**DEPARTMENT OF TRANSPORTATION**

**Federal Transit Administration**

**Bus and Bus Facilities Discretionary Program Grants (Section 5309)**

**AGENCY: Federal Transit Administration (FTA), DOT.**

**ACTION: Notice of Availability of Fiscal Year 2007 Funds; Solicitation
of Grant Applications.**

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**SUMMARY:** This notice invites applications for the discretionary
funds available in Fiscal Year (FY) 2007 for the discretionary Bus and
Bus Facilities Program, authorized by 49 USC § 5309(b). The Bus and Bus
Facilities Program makes funds available to public transit providers to
finance capital projects to replace, rehabilitate, and purchase buses
and related equipment and to construct bus-related facilities, including
programs of bus and bus-related projects for assistance to subrecipients
that are public agencies, private companies engaged in public
transportation, or private non-profit organizations.

The notice includes priorities established by the Federal Transit
Administration (FTA) for the discretionary program, includes the
criteria FTA will use in evaluating applications, and describes how to
apply. Applications will be accepted from Designated Recipients for the
FTA Urbanized Area Formula program and States, on behalf of nonurbanized
or urbanized area transit providers.

This announcement is available on the Internet on the FTA Website at:
[http://www.fta.dot.gov](http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.fta.dot.gov).
FTA will announce final selections on the Website and in the Federal
Register. A synopsis of this announcement will be posted in the FIND
module of the government-wide electronic grants Website at
[http://www.grants.gov](http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.grants.gov).
Proposals may be submitted to FTA electronically through the Grants.Gov
APPLY function or through FTA's Transportation Electronic Award and
Management (TEAM)-Web.

**DATES**: Complete proposals for the discretionary Bus and Bus
Facilities Program grants must be submitted by \[insert date 60 days
after publication\]. Anyone intending to apply electronically through
Grants.Gov for the first time should initiate the process of registering
on the Grants.Gov site immediately to ensure completion of registration
before the deadline for submission. FTA will announce grant selections
in the Federal Register when the selection process is complete.

**ADDRESSES:** Proposals may be submitted electronically through the
Grants.Gov website or through FTA's TEAM-Web grants management and award
system. Applicants applying to Grants.Gov may also send an email to
their regional grant contact to receive confirmation that FTA retrieved
the application.

**FOR FURTHER INFORMATION CONTACT**: Contact the appropriate FTA
Regional Administrator (Appendix A) for application-specific information
and issues. For general program information, contact Henrika
Buchanan-Smith, (202)366-4020, e-mail: <henrika.buchanan-smith@dot.gov>
or Mary Martha Churchman, (202) 366- 2053, e-mail:
<marymartha.churchman@dot.gov> in the FTA Office of Program Management,
Office of Transit Programs. A TDD is available at 1-800-877-8339
(TDD/FIRS).

**SUPPLEMENTARY INFORMATION:**

**TABLE OF CONTENTS**

Table of Contents

OVERVIEW

FULL TEXT OF ANNOUNCEMENT

I.  Funding Opportunity Description

II. Award Information

III. Eligibility Information

IV. Application and Submission Information

V.  Application Review, Selection, and Notification

VI. Award Administration

VII. Agency Contact(s)

     **Appendix A FTA Regional Offices**

     OVERVIEW

     Federal Agency Name: Federal Transit Administration, US Department
     of Transportation

     Funding Opportunity Title: Discretionary Bus and Bus Facilities
     Program

     Announcement Type: Initial Announcement

     Catalog of Federal Domestic Assistance (CFDA) Number: 20.500

     Dates: Applications must be submitted by \[insert date 60 days
     after publication\]

     FULL TEXT OF ANNOUNCEMENT

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I.  **Funding Opportunity Description**

    A. Authority

The program is authorized under 49 U.S.C. 5309(b)(3), as amended by
section 3011 of the Safe, Accountable, Flexible, Efficient,
Transportation Equity Act: A Legacy for Users (SAFETEA-LU), Pub. L
109-059, August 10, 2005.

