Source: https://regulations.justia.com/regulations/fedreg/2013/03/29/2013-07268.html
Timestamp: 2020-08-14 06:08:47
Document Index: 732910034

Matched Legal Cases: ['art 602', '§ 602', '§ 602', '§ 602', '§ 602', '§ 18', 'art 602', 'art 602', 'art 602']

Allocation of Public Transportation Emergency Relief Funds in Response to Hurricane Sandy, 19357-19362 [2013-07268] :: Federal Transit Administration :: Department Of Transportation :: Regulation Tracker :: Justia
Justia Regulation Tracker Department Of Transportation Federal Transit Administration Allocation of Public Transportation Emergency Relief Funds in Response to Hurricane Sandy, 19357-19362 [2013-07268]
Allocation of Public Transportation Emergency Relief Funds in Response to Hurricane Sandy, 19357-19362 [2013-07268]
Download as PDF Federal Register / Vol. 78, No. 61 / Friday, March 29, 2013 / Notices Issued in Washington, DC, on March 25, 2013. Mark W. Bury, Acting Assistant Chief Counsel for International Law, Legislation, and Regulations. [FR Doc. 2013–07400 Filed 3–28–13; 8:45 am] BILLING CODE 4910–13–P DEPARTMENT OF TRANSPORTATION Federal Transit Administration Allocation of Public Transportation Emergency Relief Funds in Response to Hurricane Sandy Federal Transit Administration (FTA), DOT. ACTION: Notice of allocation of Emergency Relief funds. mstockstill on DSK4VPTVN1PROD with NOTICES AGENCY: SUMMARY: The Federal Transit Administration (FTA) announces the allocation of $2,000,000,000 under the Public Transportation Emergency Relief Program (Emergency Relief Program, Catalogue of Federal Domestic Assistance #20.527) for FTA recipients affected by Hurricane Sandy, which impacted the northeastern seaboard in October 2012 and had a particularly devastating impact on transit systems in New York and New Jersey. FTA is allocating funds as outlined in a Notice of Availability of Emergency Relief Funds published in the Federal Register on February 6, 2013 (78 FR 8691), and consistent with the requirements of the Disaster Relief Appropriations Act of 2013 (Appropriations Act, Pub. L. 113– 2). Concurrently with this notice of allocations, FTA is publishing in today’s Federal Register an interim final rule (IFR) for the Emergency Relief Program (49 CFR Part 602). This rule outlines general program requirements that will apply to all funds allocated in this notice and to subsequent grant awards under this program. The rule takes effect immediately. FTA’s Emergency Relief Program was authorized by Congress in the Moving Ahead for Progress in the 21st Century Act (MAP–21, Pub. L. 112–141) and provides FTA with primary responsibility for reimbursing emergency response and recovery costs after an emergency or major disaster that affects public transportation systems. The Appropriations Act provides $10.9 billion for FTA’s Emergency Relief Program for recovery, relief and resiliency efforts for public transportation in areas affected by Hurricane Sandy. As a result of the Budget Control Act of 2011 (Pub. L. 112–25), five percent of the $10.9 billion VerDate Mar<15>2010 17:34 Mar 28, 2013 Jkt 229001 made available under the Appropriations Act ($545,000,000) is subject to the significant spending cuts known as sequestration and is unavailable for Hurricane Sandy disaster relief. The Appropriations Act requires that not more than $2 billion shall be made available no later than March 30, 2013. With this notice, FTA is allocating the initial $2 billion, excluding funds to be used for program implementation and oversight, to recipients affected by Hurricane Sandy (affected recipients) for eligible emergency response and recovery costs. In the February 6, 2013, Federal Register notice, FTA instructed affected recipients to submit requests for reimbursement of eligible expenses incurred in advance of January 29, 2013, and for the costs of contract work advertised and force account work budgeted prior to January 29, 2013. FTA announced individual allocations on a rolling basis beginning March 6, 2013. Table 1 shows a summary of the allocations made in this notice. Table 2 shows the allocation for each affected recipient. In addition to funds allocated for the reimbursement of costs meeting the above criteria, FTA is allocating the remainder of the initial $2 billion, based on the anticipated cost of recovery for each affected recipient. These funds are available for eligible emergency operations, emergency protective measures, and emergency and permanent repairs to and replacement of assets that suffered serious damage as a result of the storm. Recipients should develop a list of eligible projects, consistent with the Emergency Relief Program rule, at 49 CFR § 602.17, and review the list of projects with the applicable FTA Regional Office prior to submitting a grant application in FTA’s Transportation Electronic Award Management (TEAM) system. FTA granted affected recipients pre-award authority for projects eligible for the initial $2 billion allocation in the February 6, 2013 Federal Register notice. Prior to exercising pre-award authority, recipients are encouraged to work with the appropriate Regional Office to ensure that the applicable Federal requirements are followed. All allocations, including these pro-rated allocations, are included in Table 2. Guidance regarding project eligibility and determinations regarding applicability of certain FTA requirements issued in the February 6, 2013 notice will only apply to costs incurred prior to January 29, 2013, and to other expenses that meet the requirements specified in that notice for PO 00000 Frm 00179 Fmt 4703 Sfmt 4703 19357 inclusion under Category One, Two or Three. Recipients may request waivers of FTA administrative requirements by submitting a request to FTA docket number FTA–2013–0001, as described in the February 6, 2013 Federal Register notice, and in the Emergency Relief Program rule at 49 CFR § 602.15, however, recipients should not proceed with a project under the expectation that waivers will be provided. Additional program requirements, considerations and grant application procedures specific to these funds are included in this notice. FOR FURTHER INFORMATION CONTACT: Contact the appropriate FTA Regional Office