78204 Federal Register / Vol. 69, No. 249 / Wednesday, December 29, 2004 / Notices 

DEPARTMENT OF TRANSPORTATION 

Federal Transit Administration 

FTA Fiscal Year 2005 Apportionments, 

Allocations and Program Information 

AGENCY: Federal Transit Administration 

(FTA), DOT. 

ACTION: Notice. 

SUMMARY: The ‘‘Consolidated 

Appropriations Act, 2005’’, (Public Law 

108–447), signed into law by President 

Bush on December 8, 2004, appropriates 

funds for all of the surface 

transportation programs of the 

Department of Transportation for the 

fiscal year ending September 30, 2005. 

This notice provides information on the 

FY 2005 transit appropriations for the 

FTA assistance programs, program 

guidance and requirements, and 

information on several program issues 

important in the coming year. 

FOR FURTHER INFORMATION CONTACT: For 

general information about this notice 

contact Mary Martha Churchman, 

Director, Office of Resource 

Management and State Programs, (202) 

366–2053. Please contact the 

appropriate FTA regional office for any 

specific requests for information or 

technical assistance. The Appendix at 

the end of this notice includes contact 

information for FTA regional offices and 

key headquarters program staff. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Overview 

II. FY 2005 Funding for FTA Programs 

A. Funding Based on FY 2005 

Appropriations Act and Extension of 

Authorization 

B. Apportionments and Allocations 

C. Program Funds Set-aside for Project 

Management Oversight 

III. Fiscal Year 2005 Key Program Initiatives 

A. Improved Customer Service 

B. Transportation Coordination—United 

We Ride 

C. Reporting Independent Single Audit 

Results 

IV. FTA Programs 

A. Metropolitan Planning Program (49 

U.S.C. 5303) 

B. Urbanized Area Formula Program (49 

U.S.C. 5307) 

C. Clean Fuels Formula Program (49 U.S.C. 

5308) 

D. Capital Investment Program (49 U.S.C. 

5309)—Fixed Guideway Modernization 

E. Capital Investment Program (49 U.S.C. 

5309)—Bus and Bus-Related Facilities 

F. Capital Investment Program (49 U.S.C. 

5309)—New Starts 

G. Elderly and Persons with Disabilities 

Program (49 U.S.C. 5310) 

H. Nonurbanized Area Formula Program 

(49 U.S.C. 5311) 

I. Rural Transit Assistance Program (49 

U.S.C. 5311(b)(2)) 

J. Statewide Planning and Research 

Program (49 U.S.C. 5313(b)) 

K. National Planning and Research 

Program (49 U.S.C. 5314) 

L. Job Access and Reverse Commute 

Program (Public Law 105–85, Section 

3037) 

M. Over-the-Road Bus Accessibility 

Program (Public Law 105–85, Section 

3038) 

V. FTA Program Guidance and Requirements 

A. Automatic Pre-Award Authority To 

Incur Project Costs 

B. Letter of No Prejudice (LONP) Policy 

C. FTA FY 2005 Annual List of 

Certifications and Assurances 

D. FHWA Funds Used for Transit Purposes 

E. Grant Application Procedures 

F. Payments 

G. Oversight 

H. Technical Assistance 

VI. Guidance and Information Specific to 

FTA Planning Programs 

A. Census 2000 Planning and Programming 

Requirements Deadline 

B. Local Match Waiver for Specific 

Planning Activities 

C. Planning Emphasis Areas for FY 2005 

D. Consolidated Planning Grants 

Tables 

1. FTA FY 2005 Appropriations, 

Apportionments, and Available Funding 

for Grant Programs 

2. FTA FY 2005 Metropolitan Planning 

Program and Statewide Planning and 

Research Program Apportionments 

3. FTA FY 2005 Urbanized Area Formula 

Apportionments 

4. FTA FY 2005 Apportionment Formula 

for Urbanized Area Formula Program 

5. FTA FY 2005 Formula Programs 

Apportionments Data Unit Values 

6. 2000 Census Urbanized Areas With 

Populations 200,000 or Greater Eligible 

To Use FY 2005 Section 5307 Funds for 

Operating Assistance 

7. FTA FY 2005 Fixed Guideway 

Modernization Apportionments 

8. FTA FY 2005 Fixed Guideway 

Modernization Program Apportionment 

Formula 

9. FTA FY 2005 Bus and Bus-Related 

Allocations 

10. FTA Prior Year Unobligated Bus and 

Bus-Related Allocations 

11. FTA FY 2005 New Starts Allocations 

12. FTA Prior Year Unobligated New Starts 

Allocations 

13. FTA FY 2005 Elderly and Persons With 

Disabilities Apportionments 

14. FTA FY 2005 Nonurbanized Area 

Formula Apportionments, and Rural 

Transit Assistance Program (RTAP) 

Allocations 

15. FTA FY 2005 National Planning and 

Research Program Allocations 

16. FTA FY 2005 Job Access and Reverse 

Commute (JARC) Allocations 

17. FTA Prior Year Unobligated JARC 

Allocations 

Appendix 

I. Overview 

This document apportions or allocates 

annual appropriations among potential 

program recipients. Although the 

agency has received its annual 

appropriation, our authorizing 

legislation is scheduled to expire May 

31, 2005. Because of this, we will show 

two amounts—one reflecting the annual 

appropriation amount and one showing 

the amount currently available, as 

limited by the 8-month authorization. In 

addition, the document contains 

important information about FTA 

programs and areas of emphasis for the 

fiscal year, including FTA’s Strategic 

Business Plan Initiative. For each FTA 

program included, we have provided 

relevant information on its total fiscal 

year (FY) 2005 apportionments/ 

allocations, requirements, period of 

availability, and other related 

information and highlights, as 

appropriate. A separate section of the 

document provides information on 

requirements and guidance that are 

applicable to all FTA programs. The 

document also includes a section that 

delineates various requirements and 

guidance specific to the FTA planning 

programs that grantees should be aware 

of for FY 2005. 

II. FY 2005 Funding for FTA Programs 

A. Funding Based on FY 2005 

Appropriations Act and Extension of 

Authorization 

The Consolidated Appropriations Act, 

2005 (Pub. L. 108–447, December 8, 

2004; hereafter called the 2005 

Appropriations Act) provides a 

combination of trust and general funds 

that total $7.708 billion for FTA 

programs. This amount is reduced to 

$7.646 billion by a government-wide 

across-the-board 0.80 percent rescission, 

as directed by Section 122 of Division 

J of the 2005 Appropriations Act. Table 

1 of this document shows the funding 

for the FTA programs for the entire 

fiscal year, as provided for in the 2005 

Appropriations Act. However, because 

our current program authorization, the 

Surface Transportation Extension Act of 

2004, Part V (Pub. L. 108–310, 

September 30, 2004), only provides 

contract authority for the trust funds 

through May 31, 2005, we also show in 

Table 1 the amount of FY 2005 funds 

currently available for obligation for 

each program based on the extension of 

TEA–21 through May 31, 2005. The 

amount currently available includes all 

of the general funds but only a portion 

of the trust funds included in the total 

obligation limitation for FTA programs 

in the 2005 Appropriations Act. The 

percentage of the annual amount 

currently available varies slightly from 

program to program, depending on the 

mix of general and trust funds 

appropriated for the program and the 

Federal Register / Vol. 69, No. 249 / Wednesday, December 29, 2004 / Notices 78205 

reallocation of any prior year funds to 

the program. 

B. Apportionments and Allocations 

FTA is publishing tables for each 

program that contain both the 

apportionments and allocations based 

on the full program levels in the 2005 

Appropriations Act; and the 

apportionments and allocations based 

on FY 2005 funds currently available for 

the FTA program. The column labeled 

‘‘Apportionment’’ or ‘‘Allocation’’

includes both trust funds (contract 

authority) and general funds, and 

reflects the total dollar amount of 

obligation limitation and appropriations 

in the 2005 Appropriations Act, once a 

full-year contract authority is made 

available. This amount is not the 

amount that is actually available for 

obligation at this time. The amount 

shown in the column labeled ‘‘Available 

Apportionment’’ or ‘‘Available 

Allocation’’ is available for obligation. 

All apportionments and allocations 

reflect the 0.80 percent rescission, 

which has been proportionately applied 

to the discretionary budget authority 

and obligation limitation, and to each 

program, project and activity. 

C. Program Funds Set-aside for Project 

Management Oversight 

FTA draws money from funds 

appropriated to the Urbanized Area 

Formula Program, Nonurbanized Area 

Formula Program, and Capital 

Investment Program for program 

oversight activities conducted by FTA. 

The funds are used to provide necessary 

oversight activities, including oversight 

of the construction of any major project 

under these statutory programs; to 

conduct safety, civil rights, 

procurement, management and financial 

reviews and audits; and to provide 

technical assistance to correct 

deficiencies identified in compliance 

reviews and audits. Project management 

oversight is authorized by 49 U.S.C. 

Section 5327. The percent of Urbanized 

Area Formula and Nonurbanized Area 

Formula funds made available for 

oversight is one-half percent. The 

percentage of Capital Investment 

Program funding made available for 

oversight was increased from threequarters percent to one percent by 

Section 319 of the FY 2002 DOT 

Appropriations Act and continues to be 

drawn at the higher rate. 

III. Fiscal Year 2005 Key Program 

Initiatives 

Each year, FTA’s apportionment 

notice draws attention to significant 

initiatives or focus areas for the year. 

Under our Strategic Business Plan 

(SBP), we have several initiatives 

focused on improved efficiency and 

enhanced customer service, several of 

which are discussed in this section. 

In addition, efforts to improve the 

coordination of human service program 

transportation have been paying 

handsome dividends, and a 2004 

Executive Order on Coordinated Human 

Service Transportation is expected to 

further energize and focus governmentwide efforts to address the complex 

impediments to delivering effective 

transportation options at the local level. 

We discuss this in detail in this section, 

as well. 

Another key issue discussed in this 

section is Single Audit Act findings and 

the closure of findings. Additional 

information about these focus areas is 

available from your regional office (see 

the Appendix at the end of this 

document.) 

A. Improved Customer Service 

One of the four ‘‘coreaccountabilities’’ under FTA’s SBP is to 

reduce grant processing time. This is the 

third year FTA will track grant 

processing time, and, as in last year’s 

SBP, the goal is to achieve an average 

processing time of 36 days from the date 

a complete application is submitted in 

TEAM-Web, our electronic grant-making 

system. Reduced grant processing time 

has been adopted as a core 

accountability for several reasons. First, 

it requires FTA to continually examine 

how we review and approve grants, and 

to find ways to improve our internal 

processes. More importantly, it reduces 

the amount of time a grantee must wait 

from the date of submission of a grant 

until final approval, responding to the 

needs of grantees to receive funds on a 

timely basis in order to maintain their 

programs. 

Because tracking comparable data is 

key to any performance measurement, 

FTA uses the date on which a grant 

number is assigned (the date of 

submission) to measure how long it 

takes to process a grant. Inherent in this 

measure is an assumption that regional 

offices have received a complete 

application from the grantee. We know 

that this has been an area of some 

disagreement in years past, and that 

some regions have assigned grant 

numbers before grant applications were 

actually complete. 

To continue to meet our efficiency 

goal and to ensure that we minimize the 

time it takes to process a grant, we 

provide below some information that 

will aid in the overall understanding of 

what constitutes a complete application. 

Of course, you can receive additional 

information and technical assistance 

from your regional office at any time. 

(Complete contact information is 

available in the Appendix at the end of 

this document.) 

For the regional office to be able to 

assign a grant number, enabling 

submission, the application must meet 

the following requirements: 

1. The project is listed in a currently 

approved Transportation Improvement 

Program (TIP); Statewide Transportation 

Improvement Program (STIP), or 

Unified Planning Work Program 

(UPWP). 

2. All eligibility issues have been 

resolved. 

3. Required environmental findings 

have been made. 

4. The project budget’s Activity Line 

Items (ALI), scope, and project 

description meet FTA requirements. 

5. Local share funding source(s) have 

been identified. 

6. The grantee’s required Civil Rights 

submissions are current. 

7. Certifications and assurances are 

properly submitted. 

8. Funding is available, including any 

flexible funds included in the budget. 

9. For projects involving new 

construction (using New Starts or 

formula funds), FTA engineering staff 

has reviewed the project management 

plan and given approval. 

10. When required for grants related 

to New Starts projects, preliminary 

engineering (PE) and/or final design 

(FD) has been approved. 

11. Milestone information is 

complete, or FTA determines that 

milestone information can be finalized 

before the grant is ready for award. 

In every appropriations act, several 

FTA programs include Congressional 

project designations. Congress 

earmarked over 500 transit projects for 

FY 2005. A significant number of 

project sponsors that have received 

Congressional designations for FY 2005 

Bus and Bus-Related Facilities and 

JARC projects and activities and 

unobligated prior year designations will 

be first-time (new) FTA grantees or subrecipients. With respect to new grantees, 

historically, the following issues have 

presented the most significant hurdles 

to successful and timely 

implementation of earmarked projects: 

(1) Grantee inability to identify eligible 

project activities within the scope of the 

earmark; (2) misunderstanding and/or 

lack of awareness of applicable 

requirements; and (3) difficulty 

generating the required local match. 

While we provide ‘‘pre-award 

authority’’ (see section V. A of this 

document for a complete explanation), 

we do not recommend that first-time 

grant recipients utilize the automatic 

78206 Federal Register / Vol. 69, No. 249 / Wednesday, December 29, 2004 / Notices 

pre-award authority to incur expenses 

before the grant is actually awarded by 

FTA. As a new grantee, it is easy to 

misunderstand pre-award authority 

conditions and not be aware of all of the 

applicable FTA requirements that must 

be met in order to be reimbursed for 

project expenditures incurred in 

advance of grant award. FTA programs 

have specific statutory requirements 

that are often different from those for 

other Federal grant programs with 

which new grantees may be familiar. If 

funds are expended for an ineligible 

project or activity, FTA will be unable 

to reimburse the project sponsor. 

