[Federal Register Volume 66, Number 12 (Thursday, January 18, 2001)]
[Notices]
[Pages 4900-4956]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-1082]



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Part II





Department of Transportation





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Federal Transit Administration



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FTA Fiscal Year 2001 Apportionments, Allocations and Program 
Information; Notice

Federal Register / Vol. 66, No. 12 / Thursday, January 18, 2001 / 
Notices

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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration


FTA Fiscal Year 2001 Apportionments, Allocations and Program 
Information

AGENCY: Federal Transit Administration (FTA), DOT.

ACTION: Notice.

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SUMMARY: The Department of Transportation (DOT) and Related Agencies 
Appropriations Act for Fiscal Year 2001 (FY 2001 DOT Appropriations 
Act) (Pub. L. 106-346) was signed into law by President Clinton on 
October 23, 2000, and provides FY 2001 appropriations for the Federal 
Transit Administration (FTA) transit assistance programs. Based upon 
this Act, and the Transportation Equity Act for the 21st Century (TEA-
21), on November 3, 2000, FTA published, on its website, a list of 
apportionments and allocations for transit programs--excluding the FY 
2001 Bus allocations for the Section 5309 Capital Investment Program. 
Publication of the ``FTA Fiscal Year 2001 Apportionments, Allocations 
and Program Information Notice'' in the Federal Register was delayed 
pending the completion of the appropriation process by Congress.
    The FY 2001 Omnibus Consolidated Appropriations Act (Pub. L. 106-
554), which was signed by the President on December 21, 2000, contains 
provisions that impact the level of funding made available to FTA in 
the FY 2001 DOT Appropriations Act and cause the FY 2001 apportionments 
and allocations previously published on the website to change. More 
specifically, the FY 2001 Omnibus Consolidated Appropriations Act 
contain the following provisions relative to FTA programs in this 
fiscal year: (1) Section 1403(a) Government-Wide Rescission, which 
rescinds an amount equal to .22 percent of the discretionary budget 
authority is to be applied to programs, projects, and activities; (2) 
Section 1108, which directs that funding for the Clean Fuels Formula 
Grant program under 49 U.S.C. 5309(m)(3)(C) does not apply to funds 
made available in the FY 2001 DOT Appropriations Act; and (3) Sections 
1105, 1107, and 1123, which appropriate from the Mass Transit Account 
of the Highway Trust Fund, $1,000,000 for Southeast Light Rail 
Extension Project, in Dallas, TX, $3,000,000 for the Newark-Elizabeth 
rail link project in New Jersey, and $500,000 for Alabama A&M 
University buses and bus facilities, respectively.
    This notice includes the apportionment of FY 2001 funds made 
available in the FY 2001 DOT Appropriations Act--adjusted in accordance 
with the applicable provisions of the FY 2001 Omnibus Consolidated 
Appropriations Act--for the: Metropolitan Planning Program and State 
Planning and Research Program; Urbanized Area Formula Program; 
Nonurbanized Area Formula Program; Rural Transit Assistance Program; 
Elderly and Persons with Disabilities Program; and the Capital 
Investment Program for Fixed Guideway Modernization. This notice also 
contains the adjusted allocations for the New Starts and Bus categories 
under the Capital Investment Program and the Job Access and Reverse 
Commute Program. It contains general information about other programs 
established under TEA-21, including the Over-the-Road Bus Accessibility 
Program and the Clean Fuels Formula Program.
    Information regarding TEA-21 funding authorization levels for use 
in developing Metropolitan Transportation Improvement Programs (TIPs) 
and Statewide Transportation Improvement Programs (STIPs) is included. 
For informational purposes, the notice contains the estimated 
apportionment of FY 2001 funds for the Federal Highway Administration 
(FHWA) Metropolitan Planning Program and the estimated apportionment of 
FY 2001 funds for the FHWA State Planning and Research Program.
    Listings of prior year unobligated allocations for the section 5309 
New Starts and Bus Programs are included, as in previous years. In 
addition, the FTA policy regarding pre-award authority to incur project 
costs and the Letter of No Prejudice Policy are provided. Other 
pertinent program information is also included.

FOR FURTHER INFORMATION CONTACT: The appropriate FTA Regional 
Administrator for grant-specific information and issues; Patricia 
Levine, Director, Office of Resource Management and State Programs, 
(202) 366-2053, for general information about the Urbanized Area 
Formula Program, the Nonurbanized Area Formula Program, the Rural 
Transit Assistance Program, the Elderly and Persons with Disabilities 
Program, the Clean Fuels Formula Program, the Over-the-Road Bus 
Accessibility Program, or the Capital Investment Program; or Paul L. 
Verchinski, Chief, Statewide and Intermodal Planning Division, (202) 
366-1626, for general information concerning the Metropolitan Planning 
Program and the State Planning and Research Program; or Dr. Lewis P. 
Clopton, Director, Office of Research Management, (202)366-9157, for 
information about the Job Access and Reverse Commute Program.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Background
II. Overview
    A. Fiscal Year 2001 Appropriations
    B. TEA-21 Authorized Program Levels
    C. Project Management Oversight
    D. 2002 Winter Olympic Games
III. Fiscal Year 2001 Focus Areas
    A. Urbanized Area Formula Study
    B. National Transit Database Redesign
    C. New Starts Roundtable
    D. Intelligent Transportation Systems
IV. Section 5303 Metropolitan Planning Program and Section 5313(b) 
State Planning and Research Program
    A. Metropolitan Planning Program
    B. State Planning and Research Program
    C. Data Used for Metropolitan Planning and State Planning and 
Research Apportionments
    D. FHWA Metropolitan Planning Program and State Planning and 
Research Program
    E. Local Match Waiver for Specified Planning Activities
    F. Planning Emphasis Areas for Fiscal Year 2001
    G. Federal Planning Certification Reviews
    H. Consolidated Planning Grants
    I. New Starts Approval to Enter Preliminary Engineering and 
Final Design
V. Section 5307 Urbanized Area Formula Program
    A. Total Urbanized Area Formula Apportionments
    B. Fiscal Year 2000 Apportionment Adjustments
    C. Data Used for Urbanized Area Formula Apportionments
    D. Urbanized Area Formula Apportionments to Governors
    E. Transit Enhancements
    F. Fiscal Year 2001 Operating Assistance
    G. Unobligated Funds for Operating Assistance
    H. Designated Transportation Management Areas
    I. Urbanized Area Formula Funds Used for Highway Purposes
    J. National Transit Database Internet Reporting
VI. Section 5311  Nonurbanized Area Formula Program and Section 
5311(b) Rural Transit Assistance Program (RTAP)
    A. Nonurbanized Area Formula Program
    B. Rural Transit Assistance Program (RTAP)
VII. Section 5310 Elderly and Persons With Disabilities Program
VIII. FHWA Surface Transportation Program and Congestion Mitigation 
and Air Quality Funds Used for Transit Purposes (Title 23, U.S.C.)
    A. Transfer Process
    B. Matching Share for FHWA Transfers
IX. Section 5309 CapitaL Investment Program
    A. Fixed Guideway Modernization
    B. New Starts
    C. Bus

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X. Job Access and Reverse Commute Program--Section 3037 oF TEA-21
XI. Over-The-Road Bus Accessibility Program--Section 3038 of TEA-21
XII. Section 5308 Clean Fuels Formula Program
XIII. Unit Values of Data for Section 5307 Urbanized Area Formula 
Program, Section 5311 Nonurbanized Area Formula Program, and Section 
5309 Fixed Guideway Modernization Program
XIV. Period of Availability of Funds
XV. Automatic Pre-Award Authority to Incur Project Costs
    A. Policy
    B. Conditions
    C. Environmental, Planning, and Other Federal Requirements
    D. Pre-award Authority for New Starts Projects Approved for 
Preliminary Engineering and/or Final Design
XVI. Letter of No Prejudice Policy (Prior Approval of Pre-Award 
Authority)
    A. Policy
    B. Conditions
    C. Environmental, Planning, and Other Federal Requirements
    D. Request for LONP
XVII. FTA Homepage on the Internet
XVIII. FTA Fiscal Year 2001 Annual List of Certifications and 
Assurances
XIX. Grant Application Procedures Tables
    1. FTA Revised FY 2001 Appropriations for Grant Programs
    2. FTA Revised FY 2001 Section 5303 Metropolitan Planning 
Program and Section 5313(b) State Planning and Research Program 
Apportionments
    3. FHWA FY 2001 Estimated Metropolitan Planning (PL) Program and 
Estimated State Planning and Research Program (SPRP) Apportionments
    4. FTA Revised FY 2001 Section 5307 Urbanized Area Formula 
Apportionments
    5. FTA Revised FY 2001 Section 5311 Nonurbanized Area Formula 
Apportionments, and Section 5311(b) Rural Transit Assistance Program 
(RTAP) Allocations
    6. FTA Revised FY 2001 Section 5310 Elderly and Persons With 
Disabilities Apportionments
    7. FTA Revised FY 2001 Section 5309 Fixed Guideway Modernization 
Apportionments
    8. FTA Revised FY 2001 Section 5309 New Starts Allocations
    8A. FTA Prior Year Unobligated Section 5309 New Starts 
Allocations
    9. FTA FY 2001 Section 5309 Bus Allocations
    9A. FTA Prior Year Unobligated Section 5309 Bus Allocations
    10. FTA Revised FY 2001 Job Access and Reverse Commute Program 
Allocations
    11. FTA TEA-21 Authorization Levels (Guaranteed Funding Only)
    11A. FTA TEA-21 Authorization Levels (Guaranteed and Non-
Guaranteed Funding)
    12. FTA FY 2001 Apportionment Formula for Section 5307 Urbanized 
Area Formula Program
    13. FTA FY 1998-2003 Section 5309 Fixed Guideway Modernization 
Program Apportionment Formula
    14. FTA Revised FY 2001 Formula Grant Apportionments Unit Values 
of Data

I. Background

    Metropolitan Planning funds are apportioned by statutory formula to 
the Governors for allocation to Metropolitan Planning Organizations 
(MPOs) in urbanized areas or portions thereof to provide funds for 
their Unified Planning Work Programs. State Planning and Research funds 
are apportioned to states by statutory formula to provide funds for 
their State Planning and Research Programs. Urbanized Area Formula 
Program funds are apportioned by statutory formula to urbanized areas 
and to Governors to provide capital, operating and planning assistance 
in urbanized areas. Nonurbanized Area Formula Program funds are 
apportioned by statutory formula to Governors for capital, operating 
and administrative assistance in nonurbanized areas. Elderly and 
Persons with Disabilities Program funds are apportioned by statutory 
formula to Governors to provide capital assistance to organizations 
providing transportation service for the elderly and persons with 
disabilities. Fixed Guideway Modernization funds are apportioned by 
statutory formula to specified urbanized areas for capital improvements 
in rail and other fixed guideways. New Starts and Bus allocations 
identified in the FY 2001 DOT Appropriations Act or the Conference 
Report accompanying the FY 2001 DOT Appropriations Act are included in 
this notice. FTA will honor those allocations included in report 
language provided that the projects meet the statutory intent of the 
specific program.

