71950 Federal Register / Vol. 70, No. 229 / Wednesday, November 30, 2005 / Notices 

DEPARTMENT OF TRANSPORTATION 

Federal Transit Administration 

FTA Transit Program Changes, 

Authorized Funding Levels and 

Implementation of the Safe, 

Accountable, Flexible, Efficient 

Transportation Equity Act: A Legacy 

for Users 

[Docket No. FTA–2005–23089] 

AGENCY: Federal Transit Administration 

(FTA), DOT. 

ACTION: Notice. 

SUMMARY: This notice announces 

changes in the Federal Transit 

Administration (FTA) programs in 

accordance with SAFETEA–LU, which 

authorizes funds for all of the surface 

transportation programs of the 

Department of Transportation for 

Federal fiscal years 2005 through 2009. 

This notice provides preliminary 

implementation instructions and 

guidance for grants under the new and 

revised programs in FY 2006 and invites 

public comment. The notice also 

includes tables of unobligated (or 

carryover) amounts for earmarks from 

prior years under the discretionary 

programs, and tables that list 

discretionary program earmarks 

authorized under SAFETEA–LU. 

DATES: Comments on the content of this 

notice will be received until December 

30, 2005. Late filed comments will be 

considered to the extent practicable. 

ADDRESSES: You may submit comments 

[identified by DOT DMS Docket Number 

FTA–2005–23089] by any of the 

following methods: 

1. Web Site: http://dms.dot.gov. 

Follow the instructions for submitting 

comments on the DOT electronic docket 

site. Fax: 202–493–2251. 

2. Mail: Docket Management Facility; 

U.S. Department of Transportation, 400 

Seventh Street, SW., Nassif Building, 

PL–401, Washington, DC 20590–0001. 

3. Hand Delivery: Room PL–401 on 

the plaza level of the Nassif Building, 

400 Seventh Street, SW., Washington, 

DC, between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

Instructions: You must include the 

agency name (Federal Transit 

Administration) and the docket number 

(FTA–2005–23089). You should submit 

two copies of your comments if you 

submit them by mail. If you wish to 

receive confirmation that FTA received 

your comments, you must include a 

self-addressed stamped postcard. Note 

that all comments received will be 

posted without change to the 

Department’s Docket Management 

System (DMS) Web site located at 

http://dms.dot.gov. This means that if 

your comment includes any personal 

identifying information, such 

information will be made available to 

users of DMS. 

FOR FURTHER INFORMATION CONTACT: For 

general information about this notice 

contact Mary Martha Churchman, 

Director, Office of Resource 

Management and State Programs, (202) 

366–2053. Please contact the 

appropriate FTA regional office, from 

the list in Appendix A, for grantee 

specific requests for information or 

technical assistance. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Overview 

II. FY 2006 Funding for FTA Programs 

A. Authorized Funding for FY 2006 

B. Status of FY 2006 Funding 

C. Project Management Oversight 

Takedown 

III. SAFETEA–LU: FY 2006–2009 Authorized 

Funding Levels and Project Authorizations 

IV. SAFETEA–LU: Highlights of CrossCutting Changes 

A. Definitional Changes 

1. Mobility Management 

2. Security Planning, Training, and Drills 

3. Debt Service Reserve 

4. Intercity Bus and Intercity Rail 

5. Definition of Public Transportation 

B. Cross-cutting Programmatic 

Requirements and Changes 

1. State Infrastructure Bank 

2. Coordination 

3. Public Participation Planning 

Requirement 

4. Public Hearings 

5. Labor Protection 

6. Buy America 

7. Procurement 

8. Pre-award/Post-Delivery Reviews 

9. Charter Service and School Bus 

10. Revenue Bonds as Local Match 

11. Government’s Share of Cost of 

Equipment and Facilities for ADA and 

Clean Air Act Compliance 

V. SAFETEA–LU: Summary of New Programs 

and Formulas 

A. New Freedom (49 U.S.C. 5317) 

B. Alternative Transportation in the Parks 

and Public Lands (49 U.S.C. 5320) 

C. Small Starts (Component of the Section 

5309 New Starts Program) 

D. Alternative Analysis (49 U.S.C. 5339) 

E. Public Transportation on Indian 

Reservations (49 U.S.C. 5311(c)(1)) 

F. Growing States and High Density States 

Formula Factors (49 U.S.C. 5340) 

VI. Program Specific Information and 

Requests for Comments 

A. Metropolitan Planning Program (49 

U.S.C. 5303) 

B. Statewide Planning and Research 

Program (49 U.S.C. 5304) 

C. Urbanized Area Formula Program (49 

U.S.C. 5307) 

D. Clean Fuels Grant Program (49 U.S.C. 

5308) 

E. Capital Investment Program (49 U.S.C. 

5309)—Fixed Guideway Modernization 

F. Capital Investment Program (49 U.S.C. 

5309)—Bus and Bus-Related Facilities 

G. Capital Investment Program (49 U.S.C. 

5309)—New Starts 

H. Special Needs of Elderly Individuals 

and Individuals with Disabilities 

Program (49 U.S.C. 5310) 

I. Nonurbanized Area Formula Program (49 

U.S.C. 5311) 

J. Rural Transportation Assistance Program 

(49 U.S.C. 5311(b)(2)) 

K. Public Transportation on Indian 

Reservations Program (49 U.S.C. 

5311(c)(1)) 

L. National Research Program (49 U.S.C. 

5314) 

M. Job Access and Reverse Commute 

Program (49 U.S.C. 5316) 

N. New Freedom Program (49 U.S.C. 5317) 

O. Alternative Transportation in the Parks 

and Public Lands Program (49 U.S.C. 

5320) 

P. Alternative Analysis Program (49 U.S.C. 

5339) 

Q. Growing States and High Density States 

Formula Factors (49 U.S.C. 5340) 

R. Over-the-Road Bus Accessibility 

Program (Pub. L. 105–85, Section 3038) 

VII. FTA National Planning Emphasis Areas 

VIII. FTA Policy and Procedures for FY 2006 

Grants 

A. Automatic Pre-Award Authority To 

Incur Project Costs 

B. Letter of No Prejudice (LONP) Policy 

C. FTA FY 2006 Annual List of 

Certifications and Assurances 

D. FHWA Funds Used for Transit Purposes 

E. Consolidated Planning Grants 

F. Grant Application Procedures 

Tables 

1. SAFETEA–LU Authorized Programs and 

Funding Levels 

2. SAFETEA–LU Authorized Section 5309 

New Starts Projects 

3. SAFETEA–LU Authorized Section 5339 

Alternative Analysis Projects 

4. SAFETEA–LU Authorized Section 5309 

Bus and Bus-Related Facilities Projects 

5. SAFETEA–LU Authorized Section 5308 

Clean Fuels Projects 

6. Prior Year Unobligated Section 5309 Bus 

and Bus-Related Facilities Allocations 

7. Prior Year Unobligated Section 5309 

New Starts Allocations 

8. SAFETEA–LU Authorized Section 5314 

National Research Program Projects 

9. Prior Year Unobligated Job Access and 

Reverse Commute Allocations 

Appendices 

Appendix A—FTA Regional Offices 

Appendix B—Specific Questions and 

Issues for Comment 

I. Overview 

This document contains important 

information about new FTA programs 

authorized by the Safe, Accountable, 

Flexible, Efficient Transportation Equity 

Act: A Legacy for Users, (SAFETEA–LU) 

(Pub. L. 109–059), signed into law by 

President Bush on August 10, 2005, and 

changes to programs reauthorized by 

that legislation. It also contains 

information on how FTA plans to 

administer the transit programs 

Federal Register / Vol. 70, No. 229 / Wednesday, November 30, 2005 / Notices 71951 

discussed in this document, in fiscal 

year (FY) 2006. For each FTA program 

included, we have provided information 

on the SAFETEA–LU authorized 

funding levels for fiscal years 2006–

2009, the basis for apportionment or 

allocation for funds, requirements 

specific to the program, period of 

availability of funds, and other program 

information. The document also 

includes a section that introduces 

planning emphasis areas for FY 2006. A 

separate section of the document 

provides information on pre-award 

authority and other requirements and 

guidance applicable to FTA program 

administration. Finally, the notice 

includes tables that show unobligated or 

carryover funding available, in FY 2006, 

from prior years under certain 

discretionary programs, and tables that 

list authorized project earmarks under 

SAFTEA–LU. 

Information in this document 

includes references to the existing FTA 

program guidance circulars. While some 

information in the circulars has been 

superseded by new provisions in 

SAFETEA–LU, the circulars remain a 

resource for program guidance in most 

areas. FTA intends to revise the 

circulars, with an opportunity for public 

comment. 

To supplement the guidance provided 

in this document FTA is preparing 

answers to frequently asked questions 

(FAQs), on SAFETEA–LU changes and 

impacts, from its grantees, stakeholders, 

and other interested parties. These 

FAQs will be posted on the FTA Web 

site at http://www.fta.dot.gov when they 

become available. 

Throughout the document we have 

included specific questions on which 

we seek comment, and we invite your 

comments to the docket on any 

information provided in this notice. A 

list of the specific questions or issues 

can be found in Appendix B. 

II. FY 2006 Funding for FTA Programs 

A. Authorized Funding for FY 2006 

SAFETEA–LU provides a 

combination of trust and general funds 

that total $8.6 billion for FTA programs 

for FY 2006. Table 1 of this document 

shows the authorized funding for the 

FTA programs for the fiscal years 2006–

2009. This notice provides a narrative 

explanation of the funding levels and 

other factors affecting the 

apportionments and allocations for each 

program. 

B. Status of FY 2006 Funding 

When the FY 2006 appropriations bill 

is passed and enacted into law, FTA 

will publish another notice that will 

include a table for each program that 

contains the apportionments or 

allocations, based on the program 

funding level in the FY 2006 

appropriations act. At the time this 

notice was prepared the agency was 

operating under a Continuing 

Resolution and only a small fraction of 

the FY 2006 funds authorized in 

SAFETEA–LU was available for FTA 

programs and administrative expenses. 

No FY 2006 program funds have been 

apportioned at this time. Congress 

recently took action on the FY 2006 

Appropriations Act and we will publish 

the FY 2006 apportionments and 

allocations shortly. 

C. Project Management Oversight 

Takedown 

FTA draws money from funds 

appropriated to certain FTA programs 

for program oversight activities 

conducted by the agency. The funds are 

used to provide necessary oversight 

activities, including oversight of the 

construction of any major project under 

these statutory programs; to conduct 

safety and security, civil rights, 

procurement, management and financial 

reviews and audits; and to provide 

technical assistance to correct 

deficiencies identified in compliance 

reviews and audits. 

49 U.S.C. 5327 authorizes the 

takedown of funds from FTA programs 

for project management oversight. 

SAFETEA–LU increased the amount 

that may be set-aide for such activities 

above the levels established under TEA–

21 and identified additional programs to 

which the oversight takedown applies. 

SAFETEA–LU provides oversight 

takedowns at the following levels: 0.5 

percent of Planning funds, 0.75 percent 

of Urbanized Area Formula funds, 1 

percent of Capital Investment funds, 0.5 

percent of Special Needs of Elderly 

Individuals and Individuals with 

Disabilities formula funds, 0.5 percent 

of Nonurbanized Area Formula funds, 

and 0.5 percent of Alternative 

Transportation in the Parks and Public 

Lands funds. Language in section 5327 

also specifies the addition of ‘‘safety and 

security management’’ to the list of 

project management plan requirements. 

III. SAFETEA–LU: FY 2006–2009 

Authorized Funding Levels and Project 

Authorizations 

SAFETEA–LU provides a 

combination of trust and general fund 

authorizations that total $45.3 billion for 

public transportation for fiscal years 

2005–2009 ($52.6 billion over the six 

year period 2004–2009). Just over 80 

percent is derived from the Mass Transit 

Account, with only New Starts, 

Research and FTA Administrative 

funding coming from the General Fund. 

All funds, including the General Fund 

portion, are guaranteed, which means 

that the guaranteed annual levels are 

already ‘‘paid for’’ under Congressional 

budgetary rules. This assures that in 

each year’s appropriations process the 

specified amount of authorized funding 

will be available each year for transit 

programs. See Table 1 for the 

guaranteed funding levels by program. 

Previously, under TEA–21, all the 

FTA programs were funded with both 

Mass Transit Account and General 

Funds. Because of this change in the 

structure of FTA’s accounts, except for 

New Starts and Research program 

grants, FTA will not be able to combine 

FY 2006 funds in the same grant with 

funds appropriated in prior years. See 

section VIII F below for grant 

application procedures. 

SAFETEA–LU includes 405 New 

Starts project designations for fiscal 

years 2006–2009, many of which are 

listed more than once. The total funding 

authorized for these projects is $5.49 

billion. Thirty-one (31) projects are 

authorized for Full Funding Grant 

Agreements (FFGAs); 38 projects are 

authorized for Final Design (FD) and 

Construction, and 264 projects are 

authorized for Preliminary Engineering 

(PE). Dollar amounts are specified by 

fiscal year for each FFGA project. No 

funding amounts are specified for the 

FD and construction and PE projects. 

Fifty-two New Starts project 

designations listed have a total amount 

specified but this amount is not 

identified with any particular fiscal 

year. In addition, 18 New Starts projects 

for Alternative Analysis under section 

5339 are designated and amounts 

authorized for fiscal years 2006 and 

2007 specified. The Alaska and Hawaii 

Ferry Boat and Denali Commission 

projects are also authorized. All New 

Starts earmarks are listed in Table 2 and 

Table 3 by State, including the dollar 

amount if specified. 

Also authorized are project specific 

allocations for 646 Bus and Bus-Related 

Facilities projects totaling 

$1,819,662,341 for fiscal years 2006–

2009. These projects and amounts are 

displayed in Table 4. 

Under the Clean Fuels program, 16 

projects totaling $78,385,000 are 

earmarked for funding for FY 2006–

2009. These projects and amounts are 

displayed in Table 5. 

It should be noted that projects 

earmarked in SAFETEA–LU are subject 

to Congressional actions in later 

appropriations bills and funding is not 

available for immediate obligation. 

Estimates of formula program funding 

71952 Federal Register / Vol. 70, No. 229 / Wednesday, November 30, 2005 / Notices 

levels for fiscal years 2006–2009, by 

State and urbanized area (UZA), are 

available on the FTA Web site. These 

numbers are for planning purposes only 

as they will be revised when each year’s 

appropriation bill is enacted but may be 

used for the purpose of programming 

metropolitan transportation 

improvement programs (TIPs) and 

statewide transportation improvement 

programs (STIPs). 

In the estimates of formula funding 

for UZAs, for the JARC and New 

Freedom programs, FTA included the 

amount of funding attributable to each 

UZA less than 200,000 in population 

(small UZA) low income individuals 

and individuals with disabilities, 

respectively. These amounts were 

provided, for information purposes 

only. Under these programs, funds for 

the UZAs under 200,000 in population 

will be apportioned to the state for 

competitive selection of projects. 

Similarly, we estimated the amount of 

funding that might go to each State 

under the Public Transportation on 

Indian Reservations Program (49 U.S.C. 

5311(c)(1) also referred to as the Tribal 

Transit Program in this document), 

based on tribal population. But these 

funds will not be apportioned to the 

States and the process for apportioning 

them among the Tribes has not yet been 

determined. 

IV. SAFETEA–LU: Highlights of CrossCutting Changes 

A. Definitional Changes 

1. Mobility Management 

SAFETEA–LU added ‘‘mobility 

management’’ to the list of capital 

projects at 5302(a)(1)(L). This allows 

‘‘short-range planning and management 

activities and projects for improving 

coordination among public 

transportation and other transportation 

service providers carried out by a 

recipient or subrecipient’’ to be funded 

as a capital project. The definition 

excludes the actual costs of operating 

public transportation services, but 

allows the costs of planning and 

coordination with human service 

transportation to be treated as capital 

rather than operating costs. 

2. Security Planning, Training, and 

Drills 

Four new eligible capital activities 

were added at 5302(a)(1)(J). These 

include projects ‘‘to refine and develop 

security and emergency response plans, 

projects aimed at detecting chemical 

and biological agents in public 

transportation, the conduct of 

emergency response drills with public 

transportation agencies and local first 

response agencies, and security training 

for public transportation employees.’’

Expenses related to transit operations, 

other than those incurred in conducting 

emergency response drills or security 

training, are excluded from this 

definition and will continue to be 

eligible only as operating in those areas 

eligible to use FTA funds for operating 

assistance. 

3. Debt Service Reserve 

SAFETEA–LU allows recipients to be 

reimbursed from section 5309 funds for 

deposits of bond proceeds in a debt 

service reserve. The Act also allows up 

to ten recipients to be reimbursed from 

section 5307 funds for bond proceeds 

deposited in a debt service reserve 

established with a bondholders’ trustee. 

These provisions will have the effect of 

reducing grantees’ out of pocket bond 

issuance costs due to the reimbursement 

for the cost of the debt service reserve. 

The new capital definition of debt 

service reserve is found at 5302(a)(1)(K) 

and the limitations on its use are at 

sections 5323(e)(3) and (4). 

4. Intercity Bus and Intercity Rail 

The definition of an eligible joint 

development capital project in section 

5302(A)(1)(G) has been expanded to 

include ‘‘construction, renovation, and 

improvement of intercity bus and 

intercity rail stations and terminals.’’

Further, the limitation that made 

‘‘commercial revenue-producing 

facilities’’ ineligible for FTA assistance 

has been lifted with respect to intercity 

bus stations or terminals. Intercity bus 

stations and terminals are not required 

to provide a fair share of revenue for 

public transportation that will be used 

for public transportation. 

The result of these changes is that 

FTA funds can now be used for all 

aspects of intercity bus and rail facilities 

in facilities (such as intermodal 

terminals) which meet the criteria in 

section 5302(a)(1)(G) for joint 

development projects (physical and 

functional relationship to public 

transportation). Further, $35 million per 

year is set aside in the section 5309 Bus 

and Bus-Related Facilities program for 

intermodal terminals, including the 

intercity bus portions of those terminals. 

5. Definition of Public Transportation 

Throughout SAFETEA–LU, the term 

public transportation is used wherever 

the FTA statute previously referred to 

mass transit or mass transportation. The 

definition of public transportation at 

5302(a)(10) was also modified to 

specifically exclude intercity bus 

transportation. This change does not 

affect the eligibility of intercity bus 

service under the rural program (section 

5311) or the over-the-road bus 

accessibility program (TEA–21, section 

3038). The definition now also 

specifically excludes intercity passenger 

rail transportation provided by 

AMTRAK. The intercity bus and 

intercity rail portion of intermodal 

terminals, however, is an eligible capital 

cost under 49 U.S.C. 5302(a)(1)(G). 

B. Cross-cutting Programmatic 

Requirements and Changes 

1. State Infrastructure Bank 

SAFETEA–LU establishes a new State 

Infrastructure Bank (SIB) program under 

which all States, Puerto Rico, the 

District of Columbia, American Samoa, 

Guam, the Virgin Islands, and the 

Commonwealth of the Northern Mariana 

Islands are authorized to enter into 

cooperative agreements with the 

Secretary of Transportation to establish 

financial entities that provide various 

types of transportation infrastructure 

credit assistance for fiscal years 2005–

2009. The new program is a 

continuation and expansion of similar 

programs created by the National 

Highway System (NHS) Act in 1995 and 

the TEA–21 legislation of 1998. It gives 

States the capacity to increase the 

efficiency of their transportation 

investment and significantly leverage 

Federal resources by attracting nonFederal public and private investment. 

The program provides greater flexibility 

to the States by allowing other types of 

project assistance in addition to grant 

assistance. 

2. Coordination 

Under three FTA formula programs 

[the Special Needs of Elderly 

Individuals and Individuals with 

Disabilities Program (section 5310), Job 

Access and Reverse Commute (section 

5316), and New Freedom (section 

5317)], there is a requirement that the 

designated recipient competitively 

select projects and that the projects 

must be derived from a locally 

developed coordinated public transit/ 

human service transportation plan. 

Public transit operators, including those 

funded under both the urbanized and 

non-urbanized formula programs 

(sections 5307 and 5311) are expected to 

be participants in the local planning 

process for coordinated public transit/ 

human service transportation. See the 

specific programs below for more 

information about the planning 

requirements as it relates to the three 

programs. See also the metropolitan 

planning public participation 

requirement below. 

Federal Register / Vol. 70, No. 229 / Wednesday, November 30, 2005 / Notices 71953 

3. Public Participation Planning 

Requirement 

Metropolitan Planning Organizations 

(MPOs) must develop and utilize a 

‘‘participation plan’’ that provides 

reasonable opportunities for the 

interested parties to comment on the 

content of the metropolitan 

transportation plan and metropolitan 

TIP. This requirement is intended to 

afford parties who participate in the 

metropolitan planning process a specific 

opportunity to comment on the plan 

prior to its approval, including 

governmental agencies and nonprofit 

organizations that receive Federal 

assistance from a source other than the 

Department of Transportation (DOT) to 

provide non-emergency transportation 

services and recipients of assistance 

under section 204 of Title 23 U.S.C. The 

participation plan must be in place prior 

to MPO adoption of transportation plans 

and TIPs addressing SAFETEA–LU 

provisions. 

