34506 Federal Register / Vol. 63, No. 121 /Wednesday, June 24, 1998 / Notices

DEPARTMENT OF TRANSPORTATION

Federal Transit Administration

FTA Transit Program Changes and

Final Funding Levels for Fiscal Year

1998 Under the Transportation Equity

Act for the 21st Century

AGENCY: Federal Transit Administration

(FTA), DOT.

ACTION: Notice.

SUMMARY: This Notice announces the

availability of the remaining fiscal year

1998 funding for the Federal transit

programs that was not available

previously due to the lack of a full year

authorization of the transit program.

The Transportation Equity Act for the

21st Century (TEA–21), signed into law

by President Clinton on June 9, 1998,

provides a six-year reauthorization of

the Federal transit program and the

necessary contract authority needed to

fully fund the fiscal year 1998 obligation

limitations contained in the fiscal year

1998 Department of Transportation

Appropriations Act. In addition to

announcing the remaining fiscal year

funding, this Notice also revises the

apportionment of funding for the

Section 5307 Urbanized Area Formula

Program in compliance with new

provisions which require a one percent

set-aside for transit enhancements, and

$4,849,950 to be set aside for financing

the Alaska Railroad. Additionally, this

Notice revises the apportionment of

funds for the Section 5309 Fixed

Guideway Modernization Program to

reflect the new allocation formula

established in TEA–21. It also revises

the Section 5309 Bus Allocations to

comply with new provisions in TEA–21

to fund a Bus Test Facility in the

amount of $3,000,000 and a Fuel Cell

Bus Program in the amount of

$4,850,000 in fiscal year 1998. These

two programs were not provided for in

the original Bus Allocations.

This Notice updates and expands on

the December 5, 1997, Federal Register

Notice entitled ‘‘FTA Fiscal Year 1998

Apportionments, Allocations and

Program Information.’’ It also contains

information regarding the changes made

by TEA–21 to the various Federal transit

programs, as well as the FTA policy on

pre-award authority and other new

program information.

The new programs are the Clean Fuels

Formula Program, the Job Access and

Reverse Commute Program, the Overthe-Road Bus Accessibility program, the

Single State Pilot Program for Intercity

Rail Infrastructure Investment, and the

State Infrastructure Banks Pilot

Program. The funding level for the Overthe-Road Bus Accessibility Program is

subject to a pending technical correction

bill which would decrease the $6.8

million a year for operators of other

over-the-road service to a total of $6.8

million for the four years, 2000–2003.

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. FTA Fiscal Year 1998 Funds Available for

Obligation

III. Fiscal Year 1998 Revised Section 5307

Urbanized Area Formula

Apportionments

IV. Fiscal Year 1998 Revised Section 5309

Fixed Guideway Modernization

Apportionments

V. Fiscal Year 1998 Revised Section 5309 Bus

Allocations

VI. Transit Authorization Levels Under TEA–

21

VII. Changes Affecting FTA Formula, Capital

Investment and Planning Programs

A. Capital Project Definitions

B. Operating Assistance

C. Preventive Maintenance

D. Transit Enhancements

E. Proceeds from Sale of Assets

F. Revenue Bond Proceeds As Local Share

G. Notice of Pre-award Authority to Incur

Project Costs

1. Conditions

2. Environmental, Planning, and Other

Federal Requirements

H. Metropolitan Planning

I. New Starts Evaluation and Criteria

VIII. New Programs Authorized by TEA–21

A. Clean Fuels Formula Program

1. Definition of Eligible Projects

2. Application and Apportionment

Deadlines

3. Formula for Apportioning Funds

4. Availability of Funds

B. Job Access and Reverse Commute

Program

1. Definition and Eligible Projects

2. Factors for Consideration

3. Availability of Funds and Grant

Requirements

C. Over-the-Road Bus Accessibility

Program

D. Single State Pilot Program for Intercity

Rail Infrastructure Investment

E. State Infrastructure Banks Pilot Program

IX. General Information Tables:

1. FTA Fiscal Year 1998 Revised

Appropriations and Funds Available for

Grant Programs

2. FTA Fiscal Year 1998 Revised Section

5307 Urbanized Area Formula

Apportionments

3. FTA Fiscal Year 1998 Revised Section

5309 Fixed Guideway Modernization

Apportionments

4. FTA Fiscal Year 1998 Revised Section

5307 Section 5309 Bus Allocations

5. FTA TEA–21 Authorization Levels

6. FTA TEA–21 New Start Project

Authorizations

7. FTA TEA–21 Bus Capital Project

Authorizations

8. FTA Fiscal Years 1998–2003

Apportionment Formula for Sections

5307 and 5311

9. FTA Fiscal Years 1998–2003

Apportionment Formula for Section

5309 Fixed Guideway Modernization

Program

10. FTA Unit Values of Data—Fiscal Year

1998 Revised Formula Grant

Apportionments

I. Background

The fiscal year 1998 apportionments

and allocations for the formula, capital,

and transit planning and research

programs were published in a Federal

Register Notice on December 5, 1997,

entitled ‘‘FTA Fiscal Year 1998

Apportionments, Allocations and

Program Information.’’ That Notice

contained apportioned funds based on

the 1998 Appropriations Act and

Federal transit laws, as well as funds

available under the Surface

Transportation Extension Act of 1997.

