126 Federal Register / Vol. 67, No. 1 / Wednesday, January 2, 2002 / Notices

DEPARTMENT OF TRANSPORTATION

Federal Transit Administration

FTA Fiscal Year 2002 Apportionments,

Allocations and Program Information

AGENCY: Federal Transit Administration

(FTA), DOT.

ACTION: Notice.

SUMMARY: The Department of

Transportation (DOT) and Related

Agencies Appropriations Act for Fiscal

Year 2002 (FY 2002 DOT

Appropriations Act) (Pub. L. 107–87)

was signed into law by President Bush

on December 18, 2001, and provides FY

2002 appropriations for the Federal

Transit Administration (FTA) transit

assistance programs. Based upon this

Act, the Transportation Equity Act for

the 21st Century (TEA–21), and 49

U.S.C. Chapter 53, this notice contains

a comprehensive list of apportionments

and allocations for transit programs.

In addition, prior year unobligated

allocations for the section 5309 New

Starts and Bus Programs are listed. The

FTA policy regarding pre-award

authority to incur project costs, Letter of

No Prejudice Policy, and other pertinent

program information are provided.

FOR FURTHER INFORMATION CONTACT: The

appropriate FTA Regional

Administrator for grant-specific

information and issues; Mary Martha

Churchman, Director, Office of Resource

Management and State Programs, (202)

366–2053, for general information about

the Urbanized Area Formula Program,

the Nonurbanized Area Formula

Program, the Rural Transit Assistance

Program, the Elderly and Persons with

Disabilities Program, the Clean Fuels

Formula Program, the Over-the-Road

Bus Accessibility Program, the Capital

Investment Program, or the Job Access

and Reverse Commute Program; or Paul

L. Verchinski, Chief, Statewide and

Intermodal Planning Division, (202)

366–1626, for general information

concerning the Metropolitan Planning

Program and the Statewide Planning

and Research Program; or Henry Nejako,

Program Management Officer, Office of

Research, Demonstration and

Innovation, (202) 366–3765, for general

information about the National Planning

and Research Program.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Background

II. Overview

A. Fiscal Year 2002 Appropriations

B. TEA–21 Authorized Program Levels

C. Project Management Oversight

D. VIII Paralympiad for the Disabled

III. Fiscal Year 2002 Focus Areas

A. Transit Safety and Security

B. 2000 Census

C. TEAM-Web

D. New Starts Rule and Workshops

E. Intelligent Transportation Systems

F. Environmental Streamlining

IV. Metropolitan Planning Program and

Statewide Planning and Research

Program

A. Metropolitan Planning Program

B. Statewide Planning and Research

Program

C. Data Used for Metropolitan Planning

and Statewide Planning and Research

Apportionments

D. FHWA Metropolitan Planning Program

E. Local Match Waiver for Specified

Planning Activities

F. Planning Emphasis Areas for Fiscal Year

2002

G. Federal Planning Certification Reviews

H. Consolidated Planning Grants

I. New Starts Approval to Enter

Preliminary Engineering and Final

Design

V. Urbanized Area Formula Program

A. Total Urbanized Area Formula

Apportionments

B. Fiscal Year 2001 Apportionment

Adjustments

C. Data Used for Urbanized Area Formula

Apportionments

D. Urbanized Area Formula

Apportionments to Governors

E. Transit Enhancements

F. Fiscal Year 2002 Operating Assistance

G. Designated Transportation Management

Areas

H. Urbanized Area Formula Funds Used

for Highway Purposes

I. National Transit Database Internet

Reporting and Redesign Effort

VI. Nonurbanized Area Formula Program and

Rural Transit Assistance Program (RTAP)

A. Nonurbanized Area Formula Program

B. Rural Transit Assistance Program

(RTAP)

VII. Elderly and Persons with Disabilities

Program

VIII. FHWA Surface Transportation Program

and Congestion Mitigation and Air

Quality Funds Used for Transit Purposes

(Title 23, U.S.C. 104)

A. Transfer Process

B. Matching Share for FHWA Transfers

IX. Capital Investment Program

A. Fixed Guideway Modernization

B. New Starts

C. Bus

X. Job Access and Reverse Commute Program

XI. Over-the-Road Bus Accessibility Program

XII. Clean Fuels Formula Program

XIII.National Planning and Reserach Program

XIV. Unit Values of Data for Urbanized Area

Formula Program, Nonurbanized Area

Formula Program, anf Fixed Guideway

Modernization

XV. Period of Availability of Funds

XVI. Automatic Pre-Award Authority to

Incur Project Costs

A. Policy

B. Conditions

C. Environmental, Planning, and Other

Federal Requirements

D. Pre-award Authority for New Starts

Projects

1. Preliminary Engineering and Final

Design

2. Acquisition Activities

3. National Environmental Policy Act

(NEPA) Activities

XVII. Letters of No Prejudice (LONP) Policy

A. Policy

B. Conditions

C. Environmental, Planning, and Other

Federal Requirements

D. Request for LONP

XVIII. FTA Homepage on the Internet

XIX. FTA Fiscal Tear 2002 Annual List of

Certifications and Assurances

XX. Grant Application Procedures

Tables

1. FTA FY 2002 Appropriations for Grant

Programs

2. FTA FY 2002 Metropolitan Planning

Program and Statewide Planning and

Research Program Apportionments

3. FHWA FY 2002 Estimated Metropolitan

Planning (PL) Program Apportionments

4. FTA FY 2002 Urbanized Area Formula

Apportionments

5. FTA FY 2002 Nonurbanized Area Formula

Apportionments, and Rural Transit

Assistance Program (RTAP) Allocations

6. FTA FY 2002 Elderly and Persons with

Disabilities Apportionments

7. FTA FY 2002 Fixed Guideway

Modernization Apportionments

8. FTA FY 2002 New Starts Allocations

8A. FTA Prior Year Unobligated New Starts

Allocations

9. FTA FY 2002 Bus Allocations

9A. FTA Prior Year Unobligated Bus

Allocations

10. FTA FY 2002 Job Access and Reverse

Commute Program Allocations

11. FTA FY 2002 National Planning and

Research Program Allocations

12. FTA TEA–21 Authorization Levels

(Guaranteed Funding Only)

12A. FTA TEA–21 Authorization Levels

(Guaranteed and Non-Guaranteed)

Funding)

13. FTA FY 2002 Apportionment Formula for

Urbanized Area Formula Program

14. FTA FY 1998–2003 Fixed Guideway

Modernization Program Apportionment

Formula

15. FTA FY 2002 Formula Grant

Apportionments Unit Values of Data

I. Background

Metropolitan Planning funds are

apportioned by statutory formula to the

Governors for allocation to Metropolitan

Planning Organizations (MPOs) in

urbanized areas or portions thereof to

provide funds for their Unified Planning

Work Programs. Statewide Planning and

Research funds are apportioned to

States by statutory formula to provide

funds for their Statewide Planning and

Research Programs. Urbanized Area

Formula Program funds are apportioned

by statutory formula to urbanized areas

and to Governors to provide capital,

operating and planning assistance in

urbanized areas. Nonurbanized Area

Formula Program funds are apportioned

Federal Register / Vol. 67, No. 1 / Wednesday, January 2, 2002 / Notices 127

by statutory formula to Governors for

capital, operating and administrative

assistance in nonurbanized areas.

Elderly and Persons with Disabilities

Program funds are apportioned by

statutory formula to Governors to

provide capital assistance to

organizations providing transportation

service for the elderly and persons with

disabilities. Fixed Guideway

Modernization funds are apportioned by

statutory formula to specified urbanized

areas for capital improvements in rail

and other fixed guideways. New Starts

identified in the FY 2002 DOT

Appropriations Act and Bus Allocations

identified in the Conference Report

accompanying the Act are included in

this notice. FTA will honor those

designations included in report

language to the extent that the projects

meet the statutory intent of the specific

program. Job Access and Reverse

Commute (JARC) funds are awarded on

a competitive basis. JARC projects

identified in the FY 2002 DOT

Appropriations Act are included in this

notice. Over-the-Road Bus Accessibility

Program projects are also competitively

selected.

II. Overview

A. Fiscal Year 2002 Appropriations

The FY 2002 funding amounts for

FTA programs are displayed in Table 1.

The following text provides a narrative

explanation of the funding levels and

other factors affecting the

apportionments and allocations.

B. TEA–21 Authorized Program Levels

TEA–21 provides a combination of

trust and general fund authorizations

that total $7.737 billion for the FY 2002

FTA program. Of this amount, $6.747

billion was guaranteed under the

discretionary spending cap and made

available in the FY 2002 DOT

Appropriations Act. See Table 12 for

fiscal years 1998–2003 guaranteed

funding levels by program and Table

12A for the total of guaranteed and nonguaranteed levels by program.

Information regarding estimates of the

funding levels for FY 2003 by State and

urbanized area is available on the FTA

Web site. The FY 2003 numbers are

intended for planning purposes only but

may be used for programming

Metropolitan Transportation

Improvement Programs and Statewide

Transportation Improvement Programs.

Actual apportionment figures for FY

2002 are contained in this notice, while

apportionment figures for FY 1998–FY

2001 can be found in the appropriate

FTA fiscal year apportionment notice,

which is available on the FTA Web site.

C. Project Management Oversight

Section 5327 of Title 49 U.S.C.,

permits the Secretary of Transportation

to use up to one-half percent of the

funds made available under the

Urbanized Area Formula Program and

the Nonurbanized Area Formula

Program, and three-quarters percent of

funds made available under the Capital

Investment Program to contract with

any person to oversee the construction

of any major project under these

statutory programs to conduct safety,

procurement, management and financial

reviews and audits, and to provide

technical assistance to correct

deficiencies identified in compliance

reviews and audits. Language in the

2002 DOT Appropriations Act increases

the amount made available under the

Capital Investment Program for

oversight activities to one percent.

D. VIII Paralympiad for the Disabled

The FY 2002 DOT Appropriations Act

made $5 million available from the

formula grants program for the VIII

Paralympaid for the Disabled, to be held

in Salt Lake City, Utah. The funds shall

be available for grants for the costs of

planning, delivery and temporary use of

transit vehicles for special

transportation needs and construction of

temporary transportation facilities for

the VIII Paralympiad for the Disabled.

III. Fiscal Year 2002 Focus Areas

A. Transit Safety and Security

Public transit agencies throughout the

nation have stepped up security efforts

following the terrorist events of

September 2001. FTA has launched an

FY 2002 effort to assist transit providers

to address security issues and has

refocused funding to specific securityrelated activities. Initially, FTA will

deploy security assessment teams to the

largest transit systems in the country.

These assessment findings and best

practices will enable the FTA to provide

extended assistance to all transit

agencies to evaluate and update their

emergency response plans. FTA will

provide technical and funding

assistance to transit agencies for fullscale emergency response drills based

on their updated response plans and

vulnerability assessments. Free regional

workshops will offer security and

emergency response training to local

transit employees.

