64456 Federal Register / Vol. 62, No. 234 / Friday, December 5, 1997 / Notices

DEPARTMENT OF TRANSPORTATION

Federal Transit Administration

FTA Fiscal Year 1998 Apportionments,

Allocations and Program Information

AGENCY: Federal Transit Administration

(FTA), DOT.

ACTION: Notice.

SUMMARY: The Department of

Transportation (DOT) and Related

Agencies Appropriations Act, 1998

(Pub. L. 105–66), was signed into law by

President Clinton on October 27, 1997.

Pending further consideration of a

multi-year authorization next Spring,

Congress has passed a six-month

extension of the Intermodal Surface

Transportation Efficiency Act of 1991

(ISTEA), known as the Surface

Transportation Extension Act of 1997.

This act, signed by President Clinton on

December 1, 1997, provides additional

funding authorizations for the transit,

highway, and highway safety programs

for the period October 1, 1997, through

March 31, 1998. The previous

authorizations, under ISTEA, were

effective through September 30, 1997.

Funding for the Federal Transit

Administration (FTA) is derived from

two sources: the general funds of the

Treasury and motor fuel taxes deposited

into the Mass Transit Account of the

Highway Trust Fund. The 1998 DOT

Appropriations Act provides

$240,000,000 in general funds for the

formula programs under 49 U.S.C.

Sections 5307, 5311, and 5310. It also

provides general funds in the amount of

$52,250,000 for the transit planning and

research programs of 49 U.S.C. Sections

5303, 5313(b), and 5311(b). The Surface

Transportation Extension Act of 1997

provides an additional $1,328,400,000

for formula programs in the form of

contract authority from the Mass Transit

Account for a total of $1,568,400,000 for

the formula programs.

The capital programs are funded

exclusively with trust funded resources.

The Surface Transportation Extension

Act of 1997 provides $1,131,600,000 in

new contract authority, consisting of

$452,640,000 each for the Fixed

Guideway Modernization and New

Starts categories and $226,320,000 for

the Bus category. The obligational

authority for New Starts when

combined with $392,000,000 in

unobligated contract authority for New

Starts remaining under ISTEA exceeds

the obligation limitation in the 1998

DOT Appropriations Act of

$800,000,000. Therefore, this notice

contains allocations to make

$800,000,000 for New Starts available

for obligation.

This Notice contains (1) a listing of

the full amount of the fiscal year 1998

apportionments and allocations for the

formula, capital, and transit planning

and research programs, including both

trust funds and general funds, based on

the 1998 Appropriations Act and

Federal transit laws; and (2) a listing of

apportionments and allocations based

on the fiscal year 1998 available funds

for the Urbanized Area Formula

Program, the Nonurbanized Area

Formula Program, the Elderly and

Persons with Disabilities Program, the

Rural Transit Assistance Program, the

Capital Program, the Metropolitan

Planning Program, and the State

Planning and Research program, in

accordance with the 1998 DOT

Appropriations Act and the Surface

Transportation Extension Act of 1997.

As soon as authorizing legislation

covering the remainder of the fiscal

year, April 1, 1998, through September

30, 1998, has been enacted, the entire

apportionment will be made available. If

the reauthorization act affects the

distribution of funds within the

programs, FTA will republish the

apportionments and allocations in their

entirety, taking the provisions of both

the 1998 DOT Appropriations Act and

the reauthorization act into

consideration. In any case, even though

the Surface Transportation Extension

Act of 1997 provides contract

authorizations for the period October 1,

1997, through March 31, 1998, funding

is available to grantees throughout the

typical period of availability for each

specific program. For example,

Urbanized Area Formula Program

funding is available to the grantees for

fiscal year 1998 plus the next three

years through fiscal year 2001. In the

interim, grantees are able to obligate the

fiscal year 1998 available

apportionments, allocations, and

carryover balances remaining under the

various FTA formula and capital

programs.

Also included in this Notice is a

listing of prior year unobligated

earmarks for the Section 5309 New

Starts and Bus Programs as in previous

year notices. In addition, the FTA policy

regarding pre-award authority to incur

project costs, as well as other pertinent

program information, is included.

FOR FURTHER INFORMATION CONTACT: The

appropriate FTA Regional

Administrator for grant-specific

information and issues; Patricia Levine,

Director, Office of Resource

Management and State Programs, (202)

366–2053, for general information about

the Urbanized Area Formula Program,

the Nonurbanized Area Formula

Program, the Elderly and Persons with

Disabilities Program, the Rural Transit

Assistance Program, or the Capital

Program; or Robert Stout, Director,

Office of Planning Operations, (202)

366–6385, for general information

concerning the Metropolitan Planning

Program and the State Planning and

Research Program.

SUPPLEMENTARY INFORMATION:

TABLE OF CONTENTS

I. BACKGROUND

II. OVERVIEW OF APPROPRIATIONS FOR

GRANT PROGRAMS

A. General

B. Funds Available for Obligation

C. Project Management Oversight

III. EXPANDED DEFINITION OF CAPITAL

A. Preventive Maintenance

B. Operating Assistance for Urbanized

Areas Less Than 200,000 In Population

IV. DEPARTMENTAL INITIATIVES

A. FTA Home Page on the Internet

B. State Infrastructure Banks

V. SECTION 5307 URBANIZED AREA

FORMULA PROGRAM

A. Total Urbanized Area Formula

Apportionments

B. Data Used for Urbanized Area Formula

Apportionments

C. Adjustments for Energy and Operating

Efficiencies

D. Urbanized Area Formula Fiscal Year

1998 Apportionments to Governors

E. Urbanized Area Formula Operating

Assistance Limitations

F. Statewide Operating Assistance

Limitations

G. Designated Transportation Management

Areas

H. Urbanized Area Formula Funds Used

for Highway Purposes

VI. SECTION 5311 NONURBANIZED AREA

FORMULA PROGRAM AND SECTION

5311(b) RURAL TRANSIT ASSISTANCE

PROGRAM (RTAP)

A. Nonurbanized Area Formula Program

B. Rural Transit Assistance Program

(RTAP)

VII. SECTION 5310 ELDERLY AND

PERSONS WITH DISABILITIES

PROGRAM

VIII. SURFACE TRANSPORTATION

PROGRAM ‘‘FLEXIBLE’’ FUNDS USED

FOR TRANSIT PURPOSES (Title 23,

U.S.C.)

A. Transfer Process

B. Matching Share for Flexible Funds

C. Other Funds Transferred to FTA

IX. SECTION 5309 CAPITAL PROGRAM

A. Fixed Guideway Modernization

B. New Starts

C. Bus

X. UNIT VALUES OF DATA FOR SECTION

5307 URBANIZED AREA FORMULA

PROGRAM, SECTION 5311

NONURBANIZED AREA FORMULA

PROGRAM, AND SECTION 5309 FIXED

GUIDEWAY MODERNIZATION

PROGRAM

XI. SECTION 5303 METROPOLITAN

PLANNING PROGRAM AND SECTION

5313(b) STATE PLANNING AND

RESEARCH PROGRAM
Federal Register / Vol. 62, No. 234 / Friday, December 5, 1997 / Notices 64457

A. Metropolitan Planning Program

B. State Planning and Research Program

C. Data Used for Metropolitan Planning

Apportionments and State Planning and

Research Apportionments

D. FHWA Metropolitan Planning Program

and State Planning and Research

Program

E. Local Match Waiver for Job Access

Planning Activities

F. Planning Emphasis Areas

G. Federal Planning Certification Reviews

H. Consolidated Planning Grant

XII. PERIOD OF AVAILABILITY OF FUNDS

XIII. NOTICE OF PRE-AWARD AUTHORITY

TO INCUR PROJECT COSTS

A. Background

B. Current Coverage

C. Conditions

D. Environmental, Planning and Other

Requirements

XIV. RAIL FIXED GUIDEWAY SYSTEMS:

STATE SAFETY OVERSIGHT (49 CFR

PART 659)