found at http://www.fta.dot.gov for application-specific information and other assistance needed in preparing a TEAM grant application. For programspecific questions, please contact Adam Schildge, Office of Program Management, 1200 New Jersey Ave. SE., Washington, DC 20590, phone: (202) 366–0778, or email, Adam.Schildge@dot.gov. For legal questions, contact Bonnie Graves, Office of Chief Counsel, same address, phone: (202) 366–4011, or email, Bonnie.Graves@dot.gov. SUPPLEMENTARY INFORMATION: Table of Contents I. Considerations for Recipients of Emergency Relief Funds A. Allocation of Funds B. Use of Funds C. Pre-award Authority D. Application Process E. 24 Month Expenditure Requirement F. Waiver of Remaining Useful Life Requirement G. Disposition of Assets H. Treatment of Insurance Proceeds I. Executive Order 11988, Floodplain Management II. Award Administration A. Grant Application B. Payment C. Special Conditions for Grant Agreements D. Reporting Requirements E. Oversight and Audits I. Considerations for Recipients of Emergency Relief Funds A. Allocation of Funds FTA is allocating the first $2 billion to affected recipients in two steps. In the first step, FTA prioritized the reimbursement of immediate response and recovery expenses related to Hurricane Sandy. While the list of eligible activities is the same for all allocations under this notice, in order to qualify for reimbursement in this first step, costs must have met the requirements of one of the following three categories: Category One includes E:\FR\FM\29MRN1.SGM 29MRN1 19358 Federal Register / Vol. 78, No. 61 / Friday, March 29, 2013 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES costs incurred or disbursed prior to January 29, 2013. Category Two includes costs related to requests for proposals or invitations to bid that were advertised prior to January 29, 2013. Category Three includes the costs of future force account work that was budgeted prior to January 29, 2013. FTA has already allocated $576,620,159 for expenses under Categories One, Two and Three. The specific grant requirements listed in section II.D. in the February 6, 2013, Federal Register notice apply to these three categories of projects. In the second step, FTA is allocating additional funding for pending validated costs requested under Categories One, Two, and Three and for additional eligible recovery and rebuilding costs. For this second step, which involves a pro-rated allocation, FTA is allocating funds based on detailed damage assessments submitted by affected agencies and prepared in cooperation with FTA and FEMA staff and firms contracted by FTA to provide assistance in compiling and reviewing these assessments. FTA, in coordination with FEMA, performed preliminary assessments of the damage caused by Sandy to assets owned by those transit providers in the states of New York and New Jersey most affected by the storm. These transit providers included the following major transit agencies: • The Metropolitan Transportation Authority, doing business as: Æ MTA New York City Transit (NYCT) Æ MTA Bus Company (MTA Bus) Æ MTA Metro-North Railroad (MNR) Æ MTA Long Island Railroad (LIRR) Æ MTA Capital Construction Division (MTACC) • The New York City Department of Transportation (NYCDOT) • The Port Authority of New York and New Jersey (PANYNJ) which operates Port Authority Trans Hudson (PATH) service and the rebuilding of the World Trade Center Transportation Hub and site Three expenses, on a pro-rated basis to the agencies listed above and setting aside two percent of this amount for agencies other than these four that suffered damage. From FTA’s earlier damage assessment efforts, it knows that New York State Department of Transportation and many smaller transit agencies such as the City of Long Beach and Nassau County Intercounty Express (NICE); and the counties of Putnam, Rockland and Westchester suffered serious damage. Two percent, or $28,048,497, is available for affected recipients, such as these, that may have eligible expenses not yet reimbursed to date. Affected recipients should contact their regional office to discuss outstanding response and recovery expenses. As of the date of publication of the Emergency Relief Program rule, FTA is authorized to allocate additional funding beyond the initial $2 billion allocated in this notice. FTA intends to issue a second Notice of Availability of Emergency Relief Funding in the near future for this additional Hurricane Sandy disaster relief funding, over and above the $2 billion allocated in this notice. • New Jersey Transit Affected recipients have had the opportunity to review and provide comments on these damage assessments. The damage assessments include an initial overall cost of recovery and rebuilding for the affected agencies, excluding projects to improve the resiliency of the affected systems to future disasters, is approximately $5.83 billion. Using these initial costs estimates based on these damage assessments, FTA is allocating the remaining $1,402,424,841, less pending validation of Category One, Two, and C. Pre-award Authority VerDate Mar<15>2010 17:34 Mar 28, 2013 Jkt 229001 B. Use of Funds Consistent with the February 6, 2013, Federal Register notice, funds allocated in this notice are available to reimburse eligible emergency operations, emergency protective measures, and emergency and permanent repairs to and replacement of assets that suffered serious damage as a result of the storm. FTA has determined that the operating costs of re-establishing regular transit service in the immediate aftermath of the storm are eligible emergency operating expenses and are eligible under this program, subject to the determination by FTA of the appropriate time period and extent of operations as warranted by the condition of the transit system in the immediate aftermath of the storm. In the February 6, 2013, Federal Register notice, FTA granted pre-award authority to affected recipients for expenses incurred in preparation for Hurricane Sandy (e.g., evacuation, relocation, protecting and safeguarding assets) and for response and recovery expenses incurred as a result of Hurricane Sandy. Pre-award authority allows affected recipients