Because the Surface Transportation

Extension Act of 1997 only provided

contract authority through March 31,

1998, FTA published (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, based on the

1998 Appropriations Act and Federal

transit laws; and (2) a listing of the

partial amount of the apportionments

and allocations, based on the fiscal year

1998 available funds for these programs,

in accordance with the 1998 DOT

Appropriations Act and the Surface

Transportation Extension Act of 1997.

Now that full year contract authority is

provided under TEA–21, the full

amount of the fiscal year 1998

apportionments and allocations is

available for obligation.

II. FTA Fiscal Year 1998 Funds

Available for Obligation

The total fiscal year 1998

apportionments and allocations for the

formula, capital investment, and transit

planning and research programs in the

amount of $4,547,737,724 were
Federal Register / Vol. 63, No. 121 /Wednesday, June 24, 1998 / Notices 34507

published in the Federal Register Notice

of December 5, 1997. Full obligational

authority for each of the amounts listed

in the December 5, 1997, Notice is now

provided for the following programs:

Section 5307 Urbanized Area Formula

Program;

Section 5311 Nonurbanized Area

Formula Program;

Section 5310 Elderly and Persons

with Disabilities Program;

Section 5309 Capital Investment

Program: Fixed-Guideway

Modernization Program, and the Bus

Capital Program.

Obligational authority for the

following programs is not affected by

this Notice because they received the

full year’s funding pursuant to the

December 5, 1997, Federal Register

Notice:

Section 5311(b) Rural Transit

Assistance Program Funds;

Section 5309 New Starts Program;

Section 5303 Metropolitan Planning

Program;

Section 5313(b) State Planning and

Research Program.

Table 1 displays the amount of

appropriations and funds available for

each of the programs listed in this

Notice.

III. Fiscal Year 1998 Revised Section

5307 Urbanized Area Formula

Apportionments

The new law provides that, of the

funds apportioned each fiscal year

under the Urbanized Area Formula

Program to urbanized areas of 200,000

or more in population, at least one

percent shall be used for transit

enhancement activities. It also requires

that $4,849,950 shall be available

annually to the Alaska Railroad for

improvements to its passenger

operations. Accordingly, the fiscal year

1998 Urbanized Area Formula

apportionment has been revised to

accommodate these two provisions.

The fiscal year 1998 funds

appropriated and made available for

Urbanized Area Formula grants total

$2,303,702,677. After a deduction of

.32343056 of one percent for Project

Management Oversight ($7,450,879),

$2,296,251,798 is available for

apportionment to the urbanized areas

and states. Of this amount, $4,834,264

($4,849,950 less $15,6896 for PMO) is

set aside for the Alaska Railroad. In

addition to the balance of

$2,291,417,534 of the appropriated

funds, the revised apportionment also

includes $7,162,381 in deobligated

funds which have become available for

reapportionment for the Urbanized Area

Formula Program, leaving a balance of

$2,298,579,915 to be apportioned to

urbanized areas and states. Table 2

shows a revised apportionment of

$2,303,414,179, which includes the

Alaska Railroad.

There is no longer an operating

assistance limitation for areas under

200,000 in population. TEA–21

eliminates Federal financing of

operating expenses for areas 200,000

and above effective immediately.

Also indicated on Table 2 is the

amount set aside for transit

enhancements as provided in TEA–21.

See Section VII.D of this Notice for a

further discussion of transit

enhancement funds. This transit

enhancement provision is effective

immediately.

IV. Fiscal Year 1998 Revised Section

5309 Fixed Guideway Modernization

Apportionments

TEA–21 modifies the formula for

allocating the Fixed Guideway

Modernization funds. The new formula

contains seven tiers rather than four.

The allocation of funding under the first

four tiers has been modified slightly

and, through fiscal year 2003, will be

allocated based on data used to

apportion the funding in fiscal year

1997. Funding in the three new tiers

will be apportioned based on the latest

available route miles and revenue

vehicle miles on segments at least seven

years old as reported to the National

Transit Database, rather than on route

miles and revenue vehicle miles on

entire systems which are seven years

old.

TEA–21 specifically required the FTA

to revise the fiscal year 1998 Fixed

Guideway Modernization funds using

the new formula. This has resulted in

generally minor changes in the amounts

available. However, one area, Worcester,

Massachusetts, is no longer eligible,

because the fixed guideway segment

attributable to that urbanized area was

not in place as of October 1, 1990. For

the fiscal year 1998 revised

apportionments, sufficient funds were

available to allocate only to the first five

tiers. The revised apportionments are

contained in Table 3. For the

reapportionment of fiscal year 1998

funds, Tier 5 uses Urbanized Area

Formula Program fixed guideway tier

formula factors that were used to

apportion the fiscal year 1998 Fixed

Guideway allocations in the December

5, 1997, Federal Register Notice. Any

fixed guideway segment that is less than

seven years old has been deleted from

this data base.

For fiscal year 1998, there is an

$800,000,000 obligation limitation for

fixed guideway modernization. After a

deduction of .32343056 of one percent

for Project Management Oversight

($2,587,445), $797,412,555 is available

for apportionment to the specified

urbanized areas.