We encourage project sponsors of 

both Bus and JARC earmarked projects 

who will be first-time FTA grantees to 

contact their FTA regional office staff to 

discuss the project and relevant FTA 

requirements. The regional staff will 

assist you with identifying requirements 

and understanding FTA’s grant 

application procedures, and help you 

develop an approvable application. (See 

the Appendix to this document for 

contact information) 

B. Transportation Coordination—United 

We Ride 

Transportation is an essential link to 

employment, health, and educational 

services. Without adequate 

transportation services, many older 

Americans, persons with disabilities, 

and individuals with low-incomes are 

often unable to access work, medical 

services, educational resources or 

recreation opportunities. 

In February 2004, President Bush 

issued Executive Order (EO) 13330 on 

Human Service Transportation 

Coordination to improve transportation 

for those who are transportation 

disadvantaged, by improving the 

coordination of transportation services 

provided under programs in ten Federal 

Departments. The goals of the Executive 

Order are to simplify access to 

transportation services, reduce 

duplication and overlap, and improve 

the effectiveness of the transportation 

services provided. In response to the 

EO, the Department of Transportation, 

with its partners at the Department of 

Health and Human Services, Labor, 

Education, and elsewhere, launched the 

United We Ride (UWR) initiative. To 

assist States and communities in 

moving forward, FTA and our Federal 

partners introduced an initiative that 

includes a Framework for Action, a selfassessment tool for States and 

communities; the National Leadership 

Forum on Human Service 

Transportation Coordination; State 

Coordination Grants; and Technical 

Assistance. 

Forty-five States have been selected to 

receive grants for human service 

transportation coordination efforts in FY 

2005. The State Coordination Grants 

may be used to: (1) Conduct a 

comprehensive State assessment using 

the UWR Framework for Action, (2) 

develop a comprehensive State action 

plan for Coordinating Human Service 

Transportation, and/or (3) implement 

one or more of the elements identified 

within the Framework for Action (for 

those States that have not established a 

comprehensive State action plan). 

Planning teams involving regional 

leadership from the Federal agencies 

named in the EO are bringing together 

State teams for workshops in six of the 

ten U.S. Department of Transportation 

(U.S. DOT) regional offices this year. 

C. Reporting Independent Single Audit 

Results 

A recent audit of the FY 2004 

Highway Trust Fund financial 

statements found that provisions of the 

Single Audit Act (SAA), and the related 

Office of Management and Budget 

(OMB) Circular No. A–133 had not been 

effectively implemented. In order to 

correct this weakness, FTA has 

determined that it is critical that key 

information from the grantee’s audit 

report be reviewed on an annual basis. 

Therefore, we are implementing the new 

reporting requirements described in the 

June 17, 2004, Dear Colleague letter 

from Administrator Dorn, which is 

posted on the FTA Web site at: http:// 

www.fta.dot.gov/legal/guidance/ 

dear_colleague/2004/ 

12128_15811_ENG_HTML.htm. 

Grantees should continue to work 

with FTA regional offices to resolve any 

FTA-related findings in these 

independent annual audits. FTA 

regional offices will be tracking progress 

in the resolution of these findings, and 

will contact grantees that have not 

complied with the requirements in a 

timely manner. Copies of responses to 

audit findings that relate to a resolution 

of the findings should be sent to the 

appropriate regional office. 

Consistent with the requirements of 

OMB Circular No. A–133, FTA requires 

a grant recipient expending $500,000 or 

more (previously $300,000 or more) in 

Federal financial assistance to secure an 

independent annual audit of its 

financial activities. The audit report 

must be submitted to the Federal 

Clearinghouse within the earlier of 30 

days after the audit report is issued, or 

nine months after the end of the audit 

period. 

At the same time, grant recipients 

should send a copy of the Federal 

Clearinghouse transmittal sheet to the 

appropriate FTA regional office, and if 

there are FTA program findings or if 

FTA is your point-of-contact for all DBE 

program issues, send FTA a copy of the 

entire audit report. 

IV. FTA Programs 

This section of the notice provides FY 

2005 funding and other important 

program-related information for the four 

major FTA program areas included in 

the notice (transit planning and 

research; formula grants; capital 

investments; and Job Access and 

Reverse Commute). Of the 14 separate 

FTA programs contained in this notice 

that fall under the major program area 

headings, the funding for seven is 

apportioned by statutory formula. 

Funding for the other seven is allocated 

on a discretionary or competitive basis. 

Funding and other important 

information for each of the 14 programs 

is presented immediately below. This 

includes program apportionments or 

allocations, certain program 

requirements, length of time FY 2005 

funding is available to be committed, 

and other significant program 

information pertaining to FY 2005. 

A. Metropolitan Planning Program (49 

U.S.C. 5303) 

Section 5303 authorizes a cooperative, 

continuous, and comprehensive 

planning program for transportation 

investment decision-making at the 

metropolitan area level. State 

Departments of Transportation (DOTs) 

and Metropolitan Planning 

Organizations (MPOs) may receive 

funds for planning projects that support 

the economic vitality of the 

metropolitan area, especially by 

enabling global competitiveness, 

productivity, and efficiency; increasing 

the safety and security of the 

transportation system for motorized and 

non-motorized users; increasing the 

accessibility and mobility options 

available to people and for freight; 

protecting and enhancing the 

environment, promoting energy 

conservation, and improving quality of 

life; enhancing the integration and 

connectivity of the transportation 

system, across and between modes, for 

people and freight; promoting efficient 

system management and operation; and 

emphasizing the preservation of the 

existing transportation system. For more 

about the Metropolitan Planning 

Program contact Candace Noonan, 

Program Manager, at (202) 366–1648. 

1. Total Apportionments 

The 2005 Appropriations Act 

provides $59,902,515 to the 

Metropolitan Planning Program (49 

Federal Register / Vol. 69, No. 249 / Wednesday, December 29, 2004 / Notices 78207 

1Sec. 198 of the 2005 Appropriations Act states 

that Norman, OK, is to be considered part of the 

Oklahoma City, OK, UZA for FY 2004 and 2005. 

This provision has an unintended impact on the 

apportionments for these UZAs, and also affects the 

apportionment of all UZAs with populations less 

than 1 million. FTA anticipates a correction and has 

not applied this provision. If the correction is not 

made, we will adjust the FY 2006 apportionments 

to the Norman and Oklahoma City UZAs to 

compensate. 

U.S.C. 5303) after the across-the-board 

0.80 percent rescission. The total 

amount apportioned for the 

Metropolitan Planning Program (to 

States for MPOs’ use in urbanized areas 

(UZAs)) is $60,628,846, as shown in the 

table below. 

METROPOLITAN PLANNING PROGRAM

Appropriation .................. $60,385,600 

Rescission ...................... (483,085) 

Prior Year Funds Added 726,331

Total Apportioned ........ 60,628,846

States’ apportionments for this 

program are displayed in Table 2. Also 

displayed in Table 2 is the amount of 

each State’s apportionments that is 

currently available for obligation, in 

accordance with the Surface 

Transportation Extension Act of 2004, 

Part V. 

FTA allocates Metropolitan Planning 

funds to the States according to a 

statutory formula. Eighty percent of the 

funds are distributed to the States as a 

basic allocation based on each State’s 

population in the UZA, as designated by 

the Census Bureau. The remaining 20 

percent is provided to the States as a 

supplemental allocation based on an 

FTA administrative formula to address 

planning needs in the larger, more 

complex UZAs. The amount published 

for each State is a combined total of 

both the basic and supplemental 

allocation. 

2. Program Requirements 

The State allocates Metropolitan 

Planning funds to MPOs in UZAs or 

portions thereof to provide funds for 

projects included in an annual work 

program (the Unified Planning Work 

Program, or UPWP) that includes both 

highway and transit planning projects. 

All States have either reaffirmed or 

developed, in consultation with their 

MPOs, new allocation formulas as a 

result of the 2000 Census. These 

formulas may be changed annually, but 

any changes require approval by the 

FTA regional office before grant 

approval. Program guidance for the 

Metropolitan Planning Program is found 

in FTA Circular C8100.1B, Program 

Guidance and Application Instructions 

for Metropolitan Planning Program 

Grants, dated October 25, 1996. 

3. Period of Availability 

The funds apportioned in this notice 

under the Metropolitan Planning 

Program will remain available to be 

obligated by FTA to recipients for three 

fiscal years following FY 2005. Any of 

these apportioned funds that remain 

unobligated at the close of business on 

September 30, 2008, will revert to FTA 

for reapportionment under the 

Metropolitan Planning Program. 

4. Other Program or Apportionment 

Related Information and Highlights 

Section VI of this document provides 

guidance and information specific to 

FTA planning programs, including the 

Metropolitan Planning Program. Please 

refer to that section for additional 

information relevant to this program. 

B. Urbanized Area Formula Program (49 

U.S.C. 5307) 

Section 5307 authorizes Federal 

capital and operating assistance for 

transit in urbanized areas (UZAs). An 

UZA is an incorporated area with a 

population of 50,000 or more that has 

been designated as such by the U.S. 

Census Bureau. The Urbanized Area 

Formula Program also supports 

planning, in addition to that funded 

under the Metropolitan Planning 

Program described above. Funding is 

apportioned directly to each UZA with 

a population of 200,000 or more, and to 

the State Governors for UZAs with 

populations between 50,000 and 

200,000. With a few exceptions, 

operating assistance is not an eligible 

expense for UZAs with populations 

200,000 or more. For more information 

about the Urbanized Area Formula 

Program contact Ken Johnson, Office of 

Resource Management and State 

Programs, at (202) 366–2053. 

1. Total Apportionments 

The 2005 Appropriations Act 

provides $3,593,195,773 to the 

Urbanized Area Formula Program (49 

U.S.C. 5307) after the across-the-board 

0.80 percent rescission. The total 

amount apportioned for the Urbanized 

Area Formula Program is 

$3,575,229,794, as shown in the table 

below, after the deduction for oversight 

(authorized by 49 U.S.C. 5327). 

URBANIZED AREA FORMULA PROGRAM

Appropriation .................. $3,622,173,158 

Rescission ...................... (28,977,385) 

Oversight Deduction ....... (17,965,979) 

Total Apportioned ........ 3,575,229,794

Table 3 displays the amounts 

apportioned under the Urbanized Area 

Formula Program.1 Also displayed in 

Table 3 is the amount currently 

available for obligation, in accordance 

with the Surface Transportation 

Extension Act of 2004, Part V. Table 4 

contains the apportionment formula for 

the Urbanized Area Formula Program. 

Additional funds are appropriated for 

the Alaska Railroad for improvements to 

its passenger operations. The total 

amount allocated to the Alaska Railroad 

is $4,787,094 after deduction for the 

0.80 percent rescission and oversight, as 

shown in the table below. 

ALASKA RAILROAD SET-ASIDE

Appropriation .................. $4,849,950 

Rescission ...................... (38,800) 

Oversight Deduction ....... (24,056) 

Total Allocated ............ 4,787,094

Of this amount $3,233,450 is currently 

available for obligation, in accordance 

with the Surface Transportation 

Extension Act of 2004, Part V. Funding 

for the Alaska Railroad is based on the 

set-aside amount specified in the 2005 

Appropriations Act. This is in lieu of 

apportioning funds for the Anchorage, 

AK UZA, under the fixed guideway tier 

of the section 5307 formula using data 

attributable to the Alaska Railroad 

Corporation. 

2. Program Requirements 

Urbanized Area Formula Program 

funds are apportioned based on 

legislative formulas. Different formulas 

are used for UZAs with populations of 

200,000 or more and UZAs with 

populations less than 200,000. For 

UZAs 50,000 to 199,999 in population, 

the formula is based simply 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, fixed 

guideway revenue vehicle miles, and 

fixed guideway route miles, as well as 

population and population density. See 

Table 4 for more detailed information 

about the formulas. Program guidance 

for the Urbanized Area Formula 

Program is found in FTA Circular 

C9030.1C, Urbanized Area Formula 

Program: Grant Application 

Instructions, dated October 1, 1998. 

There are several important program 

requirements we highlight below. 

78208 Federal Register / Vol. 69, No. 249 / Wednesday, December 29, 2004 / Notices 

a. Urbanized Area Formula 

Apportionments to Governors 

For UZAs with populations less than 

200,000 (small UZAs), the funds are 

apportioned to the Governor of each 

State for distribution. The total 

Urbanized Area Formula apportionment 

for the Governor and the amount 

currently available for obligation, in 

accordance with the Surface 

Transportation Extension Act of 2004, 

Part V, is shown in Table 3. This table 

also shows the apportionment amount 

attributable to each small UZA within 

the State. The Governor may determine 

the allocation of funds among the small 

UZAs with the following exception (as 

further discussed in item e below): 

funds attributed to a small UZA that is 

located within the planning boundaries 

of a Transportation Management Area 

(TMA) must be obligated to that small 

UZA. 

b. Transit Enhancements 

For UZAs with populations 200,000 

or more, TEA–21 establishes that a 

minimum of one-percent of a UZA’s 

Urbanized Area Formula apportionment 

be spent for transit projects and project 

elements that qualify as transit 

enhancements. One percent of the 

Urbanized Area Formula Program 

apportionment in each UZA with a 

population of 200,000 or more has been 

set aside specifically for transit 

enhancement expenditures. Table 3 

shows the amount set aside for 

enhancements in these areas. 

The term ‘‘transit enhancement’’

includes projects or project elements 

that are designed to enhance mass 

transportation service or use and are 

physically or functionally related to 

transit facilities. Eligible enhancements 

include the following: (1) Historic 

preservation, rehabilitation, and 

operation of historic mass transportation 

buildings, structures, and facilities 

(including historic bus and railroad 

facilities); (2) bus shelters; (3) 

landscaping and other scenic 

beautification, including tables, 

benches, trash receptacles, and street 

lights; (4) public art; (5) pedestrian 

access and walkways; (6) bicycle access, 

including bicycle storage facilities and 

installing equipment for transporting 

bicycles on mass transportation 

vehicles; (7) transit connections to parks 

within the recipient’s transit service 

area; (8) signage; and (9) enhanced 

access for persons with disabilities to 

mass transportation. 

