# FTA Fiscal Year (FY) 2014 Apportionments, Allocations, and Program Information

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URL: https://www.frixlaw.com/law-library/documents/fr%3A2014-04759

## Record

- **Collection:** Federal Register
- **Document type:** Notice
- **Published:** March 10, 2014
- **Citation:** 79 FR 13462

## Text

DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
FTA Fiscal Year (FY) 2014 Apportionments, Allocations, and Program Information

AGENCY:

Federal Transit Administration (FTA), DOT.

ACTION:

Notice.

SUMMARY:

On January 17, 2014, President Obama signed the Consolidated Appropriations Act, 2014, (FY 2014 Appropriations) which provided a full fiscal year's funding for Federal Transit Assistance programs. Previous continuing resolutions had provided funds through January 18, 2014. The Federal Transit Administration (FTA) annually publishes one or more notices apportioning funds appropriated by law. This notice apportions and provides information on the FY 2014 funding available for the FTA assistance programs, and provides program guidance and requirements, and information on several program issues important in the current year. This notice also provides information on FTA's discretionary programs and forthcoming program guidance.

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. A list of FTA regional offices and contact information is available on the FTA Web site under the heading “Regional Offices” at
http://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.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Overview

II. FY 2014 Available Funding for FTA Programs

A. Funding Based on the Consolidated Appropriations Act, 2014

B. Oversight Takedown

C. FY 2014 Formula Apportionments; Data and Methodology

D. FY 2014 Discretionary Program Funding

III. FY 2014 Program Highlights and Changes

A. MAP-21 Implementation

B. FHWA Congestion Mitigation and Air Quality Funds for Operating Assistance

C. Transitioning to a New Electronic Grant Management System

D. Flood Insurance

E. New Common Rule

IV. FY 2014 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 Grant 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)(3))

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 (section 601 of Pub. L. 110-432)

V. FTA Policy and Procedures for FY 2014 Grants

A. Automatic Pre-Award Authority To Incur Project Costs

B. Letter of No Prejudice (LONP) Policy

C. FY 2014 Annual List of Certifications and Assurances

D. Civil Rights

E. FHWA Flex Funds and Consolidated Planning Grants

F. Grant Application Procedures

G. Grant Management

I. Overview

On October 1, 2012, the Moving Ahead for Progress in the 21st Century Act (MAP-21) (Pub. L. 112-141) authorized the Federal Transit Administration's (FTA) public transportation assistance programs for FYs 2013-2014. A notice announcing changes and implementation instructions in FTA programs in accordance with MAP-21 was published in the
Federal Register
on October 16, 2012. (See 77 FR 63669). On January 17, 2014, the FY 2014 Appropriations Act (Pub. L. 113-76) was signed into law, providing a full fiscal year of funding for FTA's programs as authorized by MAP-21. Prior to January 17, 2014, Congress provided partial funding for FY 2014 through continuing resolutions (Pub. L. 113-46 and Pub. L. 113-73). This notice apportions formula funds based on the Appropriations Act, 2014. In addition, this notice provides funding information for FTA's FY 2014 discretionary programs, including the FY 2014 Capital Investment Grant (CIG) Program allocations and prior year discretionary programs and their unobligated balances. Finally, this notice provides program information, including the status of MAP-21 implementation for many of the grant programs.

Consistent with the budget authority provided in MAP-21, for FTA's formula programs, the FY 2014 Appropriations provides an obligation limitation of $8.595 billion in FY 2014. The FY 2014 Appropriations also provides $150 million in FY 2014 for grants to the Washington Metropolitan Area Transportation Authority; $1.943 billion for the Capital Investment Grant Program; and $48 million for the Research, Technical Assistance and Training Programs.

II. FY 2014 Available Funding for FTA Programs

A. Funding Based on the Consolidated Appropriations Act, 2014

The FY 2014 Appropriations Act provides $ 10.841 billion for FTA programs and administrative expenses in FY 2014, of which $8.595 billion is derived from the Mass Transit Account of the Highway Trust Fund and is available for formula programs. This is in addition to over $7 billion in formula funds that remain unobligated from prior fiscal years. The FY 2014 Appropriations Act also provides $93.269 million in FY 1999 through 2010 unobligated discretionary bus and bus facilities funds for new bus rapid transit projects recommend in the President's FY 2014 budget submission to Congress provided that such funds are subject to the Capital Investment Grant (CIG) Program requirements under 49 U.S.C. 5309, and permits unobligated and recovered FY 2010 through 2012 funds for 49 U.S.C. 5339, Alternative Analysis, to be used for CIG purposes as well.

B. Oversight Takedown

In order to conduct program oversight activities in accordance with 49 U.S.C. 5338(i), 0.5 percent is set aside from the amounts available to carry out the Planning Programs (section 5305); the Enhanced Mobility of Seniors and Individuals with Disabilities Formula Program (section 5310); and the Rural

Areas Formula Grants Program (section 5311). In addition, 0.75 percent is set aside from amounts made available to carry out the Urbanized Area Formula Grants Programs, and the High Intensity Fixed Guideway State of Good Repair Formula Program (section 5337(c)). Additionally, one percent of the amounts made available to carry out the CIG Program (section 5309) as well as one percent of the amounts available for grants to the Washington Metropolitan Area Transit Authority (section 601 of the Passenger Rail Investment and Improvement Act of 2008 (Pub. L. 110-432)) is set aside for oversight activities.

C. FY 2014 Formula Apportionments; Data and Methodology

FTA is publishing apportionment tables on its Web site for each program that reflects the full year appropriations less oversight take-downs, as applicable. FTA is continuing to use, as it did in FY 2013, urbanized area and demographic data from the 2010 Census. Tables displaying the funds available to eligible states, tribes, and urbanized areas have been posted on FTA's Web site at
http://www.fta.dot.gov/apportionments
.

1. National Transit Database and Census Data Used in the FY 2014 Apportionments

Consistent with past practices, the calculations for sections 5307, 5311, including 5311(j) (“Tribal Transit”), 5329, 5337, and 5339 programs rely on transit service data reported to the National Transit Database (NTD) in 2012, the most recent year that NTD data is available. In some cases where an apportionment is based on the age of the system, the age is calculated as of September 30, 2013. Any recipient or beneficiary of either the section 5307 or section 5311 program funds is required to report to the NTD. Additionally, a number of transit operators report to the NTD on a voluntary basis. For 2012, the NTD includes data from 821 reporters in urbanized areas, 795 of which reported operating transit service. The NTD reports 1,256 providers of rural transit reserve, which includes 130 Indian Tribes providing transit service.

The tiers of the sections 5303, 5305, 5307 and 5339 formulas that are based on population and population density continue to rely on data published by the 2010 Census, as required by MAP-21. Likewise, the tiers of the section 5311 formula that are based on rural population and rural land area are calculated using 2010 Census data.

Sections 5307, 5311, and 5311(j) formulas include tiers where funding is allocated on the basis of the number of persons living in poverty and the section 5310 formula allocates funding on the basis of the population of older adults and people with disabilities. The Census Bureau no longer publishes decennial census data on persons living in poverty and persons with disabilities. As a result, FTA uses the data for these populations available via the Census' American Community Survey (ACS), which is updated annually.

The FY 2014 apportionments use data on low-income persons, persons with disabilities, and older adults from the 2008-2012 ACS five-year data set, which was published in December 2013. This data set provides the first estimates that are based on the new Urbanized Area boundaries from the 2010 Census.

Future apportionments will be based on the most-recent three-year ACS estimates that are available as of October 1st for the year being apportioned. This is consistent with the policies FTA has used for NTD data in the past. This policy provides predictability in the data to be used for the apportionment, without being contingent on the variable dates on which an appropriation is enacted into law, or on which an apportionment notice is formally published. In addition, it is consistent with the fact that even when an appropriation is enacted after the fiscal year, which begins on October 1st, the amount appropriated is based on that full fiscal year.

The NTD and census data that FTA used to calculate the apportionments associated with this notice can be found on FTA's Web site:
www.fta.dot.gov/apportionments
.

2. Updates to Formula Calculation Methodology for the FY 2014 Apportionments

Section 5336(d)(2) directs FTA to “publish apportionments of the amounts, including amounts attributable to each urbanized area with a population of more than 50,000 and amounts attributable to each State of a multistate urbanized area on the apportionment date.”

In response to this requirement, which was present for the first time in FY 2013, FTA calculated each state's share of a multi-state urbanized area (UZA), as well as the apportionment to the UZA as a whole, by pro-rating population and NTD data attributable to each state's component of the multi-state UZA, calculating each state's share of the funding allocations to the multi-state UZA based on the formula for urbanized area grants set forth in section 5336, and aggregating the allocations to the UZA level.

For the FY 2014 section 5307 apportionments, FTA is calculating funds to the multi-state UZAs first and then pro-rating the funds to the component states in the UZA. This methodology aims to make it easier for practitioners in multi-state UZAs to use FTA's formula unit values table and is also consistent with how the section 5307 formula was calculated under the Safe Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (Pub. L. 109-59, SAFETEA-LU).

For the FY 2014 apportionments, FTA will pro-rate each state's share of the multi-state UZA apportionment on the basis of the share of the population residing in the component states of the multi-state UZA as determined by the 2010 Decennial Census. This methodology should more-accurately suballocate funds than a methodology that relied, in part, on the state within the multistate UZA that a transit agency is headquartered (regardless of where within the multistate UZA the agency provides public transportation service).

As was the case in FY 2013 the amounts showing each state's share of a multistate UZA's apportionment are for illustrative purposes only. Designated recipients must continue to sub-allocate funds allocated to a UZA based on a locally determined process, consistent with section 5307 statutory requirements.

The FY 2013 full-year section 5303 Statewide Planning apportionments published in May 2013 inadvertently neglected to provide the statutorily required 0.5 percent funding floor to the State of Arkansas, resulting in Arkansas being allocated $1,333 less than it should have received under these allocations. The FY 2014 Statewide planning apportionment includes a technical correction that provides $1,333 to Arkansas in addition to the funds allocated for FY 2014. A total of $1,333 was deducted from all other States' section 5303 allocation on the basis of the states' overall share of the statewide planning allotment in FY 2014.

