# Notice of FTA Transit Program Changes, Authorized Funding Levels and Implementation of the Moving Ahead for Progress in the 21st Century Act (MAP-21) and FTA Fiscal Year 2013 Apportionments, Allocations, Program Information and Interim Guidance > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A2012-25152 ## Record - **Collection:** Federal Register - **Document type:** Notice - **Published:** October 16, 2012 - **Citation:** 77 FR 63670 ## Text DEPARTMENT OF TRANSPORTATION Federal Transit Administration Notice of FTA Transit Program Changes, Authorized Funding Levels and Implementation of the Moving Ahead for Progress in the 21st Century Act (MAP-21) and FTA Fiscal Year 2013 Apportionments, Allocations, Program Information and Interim Guidance AGENCY: Federal Transit Administration (FTA), DOT. ACTION: Notice. SUMMARY: This notice announces changes in the Federal Transit Administration (FTA) programs in accordance with the Moving Ahead for Progress in the 21st Century Act (MAP-21), which authorizes surface transportation programs of the Department of Transportation for Federal fiscal years (FY) 2013 and 2014. This notice provides preliminary implementation instructions and guidance for the new and revised programs in FY 2013, announces the partial apportionment for programs authorized and funded with FY 2013 contract authority, and describes future plans for notice and comment for several programs. The notice also includes locations of tables of unobligated (or carryover) funds allocated under the discretionary programs from prior years carried out in accordance with the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy For Users (SAFETEA-LU) or prior authorization acts. FOR FURTHER INFORMATION CONTACT: For general information about this notice contact Jamie Pfister, Director, Office of Transit Programs, at (202) 366-2053. Please contact the appropriate FTA regional office for any specific requests for information or technical assistance. FTA regional office contact information is available on FTA's Web site: www.fta.dot.gov. An FTA headquarters contact for each major program area is included in the discussion of that program in the text of the notice. FTA recommends that stakeholders subscribe on FTA's Web site ( www.fta.dot.gov ) to receive email notifications when new information is available. SUPPLEMENTARY INFORMATION: Table Of Contents I. Overview II. FY 2013 Funding for FTA Programs A. MAP-21 Authorization and FY 2013 Continuing Resolution (CR) Appropriations B. Oversight Takedown C. Previously Authorized Funding III. MAP-21 and FY 2013 Appropriations: Highlights of Changes A. Focus Areas 1. Safety Authority 2. State of Good Repair and Asset Management 3. Streamlining and Program Efficiency i. Fixed Guideway Capital Investment Program ii. Pilot Program for Expedited Project Delivery 4. Formula Funding and MAP-21 Discretionary Programs i. Transit-Oriented Development Planning Pilot Program ii. Passenger Ferry Program iii. Tribal Discretionary Program iv. Innovative Workforce Development Program v. Low or No Emission Vehicle Deployment 5. Impacts of the 2010 Census B. Definitional Changes and New Definitions 1. Associated Transit Improvement 2. Bus Rapid Transit System 3. Commuter Highway Vehicle or Vanpool Vehicle 4. Disability 5. Fixed Guideway 6. Job Access and Reverse Commute Project 7. Low-Income Individual 8. Private Provider of Public Transportation by Vanpool 9. Public Transportation 10. Regional Transportation Planning Organization 11. Senior C. Repealed Programs in FTA's Authorization 1. Clean Fuels Grant Program (49 U.S.C. 5308) 2. Fixed Guideway Modernization (49 U.S.C. 5309) 3. Bus and Bus Facilities (49 U.S.C. 5309) 4. Job Access and Reverse Commute Program (49 U.S.C. 5316) 5. New Freedom Program (49 U.S.C. 5317) 6. Paul S. Sarbanes Transit in Parks Program (49 U.S.C. 5320) 7. Alternatives Analysis Program (49 U.S.C. 5339) 8. Over-the-Road Bus Accessibility Program (Section 3038, Pub. L. 105-85) D. Cross-Cutting Programmatic Requirements and Changes 1. Metropolitan and Statewide Planning 2. Environmental Review Process 3. Agency Safety Plans 4. Transit Asset Management Provisions (and Asset Inventory and Condition Reporting) 5. Costs Incurred by Providers of Public Transportation by Vanpool 6. Revenue Bonds as Local Match 7. Debt Service Reserve 8. Government's Share of Cost of Vehicles, Vehicle-Equipment, and Facilities for ADA and Clean Air Act Compliance 9. Private Sector Participation 10. Bus Testing 11. Buy America 12. Corridor Preservation 13. Rail Car Procurements 14. Veterans Preference/Employment 15. Alcohol and Controlled Substance Testing E. Title 23 (Federal-Aid Highways Program) Funds Eligible for Transit Purposes 1. Surface Transportation Program (23 U.S.C. 133) (STP) and Transportation Alternatives Program (23 U.S.C. 101) (TAP) 2. Congestion Mitigation and Air Quality Improvement Program (23 U.S.C. 149) (CMAQ) 3. National Highway Performance Program (23 U.S.C. 119) (NHPP) 4. Transferring Title 23 funds from FHWA to FTA 5. Matching Share for FHWA Transfers 6. Title 49/Chapter 53 Funds Eligible for Highway Purposes IV. Program-Specific Information A. Metropolitan Planning Program (49 U.S.C. 5305(d)) B. State Planning and Research Program (49 U.S.C. 5305(e)) C. Urbanized Area Formula Program (49 U.S.C. 5307) D. Fixed Guideway Capital Investment Program (49 U.S.C. 5309)—New and Small Starts and Core Capacity E. Enhanced Mobility of Seniors and Individuals with Disabilities Program (49 U.S.C. 5310) F. Rural Area Formula Program (49 U.S.C. 5311) G. Rural Transportation Assistance Program (49 U.S.C. 5311(b)(2)) H. Appalachian Development Public Transportation Assistance Program (49 U.S.C. 5311(c)(2) I. Formula Grants for Public Transportation on Indian Reservations Program (49 U.S.C. 5311(j)) J. Research, Development, Demonstration, and Deployment Projects (49 U.S.C. 5312) K. Transit Cooperative Research Program (49 U.S.C. 5313) L. Technical Assistance and Standards Development (49 U.S.C. 5314) M. Human Resources and Training Programs (49 U.S.C. 5322) N. Public Transportation Emergency Relief Program (49 U.S.C. 5324) O. Public Transportation Safety Program (49 U.S.C. 5329) P. State of Good Repair Program (49 U.S.C. 5337) Q. Bus and Bus Facilities Formula Grants (49 U.S.C. 5339) R. Growing States and High Density States Formula Factors (49 U.S.C. 5340) S. Washington Metropolitan Area Transit Authority Grants V. FTA Policy and Procedures for FY 2013 Grants A. Automatic Pre-Award Authority To Incur Project Costs B. Letter of No Prejudice (LONP) Policy C. FY 2013 Annual List of Certifications and Assurances D. Civil Rights E. Consolidated Planning Grants F. Grant Application Procedures G. Grant Management I. Overview This document contains important information and interim guidance about new FTA programs and changes to existing FTA programs authorized by the Moving Ahead for Progress in the 21st Century Act (MAP-21) (Pub. L. 112-141), signed by President Obama on July 6, 2012, and effective on October 1, 2012. In addition, this document provides apportionments for FTA formula programs in amounts at approximately one half of the funding levels available in FY 2012 pursuant to the Continuing Appropriations Resolution, 2013 (CR) (Pub. L. 112-175). It also contains information on how FTA plans to administer its transit programs in fiscal year (FY) 2013 and how funds appropriated and allocated prior to FY 2013 will be treated. This notice highlights important changes to FTA programs, including new safety authority, new asset management requirements, streamlining of the New and Small Starts Program, and the impact of the 2010 Census on apportionments for FY 2013. It describes definitional changes and cross-cutting requirements. It identifies repealed programs and provides specific information about FTA's programs as authorized under MAP-21. For each FTA program included, FTA has provided information on the MAP-21 authorized funding levels for FYs 2013 and 2014, funds available under the CR, the basis for apportionment or allocation of funds, requirements specific to the program, period of availability of funds, and other program information. A separate section provides information on pre-award authority and other requirements and guidance applicable to FTA programs and grant administration. Finally, the notice includes references to tables on FTA's Web site that show amounts apportioned under the CR, and approximately $1.9 billion in unobligated or carryover funding available in FY 2013 from prior years under certain discretionary programs carried out in accordance with SAFETEA-LU or other authorization acts. Information in this document includes references to the existing FTA program guidance circulars. While some information in the circulars has been superseded by new provisions in MAP-21, the circulars remain a resource for program guidance in most areas. FTA intends to revise the circulars, as appropriate, with an opportunity for public comment. To supplement the guidance provided in this document FTA is preparing answers to frequently asked questions (FAQs) on MAP-21 changes and impacts received from its grantees, stakeholders, and other interested parties. These FAQs will be posted on the FTA's Web site as they become available. II. FY 2013 Funding for FTA Programs A. MAP-21 Authorization and FY 2013 Continuing Resolution (CR) Appropriations MAP-21 is the new two-year surface transportation authority that provides FTA an authorization level of $10.6 billion in FY 2013 and $10.7 billion in FY 2014. MAP-21 consolidates certain transit programs to improve their efficiency and provides significant funding increases specifically for improving the state of good repair of the nation's transit systems. The law grants FTA authority to strengthen the safety of public transportation systems throughout the United States. It also streamlines the New Start process to expedite project delivery and provides for core capacity project eligibility. MAP-21 took effect on October 1, 2012. The CR makes continuing appropriations for FY 2013 through March 27, 2013 at approximately one half of the FY 2012 funding levels. The CR specifies that appropriations are provided for continuing projects or activities for which funding was available in that fiscal year, except as provided in section 154 of the CR. In section 154 of the CR, Congress updated the appropriations language for FTA's formula programs providing an obligation limitation and liquidating authority to reflect changes to FTA's formula programs authorized in MAP-21. Section 154 of the CR allows FTA to administer FY 2013 funds for formula grant programs according to the terms and conditions established under MAP-21. Current funding availability for each program is identified in section IV of this notice and in Table 1 located on FTA's FY 2013 Apportionment Web page. Funding under the CR is not available for programs that were repealed by MAP-21 or for the new Transit Oriented Development (TOD) discretionary program, which was authorized by MAP-21 but not identified in section 154 of the CR. B. Oversight Takedown MAP-21 modifies section 5338(i) 1 to provide for the following oversight takedowns of FTA programs: 0.5 percent of Metropolitan and Statewide Planning funds, 0.75 percent of Urbanized Area Formula funds, 1 percent of Fixed Guideway Capital Investment funds, 0.5 percent of Formula Grants for the Enhanced Mobility of Seniors and Individuals with Disabilities, 0.5 percent of Formula Grants for Rural Areas, 0.75 percent of High Intensity Fixed Guideway State of Good Repair Formula funds, and 1 percent of Capital and Preventive Maintenance Projects for Washington Metropolitan Area Transit Authority funds. The funds are used to provide necessary oversight activities, such as oversight of the construction of any major capital project receiving Federal transit assistance; to conduct State Safety Oversight, drug and alcohol, civil rights, procurement systems, management, planning certification, and financial reviews and audits, as well as evaluations and analyses of grantee-specific problems and issues; and to provide technical assistance to correct deficiencies identified in compliance reviews and audits. 1 All references to “section” herein refer to sections of Chapter 53 of Title 49 of the United States Code, unless otherwise specifically stated. C. Previously Authorized Funding FYs 2005 through 2012 funds that remain unobligated and for which the program has been repealed or its activities consolidated with other programs under Chapter 53, will continue to be subject to the program and eligibility requirements that existed prior to the enactment of MAP-21 and to new cross-cutting requirements found in section III.D. of this notice. These programs are as follows: • Section 5307 Urbanized Area Formula Grant Funds • Section 5309(b)(2) Fixed Guideway Modernization Formula Program • Section 5309(b)(3) Bus, Bus-Related Equipment and Bus Facilities Discretionary Grants • Section 5309(m)(6)(B) Alaska-Hawaii Ferryboats • Section 5309(m)(6)(C) Denali Commission • Section 5309(m)(7)(A) Bus and Bus Facility Grants • Section 5309(m)(7)(B) Fuel Cell Program • Section 5309(m)(7)(C) Projects Not In Urbanized Areas • Section 5309(m)(7)(D) Intermodal Terminals • Section 5310 Formula Grants for Special Needs of Elderly Individuals and Individuals with Disabilities • Section 5311 Formula Grants for Other Than Urbanized Areas • Section 5312 Research, Development, Demonstration, and Deployment Projects • Section 5314 National Research Programs • Section 5316 Job Access and Reverse Commute Formula Grants • Section 5317 New Freedom Program • Section 5320 Paul S. Sarbanes Transit in the Parks Program • Section 5339 Alternatives Analysis Program • Section 3038 of TEA-21, as amended by SAFETEA-LU, Over-the-Road Bus Program For programs that are continued under MAP-21, the provisions of MAP-21 now apply to all unobligated funds from FY 2012 and prior, as well as to FY 2013 funds. These programs are: • Section 5305 Planning Programs • Section 5309 Fixed Guideway Capital Investment Grants (formerly Capital Investment Program) All references in this notice to “section” refer to Chapter 53 of Title 49 of the U.S. Code, unless otherwise specified. III. MAP-21 and FY 2013 Appropriations: Highlights of Changes MAP-21 furthers several important goals of the Department of Transportation, including safety, state of good repair, performance, and program efficiency. MAP-21 provides FTA significant new authority to strengthen the safety of public transportation systems throughout the United States. The Act also puts new emphasis on restoring and replacing the Nation's aging public transportation infrastructure by establishing a new State of Good Repair formula program and new asset management requirements. In addition, it aligns Federal funding with key goals and tracks progress towards these goals. Finally, MAP-21 improves the efficiency of administering grant programs by consolidating several programs and streamlining the fixed guideway capital investment grant program. A. Focus Areas 1. Safety Authority MAP-21 provides FTA significant new authority to strengthen the safety of public transportation systems throughout the United States by granting FTA the authority to establish and enforce a new comprehensive framework to oversee the safety of public transportation. Under MAP-21, FTA has enforcement authority to issue directives; require more frequent oversight of transit systems; impose more frequent reporting requirements; and require that formula grant funds be spent to correct safety deficiencies before funds are spent on other projects. FTA will implement the new law in consultation with the transit community and the U.S. Department of Transportation's (DOT) Transit Rail Advisory Committee for Safety (TRACS), the latter of which has been working since September of 2010 to help guide this effort. Following the promulgation of a rule, recipients of FTA funding will be required to have a public transportation agency safety plan in place in order to obligate any grant funds available under Chapter 53. Additional information on this new authority and the requirements under section 5329 can be found in section IV.O. of this notice. 