# Notice of FTA Transit Program Changes, Authorized Funding Levels and Implementation of Federal Public Transportation Law as Amended by the Fixing America's Surface Transportation (FAST) Act and FTA Fiscal Year 2016 Apportionments, Allocations, Program Information and Interim Guidance

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URL: https://www.frixlaw.com/law-library/documents/fr%3A2016-02821

## Record

- **Collection:** Federal Register
- **Document type:** Notice
- **Published:** February 16, 2016
- **Citation:** 81 FR 7894

## Text

DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
Notice of FTA Transit Program Changes, Authorized Funding Levels and Implementation of Federal Public Transportation Law as Amended by the Fixing America's Surface Transportation (FAST) Act and FTA Fiscal Year 2016 Apportionments, Allocations, Program Information and Interim Guidance

AGENCY:

Federal Transit Administration (FTA), DOT.

ACTION:

Notice.

SUMMARY:

This notice announces changes in the Federal Transit Administration (FTA) programs in accordance with Federal public transportation law by the Fixing America's Surface Transportation (FAST) Act, which authorizes surface transportation programs of the Department of Transportation (DOT) for Federal fiscal years (FY) 2016 through 2020. This notice provides preliminary implementation instructions and guidance for the new and revised programs in FY 2016, announces the apportionment for programs authorized and funded with FY 2016 contract authority, and describes future plans for several discretionary programs. The notice also includes locations of FY 2016 apportionment tables and unobligated (or carryover) funds allocated under the discretionary programs from prior years.

FOR FURTHER INFORMATION CONTACT:

For general information about this notice contact Kimberly Sledge, Director, Office of Transit Programs, at (202) 366-2053. Please contact the appropriate FTA Regional Office for any specific requests for information or technical assistance. FTA Regional Office contact information is available on FTA's Web site:
www.fta.dot.gov
.

An FTA headquarters contact for each major program area is included in the discussion of that program in the text of this notice. FTA recommends that stakeholders subscribe on FTA's Web site (
www.fta.dot.gov
) to receive email notifications when new information is available.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Overview

II. FY 2016 Funding for FTA Programs

A. Federal Transit Law as Amended by the FAST Act Authorization, and FY 2016 Appropriations

B. Oversight Takedown

C. Previously Authorized Funding

III. FAST Act and FY 2016 Appropriations: Highlights of Changes

A. Focus Areas

1. Safety Authority

2. Transit Award Management System (TrAMS)

3. Between Car Barriers for Rail Systems

4. Public Transportation Innovation

5. Innovative Procurement (Section 3019)

6. Tribal Transportation Self-Governance Program (Title 23 Federal-Aid Highways Program)

7. Discretionary Programs

a. Transit-Oriented Development Planning Pilot Program (Section 20005(b) of MAP-21)

b. Passenger Ferry Grant Program (49 U.S.C. 5307(h))

c. Innovative Coordinated Access and Mobility Pilot Program (49 U.S.C. 5310 Section 3006(b)of the FAST Act)

d. Public Transportation on Indian Reservations (49 U.S.C. 5311(j))

e. Grants for Buses and Bus Facilities Competitive Grants (49 U.S.C. 5339(b))

f. Low or No Emission Grants (49 U.S.C. 5339(c))

g. Positive Train Control (Section 3028 of the FAST Act)

B. Definitional Changes and New Definitions

1. Associated Transit Improvement

2. Capital Project

3. Value Capture and Value Capture Revenue

C. Repealed and Consolidated Programs in FTA's Authorization

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

2. Transit Cooperative Research (49 U.S.C. 5313)

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

4. Bicycle Facilities (49 U.S.C. 5319)

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

D. Cross-Cutting Programmatic Requirements and Changes

1. Metropolitan and Statewide Planning

2. Provision of Non-Fixed Route Paratransit Under ADA

3. Buy America

4. Leasing

5. Project Management Oversight

6. Incremental Cost of Art and Non-Functional Landscaping Prohibited

7. Use of Geographic Preferences in Hiring

IV. Program-Specific Information

A. Metropolitan and Statewide Transportation Planning Program (49 U.S.C. 5303 and 5305(d))

B. State Planning and Research Program (49 U.S.C. 5304 and 5305(e))

C. Urbanized Area Formula Program (49 U.S.C. 5307)

D. Fixed Guideway Capital Investment Grant Program (49 U.S.C. 5309)

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

F. Formula Grants for Rural Areas 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. Public Transportation Innovation (49 U.S.C. 5312)

K. Technical Assistance and Workforce Development (49 U.S.C. 5314)

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

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

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

O. Grants for Buses and Bus Facilities Program (49 U.S.C. 5339)

P. Growing States and High Density States Formula Factors (49 U.S.C. 5340)

Q. Washington Metropolitan Area Transit Authority Grants

V. FTA Policy and Procedures for FY 2016 Grants

A. Automatic Pre-Award Authority To Incur Project Costs

B. Letter of No Prejudice (LONP) Policy

C. FY 2016 Annual List of Certifications and Assurances

D. Civil Rights Requirements

E. Consolidated Planning Grants

F. Grant Application Procedures

G. Grant Management

I. Overview

This document contains important information and interim guidance about new FTA programs and changes to existing FTA program statutes (49 U.S.C. 5301,
et seq.
) as amended by the Fixing America's Surface Transportation (FAST) Act (Pub. L. 114-94), signed by President Obama on December 4, 2015 and effective on October 1, 2015.

In addition, this document provides full year apportionments for FTA formula and discretionary programs that are available in FY 2016 pursuant to the
Consolidated Appropriations Act, 2016
(Pub. L. 114-113) (FY 2016 Appropriations Act). It also contains information on how FTA plans to administer its transit programs in FY 2016 and how funds appropriated and allocated prior to FY 2016 will be treated.

This notice highlights important changes to FTA programs, including new discretionary programs. It describes definitional changes and cross-cutting requirements, identifies repealed programs and provides specific information about FTA's statutory programs as amended by the FAST Act.

For each FTA program, FTA has provided information on the FAST Act authorized funding levels for FY 2016, the basis for apportionment or allocation of funds, requirements specific to the program, period of availability of funds, and other program information. A separate section provides information on pre-award authority and other requirements and guidance applicable to FTA programs and grant

administration. Finally, the notice includes references to tables on FTA's Web site that show amounts apportioned under the FAST Act, and approximately $1.04 billion in unobligated or carryover funding available in FY 2016 from prior years under certain discretionary programs carried out in accordance with prior authorization acts.