D. FY 2014 Discretionary Program Funding

1. Notices of Funding Availability

MAP-21 authorized several discretionary grant programs, such as the Transit-Oriented Development (TOD) Planning Pilot Program, Low or No Emissions Bus and Facilities Program, Tribal Transit Discretionary Program, and Passenger Ferry Program. FTA will publish individual Notices of Funding Availability (NOFAs) for some of these programs in the coming months now that the FY 2014 full-year appropriations are available. NOFAs

will be posted in Grants.Gov and on FTA's Web site once published in the
Federal Register
.

In some cases, FTA may use proposals received under the FY 2013 NOFAs for purposes of allocating FY 2014 funds.

FTA published the FY 2013 NOFA for the Low or No Emissions Bus and Facilities Program on January 19, 2014. Applicants can apply for funding through March 10, 2014.
http://www.fta.dot.gov/grants/13077_15782.html
.

2. Research, Technical Assistance, and Training Program Funding

The FY 2014 Appropriations provides approximately $48 million for Research Technical Assistance and Training program activities of which $40 million is available to carry out Research, Development, Demonstration, and Development projects under 49 U.S.C. 5312, and $3 million is available for Transit Cooperative Research Program activities under 49 U.S.C. 5313. In addition, $3 million is available for Technical Assistance and Standards Development under 49 U.S.C. 5314 and $2 million is provided to carry out Human Resource and Training activities under 49 U.S.C. 5322(a) and (b). More information about these programs can be found in Section IV of this notice.

3. FY 2014 Fixed Guideway Capital Investment Grant Program Allocations

The Fixed Guideway Capital Investment Grant (CIG) Program (49 U.S.C 5309), which historically authorizes the New and Small Starts Programs and now includes the Core Capacity Improvement Program, is excluded from the NOFA process because the program has an ongoing project development and review process, and funding is allocated consistent with information already available to FTA. By way of this notice, however, FTA is publishing the FY 2014 CIG Allocations table (Table 7) to its Web site for approximately $2.132 billion available to carry out the program. These projects were included in the FY 2014
Annual Report on Funding Recommendations for CIG Program
published on April 12, 2013. Pursuant to FY 2014 appropriations, prior year unobligated or recovered section 5339 (Alternatives Analysis) funds are made available to carry out 49 U.S.C. 5309 for New Starts, Small Starts, or Core Capacity projects as applicable. And, prior year unobligated or recovered section 5309 (Discretionary Bus and Bus Facilities) funds are available to carry out bus rapid transit (BRT) projects subject to the requirements of the CIG program. More information about this program and the CIG FY 2014 Allocations can be found in Section IV of this notice.

4. Unobligated Prior Year Discretionary Allocations

FTA is posting tables of prior year discretionary allocations that remain unobligated as of September 30, 2013 to its FY 2014 Apportionments Web page. These tables can be found here:
www.fta.dot.gov/apportionments
and are numbered Tables 14-18. Each table contains information pertaining to the lapse date of these funds.

III. FY 2014 Program Highlights and Changes

A. MAP-21 Implementation

As a result of the MAP-21 authorization and in addition to regulatory activities, FTA is in the process of updating program circulars to reflect MAP-21 changes and provide guidance for new and existing programs. Below is a chart of publication dates or expected publication dates for the program circulars. FTA publishes the draft circulars for notice and comment, taking into consideration all comments received prior to final publication. In the interim and until FTA publishes final program circulars, existing program circulars combined with the interim guidance in the October 16, 2012 apportionment notice can be used to administer the programs. FTA's electronic grant management system and financial systems both have been updated to reflect new programs and new codes provided by MAP-21. If there are additional questions about the major formula programs or grants, please contact your regional office or the Headquarters program contacts listed in Section IV of this notice.

Program

Expected/actual
publication date (for
Notice and Comment)

Expected/actual
publication of
final circular

Urbanized Area Formula Grant Program (Section 5307)
April 22, 2013
January 16, 2014.

Enhanced Mobility for Seniors and Individuals with Disabilities (Section 5310)
July 11, 2013
Spring 2014.

Rural Areas Formula Program (Section 5311)
September 26, 2013
Spring 2014.

State of Good Repair Formula Program (Section 5337)
Spring 2014
Fall 2014.

Bus and Bus Facilities Formula Program (Section 5339)
Spring 2014
Fall 2014.

On October 3, 2013 FTA published an expansive Advanced Notice of Proposed Rulemaking (ANRPM) in the
Federal Register
requesting comment on a number of questions related to the implementation of the new requirements under MAP-21 for a National Transit Safety Plan, a requirement for Agency Safety Plans, a new Safety Certification Training Program, and a new National Transit Asset Management System. The comment period for this ANPRM closed on January 2, 2014. FTA is currently engaged in the process of reviewing approximately 2,500 pages of comments from more than 140 commenters. FTA intends to begin issuing formal Notices of Proposed Rulemakings (NPRMs) on these topics in late 2014 or in 2015.

FTA is also continuing to work with States with rail fixed guideway public transportation systems (rail fixed guideway public transportation systems or rail transit systems) to develop and carry out State Safety Oversight (SSO) Programs consistent with the requirements of MAP-21. On October 1, 2013, FTA announced the initial certification status of each State and is now working with each State to address, among other things, identified gaps in their SSO Programs (SSO Program or SSOP) with MAP-21 requirements and to develop work plans to address these gaps as well as enhance a State's SSOP. In a separate notice, FTA will be providing the new formula for the SSO Formula Grant Program apportioning FYs 2013 and 2014 funds that may be used to support a State's SSOP that meets the requirements of 49 U.S.C. 5329(e), as amended by MAP-21. FTA is also developing a Notice of Proposed Rulemaking to propose its plan to implement the SSO Program and seek feedback from the transit industry. Additional information on FTA's safety authority and the requirements under section 5329 can be found in Section IV.O. of this notice.

B. Federal Highway Administration (FHWA) Congestion Mitigation and Air Quality Improvement Program (CMAQ) Funds for Operating Assistance

Section 125 of the 2014 Appropriations included changes to the operating assistance section of the CMAQ program (23 U.S.C. 149(m)). The changes added new language that prohibits the imposition of a time limitation for operating assistance eligibility on a system
“for which CMAQ funding was made available, obligated or expended in fiscal year 2012.”
The Federal Highway Administration (FHWA) understands this change is not consistent with the language in its CMAQ Interim Guidance available at
http://www.fhwa.dot.gov/environment/air_quality/cmaq/policy_and_guidance/2013_guidance/index.cfm
. FHWA, working with FTA, will provide further guidance to implement this change. However, funds transferred in FY 2014 or later (on or after October 1, 2013) for operating assistance projects for which CMAQ funding was made available, obligated or expended in FY 2012 could be eligible for operating assistance without a time limitation, based on the change in the 2014 Appropriations Act. FTA will work with grantees at the time of grant application to verify eligibility for this provision. More information about this provision and the expected procedures can be found in Section V of this notice.

For CMAQ projects not affected by the provision in Section 125 prohibiting time limitations on operating assistance, grantees are to refer to the interpretation in the CMAQ Interim Guidance with regard to eligibility and time frames for operating assistance (i.e., eligibility for three years, with the option to spread the third year over an additional two years).

C. Transitioning to a New Electronic Grant Management System

FTA will continue to use its Transportation Electronic Award Management System (TEAM) to award and manage all grants, cooperative agreements, and other funding instruments throughout FY 2014. However, beginning in October 2014 FTA expects to award and manage grants through the Transit Award Management System (TrAMS), the successor to TEAM.

When deployed, TrAMS aims to offer a more efficient, user-friendly, and flexible tool to award and manage grants and cooperative agreements. It seeks to provide more useful information, and will strengthen the integrity and consistency of our grants award and management process.

FTA has created a page on its Web site,
http://www.fta.dot.gov/TrAMS
to provide additional information and updates on our new grant making system. Individuals who would like access to this Web site should contact their FTA regional office for the password to use or send an email to
fta.trams@dot.gov
.

FTA will provide training and technical assistance on using TrAMS. Training will include live, hands-on workshops, where feasible, as well as training videos and guidance and technical assistance documents. More information on upcoming training will be posted at
http://www.fta.dot.gov/TrAMS
.

FTA also will migrate data, information, and attachments about current funding recipients and their awarded grants from TEAM into TrAMS and will provide grantees with the opportunity to verify that their organizations' information has been migrated successfully.

TrAMS, by design, collects and presents information contained in new grant applications differently than TEAM, which will make it difficult to migrate applications that have not yet been awarded by the end of FY 2014 into the new system. FTA will make a concerted effort to award all pending grant applications in TEAM by the end of FY 2014 and prior to TrAMS becoming available. However, recipients should be aware that grant applications must be in submitted status in TEAM by June 30, 2014 so that FTA has adequate time to award the grant by the end of FY 2014, when TrAMS is first expected to become operational. FTA cannot guarantee that applications not awarded in TEAM by the end of FY 2014 will be migrated into TrAMS. If an application is not migrated into the new system, the recipient will need to re-create their application in TrAMS in FY 2015.

In addition, in order to minimize the amount of data and information that needs to be migrated into TrAMS, FTA encourages its grantees to promptly close any awarded grants where funds are fully disbursed or where the grantees no longer plan to implement the projects funded in the grant. FTA grantees will be able to use TrAMS to manage active grants where work on the transit projects identified in the grant is ongoing. (These grants will be migrated from TEAM to TrAMS).

D. Flood Insurance

Recipients are reminded they need to maintain flood insurance for any building located in a special flood hazard area that received Federal financial assistance. Section 102 of the Flood Disaster Protection Act of 1973 (FDPA) prohibits the Federal government from providing funds for acquisition or construction of buildings located in a special flood hazard area (100-year flood zone) unless the owner of the property first has obtained flood insurance. FTA's Master Agreement and annual Certifications and Assurances reference FDPA and recipients agree they will have flood insurance for buildings in a special flood hazard area.

Specifically, Federal agencies may not provide any financial assistance for the acquisition, construction, reconstruction, repair, or improvement of a building unless the recipient has first acquired flood insurance under the National Flood Insurance Act to cover the buildings constructed or repaired with Federal funds. The Federal Emergency Management Agency (FEMA) has defined “building” in its regulations implementing the National Flood Insurance Program (NFIP) as “a building with two or more outside rigid walls and a fully secured roof that is affixed to a permanent site.” In addition, where structures are both above and below ground, the flood insurance requirement applies where at least 51 percent of the cash value of the structure, less land value, is above ground.