FTA has identified $2 million of FY

2002 research funding to undertake

security-related transit research under

the auspices of the Transit Cooperative

Research Program of the National

Academy of Sciences.

Also, recipients of section 5307

formula funding are reminded that at

least one percent of the amount a

grantee receives each fiscal year must be

expended on ‘‘mass transportation

security projects’’ unless the grantee

certifies, and the Secretary of

Transportation accepts, that the

expenditure for security projects is

unnecessary. It is unlikely that FTA will

waive this requirement.

Another potential source of funding

for transit security enhancements is

through the FHWA transfer of flexible

formula funds, as provided in 23 U.S.C.

104, which, in conjunction with Title 23

U.S.C. 120, provides transit agencies a

100 percent Federal share for safety

projects (subject to a nationwide 10

percent program limitation).

B. 2000 Census

The Census Bureau identifies and

classifies urban and rural population

and delineates urbanized areas after

each decennial census. The FTA uses

urbanized and rural designations and

statistical data for a number of purposes,

including the apportionment of funds

for its formula based programs.

The Census Bureau had not

completed the process of delineating

urbanized and rural areas for the 2000

Census at the time FTA apportioned FY

2002 funds. Therefore, the 1990 Census

data was used for the FY 2002

apportionments contained in this

notice.

It is anticipated that a number of areas

will change categories under the 2000

Census, as a result of growth in

population and/or the application of

new criteria that will be used to define/

designate urbanized and rural areas.

Once FTA receives the 2000 Census

data, we will post, on the FTA Website,

estimated FY 2003 apportionments for

the formula programs.

For further information contact Ken

Johnson, FTA Office of Resource

Management and State Programs, at

(202) 366–2053.

C. TEAM-Web

The Transportation Electronic Award

Management system (TEAM) is FTA’s

electronic grant making and record

keeping system. On October 1, 2001,

FTA released TEAM-Web, a new

Internet version of the TEAM system.

TEAM-Web permits grantees to submit

their grant information via the Internet

and provides for continued and

enhanced submission of grant

information electronically.

TEAM-Web provides the recipients of

financial assistance online access to the

FTA information resources that support

their mission critical operations,

128 Federal Register / Vol. 67, No. 1 / Wednesday, January 2, 2002 / Notices

including real time access to detailed

disbursements by project, balances in

formula budget accounts, and the status

of applications in the award process.

The new system also has an email

notification process that will ensure

accountability when processing

applications through the FTA Offices

and the Department of Labor. All

current user information has been

migrated to the Web version of TEAM.

FTA has conducted training sessions on

how to navigate TEAM-Web in its

Headquarters and Regional Offices. For

information on future training sessions,

contact the appropriate FTA Regional

Office.

To access TEAM-Web, log onto the

Internet at http://

FTATEAMWeb.fta.dot.gov. For

additional information, contact Glenn

Bottoms, Chief, Transit Data and

Support Division, (202) 366–1632.

D. New Starts Rule and Workshops

TEA–21 requires the FTA to issue

regulations on the manner in which

candidate projects for capital

investment grants or loans for new fixed

guideway systems and extensions to

existing systems (New Starts) will be

evaluated and rated. The Major Capital

Investment Projects Final Rule (49 CFR

Part 611), referred to as the New Starts

Final Rule, was published in the

Federal Register on December 7, 2000,

and became effective on April 6, 2001.

Electronic access to this Final Rule

and related documents is available

through the FTA Web site (http://

www.fta.dot.gov), under the New Starts

section. Paper copies of this Final Rule

and other documentation can be

obtained by contacting FTA at one of

our Regional Offices.

As in the previous fiscal year, FTA

will conduct outreach sessions and

workshops in FY 2002 to introduce the

Final Rule and to continue longstanding

outreach efforts on the New Starts

program. Information on scheduled

workshops can be obtained by

contacting any FTA Regional Office, as

well as the FTA Office of Planning and

the FTA Office of Budget and Policy.

E. Intelligent Transportation Systems

(ITS)

Section 5206(e) of TEA–21 requires

that Intelligent Transportation Systems

(ITS) projects using funds from the

Highway Trust Fund (including the

Mass Transit Account) conform to

National ITS Architecture and

Standards. The FTA National ITS

Architecture Consistency Policy for

Transit Projects implements the TEA–21

requirements and went into effect on

April 8, 2001. The Policy is available on

the FTA Web site, and guidance

material is available on the

Departmental ITS Web site at

www.its.dot.gov. These standards and

requirements apply to FY 2002

allocations included in this notice that

contain ITS components. Using existing

FTA oversight procedures, FTA has

initiated a program to provide initial

oversight and technical assistance with

respect to National ITS Architecture

Consistency requirements.

Questions regarding the applicability

of these standards and requirements

should be addressed to the FTA

Regional Office or FTA Office of

Research, Demonstration and

Innovation, at (202) 366–4991.

F. Environmental Streamlining

TEA–21 directs DOT to expedite the

environmental review process for

proposed highway and transit projects.

With this apportionments notice, FTA is

introducing two measures concerning

proposed major transit investments

(New Starts) that will support timely

delivery of projects, while maintaining

and enhancing protection of the human

and natural environment.

First, FTA is extending automatic preaward authority to proposed New Starts

projects for costs incurred to acquire

real property and real property rights

upon the completion of the National

Environmental Policy Act (NEPA)

review of the proposed project. NEPA

review is complete when FTA signs an

environmental Record of Decision

(ROD) or Finding of No Significant

Impact (FONSI) or makes a Categorical

Exclusion (CE) determination. This

measure will enable grant applicants to

begin earlier to assist persons and

businesses that will be displaced by the

project in a manner consistent with

commitments made as part of the NEPA

review and in compliance with the

Uniform Relocation Assistance and Real

Property Acquisition Policies Act

(URA). It will also help grant applicant

to initiate the lengthy process of

acquiring property earlier.

Second, FTA will extend automatic

pre-award authority to proposed New

Starts projects for costs incurred to carry

out the NEPA review process and to

prepare an Environmental Impact

Statement (EIS), Environmental

Assessment (EA), Categorical Exclusion

(CE), or other environmental documents

for that project upon the inclusion of

that project in a federally approved

State Transportation Improvement

Program (STIP). FTA had previously

given pre-award authority for use of

formula funds. Now New Starts funds

may serve as a funding source for these

New Starts project NEPA activities. This

measure will eliminate unnecessary

delays in starting up the conceptual

engineering, public involvement

process, and interagency coordination

for the project.

For additional information, contact

Joseph Ossi, FTA Office of Planning,

(202) 366–1613.

IV. Metropolitan Planning Program and

State Planning and Research Program

A. Metropolitan Planning Program

Funding made available for the

Metropolitan Planning Program (49

U.S.C. 5303) in the FY 2002 DOT

Appropriations Act is $55,422,400,

which is the guaranteed funding level

under TEA–21. The FY 2002

Metropolitan Planning Program

apportionment to States for MPOs’ use

in urbanized areas totals $55,662,971.

This amount includes $55,422,400 in

FY 2002 funds, and $240,571 in prior

year deobligated funds available for

reapportionment under this program. A

basic allocation of 80 percent of this

amount ($44,530,377) is distributed to

the States based on the State’s urbanized

area population as defined by the U.S.

Census Bureau for subsequent State

distribution to each urbanized area, or

parts thereof, within each State. A

supplemental allocation of the

remaining 20 percent ($11,132,594) is

also provided to the States based on an

FTA administrative formula to address

planning needs in the larger, more

complex urbanized areas. Table 2

contains the final State apportionments

for the combined basic and

supplemental allocations. Each State, in

cooperation with the MPOs, must

develop an allocation formula for the

combined apportionment, which

distributes these funds to MPOs

representing urbanized areas, or parts

thereof, within the State. This formula,

which must be approved by the FTA,

must ensure to the maximum extent

practicable that no MPO is allocated less

than the amount it received by

administrative formula under the

Metropolitan Planning Program in FY

1991 (minimum MPO allocation). Each

State formula must include a provision

for the minimum MPO allocation.

Where the State and MPOs desire to use

a new formula not previously approved

by FTA, it must be submitted to the

appropriate FTA Regional Office for

prior approval.

By April 2002, the Census Bureau is

expected to make available detailed

results of the 2000 Census and designate

new urbanized areas. When the Census

Bureau issues its population data, FTA

will request that States reaffirm these inState formulas. A reaffirmation or new

Federal Register / Vol. 67, No. 1 / Wednesday, January 2, 2002 / Notices 129

in-State formula should be submitted to

the FTA Regional Office in time to

receive approval before October 1, 2002.

Currently, guaranteed and authorized

funding levels for each State over the

life of TEA–21 (fiscal years 1999–2003)

based on the 1990 Census, are posted at

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

gaf.htm. FTA will post revised fiscal

year 2003 guaranteed and authorized

funding levels based on the 2000 Census

for each State at this same Web site

address, when 2000 Census data

becomes available. This information

should be utilized by each State when

reaffirming or revising in-State

formulas.

B. State Planning and Research Program

Funding made available for the State

Planning and Research Program (49

U.S.C. 5313(b)) in the FY 2002 DOT

Appropriations Act is $11,577,600, the

guaranteed funding level under TEA–

21.

The FY 2002 apportionment for the

State Planning and Research Program

(SPRP) totals $11,698,648. This amount

includes $11,577,600 in FY 2002 funds,

and $121,048 in prior year deobligated

funds, which have become available for

reapportionment under this program.

Final State apportionments for this

program are also contained in Table 2.

These funds may be used for a variety

of purposes such as planning, technical

studies and assistance, demonstrations,

management training, and cooperative

research. In addition, a State may

authorize a portion of these funds to be

used to supplement metropolitan

planning funds allocated by the State to

its urbanized areas, as the State deems

appropriate.

C. Data Used for Metropolitan Planning

and State Planning and Research

Apportionments

Population data from the 1990 Census

is used in calculating these

apportionments. The Metropolitan

Planning funding provided to urbanized

areas in each State by administrative

formula in FY 1991 was used as a ‘‘hold

harmless’’ base in calculating funding to

each State.

D. FHWA Metropolitan Planning

Program

For informational purposes, the

estimated FY 2002 apportionments for

the FHWA Metropolitan Planning

Program (PL) are contained in Table 3.

Estimated apportionments for the FY

2002 FHWA State Planning and

Research Program (SPRP) were not

available at the time of publication of

this notice.

