Federal Register / Vol. 79, No. 206 / Friday, October 24, 2014 / Notices 63663 

and amount of matching funds. As 

appropriate, the cost proposal also must 

set forth the nature and value of in-kind 

resources that team members will 

contribute to meet the match 

requirement. 

Provide a line-item budget for the 

total project, with enough detail to 

indicate the various key components of 

the project. As FTA may elect to fund 

only a portion of a proposal rather than 

the full amount requested by the 

applicant, the budget should set forth 

the minimum amount necessary to fund 

specific project components. As funding 

for the Innovative Public Transportation 

Workforce Development Program 

(Ladders of Opportunity Initiative) is 

limited, an application that can be 

scaled may receive additional 

consideration for funding. 

8. Performance Measurement 

Provide an approach for 

demonstrating the local, nationwide or 

regional impact(s) of the project on the 

transit industry and broader 

employment opportunities. The 

proposal should include a description of 

the applicant’s plan for recording the 

outcomes and reporting in a Final 

Report, at a minimum, the following to 

FTA at the end of the project: 

• The number of individuals affected 

by the project. Applicants should define 

‘‘affected individuals’’ in terms that 

make sense for the proposed project. For 

example, other common reported 

outcomes could include: 

D Target Individuals (Veterans, 

Women, Youth, Incumbent Workers, 

etc.); 

D Number of eligible individuals 

entered into program; 

D Number of individuals who 

successfully complete the program, 

achieve applicable credential, etc.; 

D Number of placed new workers and/ 

or advanced incumbent workers; 

D Number of retained workers after 90 

days. 

• The costs of the project and the 

share of federal investment. 

• At least one performance metric. 

Quantitative metrics are preferred, but 

qualitative metrics will be considered if 

they are based on the experiences of 

those affected by the program (as 

opposed to the self-assessment of the 

applicant or partner agencies). Metrics 

could include, but are not limited to, 

survey results; exit interviews; or 

longitudinal tracking of staff (during the 

period of performance only). 

• A 1–2 page project description that 

will state the project’s initial goals and 

measure achievements against those 

goals. This statement can also include 

‘‘lessons learned.’’ 

• A 1–2 page statement of 

applicability to other entities. Once the 

program is complete, the applicant must 

describe how the project could be scaled 

and/or altered for application 

elsewhere, and what types of benefits 

could be realized by doing so. 

• Any other performance measure 

that the applicant determines would 

describe the strengths and weaknesses 

of the project. 

As part of the proposal, provide 

projections (for quantitative measures) 

or short hypotheses (for qualitative 

measures) of what type of impact/

performance FTA could expect from the 

project. 

9. Project Management 

Describe the applicant’s approach for 

managing and staffing the project, 

including the distribution of 

responsibilities among partner entities 

and an organizational chart, if 

applicable. Include responsibilities such 

as regular reporting, performance 

measurement, and technical/

management interactions with FTA. 

Quarterly cost and activity progress 

reporting is required and can be 

submitted in the FTA electronics grant 

award system and by email submission 

to the FTA Workforce Program Manager. 

FTA will provide a template upon 

request. 

10. Project Staff 

List each organization, operator, 

consultant, or other key individuals 

who will work on the project, along 

with short descriptions of their 

appropriate technical expertise and 

experience (such as past, relevant 

research). Attach resumes or curriculum 

vitae if available. Project staff resumes 

or curriculum vitae will not count 

towards the total page count for 

proposal submissions. 

IV. Award Information 

FTA will award grants of a minimum 

of $200,000 and a maximum of 

$1,000,000. FTA intends to award as 

many meritorious projects as possible, 

and may elect to award less than the 

amount requested by an applicant. In 

addition, geographic diversity and the 

applicant’s receipt of other discretionary 

awards may be considered in FTA’s 

award decisions. 

A. Notification. After FTA has 

selected the proposals to be funded, 

successful applicants will be notified by 

email or telephone of their status. In 

addition, FTA will publish a notice in 

the Federal Register announcing 

successful applicants. Upon notification 

of intent to award funds, FTA may 

withdraw its offer to provide Federal 

assistance if the recipient does not 

provide a formal application consistent 

with its proposal submission within 90 

days following the date of the offer. 

B. Execution of the FTA Agreement. 

FTA will instruct successful applicants 

on how to execute their cooperative 

agreements in FTA’s electronic grants 

management system. 

C. Start Date and Incurred Costs. 

Absent special circumstances, costs 

incurred prior to FTA award are not 

eligible as project expenses. Absent 

highly unusual circumstances, FTA 

cannot retroactively approve a project. 

The recipient may begin to incur project 

costs as of the date the award letter is 

signed by FTA and the awardee 

executes the final signature. FTA 

expects grantees to implement the 

projects awarded as soon as possible 

and to fully expend grant funds during 

the period of performance, recognizing 

that full transparency and 

accountability are required for all 

expenditures. 

V. Contacts for Additional Information 

Prospective applicants may visit the 

following Web sites for more 

information: 

• http://www.fta.dot.gov. 