This flood insurance requirement applies to transit facilities such as maintenance facilities, storage facilities, and above-ground stations/terminals, as well as equipment and fixtures in the facilities. It does not apply to underground subway stations, track, tunnels, ferry docks, or to any transit assets outside of a special flood hazard area.

A covered structure must be insured through the NFIP or a comparable private policy. The policy must provide coverage at least equal to the project cost for which Federal assistance is provided, or to the maximum limit of coverage available under the National Flood Insurance Act (currently $500,000 for buildings and $500,000 for equipment and fixtures), whichever amount is less. Facilities owned by state governments may be self-insured, but only where FEMA has approved the state's self-insurance policy. Private entities, and public entities other than state governments, may not self-insure and must obtain a flood insurance policy before receiving Federal funds and maintain the policy subsequent to grant award.

E. New Common Rule

On December 26, 2013 the Office of Management and Budget (OMB) issued the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards in 2 CFR Part 200. 2 CFR Part 200 replaces and combines the former Uniform Administrative Requirements for Grants (OMB Circular A-102 and Circular A-110 or 2 CFR Part 215 or Circular) as well as the Cost Principles (Circulars A-21 or 2 CFR part 220; Circular A-87 or 2 CFR part 225; and A-122, 2 CFR part 230). Additionally it replaces Circular A-133 guidance on the Single Annual Audit.

For the most part 2 CFR Part 200 does not substantially change Administrative Requirements as experienced by FTA grantees. However, FTA will be working to update its guidance to ensure it is consistent with the new Common Rule. Until that time grantees should continue to follow FTA Circular 5010.1D,
“Grant Management Requirements”
as last revised on August 27, 2012.

IV. FY 2014 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; Final Rule. FTA apportions funds directly to State Departments of Transportation (DOTs). State DOTs then allocate the funds to Metropolitan Planning Organizations (MPOs), for planning activities that support the economic vitality of the metropolitan area.

MAP-21 requires that the metropolitan transportation planning process must provide for the establishment of a performance-based approach to decision-making. Upon publication of a final rule on the metropolitan transportation planning program, MPOs will be required to establish 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 MPOs in coordination with States and transit providers. MPOs also will be required to provide a system performance report that evaluates their progress 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; and 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. FY 2014 Funding Availability

The FY 2014 Appropriations provides a total of $106,543,360 for 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 $106,570,979 as shown in the table below, after the deduction for oversight (authorized by section 5338) and including reapportioned funds.

Metropolitan Planning Program—FY 2014

Total Appropriation
$106,543,360

Oversight Deductions
−532,717

Reapportioned Funds
560,336

Total Apportioned
106,570,979

States' apportionments for this program are displayed in Table 2.

2. Basis for Allocation

Eighty percent of the funds are apportioned 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 with UZAs with one million or more in population in order to address planning needs in larger, more complex UZAs.

3. 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). The UPWP 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 the FTA regional office must approve any change before grant award. 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.

4. Period of Availability

The Metropolitan Planning program funds apportioned in this notice are available for obligation during FY 2014 plus three additional fiscal years. Accordingly, funds apportioned in FY 2014 must be obligated in grants by September 30, 2017. Any FY 2014 apportioned funds that remain unobligated at the close of business on September 30, 2017, 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. FY 2014 Funding Availability

FY 2014 Appropriations provides a total of $22,256,640 for the State Planning and Research Program (section 5305(e)). The total amount apportioned for the State Planning and Research Program (SPRP) is $22,910,721 as shown in the table below, after the deduction for oversight (authorized by section 5338) and including reapportioned funds.

Statewide Planning Program—
FY 2014

Total Appropriation
$22,256,640

Oversight Deductions
−111,283

Reapportioned Funds
765,364

Total Apportioned
22,910,721

States' apportionments for this program are displayed in Table 2.

2. Basis for Allocation

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.

3. 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.

MAP-21 requires that the statewide and non-metropolitan transportation planning process must provide for the establishment and use of a performance-based approach to decision-making. Upon publication of a final rule on the statewide and non-metropolitan transportation planning program, State Departments of Transportation will be required to establish 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 States in coordination with MPOs and transit providers. States will be encouraged to provide a system performance report that evaluates their progress in meeting the performance targets in comparison with the system performance identified in prior reports.

4. Period of Availability

The State Planning and Research program funds apportioned in this notice are available for obligation during FY 2014 plus three additional fiscal years. Accordingly, funds apportioned in FY 2014 must be obligated in grants by September 30, 2017. Any FY 2014 apportioned funds that remain unobligated at the close of business on September 30, 2017 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 that a Designated Recipient authorizes to apply for the funds directly to FTA.

FTA published a revised FTA Circular 9030.1E,
Urbanized Area Formula Program: Program Guidance and Application Instructions
on January 16, 2014, incorporating changes resulting from MAP-21. This circular was made available for public comment prior to final publication, and the final circular incorporates and responds to comments received. This revised circular is in effect for all grants awarded after the date of its publication. The revised circular can be accessed at
www.fta.dot.gov/circulars.

Recipients should be aware of several program clarifications and changes addressed in the circular, which were established by MAP-21 and took effect beginning in FY 2013. 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. These and other changes, including clarifications on existing requirements under the program, are incorporated in the FTA Circular 9030.1E. 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. FY 2014 Funding Availability

FY 2014 Appropriations provides a total of $4,458,650,000 for the Urbanized Area Formula Program (section 5307). The total amount apportioned to UZAs is $4,833,448,449, which includes the addition of amounts apportioned to UZAs pursuant to the section 5340 Growing States and High Density States Formula factors and reapportioned funds. 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 2014

Total Appropriation

a
$4,458,650,000

Ferry Discretionary Program
−30,000,000

State Safety Oversight Program
−22,293,250

Oversight Deduction
−33,439,875

Section 5340 Funds Added
450,840,320

Reapportioned Funds
9,691,254

Total Apportioned
4,833,448,449

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.

2. Basis for Allocation

Beginning in FY 2013 and continued in FY 2014, MAP-21 made several changes to the formula for this program. Specifically, section 5336(h) provides that 3.07 percent of section 5307 funds available for apportionment are allocated on the basis of low-income persons residing in UZAs, 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 a State Safety Oversight formula grant program. These funds are apportioned to States using a separate formula.

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 2014 apportionment, FTA used population and population density statistics from the 2010 Census and validated mileage and transit service data from transit providers' 2012 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 UZA transit systems, but which were attributable to rural areas outside of the UZAs 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 UZAs over 200,000 (large UZAs) 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 UZAs under 200,000 in population (small UZAs) 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. The dollar unit values for FY 2014 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 2012 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 2014 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. Half of the funds appropriated for section 5340 are apportioned to Growing States and half to High Density States. More information on this program and its formula is found in Section IV.R. of this notice.

iv. Low-Income Population

Beginning in FY 2013 and continued in FY 2014, the formula for this program includes a formula factor for 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.

3. Requirements

Program guidance for the Urbanized Area Formula Program is found in FTA Circular
9030.1E, Urbanized Area Formula Program: Program Guidance and Application Instructions,
dated January 16, 2014, and is supplemented by additional information and changes provided in this notice and that may be posted to the section 5307 Web page. Grantees should also review the

Federal

Register

notice that accompanied the revised circular for specific areas that may have changed in response to comments.

4. Period of Availability

Section 5307 funds are available for a period of six years (year of apportionment plus five additional years). Accordingly, 5307 funds apportioned in FY 2014 must be obligated in grants by September 30, 2019. Any FY 2014 apportioned funds that remain unobligated at the close of business on September 30, 2019 will revert to FTA for reapportionment under the Urbanized Area Formula Program. Grantees are encouraged to obligate funds when projects are ready and not wait until the last year the funds are available.

5. Other Program Information

i. Allocating Funds to Small Urbanized Areas and Designated Recipients

Prior to issuing its FY 2012 Apportionments, Allocations and Program Information Notice, FTA considered whether the Governor of a State could allocate formula fund apportionments to small UZAs located within or designated as Transportation Management Areas (TMAs) that are different from the allocations FTA publishes. FTA determined that the Governor had such discretion and the FY 2012 Apportionments Notice included language indicating that determination. (See
http://www.gpo.gov/fdsys/pkg/FR-2012-01-11/pdf/2012-249.pdf
).

Before the enactment of MAP-21, the Urbanized Area Formula Grant program at 49 U.S.C. 5307(a)(2) defined a “designated recipient” as an entity designated, in accordance with the planning process under sections 5303, 5304, and 5306, by the chief executive officer of a State, responsible local officials, and publicly owned operators of public transportation, to receive and apportion amounts under section 5336 that are attributable to transportation management areas identified under section 5303; or a State or regional authority if the authority is responsible under the laws of a State for a capital project and for financing and directly providing public transportation. The reference to TMAs in section 5307(a)(2) was directed at areas with 200,000 or more in population (large UZAs) identified by the Census Bureau. FTA did not interpret the reference to include areas under 200,000 in population, which the Secretary designated as TMAs at the request of the Governor and the Metropolitan Planning Organization (MPO). Such designations are for planning purposes only.