Information in this document includes references to the existing FTA program guidance and circulars. Some information may have been superseded by new provisions in the FAST Act, but these guidance documents and circulars remain a resource for program management in most areas. FTA intends to revise the guidance and circulars, as appropriate, with an opportunity for public comment where necessary.

II. FY 2016 Funding for FTA Programs

A. Federal Transit Law as Amended by the FAST Act Authorization and FY 2016 Appropriations

The FAST Act is the new five-year surface transportation authorization that provides FTA an authorization level of $11.78 billion in FY 2016 and a total of $61.56 billion from FY 2016 through FY 2020. The FAST Act realigns several transit programs, provides significant funding increases specifically for bus and bus facilities, creates several new discretionary programs and changes several cross-cutting requirements. The law continues and expands FTA authority to strengthen the safety of public transportation systems throughout the United States.

The FY 2016 Appropriations Act makes appropriations at the full-year level for FY 2016 through September 30, 2016. In section 5301 of title 49, United States Code, Congress specifies that funding is available for the development and revitalization of public transportation systems. Current funding availability for each program is identified in section IV of this notice and in Table 1 located on FTA's FY 2016 Apportionment Web page.

B. Oversight Takedown

The FAST Act modifies section 5338(f)
1

to provide for the following oversight takedowns of FTA programs: 0.5 percent of Metropolitan and Statewide Planning funds, 0.75 percent of Urbanized Area Formula funds, 1 percent of Fixed Guideway Capital Investment funds, 0.5 percent of Formula Grants for the Enhanced Mobility of Seniors and Individuals with Disabilities, 0.5 percent of Formula Grants for Rural Areas, 1 percent of State of Good Repair Formula funds, 0.75 percent for Grants for Buses and Bus Facilities, and 1 percent of Capital and Preventive Maintenance Projects for Washington Metropolitan Area Transit Authority funds. The funds are used to provide necessary oversight activities, such as oversight of the construction of any major capital project receiving Federal transit assistance; to conduct State Safety Oversight, drug and alcohol, civil rights, procurement systems, management, planning certification, and financial reviews and audits, as well as evaluations and analyses of grantee-specific problems and issues; and to generally provide technical assistance and correct deficiencies identified in compliance reviews and audits.

1
All references to “section” herein refer to sections of Chapter 53 of Title 49 of the United States Code, unless otherwise specifically stated.

C. Previously Authorized Funding

Funds allocated or apportioned in FY 2013 through 2015 that remain unobligated and for which the program has been repealed or its activities have been consolidated with other programs under Chapter 53 will continue to be subject to the program and eligibility requirements that existed prior to the enactment of FAST and to new cross-cutting requirements found in section III.D. of this notice. These programs are as follows:

• Section 5312, Research, Development, Demonstration and Deployment

• Section 5313, Transit Cooperative Research Program

• Section 5314, Technical Assistance and Standards Development

• Section 5322, Human Resources and Training

For programs that are continued under FAST with amendments, the provisions of the FAST Act now apply to all unobligated funds from FY 2015 and prior years, as well as to FY 2016 funds. These programs are:

• Section 5305 Planning Programs

• Section 5307 Urbanized Area Formula Grants

• Section 5309 Fixed Guideway Capital Investment Grants

• Section 5310 Formula Grants for the Enhanced Mobility of Seniors and Individuals with Disabilities

• Section 5311 Formula Grants for Rural Areas

• Section 5339 Grants for Buses and Bus Facilities

• Section 20005(b) of MAP-21, Pilot Program for Transit-Oriented Development Planning

II. FAST Act and FY 2016 Appropriations: Highlights of Changes

The FAST Act furthers several important goals of the DOT, including safety, state of good repair, performance, innovation and program efficiency. The FAST Act continues FTA's expanded authority to strengthen the safety of public transportation systems throughout the United States. The Act also continues to emphasize restoring and replacing the Nation's aging public transportation infrastructure. The level of overall funding is increased for transit projects by 17 percent over the five-year authorization. Most notable is the increase to the Bus program where funding increased 62.5 percent in FY 2016 and nearly 90 percent over the five-year timeframe. In addition, the Bus Discretionary Grant program is reinstated and includes a set-aside for low or no emission vehicles and facilities.

A. Focus Areas

1. Safety Authority

The FAST Act amends 49 U.S.C. 5329 to provide FTA with expanded authority to strengthen the safety of public transportation systems throughout the United States by developing safety standards for the public transportation industry and granting FTA the authority to administer temporary Federal safety management and oversight if a State Safety Oversight Program is not being carried out in accordance with section 5329, has become inadequate to ensure the enforcement of Federal safety regulation, or is incapable of providing adequate safety oversight consistent with the prevention of substantial risk of death, or personal injury. If there is a failure to develop an adequate State Safety Oversight Program, FTA may withhold Federal funding from the State safety oversight program and from the urbanized area or State in which the rail transit system overseen by the State Safety Oversight Agency is located. Additional information on FTA's safety authority and the requirements under section 5329 can be found in section IV.M. of this notice.

2. Transit Award Management System (TrAMS)

FTA's Transportation Electronic Award and Management (TEAM) system closed for grant making and grant management on November 30, 2015. TEAM is currently available on a read-only basis and FTA is planning to transition to the Transit Award Management System (TrAMS) on February 16, 2016.

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

FTA will continue to provide training and technical assistance on using TrAMS. Training will include live webinars as well as training videos and guidance and technical assistance documents. Information on upcoming training will be posted at
http://www.fta.dot.gov/TrAMS
.

Recipient and grant award information and attachments as of November 30, 2015 will migrate from TEAM into TrAMS. Individual user account information and TEAM user roles (as of November 30, 2015) will also migrate into TrAMS. Once TrAMS is deployed, recipients will be able to manage TEAM awarded grants as well as create new applications in TrAMS for FY 2016 and prior year funding.

As reports contain cumulative information, FTA waived submission of monthly (for certain grantees) and quarterly reporting requirements for December, January, and February. The first monthly milestone progress reports (MPR) and Federal Financial Reports (FFR) will be due in TrAMS by March 30, 2016. The MPR and FFR reports for quarterly reporters will be due in TrAMS by April 30, 2016.

3. Between Car Barriers for Rail Systems

All rail systems operating in a level-boarding environment must have between car barriers. FTA's Acting Administrator issued a Dear Colleague letter related to between car barriers on September 15, 2015. See:
http://www.fta.dot.gov/newsroom/12910_16573.html
.