II. Overview

A. Fiscal Year 2001 Appropriations

    The FY 2001 DOT Appropriations Act made $6,271,000,000 available 
for FTA programs, which is the guaranteed funding level under TEA-21. 
After the .22 percent reduction for the government-wide rescission and 
addition of new funding (as directed in the FY 2001 Omnibus 
Consolidated Appropriations Act), and transfer of funds to the Office 
of the Inspector General (OIG) as directed in the FY 2001 DOT 
Appropriations Act, FTA's FY 2001 appropriation is $6,260,696,100. The 
revised/adjusted FY 2001 funding amounts for FTA programs are displayed 
in Table 1.
    The following text provides a narrative explanation of the funding 
levels and other factors affecting the apportionments and allocations.

B. TEA-21 Authorized Program Levels

    TEA-21 provides a combination of trust and general fund 
authorizations that total $7,274,000,000 for the FY 2001 FTA program. 
Of this amount, $6,271,000,000 was guaranteed under the discretionary 
spending cap and made available in the FY 2001 DOT Appropriations Act. 
Adjustments directed by the FY 2001 Omnibus Consolidated Appropriations 
Act reduce funding for FTA programs to $6,260,696,100 for FY 2001. See 
Table 11 for fiscal years 1998-2003 guaranteed funding levels by 
program and Table 11A for the total of guaranteed and non-guaranteed 
levels by program.
    Information regarding estimates of the funding levels for 1999-2003 
by state and urbanized area is available on the FTA website. The 
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.

C. Project Management Oversight

    Section 5327 of Title 49 U.S.C. allows the Secretary of 
Transportation to use not more than one-half percent of the funds made 
available under the Urbanized Area Formula Program and the Nonurbanized 
Area Formula Program, and three-quarters percent of funds made 
available under the Capital Investment Program to contract with any 
person to oversee the construction of any major project under these 
statutory programs to conduct safety, procurement, management and 
financial reviews and audits, and to provide technical assistance to 
correct deficiencies identified in compliance reviews and audits. 
Therefore, one-half percent of the funds appropriated for the Urbanized 
Area Formula Program and the Nonurbanized Area Formula Program for FY 
2001, and three-quarters percent of Capital Investment Program funds 
were reserved for these purposes before funds were apportioned.

D. 2002 Winter Olympic Games

    The FY 2001 DOT Appropriations Act made $60,000,000 available from 
the formula grants program for the 2002 Winter Olympic Games. After 
applying a .22 percent reduction, in accordance with the government-
wide rescission required by the FY 2001 Omnibus Consolidated 
Appropriations Act, $59,868,000 is available for this activity. The 
funds shall be available for grants for the costs of planning, delivery 
and temporary use of transit vehicles for special transportation needs 
and

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construction of temporary transportation facilities for the XIX Winter 
Olympiad and the VIII Paralympiad for the Disabled, to be held in Salt 
Lake City, Utah.

III. Fiscal Year 2001 Focus Areas

A. Urbanized Area Formula Study

    Section 3033 of TEA-21 requires the Secretary of Transportation to 
conduct a study of FTA's Urbanized Area Formula Program (49 U.S.C. 
5307) and the needs of small urbanized areas with unusually high levels 
of transit service. On September 29, 2000, the Secretary of 
Transportation approved ``The Urbanized Area Formula Program and the 
Needs for Small Intensive Cities'', which reports the result of the 
study. The report concludes that sufficient issues exist suggesting 
that changes to the existing Urbanized Area Formula Grants Program 
should be considered as part of the FY 2004 and beyond reauthorization 
cycle. However, the formula apportionments should continue to reflect 
underlying transit needs. For further information contact Richard 
Steinmann, FTA Office of Policy Development, at (202) 366-4050.

B. National Transit Database Redesign

    There have been major changes in federal reporting requirements 
affecting FTA. Most notable among these is prompt reporting of certain 
National Transit Database (NTD) data under the Government Performance 
and Results Act, and an increase in the level of detail. In addition, 
FTA must respond to congressional direction for new safety data 
reporting. These factors, along with other significant considerations 
and concerns, served as the impetus to redesign the NTD.
    In the Spring of 2000, FTA conducted an outreach effort to the 
transit industry and then prepared a report to Congress entitled, 
``Review of the National Transit Database'' (May 31, 2000), which 
evaluates the NTD reporting system. The report suggests a number of 
changes that will enhance the usefulness of the NTD while minimizing 
reporting burden. The report is available on the FTA website.
    Presently, FTA is in the process of redesigning the data 
requirements of the NTD, which is expected to be completed by the 
Spring of 2001. System reprogramming and database testing will precede 
final implementation, which will take place during the Spring of 2002.

C. New Starts Roundtable

    In FY 2000, FTA sponsored a series of New Starts Roundtable (NSR) 
meetings. The purpose of the NSR is to facilitate continued dialogue 
and information sharing between FTA and local sponsors of projects 
pursuing Capital Investment Program (section 5309) New Starts funding. 
This includes projects currently in FTA's New Starts pipeline or a 
study that may result in the selection of a major fixed guideway 
transit investment in the near future.
    The NSR provides a forum for FTA and the New Starts community to 
jointly explore and address issues related to the New Starts planning, 
project development, and evaluation processes. The NSR Steering 
Committee, a partnership whose membership is comprised of the FTA 
Administrator, FTA staff and representatives from local transit 
agencies is responsible for outlining the strategy, developing topic 
areas and agendas and selecting sites and setting schedules for NSR 
meetings, in addition to implementing the NSR workplan activities.
    The targeted participants for NSR meetings include planning 
directors or project/study managers who can share their views of the 
New Starts criteria and project development process. In FY 2000, two 
roundtable meetings were held: July 27th-28th, in Washington, DC; and 
August 2nd-3rd, in Las Vegas, NV. FTA is in the process of organizing 
NSR meetings for FY 2001. For additional information regarding this 
initiative, contact David Vozzolo or Tonya Holland, FTA Office of 
Planning Innovation and Analysis, at (202) 366-4033.

D. Intelligent Transportation Systems (ITS)

    Section 5206(e) of TEA-21 requires that Intelligent Transportation 
Systems (ITS) projects using funds from the Highway Trust Fund 
(including the Mass Transit Account) conform to National ITS 
Architecture and Standards. Interim guidance on conformity with 
National ITS Performance Standards was issued October 2, 1998, jointly 
by FTA and FHWA. This document provides guidance for meeting this 
provision of TEA-21 and is available from FTA regional offices and on 
the FTA website. These standards and requirements apply to FY 2001 
allocations included in this notice that contain ITS components. Using 
existing FTA oversight procedures, FTA has initiated a program to 
provide initial oversight and technical assistance with respect to 
National ITS Architecture Consistency requirements.
    Questions regarding the applicability of these standards and 
requirements should be addressed to the FTA Regional Office or Ronald 
Boenau, FTA Office of Research, Demonstration and Innovation, at (202) 
366-0195.

IV. Section 5303 Metropolitan Planning Program and Section 5313(b) 
State Planning and Research Program

A. Metropolitan Planning Program

    Funding made available for the Metropolitan Planning Program in the 
FY 2001 DOT Appropriations Act was $52,113,600--the guaranteed funding 
level under TEA-21. This amount has been reduced to $51,998,950 after 
application of the .22 percent reduction for the government-wide 
rescission required by the FY 2001 Omnibus Consolidated Appropriations 
Act.
    The FY 2001 Metropolitan Planning Program apportionment to states 
for MPOs' use in urbanized areas totals $52,278,930. This amount 
includes $51,998,950 in FY 2001 funds, and $279,980 in prior year 
deobligated funds available for reapportionment under this program. A 
basic allocation of 80 percent of this amount ($41,423,144) is 
distributed to the states based on the state's urbanized area 
population as defined by the U.S. Census Bureau for subsequent state 
distribution to each urbanized area, or parts thereof, within each 
state. A supplemental allocation of the remaining 20 percent 
($10,455,786) is also provided to the states based on an FTA 
administrative formula to address planning needs in the larger, more 
complex urbanized areas. Table 2 contains the final state 
apportionments for the combined basic and supplemental allocations. 
Each state, in cooperation with the MPOs, must develop an allocation 
formula for the combined apportionment, which distributes these funds 
to MPOs representing urbanized areas, or parts thereof, within the 
state. This formula, which must be approved by the FTA, must ensure to 
the maximum extent practicable that no MPO is allocated less than the 
amount it received by administrative formula under the Metropolitan 
Planning Program in FY 1991 (minimum MPO allocation). Each state 
formula must include a provision for the minimum MPO allocation. Where 
the state and MPOs desire to use a new formula not previously approved 
by FTA, it must be submitted to the appropriate FTA Regional Office for 
prior approval.
    In FY 2001, the results of the 2000 Census will be made available 
and the Census Bureau will designate new urbanized areas. Since the 
statutory formula for distribution of the Metropolitan Planning Program 
utilizes the latest available decennial census,

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FTA anticipates use of the 2000 Census for FY 2002 funding 
apportionments. This will affect each state's apportionment. In 
addition, each state has an FTA approved in-state allocation formula to 
each urbanized area. States will be free to continue using their 
existing in-state formula distribution. When the Census Bureau issues 
its population data, FTA will request a state reaffirmation of these 
in-state formulas since most were last approved in FY 1992. A 
reaffirmation or new in-state formula should be submitted to the FTA 
Regional Office for approval prior to October 1, 2001 so that the 
funding distributions are effective in FY 2002.
    Currently, guaranteed and authorized funding levels for each state 
over the life of TEA-21 (fiscal years 1999-2003) based on the 1990 
Census, are posted at [http://www.fta.dot.gov/office/planning/gaf.htm]. 
By June 2001, FTA will post revised fiscal year 2002 and 2003 
guaranteed and authorized funding levels based on the 2000 census for 
each state at this same website address. This information should be 
utilized by each state when reaffirming or revising in-state formulas.

B. State Planning and Research Program

    Funding made available for the State Planning and Research Program 
in the FY 2001 DOT Appropriations Act was $10,886,400, the guaranteed 
funding level under TEA-21. This amount has been reduced to 
$10,862,450, after applying the .22 percent reduction for the 
government-wide rescission required by the FY 2001 Omnibus Consolidated 
Appropriations Act.
    The FY 2001 apportionment for the State Planning and Research 
Program (SPRP) totals $10,938,770. This amount includes $10,862,450 in 
FY 2001 funds, and $76,320 in prior year deobligated funds, which have 
become available for reapportionment under this program. Final state 
apportionments for this program are also contained in Table 2. These 
funds may be used for a variety of purposes such as planning, technical 
studies and assistance, demonstrations, management training, and 
cooperative research. In addition, a state may authorize a portion of 
these funds to be used to supplement metropolitan planning funds 
allocated by the state to its urbanized areas, as the state deems 
appropriate.