2. State of Good Repair and Asset Management MAP-21 places greater emphasis on restoring and replacing aging transportation infrastructure by establishing new asset management requirements as well as a new State of Good Repair formula program. Section 5326 as amended by MAP-21, requires FTA to define the term “state of good repair” and create objective standards for measuring the condition of capital assets, including equipment, rolling stock, infrastructure, and facilities. Subsequent to FTA defining this term through a rulemaking, all FTA recipients will be required to set performance targets based on that definition, and report on progress towards meeting those targets. These measures and targets must be incorporated into metropolitan and statewide transportation plans and transportation improvement programs (TIPs). Also subsequent to a final rule defining state of good repair, all FTA recipients and their subrecipients will be required to develop transit asset management plans. Recipients of FTA formula funding also will be required to report asset inventory and condition information to FTA's National Transit Database (NTD). FTA will support this effort through technical assistance, including asset management decision support tools that allow recipients to estimate their capital investment needs over time and assist with asset investment prioritization. MAP-21 also establishes a new grant program to maintain public transportation systems in a state of good repair. This program, set forth in section 5337, replaces the fixed guideway modernization program (formerly authorized in section 5309). Funding under this program is limited to fixed guideway systems (including rail, bus rapid transit, and passenger ferries) and high intensity bus (buses operating in high occupancy vehicle (HOV) lanes.) Please see section IV.B. of this notice for more information about this new program. 3. Streamlining and Program Efficiency i. Fixed Guideway Capital Investment Grants Program (49 U.S.C 5309)—(New and Small Starts) MAP-21 modified the Capital Investment Program by expanding the eligibility to Core Capacity Improvement projects and streamlining the process. Similar to SAFETEA-LU, New Starts projects are defined as projects with a total capital cost of $250 million or greater or that are seeking $75 million or more in section 5309 funding. Eligible projects are new fixed-guideway systems, such as rapid rail (heavy rail), commuter rail, light rail, hybrid rail, trolleybus (using overhead catenary), cable car, passenger ferries, and bus rapid transit, or an extension of any of these systems. Also similar to SAFETEA-LU, Small Starts projects are defined as projects with a total capital cost less than $250 million and that are seeking less than $75 million in section 5309 funding. Eligible purposes for the Small Starts program are those mentioned for the New Starts program, as well as corridor-based bus systems that do not operate on a separated fixed guideway but include features that emulate the services provided by rail fixed guideway including defined stations, traffic signal priority for public transit vehicles, and short headway bi-directional services for a substantial part of weekdays and weekend days. MAP-21 also makes Core Capacity Improvement projects eligible for section 5309 funding. These are substantial, corridor-based investments in existing fixed guideway systems that are at capacity today or will be in five years. A Core Capacity Improvement project must increase the capacity of the existing fixed guideway system in the corridor by at least 10 percent. MAP-21 reduces the number of steps in the process for projects pursuing capital investment program funding. For New Starts and Core Capacity Improvement projects, the steps in the process now consist of project development, engineering, and construction. For Small Starts projects the steps in the process consist of project development and construction. Alternatives Analysis no longer is required. FTA must evaluate and rate projects seeking section 5309 funding according to statutorily defined criteria at various steps in the process. FTA will implement changes under MAP-21 to improve the efficiency of the New and Small Starts process and implement the new Core Capacity Improvement process through rule-making and future policy guidance, which will be developed through a notice and comment process. ii. Pilot Program for Expedited Project Delivery MAP-21 requires FTA to develop a pilot program for expedited project delivery. Eligible projects will be new fixed guideway capital projects or core capacity improvement projects as defined under section 5309 that have not yet received a full funding grant agreement. Three projects will be selected for the pilot program, and must demonstrate innovative project development and delivery methods or innovative financing arrangements that can expedite project delivery. At least one of the three projects selected must be an eligible project requesting more than $100 million in section 5309 funding and another must be an eligible project requesting less than $100 million in section 5309 funding. Applicants to this program also must certify that their existing public transportation system is in a state of good repair. FTA will publish guidance in a future Federal Register notice describing the process for project sponsors to apply to FTA for consideration as a pilot project. The program itself includes no additional funding. 4. Formula Funding and MAP-21 Discretionary Programs Under MAP-21, several of FTA's programs were repealed, consolidated, or changed from a discretionary program to a formula-based program. The Bus and Bus Facilities capital program and most of the Tribal Transit funding now are provided by formulas specified by Congress. The shift to more formula programs provides steady and more predictable funding for transit investments. MAP-21, however, does authorize several discretionary grant programs. FTA is in the process of developing the criteria and program guidance for the following discretionary programs, which will be published in Notices of Funding Availability (NOFA). These programs include: i. Transit-Oriented Development Planning Pilot Program MAP-21 authorizes $10 million per year in FYs 2013 and 2014 for a new discretionary pilot program for transit-oriented development (TOD) planning grants. Eligible activities include comprehensive planning in corridors with new rail, bus rapid transit, or core capacity improvement projects. The comprehensive plans should seek to enhance economic development, ridership, and other goals; facilitate multimodal connectivity and accessibility; increase access to transit hubs for pedestrian and bicycle traffic; enable mixed-use development; identify infrastructure needs associated with the project; and include private sector participation. Grant funds are not currently available under the CR. For more information or questions on this program, please contact Beth Day at 202-366-5159 or Elizabeth.day@dot.gov. ii. Passenger Ferry Program In FYs 2013 and 2014, $30 million per year is set aside from the urbanized area formula program to support passenger ferry projects. Funding will be awarded on a competitive basis. FTA will publish more details on program purpose, eligible applicants and activities, and cost sharing or matching in a subsequent NOFA. For more information or questions on this program, please contact Vanessa Williams at (202) 366-4818 or vanessa.williams@dot.gov. iii. Tribal Transit Discretionary Program The Tribal Transit program continues to be a set-aside from the Rural Areas Formula program but now consists of a $25 million formula program and a $5 million discretionary grant program. The formula program is described in section IV of this notice. With the creation of a formula program specifically for tribal transit, FTA intends to evaluate, in consultation with the tribes, how the discretionary program can be used to augment the formula funding or “fill gaps.” FTA will develop the terms and conditions for the Tribal Transit program in consultation with tribal representatives and other interested stakeholders. More information regarding the consultation process will be made available in the upcoming FY 2012 Notice of Awards in the Federal Register for the FY 2012 Tribal Transit discretionary program. For more information or questions on this program, please contact Elan Flippin at (202) 366-2053 or elan.flippin@dot.gov. iv. Innovative Workforce Development Program Along with other Human Resources and Training authorized in section 5322, MAP-21 authorizes an Innovative Public Transportation Workforce Development Competition (section 5322(b)). This competitive grant program will assist in the development of new and innovative workforce development activities in the transit industry. Funding for this and other human resource and training activities is authorized at $5 million annually. No funding is available for this program under the CR. As such, a NOFA will be developed subject to further appropriations with more details on program purpose, eligible applicants and activities, and cost sharing or matching once appropriations are provided. For more information or questions on this program, please contact Betty Jackson at (202) 366-1730 or betty.jackson@dot.gov. v. Low or No Emission Vehicle Deployment Program MAP-21 restructures the National Research Program and authorizes a new competitive grant program within this program for Low or No Emissions Vehicle Deployment (section 5312(d)(5)). The Low or No Emission Vehicle Deployment Program authorizes funding for a competitive grant program for nonattainment or maintenance areas for capital projects for low or no emission vehicles, facilities, and related equipment. Within the amount appropriated for this program, at least 65 percent must be spent for acquiring or leasing low or no emissions buses and 10 percent for low or no emissions bus facilities. No funding is available for this program under the CR. As such, a NOFA will be developed with additional details on program purpose, eligible applicants and activities, and cost sharing or matching once appropriations are provided. For more information, please contact Walter Kulyk at (202) 366-4995 or walter.kulyk@dot.gov. 5. Impacts of the 2010 Census for FTA's Fiscal Year 2013 Apportionments In FY 2013, FTA is incorporating the results of the 2010 Census into its formula apportionments, as required by law, and grant administration procedures for the first time. (Although FTA published two supplemental apportionments for FY 2012 after the 2010 Census Urbanized Areas (UZAs) were released, those apportionments continued to rely on the 2000 Census data). On March 27, 2012, the Bureau of the Census released a list of UZAs based on the results of the 2010 Decennial Census. The Census data shows that the number of UZAs increased from 465 in 2000 to 497 in 2010, and the total population residing in UZAs increased from 195 to 223 million, an increase of approximately 12 percent. The 2010 Census resulted in some UZAs crossing statutorily-mandated population thresholds that may change the amount of formula funds that those areas can receive and may also change the eligible uses of these funds. Five more UZAs now have populations of over 1 million people, one UZA lost population such that its population is now under 1 million, twenty-seven additional UZAs now have populations over 200,000 but below 1 million, thirty-six areas became newly qualified UZAs with populations of between 50,000 and 199,999, and four UZAs experienced population losses and are now areas under 50,000 in population and are no longer considered to be UZAs. In addition, the boundaries of many UZAs have shifted and resulted in former urban clusters (i.e., areas with populations under 50,000) and former non-urbanized areas to be now located within the boundaries of a UZA. FTA published on its Web site additional information on 2010 Census UZAs, including a fact sheet, a comparison of the 2000 and 2010 Census UZAs and their population, and a matrix of how 2010 Census changes will affect the eligible activities of and formula apportionments made to FTA grant recipients. A Program-by-Program analysis of the impacts of the Census data on FTA's formula programs also is posted on FTA's Web site. The Census Bureau has published reference maps of the 2010 urbanized areas at ftp://ftp2.census.gov/geo/maps/dc10map/UAUC_RefMap/ua/. B. Definitional Changes and New Definitions Section 20004 of MAP-21 modified section 5302 to provide new definitions and to modify existing definitions that clarify eligibility and requirements within FTA's programs. Unless otherwise stated, these definitions apply across all FTA programs. Several important definitional changes include: 1. Associated Transit Improvement The term “transit enhancements” was changed to “associated transit improvements.” An associated transit improvement is a project “designed to enhance public transportation service or use and that [is] physically or functionally related to transit facilities.” Eligible associated transit improvements include historic preservation, rehabilitation, and operation of historic public transportation buildings, structures, and facilities (including historic bus and railroad facilities) intended for use in public transportation service; bus shelters; landscaping and streetscaping, including benches, trash receptacles, and street lights; pedestrian access and walkways; bicycle access, including bicycle storage facilities and installing equipment for transporting bicycles on public transportation vehicles; signage; or enhanced access for persons with disabilities to public transportation. Congress struck “public art” and “transit connections to parks within the recipient's transit service area” from the list of eligible projects. While Federal transit funds are no longer available to support public art in transit facilities, art can be incorporated into facility design, landscaping, and historic preservation, for example through the use of floor or wall tiles that contain artistic designs or patterns, use of color, use of materials, lighting, and the overall design of a facility. In addition, eligible capital projects include incidental expenses related to acquisition or construction, including design costs. Therefore, the incidental costs of incorporating art into facilities and including an artist on a design team continue to be eligible expenses. 