> "The Secretary may make grants under this section to assist State and
> local governmental authorities in financing ...
>
> \(3\) capital projects to replace, rehabilitate, and purchase buses
> and related equipment and to construct bus-related facilities,
> including programs of bus and bus-related projects for assistance to
> subrecipients that are public agencies, private companies engaged in
> public transportation, or private non-profit organizations."

B. Background

The "Revised Continuing Appropriations Resolution, 2007" (Public Law
110-05) enacted, February 15, 2007, made available \$881,779,000 for the
FTA Bus and Bus Facilities program in FY 2007. Of this amount,
\$8,817,790 is deducted for oversight and \$459,670,089 is allocated to
statutory provisions and project designations in SAFETEA-LU. The balance
of \$413,291,121 in FY 2007 funds is available to FTA for discretionary
allocation. In addition, a balance of \$24,893,251 of FY 2006 Bus and
Bus Facilities program funding that was not allocated to specific
projects in the FY 2006 appropriations legislation is also available for
discretionary award in FY 2007, for a total of \$438,184,372.

The authorizing legislation allows for the Secretary of Transportation
to make awards under this program at her discretion. FTA is issuing two
separate Notices of Funding Availability for discretionary funding in
the Bus Program in FY 2007. One notice, which appears in another part of
today's Federal Register, invites applications to support the
Department's Congestion Initiative, in conjunction with the solicitation
previously issued by the Department for the Urban Partners program. This
notice invites applications to support additional strategic investments
in bus and bus facility projects that represent the highest and best use
of the available discretionary funding and respond to specific
priorities FTA has identified in this Notice. Applicants may respond to
either or both notices, according to the instructions included in each
notice. Separate applications are required for each notice. In the
selection process, FTA will ensure that funding is not awarded to the
same applicant for the same activities under both notices.

C. Purpose

Improving mobility and shaping America\'s future by ensuring that the
transportation system is accessible, integrated, and efficient, and
offers flexibility of choices is a key strategic goal of the Department
of Transportation. Bus and Bus Facilities projects will improve mobility
for all individuals by providing financial assistance to help transit
providers address planned capital improvements beyond what can be
provided with existing resources such as Urbanized Area (49 U.S.C. 5307)
and Nonurbanized Area (49 U.S.C. 5311) formula resources that are
currently available to grantees. These competitive grants will support
cost effective strategic investments in buses and bus facility projects
that represent the highest and best use of the available discretionary
funding.

II. **Award information**

Federal transit funds are available to State or local governmental
authorities as recipients and other public transportation providers as
subrecipients for up to 80 percent of the net project capital cost. The
\$438 million available to FTA for discretionary allocation in FY 2007
will be allocated to projects submitted in response to this notice and
the Congestion Relief notice published separately in this Federal
Register. There are no minimum or maximum funding limits for
applications under this notice; however, FTA intends to fund as many
meritorious projects as possible. FTA may allocate less than the total
amount requested in the application. Following announcement of the
project selections, successful applicants will submit further
documentation through FTA's electronic grant management system, TEAM,
and FTA will award funding in the form of grants. At the request of the
original applicant, FTA will award grants to other eligible direct
recipients whose projects were included in a consolidated application.
While funds under the program have a three year period of availability
for obligation, FTA intends to award grants for the selected projects
before the end of FY 2007 or in the first quarter of FY 2008. Grants are
subject to a 20 percent local match requirement and projects must comply
with all requirements applicable to the Section 5309 Bus and Bus
Facilities Program.

FTA will give special consideration to applications that address the
following priority areas that FTA has established for the FY 2007
discretionary Bus and Bus Facilities program:

-   Fleet replacement needs that cannot be met with formula funds.

-   Fleet expansion that allows significant service increase and/or
    improvements and/or operating efficiencies.

-   Facility construction or renovation to support increased service or
    introduction of clean fuels.

-   Strategic investments in rural areas where formula funding is
    inadequate.

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-   Purchase of clean fuel vehicles.

-   Intermodal terminal projects that include intercity bus providers.