to incur certain project costs before grant approval and retain the eligibility of those costs for subsequent reimbursement after grant approval. PO 00000 Frm 00180 Fmt 4703 Sfmt 4703 If a recipient intends to use pre-award authority for the funds allocated in this notice, FTA recommends the recipient submit a proposed program of projects to FTA to verify that all pre-requisite requirements have been met, and that the proposed costs are all eligible under the Emergency Relief program, in advance of incurring any costs. Since this program is new and interim final regulations are being published concurrently with this allocation, recipients may not be familiar with all applicable statutory and regulatory requirements for this program, including those that might be different from other FTA grant programs. If funds are expended for an ineligible project or activity, or for an eligible activity but at an inappropriate time (e.g., prior to environmental review completion), FTA will be unable to reimburse the project sponsor and, in certain cases, the entire project may be rendered ineligible for FTA assistance. Pre-award authority is described in the Emergency Relief Program rule at 49 CFR § 602.11. In considering the use of pre-award authority, recipients should be aware of the following: (i) Pre-award authority is not a legal or implied commitment that the subject project will be approved for FTA assistance or that FTA will obligate Federal funds. Furthermore, it is not a legal or implied commitment that all activities undertaken by the applicant will be eligible for inclusion in the project. (ii) Except as provided for Categories One, Two and Three in section II.D. of the February 6, 2013, Federal Register notice, all FTA statutory, procedural, and contractual requirements must be met. (iii) The recipient must take no action that prejudices the legal and administrative findings that the FTA Regional Administrator must make in order to approve a project. (iv) The Federal amount of any future FTA assistance awarded to the recipient 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/non-Federal match ratio at the time the funds are obligated. (v) When FTA subsequently awards a grant for the project, the Federal Financial Report in TEAM-Web must indicate the use of pre-award authority. D. Application Process Amounts allocated for costs in Categories One, Two and Three are based on a recipient’s demonstration of expenses incurred for emergency operations and capital repair, E:\FR\FM\29MRN1.SGM 29MRN1 Federal Register / Vol. 78, No. 61 / Friday, March 29, 2013 / Notices reconstruction and replacement expenses in response to Hurricane Sandy. FTA has reviewed each recipient’s justification for reimbursement, and has validated specific costs as eligible for reimbursement. Recipients are permitted to submit grant applications in TEAM upon the announcement of an allocation for these expenses. FTA’s Regional Offices will review these grant applications for consistency with each agency’s request for reimbursement. Amounts allocated for costs outside these three categories are based on damage assessments prepared by FTA staff, FEMA staff, and contractors. Prior to submitting a grant application or modification for new recovery and rebuilding projects, recipients should submit a proposed list of projects and expenses to FTA’s Regional Office for review, consistent with 49 CFR § 602.17. Upon verification by FTA that such projects are eligible, recipients may submit grant applications in TEAM. This review will ensure that all proposed projects and costs are eligible under the Emergency Relief Program. Recipients are required to maintain records, including but not limited to all invoices, contracts, time sheets, and other evidence of expenses to assist FTA in periodically validating the eligibility and completeness of a recipient’s reimbursement requests. mstockstill on DSK4VPTVN1PROD with NOTICES E. 24 Month Expenditure Requirement Projects funded through the Disaster Relief Appropriations Act of 2013 are subject to section 904(c) of that Act, which requires expenditure of funds within 24 months of grant obligation, unless this requirement is subsequently waived for this program in accordance with guidance to be issued by the Office of Management and Budget. In all cases, oversight procedures will be put in place to ensure that projects are implemented in accordance with the project schedule. F. Waiver of Remaining Useful Life Requirement FTA is implementing a blanket waiver to relieve FTA recipients from its useful life requirement with respect to assets that were destroyed or seriously damaged as a result of the storm and taken out of service before the end of their useful life. Due to the damage inflicted by Hurricane Sandy, facilities and equipment that have suffered serious damage and hence qualify for replacement under the Emergency Relief Program are presumed to have no remaining useful life. As a result of this waiver, recipients may apply for funds to replace assets at a 90% Federal share VerDate Mar<15>2010 17:34 Mar 28, 2013 Jkt 229001 without regard to the Federal share remaining in the destroyed asset. G. Disposition of Damaged or Destroyed Assets Although FTA has determined that federally-funded assets seriously damaged or destroyed by Hurricane Sandy have no remaining useful life, recipients may have a financial obligation to FTA for assets that have a fair market value (FMV) in excess of $5,000 at the time of disposition. Each recipient must notify FTA of how it is disposing of any federallyfunded assets that have reached the end of their useful life (or those for which FTA has waived remaining useful life) that have a FMV greater than $5,000 and calculate the pro-rata share of the FMV if FTA funded the asset. Consistent with the common grant rule at 49 CFR § 18.32(e), FTA Circular 5010.1D, ‘‘Grant Management Requirements,’’ October 1, 2008, Chapter IV, subsection 3, http:// www.fta.dot.gov/documents/ C_5010_1D_Finalpub.pdf, discusses disposition of equipment that has reached the end of its service life. If the unit has a FMV of $5,000 or more, then the recipient must reimburse FTA’s share of the fair market value of