Federal Register / Vol. 89, No. 188 / Friday, September 27, 2024 / Notices 79345 

200.313 (Equipment) and 200.314 

(Supplies) of 2 CFR part 200 each 

increase the thresholds, from $5,000 to 

$10,000, for the value of equipment and 

aggregate supplies a recipient may 

retain, sell, or dispose of at closeout. 

Consistent with 2 CFR 200.314, FTA 

also clarified throughout the circular 

that disposition requirements apply 

only to unused supplies. 

• De Minimis Rate: 2 CFR part 200 

increases the de minimis indirect cost 

rate from 10% to 15% of Modified Total 

Direct Costs (MTDC). FTA recipients 

and subrecipients may elect a lower de 

minimis rate at their discretion and 

modify the indirect cost rate of MTDC 

to permit inclusion of the first $50,000 

of any one subaward in the base. 

• Single Audit: 2 CFR part 200 

increases the direct Federal expenditure 

threshold requiring a recipient to 

conduct a single audit from $750,000 to 

$1 million. OMB also revised the 

definitions of ‘‘known questioned costs’’ 

and ‘‘likely questioned costs’’ while 

providing additional direction to 

recipients to identify such costs in an 

audit report. 

Uniform Act Changes 

Acting as Lead Agency, FHWA 

published a final rule on May 3, 2024, 

to amend and update 49 CFR part 24, 

which implements the Uniform 

Relocation Assistance and Real Property 

Acquisition Policies Act (Uniform Act) 

for land acquisition and displacement 

activities by all Federal agencies and 

their financial assistance recipients (89 

FR 36908). These regulations clarify 

existing requirements for implementing 

the Uniform Act, meet modern needs, 

and improve the agencies’ service to 

individuals and businesses affected by 

Federal or federally assisted projects. 

All references to these regulations were 

updated in C 5010.1F. 

Disadvantaged Business Enterprise 

(DBE) Final Rule Changes 

On April 9, 2024, the U.S. Department 

of Transportation published its final 

rule regarding Participation by 

Disadvantaged Business Enterprises 

(DBE) in Department of Transportation 

Financial Assistance Programs located 

at 49 CFR part 26 (89 FR 24898). 

Changes to the rule include a 

streamlined DBE certification process, 

adjustments to grant recipient reporting 

requirements, and other technical 

corrections. For FTA specifically, the 

rule creates two tiers of recipients: Tier 

I recipients who award more than 

$670,000 in FTA funds annually in 3rd 

party contracts and are subject to all 

DBE program provisions and Tier II 

recipient who award $670,000 or less in 

FTA funds annually and are subject to 

a subset of provisions. 

Veronica Vanterpool, 

Deputy Administrator. 

[FR Doc. 2024–22160 Filed 9–26–24; 8:45 am] 

BILLING CODE 4910–57–P 

DEPARTMENT OF TRANSPORTATION 

Federal Transit Administration 

[Docket No. FTA–2024–0004] 

Rural Areas Formula Grant Programs 

Guidance, Final Circular 

AGENCY: Federal Transit Administration 

(FTA), Department of Transportation 

(DOT). 

ACTION: Notice of availability of final 

circular and response to comments. 

SUMMARY: The Federal Transit 

Administration (FTA) has finalized an 

updated circular, to assist recipients in 

their implementation of the Rural Areas 

Formula Program and the rural 

component of the Grants for Buses and 

Bus Facilities Program. The update and 

consolidation of the circulars 

incorporates provisions from the Fixing 

America’s Surface Transportation 

(FAST) Act; the Infrastructure 

Investment and Jobs Act (IIJA), also 

known as the Bipartisan Infrastructure 

Law (BIL); the Uniform Administrative 

Requirements for Federal awards to 

non-Federal entities; and current FTA 

policies and procedures. This notice 

responds to the comments FTA received 

on the proposed circular, which was 

published in the Federal Register on 

April 4, 2024. 

DATES: The applicable date of this 

circular is November 1, 2024. 

ADDRESSES: One may view the 

comments at docket number FTA–2024– 

0004. For access to the docket, please 

visit https://www.regulations.gov or the 

Docket Operations office located in the 

West Building of the United States 

Department of Transportation, Room 

W12–140, 1200 New Jersey Avenue SE, 

Washington, DC 20590, between 9 a.m. 

and 5 p.m. Monday through Friday. 

FOR FURTHER INFORMATION CONTACT: For 

Rural Formula program questions, Matt 

Lange, Office of Transit Programs, 

Federal Transit Administration, US 

DOT Volpe Center, 220 Binney Street, 

Room-940, Cambridge, MA 02142, 

phone: (617) 494–6308, or email, 

matthew.lange@dot.gov. For Bus and 

Bus Facilities program questions, 

Kirsten Wiard-Bauer, Office of Transit 

Programs, Federal Transit 

Administration, 1200 New Jersey Ave. 

SE, Washington, DC 20590, phone: (202) 

366–7052, or email, KirstenWiardBauer@dot.gov. For Tribal Transit 

Program questions, Elan Flippin, Office 

of Transit Programs, phone: (202) 366– 

3800, or email, elan.flippin@dot.gov. 