• For more on managing projects in 

accordance with FTA Circular 6100.1D: 

Transit Research and Technology 

Programs: Application Instructions and 

Program Management Guidelines: 

http://fta.dot.gov/legislation_law/ 

12349_12669.html. This Circular 

includes requirements on project 

management and administration 

including quarterly reporting, financial 

management, and payment. 

For general program information, 

please use the contact information 

identified in the front of this notice. 

Please contact the Grants.gov Helpdesk 

for assistance with electronic 

applications at http://www.grants.gov. 

You also may contact 

support@grants.gov or call toll-free (800) 

518–4726. 

Therese W. McMillan, 

Acting Administrator. 

[FR Doc. 2014–25310 Filed 10–23–14; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF TRANSPORTATION 

Federal Transit Administration 

[Docket No. FTA–2013–0023] 

Formula Grants for Rural Areas: 

Guidance and Application Instructions 

AGENCY: Federal Transit Administration 

(FTA), DOT. 


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63664 Federal Register / Vol. 79, No. 206 / Friday, October 24, 2014 / Notices 

ACTION: Notice of availability of final 

circular. 

SUMMARY: The Federal Transit 

Administration (FTA) has placed in the 

docket and on its Web site, guidance in 

the form of a circular to assist grantees 

in implementing the Section 5311 Rural 

Area Formula Program. The purpose of 

the circular is to provide recipients of 

FTA financial assistance with updated 

instructions and guidance on program 

administration and the grant application 

process. The revisions to FTA Circular 

9040.1F are a result of changes made to 

the Rural Area Formula Program by the 

Moving Ahead for Progress in the 21st 

Century Act (MAP–21). FTA is updating 

the circular due to these changes in the 

law. 

DATES: The final circular becomes 

effective November 24, 2014. 

FOR FURTHER INFORMATION CONTACT: For 

program questions contact, Mary Leary, 

Office of Program Management, Federal 

Transit Administration, 1200 New 

Jersey Ave. SE., Room E44–409, 

Washington, DC 20590, phone: (202) 

366–2204, fax: (202) 366–7951, or email, 

Mary.Leary@dot.gov. For legal 

questions, Bonnie Graves, Office of 

Chief Counsel, same address, Room 

E56–306, phone: (202) 366–4011, fax: 

(202) 366–3809, or email, 

Bonnie.Graves@dot.gov. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Overview 

II. Chapter-by-Chapter Analysis 

A. Chapter I—Introduction and 

Background 

B. Chapter II—Program Overview 

C. Chapter III—General Program 

Information 

D. Chapter IV—Program Development 

E. Chapter V—Program Management and 

Administrative Requirements 

F. Chapter VI—State Management Plans 

G. Chapter VII—Appalachian Development 

Public Transportation Assistance 

Program 

H. Chapter VIII—Intercity Bus 

I. Chapter IX—Rural Transportation 

Assistance Program (RTAP) 

J. Chapter X—Public Transportation on 

Indian Reservations 

K. Chapter XI—Other Provisions 

L. Appendices 

I. Overview 

FTA is updating Circular 9040.1F, 

‘‘Non-urbanized Area Formula Program 

Guidance and Grant Application 

Instructions,’’ last revised in 2007, in 

order to incorporate changes in the law 

subsequent to passage of the Moving 

Ahead for Progress in the 21st Century 

Act (MAP–21, Pub. L. 112–141). MAP– 

21 renamed the Section 5311 Program as 

the Formula Grants for Rural Areas 

Program. Generally the Section 5311 

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 

and planning projects, job access and 

reverse commute projects, operating 

assistance and administration expenses. 

On September 26, 2013, FTA issued a 

notice of availability of the proposed 

circular in the Federal Register (78 FR 

59415) and requested public comment 

on the proposed circular. The comment 

period closed on November 25, 2013. 

FTA received comments from 41 

entities, including trade associations, 

State DOTs, metropolitan planning 

organizations, public transportation 

providers, human service agencies, and 

individuals. This notice addresses 

comments received and explains 

changes FTA made to the proposed 

circular in response to comments. 

Some comments were outside the 

scope of the circular and are not 

addressed in the chapter-by-chapter 

analysis. For example, two commenters 

asked whether mobility management 

would be an eligible expense for the 

Section 5339 Bus and Bus Facilities 

Program. FTA invites interested 

stakeholders to review the recently 

published proposed circular for the 

Section 5339 program: http://

www.gpo.gov/fdsys/pkg/FR-2014-07-30/

pdf/2014-17926.pdf (79 FR 44241, July 

30, 2014). Several commenters noted 

typographical errors, pagination errors 

and links to Web sites that were not 

operational. FTA has edited the circular 

to address these issues. 

The Section 5311 Program, as 

amended by MAP–21, provides for 

expanded eligible activities and setasides that support rural transit program 

such as the Appalachian Development 

Public Transportation Assistance 

Program, the Rural Transit Assistance 

Program, and the Tribal Transit 

Program. The Section 5311 Program 

permits activities authorized under the 

repealed Job Access and Reverse 

Commute (JARC) program to qualify as 

Section 5311 eligible activities. 