the FTA assisted equipment. Reimbursements and documentation should be documented in the Sandy grant in TEAM. H. Treatment of Insurance Proceeds As stated in the February 6, 2013, Notice of Availability of Emergency Relief Funding, recipients that have received insurance payments for damaged equipment and facilities prior to the receipt of FTA Emergency Relief funding must reduce their reimbursement request by the amount of insurance proceeds allocated for the repair or replacement of a given asset. FTA will participate at a 90 percent Federal share of the net project cost after application of insurance proceeds. If a recipient receives or allocates insurance proceeds to a project after receiving FTA Emergency Relief funds, the recipient must repay to FTA either 90 percent or 100 percent of the insurance proceeds received, depending on the Federal share for that project. Remaining insurance proceeds after repayment may be used as local match. In the event a recipient receives insurance proceeds for an asset and decides not to replace that asset, the waiver of useful life described in section F does not apply, and the recipient must reimburse FTA the remaining Federal interest in that asset in accordance with FTA Circular 5010.1D. PO 00000 Frm 00181 Fmt 4703 Sfmt 4703 19359 I. Executive Order 11988, Floodplain Management Executive Order 11988, Floodplain Management, requires Federal agencies to avoid to the extent possible the long and short-term adverse impacts associated with the occupancy and modification of floodplains and to avoid direct and indirect support of floodplain development wherever there is a practicable alternative. In accordance with the Executive Order, recipients shall not use grant funds for any activity in an area delineated as a ‘special flood hazard area’ or equivalent, as labeled in the Federal Emergency Management Administration’s (FEMA) most recent and current data source, unless, prior to seeking FTA funding for such action, the recipient designs or modifies its actions in order to minimize potential harm to or within the floodplain. To guide decision making, recipients shall use the ‘‘best available information’’ as identified by FEMA, which includes advisory data (such as Advisory Base Flood Elevations), preliminary and final Flood Insurance Rate Maps (FIRMs), and Flood Insurance Studies (FISs). If FEMA data is mutually determined by FTA and the recipient to be unavailable or insufficiently detailed, other Federal, State, or local data may be used as the ‘‘best available information’’ in accordance with Executive Order 11988. For Hurricane Sandy, the Secretary of Transportation has determined that if a Federally-funded project or activity is located in a floodplain, that the ‘‘best available information’’ requires a minimum baseline standard for elevation no less than that found in FEMA’s Advisory Base Flood Elevations, where available, plus one foot (ABFE+1). This determination recognizes that the existing Flood Insurance Rate Maps (FIRMs) for the New Jersey and New York coastlines were developed more than 25 years ago. Updated FIRMs are yet to be finalized and will not be available in time to provide updated information to support vital and immediate reconstruction efforts. This determination is based on FEMA’s assessment that, following recent storm events including Hurricane Sandy, the base flood elevations shown on some existing FIRMs do not adequately reflect the current coastal flood hazard risk. FEMA recognizes that the ABFEs are based on sound science and engineering, and are derived from more recent data and improved study methodologies compared to existing FIRMs. To reduce the likelihood of future damage from such risks as storm surge, coastal hazards, and projections of sea level rise, the application of an E:\FR\FM\29MRN1.SGM 29MRN1 19360 Federal Register / Vol. 78, No. 61 / Friday, March 29, 2013 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES ABFE+1 standard provides a limited safeguard against the natural recurrence of flood hazards. Thus, for projects in floodplains, when considering alternatives to avoid adverse effects and determining how to design or modify its actions in order to minimize potential harm to or within the floodplain consistent with Executive Order 11988, recipients should consider that the ‘‘best available information’’ for baseline elevation is ABFE, or, if that is not available, FIRM+1. This standard does not mean that transit agencies will be required to move existing facilities to a higher elevation; however, in order to minimize potential harm within the floodplain in accordance with Executive Order 11988, recipients must consider the best available information (ABFE or FIRMs), including sea level rise consistent with the addition of at least one foot over the most up to date elevations. Particularly with respect to existing facilities where relocating them may not be feasible, examples of actions to minimize potential harm to or within the floodplain and reduce the risk of damage from future disasters include but are not limited to updated design features or added protective features (resiliency projects). Consistent with FTA’s interim final rule, if State or locally adopted code or standards require higher elevations, those higher standards would apply. VerDate Mar<15>2010 17:34 Mar 28, 2013 Jkt 229001 II. Award Administration A. Grant Application Once FTA allocates Emergency Relief funds to a recipient, the recipient will be required to submit a grant application electronically via FTA’s TEAM system. Recipients should work with their FTA Regional Office to develop and submit their application in TEAM so that funds can be obligated expeditiously. Grant applications in TEAM may only include eligible activities under the Emergency Relief program. A discretionary project identification number has been assigned to each recipient’s allocation for tracking purposes and must be used in the TEAM application. B. Payment Upon award, payments to recipients will be made by electronic transfer to the recipient’s financial institution through FTA’s Electronic Clearing House Operation (ECHO) system. C. Grant Requirements Emergency Relief funds may only be