MAP-21 moved the definition of “designated recipient” to 49 U.S.C. 5302, which is the section that defines terms applicable to all of chapter 53 unless specifically provided otherwise in a particular section of that chapter. The term “designated recipient” as defined in section 5302(4) applies to section 5307, 5337, 5539, except that for purposes of section 5339, only designated recipients that operate fixed route bus service or that allocate funding to fixed route bus operators are eligible recipients. In addition, MAP-21 struck the term “transportation management areas” from the definition of “designated recipient.” Currently, section 5302(4) defines a “designated recipient” as an entity designated, in accordance with the planning process under section 5303 and 5304, by the Governor of a State, responsible local officials, and publicly owned operators of public transportation, to receive and apportion amounts under section 5336 to urbanized areas of 200,000 or more in population; or a State or regional authority, if the authority is responsible under the laws of a State for a capital project and for financing and directly providing public transportation. While legislative history fails to explain the change, it clearly supports FTA's earlier determination. Thus, consistent with the definition of “designated recipient,” FTA apportions funds according to the formula under section 5336 to designated recipients in UZAs of 200,000 or more in populations (large UZAs) and to the Governor of the State for UZAs of less than 200,000 in population (small UZAs). Pursuant to section 5336(e), the Governor of the State may allocate apportionments among the small UZAs. FTA interprets the legislation to allow a Governor to do so regardless of whether a small UZA has been designated as a TMA. FTA can make grants under this program to direct recipients after sub-allocation of funds.

ii. 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 has been made available to States for State Safety Oversight (SSO) program activities as authorized under 49 U.S.C. 5329. More information about this program funding will be provided in a separate
Federal Register
notice.

iii. National Transit Database 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 2013 Report Year, which lasts from October 2013 through July 2014, the reporting requirements apply to any recipient of a section 5307 grant obligation in 2012, any recipient of a section 5307 grant outlay in 2013, or any entity that continued to benefit in 2013 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 will propose guidance for implementing these requirements in a future notice in the
Federal Register
. The NTD Reporting Manuals contains detailed reporting instructions and are posted on the NTD Web site,
www.ntdprogram.gov.

iv. Definition of a Clean Fuel Vehicle

In the
Federal Register
notice dated January 16, 2014 that announced the publication of
FTA Circular 9030.1E,
FTA incorrectly described the reason that the term “biodiesel” was removed from the definition of “Clean Fuel Vehicle”. This term was removed because biodiesel is an alternative fuel capable of running in a standard clean diesel vehicle, not because biodiesel is not a type of clean fuel.

D. Fixed Guideway Capital Investment Grant (CIG) Program (49 U.S.C. 5309)—New and Small Starts and Core Capacity

The Fixed Guideway Capital Investment Grant (CIG) 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 an 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 projects 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 addition of Core Capacity eligibility under the 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 single year grant or a Small Starts Grant Agreement (SSGA) that defines the scope of the project and specifies the Federal commitment to the project. For more information about the New or Small Starts or Core Capacity project development process or evaluation and rating process contact Elizabeth Day, Office of Planning and Environment, at (202) 366-4033 or
Elizabeth.day@dot.gov
, or for information about published allocations contact Eric Hu, Office of Transit Programs, at (202) 366-0870 or
eric.hu@dot.gov
.

1. FY 2014 Funding Availability

The FY 2014 Appropriations provides a total of $1,942,938,000 for the section 5309 program. The total amount available for allocation is $1,923,508,620, after the one percent deduction for oversight, as shown in the table below.

Fixed Guideway Capital Investment Program—FY 2014

Total Appropriation
$1,942,938,000

Oversight Deductions
−19,429,380

Total Available
1,923,508,620

As noted in Section II.D.3 of this notice, the FY 2014 Appropriations permitted the use of prior year unobligated balances to be used to fulfill the funding recommendations published in the FY 2014
Annual Report on Funding Recommendations for CIG Program
on April 12, 2013. These funds combined with those shown above have been allocated for projects shown in Table 7.

2. Basis for Allocation

Funds are allocated on a discretionary basis and subject to program evaluation.

3. Requirements

In January 2013, FTA published a final rule explaining the MAP-21 evaluation and rating process for New and Small Starts projects, which became effective in April 2013. Additionally, FTA published corresponding final policy guidance in August 2013 that provides additional details and explanations on that process. FTA will be completing additional rulemaking and guidance documents related to the remainder of the section 5309 MAP-21 provisions, including: getting into and through the steps in the New Starts and Small Starts process; the evaluation and rating process for the Core Capacity Improvement program; getting into and through the steps in the Core Capacity process; warrants; expedited technical capacity reviews; and Programs of Inter-Related Projects. Project sponsors should reference the FTA Web site at
www.fta.dot.gov
for the most current fixed guideway capital investment grant program information. Grant-related guidance is found in FTA Circular 9300.1B,
Capital Investment Program Guidance and Application Instructions,
November 1, 2008; and C5200.1A,
Full Funding Grant Agreement Guidance,
December 5, 2002, which will be updated in the future to incorporate the changes made by MAP-21.

4. Period of Availability

MAP-21 expanded the period of availability for section 5309 capital investment funds to five years, (the fiscal year in which the amount is made available plus four additional years). Therefore, funds for a project identified in FY 2014 must be obligated for the project by September 30, 2018. Section 5309 funds that remain unobligated to the projects for which they originally were designated after five fiscal years may be made available for other section 5309 projects. Grantees are encouraged to obligate funds when projects are ready and not wait until the last year the funds are available.

E. Enhanced Mobility of Seniors and Individuals With Disabilities Program (49 U.S.C. 5310)

The Enhanced Mobility of Seniors and Individuals with Disabilities Program provides formula funding to States and Designated Recipients of large UZAs (areas with populations of 200,000 or more) to improve mobility for seniors and individuals with disabilities. This program provides funds for: (1) public transportation capital projects planned, designed, and carried out to meet the special needs of seniors and people with disabilities when public transportation is insufficient, unavailable, or inappropriate; (2) public transportation projects that exceed the requirements of the Americans with Disabilities Act (ADA) of 1990; (3) public transportation projects that improve access to fixed route service and decrease reliance by people with disabilities on complementary paratransit; and (4) alternatives to public transportation that assist seniors and individuals with disabilities with transportation.

Starting in FY 2013 and continued in FY 2014, FTA apportions funds specifically for large UZAs, small UZAs (areas under 200,000 in population) and rural areas (areas under 50,000 in population) and requires new designations in large UZAs. Additionally, MAP-21 expanded the eligibility provisions to include operating expenses.

On July 11, 2013, FTA published the proposed circular, FTA C 9070.1G,
Enhanced Mobility of Seniors and Individuals with Disabilities: Program Guidance and Application Instructions,
for notice and comment. FTA is in the process of responding to comments and anticipates publishing the final circular in spring 2014. Until then, grantees can utilize the existing circulars for the former 5310 program and repealed 5317 program combined with the interim guidance published in in the
Federal Register
on October 16, 2012 (See 77 FR 63669) to implement this program.

For more information about the Enhanced Mobility of Seniors and Individuals with Disabilities Program,

contact Gil Williams, Office of Transit Programs, at (202) 366-0797 or
gilbert.williams@dot.gov.

1. FY 2014 Funding Availability

FY 2014 Appropriations provides a total of $258,300,000 for the section 5310 program. The total amount apportioned to States and UZAs for the section 5310 program is $257,464,692, after the deduction for oversight (authorized by section 5338) and including reapportioned funds, as shown below in the table.

Enhanced Mobility of Seniors and Individuals With Disabilities Program—FY 2014

Total Appropriation
$258,300,000

Oversight Deductions
−1,291,500

Reapportioned Funds
456,192

Total Apportioned
257,464,692

Table 8 displays the amounts apportioned under the Enhanced Mobility of Seniors and Individuals with Disabilities Program.

2. Basis for Allocation

Based on the statutory formula, sixty percent of the funds are apportioned among Designated Recipients for large UZAs; twenty percent of the funds are apportioned among the States for their small UZAs; and twenty percent of the funds are apportioned among the States for their rural areas.

3. Requirements

i. Designated Recipients

For small UZAs and rural areas, the State is the Designated Recipient for section 5310. Current 5310 designations remain in effect until changed by the Governor of a State by officially notifying the appropriate FTA regional administrator of re-designation.

In large UZAs, the recipient charged with administering the section 5310 program must be officially designated through a process consistent with sections 5303 and 5304 prior to grant award. The MPO, State, or another public agency may be a preferred choice based on local circumstances. The designation of a recipient shall be made by the Governor in consultation with responsible local officials and publicly owned operators of public transportation, as required in sections 5303 and 5304. Section 5310 funds cannot be awarded until this designation is on file with the FTA Regional office. A State agency could be the Designated Recipient for section 5310 funds for a large UZA. However, if the State is selected as the Designated Recipient in a large UZA, the apportioned funds for the large UZA must be allocated to eligible subrecipients within the UZA.

Designated Recipients are responsible for administering the program. Responsibilities include: notifying eligible local entities of funding availability; developing project selection processes; determining project eligibility; developing the program of projects; obligating and managing the program funds; program reporting; and ensuring that all subrecipients comply with Federal requirements.

Although FTA will only award grants to the States and Designated Recipients for the program, there are other entities eligible to receive funding as a subrecipient. These include private nonprofit agencies, public bodies approved by the state to coordinate services for elderly persons and persons with disabilities, or public bodies which certify to the Governor that no nonprofit corporations or associations are readily available in an area to provide the service.

ii. Eligible Expenses

MAP-21 expands eligibility of the funds, permitting them to be used for operating, in addition to capital, for transportation services that address the needs of seniors and individuals with disabilities. However, not less than 55 percent of the funds available for this program must be used for capital projects planned, designed, and carried out to meet the special needs of seniors and individuals with disabilities when public transportation is insufficient, inappropriate, or unavailable). FTA refers to these projects as “traditional 5310” projects and based on the statutory language, these projects must be carried out by the traditional 5310 subrecipients, which are non-profits, or a State or local governmental authority that is approved by a State to coordinate services for seniors and individuals with disabilities, or certifies that there are no non-profit organizations readily available in the area to provide the service. The 55 percent is a floor. Recipients may use more or all of their section 5310 funds for these types of projects. Remaining funds may be used for operating or capital projects such as: Public transportation projects that exceed the requirements of the ADA; public transportation projects that improve access to fixed-route service and decrease reliance by individuals with disabilities on complementary paratransit; or alternatives to public transportation that assist seniors and individuals with disabilities. Eligible subrecipients for these other eligible section 5310 activities include a State or local governmental authority, a private non-profit organization, or an operator of public transportation that receives a section 5310 grant indirectly through a recipient. The acquisition of public transportation services remains an eligible capital expense under this section.

States and Designated Recipients may use up to ten percent of their annual apportionment to administer, plan, and provide technical assistance for a funded project. No local share is required for these program administrative funds.

