[Federal Register Volume 72, Number 61 (Friday, March 30, 2007)]
[Rules and Regulations]
[Pages 15049-15054]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-5879]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration

49 CFR Part 624

[Docket No. FTA-2006-24708]
RIN 2132-AA91


Clean Fuels Grant Program

AGENCY: Federal Transit Administration (FTA), DOT.

ACTION: Final rule.

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SUMMARY: On June 9, 1998, the Transportation Equity Act for the 21st 
Century (TEA-21) was enacted requiring the Federal Transit 
Administration (FTA) to establish the Clean Fuels Formula Grant Program 
(the program). The program was developed to assist non-attainment and 
maintenance areas in achieving or maintaining the National Ambient Air 
Quality Standards for ozone and carbon monoxide (CO). Additionally, the 
program supports emerging clean fuel and advanced propulsion 
technologies

[[Page 15050]]

for transit buses and markets for those technologies. Although the 
program was authorized as a formula grant program from its inception, 
Congress did not fund the program. The Safe, Accountable, Flexible, 
Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) 
changed the grant program from a formula-based to a discretionary grant 
program. The program, however, retains its initial purpose. FTA is 
publishing this final rule to revise the existing regulations to 
reflect the amendments made by SAFETEA-LU.

DATES: This rule is effective April 30, 2007.

FOR FURTHER INFORMATION CONTACT: For program issues, Kimberly Sledge, 
Office of Program Management, (202) 366-2053 (telephone); (202) 366-
7951 (fax); or <a href="/cdn-cgi/l/email-protection#84cfede9e6e1f6e8fdaad7e8e1e0e3e1c4e0ebf0aae3ebf2"><span class="__cf_email__" data-cfemail="bbf0d2d6d9dec9d7c295e8d7dedfdcdefbdfd4cf95dcd4cd">[email protected]</span></a> (e-mail). For legal issues, 
Scheryl Portee, Office of the Chief Counsel, (202) 366-4011 
(telephone); (202) 366-3809 (fax); or <a href="/cdn-cgi/l/email-protection#b7e4d4dfd2c5cedb99e7d8c5c3d2d2f7d3d8c399d0d8c1"><span class="__cf_email__" data-cfemail="3360505b56414a5f1d635c4147565673575c471d545c45">[email protected]</span></a> (e-mail).

SUPPLEMENTARY INFORMATION:

Availability of the Final Rule

    You may download this rule from the Department's Docket Management 
System (https://dms.dot.gov) by entering docket number 24708 in the 
search field or from the Government Printing Office's Federal Register 
Main Page at http://www.gpoaccess.gov/fr/index.html. Users may also 
download an electronic copy of this document using a modem and suitable 
communications software from the GPO Electronic Bulletin Board Service 
at (202) 512-1661.

I. Background

    The Clean Fuels Formula Grant Program is a transit grant program 
established pursuant to Section 3008 of the Transportation Equity Act 
for the 21st Century (TEA-21) as amended, Public Law 105-178, and 
codified at 49 U.S.C. 5308. This legislation established the basic 
parameters of the program. Section 3010 of SAFTEA-LU, Public Law 109-
59, (2005) changed the grant program from a formula-based to a 
discretionary grant program.
    In SAFETEA-LU, Congress earmarked approximately $18 million in FY 
2006 graduating to approximately $22 million in FY 2009 for specific 
projects. However, during the FY 2006 and FY 2007 appropriations 
process, Congress transferred the remaining clean fuels program funds 
not earmarked pursuant to SAFETEA-LU to the Bus and Bus Facilities 
Program. Thus, there are no discretionary funds available for the Clean 
Fuels Program to date. The focus of this rulemaking is to revise 49 CFR 
Part 624 to reflect the amendments made by SAFETEA-LU establishing a 
discretionary program and ensuring procedures are in place when funding 
is provided for the program. This final rule also addresses criteria 
for the allocation of discretionary program funds, issues raised in the 
NPRM and the comments made in response to the NPRM.