2. Bus Rapid Transit (BRT) System The term “bus rapid transit system” is now defined by statute, and this definition impacts how BRT systems qualify as fixed-guideway service for the Urbanized Area Formula Program and State of Good Repair Formula Program apportionments. The statutory definition is narrower than the definition used previously for purposes of the NTD. FTA used NTD data and other sources to determine which BRT systems qualify under the new statutory definition. FTA will issue a future Federal Register Notice to update the reporting guidance in the NTD Reporting Manual. As defined by section 5302, a “bus rapid transit system” means a bus system in which the majority of each line operates in a separated, dedicated, right-of-way for transit during peak periods and includes features that emulate the services provided by rail transit, including—defined stations; traffic signal priority; short headways for a substantial part of weekdays and weekend days; and any other features the Secretary may determine are necessary to produce high-quality transit services that emulate the services provided by rail transit. This definition means that a BRT system may include a mixture of both exclusive guideway and non-dedicated guideway with traffic signal priority, so long as the exclusive guideway (during peak periods) constitutes a “majority of the line” and so long as the other features emulating rail transit are present. All BRT systems meeting this definition are classified as fixed-guideway (see below) for purposes of the Urbanized Area Formula Program and State of Good Repair Formula Program apportionments. Readers should be careful not to confuse the definition of “bus rapid transit system” under section 5302 with the different types of bus rapid transit projects defined by section 5309, the statute that authorizes the New Starts and Small Starts programs. Under section 5309 there are definitions for both a “fixed guideway bus rapid transit project” and a “corridor-based bus rapid transit project” which set limitations for the types of BRT projects that may be eligible to compete for discretionary New Starts or Small Starts funds. 3. Commuter Highway Vehicle or Vanpool Vehicle This term is a new definition in Chapter 53 and is found in section 5323(i). A Commuter Highway Vehicle or Vanpool Vehicle is defined as any vehicle seating at least 6 adults (not including the driver); and at least 80 percent of the mileage use of which can be reasonably expected to be for the purposes of transporting commuters in connection with travel between their residences and their place of employment. 4. Disability The definition of “disability” was amended so that it has the same meaning as in the Americans with Disabilities Act (ADA), 42 U.S.C. 12101, et seq. However, the definition in section 5302 does not apply to the half-fare provision in section 5307(c)(1)(D). The half-fare provision continues to apply to seniors, persons with Medicare cards, and persons who “because of illness, injury, age, congenital malfunction, or other incapacity or temporary or permanent disability (including an individual who is a wheelchair user or has semi-ambulatory capability), cannot use a public transportation service or a public transportation facility effectively without special facilities, planning, or design.” 5. Fixed Guideway The definition of “fixed guideway” was amended to remove high occupancy vehicle lanes, although bus service operating in high occupancy vehicle lanes remains eligible for certain funds under the State of Good Repair Formula Program apportionment. The new definition of fixed guideway includes any facility for the exclusive use of transit vehicles, as well as facilities for rail, using a fixed catenary system (e.g. trolleybus service), for a passenger ferry system or for a bus rapid transit system (see new definition above). 6. Job Access and Reverse Commute Project The SAFETEA-LU Job Access and Reverse Commute (JARC) Program, (section 5316), was repealed by MAP-21; however, job access and reverse commute projects are eligible under the sections 5307 and 5311 programs. A definition for “job access and reverse commute project” was added to section 5302 as follows: “a transportation project to finance planning, capital, and operating costs that support the development and maintenance of transportation services designed to transport welfare recipients and eligible low-income individuals to and from jobs and activities related to their employment, including transportation projects that facilitate the provision of public transportation services from urbanized areas and rural areas to suburban employment locations.” Please see sections IV.C. and F. of this notice for additional information. 7. Low-Income Individual The term is defined as, “an individual whose family income is at or below 150 percent of the poverty line, as defined in section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)), including any revision required by that section, for a family of the size involved.” The formulas for funding apportionment in sections 5307 and 5311 now include consideration of the number of low-income individuals in a rural or urbanized area for part of the apportionment. However, this definition does not apply to the formula for public transportation on Indian reservations, which defines a low-income individual as an individual whose family income is at or below 100 percent of the poverty line. 8. Private Provider of Public Transportation by Vanpool This term is a new definition in Chapter 53 and is found in section 5323(i). A private provider of public transportation by vanpool is defined as a private entity providing vanpool services in the service area of a recipient using a commuter highway vehicle or a vanpool vehicle. Under MAP-21 and as described in section D of this notice, “Cross-Cutting Programmatic Requirements,” there is a new allowance for local match related to private vanpool providers. 9. Public Transportation Congress amended the definition of “public transportation” to specify that public transportation is regular, continuing, shared-ride, surface transportation service that is “open to the general public or open to a segment of the general public defined by age, disability, or low income.” Public transportation does not include Amtrak service, intercity bus service, charter bus service, school bus service, sightseeing service, courtesy shuttle service for patrons of one or more specific establishments; or intra-terminal or intra-facility shuttle services. 10. Regional Transportation Planning Organization This term is a new definition for Chapter 53, and is found in section 5303, Metropolitan Transportation Planning. A “regional transportation planning organization” is “a policy board of an organization” that a State may establish and designate under section 5304(l) “to enhance the planning, coordination, and implementation of statewide strategic long-range transportation plans and transportation improvement programs, with an emphasis on addressing the needs of nonmetropolitan areas of the State.” Section 5304(l)(5) further provides that, “if a State chooses not to establish or designate a regional transportation planning organization, the State shall consult with affected nonmetropolitan local officials to determine projects that may be of regional significance.” 11. Senior This is a new term to Chapter 53, and means an individual who is 65 years of age or older. The term is used in section 5310, Enhanced Mobility for Seniors and Individuals with Disabilities. C. Repealed Programs in FTA's Authorization MAP-21 focuses on improving the efficiency of grant program operations by consolidating certain programs and repealing other programs. Several of the activities eligible under repealed programs can be found in programs continued or created under MAP-21. The following programs expired on September 30, 2012 and no new funding is authorized beyond fiscal year 2012. However, unobligated funds appropriated or authorized in FY 2012 and prior years remain available for obligation (for the established period of availability when appropriated or allocated) and expenditure, and follow program-specific requirements established under SAFETEA-LU and prior authorizations. In addition, there are new cross-cutting requirements under MAP-21 found in section III.D of this notice that apply to all grants after October 1, 2012. 1. Clean Fuels Grant Program (49 U.S.C. 5308) The Clean Fuels Grant Program was a discretionary program and the final FY 2012 allocations were announced on September 14, 2012 in response to the NOFA published February 7, 2012 for sections 5308 and 5309 bus funds. Unobligated discretionary allocations (found in Table 7 on FTA's FY 2013 Apportionment Web site) may be obligated through the period of availability, following the SAFETEA-LU requirements. 2. Fixed Guideway Modernization (49 U.S.C. 5309(b)(2)) The Fixed Guideway Modernization Program was a formula program, and the funds for FY 2012 and prior years have been previously apportioned. Unobligated carryover balances for this program may be obligated through the period of availability, following the SAFETEA-LU requirements. Under MAP-21, elements of this program have been replaced with the State of Good Repair formula program (section 5337). 3. Bus and Bus Facilities Program (49 U.S.C. 5309(b)(3)) The discretionary Bus and Bus Facilities Program provided funds for capital bus and bus facility grants in support of the Department's State of Good Repair, Bus Livability, Veterans Transportation and Community Living, and Clean Fuels initiatives. In addition, SAFETEA-LU allocated funds under this program for Ferry Boat Systems, Fuel Cell Bus, and the Bus Testing program. FY 2012 Bus and Bus Facilities discretionary funds have been allocated through the FY 2012 Veteran's and Community Living Initiative (VTCLI), State of Good Repair, and Bus and Bus Livability discretionary competitions. FY 2012 and prior year allocations remain available for the period of availability and must be used for the purpose selected. Prior year allocations for Ferry Boat Systems, Fuel Cell Bus, and Bus Testing (found in Table 8 on FTA's FY 2013 Apportionment Web page) may be obligated through the period of availability, following the SAFETEA-LU requirements. Under MAP-21, elements of this program have been replaced with the Bus and Bus Facilities formula program (section 5339). 4. Job Access and Reverse Commute (JARC) Program (49 U.S.C. 5316) The formula JARC Program funds for FY 2012 and prior years under SAFETEA-LU have been apportioned. Unobligated carryover balances for the JARC program may be obligated through the period of availability, but must follow the SAFETEA-LU requirements. For example, section 5316 JARC projects must still be derived from a human service public transportation coordinated plan and must also be selected through an area-wide or statewide competitive selection process by the designated recipient. Under MAP-21, activities that were funded under the section 5316 JARC program are eligible under sections 5307 Urbanized Area Formula Grants, and 5311 Formula Grants for Rural Areas. Please see section IV.C. and F. of this notice for additional information. 5. New Freedom Program (49 U.S.C. 5317) The formula New Freedom Program funds for FY 2012 and prior years under SAFETEA-LU have been apportioned. Unobligated carryover balances for the New Freedom program funds may be obligated through the period of availability, but must follow the SAFETEA-LU rules and requirements. For example, section 5317 New Freedom projects must still be derived from a locally developed, coordinated public transit-human services transportation plan and must also be selected through an area-wide or statewide competitive selection process by the designated recipient. Under MAP-21, the types of activities that were funded under the section 5317 New Freedom program are now eligible under section 5310, Formula Grants for the Enhanced Mobility of Seniors and Individuals with Disabilities. Please see section IV.E. of this notice for additional information. 6. Paul S. Sarbanes Transit in Parks Program (49 U.S.C. 5320) FTA published a notice of funding availability on August 28, 2012 for the final allocation of program funding, which will be announced in fall 2012. Under MAP-21, public transportation investments serving national parks and other Federal lands remain eligible under the Federal Lands Transportation Program and the Federal Lands Access Program administered by the Federal Highway Administration (FHWA). Interested recipients should visit the FHWA Web page ( http://www.fhwa.dot.gov ) for additional information on these programs. 7. Alternatives Analysis Program (49 U.S.C. 5339) FTA issued a notice of funding availability for FY 2012 funds on March 12, 2012. However, MAP-21 repealed the section 5309 requirement that Major Capital Investment projects must be based on the results of an alternatives analysis, eliminating the principal statutory requirement associated with section 5339 Alternatives Analysis Program grants. Therefore, the use of the FY 2012 Alternatives Analysis Program funds will be determined at a later date. Unobligated FY 2011 and prior year allocations remain available for the period of availability and must be used for the purpose selected. Unobligated discretionary allocations are listed in Table 16 on FTA's FY 2013 Apportionment Web page. 8. Over-the-Road Bus Accessibility Program (Section 3038, Pub. L. 105-85) FTA issued a notice of funding availability on April 30, 2012. The final allocation of program funding is scheduled to be announced in fall 2012. Unobligated funds will be available for obligation until expended. D. Cross-cutting Programmatic Requirements and Changes The following cross-cutting requirements apply to all FTA programs as of October 1, 2012 unless otherwise noted. Additionally they also apply to programs that otherwise continue to follow SAFETEA-LU requirements. 