[Federal Register Volume 90, Number 158 (Tuesday, August 19, 2025)]
[Notices]
[Pages 40465-40466]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-15794]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration

[FTA-2025-0068]


Notice of Availability of Proposed Policy Guidance for the 
Capital Investment Grants Program

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

ACTION: Notice of availability of proposed policy guidance for the 
Capital Investment Grants program.

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SUMMARY: The Federal Transit Administration (FTA) is making available 
the agency's proposed policy guidance for the Capital Investment Grants 
(CIG) program. These revisions are intended to address certain 
Executive Orders signed by the President in early 2025 and DOT Order 
2100.7, ``Ensuring Reliance Upon Sound Economic Analysis in Department 
of Transportation Policies, Programs, and Activities.'' The proposed 
guidance has been placed in the docket and posted on the FTA website.

DATES: Comments must be received on or before September 2, 2025. Late-
filed comments will be considered to the extent practicable.

ADDRESSES: You may submit comments to DOT docket number FTA-2025-0068 
by any of the following methods:
    Federal eRulemaking Portal: Go to https://www.regulations.gov and 
follow the online instructions for submitting comments.
    U.S. Mail: Docket Management Facility, U.S. Department of 
Transportation, 1200 New Jersey Avenue SE, West Building, Room W12-140, 
Washington, DC 20590-0001.
    Hand Delivery or Courier: U.S. Department of Transportation, 1200 
New Jersey Avenue SE, West Building, Ground Floor, Room W12-140, 
Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, 
except Federal holidays.
    Fax: 202-493-2251.
    Instructions: You must include the agency name (Federal Transit 
Administration) and docket number (FTA-2025-0068) for this notice at 
the beginning of your comments. You must submit two copies of your 
comments if you submit them by mail. If you wish to receive 
confirmation FTA received your comments, you must include a self-
addressed, stamped postcard. Due to security procedures in effect since 
October 2001, mail received through the U.S. Postal Service may be 
subject to delays. Parties submitting comments may wish to consider 
using an express mail firm to ensure prompt filing of any submissions 
not filed electronically or by hand.
    All comments received will be posted, without charge and including 
any personal information provided, to https://www.regulations.gov, 
where they will be available to internet users. You may review DOT's 
complete Privacy Act Statement published in the
    Federal Register on April 11, 2000, at 65 FR 19477. For access to 
the docket and to read background documents and comments received, go 
to https://regulations.gov at any time or to the U.S. Department of 
Transportation, 1200 New Jersey Avenue SE, Docket Management Facility, 
West Building Ground Floor, Room W12-140, Washington, DC 20590 between 
9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Mark Ferroni, FTA Office of Planning 
and Environment at [email protected], or 202.366.3233

SUPPLEMENTARY INFORMATION:

I. Background

    Pursuant to 49 U.S.C. 5309(g)(5), FTA is required to publish policy 
guidance on the discretionary Capital Investment Grants (CIG) program 
when the agency makes significant changes to the CIG review and 
evaluation process and criteria. FTA must consider certain project 
justification criteria pursuant to 49 U.S.C. 5309(d)(2)(A)(iii), 
(e)(2)(A)(iv), and (h)(4). The policy guidance FTA issues for the CIG 
program complements the FTA regulations governing the CIG program, 
codified at 49 CFR part 611. The FTA regulations governing the CIG 
program set forth the process grant applicants must follow to be 
considered for discretionary funding and the procedures and criteria 
FTA uses to rate and evaluate projects to determine applicant 
eligibility. The policy guidance provides a greater level of detail 
about the methods FTA uses and the sequential steps a sponsor must 
follow in developing a project.
    FTA is seeking comment on a proposed reversion to previous 
methodology for evaluating the CIG environmental benefits criterion, as 
well as other technical changes to FTA's CIG Policy Guidance last 
issued in December 2024. (https://www.transit.dot.gov/funding/grants/grant-programs/capital-investments/2024-cig-policy-guidance). The 
proposed revisions address Executive Orders (E.O.) 14148, Initial 
Recissions of Harmful Executive Orders and Actions; E.O. 14154, 
Unleashing American Energy; and E.O. 14151, Ending Radical and Wasteful 
Government DEI Programs and Preferencing, signed by the President in 
early 2025. Additional detail about these changes is provided below. 
The proposed guidance is available on the agency's public website at 
http://www.transit.dot.gov, and in the docket at https://www.regulations.gov. No other changes to the CIG policy guidance are 
proposed at this time. Instead, FTA intends to propose a more 
comprehensive update to the CIG policy guidance for notice and comment 
in the future.