used for eligible purposes as defined under 49 U.S.C. 5324 and as described in the Emergency Relief Program Rule (49 CFR Part 602) and the February 6, 2013, Notice of Availability of Emergency Relief Funds. Recipients of section 5324 funds must comply with all applicable Federal requirements, including FTA’s Master PO 00000 Frm 00182 Fmt 4703 Sfmt 4703 Agreement. Each grant for section 5324 funds will include special grant conditions, including but not limited to, application of insurance proceeds, application of any FEMA funds received, section 904(c) of the Disaster Relief Appropriations Act of 2013, Federal share, and enhanced oversight. D. Reporting Requirements Post-award reporting requirements include a monthly submission of the Federal Financial Report and Milestone reports in TEAM consistent with FTA’s grants management Circular 5010.1D, as well as any other reporting requirements FTA determines are necessary. E. Oversight and Audits Recipients are advised that FTA will implement an enhanced oversight process for funds awarded under the Emergency Relief Program in response to Hurricane Sandy. FTA will issue separate guidance on the applicable oversight procedures for grants awarded in response to Hurricane Sandy. In addition, recipients should anticipate a high likelihood of additional scrutiny by the Government Accountability Office (GAO) and the Department of Transportation’s Office of the Inspector General (OIG). Issued in Washington, DC, this 25th day of March, 2013. Peter Rogoff, Administrator. BILLING CODE P E:\FR\FM\29MRN1.SGM 29MRN1 Federal Register / Vol. 78, No. 61 / Friday, March 29, 2013 / Notices 19361 FEDERAL TRANSIT ADMINISTRATION Table 1 FTA Section 5324 Emergency Relief Program Allocation of $2 Billion for Hurricane Sandy Disaster Relief FY 2013 Disaster Relief Appropriations Available $ 2,000,000,000 Less Transfer to DOT Office of the Inspector General (OIG) $ (6,000,000) $ (5, 700, 000) Less Program Administration and Oversight $ (14,955,000) Less Allocations to Date (Categories One, Two, Three)2 $ $ (576,620,159) Actual amount available for DOT 01G 1 Total Available for Pro-Rated Allocation 1,402,424,841 1 The actual amount reflects a five percent reduction as a result ofthe Budget Control Act of 2011 (Pub. L. 112-25) and the March 1,2013, OMB Reportto the Congress on the Joint Committee Sequestration for Fiscal Year 2013. The reduction is appl i ed to the tota I appropriation for Hurricane Sandy (less the transfer to the OIG) and for purposes of this allocation was applied to the amounttransferred to the OIG. FTA has allocated funds to date for eligible expenses in three categories. The three categories represent eligible disaster response and recovery expenses incurred, advertised or budgeted prior to January 29,2013, as described in the February 6,2013 Notice of Availability of Emergency Relief Funding. VerDate Mar<15>2010 17:34 Mar 28, 2013 Jkt 229001 PO 00000 Frm 00183 Fmt 4703 Sfmt 4725 E:\FR\FM\29MRN1.SGM 29MRN1 EN29MR13.000 mstockstill on DSK4VPTVN1PROD with NOTICES 2 Federal Register / Vol. 78, No. 61 / Friday, March 29, 2013 / Notices BILLING CODE C MARAD. The vessel, and a brief description of the proposed service, is listed below. DEPARTMENT OF TRANSPORTATION DATES: Maritime Administration ADDRESSES: [FR Doc. 2013–07268 Filed 3–28–13; 8:45 am] [Docket No. MARAD–2013 0026] Requested Administrative Waiver of the Coastwise Trade Laws: Vessel W.L. STEWART III; Invitation for Public Comments Maritime Administration, Department of Transportation. ACTION: Notice. mstockstill on DSK4VPTVN1PROD with NOTICES AGENCY: SUMMARY: As authorized by 46 U.S.C. 12121, the Secretary of Transportation, as represented by the Maritime Administration (MARAD), is authorized to grant waivers of the U.S.-build requirement of the coastwise laws under certain circumstances. A request for such a waiver has been received by VerDate Mar<15>2010 17:34 Mar 28, 2013 Jkt 229001 Submit comments on or before April 29, 2013. Comments should refer to docket number MARAD–2013–0026. Written comments may be submitted by hand or by mail to the Docket Clerk, U.S. Department of Transportation, Docket Operations, M–30, West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue SE., Washington, DC 20590. You may also send comments electronically via the Internet at http://www.regulations.gov. All comments will become part of this docket and will be available for inspection and copying at the above address between 10 a.m. and 5 p.m., E.T., Monday through Friday, except federal holidays. An electronic version of this document and all documents entered into this docket is available on PO 00000 Frm 00184 Fmt 4703 Sfmt 4703 the World Wide Web at http:// www.regulations.gov. FOR FURTHER INFORMATION CONTACT: Linda Williams, U.S. Department of Transportation, Maritime Administration, 1200 New Jersey Avenue SE., Room W23–453, Washington, DC 20590. Telephone 202– 366–0903, Email Linda.Williams@dot.gov. SUPPLEMENTARY INFORMATION: As described by the applicant the intended service of the vessel W.L. STEWART III is: Intended Commercial Use of Vessel: ‘‘Yacht Club Regatta and Sailing Instruction Support’’ Geographic Region: ‘‘California’’ The complete application is given in DOT docket MARAD–2013–0026 at http://www.regulations.gov. Interested parties may comment on the effect this action may have on U.S. vessel builders or businesses in the U.S. that use U.S.flag vessels. If MARAD determines, in E:\FR\FM\29MRN1.SGM 29MRN1 EN29MR13.001 19362
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[FR Doc No: 2013-07268]
allocation of $2,000,000,000 under the Public Transportation Emergency
Relief Program (Emergency Relief Program, Catalogue of Federal Domestic
Assistance 20.527) for FTA recipients affected by Hurricane
Sandy, which impacted the northeastern seaboard in October 2012 and had
a particularly devastating impact on transit systems in New York and
New Jersey. FTA is allocating funds as outlined in a Notice of
Availability of Emergency Relief Funds published in the Federal
Register on February 6, 2013 (78 FR 8691), and consistent with the
requirements of the Disaster Relief Appropriations Act of 2013
(Appropriations Act, Pub. L. 113-2).