The Acting Administrator's letter focused on light rail systems, but rapid rail, commuter rail, and automated guideway systems are also required to have between car barriers. Specifically, 49 Code of Federal Regulations (CFR) sections 38.63, 38.85, 38.109, and 38.173 require between car barriers. Generally the requirement is, “Where vehicles operate in a high-platform, level-boarding mode, devices or systems shall be provided to prevent, deter or warn individuals from inadvertently stepping off the platform between cars.” The regulations do not prescribe a particular type of between car barrier. Rather, they state that suitable devices include pantograph gates, chains, and motion detectors. The purpose of this provision is to stop an individual from mistaking the gap between cars for an open vehicle door and then stepping off the platform. It should be noted the regulations do not define what constitutes a “high platform,” but the regulatory text links “high-platform” to “level-boarding mode” and must be considered in conjunction with other key parts of the regulations, which clearly point to the relationship between platform height and entrance to the vehicle floor. In a level-boarding/platform environment without between-car barriers, the hazard of falling to the track bed exists whenever a rail system operates trains of more than one car. This represents a physical risk to the traveling public as well as a financial risk to a transit agency.

4. Public Transportation Innovation

The FAST Act continues to emphasize innovation and renames FTA's research program at 49 U.S.C. 5312 to “Public Transportation Innovation”. Innovation has been a focus area for both the DOT and FTA for a number of years. Most recently, FTA launched the XPEDITE Innovation initiative, which was an online dialogue that sought industry input on a number of innovation areas from technology advances to financing and project delivery. FTA's research program will continue to build on this effort, along with major departmental initiatives such a Beyond Traffic and Ladders of Opportunity with a significant emphasis on technology trends that increase public transportation efficiency, effectiveness and enhance the quality of customer travel. FTA research goals are to promote innovation through projects of national significance that improve our nation's public transportation operations, infrastructure, and the travelers' experience in three focus areas: Safety, asset innovation/management, and mobility. Under 49 U.S.C. 5312, as amended by the FAST Act, three categories of projects are authorized: Research; innovation and development; and demonstration, deployment and evaluation. FTA research projects achieve public transportation innovation goals by utilizing one or more of the following strategic directions:

• Enhancing equitable and accessible mobility for everyone

• Extending public private partnerships

• Ensuring public transportation efficiency, safety and reliability

• Enabling seamless, effective integration across transportation modes and applications, and;

• Expanding customer satisfaction and value.

FTA's research and innovation activities harness thought leadership and promising practices as directed in 49 U.S.C. 5312 through contracts and cooperative agreements across states, academic institutions, transportation providers, and private and nonprofit organizations.

5. Innovative Procurement (Section 3019)

Section 3019 of the FAST Act clarifies and emphasizes the ability of FTA recipients to enter into cooperative procurements and creates a pilot program. FTA will issue guidance in the near future related to cooperative procurement schedules, the Pilot Program for Nonprofit Cooperative Procurements, and the Joint Procurement Clearinghouse.

Additionally, Section 3019 modifies and clarifies FTA's leasing requirements and eligibility. See changes for lease requirements in the cross-cutting section III.D.4 of this Notice.

6. Tribal Transportation Self-Governance Program (Title 23 Federal-Aid Highways Program)

Section 1121 of the FAST Act establishes a Tribal Transportation Self-Governance Program (Self Governance) at 23 U.S.C. 207. The Self-Governance Program establishes specific criteria for determining eligibility for a tribe to participate in the program. DOT will implement this program in consultation with tribal representatives and other interested stakeholders. More information about this program will be provided at a later date.

7. Discretionary Programs

The FAST Act continues several discretionary programs that were authorized under MAP-21 and creates new ones. FTA is in the process of developing criteria and program guidance for the discretionary programs, which will be published in Notices of Funding Availability (NOFA). These include:

a. Transit-Oriented Development Planning Pilot Program (Section 20005(b) of MAP-21)

This discretionary pilot program for transit-oriented development (TOD) planning grants continues with no changes from what was included under MAP-21 and is authorized for $10 million for FY 2016. Eligible activities include comprehensive planning in corridors with proposed New Starts, Small Starts, or Core Capacity projects. The comprehensive plans should enhance economic development, ridership, and other goals; facilitate

multimodal connectivity and accessibility; increase access to transit hubs for pedestrian and bicycle traffic; enable mixed-use development; identify infrastructure needs associated with the project; and include private sector participation. A NOFA will be published announcing the amount of funding available, application procedures, project and applicant eligibility, and relevant selection criteria. For more information or questions on this program, please contact
Ben Owen at 202-366-5602 or Benjamin.Owen@dot.gov.

b. Passenger Ferry Grant Program (49 U.S.C. 5307)

Of the amount authorized for Section 5307 each year, $30 million is set aside for the competitive discretionary Passenger Ferry Grant Program. Eligible projects are capital projects including ferries, terminals, and related infrastructure. FTA will allocate FY2016 funds for the discretionary passenger ferry competition to specific projects submitted in response to a NOFA published August 3, 2015. A Notice of Award will be published in the
Federal Register
announcing project selections. Awards will also be posted to FTA's Web site. For more information about this program, please contact
Vanessa Williams at 202-366-4818 or Vanessa.Williams@dot.gov.

c. Innovative Coordinated Access and Mobility Pilot Program (49 U.S.C. 5310)

Section 3006(b) of the FAST Act created a new discretionary pilot program for innovative coordinated access and mobility. The $2 million program is open to Section 5310 recipients and subrecipients to assist in financing innovative projects for the transportation disadvantaged that improve the coordination of transportation services and non-emergency medical transportation (NEMT) services. Examples of eligible projects include the deployment of coordination technology, and projects that create or increase access to community One-Call/One-Click Centers. A NOFA will be published announcing the amount of FY 2016 funding available, application procedures, project and applicant eligibility, and relevant selection criteria. A report is required by December 31 of each year on the pilot program. The report will include a detailed description of the activities carried out under the pilot program, and an evaluation of the program, including an evaluation of the performance measures. For more information about this program, please contact
Danielle Nelson at 202-366-2160 or Danielle.nelson@dot.gov.

d. Public Transportation on Indian Reservations (49 U.S.C. 5311(j))