For legal questions, Bonnie Graves, 

Office of Chief Counsel, phone: (202) 

366–0944, or email, Bonnie.Graves@

dot.gov. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Overview 

II. Responses to Public Comments 

A. Disposition of Comments for Which No 

Changes Were Made 

B. Changes Made as a Result of Public 

Comments 

C. 2 CFR Part 200 Updates 

I. Overview 

The Federal Transit Administration’s 

(FTA) final circular, ‘‘Rural Areas 

Formula Grant Programs Guidance,’’ C 

9040.1H, is a consolidation of guidance 

for Rural Areas Formula Grants Program 

under 49 U.S.C. 5311 (Circular 9040.1) 

and the rural area component of the 

Grants for Buses and Bus Facilities 

Program under 49 U.S.C. 5339(a) 

(Circular 5100.1). Additionally, this 

updated circular incorporates 

provisions of the FAST Act (Pub. L. 

114–94), the Infrastructure Investment 

and Jobs Act (IIJA) (Pub. L. 117–58), and 

other changes in law, and includes 

program-specific guidance for these 

formula programs. Additional 

requirements for all grant programs are 

identified in FTA’s Award Management 

Requirements (Circular 5010.1). 

The update to Circular 9040.1 

consolidates and summarizes 

programmatic information, streamlines 

pre-existing guidance from the two 

program circulars, and reduces 

duplication of information provided 

between the Rural Areas Formula 

Program circular and FTA’s other topicspecific circulars, including by moving 

certain text applicable to most or all 

FTA grant programs to Circular 5010.1. 

Furthermore, the circular incorporates 

statutory changes and clarifies policies 

as applied by FTA. Statutory changes 

for Section 5311 include additional 

sources of local share; in-kind match for 

intercity bus service; and fund 

allocations for tribes. Statutory changes 

for Section 5339(a) include the 

application of Section 5311 

requirements to Section 5339 grants in 

rural areas; additional source for local 

share; additional eligible entities; and 

use of procurement tools authorized 

under Section 3019 of the FAST Act. 

Policy clarifications address topics in 

the existing program circulars, 

including consolidation of grants to 


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insular areas; eligible projects and 

activities for each program; operating 

assistance limitations and exceptions; 

capital cost of contracting; the role of 

transportation network companies in 

providing public transportation 

services; and period of availability to 

obligate funds flexed to FTA formula 

programs from the Federal Highway 

Administration (FHWA). 

In addition to statutory and policy 

updates, the Office of Management and 

Budget (OMB) issued 2 CFR part 200, 

Uniform Administrative Requirements, 

Cost Principles, and Audit 

Requirements for Federal Awards, also 

known as the Uniform Guidance, in 

December, 2013, which superseded the 

Common Grant Rule, formerly codified 

at 49 CFR parts 18 and 19. Due to the 

timing of the last circular update and 

the effective date of the Uniform 

Guidance, FTA Circular 9040.1G 

continued to reference 49 CFR parts 18 

and 19. FTA has updated these 

references, including definitions, in 

Circular 9040.1H. Further, on April 22, 

2024, OMB issued a final rule updating 

2 CFR part 200 (89 FR 30046). Two of 

those updates resulted in changes to the 

draft C. 9040.1H, and those changes are 

discussed in this notice. 

This notice provides a summary of 

comments received and FTA’s response 

to those comments. 

II. Response to Public Comments 

FTA published a notice for comment 

on this circular in the Federal Register 

on April 4, 2024 (89 FR 23618), 

describing the consolidation and 

updates and seeking public comment on 

the proposed circular. FTA received 

eighty-three (83) comments from sixteen 

(16) unique commenters. FTA reviewed 

the comments and addresses below the 

categories of comments for which no 

changes to the proposed circular were 

made, as well as the changes FTA made 

in the final circular in response to 

public comments. 

A. Categories of Comments for Which 

No Changes Were Made 

Comment: Three commenters 

requested an extension of the sixty (60) 

day review period. 

FTA Response: FTA determined, 

based on the agency’s preexisting 

decision-making schedule; two other 

draft circulars published for public 

comment prior to proposed C. 9040.1H 

which included similar information; 

and the updates and consolidations to 

the existing circulars include limited 

statutory changes resulting from FAST 

Act and BIL, regulatory updates to 2 

CFR part 200, and policy clarifications; 

that an extension was not warranted. 

FTA considered all comments received. 

Comment: Several commenters 

requested increasing the period of time 

during which governors can, without 

local consultation, transfer funds 

between the Section 5307 and 5311 

programs from ninety (90) days to one 

(1) year. 

FTA Response: The ninety (90) day 

period for transferring state 

apportionments of formula grants 

without local consultation is set 

statutorily under 49 U.S.C. 5336(f) and 

FTA does not have the authority to 

increase the time period for these 

transfers. 

Comment: One commenter requested 

a change to allow direct recipients of 

FTA Section 5307 funds to serve as 

direct recipients of Section 5311 funds. 

FTA Response: Under 49 U.S.C. 

5311(a)(1) the only eligible recipients of 

formula funds for rural areas are States 

and Indian Tribes. Local government 

authorities are eligible subrecipients. 

Comment: One commenter requested 

the addition of language specifying that 

Section 5311(f) funds may be used to 

build all parts of an urbanized area 

intercity bus terminal serving both rural 

and urban passengers regardless of the 

proportion of such service that would 

benefit rural users. 