XV. ELECTRONIC GRANT MAKING AND

MANAGEMENT INITIATIVES

A. Background

B. Graphical User Interface

C. Fiscal Year 1998 Emphasis

XVI. 1998 ANNUAL LIST OF

CERTIFICATIONS AND ASSURANCES

XVII. QUARTERLY APPROVAL OF GRANTS

XVIII. GRANT APPLICATION PROCEDURES

TABLES

1. FTA FY 1998 APPROPRIATIONS AND

FUNDS AVAILABLE FOR GRANT

PROGRAMS

2. FTA FY 1998 SECTION 5307

URBANIZED AREA FORMULA

APPORTIONMENTS

3. FTA FY 1998 SECTION 5311

NONURBANIZED AREA FORMULA

APPORTIONMENTS, AND SECTION

5311(b) RURAL TRANSIT ASSISTANCE

PROGRAM (RTAP) ALLOCATIONS

4. FTA FY 1998 Section 5310 elderly and

persons with disabilities apportionments

5. FTA FY 1998 sectuib 5309 fixed

guideway modernization apportionments

6. FTA FY 1998 section 5309 new start

allocations

6A. FTA prior year unobligated section

5309 new start allocations

7. FTA FY 1998 section 5309 bus

allocations

7A. FTA prior year unobligated section

5309 BUS allocations

8. FTA FY 1998 section 5303 metropolitan

planning apportionments and section

5313(b) state planning and research

apportionments

9. Unit values of data—FTA FY 1998

formula grant apportionments

I. Background

Urbanized Area Formula Program

funds are apportioned by statutory

formula to urbanized areas and to the

Governors to provide capital, operating

and planning assistance in urbanized

areas. Nonurbanized Area Formula

Program funds are apportioned by

statutory formula to the Governors for

capital, operating and administrative

assistance in nonurbanized areas. The

Elderly and Persons with Disabilities

Program funds are apportioned by

statutory formula to the Governors to

provide capital assistance to

organizations providing transportation

service for the elderly and persons with

disabilities. Fixed Guideway

Modernization funds are apportioned by

statutory formula to specified urbanized

areas for capital improvements in rail

and other fixed guideways. Funds

appropriated for the Metropolitan

Planning Program are apportioned by a

statutory formula to the Governors for

allocation by them to Metropolitan

Planning Organizations (MPOs) in

urbanized areas or portions thereof.

Appropriated funds for the State

Planning and Research Program also are

apportioned to states by a statutory

formula. New Start funds identified for

specific projects in the 1998 DOT

Appropriations Act and Bus fund

allocations in the accompanying

Conference Report are also included in

this Notice.

II. Overview of Appropriations for

Grant Programs

A. General

In fiscal year 1998, the appropriation

and obligation limitation for the

Urbanized Area Formula Program and

the Nonurbanized Area Formula

Program is $2,437,780,611. Of this

amount, 94.50 percent ($2,303,702,677)

would be available to the Urbanized

Area Formula Program, and 5.50 percent

($134,077,934) would be available to the

Nonurbanized Area Formula Program.

The other program appropriations

contained in this Notice are as follows:

$4,500,000 for the Rural Transit

Assistance Program (RTAP);

$62,219,389 for the Elderly and Persons

with Disabilities Program; $39,500,000

for the Metropolitan Planning Program;

$8,250,000 for the State Planning and

Research Program; and $2,000,000,000

in obligation limitation for the Capital

Program. Of the Capital Program

amount, $800,000,000 is for Fixed

Guideway Modernization, $800,000,000

is for New Starts, and $400,000,000 is

for Bus.

Table 1 displays the amounts of

obligation limitation and appropriations

for these programs, including

adjustments and final apportionment

and allocation amounts. Also included

is a listing of amounts for the formula

and capital programs based on the fiscal

year 1998 available funds. The

following text provides a narrative

explanation for the funding levels and

other factors affecting these

apportionments and allocations.

B. Funds Available for Obligation

Because the Surface Transportation

Extension Act of 1997 only provides

contract authority through March 31,

1998, FTA is publishing both (1) the

apportionment and allocation tables that

contain the full program levels in the

DOT Appropriations Act for fiscal year

1998; and (2) the apportionments and

allocations based on the fiscal year 1998

available funds for the various

programs. The column titled ‘‘FY 1998

Apportionment’’ includes both trust

funds (contract authority) and general

funds, and does not represent the

amount that is actually available for

obligation at this time. Rather, it reflects

the total dollar amount of obligation

limitation and appropriations in the

1998 DOT Appropriations Act, once a

full year contract authority is made

available. Only funds shown in the

column titled ‘‘FY 1998 Available

Apportionment,’’ may be obligated

pending further reauthorizing

legislation.

C. Project Management Oversight

49 U.S.C. Section 5327 allows the

Secretary of Transportation to use not

more than one-half of one percent of the

funds made available under the Capital

Program; the Urbanized Area Formula

Program, the Nonurbanized Area

Formula Program; the National Capital

Transportation Act, as amended; and an

additional one-quarter of one percent of

Capital Program funds to contract with

any person to oversee the construction

of any major project under these

statutory programs and to conduct

safety, procurement, management and

financial reviews and audits.

The 1998 DOT Appropriations Act

states ‘‘That none of the funds in this

Act shall be available for the execution

of contracts under section 5327(c) of

title 49, United States Code, in an

aggregate amount that exceeds

$15,000,000.’’ Accordingly, the Project

Management Oversight (PMO) amount

takes into account both the 1998 DOT

Appropriations Act and Federal transit

laws. The obligation limitation and

appropriations for the Sections 5307,

5311, and 5309 Programs, and the

National Capital Transportation Act, as

amended, total $4,637,780,611. The

higher amount as authorized under

Federal transit laws was reduced to the

$15,000,000 required by the 1998 DOT

Appropriations Act by taking a pro rata

reduction across all categories of the

four programs. Therefore, .32343056 of

one percent of the funds appropriated

within the obligation limitation and

appropriation for the Urbanized Area

Formula Program; the Nonurbanized
64458 Federal Register / Vol. 62, No. 234 / Friday, December 5, 1997 / Notices

Area Formula Program; the Capital

Program; and the National Capital

Transportation Act, as amended, for

fiscal year 1998, have been reserved for

these purposes before apportionment of

the funds.

III. Expanded Definition of Capital

A. Preventive Maintenance

Effective for fiscal year 1998,

preventive maintenance will be eligible

for Federal assistance as a capital

expense with a Federal/local share ratio

of 80/20 in the FTA formula programs.

Thus preventive maintenance is an

eligible capital cost under the Section

5307 Urbanized Area Formula Program;

the Section 5310 Elderly and Persons

with Disabilities Program; and the

Section 5311 Nonurbanized Area

Formula Program. This provision does

not apply to the Section 5309 Capital

Program. This change implements

Section 316 of the 1998 DOT

Appropriations Act, in which Congress

amended the definition of an eligible

capital project under the FTA formula

programs to add preventive

maintenance.

Since the DOT Appropriations Act

covers only Federal fiscal year 1998,

this new policy applies only to funds

within the obligation limitation and

appropriation in the DOT

Appropriations Act for fiscal year 1998.

It does not apply to carryover funds

apportioned in previous years.

Preventive maintenance costs for

fiscal year 1998 are defined as all

maintenance costs. For general guidance

as to the definition of eligible

maintenance costs, the grantee should

refer to the definition of maintenance in

the most recent National Transit

Database (NTD) reporting manual.

During fiscal year 1998 a grantee may

continue to request assistance for capital

expenses under the FTA policies

governing associated capital

maintenance items (spare parts),

maintenance of vehicles leased under

contract, and vehicle overhauls; or a

grantee may choose to capture all

maintenance under preventive

maintenance, and also may continue to

request operating assistance within the

grantee’s operating assistance limitation

at the 50/50 match share. However, a

grantee may not count the same costs

twice. Preventive maintenance costs

eligible for FTA capital assistance from

fiscal year 1998 appropriations are those

costs incurred by a grantee within a

local fiscal year ending during calendar

1997, or thereafter. If a grantee

purchases service instead of operating

service directly, and maintenance is

included in the contract for that

purchased service, then the grantee may

apply for capital assistance under

preventive maintenance for the actual

maintenance costs of the purchased

service.

For accounting purposes, the grantee

is cautioned not to confuse the fact that

an item generally considered to be an

operating expense is now eligible for

FTA capital assistance. Generally

accepted accounting principles and the

grantee’s accounting system determine

those costs that are to be accounted for

as operating costs. The National Transit

Database Reporting System (NTD)

follows generally accepted accounting

principles, and so a grantee reporting to

the NTD must report the operating costs

the grantee has incurred as operating

regardless of grant eligibility as capital.