E. Local Match Waiver for Specified

Planning Activities

Job Access and Reverse Commute

Planning. Federal, State and local

welfare reform initiatives may require

the development of new and innovative

public and other transportation services

to ensure that former welfare recipients

have adequate mobility for reaching

employment opportunities. In

recognition of the key role that

transportation plays in ensuring the

success of welfare-to-work initiatives,

FTA and FHWA permit the waiver of

the local match requirement for job

access and reverse commute planning

activities undertaken with both FTA

and FHWA Metropolitan Planning

Program and State Planning and

Research Program funds. FTA and

FHWA will support requests for waivers

when they are included in Metropolitan

Unified Planning Work Programs and

State Planning and Research Programs

and meet all other appropriate

requirements.

F. Planning Emphasis Areas for Fiscal

Year 2002

The FTA and FHWA identify

Planning Emphasis Areas (PEAs)

annually to promote priority themes for

consideration, as appropriate, in

metropolitan and statewide

transportation planning processes. To

support this, FTA and FHWA will

prepare an inventory of current practice,

guidance and training in those areas.

Opportunities for exchanging ideas and

experiences on innovative practices in

these topic areas also will be provided

throughout the year. For FY 2002, five

key planning themes have been

identified: (1) Consideration of safety

and security in the transportation

planning process; (2) integration of

planning and environmental processes;

(3) consideration of management and

operations within planning processes;

(4) consultation with local officials; and

(5) enhancing the technical capacity of

planning processes.

1. Safety and Security in the

Transportation Planning Process

TEA–21 emphasizes the safety and

security of transportation systems as a

national priority and calls for

transportation projects and strategies

that ‘‘increase the safety and security of

transportation systems.’’ This entails

integration of safety and facility security

into all stages of the transportation

planning process.

FTA and FHWA are working together

to advance the state-of-practice in

addressing safety and security in the

metropolitan and statewide planning

process through workshops and case

studies. A report prepared by the

Transportation Research Board (TRB),

Transportation Research Circular E–

C02, ‘‘Safety-Conscious Planning,’’

January 2001, describes the issues and

recommendations identified at a Safety

in Planning workshop held earlier. The

report is available on the TRB Web site

at www.nas.edu/trb. Also, the Institute

of Transportation Engineers (ITE) has

prepared a discussion paper on the

topic, entitled ‘‘The Development of the

Safer Network Transportation Planning

Process,’’ which is posted to their Web

site at [www.ite.org.]

2. Integrated Planning and

Environmental Processes

TEA–21 mandates the elimination of

the Major Investment Study as a standalone requirement, while integrating the

concept within the planning and project

development/environmental review

processes. A training course entitled

‘‘Linking Planning and NEPA’’ is being

developed and will be made available at

the National Transit Institute Web site—

[www.ntionline.com].

3. Consideration of Management and

Operations Within Planning Processes

TEA–21 challenges FHWA and FTA

to move beyond traditional capital

programs for improving the movement

of people and goods—focusing on the

need to improve the way transportation

systems are managed and operated. FTA

and FHWA have convened a working

group and have commissioned

discussion papers on the topic. This

information is available at http://

plan2op.fhwa.dot.gov.

4. Consultation With Local Officials

Consultation with local officials is a

vital yet sensitive issue within the

transportation planning process. Within

metropolitan areas, the MPO provides

the venue and policy context for this.

Outside of metropolitan areas, FHWA

and FTA are working to facilitate the

most effective consultation processes

within each State. FTA and FHWA will

continue to ensure effective

consultation between States and local

officials in non-metropolitan areas in

reviewing statewide planning and,

specifically, in making findings in

support of FTA and FHWA STIP

approvals.

5. Enhancing the Technical Capacity of

Planning Processes

Reliable information on current and

projected usage and performance of

transportation systems is critical to the

ability of planning processes to supply

credible information to decision-makers

130 Federal Register / Vol. 67, No. 1 / Wednesday, January 2, 2002 / Notices

to support preparation of plans and

programs that respond to their localities’

unique needs and policy issues. To

ensure the reliability of usage and

performance data, as well as the

responsiveness of policy forecasting

tools, an evaluation is needed of the

quality of information provided by the

technical tools, data sources, forecasting

models, as well as the expertise of staff

to ensure its adequacy to support

decision-making. And if this support is

found to be lacking, the responsible

agencies within metropolitan and

statewide planning processes are

encouraged to devote appropriate

resources to enhancing and maintaining

their technical capacity.

The metropolitan and statewide

transportation planning processes have

become critical tools for responding to

increasingly complex issues at the State

and local levels. Many of these issues

are encompassed in previously listed

planning emphasis areas (e.g., integrated

planning and environmental processes,

management and operations, analytical

tools and methods) and include much

more. It is essential that FTA and

FHWA provide technical assistance,

training, and information to our

customers to further enhance the skills

and capabilities they utilize to conduct

effective transportation planning

processes. The FTA and FHWA have

created the Metropolitan Capacity

Building (MCB) Program, and the

Statewide and Rural Capacity Building

Programs as tools to disseminate and

coordinate information, training, and

foster a dialogue for the exchange of

ideas. More information on the MCB

program can be found at

www.mcb.fhwa.dot.gov.

For further information on these

PEAs, contact Ken Lord, FTA

Metropolitan Planning Division, (202)

366–2836, or Shana Baker, FHWA

Office of Metropolitan Planning and

Programs, (202) 366–1862.

G. Federal Planning Certification

Reviews

The Intermodal Surface

Transportation Efficiency Act (ISTEA)

initiated, and TEA–21 continued, the

requirement for the FTA and FHWA to

certify, at least every three years, that

the planning processes conducted in the

largest metropolitan areas were being

carried out in compliance with

applicable provisions of Federal law.

This provision applies specifically to

localities termed ‘‘Transportation

Management Areas’’ (TMA), which are

urbanized areas with populations of

200,000 and above, or other urbanized

areas that may be designated by the

Secretary of Transportation. TEA–21

further required that, in conducting

these certification reviews, provisions

be made for public involvement

appropriate to the metropolitan area

under review.

To that end, an annual calendar of

prospective dates and locations for

certification reviews of TMAs

anticipated in FY 2002 has been

prepared and is posted on the FTA Web

site at http://www.fta.dot.gov/library/

planning/cert2002.htm.

For further information regarding

Federal certifications of the planning

process, contact: for FTA, Charles

Goodman, FTA Metropolitan Planning

Division, (202) 366–1944, or Scott Biehl,

FTA Office of Chief Counsel, (202) 366–

4063; for FHWA, Sheldon Edner, FHWA

Metropolitan Planning Division, (202)

366–4066, or Reid Alsop, FHWA Office

of the Chief Counsel, (202) 366–1371.

H. Consolidated Planning Grants

Since FY 1997, FTA and FHWA have

offered States the option of participating

in a pilot Consolidated Planning Grant

(CPG) program. Additional State

participants are sought so that FTA and

FHWA can benefit from the widest

possible range of participant input to

improve and further streamline the

process.

With the fund transfer provisions of

TEA–21, which were applied to the CPG

beginning in FY 2000, all funds (more

than 35 post-FY 1999 FHWA sources are

eligible for transfer) can be accessed by

indicating only whether the funds are

for State or metropolitan planning. 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 the CPG, States can report

metropolitan planning expenditures (to

comply with the Single Audit Act) for

both FTA and FHWA under the

Catalogue of Federal Domestic

Assistance number for FTA’s

Metropolitan Planning Program.

Additionally, for States with an FHWA

Metropolitan Planning (PL) 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. Currently, three

western States participating in the pilot

(California, Idaho, and Wyoming) are

using the FHWA PL match rate for

FTA’s Metropolitan Planning Program.

Pre-award authority has been granted

to FTA’s planning programs for the life

of TEA–21. This pre-award authority

enables States to continue planning

program activities from year to year

with the assurance that eligible costs

can later be converted to a regularly

funded Federal project without the need

for prior approval or authorization from

the granting agency. Beginning in FY

2000, the transfer procedures

established to implement the transfer

provision in TEA–21 (section 1103(i)

‘‘Transfer of Highway and Transit

Funds’’) is applicable to FHWA funds

used in CPG. For planning projects

funded through CPG, the State DOT

requests the transfer of funds in a letter

to the FHWA Division Office. The

FHWA-funded planning activities must

be in accordance with the State’s or

MPO’s Planning Work Program. The

letter must be signed by the appropriate

State official or their designee and must

specify the State and the amount of

funding to be transferred for the CPG by

apportionment category (e.g. STP,

CMAQ, Donor State Bonus, Funding

Restoration, etc.) and by appropriation

year. The letter should include only the

funding for planning activities

contained in the State’s or MPO’s

Planning Work Program. If no FTA

program, either Metropolitan Planning

(49 U.S.C. 5303) or Statewide Planning

and Research (49 U.S.C. 5313(b)), is

indicated for transfers to CPG, funds

will be credited to the Metropolitan

Planning Program.

As part of the pilot, FTA will

continue to work with participating

States to increase the flexibility and

further streamline the consolidated

approach to planning grants. For further

information on participating in the CPG

Pilot, contact Candace Noonan,

Intermodal and Statewide Planning

Division, FTA, at (202) 366–1648 or

Anthony Solury, Office of Planning and

Environment, FHWA, at (202) 366–

5003.

I. New Starts Approval to Enter

Preliminary Engineering and Final

Design

TEA–21 extends FTA’s long-standing

authority for approving the

advancement of candidate New Starts

projects into preliminary engineering

(PE) by requiring that FTA also approve

entrance into the final design (FD) stage

of project development. Specifically, 49

U.S.C. 5309(e)(6) requires that a

proposed New Starts project may

advance into preliminary engineering or

final design only if FTA finds that the

project meets the statutory criteria

specified in § 5309(e), and that there is

a reasonable likelihood that it will

continue to do so. In making such

findings, FTA evaluates and rates

proposed New Starts projects as ‘‘highly

Federal Register / Vol. 67, No. 1 / Wednesday, January 2, 2002 / Notices 131

recommended,’’ ‘‘recommended,’’ or

‘‘not recommended,’’ based on the

results of alternatives analysis, the

statutory criteria for project justification,

and the degree of local financial

commitment. FTA has established a set

of decision rules for approving entrance

into preliminary engineering and final

design at 49 CFR part 611. After first

meeting several basic planning,

environmental, and project management

requirements which demonstrate the

‘‘readiness’’ of the project to advance

into the next stage of project

development, candidate projects are

subject to FTA evaluation against the

New Starts project justification and

local financial commitment criteria.

Projects may advance to the next

appropriate stage of project

development (PE or FD) only if rated

‘‘recommended’’ or ‘‘highly

recommended,’’ based on FTA’s

evaluation under the statutory criteria.

Projects rated ‘‘not recommended’’ will

not be approved to advance.