-   Gulf Coast Recovery -- capital to support bus and bus facilities
    replacement and expansion related to the impacts of the 2005
    Hurricanes. Eligibility is limited to those areas identified as
    eligible under Section 7025 of Pub. L 109-234 and FTA's implementing
    guidance.

III. **Eligibility Information**

1\. Eligible Applicants

Eligible applicants under this program are Designated Recipients under
the Section 5307 Urbanized Area Formula program and States. Proposals
for funding of eligible projects in rural (nonurbanized) areas must be
submitted as part of a consolidated State application. States and
Designated Recipients may also submit consolidated proposals for
projects in urbanized areas.

Proposals may contain projects to be implemented by the Designated
Recipient or its subrecipients. Eligible subrecipients include public
agencies, private non-profit organizations, and private providers
engaged in public transportation. Tribal rural transit projects must be
included in a State proposal, but FTA may make a direct grant to a
Federally recognized tribe for a project included in the proposal if
selected.

2\. Eligible Expenses

Section 5309 grants authority to the Secretary to make grants "to assist
State and local governmental authorities in financing capital projects
to replace, rehabilitate, and purchase buses and related equipment and
to construct bus-related facilities, including programs of bus and
bus-related projects for assistance to subrecipients that are public
agencies, private companies engaged in public transportation, or private
non-profit organizations."

Projects eligible for funding under the Bus program are capital projects
such as:

purchase and rehabilitation of buses and vans, bus related equipment
(including Intelligent Transportation Systems (ITS) equipment, fare
boxes, radios), construction and rehabilitation of bus related
facilities (including administrative, maintenance, transfer, and
interposal facilities, including facilities consistent with FTA's joint
development policy.)

Funds made available under this Notice cannot be used to fund operating
expenses or the expanded capital eligibility activities such as
preventive maintenance, security drills, or debt service reserve
otherwise eligible under the Bus Program. Funds also cannot be used to
reimburse grantees that have incurred prior expenses for the project
absent evidence that FTA had issued a Letter of No Prejudice (LONP) for
the project prior to the costs being incurred. There is no blanket
pre-award authority for projects to be funded under this announcement
prior to announcement in the Federal Register of the selected projects.

3\. Cost Sharing or Matching

Costs will be shared at the following ratio: 80 percent FTA/20 percent
local contribution. Match for the incremental cost of ADA or Clean Air
Act improvements may be 90/10, consistent with the guidance for other
FTA programs. FTA can waive local share for Gulf Coast projects under
provisions of Section 7025.

FTA will not approve deferred local share under this program.

**IV**. **Application and Submission Information**

1\. Proposal Submission Process

[The](../The) eligible applicants, Designated Recipients and States,
because they are already established FTA grantees, may apply through
FTA's TEAM-Web electronic grants management and award system. Any
applicant information specified in section 2.A below that is not part of
the recipient profile in TEAM-Web may be included as a narrative
attachment. The material regarding Project Information specified in
section 2.B below should be provided as a narrative attachment. To
ensure that FTA identifies the application as a candidate for
consideration in the competitive selection process, the application must
be given the following temporary project name: BUSNOFA -- (two letter
State code) -- (4 digits Recipient TEAM ID). Supplemental information
may be submitted as a PDF attachment. Mail and fax submissions will not
be accepted except for supplemental information that cannot be sent
electronically.

Submission through TEAM-Web does not guarantee that the application will
be selected for funding. Only those projects selected for award through
the competitive process will advance to formal submission for grant
award, and revisions may be required prior to submission, for example
reductions in the project budget.

Alternatively, applicants may submit project proposals electronically
through [http://www.grants.gov](http://www.grants.gov/). The Office of
Management and Budget (OMB) requires all Federal agencies to make
applications for competitive grant programs available through
Grants.Gov. A synopsis of this announcement will be posted in the FIND
module of the government-wide electronic grants web site at
[http://www.grants.gov](http://www.grants.gov/) and applicants will be
able to apply through the APPLY module of that site.

This opportunity is only for funds available to FTA in FY 2007 for
discretionary allocation. In the past, the entire Bus and Bus Facilities
program has typically been allocated by Congress in the Authorization
and in subsequent appropriation legislation. If there are future
discretionary funding opportunities, FTA will issue a new Notice of
Funding Availability.