Nevertheless, under provisions of the

fiscal year 1998 Appropriations Act,

some of those operating costs, while

continuing to be accounted for as

operating costs in the grantee’s

accounting records, are now eligible for

FTA capital assistance.

B. Operating Assistance for Urbanized

Areas Less Than 200,000 in Population

Section 316 of the 1998 DOT

Appropriations Act further amended the

definition of a capital project to include

‘‘financing the operating costs of

equipment and facilities used in mass

transportation in urbanized areas with a

population of less than 200,000’’.

A grantee in an urbanized area of less

than 200,000 in population may elect to

employ this amended definition of

capital and request 80 percent Federal

assistance for funding net operating

expenses, or the grantee may choose to

use the fiscal year 1998 operating

assistance limitations published in this

notice and apply for operating

assistance at the 50 percent Federal

share. If operating expenses are applied

for as capital costs, the operating

assistance limitation does not apply.

The net operating expenses eligible for

capital funding under the amended

definition of capital will be determined

according to guidance in FTA Circular

9030.1B, Appendix D. As for preventive

maintenance, only fiscal year 1998

funds may be used for operating

assistance as a capital cost.

IV. Departmental Initiatives

A. FTA Home Page on the Internet

FTA provides extended customer

service by making available transit

information on the FTA Home Page web

site, including this Apportionment

Notice. Also posted on the web site are

FTA program circulars: C9030.1B,

Urbanized Area Formula Program: Grant

Application Instructions, dated October

10, 1996; C9040.1D, Nonurbanized Area

Formula Program Guidance and Grant

Application Instructions, dated May 8,

1997; C9070.1D, Elderly and Persons

with Disabilities Program Guidance and

Application Instructions, dated October

22, 1997; C9300.1, Capital Program:

Grant Application Instructions, dated

September 29, 1995; 4220.1D, Third

Party Contracting Requirements, dated

April 15, 1996; C5010.1B, Grant

Management Guidelines, dated

September 7, 1995; and C8100.1B,

Program Guidance and Application

Instructions for Metropolitan Planning

Program Grants, dated October 25, 1996.

The fiscal year 1998 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 users include the 1996

Statistical Summaries of FTA Grant

Assistance Programs, and the National

Transit Database Profiles.

The FTA Home Page may be accessed

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

circulars and other guidance are at:

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

Grantees should check our web site

frequently to keep up to date on new

postings.

B. State Infrastructure Banks

The State Infrastructure Bank (SIB)

pilot program was authorized in the

National Highway System Designation

Act of 1995. It allows the creation of

state-level institutions that can use

Federal Highway Administration

(FHWA) and FTA funds to make loans

and loan guarantees (and other forms of

credit enhancement) to transit and

highway projects. The SIBs may earn

interest on deposits of Federal funds,

and they may charge below-market

interest rates on long-term loans.

In 1996, ten (10) states were

designated to establish SIBs. On June

19, 1997, an additional 29 states were

designated to participate in the SIB Pilot

Program. The Secretary of

Transportation has awarded

$150,000,000 in capitalization funding

to these 29 designated states.

V. Section 5307 Urbanized Area

Formula Program

A. Total Urbanized Area Formula

Apportionments

In addition to the appropriated fiscal

year 1998 Urbanized Area Formula

funds of $2,303,702,677, the

apportionment also includes $7,162,381

in deobligated funds which have

become available for reapportionment

for the Urbanized Area Formula
Federal Register / Vol. 62, No. 234 / Friday, December 5, 1997 / Notices 64459

Program as provided by 49 U.S.C.

5336(i).

Table 2 displays the amount

apportioned for the Urbanized Area

Formula Program. After the .32343056

of one percent for PMO is reserved

($7,450,879), the amount appropriated

for this program is $2,296,251,798. The

funds to be reapportioned, described in

the previous paragraph, have then been

added. Thus, the total amount

apportioned for this program is

$2,303,414,179.

Table 2 also shows by urbanized area

and state the amount of funds which are

currently available. The total of

$1,444,234,826 includes $1,441,735,458

in fiscal year 1998 trust funded contract

authority and general fund

appropriation, $7,162,381 in

deobligated funds from previous years

which have become available for

reapportionment, minus $4,663,013 for

PMO. The available operating assistance

limitation in the amount of

$150,000,000 is also shown on Table 2.

B. Data Used for Urbanized Area

Formula Apportionments

Data from the 1996 NTD (49 U.S.C.

5335) Report Year submitted in late

1996 and early 1997 have been used to

calculate the fiscal year 1998 Urbanized

Area Formula apportionments for

urbanized areas 200,000 in population

and over. The population and

population density figures used in

calculating the Urbanized Area Formula

are from the 1990 Census.

C. Adjustments for Energy and

Operating Efficiencies

49 U.S.C. 5336(b)(2)(E) provides that,

if a recipient of Urbanized Area Formula

Program funds demonstrates to the

satisfaction of the Secretary that energy

or operating efficiencies would be

achieved by actions that reduce revenue

vehicle miles but provide the same

frequency of revenue service to the same

number of riders, the recipient’s

apportionment under 49 U.S.C.

5336(b)(2)(A)(i) shall not be reduced as

a result of such actions. One recipient

has submitted data acceptable to FTA in

accordance with this provision.

Accordingly, the revenue vehicle miles

used in the Urbanized Area Formula

database to calculate the fiscal year 1998

Urbanized Area Formula apportionment

reflect the amount the recipient would

have received without the reductions in

mileage.

D. Urbanized Area Formula Fiscal Year

1998 Apportionments to Governors

The total Urbanized Area Formula

apportionment to the Governor for use

in areas under 200,000 in population for

each state is shown on Table 2. Table 2

also contains the total apportionment

amount attributable to each of the

urbanized areas within the state. The

Governor may determine the allocation

of funds among the urbanized areas

under 200,000 in population with one

exception. As further discussed below

in Section G, funds attributed to an

urbanized area under 200,000 in

population, located within the planning

boundaries of a transportation

management area, must be obligated in

that area.

E. Urbanized Area Formula Operating

Assistance Limitations

The fiscal year 1998 limitations on the

amount of Urbanized Area Formula

funds that may be used for operating

assistance are shown on Table 2 with

the fiscal year 1998 apportionment.

The operating assistance limitations

for all urbanized areas have been

adjusted by 49 U.S.C. 5336(d)(2) to

reflect the increase in the Consumer

Price Index (CPI) for all urban

consumers during the most recent

calendar years. The CPI Detailed Report,

December 1996, published by the

Department of Labor (DOL), establishes

that the calendar year 1996 CPI increase

for all urban consumers is 3.3 percent.

This increase was applied against the

base operating assistance limitation

calculated in accordance with 49 U.S.C.

5336(d)(2).

These adjustments result in an overall

national fiscal year 1998 authorized

operating assistance limitation level of

$1,178,642,366. However, the 1998 DOT

Appropriations Act limits the

nationwide availability for operating

assistance to a maximum of

$150,000,000. Further, it maintains the

level of transit operating assistance to

urbanized areas of less than 200,000 in

population at 75 percent of the amount

of operating assistance such areas

received in fiscal year 1995.

Accordingly, the operating assistance

limitation published in this Notice takes

into account both the 1998 DOT

Appropriations Act and Federal transit

laws. Therefore, the higher operating

assistance limitation as authorized

under Federal transit laws

($1,178,642,366) was reduced to the

$150,000,000 required by the 1998 DOT

Appropriations Act by taking a pro rata

reduction across all categories of

grantees. Further, the operating

assistance limitation to urbanized areas

less than 200,000 in population was

adjusted to $92,949,803 or 75 percent of

the amount of their fiscal year 1995

level of $123,933,070.

The operating assistance limitation of

$85,791 for Flagstaff, Arizona (a newly

designated urbanized area under

200,000 in fiscal year 1996), was then

added to the amount of the fiscal year

1995 level, thereby increasing the fiscal

year 1998 level for these areas to

$93,035,594. The remaining $56,964,406

of the $150,000,000 was prorated to

urbanized areas above 200,000 in

population, as authorized by the 1998

DOT Appropriations Act.