The Tribal Transit program continues to be a set-aside from the Rural Areas Formula program and includes a $5 million competitive discretionary grant program. Eligible projects are planning, capital and operating. FTA will publish a NOFA announcing FY 2016 funding, application procedures, project and applicant eligibility, and relevant selection criteria. For more information or questions on this program, please contact
Elan Flippin at (202) 366-3800 or elan.flippin@dot.gov.

e. Buses and Bus Facilities Competitive Grants (49 U.S.C. 5339(b))

The FAST Act authorizes a discretionary bus and bus facilities program in 49 U.S.C. 5339. In FY 2016 a total of $213 million is available to carry out the 5339(b) Bus and Bus Facilities Competitive Grant Program. Eligible capital projects include projects to replace, rehabilitate, lease, and purchase buses and related equipment and projects to purchase, rehabilitate, construct or lease bus-related facilities. FTA will publish a NOFA announcing the amount of FY 2016 funding available, application procedures, project and applicant eligibility, and relevant selection criteria.
For more information about the Bus and Bus Facilities competitive grants discretionary program, contact Sam Snead, Office of Transit Programs, at (202) 366-1089 or Samuel.Snead@dot.gov.

f. Low or No Emission Grants (49 U.S.C. 5339(c))

The FAST Act authorizes a total of $55 million for the 5339(c) Low or No Emissions Program (Low-No Program). Eligible projects or program of projects include the acquisition and leasing of low or no emission vehicles, constructing and leasing facilities and rehabilitating or improving existing facilities to accommodate low or no emission vehicles. FTA will publish a NOFA announcing the amount of FY 2016 funding available, application procedures, project and applicant eligibility, and relevant selection criteria.
For more information about the Low or No Emission discretionary program, contact Sam Snead, Office of Transit Programs, at (202) 366-1089 or Samuel.Snead@dot.gov.

FTA's research office will continue to implement and evaluate the MAP-21-authorized FY 2013-2015 resources available through the Low or No Emission Deployment Program (49 U.S.C. 5312). FTA expects to announce the final research deployment grants (FY 2015; $22.5M) in the summer of 2016.
For more information about the MAP-21-authorized Low or No Emission discretionary research program, contact Sean Ricketson, Office of Research, Demonstration and Innovation, at (202) 366-6678 or sean.ricketson@dot.gov.

g. Positive Train Control (Section 3028)

Section 3028 of the FAST Act authorizes grants for positive train control. The discretionary program authorizes funding for FY 2017, and funds will be used for the installation of positive train control systems as required under 49 U.S.C. 20157, which states that Class I railroad carriers and each entity providing regularly scheduled intercity or commuter rail passenger transportation shall submit to the Secretary of Transportation a revised plan for implementing a positive train control system by December 31, 2018. The Federal Railroad Administration (FRA) will issue the Notice of Funding Availability and select the recipients of the positive train control grants. FTA will administer the grants once the allocations to recipients are announced.

B. Definitional Changes and New Definitions

Section 3002 of the FAST Act amended section 5302 to provide new definitions and to amend existing definitions that clarify eligibility and requirements within FTA's programs. Unless otherwise stated, these definitions apply across all FTA programs, and are effective with all funds obligated as of the date of this notice even if the funds were appropriated in earlier fiscal years. Several important definitional changes include:

1. Associated Transit Improvement

The term associated transit improvement means, with respect to any project or an area to be served by a project, projects that are designed to enhance public transportation service or use and that are physically or functionally related to transit facilities.

A few minor changes were noted in the definition of associated transit improvement. The word
functional
has been added as a description to landscaping and streetscaping. Also, a sentence was restructured to clarify the definition of bicycle access in (1)(E) to read
bicycle access, including bicycle storage shelters and parking facilities and the installation of equipment for transporting bicycles on public transportation vehicles.

2. Capital Project

Several sections under the definition of capital project have been amended. Leasing equipment or a facility for use in public transportation no longer is subject to regulations that the Secretary prescribes or a cost effectiveness test. (See changes to leasing in the cross-cutting requirements section of this Notice).

The construction of space for commercial uses, including the outfitting of commercial space is now an eligible expense as a part of a joint development project. Language was removed stating that construction of space for commercial uses
does not
include outfitting of commercial space (other than intercity bus station or terminal) or a part of a public facility not related to public transportation.

A new provision was added for non-fixed route paratransit transportation services. It retains the eligibility for grant recipients to use up to 10 percent of a recipient's annual formula apportionment under sections 5307 and 5311 for the provision of non-fixed route Americans with Disabilities (ADA) complementary paratransit services at an 80 percent Federal share. Additionally, recipients now may use up to 20 percent of the amounts apportioned under sections 5307 and 5311 for ADA complementary paratransit service at an 80 percent Federal share if the recipient demonstrates that the recipient meets at least two of the following requirements: (I) Provides an active fixed route travel training program that is available for riders with disabilities, (II) provides that all fixed route and paratransit operators participate in a passenger safety, disability awareness, and sensitivity training class on at least a biennial basis, or (III) has memoranda of understanding in place with employers and the American Job Center to increase access to employment opportunities for people with disabilities.

The definition of a capital project now specifically includes associated transit improvements and technological changes or innovations to modify low or no emission vehicles (as defined in section 5339)(c)) or facilities.

3. Value Capture and Value Capture Revenue

The term “value capture” is a new term in the FAST Act that has been in practice for several years. Value capture is a financing strategy for recovering the increased property value from property located near public transportation resulting from investments in public transportation. Under section 5323(s), a recipient of assistance may use the revenue generated from value capture financing mechanisms as local matching funds for capital projects and operating costs eligible under Chapter 53 of title 49, United States Code. FTA will issue subsequent guidance on implementing this provision.

C. Repealed and Consolidated Programs in FTA's Authorization

The FAST Act focuses on improving the efficiency of grant program operations by consolidating certain programs and repealing other programs. For programs that expired on September 30, 2015, no new funding is authorized beyond fiscal year 2015. However, unobligated funds appropriated or authorized in FY 2015 and prior years remain available for obligation (for the established period of availability when appropriated or allocated) and expenditure, and follow program-specific requirements established under prior authorizations. In addition, there are new cross-cutting requirements under the FAST Act found in section III.D of this notice that apply to all grants obligated in FY 2016.