C. Data Used for Metropolitan Planning and State Planning and Research 
Apportionments

    Population data from the 1990 Census is used in calculating these 
apportionments. The Metropolitan Planning funding provided to urbanized 
areas in each state by administrative formula in FY 1991 was used as a 
``hold harmless'' base in calculating funding to each State.

D. FHWA Metropolitan Planning Program and State Planning and Research 
Program

    For informational purposes, the estimated FY 2001 apportionments 
for the FHWA Metropolitan Planning Program (PL) and estimated 
apportionments for FY 2001 State Planning and Research Program (SPRP) 
are contained in Table 3. These estimates include expected SPRP funding 
increases from the Revenue Budget Aligned Authority authorized in TEA-
21, Section 1105. The amounts are as originally provided by FHWA and 
may be adjusted by that agency to incorporate the .22 percent reduction 
required by the FY 2001 Omnibus Consolidated Appropriations Act.

E. Local Match Waiver for Specified Planning Activities

    Job Access Planning. Federal, state and local welfare reform 
initiatives may require the development of new and innovative public 
and other transportation services to ensure that former welfare 
recipients have adequate mobility for reaching employment 
opportunities. In recognition of the key role that transportation plays 
in ensuring the success of welfare-to-work initiatives, FTA and FHWA 
permit the waiver of the local match requirement for job access 
planning activities undertaken with Metropolitan Planning Program and 
State Planning and Research Program funds. FTA and FHWA will support 
requests for waivers when they are included in Metropolitan Unified 
Planning Work Programs and State Planning and Research Programs and 
meet all other appropriate requirements.

F. Planning Emphasis Areas for Fiscal Year 2001

    The FTA and FHWA identify Planning Emphasis Areas (PEAs) annually 
to promote priority themes for consideration, as appropriate, in 
metropolitan and statewide transportation planning processes. 
Identification of PEAs calls attention to a national policy emphasis on 
the themes and priorities within FTA and FHWA for enhanced inventory of 
current practice, guidance and training in those areas. The FTA and 
FHWA are committed to providing opportunities to the planning community 
to exchange ideas and experiences on innovative practice in these topic 
areas throughout the year. Furthermore, this information will 
constitute an important component of guidance for implementing the 
planning and environmental provisions of TEA-21.
    To that end, FTA and FHWA intend to periodically develop 
information that will be made available through publications, on the 
FTA and FHWA websites, and through other means. As opportunities become 
available, this information also will be promoted for inclusion on the 
agendas of regional and national conferences held during the year. To 
support these efforts, FTA and FHWA encourage planning organizations to 
expand their work activities on these topics through their planning 
work activities, as set forth in Unified Planning Work Programs (UPWPs) 
and State Planning and Research Programs. This will be the resource 
base and means by which innovative and effective practices can be 
identified and reported back to the planning community.
    For FY 2001, five key planning themes have been identified as PEAs: 
(1) Mainstreaming safety in the transportation planning and decision-
making process; (2) incorporation of environmental streamlining as a 
policy and planning analysis theme within planning processes; (3) 
transportation system management and operations; (4) demonstrated 
compliance with Title VI of the Civil Rights Act and accommodation of 
the principles of environmental justice; and (5) coordination of non-
emergency transportation services.
    (1) Safety in Transportation. TEA-21 emphasizes the safety of 
transportation systems as a national priority and calls for 
transportation plans and strategies that ``increase the safety and 
security of transportation systems.'' The DOT Strategic Plan identifies 
safety as the highest priority and includes a goal to ``promote the 
public health and safety by working toward the elimination of 
transportation-related deaths, injuries and property damage.''
    The DOT short-term objective is to integrate safety considerations 
into all stages of the transportation planning process, including 
identification of activities to be considered during the development of 
UPWPs and SPRPs. States and MPOs are encouraged to consider both long 
and short-term strategies for inclusion in their plans and 
transportation improvement programs (TIPs).
    FTA and FHWA are working together to advance the state-of-practice 
in addressing safety in the metropolitan and statewide planning 
process. In May 2000, FTA and FHWA hosted a meeting along with the 
Transportation Research

[[Page 4904]]

Board (TRB) of safety professionals and planners to address safety in 
the metropolitan planning process. From that meeting, a TRB report 
describing the issues and recommendations identified at the meeting 
will be produced, and is expected to be available on the TRB website in 
the Fall of 2000 at [http://www.nas.edu/trb]. Participants in the TRB 
meeting summarized the following strategies for addressing safety in 
planning processes:
    <bullet> Establish a foundation for safety in planning;
    <bullet> Improve access to safety data and encourage its use;
    <bullet> Address safety in the consideration of alternative mode 
choice options;
    <bullet> Explicitly address safety in federal and state regulatory 
policy; and
    <bullet> Market and advocate safety through ``champions'' to user 
groups.
    These suggested strategies are just a beginning. FTA and FHWA are 
also working to document good practice and develop guidance in the area 
of safety planning that will be a tool for both states and MPOs in 
addressing safety in their planning processes. Through good practice 
and guidance, MPOs can begin to identify methods to integrate safety 
within the planning process. These methods may include:
    <bullet> Providing an umbrella for the coordination of 
transportation safety activities among various levels of government, 
the private sector and other specialized transportation safety groups;
    <bullet> Enhancing the knowledge of local officials and the public 
on traffic safety; and
    <bullet> Developing assessment tools for safety based upon existing 
problems and how proposed projects will decrease problems in a regional 
context.
    (2) Environmental Streamlining. TEA-21 reflects the concerns of 
Congress and the transportation community that the planning and project 
development processes are requiring too much time before solutions to 
serious transportation problems are ready for implementation. TEA-21 
mandated the elimination of the Major Investment Study as a stand-alone 
requirement and the streamlining of the process for complying with the 
National Environmental Policy Act (NEPA) and other environmental 
statutes and regulations. Developing and guiding projects through the 
planning and review processes faster, without compromising 
environmental safeguards, is a complex undertaking for which there is 
no easy solution.
    FHWA and FTA have engaged the federal environmental and permitting 
agencies in a dialogue on ways to improve the planning and NEPA 
processes. This dialogue has produced a national Memorandum of 
Understanding (MOU) on environmental streamlining among the federal 
agencies, which formalizes their commitment to streamline the 
environmental review process for federally-funded highway and transit 
projects, while fulfilling their responsibilities to protect the 
environment. The MOU calls for early consideration of environmental and 
community issues during the planning process in consultation with 
federal and state environmental resource agencies. FHWA followed up on 
the national MOU by convening regional summits on environmental 
streamlining. These summits have resulted in a number of regional and 
statewide MOUs that address more specific linkage between planning and 
project development. These documents are generally available in the 
environmental streamlining ``tool kit'' that has been posted on the 
FHWA website at [http://www.fhwa.dot.gov/environment/strmlng.htm].
    FTA and FHWA are establishing environmental streamlining as a PEA 
to encourage greater effort, innovative approaches, and a national 
dialogue on using the planning process to advance this objective. 
Examples of the kinds of innovative planning concepts that might serve 
to streamline the environmental process under the appropriate 
conditions include the introduction and use of new technologies such as 
Geographic Information Systems to study regional environmental issues 
in support of programmatic approvals, or closer coordination of 
transportation planning with other planning efforts such as land use 
planning, air quality planning, or watershed management and associated 
mitigation banking. Additional streamlining concepts are being explored 
in a number of states such as Florida, Oregon, and California through 
pilot projects or pilot programs specifically identified by the State 
DOTs, MPOs, and transit agencies for this purpose. An expert panel 
established through the National Cooperative Highway Research Program 
is monitoring, analyzing, and reporting on the status of the pilot 
streamlining effort around the country. The results will be added to 
the streamlining tool kit on the FHWA website mentioned above.
    As part of this PEA, FHWA and FTA are seeking not only to 
demonstrate that earlier consideration of environmental issues during 
planning makes sense, but also actually to quantify, to the extent 
possible, the time savings and environmental benefits that result. To 
that end, a preliminary baseline assessment of processing times has 
been completed and a more detailed assessment is underway. As 
additional data becomes available, it too will be posted on the FHWA 
streamlining website.
    (3) Transportation System Management and Operations. TEA-21 
challenges the FHWA and FTA to move beyond traditional infrastructure-
based approaches to improve the movement of people and goods. TEA-21 
emphasizes a greater need to improve the way transportation systems are 
managed and operated. The challenge, in terms of transportation 
planning, is not only to make a good investment in infrastructure, but 
also to see that this investment is managed and operated to meet a 
broad range of customer needs. The FHWA and FTA are establishing 
management and operations as a PEA to encourage innovation, promote a 
national dialogue, and advance the state of the practice.
    FTA and FHWA recognize that future transportation planning must 
look beyond the perception that management and operation strategies 
merely reduce congestion problems or move vehicles faster. The FHWA and 
FTA are convening a working group to develop recommendations to better 
integrate transportation operations and planning to address a broad 
array of transportation issues.
    Information is available at website address [http://plan2op.fhwa.dot.gov] to guide and inform transportation planners on 
effective ways to consider management and operations investments, 
programs and actions in planning contexts. It provides a document 
library that may be searched for recent documents that deal with this 
subject and also presents a forum for the exchange of experiences.
    (4) Transportation Equity and Public Involvement. Increasingly, 
concerns for compliance with provisions of Title VI of the Civil Rights 
Act have been raised by citizens and advocacy groups with regard to 
broad patterns of transportation investment and impact considered in 
metropolitan and statewide planning. While Title VI and environmental 
justice concerns have most often been raised during project 
development, it is important to recognize that the law applies equally 
to the processes and products of metropolitan and statewide planning. 
Public involvement is a major element of this process.
    FTA and FHWA are working jointly to develop guidance to support 
metropolitan areas and states in their efforts to incorporate 
considerations of transportation equity in their local

[[Page 4905]]

planning processes and substantiate Title VI compliance through 
demonstrated actions. Several releases of resource materials have taken 
place over the past year, including:
    <bullet> ``Title VI Environmental Justice Planning Technical 
Assistance Manual'' with accompanying implementation training;
    <bullet> brochure and fact sheet to facilitate a better 
understanding of Title VI/Environmental Justice considerations in 
transportation activities; and
    <bullet> creation of an informational website which can be accessed 
at [http://www.fhwa.dot.gov/environment/ej2.htm].
    Case studies and effective practice materials are being prepared 
for wide distribution, and a companion training and education package 
is being designed. These will be completed by the end of 2000.
    States and Metropolitan Planning Organizations (MPOs) are advised 
to strengthen their planning processes in this area and to document 
their effort in two categories of work activity:
    (a) Strengthen the focus of public involvement efforts, with 
special attempts to include the traditionally under-served and under-
represented in the planning process; and
    (b) assessing the distribution of benefits and adverse 
environmental impacts at both the plan and project levels.
    Over the fiscal year, a range of possible procedural and analytical 
approaches for complying with provisions of Title VI and the Executive 
Order on Environmental Justice at the planning stage will be developed 
and disseminated through guidance and regulation. To support that 
effort, ``innovative practice'' case study development and training 
opportunities will be enhanced, based in part on the reported 
activities and experiences of metropolitan and statewide planning 
processes in this area.
    (1) Coordination of Non-Emergency Transportation Services. 
Experience and research have shown that coordinating program resources 
for transportation services can lead to increased service availability 
and more cost-effective transportation services to persons with limited 
access and special needs. The DOT and the U.S. Department of Health and 
Human Services (HHS) recognize that there are over 70 federal programs 
in which some aspect of transportation services is an allowable use of 
funds. The Departments are jointly developing a coordination resource, 
the Transportation Coordination Toolkit, to assist states and 
communities in their efforts to improve access to transportation 
services for persons with special mobility needs.
    The initial piece in the Transportation Coordination Toolkit is a 
guide to coordinating transportation planning for DOT and HHS. It 
addresses the information and actions necessary to coordinate the 
transportation resources of various programs of DOT and HHS. Additional 
pieces will include case studies, a compilation of federal-funding 
sources, and a program resource guide. Additional information on these 
can be found on the website for the Coordinating Council on Access and 
Mobility at [http://www.ccamweb.org].