Consistent with the 1998 Conference

Report, the Secretary hereby directs

each area of 1,000,000 or more in

population to give priority

consideration to the impact of

reductions in operating assistance on

smaller transit authorities operating

within the area, and to consider the

needs and resources of such transit

authorities when the limitation is

distributed among all transit authorities

operating in the area.

F. Statewide Operating Assistance

Limitations

49 U.S.C. 5307(f) specifies that in any

case in which a statewide agency or

instrumentality is responsible under

state laws for the financing,

construction and operation, directly, by

lease, contract or otherwise, of public

transportation services, and when such

statewide agency or instrumentality is

the designated recipient of FTA funds,

and when the statewide agency or

instrumentality provides service among

two or more urbanized areas, the

statewide agency or instrumentality

shall be allowed to apply for operating

assistance up to the combined total

permissible amount of all urbanized

areas in which it provides service,

regardless of whether the amount for

any particular urbanized area is

exceeded. However, the amount of

operating assistance provided for

another state or local transportation

agency within the affected urbanized

areas may not be reduced.

G. Designated Transportation

Management Areas

All urbanized areas over 200,000 in

population have been designated as

transportation management areas

(TMAs), in accordance with 49 U.S.C.

Section 5305. These designations were

formally made in a Federal Register

notice dated May 18, 1992 (57 FR

21160), signed by the Federal Highway

Administrator and the Federal Transit

Administrator. Additional areas may be

designated as TMAs upon the request of

the Governor and the MPO designated

for such area or the affected local

officials. As of October 1, 1997, two

additional TMAs have been formally

designated: Petersburg, Virginia,

comprised solely of the Petersburg,
64460 Federal Register / Vol. 62, No. 234 / Friday, December 5, 1997 / Notices

Virginia, urbanized area; and Santa

Barbara, Santa Maria, and Lompoc,

California, which were combined and

designated as one 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

boundaries, which have been

established by the MPO for the

designated TMA, also include one or

more urbanized areas with less than

200,000 in population. Where this

situation exists, the discretion of the

Governor to allocate Urbanized Area

Formula program ‘‘Governor’s

Apportionment’’ funds for urbanized

areas with less than 200,000 in

population is restricted.

As required by 49 U.S.C. 5307(a)(2), a

recipient(s) must be designated to

dispense the Urbanized Area Formula

funds attributable to TMAs. Those

urbanized areas that do not already have

a designated recipient must name one

and notify the appropriate FTA regional

office of the designation. This would

include those urbanized areas with less

than 200,000 in population that may

receive TMA designation

independently, or those with less than

200,000 in population which are

currently included within the

boundaries of a larger designated TMA.

In both cases, the Governor would only

have discretion to allocate Governor’s

Apportionment funds attributable to

areas which are outside of designated

TMA boundaries. In order for the FTA

and Governors to know which

urbanized areas under 200,000 in

population are included within the

boundaries of an existing TMA, and so

that they can be identified in future

Federal Register notices, each MPO

whose TMA planning boundaries

include these smaller urbanized areas is

asked to identify such areas to the FTA.

This notification should be made in

writing to the Associate Administrator

for Program Management, Federal

Transit Administration, 400 Seventh

Street, SW, Washington, DC 20590, no

later than July 1 of each fiscal year. To

date, FTA has been notified of the

following urbanized areas with less than

200,000 in population that are included

within the planning boundaries of

designated TMAs:

Designated TMA Small urbanized area included in TMA boundaries

Baltimore, Maryland ........................................................................................................... Annapolis, Maryland.

Dallas-Fort Worth, Texas ................................................................................................... Denton, Texas.

Lewisville, Texas.

Houston, Texas .................................................................................................................. Galveston, Texas.

Texas City, Texas.

Orlando, Florida ................................................................................................................. Kissimmee, Florida.

Philadelphia, Pennsylvania ................................................................................................ Pottstown, Pennsylvania.

Pittsburgh, Pennsylvania ................................................................................................... Monessen, Pennsylvania.

Steubenville-Weirton, OH-WV-PA (PA portion).

Seattle, Washington ........................................................................................................... Bremerton, Washington.

Washington, DC-MD-VA .................................................................................................... Frederick, Maryland (MD portion).

H. Urbanized Area Formula Funds Used

for Highway Purposes

Urbanized Area Formula funds

apportioned to a TMA, except for those

amounts which can be used for the

payment of operating expenses, are also

available for highway projects if the

following three conditions are met: (1)

Such use must be approved by the MPO

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)

funds may be available for highway

projects under title 23, U.S.C., only if

funds used for the state or local share of

such highway projects are eligible to

fund either highway or transit projects.

Urbanized Area Formula funds which

are designated for highway projects will

be transferred to and administered by

the Federal Highway Administration

(FHWA). The MPO should notify FTA

of its intent to program FTA funds for

highway purposes.

VI. Section 5311 Nonurbanized Area

Formula Program and Section 5311(b)

Rural Transit Assistance Program

(RTAP)

A. Nonurbanized Area Formula

Program

The fiscal year 1998 Nonurbanized

Area Formula apportionments to the

states totaling $134,819,045 are

displayed in Table 3. Of the

$134,077,934 appropriated, .32343056

of one percent ($433,649) was reserved

for PMO. In addition to the current

appropriation and obligation limitation,

the funds available for apportionment

include $1,174,760 in deobligated funds

from fiscal years prior to 1996.

Table 3 also shows a state-by-state

apportionment of the amount of funds

which are currently available. The total

of $84,813,897 includes $83,910,529 in

fiscal year 1998 trust funded contract

authority and general fund

appropriation, $1,174,760 in prior year

carryover available to be reapportioned,

minus $271,392 for PMO.

The population figures used in

calculating these apportionments are

from the 1990 Census.

The Nonurbanized Formula Program

provides capital, operating and

administrative assistance for areas less

than 50,000 in population. Each state

must spend no less than 15 percent of

its fiscal year 1998 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. Fiscal year

1998 Nonurbanized Area Formula grant

applications must reflect this level of

programming for intercity bus or

include a certification from the

Governor.

B. Rural Transit Assistance Program

(RTAP)

The fiscal year 1998 RTAP allocations

to the states totaling $4,678,778 are also

displayed on Table 3. This amount

includes $4,500,000 in fiscal year 1998

appropriated funds, and $178,778 in

prior year deobligated funds, which

have become available for reallocation

for this program.

Table 3 also shows a state-by-state

allocation of RTAP funds. RTAP is

totally general funded in fiscal year

1998; therefore, the entire appropriated

amount of $4,500,000 is currently

available plus $178,778 in

reapportioned funds.
Federal Register / Vol. 62, No. 234 / Friday, December 5, 1997 / Notices 64461

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

the states’ administration of the

Nonurbanized Area Formula Program.

VII. Section 5310 Elderly and Persons

With Disabilities Program

A total of $62,221,661 is apportioned

to the states for fiscal year 1998 for the

Elderly and Persons with Disabilities

Program. In addition to the fiscal year

1998 appropriation of $62,219,389, the

fiscal year 1998 apportionment also

includes $2,272 in prior year

unobligated funds which have become

available for reapportionment for the

Elderly and Persons with Disabilities

Program. Table 4 shows each state’s

apportionment.

Table 4 also shows a state-by-state

allocation of the amount of funds which

are currently available. The total of

$42,756,285 includes $42,754,013 in

fiscal year 1998 trust funded contract

authority and general fund

appropriation, and $2,272 in

reapportioned funds.

The formula for apportioning these

funds uses 1990 Census population data

for persons aged 65 and over and for

persons with disabilities.

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 nonprofit organizations in the area are not

readily available to carry out the service,

may receive these funds.

These funds may be transferred by the

Governor to supplement the Urbanized

Area Formula or Nonurbanized Area

Formula capital funds during the last 90

days of the fiscal year.

VIII. Surface Transportation Program

‘‘Flexible’’ Funds Used for Transit

Purposes (Title 23, U.S.C.)