For more guidance, until FTA revises the section 5310 circular, recipients may use FTA Circular 9070.1F,
Elderly Individuals and Individuals with Disabilities Program Guidance and Application Instructions,
dated May 1, 2007 for 5310 projects and FTA Circular 9045.1,
New Freedom Program Guidance and Application Instructions,
dated May 1, 2007 for New Freedom-like projects.

iii. Local Match

The matching requirements for this program remain the same; capital assistance is provided on an 80 percent Federal share, 20 percent local share. Operating assistance requires a 50 percent match. One difference to note, however, is that MAP-21 eliminated the provision for the sliding scale match under FHWA programs to be used in this program. Funds provided under other Federal programs (other than those of the Department of Transportation, with the exception of the Federal Lands Transportation Program and Tribal Transportation Program established by sections 202 and 203 of title 23 U.S.C.) may be used for local match under section 5310, as can revenue from service contracts.

iv. Planning and Consultation

The States and Designated Recipients must certify that: Projects selected for funding under this program are included in a locally developed, coordinated public transit-human services transportation plan; and the plan was developed and approved through a process that included participation by seniors, individuals with disabilities, representatives of public, private, nonprofit transportation and human services providers, and other members of the public. Although the requirement for a coordinated plan is not new, FTA recognizes that some large UZAs may need to modify existing coordinated plans to address the specific needs of the program's target populations and/or be approved by

individuals from the target populations. Modifications to existing programs are acceptable. For areas where a coordinated plan does not exist, FTA requires the following elements, at a minimum, be included in the plans:

a. An assessment of available services that identifies current transportation providers (public, private, and nonprofit);

b. An assessment of transportation needs for individuals with disabilities and seniors;

c. Strategies, activities, and/or projects to address the identified gaps between current services and needs, as well as opportunities to achieve efficiencies in service delivery; and,

d. Priorities for implementation based on resources (from multiple program sources), time, and feasibility for implementing specific strategies and/or activities identified.

Additionally, the plan must be developed and approved with representation from seniors, individuals with disabilities, representatives of public, private, nonprofit transportation and human services providers, and other members of the public.

Similar to how FTA treated this requirement under SAFETEA-LU programs, recipients are not required to submit the coordinated plans to FTA. Recipients must certify, however, that projects were selected from this process and must make reference to the plan in the program of projects, which is described below. Additional guidance for developing coordinated plans can be found in Chapter V of the FTA Circular 9070.1F,
Elderly Individuals and Individuals with Disabilities Program Guidance and Application Instructions,
dated May 1, 2007.

v. State and Project Management Plans

FTA will require States and Designated Recipients responsible for implementing the section 5310 program to document their approach to managing the program in a Program Management Plan (PMP) or State Management Plan (SMP). States may need to update their SMP to reflect MAP-21 changes. For large UZAs, the Designated Recipient will be required to submit a PMP to the regional office prior to grant award. For assistance with developing these plans, recipients can use Chapter VII of the FTA Circular 9070.1F,
Elderly Individuals and Individuals with Disabilities Program Guidance and Application Instructions,
dated May 1, 2007. This chapter includes guidance on how to create and use SMP and can be used as a guide to develop a PMP for the large UZAs. The primary purposes of management plans are to serve as the basis for FTA management reviews of the program, and to provide public information on the administration of the programs.

vi. Program of Projects (POP)

Designated Recipients are required to develop a Program of Projects (POP) with the grant application and submit it to the FTA regional office. The POP should be developed with respect to the coordinated plan, long range plan, and the transportation improvement plan. For additional guidance in developing the required POP, recipients can use Chapter IV of the FTA Circular 9070.1F,
Elderly Individuals and Individuals With Disabilities Program Guidance and Application Instructions,
dated May 1, 2007.

4. Period of Availability

For Enhanced Mobility of Seniors and Individuals with Disabilities Program funds apportioned under this notice, FTA has administratively set the period of availability to three years, which includes the year of apportionment plus two additional years. Accordingly, funds apportioned in FY 2014 must be obligated in grants by September 30, 2016. Any FY 2014 apportioned funds that remain unobligated at the close of business on September 30, 2016 will revert to FTA for reapportionment among the States and UZAs.

5. Other Program Information

States may transfer rural or small UZA funds. The State may transfer apportioned funds between small UZAs and the rural areas if it can certify that the needs are being met in the area to which the funds were originally apportioned. The State can transfer the funds apportioned for rural and small UZAs to any area within the state if a statewide program for this section is established. States must submit transfer requests to the regional office staff, who then coordinate with Headquarters program and budget offices to approve and record the transfer. There are no administrative or statutory provisions to permit transferring section 5310 funds to other FTA programs nor is there a provision for large UZAs to transfer their funds to the State. Funds apportioned to the large UZA must be used in the large UZA, regardless of who may be the Designated Recipient.

Multiple areas apportionments' can be combined in a single grant. However, unless transferred in accordance with the provisions above, the funds must be obligated and expended in the respective area to which the funds were apportioned. For example, rural area apportionments, must be obligated and expended for projects located in rural areas, small UZA funds must be obligated and expended in a corresponding small UZA.

MAP-21 requires FTA to establish performance measures for the program, which FTA initially sought comment on during the publication of the proposed program circular. Based on comments received to date, FTA is planning to launch an electronic dialogue to further engage program stakeholders, particularly the non-profit community, to further discuss and define performance measures for the program. This dialogue is expected to be launched in spring 2014.

F. Rural Area Formula Program (49 U.S.C. 5311)

The Rural Areas program provides formula funding to States and Indian tribes for the purpose of supporting public transportation in areas with a population of less than 50,000 (rural areas). Funding may be used for capital, operating, planning, job access and reverse commute projects, and State administration expenses. Eligible sub-recipients include State and local governmental authorities, Indian Tribes, private non-profit organizations, and private operators of public transportation services, including intercity bus companies. Indian Tribes are also eligible direct recipients under section 5311, both for funds apportioned to the States and for projects apportioned or selected to be funded with funds set aside for a separate Tribal Transit Program.

Under MAP-21, the changes to this program included changes to the formula, eligibility, and to the set-asides that support other rural transit programs within this section, such as the Tribal Transit Program. These changes were described in the proposed circular, FTA C 9040.1G,
Formula Grants for Rural Areas: Program Guidance and Application Instructions,
which FTA published for notice and comment on September 26, 2013. FTA is in the process of responding to comments and anticipates publishing the final circular in spring 2014. Until then, grantees can utilize the existing circular for the former 5311 program combined with the interim guidance published in the
Federal Register
on October 16, 2012 (See 77 FR 63669) to implement this program.

For more information about the Formula Grants for Rural Areas program, contact Lorna Wilson, Office of Transit Programs, at (202) 366-0893 or
lorna.wilson@dot.gov.

1. FY 2014 Funding Availability

The FY 2014 Appropriations provides $607,800,000 for the section 5311 program. The total amount apportioned to the States for the section 5311 program is $618,401,446, after the deductions for the Rural Transportation Assistance Program (RTAP), oversight (authorized by section 5338), the Tribal Transit Program, the Appalachian Development Public Transportation Assistance Program, and the addition of section 5340 for Growing States and reapportioned funds, as shown in the table below.

Formula Grants for Rural Areas Program—FY 2014

Total Appropriation
$607,800,000

Oversight Deductions
−3,039,000

RTAP Takedown
−12,156,000

Tribal Takedown
−30,000,000

Appalachian Takedown
−20,000,000

Section 5340 Funds
75,059,680

Reapportioned Funds
736,766

Total Apportioned
618,401,446

Table 9 displays the amounts apportioned to the States under the Formula Grants for Rural Areas Program.

2. Basis for Allocation

MAP-21 modified the formula for the Rural Areas Program. The majority of rural formula funds (83.15 percent) are apportioned based on land area and population factors. In this first tier, no State may receive more than 5 percent of the amount apportioned on the basis of land area. The remaining rural formula funds (16.85 percent) are apportioned based on land area, vehicle revenue miles, and low-income individual factors. Vehicle revenue miles are a new service factor and the low-income individual factor reflects that job access and reverse commute projects are now eligible under the program. In this second tier, no State may receive more than 5 percent of the amount apportioned on the basis of land area, or more than 5 percent of the amounts apportioned for vehicle revenue miles. In addition to funds made available under section 5311, FTA adds amounts apportioned based on rural population according to the growing States formula factors of 49 U.S.C. 5340 to the amounts apportioned to the States under the section 5311 formula.

Data from the Rural Module of the National Transit Database (NTD) 2012 Report Year was used for this apportionment, including data from directly-reporting Indian tribes.

Section 5311 program includes three takedowns: the Appalachian Development Public Transportation Assistance Program (ADTAP); the Rural Transit Assistance Program (RTAP); and the Tribal Transit Program. These separate programs are described in the sections that follow.

3. Requirements

The section 5311 program provides funding for capital, operating, planning, job access and reverse commute projects, and administration expenses for public transit service in rural areas. The planning activities undertaken with section 5311 funds are in addition to those awarded to the State under section 5305 and must be used specifically for rural areas' needs. States may elect to use 10 percent of their apportionment at 100 percent federal share to administer the section 5311 program and provide technical assistance to subrecipients. Technical assistance includes project planning, program and management development, public transportation coordination activities, and research the State considers appropriate to promote effective delivery of public transportation to rural areas.

The Federal share for capital assistance is 80 percent and for operating assistance is 50 percent, except that States eligible for the sliding scale match under FHWA programs may use that match ratio for section 5311 capital projects and 62.5 percent of the sliding scale capital match ratio for operating projects.

Each State prepares an annual program of projects, which must provide for fair and equitable distribution of funds within the States, including Indian reservations, and must provide for maximum feasible coordination with transportation services assisted by other Federal sources.

Additional program guidance for the Rural Areas Program is found in FTA Circular 9040.1F,
Nonurbanized Area Formula Program Guidance and Grant Application Instructions,
dated April 1, 2007, and is supplemented by additional information and changes provided in the interim guidance published in the
Federal Register
on October 16, 2012 (See 77 FR 63669) and that may be posted to FTA's section 5311 Web page. FTA is in the process of updating the program circular to incorporate changes resulting from MAP-21. All subrecipients of 5311 funding are expected to comply with the requirements found in the program circular.

4. Period of Availability

FTA is continuing to apply the period of availability of funds established under SAFETEA-LU, which is three years; this includes the year of apportionment plus two additional years. Any FY 2014 apportioned funds that remain unobligated at the close of business on September 30, 2016 will revert to FTA for reapportionment under the Formula Grants to Rural Areas Program.