G. Federal Planning Certification Reviews

    The Intermodal Surface Transportation Efficiency Act (ISTEA) 
required FTA and FHWA to certify, at least every three years, that the 
planning processes conducted in the largest metropolitan areas were 
being carried out in compliance with applicable provisions of federal 
law. This provision applies specifically to localities termed 
``Transportation Management Areas'' (TMA), which are urbanized areas 
with populations of 200,000 and above, or other urbanized areas that 
may be designated by the Secretary of Transportation. TEA-21 further 
required that, in conducting these certification reviews, provisions be 
made for public involvement appropriate to the metropolitan area under 
review.
    To that end, an annual calendar of prospective dates and locations 
for certification reviews of TMAs anticipated in FY 2001 has been 
prepared and is posted on the FTA website at [http://www.fta.dot.gov/library/planning/cert2001.htm].
    For further information regarding federal certifications of the 
planning process contact: for FTA, Charles Goodman, FTA Metropolitan 
Planning Division, (202) 366-1944, or Scott Biehl, FTA Office of Chief 
Counsel, (202) 366-4063; for FHWA, Sheldon Edner, FHWA Metropolitan 
Planning Division, (202) 366-4066, or Reid Alsop, FHWA Office of the 
Chief Counsel, (202) 366-1371.

H. Consolidated Planning Grants

    In FY 1997, FTA and FHWA began offering states the option of 
participating in a pilot Consolidated Planning Grant (CPG) program. FTA 
and FHWA have now made CPG a permanent pilot. As part of the permanent 
pilot, additional state participants are sought so that FTA and FHWA 
can benefit from the widest possible range of participant input to 
improve and further streamline the process.
    Since the first CPG grant was awarded in April 1997, almost $228 
million has been obligated by the pilot states. Of this total, more 
than $180 million is from FHWA sources. Of the 11 pilot participants, 
three have used annual grants only; three have a mixture of grant time 
lengths, starting with annual and switching to multi-year grants or 
vice versa; and five have used only multi-year grants with the grant 
period ranging up to three years so far. Under the multi-year approach 
option, the CPG grant would remain open for a period of years to be 
determined by the state (and MPO, jointly, for Metropolitan Planning 
funds) with the approval of the federal government. New apportionments 
can be added by grant amendment, as funds become available. The annual 
approach treats the CPG much as FHWA funds are treated currently, that 
is, as basically annual apportionments with a yearly close-out of 
project activities and a deobligation and reobligation cycle. Those 
with the multi-year grants can close them at any time and begin the 
next year with either a new multi-year grant or an annual grant. The 
ease with which a state can opt for the single year or the multi-year 
approach to the CPG grant is just one example of the flexibility 
intended for the pilot.
    Under the CPG, states can report metropolitan planning expenditures 
(to comply with the Single Audit Act) for both FTA and FHWA under the 
Catalogue of Federal Domestic Assistance number for FTA's Metropolitan 
Planning Program. Additionally, for states with an FHWA Metropolitan 
Planning (PL) fund matching ratio greater than 80 percent, the state 
(through FTA) can request a waiver of the 20 percent local share 
requirement in order that all FTA funds used for metropolitan planning 
in a CPG can be granted at the higher FHWA rate. For some states, this 
federal match rate can exceed 90 percent. Currently, two western states 
participating in the pilot are using the FHWA PL match rate.
    Pre-award authority has been granted to FTA's planning programs for 
the life of TEA-21 (through FY 2003). This pre-award authority enables 
states to continue planning program activities from year to year with 
the assurance that eligible costs can later be converted to a regularly 
funded federal project without the need for prior approval or 
authorization from the granting agency. Beginning in FY 2000, the 
transfer procedures established to implement the transfer provision in 
TEA-21 (section 1103(i) ``Transfer of Highway and Transit Funds'') is 
applicable to

[[Page 4906]]

FHWA funds used in CPG. For planning projects funded through CPG, the 
state DOT requests the transfer of funds in a letter to the FHWA 
Division Office. The FHWA-funded planning activities must be in 
accordance with the state's or MPO's Planning Work Program. The letter 
must be signed by the appropriate state official or their designee and 
must specify the state and the amount of funding to be transferred for 
the CPG by apportionment category (e.g. STP, CMAQ, Donor State Bonus, 
Funding Restoration, etc.) and by appropriation year. The letter should 
include only the funding for planning activities contained in the 
state's or MPO's Planning Work Program. If no FTA program, either 
Metropolitan Planning (49 U.S.C. 5303) or Statewide Planning and 
Research (49 U.S.C. 5313(b)), is indicated for transfers to CPG, funds 
will be credited to the Metropolitan Planning Program.
    As part of the pilot, FTA will continue to work with participating 
states to increase the flexibility and further streamline the 
consolidated approach to planning grants. For further information on 
participating in the CPG Pilot, contact Candace Noonan, Intermodal and 
Statewide Planning Division, FTA, at (202) 366-1648 or Anthony Solury, 
Office of Planning and Environment, FHWA, at (202) 366-5003.

I. New Starts Approval To Enter Preliminary Engineering and Final 
Design

    TEA-21 extends FTA's long-standing authority for approving the 
advancement of candidate New Starts projects into preliminary 
engineering (PE) by requiring that FTA also approve entrance into the 
final design (FD) stage of project development. Specifically, 49 U.S.C. 
5309(e)(6) requires that the basis for PE/FD approval is FTA's 
evaluation of candidate project's New Starts criteria, leading to an 
overall project rating of ``Highly Recommended,'' ``Recommended,'' or 
``Not Recommended.'' FTA has established a set of decision rules for 
approving entrance into preliminary engineering and final design. After 
first meeting several basic planning, environmental, and project 
management requirements which demonstrate the ``readiness'' of the 
project to advance into the next stage of project development, 
candidate projects are subject to FTA evaluation against the New Starts 
project justification and local financial commitment criteria. Projects 
may advance to the next appropriate stage of project development (PE or 
FD) only if rated ``Recommended'' or ``Highly Recommended,'' based on 
the criteria. Projects rated ``Not Recommended'' will not be approved 
to advance.
    Section 5309(e)(8)(A) of Title 49 U.S.C. exempts projects which 
request a section 5309 New Starts share of less than $25 million from 
the requirements of section 5309(e). TEA-21 also provides statutory 
exemptions to certain specific projects. It is important to note that 
any exemption under section 5309(e)(8)(A) applies only to the New 
Starts criteria serving as the basis for FTA's approval to advance to 
preliminary engineering and final design for such projects. New Starts 
projects with less than $25 million in New Starts funding must still 
request entrance to the next stage of development, and must fulfill all 
appropriate planning, environmental, and project management 
requirements.
    Aside from the formal evaluation and rating of (non-exempt) New 
Starts projects, the general process for approving entrance into PE and 
FD is largely consistent with FTA's prior procedures for approving 
entrance into preliminary engineering. FTA issued guidance for 
evaluating and approving local agency requests for advancing projects 
in the New Starts project development process in FY 2000. Another 
revision is planned for 2001.

V. Section 5307 Urbanized Area Formula Program

A. Total Urbanized Area Formula Apportionments

    The amount made available to the Urbanized Area Formula Program in 
the FY 2001 DOT Appropriations Act was $2,942,578,081. After the .22 
percent reduction for the government-wide rescission required by the FY 
2001 Omnibus Consolidated Appropriations Act and transfer of $1,000,000 
to the OIG, $2,935,106,609 is available.
    In addition to the $2,935,106,609 available in FY 2001 funds, the 
apportionment includes $4,735,805 in deobligated funds, which became 
available for reapportionment under the Urbanized Area Formula Program 
as provided by 49 U.S.C. 5336(i).
    Table 4 displays the amount apportioned for the Urbanized Area 
Formula Program. After reserving ($13,682,722) for oversight, the 
amount of FY 2001 funds available for apportionment is $2,921,423,887. 
The funds to be reapportioned, described in the previous paragraph, are 
then added and increase the total amount apportioned for this program 
to $2,926,159,692.
    An additional $4,839,280 is made available for the Alaska Railroad 
for improvements to its passenger operations, after the .22 percent 
reduction required by the FY 2001 Omnibus Consolidated Appropriations 
Act. After reserving ($24,196) for oversight, $4,815,084 is available 
for the Alaska Railroad.
    Table 12 contains the FY 2001 apportionment formula for the Section 
5307 Urbanized Area Formula Program.

B. Fiscal Year 2000 Apportionment Adjustments

    An adjustment has been made to the apportionment for one urbanized 
area because of corrections to data that were used to compute the FY 
2000 formula grant apportionment published in the Federal Register of 
October 28, 1999 (64 FR 58212). The difference between the corrected 
apportionment and the previously published apportionment has been 
resolved and the necessary adjustment has been made to the area's 
apportionment for FY 2001. The dollar amounts published in this notice 
contain the adjustment, and the affected urbanized area has been 
advised.

C. Data Used for Urbanized Area Formula Apportionments

    Data from the 1999 NTD (49 U.S.C. 5335) Report Year submitted in 
late 1999 and early 2000 have been used to calculate the FY 2001 
Urbanized Area Formula apportionments for urbanized areas 200,000 in 
population and over. The population and population density figures used 
in calculating the Urbanized Area Formula are from the 1990 Census.

D. Urbanized Area Formula Apportionments to Governors

    The total Urbanized Area Formula apportionment to the Governor for 
use in areas under 200,000 in population for each state is shown in 
Table 4. This table also contains the total apportionment amount 
attributable to each of the urbanized areas within the state. The 
Governor may determine the allocation of funds among the urbanized 
areas under 200,000 in population with one exception. As further 
discussed below in Section H, funds attributed to an urbanized area 
under 200,000 in population, located within the planning boundaries of 
a transportation management area, must be obligated in that area.