A. Transfer Process

‘‘Flexible’’ DOT funds, such as

Surface Transportation Program (STP)

funds, Congestion Mitigation and Air

Quality (CMAQ) funds, or others, which

are designated for use in transit projects,

are transferred from the FHWA to FTA

after which FTA approves the project

and awards a grant. Flexible funds

designated for transit projects must

result from the metropolitan and state

planning and programming process, and

must be included in an approved State

Transportation Improvement Program

(STIP) before the funds can be

transferred. In order to initiate the

transfer process, the grantee must

submit a completed application to the

FTA Regional Office, and must notify

the state highway/transportation agency

that it has submitted an application

which requires a transfer of funds. Once

the state highway/transportation agency

determines that the state has sufficient

obligation authority, the state agency

notifies FHWA that the funds are to be

used for transit purposes and requests

that the funds be obligated by FHWA as

a transfer project to FTA. The flexible

funds transferred to FTA will be placed

in an urbanized area or state account for

one of the three existing formula

programs—Urbanized Area,

Nonurbanized Area, or Elderly and

Persons with Disabilities.

The flexible funds are then treated as

FTA formula funds, although they retain

a special identifying code. They may be

used for any purpose eligible under

these FTA programs except for

operating expenses. All FTA

requirements are applicable to

transferred funds. Flexible funds should

be combined with regular FTA formula

funds in a single annual grant

application.

B. Matching Share for Flexible Funds

The provisions of Title 23, U.S.C.

regarding the non-Federal share apply to

Title 23 funds used for transit projects.

Thus, flexible funds transferred to FTA

retain the same matching share that the

funds would have if used for highway

purposes and administered by the

FHWA.

There are three instances in which a

higher than 80 percent Federal share

would be maintained. 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 transit projects

funded with flexible funds in these

public land states. FHWA develops the

sliding scale matching ratios for the

increased Federal share.

Secondly, commuter carpooling and

vanpooling projects and transit safety

projects using flexible funds

administered by FTA may retain the

same 100 percent Federal share that

would be allowed for ride-sharing or

safety projects administered by the

FHWA. The third instance includes the

100 percent Federal safety projects;

however, these are subject to a

nationwide 10 percent program

limitation.

C. Other Funds Transferred to FTA

Certain demonstration projects

authorized in Title 23 are specified to be

used for transit projects and are more

appropriately administered by FTA. In

such cases, FHWA has transferred the

funds to FTA for administration. Since

these funds are not STP flexible funds,

they are transferred into the appropriate

Capital Program category (Bus, New

Starts, or Fixed Guideway

Modernization) for obligation and are

administered as Capital projects.

IX. Section 5309 Capital Program

A. Fixed Guideway Modernization

Fixed Guideway Modernization funds

are allocated by formula. Statutory

percentages were established to allocate

the first $497,700,000 to 11 fixed

guideway areas. The next $70,000,000 is

allocated one-half to these 11 urbanized

areas and one-half to other urbanized

areas with fixed guideways which are at

least seven years old on the basis of the

Urbanized Area Formula Program fixed

guideway tier formula factors. The

remaining funds are allocated to all of

these urbanized areas as one universe.

For fiscal year 1998, there is a

$800,000,000 obligation limitation for

fixed guideway modernization. After

deducting the .32343056 of one percent

for oversight ($2,587,445), $797,412,555

would be available for apportionment to

the specified urbanized areas for Fixed

Guideway Modernization funding.

Table 5 displays these apportionments.

Table 5 also shows a state and area

allocation of the fiscal year 1998 funds

which are currently available. The total

of $451,176,024 includes $452,640,000

in fiscal year 1998 trust funded contract

authority, minus $1,463,976 for PMO,

distributed on a pro rata basis as

directed in the Surface Transportation

Extension Act of 1997.

Funds apportioned for this section

must be used for capital projects to

modernize or improve fixed guideway

systems. The expanded definition of

capital to include preventive

maintenance does not apply to the

Fixed Guideway Modernization

Program.

All urbanized areas with fixed

guideway systems that are at least seven

years old are eligible to receive Fixed

Guideway Modernization funds. A
64462 Federal Register / Vol. 62, No. 234 / Friday, December 5, 1997 / Notices

request for the start-up service dates for

fixed guideways has been incorporated

into the NTD reporting system to ensure

that all eligible fixed guideway data is

included in the calculation of these

apportionments. A threshold level of

more than one mile of fixed guideway

is required to receive Fixed Guideway

Modernization funds. Therefore,

urbanized areas reporting one mile or

less of fixed guideway mileage under

the NTD are not included. Urbanized

areas should be aware that the formula

allocating Fixed Guideway

Modernization funds may be changed

under a new authorization act.

B. New Starts

The fiscal year 1998 obligation

limitation for New Starts is

$800,000,000.

The Project Management Oversight

(PMO) reduction was applied to this

amount and subtracted on a pro rata

basis from all 65 projects specified in

the 1998 DOT Appropriations Act. For

fiscal year 1998, this amount is

$2,587,445. This amount was computed

by applying .32343056 of one percent to

the obligation limitation. After

subtracting this amount from the

$800,000,000, a total of $797,412,555 is

available for obligation. The final

allocation for each of these projects,

which also reflects the PMO reduction,

is contained in Table 6 of this Federal

Register notice.

The Surface Transportation Extension

Act of 1997 provides $452,640,000 for

New Starts. This obligational authority

for New Starts when combined with

$392,000,000 in unobligated contract

authority for New Starts remaining

under ISTEA exceeds the obligation

limitation in the 1998 Appropriations

Act of $800,000,000. Therefore,

$800,000,000 minus $2,587,445 for

PMO is currently available.

Prior year unobligated appropriations

for New Starts in the amount of

$299,434,442 remain available for

obligation in fiscal year 1998. These

allocations are displayed in Table 6A.

C. Bus

The fiscal year 1998 obligation

limitation for Bus is $400,000,000. In

addition Congress reprogrammed

$975,000 in unobligated Bus funds

originally appropriated in fiscal year

1995, yielding an overall total of

$400,975,000. This entire amount was

allocated to projects specified in the

1998 DOT Appropriations Act. After

deducting the .32343056 of one percent

for oversight ($1,293,722) from the 1998

appropriated amount ($400,000,000),

$399,681,278 remains available for

projects.

The Conference Report accompanying

the 1998 DOT Appropriations Act

earmarked all of the fiscal year 1998 Bus

funds to specified states or localities for

bus and bus-related projects. Where

funds were earmarked to states, in most

cases, there were additional

suballocations to local entities. In

Louisiana the suballocation is included

in the Conference Report; however, a

letter dated October 14, 1997, from

Chairman Frank R. Wolf of the House

Appropriations Committee clarifies the

amount of suballocations within the

State. This clarification is reflected in

the Bus allocations displayed in Table 7.

The conference report directs the FTA

to make available to the state of

Michigan for the procurement of buses

and bus-related equipment funds

($4,000,000) originally provided in the

fiscal year 1995 Department of

Transportation and Related Agencies

Appropriations Act for a passenger

intermodal transit center in Detroit,

Michigan.

The Conferees also direct the FTA to

reallocate funds in the amount of

$4,962,500, made available in Public

Law 103–331 for the Twin Cities Central

Corridor project and not obligated by

the end of fiscal year 1997, and make

these funds available for similar bus and

bus facilities projects in the Twin Cities

Central Corridor.

Also shown in Table 7 is a state and

area allocation of the fiscal year 1998

funds which are currently available. The

total of $226,563,012 includes

$226,320,000 in fiscal year 1998 trust

funded contract authority, $975,000 in

reprogrammed funds, minus $731,988

for PMO.

All bus projects must be eligible for

FTA funding under FTA Circular 9300.1

in order to be approved by FTA. In

previous years, there have been funds

allocated for projects which were

subsequently found to be ineligible for

FTA assistance. Applicants with

projects listed in Table 7 are advised to

consult early in the fiscal year with the

appropriate regional office regarding the

project to ensure its eligibility for

funding. This early consultation is

especially critical when exercising preaward authority.

Because the .32343056 of one percent

for PMO was subtracted from the

amount appropriated, each bus project

identified in the Conference Report

receives .32343056 of one percent less

than the funding level contained in the

report. No funds remain available for

discretionary allocation by the Federal

Transit Administrator. Table 7 displays

the allocations of the fiscal year 1998

Bus funds by state and area.

Prior year unobligated appropriations

for Bus in the amount of $188,761,911

remain available for obligation in fiscal

year 1998, and are displayed in Table

7A.