Each year, the new fixed guideway

modernization formula will allocate

funds by seven tiers as follows:

Tier 1

The first $497,700,000 shall be

apportioned to the following urbanized

areas as follows: Baltimore $8,372,000;

Boston $38,948,000; Chicago/

Northwestern Indiana $78,169,000;

Cleveland $9,509,500; New Orleans

$1,730,588; New York $176,034,461;

Northeastern New Jersey $50,604,653;

Philadelphia/Southern New Jersey

$58,924,764; Pittsburgh $13,662,463;

San Francisco $33,989,571;

Southwestern Connecticut $27,755,000.

Tier 2

The next $70,000,000 shall be

apportioned as follows: Tier 2B: 50

percent to areas identified in Tier 1; and

Tier 2B: 50 percent to other urbanized

areas with fixed guideway in operation

at least seven years. Funds for both

Tiers 2A and 2B are apportioned using

the Urbanized Area Formula Program

fixed guideway tier formula factors that

were used to apportion funds for the

Fixed Guideway Modernization

Program in fiscal year 1997.

Tier 3

The next $5,700,000 shall be

apportioned to the following urbanized

areas as follows: Pittsburgh, 61.76

percent; Cleveland, 10.73 percent; New

Orleans, 5.79 percent; the remaining

21.72 percent is apportioned to areas in

Tier 2B using the fixed guideway tier

formula factors used in fiscal year 1997.

Tier 4

The next $186,600,000 shall be

apportioned to all eligible areas using

the fixed guideway tier formula factors

used in fiscal year 1997.

Tier 5

The next $70,000,000 shall be

apportioned as follows: 65 percent to

the eleven areas specified in Tier I, and

35 percent to all other urbanized areas

using the most current urbanized area

formula program fixed guideway tier

formula factors. Any segment this is less

than seven years old has been deleted

from this data base.

Tier 6

The next $50,000,000 shall be

apportioned as follows: 60 percent to

the eleven areas specified in Tier I, and

30 percent to the other urbanized areas

with fixed guideway system segments in
34508 Federal Register / Vol. 63, No. 121 /Wednesday, June 24, 1998 / Notices

revenue service for at least seven years.

Allocations will be based on the latest

available route miles and revenue

vehicle miles for fixed guideway

segments at least seven years old as

reported to the National Transit

Database.

Tier 7

Any remaining amounts shall be

apportioned as follows: 50 percent to

the eleven urbanized areas specified in

Tier I, and 50 percent to the other

urbanized areas with fixed guideway

system segments in revenue service for

at least seven years. Allocations will be

based on the latest available route miles

and revenue vehicle miles for fixed

guideway segments at least seven years

old as reported to the National Transit

Database.

V. Fiscal Year 1998 Revised Section

5309 Bus Allocations

TEA–21 provides funding for a Bus

Testing Facility in the amount of

$3,000,000 and a Fuel Cell Bus Program

in the amount of $4,850,000 in fiscal

year 1998. These two programs were not

provided for in the original allocations;

therefore, all bus allocations have been

reduced on a prorated basis to

accommodate these two additional

activities. Table 4 displays the revised

allocations.

VI. Transit Authorization Levels Under

TEA–21

TEA–21 provides a combination of

trust and general fund authorizations

that total $42.0 billion over the six year

period, fiscal years 1998—2003.

However, $36 billion is guaranteed

funds included under the discretionary

spending cap. TEA–21 includes $6

billion above the guaranteed level. See

Table 5 for the guaranteed funding

levels by program, and Table 5A for the

guaranteed and nonguaranteed levels by

program.

TEA–21 authorizes 191 New Starts

projects. Of this number, 108 projects

are authorized for final design and

construction funding and 68 projects are

authorized for alternatives analysis and

preliminary engineering funding. Of

these, 34 projects have specific dollar

amounts associated with them. An

additional 15 projects have specific

dollar amounts but are not included in

the first two lists. All earmarks are listed

in Table 6 by area and project, including

the dollar amount if specified. Projects

authorized for alternatives analysis and

preliminary engineering also become

authorized for final design and

construction as of October 1, 2000.

TEA–21 contains a provision that

makes $10,400,000 available from

Section 5309 New Starts funds in fiscal

years 1999—2003 for ferry boat capital

projects in Alaska or Hawaii. These

projects may be ferry boats or ferry

terminal facilities or approaches to ferry

terminal facilities. TEA–21 also

authorizes an additional $3,600,000

from Section 5309 New Start

nonguaranteed funds in fiscal years

1999—2003 for ferry projects as defined

above.

It should be noted that projects

earmarked in TEA–21 are subject to

Congressional actions in later

appropriations bills.

Also authorized are project specific

allocations in fiscal years 1999 and 2000

for 158 Capital Investment Bus projects

totaling $539,637,000. These projects by

amount and area are displayed on Table

7.

Information regarding estimates of

funding levels for 1999—2003 by state

and urbanized area is available on the

FTA home page at www.fta.dot.gov.

These numbers are for planning

purposes only as they will be revised in

the future but may be used for

programming metropolitan

transportation improvement programs

and statewide transportation

improvement programs.

VII. Changes Affecting FTA Formula,

Capital Investment, and Planning

Programs

A. Capital Project Definitions

TEA–21 amends the definition of a

capital project placing several new

items in the general definition and

formally codifying in the FTA

authorizing statute several items that

had been modified in the past through

appropriations acts.