2\. Application Content

A. Applicant Information

This addresses basic identifying information, including:

a\. applicant name and FTA recipient ID number

b\. contact information (including contact name, e-mail, fax and phone
number)

c\. brief description of services provided by the agency, including
areas served

For applicants applying through Grants.Gov, some of this information is
included in the Standard Form 424.

B. Project Information

Every proposal must:

1.  Describe the projects(s) for which funding is requested.

    2\. Identify which of the FTA priorities the project addresses, or
    indicate that the project addresses other local priorities.

    3\. Address each of the evaluation criteria separately, providing
    evidence that demonstrates how the project responds to each
    criterion, for example, age and condition of current fleet to
    demonstrate need if applying for replacement vehicles, projected
    ridership increases that will result from the project if applying
    for fleet expansion to support service enhancements, status of
    environmental compliance activities if applying for construction
    projects, advance preparations that will enable the project to be
    implemented quickly.

    4\. Provide a line item budget for the project, including the
    Federal amount requested and the total cost for each purpose for
    which funds are sought, and the total Federal amount requested and
    total project cost.

    5\. Document the matching funds, including amount and source of the
    match.

    6\. Provide a project time-line, including significant milestones
    such as anticipated date of contract award for purchase of
    vehicle(s), and actual or expected delivery date of vehicles.

    7\. Proposal may include additional supplemental information, for
    example, architectural drawings, letters of support, maps.

    3\. Submission Dates and Times

    Complete proposals for the Bus and Bus Facilities Program grants
    must be submitted to TEAM-Web by \[insert date 60 days after
    publication\] or submitted electronically through the Grants.Gov
    Website by the same date. Applicants planning to apply through
    grants.gov are encouraged to begin the process of registration on
    the Grants.Gov site well in advance of the submission deadline.
    Registration is a multi-step process, which may take several weeks
    to complete before an application can be submitted. FTA will
    announce grant selections when the competitive selection process is
    complete.

4\. Funding Restrictions

Only proposals from eligible recipients for eligible activities will be
considered for funding (see Section III). Due to funding limitations,
applicants that are selected for funding may receive less than the
amount requested.

5\. Other Submission Requirements

Applicants should submit 3 copies of any supplemental information that
cannot be submitted electronically to the appropriate regional office.
Supplemental information submitted in hardcopy must be postmarked or
delivered by alternate delivery services by \[insert date 60 days after
publication.\]

**V**. **Application Review Information**

1\. Project Evaluation Criteria

Projects will be evaluated according to the following criteria:

A. Cost Effective Strategic Investment

> i\. Project represents a one-time or periodic capital investment that
> cannot reasonably be funded from formula allocations or State and/or
> local revenues. Applicants for the Gulf Coast recovery priority must
> also demonstrate that funds have not been made available for the
> investment by the Federal Emergency Management Agency (FEMA) or other
> supplemental resources.
>
> ii\. Applicant did not receive sufficient funding for the proposed
> project in the SAFETEA-LU earmarks and formula funds are not available
> to support the project.
>
> iii\. For vehicle replacement applications, average fleet age is at or
> close to 75 percent of useful life, and/or vehicles to be replaced
> exceed their useful life based on mileage and/or age.
>
> iv\. The project will have a significant impact on service delivery.
>
> B. Planning and prioritization at local/regional level
>
> i\. Project is consistent with the transit priorities identified in
> the Metropolitan Transportation plan or statewide long range plan
> and/or contingency/illustrative projects in those plans. The project
> could not be included in the financially constrained Transportation
> Improvement Program (TIP)/State Transportation Improvement Program
> (STIP) due to lack of funding (if selected, project must be on TIP
> before grant award).
>
> ii\. Local support is demonstrated by the availability of local match
> for this project and, if applicable, letters of support from project
> partners (e.g., intercity bus operators, in the case of an application
> for an intermodal facility).
>
> iii\. Capital projects are consistent with service needs of the area
> based on local plans and projected population trends. For example, a
> proposal for fleet expansion shows evidence of the need for additional
> capacity.
>
> iv\. In an area with more than one transit operator, the application
> demonstrates coordination with and support of other transit operators,
> or in rural areas, with human service transportation providers.
>
> C. The project clearly addresses one or more of the FTA FY 2007 Bus
> priority areas.
>
> i\. Application clearly addresses one or more of the priority areas
> and demonstrates merit in that area, for example, investment for bus
> replacements is justified by age and condition of fleet.
>
> Note: If the project does not address one of the FTA priority areas,
> application demonstrates how the project addresses significant
> regional or local priorities.
>
> D. The project is ready to implement.
>
> i\. At a minimum, any required environmental work has been initiated
> for construction projects requiring an Environmental Assessment (EA).
> Prior FTA environmental approval indicates a higher state of
> readiness.
>
> ii\. Initial design of facilities projects is complete, and where
> applicable, implementation plans have been developed or are under
> development.
>
> iii\. TIP/STIP can be readily amended (as evidenced by Metropolitan
> Planning Organization (MPO)/State endorsement).
>
> iv\. Project can be obligated and implemented quickly if selected, for
> example, an existing bus procurement includes options the grantee
> could exercise.
>
> E. The applicant demonstrates the ability to carry out the proposed
> project successfully.
>
> Note: Applicants must have basic technical, legal, and financial
> capacity as a precondition of grant award. Since proposals are limited
> to existing FTA grantees, applicants are assumed to have that basic
> capacity. This criterion refers to implementation of the particular
> project proposed.
>
> i\. For larger capital projects, the applicant has the technical
> capacity to administer the project.
>
> ii\. For fleet replacement and expansion, the acquisition is
> consistent with the system's capital replacement plans and/or
> operational plans or plans for system improvements.
>
> iii\. There are no outstanding legal, technical or financial issues
> with the grantee that would make this a high risk project.
>
> iv\. Source of 20 percent local match is identified and is available
> for prompt project implementation if selected (no deferred local share
> will be allowed).

2\. Review and Selection Process

Proposals will be screened and ranked by the appropriate FTA regional
office (see Appendix A) and FTA headquarters staff. Meritorious projects
will be considered for inclusion in a national list of selected projects
that addresses the identified priorities and represents the highest and
best use of the available funding. The Administrator shall determine the
final selection and amount of funding for each project.

Selected projects will be announced approximately eight weeks after the
application deadline. FTA will publish the list of all selected projects
and funding levels in the Federal Register.

**VI. Award Administration Information**

1\. Award Notices

FTA will announce project selections in a Federal Register Notice and
FTA regional offices will contact successful applicants. FTA will award
grants for the selected projects to the Designated Recipient or State
applicant, or to other eligible direct recipients, through the FTA
electronic grants management and award system, TEAM, after receipt of a
complete application in TEAM. These grants will be administered and
managed by the FTA regional offices in accordance with the federal
requirements of the Section 5309 program. At the time the project
selections are announced, FTA will extend pre-award authority for the
selected projects. There is no blanket pre-award authority for these
projects prior to announcement.

2\. Administrative and National Policy Requirements

A. Grant Requirements

If selected, applicants will apply for a grant through TEAM and adhere
to the customary FTA grant requirements of the Section 5309 Bus and Bus
Facilities program, including those of FTA C 9300.1A; C 5010.1C; and
labor protections required under 49 USC 5333(b). Discretionary grants
greater than \$1 million will go through Congressional Notification and
release process. Technical assistance regarding these requirements is
available from each FTA regional office.

B. Planning

Applicants are encouraged to notify the appropriate State Departments of
Transportation and MPOs in areas likely to be served by the project
funds made available under this program. Before grant award, the project
must satisfy requirements for inclusion in the STIP and Metropolitan
Transportation Improvement Program (TIP), where applicable.