1. Research, Development, Demonstration and Deployment Program (49 U.S.C. 5312)

Formerly the Research, Development, Demonstration, and Deployment Program, the FAST Act amends 49 U.S.C. 5312 and renames this section, which authorizes FTA's research program, to “Public Transportation Innovation.” While maintaining the authority for research, development, demonstration, deployment, and evaluation activities as previously authorized in section 5312, the Low or No Emission Vehicle Deployment Program (Lo-No Deployment Program) is no longer authorized as a discretionary research-funded activity; however, FTA is currently in the process of evaluating eligible proposals submitted in response to the NOFA published on September 24, 2015 (closed on November 23, 2015) and anticipates allocating the FY 2015 appropriations to selected projects in the summer of 2016. FTA also continues to work with the recipients of the FY 2013-2014 Lo-No Deployment program to implement and evaluate vehicle and facilities projects. And, while no longer eligible in the research program, grantees can compete under the new discretionary authority found in the Bus and Bus Facilities program (section 5339) specifically for Low and No Emission vehicle and facility projects in FY 2016.

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

The FAST Act repeals section 5313 and moves the authority for the cooperative research program to section 5312 (49 U.S.C. 5312(i)) as described above.

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

Formerly Technical Assistance and Standards Development, the FAST Act amends 49 U.S.C. 5314 to include new authority and renames the section to “Technical Assistance and Workforce Development.” In addition to funding technical assistance and standards development, this section now authorizes FTA's workforce development activities and the National Transit Institute (NTI), both formerly found in section 5322.

Of particular note, this section now authorizes recipients under sections 5307, 5337, and 5339 to use 0.5 percent of their available funds to pay for workforce development activities (up to an 80 percent Federal share). There is a separate eligibility to use 0.5 percent of available funds under the sections above for training at the National Transit Institute.

4. Bicycle Facilities (49 U.S.C. 5319)

Section 5319—Bicycle facilities has been repealed. This section had permitted a higher Federal share of up to 95 percent for bicycle access and other bicycle capital projects. However, capital projects for bicycle access, including bicycle storage shelters and parking facilities and the installation of equipment for transporting bicycles on public transportation vehicles remains eligible at an 80 percent Federal share.

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

The FAST Act repeals section 5322 and moves the authority for human resources and training to section 5314, as described above.

D. Cross-Cutting Programmatic Requirements and Changes

The following cross-cutting requirements apply to all FTA programs as of the date of this notice.

1. Metropolitan and Statewide Planning

The planning programs provide funding and procedural requirements to metropolitan areas and States for multimodal transportation planning that is cooperative, continuous, and comprehensive, resulting in long-range plans and short-range programs of projects that reflect transportation investment priorities. The planning

programs are jointly administered by FTA and the Federal Highway Administration (FHWA), which provides additional funding. There are six changes noted below. These requirements will not go into effect until FTA and FHWA complete a rulemaking process and issue further guidance. The amendments to sections 5305 and 5304:

• Place new emphasis on intercity transportation, including intercity buses and intermodal facilities that support intercity transportation, and commuter vanpool providers; and

• Clarify the selection and role of the transit representation on Metropolitan Planning Organization (MPO) policy boards in large urbanized areas. MPOs in urbanized areas designated as transportation management areas must include officials of agencies that administer or operate major modes of transportation, as well as representatives of public transit operators, on MPO policy boards. The representative of public transit shall be selected according to the bylaws or enabling legislation of the MPO, and the representative of public transit may also serve as a representative of a local municipality on the MPO board. For additional information please reference the Policy Guidance on Metropolitan Planning Organization (MPO) Representation Published on July 2, 2014, at
http://www.fta.dot.gov/documents/Transit_Rep_Fed_Register.pdf.

• The scope of the planning process should improve the resiliency and reliability of the transportation system, in addition to the eight pre-existing goals established under MAP-21, and reduce the vulnerability of the existing transportation infrastructure to natural disasters.

• MPOs and State DOTs should provide public ports, intercity bus operators and employer-based commuting programs with a reasonable opportunity to comment on transportation plans.

• Place greater emphasis on the congestion management process. MPOs that serve transportation management areas shall develop a congestion management plan with input from employers, private and public transit providers, transportation management associations, and organizations that provide low-income individuals transportation access to jobs and job related services.

• The Statewide transportation plan must include a description of the performance measures and performance targets. State DOTs are also required to provide a system performance report evaluating the condition and performance of the transportation system.

In addition to changes in sections 5303 and 5304, FTA notes the Metropolitan and Statewide planning processes continue to emphasize a performance-based planning process: MPOs and State DOTs must establish performance targets that address forthcoming U.S. DOT-issued national performance measures that are based on the goals outlined in the legislation-safety, infrastructure condition, congestion reduction, system reliability, economic vitality, environmental sustainability, reduced project delivery delays, transit safety, and transit asset management. MPOs also must coordinate their performance targets, to the maximum extent practicable, with performance targets set by FTA grantees under the new performance measure requirements for safety and state of good repair. Transportation Improvement Programs (TIPs) must include a description of the anticipated progress toward achieving the performance targets resulting from implementation of the TIP. By October 1, 2017, the DOT is to provide Congress with a report evaluating the effectiveness of performance-based planning and assessing the technical capacity of MPOs in smaller areas to undertake performance-based planning.

2. Provision of Non-Fixed Route Paratransit Under ADA

The FAST Act amended the definition of capital projects relative to Americans with Disabilities Act (ADA) complementary paratransit services in 49 U.S.C. 5302. Specifically, grant recipients that are in compliance with applicable requirements of the ADA, including both fixed route and demand responsive service, may continue to expend up to 10 percent of the recipient's annual formula apportionment under sections 5307 and 5311 for ADA complementary paratransit service at an 80 percent Federal share. In addition, grant recipients may now expend up to 20 percent of the recipient's annual formula apportionment under sections 5307 and 5311 for ADA complementary paratransit service, at an 80 percent Federal share, if the recipient provides evidence to the applicable FTA Regional office that it meets at least two of the following requirements:

(1) Provides an active fixed-route travel training program that is available for riders with disabilities.

(2) Provides that all fixed route and paratransit operators participate in a passenger safety, disability awareness, and sensitivity training class on at least a biennial basis.

(3) Have memoranda of understanding in place with employers and the American Job Center to increase access to employment opportunities for people with disabilities.

Eligibility for using formula funds at an 80 percent Federal share for ADA service is contingent on compliance with ADA requirements for both fixed route and demand responsive service. FTA recipients must certify compliance with the ADA annually, and are subject to compliance review activities conducted by FTA to monitor compliance and correct deficiencies.