Following is the definition of a capital

project contained in TEA–21. The term

‘capital project’ means a project for:

1. Acquiring, constructing,

supervising or inspecting equipment or

a facility for use in mass transportation,

expenses incidental to the acquisition or

construction (including designing,

engineering, location surveying,

mapping, and acquiring rights of way),

payments for the capital portions of rail

trackage rights agreements, transitrelated intelligent transportation

systems, relocation assistance, acquiring

replacement housing sites, and

acquiring, constructing, relocating, and

rehabilitating replacement housing;

2. Rehabilitating a bus;

3. Remanufacturing a bus;

4. Overhauling rail rolling stock;

5. Preventive maintenance;

6. Leasing equipment or a facility for

use in mass transportation subject to

regulations the Secretary prescribes

limiting the leasing arrangements to

those that are more cost-effective than

acquisition or construction;

7. Joint development: a mass

transportation improvement that

enhances economic development or

incorporates private investment,

including commercial and residential

development, pedestrian and bicycle

access to a mass transportation facility,

and the renovation and improvement of

historic transportation facilities, because

the improvement enhances the

effectiveness of a mass transportation

project and is related physically or

functionally to that mass transportation

project or establishes new or enhanced

coordination between mass

transportation and other transportation,

and provides a fair share of revenue for

mass transportation that will be used for

mass transportation—

(a) Including property acquisition,

demolition of existing structures, site

preparation, utilities, building

foundations, walkways, open space,

safety and security equipment and

facilities (including lighting,

surveillance, and related intelligent

transportation system applications),

facilities that incorporate community

services such as daycare and health

care, and a capital project for, and

improving, equipment or a facility for

an intermodal transfer facility or

transportation mall, except that a person

making an agreement to occupy space in

a facility under this subparagraph shall

pay a reasonable share of the costs of the

facility through rental payments and

other means; and

(b) Excluding construction of a

commercial revenue-producing facility

or a part of a public facility not related

to mass transportation;

8. The introduction of new

technology, through innovative and

improved products, into mass

transportation; or

9. The provision of nonfixed route

paratransit transportation services in

accordance with section 223 of the

Americans with Disabilities Act of 1990

(42 U.S.C. 12143), but only for grant

recipients that are in compliance with

applicable requirements of that Act,

including both fixed route and demand

responsive service, and only for

amounts not to exceed 10 percent of

such recipient’s annual formula

apportionment under sections 5307 and

5311.’’

B. Operating Assistance

Operating assistance for urbanized

areas with populations under 200,000

continues to be available, at the Federal/

local share ratio of 50/50, with no

limitation on the amount of a grantee’s
Federal Register / Vol. 63, No. 121 /Wednesday, June 24, 1998 / Notices 34509

apportionment that may be used for

operating assistance. Operating

assistance funds for urbanized areas

with populations of 200,000 and above

are no longer available as of effective

date of TEA–21.

For fiscal year 1999 and thereafter,

operating assistance is available only to

nonurbanized and urbanized areas with

populations under 200,000. For these

smaller areas, there is no limitation on

the amount of the apportionment that

may be used for operating assistance,

and the Federal/local share ratio is 50/

50. However, for both categories of

urbanized areas, many of the activities

formerly funded by FTA with operating

assistance are now eligible capital items

under the category of preventive

maintenance. Operating assistance as a

capital project with an 80 percent

federal match ratio will continue for

fiscal year 1998 for areas under 200,000.

Operating assistance at the 80/20 match

will not be available in fiscal year 1999

or thereafter.

C. Preventive Maintenance

Preventive maintenance, an expense

that became eligible for FTA capital

assistance with the DOT 1998

Appropriations Act, is now eligible for

FTA capital assistance under TEA–21,

so that fiscal year 1998 funds and

subsequent fiscal year appropriations

may be used for preventive

maintenance. Preventive maintenance

costs, as in 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 reporting manual. 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. 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

preventive maintenance capital

assistance 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

costs regardless of grant eligibility as

capital. Nevertheless, under provisions

of the fiscal year 1998 Appropriations

Act, and now under provisions of TEA–

21, 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. Grantees may

not count the same costs twice.

D. Transit Enhancements

TEA–21 establishes a one percent setaside for transit enhancements under

the Urbanized Area Formula Program

for areas 200,000 and above in

population. The term ‘‘transit

enhancement’’ includes projects that are

designed to enhance mass

transportation service or use and are

physically or functionally related to

transit facilities. Eligible projects are: (1)

historic preservation, rehabilitation, and

operation of historic mass transportation

buildings, structures, and facilities

(including historic bus and railroad

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

landscaping and other scenic

beautification, including tables,

benches, trash receptacles, and street

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

access and walkways; (6) bicycle access,

including bicycle storage facilities and

installing equipment for transporting

bicycles on mass transportation

vehicles; (7) transit connections to parks

within the recipient’s transit service

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

access for persons with disabilities to

mass transportation.

One percent of the urbanized area

formula apportionment in urbanized

areas with a population of 200,000 and

above shall be available only for transit

enhancements. Table 2 indicates the

amount set aside for enhancements in

urbanized areas of 200,000 and above. If

these funds are not obligated for transit

enhancement projects by three years

following the fiscal year in which the

funds are apportioned, the funds shall

be reapportioned under the urbanized

area formula program.

The project budget for each urbanized

area formula grant application which

includes enhancement funds shall

include a scope code for transit

enhancements and specific budget line

activity items for transit enhancements.

Transit enhancements may exceed the

one percent set-aside. However, items

that are only eligible as enhancements

such as operating costs for historic

facilities may only be funded with the

enhancement funds.