X. Unit Values of Data for the Section

5307 Urbanized Area Formula

Program, Section 5311 Nonurbanized

Area Formula Program, and Section

5309 Capital Fixed Guideway

Modernization

For technical assistance purposes, the

dollar unit values of data derived from

the computations of the Urbanized Area

Formula Program, the Nonurbanized

Area Formula Program, and the Capital

Fixed Guideway Modernization

apportionments are included in this

Notice in Table 9. To determine how a

particular apportionment amount was

developed, areas may multiply their

population, population density, and

data from the NTD by these unit values.

XI. Section 5303 Metropolitan Planning

Program and 5313(b) State Planning

and Research Program

A. Metropolitan Planning Program

The fiscal year 1998 Metropolitan

Planning apportionment to states for

MPOs to be used in urbanized areas

totals $39,625,587. This amount

includes $39,500,000 in fiscal year 1998

appropriated funds, and $125,587 in

prior year deobligated funds which have

become available for reallocation for

this program. A basic allocation of 80

percent of this amount ($31,700,470) is

distributed to the states based on a

statutory formula for subsequent state

distribution to each urbanized area, or

parts thereof, within each state. A

supplemental allocation of the

remaining 20 percent ($7,925,117) is

also provided to the States based on an

FTA administrative formula to address

planning needs in the larger, more

complex urbanized areas. Table 8

contains the final state apportionments

for the combined basic and

supplemental allocations. Each state, in

cooperation with the MPOs, must

develop an allocation formula for the

combined apportionment which

distributes these funds to MPOs

representing urbanized areas, or parts

thereof, within the state. This formula,

which must be approved by the FTA,

must ensure to the maximum extent

practicable, that no MPO is allocated

less than the amount it received by

administrative formula under the

Metropolitan Planning Program in fiscal

year 1991 (minimum MPO allocation).

Each state formula must include a

provision for the minimum MPO

allocation. Where the state and MPOs
Federal Register / Vol. 62, No. 234 / Friday, December 5, 1997 / Notices 64463

desire to use a new formula not

previously approved by FTA, the state

or MPO must submit the new formula

to the appropriate FTA Regional Office

for prior approval.

The Metropolitan Planning Program is

totally general funded in fiscal year

1998; therefore, the entire appropriated

amount of $39,500,000 is currently

available plus $125,587 in

reapportioned funds.

B. State Planning and Research Program

The fiscal year 1998 apportionment

for the State Planning and Research

Program totals $8,472,086. This amount

includes $8,250,000 in fiscal year 1998

appropriated funds, and $222,086 in

prior year deobligated funds which have

become available for reallocation to this

program. Final state apportionments,

based on a statutory formula for this

program, are also contained on Table 8.

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 planning funds

allocated by the State to its urbanized

areas as the state deems appropriate.

The State Planning and Research

Program is totally general funded in

fiscal year 1998; therefore, the entire

appropriated amount of $8,250,000 is

currently available plus $222,086 in

reapportioned funds.

C. Data Used for Metropolitan Planning

and State Planning and Research

Apportionments

Population data from the 1990 Census

is used in calculating these

apportionments. The Metropolitan

Planning funding provided to urbanized

areas in each state by administrative

formula in fiscal year 1991 was used as

a ‘‘hold harmless’’ base in calculating

funding to each State.

D. FHWA Metropolitan Planning

Program and State Planning and

Research Program

Last year, estimated apportionments

for the corresponding FHWA planning

programs were provided along with the

FTA apportionments. This year, no

information will be available for the

FHWA apportionments since their

programs have not been reauthorized.

E. Local Match Waiver for Job Access

Planning Activities

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 are permitting the

waiver of the local match requirement

for job access planning activities

undertaken with Metropolitan Planning

Program and State Planning and

Research Program funds. FTA and

FHWA will support requests for waivers

when they are included in metropolitan

Unified Planning Programs and State

Planning and Research Programs and

meet all other appropriate requirements.

F. Planning Emphasis Areas

This notice includes newly developed

transportation Planning Emphasis Areas

(PEAs). The PEAs were prepared to

advise state and local officials and

transit operators of the national issues

that warrant consideration in carrying

out the metropolitan and statewide

transportation planning process. The

four major PEA themes were developed

to promote general consistency between

the planning initiatives being advanced

in the metropolitan and statewide

planning processes and national policy

goals likely to be included in the

reauthorized transportation legislation,

as well as consistency with the USDOT

Strategic Plan currently being finalized.

Consideration of the PEAs in each state

and metropolitan area, as appropriate in

the Unified Planning Work Programs

and State Planning Work Programs, is

expected to reflect their unique

challenges and goals. The Office of

Planning anticipates working with a

broad cross-section of stakeholders in

preparing clarifying language and

possible ways to relate the PEAs to the

statewide and metropolitan planning

processes.

Goals developed as part of USDOT’s

strategic planning process are designed

to ensure the highest quality of surface

transportation which promotes the

Nation’s economic and community

vitality and environmental quality.

Towards these goals, transportation

Planning Emphasis Areas are prepared

to advise state and local officials of the

national issues that warrant

consideration in carrying out the

metropolitan and statewide

transportation planning process (the

planning process). Consideration of the

emphasis areas in each state and

metropolitan area is expected to reflect

their unique challenges and goals.

MPOs, states and transit operators may

want to explore opportunities for local

governments, the private sector,

academic and research centers,

environmental and human service

agencies and other stakeholders to

participate in the transportation

planning process.

1. System Management and Operation

Planning for effective and efficient

transportation system management and

operation with ongoing performance

monitoring preserves capacity,

maximizes personal mobility and freight

movement, ensures user safety and

system security, and improves and

maintains structural integrity.

Innovative technologies, such as those

included in Intelligent Transportation

Systems (ITS), can improve

communications, operational

efficiencies, safety and system

performance. Effectively managed

transportation systems support the

national Welfare-to-Work initiative by

providing access to employment

opportunities and support economic

development by reducing the time for

moving people and freight. The

development of non-traditional

transportation services to meet emerging

new markets would help improve

accessibility and mobility.

2. Financial Planning

A cooperative planning process which

considers innovative funding sources,

such as State Infrastructure Banks

(SIBs), assists with developing sound

transportation financial planning

processes with accurate estimates of

reasonably available funds, costs for

system expansion, and future operation

and maintenance costs. Coordinated

activities to develop transportation

plans will be improved with rigorous

analysis of the financial dimensions of

proposed major infrastructure

investments.

3. Environmental and Community

Impact

Local planning processes are

encouraged to give early consideration

of the natural environment and

communities affected by transportation

planning and project activities. Air

quality issues are a key concern in some

metropolitan areas. Coordinated

planning for transportation and land use

management will help to create

sustainable communities with

protection of natural resources,

concentration of new development in

suitable areas, and control of sprawl

with infill development of underutilized areas. State and local officials

may choose to evaluate their

decisionmaking process to determine

how well it responds to community

needs, as called for in the Livable

Communities initiative. Consideration

may be given to joint development of
64464 Federal Register / Vol. 62, No. 234 / Friday, December 5, 1997 / Notices

transportation infrastructure projects

along with facilities providing goods

and services to communities and

neighborhoods.

4. Transportation and Equity

Transportation planning processes

should address the equitable

distribution of mobility benefits and

possible adverse environmental and

health impacts created by federally

funded transportation investments and

activities. The benefits of Federal

transportation investments should be

equitably distributed as required by

Title VI. Planning processes should

evaluate proposed transportation

investments to ensure they do not

disproportionately create adverse

human health and environmental

impacts on low-income and minority

populations.

G. Federal Planning Certification

Reviews

Federal certification of the planning

process is conducted in a

Transportation Management Area

(TMA), which is an urbanized area over

200,000 in population or other

urbanized area designated by the

Secretary of Transportation (the

Secretary). The Secretary is responsible

for certifying, at least once every three

years, that the metropolitan

transportation planning process in the

TMA is being carried out under

applicable provisions of Federal law.

More detail on these reviews can be

found in the September 8, 1997, Federal

Register notice, which announced the

metropolitan planning processes that

will jointly be reviewed by FTA and

FHWA and requested comments on the

metropolitan planning processes under

review.

Dates for site visits for the TMAs to

be reviewed in fiscal year 1998 are being

established and are available on the

FTA Home Page at http://www.fta.gov/

office/planning.