1. Metropolitan and Statewide Planning The planning programs provide funding and procedural requirements to metropolitan areas and States for multimodal transportation planning that is cooperative, continuous, and comprehensive, resulting in long-range plans and short-range programs of projects of transportation investment priorities. $127 million is provided in FY 2013 and $129 million in FY 2014. The planning programs are jointly administered by FTA and FHWA, which provides additional funding. Under MAP-21, four significant changes are noted below. These requirements will not go into effect until FTA and FHWA complete a rulemaking process and issue further guidance. i. Establishes a performance-based planning process: MAP-21 requires Metropolitan Planning Organizations (MPOs) and States to establish performance targets that address forthcoming U.S. DOT-issued national performance measures that are based on the goals outlined in the legislation—safety, infrastructure condition, congestion reduction, system reliability, economic vitality, environmental sustainability, reduced project delivery delays, transit safety, and transit asset management. MPOs also must coordinate their performance targets, to the maximum extent practicable, with performance targets set by FTA grantees under the new performance measure requirements for safety and state of good repair. Transportation Improvement Programs (TIPs) must include a description of the anticipated progress toward achieving the performance targets resulting from implementation of the TIP. Five years after enactment of MAP-21, U.S. DOT is to provide Congress with a report evaluating the effectiveness of performance-based planning and assessing the technical capacity of MPOs in smaller areas to undertake performance-based planning. ii. Requires transit representation on MPO policy boards in large urbanized areas: Within two years, MPOs in urbanized areas designated as transportation management areas must include officials of public transit agencies that administer or operate major modes of transportation, as well as representatives of public transit operators, on MPO policy boards. iii. Supports optional scenario development: MPOs may undertake scenario development exercises in preparing the long-range transportation plan that consider alternative demographic growth, revenue options, and other factors. iv. Allows designation of Regional Transportation Planning Organizations: Regional transportation planning organizations may be designated, comprised of volunteer local government and transportation officials, to assist the State in addressing the needs of nonmetropolitan areas. Accordingly, “statewide planning” has been renamed “statewide and nonmetropolitan planning” to signify the important role of local officials in nonmetropolitan areas of States in the development of statewide plans and programs. 2. Environmental Review Process The National Environmental Policy Act (NEPA), 42 U.S.C. 4321, et seq., and other Federal environmental laws, regulations and executive orders, require that every project proposed for FTA funding assistance be subjected to some level of environmental review prior to its approval. MAP-21 has made changes to the environmental review process intended to accelerate the process for major projects and expand the lists of projects that are categorically excluded. MAP-21 environmental guidance and regulatory changes will be forthcoming. 3. Agency Safety Plans Section 5329 requires all FTA grantees to develop comprehensive agency safety plans that at a minimum include methods for identifying and evaluating safety risks, strategies to minimize exposure to hazards and unsafe conditions, and performance targets for safety performance criteria and state of good repair standards established in a forthcoming National Public Transportation Safety Plan. More information regarding state of good repair standards is included in the next paragraph, section IV.D.4.a., of this notice. The agency safety plan and any updates must be approved by the recipient's board of directors (or equivalent entity) and certified by FTA or a State. The agency safety plan also will need to identify an adequately trained safety officer who reports directly to the recipient's chief executive and provide a comprehensive staff training program for operations personnel and personnel directly responsible for safety. The staff training program must include completion of a safety training program and continuing safety education and training. Plans developed pursuant to Part 659 of title 49 Code of Federal Regulations and in effect on October 1, 2012, will remain in effect until the new agency safety plan requirements are in place. For recipients without a 49 CFR part 659 plan in place on October 1, 2012, this requirement will not apply as a condition for receiving assistance until one year after the effective date of a final rule. Rural sub-recipients of section 5311 funds may have their plans drafted and certified by a State. Similarly, FTA will issue a rule designating small urban systems receiving section 5307 funding that may have their agency safety plan drafted or certified by a State. 4. Transit Asset Management Provisions (and Asset Inventory and Condition Reporting) MAP-21 requires FTA to establish a national transit asset management system that includes: (1) A definition of state of good repair with performance measures; (2) a requirement that grantees develop transit asset management plans; (3) reporting requirements for asset inventory and condition assessments; (4) analytical process or decision support tools; and (5) technical assistance on asset management for grantees. i. State of Good Repair and Performance Measures Through a rulemaking, FTA will define “state of good repair” for transit systems. MAP-21 specifies that this definition will provide “objective standards for measuring the condition of capital assets * * * including equipment, rolling stock, infrastructure, and facilities.” At the conclusion of the rulemaking, grant recipients will be required to establish performance targets relative to the definition of state of good repair and to report these targets, and progress towards meeting them to FTA. The measures and targets also must be coordinated to the maximum extent practicable with the metropolitan and statewide transportation plans and transportation improvement programs (TIPs), as well as incorporated into recipients' agency safety plans. ii. Transit Asset Management (TAM) Plans MAP-21 requires that each recipient and subrecipient of FTA grants must establish a “transit asset management” (TAM) plan for its transit system. This requirement, however, will not be a condition for receiving FTA grant funds until FTA issues a rulemaking. Through a rulemaking, FTA will establish requirements for a capital asset inventory, condition assessments, decision support tools, and prioritization of capital investments, all of which must be included in a TAM. Once the TAM rulemaking is issued, grantees apportioned funds under the new State of Good Repair (SGR) Formula Program (section 5337) will be required to include all SGR-funded projects in their own TAM plan. iii. Reporting Requirements MAP-21 also established new requirements for reporting asset inventories and condition assessments to FTA at sections 5326(b)(3), 5335(a), and 5335(c). FTA grantees and sub-recipients should look for a future Federal Register Notice with proposed changes to the FTA's NTD Reporting Manual for more information and an opportunity to comment on FTA's implementation of these new statutory requirements. iv. Tools and Technical Assistance MAP-21 requires FTA to provide technical assistance on transit asset management, including a requirement for FTA to develop a “decision support tool” for use by transit systems in estimating capital investment needs and prioritizing capital expenditures. FTA has developed such a decision support tool, TERM-Lite, which is available online at: http://www.fta.dot.gov/TERM-Lite. This tool has been used by several transit agencies to assist them in estimating their investment needs, and will continue to be refined by FTA for this purpose. 5. Costs Incurred by Providers of Public Transportation by Vanpool MAP-21 amends section 5323(i) “Government Share of Costs for Certain Projects” to include a paragraph that permits FTA to allow a recipient to count, as part of their local match for a capital project, funds used to purchase vanpool vehicles by private providers of public vanpool (including funds from fare revenues above operating expenses but not including any funding from Federal, State or local government sources). For the costs to be eligible for a recipient's local share, the recipient and the provider must have entered into a legally binding agreement requiring the provider to use the rolling stock in the recipient's service area. 6. Revenue Bonds as Local Match (5307, 5309, 5337) Sections 5323(e)(1) and (2) allow recipients of Urbanized Area Formula Grants funds (section 5307), Fixed Guideway Capital Investment Grant funds (section 5309) and State of Good Repair Grant funds (section 5337) to use bond proceeds, secured by the revenues of a transit capital project, as local match for the project, provided that the grantee maintains a greater level of local transit investment in the subsequent three fiscal years (as demonstrated in the STIP) than in the current fiscal year and prior two fiscal years (three total). 7. Debt Service Reserve Section 5323(e)(3) allows recipients to be reimbursed from section 5309 Fixed Guideway Capital Investment Grant funds for deposits of bond proceeds in a debt service reserve. Reimbursements from the unobligated FY 2012 and prior year section 5309(b)(2) Fixed Guideway Modernization Formula Grant funds and section 5309(b)(3) Bus, Related Equipment and Bus Facilities Grant funds are eligible after September 30, 2012. However, these two programs are repealed as of October 1, 2012 and FY 2013 funds will not be available for reimbursements except as provided under section 5309 as amended by MAP-21. MAP-21 also repealed the Debt Service Reserve Pilot Program for recipients of section 5307 Urbanized Area Formula Grant funds. The establishment of a debt service reserve is included within the definition of a “capital project” in section 5302(3)(J), as amended. 8. Government's Share of Cost of Vehicles, Vehicle-Equipment, and Facilities for ADA and Clean Air Act Compliance An FTA grant used for acquiring vehicles to comply or maintain compliance with the ADA or the Clean Air Act, 42 U.S.C. 7401, et seq., now can cover 85 percent of net project costs. The previously used 83 percent Federal share (determined for administrative ease) is no longer necessary and should no longer be used. FTA grants for vehicle-related equipment or facilities needed to comply with or maintain compliance with the ADA or Clean Air Act remains at 90 percent of net project costs of the equipment of facilities attributable to compliance with the Act (the incremental cost). 9. Private Sector Participation MAP-21 requires FTA to provide technical assistance when requested by project sponsors and grantees on best practices and methods for using private providers of public transportation, and on how to use public-private partnerships for alternative project delivery of fixed guideway capital projects. MAP-21 also requires FTA to identify public transportation laws, regulations or practices that impede public-private partnerships or private investment in transit capital projects. FTA must also develop procedures through regulation to address these legal impediments, as well as procedures to protect the public interest and any public investment in public transportation capital projects that involves public-private partnerships or private investment. Additionally, FTA must develop guidance to promote greater transparency and public access to public-private partnership agreements, and guidance regarding how to best document compliance by recipients of Federal assistance with the requirements regarding private enterprise participation in public transportation and planning and transportation improvement programs under sections 5303(i)(6), 5306(a) and 5307(c). MAP-21 does not, however, allow FTA to waive any provision of Federal law, including labor protections or NEPA. 10. Bus Testing MAP-21 amended section 5318, the bus testing provision, to require FTA to issue a final rule by September 30, 2014, establishing a `pass/fail' standard for bus testing. Vehicles must meet performance standards for safety, structural integrity, reliability, performance (including braking performance), maintainability, emissions, noise, and fuel economy. Once FTA has issued the final rule, recipients may not use FTA funds to purchase a bus that has not received a passing test score. 11. Buy America Procurements made with FTA financial assistance continue to be subject to the Buy America requirements in section 5323(j) and FTA's implementing regulation at 49 CFR Part 661, which requires end products to be manufactured or assembled in the United States unless a waiver has been issued by FTA. Waiver requests undergo an elevated level of scrutiny by FTA as part of the consideration process. MAP-21 amended section 5323(j) to require FTA to place waiver determinations in an easily identifiable location on DOT's Web site, in addition to publishing the waiver determination in the Federal Register . In addition, FTA is required to submit a report to Congress every year that lists any waivers granted during the preceding year. 12. Corridor Preservation MAP-21 added a new provision in section 5323(q) that allows FTA, under certain conditions, to assist in the acquisition of right-of-way (ROW) before the completion of an environmental review for any transit project that will eventually be built on that ROW. FTA will publish draft guidance for public comment on the process for acquiring right-of-way. 13. Rail Car Procurements MAP-21 amended the rolling stock requirements of section 5325 by extending the length of option years under rail car procurements to seven years. A grant recipient using Federal funds to enter into a multiyear contract to buy rolling stock and replacement parts may have an option in that contract to buy additional rolling stock or replacement parts for up to five years after the date of the original contract for bus procurements and for up to seven years after the date of the original contract for rail procurements. While the change adds two extra years for rail car procurements, it also includes a new restriction that an option may not allow for significant changes or alterations to the rolling stock. Grant recipients should note that the additional two years only applies to rail car procurements. If a transit agency were to enter into a single contract for all rolling stock, such as one for replacement parts on existing inventory, then care would be needed to differentiate between bus and rail procurements in order to utilize the two additional years applicable only to rail procurements. If the differentiation is not clearly stated in the contract, the more restrictive five year limitation would apply to the entire contract. 