 
complete.
    For more information about FTA's National Environmental Policy Act 
(NEPA) activities, contact Megan Blum, Office of Environmental 
Programs, at (202) 366-0463 or [email protected].
d. Other CIG 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.
    For more information about the Fixed Guideway Capital Investment 
Grants program, including LONP policy, real property acquisition, and 
reimbursement of costs incurred under Pre-Award Authority, contact 
Elizabeth Day, Office of Capital Project Development, at (202) 366-5159 
or [email protected].
e. Pre-Award Authority for the Expedited Project Delivery (EPD) Pilot 
Program
    The EPD Pilot Program, as authorized by Section 3005(b) of the 
Fixing America's Surface Transportation Act (FAST Act), is aimed at 
expediting delivery of new fixed guideway capital projects, small 
starts projects, or core capacity improvement projects. Section 3005(b) 
requires the FTA to notify Congress and the applicant, in writing, 
within 120 days after the receipt of a complete application, on the 
decision of project selection. FTA will extend pre-award authority for 
all eligible project costs at the time it is announced that a project 
has been selected. There is no pre-award authority provided until a 
project selection announcement is made, and costs incurred prior to 
project selection are not eligible. Letters of No Prejudice will not be 
provided for the EPD Pilot Program, as all eligible costs are covered 
by pre-award authority at the time of project selection.
    Although FTA provides pre-award authority for eligible project 
costs, FTA does not award Federal funding for activities conducted 
under pre-award authority until the project receives an EPD Pilot 
Program construction grant. This is to ensure that Federal funds are 
not risked on a project whose advancement into construction is not yet 
assured. To maintain eligibility for a possible future FTA grant award, 
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.
    For more information about the Expedited Project Delivery Pilot 
Program, contact Mark Ferroni, Office of Planning and Environment, at 
(202) 366-3233 or [email protected].

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 CIG program 
projects undertaking activities not covered under automatic pre-award 
authority. LONPs may be issued for formula 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, or otherwise extended. 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 for the CIG 
program. 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 combined FEIS/ROD, 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 CIG program 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 2022 Annual List of Certifications and Assurances

    Section 5323(n) requires FTA to publish annually a list of all 
certifications required under Chapter 53 concurrently with the 
publication of this annual apportionment notice. The FY 2022 version of 
FTA's Certifications and Assurances is available on FTA's website at FY 
2022 Annual List of Certifications & Assurances.
    FTA cannot make an award or an amendment to an award unless the 
recipient has executed the latest version of FTA's Certifications and 
Assurances. FTA encourages recipients of formula funding to execute the 
FY 2022 Certifications and Assurances

[[Page 25390]]

electronically in TrAMS within 90 days of this notice, to prevent 
delays.

D. Civil Rights Requirements

    Recipients must ensure their programs and services operate in a 
nondiscriminatory manner and fulfill reporting requirements to document 
their civil rights compliance as a condition to receiving Federal 
funds.
    Recipients must carry out provisions of the Americans with 
Disabilities Act (ADA) of 1990, Section 504 of the Rehabilitation Act 
of 1973, as amended, and the Department of Transportation's 
implementing regulations at 49 CFR parts 27, 37, 38, and 39. FTA's ADA 
Circular (C 4710.1) provides guidance for implementing the regulatory 
requirements of the ADA.
     In addition, recipients must regularly prepare and submit 
in TrAMS civil rights program plans and reports to establish and 
demonstrate compliance and document policies and practices in the 
following areas: Title VI of the Civil Rights Act of 1964: The 
Department of Transportation's Title VI implementing regulations are 
found in 49 CFR part 21. FTA's Title VI Circular (C 4702.1B) provides 
guidance for carrying out the regulatory requirements and outlines the 
Title VI program requirements and timeline for submitting updates.
     Disadvantaged Business Enterprise (DBE) program: The 
Department of Transportation's DBE implementing regulations are found 
in 49 CFR part 26 and set forth requirements for implementing the DBE 
program in good faith and developing and reporting on the triennial DBE 
goal.
     Title VII of the Civil Rights Act of 1964, Equal 
Employment Opportunity (EEO): The Department of Transportation's EEO 
implementing regulations are found in 49 CFR part 21. FTA's EEO 
Circular (C 4704.1A) provides guidance for carrying out the regulatory 
requirements and outlines the EEO program submission process.
    Recipients are expected to maintain current civil rights program 
plans and submit required reports in TrAMS. Recipients with past due or 
expired programs are ineligible for new funding awards and may be 
subject to other remedies or sanctions at FTA's discretion.
    While not new requirements, recipients are specifically reminded of 
the following:
     Recipients awarding $250,000 or more in FTA-funded 
contracts must comply with the Disadvantaged Business Enterprise (DBE) 
regulations, including by implementing a DBE program that affirmatively 
remedies the ongoing effects of discrimination in transportation 
contracting. The recipient must conduct outreach to and consultation 
with small businesses, women-owned businesses, and minority-owned 
businesses; apply DBE goals as needed when exercising pre-award 
authority; and verify the DBE certification of transit vehicle 
manufacturers before purchasing transit vehicles.
     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 equity analysis for all service changes that 
meet the recipient's definition of ``major service change'' prior to 
implementing the service change. Those recipients also must conduct a 
fare equity analysis for all fare increases or decreases prior to 
implementing a fare change. Furthermore, an environmental justice 
analysis is not a substitute for a Title VI service equity analysis 
triggered by a major service change or fare change. When a full equity 
analysis is not required due to the size of the recipient or duration 
of a change, FTA expects agencies to take steps to ensure changes are 
equitable and nondiscriminatory.
    Recipients are encouraged to reach out to FTA's Office of Civil 
Rights when contemplating new projects, new services, or new service 
models for technical assistance and guidance, to support recipients in 
achieving their equity and accessibility goals and complying with 
federal civil rights requirements.