Additionally, since MAP–21 changed 

the program’s name from the Formula 

Grants for Other Than Urbanized Area 

Program to the Formula Grants for Rural 

Areas Program, the term ‘‘rural’’ 

replaces ‘‘non-urbanized area’’ or ‘‘other 

than urbanized area’’ throughout the 

circular. 

In addition to MAP–21 updates 

addressed above and outlined below, 

the circular updates the organization 

and wording of the previous circular to 

improve clarity and consistency with 

FTA’s other circulars and to reflect 

other changes in the law. This 

document does not include the revised 

circular; however, an electronic version 

is available on FTA’s Web site, at 

www.fta.dot.gov. Paper copies may be 

obtained by contacting FTA’s 

Administrative Services Help Desk, at 

(202) 366–4865. 

II. Chapter-by-Chapter Analysis 

A. Chapter I—Introduction and 

Background 

Chapter I of the proposed circular is 

an introductory chapter and covers 

general information about FTA and how 

to contact us, briefly reviews the 

authorizing legislation for FTA 

programs generally, includes definitions 

applicable to the Section 5311 Program, 

and provides a brief history of the 

Section 5311 Program. Where 

applicable, we have used the same 

definitions found in statutes, 

rulemakings, and other circulars to 

ensure consistency. 

FTA received nine comments on this 

chapter, all related to definitions. A 

number of commenters suggested that 

FTA should be consistent with its 

definitions throughout each of its 

circulars. Two commenters specifically 

indicated there is a discrepancy 

between FTA’s and the Federal 

Highway Administration’s (FHWA) 

definition for ‘‘force account,’’ 

suggesting the two definitions could 

confuse State Departments of 

Transportation. FTA notes that FHWA’s 

definition is broader than that included 

in the circular. However, both the FTA 

and FHWA definitions essentially refer 

to a recipient’s use of its labor, 

equipment, materials, and supplies that 

are utilized under its direct control. 

Although the FTA definition is 

narrower than FHWA’s, FTA does not 

believe its definition will cause 

confusion and thus it remains 

unchanged from the proposed circular. 

One commenter suggested that FTA 

use either ‘‘applicant’’ or ‘‘grant 

applicant’’ throughout the circular. 

These terms were used interchangeably 

in the proposed circular, but we have 

struck references to ‘‘grant applicant’’ 

and used only ‘‘applicant’’ in the final 

circular. The commenter further noted 

that the definition for ‘‘capital asset’’ 

proposed for the Section 5311 circular 

should be consistent with the definition 

of ‘‘capital asset’’ in Circulars 5010.1D 

and 9300.1B. In response, FTA 

acknowledges that the circulars 

referenced by the commenter have a 

slightly different definition for the term 

‘‘capital asset,’’ but we note that 

5010.1D and 9300.1B will be updated to 


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reflect the definition included in this 

circular. 

One commenter recommended 

deleting ‘‘all maintenance costs related 

to vehicles and non-vehicles’’ from the 

proposed definition for ‘‘preventive 

maintenance.’’ The commenter noted 

that preventive maintenance includes 

all maintenance performed to keep 

assets operating properly and avoid 

breakdown and deterioration that 

results in restorative maintenance. In 

response, FTA notes that the definition 

included in the proposed circular is 

consistent with the definition in the 

National Transit Database (NTD); 

therefore the definition is included in 

the final circular without change. The 

same commenter also suggested 

consistent use of the terms ‘‘recipient’’ 

or ‘‘direct recipient’’ otherwise it may 

cause confusion. These terms were used 

interchangeably in the proposed 

circular, but we have struck references 

to ‘‘direct recipient’’ in every section 

except in chapter III’s discussion of 

Indian tribes as direct recipients. In that 

particular paragraph, we want to 

emphasize the difference between tribes 

as subrecipients and tribes as direct 

recipients. 

Lastly, commenters questioned the 

definitions FTA included in the 

proposed circular for the terms ‘‘senior’’ 

‘‘welfare recipient’’ and ‘‘eligible lowincome individual.’’ One commenter 

noted that the Older Americans Act 

defines ‘‘elderly’’ as 60 years of age or 

older. Federal transit law at 49 U.S.C. 

5302(18) defines ‘‘senior’’ as an 

individual who is 65 years of age or 

older. In addition, Federal transit law 

defines ‘‘welfare recipient’’ and 

‘‘eligible low-income individual’’ at 49 

U.S.C. 5302(9), and we have included 

these statutory definitions in the 

circular. We note that for purposes of 

eligibility for reduced fares or 

specialized services, public 

transportation providers may define 

‘‘senior’’ to include individuals under 

age 65, as a lower age would be 

inclusive of those over age 65. Since 

these definitions are statutory, the 

proposed definitions for the terms are 

included, without change, in the final 

circular. FTA has added definitions for 

joint development and transit-oriented 

development’’ to the Definitions section 

of the Circular. 