14. Veterans Preference/Employment MAP-21 amended section 5323, adding subsection (k): “Recipients and subrecipients of Federal financial assistance under this chapter shall ensure that contractors working on a capital project funded using such assistance give a hiring preference, to the extent practicable, to veterans (as defined in section 2108 of title 5) who have the requisite skills and abilities to perform the construction work required under the contract. This subsection shall not be understood, construed or enforced in any manner that would require an employer to give a preference to any veteran over any equally qualified applicant who is a member of any racial or ethnic minority, female, an individual with a disability, or a former employee.” FTA will issue additional guidance for complying with this provision. Grantees also can expect the Master Agreement and required Federal procurement clauses to be updated to reflect this change. 15. Alcohol and Controlled Substance Testing Section 5331 provides that an entity is not eligible for financial assistance under sections 5307, 5309, or 5311 if the entity is required to establish a program for alcohol and controlled substances testing and does not establish such a program. MAP-21 amended section 5331 to also allow FTA to withhold funds from an entity that is not in compliance with the regulations, in an amount FTA considers appropriate. E. Title 23 (Federal-Aid Highway Programs) Funds Eligible for Transit Purposes MAP-21 continues the provisions begun under ISTEA and continued through TEA-21 and SAFETEA-LU wherein certain program funds under the title 23 are “flexible” and eligible for Title 49, Chapter 53 purposes. 1. Surface Transportation Program (23 U.S.C. 133) (STP) and Transportation Alternatives Program (23 U.S.C. 101) (TAP) The Surface Transportation Program (STP) authorized since ISTEA is continued under MAP-21. Pursuant to 23 U.S.C. 133, FHWA STP funds are eligible for a variety of highway-related activities and are also available to cover the capital cost of any public transportation projects eligible for assistance under chapter 53, which may include vehicles and facilities (publicly or privately owned) that are used to provide intercity passenger bus service. In addition, STP funds are available for surface transportation planning projects as well as activities under the newly authorized Transportation Alternatives Program (TAP), at 23 U.S.C. 101. The TAP replaces the funding from pre-MAP-21 programs including Transportation Enhancements, Recreational Trails, and Safe Routes to School with a single funding source. TAP funds may be used to carry out a part of a program or project, or used to carry out an independent program or project related to surface transportation. Eligible activities are broadly defined and with respect to transit include construction, planning and design of infrastructure-related projects and systems that will provide safe routes for non-drivers, including children, older adults and individuals with disabilities to access daily needs, and historic preservation and rehabilitation of historic transportation facilities. 2. Congestion Mitigation and Air Quality Improvement Program (23 U.S.C. 149) (CMAQ) The CMAQ program, at 23 U.S.C. 149, continues to provide a flexible funding source to State and local governments for transportation projects and programs to help meet the requirements of the Clean Air Act. Funding is available to reduce congestion and improve air quality for areas that do not meet the National Ambient Air Quality Standards (NAAQS) for ozone, carbon monoxide, or particulate matter—nonattainment areas—and for areas that were out of compliance but have now met the standards—maintenance areas. Transit investments, including transit vehicle acquisitions and construction of new facilities or improvements to facilities that increase transit capacity are eligible for CMAQ funds. The Department is reviewing MAP-21's treatment of operating assistance eligibilities under CMAQ, and an interpretation of the language will be issued in the future. 3. National Highway Performance Program (23 U.S.C. 119) (NHPP) MAP-21 enacted the National Highway Performance Program (NHPP), at 23 U.S.C. 119, which allows funds to be used for the construction of a public transportation project eligible for assistance under chapter 53 if: (1) The project is in the same corridor as, and in proximity to, a fully access-controlled highway designated as part of the National Highway System; (2) the construction will reduce delays or produce travel time savings on such a highway as described in (1) and improve regional traffic flow; and (3) a cost-benefit analysis determines that the construction is more cost-effective than an improvement on such a highway as described in (1). 4. Transferring Title 23 Funds From FHWA to FTA MAP-21 changed little with respect to the transfer of highway funds to FTA for eligible transit projects to be administered under chapter 53 of title 49 or the transfer of transit funds to FHWA for eligible highway projects to be administered under title 23. Section 104 of title 23 U.S.C. preserves the option for FHWA to transfer funds to FTA for transit capital projects and eligible operating activities that have been designated as part of the metropolitan and statewide planning and programming process. The project must be included in an approved STIP before the funds can be transferred. The State DOT may request, by letter, that the FHWA Division Office transfer highway funds for a transit project. The letter should include a description of the project as contained in the STIP, the amount to be transferred, the apportionment year, State, urbanized area, Federal-aid apportionment category (i.e., STP, CMAQ, TAP, NHPP) or other funding source, and indication of the intended FTA formula program (i.e., Section 5307, 5310, or 5311). Once a written request for transfer is received (using FHWA transfer request form 1576), if, upon review, the FHWA Division Office concurs in the transfer, it provides written confirmation to the State DOT and FTA that the apportionment amount is available for transfer. The FHWA Division Office provides the transfer request to the FHWA Office of Budget which transfers the funds to FTA. FHWA funds transferred to FTA will be administered under one of the three FTA formula programs (i.e., Urbanized Area Formula (section 5307), Formula Grants for the Enhanced Mobility of Seniors and Individuals with Disabilities (section 5310), or Formula Grants for Rural Areas (section 5311)). Unobligated balances for High Priority projects under Section 1702 of SAFETEA-LU or Transportation Improvement projects under Section 1934 of SAFETEA-LU and other such funds for which Congress has identified a particular project that are transferred to FTA will be aligned with and administered through FTA's Urbanized Area Formula Grant Program (section 5307). Under 23 U.S.C. 104(f), FHWA funds transferred to FTA retain the same matching share that the funds would have if used for highway purposes and administered by FHWA. Transferred funds may be used for a capital transit purpose eligible under the FTA formula program to which they are transferred. MAP-21 revised the operating assistance eligibilities under CMAQ. Those changes are being reviewed and an interpretation of the MAP-21 provisions will be issued in the future. The FTA grantee's application for the project must specify the program in which the funds will be used, and the application must be prepared in accordance with the requirements and procedures governing that program. Upon review and approval of the grantee's application, FTA obligates funds for the project. In the event that the transferred funds are not obligated for the intended purpose within the period of availability of the formula program to which they were transferred, they become available to the State for any eligible capital transit project under the program to which they were transferred. 5. Matching Share for FHWA Transfers Pursuant to 23 U.S.C. 104(f)(1)(B), FHWA funds transferred to FTA retain the same matching share that the funds would have if used for highway purposes and administered by FHWA. For the STP, CMAQ, and TAP programs, this Federal share is generally 80 percent, subject to upward adjustment in sliding scale States as noted below. For a period of time under SAFETEA-LU, CMAQ funds were available at a 100 percent Federal share. Starting on October 1, 2012, the CMAQ Federal share generally will be 80 percent. There are a few instances in which a Federal share on funds transferred from FHWA can be higher than 80 percent. 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. Also, there may be instances where the applicable Federal share may be reduced to a lower Federal share than is generally applicable, such as under the NHPP where the Federal share must be reduced to a maximum of 65 percent if the State DOT does not develop and implement an asset management plan. Certain safety projects or projects that include an air quality or congestion relief component such as commuter carpooling and vanpooling projects using FHWA transfer funds administered by FTA may retain the same 100 percent Federal share; however, these projects are subject to a limitation for each State of an amount equal to 10 percent of the sums apportioned for programs under section 104 of title 23. The most recent guidance on transfers of FHWA funds as allowed under SAFETEA-LU is FHWA Memorandum, dated July 19, 2007, “Information Fund Transfers to Other Agencies and Among Title 23 Programs.” FHWA plans to revise its guidance to reflect MAP-21's changes to transferred funds. 6. Title 49/Chapter 53 Funds Eligible for Highway Purposes Funds available under chapter 53 for eligible Federal-aid highway projects under title 23 may be transferred to FHWA. However, MAP-21 repealed FTA's authority to transfer to FHWA Urbanized Area Formula Grant Funds (section 5307) for highway purposes. As described in section IV.H. of this notice, the newly established Appalachian Development Public Transportation Assistance program under section 5311(c)(2) permits transfers to FHWA under certain conditions. IV. Program-Specific Information A. Metropolitan Planning Program (49 U.S.C. 5305(d)) Section 5305(d) authorizes Federal funding to support a cooperative, continuous, and comprehensive planning program for transportation investment decision-making at the metropolitan area level. The specific requirements of metropolitan transportation planning are set forth in 49 U.S.C. 5303 and further explained in 23 CFR Part 450, as incorporated by reference in 49 CFR Part 613, Statewide Transportation Planning; Metropolitan Transportation Planning. State Departments of Transportation (DOTs) are direct recipients of funds allocated by FTA, which are then sub-allocated to Metropolitan Planning Organizations (MPOs), for planning activities that support the economic vitality of the metropolitan area. The metropolitan transportation planning process must establish a performance-based approach in which the MPO will develop specific performance targets that address transportation system performance measures (to be issued by U.S. DOT), where applicable, to use in tracking progress towards attaining critical outcomes. These performance targets will be established by MPO's in coordination with States and transit providers. MPOs will provide a system performance report that evaluates the progress of the MPO in meeting the performance targets in comparison with the system performance identified in prior reports. This funding must support work elements and activities resulting in balanced and comprehensive intermodal transportation planning for the movement of people and goods in the metropolitan area. Comprehensive transportation planning is not limited to transit planning or surface transportation planning, but also encompasses the relationships among land use and all transportation modes, without regard to the programmatic source of Federal assistance. Eligible work elements or activities include, but are not limited to studies relating to management, mobility management, planning, operations, capital requirements, and economic feasibility; evaluation of previously funded projects; peer reviews and exchanges of technical data, information, assistance, and related activities in support of planning and environmental analysis among MPOs and other transportation planners; work elements and related activities preliminary to and in preparation for constructing, acquiring, or improving the operation of facilities and equipment; development of coordinated public transit human services transportation plans. An exhaustive list of eligible work activities is provided in FTA Circular 8100.1C, Program Guidance for Metropolitan Planning and State Planning and Research Program Grants, dated September 1, 2008. For more about the Metropolitan Planning Program, contact Victor Austin, Office of Planning and Environment at (202) 366-2996 or victor.austin@dot.gov. 1. Authorized Amounts MAP-21 authorizes $126,900,000 in FY 2013 and $128,800,000 in FY 2014 to provide financial assistance for both the metropolitan and statewide planning needs under section 5305. Fiscal year 2013 2014 Funds authorized $126,900,000 $128,800,000 Metropolitan 104,971,680 106,543,360 Statewide 21,928,320 22,256,640 As specified in law and as shown above, 82.72 percent of the amounts authorized for section 5305 are allocated to the Metropolitan Planning Program and 17.28 percent to the Statewide Planning and Research program. 2. FY 2013 Funding Availability Under the continuing resolution, a total of $50,545,172 is available for the period October 1, 2012 through March 27, 2013 to the Metropolitan Planning Program (section 5305(d)) to support metropolitan transportation planning activities set forth in section 5303. The total amount apportioned for the Metropolitan Planning Program to States for MPOs' use in urbanized areas (UZAs) is $50,292,446 as shown in the table below, after the deduction for oversight (authorized by section 5338). Metropolitan Planning Program—FY 2013 (CR) Total appropriation $50,545,172 Oversight deductions −252,726 Total apportioned 50,292,446 States' apportionments for this program are displayed in Table 2. 