It is the responsibility of the MPO to 

determine how the one-percent for 

transit enhancements will be allotted to 

transit projects. The one percent 

minimum requirement does not 

preclude more than one percent being 

expended in a UZA for transit 

enhancements. However, items that are 

only eligible as enhancements—in 

particular, operating costs for historic 

facilities—may be assisted only within 

the one-percent funding level. 

The recipient must submit a report to 

the appropriate FTA regional office 

listing the projects or elements of 

projects carried out with those funds 

during the previous fiscal year and the 

amount awarded. The report must be 

submitted with the Federal fiscal year’s 

final quarterly progress report in TEAMWeb. The report should include the 

following elements: (a) Grantee name, 

(b) UZA name and number, (c) FTA 

project number, (d) transit enhancement 

category, (e) brief description of 

enhancement and progress towards 

project implementation, (f) activity line 

item code from the approved budget, 

and (g) amount awarded by FTA for the 

enhancement. The list of transit 

enhancement categories and activity 

line item codes may be found in FTA 

Circular 9030.1C, Urbanized Area 

Formula Program: Grant Application 

Instructions, dated October 1, 1998, and 

on TEAM-Web, which can be accessed 

at http://FTATEAMWeb.fta.dot.gov. 

c. Transit Security Projects 

All recipients of Urbanized Area 

Formula funds are required to expend at 

least one percent of the amount the 

grantee receives each fiscal year on 

‘‘mass transit security projects.’’ For 

applicants serving a UZA with a 

population of 200,000 or more, only 

capital security projects may be funded 

with the one percent. 

d. FY 2005 Operating Assistance 

There are three transit provisions that 

allow FY 2005 Urbanized Area Formula 

funds to be used for operating assistance 

in a UZA with a population of 200,000 

or more: (1) Language in Section 3027(c) 

of TEA–21, as amended, which allows 

the use of funds for operating assistance 

to certain recipients of section 5307 

funds that provide service exclusively 

for elderly persons and persons with 

disabilities and operate 20 or fewer 

vehicles; (2) the provision of 5307(b), as 

amended, and extended by Section 8(n) 

of the Surface Transportation Extension 

Act of 2004, Part V, which allows transit 

systems in UZAs that crossed the 

200,000 population threshold for the 

first time as a result of the 2000 Census, 

the flexibility to use section 5307 funds 

for operating assistance; and (3) the 

provision of 5307(b), as amended, and 

extended by Section 8(n) of the Surface 

Transportation Extension Act of 2004, 

Part V, which allows funds apportioned 

to a 2000 Census UZA with a 

population of 200,000 or more to be 

used for operating assistance in that 

portion of the UZA that was 

nonurbanized under the 1990 Census. 

Each provision has its own 

requirements, which are described 

separately below. 

(1) Section 3027(c)(3) of TEA–21, as 

previously amended, provides an 

exception to the restriction on the use 

of operating assistance in a UZA with a 

population of 200,000 or more, by 

allowing transit providers/grantees that 

provide service exclusively to elderly 

persons and persons with disabilities 

and that operate 20 or fewer vehicles to 

use section 5307 funds apportioned to 

the UZA for operating assistance. The 

total amount of funding made available 

for this purpose under Section 

3027(c)(3) of TEA–21, as amended, is 

$1.4 million. Transit providers/grantees 

eligible under this provision have 

already been identified and notified. 

(2) The Surface Transportation 

Extension Act of 2004, Part V, continues 

the provisions of Public Law 107–232, 

which allow transit systems in UZAs 

that, for the first time, exceeded 200,000 

population according to the 2000 

Census to use section 5307 funds for 

operating assistance. A list of the 

eligible 2000 Census UZAs (with 

populations 200,000 or more ) that may 

use FY 2005 funds for operating 

assistance is provided in Table 6. The 

table also shows the maximum amount 

of the area’s FY 2005 apportionment 

that may be used for operating 

assistance, and the amount of an area’s 

apportionment currently available for 

obligation as operating assistance. The 

use of the UZA funds for operating 

assistance by these areas is restricted to 

projects carried out within the 

geographical or service area boundary of 

the affected 1990 Census small UZA. 

(3) In addition, the Surface 

Transportation Extension Act of 2004, 

Part V, permits the continued use of 

Urbanized Area Formula Program 

(section 5307) funds for operating 

assistance in certain UZAs with a 

population of at least 200,000 when the 

qualifying UZA includes a portion that 

was not designated as a UZA under the 

1990 Census and received assistance 

under section 5311 in FY 2002. The 

provision further stipulates that the 

portion not designated a UZA under the 

1990 Census shall receive an amount of 

funds under section 5307 that is not less 

than the amount the portion received 

under section 5311 in FY 2002. Affected 

areas are not identified in Table 6. A 

grant applicant for an area eligible to 

receive operating assistance under this 

Federal Register / Vol. 69, No. 249 / Wednesday, December 29, 2004 / Notices 78209 

provision that wants to make use of this 

provision must so indicate in the grant 

application. The application must 

identify the previously nonurbanized 

portion of the UZA that qualifies (i.e., 

that portion of the area that was not 

designated as urbanized under the 1990 

Census and received assistance under 

section 5311). Contact the appropriate 

FTA regional office for additional 

information and guidance if you intend 

to make use of this provision. 

Unless one of the exceptions noted 

above applies, the use of FY 2005 

Urbanized Area Formula Program funds 

for operating assistance is available only 

to small UZAs (those with populations 

less than 200,000). For these areas, there 

is no limitation on the amount of the 

State apportionment that may be used 

for operating assistance, and the 

Federal/local share ratio is 50/50. 

e. Designated Transportation 

Management Areas (TMA) 

Guidance for setting the boundaries of 

TMAs is contained in the joint 

transportation planning regulations 

codified at 23 CFR part 450 and 49 CFR 

part 613. In some cases, the TMA 

planning boundaries established by the 

MPO for the designated TMA includes 

one or more small UZAs. In addition, 

one small UZA (Santa Barbara, CA) has 

been designated as a TMA. In either of 

these situations, the Governor cannot 

allocate ‘‘Governor’s Apportionment’’

funds attributed to the small UZAs to 

other areas; that is the Governor only 

has discretion to allocate Governor’s 

Apportionment funds attributable to 

areas that are outside of designated 

TMA planning boundaries. 

The list of small UZAs included 

within the planning boundaries of 

designated TMAs is provided in the 

table below. 

Designated TMA Small urbanized area included in TMA planning boundary 

Albany, NY ............................................................................... Saratoga Springs, NY. 

Houston, TX ............................................................................. Galveston, TX; Lake Jackson-Angleton, TX; Texas City, TX; The Woodlands, TX. 

Jacksonville, FL ........................................................................ St. Augustine, FL. 

Orlando, FL .............................................................................. Kissimmee, FL. 

Palm Bay-Melbourne, FL ......................................................... Titusville, FL. 

Philadelphia, PA–NJ–DE–MD .................................................. Pottstown, PA. 

Pittsburgh, PA .......................................................................... Monessen, PA; Weirton, WV-Steubenville, OH–PA (PA portion); Uniontown-Connellsville, PA. 

Seattle, WA .............................................................................. Bremerton, WA. 

Washington, DC–VA–MD ......................................................... Frederick, MD. 

The MPO must notify the Associate 

Administrator for Program Management, 

Federal Transit Administration, 400 

Seventh Street, SW., Washington, DC 

20590, in writing, no later than July 1 

of each year, to identify any small UZA 

within the planning boundaries of a 

TMA. 

f. Urbanized Area Formula Funds Used 

for Highway Purposes 

Funds apportioned to a TMA are 

eligible for transfer to FHWA for 

highway projects. However, before 

funds can be transferred, the following 

conditions must be met: (1) Such use 

must be approved by the MPO in 

writing, after appropriate notice and 

opportunity for comment and appeal are 

provided to affected transit providers; 

(2) in the determination of the Secretary, 

such funds are not needed for 

investments required by the Americans 

with Disabilities Act of 1990 (ADA); and 

(3) the MPO determines that local 

transit needs are being addressed. 

The MPO should notify FTA of its 

intent to use FTA funds for highway 

purposes, as prescribed in section V.D, 

below. Urbanized Area Formula funds 

that are designated by the MPO for 

highway projects will be transferred to 

and administered by FHWA. 

3. Period of Availability 

The Urbanized Area Formula Program 

funds apportioned in this notice, as well 

as the set-aside for the Alaska Railroad, 

will remain available to be obligated by 

FTA to recipients until September 30, 

2008. Any of these apportioned funds 

that remain unobligated at the close of 

business on September 30, 2008, will 

revert to FTA for reapportionment 

under the Urbanized Area Formula 

Program. 

4. Data Used to Generate 

Apportionments and Dollar Unit Values 

Population and population density 

statistics from the 2000 Census and 

(when applicable) validated mileage and 

transit service data from transit 

providers’ 2003 National Transit 

Database (NTD) Report Year were used 

to calculate a UZA’s FY 2005 Urbanized 

Area Formula apportionment. 

We have 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. The dollar unit values 

for FY 2005 are displayed in Table 5. To 

replicate a UZA’s apportionment, 

multiply the dollar unit value by the 

appropriate formula factor, i.e., the 

population, population × (times) 

population density, and (when 

applicable) data from the NTD (i.e., 

route miles, vehicle revenue miles, 

passenger miles, and operating cost.) 

C. Clean Fuels Formula Program 

(49.U.S.C. 5308) 

FTA’s authorizing legislation, TEA–

21, established the Clean Fuels Formula 

Grant Program to support the goals of 

the Clean Air Act. This program has a 

two-fold purpose. First, the program is 

intended to assist non-attainment and 

maintenance areas in achieving or 

maintaining air quality attainment 

status. Second, the program seeks to 

support emerging clean fuel and 

advanced propulsion technologies for 

transit buses, and to create markets for 

these technologies. No funds were 

provided for this program in the 2005 

Appropriations Act. For more 

information about this program contact 

Nancy Grubb, Office of Resource 

Management and State Programs, at 

(202) 366–2053. 

D. Capital Investment Program (49 

U.S.C. 5309)—Fixed Guideway 

Modernization 

This program provides capital 

assistance for the modernization of 

existing fixed guideway systems. Funds 

are allocated by a statutory formula to 

UZAs with fixed guideway systems that 

have been in operation for at least seven 

years. A ‘‘fixed guideway’’ refers to any 

transit service that uses exclusive or 

controlled rights-of-way or rails, entirely 

or in part. The term includes heavy rail, 

commuter rail, light rail, monorail, 

trolleybus, aerial tramway, inclined 

plane, cable car, automated guideway 

78210 Federal Register / Vol. 69, No. 249 / Wednesday, December 29, 2004 / Notices 

transit, ferryboats, that portion of motor 

bus service operated on exclusive or 

controlled rights-of-way, and highoccupancy-vehicle (HOV) lanes. For 

more information about Fixed 

Guideway Modernization contact Ken 

Johnson, Office of Resource 

Management and State Programs, at 

(202) 366–2053. 

1. Total Apportionments 

The 2005 Appropriations Act 

provides $1,204,684,800 to the Fixed 

Guideway Modernization Program after 

the across-the-board 0.80 percent 

rescission. The total amount 

apportioned for the Fixed Guideway 

Modernization Program is 

$1,192,637,952, after the deduction for 

oversight, as shown in the table below. 

FIXED GUIDEWAY MODERNIZATION

PROGRAM

Appropriation .................. $1,214,400,000

Rescission ...................... (9,715,200) 

Oversight Deduction ....... (12,046,848) 

Total Apportioned ........ 1,192,637,952

The FY 2005 Fixed Guideway 

Modernization Program apportionments 

to eligible areas are displayed in Table 

7. Also Displayed in Table 7 is the 

amount of each area’s apportionment 

that is currently available for obligation, 

in accordance with the Surface 

Transportation Extension Act of 2004, 

Part V. 

2. Program Requirements 

Fixed Guideway Modernization funds 

must be used for capital projects to 

maintain, modernize, or improve fixed 

guideway systems. Eligible UZAs (those 

with a population of at least 200,000) 

with fixed guideway systems that are at 

least seven years old are entitled to 

receive Fixed Guideway Modernization 

funds. A threshold level of more than 

one mile of fixed guideway is required 

in order to receive Fixed Guideway 

Modernization funds. Therefore, UZAs 

reporting one mile or less of fixed 

guideway mileage under the NTD are 

not included. Program guidance for 

Fixed Guideway Modernization is found 

in FTA Circular C9300.1A, Capital 

Program: Grant Application 

Instructions, dated October 1, 1998. 

3. Period of Availability 

The funds apportioned in this notice 

under the Fixed Guideway 

Modernization Program will remain 

available to be obligated by FTA to 

recipients for three fiscal years 

following FY 2005. Any of these 

apportioned funds that remain 

unobligated at the close of business on 

September 30, 2008, will revert to FTA 

for reapportionment under the Fixed 

Guideway Modernization Program. 

4. Other Program or Apportionment 

Related Information and Highlights 

The formula for allocating the Fixed 

Guideway Modernization funds 

contains seven tiers. The apportionment 

of funding under the first four tiers is 

based on amounts specified in law and/ 

or NTD data used to apportion funds in 

FY 1997. Funding under the last three 

tiers is apportioned based on the latest 

available data on route miles and 

revenue vehicle miles on segments at 

least seven years old, as reported to the 

NTD. Table 8 contains information 

regarding the Fixed Guideway 

Modernization apportionment formula. 