4. Public Hearings 

The public hearing requirement in 49 

U.S.C. 5323(b) for capital projects was 

changed by SAFETEA–LU. Formerly, an 

opportunity for a public hearing was 

required on a section 5309 grant 

application if the grant would 

substantially affect the community or its 

mass transportation service. Many of the 

notices published under this 

requirement did not ultimately result in 

a hearing being held. 

SAFETEA–LU associates more clearly 

the public involvement and hearing 

requirements for capital projects with 

the environmental review required by 

the National Environmental Policy Act 

(NEPA) and its implementing 

regulations. It also broadens the 

requirement to apply to all capital 

projects (as defined in section 5302). 

Now, the grant applicant must provide 

an adequate opportunity for public 

review and comment on a capital 

project, and, after providing notice, 

must hold a public hearing on the 

project if the project affects significant 

economic, social, or environmental 

interests. These requirements will be 

satisfied through compliance with the 

NEPA requirements for a public scoping 

process, public review and comment on 

NEPA documents, and a public hearing 

on every draft environmental impact 

statement (EIS). FTA will also require a 

public hearing on environmental 

assessments (EAs) that have a high 

probability of being elevated to EISs. 

Section 5323(b) must be read in 

concert with section 5324(b) which 

states that FTA must review the public 

comments and hearing transcript to 

ascertain that an adequate opportunity 

to present views was given to all parties 

having a significant economic, social, or 

environmental interest in the project, 

and that FTA must make a written 

finding to this effect. 

5. Labor Protection 

SAFETEA–LU codified in 5333(b) 

streamlined labor protection 

arrangements already used by the 

Department of Labor (DOL) in certifying 

FTA grants for purchase of like-kind 

equipment or facilities or non-material 

grant amendments. It also codified 

existing practice when a contractor is 

changed through competitive bidding. 

In section 5311, the use of a special 

warranty is written into the law. Awards 

under two new programs, New Freedom 

and Alternative Transportation in Parks 

and Public Lands, will not be required 

to be certified by DOL. 

6. Buy America 

The Buy America stipulation is 

intended to ensure that Federal grants 

stimulate domestic economic activity. 

FTA funds must be used for goods that 

must be produced or manufactured in 

the United States or with specific 

products, and have a defined percent of 

domestic content. Four changes from 

the previous law are that SAFETEA–LU: 

• Requires the Secretary of 

Transportation to issue a written 

justification for public interest waivers 

on Buy America requirements. (Under 

the law, he may waive the Buy America 

requirements if they are deemed 

inconsistent with the public interest). 

The Secretary must publish the written 

justification in the Federal Register and 

provide the public with a reasonable 

period of time for notice and comment. 

• Clarifies that a party adversely 

affected by a FTA decision under the 

Buy America provisions has the right to 

seek administrative review. 

• Repeals the general waiver of subsections (b) and (c) of Appendix A of 

section 661.7. 

• Requires a rulemaking within 180 

days clarifying or defining the following 

Buy America requirements: 

1. Microprocessors; Buy America 

requirements have been waived for 

microprocessors since few are 

manufactured in the United States. The 

Secretary is directed to apply the waiver 

to a device that is solely for the purpose 

of processing and storing data and not 

extended to a product containing the 

microprocessor. 

2. Defining the term ‘‘end product’’

for non-rolling stock. Does the end 

product serve a purpose by itself or with 

other end products on an interoperative 

basis? A product that does not work 

with products of other manufacturers is 

part of that manufacturers system that is 

the end product. A list of systems and 

end products will be developed. 

3. Defining the term ‘‘negotiated 

procurement’’ and determine Buy 

America compliance on the basis of the 

certification with the final offer. 

4. Defining the term ‘‘contractor’’. 

5. Clarifying that a grant recipient 

may request a non-availability waiver 

after the contract award if the contractor 

has made a certification of compliance 

with the requirements in good faith. The 

contractor must have certified that it can 

meet the Buy America requirements 

before being awarded a contract. If the 

contractor later finds that parts are not 

available to meet the requirement, the 

grantee may now request a Buy America 

waiver. 

7. Procurement 

SAFETEA–LU recodified FTA’s 

procurement requirements in section 

5325 of Title 49 U.S.C. Section 5325(a) 

establishes full and open competition as 

the basic requirement for FTA-funded 

third party contracts. Section 5325(b), 

which covers architectural, engineering, 

and design contracts, has been modified 

to match similar language in Title 23 

U.S.C., on reciprocity of audited 

indirect cost rates. Section 5325(c) on 

use of other-than-low-bid procurement 

has been reenacted. Language on 

Turnkey Contracting, formerly in 

section 5326, now appears as section 

5325(d), and is re-titled ‘‘Design-Build’’, 

reflecting more up-to-date terminology. 

Provisions formerly in section 5326 

governing rolling stock procurements 

now appear in sections 5325(e) and (f). 

Section 5325(g) now allows access by 

DOT or the Government Accountability 

Office (GAO) to any contract-related 

record, not just those in sole-source 

procurements. Section 5325(h) 

continues the prohibition on 

exclusionary or discriminatory 

procurements. A new section 5325(i) 

prohibits application of State laws 

requiring bus purchases to go through 

in-State bus dealers from applying to 

projects assisted under the FTA 

program. Finally, section 5325(j) 

codifies in law the requirement that 

contracts be awarded only to 

‘‘responsible’’ contractors. Grantees are 

required to assess the integrity of the 

contractor, compliance with public 

policy, the contractor’s financial and 

technical resources, and the contractors 

past performance, particularly as 

reported in the Contractor Performance 

Assessment Report required under 

section 5309(l)(2). 

71954 Federal Register / Vol. 70, No. 229 / Wednesday, November 30, 2005 / Notices 

8. Pre-Award/Post-Delivery Reviews 

Under the current Buy America 

provisions, there is a requirement for a 

resident factory inspector for rolling 

stock procurements of greater than 10 

buses. SAFETEA–LU eliminates the 

requirement for a resident factory 

inspector for rolling stock procurements 

of 20 vehicles or less for use in rural 

(other than urbanized) areas, or UZAs of 

200,000 population or less. 

9. Charter Service and School Bus 

SAFETEA–LU section 3023(d) 

amended 49 U.S.C., section 5323(d)(2) 

and provided new remedies for 

violations of charter service. The 

amended provision states that the 

Secretary shall bar a recipient or an 

operator from receiving Federal transit 

assistance in an amount the Secretary 

considers appropriate if the Secretary 

finds a pattern of violations of the 

agreement. The previous provision 

stated that the Secretary could bar a 

recipient from receiving further 

assistance when the Secretary found a 

continuing pattern of violations of the 

agreement. The new provision allows 

for more flexibility. Under the prior law 

the Secretary could totally bar a 

recipient from receiving further 

financial assistance, but this penalty 

was so harsh that it was only rarely 

invoked. Under SAFETEA–LU the 

Secretary can determine a penalty less 

than a complete bar of financial 

assistance; the Secretary shall bar an 

operator from receiving assistance in an 

amount the Secretary considers 

appropriate. 

In addition, the Conference Report for 

SAFETEA–LU stated that the conferees 

directed FTA to initiate a negotiated 

rulemaking seeking public comment on 

the charter service regulation 

implementing 49 U.S.C., 5323(d) and to 

consider the following issues: (1) 

Whether public transit agencies can 

provide community-based charter 

services directly to local governments 

and private non-profit agencies that 

would not otherwise be served in a cost 

effective manner by private operators; 

(2) how can the administration and 

enforcement of charter bus provisions 

be better communicated to the public, 

including use of internet technology; (3) 

improve the enforcement of violations; 

and (4) improve the complaint and 

administrative appeals process. FTA has 

initiated the negotiated rulemaking 

process. 

SAFETEA–LU section 3023(f) 

amended 49 U.S.C., 5323(f) and 

provided new remedies for violations of 

the school bus transportation provision. 

The amended provision states that if the 

Secretary finds a violation, the Secretary 

shall bar a recipient or operator from 

receiving Federal transit assistance in an 

amount the Secretary considers 

appropriate. The previous provision 

stated that in the case of a violation, an 

applicant could not receive other mass 

transportation financial assistance. The 

new provision allows for more 

flexibility. Under the prior law the 

penalty was so severe that it was only 

rarely invoked. Under SAFETEA–LU 

the Secretary can determine a penalty 

less than a complete bar of financial 

assistance; the Secretary shall bar an 

operator from receiving assistance in an 

amount the Secretary considers 

appropriate. 

10. Revenue Bonds as Local Match 

Originally allowed in TEA–21, 

revenue bonds may now be used as 

local match, provided that the grantee 

maintains a greater level of local transit 

investment in the subsequent three 

years (as demonstrated in the TIP) than 

as in the current and prior two years. 

This provision in 5323(e) allows bond 

proceeds, secured by the revenues of a 

transit capital project, to be used as 

local match for that project. 

11. Government’s Share of Cost of 

Equipment and Facilities for ADA and 

Clean Air Act Compliance 

The provision allowing a 90 percent 

Federal share for the incremental cost of 

compliance with the Americans with 

Disabilities Act (ADA) or Clean Air Act 

(CAA) was expanded to include vehiclerelated facilities as well as equipment at 

section 5323(i). Under the provision 

allowing the Secretary ‘‘to determine 

through practicable administrative 

procedures, the costs of such equipment 

or facilities attributable to compliance 

with those Acts’’, FTA previously 

computed an 83 percent composite 

match for vehicle-related equipment. 

Given changes in technology, FTA may 

revisit that calculation, but for the time 

being, grantees may use the 83 percent 

share. FTA seeks public comment on 

the continued use of the 83 percent 

share. Also, the administratively 

determined 83 percent Federal share 

does not apply to facilities, for which 

the costs are more variable. Grantees 

may apply for the 90 percent share of 

the actual incremental costs of vehiclerelated facility improvements related to 

ADA or CAA compliance, but FTA 

requests that grantees provide 

supporting documentation for that 

request. Until FTA develops guidance, 

the eligibility of facility related costs at 

the higher share will be reviewed on a 

case-by-case basis as part of the grant 

application process. 

V. SAFETEA–LU: Summary of New 

Programs and Formulas 

A. New Freedom (49 U.S.C. 5317) 

The New Freedom program provides 

formula funding for new public 

transportation services and public 

transportation alternatives beyond those 

required by the Americans with 

Disabilities Act of 1990 that assist 

individuals with disabilities with 

transportation, including transportation 

to and from jobs and employment 

support services. Details are provided in 

section VI N below. 

B. Alternative Transportation in the 

Parks and Public Lands (49 U.S.C. 5320) 

SAFETEA–LU provides $22 million 

annually for alternative transportation 

projects to enhance the protection of 

national parks and public lands and 

increase the enjoyment of those visiting 

the parks and public lands by ensuring 

access to all, including persons with 

disabilities, improving conservation and 

park and public land opportunities in 

urban areas through partnering with 

State and local governments, and 

improving park and public land 

transportation infrastructure. The 

program is to be implemented by FTA 

in consultation with the Department of 

the Interior and other Federal land 

management agencies. 

The Secretary of Transportation will 

develop cooperative arrangements with 

the Secretary of the Interior that 

provide: (1) Technical assistance; (2) 

interagency and multidisciplinary teams 

to develop alternative transportation 

policy, procedures, and coordination; 

and, (3) procedures and criteria relating 

to the planning, selection, and funding 

of qualified projects and the 

implementation and oversight of 

selected projects. The Secretary of the 

Interior, after consultation with and in 

cooperation with the Secretary of 

Transportation, will determine the final 

selection and funding levels of an 

annual program of qualified projects. 

C. Small Starts (Component of the 

Section 5309 New Starts Program) 

SAFETEA–LU specifies a new 

category of projects to be funded 

separately out of the section 5309 New 

Starts program. This new category 

encompasses smaller scale projects, 

referred to as Small Starts, and has been 

authorized at a funding level of $200 

million per year, beginning in FY 2007. 

Projects requesting less than $75 

million in section 5309 New Starts 

funds with a total project cost less than 

$250 million will be eligible to receive 

funds under the new Small Starts 

provision. SAFETEA–LU lays out a 

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simplified evaluation and rating process 

that FTA will use to support funding 

decisions for Small Starts projects. The 

statute specifies both cost-based and 

project-definition-based eligibility 

requirements. The definition of fixed 

guideway capital project to be applied 

in Small Starts has been expanded to 

include substantial corridor bus projects 

that either operate in a separate right of 

way during peak hours or contain 

significant investment in corridor-based 

bus improvements. Small Starts projects 

must also be the result of planning and 

alternatives analysis. 

The transit program statute provides 

for an evaluation process for proposed 

Small Starts projects that include a 

subset of the evaluation criteria 

specified for traditional New Starts 

projects. The Small Starts evaluation 

criteria in the statute include: 

• Transit supportive land use, 

• Cost-effectiveness, 

• Reliability of cost and ridership 

estimates, 

• Effect on economic development, 

and 

• Other factors that the Secretary 

determines are appropriate. 

Currently, projects requesting less 

than $25 million in New Starts funding 

are exempt from the annual evaluation 

and rating process. Under the new 

statute, this exemption no longer 

applies once a regulation is issued for 

Small Starts. All eligible projects that 

meet the aforementioned Small Starts 

cost criterion will be rated and 

evaluated according to the Small Starts 

process. SAFETEA–LU also calls for a 

simplified project development process 

to be applied to Small Starts projects. 

SAFETEA–LU requires that FTA issue 

regulations establishing an evaluation 

and rating process for the Small Starts 

process. The Small Starts Advance 

Notice of Proposed Rulemaking will be 

issued soon. 

D. Alternatives Analysis (49 U.S.C. 

5339) 

Alternatives Analysis is no longer 

included in the eight percent of the 

section 5309 New Starts program that 

can be used for projects prior to FD and 

Construction. Instead, $25 million 

annually is provided for Alternatives 

Analysis grants under section 5339. As 

before, Metropolitan Planning funds and 

Urbanized Area Formula funds can also 

be used to support alternatives analysis. 

The procedures grantees should use to 

apply for section 5339 funds are referred 

to in section VI P below. 

E. Public Transportation on Indian 

Reservations (49 U.S.C. 5311(c)(1)) 

SAFETEA–LU creates a new Tribal 

Transit program as a takedown under 

the section 5311 program. Forty-five 

million dollars is authorized for fiscal 

years 2006–2009, growing from $8 

million annually to $15 million. The 

funds are to be apportioned to the 

Tribes, not to the States, for capital and 

operating assistance for rural transit and 

rural intercity bus service. FTA will 

develop procedures for the Tribal 

Transit program in consultation with 

tribal leaders and other interested 

stakeholders. 

In addition to funding under the 

Tribal Transit program, States must 

continue to include the Tribes in the 

equitable distribution of the section 

5311 funds apportioned to the States. 

Indian Tribes are established as direct 

recipients under section 5311 for 

funding from the States’ apportionment 

as well as from the new Tribal Transit 

program. 

See section VI K for additional 

information and for specific questions 

on which FTA seeks comments from 

Tribes and other interested 

stakeholders. 

F. Growing States and High Density 

States Formula Factors (49 U.S.C. 5340) 

SAFETEA–LU establishes new 

Growing States and High Density States 

formula factors to distribute funds to the 

section 5307 and section 5311 programs. 

One-half of the funds are made available 

under the Growing States factors and are 

apportioned by a formula based on State 

population forecasts for 15 years beyond 

the most recent Census. Amounts 

apportioned for each State are then 

distributed between UZAs and 

nonurbanzied areas based on the ratio of 

urbanized/nonurbanzied population 

within each State. The High Density 

States factors distribute the other half of 

the funds to States with population 

densities in excess of 370 persons per 

square mile. These funds are 

apportioned only to UZAs within those 

States. Additional details on the 

Growing States and High Density States 

formula and factors are discussed in 

section VI Q below. 

VI. Program Specific Information and 

Requests for Comments 

A. Metropolitan Planning Program (49 

U.S.C. 5303) 

Section 5303 authorizes a cooperative, 

continuous, and comprehensive 

planning program for transportation 

investment decision-making at the 

metropolitan area level. State 

Departments of Transportation and 

MPOs may receive funds for planning 

projects that support the economic 

vitality of the metropolitan area, 

especially by enabling global 

competitiveness, productivity, and 

efficiency; increasing the safety and 

security of the transportation system for 

motorized and non-motorized users; 

increasing the accessibility and mobility 

options available to people and for 

freight; protecting and enhancing the 

environment, promoting energy 

conservation, and improving quality of 

life; enhancing the integration and 

connectivity of the transportation 

system, across and between modes, for 

people and freight; promoting efficient 

system management and operation; and 

emphasizing the preservation of the 

existing transportation system. 

1. Authorized Amounts 

SAFETEA–LU authorizes the 

following amounts to carryout section 

5305 Planning programs for fiscal years 

2006–2009: 

As specified in law, 82.72 percent of 

the amounts authorized for section 5305 

are allocated to the Metropolitan 

Planning program. The table below 

shows the amount of funding authorized 

under section 5305 to be allocated to the 

Metropolitan Planning program. 


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2. Basis for Formula Apportionment 

FTA allocates Metropolitan Planning 

funds to the States according to a 

statutory formula. Eighty percent of the 

funds are distributed to the States as a 

basic allocation based on each State’s 

UZA population, based on the most 

recent Census. The remaining 20 

percent is provided to the States as a 

supplemental allocation based on an 

FTA administrative formula to address 

planning needs in the larger, more 

complex UZAs. The amount published 

for each State is a combined total of 

both the basic and supplemental 

allocation. 

3. Requirements 

The State allocates Metropolitan 

Planning funds to MPOs in UZAs or 

portions thereof to provide funds for 

projects included in an annual work 

program (the Unified Planning Work 

Program, or UPWP) that includes both 

highway and transit planning projects. 

Each State has either reaffirmed or 

developed, in consultation with their 

MPOs, a new allocation formula, as a 

result of the 2000 Census. The State 

allocation formula may be changed 

annually, but any change requires 

approval by the FTA regional office 

before grant approval. Program guidance 

for the Metropolitan Planning Program 

is found in FTA Circular C8100.1B, 

Program Guidance and Application 

Instructions for Metropolitan Planning 

Program Grants, dated October 25, 1996. 

FTA is in the process of updating this 

circular to incorporate changes resulting 

from language in SAFETEA–LU. 

4. Period of Availability 

The funds apportioned under the 

Metropolitan Planning program will 

remain available to be obligated by FTA 

to recipients for four fiscal years—

which includes the year of 

apportionment plus three additional 

years. Any apportioned funds that 

remain unobligated at the end of this 

period will revert to FTA for 

reapportionment under the program. 

5. Other Program Information 

Sections VII and VIII F of this 

document provide guidance and 

information specific to FTA planning 

programs, including the Metropolitan 

Planning program. Please refer to those 

sections for additional information 

relevant to this program. 

B. Statewide Planning and Research 

Program (49 U.S.C. 5304) 

This program provides financial 

assistance to States for Statewide 

planning and other technical assistance 

activities (including supplementing the 

technical assistance program provided 

through the Metropolitan Planning 

program), planning support for 

nonurbanized areas, research, 

development and demonstration 

projects, fellowships for training in the 

public transportation field, university 

research, and human resource 

development. 

1. Authorized Amounts 

SAFETA–LU authorizes the following 

amounts to carryout section 5305 

Planning programs for fiscal years 2006–

2009: 

As specified in law, 17.28 percent of 

the amounts authorized for section 5305 

are allocated to the Statewide Planning 

and Research program. The table below 

shows the amount of funding authorized 

under section 5305 to be allocated to the 

Statewide Planning and Research 

program. 

2. Basis for Apportionment Formula 

Funds are apportioned to States by a 

statutory formula that is based on 

information received from the latest 

decennial census, and the State’s UZA 

population as compared to the UZA 

population of all States. However, a 

State must receive at least 0.5 percent of 

the amount apportioned under this 

program. 

3. Requirements 

Funds are provided to States for 

statewide planning and research 

programs. 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 UZAs, as the State 

deems appropriate. Program guidance 

for the Statewide Planning and Research 

program is found in FTA Circular 

C8200.1, Program Guidance and 

Application Instructions for State 

Planning and Research Program Grants, 

dated December 27, 2001. FTA is in the 

process of updating this circular to 

incorporate changes resulting from 

language in SAFETEA–LU. 

4. Period of Availability 

The funds apportioned under the 

Statewide Planning and Research 

program will remain available to be 

obligated by FTA to recipients for four 

fiscal years’which include the year of 

apportionment plus three additional 

fiscal years. Any apportioned funds that 

remain unobligated at the end of this 

period will revert to FTA for 

reapportionment under the program. 

C. Urbanized Area Formula Program (49 

U.S.C. 5307) 

Section 5307 authorizes Federal 

capital and operating assistance for 

transit in UZAs. A UZA is an area with 

a population of 50,000 or more that has 

been defined and designated as such in 

the most recent decennial census by the 

U.S. Census Bureau. The Urbanized 

Area Formula Program also supports 

planning, in addition to that funded 

under the Metropolitan Planning 

program described above. Funding is 

apportioned directly to each UZA with 

a population of 200,000 or more, and to 

the State Governors for UZAs with 

populations between 50,000 and 

200,000. Generally, operating assistance 

is not an eligible expense for UZAs with 

populations of 200,000 or more. 