Recipients of the one percent set-aside

enhancement funds shall submit a

report to the appropriate FTA regional

office listing the projects carried out

during the fiscal year with those funds.

This report shall be part of the

recipient’s annual certification to the

FTA. If at all possible, the report should

be submitted electronically and should

utilize the budget line item codes used

in the approved project budget.

Under a related provision, projects

providing bicycle access to mass

transportation funded with the

enhancement set-aside shall be funded

at a 95 percent Federal share.

E. Proceeds From Sale of Assets

TEA–21 provides an additional option

for handling proceeds from the sale of

federally-funded assets. This new

provision allows the recipient, with

FTA approval, to sell, transfer, or lease

real property, equipment, or supplies

acquired with FTA assistance and no

longer needed for transit purposes. The

net proceeds of the transaction may then

be used to reduce the gross project cost

of other Federally-assisted capital

transit projects.

If the asset is identified as no longer

needed by the grantee for public

transportation purposes, and

determined by FTA as eligible for

disposition, then the new requirements

would apply. That is, the proceeds

could be retained by the grantee and

used to reduce the gross project costs of

another Federally-assisted capital transit

project prior to applying for Federal

financial assistance.

If the asset is to be retained in transit

use after being transferred, sold, or

leased, such as by another transit

provider or in a joint development

project, then existing requirements

would apply.

Previous provisions continue to allow

the recipient of assistance to transfer

assets to another public agency to be

used for a public purpose. Additional

information is available from the

appropriate FTA Regional Office.

F. Revenue Bond Proceeds as Local

Share

Beginning with fiscal year 1999, and

permissible thereafter, a recipient of

assistance under the Urbanized Area

Formula Program (Section 5307) and the

Capital Program (Section 5309), may use

as the local share for capital projects the

proceeds from the issuance of bonds

that are backed by future revenue from

the farebox. This provision of TEA–21 is

expected to help reduce borrowing costs

for transit authorities. Under this
34510 Federal Register / Vol. 63, No. 121 /Wednesday, June 24, 1998 / Notices

provision, using the proceeds of the

revenue bonds as matching share will be

approved only if the aggregate amount

of financial support from the State and

affected local governmental authorities

in the urbanized area during the next

three fiscal years is not less than the

aggregate amount provided by the State

and affected local governmental

authorities in the urbanized area during

the preceding three fiscal years (as is

made evident in the State

Transportation Improvement Program).

G. Notice of Pre-Award Authority To

Incur Project Costs

Since fiscal year 1994, FTA has

provided pre-award authority to cover

certain planning and capital costs prior

to grant award. This automatic preaward spending authority permits a

grantee to incur costs on an eligible

transit capital or planning project

without prejudice to possible future

Federal participation in the cost of the

project or projects. Prior to exercising

pre-award authority, grantees are

strongly encouraged to consult with the

appropriate regional office where there

could be any question regarding the

eligibility of the project for future FTA

funds.

Authority to incur costs for fiscal year

1998 Fixed Guideway Modernization,

Metropolitan Planning, Urbanized Area

Formula, Elderly and Persons with

Disabilities, Nonurbanized Area

Formula, and State Planning and

Research Programs in advance of

possible future Federal participation

was provided in the December 5, 1997,

Federal Register Notice. This pre-award

authority now also extends to future

formula funds that will be apportioned

during the authorization period of TEA–

21, 1998–2003. Pre-award authority also

applies to Capital Bus funds identified

in the December 5, 1997, notice. This

pre-award authority also applies to

projects intended to be funded with STP

or CMAQ funds transferred to FTA in

fiscal year 1998. This pre-award

authority for STP or CMAQ funds is

now extended for the 1998–2003

authorization period of TEA–21. Preaward authority applies to FTA funds

and flexible funds provided the

conditions in paragraphs (1) and (2)

below are met. The pre-award authority

does not apply to Capital New Start

funds, or to Capital Bus projects not

specified in this or previous notices.

Pre-award 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.

1. Conditions

Similar to the FTA Letter of No

Prejudice (LONP) authority, the

conditions under which this authority

may be utilized are specified below:

a. This pre-award authority is not a

legal or moral commitment that the

project(s) will be approved for FTA

assistance or that FTA will obligate

Federal funds. Furthermore, it is not a

legal or moral commitment that all

items undertaken by the applicant will

be eligible for inclusion in the project(s).

b. All FTA statutory, procedural, and

contractual requirements must be met.

c. No action will be taken by the

grantee that prejudices the legal and

administrative findings which the

Federal Transit Administrator must

make in order to approve a project.

d. Local funds expended by the

grantee pursuant to and after the date of

this authority will be eligible for credit

toward local match or reimbursement if

FTA later makes a grant for the

project(s) or project amendment(s).

e. 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.

f. For funds to which this authority

applies, the authority expires with the

lapsing of the fiscal year funds.

2. 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 through the use of preaward authority. If a grantee has

questions or concerns regarding the

environmental requirements, or any

other Federal requirements that must be

met before incurring costs, it should

contact the appropriate regional office.

Before an applicant may incur costs

either for activities expected to be

funded by New Start funds, or for Bus

Capital projects not listed in the

December 5, 1997, Federal Register

Notice, it must first obtain a written

LONP from FTA. To obtain an LONP, a

grantee must submit a written request

accompanied by adequate information

and justification to the appropriate FTA

regional office.