Dollar unit values for the formula 

factors used in the Fixed Guideway 

Modernization Program are displayed in 

Table 5. To replicate an area’s 

apportionment, multiply the dollar unit 

value by the appropriate formula factor, 

i.e., route miles and revenue vehicle 

miles. 

E. Capital Investment Program (49 

U.S.C. 5309)—Bus and Bus-Related 

Facilities 

This program provides capital 

assistance for new and replacement 

buses and related facilities. Funds are 

allocated on a discretionary basis. 

Eligible purposes are acquisition of 

buses for fleet and service expansion, 

bus maintenance and administrative 

facilities, transfer facilities, bus malls, 

transportation centers, intermodal 

terminals, park-and-ride stations, 

acquisition of replacement vehicles, bus 

rebuilds, bus preventive maintenance, 

passenger amenities such as passenger 

shelters and bus stop signs, accessory 

and miscellaneous equipment such as 

mobile radio units, supervisory 

vehicles, fare boxes, computers, and 

shop and garage equipment. For more 

information about Bus and Bus-Related 

Facilities contact Ryan Hammon, Office 

of Resource Management and State 

Programs, at (202) 366–2053. 

1. Total Allocations 

The 2005 Appropriations Act 

provides $719,200,000 for the purchase 

of buses, bus-related equipment and 

paratransit vehicles, and for the 

construction of bus-related facilities, 

after the across-the-board 0.80 percent 

rescission. This amount includes funds 

transferred from the Clean Fuels 

Program as described below. The total 

amount allocated for Bus and BusRelated Facilities is $712,008,000, as 

shown in the following table. 

BUS AND BUS-RELATED

Appropriation .................. $725,000,000 

Rescission ...................... (5,800,000) 

Oversight Deduction ....... (7,192,000) 

Total Allocation ........... 712,008,000

* Includes $50 million transferred from Clean 

Fuels. 

TEA–21 authorized a $100 million 

Clean Fuels Formula Program under 49 

U.S.C. 5308 (described in section IV.C 

above). The program is authorized to be 

funded with $50 million from the Bus 

and Bus-Related Facilities category of 

the Capital Investment Program and $50 

million from the Formula Grants 

Programs. However, the 2005 

Appropriations Act directs FTA to 

transfer the Clean Fuels formula portion 

to, and merge it with, funding provided 

for the Bus and Bus-Related category of 

the Capital Investment Program. The 

$100 million from the Clean Fuels 

program, both capital and formula 

portion, is included in the total 

appropriations amount in the Bus and 

Bus-Related Facilities table above and 

the 0.80 percent across-the-board 

rescission has been applied to the entire 

amount. In FY 2005, Congress did not 

make available for bus and bus-related 

facilities any funds reallocated from 

projects in previous appropriations acts. 

Instead, prior year reallocated bus and 

bus facilities funds were made available 

to the New Starts program. 

Table 9 displays the allocation of the 

FY 2005 Bus and Bus-Related Facilities 

funds by State and project. Each project 

allocation has been adjusted 

proportionally from the amount 

designated in the conference report 

accompanying the 2005 Appropriations 

Act to account for the across the board 

rescission, the amount deducted for 

oversight, and the shortfall between the 

amount designated for projects and the 

amount made available to the program. 

Also displayed in Table 9 is the amount 

of each Bus and Bus-Related Facilities 

project allocation that is currently 

available for obligation, in accordance 

with the Surface Transportation 

Extension Act of 2004, Part V. 

2. Program Requirements 

The Conference Report to FTA’s 2005 

Appropriation Act lists 440 discrete 

projects for funding under Bus and BusRelated Facilities. The 2005 

Appropriations Act includes Section 

125 that contains language making these 

designated projects eligible under the 

program ‘‘notwithstanding any other 

provision of law.’’ The Consolidated 

Appropriations Act 2004, included a 

similar provision in Section 547. This 

Federal Register / Vol. 69, No. 249 / Wednesday, December 29, 2004 / Notices 78211 

language makes the bus projects 

designated in FYs 2005 and 2004 

eligible for the designated purpose. 

However, if you want to apply to use 

funds designated under the bus program 

in any year for project activities outside 

the scope of the project designation 

included in report language, you must 

submit your request for reprogramming 

to the House and Senate Committees on 

Appropriations for resolution. FTA will 

not reprogram Congressionallydesignated projects without direction 

from the Appropriations Committees. 

Unless the law provides otherwise, 

projects designated prior to FY 2004 

must conform to the eligibility 

requirements of the Bus and BusRelated Facilities program. Requests for 

reprogramming of funding for projects 

designated prior to FY 2004 that are 

found not to be consistent with the 

statutory intent of the program should 

also be directed to the House and Senate 

Committees on Appropriations. Program 

guidance for Bus and Bus-Related 

Facilities is found in FTA Circular 

C9300.1A, Capital Program: Grant 

Application Instructions, dated October 

1, 1998. 

3. Period of Availability 

The 2005 Appropriations Act 

includes a provision requiring that FY 

2005 Bus and Bus-Related Facilities 

funds not obligated for their original 

purpose as of September 30, 2007, be 

made available for other projects under 

49 U.S.C. 5309. Certain Bus and BusRelated Facilities projects identified in 

previous years but not obligated were 

extended for one year in the reports 

accompanying the 2005 Appropriations 

Act. These project funds will lapse 

September 30, 2005, if they are not 

obligated in a grant before then. A list 

of these extended projects included in 

the Conference report and the amounts 

that remain unobligated as of September 

30, 2004, can be found in Table 10. 

However, two projects in the Conference 

report are not included, pending 

clarification of Congressional intent to 

reallocate the balance to the New Starts 

program. FTA is seeking clarification 

from Congress regarding Congressional 

intent to extend other projects that are 

listed in the House or Senate report but 

not listed in the Conference Report. 

4. Other Program or Allocation Related 

Information and Highlights 

Prior year unobligated balances for 

Bus and Bus-Related allocations in the 

amount of $791,171,631 remain 

available for obligation in FY 2005. This 

includes $758,522,868 in fiscal years 

2003 and 2004 unobligated allocations, 

and $32,648,763 for fiscal years 1998–

2002 unobligated allocations that were 

extended in the FY 2005 Conference 

Report. These unobligated amounts are 

displayed in Table 10. Included with 

the FY 2004 carryover projects in Table 

10 is one project that was transferred 

from the Job Access and Reverse 

Commute (JARC) program to the Bus 

program by Section 531 of the 2005 

Appropriations Act. 

F. Capital Investment Program (49 

U.S.C. 5309)—New Starts 

The New Starts program provides 

funds for construction of new fixed 

guideway systems or extensions to 

existing fixed guideway systems. 

Eligible purposes are light rail, rapid rail 

(heavy rail), commuter rail, monorail, 

automated fixed guideway system (such 

as a ‘‘people mover’’), or a busway/high 

occupancy vehicle (HOV) facility, Bus 

Rapid Transit that is fixed guideway, or 

an extension of any of these. Projects 

become candidates for funding under 

this program by successfully completing 

the appropriate steps in the major 

capital investment planning and project 

development process. Major new fixed 

guideway projects, or extensions to 

existing systems, financed with New 

Starts funds typically receive these 

funds 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. For more information about 

New Starts contact Sean Libberton, 

Office of Planning and Environment, at 

(202) 366–4033. 

1. Total Allocations 

The 2005 Appropriations Act 

provides $1,437,829,600 to New Starts 

after the across-the-board 0.80 percent 

rescission. The total amount allocated 

for New Starts is $1,449,596,996, as 

shown in the table below. 

NEW STARTS

Appropriation .................. $1,449,425,000 

Rescission ...................... (11,595,400) 

Oversight Deduction ....... (14,378,296) 

Reallocated Prior Year 

Funds .......................... a/26,145,692 

Total Allocation ........... 1,449,596,996 

a/ Includes reallocated prior year New Starts 

and Bus funds. 

The amount reallocated to New Starts 

includes $3,591,548 in FY 2001 funds 

and $22,554,144 in FY 2002 funds 

under the Capital Investment Grants 

account, in accordance with language in 

the 2005 Appropriations Act. FTA is in 

the process of clarifying with Congress 

the projects from which these funds are 

to be derived and we will publish the 

complete list as soon as possible. 

The final allocation for each New 

Starts project is listed in Table 11. Each 

project allocation has been adjusted 

proportionally from the amount 

designated in the 2005 Appropriations 

Act to account for the across-the-board 

rescission and the amount deducted for 

oversight. Table 11 also shows 

$11,016,268 as unallocated. Following 

notification to Congress, FTA will 

reallocate these funds among certain 

projects on the list. Also displayed in 

Table 11 is the amount of each New 

Starts project allocation that is currently 

available for obligation, in accordance 

with the Surface Transportation 

Extension Act of 2004, Part V. 

2. Program Requirements 

Because New Starts projects are 

earmarked in law rather than report 

language, reprogramming for a purpose 

other than that specified must also 

occur in law. New Starts projects are 

subject to a complex set of approvals 

related to planning and project 

development set forth in 49 CFR Part 

611. Program guidance for New Starts is 

found in FTA Circular C9300.1A, 

Capital Program: Grant Application 

Instructions, dated October 1, 1998; and 

C5200.1A, Full Funding Grant 

Agreement Guidance, dated December 

5, 2002. 

3. Period of Availability 

The 2005 Appropriations Act 

includes a provision requiring that FY 

2005 New Starts and Bus and BusRelated funds not obligated for their 

original purpose as of September 30, 

2007, shall be made available for other 

projects under 49 U.S.C. 5309. 

Capital Investment Program funds for 

New Starts projects identified as having 

been extended for one year in the FY 

2005 Conference Report accompanying 

the 2005 Appropriations Act will lapse 

September 30, 2005. A list of these 

extended projects and the amounts that 

remained unobligated as of September 

30, 2004, appears in Table 12. 

4. Other Program or Apportionment 

Related Information and Highlights 

Prior year unobligated allocations for 

New Starts in the amount of 

$479,244,898 remain available for 

obligation in FY 2005. This amount 

includes $408,126,399 in fiscal years 

2003 and 2004 unobligated allocations, 

and $71,118,499 for fiscal years 2000, 

2001 and 2002 unobligated allocations 

that are extended in the FY 2005 

Conference Report. These unobligated 

amounts are displayed in Table 12. 

Information on pre-award authority for 

78212 Federal Register / Vol. 69, No. 249 / Wednesday, December 29, 2004 / Notices 

New Starts projects is detailed in 

section V below. 

G. Elderly and Persons With Disabilities 

Program (49 U.S.C. 5310) 

This program (49 U.S.C. 5310) 

provides formula funding to States for 

capital projects to assist private 

nonprofit groups in meeting the 

transportation needs of the elderly and 

persons with disabilities when the 

public transportation service provided 

is unavailable, insufficient, or 

inappropriate to meet these needs. The 

State (or State-designated agency) 

administers the Section 5310 program. 

The State’s responsibilities include: 

Notifying eligible local entities of 

funding availability; developing project 

selection criteria; determining applicant 

eligibility; selecting projects for funding; 

and ensuring that all subrecipients 

comply with Federal requirements. 

Eligible nonprofit organizations or 

public bodies must apply directly to the 

designated State agency for assistance 

under this program. For more 

information about the Elderly and 

Persons with Disabilities Program 

contact Sue Masselink, Office of 

Resource Management and State 

Programs, at (202) 366–2053. 

1. Total Apportionments 

The 2005 Appropriations Act 

provides $94,526,689 to the Elderly and 

Persons with Disabilities Program (49 

U.S.C. 5310) after the across-the-board 

0.80 percent rescission, which is the 

total amount apportioned for the 

program, as shown in the table below. 

ELDERLY AND PERSONS WITH

DISABILITIES PROGRAM

Appropriation .................. 95,289,001

Rescission ...................... (762,312) 

Total Apportioned ........ 94,526,689

The FY 2005 Elderly and Persons 

with Disabilities Program 

apportionments to the States are 

displayed in Table 13. Also displayed in 

Table 13 is the amount of a State’s 

apportionment currently available for 

obligation, in accordance with the 

Surface Transportation Extension Act of 

2004, Part V. 

FTA allocates funds to the States by 

an administrative formula consisting of 

a $125,000 floor for each State ($50,000 

for smaller territories) with the balance 

allocated based on 2000 Census 

population data for persons aged 65 and 

over and for persons with disabilities. 

2. Program Requirements 

The funds provide capital assistance 

for transportation for elderly persons 

and persons with disabilities. Eligible 

capital expenses may include, at the 

option of the recipient, the acquisition 

of transportation services by a contract, 

lease, or other arrangement. 

While the assistance is intended 

primarily for private non-profit 

organizations, public bodies that 

coordinate services for the elderly and 

persons with disabilities, or any public 

body that certifies to the State that there 

are no non-profit organizations in the 

area that are readily available to carry 

out the service, may receive these funds. 

Program guidance for the Elderly and 

Persons with Disabilities Program is 

found in FTA Circular C9070.1E, The 

Elderly and Persons with Disabilities 

Program Guidance and Application 

Instructions, dated October 1, 1998. 

3. Period of Availability 

Funds allocated to States under the 

Elderly and Persons with Disabilities 

Program in this notice must be obligated 

by September 30, 2005. Any funding 

that remains unobligated as of that date 

will revert to FTA for reapportionment 

among the States under the Elderly and 

Persons with Disabilities Program. FTA 

extended the period of availability for 

FY 2004 funds through March 31, 2005, 

because full year funding was not 

available for obligation until late in the 

fiscal year. If TEA–21 has not been 

extended through the end of FY 2005 

when the current extension through 

May 31, 2005 expires, FTA will 

consider extending the availability of 

FY 2005 Section 5310 funds. 

4. Other Program or Apportionment 

Related Information and Highlights 

These funds may be transferred by the 

Governor to supplement Urbanized Area 

Formula or Nonurbanized Area Formula 

capital funds during the last 90 days of 

the fiscal year. 