However, there are several exceptions to 

this restriction. The exceptions are 

described in section 2(e) below. 


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1. Authorized Amounts 

SAFETEA–LU authorizes the 

following amounts under section 5307 

to provide financial assistance to UZAs 

for fiscal years 2006–2009: 

SAFETEA–LU directs that there be a 

one percent takedown from the funds 

made available under section 5307. This 

takedown amount will be for 

apportionment under the new Small 

Transit Intensive Cities (STIC) formula. 

Under the formula for STIC, funds are 

apportioned to UZAs with a population 

less than 200,000 that meet or exceed 

the average level of service for all UZAs 

with populations between 200,000 and 

1,000,000. 

In addition to the funds made 

available to UZAs under section 5307, 

approximately 84 percent of the funds 

authorized for the new section 5340 

Growing States and High Density States 

formula factors will be apportioned to 

UZAs. The portion of authorized section 

5340 funds allocable to UZAs, based on 

the section 5340 formulas, is shown in 

the following table. 

Language in the SAFETEA–LU 

conference report indicates that FTA is 

to show a single apportionment amount 

for 5307, STIC and 5340. Accordingly, 

the apportionment amount for a UZA 

that will be displayed in the Urbanized 

Area Formula apportionment table to be 

published in the FTA FY 2006 

apportionments and allocations Notice, 

after FY 2006 funding is appropriated, 

will include regular 5307 funds (that 

amount remaining after the one percent 

takedown for STIC), STIC funds, and 

Growing States and High Density States 

funding for the area. Although a single 

UZA amount will be shown to comply 

with conference report language (as 

noted above), separate formula 

calculations will be used to generate the 

respective apportionment amounts for 

the 5307, STIC and 5340. 

2. Requirements 

Program guidance for the Urbanized 

Area Formula Program is presently 

found in FTA Circular C9030.1C, 

Urbanized Area Formula Program: Grant 

Application Instructions, dated October 

1, 1998, and supplemented by 

additional information or changes 

provided in this document. FTA is in 

the process of updating this circular to 

incorporate changes resulting from 

language in SAFETEA–LU. Several 

important program requirements are 

highlighted below. 

(a) Urbanized Area Formula 

Apportionments to Governors 

For small UZAs, the funds are 

apportioned to the Governor of each 

State for distribution. A single total 

Governor apportionment amount for the 

Urbanized Area Formula, STIC, and 

Growing States and High Density States 

will be shown in the Urbanized Area 

Formula Apportionment table to be 

published in the FTA FY 2006 

apportionments and allocations Notice, 

after FY 2006 funding is appropriated. 

The table will also show the 

apportionment amount attributable to 

each small UZA within the State. The 

Governor may determine the 

suballocation of funds among the small 

UZAs except that funds attributed to a 

small UZA that is located within the 

planning boundaries of a Transportation 

Management Area (TMA) must be 

obligated to that small UZA, as 

discussed in subsection (g) below. 

(b) STIC Apportionments 

SAFETEA–LU establishes a one 

percent set-aside program from section 

5307 that provides funding to UZAs 

under 200,000 in population that 

operate at a level of service equal to or 

above the industry average level of 

service for all UZAs with a population 

of at least 200,000 but not more than 

999,999, in one or more of six 

performance categories: Passenger miles 

traveled per vehicle revenue mile, 

passenger miles traveled per vehicle 

revenue hour, vehicle revenue miles per 

capita, vehicle revenue hours per capita, 

passenger miles traveled per capita, and 

passengers per capita. The data for these 

categories comes from the most current 

National Transit Database (NTD) 

reports. This data is used to determine 

a UZA’s eligibility under the STIC 

formula, and is also used in the STIC 

apportionment calculations. Because 

this performance data change with each 

year’s NTD reports the eligible STIC 

UZAs may vary each year. The 

performance categories for providing 

bonus grants to STIC were established 

in the September 2000 FTA report to 

Congress called ‘‘The Urbanized Area 

Formula Program and the Needs of 

Small Transit Intensive Cities.’’

(c) Transit Enhancements 

SAFETEA–LU requires that one 

percent of section 5307 funds 

apportioned to UZAs with populations 

of 200,000 or more be spent on eligible 

transit enhancement activities or 

projects. This requirement is now 

treated as a certification, rather than as 

a set-aside as was the case under TEA–

21. Grantees in UZAs with populations 

of 200,000 or more will be certifying 

they are spending not less than one 

percent of section 5307 funds for transit 

enhancements and will be required to 


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submit an annual report on how they 

spent the money. The report must be 

submitted with the Federal fiscal year’s 

final quarterly progress report in TEAMWeb. The report should include the 

following elements: (a) Grantee name, 

(b) UZA 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. The list of transit 

enhancement categories and activity 

line item (ALI) codes may be found in 

FTA Circular 9030.1C, Urbanized Area 

Formula Program: Grant Application 

Instructions, dated October 1, 1998, and 

in the table of Scope and ALI codes on 

TEAM-Web, which can be accessed at 

http://FTATEAMWeb.fta.dot.gov. 

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. Eligible enhancements 

include the following: (1) Historic 

preservation, rehabilitation, and 

operation of historic mass transportation 

buildings, structures, and facilities 

(including historic bus and railroad 

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

landscaping and other scenic 

beautification, including tables, 

benches, trash receptacles, and street 

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

access and walkways; (6) bicycle access, 

including bicycle storage facilities and 

installing equipment for transporting 

bicycles on mass transportation 

vehicles; (7) transit connections to parks 

within the recipient’s transit service 

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

access for persons with disabilities to 

mass transportation. 

It is the responsibility of the MPO to 

determine how the one percent for 

transit enhancements will be allotted to 

transit projects. The one percent 

minimum requirement does not 

preclude more than one percent being 

expended in a UZA for transit 

enhancements. However, items that are 

only eligible as enhancements—in 

particular, operating costs for historic 

facilities—may be assisted only within 

the one-percent funding level. 

(d) Transit Security Projects 

Each recipient of Urbanized Area 

Formula funds must certify that of the 

amount received each fiscal year, it will 

expend at least one percent on ‘‘public 

transportation security projects’’ or must 

certify that it has decided the 

expenditure is not necessary. For 

applicants not eligible to receive section 

5307 funds for operating assistance, 

only capital security projects may be 

funded with the one percent. 

SAFETEA–LU, however, expanded the 

definition of eligible ‘‘capital’’ projects 

to include specific crime prevention and 

security activities, including: (1) 

Projects to refine and develop security 

and emergency response plans; (2) 

projects aimed at detecting chemical 

and biological agents in public 

transportation; (3) the conduct of 

emergency response drills with public 

transportation agencies and local firstresponse agencies; and (4) security 

training for public transportation 

employees but excluding all expenses 

related to operations, other than such 

expenses incurred in conducting 

emergency drills and training. New ALI 

codes have been established for these 

four new capital activities. The one 

percent may also include security 

expenditures included within other 

capital activities, and, where the 

recipient is eligible, operating 

assistance. The relevant ALI codes 

would be used for those activities. 

Given the importance of transit 

security, FTA is often called upon to 

report to Congress and others on how 

grantees are expending Federal funds 

for security enhancements. To facilitate 

tracking of grantees’ security 

expenditures, which are not always 

evident when included within larger 

capital or operating activity line items 

in the grant budget, we have established 

a new non-additive (‘‘non-add’’) scope 

code for security expenditures—Scope 

991. The non-add scope is to be used to 

aggregate activities included in other 

scopes, and it does not increase the 

budget total. Section 5307 grantees 

should include this non-add scope in 

the project budget for each new section 

5307 grant application or amendment. 

Under this non-add scope, the applicant 

should repeat the full amount of any of 

the line items in the budget that are 

exclusively for security and include the 

portion of any other line item in the 

project budget that is attributable to 

security, using under the non-add scope 

the same line item used in the project 

budget. The grantee can modify the ALI 

description or use the extended text 

feature, if necessary, to describe the 

security expenditures. 

If the grantee has certified that it is 

not necessary to expend one percent for 

security, the section 5307 grant 

application must include information to 

support that certification. 

To summarize, a grant application 

requesting 5307 funds cannot be 

considered complete until the applicant 

has indicated whether it will or will not 

expend one percent of the 5307 funds 

being requested for security purposes. If 

the applicant has determined 

expenditure for security purposes is not 

necessary, an explanation must be 

provided. FTA is implementing these 

new grant application procedures in 

response to requests for information 

from the Inspector General. 

(e) FY 2006 Operating Assistance 

Several SAFETEA-LU provisions 

allow FY 2006 Urbanized Area Formula 

funds to be used for operating assistance 

in a UZA with a population of 200,000 

or more. They include: (1) Continuation 

of the operating assistance flexibility 

provisions of TEA–21 that allows transit 

systems in UZAs that crossed over the 

200,000 population threshold, as a 

result of the 2000 Census, to use 5307 

funds for operating assistance; (2) a 

provision applicable to portions of the 

UZAs between 200,000 and 225,000 in 

population that meet certain criteria; (3) 

a provision for certain local 

governmental authorities that lie outside 

the service area of the principal public 

transportation agency that serves the 

Houston, TX UZA; and (4) language that 

stipulates that section 5307 funds made 

available to the Anchorage UZA under 

fixed guideway tiers of the section 5307 

apportionment formula shall be made 

available to the Alaska Railroad for any 

costs related to passenger operations. In 

addition, language in section 3027(c)(3) 

of TEA–21, as amended, is still 

applicable and allows the use of funds 

for operating assistance by certain 

recipients of section 5307 funds, in a 

UZA at least 200,000 in population, that 

provide service exclusively for elderly 

persons and persons with disabilities 

and operate 20 or fewer vehicles. 

The requirements for each of the 

above provisions are described below. 

(1) Section 5307(b)(2) provides 

exception to the use of operating 

assistance in UZAs that grew in 

population from under 200,000 to over 

200,000, as a result of the 2000 Census. 

This exception allows for the use of 

funds for operating assistance in eligible 

UZAs at 100% of the grandfathered 

amount for FY 2005 funds, but this 

amount ‘‘phases down and out’’ to 50 

percent in FY 2006, 25 percent in FY 

2007, and zero percent in FY 2008. FTA 

has identified and listed all eligible 

UZAs in previous years apportionment 

notices (FY 2003–FY 2005), along with 

the maximum amount of the area’s 5307 

fund that could be used for operating. A 

similar list will be included in the FY 

2006 apportionment Notice. 

(2) Section 5307(b)(1)(E) provides for 

grants for the operating costs of 

equipment and facilities for use in 

public transportation in the Evansville, 

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IN-KY urbanized area, for a portion or 

portions of the UZA if: The portion of 

the UZA includes only one State; the 

population of the portion is less than 

30,000; and the grants will be not used 

to provide public transportation outside 

of the portion of the UZA. 

(3) Section 5307(b)(1)(F) provides 

operating costs of equipment and 

facilities for use in public transportation 

for local governmental authorities in 

areas which adopted transit operating 

and financing plans that became a part 

of the Houston, Texas UZA as a result 

of the 2000 decennial census of 

population, but lie outside the service 

area of the principal public 

transportation agency that serves the 

Houston UZA. 

(4) Section 5336(a)(2) prescribes the 

formula to be used to apportion section 

5307 funds to UZAs with population of 

200,000 or more. SAFETEA–LU 

amended 5336(a)(2) to add language that 

stated, ‘‘* * * except that the amount 

apportioned to the Anchorage urbanized 

area under subsection (b) shall be 

available to the Alaska Railroad for any 

costs related to its passenger 

operations.’’ This language has the effect 

of directing that funds apportioned to 

the Anchorage urbanized area, under 

the fixed guideway tiers of the section 

5307 apportionment formula, be made 

available to the Alaska Railroad, and 

that these funds may be used for any 

capital or operating costs related to its 

passenger operations. 

(5) Section 3027(c)(3) of TEA–21, as 

previously amended, provides an 

exception to the restriction on the use 

of operating assistance in a UZA with a 

population of 200,000 or more, by 

allowing transit providers/grantees that 

provide service exclusively to elderly 

persons and persons with disabilities 

and that operate 20 or fewer vehicles to 

use section 5307 funds apportioned to 

the UZA for operating assistance. The 

total amount of funding made available 

for this purpose under section 

3027(c)(3) of TEA–21, as amended, is 

$1.4 million. Transit providers/grantees 

eligible under this provision have 

already been identified. 

Unless one of the exceptions noted 

above applies, the use of FY 2006 

Urbanized Area Formula funds for 

operating assistance is available only to 

small UZAs. For small UZAs, there is no 

limitation on the amount of the 

Governor’s apportionment that may be 

used for operating assistance, and the 

Federal/local share ratio is 50/50. 

(f) Expansion of Local Match Eligibility 

SAFETEA–LU expands the categories 

of funds that can be used as local match 

for section 5307 projects. The newly 

eligible sources are advertising and 

concessions revenue, social service 

contract revenue, and revenue bonds 

proceeds. 

Pursuant to 49 U.S.C. 5307(e) the 

Federal share of a grant under Section 

5307 is 80 percent of net project cost for 

a capital project and 50 percent of net 

project cost for operating assistance. The 

remainder of the net project cost (i.e., 20 

percent and 50 percent, respectively) 

shall be provided from the following 

sources: 

1. In cash from non-Government 

sources other than revenues from 

providing public transportation 

services; 

2. From revenues derived from the 

sale of advertising and concessions; 

3. From an undistributed cash 

surplus, a replacement or depreciation 

cash fund or reserve, or new capital; 

4. From amounts received under a 

service agreement with a State or local 

social service agency or private social 

service organization; and 

5. Proceeds from the issuance of 

revenue bonds. In addition, funds from 

section 403(a)(5)(C)(vii) of the Social 

Security Act (42 U.S.C. 603(a)(5)(C)(vii)) 

can be used to match Urbanized Area 

Formula funds. 

(g) Designated Transportation 

Management Areas (TMA) 

Guidance for setting the boundaries of 

TMAs is in the joint transportation 

planning regulations codified at 23 CFR 

part 450 and 49 CFR part 613. In some 

cases, the TMA planning boundaries 

established by the MPO for the 

designated TMA includes one or more 

small UZAs. In addition, one small UZA 

(Santa Barbara, CA) has been designated 

as a TMA. In either of these situations, 

the Governor cannot allocate 

‘‘Governor’s Apportionment’’ funds 

attributed to the small UZAs to other 

areas; that is, the Governor only has 

discretion to allocate Governor’s 

Apportionment funds attributable to 

areas that are outside of designated 

TMA planning boundaries. 

The list of small UZAs included 

within the planning boundaries of 

designated TMAs is provided in the 

table below. 

The MPO must notify the Associate 

Administrator for Program Management, 

Federal Transit Administration, 400 

Seventh Street, SW., Washington, DC 

20590, in writing, no later than July 1 

of each year, to identify any small UZA 

within the planning boundaries of a 

TMA. 

(h) Urbanized Area Formula Funds 

Used for Highway Purposes 

Funds apportioned to a TMA are 

eligible for transfer to FHWA for 


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highway projects. However, before 

funds can be transferred, the following 

conditions must be 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. 

The MPO should notify the 

appropriate FTA Regional 

Administrator of its intent to use FTA 

funds for highway purposes, as 

prescribed in section VIII D below. 

Urbanized Area Formula funds that are 

designated by the MPO for highway 

projects will be transferred to and 

administered by FHWA. 

3. Basis for Formula Apportionment 

Urbanized Area Formula Program 

funds are apportioned based on 

legislative formulas. Different formulas 

are used for UZAs with populations of 

200,000 or more and UZAs with 

populations of less than 200,000. For 

UZAs of 50,000 to 199,999 in 

population, the formula is based simply 

on population and population density. 

For UZAs with populations of 200,000 

and more, the formula is based on a 

combination of bus revenue vehicle 

miles, bus passenger miles, fixed 

guideway revenue vehicle miles, and 

fixed guideway route miles, as well as 

population and population density. 

To comply with language in the 

SAFETEA–LU conference report, we 

will combine a UZA’s section 5307, 

STIC, and section 5340 apportionment 

amounts and publish a single amount. 

For technical assistance purposes we 

will identify the UZAs that received 

STIC funds each year and will make 

available breakouts of the funding 

allocated to each UZA under 5307, STIC 

and 5340 formulas, upon request to the 

regional office. 

4. Period of Availability 

Urbanized Area Formula funds will 

remain available to be obligated by FTA 

to recipients for four fiscal years—

which include the year of 

apportionment plus three additional 

years. Any apportioned funds that 

remain unobligated after this period will 

revert to FTA for reapportionment. 

5. Other Program Information 

Population and population density 

statistics from the 2000 Census and 

(when applicable) validated mileage and 

transit service data from transit 

providers’ 2004 NTD Report Year will 

be used to calculate a UZA’s FY 2006 

Urbanized Area Formula apportionment 

when FY 2006 funds are appropriated. 

We will calculate dollar unit values 

for the formula factors used in the 

Urbanized Area Formula program 

apportionment. These values represent 

the amount of money each unit of a 

factor is worth in the FY 2006 

apportionment. The unit values change 

each year as a result of changes in the 

data used to calculate a particular year’s 

apportionments. The FTA 

apportionment amount for a UZA may 

be replicated by multiplying the dollar 

unit value by the appropriate formula 

factor. 

D. Clean Fuels Grant Program (49 U.S.C. 

5308) 

SAFETEA–LU establishes the Clean 

Fuels Grant Program—formerly the 

Clean Fuels Formula Program under 

TEA–21—to support the use of 

alternative fuels in air quality 

maintenance or nonattainment areas for 

ozone or carbon monoxide. 

1. Total Allocations 

SAFETA–LU authorizes the following 

amounts for the Clean Fuels Grant 

Program for fiscal years 2006–2009. 

2. Basis for Allocation of Funds 

Under SAFETEA–LU, funding for the 

Clean Fuels program is now 

appropriated on a discretionary basis 

rather than by formula. [Note: Congress 

never appropriated funds for the 

formula program authorized by TEA–

21.] 

SAFETEA–LU includes 16 projects to 

be funded through the Clean Fuels 

program in section 3044, Projects for 

Bus and Bus-Related Facilities and 

Clean Fuels Buses. Table 5 displays the 

SAFETEA–LU authorized Clean Fuels 

earmarked projects. 

It is important to note that these 

allocations are subject to be changed by 

subsequent appropriations acts and 

additional projects may be earmarked 

during the appropriations process. Final 

Clean Fuels program allocations for FY 

2006 will be published after enactment 

of the FY 2006 Appropriations Act. 

3. Requirements 

Clean Fuels program funds may be 

made available to any grantee in a UZA 

that is designated as maintenance or 

nonattainment area for ozone or carbon 

monoxide as defined in the Clean Air 

Act. Eligible recipients include section 

5307 designated recipients as well as 

recipients in small UZAs. In the case of 

a small UZA, the State in which the area 

is located will act as the recipient. 

Eligible projects include the purchase 

or lease of clean fuel buses (including 

buses that employ a lightweight 

composite primary structure), the 

construction or lease of clean fuel buses 

or electrical recharging facilities and 

related equipment for such buses, and 

construction or improvement of public 

transportation facilities to accommodate 

clean fuel buses. 

If a recipient wishes to use funds 

designated under the program in 

SAFETEA–LU for eligible project 

activities outside the scope of a project 

designation, the recipient must submit 

its request for reprogramming to the 

House and Senate Authorizing 

Committees for resolution. Changes to 

designations that are in statute, as 

opposed to report language, can only be 

made in law. If in the future, Congress 

designates projects in report language, 

FTA will not reprogram the projects 

without direction from the 

Appropriations Committees. 

Unless otherwise specified in law, 

grants made under the Clean Fuels 

program must meet all other eligibility 

requirements as outlined in section 

5308. 

4. Period of Availability 

Funds designated for specific Clean 

Fuels Program projects will remain 

available for obligation for three fiscal 

years, which includes the year of 

appropriation plus two additional fiscal 

years. Clean Fuels funds not obligated 

in a FTA grant for their original purpose 

at the end of the period of availability 

will generally be made available for 

other projects. 

E. Capital Investments Program (49 

U.S.C. 5309)—Fixed Guideway 

Modernization 

This program provides capital 

assistance for the modernization of 

existing fixed guideway systems. Funds 


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are allocated by a statutory formula to 

UZAs with fixed guideway systems that 

have been in operation for at least seven 

years. A ‘‘fixed guideway’’ refers to any 

transit service that uses exclusive or 

controlled rights-of-way or rails, entirely 

or in part. The term includes heavy rail, 

commuter rail, light rail, monorail, 

trolleybus, aerial tramway, inclined 

plane, cable car, automated guideway 

transit, ferryboats, that portion of motor 

bus service operated on exclusive or 

controlled rights-of-way, and highoccupancy-vehicle (HOV) lanes. 