B. Chapter II—Program Overview 

In chapter II, FTA proposed updating 

the program goals section by adding 

three additional goals of the Section 

5311 Program: (1) providing financial 

assistance to help carry out national 

goals related to mobility for all, 

including seniors, individuals with 

disabilities, and low-income 

individuals; (2) increasing availability of 

transportation options through 

investments in intercity bus services; 

and (3) encouraging mobility 

management, employment-related 

transportation alternatives, joint 

development practices, and transitoriented development. 

One commenter supported the 

addition of these new goals; however, 

the commenter indicated the circular 

lacked specifics regarding how the goals 

would be reported, the timeframe for 

reporting, and how the data would be 

reported. In response, FTA notes the 

program goals are not intended as 

performance goals and recipients will 

not report on these overall program 

goals. The program goals are provided 

as a means to facilitate State 

management and FTA oversight of the 

Section 5311 Program and should be 

included as content for the State 

Management Plan as noted in Chapter 

VI of the circular. 

Another commenter noted that its 

ability to replace deteriorating vehicles 

in its fleet has been impacted 

significantly with the repeal of the 

Section 5309 discretionary bus grant 

program. In response, FTA notes that 

congressional action would be required 

in order to reinstate the provisions of 

the Section 5309 program, however, the 

new Section 5339 Bus and Bus Facilities 

Formula Program is designed to provide 

a reliable funding stream for bus 

replacement. In addition, FTA notes 

that Section 5311 provides the Governor 

with discretion to allocate funding as 

deemed appropriate to mitigate rural 

transportation gaps within the State. 

C. Chapter III—General Program 

Information 

FTA received a number of comments 

on this chapter, many related to the 

proposed changes in job access reverse 

commute project eligibility. A few 

commenters indicated FTA should 

permit the State to continue to fund job 

access and reverse commute projects 

that were previously funded with 

SAFETEA–LU Section 5311 funds as job 

access and reverse commute 

maintenance projects under the program 

as it is now authorized by MAP–21. In 

response to comments, we have clarified 

the language in the circular to permit 

SAFETEA–LU Section 5311 funded 

projects that qualified as job access and 

reverse commute projects to continue to 

be considered job access and reverse 

commute maintenance projects under 

this program. This does not apply under 

the Section 5307 program in which job 

access and reverse commute projects 

must have either been previously 

funded with Section 5316 funding to be 

considered job access and reverse 

commute maintenance projects or be 

new as of October 1, 2012 to be 

considered development projects. Each 

State should ensure it has expended all 

of its Section 5316 JARC funds available 

under SAFETEA–LU before funding job 

access and reverse commute-type 

projects with Section 5311 funds 

authorized by MAP–21. As a reminder, 

there is no floor or ceiling for the 

amount of Section 5311 funds spent on 

job access and reverse commute projects 

under MAP–21. Further, although there 

is no statutory requirement for job 

access and reverse projects to be part of 

a coordinated plan, FTA continues to 

encourage States and rural communities 

to consider including these projects in 

a coordinated planning process 

consistent with the Statewide planning 

process. 

Several commenters indicated that 

FTA should revise Chapter III to clarify 

that nonprofits are eligible as 

subrecipients for Section 5311 funding 

and eliminate any reference to projects 

in large urbanized areas. In response, 

FTA has revised the chapter accordingly 

and it now specifically indicates that 

nonprofit organizations are eligible 

subrecipients for Section 5311 funding. 

In addition, we have removed language 

related to large urbanized areas. 

One commenter recommended that 

FTA require States to factor the 

percentage of low-income individuals in 

the allocation of formula funds to rural 

transit districts. In response, FTA does 

not have the statutory authority to 

require States to do so; however, the law 

does require States to distribute funds in 

a fair manner. 49 U.S.C. 5311(b)(2)(C). 

One commenter asked about the 

oversight responsibilities of the State 

when an Indian tribe elects to be a 

subrecipient of the State and not a direct 

recipient of funds. When a Tribe is a 

subrecipient of a State, the State has the 

same oversight responsibilities of that 

Tribe as it does for other subrecipients. 

However, when a tribe elects to receive 

a 5311 allocation directly from FTA, it 

is responsible for compliance with all 

5311 program requirements. States 

would not be responsible for oversight 

for tribes that receive direct grants from 

the FTA, unless there are additional 

State resources or requirements that 

require State oversight. 

A few commenters requested 

clarification in sections 3 and 4 of this 

chapter related to operating expenses, 

program income, and local match 

requirements with respect to human 

service contracts. FTA has reviewed the 

sections and finds the language to be 

consistent: Both sections state that 


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income from such contracts may be 

used either to reduce the project cost 

(treated as revenue) or used as local 

match for Section 5311 operating grants 

(treated as program income). In 

addition, we have added additional 

language regarding the timing of 

applying these funds to a grant. FTA 

will also update the Section 5307 

circular to reflect the additional 

language it has included in the Section 

5311 circular. 