FTA Response: Rural transit program 

funds are intended to primarily benefit 

rural transit users; while urban users 

may also benefit from services funded 

by the rural transit programs, they 

should not be the primary beneficiaries. 

The use of rural transit program funds 

should be proportional to the benefits 

realized by rural users. 

Comment: One commenter requested 

an increase to the Federal share of 

operating expenses for Section 5311 

funds. 

FTA Response: FTA does not have the 

authority to change the Federal share as 

it is set by statute—49 U.S.C. 5311(g)(2) 

provides the Federal share shall not 

exceed 50 percent of the net operating 

cost of the project. 

Comment: One commenter requested 

the relaxation of, or provision of waivers 

for, the Buy America requirements in 

situations where the costs were onerous. 

FTA Response: No changes to Buy 

America are possible as this is a 

statutory requirement. FTA encourages 

interested stakeholders to review 49 

U.S.C. 5323(j) for a list of waivers 

permitted by statute, one of which is 

when including domestic material will 

increase the cost of the overall project 

by more than 25 percent. FTA’s Buy 

America rule at 49 CFR part 661 

describes how to request a waiver. 

Additionally, Buy America 

requirements are discussed in depth in 

Circular 5010.1. 

Comment: One commenter requested 

that up to ten percent (10%) of 

transferred flexible funds from FHWA 

may be used for State administration. 

FTA Response: Flexed funds are only 

eligible for State administration to the 

extent that FHWA permits. Recipients 

should contact their FTA Regional 

Office for information on eligible 

activities when accepting transferred 

FHWA funds. 

Comment: One commenter requested 

a ‘‘more streamlined process that all 

States must adhere to’’ related to State 

oversight of intercity bus service. 

FTA Response: The guidance 

provided in this circular is intentionally 

broad to address a variety of 

circumstances, geographies, and types 

of recipients and subrecipients while 

allowing maximum flexibility to the 

States in administering Federal grants 

programs. Due to this dynamic and the 

reality that the provided guidance is 

based on existing statutes, policies, and 

regulations, FTA cannot provide a 

single process for all recipients; nor can 

FTA streamline the process by removing 

or waiving any requirements. 

Comment: Two commenters requested 

formatting changes related to page 

numbering and removal of blank pages. 

FTA Response: FTA appreciates these 

comments; however, the layout of the 

circular is deliberate and intended to 

make printed versions readable. 

Comment: One commenter 

recommended that references to 

circulars and other documents be as 

broad as possible to make them easier to 

update, which FTA interpreted to mean 

that, for example, the Rural Areas 

circular would be referred to as ‘‘C 

9040.1’’ and not as ‘‘C 9040.1H’’ and 

statutory provisions would be referred 

to as ‘‘49 U.S.C. 5311’’ instead of ‘‘49 

U.S.C. 5311(b).’’ 

FTA Response: Where appropriate, 

FTA already endeavors to make 

references in the broad fashion 

suggested here. In addition, FTA is able 

to update guidance documents with 

statutory or regulatory citation changes 

without undergoing further notice and 

comment. 

Comment: One commenter requested 

that links be provided wherever 

possible throughout the document. 

FTA Response: FTA has included 

links where appropriate and when the 

corresponding web address can be 

expected, with relative certainty, to 

remain the same into the future. 

Comment: One commenter requested 

the inclusion of ‘‘contract’’ and 

‘‘contractor’’ in the definitions list. 


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FTA Response: The terms ‘‘third-party 

contract’’ and ‘‘third-party contractor’’ 

are defined in Circular 5010.1 and FTA 

declines to include definitions of these 

terms in this circular. 

Comment: One commenter requested 

that the term ‘‘urban areas’’ in the 

definition of ‘‘intercity bus’’ be more 

thoroughly defined or explained. 

FTA Response: FTA includes the 

statutory definition of urbanized areas 

in the definitions section: ‘‘Urbanized 

Area (UZA). An area encompassing a 

population of not less than 50,000 

people that has been defined and 

designated in the most recent decennial 

census as an ‘urban area’ by the 

Secretary of Commerce (49 U.S.C. 

5302).’’ FTA notes the Census now 

defines some areas with populations of 

less than 50,000 as ‘‘urban,’’ however, 

for purposes of FTA’s programs, areas 

with a population of less than 50,000 

are defined as rural. For consistency we 

have changed ‘‘urban area’’ to 

‘‘urbanized area’’ in the definition of 

intercity bus. 

Comment: One commenter requested 

that the threshold at which recipients 

must revise their Program of Projects 

(POP) change, from a 20% increase in 

total funds reflected on the POP to a 

25% increase in total funds reflected on 

the POP, in order to coincide with the 

commenter’s practices. 

FTA Response: The threshold is set at 

20% as a matter of policy and FTA 

declines to make this change. 

Comment: One commenter requested 

that FTA remove the requirement to 

submit an annual POP Status Report. 

Another commenter requested that FTA 

add language stating that if the most 

recent POP in TrAMS is current, the 

annual POP Status Report may reference 

the date of the current POP in lieu of 

uploading a POP. 