1. Authorized Amounts 

SAFETEA–LU authorizes the 

following amounts for the Fixed 

Guideway Modernization for fiscal years 

2006–2009: 

2. Basis for Formula Apportionment 

The formula for allocating the Fixed 

Guideway Modernization funds 

contains seven tiers. The apportionment 

of funding under the first four tiers is 

based on amounts specified in law and 

NTD data used to apportion funds in FY 

1997. Funding under the last three tiers 

is apportioned based on the latest 

available data on route miles and 

revenue vehicle miles on segments at 

least seven years old, as reported to the 

NTD. Because the Fixed Guideway 

Modernization apportionment formula 

did not change from TEA–21 to 

SAFETEA–LU, you may refer to Table 8 

of the FTA Fiscal Year 2005 

Apportionments, Allocations and 

Program Information Notice for 

additional information and details on 

the formula. 

3. Requirements 

Fixed Guideway Modernization funds 

must be used for capital projects to 

maintain, modernize, or improve fixed 

guideway systems. Eligible UZAs (those 

with a population of 200,000 or more) 

with fixed guideway systems that are at 

least seven years old are entitled to 

receive Fixed Guideway Modernization 

funds. A threshold level of more than 

one mile of fixed guideway is required 

in order to receive Fixed Guideway 

Modernization funds. Therefore, UZAs 

reporting one mile or less of fixed 

guideway mileage under the NTD are 

not included. Program guidance for 

Fixed Guideway Modernization is 

presently found in FTA Circular 

C9300.1A, Capital Program: Grant 

Application Instructions, dated October 

1, 1998. FTA is in the process of 

updating this circular to incorporate 

changes resulting from language in 

SAFETEA–LU. 

4. Period of Availability 

Funds apportioned under the Fixed 

Guideway Modernization Program will 

remain available to be obligated by FTA 

to recipients for four fiscal years—

which include the year of 

apportionment plus three additional 

years. Any apportioned funds that 

remain unobligated at the end of this 

period will revert to FTA for 

reapportionment under the program. 

5. Other Program Information 

Generally, there were no changes to 

the formula or eligibility criteria for the 

program in SAFETEA–LU from those 

specified in TEA–21. However, sections 

5337(f) (g) of SAFETEA–LU provides for 

the inclusion of Morgantown, WV 

(population 55,997) as an eligible UZA 

for purposes of apportioning fixed 

guideway modernization funds. Also, 

language in section 5336(b) has the 

impact of directing FTA to use 60 

percent of the directional route miles 

attributable to the Alaska Railroad 

passenger operations system to calculate 

apportionments for the Anchorage, AK 

UZA under the 5307 and Fixed 

Guideway Modernization formulas. 

F. Capital Investments (49 U.S.C. 

5309)—Bus and Bus-Related Facilities 

The Bus and Bus-Related Facilities 

program provides capital assistance for 

new and replacement buses and related 

equipment and facilities. 

1. Authorized Amounts 

SAFETEA–LU authorizes the 

following amounts for the Bus and BusRelated Facilities program for fiscal 

years 2006–2009. 

2. Basis for Allocation of Funds 

Funding is appropriated on a 

discretionary basis. SAFETEA–LU 

includes 646 earmarked projects to be 

funded through the Bus Program in 

section 3044, Projects for Bus and BusRelated Facilities and Clean Fuels 

Buses. Table 4 displays the SAFETEA–

LU authorized earmarked projects. 

It is important to note that these 

allocations are subject to be changed by 

subsequent appropriations acts and 

additional projects may be earmarked 

during the appropriations process. Final 

Bus and Bus-Related Facilities program 

allocations for FY 2006 will be 

published after enactment of the FY 

2006 Appropriations Act. 

3. Requirements 

Eligible capital projects include the 

acquisition of buses for fleet and service 

expansion, bus maintenance and 

administrative facilities, transfer 

facilities, bus malls, transportation 

centers, intermodal terminals, park-andride stations, acquisition of replacement 

vehicles, bus rebuilds, bus preventive 

maintenance, passenger amenities such 

as passenger shelters and bus stop signs, 

accessory and miscellaneous equipment 

such as mobile radio units, supervisory 

vehicles, fare boxes, computers, and 

shop and garage equipment. 

A general provision in the 

appropriations acts of FY 2004 (section 

547) and FY 2005 (section 125) 

contained language making the 

earmarked projects eligible under the 

program ‘‘notwithstanding any other 

provision of law.’’ SAFETEA–LU did 

not include a similar ‘‘Notwithstanding’’

provision, but the wording of certain 

bus program earmarks included 

expanded eligibility. The FY 2006 

Appropriations Act might modify some 

of the authorized earmarks. Unless 

stated in law to the contrary, projects 


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earmarked prior to FY 2004 must 

conform to the eligibility requirements 

of the Bus and Bus-Related Facilities 

program. 

If a recipient wishes to apply for use 

of funds designated under the Bus and 

Bus-Related Facilities program in 

SAFETEA–LU for project activities 

outside the scope of the project 

designation, the recipient must submit 

its request for reprogramming to the 

House and Senate Authorizing 

Committees for resolution. Changes to 

earmarks that are in statute, as opposed 

to report language, can only be made in 

law. FTA will not reprogram projects 

earmarked by Congress in report 

language without direction from the 

Appropriations Committees. 

Grants made under the Bus and BusRelated Facilities program must meet all 

other eligibility requirements as 

outlined in section 5309 unless 

otherwise specified in law. 

Program guidance for Bus and BusRelated Facilities is found in FTA 

Circular C9300.1A, Capital Program: 

Grant Application Instructions. FTA is 

in the process of updating this circular 

to incorporate changes resulting from 

language in SAFETEA–LU. 

4. Period of Availability 

Funds designated for specific Bus 

Program projects remain available for 

obligation for three fiscal years—which 

includes the fiscal year in which the 

amount is made available or 

appropriated plus two additional years. 

Bus and Bus-Related Facilities funds not 

obligated in a FTA grant for their 

original purpose by the end of this 

period will generally be made available 

for other projects. 

Prior year unobligated balances for 

Bus and Bus-Related Facilities 

allocations in the amount of 

$723,995,747 remain available for 

obligation in FY 2006. The amounts that 

remain unobligated as of September 30, 

2005, can be found in Table 6. Projects 

appropriated prior to FY 2004 and 

extended in the FY 2006 Appropriations 

Act or accompanying Conference Report 

will be included in the FY 2006 

Apportionments and Allocations Notice. 

5. Other Program Information 

The Bus Program remains largely 

unchanged with the passage of 

SAFETEA–LU; however, one significant 

change is the inclusion of private 

companies engaged in public 

transportation and private non-profit 

organizations as eligible subrecipients of 

FTA grants. Prior to SAFETEA–LU, 

private non-profit entities could only 

receive FTA funds if they were selected 

by a public authority through a 

competitive process, and private 

operators were not eligible 

subrecipients. Private operators may 

now receive FTA funds as a passthrough without competition if they are 

included in a program of projects 

submitted by the designated public 

authority acting as the direct recipient 

of a grant. 

G. Capital Investment Program (49 

U.S.C. 5309)—New Starts 

SAFETEA–LU made several changes 

in the way funding is allocated for New 

Starts projects. Beginning in FY 2007, 

$200,000,000 each year is designated for 

‘‘Small Starts’’ (section 5309(e)) projects 

with a New Starts share of less than 

$75,000,000 and a net project cost of 

less than $250,000,000. Major Capital 

Investment grants of $75,000,000 or 

more (section 5309 (d)) will receive $7.4 

billion over the five years. In addition, 

SAFETEA–LU authorizes 38 projects for 

FD and 264 projects for PE. The total 

amount of FY 2006–2009 funding for 31 

existing FFGA projects is 

$2,136,764,604. Fifty-two additional 

New Starts projects are authorized for a 

total of $3,237,700,000 during 

SAFETEA–LU. 

Congress allocated $10,500,000 to 

Alaska and Hawaii for ferryboats each 

year of TEA–21 and for FY 2005. 

SAFETEA–LU allocates $15,000,000 to 

Alaska and Hawaii for ferryboats for FY 

2006–FY 2009. The allocation is split 

equally between Alaska and Hawaii. 

SAFETEA–LU also makes $5,000,000 

available for each year, FY 2006–FY 

2009, to the Denali Commission in 

Anchorage, Alaska under the terms of 

section 307(e) of the Denali Commission 

Act of 1998 (42 U.S.C. 3121) for docks, 

waterfront development projects and 

related transportation infrastructure. 

The Commission was established to (1) 

deliver the services of the Federal 

Government cost effectively, (2) provide 

job training and other economic 

development services in rural 

communities, and (3) promote rural 

development, provide power generation 

and transmission facilities, modern 

communication systems, water and 

sewer systems and other infrastructure 

needs. 

1. Authorized Amounts 

SAFETEA–LU authorizes the 

following amounts for the New Starts 

program for fiscal years 2006–2009. 

2. Requirements 

Because New Starts projects are 

earmarked in law rather than report 

language, reprogramming for a purpose 

other than that specified must also 

occur in law. New Starts projects are 

subject to a complex set of approvals 

related to planning and project 

development set forth in 49 CFR part 

611. Program guidance for New Starts is 

found in FTA Circular C9300.1A, 

Capital Program: Grant Application 

Instructions, dated October 1, 1998; and 

C5200.1A, Full Funding Grant 

Agreement Guidance, dated December 

5, 2002. FTA is in the process of 

updating these circulars to incorporate 

changes resulting from language in 

SAFETEA–LU. 

3. Period of Availability 

New Starts funds remain available for 

three fiscal years—which includes the 

fiscal year the funds are made available 

or appropriated plus two additional 

years. Funds may be extended by 

Congress or made available for other 

projects after the period of availability 

has expired. 

4. Other Program Information and 

Highlights 

Prior year unobligated allocations for 

New Starts in the amount of 

$557,727,154 remain available for 

obligation in FY 2006. This amount 

includes $112,052,679 in FY 2004 and 

$445,674,475 in FY 2005 unobligated 

allocations. These unobligated amounts 

are displayed in Table 7. 

H. Special Needs of Elderly Individuals 

and Individuals with Disabilities 

Program (49 U.S.C. 5310) 

This program provides formula 

funding to States for capital projects to 

assist in meeting the transportation 

needs of the elderly and persons with 

disabilities. The State (or Statedesignated agency) administers the 

section 5310 program. The State’s 

responsibilities include: notifying 

eligible local entities of funding 


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availability; developing project selection 

criteria; determining applicant 

eligibility; selecting projects for funding; 

and ensuring that all subrecipients 

comply with Federal requirements. 

Eligible nonprofit organizations or 

public bodies must apply directly to the 

designated State agency for assistance 

under this program. 

FTA invites comment regarding 

technical assistance or training that 

would be helpful to grantees in 

implementing the Special Needs of 

Elderly Individuals and Individuals 

with Disabilities program. Additionally, 

FTA seeks comment on strategies and 

measures that could be employed to 

evaluate the successes of this program. 

1. Authorized Amounts 

SAFETEA–LU authorizes the 

following amounts for the Special Needs 

of Elderly Individuals and Individuals 

with Disabilities program for fiscal years 

2006–2009. 

2. Basis for Formula Apportionment 

Funds are allocated according to a 

formula based on the number of elderly 

individuals and individuals with 

disabilities in each State using Census 

2000 data. 

3. Requirements and Eligible Expenses 

Funds are available to support the 

capital costs of transportation services 

for older adults and people with 

disabilities. Uniquely under this 

program, eligible capital costs include 

the acquisition of service. Capital 

assistance is provided on an 80 percent 

Federal, 20 percent local matching basis 

except that SAFETEA–LU allows states 

eligible for the sliding scale match 

under FHWA programs to use that 

match ratio for section 5310 capital 

projects. Funds provided under other 

Federal programs (other than those of 

the Department of Transportation, with 

the exception of the Federal Lands 

Highway Program established by section 

204 of Title 23 U.S.C.) may be used as 

match for capital funds provided under 

section 5310. Revenue from service 

contracts may also be used as local 

match. 

Those eligible to receive section 5310 

funding include private nonprofit 

agencies, public bodies approved by the 

state to coordinate services for elderly 

persons and persons with disabilities, or 

public bodies which certify to the 

Governor that no nonprofit corporations 

or associations are readily available in 

an area to provide the service. 

States may use up to ten percent of 

their annual apportionment to 

administer, plan, and provide technical 

assistance for a funded project. 

Beginning in FY 2006, no local share is 

required for these program 

administrative funds. FTA previously 

administratively allowed States to use 

ten percent of the capital funds for 

administration at the capital matching 

share, but SAFETEA–LU specifically 

allows ten percent for administration. 

The section 5310 program was 

previously subject to the requirements 

of section 5309 to the extent the 

Secretary determined appropriate. 

SAFETEA–LU changed the applicable 

requirements to 5307, to the extent the 

Secretary determines appropriate. FTA 

is not applying any new requirements to 

the section 5310 program as a result of 

this technical change. 

4. Planning and Consultation 

Beginning in FY 2007, the State 

recipient must certify that: the projects 

selected were derived from a locally 

developed, coordinated public transithuman services transportation plan; 

and, the plan was developed through a 

process that included representatives of 

public, private, and nonprofit 

transportation and human services 

providers and participation by the 

public. Projects in the locally 

developed, coordinated public transithuman services transportation plan 

must be integrated into and consistent 

with the metropolitan and state 

planning processes. Finally, each grant 

recipient must certify that allocations of 

the grant to subrecipients are distributed 

on a fair and equitable basis. 

The planning requirement is also a 

requirement in two additional programs. 

The Job Access Reverse Commute 

program (in FY 2006) and the New 

Freedom program (in FY 2007) will also 

be required to have a coordinated 

human service plan. It is anticipated 

that most areas will develop one 

consolidated plan for all the programs, 

which may include separate elements 

and other human service transportation 

programs. FTA seeks comment on the 

specific aspects of the collaborative 

planning process (for example, 

participants, elements, measures, etc.). 

FTA also seeks comment on the 

relationship between the public transithuman services plans and other 

planning processes. 

Program guidance is found in FTA C 

9070.1E, dated October 1, 1998. FTA is 

in the process of updating this circular 

to incorporate changes resulting from 

language in SAFETEA–LU. 

5. Period of Availability 

There is no statutory period of 

availability for section 5310. Given the 

relatively simple nature of the state 

administered program with many 

subrecipients receiving small capital 

grants, FTA previously allowed only 

one year of availability. Given the new 

common planning requirement with 

JARC and New Freedom, beginning with 

FY 2006 funding, FTA is extending the 

period of availability for section 5310 to 

three years, which includes the year 

funds are apportioned plus two 

additional years, consistent with the 

other two programs. 

6. Other Program Information 

Under Title III of SAFETEA–LU 

section 3012(b), the following states are 

named as eligible to use up to 33 

percent of their section 5310 funds 

starting in FY 2006 for operating 

expenses: Wisconsin, Alaska, 

Minnesota, and Oregon. FTA is 

authorized to select an additional three 

states to participate in the pilot. FTA 

issued a separate Federal Register 

Notice on November 14, 2005, 

specifying the guidelines for States 

participation in the pilot and soliciting 

proposals from states to participate. If 

possible, given the timing of the FY 

2006 appropriations act, we anticipate 

announcing the participants with the FY 

2006 apportionments. 

7. Transfer of 5310 Funds to Other FTA 

Programs 

Section 5310 funds may be transferred 

to the section 5311 or the section 5307 

program, but only to implement projects 

competitively selected under the section 

5310 program. The purpose of the 

transfer provision under SAFETEA–LU 

is for administrative streamlining of 

grant making, not to supplement the 

resources available under the Urbanized 

Area Formula or Non-urbanized Area 

Formula programs, as was the case 

under TEA–21. A State that transfers 

section 5310 funds to section 5307 must 

certify that each project for which the 


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funds are transferred has been 

coordinated with private nonprofit 

providers of services. FTA has 

established a new scope code (641) to 

track 5310 projects included within a 

section 5307 or 5311 grant. Transfer to 

section 5307 or 5311 is permitted but 

not required. FTA will also award 

stand-alone section 5310 grants with the 

section code 16 in the project number. 

I. Nonurbanized Area Formula Program 

(49 U.S.C. 5311) 

This program provides formula 

funding to States and Indian Tribes for 

the purpose of supporting public 

transportation in areas with a 

population of less than 50,000. Funding 

may be used for capital, operating, State 

administration, and project 

administration expenses. Each State 

prepares an annual program of projects, 

which must provide for fair and 

equitable distribution of funds within 

the States, including Indian 

reservations, and must provide for 

maximum feasible coordination with 

transportation services assisted by other 

Federal sources. SAFETEA–LU 

identifies Indian Tribes as direct 

recipients under section 5311. 

1. Authorized Amounts 

SAFETA–LU authorizes the following 

amounts for the Nonurbanized Areas 

Formula program. 

In addition to the funds made 

available to States under section 5311, 

approximately 16 percent of the funds 

authorized for the new section 5340 

Growing States and High Density States 

formula factors will be apportioned to 

States for use in nonurbanized areas. 

The portion of the section 5340 

authorized funds allocable to States for 

nonurbanized areas is shown in the 

following table. 

The States receive funding for 

nonurbanized areas only from the 

Growing States portion of the 5340 

formulas. Fifty percent of the funds 

authorized for section 5340 are allotted 

to Growing States and the other 50 

percent goes to High Density. The High 

Density formula allocates all of its funds 

to urbanized areas. 

Funding for the Tribal Transit 

Program, oversight, and the Rural 

Transportation Assistance Program 

(RTAP) will be taken off the top before 

amounts are apportioned to the States. 

Takedowns for Tribal Transit and RTAP 

based on authorized funding levels are 

shown below. 

2. Basis for Formula Apportionment 

SAFETEA–LU changed the formula 

for section 5311. Starting in FY 2006, 

twenty percent of the funds available 

will be apportioned to the states based 

on land area in nonurbanized areas with 

no state receiving more than 5 percent 

of the amount apportioned. The 

remaining eighty percent will be 

apportioned based on nonurbanized 

population, as before. The effect of this 

change is to provide additional 

resources to low density States. 

3. Requirements 

The Nonurbanized Area Formula 

Program provides capital, operating and 

administrative assistance for areas with 

a population under 50,000. The Federal 

share for capital assistance is 80 percent 

and for operating assistance is 50 

percent, except that SAFETEA–LU 

allows states eligible for the sliding 

scale match under FHWA programs to 

use that match ratio for section 5311 

capital projects and 62.5 percent of the 

sliding scale capital match ratio for 

operating projects. 

Each State must spend no less than 15 

percent of its FY 2005 Nonurbanized 

Area Formula apportionment for the 

development and support of intercity 

bus transportation, unless the State 

certifies, after consultation with affected 

intercity bus service providers, that the 

intercity bus service needs of the State 

are being adequately met. SAFETEA–LU 

added this requirement for consultation 

with the industry to strengthen the 

certification requirement. FTA also 

encourages consultation with other 

stakeholders, such as communities 

affected by loss of intercity service. 

Program guidance for the 

Nonurbanized Area Formula Program is 

found in FTA C 9040.1E, Nonurbanized 

Area Formula Program Guidance and 

Grant Application Instructions, dated 

October 1, 1998. FTA is in the process 

of updating this circular to incorporate 

changes resulting from language in 

SAFETEA–LU. 

4. Period of Availability 

Funds apportioned to States under the 

Nonurbanized Area Formula Program 

will remain available for three fiscal 

years—which includes the fiscal year 

the funds were apportioned plus two 

additional years. Any funds that remain 

unobligated at the end of this period 

will revert to FTA for allocation among 

the States under the Nonurbanized Area 

Formula Program. 

5. Other Program Information 

SAFETEA–LU added a requirement to 

provide rural transit data to the NTD. 

Each recipient under the section 5311 

program shall submit an annual report 

to the Secretary, containing information 


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on capital investments, operations, and 

service provided with funds received 

under the section 5311 program. 

SAFETEA–LU specifies that the report 

should include information on total 

annual revenue, sources of revenue, 

total annual operating costs, total 

annual capital costs, fleet size and type, 

and related facilities, revenue vehicle 

miles, and ridership. In consultation 

with State Departments of 

Transportation, FTA previously 

developed a voluntary state-based rural 

data module for the NTD. The existing 

NTD Rural Data Reporting Module 

manual and reporting instructions can 

be reviewed on the NTD Web site, 

http://www.ntdprogram.com. For each 

5311 subrecipient, the State Department 

of Transportation will complete a onepage form of basic data. The existing 

module will serve as a basis for 

reporting requirements for the new, 

mandatory Rural Reporting Module of 

the NTD. Pursuant to SAFETEA–LU, 

mandatory reporting will begin with the 

FY 2006 NTD Report Year. The first 

reports will be due on October 28, 2006, 

for those States with fiscal years ending 

between January 1 and June 30, 2006; on 

January 28, 2007, for those States with 

fiscal years ending between July 1 and 

September 30, 2006; and April 30, 2007, 

for those States with fiscal years ending 

between October 1 and December 31, 

2006. To enter data and receive 

additional instructions, State 

Departments of Transportation can go to 

the NTD Web site. FTA requests public 

comment on whether the State-based 

rural data module should serve as the 

basis for the new mandatory reporting 

requirements. 

J. Rural Transportation Assistance 

Program (49 U.S.C. 5311(b)(2)) 

This program provides funding to 

assist in the design and implementation 

of training and technical assistance 

projects, research, and other support 

services tailored to meet the needs of 

transit operators in nonurbanized areas. 