5. Other Program Information

i. National Transit Database (NTD) Reporting

Section 5335 requires that each recipient or beneficiary under the section 5311 program submit an annual report to the NTD containing information on capital investments, operations, and service. Section 5311(b)(4) specifies that the report shall include information on total annual revenue, sources of revenue, total annual operating costs, total annual capital costs, fleet size and type, and related facilities, revenue vehicle miles, and ridership. Annual NTD reports should be a complete report of all transit activities, regardless of funding source. State or Territorial DOT 5311 grant recipients must complete a one-page form of basic data for each 5311 sub-recipient, unless the sub-recipient is already providing a full report to the NTD as a Tribal Transit direct recipient or as an UZA reporter (without receiving a full reporting waiver). For the 2013 Report Year, which lasts from October 2013 through July 2014, State or Territorial DOTs must report on behalf of any sub-recipient receiving section 5311 grants in 2013, or that continued to benefit in 2013 from capital assets purchased using section 5311 grants. State or Territorial DOTs should also continue to report on behalf of any sub-recipients that received section 5311 grants in prior years, and which anticipate receiving section 5311 grants in future years. Tribal Transit direct recipients must report if they obligated a grant in 2013, or if they expended funds from a section 5311 grant in 2013, or if they continued to benefit in 2013 from capital assets using section 5311 grants, unless the Tribe is already filing a full NTD Report as an UZA reporter or unless the Tribe has only received $50,000 or less in planning grants. 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.

G. Rural Transportation Assistance Program (49 U.S.C. 5311(b)(2))

This program provides funding to assist in the design and implementation of training and technical assistance projects, research, and other support services tailored to meet the needs of transit operators in rural areas. For more information about the Rural Transportation Assistance Program (RTAP) contact
Lorna Wilson, Office of Transit Programs, at (202) 366-0893 or lorna.wilson@dot.gov.

1. FY 2014 Funding Availability

The FY 2014 Appropriations provides $12,156,000 for the section 5311 RTAP Program. Of this amount, 15 percent, or $1,823,400, is available for the National RTAP program. The remainder plus any reapportioned funds are allocated to the States, as shown below.

Rural Transportation Assistance Program—FY 2014

Total Appropriation
$12,156,000

National RTAP
−1,823,400

Reapportioned Funds
281,743

Total Apportioned
10,614,343

Table 12 shows the FY 2014 RTAP allocations to the States.

2. Basis for Allocation

FTA allocates funds to the States by an administrative formula. First, FTA allocates $65,000 to each State ($10,000 to territories), and then allocates the balance based on rural population in the 2010 Census.

3. Requirements

States may use the funds to undertake research, training, technical assistance, and other support services to meet the needs of transit operators in rural areas. These funds are to be used in conjunction with a State's administration of the Rural Areas Formula Program, but also may support the rural components of the section 5310 program.

4. Period of Availability

The section 5311 RTAP funds apportioned in this notice are available for obligation in FY 2014 plus two additional years, consistent with that established for the section 5311 program. Any funds that remain unobligated on September 30, 2016 will revert to FTA for apportionment under the program.

5. Other Program Information

The National RTAP project is administered by cooperative agreement and re-competed at five-year intervals. FY 2013 marks the fifth year of the current agreement and FTA published a Request for Proposals on December 26, 2013, which closed on February 10, 2014. Results of this competition will be announced in FY 2014. The National RTAP projects are guided by a project review board that consists of managers of rural transit systems and State DOT RTAP programs. National RTAP resources also support the biennial TRB National Conference on Rural Public and Intercity Bus Transportation and other research and technical assistance projects of a national scope. The next TRB National Conference on Rural and Intercity Bus Transportation is scheduled for October 26-29, 2014 in Monterey, CA. More information can be found here:
http://www.ribtc.org/
.

H. Appalachian Development Public Transportation Assistance Program (49 U.S.C. 5311(c)(2))

MAP-21 established this new program as a take-down under the section 5311 program to provide additional funding to support public transportation in the Appalachian region. There are sixteen eligible States that receive an allocation under this provision. The States and their allocation are shown in the Rural Areas Formula program table posted on FTA's Web site under the FY 2014 Apportionments page. For more information about the Appalachian Development Public Transportation Assistance Program (ADTAP), contact Lorna Wilson, Office of Transit Programs, at (202) 366-0893 or
lorna.wilson@dot.gov.

1. FY 2014 Funding Availability

The FY 2014 Appropriations provides $20,000,000 for the ADTAP, as shown below.

Appalachian Development Public Transportation Assistance Program—FY 2014

Total Appropriation
$20,000,000

Total Apportioned
20,000,000

2. Basis for Allocation

FTA apportions the funds using percentages established under section 9.5(b) of the Appalachian Regional Commission Code (subtitle IV of title 40). According to this provision, allocations will be based in general on each State's remaining estimated need to complete eligible sections of the Appalachian Development Highway System as determined from the latest percentages of available cost estimates for completion of the System. Such cost estimates shall be produced at approximate five year intervals. Allocations shall contain upper and lower limits in amounts or to be determined by the Commission and shall be made in accordance with legislation.

3. Requirements

Funds apportioned under this program can be used for purposes consistent with section 5311 to support public transportation in the Appalachian region. Funds can be applied for in the State's annual section 5311 grant.

MAP-21 includes a provision that permits the use of Appalachian program funds that cannot be used for operating to be used for a highway project under certain circumstances. FTA will issue guidance in the final circular on how to accomplish a transfer. States should contact their regional office if they intend to request a transfer.

4. Period of Availability

Section 5311 Appalachian program funds are available for three years, which includes the year of apportionment plus two additional years, consistent with that established for the section 5311 program. Funds that remain unobligated on September 30, 2016 will revert to FTA for reallocation.

I. Public Transportation on Indian Reservations Program (49 U.S.C. 5311)

The Public Transportation on Indian Reservations Program (Tribal Transit Program) is a takedown from the section 5311 apportionment, which allocates funds by both statutory formula consistent with 5311(j) and through a competitive discretionary program consistent with section 5311(c)(1)(A). The Tribal Transit formula funds are apportioned to Indian tribes for any purpose eligible under section 5311, which includes capital, operating, planning, job access and reverse commute projects, and administrative assistance for rural public transit services and rural intercity bus service. Eligible direct recipients are federally recognized Indian tribes in rural areas. During FY 2013, FTA consulted with Tribal recipients and stakeholders to implement program requirements, apportion the FY 2013 formula funds, and issue a Notice of Funding Availability for the FY 2013

discretionary funds. For more information about the Tribal Transit Program contact Elan Flippin, Office of Transit Programs at (202) 366-3800 or
elan.flippin@dot.gov.

1. FY 2014 Funding Availability

The FY 2014 Appropriations provides $30,000,000 for the program, of which $25,000,000 is apportioned by formula and $5,000,000 will be allocated through a competitive discretionary program. FTA expects to publish a Notice of Funding Availability (NOFA) for FY 2014 funding in the spring of 2014.

Public Transportation on Indian Reservations Program—FY 2014

Total Appropriation
$30,000,000

Total Appropriated to Tribes by Formula
−25,000,000

Total Available for Discretionary Allocation
5,000,000

Plus Reapportioned Funds

a
55,813

Total Available for Discretionary Allocation
5,055,813

a
The reapportioned funds available in FY 2014 are Tribal Transit funds that were previously allocated through the competitive process and were not obligated by the lapse date. FTA intends to make these available for the FY 2014 discretionary competition. In the future, if formula funds lapse, those funds will be reapportioned in the formula apportionment.

2. Basis for Allocation

The majority of the funding is allocated by formula, as described below. The remainder of the appropriation plus prior year discretionary funds that have lapsed, will be made available through a discretionary competition.

i. Tribal Transit Formula Program

The Tribal Transit formula program is distributed to eligible Indian tribes providing public transportation on tribal lands. The formula apportionment shown in Table 10 is based on a statutory formula which includes three tiers. Tiers 1 and 2 are based on data reported to NTD by Indian tribes; Tier 3 is based on 2008-2012 American Community Survey data.

The three tiers for the formula are:

Tier 1—50 percent based on vehicle revenue miles reported to the NTD

Tier 2—25 percent provided in equal shares to Indian tribes reporting at least 200,000 vehicle revenue miles to the NTD

Tier 3—25 percent based on Indian tribes providing public transportation on reservations where more than 1,000 low income individuals reside

Twenty-nine more tribes are receiving a formula apportionment in FY 2014 than in FY 2013, because they became eligible to receive an apportionment after reporting their transit service data to the NTD. The available funds for formula apportionment are the same in FY 2013 and FY 2014, which results in lower apportionments to many of the tribes who had received a FY 2013 apportionment. In addition, a tribe's apportionment may have increased or decreased in FY 2014 due to increases or decreases in the data they reported to the NTD or changes to the tribe's population of persons at or below 100 percent of poverty reported in the updated ACS data used for the FY 2014 apportionments.

ii. Tribal Transit Discretionary Program

The Tribal Transit Discretionary program funds are allocated annually based on a discretionary competition and as published in a Notice of Funding Availability in the
Federal Register.
Funds will be allocated for grants to Indian tribes for purposes eligible under section 5311; however, FTA may limit the discretionary program based on funding priorities. Eligible projects may include: planning, capital, and operating. FTA expects to publish a NOFA in the
Federal Register
soliciting projects for the available FY 2014 discretionary funds in spring 2014. The NOFA will announce the available funding, application procedures, specific eligibility, and criteria for project selection for the discretionary program.

3. Requirements

Formula funds apportioned under this program can be used for purposes consistent with section 5311 to support public transportation on Indian Reservations in rural areas. Funds allocated under the discretionary program must be used consistent with the tribe's proposal and the allocation notice published in the
Federal Register,
which is used to announce the selected projects. Eligible recipients under both the discretionary and formula program include Federally-recognized Indian tribes or Alaska native villages, groups, or communities as identified by the U.S. Department of the Interior Bureau of Indian Affairs (BIA). A tribe must have the legal, financial and technical capabilities to receive and administer Federal funds.

Section 5335 requires NTD reporting for all direct recipients of section 5311 funds. This reporting requirement has and continues to apply to the Tribal Transit Program. Tribes that provide public transportation in rural areas are reminded to report annually so they are included in the Tribal Transit formula apportionments. Tribes needing assistance with reporting to the NTD should contact the NTD Helpline at 1-888-252-0936 or
NTDHelp@dot.gov.