H. Nonurbanized Area Formula 

Program (49 U.S.C. 5311) 

This program provides formula 

funding to States for the purpose of 

supporting public transportation in 

areas of less than 50,000 population. 

Funding may be used for capital, 

operating, State administration, and 

project administration expenses. Each 

State prepares an annual program of 

projects, which must provide for fair 

and equitable distribution of funds 

within the States, including Indian 

reservations, and must provide for 

maximum feasible coordination with 

transportation services assisted by other 

Federal sources. For more information 

about the Nonurbanized Area Formula 

Program contact Lorna Wilson, Office of 

Resource Management and State 

Programs, at (202) 366–2053. 

1. Total Apportionments 

The 2005 Appropriations Act 

provides $250,889,588 to the 

Nonurbanized Area Formula Program 

(49 U.S.C. 5311) after across-the-board 

0.80 percent rescission. The total 

amount apportioned for the 

Nonurbanized Area Formula Program is 

$249,635,140, after the deduction for 

oversight, as shown in the table below. 

NONURBANIZED AREA FORMULA

PROGRAM

Appropriation .................. 252,912,891

Rescission ...................... (2,023,303)

Oversight Deduction ....... (1,254,448) 

Total Apportioned ........ 249,635,140

The FY 2005 Nonurbanized Area 

Formula apportionments to the States 

are displayed in Table 14. Also 

displayed in Table 14 is the amount of 

each State’s apportionment that is 

currently available for obligation, in 

accordance with the Surface 

Transportation Extension Act of 2004, 

Part V. 

2. Program Requirements 

The Nonurbanized Area Formula 

Program provides capital, operating and 

administrative assistance for areas 

under 50,000 in population. Funds are 

apportioned in proportion to each 

State’s nonurbanized population. Each 

State must spend no less than 15 

percent of its FY 2005 Nonurbanized 

Area Formula apportionment for the 

development and support of intercity 

bus transportation, unless the Governor 

certifies to the Secretary that the 

intercity bus service needs of the State 

are being adequately met. Program 

guidance for the Nonurbanized Area 

Formula Program is found in C9040.1E, 

Nonurbanized Area Formula Program 

Guidance and Grant Application 

Instructions, dated October 1, 1998. 

3. Period of Availability 

Funds apportioned to nonurbanized 

areas under the Nonurbanized Area 

Formula Program will remain available 

for two fiscal years following FY 2005. 

Any funds that remain unobligated at 

the close of business on September 30, 

2007, will revert to FTA for allocation 

among the States under the 

Nonurbanized Area Formula Program. 

Federal Register / Vol. 69, No. 249 / Wednesday, December 29, 2004 / Notices 78213 

4. Other Program or Apportionment 

Related Information and Highlights 

Given the ongoing changes in the 

intercity bus industry, FTA encourages 

States to consult with intercity bus 

operators and communities affected by 

loss of service when evaluating the 

intercity bus needs of the State. 

The dollar unit value shown for the 

Nonurbanized Area Formula Program in 

Table 5 of this notice may be multiplied 

by the States nonurbanized population 

to replicate FTA’s calculation of each 

State’s apportionment. 

I. Rural Transit Assistance Program (49 

U.S.C. 5311(b)(2)) 

This program provides funding to 

assist in the design and implementation 

of training and technical assistance 

projects, research, and other support 

services tailored to meet the needs of 

transit operators in nonurbanized areas. 

For more information about Rural 

Transit Assistance Program (RTAP) 

contact Lorna Wilson, Office of 

Resource Management and State 

Programs, at (202) 366–2053. 

1. Total Apportionments 

The 2005 Appropriations Act 

provides $5,208,000 to RTAP (49 U.S.C. 

5311(b)(2)) after the across-the-board 

0.80 percent rescission, which is the 

total amount apportioned for RTAP, as 

shown in the table below. 

EMSP; 

Appropriation .................. 5,250,000

Rescission ...................... (42,000) 

Total Apportioned .... 5,208,000

The FY 2005 RTAP allocations to the 

States are displayed in Table 14. Also 

displayed in Table 14 is the amount of 

each State’s allocation that is currently 

available for obligation, in accordance 

with the Surface Transportation 

Extension Act of 2004, Part V. Funds are 

allocated to the States by an 

administrative formula consisting of a 

$65,000 floor for each State ($10,000 for 

territories), with the balance allocated 

based on nonurbanized population in 

the 2000 Census. 

2. Program Requirements 

The funds are allocated to the States 

to undertake research, training, 

technical assistance, and other support 

services to meet the needs of transit 

operators in nonurbanized areas. These 

funds are to be used in conjunction with 

a State’s administration of the 

Nonurbanized Area Formula Program. 

3. Period of Availability 

Funds apportioned to nonurbanized 

areas under RTAP will remain available 

for two fiscal years following FY 2005. 

Any funds that remain unobligated at 

the close of business on September 30, 

2007, will revert to FTA for allocation 

among the States under the RTAP. 

4. Other Program or Apportionment 

Related Information and Highlights 

FTA also supports RTAP activities at 

the national level with the National 

Planning and Research Program (NPRP). 

The National RTAP activities support 

the States in their provision of training 

and technical assistance. Congress did 

not designate any NPRP funds for the 

National RTAP in the Conference Report 

accompanying the Consolidated 

Appropriations Act, 2005. FTA will, 

however, consider the National RTAP 

among projects to be funded from the 

limited available NPRP funds. 

J. Statewide Planning and Research 

Program (49 U.S.C. 5313(b)) 

This program provides financial 

assistance to States for Statewide 

planning and other technical assistance 

activities (including supplementing the 

technical assistance program provided 

through the Metropolitan Planning 

Formula Program), planning support for 

nonurbanized areas, research, 

development and demonstration 

projects, fellowships for training in the 

public transportation field, university 

research, and human resource 

development. For more about the 

Statewide Planning and Research 

Program contact Candace Noonan, 

Program Manager, at (202) 366–1626. 

1. Total Apportionments 

The 2005 Appropriations Act 

provides $12,513,485 to the Statewide 

Planning and Research Program (49 

U.S.C. 5313(b)) after the across-theboard 0.80 percent rescission. The total 

amount apportioned for the Statewide 

Planning and Research Program (SPRP) 

is $12,659,599, as shown in the table 

below. 

STATEWIDE PLANNING AND RESEARCH

PROGRAM

Appropriation .................. 12,614,400

Rescission ...................... (100,915) 

Prior Year Funds Added 146,114 

Total Apportioned ........ 12,659,599

State apportionments for this program 

are displayed in Table 2. Also displayed 

in Table 2 is the amount of each State’s 

apportionment that is currently 

available for obligation, in accordance 

with the Surface Transportation 

Extension Act of 2004, Part V. Funds are 

allocated by a formula that is based on 

information received from the latest 

decennial census, and the State’s UZA 

population as compared to the UZA 

population of all States. However, a 

State must receive at least 0.5 percent of 

the amount apportioned under this 

program. 

2. Program Requirements 

Statewide Planning and Research 

funds are apportioned to States by 

statutory formula to provide funds for 

Statewide Planning and Research 

Programs. These funds may be used for 

a variety of purposes such as planning, 

technical studies and assistance, 

demonstrations, management training, 

and cooperative research. 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 Statewide Planning and Research 

Program is found in FTA Circular 

C8200.1, Program Guidance and 

Application Instructions for State 

Planning and Research Program Grants, 

dated December 27, 2001. 

3. Period of Availability 

The funds apportioned in this notice 

under the Statewide Planning and 

Research Program will remain available 

to be obligated by FTA to recipients for 

three fiscal years following FY 2005. 

Any of these apportioned funds that 

remain unobligated at the close of 

business on September 30, 2008, will 

revert to FTA for reapportionment 

under the program. 

4. Other Program or Apportionment 

Related Information and Highlights 

Section VI of this document provides 

various guidance and information 

specific to FTA planning programs, 

including the Statewide Planning and 

Research Program. Refer to that section 

for additional information relevant to 

this program. 

K. National Planning and Research 

Program (49 U.S.C. 5314) 

Through funding under this program, 

FTA seeks to deliver solutions that 

improve public transportation. FTA’s 

Strategic Research Goals are to increase 

transit ridership, improve capital and 

operating efficiencies, improve safety 

and emergency preparedness, and to 

protect the environment and promote 

energy independence. For more about 

the National Planning and Research 

Program contact Bruce Robinson, Office 

78214 Federal Register / Vol. 69, No. 249 / Wednesday, December 29, 2004 / Notices 

of Research, Demonstration and 

Innovation, at (202) 366–4209. 

1. Total Apportionments 

The 2005 Appropriations Act 

provides $37,200,000 for the National 

Planning and Research Program after the 

across-the-board 0.80 percent rescission. 

Of this amount $20,892,622 is allocated 

for specific activities, after applicable 

reductions for the Small Business 

Innovation Research program. 

NATIONAL PLANNING AND RESEARCH

PROGRAM

Appropriation .................. 37,500,000

Rescission ...................... (300,000)

Total Apportioned ........ 37,200,000

All research and research and 

development projects are subject to a 

2.6% reduction for the Small Business 

Innovative Research Program. This 

determination is made by FTA based on 

the proposed statement of work. The 

project allocations are listed in Table 15, 

along with the amount that is currently 

available for obligation, in accordance 

with the Surface Transportation 

Extension Act of 2004, Part V. 

2. Program Requirements 

Application Instructions and Program 

Management Guidelines are set forth in 

FTA Circular 6100.1C. Research projects 

must support FTA’s Strategic Research 

Goals and meet the Office of 

Management and Budget’s Research and 

Development Investment Criteria. All 

research recipients are required to work 

with FTA to develop approved 

Statements of Work and plans to 

evaluate research results before award. 

3. Period of Availability 

Funds are available until expended. 

4. Other Program or Apportionment 

Related Information and Highlights 

Funds not designated by Congress for 

specific projects and activities will be 

programmed by FTA based on national 

priorities. 

L. Job Access and Reverse Commute 

Program 

The Job Access and Reverse Commute 

(JARC) Program provides funding for 

transportation services designed to 

increase access to jobs and employmentrelated activities. Job Access projects are 

those that transport welfare recipients 

and low-income individuals, including 

economically disadvantaged persons 

with disabilities, in urban, suburban, or 

rural areas to and from jobs and 

activities related to their employment. 

Reverse Commute projects provide 

transportation services for the general 

public from urban, suburban, and rural 

areas to suburban employment 

opportunities. A total of up to 

$10,000,000 from the appropriation may 

be used for Reverse Commute Projects. 

For more information about the JARC 

program contact Gregory D. Brown, 

Office of Resource Management and 

States Program, at (202) 366–2053. 

1. Total Apportionments 

The 2005 Appropriations Act 

provides $124,000,000 for the Job 

Access and Reverse Commute (JARC) 

Program after the across-the-board 0.80 

percent rescission. The total amount 

allocated to JARC projects is 

$123,702,400, as shown in the table 

below. 

JOB ACCESS AND REVERSE COMMUTE

Appropriation ........................ $125,000,000 

Rescission ............................ (1,000,000 ) 

Tech. Asst. Takedown .......... (297,600 ) 

Total Allocation ................. 123,702,400 

JARC project allocations designated in 

the Conference Report are included in 

this notice as Table 16. The amounts 

designated in the report have been 

adjusted to reflect the rescission, and 

the $297,600 set-aside for technical 

assistance and evaluation of the 

program. 

2. Program Requirements 

Although TEA–21 requires that JARC 

project selections be made through a 

national competition based on 

statutorily specified criteria, the 2005 

Appropriations Act overrides the 

requirement for competitive selection by 

directing FTA to award grants for the 

JARC designations included in the 

Conference report language upon receipt 

of an application. The Federal share for 

JARC projects, both capital and 

operating assistance, is 50 percent of net 

project cost. Planning is not an eligible 

activity. 

Unless statutorily directed otherwise, 

FTA will honor the discretionary project 

designations included in Conference 

Report language for JARC, to the extent 

that the projects meet the statutory 

intent of the program. Section 125 of the 

2005 Appropriations Act, made the 

JARC funds designated to projects in FY 

2005 available upon FTA’s receipt of an 

application. Section 547 in the 

Consolidated Appropriations Act, 2004, 

provided likewise for JARC projects 

designated in FY 2004. Requests for 

reprogramming of funding must be 

directed to the House and Senate 

Committees on Appropriations for 

resolution. 

3. Period of Availability 

Funds for JARC projects competitively 

selected by FTA remain available for 

two fiscal years following the fiscal year 

of selection. No projects competitively 

selected in previous fiscal years remain 

available for obligation in FY 2005. 

Congressional allocations of JARC 

projects remain available to the 

designated entity unless reallocated by 

Congress. Congress did not reallocate 

unobligated Congressional allocations 

for JARC projects from fiscal years 2002 

in the 2005 Appropriations Act, so they 

remain available for obligation. Projects 

designated prior to FY 2002 were 

reallocated in prior years. 

4. Other Program or Apportionment 

Related Information and Highlights 

Prior year unobligated balances for 

JARC allocations in the amount of 

$119,748,937 remain available for 

obligation in FY 2005. These balances 

include Congressional allocations from 

fiscal years 2002, 2003 and 2004. These 

unobligated amounts are displayed in 

Table 17. 

M. Over-the-Road Bus Accessibility 

Program 

The Over-the-Road Bus Accessibility 

(OTRB) Program authorizes FTA to 

make grants to operators of over-theroad buses to help finance the 

incremental capital and training costs of 

complying with the DOT over-the-road 

bus accessibility final rule, 49 CFR Part 

37, published on September 28, 1998 

(63 FR 51670). FTA conducts a national 

solicitation of applications, and grantees 

are selected on a competitive basis. For 

more information about the OTRB 

program contact Blenda Younger, Office 

of Resource Management and States 

Program, at (202) 366–2053. 