E. Transit Enhancements

    For urbanized areas with populations 200,000 and over, TEA-21 
established a minimum annual expenditure requirement of one percent for 
transit projects and project elements that qualify as enhancements 
under the

[[Page 4907]]

Urbanized Area Formula Program. Table 4 shows the amount set aside for 
enhancements in these areas. The term ``transit enhancement'' includes 
projects or project elements that are designed to enhance mass 
transportation service or use and are physically or functionally 
related to transit facilities.
    (1) Eligible Enhancements. The following are transit projects and 
project elements that may be counted to meet the minimum enhancement 
expenditure requirement:
    (a) historic preservation, rehabilitation, and operation of 
historic mass transportation buildings, structures, and facilities 
(including historic bus and railroad facilities);
    (b) bus shelters;
    (c) landscaping and other scenic beautification, including tables, 
benches, trash receptacles, and street lights;
    (d) public art;
    (e) pedestrian access and walkways;
    (f) bicycle access, including bicycle storage facilities and 
installing equipment for transporting bicycles on mass transportation 
vehicles;
    (g) transit connections to parks within the recipient's transit 
service area;
    (h) signage; and
    (i) enhanced access for persons with disabilities to mass 
transportation.
    (2) Requirements. One percent of the Urbanized Area Formula Program 
apportionment in each urbanized area with a population of 200,000 and 
over must be made available only for transit enhancements. When there 
are several grantees in an urbanized area, it is not required that each 
grantee spend one percent of its Urbanized Area Formula Program funds 
on transit enhancements. Rather, one percent of the urbanized area's 
apportionment must be expended on projects and project elements that 
qualify as enhancements. If these funds are not obligated for transit 
enhancements within three years following the fiscal year in which the 
funds are apportioned, the funds will lapse and no longer be available 
to the urbanized area, and will be reapportioned under the Urbanized 
Area Formula Program.
    It will be the responsibility of the MPO to determine how the one 
percent will be allotted to transit projects. The one percent minimum 
requirement does not preclude more than one percent being expended in 
an urbanized area for transit enhancements. Items that are only 
eligible as enhancements--in particular, operating costs for historic 
facilities--may be assisted only within the one percent fund level.
    (3) Project Budget. The project budget for each grant application 
that includes enhancement funds must include a scope code for transit 
enhancements and specific budget activity line items for transit 
enhancements.
    (4) Bicycle Access. TEA-21 provides that projects providing bicycle 
access to transit assisted with the FTA enhancement apportionment shall 
be eligible for a 95 percent Federal share.
    (5) Enhanced Access for Persons with Disabilities. Enhancement 
projects or elements of projects designed to enhance access for persons 
with disabilities must go beyond the requirements contained in the 
Americans with Disabilities Act of 1990, 42 U.S.C. 12101 et seq.
    (6) Enhancement Report. The recipient must submit a report to the 
appropriate FTA Regional Office listing the projects or elements of 
projects carried out with those funds during the previous fiscal year 
and the amount awarded. The report must be submitted with the Federal 
fiscal year's final quarterly progress report in the Transportation 
Electronic Awards and Management System (TEAM). The report should 
include the following elements: (a) Grantee name, (b) urbanized area 
name and number, (c) FTA project number, (d) transit enhancement 
category, (e) brief description of enhancement and progress towards 
project implementation, (f) activity line item code from the approved 
budget, and (g) amount awarded by FTA for the enhancement.

F. Fiscal Year 2001 Operating Assistance

    FY 2001 funding for operating assistance is available only to 
urbanized areas with populations under 200,000. For these areas, there 
is no limitation on the amount of the state apportionment that may be 
used for operating assistance, and the Federal/local share ratio is 50/
50.
    TEA-21 provided two exceptions to the restriction on operating 
assistance in areas over 200,000 in population. These exceptions have 
been addressed and eligible areas identified.

G. Unobligated Funds for Operating Assistance

    Unobligated funds for FY 1998, which were eligible for use as 
operating assistance, are still available for operating assistance. 
However, the operating assistance limitations remain on the unobligated 
FY 1998 funds. These funds continue to be available for obligation at 
the Federal/local share ratio of 50/50 through FY 2001. If the FY 1998 
funds are not obligated before the end of FY 2001 they lapse to the 
area and are reapportioned. For unobligated FY 1998 funds for areas 
under 200,000, operating assistance as a capital project with an 80 
percent federal match ratio (without limitation) will continue to be 
available through FY 2001.

H. Designated Transportation Management Areas

    All urbanized areas over 200,000 in population have been designated 
as Transportation Management Areas (TMAs), in accordance with 49 U.S.C. 
5305. These designations were formally made in a Federal Register 
Notice dated May 18, 1992 (57 FR 21160). Additional areas have been 
designated as TMAs upon the request of the Governor and the MPO 
designated for such area or the affected local officials. During FY 
2000, no additions to existing TMAs were designated.
    Guidance for setting the boundaries of TMAs is contained in the 
joint transportation planning regulations codified at 23 CFR part 450 
and 49 CFR part 613. In some cases, the TMA boundaries, which have been 
established by the MPO for the designated TMA, also include one or more 
urbanized areas with less than 200,000 in population. Where this 
situation exists, the discretion of the Governor to allocate Urbanized 
Area Formula Program ``Governor's Apportionment'' funds for urbanized 
areas with less than 200,000 in population is restricted.
    As required by 49 U.S.C. 5307(a)(2), a recipient(s) must be 
designated to dispense the Urbanized Area Formula funds attributable to 
TMAs. Those urbanized areas that do not already have a designated 
recipient must do so and notify the appropriate FTA Regional Office of 
the designation. This includes those urbanized areas with less than 
200,000 in population that may receive TMA designation independently, 
or those with less than 200,000 in population that are currently 
included within the boundaries of a larger designated TMA. In either 
case, the Governor only has discretion to allocate Governor's 
Apportionment funds attributable to areas that are outside of 
designated TMA boundaries. To enable FTA and Governors to identify 
which urbanized areas under 200,000 in population are included within 
the boundaries of an existing TMA, so that they can be identified in 
future Federal Register notices, each MPO whose TMA planning boundaries 
include these smaller urbanized areas is requested to report such areas 
to FTA. This notification should be made in writing to the Associate 
Administrator for

[[Page 4908]]

Program Management, Federal Transit Administration, 400 Seventh Street, 
SW, Washington, DC 20590, no later than July 1 of each fiscal year. To 
date, FTA has been notified of the following urbanized areas with 
population less than 200,000 that are included within the planning 
boundaries of designated TMAs:

------------------------------------------------------------------------
                                                Small urbanized area
              Designated TMA                 included in TMA boundaries
------------------------------------------------------------------------
Baltimore, Maryland.......................  Annapolis, Maryland.
Dallas-Fort Worth.........................  Denton, Texas; Lewisville,
                                             Texas.
Houston, Texas............................  Galveston, Texas; Texas
                                             City, Texas.
Orlando, Florida..........................  Kissimmee, Florida.
Melbourne-Palm Bay, Florida...............  Titusville, Florida.
Philadelphia, Pennsylvania................  Pottstown, Pennsylvania.
Pittsburgh, Pennsylvania..................  Monessen, Pennsylvania;
                                             Steubenville-Weirton, OH-WV-
                                             PA (PA portion).
Seattle, Washington.......................  Bremerton, Washington.
Washington, DC-MD-VA......................  Frederick, Maryland (MD
                                             portion).
------------------------------------------------------------------------

I. Urbanized Area Formula Funds Used for Highway Purposes

    Urbanized Area Formula funds apportioned to a TMA can be 
transferred to FHWA and made available for highway projects if the 
following three conditions are met: (1) Such use must be approved by 
the MPO in writing after appropriate notice and opportunity for comment 
and appeal are provided to affected transit providers; (2) in the 
determination of the Secretary, such funds are not needed for 
investments required by the Americans with Disabilities Act of 1990 
(ADA); and (3) the MPO determines that local transit needs are being 
addressed.
    Urbanized Area Formula funds that are designated for highway 
projects will be transferred to and administered by FHWA. The MPO 
should notify FTA of its intent to program FTA funds for highway 
purposes.

J. National Transit Database Internet Reporting

    The National Transit Database (NTD) is FTA's national database for 
statistics on the transit industry, including safety data. In recent 
years, about 600 FTA grantees have used diskettes to report on their 
operating, financial and safety statistics to FTA.
    Urbanized Area Formula Program funds for areas 200,000 and over in 
population are apportioned, in part, using NTD statistics. In addition, 
NTD data is summarized and used to report to Congress on the 
performance of the transit industry and the associated costs. These 
data are also used to assess whether FTA Strategic Plan goals have been 
met.
    In FY 2001, NTD data may be reported via a new Internet-based 
reporting system or by the traditional diskette. Over 300 NTD reporters 
have been trained on the new Internet system. Internet reporting should 
speed data collection and validation. The FTA encourages each agency to 
use the new Internet reporting system.

VI. Section 5311  Nonurbanized Area Formula Program and Section 
5311(b) Rural Transit Assistance Program (RTAP)

A. Nonurbanized Area Formula Program

    The amount made available for the Nonurbanized Area Formula Program 
in the FY 2001 DOT Appropriations Act was $205,461,168. After the .22 
percent reduction for the government-wide rescission required by the FY 
2001 Omnibus Consolidated Appropriations Act, $205,009,154 is 
available.
    The FY 2001 Nonurbanized Area Formula apportionments to the states 
total $205,485,900 and are displayed in Table 5. Of the $205,009,154 
available, ($1,025,046) was reserved for oversight. In addition to the 
FY 2001 funding, the funds available for apportionment included 
$1,501,792 in deobligated funds from fiscal years prior to FY 2001. The 
population figures used in calculating these apportionments are from 
the 1990 Census.
    The Nonurbanized Formula Program provides capital, operating and 
administrative assistance for areas under 50,000 in population. Each 
state must spend no less than 15 percent of its FY 2001 Nonurbanized 
Area Formula apportionment for the development and support of intercity 
bus transportation, unless the Governor certifies to the Secretary that 
the intercity bus service needs of the state are being adequately met. 
FY 2001 Nonurbanized Area Formula grant applications must reflect this 
level of programming for intercity bus or include a certification from 
the Governor.

B. Rural Transit Assistance Program (RTAP)

    Funding made available for the RTAP in the 2001 DOT Appropriations 
Act was $5,250,000--the guaranteed funding level under TEA-21. This 
amount has been reduced to $5,238,450, after applying the .22 percent 
reduction for the government-wide rescission required by the FY 2001 
Omnibus Consolidated Appropriations Act.
    The FY 2001 RTAP allocations to the states total $5,404,340 and are 
also displayed in Table 5. This amount includes $5,238,450 in FY 2001 
funds, and $165,890 in prior year deobligated funds, which are 
available for reapportionment.
    The funds are allocated to the states to undertake research, 
training, technical assistance, and other support services to meet the 
needs of transit operators in nonurbanized areas. These funds are to be 
used in conjunction with the states' administration of the Nonurbanized 
Area Formula Program.
    FTA requested and Congress made available an additional $750,000 in 
FY 2001 (in the FY 2001 DOT Appropriations Act) to support RTAP 
activities carried out at the national level. The national projects 
support the states in their use of the formula allocations for training 
and technical assistance. These funds are also subject to the .22 
percent reduction required by the FY 2001 Omnibus Consolidated 
Appropriations Act and will be reduced accordingly.