Lastly, one commenter requested 

clarification regarding the availability of 

Section 5311 funding for safety 

certification training of employees 

directly responsible for safety oversight. 

Title 49 U.S.C. 5329(e)(6) provides that 

Section 5311 recipients may use not 

more than 0.5 percent of their formula 

funds to pay not more than 80 percent 

of the cost of participation in the public 

transportation safety certification 

training program established under 

subsection 49 U.S.C. 5329(c), by an 

employee who is directly responsible 

for safety oversight. Further guidance 

regarding the safety certification 

training will be forthcoming as FTA is 

implementing the requirements for 

safety certification training via 

rulemaking. 

D. Chapter IV—Program Development 

In this chapter, FTA proposed adding 

information regarding MAP–21’s new 

performance-based planning approach 

and revising the program of projects 

(POPs) section. FTA received comments 

from four entities on this chapter. 

Regarding FTA’s effort to further 

performance-based planning in 

accordance with MAP–21, one 

commenter asked for confirmation that 

State designation of ‘‘Rural 

Transportation Planning Organizations’’ 

(RTPO’s) would not impact its current 

rural transportation planning process. 

FTA notes the language in the circular 

comes from 49 U.S.C. 5304(l), and States 

are not required to designate RTPO’s, so 

such designation should not negatively 

impact the commenter’s rural 

transportation planning process. 

Two commenters expressed support 

for FTA’s proposal to provide greater 

flexibility to States when making minor 

revisions to the POP. Commenters noted 

that while the POP is not a MAP–21 

requirement, the Statewide 

Transportation Improvement Plan 

(STIP) is, and therefore, FTA should 

avoid language in the circular that might 

lead FTA regional offices to require 

applicants to include unnecessary 

details with the POP submissions. 

In response, FTA notes there may be 

instances when a regional office may 

require additional information for 

oversight purposes that may not be 

listed in the circular. In addition, if a 

State includes projects for both rural 

areas and small urbanized areas in the 

POP, the regional office may need 

additional information in order to 

obligate the funds. Reviewing the POP 

at the time an applicant submits a grant 

application is necessary to allow FTA to 

check that the requirements of the 

Federal Funding Accountability and 

Transparency Act (FFATA) are met and 

that the distribution of resources seems 

reasonable. 

Some commenters recommended that 

FTA amend its pre-award process to 

provide recipients with immediate 

approval to incur costs and seek Federal 

reimbursement for certain categories of 

projects. In response, FTA notes that 

currently, pre-award authority for 

formula funds is granted for a period of 

time consistent with the current 

authorization or two fiscal years in 

advance, whichever is longer. This 

allows recipients to expend anticipated 

resources in advance of the funds being 

obligated so long as all Federal 

requirements have been met. We believe 

this level of pre-award authority for 

Section 5311 funds is broader than what 

the commenters recommend. 

Some commenters asserted the 

proposed text for revising POP 

submissions in section 5b(3)(c)(1) was 

vague and recommended it be revised 

for clarification. In response, FTA has 

revised the circular to include a specific 

example to assist with interpreting this 

requirement. FTA also notes that it is in 

the process of developing a new 

electronic award management system 

and will continue to consider ways to 

streamline the grant process as a part of 

the new system. 

One commenter stated the 15 percent 

requirement for service that supports 

intercity bus has proven impracticable, 

and that this ‘‘fixed percentage’’ does 

not allow States and communities to 

determine the appropriate mix of public 

transportation services. The commenter 

suggested FTA’s ‘‘rigid definition’’ of 

intercity bus makes services between 

significant employment, housing, 

recreational and retail centers ineligible, 

even though such services are critical to 

the economic vitality of rural 

communities. Title 49 U.S.C. 5311(f) 

states that ‘‘at least’’ 15 percent of 

Section 5311 funds made available to a 

State in a fiscal year will be used for the 

intercity bus transportation program. 

This is a floor, not a ceiling, and each 

State has discretion regarding whether 

to expend more than the statutory 

minimum of 15 percent for intercity 

bus. FTA further notes that one 

objective of the intercity bus program is 

to support connections between rural 

areas and the larger regional or national 

system of intercity bus service. 

Transportation between employment, 

housing, recreational and retail centers 

may be provided by fixed route, 

demand-responsive, or commuter bus 

service. Please see the discussion of 

chapter VIII, below, for additional 

comments on intercity bus service. 

E. Chapter V—Program Management 

and Administrative Requirements 

FTA proposed amendments to this 

chapter to clarify and update 

established requirements for recipients 

of Federal funds. 

In the proposed circular under section 

3, Equipment Management, FTA added 

statutory language found in 49 U.S.C. 

