Document ID: FRA-2008-0104-0001
Agency: fra
Document Type: Rule
Title: Notice of Funding Availability and Solicitation of Applications for the Program for Capital Grants for Rail Line Relocation and Improvement Projects
Posted Date: 2008-09-05T04:00Z

[Federal Register: September 5, 2008 (Volume 73, Number 173)]
[Notices]               
[Page 51880-51882]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05se08-104]                         

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DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

 
Notice of Funding Availability and Solicitation of Applications 
for the Program for Capital Grants for Rail Line Relocation and 
Improvement Projects

AGENCY: Federal Railroad Administration (FRA), Department of 
Transportation (DOT).

ACTION: Notice of funding availability; solicitation for applications.

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SUMMARY: Under this Notice, the FRA encourages eligible applicants to 
submit applications for grants to fund rail line relocation and 
improvement projects. This Notice of Funds Availability does not apply 
to the nine (9) projects specifically enumerated in the Transportation, 
Housing and Urban Development, and Related Agencies Appropriations Act, 
2008 (Division K of Pub. L. 110-161 (December 26, 2007)).

DATES: FRA will begin accepting grant applications on September 15, 
2008. Applications may be submitted until the earlier of Friday, 
November 28, 2008, or the date on which all available funds will have 
been committed under this program. The last-mentioned date will be 
announced in the Federal Register.

ADDRESSES: Applications must be submitted electronically to http://
www.grants.gov (``Grants.Gov''). Grants.Gov allows organizations 
electronically to find and apply for competitive grant opportunities 
from all Federal grant-making agencies. Any eligible applicant wishing 
to submit an application pursuant to this notice should immediately 
initiate the process of registering with Grants.Gov at http://
www.grants.gov. Please confirm all Grants.Gov submissions by e-mailing 
paxrail@dot.gov.
    For application materials that an applicant is unable to submit via 
Grants.Gov (such as oversized engineering drawings), applicants may 
submit an original and two (2) copies to the Federal Railroad 
Administration at the following address: Federal Railroad 
Administration, Attention: John Winkle, Office of Railroad Development 
(RDV-13), Mail Stop 20, 1200 New Jersey Avenue, SE., 
Washington, DC 20590.
    Due to delays caused by enhanced screening of mail delivered via 
the U.S. Postal Service, applicants are encouraged to use other means 
to ensure timely receipt of materials.

FOR FURTHER INFORMATION CONTACT: John Winkle, Office of Railroad 
Development (RDV-11), Federal Railroad Administration, 1200 New Jersey 
Avenue, SE., Washington, DC 20590. Phone: (202) 493-6067; Fax: (202) 
493-6330, or Robert Carpenter, Grants Officer, Office of Acquisition 
and Grants Services (RAD-30), Federal Railroad Administration, 1200 New 
Jersey Avenue, SE., Washington, DC 20590. Phone: (202) 493-6153; Fax: 
(202) 493-6171.

SUPPLEMENTARY INFORMATION: Section 9002 of the Safe, Accountable, 
Flexible, Efficient Transportation Equity Act: A Legacy for Users 
(SAFETEA-LU) (Pub. L. 109-59, August 10, 2005) amended chapter 201 of 
title 49 of the United States Code by adding Sec.  20154 which 
authorized, but did not appropriate, $350,000,000 per year for each of 
the fiscal years (FY) 2006 through 2009 for the purpose of funding the 
Program for Capital Grants for Rail Line Relocation and Improvement 
Projects (the Program) (Catalog of Federal Domestic Assistance (CFDA) 
Program Number 20.314). SAFETEA-LU also directed FRA to promulgate a 
regulation that establishes the Program. That Final Rule was published 
on July 11, 2008 and can be found at 73 FR 39875 (49 CFR part 262).
    In FY 2008, Congress, through the Transportation, Housing and Urban 
Development, and Related Agencies Appropriations Act, 2008 (Division K 
of Pub. L. 110-161 (December 26, 2007)) appropriated $20,145,000 to FRA 
to fund the Program. Of that amount, Congress directed that $5,240,000 
be