1. Authorized Amounts 

SAFETEA–LU changes the source of 

funding for RTAP. Previously funded 

under the National Planning and 

Research Program, starting in FY 2006, 

RTAP is funded as a two percent 

takedown from the amount authorized 

and appropriated for section 5311. The 

takedown amount based on funds 

authorized for section 5311 for fiscal 

years 2006–2009 is as follows: 

Of the takedown, FTA may use up to 

15 percent for projects of a national 

scope. The remaining 85 percent is 

allocated to the States. 

2. Basis for Formula Apportionment 

For FY 2006, FTA will use the current 

administrative formula. Funds are 

allocated to the States by an 

administrative formula consisting of a 

$65,000 floor for each State ($10,000 for 

territories), with the balance allocated 

based on nonurbanized population in 

the 2000 Census. The floor was raised 

from $50,000 to $65,000 in FY 1999. 

Comments are invited on whether the 

floor should again be raised and 

whether the low density portion of the 

section 5311 formula should be used. 

3. Program Requirements 

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 a State’s 

administration of the Nonurbanized 

Area Formula Program. 

4. Period of Availability 

Funds apportioned to States under 

RTAP will remain available for three 

fiscal years—which includes the fiscal 

year the funds were apportioned plus 

two additional years. Any funds that 

remain unobligated after the end of this 

period will revert to FTA for allocation 

among the States under the RTAP. 

5. Other Program Information 

The National RTAP project is 

administered by the American Public 

Works Association in consortium with 

the Community Transportation 

Association of America, under a 

cooperative agreement re-competed at 

five-year intervals. The projects are 

guided by a project review board of 

managers of rural transit systems and 

State Department of Transportation 

rural transit programs. National RTAP 

resources have also supported the 

biennial TRB National Conference on 

Rural Public and Intercity Bus 

Transportation. The percentage 

takedown for RTAP, combined with 

rising funding levels for section 5311, 

make additional resources available for 

national projects such as providing 

technical assistance for the new tribal 

transit program. FTA invites comments 

on use of the National RTAP resource. 

K. Public Transportation on Indian 

Reservations Program (49 U.S.C. 

5311(c)(1)) 

SAFETEA–LU creates a new Tribal 

Transit Program as a takedown under 

the section 5311 program. Indian Tribes 

are defined as eligible direct recipients. 

The funds are to be apportioned for 

grants to Indian Tribes for any purpose 

eligible under section 5311, which 

includes capital and operating 

assistance for rural public transit 

services. Support for rural intercity bus 

service, including planning and 

marketing, is eligible. Planning for rural 

transit is not eligible. FTA will develop 

procedures for the Tribal Transit 

program in consultation with tribal 

leaders and other interested 

stakeholders and will provide an 

opportunity for the public to comment 

on its new methodology. 

1. Authorized Funding 

The takedown amount authorized for 

Tribal Transit for fiscal years 2006–2009 

is as follows: 


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2. Basis for Formula Apportionment 

SAFETEA–LU does not specify a basis 

for formula apportionment. FTA will 

develop procedures for allocating the 

funds in consultation with the Tribes 

and with opportunity for public 

comment. An interim measure would be 

to allocate FY 2006 funds based on 

responses to a request for letters of 

interest. FTA requests comments on the 

feasibility of allocating FY 2006 funds 

based on this approach. Because 

planning is not an eligible activity 

under the program, FTA is considering 

limiting transit participation to Tribes 

which already have transit options or 

which have already conducted planning 

and are prepared to implement new 

transit service. We seek comments on 

what criteria should be considered in 

selecting Tribes to receive funding and 

what factors should be used in 

allocating available funds among 

successful applicants. 

3. Requirements 

Grants may be made to Indian Tribes 

for any purpose eligible under section 

5311. Eligibility under section 5311 

includes capital and operating 

assistance for local public transportation 

service in other than urbanized areas. 

Planning is not an eligible activity 

except under section 5311(e), which 

allows States to use 15 percent of a 

States’ apportionment for 

administration, planning, and technical 

assistance, and 5311(f), which allows 

planning for intercity bus 

transportation. Support for rural 

intercity bus service is eligible under 

section 5311. 

FTA may establish the terms and 

conditions for the program. FTA seeks 

comments about appropriate terms and 

conditions for the program. We 

especially invite comments from Tribes 

that previously received FTA funding 

about which requirements we should 

consider waiving for the Tribal Transit 

program. 

4. Period of Availability 

Funds will remain available for three 

fiscal years, which includes the fiscal 

year the funds were apportioned or 

appropriated plus two additional years. 

Any funds that remain unobligated after 

this period will revert to FTA for 

reallocation among the Tribes. 

5. Other Program Information 

The funds set aside for Indian Tribes 

are not meant to replace or reduce funds 

that Indian Tribes receive from states 

through the section 5311 program but 

are to be used to enhance public 

transportation on Indian reservations. 

Funds allocated to Tribes by the States 

may be included in the State’s section 

5311 application or awarded by FTA in 

a grant directly to the tribe. We 

encourage Tribes intending to apply to 

FTA as direct recipients to contact the 

appropriate FTA regional office at the 

earliest opportunity. 

Planning for Tribal Transit projects 

may be funded under the following 

programs: FTA and FHWA Statewide 

Planning programs; the State’s 

apportionment under section 5311; and 

the Indian Reservation Roads Program 

(IRR). Technical assistance for Tribes 

may be available from the State DOT 

using the State’s allocation of RTAP or 

funds available for State administration 

under section 5311, from the Tribal 

Transportation Assistance Program 

(TTAP) Centers supported by FHWA, 

and from the Community 

Transportation Association of America 

under a program funded by the United 

States Department of Agriculture 

(USDA). The National RTAP will also be 

developing new resources for Tribal 

Transit. 

L. National Research Program (49 U.S.C. 

5314) 

FTA’s National Research Programs 

include the National Research and 

Technology Program (NRTP), Project 

ACTION, the National Technical 

Assistance Center for Senior 

Transportation, and the Medical 

transportation grants program. 

Through funding under these 

programs, FTA seeks to deliver 

solutions that improve public 

transportation. FTA’s Strategic Research 

Goals are to provide transit research 

leadership, increase transit ridership, 

improve capital and operating 

efficiencies, improve safety and 

emergency preparedness, and to protect 

the environment and promote energy 

independence. For more information 

contact Bruce Robinson, Office of 

Research, Demonstration and 

Innovation, at (202) 366–4209. 

1. Authorized Funding 

SAFETEA–LU authorizes the 

following amounts for the National 

Research Program for fiscal years 2006–

2009. 

SAFETEA–LU project authorizations 

under the National Research Program 

are listed in Table 8. 

All research and research and 

development projects are subject to a 

2.6% reduction for the Small Business 

Innovative Research Program (SBIR). 

FTA will make the determination as to 

whether or not the SBIR reduction will 

be applied to a particular project—based 

on our review of the proposed scope of 

work for the project. 

2. Basis for Allocation of Funds 

Funds not designated by Congress for 

specific projects and activities will be 

programmed by FTA based on FTA’s 

Strategic Research Plan using 

competitive procedures to the maximum 

extent possible. 

3. Requirements 

Application Instructions and Program 

Management Guidelines are set forth in 

FTA Circular 6100.1C. FTA is in the 

process of updating this circular to 

incorporate changes resulting from 

language in SAFETEA–LU. Research 

projects must support FTA’s Strategic 

Research Goals and meet the Office of 

Management and Budget’s Research and 

Development Investment Criteria. All 

research recipients are required to work 

with FTA to develop approved 

Statements of Work. A plan to evaluate 

research results must be in place before 

award of a research grant. 

Eligible activities under the NRTP 

include research, development, 

demonstration and deployment projects 

as defined by 49 U.S.C. 5312 (a); Joint 

Partnership projects for deployment of 

innovation as defined by 49 U.S.C. 

5312(b); International Mass 

Transportation Projects as defined by 49 

U.S.C. 5312(c); and, human resource 

programs as defined by 49 U.S.C. 5322. 

4. Period of Availability 

Funds are available until expended. 

5. Other Related Information 

Requests for research proposals will 

be published in grants.gov under CFDA 

20.514. 


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M. Job Access and Reverse Commute 

Program (49 U.S.C. 5316) 

The Job Access and Reverse Commute 

(JARC) program provides formula 

funding to States and Designated 

Recipients to support the development 

and maintenance of job access projects 

designed to transport welfare recipients 

and eligible low-income individuals to 

and from jobs and activities related to 

their employment, and for reverse 

commute projects designed to transport 

residents of UZAs and other than 

urbanized to suburban employment 

opportunities. FTA invites comment 

regarding technical assistance or 

training that would be helpful to 

grantees in implementing the JARC 

program. 

1. Authorized Funding 

SAFETEA–LU authorizes the 

following amounts for the Job Access 

and Reverse Commute Program for fiscal 

years 2006–2009: 

2. Basis for Formula Apportionment 

SAFETEA–LU establishes JARC as a 

formula program and provides that 60% 

of funds available be allocated to UZAs 

with populations of 200,000 or more 

persons (large UZAs); 20% to urbanized 

areas with populations ranging from 

50,000 to 200,000 persons (small UZAs), 

and 20% to rural and small urban areas 

with populations of less than 50,000 

persons. Funds are allocated to the 

States for small UZAs and rural and 

small urban areas and to designated 

recipients in large UZAs. A single 

apportionment will be published for 

each large UZAs. 

Formula allocations are based upon 

the number of persons with disabilities 

residing in a state or metropolitan area. 

These figures are drawn from Census 

2000 figures. In cases where a large UZA 

has more than one designated recipient, 

they may agree upon a single 

competitive selection process or suballocate funds to each designated 

recipient, based upon a percentage split 

agreed upon locally, and conduct 

separate planning processes and 

competitions. 

States and designated recipients must 

solicit grant applications and select 

projects competitively, based on 

application procedures and 

requirements established by the 

designated recipient, consistent with the 

Federal JARC program objectives. In the 

case of large UZAs, the area-wide 

solicitation shall be conducted in 

cooperation with the appropriate 

MPO(s). 

3. Eligible Expenses 

Funds are available to support the 

capital and operating costs of 

transportation services that address the 

needs of welfare recipients and eligible 

low-income individuals that are not met 

by other transportation services. Federal 

JARC funds may be used for 80% of 

capital expenses and 50% of operating 

expenses. Funds provided under other 

Federal programs (other than those of 

the Department of Transportation) may 

be used for local/state match for funds 

provided under section 5316, and 

revenue from service contracts may be 

used as local match. 

Funding is available for transportation 

services provided by public, non-profit, 

or private-for-profit operators. 

Assistance may be provided for a variety 

of transportation services and strategies 

directed at assisting welfare recipients 

and eligible low-income individuals 

address unmet transportation needs. 

Examples of projects and activities that 

might be funded under the program 

include, but are not limited to: 

• Transportation projects to finance 

planning, capital, and operating costs of 

providing access to jobs; 

• Promoting public transportation by 

low-income workers, including the use 

of public transportation by workers with 

nontraditional work schedules; 

• Promoting the use of transit 

vouchers for welfare recipients and 

eligible low-income individuals; 

• Promoting the use of employerprovided transportation, including the 

transit pass benefit program under 

section 132 of the Internal Revenue 

Code of 1986; 

• Subsidizing the costs associated 

with adding reverse commute bus, train, 

carpool, van routes, or service from 

urbanized areas and other than 

urbanized areas to suburban 

workplaces; 

• Subsidizing the purchase or lease 

by a nonprofit organization or public 

agency of a van or bus dedicated to 

shuttling employees from their 

residences to workplaces; 

• Facilitating the provision of public 

transportation services to suburban 

employment opportunities. 

States and designated recipients may 

use up to ten percent of their annual 

apportionment to administer, plan, and 

provide technical assistance for a 

funded project. Beginning in FY 2006, 

no local share is required for these 

program administrative funds. 

4. Planning and Consultation 

A recipient of JARC funds must 

certify that projects selected were 

derived from a locally developed, 

coordinated public transit-human 

services transportation plan; and, the 

plan was developed through a process 

that included representatives of public, 

private and non-profit transportation 

and human service providers; 

participation by the public; and 

included those representing the needs of 

welfare recipients and eligible lowincome individuals. Projects in the 

locally developed, coordinated public 

transit-human services transportation 

plan must be integrated into and 

consistent with the metropolitan and 

state planning processes. Finally, 

recipients must certify that allocations 

of the grant to subrecipients are 

distributed on a fair and equitable basis. 

The planning requirement applies not 

only to JARC, but beginning in FY 2007 

to the section 5310 and section 5317 

(New Freedom) programs. It is 

anticipated that most areas will develop 

one consolidated plan for all the 

programs, which may include separate 

elements and other human service 

transportation programs. In FY 2006, in 

areas with no current JARC plan, the 

planning partners should at a minimum 

be consulted about projects and where 

possible expressions of support should 

be obtained and documented. For areas 

that previously received JARC 

discretionary funding, the previous 

JARC plan may satisfy the requirement 

in FY 2006. FTA seeks comment on the 

specific aspects of the collaborative 

planning process (for example, 

participants, elements, measures, etc.). 

FTA also seeks comment on the 

relationship between the public transithuman services plans and other 

planning processes. 

5. Period of Availability 

While there is no statutory period of 

availability for JARC funds, FTA is 

establishing a consistent three-year 

period of availability for JARC, New 


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Freedom, and the section 5310 program, 

which includes the year of 

apportionment plus two additional 

years. Any funding that remains 

unobligated at the end of this period 

will revert to FTA for reapportionment 

among the States and large UZAs under 

the JARC program. 

6. Program Requirements 

Grants are subject to the requirements 

of section 5307, including certification 

of labor protection arrangements. 

7. Transfer of JARC funding to Other 

FTA Programs 

Administrative Transfers 

States may transfer funds to FTA’s 

section 5307 or section 5311 programs. 

Funds so transferred must be used for 

the express purposes designated by the 

JARC program and must meet all 

associated requirements. The projects 

for which the funds are transferred must 

have been competitively selected and 

derived from the locally coordinated 

public transit—human services 

transportation plan. The purpose of the 

transfer provision under SAFETEA–LU 

is for administrative streamlining of 

grant making, not to supplement the 

resources available under the Urbanized 

Area Formula or Non-urbanized Area 

Formula programs. This provision 

allows the small UZAs to apply for 

funding directly from FTA, rather than 

through a statewide grant and allows 

Tribes to be direct recipients. A State 

that transfers funds to section 5307 must 

certify that the JARC projects being 

funded have been coordinated with 

nonprofit providers of service. 

FTA has established a new scope code 

(646) to be used when JARC projects are 

funded within a 5307 or 5311 grant. 

Transfer to section 5307 or 5311 is 

permitted but not required. FTA will 

also award stand-alone JARC grants 

with the section code 37 in the project 

number. 

Transfers Between Categories 

States may move funds between the 

small UZA and the nonurbanized parts 

of the state apportionment, if the 

Governor certifies that all of the 

objectives of JARC are met in the 

specified area. States may also transfer 

funds in the small UZA and 

nonurbanized areas for projects 

anywhere in the State if the State has 

established a statewide program for 

meeting the objectives of JARC. 

8. Prior Year Carryover 

JARC earmarks carried over from 

TEA–21 are subject to the terms and 

conditions under which they were 

originally appropriated. The local match 

for both capital and operating assistance 

remains consistent with the TEA–21 

authorization as a 50/50 match. All 

projects should be in the regional JARC 

Plan as required under TEA–21. Prior 

year carryover is shown in Table 9. 

9. Evaluation 

SAFETEA–LU requires FTA to 

conduct a study to evaluate the 

effectiveness of the JARC program (49 

U.S.C. 5316(i)(2)). FTA seeks comment 

on strategies and measures that will 

evaluate the successes of this program. 

N. New Freedom Program (49 U.S.C. 

5317) 

The New Freedom Program (NFP) was 

established in SAFETEA–LU. The 

program purpose is to provide new 

public transportation services and 

public transportation alternatives 

beyond those currently required by the 

Americans with Disabilities Act of 1990 

(42 U.S.C. 12101 et seq.) that assist 

individuals with disabilities with 

transportation, including transportation 

to and from jobs and employment 

support services. 

FTA invites comment regarding 

technical assistance or training that 

would be helpful to grantees in 

implementing the New Freedom 

program. Additionally, FTA seeks 

comment on strategies and measures 

that could be employed to evaluate the 

successes of this program. 

1. Authorized Funding 

SAFETA–LU authorizes the following 

amounts for the New Freedom program 

for fiscal years 2006–2009. 

2. Basis for Formula Apportionment 

SAFETEA–LU establishes a New 

Freedom Program as a formula program 

and provides that 60% of funds 

available be allocated to urbanized areas 

with populations of 200,000 or more 

persons (large urbanized areas); 20% to 

urbanized areas with populations 

ranging from 50,000 to 200,000 persons 

(small UZAs), and 20% to rural and 

small urban areas with populations of 

less than 50,000 persons (nonurbanized 

areas). Funds are allocated to the States 

for small UZAs and nonurbanized areas 

and to designated recipients in 

metropolitan areas with populations of 

200,000 or more. 

Formula allocations are based upon 

the number of persons with disabilities 

residing in a State or metropolitan area. 

The data includes elderly persons with 

disabilities. These figures are drawn 

from Census 2000 figures. In cases 

where a large UZA has more than one 

designated recipient, they may agree 

upon a single competitive selection 

process or sub-allocate funds to each 

designated recipient, based upon a 

percentage split agreed upon locally, 

and conduct separate planning 

processes and competitions. 

States and designated recipients must 

solicit grant applications and select 

projects competitively, based on 

application procedures and 

requirements established by the 

recipient. In the case of large urbanized 

areas, the area-wide solicitation shall be 

conducted in cooperation with the 

appropriate MPO(s). 

3. Eligible Expenses 

Funds are available to support the 

capital and operating costs of new 

public transportation services and 

public transportation alternatives that 

are beyond those required by the 

Americans with Disabilities Act. Federal 

New Freedom funds may be used for 80 

percent of capital expenses and 50 

percent of operating expenses. There is 

no limitation on the amount of funds 

that can be used for operating expenses. 

Funds provided under other Federal 

programs (other than those of the DOT) 

may be used as match for capital funds 

provided under section 5317, and 

revenue from contract services may be 

used as local match. 

Funding is available for transportation 

services provided by public, non-profit, 

or private-for-profit operators. 

Assistance may be provided for a variety 

of transportation services and strategies 

directed at assisting persons with 

disabilities address unmet 

transportation needs. The conference 

report stated that examples of projects 

and activities that might be funded 

under the program include, but are not 

limited to: 


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• Purchasing vehicles and supporting 

accessible taxi, ride-sharing, and 

vanpooling programs. 

• Providing paratransit services 

beyond minimum requirements (3⁄4 mile 

to either side of a fixed route), including 

for routes that run seasonally. 

• Making accessibility improvements 

to existing transit and intermodal 

stations not designated as key stations. 

• Supporting voucher programs for 

transportation services offered by 

human service providers. 

• Supporting volunteer driver and 

aide programs. 

• Acquisition of transportation 

services by a contract, lease, or other 

arrangement. 

• Supporting mobility management 

and coordination programs among 

public transportation providers and 

other human service agencies providing 

transportation. 

We invite comment on the projects 

and activities listed above and how they 

relate to what is ‘‘beyond the ADA.’’ We 

invite comment on activities related to 

ADA complementary paratransit 

services beyond the minimum 

requirements outlined in 49 CFR part 

37. Further, we invite comment 

regarding the types of projects and 

services that should be considered for 

eligibility under New Freedom as they 

relate to new public transportation 

beyond the ADA and alternatives to 

public transportation beyond the ADA. 

States and designated recipients may 

use up to ten percent of their annual 

apportionment to administer, plan, and 

provide technical assistance for a 

funded project. No local share is 

required for these program 

administrative funds. 

4. Planning and Consultation 

Beginning in FY 2007, a recipient of 

New Freedom funds must certify that 

projects selected are derived from a 

locally developed, coordinated public 

transit-human services transportation 

plan; and, the plan was developed 

through a process that included 

representatives of public, private and 

non-profit transportation and human 

service providers; participation by the 

public; and representatives addressing 

the needs of persons with disabilities. In 

FY 2006, the planning partners should 

at a minimum be consulted about 

projects and where possible expressions 

of support should be obtained and 

documented. Finally, each grant 

recipient must certify that allocations of 

the grant to subrecipients are distributed 

on a fair and equitable basis. 

The planning requirement is also a 

requirement in two additional programs. 

The Job Access Reverse Commute 

program (in FY 2006) and the Capital 

Program for Elderly and People with 

Disabilities (in FY 2007) will also be 

required to have a locally developed, 

coordinated public transit-human 

services transportation plan. It is 

anticipated that most areas will develop 

one consolidated plan for all the 

programs, which may include separate 

elements and other human service 

transportation programs. 

5. Period of Availability 

While there is no statutory period of 

availability for New Freedom, FTA is 

establishing a consistent three-year 

period of availability for JARC, New 

Freedom, and the section 5310 program, 

which includes the year of 

apportionment plus two additional 

years. Funds allocated to States under 

the New Freedom program that remain 

unobligated at the end of this period 

will revert to FTA for reapportionment 

among the States and large UZAs under 

the New Freedom program. 