For further information regarding

Federal certifications of the planning

process contact: For FTA: Mr. Charles

Goodman, FTA Metropolitan Planning

Division (TPL–12), 202–366–1944; or

Scott Biehl, FTA Office of Chief Counsel

(TCC–30), 202–366–4063. For FHWA:

Mr. Sheldon Edner, FHWA

Metropolitan Planning Division (HEP–

20), 202–366–4066; or Reid Alsop,

FHWA Office of the Chief Counsel

(HCC–31), 202–366–1371.

H. Consolidated Planning Grant

In fiscal year 1997, FTA and FHWA

began offering states the option of

participating in a pilot Consolidated

Planning Grant (CPG) program. Thirteen

states have agreed to participate in the

pilot. In fiscal year 1997, more than

$33.9 million was obligated for 11 CPG

pilot states. The total obligations are

approximately two-thirds FHWA

planning funds and one-third FTA

planning funds. One of our original

goals in developing the CPG pilot was

to give states and MPOs more control

over their planning resources with a

combination of broader financial

controls and greater flexibility in the

management of their planning activities.

As part of the pilot, grants can be made

with a ‘‘blended’’ ratio, if appropriate, to

address different FTA and FHWA

Federal matches. The blended ratio

would allow billing at a single ratio

determined on the relative shares of

FTA and FHWA planning funds.

To further reduce paperwork for our

customers, the CPG pilot offers the

states two options for carrying the CPGs

over from year to year. The first option

is to treat the CPG much as FHWA

grants are treated currently; that is, as

basically annual grants with a yearly

close-out, deobligation and reobligation

cycle. The second option is to treat the

CPG more like an FTA grant, but with

even greater flexibility. Under this

second option, the CPG grant would

stay open for a multi-year period to be

determined by the state (and MPO,

jointly, for Metropolitan Planning

funds) with the approval of the Federal

Government. New apportionments will

be added by a grant amendment as the

funds become available. So far, over

one-half of the current CPG grantees

plan to follow this second option.

The FTA is exploring with FHWA the

potential for extending FTA’s pre-award

authority to the entire CPG program.

This would allow states to continue

their planning program activities from

year to year with the assurance (granted

to all FTA grantees in the annual

Federal Register notice) that eligible

costs can later be converted to a

regularly funded Federal project

without the need for prior approval or

authorization from the granting agency.

FTA will also be providing an

enhancement to its Electronic Grant

Making and Management (EGMM)

program that is now used to request

planning grants, obligate funds, monitor

fund balances and grant status, and file

financial and status reports for the CPG.

These enhancements will benefit all

grants including the CPG. For further

information on participating in the CPG

Pilot, contact Ms. Candace Noonan,

Intermodal and Statewide Planning

Division (TPL–11) at (202) 366–1648.

XII. Period of Availability of Funds

The funds apportioned under the

Urbanized Area Formula Program, the

Fixed Guideway Modernization

Program, the Metropolitan Planning

Program and the State Planning and

Research Program in this notice will

remain available to be obligated by FTA

to recipients for three fiscal years

following fiscal year 1998. Any of these

apportioned funds unobligated at the

close of business on September 30,

2001, will revert to FTA for

reapportionment under these respective

programs.

Funds apportioned to nonurbanized

areas under the Nonurbanized Area

Formula Program, including RTAP

funds, will remain available for two

fiscal years following fiscal year 1998.

Any such funds remaining unobligated

at the close of business on September

30, 2000, will revert to FTA for

reapportionment among the states under

the Nonurbanized Area Formula

Program. Funds allocated to States

under the Elderly and Persons with

Disabilities Program in this Notice must

be obligated by September 30, 1998.

Any such funds remaining unobligated

as of this date will revert to FTA for

reapportionment among the states under

the Elderly and Persons with

Disabilities Program. The 1998 DOT

Appropriations Act includes a provision

requiring that fiscal year 1998 New

Starts and Bus funds not obligated for

their original purpose as of September

30, 2000, shall be made available for

other discretionary projects within the

respective categories of the Capital

Program. Similar provisions in the 1997

and 1996 DOT Appropriations Acts

required that fiscal year 1997 Bus and

New Starts funds that are not obligated

by September 30, 1999, shall also be

made available for other discretionary

Bus or New Start projects, respectively,

and fiscal year 1996 Bus and New Starts

funds unobligated by September 30,

1998, shall be made available for other

discretionary Bus or New Start projects,

respectively.

XIII. Notice of Pre-Award Authority to

Incur Project Cost

A. Background

Since fiscal year 1994, FTA has

provided grantees pre-award authority

to cover planning and capital costs prior

to grant award. Previous to this grantees

had authority to incur costs for

operating assistance prior to grant

award. This automatic pre-award

spending authority permitted a grantee

to incur costs on an eligible transit

capital or planning project without

prejudice to possible future Federal
Federal Register / Vol. 62, No. 234 / Friday, December 5, 1997 / Notices 64465

participation in the cost of the project or

projects. In order to ensure eligibility for

future FTA funds, grantees are

encouraged to consult with the

appropriate regional office prior to

exercising pre-award authority.

B. Current Coverage

In fiscal year 1998, authority to incur

costs for Fixed Guideway

Modernization Formula, Metropolitan

Planning, Urbanized Area Formula,

Elderly and Persons with Disabilities,

Nonurbanized Area Formula, and State

Planning and Research in advance of

possible future Federal participation is

provided to fiscal year 1998 funds

apportioned and allocated in this notice.

This pre-award authority also applies to

Capital Bus funds identified in this

notice. Pre-award authority for

carryover amounts for these programs

was provided in the FTA Fiscal Year

1997 Apportionments and Allocations

Federal Register notice. This pre-award

authority is also extended to projects

intended to be funded with STP or

CMAQ funds transferred to FTA in

fiscal year 1998. Pre-award authority

applies to FTA funds and flexible funds

provided the conditions in C and D

below are met. The pre-award authority

does not apply to Capital New Start

funds. Preaward authority also applies

to preventive maintenance costs

incurred within a local fiscal year

ending during calendar year 1997, or

thereafter, under the formula programs

cited above.

C. Conditions

Similar to the FTA Letter of No

Prejudice (LONP) authority, the

conditions under which this authority

may be utilized are specified below:

(1) This pre-award authority is not a

legal or moral commitment that the

project(s) will be approved for FTA

assistance or that the FTA will obligate

Federal funds. Furthermore, it is not a

legal or moral commitment that all

items undertaken by the applicant will

be eligible for inclusion in the project(s).

(2) All FTA statutory, procedural, and

contractual requirements must be met.

(3) No action will be taken by the

grantee which prejudices the legal and

administrative findings which the

Federal Transit Administrator must

make in order to approve a project.

(4) Local funds expended by the

grantee pursuant to and after the date of

this authority will be eligible for credit

toward local match or reimbursement if

the FTA later makes a grant for the

project(s) or project amendment(s).

(5) The Federal amount of any future

FTA assistance 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.

(6) For funds to which this authority

applies, the authority expires with the

lapsing of fiscal year 1998 funds.

D. Environmental, Planning and Other

Federal Requirements

FTA emphasizes that all of the

Federal grant requirements must be met

for the project to remain eligible for

Federal funding. Some of these

requirements must be met before preaward costs are incurred, notably the

requirements of the National

Environmental Policy Act (NEPA), and

the planning requirements. Compliance

with NEPA and other environmental

laws or executive orders (e.g., protection

of parklands, wetlands, historic

properties) must be completed before

state or local funds are advanced for a

project expected to be subsequently

funded with FTA funds. Depending on

which class the project is included

under in FTA’s environmental

regulations (23 CFR part 771) the

grantee may not advance the project

beyond planning and preliminary

engineering before FTA has approved

either a categorical exclusion (refer to 23

CFR part 771.117(d)), a finding of no

significant impact, or a final

environmental impact statement. The

conformity requirements of the Clean

Air Act (40 CFR part 51) also must be

fully met before the project may be

advanced with non-Federal funds.

Similarly, the requirement that a

project be included in a locally adopted

metropolitan transportation

improvement program and federally

approved statewide transportation

improvement program must be followed

before the project may be advanced with

non federal funds. In addition, Federal

procurement procedures, as well as the

whole range of Federal requirements,

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 thereby. 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.

Before an applicant may incur costs

either for activities expected to be

funded by New Start funds, or for

activities requiring funding beyond

fiscal year 1998, it must first obtain a

written LONP from the FTA. To obtain

an LONP, a grantee must submit a

written request accompanied by

adequate information and justification

to the appropriate FTA regional office.