5334(h) related to the transfer of 

property. Several commenters sought 

clarification regarding the process FTA 

will use for reviewing the transfer of 

property acquired with Section 5311 

funds and no longer needed for a public 

transportation purpose. In particular, 

commenters found this to be 

inconsistent with the direction given in 

49 CFR 18.32, which allows States to 

follow their own procedures for use, 

management, and disposition of 

equipment. In response, when 

equipment has reached the end of its 

useful life, States may follow their own 

procedures. However, and consistent 

with FTA’s Master Agreement, if a State 

withdraws equipment from public 

transportation service prior to the end of 

the equipment’s useful life, FTA retains 

a Federal interest in that equipment and 

the State must notify FTA of the 

withdrawal. FTA has added language to 

this section to clarify this requirement. 

One commenter, addressing language 

in section 5, Procurement, asked if a 

competitive process must be used before 

a local governmental authority may pass 

through funds to a non-profit 

organization subrecipient. A bidding 

process is not required before a local 

governmental authority may pass 

through Section 5311 funds to a nonprofit organization provided the nonprofit would otherwise be eligible under 

Section 5311 to receive funds directly 

from the State as a subrecipient, and the 

non-profit uses the funds to pursue its 

own rural area transit project. 

Two commenters noted that the small 

purchase threshold was listed at 

$150,000 in section 5.a and at $100,000 

in section 5.d and asked which was 

correct. On December 26, 2013, the 

Office of Management and Budget 

issued final guidance 2 CFR Part 200 

‘‘Uniform Administrative Requirements, 

Cost Principles, and Audit 

Requirements for Federal Awards’’ also 


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known as the ‘‘Super Circular.’’ 78 FR 

78590. The guidance, which will take 

effect when the U.S. DOT issues new 

regulations consistent with the guidance 

and will supersede and apply in lieu of 

the common grant rule (49 CFR parts 18 

and 19), will change the simplified 

acquisition threshold from $100,000 to 

$150,000 to match the Federal 

Acquisition Regulation. See 2 CFR 

200.88. Until U.S. DOT adopts the 

Super Circular by regulation, the 

threshold will remain $100,000. We 

have edited the final circular 

accordingly. 

One commenter asserted that the 

Federal Funding Accountability and 

Transparency Act (FFATA) reporting 

deadlines cannot be met due to 

administrative processing delays. The 

commenter noted that in a specific 

instance, five weeks after a grant was 

pinned (funds obligated) the grant was 

not yet in the FFATA database. As a 

reminder, the reporting deadline is not 

contingent on when FTA awards the 

grant to the recipient, but when the 

recipient makes an award to a 

subrecipient. FTA does not have the 

authority to change the reporting 

deadline, and advises recipients to 

report as expeditiously as possible when 

there is a delay in having the grant 

posted to the FFATA database. 

F. Chapter VI—State Management Plans 

FTA proposed two substantive 

changes to this chapter. One change 

required the State to document the 

process used to validate the source of 

in-kind match for intercity bus 

transportation when it is used as the 

local match. The second change aligned 

the circular with changes to 49 U.S.C 

5310 as amended by MAP–21, which no 

longer permits Section 5310 funds to be 

transferred to Section 5311. 

FTA did not receive any substantive 

comments to this chapter. We have 

made minor technical corrections. For 

example, in section 1, General, we 

struck a sentence reading, ‘‘A State may 

be required to update its SMP if section 

5339 funds are transferred to an area 

with a population under 50,000.’’ In its 

place, we have added section 5339 to 

the list of programs that States must 

include in their policies and procedures 

(i.e., section 5310, 5311, 5316, 5317 and 

5339). We also made a technical 

correction to the charter language so it 

is consistent with the charter rule. 

G. Chapter VII—Appalachian 

Development Public Transportation 

Assistance Program 

FTA proposed a new chapter for this 

circular in order to provide guidance for 

the Appalachian Development Public 

Transportation Program (ADTAP), a 

new program established by MAP–21. 

The ADTAP provides funds to support 

public transportation service in the 

Appalachian Region, which includes all 

of West Virginia and eligible counties in 

12 other States: Alabama, Georgia, 

Kentucky, Maryland, Mississippi, New 

York, North Carolina, Ohio, 

Pennsylvania, South Carolina, 

Tennessee, and Virginia. 

Two entities commented on this 

chapter. One commenter asked if 

ADTAP funding would be in addition to 

Section 5311 funds that may be 

allocated for a project within an eligible 

Appalachian county. Funding for 

ADTAP projects is a set-aside from 

available Section 5311 funds and a 

separate allocation to States in the 

Appalachian Region. States should use 

ADTAP formula funds for transit 

projects within the designated 

Appalachian region and use other 

Section 5311 funds to address needs not 

covered by the ADTAP allocation. 

The other commenter recommended 

elimination of the ADTAP funding in its 

entirety. In response, FTA notes that 

ADTAP was established by statute; 

therefore, FTA will implement the 

program in accordance with Section 

5311(c)(2). FTA did not make any 

substantive changes to this chapter. 