II. Discussion of Comments

    FTA received a total of two comments to this rulemaking. We discuss 
the comments received and explain any changes made to the regulations 
in the following paragraphs. FTA considered all comments filed. Each 
commenter expressed support for the rulemaking while offering 
recommendations to improve this statutory program. A written copy of 
each comment is available at the DOT Docket Manager's Web site: http://www.dms.dot.gov.
    1. American Public Transportation Association (APTA) indicates that 
it agrees with FTA's approach to flexible eligibility and selection 
criteria for implementation of the regulation. APTA suggested that FTA 
publish proposed annual criteria in conjunction with the annual 
``apportionment and allowances notice,'' which includes FTA 
programmatic changes. APTA believed that such a procedure would allow 
public comment on the criteria prior to the Federal Register Notice of 
Funding Availability, thus permitting the latter announcement to be 
limited to solicitation of grant applications based on already publicly 
vetted criteria.
    2. Metro Regional Transit Authority of Akron, Ohio (Metro) 
expresses support for the majority of the proposed changes to the Clean 
Fuels Grant Program as an improvement to the overall initiative. Metro 
recommends that the total project cost should be an eligible federal 
expense for those projects that have an evaluation and dissemination 
component, in order to encourage additional research and development of 
alternative fuels. Metro recommends that FTA only fund truly 
alternative energy sources such as hydrogen fuel cells stating that 
other projects will continue dependence on fossil fuel and foreign oil.
    Metro believes that ``clean diesel buses'' are not an appropriate 
expenditure for this program and that these buses should be purchased 
with Congestion Mitigation Air Quality or section 5307 funds. The Clean 
Fuels program should focus its limited resources on projects that can 
be replicated or advance the technology for buses. Another 
recommendation by Metro is that FTA consider the reporting evaluation 
proposal as part of the grant process, including a pure science 
component for each funded project.

III. Section by Section Analysis

    In this section, FTA provides a section by section analysis and 
comments in response where applicable.

A. Eligible Recipients

    As noted in the NPRM, SAFETEA-LU amended the term ``recipient'' to 
now include smaller urbanized areas with populations of less than 
200,000. Accordingly, we are amending section 624.1 to define eligible 
applicants as (1) designated recipients, as defined in 49 U.S.C. 
5307(a)(2); and (2) recipients in urbanized areas with populations of 
less than 200,000.
    A ``designated recipient'' is an entity designated to receive 
Federal urbanized formula funds under 49 U.S.C. 5307, in accordance 
with the applicable metropolitan and statewide transportation planning 
processes, by the chief executive officer of a State, responsible local 
officials, and publicly owned operators of public transportation. For 
an urbanized area with a population of less than 200,000, however, 
SAFETEA-LU requires the smaller urbanized area's respective State to 
act as the recipient.
    Further, all recipients must meet one of the following criteria: 
(1) Be designated as an ozone or carbon monoxide (CO) nonattainment 
area as established by section 107(d) of the Clean Air Act (42 U.S.C. 
7407(d)); or (2) be designated as a maintenance area for ozone or CO. A 
maintenance area is a previously designated nonattainment area that has 
been redesignated to attainment status by the U.S. Environmental 
Protection Agency (EPA).

B. Eligible Activity

    A commenter indicated that additional criteria not found in the 
statute should also be considered. FTA is not permitted to expand the 
selection criteria beyond that found in the statute. For similar 
reasons, FTA may not restrict vehicles that use clean diesel as an 
eligible activity as recommended by the commenter. Further, a commenter 
suggested that an experimental project should receive Federal funds at 
the 100% level. FTA has no statutory authority to support 100% funding 
of total project costs of eligible activities. The final rule contains 
the funding share for eligible projects that complies with the 
requirements of 49 U.S.C. 5308 and the Clean Air Act.

[[Page 15051]]