Concurrently with this notice of allocations, FTA is publishing in
today's Federal Register an interim final rule (IFR) for the Emergency
Relief Program (49 CFR Part 602). This rule outlines general program
requirements that will apply to all funds allocated in this notice and
to subsequent grant awards under this program. The rule takes effect
FTA's Emergency Relief Program was authorized by Congress in the
Moving Ahead for Progress in the 21st Century Act (MAP-21, Pub. L. 112-
141) and provides FTA with primary responsibility for reimbursing
emergency response and recovery costs after an emergency or major
disaster that affects public transportation systems. The Appropriations
Act provides $10.9 billion for FTA's Emergency Relief Program for
recovery, relief and resiliency efforts for public transportation in
areas affected by Hurricane Sandy. As a result of the Budget Control
Act of 2011 (Pub. L. 112-25), five percent of the $10.9 billion made
available under the Appropriations Act ($545,000,000) is subject to the
significant spending cuts known as sequestration and is unavailable for
Hurricane Sandy disaster relief.
The Appropriations Act requires that not more than $2 billion shall
be made available no later than March 30, 2013. With this notice, FTA
is allocating the initial $2 billion, excluding funds to be used for
program implementation and oversight, to recipients affected by
Hurricane Sandy (affected recipients) for eligible emergency response
and recovery costs.
In the February 6, 2013, Federal Register notice, FTA instructed
affected recipients to submit requests for reimbursement of eligible
expenses incurred in advance of January 29, 2013, and for the costs of
contract work advertised and force account work budgeted prior to
January 29, 2013. FTA announced individual allocations on a rolling
basis beginning March 6, 2013. Table 1 shows a summary of the
allocations made in this notice. Table 2 shows the allocation for each
affected recipient.
In addition to funds allocated for the reimbursement of costs
meeting the above criteria, FTA is allocating the remainder of the
initial $2 billion, based on the anticipated cost of recovery for each
affected recipient. These funds are available for eligible emergency
operations, emergency protective measures, and emergency and permanent
repairs to and replacement of assets that suffered serious damage as a
result of the storm. Recipients should develop a list of eligible
projects, consistent with the Emergency Relief Program rule, at 49 CFR
Sec.  602.17, and review the list of projects with the applicable FTA
Regional Office prior to submitting a grant application in FTA's
Transportation Electronic Award Management (TEAM) system. FTA granted
affected recipients pre-award authority for projects eligible for the
initial $2 billion allocation in the February 6, 2013 Federal Register
notice. Prior to exercising pre-award authority, recipients are
encouraged to work with the appropriate Regional Office to ensure that
the applicable Federal requirements are followed. All allocations,
including these pro-rated allocations, are included in Table 2.
Guidance regarding project eligibility and determinations regarding
applicability of certain FTA requirements issued in the February 6,
2013 notice will only apply to costs incurred prior to January 29,
2013, and to other expenses that meet the requirements specified in
that notice for inclusion under Category One, Two or Three. Recipients
may request waivers of FTA administrative requirements by submitting a
request to FTA docket number FTA-2013-0001, as described in the
February 6, 2013 Federal Register notice, and in the Emergency Relief
Program rule at 49 CFR Sec.  602.15, however, recipients should not
proceed with a project under the expectation that waivers will be
provided. Additional program requirements, considerations and grant
application procedures specific to these funds are included in this
Office found at http://www.fta.dot.gov for application-specific
information and other assistance needed in preparing a TEAM grant
application. For program-specific questions, please contact Adam
Schildge, Office of Program Management, 1200 New Jersey Ave. SE.,
Washington, DC 20590, phone: (202) 366-0778, or email,
Adam.Schildge@dot.gov. For legal questions, contact Bonnie Graves,
Office of Chief Counsel, same address, phone: (202) 366-4011, or email,
Bonnie.Graves@dot.gov.
G. Disposition of Assets
FTA is allocating the first $2 billion to affected recipients in
two steps. In the first step, FTA prioritized the reimbursement of
immediate response and recovery expenses related to Hurricane Sandy.
While the list of eligible activities is the same for all allocations
under this notice, in order to qualify for reimbursement in this first
step, costs must have met the requirements of one of the following
three categories: Category One includes
costs incurred or disbursed prior to January 29, 2013. Category Two
includes costs related to requests for proposals or invitations to bid
that were advertised prior to January 29, 2013. Category Three includes
the costs of future force account work that was budgeted prior to
January 29, 2013. FTA has already allocated $576,620,159 for expenses
under Categories One, Two and Three. The specific grant requirements
listed in section II.D. in the February 6, 2013, Federal Register
notice apply to these three categories of projects.
In the second step, FTA is allocating additional funding for
pending validated costs requested under Categories One, Two, and Three
and for additional eligible recovery and rebuilding costs. For this
second step, which involves a pro-rated allocation, FTA is allocating
funds based on detailed damage assessments submitted by affected
agencies and prepared in cooperation with FTA and FEMA staff and firms
contracted by FTA to provide assistance in compiling and reviewing
these assessments. FTA, in coordination with FEMA, performed
preliminary assessments of the damage caused by Sandy to assets owned
by those transit providers in the states of New York and New Jersey
most affected by the storm. These transit providers included the
following major transit agencies:
The Metropolitan Transportation Authority, doing business
[cir] MTA New York City Transit (NYCT)
[cir] MTA Bus Company (MTA Bus)
[cir] MTA Metro-North Railroad (MNR)
[cir] MTA Long Island Railroad (LIRR)
[cir] MTA Capital Construction Division (MTACC)
The New York City Department of Transportation (NYCDOT)
which operates Port Authority Trans Hudson (PATH) service and the
rebuilding of the World Trade Center Transportation Hub and site
Affected recipients have had the opportunity to review and provide
comments on these damage assessments. The damage assessments include an
initial overall cost of recovery and rebuilding for the affected
agencies, excluding projects to improve the resiliency of the affected
systems to future disasters, is approximately $5.83 billion. Using
these initial costs estimates based on these damage assessments, FTA is
allocating the remaining $1,402,424,841, less pending validation of
Category One, Two, and Three expenses, on a pro-rated basis to the
agencies listed above and setting aside two percent of this amount for
agencies other than these four that suffered damage. From FTA's earlier
damage assessment efforts, it knows that New York State Department of
Transportation and many smaller transit agencies such as the City of
Long Beach and Nassau County Intercounty Express (NICE); and the
counties of Putnam, Rockland and Westchester suffered serious damage.