4. Period of Availability

Tribal Transit program funds are available for three years, which includes the year of apportionment or allocation plus two additional years, consistent with that established for the section 5311 program. Any FY 2014 formula funds that remain unobligated at the close of business on September 30, 2016 will revert to FTA for reapportionment under the Tribal Transit Program.

5. Other Program Information

The funds set aside for the Tribal Transit Program are not meant to replace or reduce funds that Indian tribes receive from States through the section 5311 program but are to be used to enhance public transportation on Indian reservations and transit serving tribal communities. Funds allocated to Indian tribes by the States may be included in the State's section 5311 application or awarded by FTA in a grant directly to the Indian tribe. FTA encourages Indian tribes intending to apply to FTA as direct recipients to contact the appropriate FTA regional office at the earliest opportunity.

Tribal Transit Program grantees, the same as with all other FTA grantees, are obliged to comply with applicable Federal requirements as a condition of their financial assistance. To assist tribes with understanding these requirements and the recent program changes, FTA conducted three Tribal Transit Technical Assistance Workshops in FY 2013 and expects to continue similar offerings in FY 2014. In addition, FTA will begin assessments to review compliance and provide specific technical assistance for tribes beginning in FY 2015; these reviews will include an assessment of compliance areas pursuant to the Master Agreement, a site visit and technical assistance from FTA and its contractors. FTA will post information about upcoming workshops to its Web site and will disseminate information about the reviews through its Regional offices. FTA has regional tribal transit liaisons in each of the FTA Regional offices that are available to assist tribes with applying for and managing FTA grants. A list of regional tribal transit liaisons can be found on FTA's Web site at
http://www.fta.dot.gov/13094_15845.html.
Tribes are encouraged to work directly with their regional tribal transit liaison.

Technical assistance for Indian tribes may be available from the State DOT using the State's allocation of RTAP or funds available for State administration under section 5311, from the Tribal Transportation Assistance Program (TTAP) Centers supported by FHWA, and from the Community Transportation Association of America under a program funded by the United States Department of Agriculture (USDA). National RTAP will also be developing new resources for Tribal Transit. For more information about National RTAP, contact Lorna Wilson, Program Manager at 202-366-0893 or visit the National RTAP Web site
http://www.nationalrtap.org.

For more information about the Tribal Transit Program, contact Elan Flippin, Program Manager at 202-366-3800 or
elan.flippin@dot.gov.

J. Research, Development, Demonstration, and Deployment Projects (49 U.S.C. 5312)

MAP-21 amended the section 5312: Research; Innovation and Development; and, Demonstration, Deployment and Evaluation to include a Low or No Emission Vehicle Deployment program to fund low or no emission vehicles, facilities, or related equipment in non-attainment or maintenance areas. Additionally, MAP-21 established a structured process for applications, evaluations, and reporting for the research programs. For more information contact Vincent Valdes, Office of Research, Demonstration and Innovation, at (202) 366-3052 or
Vincent.valdes@dot.gov.

1. FY 2014 Funding Availability

The FY 2014 Appropriations provides a total of $40,000,000 for section 5312. Of this amount, $30,000,000 is allocated for the Low or No Emissions Vehicle Deployment Program.

2. Basis for Allocation

Topical areas are based on the Department's Strategic Goals and projects are generally selected through Notices of Funding Availability (NOFAs).

3. Requirements

Application Instructions and Program Management Guidelines are set forth in FTA Circular 6100.1D,
Research, Technical Assistance and Training Programs: Application Instructions and Program Management Guidelines.
FTA is in the process of updating this circular to incorporate changes resulting from MAP-21. All research recipients are required to work with FTA to develop approved Statements of Work. Under MAP-21, all research projects now require at least a 20 percent non-Federal share. In some cases, FTA may require a higher non-Federal share if FTA determines a recipient would obtain a clear and direct financial benefit from the project, or if non-Federal share is an evaluation factor under a competitive selection process. Projects under the Low or No Emission Vehicle Deployment Program are also subject to section 5307 requirements.

4. Period of Availability

Except for the Low or No Emission Vehicle Deployment Program, FTA establishes the period in which the funds must be obligated to the project. If the funds are not obligated within that period of time, they revert to FTA for reallocation under the program. Low or No Emission Vehicle Deployment funds are available for two years in addition to the year the funds are made available to a recipient, for a total of three years.

5. Other Program Information

Requests for research proposals will be published in Grants.gov. The FY 2013 Low and No Emissions discretionary competition is currently underway; the NOFA soliciting project proposals was published on January 9, 2014 and proposals are due March 10, 2014. FTA may use this NOFA to select projects for FY 2014 funding. Prospective applicants can find more information on FTA's NOFA page:
http://www.fta.dot.gov/grants/13077.html.

K. Transit Cooperative Research Program (49 U.S.C. 5313)

The Transit Cooperative Research Program (TCRP) funds a variety of applied research efforts for practitioners in the transit industry. TCRP is the cooperative effort of three organizations: the FTA; the National Academies, acting through the Transportation Research Board (TRB); and the Transit Development Corporation, Inc. (TDC), a nonprofit educational and research organization established by the American Public Transportation Association (APTA).

1. FY 2014 Funding Availability

The FY 2014 Appropriations provides a total of $3,000,000 for this section.

2. Basis for Allocation

TCRP issues annual calls for problem statements. For more information and past reports see
www.tcrponline.org.

3. Requirements

Funds are allocated directly to the Transportation Research Board at the National Academies of Sciences. For application requirements for this program, please see
www.tcrponline.org.

4. Period of Availability

The Transportation Research Board establishes the period in which funds must be obligated to a project.

L. Technical Assistance and Standards Development (49 U.S.C. 5314)

This section allows FTA to provide technical assistance to recipients to more effectively and efficiently provide transit service and to improve administration of federal transit funds. It also authorizes the development of voluntary and consensus-based standards and best practices. Additionally, through a competitive process, FTA may enter into agreements with national nonprofit organizations to assist providers of public transportation to: comply with the Americans with Disabilities Act (ADA); comply with human services transportation coordination requirements and enhance Federal coordination; to meet the transportation needs of elderly individuals; to increase transit ridership in coordination with MPOs and other entities through development around public transportation stations; to address transportation equity needs; and to provide any other technical assistance activities deemed necessary by FTA. For more information contact Vincent Valdes, Office of Research, Demonstration and Innovation, at 202-366-3052 or
vincent.valdes@dot.gov.

1. FY 2014 Funding Availability

The FY 2014 Appropriations provides a total of $3,000,000 for this section.

2. Basis for Allocation

FTA will allocate funds based on identified technical assistance and standards needs for the transit industry and generally selected through a competitive process.

3. Requirements

Application Instructions and Program Management Guidelines are set forth in FTA Circular 6100.1D,
Research, Technical Assistance, and Training Programs: Application Instructions and Program Management Guidelines,
dated May 1, 2011. FTA is in the process of updating this circular to incorporate changes resulting from language in MAP-21. All recipients of Technical Assistance and Standards funds are required to work with FTA to develop approved Statements of Work. Projects funded using grants require at least a 20 percent non-Federal share.

4. Period of Availability

FTA establishes the period in which funds must be obligated to a project. If the funds are not obligated within that period of time, they revert back to FTA for reallocation under the program.

5. Other Program Information

Requests for proposals will be published in Grants.gov.

M. Human Resources and Training Programs (49 U.S.C. 5322)

FTA may make grants or enter into contracts for human resource needs including: Employment training programs; outreach programs to increase minority and female employment; research on public transportation personnel and training need; and, training and assistance for minority business opportunities. Additionally, the Innovative Public Transportation Workforce Development program is a competitive grant program to assist in the development of innovative workforce activities.

A national transit institute is authorized under section 5322(d). The institute is authorized to develop training and education programs related to topics in public transportation. For more information contact Vincent Valdes, Office of Research, Demonstration and Innovation, at (202) 366-3052 or
vincent.valdes@dot.gov.

1. FY 2014 Funding Availability

The FY 2014 Appropriations provides $2,000,000 for this section, excepting 5322(d), of which $5,000,000 is available for a national transit institute.

2. Basis for Allocation

FTA will allocate funds based on identified workforce development and training needs, as well as by an innovative workforce development competition or through the contracting process.

3. Requirements

Application Instructions and Program Management Guidelines are set forth in FTA Circular 6100.1D,
Research, Technical Assistance, and Training Programs: Application Instructions and Program Management Guidelines,
dated May 1, 2011. FTA is in the process of updating this circular to incorporate changes resulting from language in MAP-21. All recipients of Human Resources and Training funds are required to work with FTA to develop approved Statements of Work. FTA may award funds through contracts or grants. Grants funded under the Human Resources and Training and the Innovative Public Transportation Workforce Development Program require a 50 percent non-Federal share.

4. Period of Availability

FTA establishes the period in which funds must be obligated to a project. If the funds are not obligated within that period of time, they revert back to FTA for reallocation under the program.

5. Other Program Information

Requests for proposals will be published in Grants.gov.

N. Public Transportation Emergency Relief Program (49 U.S.C. 5324)

MAP-21 established a public transportation Emergency Relief Program to fund public transportation expenses incurred as a result of an emergency or major disaster. No funding was provided in the FY14 Consolidated Appropriations Act for this program. Eligible expenses include emergency operating expenses, such as evacuations, rescue operations, and expenses incurred to protect assets in advance of a disaster, as well as capital projects to protect, repair, reconstruct, or replace equipment and facilities of a public transportation system in the United States or on an Indian reservation that the Secretary determines is in danger of suffering serious damage or has suffered serious damage as a result of an emergency.

The Disaster Relief Appropriations Act of 2013 made $10.9 billion available for the Emergency Relief program in response to Hurricane Sandy, which struck several metropolitan areas between Washington, DC and coastal New Hampshire in late October 2012. FTA has announced and allocated funding for affected transit agencies within the declared disaster area through a series of
Federal Register
notices during 2013. While Congress did not provide additional non-Sandy funding for this program in FY 2014, in the event of a declared emergency or major disaster recipients may use funds apportioned under sections 5307 and 5311 for emergency purposes.