    FTA is amending section 624.3 in paragraph (a) and removes 
paragraphs (c)(4) and (c)(5) to exclude repowering and retrofitting of 
pre-1993 buses. Both activities were specifically authorized as 
eligible projects under TEA-21; however, SAFETEA-LU repealed those 
provisions. Accordingly, we have determined that such activities cannot 
be authorized under this program. In addition, we amend paragraph (c) 
by renumbering the current paragraph (c)(6) as a new (c)(3), and adding 
new paragraphs (c)(4), (5), and (6) to reflect SAFETEA-LU amendments 
applicable to eligible projects.
    a. We are amending paragraph (a) to reflect the provisions in 49 
U.S.C. 5323(i), which SAFETEA-LU amended to include facilities as well 
as vehicles. Accordingly, the Federal share for eligible projects 
cannot exceed 90 percent of the net cost to comply with or maintain 
compliance with the Clean Air Act. Further, the Administrator is 
authorized to administratively determine the net cost of such equipment 
or facilities attributable to compliance with the Clean Air Act. FTA 
has administratively determined that the composite Federal share for 
vehicles and vehicle related equipment shall be 83 percent. For 
facilities, however, the 90 percent share would apply to the actual 
incremental costs of improvements for compliance with the Clean Air Act 
and recipients would be requested to provide supporting documentation.
    We noted in the NPRM that the President's Budget for Fiscal Year 
2007 proposed that FTA grants awarded during Fiscal Years 2007 and 2008 
should reflect 100 percent of the net capital costs of factory-
installed or retrofitted hybrid-electric propulsion systems and any 
equipment related to such systems. This budget proposal provided for 
administrative discretion to determine costs attributable to such 
systems and related-equipment. This provision was not included in the 
FY 2007 appropriations legislation, and therefore not authorized.
    Paragraph (c)(5) of section 624.3 is amended to reflect the 
statutory mandate under section 5308(c) that not more than 25 percent 
of the funds available to carry out the clean fuels program each fiscal 
year may be made available to fund clean diesel buses. On January 18, 
2001, EPA published a final rule establishing a comprehensive national 
control program to regulate heavy-duty vehicles and its fuel as a 
single system. As part of this program, new emission standards will 
start to take effect in model year 2007, and will apply to heavy-duty 
highway engines and vehicles. These standards are based on the use of 
high-efficiency catalytic exhaust emission control devices or 
comparably effective advanced technologies. The EPA standards are 
codified at 40 CFR Parts 69, 80, and 86. (See 66 FR 5001 (January 18, 
2001).). Accordingly, FTA interprets ``clean diesel'' to mean diesel 
engines certified to meet EPA's heavy-duty engine emissions standards 
for model-years 2007 and later.
    The final rule amends paragraph (c)(6) of section 624.3 to reflect 
that funds designated for eligible projects will remain available for 
obligation for three fiscal years, which includes the year of 
appropriation plus two additional fiscal years.

C. Application Process

    Since the program is now a discretionary grant program, the pre-
application included in Appendix A no longer applies. Accordingly, we 
are removing Appendix A from Part 624 and revising section 624.5 to 
reflect that applications will be requested in a Federal Register 
notice each fiscal year that discretionary funds are provided by 
Congress for the program. FTA considered a comment to change the 
procedures but determined that since technological innovations continue 
to evolve, we believe the criteria for selecting eligible projects 
should be flexible. Accordingly, we are revising section 624.5 to 
reflect general criteria for selection of eligible projects. More 
specific selection criteria may be published in the Federal Register 
with a Notice of Funding Availability each fiscal year that 
discretionary funding is provided by Congress for the program.

D. Certifications

    We retain the current certification process in section 624.7. Each 
vehicle purchased with a grant under this program will be operated by 
the grantee using only clean fuels. The certification will be included 
with the Federal Register notice announcing our annual certifications 
and assurances. This is consistent with our policy of one-stop filing 
for all required certifications and assurances. Transit operators 
planning to apply for the Clean Fuels Grant Program would indicate 
compliance with this certification when submitting the annual 
certifications and assurances. Additionally, grantees purchasing or 
leasing ``clean diesel'' buses must certify that the buses would be 
operated using only ultra-low-sulfur diesel fuel.

E. Statutory Cross-Cutting Requirements

    Since the program is now a discretionary grant program, we are 
amending section 624.9 by removing the grant formula because it no 
longer applies. Section 5308, as amended by SAFETEA-LU, requires that a 
grant under this program be subject to the applicable requirements of 
49 U.S.C. 5307. Accordingly, we are amending section 624.9 by inserting 
the applicable statutory requirements from 49 U.S.C. 5307. Many of 
these requirements are also contained in FTA Circular 9030.1C, which is 
available on the FTA website at (http://www.fta.dot.gov).
    Further, all FTA grants provided under chapter 53 of title 49 of 
the United States Code are subject to applicable requirements of the 
FTA Master Agreement (MA), which is incorporated by reference in the 
grant agreement. Additional project management guidelines and 
requirements may also be found in FTA Circular 5010.1C. This Circular 
and the MA are also available on the FTA Web site at (http://www.fta.dot.gov).