1. Total Allocation 

The 2005 Appropriations Act 

provides $6,894,400 for the Over-theRoad Bus Accessibility (OTRB) Program 

after the across-the-board 0.80 percent 

rescission, which is the total amount 

allocable for OTRB, as shown in the 

table below. 

OVER-THE-ROAD BUS ACCESSIBILITY

PROGRAM

Appropriation ........................ $6,950,000 

Rescission ............................ (55,600 ) 

Total Allocation ................. 6,894,400 

Of this amount, $5,239,744 is 

allocable to providers of intercity fixedVerDate Aug<04>2004 19:11 Dec 28, 2004 Jkt 205001 PO 00000 Frm 00012 Fmt 4701 Sfmt 4703 E:\FR\FM\29DEN3.SGM 29DEN3
Federal Register / Vol. 69, No. 249 / Wednesday, December 29, 2004 / Notices 78215 

route service, and $1,654,666 to other 

providers of over-the-road bus services, 

including local fixed-route service, 

commuter service, and charter and tour 

service. The total amount of $4,656,832 

is currently available for obligation in 

accordance with the Surface 

Transportation Extension Act of 2004, 

Part V. This includes $3,539,192 for 

intercity fixed-route service and 

$1,117,640 for other over-the-road bus 

services. 

2. Program Requirements 

Projects are competitively selected. 

The Federal share of the project is 90 

percent of net project cost. Program 

guidance is provided in the Federal 

Register notice soliciting applications. 

The FY 2004 notice was published 

November 24, 2003, and is available at 

http://www.fta.dot.gov/legal/ 

federal_register/2004/ 

12174_12199_ENG_HTML.htm. 

Assistance is available to operators of 

buses used substantially or exclusively 

in intercity, fixed route, over-the-road 

bus service. Capital projects eligible for 

funding include projects to add lifts and 

other accessibility components to new 

vehicle purchases and to purchase lifts 

to retrofit existing vehicles. Eligible 

training costs include developing 

training materials or providing training 

for local providers of over-the-road bus 

services. 

3. Period of Availability 

Funds are available until expended. 

4. Other Program or Apportionment 

Related Information and Highlights 

A Federal Register notice providing 

program guidance and application 

procedures for FY 2005 will be 

published at a later date and synopsized 

at www.grants.gov. A Federal Register 

notice of FY 2004 project selections was 

published November 16, 2004, and is 

available at http://www.fta.dot.gov/ 

legal/federal_register/2004/ 

12174_16182_ENG_HTML.htm. 

V. FTA Program Guidance and 

Requirements 

A. Automatic Pre-Award Authority to 

Incur Project Costs 

This information incorporates and 

elaborates on guidance previously 

provided in the FTA Fiscal Years 

2002—2004 Apportionments and 

Allocations Notices, which can be found 

on the FTA Web site at http:// 

www.fta.dot.gov/25_ENG_HTML.htm. 

1. Policy 

FTA provides blanket, or automatic, 

pre-award authority to certain program 

areas described below. This pre-award 

authority allows grantees to incur 

project costs prior to grant approval and 

retain their eligibility for subsequent 

reimbursement after grant approval. The 

grantee assumes all risk and is 

responsible for ensuring that all 

conditions are met to retain eligibility. 

This automatic pre-award spending 

authority permits a grantee to incur 

costs on an eligible transit capital or 

planning project without prejudice to 

possible future Federal participation in 

the cost of the project or projects. Prior 

to exercising pre-award authority, 

grantees must comply with the 

conditions and Federal requirements 

outlined in paragraphs 2 and 3 below. 

Failure to do so will render an 

otherwise eligible project ineligible for 

FTA financial assistance. In addition, 

prior to incurring costs, grantees are 

strongly encouraged to consult with the 

appropriate FTA regional office 

regarding the eligibility of the project for 

future FTA funds and the applicability 

of the conditions and Federal 

requirements. 

In the June 24, 1998 Federal Register 

Notice on TEA–21, pre-award authority 

was extended to all formula funds and 

flexible funds that would be 

apportioned during the authorization 

period of TEA–21, 1998–2003. In the 

February 11, 2004 Federal Register 

Notice of FY 2004 Apportionments and 

Allocations, FTA extended pre-award 

authority to grantees for project costs to 

be reimbursed by formula funds and 

flexible funds to be appropriated in FY 

2005. In this notice, FTA is extending 

this pre-award authority for formula 

funds and flexible funds that will be 

appropriated in FY 2006. Pre-award 

authority for operating and planning 

projects under the formula grant 

programs is not limited to the 

authorization period. In addition, 

automatic pre-award authority for 

section 5303 and 5313(b) has been 

granted through FY 2006. Pre-award 

authority also applies to section 5309 

Capital Investment Bus and Bus-Related 

allocations and JARC allocations 

identified in this and previous notices. 

For such section 5309 Capital 

Investment Bus and Bus-Related and 

JARC projects, the date that costs may 

be incurred is the date that the 

appropriation bill in which they are 

contained was enacted. In the February 

11, 2004 notice FTA extended preaward authority to Section 330 projects, 

and, in this notice, FTA is also 

extending comparable pre-award 

authority to those surface transportation 

projects commonly referred to as 

Section 115 projects administered by 

FTA, for which amounts were provided 

in the Consolidated Appropriations Act, 

2004 and Section 117 projects in the 

2005 Appropriations Act. We strongly 

encourage any prospective applicant 

that does not have a relationship with 

FTA to review Federal grant 

requirements with the FTA regional 

office before incurring costs. 

Blanket pre-award authority does not 

apply to section 5309 Capital 

Investment New Starts funds. Specific 

instances of pre-award authority for 

Capital Investment New Starts projects 

are described in paragraph 4 below. Preaward authority does not apply to 

Capital Investment Bus and Bus-Related 

projects not specified in this or previous 

notices. Before an applicant may incur 

costs for Capital Investment New Starts 

projects, Bus and Bus-Related projects, 

or any other projects not listed in this 

notice or previous notices, it must first 

obtain a written Letter of No Prejudice 

(LONP) from FTA. To obtain an LONP, 

a grantee must submit a written request 

accompanied by adequate information 

and justification to the appropriate FTA 

regional office, as described V.B below. 

In using pre-award authority for FY 

2006 formula funds, grantees are 

cautioned that reauthorization may 

result in changes in program structure, 

administrative requirements, or funding 

availability. As with all pre-award 

authority, activities must be conducted 

in compliance with Federal 

requirements in order to retain 

eligibility for future reimbursement. 

New grantees are encouraged to contact 

the appropriate FTA regional office 

before incurring costs, in order to ensure 

that requirements are met so that 

expenses remain eligible. 

2. Conditions 

The conditions under which preaward authority may be utilized are 

specified below: 

a. Pre-award authority is not a legal or 

implied commitment that the project(s) 

will be approved for FTA assistance or 

that FTA will obligate Federal funds. 

Furthermore, it is not a legal or implied 

commitment that all items undertaken 

by the applicant will be eligible for 

inclusion in the project(s). 

b. All FTA statutory, procedural, and 

contractual requirements must be met. 

c. No action will be taken by the 

grantee that prejudices the legal and 

administrative findings that the Federal 

Transit Administrator must make in 

order to approve a project. 

d. Local funds expended by the 

grantee pursuant to and after the date of 

the pre-award authority will be eligible 

for credit toward local match or 

reimbursement if FTA later makes a 

78216 Federal Register / Vol. 69, No. 249 / Wednesday, December 29, 2004 / Notices 

grant for the project(s) or project 

amendment(s). 

e. The Federal amount of any future 

FTA assistance awarded to the grantee 

for the project will be determined on the 

basis of the overall scope of activities 

and the prevailing statutory provisions 

with respect to the Federal/local match 

ratio at the time the funds are obligated. 

f. For funds to which the pre-award 

authority applies, the authority expires 

with the lapsing of the fiscal year funds. 

g. When a grant for the project is 

subsequently awarded, the Financial 

Status Report, in TEAM-Web, must 

indicate the use of pre-award authority. 

3. Environmental, Planning, and Other 

Federal Requirements 

All Federal grant requirements must 

be met at the appropriate time for the 

project to remain eligible for Federal 

funding. For example, the requirement 

that a project be included in a locally 

adopted metropolitan transportation 

improvement program and Federallyapproved statewide transportation 

improvement program (23 CFR part 450) 

must be satisfied before the grantee may 

advance the project beyond planning 

and preliminary design with nonFederal funds under pre-award 

authority. For planning projects, the 

project must be included in a locallyapproved Planning Work Program that 

has been coordinated with the State. 

Compliance with the National 

Environmental Policy Act (NEPA) and 

other environmental laws and executive 

orders (e.g., protection of parklands, 

wetlands, and historic properties) must 

be completed before State or local funds 

are spent on implementation activities, 

such as finalizing the design, site 

preparation, construction, and 

acquisition, for a project that is expected 

to be subsequently funded with FTA 

funds. The grantee may not advance the 

project beyond planning and 

preliminary design before FTA has 

determined the project to be a 

categorical exclusion, or has issued a 

finding of no significant impact (FONSI) 

or an environmental record of decision 

(ROD), in accordance with FTA 

environmental regulations, 23 CFR Part 

771. The conformity requirements of the 

Clean Air Act, 40 CFR Part 93, if 

applicable, must also be fully met before 

the project may be advanced into 

implementation under pre-award 

authority with non-Federal funds. 

In addition, Federal procurement 

procedures, as well as the whole range 

of applicable Federal requirements (e.g., 

Buy America, Davis-Bacon Act), must be 

followed for projects in which Federal 

funding will be sought in the future. 

Failure to follow any such requirements 

could make the project ineligible for 

Federal funding. In short, this increased 

administrative flexibility requires a 

grantee to make certain that no Federal 

requirements are circumvented through 

the use of pre-award authority. If a 

grantee has questions or concerns 

regarding the environmental 

requirements, or any other Federal 

requirements that must be met before 

incurring costs, it should contact the 

appropriate regional office. 

4. Pre-Award Authority for New Starts 

Projects 

a. Preliminary Engineering and Final 

Design 

Projects proposed for section 5309 

New Starts funds are required to follow 

a Federally defined New Starts project 

development process. This New Starts 

process includes, among other things, 

FTA approval of the entry of the project 

into Preliminary Engineering (PE) and 

into Final Design (FD). In accordance 

with section 5309(e), FTA considers the 

merits of the project, the strength of its 

financial plan, and its readiness to enter 

the next phase in deciding whether or 

not to approve entry into PE or FD. 

Upon FTA approval to enter PE, FTA 

extends pre-award authority to incur 

costs for PE activities. Upon FTA 

approval to enter FD, FTA extends preaward authority to incur costs for FD 

activities. The pre-award authority for 

each phase is automatic upon FTA’s 

signing of a letter to the project sponsor 

approving entry into that phase. PE and 

FD are defined in the New Starts 

regulation entitled Major Capital 

Investment Projects, found at 49 CFR 

Part 611. 

b. Real Property Acquisition Activities 

FTA extends automatic pre-award 

authority for the acquisition of real 

property and real property rights for a 

New Starts project upon completion of 

the NEPA process for that project. The 

NEPA process is completed when FTA 

signs an environmental Record of 

Decision (ROD) or Finding of No 

Significant Impact (FONSI), or makes a 

Categorical Exclusion (CE) 

determination. With the limitations and 

caveats described below, real estate 

acquisition for a New Starts project may 

commence, at the project sponsor’s risk, 

upon completion of the NEPA process. 

For FTA-assisted projects, any 

acquisition of real property or real 

property rights must be conducted in 

accordance with the requirements of the 

Uniform Relocation Assistance and Real 

Property Acquisition Policies Act (URA) 

and its implementing regulations, 49 

CFR part 24. This pre-award authority is 

strictly limited to costs incurred: (i) to 

acquire real property and real property 

rights in accordance with the URA 

regulation, and (ii) to provide relocation 

assistance in accordance with the URA 

regulation. This pre-award authority is 

limited to the acquisition of real 

property and real property rights that 

are explicitly identified in the final 

environmental impact statement (FEIS), 

environmental assessment (EA), or CE 

document, as needed for the selected 

alternative that is the subject of the 

FTA-signed ROD or FONSI, or CE 

determination. This pre-award authority 

does not cover site preparation, 

demolition, or any other activity that is 

not strictly necessary to comply with 

the URA, with one exception. That 

exception is when a building that has 

been acquired, has been emptied of its 

occupants, and awaits demolition poses 

a potential fire-safety hazard or other 

hazard to the community in which it is 

located, or is susceptible to 

reoccupation by vagrants, demolition of 

the building is also covered by this preaward authority upon FTA’s written 

agreement that the adverse condition 

exists. 

FTA’s rationale for providing this preaward authority was described in the FY 

2003 Apportionments and Allocations 

Notice published in the Federal 

Register on March 12, 2003, (68 FR 1106 

et seq.). The FY 2003 Notice may be 

found on the FTA Web site at http:// 

www.fta.dot.gov/library/legal/ 

federalregister/2003/fr31203.pdf. Project 

sponsors should use pre-award 

authority for real property acquisition 

and relocation assistance very carefully, 

with a clear understanding that it does 

not constitute a funding commitment by 

FTA. 

c. National Environmental Policy Act 

(NEPA) Activities 

NEPA requires that major projects 

proposed for FTA funding assistance be 

subjected to a public and interagency 

review of the need for the project, its 

environmental and community impacts, 

and alternatives to avoid and reduce 

adverse impacts. Projects of more 

limited scope also need a level of 

environmental review, either to support 

an FTA finding of no significant impact 

(FONSI) or to demonstrate that the 

action is categorically excluded from the 

more rigorous level of NEPA review. 

FTA’s regulation entitled 

Environmental Impact and Related 

Procedures at 23 CFR part 771 states 

that the costs incurred by a grant 

applicant for the preparation of 

environmental documents requested by 

FTA are eligible for FTA financial 

assistance (23 CFR 771.105(e)). 