[[Page 51881]]

spent on nine specific projects. This amount was reduced by rescission 
to $5,135,000 leaving $20,040,200 to be spent on the Program, 
$14,905,000 of which is to be awarded through discretionary 
(competitive) grants. This Notice of Funding Availability and 
Solicitation of Applications applies to the $14,905,000 in 
discretionary grants. FRA intends to directly contact the sponsors (or 
potential sponsors) of the nine projects specifically identified by 
Congress in the Appropriations Act and identify for them the 
application requirements that will apply to the congressionally 
designated projects, which will also be required to be submitted 
through Grants.Gov.
    An approved applicant, or other non-Federal party, shall pay at 
least 10 per cent of the costs of any project funded by a grant awarded 
through the Program. FRA expects to award grants to multiple eligible 
participants. FRA anticipates that no further public notice will be 
made with respect to selecting grantees under this program.
    Purpose: In many places throughout the country, rail infrastructure 
that was once critical to communities now presents problems as well as 
benefits. While rail offers significant benefits over other modes of 
transportation (e.g., rail is more fuel efficient that trucking), 
changes in land use and development over the last century have created 
some challenges. For example, tracks that run down the middle of towns 
and were once vital for economic survival now separate the communities 
on either side. Rail yards and tracks occupy valuable real estate. 
Trains parked in sidings may present attractive nuisances to children 
and vandals, and, in the case of tank cars containing hazardous 
materials, may create serious security risks. Grade crossings may 
present safety risks to the vehicles and pedestrians that must cross 
the tracks. These same crossings create inconveniences when long trains 
block crossings for extended periods of time and sound horns as they 
operate through crossings in neighborhoods. In some cases, trains 
operate over lines at speeds that are suited for the class of track, 
but often these speeds concern the surrounding community. In an 
increasing number of locations, rail lines have become so congested 
that communities experience almost continuous train traffic that often 
leads to lengthy backups at grade crossings. In short, rail lines that 
once brought economic prosperity and social cohesion are now sometimes 
viewed as factors in the decline of both.
    As a result, State and local governments are looking for ways to 
eliminate the problems created by the presence of railroad 
infrastructure while retaining the transportation advantages of this 
mode. Many times, potential solutions include relocating track to an 
area that is better suited for it or raising or lowering track so that 
it is not at-grade. In addition to these track relocation projects, 
many communities are eager to improve existing rail infrastructure in 
an effort to mitigate the perceived negative effects of rail traffic on 
safety in general, motor vehicle traffic flow, economic development, or 
the overall quality of life on a community in general.
    To assist State and local governments in this effort, Congress in 
SAFETEA-LU authorized the Program for Capital Grants for Rail Line 
Relocation and Improvement Projects. In FY 2008, Congress appropriated 
$20,145,000, reduced by rescission to $20,040,200, for the Program, 
$14,905,000 of which is available for discretionary (competitive) 
grants. No funds were appropriated in FY 2006 or FY 2007.
    Authority: The authority for the Program can be found in the Safe, 
Accountable, Flexible, Efficient Transportation Equity Act: A Legacy 
for Users (SAFETEA-LU) (Pub. L. 109-59, August 10, 2005), and at 49 CFR 
part 262.