3. Buy America

The FAST Act amended the Buy America requirements to provide for a phased increase in the domestic content for rolling stock. For FY16 and FY17, the cost of components and subcomponents produced in the United States must be more than 60 percent of the cost of all components. For FY18 and FY19, the cost of components and subcomponents produced in the United States must be more than 65 percent of the cost of all components. For FY20 and beyond, the cost of components and subcomponents produced in the United States must be more than 75 percent of the cost of all components. There is no change to the requirement that final assembly of rolling stock must occur in the United States. FTA will be issuing guidance on the implementation of the phased increase in domestic content in the near future.

4. Leasing

The FAST Act amends the definition of Capital project in section 5302 to remove the requirement that leasing equipment or a facility for use in public transportation is subject to regulations limiting those leases to those that are more cost effective than purchase or construction. FTA will therefore no longer enforce 49 CFR part 639 Capital Leases. Recipients should therefore refer to leasing eligibility under 2 CFR part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, specifically part 200.465
Rental costs of real property and equipment.

Although the regulatory requirements are eliminated, section 3019 of the FAST Act requires all recipients of capital leases to submit to FTA, no later than 3 years after the date on which the lease was entered, a report evaluating the overall costs and benefits of leasing rolling stock and comparing the expected short-term and long-term

maintenance costs of leasing versus buying rolling stock.

Although already eligible under FTA's programs, section 3019 of the FAST Act emphasizes that power sources separately installed in and removed from a zero emission vehicle may be acquired through capital lease.

5. Project Management Oversight

The FAST Act amended the project management oversight statute, 49 U.S.C. 5327, to specify that FTA conduct a review of a grantee's compliance with its approved project management plan for a major capital project on a quarterly basis, rather than monthly, unless the grantee is not in compliance with the project management plan and the project is at risk of running over budget and behind schedule, in which case FTA may conduct more frequent reviews. Section 5327 also requires a grantee for a major capital project to submit quarterly updates of the project budget and schedule. These changes in oversight practice will apply to all major capital projects.

6. Incremental Costs of Art and Non-Functional Landscaping Prohibited

The FAST Act makes ineligible the incremental costs of incorporating art or non-functional landscaping into facilities, including the costs of an artist on a design team.

7. Use of Geographic Preferences in Hiring

Section 415 of Title IV of the FY2016 Consolidated Appropriations Act continues the provision in Section 418 of the Consolidated and Further Continuing Appropriations Act, 2015, Public Law 113-235 that FTA is prohibited from using appropriated funds for the year to implement, administer or enforce section 18.36(c)(2) of title 49, Code of Federal Regulations, for construction hiring purposes. Section 18.36(c)(2) prohibits the use of statutorily or administratively imposed in-State or local geographical preferences in the evaluation bids or proposals. The provisions of 49 CFR 18.36(c)(2) have been recodified in substantially similar form at 2 CFR 200.319(b). Although Congress did not address the change in codification in Section 415, FTA believes that Congress intended to apply section 415 to grants subject to 2 CFR 200.319(b). FTA will administer Section 415 in accordance with this intent.

Please note, however, that Section 192 of the FY2016 Consolidated Appropriations Act provides that FTA may assist a contract under title 49 of the United States Code that utilizes a geographic, economic, or any other hiring preference on a contract or construction project with which the Department of Transportation is assisting, only if the grant recipient certifies the following: (1) That except with respect to apprentices or trainees, a pool of readily available but unemployed individuals possessing the knowledge, skill, and ability to perform the work that the contract requires resides in the jurisdiction; (2) that the grant recipient will include appropriate provisions in its bid document ensuring that the contractor does not displace any of its existing employees in order to satisfy such hiring preference; and (3) that any increase in the cost of labor, training, or delays resulting from the use of such hiring preference does not delay or displace any transportation project in the applicable Statewide Transportation Improvement Program or Transportation Improvement Program. FTA will provide additional guidance on these provisions in the near future.

II. Program-Specific Information

A. Metropolitan Planning Program (49 U.S.C. 5303 and 5305(d))

Section 5305(d) authorizes Federal funding to support a cooperative, continuous, and comprehensive planning program for transportation investment decision-making at the metropolitan area level. The specific requirements of metropolitan transportation planning are set forth in 49 U.S.C. 5303 and further explained in 23 CFR part 450, as incorporated by reference in 49 CFR part 613, Statewide Transportation Planning; Metropolitan Transportation Planning. State Departments of Transportation (DOTs) are direct recipients of funds allocated by FTA, which are then sub-allocated to Metropolitan Planning Organizations (MPOs), for planning activities that support the economic vitality of the metropolitan area.

The metropolitan transportation planning process must establish a performance-based approach in which the MPO will develop specific performance targets that address transportation system performance measures (to be issued by U.S. DOT), where applicable, to use in tracking progress towards attaining critical outcomes. These performance targets will be established by MPO's in coordination with States and transit providers. MPOs will provide a system performance report that evaluates the progress of the MPO in meeting the performance targets in comparison with the system performance identified in prior reports.

This funding must support work elements and activities resulting in balanced and comprehensive intermodal transportation planning for the movement of people and goods in the metropolitan area. Comprehensive transportation planning is not limited to transit planning or surface transportation planning, but also encompasses the relationships among land use and all transportation modes, without regard to the programmatic source of Federal assistance. Eligible work elements or activities include, but are not limited to studies relating to management, mobility management, planning, operations, capital requirements, and economic feasibility; evaluation of previously funded projects; peer reviews and exchanges of technical data, information, assistance, and related activities in support of planning and environmental analysis among MPOs and other transportation planners; work elements and related activities preliminary to and in preparation for constructing, acquiring, or improving the operation of facilities and equipment; development of coordinated public transit human services transportation plans. An exhaustive list of eligible work activities is provided in FTA Circular 8100.1C,
Program Guidance for Metropolitan Planning and State Planning and Research Program Grants,
dated September 1, 2008. For more about the Metropolitan Planning Program,
contact Victor Austin, Office of Planning and Environment at (202) 366-2996 or victor.austin@dot.gov.

1. Authorized Amounts

The FAST Act authorizes $108.14 million in FY 2016, $110.35 million in FY 2017, $112.66 million in FY 2018, $115.05 million in FY 2019 and $117.49 million in FY 2020 to provide financial assistance for metropolitan planning needs under section 5305.

Fiscal year
2016
2017
2018
2019
2020

Funds Authorized

$108,141,510

$110,347,597

$112,664,897

$115,053,393

$117,492,524

The table above shows the funding amounts authorized for the Metropolitan Planning Program.