Federal Register / Vol. 69, No. 249 / Wednesday, December 29, 2004 / Notices 78217 

Accordingly, FTA extends automatic 

pre-award authority for costs incurred to 

comply with NEPA regulations and to 

conduct NEPA-related activities for a 

proposed New Starts project, effective as 

of the date of the Federal approval of the 

relevant STIP or STIP amendment that 

includes the project or any phase of the 

project. NEPA-related activities include, 

but are not limited to, public 

involvement activities, historic 

preservation reviews, section 4(f) 

evaluations, wetlands evaluations, 

endangered species consultations, and 

biological assessments. This pre-award 

authority is strictly limited to costs 

incurred to conduct the NEPA process, 

and to prepare environmental, historic 

preservation and related documents. It 

does not cover preliminary engineering 

activities beyond those necessary for 

NEPA compliance. As with any preaward authority, FTA reimbursement 

for costs incurred is not guaranteed. 

d. Other New Starts Activities Requiring 

Letter of No Prejudice (LONP) 

Except as discussed in paragraphs (a) 

through (c) above, a grant applicant 

must obtain a written LONP from FTA 

before incurring costs for any activity 

expected to be funded by New Start 

funds not yet granted. 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 section V.B below. 

B. Letter of No Prejudice (LONP) Policy 

1. Policy 

LONP authority allows an applicant 

to incur costs on a project utilizing nonFederal 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 preaward authority. The majority of LONPs 

will be for section 5309 New Starts 

funds not covered under a full funding 

grant agreement, or for section 5309 Bus 

and Bus-Related funds not yet 

appropriated by Congress. At the end of 

an authorization period, LONPs may be 

issued for formula funds beyond the life 

of the current authorization or FTA’s 

extension of automatic pre-award 

authority. 

2. Conditions and Federal Requirements 

The conditions for pre-award 

authority specified in V.A.2 above apply 

to all LONPs. The Environmental, 

Planning and Other Federal 

Requirements described in V.A.3, also 

apply to all LONPs. Because project 

implementation activities may not be 

initiated prior to NEPA completion, 

FTA will normally not issue an LONP 

for such activities until the NEPA 

process has been completed with a 

ROD, FONSI, or Categorical Exclusion 

determination. 

3. Request for LONP 

Before incurring costs for a project 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. As a prerequisite to FTA 

approval of an LONP for a New Starts 

project, FTA will require project 

sponsors to demonstrate project 

worthiness and readiness. Projects will 

be assessed based upon the criteria 

considered in the New Start evaluation 

process. Specifically, upon the request 

for an LONP, the applicant shall provide 

sufficient information to allow FTA to 

consider the following items: 

a. Description of the activities to be 

covered by the LONP. 

b. Justification for advancing the 

identified activities. 

c. Data that indicates that the project 

will maintain its ability to receive a 

‘‘Recommended’’ rating. 

d. Allocated level of risk and 

contingency for the activity requested. 

e. Status of procurement progress, 

including, if appropriate, submittal of 

bids for the activities covered by the 

LONP. 

f. Strength of the capital and operating 

financial plan for the New Starts project 

and the future transit system. 

g. Adequacy of the Project 

Management Plan. 

h. Resolution of any readiness issues 

that would affect the project, such as 

land acquisition and technical capacity 

to carry out the project. 

C. FTA FY 2005 Annual List of 

Certifications and Assurances 

On October 26, 2004, the Federal 

Fiscal Year 2005 Annual List of 

Certifications and Assurances was 

published in the Federal Register. The 

2005 Annual List contains the following 

changes to the previous year’s Federal 

Register publication: 

(1) In the preface to the certifications 

and assurances, a paragraph has been 

added to explain that not all 

certifications and assurances will apply 

to all Applicants; and that the 

certifications and assurances are preaward requirements and do not 

encompass all Federal requirements that 

may apply to the Applicant and its 

project. 

(2) Certification 13(A)(1)(j) is 

amended to state that in the case of an 

Applicant serving in a UZA with a 

population of 200,000 or more, only 

capital security projects may be 

financed with the one percent of the 

UZA formula funds set aside by 49 

U.S.C. 5307(d)(1)(J) for security projects. 

(3) The Affirmation of the Applicant 

has been edited to clarify that the 

criminal fraud provisions of 18 U.S.C. 

1001 apply to all certifications, 

assurances, agreements, and other 

submissions to FTA. 

The 2005 Annual List is accessible on 

the Internet at www.fta.dot.gov. Any 

questions regarding this document may 

be addressed to the appropriate 

Regional Office or to Pat Simpich, in the 

FTA Office of Program Management, at 

(202) 366–1662. 

D. FHWA Funds Used for Transit 

Purposes 

The Intermodal Surface 

Transportation Efficiency Act of 1991 

(ISTEA) and TEA–21 have expanded 

modal choice in transportation funding 

by including substantial flexibility to 

transfer funds between FTA and FHWA 

program funding categories. 

1. Transfer Process 

The process for transferring flexible 

formula funds between FTA and FHWA 

programs is described below. For 

information on the transfer of funds 

between FTA and FHWA planning 

programs, contact the FTA/FHWA staff 

identified in VI.D below. 

Transfer from FHWA to FTA. FHWA 

funds designated for use in transit 

capital projects must be derived from 

the metropolitan and statewide 

planning and programming process, and 

must be included in an approved STIP 

before the funds can be transferred. By 

letter, the State DOT requests the FHWA 

Division Office to transfer highway 

funds for a transit project. The letter 

should specify the project, amount to be 

transferred, apportionment year, State, 

Federal aid apportionment category (i.e., 

Surface Transportation Program (STP), 

Congestion Mitigation and Air Quality 

(CMAQ), Interstate Substitute, or 

congressional earmark), and should 

include a description of the project as 

contained in the STIP. 

The FHWA Division Office confirms 

that the apportionment amount is 

available for transfer and concurs in the 

transfer, by letter to the State DOT and 

FTA. The FHWA Office of Budget and 

Finance then transfers obligation 

authority and an equal amount of cash 

78218 Federal Register / Vol. 69, No. 249 / Wednesday, December 29, 2004 / Notices 

to FTA. All FHWA CMAQ, STP, and 

Congressionally earmarked funds for 

transit projects in the Appropriations 

Act or Conference Report will be 

transferred to one of the three FTA 

formula programs (i.e. Urbanized Area 

Formula (section 5307), Nonurbanized 

Area Formula (section 5311) or Elderly 

and Persons with Disabilities (section 

5310). 

The FTA grantee’s application for the 

project must specify which program the 

funds will be used for, and the 

application must be prepared in 

accordance with the requirements and 

procedures governing that program. 

Upon review and approval of the 

grantee’s application, FTA obligates 

funds for the project. 

Transferred funds are treated as FTA 

formula funds, but are assigned a 

distinct identifying code for tracking 

purposes. The funds may be used for 

any capital purpose eligible under the 

FTA formula program to which they are 

transferred and, in the case of CMAQ, 

for certain operating costs. FTA and 

FHWA have issued guidance on project 

eligibility under the CMAQ program in 

a Notice at 65 FR 9040 et seq. (February 

23, 2000). In accordance with 23 U.S.C. 

104(k), all FTA requirements except 

local share are applicable to transferred 

funds; FHWA local share requirements 

apply to funds transferred from FHWA 

to FTA. Transferred funds should be 

combined with regular FTA funds in a 

single annual grant application. 

In the event that transferred funds are 

not obligated for the intended purpose 

within the period of availability of the 

program to which they were transferred, 

they become available to the Governor 

for any eligible capital transit project. 

Transfers from FTA to FHWA. The 

Metropolitan Planning Organization 

(MPO) submits a written request to the 

FTA Regional Office for a transfer of 

FTA section 5307 formula funds 

(apportioned to a UZA 200,000 and over 

in population) to FHWA based on 

approved use of the funds for highway 

purposes, as contained in the 

Governor’s approved State 

Transportation Improvement Program. 

The MPO must certify that: (1) The 

funds are not needed for capital 

investments required by the Americans 

with Disabilities Act; (2) notice and 

opportunity for comment and appeal 

has been provided to affected transit 

providers; and (3) local funds used for 

non-Federal match are eligible to 

provide assistance for either highway or 

transit projects. The FTA Regional 

Administrator reviews and concurs in 

the request, then forwards the approval 

to FTA Headquarters, where a reduction 

equal to the dollar amount being 

transferred to FHWA is made to the 

grantee’s Urbanized Area Formula 

Program apportionment. 

For information regarding these 

procedures, please contact Kristen D. 

Clarke, FTA Budget Office, at (202) 366–

1686; or James V. Lunetta, FHWA 

Finance Division, at (202) 366–2845. 

2. Matching Share for FHWA Transfers 

The provisions of Title 23 U.S.C. 

regarding the non-Federal share apply to 

Title 23 funds used for transit projects. 

Thus, FHWA funds transferred to FTA 

retain the same matching share that the 

funds would have if used for highway 

purposes and administered by FHWA. 

There are three instances in which a 

Federal share higher than 80 percent 

would be permitted. First, in States with 

large areas of Indian and certain public 

domain lands and national forests, parks 

and monuments, the local share for 

highway projects is determined by a 

sliding scale rate, calculated based on 

the percentage of public lands within 

that State. This sliding scale, which 

permits a greater Federal share, but not 

to exceed 95 percent, is applicable to 

transfers used to fund transit projects in 

these public land States. FHWA 

develops the sliding scale matching 

ratios for the increased Federal share. 

Second, commuter carpooling and 

vanpooling projects and transit safety 

projects using FHWA transfers 

administered by FTA may retain the 

same 100 percent Federal share that 

would be allowed for ride-sharing or 

safety projects administered by FHWA. 

The third instance is the 100 percent 

Federally-funded safety projects; 

however, these are subject to a 

nationwide 10 percent program 

limitation. 

3. Miscellaneous Transit Earmarks in 

FHWA Programs 

The FY 2002 and FY 2003 

Appropriations Acts and accompanying 

reports included Section 330, which 

identified a number of transit projects 

among projects designated to receive 

funding from certain Federal Highway 

Administration (FHWA) funding 

sources. In FY 2004, Section 115 

similarly included transit projects 

among projects designated to receive 

funding from certain FHWA sources. 

Some of these FY 2002–2004 

designations for transit projects have not 

yet been obligated. The 2005 

Appropriations Act also includes a new 

set of designations under Section 117, 

which may include some projects that 

FHWA will identify to be administered 

by FTA. For those projects identified by 

FHWA as transit in nature, FHWA allots 

the funds to FTA to administer. The 

funds are available for the designated 

project until obligated and expended. 

However, because these are FHWA 

funds, FTA cannot carry over 

unobligated balances remaining at the 

end of the fiscal year. Instead FHWA reallots carryover to FTA annually, after 

reconciling account balances. Because 

the requirements and procedures 

associated with these projects differ in 

some cases from those for the FTA 

programs that FTA grantees are familiar 

with, and the availability of funds for 

obligation by FTA depends on 

allotments from FHWA, transit 

applicants seeking funding under these 

miscellaneous FHWA designations must 

work closely with the appropriate FTA 

regional office and FHWA Division 

Office when applying for a grant under 

these designations. 

E. Grant Application Procedures 

Grantees must provide a Dun and 

Bradstreet (D&B) Data Universal 

Numbering System (DUNS) number for 

inclusion in all applications for a 

Federal grant or cooperative agreement 

submitted on or after October 1, 2003. 

The Office of Management and Budget 

(OMB) published this requirement in 

the Federal Register on June 27, 2003 at 

68 FR 38402 et seq. On August 4, 2003, 

FTA issued a Dear Colleague letter 

including instructions on how to obtain 

a DUNS number; the letter can be 

accessed at http://www.fta.dot.gov/ 

legal/guidance/dear_colleague/2003/ 

178_12145_ENG_HTML.htm. The DUNS 

number should be entered into the 

grantee profile in TEAM-Web. 

Additional information about this and 

other Federal grant streamlining 

initiatives mandated by the Federal 

Financial Assistance Management 

Improvement Act of 1999 (Pub. L. 106–

107) can be accessed on OMB’s Web site 

at http://www.whitehouse.gov/omb/ 

grants/reform.html. 

All applications for FTA funds should 

be submitted to the appropriate FTA 

regional office. FTA utilizes TEAMWeb, an Internet-accessible electronic 

grant application system, and all 

applications are filed electronically. 

FTA has provided exceptions to the 

requirement for electronic filing of 

applications for certain new, nontraditional grantees in the JARC and 

OTRB programs, as well as to a few 

grantees that have not successfully 

connected to or accessed TEAM-Web. 

In FY 2005, FTA is committed to 

maintaining the average number of days 

required to process a completed grant 

application at 36 days or fewer, while 

continuing to process at least 80 percent 

of grants within 60 days of receipt of a 

completed application by the 

Federal Register / Vol. 69, No. 249 / Wednesday, December 29, 2004 / Notices 78219 

appropriate Regional Office. In FY 2004, 

FTA achieved this goal, with an average 

processing time of 30 days and 91 

percent of grants obligated within 60 

days of submission of a completed 

application. 

In order for an application to be 

considered complete and for FTA to 

assign a grant number, enabling 

submission in TEAM-Web, the 

requirements listed in III.A of this 

document must be met. During FY 2005, 

any grantee applying for funds available 

under an extension of TEA–21 before 

the full year’s apportionment becomes 

available is encouraged to include 

contingency items for the remainder of 

the funds, so that the entire project can 

be certified by DOL at the time of the 

initial application. The FTA circulars 

contain more information regarding 

application contents. State applicants 

for section 5311 funds are reminded that 

they must certify to DOL that all 

subrecipients have agreed to the 

standard labor protection warranty for 

section 5311, and must provide DOL 

with specified related information for 

each grant. 