6. Program Requirements 

Grants are subject to the requirements 

of section 5310 to the extent the 

Secretary deems appropriate. FTA will 

not require labor protective 

arrangements for this program. 

7. Transfer of New Freedom funding to 

Other FTA Programs 

States may transfer funds to FTA’s 

section 5307 or section 5311 programs. 

Funds so transferred must be used for 

the express purposes designated by the 

New Freedom Program and must meet 

all associated requirements. The 

projects for which the funds are 

transferred must have been 

competitively selected and derived from 

the locally developed, coordinated 

public transit-human services 

transportation plan. The purpose of the 

transfer provision under SAFETEA–LU 

is for administrative streamlining of 

grant making, not to supplement the 

resources available under the urbanized 

or non-urbanized formula programs. 

This provision allows the small UZAs to 

apply for funding directly from FTA, 

rather than through a statewide grant 

and allows Tribes to be direct 

recipients. A State that transfers funds 

to section 5307 must certify that New 

Freedom projects being funded have 

been coordinated with nonprofit 

providers of service. 

FTA has established a new scope code 

(647) to be used when New Freedom 

Projects are funded within a 5307 or 

5311 grant. Transfer of funds to section 

5307 or 5311 is permitted but not 

required. FTA will also award standalone New Freedom grants with the 

section code 57 in the project number. 

O. Alternative Transportation in the 

Parks and Public Lands Program (49 

U.S.C. 5320) 

FTA will work with the Department 

of Interior and other Federal land 

management agencies to implement this 

program during FY 2006. No procedures 

for allocating the funds have yet been 

established. 

P. Alternative Analysis Program (49 

U.S.C. 5339) 

Alternative Analysis projects are 

studies conducted as part of the 

transportation planning process 

required under sections 5303 and 5304. 

Beginning in FY2006, funding is 

provided under section 5339 instead of 

within the eight percent allowed for 

projects prior to FD and Construction 

under TEA–21. 

1. Total Allocation 

SAFETEA–LU authorizes the 

following amounts for the Alternative 

Analysis program for fiscal years 2006– 

2009. 

In FY 2006 and FY 2007 there are 18 

projects authorized for a total of 

$18,900,000 each year, leaving 

$6,100,000, which could be allocated to 

other projects during those years. There 

are no projects authorized in FY 2008 or 

FY 2009. The projects authorized in 

SAFETEA–LU are listed in Table 3. It is 

important to note that these allocations 

are subject to be changed by subsequent 

appropriations acts and additional 

projects may be earmarked during the 

appropriations process. Final 

Alternative Analysis program 

allocations for FY 2006 will be 

published after enactment of the FY 

2006 Appropriations Act. 


EN30NO05.021</GPH>
71970 Federal Register / Vol. 70, No. 229 / Wednesday, November 30, 2005 / Notices 

2. Program Requirements 

The transportation planning process 

of Alternative Analysis includes (a) An 

assessment of a wide range of public 

transportation alternatives, which will 

address transportation problems within 

a corridor or subarea; (b) ample 

information to enable the Secretary to 

make the findings of project justification 

and local financial commitment; (c) the 

selection of a locally preferred 

alternative; and (d) the adoption of the 

locally preferred alternative, which will 

be part of the long-range transportation 

plan. The Government’s share of the 

total cost of a project under this section 

is 80 percent. The funds will be 

awarded as separate section 5339 grants. 

The grant requirements under this 

program will be comparable to those for 

section 5309 grants. 

3. Period of Availability 

Funds shall remain available for three 

fiscal years, which includes the fiscal 

year the funds are made available or 

appropriated plus two additional years. 

Q. Growing States and High States 

Density Formula Factors 

A new section 5340 is added by 

SAFETEA–LU to allocate funds to 

Growing States and High Density States. 

For this section, the term ‘State’ is 

defined only to mean the 50 States. For 

the Growing State portion of section 

5340, funds are allocated based on the 

population forecasts for fifteen years 

after the date of that census. Forecasts 

are based on the trend between the most 

recent decennial census and Census 

Bureau population estimates for the 

most current year. Funds allocated to 

the States are then sub-allocated to 

urbanized and non-urbanized areas 

based on forecast population, where 

available. If forecasted population data 

at the urbanized level is not available, 

funds are allocated to current urbanized 

and non-urbanized areas on the basis of 

current population. Funds allocated to 

urbanized areas are included in their 

section 5307 apportionment. Funds 

allocated for non-urbanized areas are 

included in the states’ section 5311 

apportionments. 

Funding for the High Density States 

portion of section 5340 is allocated to 

the seven States with population 

densities in excess of 370 persons per 

square mile, based on 2000 Census 

information. Each State receives a 

prorated share of the available funds. To 

arrive at a State’s prorated share the 

formula requires that a series of 

mathematical calculations be performed 

using 2000 Census population, land 

area, and UZA population data for each 

State to produce the State’s 

apportionment factor. The steps used to 

compute a State’s apportionment factor 

are as follows: 

Step 1: State land area, in square 

miles, is multiplied by 370. 

Step 2: the product from step 1 is then 

multiplied by the State’s UZA 

population. 

Step 3: the product from step 2 is 

divided by the State total 

population. 

Step 4: the quotient derived from step 

3 is the State apportionment factor. 

The factors for the seven States are 

summed and divided by the individual 

State factor to arrive at the State ratio or 

percentage. This ratio is multiplied by 

the available funding to arrive at the 

State’s apportionment of High Density 

funding. The allocation of a State’s High 

Density apportionment among the UZAs 

in each State is based on each UZA 

receiving a proportional share of the 

State’s apportionment according to a 

UZA’s population within the State, as 

related to the total UZA population for 

the State. Population, population 

density and land area data from the 

most recent Decennial Census is used in 

the High Density formula. 

FTA will publish single urbanized 

and rural apportionments that show the 

total amount for 5307 and 5311 

programs that includes apportionments 

these programs formulas together with 

5340. 

R. Over-the-Road Bus Accessibility 

Program (Pub. L. 105–85, Section 3038) 

The Over-the-Road Bus Accessibility 

(OTRB) Program authorizes FTA to 

make grants to operators of over-theroad buses to help finance the 

incremental capital and training costs of 

complying with the DOT over-the-road 

bus accessibility final rule, 49 CFR part 

37, published on September 28, 1998 

(63 FR 51670). FTA conducts a national 

solicitation of applications, and grantees 

are selected on a competitive basis. 

1. Total Allocation 

SAFETA–LU authorizes the following 

amounts for the OTRB program for fiscal 

years 2006–2009. 

Of the authorized amounts, the 

following funding is allocable to 

providers of intercity fixed-route service 

(75 percent) and to other providers of 

over-the-road bus services, including 

local fixed-route service, commuter 

service, and charter and tour service (25 

percent). 

2. Basis for Allocations 

FTA allocates the funds appropriated 

annually among eligible private 

operators of over-the-road buses that 

apply in response to a request for 

proposals published in the Federal 

Register and announced on Grants.Gov. 

A separate Federal Register notice will 

be published later this fall announcing 

the competitive selection process for 

funds appropriated in FY 2006. 

FTA will screen all applications to 

determine whether all required 

eligibility elements are present. An FTA 

evaluation team will evaluate each 

application according to the criteria 

described in the announcement. FTA 

will notify all applicants, both those 

selected for funding and those not 

selected when the competitive selection 

process is complete. Projects selected 

for funding will be published in a 

Federal Register notice. Applicants 

selected for funding must apply to the 

FTA regional office for the actual grant 

award, sign Certifications and 


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Federal Register / Vol. 70, No. 229 / Wednesday, November 30, 2005 / Notices 71971 

Assurances, and execute a grant contract 

before funds can be drawn down. 

3. Program Requirements 

Projects are competitively selected. 

The Federal share of the project is 90 

percent of net project cost. Program 

guidance is provided in the Federal 

Register notice soliciting applications. 

Assistance is available to operators of 

buses used substantially or exclusively 

in intercity, fixed route, over-the-road 

bus service. Capital projects eligible for 

funding include projects to add lifts and 

other accessibility components to new 

vehicle purchases and to purchase lifts 

to retrofit existing vehicles. Eligible 

training costs include developing 

training materials or providing training 

for local providers of over-the-road bus 

services. 

4. Period of Availability 

Funds are available until expended. 

VII. FTA National Planning Emphasis 

Areas 

The FTA has identified a series of 

national Planning Emphasis Areas 

(PEAs) to promote as priority themes for 

consideration in developing the annual 

work programs for Statewide Planning 

(State Planning and Research, or SP&R) 

and Metropolitan Planning (Unified 

Planning Work Program, or UPWP). The 

PEAs represent topics in statewide and 

metropolitan planning that are of 

strategic national importance and are 

proposed for consideration by State and 

local officials as they prepare UPWPs 

and SP&R programs during the next 

applicable annual planning program 

cycle. This year’s PEAs broadly promote 

improved person mobility, while 

addressing Core Accountabilities of 

FTA’s Strategic Business Plan. The 

Strategic Business Plan may be viewed 

at the FTA Web site, http:// 

www.fta.dot.gov. Because of the wide 

range in fiscal years across the States, it 

is understood that full consideration to 

include the PEAs may not take place 

until FY 2007. FTA invites comments 

from all interested parties on the PEAs 

outlined in the following pages—both 

the planning topics that are listed, as 

well as the specific themes under each 

topic. 

A dedicated program of technical 

assistance and informational support is 

being made available to States, MPOs, 

and public transportation operators to 

aid in carrying out work activities that 

support the PEAs. The Transportation 

Planning Capacity Building Program 

(TPCB), accessible on-line at http:// 

www.planning.dot.gov, is an important 

component of this support, with 

additional resources also to be made 

available through the FTA Web site, 

http://www.fta.dot.gov. The TPCB is an 

on-line accessible portfolio of 

informational reports and services 

sponsored jointly by FTA and the 

Federal Highway Administration 

(FHWA) providing useful guidelines 

and case studies of innovative practice 

related to statewide and metropolitan 

planning. A key element of the TPCB is 

the Peer Exchange Program, which 

provides support for sharing 

experiences among planning 

practitioners of innovative practices on 

these PEAs, as well as other planning 

topics, on request. Requests for 

information and technical support 

through the TPCB can be made by 

accessing the Web site noted above, or 

by contacting the FTA Region Office or 

FHWA Division Office representatives 

in your areas. In addition, training 

courses that address these PEAs in a 

variety of planning contexts are 

available through the National Transit 

Institute (NTI) and the National 

Highway Institute (NHI). Please go to 

the following Web sites: http:// 

www.ntionline.com and http:// 

www.nhi.fhwa.dot.gov. 

Finally, FTA is interested in 

identifying and showcasing examples of 

effective and innovative practice in 

Statewide and Metropolitan Planning 

that support the PEAs. States, MPOs, 

and public transportation operators are 

encouraged to forward work scopes and 

reports documenting their innovative 

efforts to their respective FTA Region 

Offices, so they may be reviewed and 

forwarded to Headquarters for national 

dissemination through a dedicated 

webpage to be developed over the 

coming year. 

FTA has identified five key themes as 

PEAs for the current and upcoming 

fiscal year: (1) Incorporating Safety and 

Security in Transportation Planning; (2) 

Participation of Transit Operators in 

Metropolitan and Statewide Planning; 

(3) Coordination of Non-Emergency 

Human Service Transportation; (4) 

Planning for Transit Systems 

Management/Operations to Increase 

Ridership; and (5) Support Transit 

Capital Investment Decisions through 

Effective Systems Planning. 

1. Incorporating Safety and Security in 

Transportation Planning 

Since passage of the Intermodal 

Surface Transportation Efficiency Act 

(ISTEA) in 1991, and in all subsequent 

surface transportation authorizing 

legislation, States and MPOs have been 

encouraged to incorporate safety and 

security in their plans, programs, and 

ongoing planning activities. Most 

recently, SAFETEA-LU has expanded 

emphasis on safety and security by decoupling the two concepts and elevating 

their status as individual factors in the 

planning process. Communication and 

collaboration among safety 

professionals, emergency service 

providers, the enforcement community, 

and transportation planners is essential 

to successfully integrate safety and 

security into all stages of transportation 

planning and decision-making. 

Regarding transportation system 

safety, information describing the tools 

and strategies associated with the 

implementation of transportation safety 

planning within statewide and 

metropolitan transportation planning 

processes, including resources targeted 

to the planning organizations, is 

available at http://www.tfhrc.gov/ 

pubrds/pubrds.htm. A training course 

titled ‘‘Safety Conscious Planning’’ is 

available through NTI (see Web site 

above) with additional information 

available from TPCB Web site and 

FHWA and FTA, as follows: http:// 

www.fhwa.dot.gov/planning/scp/ 

index.htm and http://transitsafety.volpe.dot.gov/. 

The types of planning work activities 

addressed under this emphasis area can 

include, among others, education, 

training, and development/application 

of analytical processes related to 

addressing safety and security in 

planning on a systematic basis, and 

development and use of approaches to 

considering safety and security in 

setting implementation priorities in 

plans and programs. The ‘‘security’’

component of this emphasis area refers 

to both maintaining the personal 

security of transportation system 

operators and users, as well as strategies 

for system operations that support the 

‘‘homeland’’ security of localities, 

regions, States, and the nation. 

Coordinated approaches to the training 

of operators, deployment of 

communications and control 

technologies, and general coordination 

of emergency preparedness are among 

the types of planning activities that fall 

under this category. 

A high-profile theme that spans both 

security and safety is disaster planning. 

In particular, areas that are vulnerable to 

disasters of either man-made or natural 

origin are encouraged to consider 

including disaster planning work 

activities into their SP&Rs and UPWPs. 

Examples of planning-related disaster 

planning activities include all stages of 

emergency preparedness planning—

ranging from preparing multimodal 

evacuation plans before a possible 

event, to strategies for bringing 

emergency supplies and relief aid to 

affected areas after the event. Additional 

71972 Federal Register / Vol. 70, No. 229 / Wednesday, November 30, 2005 / Notices 

information is available at the following 

Web sites: 

• http://www.planning.dot.gov/ 

Documents/Securitypaper.htm. 

• http://www.fhwa.dot.gov/planning/ 

scp/index.htm. 

• http://www.planning.dot.gov/Peer/ 

Michigan/detroitSafety.htm. 

2. Participation of Transit Operators in 

Metropolitan and Statewide Planning 

SAFETEA–LU expands the mandate 

and opportunities for transit operator 

participation in multimodal 

transportation decision-making through 

Statewide and Metropolitan planning. 

This PEA outlines a set of strategies for 

realizing the full potential and benefits 

of multimodal decision-making. A 

recent FTA publication, Transit at the 

Table: A Guide to Participation to 

Metropolitan Decision Making, available 

online and in hard-copy, provides 

candid testimonials of the values and 

strategies for full achievement of 

‘‘transit-at-the-table’’ by transit and 

MPO leaders from 25 metropolitan areas 

across the U.S. 

Among the planning activities that 

support this emphasis area are (a) 

establishing program, project, and 

technical advisory committees that 

include representation and active 

participation by transit operators, (b) 

developing and monitoring 

transportation system performance 

indicators that include measures that 

involve public transportation, (c) 

ensuring that travel forecasting methods 

are sensitive to policies affecting the full 

range of modal options and that transit 

ridership forecasts have been validated 

and are credible, and (d) using criteria 

for setting project priorities for 

inclusion in plans and programs that are 

mode-neutral. 

Training on ways to ensure that 

planning processes are modallybalanced and the resulting decisions 

mode-neutral are available through the 

National Transit Institute (http:// 

www.ntionline.com) and the National 

Highway Institute (http:// 

www.nhi.fhwa.dot.gov), with additional 

information available through the 

Transportation Planning Capacity 

Building Web site (http:// 

planning.dot.gov) and the Travel Model 

Improvement Program (http:// 

tmip.fhwa.dot.gov/). Over the past two 

years, the TPCB has sponsored a 

number of transit-at-the-table peer 

exchange workshops, with the results 

posted on that Web site. The ‘‘Transit at 

the Table’’ report is available at http:// 

www.planning.dot.gov/Documents/ 

tat.htm. 

3. Coordination of Non-Emergency 

Human Service Transportation 

Following the theme of Executive 

Order #13330, Human Service 

Transportation Coordination, 

SAFETEA–LU provides expanded 

program authority and funding 

opportunities to provide transit service 

to individuals with job access and 

specialized transportation needs. 

However, these programs, 49 U.S.C. 

5310 (Special Needs of Elderly 

Individuals and Individuals with 

Disabilities), 49 U.S.C. 5316 (Job Access 

and Reverse Commute), and 49 U.S.C. 

5317 (New Freedom) all require an 

extensive coordination among DOT and 

non-DOT-funded services, including 

preparation of a locally-developed 

coordinated human servicetransportation plan as the basis for 

project-level funding decisions. The 

plan has to be developed by local area 

representatives of public, private, and 

nonprofit transportation human services 

providers, as well as involve 

participation by the public, including 

older adults, people with disabilities, 

and individuals with lower incomes. 

SAFETEA–LU further outlines that 

project ‘‘competition’’ for funding 

awards at the local level should be 

coordinated with the MPO. 

Support of the emphasis area could 

involve a wide range of work activities 

in Statewide and metropolitan planning, 

including forming and hosting meetings 

of a committee of non-emergency 

service providers, assemblage of a baseyear ridership profile of service users 

and forecasting future usage, and 

incorporating these programs into the 

public involvement programs of States 

and MPOs. United We Ride, an 

initiative of the Coordinating Council on 

Access and Mobility has developed a 

number of tools and strategies for 

building coordinated human service 

transportation systems across programs 

and funding streams. Additional 

information resources are available at 

the following Web sites: 

• http://www.fta.dot.gov/ 

16290_17544_ENG_HTML.htm. 

• http://www.unitedweride.gov/. 

• http://www.fta.dot.gov/ 

1139_ENG_HTML.htm. 

• http://www.fta.dot.gov/ 

1266_ENG_HTML.htm. 

• http://www.planning.dot.gov/Peer/ 

Austin/austin_peer.htm. 

4. Planning for Transit Systems 

Management/Operations to Increase 

Ridership 

A regionally coordinated, strategic 

approach to managing and operating 

transportation systems can yield 

dramatic improvements in systems 

productivity and service cost 

effectiveness. With regard to transit, a 

key criterion of operational effectiveness 

is the number of passenger miles 

traveled. FTA’s Strategic Business Plan 

has a goal calling for an annual increase 

in passenger miles, discounted for 

employment. The ability to accomplish 

this is tied closely to the effective 

management and operation of transit 

systems—individually, as well as in 

within a regional context of multimodal 

systems management and operations. In 

addition, transit operational strategies 

such as fare policies, service 

characteristics (e.g. headways, transfers, 

frequency of stops), marketing and 

public awareness/information, and 

overall facilities maintenance on 

services and schedules, have a major 

impact on system ridership. 

Work activities in Statewide and 

Metropolitan planning to address this 

emphasis area include such efforts as: 

(a) Convene a system operators 

coordinating committee to identify 

issues, share solutions, and establish an 

ongoing framework for coordination, (b) 

develop analytical tools and expertise in 

assessing the impacts of operational 

strategies, both in conjunction with, and 

as alternatives to, capital investments, 

(c) facilitate improved understanding 

and deployment of advanced 

technologies to improve the operational 

efficiency of systems, and (d) improve 

the tracking, analysis, and use of 

operational performance data in 

transportation plan and program 

development. 

FTA has developed an extensive body 

of information and guidance to assist 

transit operators in developing strategies 

that increase use of their systems. The 

guidance includes technical assistance 

such as training courses, research 

studies, and proceedings from 

conferences that transit operators can 

use in developing their ridership growth 

strategies. This guidance is summarized 

in the report, ‘‘Ridership Guidance 

Quick Study,’’ which is posted at 

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

17525_ENG_HTML.htm). 

Additional information on achieving 

ridership growth is available at the 

following Web sites: 

• http://www.fta.dot.gov/ 

initiatives_tech_assistance/technology/ 

15791_ENG_HTML.htm. 

• http://www.tcrponline.org. 

• http:// 

www.plan4operations.dot.gov/. 

Federal Register / Vol. 70, No. 229 / Wednesday, November 30, 2005 / Notices 71973 

5. Support Transit Capital Investment 

Decisions Through Effective Systems 

Planning 

The information, processes, and 

decisions of metropolitan systems 

planning lay the foundation for, and 

have direct impacts upon, corridorfocused project planning and 

subsequent stages of project 

development. There is a strong 

relationship between systems planning 

activities, more refined corridor 

analyses in Alternatives Analysis (or 

‘‘AA.’’ an FTA requirement for 

advancing New Starts projects), and 

their impact on subsequent project 

development—all within the context of 

metropolitan planning and decisionmaking. In systems planning, regional 

priorities among corridors of need are 

identified, as well as causes of the 

corridors’ problems and a reasonable 

range of possible solutions. An AA 

investigates the range of possible modal 

solutions within individual corridors in 

much greater detail, concluding with a 

‘‘Locally Preferred Alternative’’ (LPA). 