VII. Section 5310  Elderly and Persons With Disabilities Program

    Funds in the amount of $77,410,801 were made available for the 
Elderly and Persons with Disabilities Program in the FY 2001 DOT 
Appropriations Act. After the .22 percent reduction for the government-
wide rescission required by the FY 2001 Omnibus Consolidated 
Appropriations Act, $77,240,497 is available.
    A total of $77,560,406 is apportioned to the states for FY 2001 for 
the Elderly and Persons with Disabilities Program. In addition to the 
FY 2001 funding of $77,240,497, the FY 2001 apportionment includes 
$319,909 in prior year unobligated funds, which are available for 
reapportionment under the Elderly and Persons with Disabilities 
Program. Table 6 shows each state's apportionment.
    The formula for apportioning these funds uses 1990 Census 
population data for persons aged 65 and over and for persons with 
disabilities.
    The funds provide capital assistance for transportation for elderly 
persons and persons with disabilities. Eligible capital expenses may 
include, at the option of the recipient, the acquisition of 
transportation services by a contract, lease, or other arrangement.
    While the assistance is intended primarily for private non-profit 
organizations, public bodies that coordinate services for the elderly 
and persons with disabilities, or any public

[[Page 4909]]

body that certifies to the state that there are no non-profit 
organizations in the area that are readily available to carry out the 
service, may receive these funds.
    These funds may be transferred by the Governor to supplement the 
Urbanized Area Formula or Nonurbanized Area Formula capital funds 
during the last 90 days of the fiscal year.

VIII. FHWA Surface Transportation Program and Congestion Mitigation 
and Air Quality Funds Used for Transit Purposes (Title 23, U.S.C.)

A. Transfer Process

    TEA-21 made changes in how to apply the flexibility provisions of 
funds transferred from FHWA to FTA. Section 1103(i) of TEA-21, as 
amended, provides that when funds are transferred, obligation authority 
will be transferred to the receiving agency. Under ISTEA, obligation 
authority was not transferred.
    Effective October 1, 1999, new procedures were implemented to 
accommodate this change for FY 2000 and subsequent years. The process 
for transfers to the FTA formula programs is described below. 
Information on the transfer of FHWA funds to FTA planning programs can 
be found in section IV.H., above.
    Transfer from FHWA to FTA. FHWA funds designated for use in transit 
capital projects must result from the metropolitan and state planning 
and programming process, and must be included in an approved Statewide 
Transportation Improvement Program (STIP) before the funds can be 
transferred. The state DOT requests, by letter, the transfer of highway 
funds for a transit project to the FHWA Division Office. The letter 
should specify the project, amount to be transferred, apportionment 
year, state, federal aid apportionment category (i.e. Surface 
Transportation Program (STP), Congestion Mitigation and Air Quality 
(CMAQ), Interstate Substitute, or congressional earmark), and a 
description of the project as contained in the STIP.
    The FHWA Division Office confirms that the apportionment amount is 
available for transfer and concurs in the transfer by letter to the 
state DOT and FTA. FHWA then transfers obligation authority and an 
equal amount of cash to FTA. All CMAQ or STP, or FHWA earmark funds 
will be transferred to one of the three FTA formula capital programs 
(i.e. Urbanized Area Formula (section 5307), Nonurbanized Area Formula 
(section 5311) or Elderly and Persons with Disabilities (section 5310).
    The FTA grantee application for the project must specify for which 
Title 49 U.S.C., transit program funds will be used and the application 
should be prepared in accordance with the requirements and procedures 
governing that section. Upon review and approval of the grantee's 
application, FTA obligates funds for the project.
    The transferred funds are treated as FTA formula funds, although 
they retain an identifying code for tracking purposes. The funds may be 
used for any purpose eligible under the FTA formula capital program to 
which they are transferred. CMAQ funds, however, have to be used for 
air quality purposes and some eligible projects are defined by the 
Clean Air Act. All FTA requirements are applicable to transferred 
funds. Transferred funds should be combined with regular FTA funds in a 
single annual grant application.
    Transfers from FTA to FHWA. The Metropolitan Planning Organization 
(MPO) submits a request to the FTA Regional Office for a transfer of 
FTA section 5307 formula funds (apportioned to an urbanized area 
200,000 and over in population) to FHWA based on approved use of the 
funds for highway purposes, as contained in the Governor's approved 
State Transportation Improvement Program. The MPO must certify that: 
(1) The funds are not needed for capital investments required by the 
Americans with Disabilities Act; (2) notice and opportunity for comment 
and appeal has been provided to affected transit providers; and (3) 
local funds used for non-Federal match are eligible to provide 
assistance for either highway or transit projects. The FTA Regional 
Administrator reviews and concurs in the request then forwards the 
approval to FTA Headquarters, where a reduction is made to the 
grantee's formula apportionment and FTA's National Operating Budget in 
TEAM (FTA's electronic grants management system), by the dollar amount 
being transferred to FHWA.
    For information regarding these procedures, please contact Kristen 
D. Clarke, FTA Budget Division at (202) 366-1699 or Richard Meehleib, 
FHWA Finance Division at (202) 366-2869.

B. Matching Share for FHWA Transfers

    The provisions of Title 23, U.S.C., regarding the non-federal share 
apply to Title 23 funds used for transit projects. Thus, FHWA funds 
transferred to FTA retain the same matching share that the funds would 
have if used for highway purposes and administered by the FHWA.
    There are three instances in which a higher than 80 percent federal 
share would be permitted. First, in states with large areas of Indian 
and certain public domain lands, and national forests, parks and 
monuments, the local share for highway projects is determined by a 
sliding scale rate, calculated based on the percentage of public lands 
within that state. This sliding scale, which permits a greater federal 
share, but not to exceed 95 percent, is applicable to transfers used to 
fund transit projects in these public land states. FHWA develops the 
sliding scale matching ratios for the increased federal share.
    Secondly, commuter carpooling and vanpooling projects and transit 
safety projects using FHWA transfers administered by FTA may retain the 
same 100 percent federal share that would be allowed for ride-sharing 
or safety projects administered by the FHWA.
    The third instance includes the 100 percent federal safety 
projects; however, these are subject to a nationwide 10 percent program 
limitation.

IX. Section 5309  Capital Investment Program

A. Fixed Guideway Modernization

    The formula for allocating the Fixed Guideway Modernization funds 
contains seven tiers. The allocation of funding under the first four 
tiers, through FY 2003, will be based on data used to apportion the 
funding in FY 1997. Funding under the last three 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.
    Table 7 displays the FY 2001 Fixed Guideway Modernization 
apportionments. Fixed Guideway Modernization funds apportioned for this 
section must be used for capital projects to maintain, modernize, or 
improve fixed guideway systems.
    All urbanized areas with fixed guideway systems that are at least 
seven years old are eligible to receive Fixed Guideway Modernization 
funds. A request for the start-up service dates for fixed guideways has 
been incorporated into the National Transit Database reporting system 
to ensure that all eligible fixed guideway data is included in the 
calculation of the apportionments. A threshold level of more than one 
mile of fixed guideway is required to receive Fixed Guideway 
Modernization funds. Therefore, urbanized areas reporting one mile or 
less of Fixed Guideway mileage under

[[Page 4910]]

the National Transit Database are not included.
    For FY 2001, $1,058,400,000 was made available for fixed guideway 
modernization in the FY 2001 DOT Appropriations Act, which was the 
guaranteed funding level in TEA-21. After applying the .22 percent 
reduction for the government-wide rescission required by the FY 2001 
Omnibus Consolidated Appropriations Act, $1,056,071,520 is available.
    An amount of ($7,920,536) was then deducted for oversight, leaving 
$1,048,150,984 available for apportionment to the eligible urbanized 
areas. In addition to the FY 2001 funding, $289,758 in deobligated 
funds from fiscal years prior to FY 2001 is added and increases the 
total amount apportioned to $1,048,440,742 under fixed guideway 
modernization. Table 13 contains information regarding the fixed 
guideway modernization apportionment formula.

B. New Starts

    Amounts made available for New Starts in the FY 2001 DOT 
Appropriations Act was $1,058,400,000, which was fully allocated and 
represents the guaranteed funding level under TEA-21. After applying 
the .22 percent reduction for the government-wide rescission and adding 
appropriated funding of $1,000,000 for Southeast Light Rail Extension 
project, in Dallas, TX, and $3,000,000 for the Newark-Elizabeth rail 
link project in New Jersey, as directed by the FY 2001 Omnibus 
Consolidated Appropriations Act, $1,060,062,720 is available.
    Of this amount ($7,942,987) was reserved for oversight activities, 
leaving $1,052,119,733 available for allocations to projects. Prior 
year unobligated funds specified by Congress to be reallocated in the 
amount of $26,994,048 are then added and increase the total amount 
allocated to $1,079,113,781. The reallocated funds were derived from 
unobligated and deobligated balances for the following projects: 
Burlington to Gloucester, New Jersey (Pub.L. 103-331), $1,488,750; 
Orlando, Florida Lynx rail project, $20,521,470; and Pittsburgh, 
Pennsylvania airport busway project (Pub.L. 105-66), $4,983,828. The 
final allocation for each New Starts project is shown in Table 8 of 
this notice.
    Prior year unobligated allocations for New Starts in the amount of 
$459,373,575 remain available for obligation in FY 2001. This amount 
includes $448,966,118 in fiscal years 1999 and 2000 unobligated 
allocations, and $10,407,457 for fiscal years 1997 and 1998 unobligated 
allocations that were extended in the Conference Report. These 
unobligated amounts are displayed in Table 8A.
    Capital Investment Program funds for New Starts projects identified 
as having been extended in the Conference Report accompanying the FY 
2001 DOT Appropriations Act will lapse September 30, 2001. A list of 
the extended project amounts that remain unobligated as of September 
30, 2000 is appended to Table 8A for ready reference.
    The FY 2001 DOT Appropriations Act directs that a New Starts FY 
1999 allocation for the Colorado North Front Range corridor feasibility 
study ($496,280) is to be made available for the ``Colorado Eagle 
Airport to Avon light rail system feasibility study.'' Also, section 
360 of the FY 2001 DOT Appropriations Act provides that a FY 1998 
allocation for Jackson, Mississippi Intermodal Corridor is now 
available for obligation in this fiscal year for studies to evaluate 
and define transportation alternatives, including an intermodal 
facility at Jackson International Airport and for related preliminary 
engineering, final design or construction.