E. Consolidated Planning Grants (CPG)

    FTA and FHWA planning funds under both the Metropolitan Planning 
and State Planning and Research Programs can be consolidated into a 
single consolidated planning grant, awarded by either FTA or FHWA. The 
CPG eliminates the need to monitor individual fund sources, if several 
have been used, and ensures that the oldest funds will always be used 
first.
    Under the CPG, States can report metropolitan planning program 
expenditures to comply with the Uniform Guidance 2 CFR part 200, 
subpart F, 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. FHWA Order 4551.1 dated August 12, 2013, on 
``Fund Transfers to Other Agencies and Among Title 23 Programs'' 
provides guidance and more detailed information.
    For further information on CPGs, contact Ann Souvandara, Office of 
Budget and Policy, FTA, at (202)366-0649 or [email protected]; or 
Victor Austin, Office of Planning and Environment at (202) 366-2996 or 
[email protected].

F. Grant Application Procedures

    All applications are filed electronically. FTA continues to award 
and manage grants and cooperative agreements using the Transit Award 
Management System (TrAMS). To access TrAMS, contact your FTA Regional 
Office. Resources on using TrAMS can be found on FTA's website at 
https://www.transit.dot.gov/TrAMS.
    FTA regional staff is responsible for working with potential 
recipients to review and process grant applications. In order for an 
application to be considered complete and for FTA to assign a Federal 
Award Identification Number (FAIN), enabling submission in TrAMS, and 
submission to the Department of Labor (when applicable), the following 
requirements must be met:
    i. Applicants must be registered and have an ``active status'' in 
the System for Award Management (SAM) and its registration is current. 
To register an entity or check the status and renew registration, visit 
the SAM website at https://www.sam.gov/SAM.
    ii. Applicant's contact information is correct and up to date.
    iii. Applicant has properly submitted its annual certifications and 
assurances.
    iv. Applicant's Civil Rights submissions are current and approved.
    v. Recipient has a Transit Asset Management plan in place that 
meets the requirements of 49 CFR part 625 or is covered by a compliant 
Group Plan.
    vi. Documentation is on file to support status as either a 
designated recipient (for the program and area) or a direct recipient.
    vii. 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.
    viii. The activity is listed in a currently approved Transportation 
Improvement Program (TIP); Statewide Transportation Improvement Program 
(STIP), or Unified Planning Work

[[Page 25391]]