C. Standard Assurances

FTA annually issues a set of standard Certifications and Assurances
which each FTA grantee must sign, assuring that it will comply with all
applicable Federal statutes, regulations, executive orders, FTA
circulars, and other Federal administrative requirements in carrying out
any project supported by the FTA grant. The Applicant acknowledges that
it is under a continuing obligation to comply with the terms and
conditions of the grant agreement issued for its project with FTA. The
Applicant understands that Federal laws, regulations, policies, and
administrative practices might be modified from time to time and affect
the implementation of the project. The Applicant agrees that the most
recent Federal requirements will apply to the project, unless FTA issues
a written determination otherwise. The Applicant must submit all
relevant current Certifications and Assurances prior to receiving a
grant under this announcement.

3\. Reporting

Post-award reporting requirements include submission of Financial Status
Reports, Milestone reports, and narrative progress reports in TEAM on a
quarterly basis for projects within a large urbanized area, or annual
reports for grants in Small urban or rural areas. Documentation is
required for payment.

**VII. Agency Contact(s)**

Contact the appropriate FTA Regional Administrator (see Appendix A) for
application-specific information and issues. For general program
information, contact Henrika Buchanan-Smith, Office of Transit Programs,
(202) 366-2053,

e­mail: henrika.buchanan-smith@dot.gov. A TDD is available at
1-800-877-8339 (TDD/FIRS).

**Issued in Washington, DC, this \_\_\_\_\_\_\_ day of \_\_\_\_\_\_\_\_,
2007. \_\_\_\_\_\_\_\_\_\_**

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**James S. Simpson**

**Administrator**

**Appendix A\--FTA Regional Offices**

**Region I**\--Massachusetts, Rhode Island, Connecticut, New Hampshire,

Vermont and Maine

Richard H. Doyle, FTA Regional Administrator, Volpe National

Transportation Systems Center, Kendall Square, 55 Broadway, Suite

920, Cambridge, MA 02142-1093, (617) 494-2055

**Region II**\--New York, New Jersey

Brigid Hynes-Cherin, FTA Regional Administrator, One Bowling Green,

Room 429, New York, NY 10004-1415, (212) 668-2170

**Region III**\--Pennsylvania, Maryland, Virginia, West Virginia,
Delaware,

Washington, DC

Herman Shipman, FTA Deputy Regional Administrator, 1760 Market Street,
Suite 500, Philadelphia, PA 19103-4124, (215) 656-7100

**Region IV**\--Georgia, North Carolina, South Carolina, Florida,

Mississippi, Tennessee, Kentucky, Alabama, Puerto Rico, Virgin Islands

Yvette G. Taylor, FTA Regional Administrator, 61 Forsyth Street, S.W.,

Suite 17T50, Atlanta, GA 30303, (404) 562-3500

**Region V**\--Illinois, Indiana, Ohio, Wisconsin, Minnesota, Michigan

Marisol R. Simon, FTA Regional Administrator, 200 West Adams Street,

Suite 320, Chicago, IL 60606-5232, (312) 353-2789

**Region VI**\--Texas, New Mexico, Louisiana, Arkansas, Oklahoma

Robert Patrick, FTA Regional Administrator, 819 Taylor Street, Room

8A36, Ft. Worth, TX 76102, (817) 978-0550

**Region VII**\--Iowa, Nebraska, Kansas, Missouri

Mokhtee Ahmad, FTA Regional Administrator, 901 Locust Street, Suite 404,

Kansas City, MO 64106, (816) 329-3920

**Region VIII**\--Colorado, North Dakota, South Dakota, Montana,
Wyoming,

Utah

Letitia Thompson, Acting FTA Regional Administrator, 12300 West Dakota
Avenue Suite 310, Lakewood, CO 80228-2583, (720) 963-3300

**Region IX**\--California, Arizona, Nevada, Hawaii, American Samoa,
Guam

Leslie Rogers, FTA Regional Administrator, 201 Mission Street, Suite

1650, San Francisco, CA 94105-1831, (415) 744-3133

**Region X**\--Washington, Oregon, Idaho, Alaska

Richard Krochalis, FTA Regional Administrator, Jackson Federal

Building, 915 Second Avenue, Suite 3142, Seattle, WA 98174-1002,

\(206\) 220-7954