3. Basis for Formula Apportionment MAP-21 did not change the funding formula. Of the amounts authorized in section 5305, 82.72 percent is made available to the Metropolitan Planning program. Eighty percent of the funds are apportioned on a statutory basis to the States based on the most recent decennial Census for each State's UZA population. The remaining 20 percent is provided to the States based on an FTA administrative formula to address planning needs in larger, more complex UZAs. The amount published for each State includes the supplemental allocation. 4. Requirements The State allocates Metropolitan Planning funds to MPOs in UZAs or portions thereof to provide funds for planning projects included in a one or two-year program of planning work activities (the Unified Planning Work Program, or UPWP) that includes multimodal systems planning activities spanning both highway and transit planning topics. Each State has either reaffirmed or developed, in consultation with their MPOs, an allocation formula among MPOs within the State, based on the 2010 Census. The allocation formula among MPOs in each State may be changed annually, but any change requires approval by the FTA regional office before grant approval. Program guidance for the Metropolitan Planning Program is found in FTA Circular 8100.1C, Program Guidance for Metropolitan Planning and State Planning and Research Program Grants, dated September 1, 2008. 5. Period of Availability The Metropolitan Planning program funds apportioned in this notice are available for obligation during FY 2013 plus three additional fiscal years. Accordingly, funds apportioned in FY 2013 must be obligated in grants by September 30, 2016. Any FY 2013 apportioned funds that remain unobligated at the close of business on September 30, 2016, will revert to FTA for reapportionment under the Metropolitan Planning program. B. State Planning and Research Program (49 U.S.C. 5305(e)) This program provides financial assistance to States for statewide transportation planning and other technical assistance activities, including supplementing the technical assistance program provided through the Metropolitan Planning program. The specific requirements of Statewide transportation planning are set forth in 49 U.S.C. 5304 and further explained in 23 CFR Part 450 as referenced in 49 CFR Part 613, Statewide Transportation Planning; Metropolitan Transportation Planning; Final Rule. This funding must support work elements and activities resulting in balanced and comprehensive intermodal transportation planning for the movement of people and goods. Comprehensive transportation planning is not limited to transit planning or surface transportation planning, but also encompasses the relationships among land use and all transportation modes, without regard to the programmatic source of Federal assistance. For more information, contact Victor Austin, Office of Planning and Environment at (202) 366-2996 or victor.austin@dot.gov. 1. Authorized Amounts MAP-21 authorizes $21,928,320 in FY 2013 and $22,256,240 in FY 2014 to provide financial assistance for statewide planning and other technical assistance activities under section 5305. As specified in law, this represents the 17.28 percent of the amounts authorized for section 5305 that are allocated to the Statewide Planning and Research program, as shown below. Fiscal year 2013 2014 Funds authorized $21,928,320 $22,256,240 2. FY 2013 Funding Availability Under the continuing resolution, a total of $10,558,760 is available for the period October 1, 2012 through March 27, 2013 to the State Planning and Research Program (section 5305(e)). Thus far, the total amount apportioned for the State Planning and Research Program (SPRP) is $10,505,966 as shown in the table below, after the deduction for oversight (authorized by section 5338). Statewide Planning Program—FY 2013 (CR) Total appropriation $10,558,760 Oversight deductions −52,794 Total apportioned 10,505,966 States' apportionments for this program are displayed in Table 2. 3. Basis for Formula Apportionment MAP-21 did not change the funding formula. Of the amount authorized in section 5305, 17.28 percent is allocated to the State Planning and Research program. FTA apportions funds to States by a statutory formula that is based on the most recent decennial Census data available, and the State's UZA population as compared to the UZA population of all States. 4. Requirements Funds are provided to States for Statewide transportation planning programs. These funds may be used for a variety of purposes such as planning, technical studies and assistance, demonstrations, and management training. In addition, a State may authorize a portion of these funds to be used to supplement Metropolitan Planning funds allocated by the State to its UZAs, as the State deems appropriate. Program guidance for the State Planning and Research program is found in FTA Circular 8100.1C, Program Guidance for Metropolitan Planning and State Planning and Research Program Grants, dated September 1, 2008. 5. Period of Availability The State Planning and Research program funds apportioned in this notice are available for obligation during FY 2013 plus three additional fiscal years. Accordingly, funds apportioned in FY 2013 must be obligated in grants by September 30, 2016. Any FY 2013 apportioned funds that remain unobligated at the close of business on September 30, 2016 will revert to FTA for reapportionment under the State Planning and Research program. C. Urbanized Area Formula Program (49 U.S.C. 5307) Section 5307 authorizes Federal assistance for capital, planning, job access and reverse commute projects, and, in some cases, operating assistance for public transportation in urbanized areas. An urbanized area (UZA) is an area with a population of 50,000 or more that has been defined and designated as such by the U.S. Census Bureau. FTA calculates an apportionment amount for each UZA based on statutory formulas. For UZAs with populations of 200,000 or more, FTA apportions funds directly to one or more Designated Recipients, which are local or statewide agencies appointed by the Governor in accordance with sections 5303 and 5304, to receive and allocate section 5307 funds to eligible public transportation projects in the UZA. For UZAs with populations between 50,000 and 200,000, FTA apportions funds directly to the Governor for allocation to those areas in the State. Eligible funding recipients are limited to Designated Recipients and other local government authorities, as defined under section 5302(4), that are authorized to apply by the Designated Recipient. Beginning with this FY 2013 apportionment, FTA is apportioning funds based on UZA designations and population counts from the 2010 Census. The transition from the 2000 Census to the 2010 Census may affect the program requirements and/or eligibilities that apply to recipients in certain areas. Recipients that are located in UZAs that fall under any of the following scenarios may be affected: (1) Existing UZAs that have increased in population from fewer than 200,000 residents to more than 200,000; (2) New UZAs in areas that were formerly under 50,000 in population; (3) Formerly rural areas that are now part of a geographically-enlarged UZA; (4) Previous UZAs that have fallen below 50,000 in population; and, (5) UZAs that have grown or merged with other UZAs to include areas in multiple States. Public transit providers in areas that are affected by these changes are encouraged to work closely with the FTA Regional Office to identify how these changes may apply to their agencies. In addition to the impacts of the 2010 Census, recipients should be aware of several program changes established by MAP-21. Changes include a new provision allowing operating assistance for transit agencies in UZAs over 200,000 in population that operate a maximum of 100 buses in fixed route service during peak service hours, the eligibility of job access and reverse commute projects, changes in the definition of “capital project,” expanded eligibility for sources of local match, and the replacement of “transit enhancements” with the “associated transit improvements” category. Changes to the Urbanized Area Formula Program under MAP-21 and the 2010 Census apply to funds apportioned for FY 2013, and are not retroactive to prior funding apportioned under previous authorization. FTA will revise Circular 9030.1D, Urbanized Area Formula Program: Program Guidance and Application Instructions, to incorporate any relevant changes. Until this revision is complete, the previous circular, as amended by this notice, remains a good guidance tool in most respects. For more information about the Urbanized Area Formula Program contact Adam Schildge, Office of Transit Programs, at (202) 366-0778 or adam.schildge@dot.gov. 1. Authorized Amounts MAP-21 authorizes $4,397,950,000 in FY 2013 and $4,458,650,000 in FY 2014 to provide financial assistance for urbanized areas under section 5307. Of the amount authorized and appropriated for section 5307 in each year, $30 million is set aside for a competitive discretionary passenger ferry grant program, 0.5 percent will be apportioned to eligible States for State Safety Oversight (SSO) Program grants, and 0.75 percent will be set aside for program oversight. Further information on the Passenger Ferry Discretionary Program is provided in section III.A.4.b of this notice. Further information on the 0.5 percent apportionment to States for the State Safety Oversight Program is provided in section IV.N. of this notice. Fiscal year 2013 2014 Funds authorized $4,397,950,000 $4,458,650,000 2. FY 2013 Funding Availability Under the continuing resolution, a total of $2,117,667,740 is available for the section 5307 program for the period October 1, 2012 through March 27, 2013. The total amount apportioned to urbanized areas is $2,290,545,383, which includes the addition of amounts apportioned to UZAs pursuant to the section 5340 Growing States and High Density States Formula factors. This amount excludes the set-aside for the Passenger Ferry Discretionary Program, apportionments under the State Safety Oversight Program, and oversight (authorized by section 5338), as shown in the table below. Urbanized Area Formula Program—FY 2013 (CR) Total appropriation $2,130,634,943 a Ferry discretionary program −14,445,372 State safety oversight program −10,588,340 Oversight deduction −15,882,508 Section 5340 funds added 213,793,863 Total apportioned 2,290,545,383 a Includes 1.5 percent set-aside for Small Transit Intensive Cities Formula. Table 3 displays the amounts apportioned under the Urbanized Area Formula Program. 3. Basis for Formula Apportionment MAP-21 made several changes to the formula for this program. Specifically, section 5336(h) now provides that 3.07 percent of section 5307 funds available for apportionment are allocated on the basis of low-income persons residing in urbanized areas, with 25 percent of these funds allocated to areas below 200,000 in population and the remaining 75 percent allocated to areas 200,000 and over in population. MAP-21 also increased the percentage of funds allocated on the basis of Small Transit Intensive Cities (STIC) factors from 1 to 1.5 percent. Finally, MAP-21 established a new 0.5 percent takedown for State Safety Oversight grant program. FTA apportions Urbanized Area Formula Program funds based on statutory formulas. Congress established four separate formulas that are used to apportion portions of the available funding: the section 5307 Urbanized Area Formula Program formula, the Small Transit Intensive Cities (STIC) formula, the Growing States and High Density States formula, and a formula based on low-income population. Additional information on these formulas is provided in the following subsections. Consistent with prior apportionment notices, Table 3 shows a total section 5307 apportionment for each UZA, which includes amounts apportioned under each of these formulas. Detailed information about the formulas is provided in Table 4. For technical assistance purposes, the UZAs that receive STIC funds are listed in Table 6. FTA will provide breakouts of the funding allocated to each UZA under these formulas upon request to the FTA regional office. i. Section 5307—Urbanized Area Formula For UZAs between 50,000 and 199,999 in population, the section 5307 formula is based on population and population density. For UZAs with populations of 200,000 and more, the formula is based on a combination of bus revenue vehicle miles, bus passenger miles, bus operating costs, fixed guideway vehicle revenue miles, and fixed guideway route miles, as well as population and population density. The Urbanized Area Formula is defined in 49 U.S.C. 5336. To calculate a UZA's FY 2013 apportionment, FTA used population and population density statistics from the 2010 Census and validated mileage and transit service data from transit providers' 2011 National Transit Database (NTD) Report Year (when applicable). Consistent with section 5336(b), FTA has included 22.27 percent of the fixed guideway directional route miles and vehicle revenue miles from eligible urbanized area transit systems, but which were attributable to rural areas outside of the urbanized areas from which the system receives funds. Data from public transportation subrecipients in the Rural Module of the NTD that were identified by FTA staff as having been located in rural areas following the 2000 Census, but are now located in urbanized areas over 200,000 in population following the 2010 Census, were also included in this apportionment, and were not included in the apportionment for the Rural Areas Formula Program. These systems will be identified in the supplementary data tables accompanying the apportionment data tables. This was not done for subrecipients now located in urbanized areas under 200,000 in population following the 2010 Census, data for these systems were included in the apportionment for the Rural Areas Formula Program. FTA has calculated dollar unit values for the formula factors used in the Urbanized Area Formula Program apportionment calculations. These values represent the amount of money each unit of a factor is worth in this year's apportionment. The unit values change each year, based on all of the data used to calculate the apportionments, as well as the amount appropriated by Congress for the apportionment. The dollar unit values for FY 2013 are displayed in Table 5. To replicate the basic formula component of a UZA's apportionment, multiply the dollar unit value by the appropriate formula factor (i.e., the population, population x population density), and when applicable, data from the NTD (i.e., route miles, vehicle revenue miles, passenger miles, and operating