H. Chapter VIII—Intercity Bus 

FTA proposed two revisions for 

intercity bus transportation services to 

reflect a change and a deadline in the 

law. FTA noted that the previous 

‘‘Intercity Pilot Match Program,’’ which 

FTA established in 2007, is now 

codified under 49 U.S.C. 5311(f) and we 

requested comments on the proposed 

guidance for ‘‘in-kind’’ match to 

implement the statute. Second, FTA 

deleted the section on the over-the-road 

bus accessibility incentive program, as 

MAP–21 repealed the program, and we 

updated the ADA regulation section of 

this chapter to reflect the requirement in 

49 CFR 37.185 that as of October 29, 

2012, over-the-road buses (OTRB) that 

provide fixed route service must be 

accessible to and usable by individuals 

with disabilities, including individuals 

who use wheelchairs. 

Nearly half of the entities commenting 

on the circular commented on this 

chapter. The majority of commenters 

disagreed with FTA’s proposal 

regarding the determination for in-kind 

match for intercity bus services. The 

commenters asserted that FTA’s 

proposal to limit eligible costs to capital 

costs was inconsistent with 49 U.S.C. 

5311(g)(3)(D). In response, FTA has 

revised section 5 of this chapter to 

reflect that FTA will allow the eligible 

net cost to be calculated using one of 

two options. FTA funds may only be 

used to fund the net costs of a project, 

so in either option, fare revenue must be 

subtracted from the total cost to 

determine the eligible amount of in-kind 

match. In the final circular, FTA 

maintains the option of using capital 

cost of contracting ratios for simplicity 

in calculating the net costs of the 

project. In addition, the final circular 

further notes that on a case-by-case 

basis, if a private operator has excess 

funds of both unsubsidized capital and 

operating costs for providing intercity 

services, FTA may allow these funds to 

count toward the in-kind match. The 

private provider must demonstrate that 

some of the operating costs of the 

service are being cross-subsidized by 

profits elsewhere on its system, and not 

fully covered by farebox revenue. The 

appropriate FTA regional office will be 

available to assist a recipient in 

determining in-kind match 

determinations and the documentation 

required to support a private operator’s 

cost basis. 

One commenter suggested that FTA 

change the term ‘‘intercity bus service’’ 

to ‘‘intercity transportation service’’ in 

order to not ‘‘favor connections to one 

mode over connections to others.’’ By 

statute, Section 5311(f) addresses the 

eligibility of ‘‘intercity bus 

transportation,’’ so FTA declines to 

make that change. Another commenter 

asserted that because the guidance 

limits the definition of ‘‘intercity bus 

service’’ to service ‘‘that makes 

meaningful connections with scheduled 

intercity bus service to more distant 

points, if such service is available,’’ that 

this has been interpreted as prohibiting 

the use of these funds for intercity bus 

service that connects to the national 

aviation or intercity passenger rail 

networks. 

In response, FTA notes that the 

guidance in this chapter does not 

prohibit intercity bus feeder service 

from providing access to intercity 

connections with rail or air service. 

However, FTA believes that feeder 

service linkage to the national rail 

network that is not linked to small 

public transportation operators (e.g., 

through an intermodal terminal/stop) 

does not comply with 49 U.S.C. 5311(f). 

To clarify the eligibility of connections 

with rail service when part of an 

intermodal terminal, we have amended 

section 8, Eligible Activities, to provide 

that private intercity bus operators may 

participate in improvements to existing 

intercity terminal facilities for rural 

passengers, as well as modifications to 

transit facilities to facilitate shared use 


asabaliauskas on DSK5VPTVN1PROD with NOTICES
63668 Federal Register / Vol. 79, No. 206 / Friday, October 24, 2014 / Notices 

1Concurrently with its verified notice of 

exemption, MassDOT filed a motion to dismiss it 

on the ground that the transaction does not require 

authorization from the Board. The motion to 

dismiss will be addressed in a subsequent Board 

decision. 

by intercity bus, intercity rail, and rural 

transit operators. 

One commenter was encouraged by 

the definition of ‘‘feeder service’’ but 

recommended that FTA require or 

provide incentives to States for Section 

5311 intercity bus service projects that 

directly involve rural districts to ensure 

better and more meaningful access to 

intercity bus service. In response, FTA 

notes that States have flexibility to 

administer the program to meet the 

needs of their rural regions and districts, 

so declines to make the suggested 

change. 

Lastly, one commenter read Section 

10, ADA Regulations, to mean that any 

and all Section 5311(f) over-the-road 

intercity bus recipients, subrecipients 

and contractors must use vehicles that 

are fully wheelchair accessible. While 

that is true of large operators that are 

Class I motor carriers providing fixedroute service, the ADA regulations allow 

small operators greater flexibility. Small 

operators can either ensure that vehicles 

are readily accessible to and usable by 

individuals with disabilities, including 

individuals who use wheelchairs, or 

ensure that equivalent service is 

provided to individuals with 

disabilities. We have amended this 

section accordingly. 

I. Chapter IX—Rural Transportation 

Assistance Program (RTAP) 

FTA did not propose any substantive 

changes for this chapter and did not 

receive any comments. The RTAP 

continues to provide funding to assist in 

the design and implementation of 

training and technical assistance 

projects, research, and other support 

services. We did not make any 

substantive changes to this chapter. 