II. Proposed Changes to the CIG Policy Guidance

Environmental Benefits

    FTA is proposing to revise the methodology for evaluating the 
environmental benefits criterion of CIG projects. This methodology 
would utilize the Environmental Protection Agency (EPA) National 
Ambient Air Quality Standards (NAAQS) designation of the metropolitan 
area in which the project is located. Projects in metropolitan areas 
designated as ``non-attainment'' or ``maintenance'' areas for the 
transportation-related criteria pollutants, carbon monoxide (CO), 
nitrogen dioxide (NO2), ozone (O3), or particulate matter 
(PM2.5), would receive a High rating; projects located in 
``attainment'' areas in all four criteria pollutants would receive a 
Medium rating. Project sponsors can determine the applicable EPA NAAQS 
designation through the most recent version of EPA's Green Book 
(https://www.epa.gov/green-book).
    This proposal is similar to the environmental benefits methodology 
FTA utilized prior to 2013, which it adopted in accordance with the 
statutory notice and comment requirements under the Administrative 
Procedure Act (APA), codified at 5 U.S.C. 553. However, the pre-2013

[[Page 40466]]

methodology did not prescribe how projects located in ``maintenance'' 
areas would be rated. To address this gap, FTA's proposal would specify 
that projects located in ``maintenance'' areas would receive a ``High'' 
rating. ``Maintenance'' areas are geographic areas designated 
previously as ``nonattainment'' for a particular pollutant that have 
since met air quality standards but are still subject to requirements 
in their Maintenance Plan and transportation conformity. Assigning a 
``High'' rating to projects in maintenance areas for the 
transportation-related criteria pollutants would further the goals of 
the transportation conformity requirements under Clean Air Act (CAA) 
section 176(c) (42 U.S.C. 7506(c)) to ensure Federally funded or 
approved public transportation activities are consistent with 
(``conform to'') the purpose of the State air quality implementation 
plan.
    This proposed methodology would replace the complex and burdensome 
calculation of environmental benefits FTA has utilized since 2013, 
which uses vehicle miles traveled (VMT) to estimate each project's 
effect on air quality, energy use, greenhouse gas emissions, and 
safety, and then monetizes those changes based on standard factors. 
When FTA adopted the VMT-based environmental benefits measure in 2013, 
FTA recognized it may be necessary in the future to update the 
methodology as new information and research became available. (78 FR 
1992, at 2001). After several years of experience with the measure, FTA 
has determined the VMT-based calculation adds unnecessary burden and 
complexity to the evaluation process for project sponsors and FTA. This 
determination was also informed by several comments received on FTA's 
April 2024 proposed CIG policy guidance (89 FR 24086). These comments 
requested FTA to simplify the environmental benefits calculation and 
consider replacing it with an automatic ratings process.
    FTA has determined the change to the environmental benefits 
methodology would not have a substantial impact on overall project 
ratings. FTA believes the proposed change would achieve an appropriate 
balance between reducing regulatory burden and maintaining sufficient 
analytic rigor within the CIG project evaluation and rating process. 
FTA is proposing to remove references to the VMT-based calculation of 
environmental benefits, as well as related appendices and citations, 
throughout the CIG policy guidance. These are merely conforming 
changes.
    In addition, FTA is proposing this change consistent with the 
direction in E.O. 14154, Unleashing American Energy, which was signed 
by the President on January 20, 2025; OIRA's Guidance Implementing 
Section 6 of Executive Order 14154, Entitled ``Unleashing American 
Energy,'' which was signed on May 5, 2025 (OIRA's Guidance); and DOT 
Order 2100.7, ``Ensuring Reliance Upon Sound Economic Analysis in 
Department of Transportation Policies, Programs, and Activities.'' 
Under the current CIG policy guidance, FTA directs project sponsors to 
monetize the change in greenhouse gas emissions based on the mid-range 
estimate of the social cost of carbon from the Interagency Working 
Group (IWG) Technical Support Document of February 2021. Section 6(b) 
of E.O. 14154 withdraws the guidance issued by the IWG, including the 
Technical Support Document, as it is no longer representative of 
governmental policy. Section 6(c) of E.O. 14154 and DOT Order 2100.7 
also state the ``calculation of the `social cost of carbon' is marked 
by logical deficiencies, a poor basis in empirical science, 
politicization, and the absence of a foundation in legislation.'' 
Further, OIRA's implementing guidance limits the social cost of carbon 
to uses where it is statutorily required and directs agencies to remove 
its consideration from discretionary regulatory language ``as quickly 
as feasible.'' Complying with E.O. 14145 and OIRA's Guidance, and based 
on the aforementioned rationale, FTA is proposing to revise its 
approach to calculating the environmental benefits measure, as directed 
in the CIG Policy Guidance, to align with statutory requirements.

Access to Essential Services

    With respect to the Land Use criterion, FTA is proposing to remove 
the requirement to analyze urgent care centers from the evaluation of 
access to essential services. FTA's December 2024 CIG policy guidance 
instructs project sponsors to use data from the Department of Homeland 
Security's (DHS) Homeland Infrastructure Foundational-Level Data 
(HIFLD) website to evaluate access to essential services, including 
data on urgent care centers. FTA has since learned the HIFLD website no 
longer provides data on urgent care centers, making it impossible for 
project sponsors to examine such data. Accordingly, FTA proposes to 
remove urgent care centers from the requirement. FTA is not proposing 
any other changes to the access to essential services requirement.

Other Changes

    FTA is proposing other minor, technical changes to the CIG policy 
guidance to eliminate references to Executive Orders and other 
documents rescinded pursuant to E.O. 14148, Initial Rescissions of 
Harmful Executive Orders and Actions (January 20, 2025); E.O. 14154, 
Unleashing American Energy (January 20, 2025); and E.O. 14151, Ending 
Radical and Wasteful Government DEI Programs and Preferencing.
    Authority: 49 CFR 1.91.

Marcus J. Molinaro,
Administrator.
[FR Doc. 2025-15794 Filed 8-18-25; 8:45 am]
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