cost). ii. Small Transit Intensive Cities Formula Under the STIC formula, FTA apportions funds to UZAs under 200,000 in population that have public transportation service that operates at a level equal to or above the industry average for all UZAs with a population of at least 200,000, but not more than 999,999. STIC funds are apportioned on the basis of one or more of six performance categories: passenger miles traveled per vehicle revenue mile, passenger miles traveled per vehicle revenue hour, vehicle revenue miles per capita, vehicle revenue hours per capita, passenger miles traveled per capita, and passengers per capita. The data used to determine a UZA's eligibility under the STIC formula and to calculate the STIC apportionments was obtained from the NTD reports for the 2011 reporting year. Because performance data change with each year's NTD reports, the UZAs eligible for STIC funds and the amount each receives may vary each year. UZAs that received funding through the STIC formula for FY 2013 are listed in Table 6. iii. Section 5340—Growing States and High Density States Formula FTA also apportions funds to qualifying UZAs and States according to the section 5340 Growing States and High Density States formula, as shown in Table 3. Half of the funds appropriated for section 5340 are apportioned to Growing States and half to High Density States. For the period October 1, 2012 through March 27, 2013, FTA apportions $125,640,719 to UZAs in growing States and $125,640,719 to UZAs in High Density States. More information on this program and its formula is found in section IV.R. of this notice. iv. Low-Income Population New under MAP-21, the formula for this program includes a formula factor for low-income population. Section B.7. of this notice contains the new definition of low-income population. Of the amount authorized and appropriated for the Urbanized Area Formula Program in each year, 3.07 percent is apportioned on the basis of low income population. A total of $65,410,493 has been apportioned to UZAs based on this formula for FY 2013, as described below. As specified in statute, FTA apportions 75 percent of the available funds to UZAs with a population of 200,000 or more. Funds are apportioned based on the ratio of the number of low income individuals in each UZA to the total number of low income individuals in all urbanized areas of that size. FTA apportions the remainder of the funds (25 percent) to UZAs with populations of less than 200,000, according to an equivalent formula. The low income populations used for this calculation were based on the American Community Survey (ACS) data set for 2006-2010. This information is updated by the Census Bureau annually. 4. Requirements Program guidance for the Urbanized Area Formula Program is found in FTA Circular 9030.1D, Urbanized Area Formula Program: Program Guidance and Application Instructions, dated May 10, 2010, and is supplemented by additional information and changes provided in this notice and that may be posted to section 5307 web page. FTA is in the process of updating the program circular to incorporate changes resulting from MAP-21. Key program requirements and changes that apply to all programs are addressed in section III.D. of this notice, “Cross-Cutting Programmatic Requirements and Changes.” The following subsections outline several important program requirements and changes that apply specifically to the Urbanized Area Formula Program. i. Designated Recipients Under Census 2010 For UZAs with populations of 200,000 and above (large UZAs), FTA apportions funds to the Designated Recipient(s) that are selected by the State's Governor, responsible local officials, and publicly owned operators of public transportation to receive and apportion the amounts made available to a UZA by Congress and FTA. The Designated Recipient may be a State or regional authority if the authority is responsible under the laws of the State for a capital project and for financing and directly providing public transportation. Section 5307 further provides that the Designated Recipient, after consideration of comments and views of the public, prepares the final program of projects for the amounts available to a UZA of not less than 200,000 in population. To be selected as a Designated Recipient, an entity must be a public body with the legal capacity to perform all of the following responsibilities: a. Receive and dispense Federal funds for transit purposes, b. Submit projects to be included and considered in the annual elements of the Transportation Improvement Program through the Metropolitan Planning Organization, c. Submit grant applications to FTA, and d. Enter into formal grant agreements with FTA. For UZAs with a population of less than 200,000 (small UZAs), the Governor, or his or her designee, is the Designated Recipient. A single total Governor's apportionment amount for the Urbanized Area Formula, STIC, and Growing States and High Density States for all small UZAs in each State is shown in Table 3. The table also shows, for informational purposes, the apportionment amount that would be attributable by formula to each small UZA within the State. The Governor (or his or her designee) shall determine the sub-allocation of funds among the small UZAs and is not bound by the small UZA amounts published in this notice. The Governor's sub-allocation must be sent to the appropriate FTA Regional Office before grants are awarded. In FY 2013, FTA will apportion funds to new large UZAs for which a Designated Recipient has not yet been selected. These funds will become available for grants once FTA has received documentation of the selection of a Designated Recipient. ii. Process for Designation of Designated Recipients in Areas over 200,000 in Population Given the Census impacts to many urbanized areas, FTA developed specific guidance to assist areas with the process and required documentation for Designated Recipients in areas over 200,000. Specific impacted areas were notified in July 2012 by letter and additional guidance on this requirement can be found on FTA's Web site. ii. Designations and Documentation in Areas Under 200,000 in Population For urbanized areas greater than 50,000 but under 200,000 in population, the Governor of each State is the Designated Recipient. This means that the Governor receives and allocates funding for these urbanized areas through the “Governor's Apportionment,” which consists of the total amount of funding allocated to a State for all of its small urbanized areas. The Governor may designate another State agency to act as the Designated Recipient (e.g. the State DOT); however, the Governor or his designee cannot assign the rights and responsibilities of the Designated Recipient to regional or local funding recipients or to transit providers at the local or regional level. The Governor or his designee can, however, authorize local funding recipients or transit providers at the local or regional level to apply for grants directly to FTA as “Direct Recipients”. If the Governor designates another State agency to act as the Designated Recipient, such designation must be documented by letter from the Governor naming the Designated Recipient and by an opinion of counsel from the Designated Recipient certifying its legal capacity to perform the functions of a Designated Recipient. iv. Direct Recipients and Documentation Many of FTA's grantees are direct recipients, but not all grantees are designated recipients. A direct recipient is a public entity that is legally eligible under Federal transit law to apply for and receive grants directly from FTA. The amount of funds available to direct recipients is determined cooperatively by public transit providers, the MPO, and the designated recipient(s) for that UZA, in adherence with federal planning requirements and communicated to FTA by the designated recipient. FTA can only make grants to direct recipients after a split or suballocation letter is provided to the FTA Regional Office by the Designated Recipient. Additionally, when an applicant for federal funding is not the Designated Recipient, a supplemental agreement will be required. More on this requirement can be found in section V. B. “FY 2013 Grant Application Procedures” of this notice. The allocation of funding to a direct recipient in a small UZA is determined by the Governor or the Governor's designee, in accordance with local transit spending priorities and should be reflected in the planning process. The amount of funding available to a direct recipient in a large UZA is determined by the Designated Recipient for that UZA in accordance with the local MPO and federal planning requirements. v. Associated Transit Improvements Designated Recipients in UZAs with populations of 200,000 or more must certify that not less than one percent of the section 5307 funds apportioned to the UZA will be used for associated transit improvements, formerly known as transit enhancements. See section B “Definitional Changes or New Definitions” in this notice for the new definition of what is considered an associated transit improvement. In addition, Designated Recipients must submit an annual report listing projects carried out in the preceding year with these funds as part of the Federal fiscal year's final quarterly progress report in TEAM-Web. The report should include the following elements: (1) Grantee name; (2) UZA name and number; (3) FTA project number; (4) transit enhancement category; (5) brief description of enhancement and progress towards project implementation; (6) activity line item code from the approved budget; and (7) amount awarded by FTA for the project. The list of associated transit improvement categories and activity line item (ALI) codes may be found in the table of Scope and ALI codes on TEAM-Web, which can be accessed at http://FTATEAMWeb.fta.dot.gov. Under MAP-21, certain activities previously eligible as “transit enhancements” are no longer eligible for funding, unless otherwise eligible as capital or operating expenses under section 5307. Specifically, public art and transit connections to parks within a recipient's service area are no longer included as eligible project activities under this requirement. (Further information about the use of art in the design of a transit facility as a transit capital expense is noted in section III. B. of this notice.) Historic preservation projects may now only be for historic public transportation buildings, structures and facilities that are intended for use in public transportation service. It is the responsibility of the recipients in a UZA to identify associated transit improvement projects that will receive funding from the Urbanized Area Formula Program. The one percent minimum does not preclude more than one percent from being expended in a UZA for associated transit improvements. However, projects and project elements that are only eligible under this category—in particular, operating costs for historic facilities—may not exceed one percent of a UZA's annual apportionment. vi. Transit Security Projects MAP-21 continues the requirement that each recipient of Urbanized Area Formula funds must certify that it will expend at least one percent of the amount received each fiscal year on “public transportation security projects,” or that it has decided the expenditure for security projects is not necessary. For applicants not eligible to receive section 5307 funds for operating expenses, only capital security projects may be funded under this one percent requirement. The definition of eligible capital projects includes specific crime prevention and security activities, including: increased lighting in or adjacent to a public transportation system (including bus stops, subway stations, parking lots, and garages), increased camera surveillance of an area in or adjacent to that system, providing an emergency telephone line to contact law enforcement or security personnel in an area in or adjacent to that system, and any other project intended to increase the security and safety of an existing or planned public transportation system. The one percent may also include security expenditures included within other capital activities, and, where the recipient is eligible, operating assistance. Additional funding for transit security projects may be available from the Transportation Security Administration (TSA). For more information, visit the TSA Transit Security Grants web page at: http://www.tsa.gov/what_we_do/grants/programs/tsgp_tieri/2011/index.shtm . The grantee must provide information regarding its use of the one percent for security as part of each section 5307 grant application, using a special screen in TEAM-Web. If the grantee has certified that it is not necessary to expend one percent for security, the section 5307 grant application must include information to support that certification. FTA will not process an application for a section 5307 grant until the security information is complete. vii. FY 2013 Operating Assistance Recipients in urbanized areas under 200,000 in population may use Urbanized Area Formula Program funds for operating assistance at a 50 percent Federal share. There is no cap to the amount that can be used in these areas for operating assistance. Unless specifically authorized, recipients in urbanized areas of 200,000 or more in population are not permitted to use program funds for operating assistance. Under MAP-21, a special rule allows recipients in urbanized areas with populations of 200,000 or above and that operate 100 or fewer buses in fixed route service during peak hours, to receive a grant for operating assistance subject to a maximum amount per system as explained below: a. Public transportation systems that operate a minimum of 76 buses and a maximum of 100 buses in fixed route service during peak service hours may receive operating assistance in an amount not to exceed 50 percent of the share of the apportionment that is attributable to such systems within the urbanized area, as measured by vehicle revenue hours. b. Public transportation systems that operate 75 or fewer buses in fixed route service during peak service hours may receive operating assistance in an amount not to exceed 75 percent of the share of the apportionment that is attributable to such systems within the urbanized area, as measured by vehicle revenue hours. A list of eligible recipients and their maximum operating assistance amounts for FY 2013 is shown in Table 3-A. FTA identified the systems eligible to use this provision and their maximum amounts for FY 2013 using data from the NTD for reporting year 2011. Operating assistance requires a 50 percent local match. In accordance with section 5307(a)(2), FTA has calculated a fixed annual cap on operating assistance for each eligible agency that provides service in a large UZA. The