    Funding: The Transportation, Housing and Urban Development, and 
Related Agencies Appropriations Act, 2008, provides $14,905,000 for 
discretionary grants, which allows FRA to award one or more grants 
covering up to 90 percent of the cost of rail line relocations and 
improvements. The funding provided under these grants will be made 
available to grantees on a reimbursement basis. It is anticipated that 
the available funding could support projects proposed by multiple 
applicants. FRA may choose to award a grant or grants within the 
available funds in any amount. Applicants should indicate whether 
funding made available through grants provided under this Program, 
together with committed funding from other sources, including the 
required match, will be sufficient to complete the overall project or a 
discrete portion of the project.
    Schedule for Capital Grant Program: FRA will begin accepting grant 
applications on September 15, 2008. Applications must be submitted by 
November 28, 2008 or the date (to be announced) on which all available 
funds will have been committed. Due to the limited funding available 
under this program: (1) applicants are encouraged to submit their 
applications at the earliest date practicable in order to maximize the 
consideration of their application in the competition; and (2) FRA may 
request that an applicant submit a revised application reflecting a 
refined scope of work and budget. FRA anticipates making the first 
award(s) pursuant to this notice by the second quarter of FY 2009.
    Eligible Participants: Only States, political subdivisions of 
States, and the District of Columbia are eligible for grants under the 
Program (see 49 CFR Sec. Sec.  262.3 and 262.7).
    Eligible Projects: Construction projects undertaken for the 
improvement of the route or structure of a rail line that either: (1) 
Is carried out for the purpose of mitigating the adverse effects of 
rail traffic on safety, motor vehicle traffic flow, community quality 
of life, or economic development; or (2) involve a lateral or vertical 
relocation of any portion of the rail line (see 49 CFR 262.7) are 
eligible. Pre-construction activities, such as preliminary engineering 
and design work and environmental compliance, are considered part of 
the overall construction project (see 49 CFR 262.3(6)). Only new 
projects will be eligible; projects for which construction has 
commenced prior to the date of the application will not be considered. 
In addition, only costs incurred from the date of the application will 
be considered as allowable for both reimbursement and matching 
purposes. For pre-application costs associated with environmental and 
historic preservation compliance, see 49 CFR Sec.  262.15.
    Selection Criteria: FRA will consider the following selection 
factors in evaluating applications for grants under this program (see 
49 CFR Sec.  262.9):
    1. The capability of the applicant to fund the project without 
Federal grant funding;
    2. The effects of the rail line, relocated or improved as proposed, 
on motor vehicle and pedestrian traffic, safety, community quality of 
life, and area commerce;
    3. The effects of the rail line, relocated as proposed, on the 
freight rail and passenger rail operations on the line;
    4. Equitable treatment of the various regions of the United States;
    5. Any other factors FRA determines to be relevant in assessing the 
effectiveness and/or efficiency of the grant application, including the 
cost-effectiveness of the proposed project in terms of benefits 
achieved in relation to the funds expended. In the preamble to the 
Final Rule, FRA provided an extensive, but not exhaustive, list of 
possible data items that could be used to support a cost-effectiveness 
determination. That list can be found at 73 FR 39880.