In order for an agency to be eligible for Emergency Relief funding, the agency must have been affected by an emergency as defined under section 5324. Section 5324(a)(2) defines an emergency as “a natural disaster affecting a wide area (such as a flood, hurricane, tidal wave, earthquake, severe storm) or a catastrophic failure from any external cause as a result of which (a) the Governor of a State has declared an emergency and the Secretary has concurred or (b) the President has declared a major disaster under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act.” Expenses incurred due to incidents that do not rise to the level of a Governor's declaration with concurrence by the Secretary of Transportation will not be eligible to be funded under section 5324. Further, in the event of a Presidential declaration of emergency, FTA may reimburse only those expenses that are not reimbursed under the Stafford Act. If funding is available under the Emergency Relief program for a public transportation system affected by an emergency, agencies are directed to seek emergency relief from FTA rather than FEMA.

If a recipient has been affected by an emergency or major disaster, the recipient should contact the appropriate FTA regional office as soon as practicable to determine whether Emergency Relief funds are available, and to notify it that it plans to seek reimbursement for emergency operations and/or repairs that have already taken place or are in process. If Emergency Relief funds are unavailable the recipient may seek reimbursement from FEMA. Properly documented costs for which the grantee has not received reimbursement from FEMA may later be reimbursed by grants made either from section 5324 funding (if appropriated) or section 5307 and 5311 program funding, once the eligible recipient formally applies to FTA for reimbursement and FTA determines that the expenses are eligible for emergency relief.

FTA published an interim final rule for the Emergency Relief program on March 29, 2013 (49 CFR part 602, 78 FR 19136) and will publish a final program regulation later in 2014. Additional information about the Emergency Relief program and FTA's response to Hurricane Sandy is available on the FTA Web site at
www.fta.dot.gov/emergencyrelief.

For more information on the Public Transportation Emergency Relief Program or FTA's response to Hurricane Sandy, contact Adam Schildge, Office of Program Management, at 202-366-0778 or
adam.schildge@dot.gov.
For questions regarding the Interim Final Rule or the final program regulation, contact Bonnie Graves, Office of Chief Counsel, at 202-366-4011 or
bonnie.graves@dot.gov.

O. Public Transportation Safety Program (49 U.S.C. 5329)

MAP-21 establishes a Public Transportation Safety Program (section 5329) authorizing FTA to establish and enforce a new comprehensive framework to oversee the safety of public transportation throughout the

United States. It directs FTA to issue a National Public Transportation Safety Plan, which must include safety performance criteria for all modes of public transportation and minimum safety performance standards for vehicles not regulated by other Federal agencies.

FTA is implementing its new safety authority in consultation with the transit community and the U.S. Department of Transportation's (DOT) Transit 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. FTA published an Advanced Notice of Proposed Rulemaking (ANPRM) on the National Public Transportation Safety Program and the National Transit Asset Management Program on October 3, 2013, and asked several questions on how to implement the safety requirements of MAP-21 (78 FR 61251). FTA plans to issue several separate rulemakings to implement these requirements of MAP-21.

FTA is also working with States with rail fixed guideway public transportation systems (rail transit systems) to develop and carry out State Safety Oversight (SSO) Programs consistent with the requirements of MAP-21. Section 5329(e)(6) of 49 U.S.C. provides funding to support such activities. As mentioned in Section IV.C.5.ii in this notice, under MAP-21, there is a 0.5 percent take-down from the section 5307 Urbanized Area Formula grant program that provides the funding to be apportioned to States for SSO program activities. In a separate
Federal Register
notice, FYs 2013 and 2014 funds will be apportioned by a formula established by FTA per 49 U.S.C. 5329(e)(6)(B)(i) to States with rail transit 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 their SSOPs that meet MAP-21 requirements.

For more information about the Public Transportation Safety Program, contact Angela Dluger, Office of Safety and Oversight, at (202) 366-5303 or
Angela.Dluger@dot.gov.

P. State of Good Repair Program (49 U.S.C. 5337)

The State of Good Repair (SGR) program provides capital assistance for maintenance, rehabilitation, and replacement projects of existing fixed guideway and high intensity motorbus systems to maintain a state of good repair. Additionally, SGR grants are eligible for developing and implementing Transit Asset Management plans. This program provides funding for the following transit modes: Rapid rail (heavy rail), commuter rail, light rail, hybrid rail, monorail, automated guideway, trolleybus (using overhead catenary), aerial tramway, cable car, inclined plane (funicular), passenger ferries, bus rapid transit, and fixed-route bus services operating on high-occupancy-vehicle (HOV) facilities.

This program replaces and modifies elements of the fixed guideway modernization program (section 5309). Projects, including new maintenance facilities or maintenance equipment, that solely expand capacity or service are not eligible projects. The SGR program is intended to fund projects to maintain, replace or rehabilitate existing fixed guideway and high intensity motorbus systems.

FTA is in the process of developing a program circular that will be published for notice and comment. In the meantime, recipients should review the sections below for interim program guidance combined with the previously published interim guidance contained in the FY 2013 Apportionment Notice, dated October 16, 2012, and FTA Circular 9300.1B,
Capital Investment Program Guidance and Application Instructions,
dated November 1, 2008 until a final circular is published. For more information about the SGR program, contact Eric Hu, Office of Transit Programs, at (202) 366-0870 or
eric.hu@dot.gov.

1. FY 2014 Funding Availability

The FY 2014 Appropriations provides a total of $2,165,900,000 for the SGR program. After a 0.75 percent oversight takedown from the amount apportioned to the fixed guideway tier, the total amount allocated for the SGR program is $2,150,118,711, as shown in the table below.

State of Good Repair Formula Grant Program—FY 2014

Total Appropriation

a
$2,165,900,000

Oversight Deductions
−15,781,289

Total Apportioned
2,150,118,711

a
Total Appropriation includes $2,104,171,850 for the High Intensity Fixed Guideway tier and $61,728,150 for the High Intensity Motorbus tier.

Table 11 shows the FY 2014 SGR Program formula apportionments to eligible UZAs.

2. Basis for Allocation

FTA allocates SGR program funds according to a statutory formula. Funds are apportioned to UZAs with fixed guideway and high intensity motorbus systems that have been in operation for at least seven years. This means that only segments of fixed guideway and high intensity motorbus systems that entered into revenue service on or before September 30, 2006 are included in the formula, as identified in the NTD.

The law requires that 97.15 percent of the total amount authorized for the SGR program be apportioned to UZAs with “high intensity fixed guideway” systems. The apportionments to UZAs with “high intensity fixed guideway” systems are determined by two equal elements: (1) The proportion a recipient would have received of the fiscal year 2011 apportionment for 49 U.S.C. 5337, as it then existed, if calculated using the current version of 49 U.S.C. 5336(b)(1) and the current definition of “fixed guideway” at 49 U.S.C. 5337(a); (2) the proportion of vehicle revenue miles of an UZA to the total vehicle revenue miles of all UZAs and the proportion of directional route miles of an UZA to the total directional route miles of all UZAs. High Intensity Motorbus systems will receive the remaining 2.85 percent of the total amount authorized for the SGR program, and the apportionments to UZAs are based on vehicle revenue miles and directional route miles.

Vehicle revenue miles and directional route miles that are attributable to an UZA must be placed in revenue service at least 7 years before the first day of the fiscal year. FTA will apportion section 5337 funds to the section 5307 Designated Recipient for the UZA with fixed guideway transportation systems operating at least 7 years. The Designated Recipients will then allocate funds as appropriate to recipients that are public entities in the UZA and provide split letters to the FTA. FTA can make grants to direct recipients after sub-allocation of funds.

3. Requirements

FTA is in the process of updating the program circular to incorporate changes resulting from MAP-21. Until a final program circular is issued, grantees can utilize program guidance and requirements found in this notice along with the interim guidance published in the
Federal Register
on October 16, 2012 (See 77 FR 63669), combined with the FTA circular formerly used for the Fixed Guideway Modernization

Program: FTA Circular 9300.1B,
Capital Investment Program Guidance and Application Instructions,
dated November 1, 2008.

In addition to this program guidance, all recipients will need to certify that they will comply with the forthcoming rule issued under section 5326 for the Transit Asset Management plan, and SGR projects will need to be included in recipients' Transit Asset Management plans. This requirement is subject to FTA rulemaking and will become effective only after the rule is issued.

While funds are apportioned based only on fixed guideway and high intensity motorbus segments that have been in operation seven years or longer, a recipient may use the funds apportioned to it for eligible maintenance, replacement, and rehabilitation projects on any part of its existing fixed guideway system.

Eligible capital projects are those necessary to maintain fixed guideway systems in a state of good repair, including projects to replace and rehabilitate:

i. Rolling stock;

ii. Track;

iii. Line equipment and structures;

iv. Signals and communications;

v. Power equipment and substations;

vi. Passenger stations and terminals;

vii. Security equipment and systems;

viii. Maintenance facilities and equipment;

ix. Operational support equipment, including computer hardware and software;

x. Development and implementation of a transit asset management plan; and

xi. Other replacement and rehabilitation projects FTA determines appropriate.

Allowable activities within eligible replacement projects include the replacement of older features with new ones. Allowable activities within eligible rehabilitation projects include the incorporation of current design standards and additional features required by Federal law. Equipment, vehicles, and facilities to be replaced must have reached or exceeded its minimum useful life to be eligible for SGR funds.

In addition to replacement and rehabilitation, new maintenance facilities or maintenance equipment are eligible if needed to maintain the existing fixed guideway system or equipment in a state of good repair. Also, although not explicitly listed above, preventive maintenance activities are eligible.

FTA will permit expansion of capacity within eligible replacement projects to meet current or projected short-term service needs (e.g., replacing a maintenance facility with a larger facility, or replacing a bus with a larger bus). For any expansion elements included in a replacement project, the grantee will need to address how the project meets current or short term service levels. FTA will review the reasonableness of such expansion elements when reviewing the grant.

4. Period of Availability

The SGR funds apportioned in this notice are available for obligation during FY 2014 plus three additional years. Accordingly, funds apportioned in FY 2014 must be obligated in grants by September 30, 2017. Any FY 2014 apportioned funds that remain unobligated at the close of business on September 30, 2017 will revert to FTA for rea

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A2014-04759. Public record. Not legal advice.