Section 5309(e)(8)(A) of Title 49

U.S.C. exempts projects which request a

section 5309 New Starts share of less

than $25 million from the requirements

of section 5309(e). TEA–21 also

provides statutory exemptions to certain

specific projects. It is important to note

that any exemption under section

5309(e)(8)(A) applies only to the

statutory New Starts project evaluation

criteria that serves as the basis for FTA’s

approval to advance to preliminary

engineering and final design for such

projects. Proposed New Starts projects

seeking less than $25 million in funding

from the § 5309 New Starts program

must still request approval to enter the

next stage of development, and must

fulfill all appropriate planning,

environmental, and project management

requirements. Nonetheless, FTA

encourages sponsors of projects they

believe to be exempt to submit the full

range of data to FTA for evaluation and

rating. This will provide FTA with the

means necessary to make funding

recommendations for such projects to

Congress, and will protect project

sponsors in the event that further

project development activities reveal the

need for additional § 5309 New Starts

funding beyond $25 million.

V. Urbanized Area Formula Program

A. Total Urbanized Area Formula

Apportionments

The amount made available to the

Urbanized Area Formula Program (49

U.S.C. 5307) in the FY 2002 DOT

Appropriations Act is $3,216,040,006.

In addition, $7,092,285 in deobligated

funds became available for

reapportionment under the Urbanized

Area Formula Program as provided by

49 U.S.C. 5336(i).

After reserving $16,080,200 for

oversight, the amount of FY 2002 funds

available for apportionment is

$3,199,959,806. The funds to be

reapportioned, described in the

previous paragraph, are then added and

increase the total amount apportioned

for this program to $3,207,052,091.

Table 4 displays the amounts

apportioned under the Urbanized Area

Formula Program. Table 13 contains the

apportionment formula for the

Urbanized Area Formula Program.

An additional $4,849,950 is made

available for the Alaska Railroad for

improvements to its passenger

operations. After reserving $24,250 for

oversight, $4,825,700 is available for the

Alaska Railroad.

B. Fiscal Year 2001 Apportionment

Adjustments

Adjustments were made to the

apportionment of two urbanized areas

because of corrections to data used to

compute the FY 2001 Urbanized Area

Formula Program apportionments,

published in the Federal Register of

January 18, 2001 (66 FR 4918). The

differences between the previously

published apportionment and the

corrected apportionment for these areas

have been resolved and the necessary

adjustment made to the areas’

apportionment for FY 2002. The

amounts published in this notice

contain the adjustments and the affected

urbanized areas have been advised.

C. Data Used for Urbanized Area

Formula Apportionments

Data from the 2000 National Transit

Database (NTD) Report Year (49 U.S.C.

5335) submitted in late 2000 and early

2001 were used to calculate the FY 2002

Urbanized Area Formula

apportionments for urbanized areas

200,000 in population and over.

Population and population density data

are also used in calculating

apportionments under the Urbanized

Area Formula Program.

D. Urbanized Area Formula

Apportionments to Governors

The total Urbanized Area Formula

apportionment to the Governor for use

in areas under 200,000 in population for

each State is shown in Table 4. This

table also contains the total

apportionment amount attributable to

each urbanized area within the State.

The Governor may determine the

allocation of funds among the urbanized

areas under 200,000 in population with

one exception. As further discussed in

Section G below, funds attributed to an

urbanized area under 200,000 in

population, located within the planning

boundaries of a transportation

management area, must be obligated in

that area.

E. Transit Enhancements

One percent of the Urbanized Area

Formula Program apportionment in

each urbanized area with a population

of 200,000 and over must be made

available only for transit enhancements.

Table 4 shows the amount set aside for

enhancements in these areas.

The term ‘‘transit enhancement’’

includes projects or project elements

that are designed to enhance mass

transportation service or use and are

physically or functionally related to

transit facilities. 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 will be

allotted to transit projects. The one

percent minimum requirement does not

preclude more than one percent being

expended in an urbanized area for

transit enhancements. Items that are

only eligible as enhancements—in

particular, operating costs for historic

facilities—may be assisted only within

the one percent funding level.

The recipient must submit a report to

the appropriate FTA Regional Office

listing the projects or elements of

projects carried out with those funds

during the previous fiscal year and the

amount awarded. The report must be

submitted with the Federal fiscal year’s

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

following elements: (a) Grantee name,

(b) urbanized area name and number, (c)

FTA project number, (d) transit

enhancement category, (e) brief

description of enhancement and

progress towards project

implementation, (f) activity line item

code from the approved budget, and (g)

132 Federal Register / Vol. 67, No. 1 / Wednesday, January 2, 2002 / Notices

amount awarded by FTA for the

enhancement.

F. Fiscal Year 2002 Operating

Assistance

FY 2002 funding for operating

assistance is available only to urbanized

areas with populations under 200,000.

For these areas, there is no limitation on

the amount of the State apportionment

that may be used for operating

assistance, and the Federal/local share

ratio is 50/50.

TEA–21 provides two exceptions to

the restriction on operating assistance in

areas over 200,000 in population. These

exceptions have been addressed and

eligible areas previously notified.

G. Designated Transportation

Management Areas

All urbanized areas over 200,000 in

population have been designated as

Transportation Management Areas

(TMAs), in accordance with 49 U.S.C.

5305. These designations were formally

made in a Federal Register Notice dated

May 18, 1992 (57 FR 21160). Additional

areas have been designated as TMAs

upon the request of the Governor and

the MPO designated for such area or the

affected local officials. During FY 2001,

no additions to existing TMAs were

designated.

Guidance for setting the boundaries of

TMAs is contained in the joint

transportation planning regulations

codified at 23 CFR part 450 and 49 CFR

part 613. In some cases, the TMA

boundaries, which have been

established by the MPO for the

designated TMA, also include one or

more urbanized areas with less than

200,000 in population. Where this

situation exists, the discretion of the

Governor to allocate Urbanized Area

Formula program ‘‘Governor’s

Apportionment’’ funds for urbanized

areas with less than 200,000 in

population is restricted, i.e., the

Governor only has discretion to allocate

Governor’s Apportionment funds

attributable to areas that are outside of

designated TMA boundaries.

If any additional small urbanized

areas—within the boundaries of a

TMA—are identified, notification

should be made in writing to the

Associate Administrator for Program

Management, Federal Transit

Administration, 400 Seventh Street,

SW., Washington, DC 20590, no later

than July 1 of each fiscal year. FTA’s

most recent list of urbanized areas with

population less than 200,000 that are

included within the planning

boundaries of designated TMAs, is

contained in the ‘‘FTA Fiscal Year 2001

Apportionment, Allocations and

Program Information; Notice’’ which,

can be found on the FTA Web site.

H. Urbanized Area Formula Funds Used

for Highway Purposes

Urbanized Area Formula funds

apportioned to a TMA can be

transferred to FHWA and made

available for highway projects if the

following three conditions are met: (1)

Such use must be approved by the MPO

in writing after appropriate notice and

opportunity for comment and appeal are

provided to affected transit providers;

(2) in the determination of the Secretary,

such funds are not needed for

investments required by the Americans

with Disabilities Act of 1990 (ADA); and

(3) the MPO determines that local

transit needs are being addressed.

Urbanized Area Formula funds that

are designated for highway projects will

be transferred to and administered by

FHWA. The MPO should notify FTA of

its intent to use FTA funds for highway

purposes, as prescribed in section

VIII.A., below.

I. National Transit Database (NTD)

Internet Reporting and Redesign Effort

The NTD is the FTA database for

nation-wide statistics on the transit

industry, including safety data. Prior to

FY 2001, FTA reporters utilized

diskettes to submit statistics on their

operating, financial and safety activities

to FTA. Last year, reporters had the

option of using the diskette system or

the FTA new Internet reporting system.

Beginning with FY 2002, all reports will

need to be submitted via the Internet.

Diskettes will no longer be accepted.

The FTA NTD reporting seminars, held

six times annually across the country,

have concentrated on the Internet

reporting system. The changeover to

Internet reporting has received favorable

comments and has resulted in

accelerated data collection and

validation.

NTD statistics are utilized, in part, to

apportion Urbanized Area Formula

Program funds for areas over 200,000 in

population. In addition, NTD data is

summarized and used to report to

Congress on the performance of the

transit industry and associated costs.

These data are used to assist in

assessing whether annual FTA Strategic

Plan goals are achieved.

The overall effort to modernize and

redesign the NTD—as detailed in the

FTA May 31, 2001 report to Congress

entitled ‘‘Review of the National Transit

Database’’—continues and is now in the

programming phase. Plans call for

reporting via the new NTD in the Fall

of 2002 with training for NTD reporters

to begin in the winter of 2001. The

monthly/quarterly reporting of summary

safety, security, and extent of service

data, as well as immediate reporting of

major safety and security incidents, will

be implemented in calendar year 2002.

This reporting has been structured to

exempt smaller transit properties (under

100 vehicles in maximum service) from

the monthly reporting requirement. An

increased number of NTD seminars are

scheduled to assist transit properties in

reporting. See the NTD Web site for

further information at

www.ntdprogram.com.

VI. Nonurbanized Area Formula

Program and Rural Transit Assistance

Program (RTAP)

A. Nonurbanized Area Formula

Program

The amount made available for the

Nonurbanized Area Formula Program

(49 U.S.C. 5311) in the FY 2002 DOT

Appropriations Act is $224,555,243.

The FY 2002 Nonurbanized Area

Formula apportionments to the States

total $226,410,089 and are displayed in

Table 5. Of the $224,555,243 available,

$1,122,776 was reserved for oversight.

The funds apportioned include

$2,977,622 in deobligated funds from

fiscal years prior to FY 2002.

The Nonurbanized Area Formula

Program provides capital, operating and

administrative assistance for areas

under 50,000 in population. Each State

must spend no less than 15 percent of

its FY 2002 Nonurbanized Area Formula

apportionment for the development and

support of intercity bus transportation,

unless the Governor certifies to the

Secretary that the intercity bus service

needs of the State are being adequately

met.

B. Rural Transit Assistance Program

(RTAP)

Funding made available for the RTAP

(49 U.S.C. 5311(b)(2)) in the 2002 DOT

Appropriations Act was $5,250,000, the

guaranteed funding level under TEA–

21. The FY 2002 RTAP allocations to

the States total $5,270,729 and are also

displayed in Table 5. This amount

includes $5,250,000 in FY 2002 funds,

and $20,729 in prior year deobligated

funds, which are available for

reapportionment.

The funds are allocated to the States

to undertake research, training,

technical assistance, and other support

services to meet the needs of transit

operators in nonurbanized areas. These

funds are to be used in conjunction with

the States’ administration of the

Nonurbanized Area Formula Program.

FTA also supports RTAP activities at

the national level within the National

Federal Register / Vol. 67, No. 1 / Wednesday, January 2, 2002 / Notices 133

Planning and Research Program (NPRP).

The National RTAP projects support the

States in their use of the formula

allocations for training and technical

assistance. Congress did not designate

any funds for the National RTAP among

the NPRP allocations in the Conference

Report accompanying the FY 2002 DOT

Appropriations Act. FTA will, however,

include the National RTAP among

priority projects to be funded from

available NPRP funds. During FY 2002,

FTA will conduct a competitive

selection to choose providers of the

National RTAP services for the next five

years.