That LPA, in turn, goes to the 

Metropolitan Planning Organization 

(MPO) for adoption into the long-range 

transportation plan and is, ultimately, 

programmed in the Transportation 

Improvement Program. And, as the work 

of systems planning is carried forward 

into more focused planning at the 

corridor level, it becomes readily 

apparent that the quality of work 

performed in systems planning sets the 

foundation—and the quality of that 

foundation—for subsequent, more 

detailed planning. 

Within systems planning, three 

planning activities have been found to 

be the most challenging and, if not 

performed effectively, to have the most 

significant impact on the quality and 

credibility of major transit investment 

proposals as they advance into project 

development. These three systems 

planning topics are: (a) Data, Technical 

Tools, & Analysis; (b) Regional Needs 

Identification & Corridor Prioritization; 

and (c) Financial Planning. 

(a) Data, Technical Tools, & Analysis 

There is a long and ever-expanding 

list of planning activities to improve the 

technical aspects of systems planning. 

These include ongoing collection of 

systems usage and performance to 

understand current travel behavior (e.g. 

onboard transit surveys and monitoring 

travel—by mode—that crosses a 

strategically picked network of screenlines), training for staff to improve their 

technical skills and expertise. Frequent 

validation checks should be performed 

on the travel forecasting models to 

confirm their reliability for use in 

assessing the travel implications of 

policy and network alternatives. Also, 

as improvements to MPOs’ models are 

made during corridor-level AA studies, 

those refinements should be cycled back 

to the MPOs for use in their models. 

FTA staff and contractors have 

identified a wide range of problems 

with MPO travel demand forecasting 

models, particularly in locales with no 

prior experience in conducting AA 

studies. The ‘‘sponsors’’ of candidate 

projects for New Starts funding (49 

U.S.C. 5309) will want to work with 

FTA staff before beginning the AA Study 

to examine model inputs, policy 

variables and assumptions, and model 

outputs for reasonableness. 

Informational resources available to 

State/local planners include: 

• National Highway Institute (http:// 

www.nhi.fhwa.dot.gov), which offers the 

course Introduction to Travel Demand 

Forecasting. 

• National Transit Institute (http:// 

www.ntionline.com), which offers the 

advanced course Multimodal Travel 

Forecasting. 

• Travel Model Improvement 

Program (http://tmip.fhwa.dot.gov), a 

joint FTA/FHWA/EPA program to 

support local transportation planning 

agencies and improve their forecasting 

abilities. 

(b) Regional Needs Identification & 

Corridor Prioritization 

Goals and objectives for the 

transportation system are driven by 

public input and set by local policy 

makers and elected officials. These 

should be based on needs and clearly 

set forth in the long-range transportation 

plan. Furthermore, the goals and 

objectives should drive not only 

performance measures for the existing 

system, but also evaluation criteria for 

any new projects and programs to assist 

in decision making. If a major transit 

investment is to be considered in a 

corridor for study and Federal funding 

assistance is anticipated for the 

investment, then project sponsors may 

want to include FTA’s New Starts 

criteria among the locally developed 

evaluation criteria. 

Systems planning involves identifying 

corridors with needs in accordance with 

a set of performance measures and 

establishing priorities among the 

corridors for further analysis. Valid, 

current, and comprehensive data are 

crucial in understanding transportation 

problems in the region; they also 

support rational decision making in 

formulating solutions. It is important 

that the planning documents and 

studies clearly articulate the problem(s) 

that are to be addressed. This will lead 

to the discovery the root causes of the 

problem(s). Knowledge of problems and 

causes becomes the basis for a projectlevel ‘‘Purpose and Need’’ statement in 

federal environmental review 

documentation. The identification of 

regional transportation problems and 

their causes through data collection, 

analysis, and forecasting is the basis for 

‘‘telling the story’’ of the applicant’s 

local conditions. Good systems planning 

will help to ‘‘make the case’’ for funding 

potential major transit investments. 

Links to informational resources on 

this topic include: 

• http://www.fta.dot.gov/ 

16231_ENG_HTML.htm. 

• http://www.fta.dot.gov/ 

16363_ENG_HTML.htm. 

• http://www.fta.dot.gov/ 

grant_programs/ 

transportation_planning/ 

major_investment/ 

procedures_technical_methods/ 

9949_10244_ENG_HTML.htm. 

(c) Financial Planning 

Effective systems planning depends 

upon sound, defensible financial 

planning. Otherwise, the plans will 

always remain just plans and what is 

implemented will not reflect the vision 

expressed by decision makers through 

the metropolitan planning process. 

Good financial planning, in turn, 

depends upon credible assumptions, for 

revenues, expenses, inflation, and 

realistic project implementation 

schedules. For transit service and 

projects, in particular, the concept of 

maintenance first must take precedence 

in systems planning. Recapitalization 

and the ongoing expenses of operating 

and maintaining (O&M) the existing 

system over the long-term must be 

considered. The applicant or proposed 

project sponsor should be able to 

demonstrate that the existing transit 

system can be maintained and operated 

at current levels of service for the next 

20 years. Development of a robust cost 

model for transit O&M expenses can 

prove invaluable in systems planning. 

For new projects, careful estimation of 

capital and operating costs should also 

include risk management analysis to 

challenge assumptions behind the 

estimates and consider a range of cost 

impacts should assumptions not hold 

true. 

Additional guidance is available, as 

follows: 

• Standard Cost Categories for Major 

Capital Projects (http://www.fta.dot.gov; 

Home b Grant Programs b New Starts 

Project Planning & Development b 

Technical Guidance). 

71974 Federal Register / Vol. 70, No. 229 / Wednesday, November 30, 2005 / Notices 

• Interim FHWA/FTA Guidance on 

Fiscal Constraint for STIPs, TIPs, and 

Metro Plans (http://www.fhwa.dot.gov/ 

planning/fcindex.htm). 

VIII. FTA Policy and Procedures for FY 

2006 Grants 

A. Automatic Pre-Award Authority To 

Incur Project Costs 

This section includes some changes to 

the automatic pre-award authority 

published in previous Notices. Preaward authority for capital projects 

beyond design and environmental work 

is more limited than before. The 

conditions under which pre-award 

authority may be used for real property 

acquisition are also clarified. 

While we provide pre-award authority 

for many projects, we do not 

recommend that first-time grant 

recipients utilize the automatic preaward authority to incur expenses 

before the grant is actually awarded by 

FTA. As a new grantee, it is easy to 

misunderstand pre-award authority 

conditions and not be aware of all of the 

applicable FTA requirements that must 

be met in order to be reimbursed for 

project expenditures incurred in 

advance of grant award. FTA programs 

have specific statutory requirements 

that are often different from those for 

other Federal grant programs with 

which new grantees may be familiar. If 

funds are expended for an ineligible 

project or activity, FTA will be unable 

to reimburse the project sponsor. 

1. Policy 

FTA provides blanket, or automatic, 

pre-award authority in certain program 

areas described below. This pre-award 

authority allows grantees to incur 

certain 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 are met to retain eligibility. 

This automatic pre-award spending 

authority, when triggered, 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. Pre-award authority 

for design and environmental work on 

the project is triggered by the 

authorization of formula funds or 

appropriation of funds for discretionary 

projects and publication of those 

projects in FTA’s annual Federal 

Register Notice of apportionments and 

allocations. Following authorization of 

formula funds or appropriation and 

publication of discretionary projects, 

pre-award authority for other capital 

projects including property acquisition, 

demolition, construction, and 

acquisition of vehicles, equipment, or 

construction materials is triggered by 

completion of the environmental review 

process with FTA’s signing of an 

environmental Record of Decision 

(ROD), Finding of No Significant Impact 

(FONSI), or categorical exclusion (CE) 

determination. Prior to exercising preaward authority, grantees must comply 

with the conditions and Federal 

requirements outlined in paragraphs 2 

and 3 below. Failure to do so will 

render an otherwise eligible project 

ineligible for FTA financial assistance. 

In addition, prior to incurring costs, 

grantees are strongly encouraged to 

consult with the appropriate FTA 

regional office regarding the eligibility 

of the project for future FTA funds and 

the applicability of the conditions and 

Federal requirements. 

FTA previously extended pre-award 

authority to all formula funds and 

flexible funds apportioned during from 

Fiscal Years 1998 through 2006. In this 

notice, FTA is extending this pre-award 

authority for formula funds and flexible 

funds that will be appropriated through 

FY 2009 under SAFETEA–LU, but with 

modifications. Pre-award authority for 

operating and planning projects under 

the formula grant programs is not 

limited to the authorization period. In 

addition, automatic pre-award authority 

for section 5303 and 5304 is extended 

through FY 2009. 

Pre-award authority does not apply to 

the section 5309 Capital Investment Bus 

and Bus-Related Facilities and Clean 

Fuels program high priority project 

designations or any other transit 

discretionary projects designated in 

SAFETEA–LU and published in Tables 

4 and 5 of this notice. These 

authorizations are subject to change in 

future appropriations acts. In fiscal 

years 2006–2009, after Congress 

appropriates funds for these and other 

discretionary projects and the 

allocations are published in an FTA 

notice of apportionments and 

allocations, pre-award authority will be 

available for those projects and projects 

for which funds were appropriated in 

prior years and published in previous 

notices, except that the triggers for preaward authority have been changed. For 

such section 5309 Capital Investment 

Bus and Bus-Related, Clean Fuels 

Program, or other transit capital 

discretionary projects, the date that 

costs may be incurred is: (1) for design 

and environmental review, the date that 

the appropriation bill which funds the 

project was enacted; and (2) for property 

acquisition, demolition, construction, 

and acquisition of vehicles, equipment, 

or construction materials, the date that 

FTA signs the document (ROD, FONSI, 

or CE determination) that completes the 

environmental review process required 

by the National Environmental Policy 

Act (NEPA) and its implementing 

regulations. The growing prevalence of 

new grantees unfamiliar with Federal 

and FTA requirements has necessitated 

this change in the pre-award trigger to 

ensure FTA’s continued ability to 

comply with NEPA and related 

environmental laws. Because FTA does 

not sign a final NEPA document until 

MPO and statewide planning 

requirements have been satisfied, this 

new trigger for pre-award will ensure 

compliance with both planning and 

environmental requirements prior to 

irreversible action by the grantee. In 

previous notices FTA extended preaward authority to section 330 projects 

and those surface transportation projects 

commonly referred to as section 115 

projects administered by FTA, for which 

amounts were provided in the 

Consolidated Appropriations Act, 2004 

and section 117 projects in the 2005 

Appropriations Act. The same 

conditions described for bus projects 

apply to these projects. We strongly 

encourage any prospective applicant 

that does not have a relationship with 

FTA to review Federal grant 

requirements with the FTA regional 

office before incurring costs. 

Blanket pre-award authority does not 

apply to section 5309 Capital 

Investment New Starts funds. Specific 

instances of pre-award authority for 

Capital Investment New Starts projects 

are described in paragraph 4 below. Preaward authority does not apply to 

Capital Investment Bus and Bus-Related 

or Clean Fuels projects for which 

funding has been authorized but not yet 

appropriated. Before an applicant may 

incur costs for Capital Investment New 

Starts projects, Bus and Bus-Related 

projects, or any other projects not yet 

published in a notice of apportionments 

and allocations, it must first obtain a 

written Letter of No Prejudice (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, as described below. 

2. Conditions 

The conditions under which preaward authority may be utilized are 

specified below: 

(a) Pre-award authority is not a legal 

or implied 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 implied commitment that all 

Federal Register / Vol. 70, No. 229 / Wednesday, November 30, 2005 / Notices 71975 

items undertaken by the applicant will 

be eligible for inclusion in the project(s). 

(b) All FTA statutory, procedural, and 

contractual requirements must be met. 

(c) No action will be taken by the 

grantee that prejudices the legal and 

administrative findings that the Federal 

Transit Administrator must make in 

order to approve a project. 

(d) Local funds expended by the 

grantee pursuant to and after the date of 

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). Local funds expended by 

the grantee prior to the date of the preaward authority will not be eligible for 

credit toward local match or 

reimbursement. Furthermore, the 

expenditure of local funds on activities 

such as land acquisition, demolition, or 

construction prior to the date of preaward authority for those activities (i.e., 

the completion of the NEPA process) 

would compromise FTA’s ability to 

comply with Federal environmental 

laws and may render the project 

ineligible for FTA funding. 

(e) 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. 

(f) For funds to which the pre-award 

authority applies, the authority expires 

with the lapsing of the fiscal year funds. 

(g) When a grant for the project is 

subsequently awarded, the Financial 

Status Report, in TEAM-Web, must 

indicate the use of pre-award authority. 

3. Environmental, Planning, and Other 

Federal Requirements 

All Federal grant requirements must 

be met at the appropriate time for the 

project to remain eligible for Federal 

funding. The growth of the Federal 

transit program has resulted in a 

growing number of inexperienced 

grantees who make compliance with 

Federal planning and environmental 

laws increasingly challenging. FTA has 

therefore modified its approach to preaward authority to use the completion 

of the NEPA process, which has as a 

prerequisite the completion of planning 

and air quality requirements, as the 

trigger for pre-award authority for all 

activities except design and 

environmental review. 

The requirement that a project be 

included in a locally adopted 

metropolitan transportation 

improvement program and Federallyapproved statewide transportation 

improvement program (23 CFR part 450) 

must be satisfied before the grantee may 

advance the project beyond planning 

and preliminary design with nonFederal funds under pre-award 

authority. The conformity requirements 

of the Clean Air Act, 40 CFR part 93, if 

applicable, must also be fully met before 

the project may be advanced into 

implementation under pre-award 

authority with non-Federal funds. 

Compliance with NEPA and other 

environmental laws and executive 

orders (e.g., protection of parklands, 

wetlands, and historic properties) must 

be completed before State or local funds 

are spent on implementation activities, 

such as site preparation, construction, 

and acquisition, for a project that is 

expected to be subsequently funded 

with FTA funds. The grantee may not 

advance the project beyond planning 

and preliminary design before FTA has 

determined the project to be a 

categorical exclusion, or has issued a 

finding of no significant impact (FONSI) 

or an environmental record of decision 

(ROD), in accordance with FTA 

environmental regulations, 23 CFR part 

771. 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 applicable Federal requirements (e.g., 

Buy America, Davis-Bacon Act, 

Disadvantaged Business Enterprise), 

must be followed for projects in which 

Federal funding will be sought in the 

future. Failure to follow any such 

requirements could make the project 

ineligible for Federal funding. In short, 

this increased administrative flexibility 

requires a grantee to make certain that 

no Federal requirements are 

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

questions or concerns regarding the 

environmental requirements, or any 

other Federal requirements that must be 

met before incurring costs, it should 

contact the appropriate regional office. 

4. Pre-Award Authority for New Starts 

Projects 

(a) Preliminary Engineering and Final 

Design 

Projects proposed for section 5309 

New Starts funds are required to follow 

a Federally defined New Starts project 

development process. This New Starts 

process includes, among other things, 

FTA approval of the entry of the project 

into PE and into FD. In accordance with 

section 5309(d), FTA considers the 

merits of the project, the strength of its 

financial plan, and its readiness to enter 

the next phase in deciding whether or 

not to approve entry into PE or FD. 

Upon FTA approval to enter PE, FTA 

extends pre-award authority to incur 

costs for PE activities. Upon FTA 

approval to enter FD, FTA extends preaward authority to incur costs for FD 

activities. The pre-award authority for 

each phase is automatic upon FTA’s 

signing of a letter to the project sponsor 

approving entry into that phase. PE and 

FD are defined in the New Starts 

regulation entitled Major Capital 

Investment Projects, found at 49 CFR 

part 611. 

(b) Real Property Acquisition 

Activities 

FTA extends automatic pre-award 

authority for the acquisition of real 

property and real property rights for a 

New Starts project upon completion of 

the NEPA process for that project. The 

NEPA process is completed when FTA 

signs an environmental Record of 

Decision (ROD) or Finding of No 

Significant Impact (FONSI), or makes a 

Categorical Exclusion (CE) 

determination. With the limitations and 

caveats described below, real estate 

acquisition for a New Starts project may 

commence, at the project sponsor’s risk, 

upon completion of the NEPA process. 

For FTA-assisted projects, any 

acquisition of real property or real 

property rights must be conducted in 

accordance with the requirements of the 

Uniform Relocation Assistance and Real 

Property Acquisition Policies Act (URA) 

and its implementing regulations, 49 

CFR part 24. This pre-award authority is 

strictly limited to costs incurred: (i) to 

acquire real property and real property 

rights in accordance with the URA 

regulation, and (ii) to provide relocation 

assistance in accordance with the URA 

regulation. This pre-award authority is 

limited to the acquisition of real 

property and real property rights that 

are explicitly identified in the final 

environmental impact statement (FEIS), 

environmental assessment (EA), or CE 

document, as needed for the selected 

alternative that is the subject of the 

FTA-signed ROD or FONSI, or CE 

determination. This pre-award authority 

does not cover site preparation, 

demolition, or any other activity that is 

not strictly necessary to comply with 

the URA, with one exception. That 

exception is when a building that has 

been acquired, has been emptied of its 

occupants, and awaits demolition poses 

a potential fire-safety hazard or other 

hazard to the community in which it is 

located, or is susceptible to 

reoccupation by vagrants, demolition of 

the building is also covered by this preaward authority upon FTA’s written 

agreement that the adverse condition 

exists. 

71976 Federal Register / Vol. 70, No. 229 / Wednesday, November 30, 2005 / Notices 

Pre-award authority for property 

acquisition is also provided when FTA 

makes a CE determination for a 

protective buy or hardship acquisition 

in accordance with 23 CFR 

771.117(d)(12), and when FTA makes a 

CE determination for the acquisition of 

a pre-existing railroad right-of-way in 

accordance with 49 U.S.C. 5324(c). 

When a tiered environmental review in 

accordance with 23 CFR 771.111(g) is 

being used, pre-award authority is NOT 

provided upon completion of the firsttier environmental document except 

when the Tier-1 ROD or FONSI signed 

by FTA explicitly provides such preaward authority for a particular 

identified acquisition. 

FTA’s rationale for providing this preaward authority was described in the FY 

2003 Apportionments and Allocations 

Notice published in the Federal 

Register on March 12, 2003, (68 FR 1106 

et seq.). The FY 2003 Notice may be 

found on the FTA Web site at http:// 

www.fta.dot.gov/library/legal/ 

federalregister/2003/fr31203.pdf. Project 

sponsors should use pre-award 

authority for real property acquisition 

and relocation assistance very carefully, 

with a clear understanding that it does 

not constitute a funding commitment by 

FTA. 

(c) National Environmental Policy Act 

(NEPA) Activities 

NEPA requires that major projects 

proposed for FTA funding assistance be 

subjected to a public and interagency 

review of the need for the project, its 

environmental and community impacts, 

and alternatives to avoid and reduce 

adverse impacts. Projects of more 

limited scope also need a level of 

environmental review, either to support 

an FTA finding of no significant impact 

(FONSI) or to demonstrate that the 

action is categorically excluded from the 

more rigorous level of NEPA review. 

FTA’s regulation entitled 

Environmental Impact and Related 

Procedures at 23 CFR part 771 states 

that the costs incurred by a grant 

applicant for the preparation of 

environmental documents requested by 

FTA are eligible for FTA financial 

assistance (23 CFR 771.105(e)). 

Accordingly, FTA extends automatic 

pre-award authority for costs incurred to 

comply with NEPA regulations and to 

conduct NEPA-related activities for a 

proposed New Starts project, effective as 

of the date of the Federal approval of the 

relevant STIP or STIP amendment that 

includes the project or any phase of the 

project. NEPA-related activities include, 

but are not limited to, public 

involvement activities, historic 

preservation reviews, section 4(f) 

evaluations, wetlands evaluations, 

endangered species consultations, and 

biological assessments. This pre-award 

authority is strictly limited to costs 

incurred to conduct the NEPA process, 

and to prepare environmental, historic 

preservation and related documents. It 

does not cover PE activities beyond 

those necessary for NEPA compliance. 

As with any pre-award authority, FTA 

reimbursement for costs incurred is not 

guaranteed. 

(d) Other New Starts Activities 

Requiring Letter of No Prejudice (LONP) 

Except as discussed in paragraphs (a) 

through (c) above, a grant applicant 

must obtain a written LONP from FTA 

before incurring costs for any activity 

expected to be funded by New Start 

funds not yet granted. To obtain an 

LONP, an applicant must submit a 

written request accompanied by 

adequate information and justification 

to the appropriate FTA regional office, 

as described in B below. 

B. Letter of No Prejudice (LONP) Policy 

1. Policy 

LONP authority allows an applicant 

to incur costs on a project utilizing nonFederal 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 and project 

activities not covered by automatic preaward 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 

and Bus-Related funds not yet 

appropriated by Congress. At the end of 

an authorization period, LONPs may be 

issued for formula funds beyond the life 

of the current authorization or FTA’s 

extension of automatic pre-award 

authority. 

2. Conditions and Federal Requirements 

The conditions for pre-award 

authority specified in section VIII A2 

above apply to all LONPs. The 

Environmental, Planning and Other 

Federal Requirements described in 

section VIII A3, also apply to all LONPs. 