H. Metropolitan Planning

TEA–21 retains much of the basic

structure of the metropolitan and

statewide planning process, as

established by ISTEA, with a few

significant changes. The set of sixteen

metropolitan planning factors has been

reduced to seven factors: economic

vitality; safety and security; accessibility

and mobility; environment, energy

conservation and quality of life;

integration and connectivity; efficient

operation and management; and

preservation of existing transportation

resources. Freight shippers and users of

public transit are added to the explicit

set of stakeholders to be given

opportunities to comment on

metropolitan plans and transportation

improvement programs (TIPs).

Metropolitan planning organizations

(MPOs) may include in their TIPs an

‘‘illustrative’’ list of projects that could

be implemented if additional resources

were made available. MPOs will also be

encouraged to coordinate the planning

for Federally-funded non-emergency

transportation services as part of the

metropolitan planning process. FTA and

FHWA will be revising the Joint

Planning Regulations (23 CFR part 450

and 49 CFR part 613) to formally
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incorporate changes to the planning

program.

I. New Starts Evaluation and Criteria

TEA–21 includes several changes to

the evaluation process and criteria for

New Starts fixed guideway projects. The

Secretary shall consider several

additional factors in the Department’s

review and evaluation of candidate New

Starts projects. FTA will be required to

evaluate each project authorized for

New Starts funding by each criterion, as

well as provide an overall project rating

of ‘‘highly recommended,’’

‘‘recommended,’’ and ‘‘not

recommended.’’ In addition to its

annual report to Congress on Funding

Levels and Allocations of Funds for

Transit Major Capital Investments, FTA

will be required to issue a supplemental

report in August of each year which

rates all projects that have completed

alternatives analysis and preliminary

engineering since the date of the last

report. FTA must also approve

candidate New Starts project’s entry

into final design. FTA also continues its

prior approval authority for entrance

into preliminary engineering.

TEA–21 requires that no less than 92

percent of the annual New Starts

program must be used for final design

and construction.

FTA will issue regulations

implementing the New Starts provision

of TEA–21.

VIII. New Programs Authorized by

TEA–21

A. Clean Fuels Formula Program

1. Definition and Eligible Projects

The Clean Fuels Formula Program

will finance the purchase or lease of

clean fuel buses and facilities and the

improvement of existing facilities to

accommodate clean fuel buses. Clean

fuel buses include those powered by

compressed natural gas, liquefied

natural gas, biodiesel fuels, batteries,

alchohol-based fuels, hybrid electric,

fuel cell and certain clean diesel, and

other low or zero emissions technology,

and which the Environmental

Protection Agency (EPA) has certified

sufficiently reduces harmful emissions.

Eligible projects include:

a. purchasing or leasing clean fuel

buses, including buses that employ a

lightweight composite primary

structure;

b. constructing or leasing clean fuel

buses or electrical recharging facilities

and related equipment;

c. improving existing mass

transportation facilities to accommodate

clean fuel buses;

d. repowering pre-1993 engines with

clean fuel technology that meets the

current urban bus emission standards;

e. retrofitting or rebuilding pre-1993

engines if before half life to rebuild; and

may,

f. at the discretion of the FTA,

projects relating to clean fuel, biodiesel,

hybrid electric or zero emissions

technology vehicles that exhibit

equivalent or superior emissions

reductions to existing clean fuel or

hybrid electric technologies.

2. Application and Apportionment

Deadlines

Any designated recipient seeking to

apply for a grant under this section shall

submit an application to FTA no later

than January 1 of each fiscal year. No

later than February 1 of each fiscal year

FTA shall apportion funds to designated

recipients who submitted applications.

FTA is required to issue regulations to

implement this program.

3. Formula for Apportioning Funds

a. Areas 1,000,000 and above. Two

thirds of the funds available shall be

apportioned to designated recipients

with eligible projects in urban areas

with a population of 1,000,000 and

above. Of this, 50 percent shall be

apportioned so that each designated

recipient receives a grant in an amount

equal to the ratio between:

(1) the number of vehicles in the bus

fleet of the eligible project, weighted by

the severity of nonattainment for the

area in which the eligible project is

located; and

(2) the total number of vehicles in the

bus fleets of all eligible projects in areas

with a population of 1,000,000 and

above funded, weighted by the severity

of nonattainment for all areas in which

those eligible projects are located as

provided in c. below. The remaining 50

percent shall be apportioned such that

each designated recipient receives a

grant in an amount equal to the ratio

between:

(a) the number of bus passenger miles

of the eligible project of the designated

recipient, weighted by the severity of

nonattainment of the area in which the

eligible project is located as provided in

c. below.

(b) the total number of bus passenger

miles of all eligible projects in areas

with a population of 1,000,000 and

above funded, weighted by the severity

of nonattainment of all areas in which

those eligible projects are located as

provided in c. below.

b. Areas under 1,000,000 Population.