Two percent, or $28,048,497, is available for affected recipients, such
as these, that may have eligible expenses not yet reimbursed to date.
Affected recipients should contact their regional office to discuss
outstanding response and recovery expenses.
As of the date of publication of the Emergency Relief Program rule,
FTA is authorized to allocate additional funding beyond the initial $2
billion allocated in this notice. FTA intends to issue a second Notice
of Availability of Emergency Relief Funding in the near future for this
additional Hurricane Sandy disaster relief funding, over and above the
$2 billion allocated in this notice.
Consistent with the February 6, 2013, Federal Register notice,
funds allocated in this notice are available to reimburse eligible
emergency operations, emergency protective measures, and emergency and
permanent repairs to and replacement of assets that suffered serious
damage as a result of the storm.
FTA has determined that the operating costs of re-establishing
regular transit service in the immediate aftermath of the storm are
eligible emergency operating expenses and are eligible under this
program, subject to the determination by FTA of the appropriate time
period and extent of operations as warranted by the condition of the
transit system in the immediate aftermath of the storm.
In the February 6, 2013, Federal Register notice, FTA granted pre-
award authority to affected recipients for expenses incurred in
preparation for Hurricane Sandy (e.g., evacuation, relocation,
protecting and safeguarding assets) and for response and recovery
expenses incurred as a result of Hurricane Sandy. Pre-award authority
allows affected recipients to incur certain project costs before grant
reimbursement after grant approval.
If a recipient intends to use pre-award authority for the funds
allocated in this notice, FTA recommends the recipient submit a
proposed program of projects to FTA to verify that all pre-requisite
requirements have been met, and that the proposed costs are all
eligible under the Emergency Relief program, in advance of incurring
any costs. Since this program is new and interim final regulations are
being published concurrently with this allocation, recipients may not
be familiar with all applicable statutory and regulatory requirements
for this program, including those that might be different from other
FTA grant programs. If funds are expended for an ineligible project or
activity, or for an eligible activity but at an inappropriate time
(e.g., prior to environmental review completion), FTA will be unable to
reimburse the project sponsor and, in certain cases, the entire project
may be rendered ineligible for FTA assistance.
rule at 49 CFR Sec.  602.11. In considering the use of pre-award
(ii) Except as provided for Categories One, Two and Three in
section II.D. of the February 6, 2013, Federal Register notice, all FTA
statutory, procedural, and contractual requirements must be met.
and administrative findings that the FTA Regional Administrator must
make in order to approve a project.
Federal Financial Report in TEAM-Web must indicate the use of pre-award
Amounts allocated for costs in Categories One, Two and Three are
based on a recipient's demonstration of expenses incurred for emergency
operations and capital repair,
reconstruction and replacement expenses in response to Hurricane Sandy.
FTA has reviewed each recipient's justification for reimbursement, and
has validated specific costs as eligible for reimbursement. Recipients
are permitted to submit grant applications in TEAM upon the
announcement of an allocation for these expenses. FTA's Regional
Offices will review these grant applications for consistency with each
agency's request for reimbursement.
Amounts allocated for costs outside these three categories are
based on damage assessments prepared by FTA staff, FEMA staff, and
contractors. Prior to submitting a grant application or modification
for new recovery and rebuilding projects, recipients should submit a
proposed list of projects and expenses to FTA's Regional Office for
review, consistent with 49 CFR Sec.  602.17. Upon verification by FTA
that such projects are eligible, recipients may submit grant
applications in TEAM. This review will ensure that all proposed
projects and costs are eligible under the Emergency Relief Program.
expenses to assist FTA in periodically validating the eligibility and
completeness of a recipient's reimbursement requests.
Projects funded through the Disaster Relief Appropriations Act of
2013 are subject to section 904(c) of that Act, which requires
expenditure of funds within 24 months of grant obligation, unless this
requirement is subsequently waived for this program in accordance with
guidance to be issued by the Office of Management and Budget. In all
cases, oversight procedures will be put in place to ensure that
projects are implemented in accordance with the project schedule.
or seriously damaged as a result of the storm and taken out of service
before the end of their useful life. Due to the damage inflicted by
Hurricane Sandy, facilities and equipment that have suffered serious
damage and hence qualify for replacement under the Emergency Relief
Program are presumed to have no remaining useful life. As a result of
this waiver, recipients may apply for funds to replace assets at a 90%
Federal share without regard to the Federal share remaining in the
destroyed asset.
G. Disposition of Damaged or Destroyed Assets
Although FTA has determined that federally-funded assets seriously
damaged or destroyed by Hurricane Sandy have no remaining useful life,
Each recipient must notify FTA of how it is disposing of any
federally-funded assets that have reached the end of their useful life
(or those for which FTA has waived remaining useful life) that have a
FMV greater than $5,000 and calculate the pro-rata share of the FMV if
FTA funded the asset.
Consistent with the common grant rule at 49 CFR Sec.  18.32(e), FTA
Circular 5010.1D, ``Grant Management Requirements,'' October 1, 2008,
Chapter IV, subsection 3, http://www.fta.dot.gov/documents/C_5010_1D_Finalpub.pdf, discusses disposition of equipment that has reached
the end of its service life. If the unit has a FMV of $5,000 or more,
then the recipient must reimburse FTA's share of the fair market value
of the FTA assisted equipment. Reimbursements and documentation should
be documented in the Sandy grant in TEAM.