FTA Response: FTA considers the 

POP Status Report necessary to ensure 

the POPs are tracked at least annually. 

Annual reports for the POP provide the 

opportunity for comprehensive updates 

based on the progress of the award, in 

a holistic way than an individual FFR 

or MPR. 

Comment: Several commenters 

expressed concern regarding the 

requirement that a Section 5311(f), 

intercity bus Governor’s Certification 

Letter be sent to the FTA Regional 

Administrator and not the FTA 

Administrator. Commenters asserted 

this was a change in policy reducing the 

level of oversight from FTA’s 

Administrator to a Regional 

Administrator. 

FTA Response: The Governor’s 

Certification Letter has always been sent 

to the Regional Administrators for 

approval. The additional language 

simply makes this review process more 

apparent to stakeholders. 

Comment: One commenter asked FTA 

to remove any references to procedure 

when discussing State oversight in the 

context of the State Management Plan 

(SMP). 

FTA Response: States are required to 

perform oversight activities in order to 

properly manage the Federal programs 

they are responsible for, and FTA is 

required to monitor how States manage 

these programs to ensure this oversight 

is taking place. As a result, discussions 

of State program management and State 

monitoring are necessary to ensure 

compliance with all relevant statutory 

and regulatory requirements. 

Comment: One commenter requested 

new requirements be added to the State 

Management Plan (SMP), including a 

requirement that States address what 

their policies are toward ‘‘high-risk’’ 

subrecipients. 

FTA Response: The guidance is 

written to provide maximum flexibility 

to the States. Monitoring is already 

addressed via the SMP, and a State is 

not prohibited from increased 

monitoring of any subrecipient they 

deem to be high-risk. As the recipient, 

it is up to the State to determine the best 

approach to ensure subrecipient 

compliance. FTA declines to add this 

proposed requirement to the circular. 

Comment: One commenter requested 

additional language further emphasizing 

that intercity city bus services that cross 

state boundaries are eligible for Section 

5311 funding. 

FTA Response: The request for 

eligibility emphasis is not needed given 

the enabling language already present in 

the circular. Section 5311 eligibility 

language included under ‘‘General 

Program Information, Chapter III 1.c., 

states that for Section 5311 projects, 

‘‘The service area may include 

destinations across a State line.’’ This 

applies to intercity bus service as well 

as Section 5311 public transit service. 

Further, the intercity bus language in 

Chapter IX provides, ‘‘FTA encourages 

the State to look at the intercity bus 

transportation needs of the entire State 

and to work with neighboring States to 

adopt a program that will support a 

network of intrastate services and 

provide connections with a national 

network of interstate service.’’ It is 

reasonable to expect service may need 

to cross State lines in order to provide 

access to neighboring State service as 

well as the national network of intercity 

bus service. 

Comment: Several commenters asked 

FTA to provide additional examples, or 

lists of examples, to further illustrate 

requirements and processes. For 

example, one commenter requested a 

complete list of other public 

transportation-related Federal programs 

that may provide support for Section 

5311 and Section 5339 projects. One 

commenter requested that FTA clarify 

whether rural transit activities for RTAP 

assistance include Section 5310-funded 

activities in rural areas. 

FTA Response: FTA declines to 

provide additional non-exhaustive lists 

of examples as the elements could vary 

from case to case and programs change 

over time such that a list could become 

out of date. For those seeking 

information on other Federal programs 

that provide funding for transportation, 

FTA invites interested stakeholders to 

review FTA’s web page on the 

Coordinating Council on Access and 

Mobility and view the ‘‘CCAM Program 

Inventory,’’ located at https://

www.transit.dot.gov/coordinatingcouncil-access-and-mobility. Finally, 

RTAP funds may be used to support 

Section 5310 projects in rural areas. 

Comment: One commenter requested 

the addition of language to the 

definition of ‘‘Joint Development 

Activities,’’ emphasizing the role of 

intermodal transportation centers as 

hubs for intercity bus facilities. 

FTA Response: FTA has included 

only a streamlined definition of joint 

development and referred readers to 

FTA’s Joint Development Circular 

7050.1C. FTA notes that intercity bus is 

specifically included as an eligible joint 

development project on page IV–9 of 

circular. Thus, additional language 

about its eligibility is not needed. 

Comment: One commenter noted that 

there are instances in the circular where 

projects are listed as eligible public 

transit projects when those projects are 

also eligible intercity bus projects. The 

commenter requested that FTA add 

‘‘intercity bus’’ where such projects are 

also eligible. 

FTA Response: FTA generally 

declines to accept this suggestion, as in 

some cases, intercity bus projects are 

not eligible for Section 5311 funds 

except for the Section 5311(f) set-aside. 

Under the statute, eligible activities are 

‘‘public transportation capital projects; 

and operating costs of equipment and 

facilities for use in public 

transportation;’’ 49 U.S.C. 5311(b)(1). 

Given intercity bus is not considered 

public transportation under 49 U.S.C. 

5302, intercity bus projects are not 

eligible except where they are 

considered ‘‘capital projects’’ under 49 

U.S.C. 5302, including joint 

development projects that include 

intercity bus, and intermodal facilities. 