Because project implementation 

activities may not be initiated prior to 

NEPA completion, FTA will normally 

not issue an LONP for such activities 

until the NEPA process has been 

completed with a ROD, FONSI, or 

Categorical Exclusion determination. 

3. Request for LONP 

Before incurring costs for a project not 

covered by automatic pre-award 

authority, the project sponsor must first 

submit a written request for an LONP, 

accompanied by adequate information 

and justification, to the appropriate 

regional office and obtain written 

approval. As a prerequisite to FTA 

approval of an LONP for a New Starts 

project, FTA will require project 

sponsors to demonstrate project 

worthiness and readiness that establish 

the project as a candidate for an FFGA. 

Projects will be assessed based upon the 

criteria considered in the New Start 

evaluation process. Specifically, upon 

the request for an LONP, the applicant 

shall provide sufficient information to 

allow FTA to consider the following 

items: 

(a) Description of the activities to be 

covered by the LONP. 

(b) Justification for advancing the 

identified activities. 

(c) Data that indicates that the project 

will maintain its ability to receive a 

rating of ‘‘medium’’, or better and that 

its cost-effectiveness rating will be 

‘‘medium’’ or better, unless such project 

has been specifically exempt from such 

a requirement. 

(d) Allocated level of risk and 

contingency for the activity requested. 

(e) Status of procurement progress, 

including, if appropriate, submittal of 

bids for the activities covered by the 

LONP. 

(f) Strength of the capital and 

operating financial plan for the New 

Starts project and the future transit 

system. 

(g) Adequacy of the Project 

Management Plan. 

(h) Resolution of any readiness issues 

that would affect the project, such as 

land acquisition and technical capacity 

to carry out the project. 

C. FTA FY 2006 Annual List of 

Certifications and Assurances 

The FTA ‘‘Fiscal 2006 Annual List of 

Certifications and Assurances’’ will 

incorporate new or changed 

requirements due to SAFETEA-LU. The 

full text of the Fiscal Year 2006 

Certifications and Assurances was 

published in the Federal Register on 

November 15, 2005, and is available on 

the FTA Web site and in TEAM-WEB. 

The FY 2006 Certifications and 

Assurances must be used for all grants 

made in FY 2006, including obligation 

of carryover. 

D. FHWA Funds Used for Transit 

Purposes 

SAFETEA-LU continues provisions in 

the Intermodal Surface Transportation 

Efficiency Act of 1991 (ISTEA) and 

TEA–21 that expanded modal choice in 

transportation funding by including 

Federal Register / Vol. 70, No. 229 / Wednesday, November 30, 2005 / Notices 71977 

substantial flexibility to transfer funds 

between FTA and FHWA program 

funding categories. 

1. Transfer Process 

The process for transferring flexible 

formula funds between FTA and FHWA 

programs is described below. For 

information on the process or the 

transfer of funds between FTA and 

FHWA planning programs refer to 

section VIII E. 

Transfer from FHWA to FTA. FHWA 

funds designated for use in transit 

capital projects must be derived from 

the metropolitan and statewide 

planning and programming process, and 

must be included in an approved STIP 

before the funds can be transferred. By 

letter, the State DOT requests the FHWA 

Division Office to transfer highway 

funds for a transit project. The letter 

should specify the project, amount to be 

transferred, apportionment year, State, 

urbanized area, Federal aid 

apportionment category (i.e., Surface 

Transportation Program (STP), 

Congestion Mitigation and Air Quality 

(CMAQ), Interstate Substitute, or 

congressional earmark), indication of 

the intended FTA formula program (i.e., 

section 5307, 5311 or 5310), and should 

include 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. The FHWA Office of Budget and 

Finance then transfers obligation 

authority and an equal amount of cash 

to FTA. All FHWA CMAQ, STP, and 

certain Congressionally earmarked 

funds for transit projects in the 

Appropriations Act or Conference 

Report will be transferred to one of the 

three FTA formula programs (i.e. 

Urbanized Area Formula (section 5307), 

Nonurbanized Area Formula (section 

5311) or Elderly and Persons with 

Disabilities (section 5310). 

The FTA grantee’s application for the 

project must specify which program the 

funds will be used for, and the 

application must be prepared in 

accordance with the requirements and 

procedures governing that program. 

Upon review and approval of the 

grantee’s application, FTA obligates 

funds for the project. 

Transferred funds are treated as FTA 

formula funds, but are assigned a 

distinct identifying code for tracking 

purposes. The funds may be used for 

any capital purpose eligible under the 

FTA formula program to which they are 

transferred and, in the case of CMAQ, 

for certain operating costs. FTA and 

FHWA have issued guidance on project 

eligibility under the CMAQ program in 

a Notice at 65 FR 9040 et seq. (February 

23, 2000). In accordance with 23 U.S.C. 

104(k), all FTA requirements except 

local share are applicable to transferred 

funds; FHWA local share requirements 

apply to funds transferred from FHWA 

to FTA. Transferred funds should be 

combined with regular FTA funds in a 

single annual grant application. 

In the event that transferred funds are 

not obligated for the intended purpose 

within the period of availability of the 

program to which they were transferred, 

they become available to the Governor 

for any eligible capital transit project. 

Transfers from FTA to FHWA. The 

Metropolitan Planning Organization 

(MPO) submits a written request to the 

FTA regional office for a transfer of FTA 

section 5307 formula funds 

(apportioned to a UZA 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 

in written format to FTA Headquarters, 

where a reduction equal to the dollar 

amount being transferred to FHWA is 

made to the grantee’s Urbanized Area 

Formula Program apportionment. 

2. 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 FHWA. 

There are three instances in which a 

Federal share higher than 80 percent 

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. 

Second, 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 FHWA. 

The third instance is the 100 percent 

Federally-funded safety projects; 

however, these are subject to a 

nationwide 10 percent program 

limitation. 

E. Consolidated Planning Grants 

Since FY 1997, FTA and FHWA have 

offered States the option of participating 

in a pilot Consolidated Planning Grant 

(CPG) program. This streamlined fund 

drawdown process eliminates the need 

to monitor individual fund sources, if 

several have been used, and ensures that 

the oldest funds will always be used 

first. 

Under a CPG administered by FTA, 

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) fundmatching 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. In FY 2005, the 

CPG program was expanded to allow the 

transfer of FTA planning funds to 

FHWA in addition to the current 

process whereby FHWA funds for 

planning are transferred to FTA. For 

planning projects funded through a 

CPG, the State DOT requests the transfer 

of funds in a letter to the FHWA 

Division Office (if transferring funds to 

FTA) or to the FTA regional office (if 

transferring funds to FHWA). 

F. Grant Application Procedures 

Grantees must provide a Dun and 

Bradstreet (D&B) Data Universal 

Numbering System (DUNS) number for 

inclusion in all applications for a 

Federal grant or cooperative agreement 

submitted on or after October 1, 2003. 

The DUNS number should be entered 

into the grantee profile in TEAM-Web. 

Additional information about this and 

other Federal grant streamlining 

initiatives mandated by the Federal 

Financial Assistance Management 

Improvement Act of 1999 (Pub. L. 106–

107) can be accessed on OMB’s Web site 

at http://www.whitehouse.gov/omb/ 

grants/reform.html. 

71978 Federal Register / Vol. 70, No. 229 / Wednesday, November 30, 2005 / Notices 

All applications for FTA funds should 

be submitted to the appropriate FTA 

regional office. FTA utilizes TEAMWeb, an Internet-accessible electronic 

grant application system, and all 

applications are filed electronically. 

FTA has provided limited exceptions to 

the requirement for electronic filing of 

applications. 

In FY 2006, FTA is committed to 

ensuring that the average number of 

days to process an FTA grant is 36 days, 

or fewer, after receipt of a completed 

application by the appropriate regional 

office. In order for an application to be 

considered complete and for FTA to 

assign a grant number, enabling 

submission in TEAM-Web, the 

following requirements must be met: 

• The project is listed in a currently 

approved Transportation Improvement 

Program (TIP); Statewide Transportation 

Improvement Program (STIP), or 

Unified Planning Work Program 

(UPWP). 

• All eligibility issues have been 

resolved. 

• Required environmental findings 

have been made. 

• The project budget’s Activity Line 

Items (ALI), scope, and project 

description meet FTA requirements. 

• Local share funding source(s) have 

been identified. 

• The grantee’s required Civil Rights 

submissions are current. 

• Certifications and assurances are 

properly submitted. 

• Funding is available, including any 

flexible funds included in the budget. 

• For projects involving new 

construction (using at least $100 million 

in New Starts or formula funds), FTA 

engineering staff has reviewed the 

project management plan and given 

approval. 

• When required for grants related to 

New Starts projects, PE and/or FD has 

been approved. 

• Milestone information is complete, 

or FTA determines that milestone 

information can be finalized before the 

grant is ready for award. 

Before FTA can award grants for 

discretionary projects and activities 

designated by Congress, notification 

must be given to members of Congress, 

and in the case of awards greater than 

$1 million, to the House and Senate 

authorizing and appropriations 

committees. 

Other important issues that impact 

FTA grant processing activities are 

discussed below. 

1. Change in Budget Structure 

Because SAFETEA–LU restructured 

FTA’s accounts from all general funded 

accounts to one solely trust funded 

account and three general funded 

accounts, we are not able to mix funds 

from prior years in the same grant with 

funds that will be appropriated in FY 

2006 and beyond (except for New Starts 

and research grants). Previously all 

programs were funded approximately 80 

percent trust funds from the Mass 

Transit Account (MTA) of the Highway 

Trust Fund and 20 percent General 

Funds from the U.S. Treasury. The trust 

funds were transferred into the general 

funded accounts at the beginning of the 

year. Under SAFETEA–LU most 

programs are funded entirely from trust 

funds derived from the Mass Transit 

Account, while the New Starts and 

Research programs are funded with 

general funds. Carryover FY 2005 and 

prior funds currently available for 

obligation as well as FY 2006 funds, 

when they become available, may be 

included in an amendment to an 

existing grant for New Starts and 

research grants. 

For formula programs funded solely 

from trust funds beginning in FY 2006, 

grantees must initiate a new grant to 

obligate FY 2006 funds. Grant 

amendments cannot be made to add FY 

2006 and later year funds to a grant that 

includes FY 2005 or prior funds. 

Obligations of FY 2005 and prior year 

carryover funds must be made in the 

original program accounts established 

under TEA–21 (either as an amendment 

to an existing grant or as a new grant) 

and cannot be combined with funds 

appropriated in FY 2006 or later. 

Grantees will, however, be able to 

amend the new grants established with 

FY 2006 funds to add funds made 

available after FY 2006. We regret any 

inconvenience this accounting change 

may cause as we implement new 

statutory requirements under 

SAFETEA–LU. We encourage grantees 

to spend down and close out old grants 

as quickly as possible to minimize the 

inconvenience. 

2. Grant Budgets—SCOPE and ALI 

Codes 

FTA uses the SCOPE and Activity 

Line Item (ALI) Codes in the grant 

budgets to track program trends, to 

report to Congress, and to respond to 

requests from the Inspector General and 

the Government Accountability Office 

(GAO), as well as to manage grants. The 

accuracy of the data is dependent on the 

careful and correct use of codes. We 

have revised the SCOPE and ALI table 

to include new codes for the newly 

eligible capital items, to better track 

certain expenditures, and to 

accommodate the new programs. We 

encourage grantees to review the table 

before selecting codes from the dropdown menus in TEAM–WEB while 

creating a grant budget. Additional 

information about how to use the 

SCOPE and ALI codes to accurately 

code budgets will be added to the 

resources available through TEAM–

WEB. 

3. Earmark Tracking 

FTA is implementing new procedures 

for relating grants to earmarks. Each 

earmark published in the Federal 

Register will have a unique identifier 

associated with it. Tables of earmarks 

will also be established in TEAM. When 

applying for a grant using funding 

designated by Congress, grantees will be 

asked to identify the amount of funding 

associated with specific earmarks used 

in the grant. Further instructions will be 

posted on the TEAM–WEB site and 

training will be provided. The carryover 

tables in this Notice include the new 

identifiers. 

4. New Freedom and JARC—

Administering Agency 

Before the first grant application to 

FTA is submitted, the Governor must 

designate the state agency or agencies 

charged with administering the New 

Freedom and JARC formula programs. 

In large urbanized areas with more than 

one designated recipient or transit 

operator, supplemental agreements may 

be necessary. 

5. Payments 

Once a grant has been awarded and 

executed, requests for payment can be 

processed. To process payments FTA 

uses ECHO–Web, an Internet accessible 

system that provides grantees the 

capability to submit payment requests 

on-line, as well as receive user-IDs and 

passwords via e-mail. New applicants 

should contact the appropriate FTA 

regional office to obtain and submit the 

registration package necessary for set-up 

under ECHO–Web. 

6. Oversight 

FTA conducts periodic oversight 

reviews to assess grantee compliance 

with Federal requirements. Each UZA 

grantee is reviewed every three years (a 

triennial review). States are reviewed 

periodically for their management of the 

section 5310 and 5311 programs. Other 

more detailed reviews are scheduled 

based on an annual grantee risk 

assessment. FTA will develop 

appropriate oversight procedures for the 

new programs authorized by SAFETEA–

LU. 

7. Technical Assistance 

FTA headquarters and regional staff 

will be pleased to answer your 

Federal Register / Vol. 70, No. 229 / Wednesday, November 30, 2005 / Notices 71979 

questions and provide any technical 

assistance you may need to apply for 

FTA program funds and manage the 

grants you receive. This notice and the 

program guidance circulars previously 

identified in this document may be 

accessed via the FTA Web site at 

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

In addition, copies of the following 

circulars and other useful information 

are available on the FTA Website and 

may be obtained from FTA regional 

offices: 4220.1E, Third Party Contracting 

Requirements, dated June 19, 2003; and 

C5010.1C, Grant Management 

Guidelines, dated October 1, 1998. The 

FY 2006 Annual List of Certifications 

and Assurances and Master Agreement 

are also posted on the FTA Web site. 

Other documents on the FTA Web site 

of particular interest to public transit 

providers and others include the annual 

Statistical Summaries of FTA Grant 

Assistance Programs and the NTD 

Profiles. The DOT final rule on 

‘‘Participation by Disadvantaged 

Business Enterprises in Department of 

Transportation Financial Assistance 

Programs,’’ which was effective July 16, 

2003, can be found on the Department’s 

Web site at http://osdbu.dot.gov/ 

business/DBE/ 

49cfrpart26_final_rule.html. 

Issued on: November 21, 2005. 

David B. Horner, 

Acting Deputy Administrator. 

Appendix A 

FTA Regional Offices 

Richard H. Doyle, Regional Administrator, 

Region 1-Boston Kendall Square, 55 

Broadway, Suite 920, Cambridge, MA 

02142–1093, Tel. 617 494–2055. States 

served: Connecticut, Maine, Massachusetts, 

New Hampshire, Rhode Island, and 

Vermont. 

Letitia Thompson, Regional Administrator, 

Region 2-New York, One Bowling Green, 

Room 429, New York, NY 10004–1415, Tel. 

No. 212 668–2170. States served: New 

Jersey, New York, and the Virgin Islands. 

Susan Borinsky, Regional Administrator, 

Region 3-Philadelphia, 1760 Market Street, 

Suite 500, Philadelphia, PA 19103–4124, 

Tel. 215 656–7100. States served: 

Delaware, Maryland, Pennsylvania, 

Virginia, West Virginia, and District of 

Columbia. 

Yvette Taylor, Regional Administrator, 

Region 4-Atlanta, Atlanta Federal Center, 

Suite 17T50, 61 Forsyth Street SW., 

Atlanta, GA 30303, Tel. 404 562–3500. 

States served: Alabama, Florida, Georgia, 

Kentucky, Mississippi, North Carolina, 

Puerto Rico, South Carolina, and 

Tennessee. 

Don Gismondi, Deputy Regional 

Administrator, Region 5-Chicago, 200 West 

Adams Street, Suite 320, Chicago, IL 

60606, Tel. 312 353–2789. States served: 

Illinois, Indiana, Michigan, Minnesota, 

Ohio, and Wisconsin. 

Robert C. Patrick, Regional Administrator, 

Region 6-Ft. Worth, 819 Taylor Street, 

Room 8A36, Ft. Worth, TX 76102, Tel. 817 

978–0550. States served: Arkansas, 

Louisiana, Oklahoma, New Mexico and 

Texas. 

Mokhtee Ahmad, Regional Administrator, 

Region 7-Kansas City, MO, 901 Locust 

Street, Room 404, Kansas City, MO 64106, 

Tel. 816 329–3920. States served: Iowa, 

Kansas, Missouri, and Nebraska. 

Lee O. Waddleton, Regional Administrator, 

Region 8-Denver, 12300 West Dakota Ave., 

Suite 310, Lakewood, CO 80228–2583, Tel. 

720–963–3300. States served: Colorado, 

Montana, North Dakota, South Dakota, 

Utah, and Wyoming. 

Leslie T. Rogers, Regional Administrator, 

Region 9-San Francisco, 201 Mission, 

Street, Room 2210, San Francisco, CA 

94105–1926, Tel. 415 744–3133. States 

served: American Samoa, Arizona, 

California, Guam, Hawaii, Nevada, and the 

Northern Mariana Islands. 

Rick Krochalis, Regional Administrator, 

Region 10-Seattle, Jackson Federal 

Building, 915 Second Avenue, Suite 3142, 

Seattle, WA 98174–1002, Tel. 206 220–

7954. States served: Alaska, Idaho, Oregon, 

and Washington. 

Appendix B 

Specific Questions and Issues for Comment 

1. FTA seeks public comment on the 

continued use of the 83 percent Federal share 

of cost of equipment and facilities for ADA 

and CAA compliance. (See section IV.A.11). 

2. FTA invites comment regarding 

technical assistance or training that would be 

helpful to grantees in implementing the 

Special Needs of Elderly Individuals and 

Individuals with Disabilities program. 

Additionally, FTA seeks comment on 

strategies and measures that could be 

employed to evaluate the successes of this 

program. (See section VI.H). 

3. For the Special Needs of Elderly 

Individuals and Individuals with Disabilities 

program, FTA seeks comment on the specific 

aspects of the collaborative planning process 

(for example, participants, elements, 

measures, etc.). FTA also seeks comment on 

the relationship between the public transithuman services plans and other planning 

processes. (See section VI.H). 

4. FTA requests public comment on 

whether the State-based rural data module 

should serve as the basis for the new 

mandatory reporting requirements. (See 

section VI.I). 

5. Concerning the basis for section RTAP 

formula apportionments, comments are 

invited on whether the floor should again be 

raised and whether the low density portion 

of the section 5311 formula should be used. 

(See section VI.J). 

6. FTA invites comments on use of the 

National RTAP resource. (See section VI.J). 

7. SAFETEA–LU does not specify a basis 

for formula apportionment for the new Tribal 

Transit program. FTA will develop 

procedures for allocating the funds in 

consultation with the Tribes and with 

opportunity for public comment. An interim 

measure would be to allocate FY 2006 funds 

based on responses to a request for letters of 

interest. FTA requests comments on the 

feasibility of allocating FY 2006 funds based 

on this approach. (See section VI.K). 

8. We seek comments on what criteria 

should be considered in selecting Tribes to 

receive funding and what factors should be 

used in allocating available funds among 

successful applicants. (See section VI.K). 

9. FTA may establish the terms and 

conditions for the Tribal Transit program. 

FTA seeks comments about appropriate 

terms and conditions for the program. We 

especially invite comments from Tribes that 

previously received FTA funding about 

which requirements we should consider 

waiving for the program. (See section VI.K). 

10. FTA invites comment regarding 

technical assistance or training that would be 

helpful to grantees in implementing the JARC 

program. (See section VI.M). 

11. For the JARC program, FTA seeks 

comment on the specific aspects of the 

collaborative planning process (for example, 

participants, elements, measures, etc.). FTA 

also seeks comment on the relationship 

between the public transit-human services 

plans and other planning processes. (See 

section VI.M). 

12. SAFETEA–LU requires FTA to conduct 

a study to evaluate the effectiveness of the 

JARC program (49 U.S.C. 5316(i)(2)). FTA 

seeks comment on strategies and measures 

that will evaluate the successes of this 

program. (See section VI.M). 

13. FTA invites comment regarding 

technical assistance or training that would be 

helpful to grantees in implementing the New 

Freedom program. Additionally, FTA seeks 

comment on strategies and measures that 

could be employed to evaluate the successes 

of this program. (See section VI.N). 

14. We invite comment on the projects and 

activities stated in the SAFETEA–LU that 

might be funded under the New Freedom 

program and how they relate to what is 

‘‘beyond the ADA.’’ We invite comment on 

activities related to ADA complementary 

paratransit services beyond the minimum 

requirements outlined in 49 CFR part 37. 

Further, we invite comment regarding the 

types of projects and services that should be 

considered for eligibility under New 

Freedom as they relate to new public 

transportation beyond the ADA and 

alternatives to public transportation beyond 

the ADA. (See section VI.N). 

15. FTA invites comments from all 

interested parties on the Planning Emphasis 

Areas (PEA) identified for FY 2006. (See 

section VII). 

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