J. Chapter X—Public Transportation on 

Indian Reservations 

FTA proposed a new chapter in the 

circular to address public transportation 

on Indian reservations, or the ‘‘Tribal 

Transit Program.’’ Section 5311(c) 

authorizes $5 million annually for this 

program, distributed on a competitive 

basis; and $25 million annually for this 

program, apportioned by a statutory 

formula found in Section 5311(j). The 

formula apportions funds on the basis of 

vehicle revenue miles and the number 

of low-income individuals residing on 

tribal lands. FTA received comments 

from six entities regarding this chapter. 

Two commenters expressed 

appreciation for the new formula 

funding, while others had concerns 

about the basis for determining how 

much assistance Tribes receive, and 

expressed concern that they no longer 

receive enough Tribal Transit funding to 

operate their existing systems. 

FTA understands that the transition 

from a $15 million discretionary 

program to a mixed formula and 

discretionary program has been 

challenging for some Tribes, despite the 

fact that the total funding level doubled. 

Generally, the comments FTA received 

on the Section 5311 circular were 

addressed as part of the tribal 

consultation process FTA initiated last 

year. On November 9, 2012, FTA 

published a notice in the Federal 

Register (77 FR 67439) in order to (1) 

introduce FTA’s consultation process 

and schedule for implementing changes 

to the Tribal Transit Program due to 

MAP–21; (2) describe and seek 

comment on the methodology for the 

formula allocation and the assumptions 

made regarding which Tribes are 

eligible for the formula program; (3) 

seek comment on the terms and 

conditions for the formula and 

discretionary components of the 

program; and (4) seek comment on how 

the discretionary program resources 

should be allocated. As part of the tribal 

consultation process, FTA conducted 

two outreach meetings in November and 

December of 2012. After considering 

comments, FTA published a subsequent 

notice in the Federal Register (78 FR 

27284, May 9, 2013) in which it 

responded to issues presented as a 

result of the consultation process. That 

notice also announced the funding 

levels and framework for the Tribal 

Transit Program, as well as a notice of 

funding availability (NOFA) for FY 13 

funds. FTA encourages interested 

stakeholders to review the two Federal 

Register notices, available on FTA’s 

Web site (http://www.fta.dot.gov/

legislation_law/federal_register_

notices.php) if they have additional 

concerns about the funding or 

framework of this program. FTA has not 

made any substantive edits to this 

chapter. 

K. Chapter XI—Other Provisions 

This chapter describes cross-cutting 

Federal requirements that apply to the 

Section 5311 Program. FTA did not 

receive any substantive comments on 

this chapter and did not make any 

substantive edits. 

L. Appendices 

One commenter requested FTA 

include additional information related 

to the requirements of 49 U.S.C. 5333(b) 

(labor protections) in Appendix A. It is 

not clear to us what additional 

information would be helpful, and we 

recommend that interested stakeholders 

contact their FTA regional office if they 

have questions regarding the role of the 

Department of Labor in processing 

Section 5311 grants. 

Another commenter recommended 

that Appendix B include a POP section 

for JARC. In response, we have added 

language indicating that JARC projects 

must be coded under 646–00 SCOPE in 

the grant and reserved using FPC 03. 

Lastly, one commenter asked for 

clarification regarding section 3 of 

Appendix F and the methodology for 

excess or insufficient in-kind match 

determinations for intercity bus. FTA 

provided additional clarification in 

revisions to Chapter VIII, Intercity Bus 

and eliminated Appendix F as the 

information was redundant with the 

information contained in the chapter. 

Therese W. McMillan, 

Acting Administrator. 

[FR Doc. 2014–25309 Filed 10–23–14; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF TRANSPORTATION 

Surface Transportation Board 

[Docket No. FD 35863] 

Massachusetts Department of 

Transportation—Acquisition 

Exemption—Pan Am Southern LLC 

The Massachusetts Department of 

Transportation (MassDOT), a noncarrier, 

has filed a verified notice of exemption 

under 49 CFR 1150.31 to acquire from 

Pan Am Southern LLC (PAS) certain 

railroad assets and associated rail line 

right-of-way, known generally as a 

portion of the Connecticut River Main 

Line (also known as the ‘‘Knowledge 

Corridor’’), approximately 49.67 route 

miles in length, from Station 2+25 in 

Springfield, Mass., to the 

Massachusetts-Vermont border at 

Station 2613+66.85 at East Northfield, 

Mass. (the Railroad Assets). As part of 

this transaction, MassDOT would also 

acquire any right, title, or interest that 

PAS may currently possess to operate 

passenger trains over a segment of 

Amtrak-owned line between Springfield 

and the Massachusetts-Connecticut 

border. According to MassDOT, it is not 

acquiring any freight operating rights, 

and PAS will retain a permanent, 

exclusive freight operating easement 

over the Railroad Assets.1

MassDOT states that the proposed 

transaction has been agreed upon 


asabaliauskas on DSK5VPTVN1PROD with NOTICES