This discussion is included in Chapter 


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IX. As discussed below, FTA has added 

‘‘intercity bus’’ to flex fund discussions, 

as intercity bus projects are eligible for 

some funds transferred to FTA from 

FHWA. FTA encourages intercity bus 

operators to work with the States and 

FTA Regional Offices if there are 

questions about eligible activities. 

As stated in the Federal Register 

notice accompanying the proposed 

circular, FTA proposed moving crosscutting requirements and guidance to 

Circular 5010.1, as an effort to 

streamline the program circulars. Three 

commenters asked FTA to retain some 

of that information in the updated C 

9040.1. 

Comment: Two commenters requested 

additional guidance on minimum useful 

life of vehicles and other capital assets, 

to include either examples or links to 

lists. 

FTA Response: As this information is 

cross-cutting, it is included in the C 

5010.1 Award Management 

Requirements Circular, to which the C 

9040.1H refers users. Therefore, the 

inclusion of that same information here 

would be redundant. 

Comment: One commenter requested 

additional information about the use of 

Transportation Development Credits 

(TDCs) for local match. 

FTA Response: As this information is 

cross-cutting, it is included in the C 

5010.1 Award Management 

Requirements Circular, to which the C 

9040.1H refers users. Therefore, the 

inclusion of that same information here 

would be redundant. 

Comment: Several commenters 

requested changes that are outside the 

purview of the circular update process. 

For example, two commenters requested 

changes to the ALI system in TrAMS. 

One commenter requested a 

consolidation of certain ALI codes 

within the existing ALI tree. Another 

requested that language be added stating 

that mobility management activities are 

eligible as administrative expenses in 

the ALI codes. 

FTA Response: FTA is updating the 

ALI tree, but this is not related to the 

process of updating the circulars. 

However, the comments related to ALI 

trees and ALI codes have been shared 

with staff involved with that update. 

Mobility management is an eligible 

capital expense, not an administrative 

expense. 

Comments: Several comments were of 

a general nature, such as those 

expressing support of rural transit 

funding or concern for potential impacts 

of requirements on small rural 

providers. 

FTA Response: FTA appreciates these 

statements and, while no action or 

change was requested, the comments 

have been read, recorded, and 

discussed. 

Comment: One commenter noted that 

questions arose on whether FTA would 

use ’smoothed’ UZA boundaries that 

have been adjusted from the raw 2020 

UZA boundaries for FHWA roadway 

classification purposes to determine 

eligibility of UZA vs. rural FTA formula 

program funds. The commenter 

requested that FTA include guidance on 

this topic in the circular that has been 

provided through other FTA resources. 

FTA Response: Post-delineation UZA 

smoothing adjustments made for FHWA 

roadway classification purposes do not 

have the effect of changing the 

geographic coverage of UZAs or any 

other UZA characteristics for any 

aspects of FTA program administration. 

Because such adjustments are 

administered by another Federal agency 

for purposes that are irrelevant to FTA 

programs, FTA does not feel it is 

necessary to include related guidance in 

the circular. 

Comment: One commenter requested 

that language be added to say that 

intercity bus and related facilities are 

eligible under Section 5339(a). 

FTA Response: FTA disagrees—per 

Section 5339, eligible recipients are 

designated recipients that allocate funds 

to fixed route bus operators or State or 

local governmental entities that operate 

fixed route bus service. Section 5339 

further specifies that eligible 

subrecipients must be public agencies or 

private nonprofit organizations engaged 

in public transportation. Intercity bus 

projects are eligible under Section 

5311(f). 

Comment: One commenter requested 

more specific program/project 

management oversight activities 

required for States that award FTA 

Section 5311(f) funding to private 

intercity bus providers and the 

applicable requirements for private 

intercity bus service providers. 

FTA Response: The requested 

information is provided in various 

places throughout Chapter IX. State 

certification requirements and 

procedures are discussed on page IX–1. 

The Intercity Bus Consultation 

Requirement is discussed on page V–3 

and the consultation requirements are 

discussed in Section 4 of Chapter IX. 

Documentation requirements are 

discussed on page IX–5; the State’s role 

in reviewing and processing 

applications is discussed on page IX–6. 

Transportation Improvement Plan (TIP) 

and State Transportation Improvement 

Plan (STIP) inclusion requirements are 

discussed on page IX, State POP. 

Budgeting, labor protection, and 

enforcement of compliance are 

discussed in Section 13. 

Comment: One commenter requested 

that FTA ‘‘explicitly identify the 

cognizant agency for providers who 

receive Section 5307 and 5311 

funding.’’ 

FTA Response: The cognizant agency 

as it would apply to an indirect cost rate 

is determined by the largest amount of 

funding a recipient receives from a 

Federal agency. FTA encourages 

recipients with questions about 

cognizant agencies for indirect costs to 

contact their FTA Regional Office. 

Comment: One commenter questioned 

the need to discuss Title VI civil rights 

requirements in both the State 

Management Plan (SMP) and the Title 

VI Plan. 

FTA Response: This is a necessary 

element of the required state 

management review. Information is 

frequently required in multiple reports 

as the reports serve different functions 

and have different audiences. The 

information provided in the SMP may 

be identical to that in the Title VI Plan, 

so this requirement is not difficult to 

meet. This also ensures civil rights 

considerations are included at all stages 

of FTA-funded projects. 