[[Page 51882]]

    Requirements for Grant Applications: The following points describe 
the minimum content which will be required in grant applications. These 
requirements may be satisfied through a narrative statement submitted 
by the applicant, supported by spreadsheet documents, tables, drawings, 
and other materials, as appropriate. Each grant application will:
    1. Designate a point of contact for the applicant and provide his 
or her name and contact information, including phone number, mailing 
address and e-mail address. The point of contact must be an employee of 
an eligible applicant (i.e., a state employee, or an employee of a 
political subdivision of a state, or an employee of the District of 
Columbia).
    2. Include a detailed project description, including an explanation 
of why the project is an eligible project and a thorough discussion of 
how the project meets all of the selection criteria.
    3. Include a complete Standard Form 424, ``Application for Federal 
Assistance,'' Standard Form 424D, ``Assurances--Construction 
Programs,'' and the most recent audit performed in compliance with OMB 
Circular A-133. Information on Circular A-133 can be found at http://
www.whitehouse.gov/omb/circulars/a133/a133.html. Also include signed 
copies of FRA's Additional Assurances and Certifications, available at 
http://www.fra.dot.gov/downloads/admin/assurancesandcertifications.pdf.
    4. Define the scope of work for the proposed project, including the 
anticipated project schedule. Describe the proposed project's physical 
location (as applicable), and include any drawings, plans, or 
schematics that have been prepared relating to the proposed project.
    If the funding from the Program is only going to be a portion of 
the overall funding for the project, describe the complete project and 
specify which portion will involve Federal funding. In addition, FRA 
strongly encourages applicants to preliminarily determine the 
feasibility of the project, as well as to estimate complete project 
costs before submitting an application. Applications should include 
these feasibility determinations and cost estimates, if completed. FRA 
will consider favorably applications that include these types of 
studies as they demonstrate that an applicant has a definite 
understanding of the scope and cost of the project.
    In submitting applications, applicants should be mindful that the 
Program as created by Congress and as further described in the Final 
Rule is focused on constructing projects (see 49 CFR 262.3 and 262.7). 
If FRA approves a project for funding, allowable costs (i.e., costs 
that can qualify for reimbursement from Federal funds or as part of the 
required non-Federal match) will have to directly support project 
construction. Section 262.3 identifies the types of activities that are 
associated with ``construction'' and thus potentially allowable. In 
terms of project development, FRA will consider as potentially 
allowable costs associated with the preparation of architectural and 
engineering plans, project cost estimates, and related project-specific 
construction-related costs (including costs associated with securing 
environmental clearance as described in Sec.  262.15 of the Final 
Rule). FRA will not consider costs associated with planning studies and 
similar analyses as allowable. For approved projects, construction 
related expenditures may qualify as allowable even if they are incurred 
in advance of the execution of the grant agreement between the 
applicant and FRA so long as such costs are incurred after the date of 
the application (except for pre-application costs associated with 
compliance with environmental and historic preservation statutes and 
regulations, see 49 CFR 262.15) and otherwise satisfy eligibility 
standards; an applicant will bear all risk for such costs in the event 
no award is made.
    5. Present a detailed budget for the proposed project. At a 
minimum, the budget should separate total cost of the project into the 
following categories, if applicable: (1) Administrative and legal 
expenses; (2) Land, structures, rights-of-way, and appraisals; (3) 
Relocation expenses and payments; (4) Architectural and engineering 
fees; (5) Project inspection fees; (6) Site work; (7) Demolition and 
removal; (8) Construction labor, supervision, and management; (9) 
Materials, by type (e.g., ties, rail, signals, switches); (10) 
Miscellaneous; and (11) Contingencies.
    6. Describe the source and amount of matching funds, including any 
in-kind contributions.
    7. Describe proposed project implementation and project management 
arrangements. Include descriptions of expected arrangements for project 
contracting, contract oversight, change-order management, risk 
management, and conformance to Federal requirements for project 
progress reporting.
    8. Describe the anticipated public and private benefits associated 
with the proposed project and the applicant's assessment of how those 
benefits outweigh the costs of the proposed project (see 49 CFR 
262.11(b)). Identify any financial contributions or commitments the 
applicant has secured from private entities that are expected to 
benefit from the project.
    Although FRA will weigh all of the selection criteria, potential 
applicants should be aware that FRA is seeking the maximum public 
benefit from these limited funds and that, in directing FRA to 
establish the Program, Congress instructed FRA to consider the 
feasibility of seeking financial contributions or commitments from 
private entities involved with the project in proportion to the 
expected benefits that would accrue to those entities. As FRA explained 
in the preamble to the Final Rule, however, FRA will apply all the 
selection criteria and will not disfavor one application over another 
because of the amount requested.
    9. Describe anticipated environmental or historic preservation 
impacts associated with the proposed project, any environmental or 
historic preservation analyses that have been prepared, and progress 
toward completing any environmental documentation or clearance required 
for the proposed project under the National Environmental Policy Act 
(NEPA), the National Historic Preservation Act (NHPA), section 4(f) of 
the DOT Act, the Clean Water Act, or other applicable Federal or State 
laws. Refer to 49 CFR 262.15 for further guidance. Applicants are 
advised to consult with the FRA's Office of Railroad Development before 
initiating any NEPA, NHPA or Section 4(f) environmental or historic 
preservation reviews. Contact information is included under the For 
Further Information Contact section of this notice.
    Format: Excluding spreadsheets, drawings, and tables, the narrative 
statement for grant applications may not exceed thirty pages in length. 
With the exclusion of oversized engineering drawings (which may be 
submitted in hard copy to the FRA at the address above), all 
application materials should be submitted as attachments through 
Grants.Gov. Spreadsheets consisting of budget or financial information 
should be submitted via Grants.Gov as Microsoft Excel (or compatible) 
documents.

    Issued in Washington, DC, on August 29, 2008.
Mark E. Yachmetz,
Associate Administrator for Railroad Development.
[FR Doc. E8-20669 Filed 9-4-08; 8:45 am]

BILLING CODE 4910-06-P