XIV. Rail Fixed Guideway Systems:

State Safety Oversight (49 CFR Part

659)

There are 19 states and the District of

Columbia in which rail fixed guideway

transit systems operate. These states and

the District of Columbia must comply

with 49 U.S.C. Section 5330, by

designating an agency to oversee the

safety and security for those rail fixed

guideway systems, which are not

regulated by the Federal Railroad

Administration. On December 27, 1995,

FTA issued a final regulation

implementing the State Safety Oversight

provisions of Section 5330. Compliance

with safety provisions of the rule was

required by January 1, 1997.

Compliance with the security provisions

of the final rule is required by January

1, 1998. Codified at 49 CFR part 659, the

State Safety Oversight regulation

delineates responsibilities of the state,

the oversight agency, the transit agency,

and the FTA.

A State Oversight Agency must

establish a ‘‘System Safety and Security

Program Standard,’’ review and approve

a transit agency’s System Safety and

Security Program Plan, conduct

investigations of accidents and

unacceptable hazards, conduct on-sight

safety reviews, and report annually to

FTA. Rail transit systems must develop

and implement a System Safety and

Security Program Plan, classify and

report accidents and unacceptable

hazards, develop corrective action

plans, and conduct on-going safety

audits. On-site safety reviews by the

State Oversight Agency and audits by

the transit agency must measure the

effectiveness of the Plan and identify

how and where to improve the system

safety and security process.

The Administrator of the FTA may

withhold up to five percent of the

amount required to be apportioned for

use in any state or affected urbanized

area in such state under FTA’s formula

program for urbanized areas for any

fiscal year beginning after September 30,

1997, if the state in the previous fiscal

year has not met the requirements of

this part and the Administrator

determines that the state is not making

adequate efforts to comply with this

part. States which are not in compliance

have been notified of their status.

Affected grantees will be notified of any

fiscal year 1998 funds to be withheld for

non-compliance.
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XV. Electronic Grant Making and

Management Initiatives

A. Background

In 1994 FTA began the Electronic

Grant Making and Management (EGMM)

initiative. The EGMM program is a

paperless electronic grant application,

review, approval, acceptance and

management process. This program

started as a pilot effort and involved 10

grantees nationwide to serve as pilots.

By fiscal year 1997 120 grantees were

participating in the FTA EGMM

program for the grant application

process. Over 558 grantees were on line

for various management activities such

as filing of financial status reports and

narrative status reports. In addition,

grantees may use EGMM for the

electronic signature of annual

certifications and assurances.

B. Graphical User Interface

The latest enhancement to the EGMM

program is the Graphical User Interface

program, otherwise known as GUI. GUI

is a windows based program and

therefore is more user friendly than the

original EGMM system. With GUI, the

user can rely on a limited number of

windows, each with a user friendly

menu bar. As this windows based

environment is not directly interfacing

with the FTA mainframe computer,

problems of slowness of the connection

are eliminated. In addition, GUI will

provide greater compatibility with other

systems, allowing more data migration

by providing opportunities to simplify

the information entry process. GUI is

now being tested with a limited number

of grantees. Following this testing, it

will be made available to all EGMM

grantees. Please contact the FTA

Regional office to learn about this new

enhancement to EGMM and the

hardware and software requirements.

C. Fiscal Year 1998 Emphasis

In fiscal year 1998 FTA continues to

strongly encourage grantees to become

EGMM grantees for grant application

and approval as well as for grant

management activities if they have not

already done so. We also encourage all

grantees to file the fiscal year 1998

Certifications and Assurances

electronically using the EGMM system.

A major goal is the completion of the

pilot phase of GUI and the conversion

of our EGMM grantees to the new

enhanced EGMM system.

XVI. 1998 Annual List of Certifications

and Assurances

The Fiscal Year 1998 Annual List of

Certifications and Assurances for

Federal Transit Administration Grants

and Cooperative Agreements notice was

published in the Federal Register on

October 14, 1997. It appears as Part IV

on pages 53512 through 53522. This

October 14 document contains two

major changes to the previous year’s

Federal Register publication. (1)

Starting with fiscal year 1998, all

applicants for FTA Capital Program or

Formula Program assistance, and

current grantees with an active project

financed with FTA Capital Program or

Formula Program assistance will be

required to provide the Appendix A

Certifications and Assurances within 90

days from the date of the October 14

publication or with its first grant

application in fiscal year 1998,

whichever comes first. (2) The attorney

signature from previous years on the

single signature page will no longer be

acceptable. FTA requires a current

attorney’s affirmation of the applicant’s

legal authority to certify compliance

with fiscal year 1998 FTA funding

assistance. This does not affect the

electronic opportunity for a grant

applicant’s authorized representative to

electronically enter a PIN in the On-Line

Program, offered to applicants through

the Grant Management Information

System (GMIS), indicating that a current

valid 1998 attorney’s signature is on file.

The fiscal year 1998 Annual List of

Certifications and Assurances 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 Berkley, Office of

Program Management, Federal Transit

Administration, (202) 366–6470.

XVII. Quarterly Approval of Grants

The FTA has established a quarterly

approval and release cycle for

processing grants. All Urbanized Area

Formula, Nonurbanized Area Formula,

Elderly and Persons with Disabilities,

Capital, Metropolitan Planning, and

State Planning and Research grants are

processed on a quarterly basis. This

includes grants using STP or CMAQ

funds.

If completed applications are

submitted to the appropriate FTA

Regional Office no later than the first

business day of the quarter, FTA will

award grants by the last business day of

the quarter.

In order to expedite the grant

approval process within the quarterly

approval structure, grants which are

complete and have received the

required Transit Employee Protective

Certification from the Department of

Labor (DOL) will be approved before the

end of the quarter. There are only two

factors which would delay FTA

approval of the project beyond the end

of a quarter. First is a failure by DOL to

issue a Transit Employee Protective

Certification where such certification is

a prerequisite to a grant approval, and

second is the failure of FHWA to

actually transfer flexible funds.

For an application to be considered

complete, all required activities such as

inclusion of the project in a locally

approved Transportation Improvement

Program (TIP), a Federally approved

State Transportation Improvement

Program (STIP), intergovernmental

reviews, environmental reviews, all

applicable civil rights, anti-drug, clean

air requirements and submission of all

requisite certifications and

documentation must be completed. The

application must be in approvable form

with all required documentation and

submissions on hand, except for the

labor protection certification which is

issued by DOL. Incomplete applications

will not be processed, but if the missing

components are supplied, applications

will be considered in the next quarter.

It is the policy of FTA to expedite

grant application reviews and speed

program delivery by reducing the

number of grant applications. To this

end, FTA strongly encourages grant

applicants to submit only one

application per fiscal year for each

formula program. The single application

should contain the fiscal year’s capital

(including flexible funds), planning and

operating elements.

XVIII. Grant Application Procedures

All applications for FTA funds should

be submitted to the appropriate FTA

Regional Office. Formula grant

applications should be prepared in

conformance with the following FTA

Circulars: Urbanized Area Formula

Program: Grant Application

Instructions—C9040.1B, October 10,

1996; Nonurbanized Area Formula

Program Guidance and Grant

Application Instructions—C9040.1D,

May 8, 1997; Section 5310 Elderly and

Persons with Disabilities Program

Guidance and Application

Instructions—C9070.1D, October 22,

1997; Section 5309 Capital Program:

Grant Application Instructions—

C9300.1, September 29, 1995; and

Program Guidance and Application

Instructions for Metropolitan Planning

Program Grants—C8100.1B, October 25,

1996. Applications for STP ‘‘flexible’’

fund grants should be prepared in the

same manner as the apportioned funds

under the Urbanized Area Formula,

Nonurbanized Area Formula, or Elderly

and Persons with Disabilities Programs.

Guidance on preparation of applications

for State Planning and Research funds
Federal Register / Vol. 62, No. 234 / Friday, December 5, 1997 / Notices 64467

may be obtained from each FTA

Regional Office. Copies of circulars are

available from FTA Regional Offices as

well as the FTA Home Page on the

Internet.

Issued on: December 2, 1997.

Gordon J. Linton,

Administrator.

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[FR Doc. 97–31910 Filed 12–2–97; 1:48 pm]

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