FTA received several comments 

requesting FTA provide outreach on 

circular changes, as well as requests for 

more targeted technical assistance. FTA 

will provide external training on 

changes made to this and the other 

circulars that FTA is revising and will 

go into effect at the same time (C 

9040.1H, C 9070.1H, C 5010.1F) soon 

after publication of the final circulars. 

Comment: One commenter offered an 

alternative example for calculating the 

allowable in-kind match cost of the 

private operator as they felt the 

provided example was confusing. 

FTA Response: FTA declines to 

replace the existing example with the 

one provided by the commenter and 

will further providing training to assist 

with any confusion on the topic. 

B. Changes to the Final Circular as a 

Result of Public Comments 

A portion of the comments that FTA 

received were requests for clarification 

or more specificity on various 

requirements. FTA revised language in 

the circular to address these comments, 

as explained below. 

Use of the terms ‘‘grant’’ and 

‘‘award.’’ FTA ensured that the terms 

‘‘award’’ and ‘‘grant’’ are used in a 

consistent and understandable way 

throughout the document. 

Incidental Use. In Chapter I, FTA 

updated the definition for Shared Use to 

match the definition in Circular 5010.1 


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and other program circulars to better 

differentiate between ‘‘shared use’’ and 

‘‘incidental use.’’ In addition, in the 

discussion of incidental use in Chapter 

III, FTA included a sentence directing 

readers to Circular 5010.1 for additional 

information. FTA amended the section 

on incidental use to clarify that FTAfunded public transportation service 

should be coordinated with other rural 

transportation services, including 

intercity bus service. The purpose of a 

public transit bus stop or station may be 

for public transportation and an 

intercity operator using the stop or 

station a few times a day would be 

incidental to the public transportation 

purpose. Consistent with 49 U.S.C. 

5323(r), FTA expects recipients to grant 

reasonable access to such stops or 

stations to intercity bus operators. An 

intercity bus operator using a stop or 

station that is part of a joint 

development or other intermodal project 

would not be incidental, as such use 

would meet the purpose of the project. 

Program of Projects (POP). In Chapter 

I, FTA removed the word ‘‘annual’’ from 

the definition of Program of Projects 

(POP) and in Chapter II removed 

‘‘annually’’ from the POP reporting 

procedures; the POP is not required to 

be submitted every year if a State is not 

receiving an award in a given year. It 

must be submitted for any year in which 

the State requests FTA funds. 

The Role of the State Agency. In 

Chapter II, FTA added ‘‘Ensure an 

accurate and complete list of projects 

are included in the Statewide 

Transportation Improvement Program 

(STIP)’’ to the list of roles of a State 

agency in administering the Section 

5311 and 5339 programs. 

Conducting State Management 

Reviews (SMRs). In Chapter II, FTA 

added language that FTA conducts 

SMRs in accordance with the most 

recent Comprehensive Oversight Review 

and Technical Assistance Program 

(CORTAP) Manual. FTA also added 

language to make it clear that FTA may 

perform SMRs in addition to, or in lieu 

of, Triennial Reviews where 

appropriate. 

Transfer of FHWA Flexible Funds. In 

Chapter III, FTA added language stating 

a State may transfer certain funds from 

FHWA to FTA to use for transportation 

planning or intercity bus projects (in 

addition to transit projects, which were 

already noted as eligible). 

Eligibility of Regional Development 

Organizations (RDOs) as Section 5311 

Subrecipients. In Chapter III, FTA added 

language that regional development 

organizations (RDOs) may be eligible 

subrecipients as local governmental 

authorities. 

Intercity bus terminals in urban areas 

using Section 5311(f) funds. Intercity 

bus terminals or the intercity bus 

portions of intermodal terminals in 

urbanized areas that serve both rural 

and non-rural passengers may be built 

with Section 5311(f) funds. The Section 

5311 program is primarily intended to 

benefit rural transportation needs. 

While Section 5311(f) funds can 

sometimes be applied to projects and 

services that collocate in urbanized 

areas, the funds must be used in 

proportion to the benefit to rural 

transportation needs. FTA does not 

specify the exact methodology to be 

used, to allow flexibility to the States 

and designated recipients in urbanized 

areas. A reasonable method must be 

used to ensure the funds are spent 

proportionally to the benefits to rural 

transportation needs. FTA has added 

language on page III–9 to clarify this 

policy. 

Employee Training Expenses. In 

Chapter IV, FTA added language 

clarifying the 0.5% cap on FTA funds 

used for employee training expenses 

applies only to Section 5339 funding, as 

employee training expenses are eligible 

under Section 5311. 

Eligibility of oil as a preventive 

maintenance expense. In Chapter IV 

and Chapter XI, FTA removed ‘‘oil’’ 

from the list of operating expenses 

eligible under Section 5311; oil is an 

eligible preventive maintenance 

expense. Please note operating and 

preventative maintenance are not 

eligible under Section 5339. 

Eligibility of 5339(a) funded projects 

that do not support fixed route only. 

FTA added language in Chapter IV 

clarifying that Section 5339(a) funds are 

not limited to projects that only support 

fixed route. This language addressed a 

commenter’s concern about the 

statement, ‘‘Eligible recipients for 

Section 5339 funds include designated 

recipients that allocate funds to fixed 

route bus operators, and States and local 

governmental authorities that operate 

fixed route service.’’ While the statute 

provides funds are allocated only to 

fixed route operators, the funds may be 

used to support demand-response 

vehicles and facilities. 