C. Bus

    The FY 2001 DOT Appropriations Act provides $529,200,000, for the 
purchase of buses, bus-related equipment and paratransit vehicles, and 
for the construction of bus-related facilities. This amount represents 
the guaranteed funding level under TEA-21. After the .22 percent 
reduction for the government-wide rescission and adding newly 
appropriated funding of $500,000 for the Alabama A&M University buses 
and bus facilities project, as directed by the FY 2001 Omnibus 
Consolidated Appropriations Act, $528,534,660 is available.
    TEA-21 established a $100,000,000 Clean Fuels Formula Program under 
Section 5308. The program is authorized to be funded with $50,000,000 
from the Bus category of the Capital Investment Program, and 
$50,000,000 from the Formula Program. However, recent congressional 
appropriation actions have directed the formula portion of the Clean 
Fuels Program be transferred and available for the Bus category of the 
Capital Investment Program. In addition, these funds have been reduced 
by .22 percent, in accordance with the government-wide rescission. 
Thus, $578,424,660 of funds appropriated in FY 2001 is available for 
funding the Bus category of the Capital Investment Program. After 
deducting ($4,334,443) for oversight, the amount of FY 2001 funds 
available for allocation is $574,090,217.
    The Conference Report accompanying the FY 2001 DOT Appropriations 
Act allocated most of the FY 2001 Bus funds to specified states or 
localities for bus and bus-related projects. FTA will honor those 
allocations to the extent that they comply with the statutory 
authorization for that program. However, allocations for two projects 
authorized to be funded under TEA-21 (the ``Georgetown University fuel 
cell bus program'' and the ``Altoona bus testing facility'') were not 
included in the Conference Report. Absent language overriding the 
authorization, these projects need to be funded with section 5309 Bus 
funds. To provide funding for these projects at the levels authorized 
under TEA-21, a minor deduction was applied to the other Bus 
allocations on a prorated basis. In addition, the suballocations for 
the Commonwealth of Virginia specified in the Conference Report 
exceeded the statewide allocation amount. Therefore, a prorated 
reduction was applied to each statewide suballocation to correct the 
difference so that the total for the suballocations equaled the 
statewide allocated amount. Table 9 displays the allocation of the FY 
2001 Bus funds by state and project.
    Prior year unobligated balances for Bus Program allocations in the 
amount of $443,354,553 remain available for obligation in FY 2001. This 
includes $436,416,460 in fiscal years 1999 and 2000 unobligated 
allocations, and $6,938,093 for fiscal years 1997 and 1998 unobligated 
allocations that were extended in the Conference Report. These 
unobligated amounts are displayed in Table 9A.
    Capital Investment Program funds for Bus projects identified as 
having been extended in the Conference Report accompanying the FY 2001 
DOT Appropriations Act will lapse September 30, 2001. A list of the 
extended project amounts that remain unobligated as of September 30, 
2000 is appended to Table 9A for ready reference.
    In addition, the Conference Report indicates that the following 
revisions to projects or the reprogramming of funds should be made 
under the bus category:
    (1) Two FY 2000 bus allocations, Alabama, Gees Bend Ferry 
facilities, Wilcox County ($3,743,808) and Alabama, Jefferson State 
Community College/University of Montevallo pedestrian walkway 
($198,503) are made available to the State of Alabama for buses and 
bus-related facilities;
    (2) remaining balances of $800,000 from FY 1999 and FY 2000 
allocations to Fayette County, PA are made available for an intermodal 
parking facility in Cambria County, PA;

[[Page 4911]]

    (3) FY 2000 allocation for Michigan statewide buses is expanded to 
include ``bus-related equipment and bus facilities;''
    (4) up to $560,000 of funds allocated for the transportation depot 
and plaza project in Hot Springs, Arkansas in FY 2000, may be available 
for buses and bus facilities; and
    (5) fiscal year 1999 and 2000 allocations for ``Intermodal 
Facilities'' for Washington County, and Westmoreland County, PA shall 
include ``bus and bus facilities.''

X. Job Access and Reverse Commute Program

    The FY 2001 DOT Appropriations Act provides $100 million for the 
Job Access and Reverse Commute Program, which is the guaranteed funding 
level under TEA-21. After the .22 percent reduction for the government-
wide rescission required by the FY 2001 Omnibus Consolidated 
Appropriations Act, this amount has been reduced to $99,780,000. Of 
this amount, $75,079,461 has been allocated to 67 states and localities 
specified in the FY 2001 Conference report. These allocations are 
listed in Table 10. FTA will honor those allocated projects that meet 
the statutory intent of the program.
    This program, established under TEA-21, provides funding for the 
provision of transportation services designed to increase access to 
jobs and employment-related activities. Job Access projects are those 
that transport welfare recipients and low-income individuals in urban, 
suburban, or rural areas to and from jobs and activities related to 
their employment. Reverse Commute projects provide transportation 
services for the general public from urban, suburban, and rural areas 
to suburban employment opportunities. A total of up to $10,000,000 from 
the appropriation can be used for Reverse Commute Projects.
    One of the goals of the Job Access and Reverse Commute program is 
to increase collaboration among transportation providers, human service 
agencies, employers, metropolitan planning organizations, states, and 
affected communities and individuals. All projects funded under this 
program must be derived from an area-wide Job Access and Reverse 
Commute Transportation Plan, developed through a regional approach 
which supports the implementation of a variety of transportation 
services designed to connect welfare recipients to jobs and related 
activities. A key element of the program is making the most efficient 
use of existing public, nonprofit and private transportation service 
providers.
    In FY 2000, $49,570,000 was allocated to projects specified in the 
FY 2000 Conference report. FTA undertook a national solicitation of 
applications for the remaining funds under this program and conducted a 
competitive process to select applications. As a result, FTA selected 
91 competitive proposals for a total of $25.69 million, including 
projects in 44 states and the District of Columbia.

XI. Over-the-Road Bus Accessibility Program

    The amount made available for the Over-the-Road Bus Accessibility 
(OTRB) Program in the FY 2001 DOT Appropriations Act was $4,700,000, 
which is the guaranteed funding level under TEA-21. After applying the 
.22 percent reduction for the government-wide rescission required by 
the FY 2001 Omnibus Consolidated Appropriations Act, this amount has 
been reduced to $4,689,660. Of this amount, $2,993,400 is available to 
providers of intercity fixed-route service, and $1,696,260 is available 
to other providers of over-the-road bus services, including local 
fixed-route service, commuter service, and charter and tour service.
    The OTRB program authorizes FTA to make grants to operators of 
over-the-road buses to help finance the incremental capital and 
training costs of complying with the DOT over-the-road bus 
accessibility final rule, published in a Federal Register Notice on 
September 24, 1998. Funds will be provided at 90 percent Federal share. 
FTA conducts a national solicitation of applications and grantees are 
selected on a competitive basis.
    In FY 2000, a total of $2 million was available to intercity fixed-
route providers and $1.7 million was available to all other providers. 
FTA selected 47 applicants from among the 57 applications submitted for 
funding incremental capital and training costs of complying with DOT's 
OTRB Accessibility requirements.
    A separate Federal Register Notice providing program guidance and 
application procedures for FY 2001 will be issued.

XII. Clean Fuels Formula Program

    TEA-21 established the Clean Fuels Formula Grant Program under 
section 5308 of Title 49 U.S.C., to assist non-attainment and 
maintenance areas in achieving or maintaining attainment status and to 
support markets for emerging clean fuel technologies. Under the 
program, public transit agencies in maintenance and non-attainment 
areas (as defined by the EPA) are to apply for formula funds to acquire 
clean fuel vehicles. The legislation specified the program to be funded 
with $50,000,000 from the bus category of the Capital Investment 
Program, and $50,000,000 from the Urbanized Area Formula Program in 
each fiscal year of TEA-21.
    However, congressional appropriation actions in this fiscal year as 
well as in fiscal years 1999 and 2000, have provided no funds for this 
program.

XIII. Unit Values of Data for the Section 5307 Urbanized Area 
Formula Program, Section 5311 Nonurbanized Area Formula Program, 
and Section 5309 Capital Fixed Guideway Modernization

    The dollar unit values of data derived from the computations of the 
Urbanized Area Formula Program, the Nonurbanized Area Formula Program, 
and the Capital Investment Program--Fixed Guideway Modernization 
apportionments are displayed in Table 14 of this notice. To determine 
how an apportionment amount was computed for an area, multiply its 
population, population density, and data from the NTD by the unit 
values.

XIV. Period of Availability of Funds

    The funds apportioned under the Metropolitan Planning Program and 
the State Planning and Research Program, the Urbanized Area Formula 
Program, and the Fixed Guideway Modernization Program, in this notice, 
will remain available to be obligated by FTA to recipients for three 
fiscal years following FY 2001. Any of these apportioned funds 
unobligated at the close of business on September 30, 2004 will revert 
to FTA for reapportionment under these respective programs.
    Funds apportioned to nonurbanized areas under the Nonurbanized Area 
Formula Program, including RTAP funds, will remain available for two 
fiscal years following FY 2001. Any such funds remaining unobligated at 
the close of business on September 30, 2003, will revert to FTA for 
reapportionment among the states under the Nonurbanized Area Formula 
Program. Funds allocated to states under the Elderly and Persons with 
Disabilities Program in this notice must be obligated by September 30, 
2001. Any such funds remaining unobligated as of this date will revert 
to FTA for reapportionment among the states under the Elderly and 
Persons with Disabilities Program. The FY 2001 DOT Appropriations Act 
includes a provision requiring that FY 2001 New Starts and Bus funds 
not obligated for their original purpose as of September 30, 2003, 
shall be made available for other projects under 49 U.S.C. 5309.

[[Page 4912]]

    Capital Investment Program funds for New Starts and Bus projects 
identified as having been extended in the Conference Report 
accompanying the FY 2001 DOT Appropriations Act will lapse September 
30, 2001.

XV. Automatic Pre-award Authority to Incur Project Costs

A. Policy

    FTA provides blanket or automatic pre-award authority to cover 
certain program areas described below. This pre-award authority allows 
grantees to incur project costs prior to grant approval and retain 
their eligibility for subsequent reimbursement after grant approval. 
The grantee assumes all risk and is responsible for ensuring that all 
conditions, which are described below, are met to retain eligibility. 
This automatic pre-award spending authority permits a grantee to incur 
costs on an eligible transit capital or planning project without 
prejudice to possible future Federal participation in the cost of the 
project or projects. Prior to exercising pre-award authority, grantees 
must comply with the conditions and Federal requirements outlined in 
paragraphs B and C immediately below. Failure to do so will render an 
otherwise eligible project ineligible for FTA financial assistance. In 
addition, grantees are strongly encouraged to consult with the 
appropriate regional office if there could be any question regarding 
the eligibility of the project for future FTA funds or the 
applicability of the conditions and Federal requirements.
    Authority to incur costs for FY 1998 Fixed Guideway Modernization, 
Metropolitan Planning, Urbanized Area Formula, Elderly and Persons with 
Disabilities, Nonurbanized Area Formula, STP or CMAQ flexible funds to 
be transferred from the FHWA and State Planning and Research Programs 
in advance of possible future Federal participation was provided in the 
December 5, 1997, Federal Register Notice. Pre-award authority was 
extended in the June 24, 1998 Federal Register Notice on TEA-21 to all 
formula funds and flexible funds that will be apportioned during the 
authorization period of TEA-21, 1998-2003.
    Pre-award authority also applies to Capital Investment Bus 
allocations identified in this notice. Pre-award authority does not 
apply to Capital New Start funds, or to Capital Investment Bus projects 
not specified in this or previous notices, except as described in D. 
below. 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.
    For section 5309 Capital Investment Bus projects, the date that 
costs may be incurred is the date that the appropriation bill in which 
they are contained is enacted. For blanket pre-award authority in 
formula programs described above, the effective date is June 9, 1998.