2. FY 2016 Funding Availability

In FY 2016, $108,141,510 is available for the period October 1, 2015 through September 30, 2016 to the Metropolitan Planning Program (section 5305(d)) to support metropolitan transportation planning activities set forth in section 5303. The total amount apportioned for the Metropolitan Planning Program to States for use by MPOs in urbanized areas (UZAs) is $107,600,802 as shown in the table below, after the deduction for oversight (authorized by section 5338).

Metropolitan Planning Program—FY 2016

Total Appropriation
$108,141,510

Oversight Deductions
(540,707)

Total Apportioned
107,600,803

3. Basis for Formula Apportionment

The FAST Act did not change the funding formula. Of the amounts authorized in section 5305, 82.72 percent is made available to the Metropolitan Planning program. Eighty percent of the funds are apportioned on a statutory basis to the States based on the most recent decennial Census for each State's UZA population. The remaining 20 percent is provided to the States based on an FTA administrative formula to address planning needs in larger, more complex UZAs. The amount published for each State includes the supplemental allocation.

4. Requirements

The State allocates Metropolitan Planning funds to MPOs in UZAs or portions thereof to provide funds for planning projects included in a one or two-year program of planning work activities (the Unified Planning Work Program, or UPWP) that includes multimodal systems planning activities spanning both highway and transit planning topics. Each State has either reaffirmed or developed, in consultation with their MPOs, an allocation formula among MPOs within the State, based on the 2010 Census. The allocation formula among MPOs in each State may be changed annually, but any change requires approval by the FTA Regional Office before grant approval. Program guidance for the Metropolitan Planning Program is found in FTA Circular 8100.1C,
Program Guidance for Metropolitan Planning and State Planning and Research Program Grants,
dated September 1, 2008.

5. Period of Availability

The Metropolitan Planning program funds apportioned in this notice are available for obligation during FY 2016 plus three additional fiscal years. Accordingly, funds apportioned in FY 2016 must be obligated in grants by September 30, 2019. Any FY 2016 apportioned funds that remain unobligated at the close of business on September 30, 2019, will revert to FTA for reapportionment under the Metropolitan Planning program.

B. State Planning and Research Program (49 U.S.C. 5304 and 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. State DOTs are required to reference performance measures and performance targets within the Statewide Planning process. This funding must support work elements and activities resulting in balanced and comprehensive intermodal transportation planning for the movement of people and goods. Comprehensive transportation planning is not limited to transit planning or surface transportation planning, but also encompasses the relationships among land use and all transportation modes, without regard to the programmatic source of Federal assistance. For more information, contact
Victor Austin, Office of Planning and Environment at (202) 366-2996 or victor.austin@dot.gov
.

1. Authorized Amounts

FAST authorizes $22,590,490 in FY 2016, $23,051,336 in FY 2017, $23,535,414 in FY 2018, $24,034,364 in FY 2019 and $24,543,893 in FY 2020 to provide financial assistance for statewide planning and other technical assistance activities under section 5305. As specified in law, this represents the 17.28 percent of the amounts authorized for section 5305 that are allocated to the Statewide Planning and Research program, as shown below.

Fiscal year
2016
2017
2018
2019
2020

Funds Authorized
$22,590,490
$23,051,336
$23,535,414
$24,034,364
$24,543,893

2. FY 2016 Funding Availability

In FY 2016, $22,590,490 is available for the period October 1, 2015 through September 30, 2016 to the State Planning and Research Program (section 5305(e)). The total amount apportioned for the State Planning and Research Program (SPRP) is $22,477,537 as shown in the table below, after the deduction for oversight (authorized by section 5338).

Statewide Planning Program—FY 2016

Total Appropriation
$22,590,490

Oversight Deductions
(112,953)

Total Apportioned
22,477,537

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

3. Basis for Formula Apportionment

The FAST Act did not change the funding formula. Of the amount authorized in section 5305, 17.28 percent is allocated to the State Planning and Research program. FTA apportions funds to States by a statutory formula that is based on the most recent decennial Census data available, and the State's UZA population as compared to the UZA population of all States.

4. Requirements

Funds are provided to States for Statewide transportation planning programs. These funds may be used for a variety of purposes such as planning, technical studies and assistance, demonstrations, and management training. In addition, a State may authorize a portion of these funds to be used to supplement Metropolitan Planning funds allocated by the State to its UZAs, as the State deems appropriate. Program guidance for the State Planning and Research program is found in FTA Circular 8100.1C,
Program Guidance for Metropolitan Planning and State Planning and Research Program Grants,
dated September 1, 2008.

5. Period of Availability

The State Planning and Research program funds apportioned in this notice are available for obligation during FY 2016 plus three additional fiscal years. Accordingly, funds apportioned in FY 2016 must be obligated in grants by September 30, 2019. Any FY 2016 apportioned funds that remain unobligated at the close of business on September 30, 2019 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. Program funds are apportioned to urbanized areas through a statutory formula. In addition, $30 million is allocated each year under this program to passenger ferry projects through a discretionary funding competition.

For more information about the Urbanized Area Formula Program, contact
Tara Clark, Office of Transit Programs, at (202) 366-2623 or tara.clark@dot.gov.

1. Authorized Amounts

The FAST Act authorizes $4,538,905,700 in FY 2016, $4,629,683,814 in FY 2017, $4,726,907,174 in FY 2018, $4,827,117,606 in FY 2019 and $4,929,452,499 in FY 2020 to provide financial assistance for urbanized areas under section 5307. Of the amount authorized and appropriated for section 5307 in each year, $30 million is set aside for the competitive discretionary Passenger Ferry Grant Program, 0.5 percent will be apportioned to eligible States for State Safety Oversight (SSO) Program grants, and 0.75 percent will be set aside for program oversight.

Further information on the Passenger Ferry Discretionary Program is provided in section III of this notice. Further information on the 0.5 percent apportionment to States for the State Safety Oversight Program is provided in section IV.N. of this notice.

Fiscal year
2016
2017
2018
2019
2020

Funds Authorized
$4,538,905,700
$4,629,683,814
$4,726,907,174
$4,827,117,606
$4,929,452,499

2. FY 2016 Funding Availability

A total of $4,538,905,700 is available for the section 5307 program for FY 2016. The total amount apportioned to urbanized areas is $4,911,077,833 which includes the addition of amounts apportioned to UZAs pursuant to the Section 5340 Growing States and High Density States Formula factors. This amount excludes the set-aside for the Passenger Ferry Discretionary Program, apportionments under the State Safety Oversight Program, and oversight (authorized by section 5338), as shown in the table below:

Urbanized Area Formula Program—FY 2016

Total Appropriation

a
$4,538,905,700

Oversight Deduction
(34,041,793)

Ferry Discretionary Program
(30,000,000)

State Safety Oversight Program
(22,694,529)

Section 5340 High Density States
263,964,457

Section 5340 Growing States
194,943,998

Total Apportioned
4,911,077,833

a
Includes 1.5 percent set-aside for Small Transit Intensive Cities Formula.