ADA Complementary Paratransit. In 

Chapter IV, FTA added language and 

made changes to existing language to 

clarify the requirements for using 

formula funds at an 80 percent Federal 

share for ADA complementary 

paratransit: the percentage caps are 

applied at the State, not the subrecipient 

level, and there are additional 

requirements for applying the higher 

twenty percent (20%) cap of the 

apportionment. Additionally, FTA 

corrected the spelling of 

‘‘complimentary’’ to ‘‘complementary.’’ 

Metropolitan, Statewide, and NonMetropolitan Planning Requirements. In 

Chapter V, FTA added language 

regarding projects receiving rural 

funding and located within 

Metropolitan Planning Area (MPA) 

boundaries but not within a UZA 

boundary to state that they may or may 

not need to be included in the 

Metropolitan Transportation Plan and 

TIP for the respective MPO. Also in 

Chapter V, FTA added language 

specifying that rural areas outside MPAs 

(and therefore not included in a 

metropolitan STIP) may receive FHWA 

flex funds. 

Recordkeeping Requirements. In 

Chapter VI, FTA added language that 

States are not required to keep all 

supporting documentation received 

from subrecipients on file, but this 

documentation must be maintained by 

each subrecipient. 

State Management Plans (SMPs). In 

Chapter VII, FTA added a reference to 

the planning statute at 49 U.S.C. 5304 to 

differentiate between the SMP and the 

long-range statewide transportation 

plan. FTA also added language to 

Chapter VII stating that the SMP must 

be approved by and filed with the FTA 

Regional Office. FTA added language 

which reflects statutory amendments to 

49 U.S.C. 5304 resulting from the FAST 

Act, which require States to describe 

their processes for developing and 

integrating intermodal facilities that 

support intercity transportation, 

including intercity buses and intercity 

bus facilities, and for consideration of 

the role that intercity buses may play in 

reducing congestion, pollution, and 

energy consumption in a cost-effective 

manner and strategies and investments 

that preserve and enhance intercity bus 

systems, including systems that are 

privately owned and operated. 

Reasonable Access to Federally 

Funded Transportation Facilities for 

Intercity Bus Providers. In Chapter IX, 

FTA added language specifying that 

recipients of FTA funds may not deny 

reasonable access for a private intercity 

or charter transportation operator to 

federally funded public transportation 

facilities. FTA also provided guidance 

for determining when access is 

reasonable. 

Meaningful Connections to the 

Intercity Bus Network. In Chapter IX, 

FTA added examples of factors that 

determine whether connections between 

services funded by Section 5311(f) and 

the intercity bus network are 

‘‘meaningful.’’ However, we declined to 

add the word ‘‘scheduled’’ as requested 

by a commenter, as the word is already 


lotter on DSK11XQN23PROD with NOTICES1
79350 Federal Register / Vol. 89, No. 188 / Friday, September 27, 2024 / Notices 

included in the discussion of 

meaningful connections. 

Eligibility of New Intercity Bus 

Facilities. In Chapter IX, FTA specified 

that constructing new intercity terminal 

facilities for rural passengers is an 

eligible activity under Section 5311(f), 

in addition to improvements for existing 

facilities. 

Eligible Subrecipients of Section 5311 

funds. FTA amended language in 

Chapter IX regarding when an intercity 

bus operator elects to be a contractor or 

a subrecipient. A ‘‘contract’’ is a legal 

instrument by which a recipient or 

subrecipient purchases property or 

services needed to carry out its project 

or program under a Federal award. In 

contrast, a ‘‘subaward’’ is an award 

provided by a pass-through entity to a 

subrecipient for the subrecipient to 

carry out part of a Federal award 

received by the pass-through entity. The 

requirements for each are similar but the 

terms and conditions, including 

oversight and enforcement, may be 

different. 

ADA Regulations for Intercity Bus 

Service Operated by Private Entities 

Using Over-the-Road Buses (OTRBs). In 

Chapter IX, FTA added language 

clarifying that vehicles used by intercity 

bus services provided by a public entity 

or under contract or other arrangement 

or relationship to a public entity must 

be compliant with both 49 CFR 38.23 

and subpart G of 49 CFR part 38, as well 

as 49 CFR part 37. 

Update to the Capitalization 

Threshold for Equipment. FTA received 

several comments inquiring about the 

$5,000 capitalization threshold for 

equipment, with some commenters 

requesting the threshold be raised. In its 

recent final rule, codified at 2 CFR 

200.1, OMB increased the threshold for 

the definition of equipment to $10,000, 

and FTA has made this change in the 

final circular. 

State Planning Requirement for 

Intercity Bus. FTA received three 

comments from one commenter 

requesting language reflecting new State 

planning requirements as updated in 

FAST Act. FTA added a section to 

Chapter IX, Intercity Bus, emphasizing 

that transportation plans and 

transportation improvement programs 

must provide for intermodal facilities 

that support intercity transportation, 

including intercity buses and intercity 

bus facilities. Chapter V, Planning & 

Program Development, subsection 2 

(‘‘Metropolitan, Statewide, and NonMetropolitan Planning’’) already 

specifies that States requesting Section 

5311 or Section 5339(a) assistance must 

comply with the planning requirements 

of 49 U.S.C. 5303, 5304 and 5306. 