B. Conditions

    Similar to the FTA Letter of No Prejudice (LONP) authority, the 
conditions under which this authority may be utilized are specified 
below:
    (1) The 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).
    (2) All FTA statutory, procedural, and contractual requirements 
must be met.
    (3) No action will be taken by the grantee that prejudices the 
legal and administrative findings that the Federal Transit 
Administrator must make in order to approve a project.
    (4) Local funds expended by the grantee pursuant to and after the 
date of the pre-award authority will be eligible for credit toward 
local match or reimbursement if FTA later makes a grant for the 
project(s) or project amendment(s).
    (5) The Federal amount of any future FTA assistance awarded to the 
grantee for the project will be determined on the basis of the overall 
scope of activities and the prevailing statutory provisions with 
respect to the Federal/local match ratio at the time the funds are 
obligated.
    (6) For funds to which the pre-award authority applies, the 
authority expires with the lapsing of the fiscal year funds.
    (7) The Financial Status Report, in TEAM, must indicate the use of 
pre-award authority.

C. 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 pre-award 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 spent on implementing activities such as final design, 
construction, and acquisition for a project that is expected to be 
subsequently funded with FTA funds. Depending on which class the 
project is included under in FTA environmental regulations (23 CFR 
771), the grantee may not advance the project beyond planning and 
preliminary engineering before FTA has issued either a categorical 
exclusion (refer to 23 CFR 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 93) 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. For planning 
projects, the project must be included in a locally approved Planning 
Work Program that has been coordinated with the State. 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 pre-
award authority. If a grantee has questions or concerns regarding the 
environmental requirements, or any other Federal requirements that must 
be met before incurring costs, it should contact the appropriate 
regional office.
    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 this notice or previous notices, 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.

D. Pre-Award Authority for New Starts Projects Approved for Preliminary 
Engineering and/or Final Design

    New Starts Projects are required to follow a federally defined 
planning process. This process includes, among other things, FTA 
approval of entry of a project into preliminary engineering and 
approval to enter final design. The grantee request for entry into 
preliminary engineering and the request

[[Page 4913]]

for entry into final design both document the project and how it meets 
the New Starts criteria in detail. With FTA approval to enter 
preliminary engineering, and subsequent approval to enter final design, 
FTA will automatically extend pre-award authority to that phase of 
project development. The pre-award authority to incur costs for final 
design is strictly limited to design work. No capital items or right of 
way acquisition is included in this blanket pre-award authority.
    This provision was first implemented in FY 2000 and is intended to 
streamline and eliminate duplicative and unnecessary paperwork and 
reinforce the importance of these New Starts approval actions. New 
Starts construction or right-of-way acquisition as well as New Starts 
planning funded with section 5309 funds not covered by preliminary 
engineering or final design approval still need letters of no prejudice 
requested as described below.

XVI. Letter of No Prejudice Policy (Prior Approval of Pre-Award 
Authority)

A. Policy

    Letter of No Prejudice (LONP) Policy authority allows an applicant 
to incur costs on a future project utilizing non-Federal resources with 
the understanding that the costs incurred subsequent to the issuance of 
the LONP may be reimbursable as eligible expenses or eligible for 
credit toward the local match should FTA approve the project at a later 
date. LONPs are applicable to projects not covered by automatic pre-
award authority. The majority of LONPs will be for Section 5309 New 
Starts funds not covered under a full funding grant agreement or for 
Section 5309 Bus funds not yet appropriated by Congress. At the end of 
an authorization period, there may be LONPs for formula funds beyond 
the life of the current authorization.
    Under most circumstances the LONP will cover the total project. 
Under certain circumstances the LONP may be issued for local match 
only. In such cases the local match would be to permit real estate to 
be used for match for the project at a later date.

B. Conditions

    The following conditions apply to all LONPs.
    (1) LONP 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).
    (2) All FTA statutory, procedural, and contractual requirements 
must be met.
    (3) No action will be taken by the grantee that prejudices the 
legal and administrative findings that the Federal Transit 
Administrator must make in order to approve a project.
    (4) Local funds expended by the grantee pursuant to and after the 
date of the LONP will be eligible for credit toward local match or 
reimbursement if FTA later makes a grant for the project(s) or project 
amendment(s).
    (5) The Federal amount of any future FTA assistance to the grantee 
for the project will be determined on the basis of the overall scope of 
activities and the prevailing statutory provisions with respect to the 
Federal/local match ratio at the time the funds are obligated.
    (6) For funds to which this pre-award authority applies, the 
authority expires with the lapsing of the fiscal year funds.

C. Environmental, Planning, and Other Federal Requirements

    As with automatic pre-award authority, 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 pre-award 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 spent on 
implementation activities such as final design, construction, or 
acquisition 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 93) also must be fully met before the 
project may be advanced with non-Federal funds.
    Similarly, the requirement that a capital 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. For 
planning projects, the project must be included in a locally approved 
Planning Work Program that has been coordinated with the State. 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 pre-award authority requires a grantee to make certain that 
no Federal requirements are circumvented. 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.

D. Request for LONP

    Before an applicant may incur costs for a project not covered by 
automatic pre-award authority, it must first submit a written request 
for an LONP to the appropriate regional office. This written request 
must include a description of the project for which pre-award authority 
is desired and a justification for the request.

XVII. FTA Home Page on the Internet

    FTA provides extended customer service by making available transit 
information on the FTA website, including this Apportionment Notice. 
Also posted on the website are FTA program Circulars: C9030.1C, 
Urbanized Area Formula Program: Grant Application Instructions, dated 
October 1, 1998; C9040.1E, Nonurbanized Area Formula Program Guidance 
and Grant Application Instructions, dated October 1, 1998; C9070.1E, 
The Elderly and Persons with Disabilities Program Guidance and 
Application Instructions, dated October 1, 1998; C9300.1A, Capital 
Program: Grant Application Instructions, dated October 1, 1998; 
4220.1D, Third Party Contracting Requirements, dated April 15, 1996; 
C5010.1C, Grant Management Guidelines, dated October 1, 1998; and 
C8100.1B, Program Guidance and Application Instructions for 
Metropolitan Planning Program Grants, dated October 25, 1996. The FY 
2001 Annual List of Certifications and Assurances is also posted on the 
FTA website. Other documents on the FTA website of particular interest 
to public transit providers and users include the 1998 Statistical 
Summaries of FTA Grant Assistance Programs, and the National Transit 
Database Profiles.
    FTA circulars are listed at:[http://www.fta.dot.gov/library/admin/checklist/circulars.htm]. Other guidance

[[Page 4914]]

of interest to Grantees can be found at: [http://www.fta.dot.gov/grantees/index.html].
    Grantees should check the FTA website frequently to keep up to date 
on new postings.

XVIII. FTA Fiscal Year 2001 Annual List of Certifications and 
Assurances

    The ``Fiscal Year 2001 Annual List of Certifications and 
Assurances'' is published in conjunction with this notice. It appears 
as a separate Part of the Federal Register on the same date whenever 
possible. The FY 2001 list contains several changes to the previous 
year's Federal Register publication. As in previous years, the grant 
applicant should certify electronically. Under certain circumstances 
the applicant may enter its PIN number in lieu of an electronic 
signature provided by its attorney, provided the applicant has on file 
the current affirmation of its attorney in writing dated this federal 
fiscal year. The applicant is advised to contact the appropriate FTA 
Regional Office for electronic procedure information.
    The ``Fiscal Year 2001 Annual List of Certifications and 
Assurances'' is accessible on the Internet at [http//:www.fta.dot.gov/library/legal/ca.htm]. Any questions regarding this document may be 
addressed to the appropriate Regional Office.

XIX. Grant Application Procedures

    All applications for FTA funds should be submitted to the 
appropriate FTA Regional Office. FTA utilizes an electronic grant 
application system known as TEAM and all applications should be filed 
electronically. FTA has provided exceptions to the requirement for 
electronic filing of applications for certain new, non-traditional 
grantees in the Job Access and Reverse Commute and Over-the-Road Bus 
Accessibility programs as well as to a few grantees that have not 
successfully connected to or accessed TEAM.
    With FY 2001, FTA is establishing a 90-day goal for processing and 
approving all capital, planning and operating grants, including the 
section 5307 Urbanized Area Formula Program, section 5309 Fixed 
Guideway Modernization Program, the New Starts and Bus Programs, the 
section 5310 Elderly and Persons with Disabilities Program, the section 
5311 Nonurbanized Area Formula Program, the Job Access and Reverse 
Commute Program, the Over-the-Road Bus Accessibility Program, section 
5303 Metropolitan Planning Program, and section 5313(b) State Planning 
and Research Program. The 90-day processing time begins with the 
receipt of a complete application by the Regional Office. In order for 
an application to be considered complete, it must meet the following 
requirements: all projects must be contained in an approved STIP, all 
environmental findings must be made by FTA, there must be an adequate 
project description, local share must be secure, all required civil 
rights submissions must have been submitted, and certifications and 
assurances must be properly submitted. Once an application is complete, 
the FTA Regional Office will assign a project number and submit the 
application to the Department of Labor for a certification under 
section 5333(b). The FTA circulars referenced below contain more 
information regarding application contents and complete applications.
    Formula and Capital Investment grant applications should be 
prepared in conformance with the following FTA Circulars: Program 
Guidance and Application Instructions for Metropolitan Planning Program 
Grants--C8100.1B, October 25, 1996; Urbanized Area Formula Program: 
Grant Application Instructions--C9030.1C, October 1, 1998; Nonurbanized 
Area Formula Program Guidance and Grant Application Instructions--
C9040.1E, October 1, 1998; Section 5310 Elderly and Persons with 
Disabilities Program Guidance and Application Instructions C9070.1E, 
October 1, 1998; and Section 5309 Capital Program: Grant Application 
Instructions--C9300.1A, October 1, 1998. Guidance on preparation of 
applications for State Planning and Research funds may be obtained from 
each FTA Regional Office. Copies of circulars are available from FTA 
Regional Offices as well as the FTA website.
    Applications for grants containing transferred FHWA funds (STP, 
CMAQ, and others) should be prepared in the same manner as for funds 
under the program to which they are being transferred. The application 
for flexible funds needs to specifically indicate the type and amount 
of flexible funds being transferred to FTA. The application should also 
describe which items are being funded with transferred funds, 
consistent with the Statewide Transportation Improvement Program 
(STIP).

    Issued on: January 9, 2001.
Nuria I. Fernandez,
Acting Administrator.

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[FR Doc. 01-1082 Filed 1-17-01; 8:45 am]
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