VII. Elderly and Persons with

Disabilities Program

Funds in the amount of $84,604,801

are made available for the Elderly and

Persons with Disabilities Program (49

U.S.C. 5310) in the FY 2002 DOT

Appropriations Act. A total of

$84,930,249 is apportioned to the States

for FY 2002 for the Elderly and Persons

with Disabilities Program. In addition to

the FY 2002 funding of $84,604,801, the

FY 2002 apportionment includes

$325,448 in prior year unobligated

funds, which are available for

reapportionment under the Elderly and

Persons with Disabilities Program. Table

6 shows each State’s apportionment.

The formula for apportioning these

funds uses Census population data for

persons aged 65 and over and for

persons with disabilities. The funds

provide capital assistance for

transportation for elderly persons and

persons with disabilities. Eligible

capital expenses may include, at the

option of the recipient, the acquisition

of transportation services by a contract,

lease, or other arrangement.

While the assistance is intended

primarily for private non-profit

organizations, public bodies that

coordinate services for the elderly and

persons with disabilities, or any public

body that certifies to the State that there

are no non-profit organizations in the

area that are readily available to carry

out the service, may receive these funds.

These funds may be transferred by the

Governor to supplement Urbanized Area

Formula or Nonurbanized Area Formula

capital funds during the last 90 days of

the fiscal year.

VIII. FHWA Surface Transportation

Program and Congestion Mitigation and

Air Quality Funds Used for Transit

Purposes (Title 23, U.S.C. 104)

A. Transfer Process

The process for transferring flexible

formula funds between FTA and FHWA

programs is described below.

Information on the transfer of FHWA

funds to FTA planning programs can be

found in section IV.H., above.

Transfer From FHWA to FTA

FHWA funds designated for use in

transit capital projects must result from

the metropolitan and statewide

planning and programming process, and

must be included in an approved

Statewide Transportation Improvement

Program (STIP) before the funds can be

transferred. The State DOT requests, by

letter, the transfer of highway funds for

a transit project to the FHWA Division

Office. The letter should specify the

project, amount to be transferred,

apportionment year, State, Federal aid

apportionment category (i.e., Surface

Transportation Program (STP),

Congestion Mitigation and Air Quality

(CMAQ), Interstate Substitute, or

congressional earmark), and a

description of the project as contained

in the STIP.

The FHWA Division Office confirms

that the apportionment amount is

available for transfer and concurs in the

transfer by letter to the State DOT and

FTA. The FHWA Office of Budget and

Finance then transfers obligation

authority and an equal amount of cash

to FTA. All CMAQ, STP, and FHWA

funds allocated to transit projects in the

Appropriations Act or Conference

Report will be transferred to one of the

three FTA formula capital programs (i.e.

Urbanized Area Formula (section 5307),

Nonurbanized Area Formula (section

5311) or Elderly and Persons with

Disabilities (section 5310).

The FTA grantee’s application for the

project must specify which capital

program the funds will be used for and

the application should 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.

The 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 purpose eligible under the FTA

formula capital program to which they

are transferred. FTA and FHWA have

issued guidance on project eligibility

under the CMAQ program in a Federal

Register notice dated February 23, 2000

(65 FR 9040). All FTA requirements are

applicable to transferred funds except

local share—FHWA local share

requirements apply. Transferred funds

should be combined with regular FTA

funds in a single annual grant

application.

Transfers From FTA to FHWA

The Metropolitan Planning

Organization (MPO) submits a request to

the FTA Regional Office for a transfer of

FTA section 5307 formula funds

(apportioned to an urbanized area

200,000 and over in population) to

FHWA based on approved use of the

funds for highway purposes, as

contained in the Governor’s approved

State Transportation Improvement

Program. The MPO must certify that: (1)

The funds are not needed for capital

investments required by the Americans

with Disabilities Act; (2) notice and

opportunity for comment and appeal

has been provided to affected transit

providers; and (3) local funds used for

non-Federal match are eligible to

provide assistance for either highway or

transit projects. The FTA Regional

Administrator reviews and concurs in

the request, then forwards the approval

to FTA Headquarters, where a reduction

is made to the grantee’s formula

apportionment and FTA’s National

Operating Budget in TEAM-Web, equal

to the dollar amount being transferred to

FHWA.

For information regarding these

procedures, please contact Kristen D.

Clarke, FTA Budget Division, at (202)

366–1699; or Richard Meehleib, FHWA

Finance Division, at (202) 366–2869.

B. Matching Share for FHWA Transfers

The provisions of Title 23 U.S.C.,

regarding the non-Federal share apply to

Title 23 funds used for transit projects.

Thus, FHWA funds transferred to FTA

retain the same matching share that the

funds would have if used for highway

purposes and administered by 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.

Secondly, commuter carpooling and

vanpooling projects and transit safety

projects using FHWA transfers

administered by FTA may retain the

same 100 percent Federal share that

would be allowed for ride-sharing or

safety projects administered by the

FHWA.

The third instance includes the 100

percent Federal safety projects;

134 Federal Register / Vol. 67, No. 1 / Wednesday, January 2, 2002 / Notices

however, these are subject to a

nationwide 10 percent program

limitation.

IX. Capital Investment Program (49

U.S.C. 5309)

A. Fixed Guideway Modernization

The formula for allocating the Fixed

Guideway Modernization funds

contains seven tiers. The apportionment

of funding under the first four tiers,

through FY 2003, is based on data used

to apportion the funding in FY 1997.

Funding under the last three tiers is

apportioned based on the latest

available route miles and revenue

vehicle miles on segments at least seven

years old, as reported to the NTD.

Table 7 displays the FY 2002 Fixed

Guideway Modernization

apportionments. Fixed Guideway

Modernization funds apportioned for

this section must be used for capital

projects to maintain, modernize, or

improve fixed guideway systems.

All urbanized areas with fixed

guideway systems that are at least seven

years old are eligible to receive Fixed

Guideway Modernization funds. A

request for the start-up service dates for

fixed guideways has been incorporated

into the NTD reporting system to ensure

that all eligible fixed guideway data is

included in the calculation of the

apportionments. A threshold level of

more than one mile of fixed guideway

is required to receive Fixed Guideway

Modernization funds. Therefore,

urbanized areas reporting one mile or

less of fixed guideway mileage under

the NTD are not included.

For FY 2002, $1,136,400,000 is made

available for Fixed Guideway

Modernization in the FY 2002 DOT

Appropriations Act, which is the

guaranteed funding level in TEA–21. An

amount of $11,364,000 was then

deducted for oversight, and $7,047,502

was set aside for the Alaska Railroad as

directed by language in Section 1124 of

the FY 2001 Omnibus Consolidated

Appropriations Act (Pub. L. 106–554),

leaving $1,117,988,498 available for

apportionment to eligible urbanized

areas. In addition to the FY 2002

funding, $547,205 in deobligated funds

from fiscal years prior to FY 2002 is

added and increases the total amount

apportioned to $1,118,535,703 under

Fixed Guideway Modernization. Table

14 contains information regarding the

Fixed Guideway Modernization

apportionment formula.

The Alaska Railroad has been

determined to be eligible for funding

under the Fixed Guideway

Modernization program for service

provided in the Anchorage, AK,

urbanized area. The FY 2002 Fixed

Guideway Modernization

apportionment for the Alaska Railroad

is, in part, based on a calculated amount

derived from application of the Fixed

Guideway Modernization formula—

using approved Alaska Railroad data for

fixed guideway directional route miles

located within the Anchorage, AK,

urbanized area. In addition, the Alaska

Railroad apportionment includes the

$7,047,502 set aside for the Alaska

Railroad as directed in Public Law 106–

554.

The Alaska Railroad eligibility to

receive funds under the Fixed

Guideway Modernization program is

pursuant to FTA’s determination that:

(1) it is the fixed guideway system for

the Anchorage, AK urbanized area

(which is an urbanized area eligible for

assistance under section 5336(b)(2)(A)

of 49 U.S.C. Chapter 53, and therefore

eligible for funding under sections

5337(a)(5)(B), 5337(a)(6)(B), and

5337(a)(7)(B)); and (2) the Alaska

Railroad meets the standard of having

been in service for at least seven years.

The Alaska Railroad was built by the

Federal Government between 1914 and

1923. The Railroad operated under the

control of the Interior Department until

April 1967 when the Department of

Transportation assumed that

responsibility. After passage of special

Federal legislation, the assets of the

Alaska Railroad were sold to the State

of Alaska, which assumed ownership of

the railroad in January 1985. Since

Federal ownership of the Alaska

Railroad has extended over the greater

part of its existence, the DOT

acknowledges a special stewardship

towards the Alaska Railroad within the

Anchorage urbanized area. For purposes

of formula apportionments beginning in

FY 2004 and beyond, FTA will create a

mode code exclusively for reporting to

the NTD by the Alaska Railroad in the

NTD Reporting Manual for report year

2002.

B. New Starts

The amount made available for New

Starts in the FY 2002 DOT

Appropriations Act is $1,136,400,000,

which was fully allocated and

represents the guaranteed funding level

under TEA–21. Of this amount,

$11,364,000 is reserved for oversight

activities, leaving $1,125,036,000

available for allocations to projects.

Prior year unobligated funds specified

by Congress to be reallocated in the

amount of $1,488,840 are then added

and increase the total amount allocated

to $1,126,524,840. The reallocated funds

are derived from unobligated and

deobligated balances for the following

projects: Hartford-Old Saybrook, CT,

project, $496,280; New LondonWaterfront, CT, access project,

$496,280; and North Front Range, CO,

corridor feasibility study, $496,280. The

final allocation for each New Starts

project is listed in Table 8.

Prior year unobligated allocations for

New Starts in the amount of

$543,136,665 remain available for

obligation in FY 2002. This amount

includes $531,342,762 in fiscal years

2000 and 2001 unobligated allocations,

and $11,793,903 for fiscal years 1998

and 1999 unobligated allocations that

are extended in the FY 2002 Conference

Report. These unobligated amounts are

displayed in Table 8A.

Capital Investment Program funds for

New Starts projects identified as having

been extended in the FY 2002

Conference Report accompanying the

FY 2002 DOT Appropriations Act, will

lapse September 30, 2002. A list of the

extended projects and the amount that

remains unobligated as of September 30,

2001, is appended to Table 8A for ready

reference.

C. Bus

The FY 2002 DOT Appropriations Act

provides $568,200,000, for the purchase

of buses, bus-related equipment and

paratransit vehicles, and for the

construction of bus-related facilities.

This amount represents the guaranteed

funding level under TEA–21.