The formula for areas under 1,000,000 is

the same as for areas 1,000,000 and

above, except that in areas 1,000,000

and above the formula uses a pool of all

eligible projects in areas with a

population of 1,000,000 and above and

the formula for areas under 1,000,000

uses a pool of all eligible project for

areas under 1,000,000.

c. Weighting Factors. The number of

clean fuel vehicles in the fleet or the

number of passenger miles shall be

multiplied by a factor of:

(1) 1.0 if, at the time of the

apportionment, the area is a

maintenance area for ozone or carbon

monoxide;

(2) 1.1 if, at the time of the

apportionment, the area is classified as

a marginal ozone nonattainment area or

a marginal carbon monoxide

nonattainment area;

(3) 1.2 if, at the time of the

apportionment, the area is classified as

a moderate ozone nonattainment area or

a moderate carbon monoxide

nonattainment area;

(4) 1.3 if, at the time of the

apportionment, the area is classified as

a serious ozone nonattainment area or a

serious carbon monoxide nonattainment

area;

(5) 1.4 if, at the time of the

apportionment, the area is classified as

a severe ozone nonattainment area or a

severe carbon monoxide nonattainment

area;

(6) 1.5 if, at the time of the

apportionment, the area is classified as

an extreme ozone nonattainment area or

an extreme carbon monoxide

nonattainment area;

(7) The fleet and passenger miles for

an eligible project shall also be

multiplied by a factor of 1.2 in those

areas that are both nonattainment for

carbon monoxide and are also classified

as nonattainment or maintenance for

ozone.

Note: Certain of the carbon monoxide

categories are inconsistent with the

categories established by the Clean Air Act,

as amended.

d. Limitation on Use of Funds and

Maximum Grant Amounts. The amount

of a grant to a designated recipient shall

not exceed the lesser of $15,000,000 in

areas under 1,000,000 population, or

$25,000,000 in areas with a population

of 1,000,000 and above, or 80 percent of

the total project cost.

No more than $50,000,000 of the

amount made available each year may

be available to fund clean diesel buses.

No more than five percent of the

amount made available may be available

to fund retrofitting or replacement of the

engines of buses that do not meet the

clean air standards of the EPA.

At least five percent of the total

program funding must be used for the
34512 Federal Register / Vol. 63, No. 121 /Wednesday, June 24, 1998 / Notices

purchase or construction of hybrid

electric or battery-powered buses or

facilities designed to service those

buses.

4. Availability of Funds

TEA–21 authorizes $200,000,000 each

year for the Clean Fuels Formula

Program. However, only $100,000,000

each year is within the guaranteed

funding level. Any amount made

available shall remain available to a

project for one year after the fiscal year

for which the amount is made available

and any funds that remain unobligated

at the end of the second fiscal year shall

be added to the amount made available

in the following fiscal year.

FTA will issue guidance and

application instructions for this

program.

B. Job Access and Reverse Commute

Program

1. Definition and Eligible Projects

The Job Access and Reverse Commute

Program, to develop additional

transportation services needed to

connect welfare recipients and other

low income persons to jobs and needed

support services, is authorized at $150

million annually. However, the amounts

under the guaranteed funding level start

at $50 million in fiscal year 1999 and

increases to $150 million in fiscal year

2003.

A Job Access project is a project

designed to transport welfare recipients

and eligible low-income individuals to

and from jobs and activities related to

their employment. The grants may

finance capital projects and operating

cost of equipment, facilities, and

associated capital maintenance items

related to providing access to jobs;

promote the use of transit by workers

with nontraditional work schedules;

promote the use by appropriate agencies

of transit vouchers for welfare recipients

and eligible low-income individuals;

and promote the use of employer

provided transportation, including the

transit pass benefit program under

section 132 of the Internal Revenue

Code of 1986.

A Reverse Commute project is a

project related to the development of

transportation services designed to

transport residents from urban areas,

urbanized areas and nonurbanized areas

to suburban employment opportunities.

Eligible projects include projects which

subsidize the costs associated with

adding reverse commute bus, train,

carpool, van routes or service from

urbanized and nonurbanized areas to

suburban work places; subsidize the

purchase or lease by a nonprofit

organization or public agency of a bus

or bus dedicated to shuttling employees

from their residences to a suburban

work place; or otherwise facilitate the

provision of mass transportation

services to suburban employment

opportunities. Planning and

coordination are not eligible activities

under this program.

2. Factors for Consideration

There will be a competitive grant

selection process and TEA–21 contains

specific factors for consideration in

awarding grants under this program.

Factors include:

a. The percentage of the population in

the area to be served by the applicant

that are welfare recipients;

b. The need for additional

transportation services in the area to be

served;

c. The extent to which the applicant

demonstrates:

(1) Coordination with and the

financial commitment of existing

transportation service providers; and

(2) Coordination with the State agency

that administers the State program

funded under part A of Title IV of the

Social Security Act;

d. Maximum utilization of existing

transportation service providers and

expanded transit networks or hours of

service,

e. Innovative approach that is

responsive to identified service needs;

f. The extent to which the applicant

for a Job Access project:

(1) Presents a regional transportation

plan for addressing the transportation

needs of welfare recipients and eligible

low income individuals, and

(2) Identifies long-term financing

strategies to support the services;

g. The extent to which the applicant

demonstrates that the community to be

served has been consulted in the

planning process; and

h. For Reverse Commute projects, the

need for additional services identified

in a regional transportation plan to

transport individuals to suburban

employment opportunities and the

extent to which the proposed services

will address these needs.

3. Availability of Funds and Grant

Requirements

Of the funds made available under

this program, 60 percent shall be

allocated for eligible projects in

urbanized areas with populations of

200,000 and above. Twenty percent

shall be allocated for eligible projects in

urbanized areas with populations under

200,000. Twenty percent shall be

allocated for eligible projects in

nonurbanized areas.