Program (UPWP) unless such requirements have been waived for the 
specific funding and activity type to facilitate response and recovery 
from the COVID-19 public health emergency.
    ix. All eligibility issues are resolved.
    x. Required environmental findings are made.
    xi. The application contains a well-defined scope of work including 
at least one project with accompanying project narratives, budget that 
includes scope codes and activity line-item information, Federal and 
non-Federal funding amounts, and milestones.
    xii. 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.
    xiii. Milestone information is complete. FTA will also review 
status of other open grants' reports to confirm financial and milestone 
information is current on other open awards.
    xiv. Applicant has ensured that it has registered to report to the 
National Transit Database, and that any beneficiaries that provide 
public transportation service have also registered to report to the 
National Transit Database.
    xv. FTA must provide Congressional notification before awarding 
competitive grants.
    Other important issues that impact FTA grant processing activities 
are discussed below.
a. Award Budgets--Scope Codes and Activity Line Items (ALI) Codes; 
Financial Purpose Codes
    FTA uses the Scope and Activity Line Item (ALI) Codes in the award 
budgets to track program trends, to report to Congress, and to respond 
to requests from the Inspector General and the Government 
Accountability Office (GAO), as well as to manage grants. The accuracy 
of the data is dependent on the careful and correct use of codes.
b. 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 the Governor's 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 may then apply 
directly to FTA for the funding as direct recipients.
    For the programs in which FTA can make grants to eligible direct 
recipients, other than the designated recipients, 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 2022. 
Split letters or suballocation letters (Governor's Apportionment 
letters), must also be on file to support grant applications from 
direct recipients. Once suballocation letters for FY 2022 funding are 
finalized they should also be uploaded as part of the application into 
TrAMS.
    The Direct Recipient is required to upload to TrAMS a copy of the 
suballocation letter (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 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.''
1. 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 recipients 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.
2. Oversight
    FTA is responsible for conducting oversight activities to help 
ensure that grant 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 recipient compliance with applicable Federal 
requirements. Each Urbanized Area Formula Program recipient is reviewed 
every three years, (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 recipient oversight assessment. 
Important objectives of FTA's oversight program include but are not 
limited to: Determining recipient compliance with Federal requirements; 
identifying technical assistance needs and delivering technical 
assistance to meet those needs; spotting emerging issues with 
recipients in a forward-looking fashion; recognizing when there is a 
need for more in-depth reviews in the areas of procurement, financial 
management, and civil rights; and identifying recipients with recurring 
or systemic issues.
3. 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 IIJA. 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 
recipients on a case-by-case basis. This notice and the program 
guidance circulars previously identified in this document may be 
accessed via the FTA website at www.transit.dot.gov.

[[Page 25392]]

G. Grant Management

1. Grant Reporting
    Recipients of FTA funds are reminded that all FTA recipients are 
required to report on their grants and that it is critical to ensure 
reports demonstrate that reasonable progress is being made on the 
project. At a minimum, all awards require a Federal Financial Report 
(FFR) and a Milestone Progress Report (MPR) on an annual basis, with 
some reports required quarterly or monthly depending on the recipient 
and the type of projects funded under the grant. The requirements for 
these reports and other reporting requirements can be found in FTA 
Circular 5010.1E, Grant Management Requirements, dated July 16, 2018. 
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 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 2022, FTA will continue to focus on inactive grants and 
grants that do not comply with reporting requirements. If appropriate, 
FTA will take action to close out and deobligate funds from these 
grants if reasonable progress is not being made. The efficient use of 
funds will further FTA's fulfillment of its mission to provide 
efficient and effective public 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 prevent the DOT from 
receiving a ``clean audit'' opinion on its annual financial statement.
    At the end of Federal Fiscal Year 2022, FTA will identify the list 
of grants that were awarded on or prior to September 20, 2019, have had 
no funds disbursed or have not had a disbursement since September 30, 
2021. FTA Regional Offices will contact grant recipients with grants 
that meet these criteria to notify them that FTA intends to close the 
grant and deobligate any remaining funds unless the recipient can 
provide information that demonstrates that the projects funded by the 
grant remain active and the recipient has a realistic schedule to 
expedite completion of the projects funded in the grant.
3. Transportation Investments Generating Economic Recovery (TIGER), 
Better Utilizing Investments To Leverage Development (BUILD) and 
Rebuilding American Infrastructure With Sustainability and Equity 
(RAISE) Discretionary Grants
    Recipients of open TIGER, BUILD and RAISE grants should be aware 
that, as a matter of law, all remaining TIGER funds must be disbursed 
from grants by the end of the fifth fiscal year after the Expiration of 
Obligation Authority. (See 31 U.S.C. 1552.) For FTA TIGER VII projects, 
that requirement takes effect at the end of FY 2022. Accordingly, once 
ECHO closes for disbursements in late September 2022, all undisbursed 
funds within FTA TIGER VII-funded grants will no longer be available to 
the recipient. These undisbursed funds will be de-obligated from the 
grant. Even if a recipient has incurred costs or disbursed funds prior 
to the close of ECHO, if the recipient has not actually drawn down the 
funds by the time ECHO closes, FTA will be unable to reimburse the 
recipient. Therefore, recipients with open TIGER VII grants must ensure 
project activities are completed and all funds are drawn down before 
ECHO closes by late September 2022.
    The contents of this document do not have the force and effect of 
law and are not meant to bind the public in any way. This document is 
intended only to provide clarity to the public regarding existing 
requirements under the law or agency policies. Recipients should refer 
to applicable regulations and statutes referenced in this document.

Nuria I. Fernandez,
Administrator.
[FR Doc. 2022-09143 Filed 4-27-22; 8:45 am]
BILLING CODE 4910-57-P