TEA–21 established a $100 million

Clean Fuels Formula Program under 49

U.S.C. 5308 (described in section XII

below). The program is authorized to be

funded with $50 million from the Bus

category of the Capital Investment

Program and $50 million from the

Formula Program. However, the FY

2002 DOT Appropriations Act directs

FTA to transfer the formula portion to,

and merge it with, funding provided for

the Bus category of the Capital

Investment Program. Thus,

$618,200,000 appropriated in FY 2002

is available for funding the Bus category

of the Capital Investment Program. In

addition, Congress directed that funds

made available for bus and bus facilities

be supplemented with $1,733,658 from

projects included in previous

Appropriations Acts, which increases

the total amount made available to

$619,933,658. The supplemental funds

are derived from unobligated balances

for the following projects: Carroll

County, NH transportation alliance

buses, $198,500; New Hampshire

statewide buses, $34,001; Gary, IN

transit consortium buses, $310,157;

Jefferson Parish, LA bus and bus

facilities, $347,375; Louisiana state

infrastructure bank, bus and bus

Federal Register / Vol. 67, No. 1 / Wednesday, January 2, 2002 / Notices 135

facilities, $347,375; and North Slope

borough, AK, $496,250.

After deducting $6,182,000 for

oversight, the amount available for

allocation under the Bus category is

$613,751,658. Table 9 displays the

allocation of the FY 2002 Bus funds by

State and project. The FY 2002

Conference Report accompanying the

FY 2002 DOT Appropriations Act

allocated all of the FY 2002 Bus funds

to specified States or localities for bus

and bus-related projects. FTA will

honor those allocations to the extent

that they comply with the statutory

authorization for that program.

Prior year unobligated balances for

Bus Program allocations in the amount

of $494,182,292 remain available for

obligation in FY 2002. This includes

$477,559,360 in fiscal years 2000 and

2001 unobligated allocations, and

$16,622,932 for fiscal years 1998 and

1999 unobligated allocations that are

extended in the FY 2002 Conference

Report or the FY 2001 Supplemental

Appropriations Act Conference Report.

These unobligated amounts are

displayed in Table 9A.

Capital Investment Program funds for

Bus projects identified as having been

extended in the Conference Report

accompanying the FY 2002 DOT

Appropriations Act or the FY 2001

Supplemental Appropriations Act, will

lapse September 30, 2002. A list of the

extended projects and the amount that

remains unobligated as of September 30,

2001, is appended to Table 9A for ready

reference.

In addition, the FY 2002 Conference

Report provides clarification for FY

2001 projects and permits the use of FY

2001 appropriations for additional work

as follows:

(1) Funds appropriated for the Lowell,

Massachusetts transit hub can be used

for the Hale Street bus maintenance and

operations center;

(2) Funds appropriated for the

Municipal Transit Operators in

California can be used for bus and bus

facilities;

(3) Funds appropriated for the King

County Metro Eastgate park and ride can

be used for the Issaquah Highlands park

and ride;

(4) Funds allocated for buses for

Suburban Mobility Authority for

Regional Transportation (SMART) in

Southeast Michigan may also be

available for bus facilities; and

(5) Funds appropriated to the

Burlington, Vermont multi-modal

transit project in fiscal years 1998, 1999,

2000, and 2001 will be available for

construction of the multimodal project

and other transit improvements.

X. Job Access and Reverse Commute

Program

The FY 2002 DOT Appropriations Act

provides $125 million for the Job Access

and Reverse Commute (JARC) Program,

which is the guaranteed funding level

under TEA–21. In the FY 2002

Conference Report the appropriators

indicated their desire that $109,339,000

of this amount be awarded to certain

specified States and localities. These

areas and the corresponding amounts

are listed in Table 10. States and

localities listed in the FY 2002

Conference Report, along with other

States and localities not so listed, are

invited to apply for JARC funding

according to the procedures that will be

published in a separate Federal Register

notice. That notice will solicit

applications for the $125 million

available in FY 2002 and the $150

million that is the guaranteed level of

funding for FY 2003.

Because recipients of JARC funds

have expressed the need for multi-year

funding through the early stages of

implementation, FTA will no longer

limit awards to a single year, but rather

will consider multi-year funding in

appropriate cases. To give effect to this

new policy, FTA will give priority to

funding continuation of previously

selected projects. FTA will solicit

applications for continued funding from

those applicants previously funded

under the JARC program. Grantees may

apply for up to two additional years of

continuation funding beyond that

previously approved. Continuation does

not include expansion of services

beyond those previously funded.

Expanded services will be treated as

new projects. Continuation projects are

expected to document their progress

through their most recent progress

report. Evaluation of JARC projects’

progress will be a key element in

determining continued FTA financial

support.

FTA will solicit applications for new

JARC projects both from existing

recipients and from States, localities

and nonprofit organizations that have

not previously been awarded JARC

funds. Because FY 2003 is the last year

of the TEA–21 authorization of the JARC

program, applicants for new projects

will be encouraged to apply for a level

of funding that would allow them to

sustain service for at least two years.

Applicants identified in the FY 2002

Conference Report must participate in

this application process along with all

other applicants. FTA will evaluate and

rank all projects submitted in response

to this new solicitation. Because it is

expected that FY 2002 funds will be

used primarily, if not entirely, for

continuation projects, it is expected that

new projects will not be funded until

FY 2003 funds become available.

The JARC program, established under

TEA–21, provides funding for the

provision of transportation services

designed to increase access to jobs and

employment-related activities. Job

Access projects are those that transport

welfare recipients and low-income

individuals, including economically

disadvantaged persons with disabilities,

in urban, suburban, or rural areas to and

from jobs and activities related to their

employment. Reverse Commute projects

provide transportation services for the

general public from urban, suburban,

and rural areas to suburban employment

opportunities. A total of up to

$10,000,000 from the appropriation can

be used for Reverse Commute Projects.

One of the goals of the JARC program

is to increase collaboration among

transportation providers, human service

agencies, employers, metropolitan

planning organizations, States, and

affected communities and individuals.

All projects funded under this program

must be derived from an area-wide Job

Access and Reverse Commute

Transportation Plan, developed through

a regional approach which supports the

implementation of a variety of

transportation services designed to

connect welfare recipients to jobs and

related activities. A key element of the

program is making the most efficient use

of existing public, nonprofit and private

transportation service providers.

XI. Over-the-Road Bus Accessibility

Program

The amount made available for the

Over-the-Road Bus Accessibility (OTRB)

Program in the FY 2002 DOT

Appropriations Act is $6,950,000,

which is the guaranteed funding level

under TEA–21. Of this amount,

$5,250,000 is available to providers of

intercity fixed-route service, and

$1,700,000 is available to other

providers of over-the-road bus services,

including local fixed-route service,

commuter service, and charter and tour

service.

The OTRB program authorizes FTA to

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

incremental capital and training costs of

complying with the DOT over-the-road

bus accessibility final rule, published on

September 28, 1998 (63 FR 51670).

Funds will be provided at 90 percent

Federal share. FTA conducts a national

solicitation of applications and grantees

are selected on a competitive basis.

In FY 2001, a total of $3 million was

available to intercity fixed-route

136 Federal Register / Vol. 67, No. 1 / Wednesday, January 2, 2002 / Notices

providers and $1.7 million was

available to all other providers. FTA

selected 61 applicants from among the

84 applications submitted for funding

incremental capital and training costs of

complying with DOT’s OTRB

Accessibility requirements.

A separate Federal Register Notice

providing program guidance and

application procedures for FY 2002 will

be issued.

XII. Clean Fuels Formula Program

TEA–21 established the Clean Fuels

Formula Grant Program under section

5308 of Title 49 U.S.C., to assist nonattainment and maintenance areas in

achieving or maintaining attainment

status and to support markets for

emerging clean fuel technologies. Under

the program, public transit agencies in

maintenance and non-attainment areas

(as defined by the EPA) are to apply for

formula funds to acquire clean fuel

vehicles. The legislation specified the

program to be funded with $50 million

from the bus category of the Capital

Investment Program, and $50 million

from the Urbanized Area Formula

Program in each fiscal year of TEA–21.

However, congressional appropriation

actions in this fiscal year as well as in

fiscal years 1999, 2000, and 2001 have

provided no funds for this program.

A Notice of Proposed Rulemaking was

published in the Federal Register on

August 28, 2001 (66 FR 45561). The

proposed rule establishes the

procedures potential recipients must

use to apply for this program.

Comments on the proposed rule were

due October 12, 2001. Responses to

those comments and preparation of the

final rule are in progress.

For further information contact Nancy

Grubb, FTA Office of Resource

Management and State Programs, at

(202) 366–2053.

XIII. National Planning and Research

Program

The amount made available to the

National Planning and Research

Program in the FY 2002 DOT

Appropriations Act is $31,500,000, of

which Congress allocated $15,500,000

for specific activities. These allocations

are listed in Table 11.

The program’s core effort is the

deployment of technological innovation

to improve personal mobility, enhance

the safety and security of transit

operations, minimize fuel consumption

and air pollution, increase ridership and

enhance the quality of life of all

communities. Emphasis is placed on

mainstreaming proven cost-effective

technological innovation through the

FTA planning and capital assistance

programs. Primary target areas are

security technologies to protect against

weapons of mass destruction, safety

systems for railroad grade crossing

protection and shared-track operations,

cost reduction in advances in bus

technology, and bus rapid transit.

FTA is directing resources for

research, development, demonstration

and deployment activities associated

with technology and other innovations

in four priority areas:

• Safety and security systems—to

improve driver operations, minimize

pedestrian conflicts, reduce terrorist

threats and to facilitate shared track

operations;

• Transit buses—to reduce operating

and maintenance costs through

improved energy management; to

introduce rapid bus operations; to foster

trade opportunities; to deploy low

emission vehicles; and to leverage the

$600 million or more invested annually

through the FTA Bus capital assistance

program;

• Infrastructure—to support the $4.9

billion annual FTA capital investment;

to protect the integrity of federally

supported assets; and to facilitate the

deployment of lower cost systems

options for expanding capacity; and

• Knowledge Management—to

expand U.S. transit industry

professional capacity and participation

in global markets.

For additional information contact

Henry Nejako, Program Management

Officer, Office of Research,

Demonstration and Innovation, at (202)

366–3765.

XIV. Unit Values of Data for Urbanized

Area Formula Program, Nonurbanized

Area Formula Program, and Fixed

Guideway Modernization

The dollar unit values of data derived

from the computations of the Urbanized

Area Formula Program, the

Nonurbanized Area Formula Program,

and the Capital Investment Program—

Fixed Guideway Modernization

apportionments are displayed in Table

15 of this notice. To replicate an area’s

apportionment amount multiply its

population, population density, and

data from the NTD by the appropriate

unit value.

XV. Period of Availability of Funds

The funds apportioned under the

Metropolitan Planning Program and the

Statewide Planning and Research

Program, the Urbanized Area Formula

Program, and Fixed Guideway

Modernization, in this notice, will

remain available to be obligated by FTA

to recipients for three fiscal years

following FY 2002. Any of these

apportioned funds unobligated at the

close of business on September 30,

2005, will revert to FTA for

reapportionment under the respective

program.