As stated in the February 6, 2013, Notice of Availability of
Emergency Relief Funding, recipients that have received insurance
payments for damaged equipment and facilities prior to the receipt of
FTA Emergency Relief funding must reduce their reimbursement request by
the amount of insurance proceeds allocated for the repair or
replacement of a given asset. FTA will participate at a 90 percent
Federal share of the net project cost after application of insurance
proceeds. If a recipient receives or allocates insurance proceeds to a
project after receiving FTA Emergency Relief funds, the recipient must
repay to FTA either 90 percent or 100 percent of the insurance proceeds
received, depending on the Federal share for that project. Remaining
insurance proceeds after repayment may be used as local match. In the
event a recipient receives insurance proceeds for an asset and decides
not to replace that asset, the waiver of useful life described in
section F does not apply, and the recipient must reimburse FTA the
remaining Federal interest in that asset in accordance with FTA
Circular 5010.1D.
Executive Order 11988, Floodplain Management, requires Federal
agencies to avoid to the extent possible the long and short-term
adverse impacts associated with the occupancy and modification of
floodplains and to avoid direct and indirect support of floodplain
development wherever there is a practicable alternative. In accordance
with the Executive Order, recipients shall not use grant funds for any
activity in an area delineated as a `special flood hazard area' or
equivalent, as labeled in the Federal Emergency Management
Administration's (FEMA) most recent and current data source, unless,
prior to seeking FTA funding for such action, the recipient designs or
modifies its actions in order to minimize potential harm to or within
the floodplain. To guide decision making, recipients shall use the
``best available information'' as identified by FEMA, which includes
advisory data (such as Advisory Base Flood Elevations), preliminary and
final Flood Insurance Rate Maps (FIRMs), and Flood Insurance Studies
(FISs). If FEMA data is mutually determined by FTA and the recipient to
be unavailable or insufficiently detailed, other Federal, State, or
local data may be used as the ``best available information'' in
accordance with Executive Order 11988.
For Hurricane Sandy, the Secretary of Transportation has determined
that if a Federally-funded project or activity is located in a
floodplain, that the ``best available information'' requires a minimum
baseline standard for elevation no less than that found in FEMA's
Advisory Base Flood Elevations, where available, plus one foot
(ABFE+1). This determination recognizes that the existing Flood
Insurance Rate Maps (FIRMs) for the New Jersey and New York coastlines
were developed more than 25 years ago. Updated FIRMs are yet to be
finalized and will not be available in time to provide updated
information to support vital and immediate reconstruction efforts. This
determination is based on FEMA's assessment that, following recent
storm events including Hurricane Sandy, the base flood elevations shown
on some existing FIRMs do not adequately reflect the current coastal
flood hazard risk. FEMA recognizes that the ABFEs are based on sound
science and engineering, and are derived from more recent data and
improved study methodologies compared to existing FIRMs. To reduce the
likelihood of future damage from such risks as storm surge, coastal
hazards, and projections of sea level rise, the application of an
ABFE+1 standard provides a limited safeguard against the natural
recurrence of flood hazards.
Thus, for projects in floodplains, when considering alternatives to
avoid adverse effects and determining how to design or modify its
actions in order to minimize potential harm to or within the floodplain
consistent with Executive Order 11988, recipients should consider that
the ``best available information'' for baseline elevation is ABFE, or,
if that is not available, FIRM+1. This standard does not mean that
transit agencies will be required to move existing facilities to a
higher elevation; however, in order to minimize potential harm within
the floodplain in accordance with Executive Order 11988, recipients
must consider the best available information (ABFE or FIRMs), including
sea level rise consistent with the addition of at least one foot over
the most up to date elevations. Particularly with respect to existing
facilities where relocating them may not be feasible, examples of
actions to minimize potential harm to or within the floodplain and
reduce the risk of damage from future disasters include but are not
limited to updated design features or added protective features
(resiliency projects). Consistent with FTA's interim final rule, if
State or locally adopted code or standards require higher elevations,
those higher standards would apply.
via FTA's TEAM system. Recipients should work with their FTA Regional
Office to develop and submit their application in TEAM so that funds
can be obligated expeditiously. Grant applications in TEAM may only
include eligible activities under the Emergency Relief program.
A discretionary project identification number has been assigned to
each recipient's allocation for tracking purposes and must be used in
the TEAM application.
Program Rule (49 CFR Part 602) and the February 6, 2013, Notice of
Availability of Emergency Relief Funds.
FEMA funds received, section 904(c) of the Disaster Relief
Appropriations Act of 2013, Federal share, and enhanced oversight.
Post-award reporting requirements include a monthly submission of
the Federal Financial Report and Milestone reports in TEAM consistent
with FTA's grants management Circular 5010.1D, as well as any other
reporting requirements FTA determines are necessary.
Recipients are advised that FTA will implement an enhanced
oversight process for funds awarded under the Emergency Relief Program
in response to Hurricane Sandy. FTA will issue separate guidance on the
applicable oversight procedures for grants awarded in response to
Hurricane Sandy. In addition, recipients should anticipate a high
likelihood of additional scrutiny by the Government Accountability
Office (GAO) and the Department of Transportation's Office of the
Issued in Washington, DC, this 25th day of March, 2013.
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[FR Doc. 2013-07268 Filed 3-28-13; 8:45 am]