cap is determined by dividing the UZA's apportionment by the total number of vehicle revenue hours reported from all public transportation operators and from all transit modes in the UZA, and then by multiplying this quotient by the number of bus vehicle revenue hours operated in the UZA by the eligible system. The result is the proportional share of the apportionment that is attributable to the qualifying system, as measured by vehicle revenue hours. This cap is calculated based on the FY 2013 apportionment for an eligible provider's UZA under the continuing resolution, and will be updated as additional funding is made available. Eligible systems operating in more than one UZA over 200,000 in population will receive separate operating caps from each UZA in which the system operates. If a recipient believes that this table does not accurately reflect the number of buses the system operates in fixed route service during peak service hours, the recipient may submit a supplementary report to the NTD, and should notify the FTA Office of Program Management that it is appealing this list for FY 2013. The supplementary NTD report must be based on service levels on or prior to October 1, 2012. FTA will determine whether a proposed adjustment is necessary based on evidence of a continuing change in maximum service levels. FTA will only accept supplementary reports through January 15, 2013 so it can validate the data and consider any changes prior to the expiration of the current continuing resolution. In addition, many expenses that accounting rules classify as operating costs are eligible as capital expenses in this program, including preventive maintenance, expenses (up to 10 percent of the amount apportioned) for providing non-fixed route paratransit transportation services in accordance with section 223 of the ADA, and mobility management expenses. viii. Job Access and Reverse Commute Projects Job access and reverse commute projects are eligible for funding under the Urbanized Area Formula Program. A job access and reverse commute project is defined as: “a transportation project to finance planning, capital and operating costs that support the development and maintenance of transportation services designed to transport welfare recipients and eligible low-income individuals to and from jobs and activities related to their employment, including transportation projects that facilitate the provision of public transportation services from urbanized areas and rural areas to suburban employment locations.” There is no set-aside or cap under MAP-21 for job access and reverse commute projects funded under this section. However, the projects must be for the “development and maintenance” of transportation services designed to transport welfare recipients and eligible low-income individuals to and from jobs and employment-related activities. FTA defines “development of transportation services” to mean new projects that were not in service on October 1, 2012. New job access and reverse commute projects may include the expansion or extension of an existing service, so long as the new service was designed to support the target population consistent with the definition above and the other planning requirements (described below) were met. Such projects are not required to be designed exclusively for these populations. “Maintenance of transportation services” is identified as the continuation of eligible job access and reverse commute projects that received funding under the section 5316 JARC Program, as amended by SAFETEA-LU, and which was repealed by MAP-21. Reverse commute projects are only eligible under this section if they are designed to transport welfare recipients and eligible low-income individuals to and from jobs and employment-related activities. However, as noted above, the services do not need to be exclusively for the target population. For FY 2013, any projects or project elements that were eligible under the section 5316 Job Access and Reverse Commute Program, authorized under SAFETEA-LU, will remain eligible, so long as they can be classified as development or maintenance, as described above and comply with the MAP-21 definition of a job access and reverse commute project. A list of these eligible projects elements can be found in FTA Circular 9050.1: The Job Access and Reverse Commute (JARC) Program Guidance and Application Instructions. FTA anticipates cancelling this circular and addressing project eligibility in a revised FTA Circular 9030.1 for the Urbanized Area Formula Program. Some of these types of projects may not continue to be eligible in the future. In order to receive funding for a job access and reverse commute project under this provision, the project must be identified by the MPO and Designated Recipient as a job access and reverse commute project in the Designated Recipient's annual Program of Projects, which must be developed in consultation with interested parties, published with the opportunity for comments, and subject to a public hearing. While the job access and reverse commute projects funded under this section do not have to be selected from a locally-developed, human service public transportation planning process (“coordinated planning process”), FTA encourages MPOs and section 5307 Designated Recipients to continue the coordinated planning process in identifying and developing projects for funding. FTA encourages MPOs and recipients to coordinate with the organizations previously designated as Designated Recipients for the SAFETEA-LU JARC program, and to identify and consider the funding needs of existing job access and reverse commute projects and services. Funds previously apportioned under section 5316 (JARC) that have not been obligated will remain available to the entity that was the Designated Recipient for those funds at the time of apportionment through the period of availability unless a new designation is received. These funds are subject to the requirements of SAFETEA-LU and cannot be combined in a grant in a section 5307 grant under MAP-21. ix. Sources of Local Match MAP-21 expands the categories of funds that can used as local match. These categories are included below and described in the section III.D. “Cross-Cutting Programmatic Requirements and Changes” of this notice. In most cases, the maximum Federal share of an Urbanized Area Formula Program grant is 80 percent of net project cost for a capital project and 50 percent of net project cost for operating assistance, unless the recipient indicates a lower federal share. The remainder of the net project cost (i.e., 20 percent and 50 percent, respectively) shall be provided from the following sources: a. Non-government sources other than revenues from providing public transportation services; b. Revenues derived from the sale of advertising and concessions; c. An undistributed cash surplus, a replacement or depreciation cash fund or reserve, or new capital; d. Amounts appropriated or otherwise made available to a department or agency of the Government (other than the Department of Transportation); e. Amounts received under a service agreement with a State or local social service agency or private social service organization; and f. Proceeds from the issuance of revenue bonds; g. Funds from Section 403(a)(5)(C)(vii) of the Social Security Act (42 U.S.C. 603(a)(5)(C)(vii)); h. Transportation Development Credits (formerly Toll Revenue Credits); and i. Any amounts expended by providers of public transportation by vanpool for the acquisition of rolling stock to be used in the recipient's service area, excluding any amounts the provider may have received in Federal, State or local government assistance for such acquisition, provided that the provider has a binding agreement with the public transportation agency to provide service in the relevant UZA. x. Urbanized Area Formula Funds Used for Highway Purposes Funds apportioned under the Urbanized Area Formula Program are no longer eligible for transfer to FHWA for highway projects. xi. Eligibility for Safety Certification Training Recipients of section 5307 funds are permitted to use not more than 0.5 percent of their formula funds under the Urbanized Area Formula Program to pay not more than eighty percent of the cost of participation for an employee who is directly responsible for safety oversight to participate in public transportation safety certification training. Safety certification training program requirements will be established in accordance with section 5329. 5. Period of Availability MAP-21 expanded the period of availability for section 5307 funds to six years (year of apportionment plus five additional years). The Urbanized Area Formula Program funds apportioned in this notice are available for obligation in FY 2013 plus five additional years. Accordingly, funds apportioned in FY 2013 must be obligated in grants by September 30, 2018. Any FY 2013 apportioned funds that remain unobligated at the close of business on September 30, 2018 will revert to FTA for reapportionment under the Urbanized Area Formula Program. 6. Other Program or Apportionment Related Information and Highlights State Safety Oversight Funding As mentioned above, under MAP-21 there is a 0.5 percent take-down from the section 5307 urbanized area program that will be apportioned to States for State Safety Oversight (SSO) program activities. These funds will be apportioned by formula to States with rail fixed guideway public transportation systems that are either operating or in the engineering or construction phase of development, and which are not subject to regulation by the Federal Railroad Administration (FRA) to develop or carry out State safety oversight programs. FTA is currently developing the formula by which these funds will be apportioned. By law, this formula must take into account fixed guideway route miles, fixed guideway vehicle revenue miles, and fixed guideway passenger miles on fixed guideway systems. Funds may be used for program operational and administrative expenses, including employee training activities. A twenty percent non-Federal match is required for these funds. The State's share of the cost may include in-kind contributions and may not include any funds received from or revenues earned by a public transportation agency. Vehicle Fuel and Electrical Propulsion Costs as Capital Maintenance for Section 5307 The FY 2013 CR does not continue the provision to permit FTA to treat fuel costs for vehicle operations, including utility costs for the propulsion of electrical vehicles, as a capital maintenance item for grants in FY 2013. As such, these expenses are considered operating expenses and require a 50 percent local match. NTD Reporting Section 5335 requires that each recipient or beneficiary under the section 5307 program submit an annual report to the NTD containing information on financial, operating, and asset condition information. Annual NTD reports should be full reports of all transit activities, regardless of funding source. For the 2012 Report Year, which lasts from October 2012 through July 2013, the reporting requirements apply to any recipient of a section 5307 grant obligation in 2011, any recipient of a section 5307 grant outlay in 2012, or any entity that continued to benefit in 2012 from capital assets purchased using Section 5307 grants. Also, grantees that received section 5307 grants in prior years, and which anticipate receiving section 5307 grants in future years, should also continue to report to the NTD. Recipients or beneficiaries of section 5307 grants that do not operate transit service, either directly or through a contract for purchased transportation services, are still required to report to the NTD on capital and planning expenditures, but have significantly reduced reporting requirements. Recipients or beneficiaries of Section 5307 grants that operate 30 or fewer vehicles in maximum service across all transit modes are also eligible for reduced, “Small Systems” reporting requirements. Recipients or beneficiaries making full annual reports to the NTD are also subject to monthly reporting requirements on service operations and safety incidents. MAP-21 also established new requirements for reporting asset inventories and condition assessments to FTA at section 5326(b)(3), 5335(a), and 5335(c). FTA grantees and sub-recipients should look for a future Federal Register Notice with proposed changes to the FTA's NTD Reporting Manual for more information and an opportunity to comment on FTA's implementation of these new statutory requirements. The NTD Reporting Manuals contains detailed reporting instructions and are posted on the NTD Web site, www.ntdprogram.gov. D. Fixed Guideway Capital Investment Program (49 U.S.C. 5309)—New and Small Starts and Core Capacity Improvements The Fixed Guideway Capital Investment Program provides funds for construction of new fixed guideway systems or extensions to existing fixed guideway systems and, as amended by MAP-21, projects that will expand the core capacity of existing fixed guideway corridor. Eligible projects are new fixed-guideway systems, such as rapid rail (heavy rail), commuter rail, light rail, hybrid rail, trolleybus (using overhead catenary), cable car, passenger ferries, and bus rapid transit, or an extension of any of these. The Small Starts program also includes corridor-based bus rapid transit systems that do not operate on a separate fixed guideway but include features that emulate the services provided by rail fixed guideway including defined stations, traffic signal priority for public transit vehicles, and short headway bi-directional services for a substantial part of weekdays and weekend days. The Core Capacity Improvement program provides funds for substantial, corridor-based investments in existing fixed guideway systems that are at capacity today or will be in five years. Core Capacity Improvement projects must increase the capacity of the existing fixed guideway system in the corridor by at least 10 percent. Projects become candidates for funding under this program by successfully completing steps in the process defined in section 5309 and obtaining a satisfactory rating under the statutorily-defined criteria. For New Starts and Core Capacity Improvement projects, the steps in the process include project development, engineering, and construction. For Small Starts projects the steps in the process include project development and construction. New Starts and Core Capacity Improvement projects receive construction funds from the program through a full funding grant agreement (FFGA) that defines the scope of the project and specifies the total multi-year Federal commitment to the project. Small Starts projects receive construction funds through a [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A2012-25152. Public record. Not legal advice.