F. Reporting

    With respect to the comment on reporting as part of the grant 
process, FTA is interested in program level evaluation. We will use 
these reporting components to analyze national programmatic effects. 
However, we encourage local areas to use criteria that best suits their 
local needs.
    As FTA supports the development and deployment of clean fuel and 
advanced propulsion technologies for transit buses, we remain 
interested in collecting relevant information on the operations and 
performance of these clean fuel technology buses to help assess the 
reliability, benefits, and costs of certain technologies compared to 
conventional vehicle technologies. Accordingly, FTA retains the 
reporting requirements in section 624.11, which require grantees 
receiving program funds for hybrid electric, battery electric, and fuel 
cell vehicles to provide information to us on the operations, 
performance, and maintenance of those vehicles purchased or leased with 
program funds.
    We have determined, however, that semiannual instead of quarterly 
reporting for the first three years of the useful life of the vehicle 
is sufficient for this objective; thus, we are providing administrative 
relief by extending the reporting requirements in section 624.11 from 
quarterly to semiannually. Submission of data on the operation of the 
vehicle beyond the three-year period would continue to be voluntary.
    Likewise, we encourage transit agencies acquiring other types of 
alternative fuel buses (e.g., compressed

[[Page 15052]]

natural gas (CNG), liquefied natural gas (LNG), liquefied petroleum gas 
(LPG), etc.) to voluntarily report similar information. However, 
recipients acquiring clean diesel vehicles are not required to report 
the data requested under section 624.11 because we believe that 
sufficient information about this technology has been compiled.
    FTA will be requesting from the Office of Management and Budget 
(OMB) under the Paperwork Reduction Act approval to collect information 
from recipients receiving Federal financial assistance under the Clean 
Fuels program. We intend to collect information such as vehicle miles 
traveled, fuel costs, vehicle fuel/energy consumption and oil 
consumption, road calls or breakdowns resulting from clean fuel and 
advanced propulsion technology systems, and maintenance costs 
associated with these systems. Data collected will be used to provide 
more accurate information to transit agencies for future clean fuel and 
advanced propulsion vehicle acquisitions.

IV. Regulatory Analyses and Notices

Executive Order 12866

    Under Executive Order 12866, the Department of Transportation (DOT) 
must examine whether this rule is a ``significant regulatory action.'' 
A significant regulatory action is subject to OMB review and the 
requirements of the Executive Order (E.O.). E.O. 12866 defines 
``significant regulatory action'' as one that is likely to result in a 
rule that may: (1) Have an annual effect on the economy of $120 million 
or more or adversely affect in a material way the economy, a sector of 
the economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities; (2) create a serious inconsistency or otherwise interfere 
with an action taken or planned by another agency; (3) materially alter 
the budgetary impact of entitlements, grants, user fees, or loan 
programs or the rights and obligations of recipients thereof; or (4) 
raise novel legal or policy issues arising out of legal mandates, the 
President's priorities, or the principles set forth in the E.O.
    This rule amends an existing grant program and is not expected to 
impose any new compliance costs. Specifically, we are amending the 
existing program from a formula program to a discretionary grant 
program in accordance with section 3010 of SAFETEA-LU. We believe that 
the industry costs and benefits of the Clean Fuels Grant Program do not 
warrant designating this as a significant rule under E.O. 12866 because 
it involves grant application procedures and will not cost more than 
$120 million annually. Additionally, we provide administrative relief 
in the reporting criteria by decreasing the reporting period from 
quarterly to semiannually. For these reasons, we have determined that 
this rule is a no significant regulatory action under section 3(f) of 
E.O. 12866. Accordingly, it has not been reviewed by OMB.

Executive Order 13132

    This rule has been analyzed in accordance with the principles and 
criteria contained in E.O. 13132 (Federalism). This rule does not 
include any provisions that have substantial direct effect on the 
States, the relationship between the national government and the 
States, or the distribution of power and responsibilities among the 
various levels of government. Therefore, the consultation and funding 
requirements of E.O. 13132 do not apply because this rule only sets 
forth application procedures for an existing formula grant program that 
has been statutorily amended to a discretionary grant program.

Executive Order 13175

    This rule has been analyzed in accordance with the principles and 
criteria of E.O. 13175 (Consultation and Coordination with Indian 
Tribal Governments). Because the proposal does not have tribal 
implications and does not impose direct compliance costs, the funding 
and consultation requirements of E.O. 13175 do not apply.

Executive Order 13272 and the Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601-612), requires each 
agency to analyze regulations and proposals to assess their impact on 
small businesses and other small entities to determine whether the rule 
or proposal will have a significant economic impact on a substantial 
number of small entities.
    We evaluated the effects of this rule on small entities and 
determined that it will not have a significant effect on a substantial 
number of small entities. This rule imposes no new costs because it 
merely modifies the application procedures for an existing grant 
program.