Tribal Transit Matching Funds. 

Consistent with a recent Tribal 

consultation (89 FR 48593, June 10, 

2024), no local match is required for the 

Tribal Transit Competitive Program. 

FTA has updated Chapter XI to reflect 

this change. 

C. 2 CFR Part 200 Updates 

As stated above, OMB’s 2024 update 

to 2 CFR part 200 increased the 

threshold, from $5,000 to $10,000, for 

the value of equipment, which impacts 

how a recipient may retain, sell, or 

dispose of the equipment at closeout. 

Items under $10,000 are considered 

supplies. In addition, the threshold for 

expenditures at which recipients of 

Federal awards are required to have 

independent audits conducted annually 

increased from $750,000 to $1,000,000. 

FTA has updated the final circular to 

reflect these changes. 

Veronica Vanterpool, 

Deputy Administrator. 

[FR Doc. 2024–22163 Filed 9–26–24; 8:45 am] 

BILLING CODE 4910–57–P 

DEPARTMENT OF TRANSPORTATION 

Federal Transit Administration 

[Docket No. FTA–2023–0009] 

Urbanized Areas Formula Grant 

Programs Guidance, Final Circular 

AGENCY: Federal Transit Administration 

(FTA), Department of Transportation 

(DOT). 

ACTION: Notice of availability of final 

circular and response to comments. 

SUMMARY: The Federal Transit 

Administration (FTA) has finalized a 

new circular entitled, ‘‘Urbanized Areas 

Formula Grant Programs Guidance,’’ 

which consolidates and replaces the 

circulars for the Urbanized Area 

Formula Grants Program (FTA Circular 

C 9030.1), the State of Good Repair 

Grants Program (FTA Circular C 5300.1), 

and the Urbanized Area formula 

component of the Grants for Buses and 

Bus Facilities Program (FTA Circular C 

5100.1). The update and consolidation 

of the circulars incorporate provisions 

from the Fixing America’s Surface 

Transportation (FAST) Act; the 

Bipartisan Infrastructure Law (BIL), 

enacted as the Infrastructure Investment 

and Jobs Act; the Uniform 

Administrative Requirements for 

Federal awards to non-Federal entities; 

and current FTA policies and 

procedures. This notice responds to the 

comments FTA received on the 

proposed circular, which was published 

in the Federal Register on July 12, 2023. 

DATES: The applicable date of this 

circular is November 1, 2024. 

ADDRESSES: One may view the 

comments at docket number FTA–2023– 

0009. For access to the docket, please 

visit https://www.regulations.gov or the 

Docket Operations office located in the 

West Building of the United States 

Department of Transportation, Room 

W12–140, 1200 New Jersey Avenue SE, 

Washington, DC 20590, between 9 a.m. 

and 5 p.m. Monday through Friday. 

FOR FURTHER INFORMATION CONTACT: For 

State of Good Repair Grant program 

questions, Ciara Williams, Office of 

Transit Programs, Federal Transit 

Administration, 1200 New Jersey Ave. 

SE, Room E44–412, Washington, DC 

20590, phone: (202) 366–8954, or email, 

ciara.williams@dot.gov. For Urbanized 

Area Formula Grant program questions, 

Nichole Neal, Office of Transit 

Programs, Federal Transit 

Administration, 1200 New Jersey Ave. 

SE, Room E44–451, Washington, DC 

20590, phone: (202) 366–7865, or email, 

nichole.neal@dot.gov. For Buses and 

Bus Facilities program questions, 

Kirsten Wiard-Bauer, Office of Transit 

Programs, Federal Transit 

Administration, 1200 New Jersey Ave. 

SE, Washington, DC 20590, phone: (202) 

366–7052, or email, kirsten.wiardbauer@dot.gov. For legal questions, Jerry 

Stenquist, Office of Chief Counsel, same 

address, Room E56–314, phone: (202) 

493–8020, or email, Jerry.Stenquist@

dot.gov. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Introduction 

II. Response to Public Comments 

A. Comments for Which No Changes Were 

Made 

B. Changes Based on Public Comments 

III. Other Changes 

I. Introduction 

This notice announces the availability 

of FTA Circular C 9050.1A, ‘‘Urbanized 

Areas Formula Grant Programs 

Guidance,’’ which is a consolidation of 

guidance for the administration of 

grants for the Urbanized Area Formula 

Grants Program under 49 U.S.C. 5307 

(FTA Circular C 9030.1), State of Good 

Repair Grants Program under 49 U.S.C. 

5337 (FTA Circular C 5300.1), and the 

urbanized area formula component of 

the Grants for Buses and Bus Facilities 

Program under 49 U.S.C. 5339(a) (FTA 

Circular C 5100.1). The C 9050.1A 

circular replaces these three circulars. 

Additionally, this circular incorporates 

provisions of the FAST Act (Pub. L. 

114–94) and the Infrastructure 

Investment and Jobs Act (Pub. L. 117– 

58) and includes program-specific 


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