Funds apportioned to nonurbanized

areas under the Nonurbanized Area

Formula Program, including RTAP

funds, will remain available for two

fiscal years following FY 2002. Any

such funds remaining unobligated at the

close of business on September 30,

2004, will revert to FTA for

reapportionment among the States

under the Nonurbanized Area Formula

Program. Funds allocated to States

under the Elderly and Persons with

Disabilities Program in this notice must

be obligated by September 30, 2002.

Any such funds remaining unobligated

as of this date will revert to FTA for

reapportionment among the States

under the Elderly and Persons with

Disabilities Program. The FY 2002 DOT

Appropriations Act includes a provision

requiring that FY 2002 New Starts and

Bus funds not obligated for their

original purpose as of September 30,

2004, shall be made available for other

projects under 49 U.S.C. 5309.

JARC funds for projects selected by

FTA for funding in FY 2002 will remain

available for two fiscal years following

FY 2002. Any such funds remaining

unobligated at the close of business on

September 30, 2004, will revert to FTA

for reallocation under the JARC

program.

Capital Investment Program funds for

New Starts and Bus projects identified

as having been extended in the FY 2002

Conference Report accompanying the

FY 2002 DOT Appropriations Act will

lapse September 30, 2002.

XVI. Automatic Pre-Award Authority to

Incur Project Costs

A. Policy

FTA provides blanket or automatic

pre-award authority to cover certain

program areas described below. This

pre-award authority allows grantees to

incur project costs prior to grant

approval and retain their eligibility for

subsequent reimbursement after grant

approval. The grantee assumes all risk

and is responsible for ensuring that all

conditions, which are described below,

are met to retain eligibility. This

automatic pre-award spending authority

permits a grantee to incur costs on an

eligible transit capital or planning

project without prejudice to possible

future Federal participation in the cost

of the project or projects. Prior to

exercising pre-award authority, grantees

must comply with the conditions and

Federal requirements outlined in

Federal Register / Vol. 67, No. 1 / Wednesday, January 2, 2002 / Notices 137

paragraphs B and C immediately below.

Failure to do so will render an

otherwise eligible project ineligible for

FTA financial assistance. In addition,

grantees are strongly encouraged to

consult with the appropriate FTA

regional office if there is any question

regarding the eligibility of the project for

future FTA funds or the applicability of

the conditions and Federal

requirements.

Pre-award authority was extended in

the June 24, 1998 Federal Register

Notice on TEA–21 to all formula funds

and flexible funds that will be

apportioned during the authorization

period of TEA–21, 1998–2003. Preaward authority also applies to Capital

Investment Bus allocations identified in

this notice. For such section 5309

Capital Investment Bus projects, the

date that costs may be incurred is the

date that the appropriation bill in which

they are contained is enacted. Pre-award

authority does not apply to Capital New

Start funds, or to Capital Investment Bus

projects not specified in this or previous

notices, except as described in D below.

B. Conditions

Similar to the FTA Letter of No

Prejudice (LONP) authority, the

conditions under which this authority

may be utilized are specified below:

(1) The pre-award authority is not a

legal or moral commitment that the

project(s) will be approved for FTA

assistance or that FTA will obligate

Federal funds. Furthermore, it is not a

legal or moral commitment that all

items undertaken by the applicant will

be eligible for inclusion in the project(s).

(2) All FTA statutory, procedural, and

contractual requirements must be met.

(3) No action will be taken by the

grantee that prejudices the legal and

administrative findings that the Federal

Transit Administrator must make in

order to approve a project.

(4) Local funds expended by the

grantee pursuant to and after the date of

the pre-award authority will be eligible

for credit toward local match or

reimbursement if FTA later makes a

grant for the project(s) or project

amendment(s).

(5) The Federal amount of any future

FTA assistance awarded to the grantee

for the project will be determined on the

basis of the overall scope of activities

and the prevailing statutory provisions

with respect to the Federal/local match

ratio at the time the funds are obligated.

(6) For funds to which the pre-award

authority applies, the authority expires

with the lapsing of the fiscal year funds.

(7) The Financial Status Report, in

TEAM–Web, must indicate the use of

pre-award authority.

C. Environmental, Planning, and Other

Federal Requirements

FTA emphasizes that all of the

Federal grant requirements must be met

for the project to remain eligible for

Federal funding. Compliance with

NEPA and other environmental laws or

executive orders (e.g., protection of

parklands, wetlands, historic properties)

must be completed before State or local

funds are spent on implementing

activities such as final design,

construction, and acquisition for a

project that is expected to be

subsequently funded with FTA funds.

Depending on which class the project is

included under in FTA environmental

regulations (23 CFR part 771), the

grantee may not advance the project

beyond planning and preliminary

engineering before FTA has issued

either a categorical exclusion (refer to 23

CFR part 771.117(d)), a finding of no

significant impact, or a record of

decision. The conformity requirements

of the Clean Air Act (40 CFR part 93)

also must be fully met before the project

may be advanced with non-Federal

funds.

Similarly, the requirement that a

project be included in a locally adopted

metropolitan transportation

improvement program and federally

approved statewide transportation

improvement program must be followed

before the project may be advanced with

non-Federal funds. For planning

projects, the project must be included in

a locally approved Planning Work

Program that has been coordinated with

the State. In addition, Federal

procurement procedures, as well as the

whole range of Federal requirements,

must be followed for projects in which

Federal funding will be sought in the

future. Failure to follow any such

requirements could make the project

ineligible for Federal funding. In short,

this increased administrative flexibility

requires a grantee to make certain that

no Federal requirements are

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

questions or concerns regarding the

environmental requirements, or any

other Federal requirements that must be

met before incurring costs, it should

contact the appropriate regional office.

Before an applicant may incur costs

for activities expected to be funded by

New Start funds, or for Bus Capital

projects not listed in this notice or

previous notices, it must first obtain a

written LONP from FTA. To obtain an

LONP, a grantee must submit a written

request accompanied by adequate

information and justification to the

appropriate FTA regional office.

D. Pre-Award Authority for New Starts

Projects

1. Preliminary Engineering and Final

Design

New Starts projects are required to

follow a federally defined planning

process. This process includes, among

other things, FTA approval of entry of

a project into preliminary engineering

and approval to enter final design. The

grantee request for entry into

preliminary engineering and the request

for entry into final design both

document the project and how it meets

the New Starts statutory criteria for

project evaluation and rating in detail.

With FTA approval to enter preliminary

engineering, and subsequent approval to

enter final design, FTA will

automatically extend pre-award

authority to that phase of project

development.

2. Acquisition Activities

In the past, FTA provided applicant

grantees pre-award authority to incur

costs for right-of-way acquisition for

projects funded by sources other than

New Starts funds under the conditions

described in paragraphs A, B and C,

above. With the issuance of this Notice,

FTA will extend automatic pre-award

authority for the acquisition of real

property and real property rights for a

New Starts project upon completion of

the National Environmental Policy Act

(NEPA) review of that project. NEPA

review 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. The real

estate acquisition activities for a

proposed New Starts project prior to

approval of Federal funding, no longer

require a Letter of No Prejudice (LONP)

described in section XVII below. Real

estate acquisition may now commence

upon completion of the NEPA review

process.

Most major FTA-assisted projects

require the acquisition of residential

and/or business properties and the

relocation of the occupants. Often real

property rights, like railroad track usage

rights, are needed. With limited

exceptions set forth in FTA’s NEPA

guidance, the purchase of real property

can prejudice the consideration of less

damaging alternatives and may not take

place until the NEPA process has been

completed by FTA’s signing of an

environmental ROD or FONSI or making

a CE determination.

For FTA-assisted projects, acquisition

of real property must be made in

accordance with the requirements of the

Uniform Relocation Assistance and Real

138 Federal Register / Vol. 67, No. 1 / Wednesday, January 2, 2002 / Notices

Property Acquisition Policies Act (URA)

and its implementing regulations (49

CFR part 24). Compliance with the URA

regulations requires substantial leadtime. Properties must be appraised,

persons who will be displaced must be

educated about their relocation rights,

proper housing must be found for

displaced residents, and businesses

must be relocated in accordance with

the URA. In some cases, the remediation

of contaminated soils or groundwater, or

the removal of underground storage

tanks must be dealt with during the

acquisition process. Potentially

responsible parties to the contamination

must be identified and their financial

liability negotiated or litigated.

Acquisition of railroad right-of-way or

usage rights is frequently a negotiated

transaction that is fundamental to the

transit project and therefore should be

negotiated as early as possible after the

completion of the NEPA process. Delays

in the closing on an acquisition can lead

to inconvenience or hardship for

residents and businesses that are being

displaced. Delays can also lead to

increases in property values or in the

current owners’ financial expectations

that prolong negotiated settlements.

To facilitate the acquisition process

for New Starts projects, FTA will extend

automatic pre-award authority to the

acquisition of real property and real

property rights with the signing of the

environmental ROD or FONSI or the CE

determination. This pre-award authority

is strictly limited to costs incurred to

acquire real property and real property

rights and to provide relocation

assistance in accordance with the URA

regulation. It is limited to the

acquisition of real property and real

property rights that are explicitly

identified in the final EIS, EA or CE

determination, as needed for the

selected alternative that is the subject of

the FTA-signed ROD or FONSI, or the

CE determination. It does not cover site

preparation, demolition, or any other

activity that is not strictly necessary to

comply with the URA. At FTA’s

discretion, these other activities may be

covered by Letters of No Prejudice,

described in section XVII, below. This

pre-award authority does not cover the

acquisition of construction equipment

or vehicles or any other acquisition

except that of real property and real

property rights.

Grant applicants should use this preaward authority for real property very

discreetly with a clear understanding

that it does not constitute a funding

commitment by FTA. On occasion, even

projects that received a ‘‘recommended’’

rating from FTA under the New Starts

regulation (49 CFR part 611) have not

received a Full Funding Grant

Agreement from FTA simply because

the competition for the limited New

Starts funds is so intense.

This pre-award authority for the

acquisition of real property and real

property rights, in accordance with the

URA and after FTA’s signing of a ROD

or FONSI or making a CE determination,

is intended to streamline the project

delivery process, to enhance relocation

services for residents and businesses,

and to avoid the escalation in the cost

of real property caused by delays in its

acquisition. In granting this pre-award

authority, FTA is aware that the risk

taken by the grant applicant in acquiring

real property without an FTA

commitment is somewhat mitigated by

the re-sale value of the real property, in

the event that FTA funding assistance is

not ultimately forthcoming and the

project is abandoned.