Paperwork Reduction Act

    This rule includes information collection requirements subject to 
the Paperwork Reduction Act. OMB previously approved our information 
collection request under the Clean Fuels Formula Grant Program, 2132-
0560. However, that approval expired on August 31, 2003, because 
funding was not allocated for the program.
    Since Congress may provide funding in future fiscal years, we will 
submit a new information collection request to OMB. The affected public 
under this rulemaking remains public transportation providers who apply 
for Federal funds under this program. Our new information collection 
request will not include any new reporting requirements. In fact, the 
rule decreases reporting because we modify the reporting period from 
quarterly to semiannually.

Unfunded Mandates Reform Act of 1995

    This rule does not propose unfunded mandates under the Unfunded 
Mandates Reform Act of 1995. The rule will not result in costs of $100 
million or more (adjusted for inflation), in the aggregate, to any of 
the following: State, local, or Native American tribal governments, or 
the private sector.

National Environmental Policy Act

    The National Environmental Policy Act of 1969, (42 U.S.C. 4321-
4347), requires Federal agencies to consider the consequences of major 
federal actions and prepare a detailed statement on actions 
significantly affecting the quality of the human environment. Since 
this rule promotes the use of clean fuels in vehicles used for public 
transportation, it potentially may have a positive impact on the 
environment. Alternatively, there are no significant environmental 
impacts associated with this proposed rule.

List of Subjects in 49 CFR Part 624

    Grant Programs--Transportation, Public transportation, Reporting 
and record keeping requirements.

0
For the reasons set forth in the preamble, FTA amends 49 CFR part 624 
as follows:

PART 624--CLEAN FUELS GRANT PROGRAM

0
1. The authority citation for part 624 is revised to read as follows:

    Authority: 49 U.S.C. 5308; 49 U.S.C. 5334(a); 49 CFR 1.51.


0
2. The heading to part 624 is revised to read as set forth above.
0
3. Revise Sec.  624.1 to read as follows:


Sec.  624.1  Eligible applicant.

    (a) An eligible applicant is:

[[Page 15053]]

    (1) A designated recipient (designated recipient has the same 
meaning as in 49 U.S.C. 5307(a)(2)); or
    (2) A recipient for an urbanized area with a population of less 
than 200,000 (smaller urbanized area). The State in which the smaller 
urbanized area is located shall act as the recipient.
    (b) An eligible applicant, as defined in paragraph (a) of this 
section, shall operate in an area that is either:
    (1) An ozone or carbon monoxide nonattainment area as specified 
under section 107(d) of the Clean Air Act (42 U.S.C. 7407(d)); or
    (2) A maintenance area for ozone or carbon monoxide.

0
4. Amend Sec.  624.3 by revising paragraph (a) and (c) (3) through (6) 
to read as follows:


Sec.  624.3  Eligible activities.

    (a) Eligible activities include purchasing or leasing clean fuel 
buses and constructing new or improving existing public transportation 
facilities to accommodate clean fuel buses.
* * * * *
    (c) * * *
    (3) At the discretion of the Administrator, projects relating to 
clean fuel, biodiesel, hybrid electric, or zero emissions technology 
buses that exhibit equivalent or superior emissions reductions to 
existing clean fuel or hybrid electric technologies.
    (4) The Federal share for eligible activities undertaken for the 
purpose of complying with or maintaining compliance with the Clean Air 
Act under this program shall be limited to 90 percent of the net 
(incremental) cost of the activity.
    (i) The Administrator may exercise discretion and determine the 
percentage of the Federal share for eligible activities to be less than 
90 percent.
    (ii) An administrative determination per this subsection will be 
published in accordance with Sec.  624.5(a).
    (5) Funding for clean diesel buses shall be limited to not more 
than 25 percent of the amount made available each fiscal year to carry 
out the program.
    (6) Any amount made available for this section shall remain 
available to an eligible activity for two years after the fiscal year 
for which the amount is provided. Any amount that remains unobligated 
at the end of the three-year-period shall be added to the amount made 
available to carry out the program in the following fiscal year.

0
5. Revise Sec.  624.5 to read as follows:


Sec.  624.5  Application process.