The program has a 50 percent federal

share. Certain other Federal funds may

be used to meet the 50 percent local

match requirement. The requirements of

Section 5307, the Urbanized Area

Formula Program, apply to these grants.

All planning requirements apply to

these grants.

FTA will issue further guidance and

application instructions for this

program.

C. Over-the-Road Bus Accessibility

Program

TEA–21 establishes the Rural

Transportation Accessibility Incentive

Program, hereinafter referred to as the

Over-the-Road Bus Accessibility

Program. This program is designed to

assist operators of over-the-road buses to

finance the incremental capital and

training costs of complying with the

Department of Transportation’s

anticipated final rule regarding

accessibility of over-the-road buses

required by the Americans with

Disabilities Act.

Beginning in fiscal year 1999, funding

will be available for operators of overthe-road buses in intercity fixed route

service, starting with $2 million in fiscal

year 1999 and increasing to $5.25

million in fiscal year 2003. In addition,

beginning in fiscal year 2000, an

additional $6.8 million each year will

also be available for operators of other

over-the-road bus service, including

local commuter service and charter or

tour service. Total funding authorized

through fiscal year 2003 is $17,500,000

for fixed route over-the-road bus

operators and $27,200,000 for operators

of other over-the road bus services.

(Note: The pending technical correction

bill decreases the $6.8 million a year for

operators of other over-the-road service

to a total of $6.8 million for the four

years, fiscal years 2000–2003.)

TEA–21 directs FTA to conduct a

national solicitation for applications.

FTA must select the recipients of grants

on a competitive basis, considering the

following criteria:

1. The identified need for over-theroad bus accessibility for persons with

disabilities in the areas served by the

operator;

2. The extent to which the applicant

demonstrates innovative strategies and

financial commitment to providing

access to over-the-road buses to persons

with disabilities;

3. The extent to which the over-theroad bus operator acquires equipment

required by the final rule prior to any

required timeframe in the final rule;

4. The extent to which financing the

costs of complying with the DOT’s final

rule regarding accessibility of over-the-
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road buses presents a financial hardship

for the applicant; and

5. The impact of accessibility

requirements on the continuation of

over-the-road bus service, with

particular consideration of the impact of

the requirements on service to rural

areas and for low-income individuals.

The Federal share shall not exceed 50

percent of the project cost. The grants

under this new program will be subject

to all of the terms and conditions

applicable to intercity bus operators

assisted under the nonurbanized

formula program and any other terms

and conditions FTA prescribes.

FTA will issue implementing

guidance.

D. Single State Pilot Program for

Intercity Rail Infrastructure Investment

TEA–21 establishes a pilot program to

determine the benefits of using transit

funds to support intercity passenger rail

service in the State of Oklahoma. Any

assistance provided to the State of

Oklahoma under Sections 5307 and

5311 during fiscal years 1998–2003 may

be used for capital improvements to,

and operating assistance for, intercity

passenger rail service. The Secretary

must submit to the House

Transportation and Infrastructure

Committee and Senate Banking,

Housing and Urban Affairs Committee

by October 1, 2002, a report which

evaluates the pilot program. The

evaluation must address the effect of the

pilot program on alternative forms of

transportation within the State, the

effects on operators of mass

transportation and their passengers; a

calculation of the amount of Federal

assistance provided for intercity

passenger rail service; and an estimate

of the benefits to intercity passenger rail

service.

E. State Infrastructure Banks Pilot

Program

The State Infrastructure Bank program

was first authorized as a pilot program

under the National Highway System

Designation Act of 1995. TEA–21

provides for a revised pilot program in

four states, California, Florida, Missouri

and Rhode Island. These four states may

enter into new or revised cooperative

agreements that specify procedures and

guidelines for establishing, operating

and providing assistance from the

infrastructure bank. These four states

may capitalize the infrastructure bank

with funds from Section 5307, 5310 and

5311 as well as with Federal highway

funds. There is no limitation on the

amount of Federal funds that may be

used to capitalize the bank as there was

under the original pilot program.

TEA–21 specifies that the

requirements of Titles 23 and 49, United

States Code, shall apply to repayments

from non-Federal sources to an

infrastructure bank from projects

assisted by the bank. Such repayment

shall be considered to be Federal funds.

Repayments from Federal sources will

also be subject to the requirements of

Titles 23 and 49. In addition, for transit

projects, the requirements for Sections

5307 and 5309 projects will apply.

IX. General Information

For technical assistance purposes, the

Fiscal Years 1998–2003 Apportionment

Formula for Sections 5307 and 5311 are

contained in Table 8. Table 9 displays

the FTA Fiscal Years 1998–2003

Apportionment Formula for the Section

5309 Fixed Guideway Modernization

Funding. The FTA Fiscal Years 1999–

2003 Apportionment Formula for the

Section 5308 Clean Fuels Formula

Program is shown on Table 10.

Displayed on Table 11 are the dollar

unit values of data derived from the

computations of the fiscal year 1998

revised Urbanized Area Formula

Apportionment and the Fixed Guideway

Modernization Apportionment.

This Notice is included on the FTA

Home Page and may be accessed at

www.fta.dot.gov.

Issued on: June 18, 1998.

Gordon J. Linton,

Administrator.

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[FR Doc. 98–16698 Filed 6–23–98; 8:45 am]

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