Before FTA can award grants for 

discretionary projects and activities 

designated by Congress, notification 

must be given to members of Congress, 

and in the case of awards greater than 

$1 million, to the House and Senate 

appropriations committees. 

F. Payments 

Once a grant has been awarded and 

executed, funds can be drawn down. On 

October 6, 2004, FTA implemented its 

new web-based payment system called 

‘‘ECHO-Web’’. ECHO-Web is an Internet 

accessible system that provides grantees 

the capability to submit payment 

requests on-line, as well as receive userIDs and passwords via e-mail. Each 

grantee may have three people with a 

user profile (before, there was only one 

ECHO ID). The new system has been 

improved with encryption and software 

applications that meet current computer 

security standards and regulations. 

FTA’s former payment system that 

required FTA grantees enter draw-down 

requests through an outdated modem 

connection, has been retired. Grantees 

that have not submitted the registration 

package necessary for set-up under 

ECHO Web should contact the 

appropriate FTA regional office. 

G. Oversight 

FTA conducts periodic oversight 

reviews to assess grantee compliance 

with Federal requirements. Each UZA 

grantee is reviewed every three years (a 

triennial review). States are reviewed 

periodically for their management of the 

section 5310 and 5311 programs. Other 

more detailed reviews are scheduled 

based on an annual grantee risk 

assessment. 

H. Technical Assistance 

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. This notice and the 

program guidance circulars previously 

identified in this document may be 

accessed via the FTA Web site at 

www.fta.dot.gov. 

In addition, copies of the following 

circulars and other useful information 

are available on the FTA Web site and 

may be obtained from FTA regional 

offices: 4220.1E, Third Party Contracting 

Requirements, dated June 19, 2003; and 

C5010.1C, Grant Management 

Guidelines, dated October 1, 1998. The 

FY 2005 Annual List of Certifications 

and Assurances is also posted on the 

FTA Web site. Other documents on the 

FTA Web site of particular interest to 

public transit providers and others 

include the annual Statistical 

Summaries of FTA Grant Assistance 

Programs and the National Transit 

Database Profiles. The DOT final rule on 

‘‘Participation by Disadvantaged 

Business Enterprises in Department of 

Transportation Financial Assistance 

Programs,’’ which was effective July 16, 

2003, can be found on the Department’s 

Web site at http://osdbu.dot.gov/ 

business/DBE/ 

49cfrpart26_final_rule.html. 

VI. Guidance and Information Specific 

to FTA Planning Programs 

A. Census 2000 Planning and 

Programming Requirements Deadline 

The 2000 Census made changes, 

among other things, to the number and 

location of UZAs. These UZA 

designations are used by FTA to 

apportion funds. Each UZA must have 

an MPO in place to program Federal 

funding for highway and transit 

projects. MPOs must submit updates to 

their planning area boundaries, based 

on the 2000 Census. 

FY 2005 is a critical year to complete 

a number of planning and programming 

items that resulted from the designation 

of new and revised UZAs by the 2000 

Census. Subsequent designation by the 

U.S. DOT of new TMAs also requires 

completion of other items. These items, 

which must be completed in order to 

receive Federal funding, include the 

following: 

1. New TMAs (27) were identified by 

the U.S. DOT on July 8, 2002. Federal 

Certification of these new TMAs must 

be completed by July 8, 2005. 

Congestion Management Systems are 

required for these TMAs. 

2. Seventy-six new UZAs were 

identified by the 2000 Census. Per FTA 

and FHWA guidance, these new UZAs 

must have an existing or new MPO in 

place with an adopted plan, TIP, and 

planning boundary maps no later than 

October 1, 2005 in order to continue to 

receive Federal funds. 

3. Some new UZAs will require air 

quality conformity findings. Failure to 

have a plan and TIP with a conformity 

finding will result in a conformity lapse. 

4. Existing MPOs must update their 

planning area boundaries (area expected 

to be urbanized in the next 20 years) 

based on the 2000 Census. Previously 

published guidance requires MPOs to 

update and send the new boundaries to 

the FTA regional office and the FHWA 

Division Office no later than the next 

scheduled plan update after October 1, 

2002, or by October 1, 2005, whichever 

occurs first. 

B. Local Match Waiver for Specified 

Planning Activities 

Job Access and Reverse Commute 

Planning. Federal, State and local 

welfare reform initiatives may require 

the development of new and innovative 

public and other transportation services 

to ensure that former welfare recipients 

have adequate mobility for reaching 

employment opportunities. In 

recognition of the key role that 

transportation plays in ensuring the 

success of welfare-to-work initiatives, 

FTA and FHWA permit the waiver of 

the local match requirement for JARC 

planning activities undertaken with 

both FTA and FHWA Metropolitan 

Planning Program and State Planning 

and Research Program funds. FTA and 

FHWA will support requests for waivers 

if they are included in Metropolitan 

Unified Planning Work Programs and 

State Planning and Research Programs 

and meet all other requirements. 

C. Planning Emphasis Areas for FY 2005 

The FTA and FHWA identify 

Planning Emphasis Areas (PEAs) 

annually to promote priority themes for 

consideration in Statewide and 

metropolitan (Unified) planning work 

programs proposed for FTA and FHWA 

funding. The FY 2005 PEAs are 

proposed for consideration in the 

development of unified planning work 

programs (UPWPs) and State Planning 

and Research (SP&R) programs during 

FY 2005, even though the UPWP might 

not be approved until early in FY 2006. 

FTA and FHWA provide technical 

assistance and informational support for 

78220 Federal Register / Vol. 69, No. 249 / Wednesday, December 29, 2004 / Notices 

the PEAs through the Transportation 

Planning Capacity Building Program 

(TPCB), which can be accessed at 

http://www.planning.dot.gov/. The 

TPCB is available to respond to requests 

and provide opportunities for peer 

exchange of innovative practices in 

these emphasis areas throughout the 

year. Requests for information and 

technical support through the TPCB can 

be made by accessing the Web site noted 

above. In addition, training courses that 

address these PEAs in a variety of 

planning contexts are available through 

the National Transit Institute (NTI) and 

the National Highway Institute (NHI). 

Information on course offerings is 

available at the TPCB Web site noted 

above and at the NTI and NHI Web sites: 

www.ntionline.com/ and 

www.nhi.fhwa.dot.gov/default.asp. 

For FY 2005, six key planning themes 

have been identified: (1) Consideration 

of safety and security in the 

transportation planning process; (2) 

linkage of the planning and NEPA 

processes; (3) consideration of 

management and operations within 

planning processes; (4) State DOT 

consultation with non-metropolitan 

local officials; (5) enhancement of the 

technical capacity of planning 

processes; and 6) coordination of human 

service transportation. 

1. Consideration of Safety and 

Security in the Transportation Planning 

Process. TEA–21 included safety and 

security as factors to consider in the 

development of plans and programs, in 

recognition of the importance of safety 

and security of transportation systems 

as a national priority. TEA–21 calls for 

transportation projects and strategies 

that ‘‘increase the safety and security of 

transportation systems.’’ This entails 

communication and collaboration 

among safety professionals, the 

enforcement community, and 

transportation planners in order to 

successfully integrate safety and 

security into all stages of the 

transportation planning process. 

Information is available at http:// 

www.tfhrc.gov/pubrds/pubrds.htm 

describing the tools and strategies 

associated with the implementation of 

safety conscious planning within 

Statewide and metropolitan 

transportation planning processes, 

including resources targeted to States 

and MPOs. A training course titled 

‘‘Safety Conscious Planning’’ is available 

through NTI (see Web site above) with 

additional information available from 

TPCB Web site and FHWA and FTA, as 

follows: www.fhwa.dot.gov/planning/ 

scp/index.htm and http://transitsafety.volpe.dot.gov/. 

2. Linking the Planning and NEPA 

Processes. FHWA and FTA are 

developing guidance on the appropriate 

use of planning results during a NEPA 

review. This guidance will be derived 

from a study of NEPA case law that 

synthesizes what the Federal courts 

have said about the role of MPO and 

statewide planning in FHWA’s and 

FTA’s NEPA decision-making. The 

guidance will be posted on the Web site 

for the Transportation Planning 

Capacity Building Program at http:// 

www.planning.dot.gov as soon as it is 

available. 

A series of facilitated workshops 

entitled ‘‘Linking Planning and NEPA’’

were delivered in FY 2004, with another 

series to be delivered in FY 2005. These 

workshops are described at the NTI and 

NHI Web sites noted above. 

3. Consideration of Management and 

Operations within Planning Processes. 

TEA–21 challenged FHWA and FTA to 

move beyond traditional capital 

programs for improving the movement 

of people and goods—focusing on the 

need to improve the way transportation 

systems are managed and operated. 

Discussion papers on the topic are 

available at 

www.plan4operations.dot.gov. In 

addition, an NHI training course on the 

topic is scheduled to be available in the 

second quarter of FY 2005. Also, 

‘‘Getting More by Working TogetherOpportunities for Linking Planning and 

Operations’’, a reference guide for use 

by State DOT’s, MPO’s, and Transit 

Operators on opportunities for linking 

planning and operations, will be 

released in FY 2005. 

4. State DOT Consultation With NonMetropolitan Local Officials. On January 

23, 2003, FTA and FHWA issued a Final 

Rule on consultation, followed by a 

technical correction on February 14, 

2003, which can be accessed at http:// 

www.fta.dot.gov/library/legal/ 

federalregister/2003/fr12303.html and 

http://www.fta.dot.gov/library/legal/ 

federalregister/2003/fr21403.html. This 

final rule amended the 1993 Joint FTA/ 

FHWA Planning regulation published in 

the Federal Register, Volume 58, No. 

207, on October 28, 1993. By February 

24, 2004, each State was required to 

have a documented process(es) that 

implements consultation with nonmetropolitan local officials in the 

Statewide transportation planning 

process and development of the 

Statewide Transportation Improvement 

Program (STIP), to be separate and 

discrete from the State’s public 

involvement process. By February 24, 

2006 and every five years thereafter, 

States must review and solicit 

comments (for a minimum of 60 days) 

from non-metropolitan local officials 

and other interested parties on the 

effectiveness of the existing consultation 

process(es) and proposed modifications. 

As part of this requirement, a ‘‘specific 

request for comments shall be directed 

to the State association of counties, 

State municipal league, regional 

planning agencies, or directly to nonmetropolitan local officials.’’ In the 

meantime, FHWA and FTA will be 

using the Statewide planning findings 

that accompany approvals of the STIP as 

the primary mechanism for tracking and 

monitoring State progress in 

implementing and later reviewing and 

refining these processes. 

5. Enhancing the Technical Capacity 

of Planning Processes. Reliable 

information on current and projected 

usage and performance of transportation 

systems is critical to the ability of 

planning processes to supply credible 

information to decision-makers to 

support preparation of plans and 

programs that respond to each locality’s 

unique needs and policy issues. If this 

expertise is found to be lacking, the 

responsible agencies within 

metropolitan and Statewide planning 

processes are encouraged to devote 

appropriate resources to enhance and 

maintain their technical capacity. 

Training courses on this topic are 

available through NTI and NIH, with 

additional information available 

through the TPCB Web site and the 

Travel Model Improvement Program, 

which can be accessed at http:// 

tmip.fhwa.dot.gov/. 

6. Coordination of Human Service 

Transportation. The importance of 

coordinating human service 

transportation and the supporting 

United We Ride initiative were 

described earlier in this publication (see 

III.B—Transportation Coordination—

United We Ride). This initiative 

supports Federal, State, and local 

agencies working together to ensure that 

transportation services are seamless, 

comprehensive and accessible to all 

citizens. 

For further information on these 

PEAs, contact Candace Noonan, FTA 

Office of Planning and Environment, 

(202) 366–1648, or John Humeston, 

FHWA Office of Planning, (404) 562–

3667. 

D. Consolidated Planning Grants 

Since FY 1997, FTA and FHWA have 

offered States the option of participating 

in a pilot Consolidated Planning Grant 

(CPG) program. This streamlined fund 

drawdown process eliminates the need 

to monitor individual fund sources, if 

several have been used, and ensures that 

Federal Register / Vol. 69, No. 249 / Wednesday, December 29, 2004 / Notices 78221 

the oldest funds will always be used 

first. 

Under the CPG, States can report 

metropolitan planning expenditures (to 

comply with the Single Audit Act) for 

both FTA and FHWA under the 

Catalogue of Federal Domestic 

Assistance number for FTA’s 

Metropolitan Planning Program. 

Additionally, for States with an FHWA 

Metropolitan Planning (PL) fundmatching ratio greater than 80 percent, 

the State (through FTA) can request a 

waiver of the 20 percent local share 

requirement in order that all FTA funds 

used for metropolitan planning in a CPG 

can be granted at the higher FHWA rate. 

For some States, this Federal match rate 

can exceed 90 percent. In FY 2005, the 

CPG program was expanded to allow the 

transfer of FTA planning funds to 

FHWA in addition to the current 

process whereby FHWA funds for 

planning are transferred to FTA. For 

planning projects funded through a 

CPG, the State DOT requests the transfer 

of funds in a letter to the FHWA 

Division Office (if transferring funds to 

FTA) or to the FTA regional office (if 

transferring funds to FHWA). 

States interested in transferring 

planning funds between FTA and 

FHWA should contact the FTA regional 

office or FHWA Division Office for more 

detailed procedures. 

For further information on 

participating in the CPG Pilot, contact 

Candace Noonan, Planning Oversight 

Division, FTA, at (202) 366–1648, or 

Anthony Solury, Office of Planning and 

Environment, FHWA, at (202) 366–

5003. Information concerning 

participation in the CPG program can be 

found on the FTA Web site at http:// 

www.fta.dot.gov/ 

224_6039_ENG_HTML.htm. 

Jennifer L. Dorn, 

Administrator. 

BILLING CODE 4910–57–P 

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[FR Doc. 04–28408 Filed 12–28–04; 8:45 am] 

BILLING CODE 4910–57–C 


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