    (a) FTA shall publish a Notice of Funding Availability in the 
Federal Register each fiscal year that funding is made available for 
the Clean Fuels program. The notice shall provide the criteria by which 
the eligible projects will be evaluated for selection and the 
Administrator's determination of the net Federal share for projects 
funded under this Part.
    (b) The Administrator shall determine the criteria for selecting 
proposed projects for funding, which may include, but are not limited 
to the following factors:
    (1) Whether the proposed project is a transportation control 
measure in an approved State Implementation Plan;
    (2) The benefits of the proposed project in reducing 
transportation-related pollutants;
    (3) Consistency with the recipient's fleet management plan;
    (4) The applicant's ability to implement the project and facilities 
to maintain and fuel the proposed vehicles;
    (5) The applicant's coordination of the proposed project with other 
public transportation entities or other related projects within the 
applicant's Metropolitan Planning Organization or the geographic region 
within which the proposed project will operate.
    (6) The proposed project's ability to support emerging clean fuels 
technologies or advanced technologies for transit buses.

0
6. Revise Sec.  624.9 to read as follows:


Sec.  624.9  Grant requirements.

    A grant under this section shall be subject to the following 
requirements of 49 U.S.C. 5307(d):
    (a) General. All recipients shall maintain and report financial and 
operating information on an annual basis, as prescribed in 49 CFR part 
630, and the most recent National Transit Database Reporting Manual.
    (b) Labor standards. As a condition of financial assistance under 
49 U.S.C. 5308, the interests of employees affected by the assistance 
shall be protected under arrangements that the Secretary of Labor 
concludes are fair and equitable.
    (c) Satisfactory continuing control. An FTA grantee shall:
    (1) Maintain control over federally funded property;
    (i) Ensure that it is used in transit service; and
    (ii) Dispose of it in accordance with Federal requirements.
    (2) Under this paragraph (c), if the grantee leases federally 
funded property to another party, the lease must provide the grantee 
satisfactory continuing control over the use of that property as 
determined in two areas: real property (land) and facilities; and 
personal property (equipment and rolling stock, both revenue and non-
revenue).
    (d) Maintenance. The grant applicant shall certify annually that 
pursuant to 49 U.S.C. 5307(d)(1)(C), it will maintain (federally 
funded) facilities and equipment. In addition, the grantee shall keep 
equipment and facilities acquired with Federal assistance in good 
operating order, which includes maintenance of rolling stock (revenue 
and non-revenue), machinery and equipment, and facilities.
    (e) Rates charged elderly and persons with disabilities during 
nonpeak hours. In accordance with 49 U.S.C. 5307(d)(1)(D), the grant 
applicant shall certify that the rates charged the elderly and persons 
with disabilities during nonpeak hours for fixed-route transportation 
using facilities and equipment financed with Federal assistance from 
FTA will not exceed one-half of the rates generally applicable to other 
persons at peak hours, whether the operation is by the applicant or by 
another entity under lease or otherwise.
    (f) Use of competitive procurements. Pursuant to 49 U.S.C. 
5307(d)(1)(E), the grant applicant shall certify that it will use 
competitive procurements and will not use procurements employing 
exclusionary or discriminatory specifications.
    (g) Compliance with Buy America provisions. The grant applicant 
shall certify that in carrying out a procurement authorized for this 
program, the applicant will comply with applicable Buy America laws.
    (h) Certification that local funds are available for the project. 
The grant applicant shall certify that the local funds are or will be 
available to carry out the project.
    (i) Compliance with national policy concerning elderly persons and 
individuals with disabilities. The grant applicant shall certify that 
it will comply with the requirements of 49 U.S.C. 5301(d) concerning 
the rights of elderly persons and persons with disabilities.
    (j) FTA Master Agreement. The grant applicant shall comply with 
applicable provisions of the FTA Master Agreement which is incorporated 
by reference in the grant agreement.

0
7. Amend Sec.  624.11 by revising paragraph (a) introductory text and 
paragraph (c) to read as follows:


Sec.  624.11  Reporting.

    (a) Recipients of financial assistance under 49 U.S.C. 5308 who 
purchase or lease hybrid electric, battery electric and fuel cell 
vehicles shall report semiannually the following information to the 
appropriate FTA Regional Office

[[Page 15054]]

for the first three years of the useful life of the vehicle:
* * * * *
    (c) Recipients of financial assistance under 49 U.S.C. 5308 that 
purchase or lease clean diesel vehicles are not required to report 
information beyond FTA grant reporting requirements for capital 
projects.

Appendix A to Part 624 [Removed]

0
8. Remove Appendix A to Part 624.

    Issued in Washington, DC, this 26th day of March 2007.
James S. Simpson,
Administrator.
[FR Doc. E7-5879 Filed 3-29-07; 8:45 am]
BILLING CODE 4910-57-P


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