3. National Environmental Policy Act

(NEPA) Activities

The National Environmental Policy

Act (NEPA) requires that projects with

potentially significant adverse impacts

proposed for Federal funding assistance

be subjected to a public and interagency

review of the need for the project, its

environmental and community impacts,

and alternatives with potentially less

damaging actions. Projects for which

FTA experience indicates there are no

significant impacts are subject to NEPA,

but categorically excluded from the

more rigorous levels of NEPA review.

FTA regulations (23 CFR 771.105(e))

state that the costs incurred by a grant

applicant for the preparation of

environmental documents requested by

FTA are eligible for FTA assistance.

FTA has previously extended pre-award

authority to incur costs for

environmental reviews and documents

from other funding sources but not from

New Starts funds.

With issuance of this notice, FTA

extends automatic pre-award authority

for costs incurred to conduct the NEPA

environmental review, including

historic preservation activities, and to

prepare an EIS, EA, CE, or other

environmental documents for a

proposed New Starts project, effective as

of the date of the federal approval of the

relevant Statewide Transportation

Improvement Program (STIP) or STIP

amendment that includes the project.

This pre-award authority applies to New

Starts funding, as well as other funding

sources. This pre-award authority is

strictly limited to costs incurred to

conduct the NEPA process and prepare

environmental and historic preservation

documents. It does not cover

preliminary engineering activities

beyond those absolutely necessary for

NEPA compliance. As with any preaward authority, FTA participation in

costs incurred is not guaranteed.

This pre-award authority for using

New Starts funds for environmental and

historic preservation work for proposed

New Starts projects, as long as those

projects are in FTA-approved STIPs, is

being provided for the first time with

this Notice. It is intended to streamline

the NEPA process in accordance with

TEA–21 section 1309, ‘‘Environmental

Streamlining,’’ by eliminating

unnecessary delays in starting up the

conceptual engineering and

environmental reviews, the public

involvement process, and the

interagency coordination process for

New Starts projects.

XVII. Letters of No Prejudice (LONP)

Policy

A. Policy

Letter of No Prejudice (LONP)

authority allows an applicant to incur

costs on a future 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 not covered by

automatic pre-award authority. The

majority of LONPs will be for section

5309 New Starts funds not covered

under a full funding grant agreement or

for section 5309 Bus funds not yet

appropriated by Congress. At the end of

an authorization period, there may be

LONPs for formula funds beyond the

life of the current authorization.

Under most circumstances the LONP

will cover the total project. Under

certain circumstances the LONP may be

issued for local match only, for

example, to permit real estate purchased

as it becomes available to be used for

match for the project at a later date.

B. Conditions

The following conditions apply to all

LONPs.

(1) LONP pre-award authority is not a

legal or moral commitment that the

project(s) will be approved for FTA

assistance or that FTA will obligate

Federal funds. Furthermore, it is not a

legal or moral commitment that all

items undertaken by the applicant will

be eligible for inclusion in the project(s).

(2) All FTA, DOT, and other Federal

statutory, regulatory, procedural, and

contractual requirements must be met.

(3) No action will be taken by the

grantee that prejudices the legal and

Federal Register / Vol. 67, No. 1 / Wednesday, January 2, 2002 / Notices 139

administrative findings that the Federal

Transit Administrator must make in

order to approve a project.

(4) Local funds expended by the

grantee pursuant to and after the date of

the LONP will be eligible for credit

toward local match or reimbursement if

FTA later makes a grant for the

project(s) or project amendment(s).

(5) The Federal amount of any future

FTA assistance to the grantee for the

project will be determined on the basis

of the overall scope of activities and the

prevailing statutory provisions with

respect to the Federal/local match ratio

at the time the funds are obligated.

(6) For funds to which this pre-award

authority applies, the authority expires

with the lapsing of the fiscal year funds.

C. Environmental, Planning, and Other

Federal Requirements

As with automatic pre-award

authority, FTA emphasizes that all of

the Federal grant requirements must be

met for the project to remain eligible for

Federal funding. Compliance with

NEPA and other environmental laws or

executive orders (e.g., protection of

parklands, wetlands, historic properties)

must be completed before State or local

funds are spent on implementation

activities such as final design,

construction, or acquisition for a project

expected to be subsequently funded

with FTA funds. Depending on which

class the project is included under in

FTA’s environmental regulations (23

CFR part 771), the grantee may not

advance the project beyond planning

and preliminary engineering before FTA

has approved either a categorical

exclusion (see 23 CFR section

771.117(d)), a finding of no significant

impact, or a record of decision. The

conformity requirements of the Clean

Air Act (40 CFR part 93) also must be

fully met before the project may be

advanced with non-Federal funds.

Similarly, the requirement that a

capital project be included in a locally

adopted metropolitan transportation

improvement program and federally

approved statewide transportation

improvement program must be followed

before the project may be advanced with

non-Federal funds. For planning

projects, the project must be included in

a locally approved Planning Work

Program that has been coordinated with

the State. In addition, Federal

procurement procedures, as well as the

whole range of Federal requirements,

must be followed for projects in which

Federal funding will be sought in the

future. Failure to follow any such

requirements could make the project

ineligible for Federal funding. In short,

this pre-award authority requires a

grantee to make certain that no Federal

requirements are circumvented. If a

grantee has questions or concerns

regarding the environmental

requirements, or any other Federal

requirements that must be met before

incurring costs, it should contact the

appropriate FTA regional office.

D. Request for LONP

Before an applicant may incur costs

for a project not covered by automatic

pre-award authority, it must first submit

a written request for an LONP to the

appropriate regional office. This written

request must include a description of

the project for which pre-award

authority is desired and a justification

for the request.

XVIII. FTA Home Page on the Internet

FTA provides extended customer

service by making available transit

information on the FTA Web site,

including this Apportionment Notice.

Also posted on the Web site are FTA

program Circulars: C9030.1C, Urbanized

Area Formula Program: Grant

Application Instructions, dated October

1, 1998; C9040.1E, Nonurbanized Area

Formula Program Guidance and Grant

Application Instructions, dated October

1, 1998; C9070.1E, The Elderly and

Persons with Disabilities Program

Guidance and Application Instructions,

dated October 1, 1998; C9300.1A,

Capital Program: Grant Application

Instructions, dated October 1, 1998;

4220.1D, Third Party Contracting

Requirements, dated April 15, 1996;

C5010.1C, Grant Management

Guidelines, dated October 1, 1998; and

C8100.1B, Program Guidance and

Application Instructions for

Metropolitan Planning Program Grants,

dated October 25, 1996. The FY 2002

Annual List of Certifications and

Assurances is also posted on the FTA

Web site. Other documents on the FTA

Web site of particular interest to public

transit providers and users include the

annual Statistical Summaries of FTA

Grant Assistance Programs, and the

National Transit Database Profiles.

FTA circulars are listed at http://

www.fta.dot.gov/library/admin/

checklist/circulars.htm. Other guidance

of interest to Grantees can be found at

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

index.html. Grantees should check the

FTA Web site frequently to keep up to

date on new postings.

XIX. FTA Fiscal Year 2002 Annual List

of Certifications and Assurances

The ‘‘Fiscal Year 2002 Annual List of

Certifications and Assurances’’ is

published in conjunction with this

notice. It appears as a separate Part of

the Federal Register on the same date

whenever possible. The FY 2002 list

contains several changes to the previous

year’s Federal Register publication. As

in previous years, the grant applicant

should certify electronically. Under

certain circumstances the applicant may

enter its PIN number in lieu of an

electronic signature provided by its

attorney, provided the applicant has on

file the current affirmation of its

attorney in writing dated this Federal

fiscal year. The applicant is advised to

contact the appropriate FTA Regional

Office for electronic procedure

information.

The ‘‘Fiscal Year 2002 Annual List of

Certifications and Assurances’’ is

accessible on the Internet at http://

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

Any questions regarding this document

may be addressed to the appropriate

Regional Office.

XX. Grant Application Procedures

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 should be filed

electronically. FTA has provided

exceptions to the requirement for

electronic filing of applications for

certain new, non-traditional grantees in

the Job Access and Reverse Commute

and Over-the-Road Bus Accessibility

programs as well as to a few grantees

that have not successfully connected to

or accessed TEAM-Web.

In FY 2001, FTA established a 90-day

goal for processing and approving all

capital, planning and operating grants,

including the section 5307 Urbanized

Area Formula Program, section 5309

Fixed Guideway Modernization, New

Starts and Bus Programs, the section

5310 Elderly and Persons with

Disabilities Program, the section 5311

Nonurbanized Area Formula Program,

the TEA–21 Job Access and Reverse

Commute Program, the TEA–21 Overthe-Road Bus Accessibility Program,

section 5303 Metropolitan Planning

Program, and section 5313(b) Statewide

Planning and Research Program. The 90-

day processing time begins with the

receipt of a complete application by the

Regional Office. In order for an

application to be considered complete,

it must meet the following

requirements: all projects must be

contained in an approved STIP (when

required), all environmental findings

must be made by FTA, there must be an

adequate project description, local share

must be secure, all required civil rights

submissions must have been submitted,

and certifications and assurances must

140 Federal Register / Vol. 67, No. 1 / Wednesday, January 2, 2002 / Notices

be properly submitted. Once an

application is complete, the FTA

Regional Office will assign a project

number and when required submit the

application to the Department of Labor

for a certification under section 5333(b).

The FTA circulars referenced below

contain more information regarding

application contents and complete

applications. State applicants for section

5311 are reminded that they must

certify to DOL that all subrecipients

have agreed to the standard labor

protection warranty for section 5311

and provide DOL with other related

information for each grant.

Formula and Capital Investment grant

applications should be prepared in

conformance with the following FTA

Circulars: Program Guidance and

Application Instructions for

Metropolitan Planning Program

Grants—C8100.1B, October 25, 1996;

Urbanized Area Formula Program: Grant

Application Instructions—C9030.1C,

October 1, 1998; Nonurbanized Area

Formula Program Guidance and Grant

Application Instructions—C9040.1E,

October 1, 1998; Section 5310 Elderly

and Persons with Disabilities Program

Guidance and Application Instructions

C9070.1E, October 1, 1998; and Section

5309 Capital Program: Grant

Application Instructions—C9300.1A,

October 1, 1998. Guidance on

preparation of applications for State

Planning and Research funds may be

obtained from each FTA Regional

Office. Copies of circulars are available

from FTA Regional Offices as well as

the FTA Web site.

Applications for grants containing

transferred FHWA funds (STP, CMAQ,

and others) should be prepared in the

same manner as for funds under the

program to which they are being

transferred. The application for flexible

funds needs to specifically indicate the

type and amount of flexible funds being

transferred to FTA. The application

should also describe which items are

being funded with transferred funds,

consistent with the Statewide

Transportation Improvement Program

(STIP).

Issued on: December 26, 2001.

Jennifer L. Dorn,

Administrator.

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[FR Doc. 01–32117 Filed 12–31–01; 8:45 am]

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