Table 3 displays the amounts apportioned under the Urbanized Area Formula Program.

3. Basis for Formula Apportionment

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.

The FAST Act did not make changes to the apportionment formula for FY 2016 through 2018. Section 5336(h) states that 3.07 percent of section 5307 funds available are for apportionment are allocated on the basis of low-income persons residing in urbanized areas, with 25 percent of these funds allocated to areas below 200,000 in population and the remaining 75 percent allocated to areas 200,000 and over in population. The percentage of funds allocated on the basis of Small Transit Intensive Cities (STIC) factor remains 1.5 percent. However, the STIC factor will increase to 2.0 percent in FY 2019. Finally, The 0.5 percent takedown for State Safety Oversight grant program still applies.

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.

a. 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 2016 apportionment, FTA used population and population density statistics from the 2010 Census and validated mileage and transit service data from transit providers' 2014 National Transit Database (NTD) Report Year (when applicable). Consistent with section 5336(b), FTA has included 27 percent of the fixed guideway directional route miles and vehicle revenue miles from eligible urbanized area transit systems, but which were attributable to rural areas outside of the urbanized areas from which the system receives funds. FTA has calculated dollar unit values for the formula factors used in the Urbanized Area Formula Program apportionment calculations. These values represent the amount of money each unit of a factor is worth in this year's apportionment. The unit values change each year, based on all of the data used to calculate the apportionments, as well as the amount appropriated by Congress for the apportionment. The dollar unit values for FY 2016 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).

b. Small Transit Intensive Cities Formula

Under the STIC formula, FTA apportions 1.5% of the funds made available for section 5307 to UZAs that are under 200,000 in population and have public transportation service that operates at a level equal to or above the industry average for 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. In FY 2019, the STIC set aside will increase from 1.5% to 2%.

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 2014 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 2016 are listed in Table 6.

c. Section 5340—Growing States and High Density States Formula

FTA also apportions funds to qualifying UZAs and States according to the section 5340 Growing States and High Density States formula, as shown in Table 3. For fiscal year 2016 FTA apportions $194,943,998 to UZAs in Growing States and $263,964,457 to UZAs in High Density States. More information on this program and its formula is found in section IV.P. of this notice.

d. Low-Income Population

The FAST Act does not change the 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. A total of $139,344,405 has been apportioned to UZAs based on this formula for FY 2016, as described below.

As specified in statute, FTA apportions 75 percent of the available funds to UZAs with a population of 200,000 or more. Funds are apportioned based on the ratio of the number of low income individuals in each UZA to the total number of low income individuals in all urbanized areas of that size. FTA apportions the remainder of the funds (25 percent) to UZAs with populations of less than 200,000, according to an equivalent formula. The low income populations used for this calculation were based on the American Community Survey (ACS) data set for 2009-2013. This information is updated by the Census Bureau annually.

4. Eligible Expenses

Eligible activities include planning, engineering design and evaluation of transit projects and other technical transportation-related studies; capital investments in bus and bus-related activities such as replacement of buses, overhaul and rebuilding of buses; crime prevention and security equipment; construction of maintenance and passenger facilities; and capital investments in new and existing fixed guideway systems including rolling stock, overhaul and rebuilding of vehicles, track, signals, communications, and computer hardware and software. All preventive maintenance and some Americans with Disabilities Act complementary paratransit service costs are considered capital costs. For urbanized areas with populations less than 200,000, operating assistance is an eligible expense. In areas over 200,000 in population, operating assistance is an eligible expense if the special rule (100 Bus Rule) at 49 U.S.C. 5307(a)(2) applies. Job Access and Reverse Commute activities remain eligible under the program.

In addition, recipients may now use up to one-half of one percent of their section 5307 funds to support workforce development activities at an 80 percent Federal share; the eligible workforce development activities are defined in section 5314; see Section IV.K. of this notice for more information. This provision is new in section 5314 and is in addition to the one-half of one percent that recipients may use for training activities with the National Transit Institute.

5. 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 section 5307 Web page. FTA is in the process of updating the program circular to incorporate changes resulting from FAST Act amendments to 49 U.S.C. 5307.

Key program requirements and changes that apply to all programs are addressed in section III.D. of this notice, “Cross-Cutting Programmatic Requirements and Changes.” The following subsections outline several important program requirements and changes that apply specifically to the Urbanized Area Formula Program.

In FY 2016, FTA will apportion funds to a new large UZA for which a designated recipient has not yet been selected. These funds will become available for grants once FTA has received documentation of the selection of a designated recipient (for the Lake Tahoe UZA identified in section 5303(r) Bi-State Metropolitan Planning Organization).

6. Period of Availability

Funds made available under Section 5307 are available for obligation during the year of apportionment plus five additional years. This is unchanged under the FAST Act. Accordingly, funds apportioned in FY 2016 must be obligated in grants by September 30, 2021. Any FY 2016 apportioned funds that remain unobligated at the close of business on September 30, 2021 will revert to FTA for reapportionment under the Urbanized Area Formula Program.

Funds allocated under the Passenger Ferry discretionary program follow the same period of availability as section 5307. Accordingly, funds allocated in FY 2016 must be obligated in grants by September 30, 2021. Any of the funds allocated in FY 2016 that remain unobligated at the close of business on September 30, 2021 will revert to FTA for reallocation under the Passenger Ferry program.

7. What's New and Other Program Highlights

a. Special Rule for Operating Assistance in Large Urbanized Areas

The FAST Act amended the special rule at 49 U.S.C. 5307(a)(2) to add demand response service. The special rule allows recipients in urbanized areas with populations of 200,000 or above and those that operate 100 or fewer buses in fixed route service or demand response, excluding ADA complementary paratransit service, during peak hours, to receive a grant for operating assistance subject to a maximum amount per system as explained below:

i. Public transportation systems that operate a minimum of 76 buses and a maximum of 100 buses in fixed route

service or demand response, excluding ADA complementary paratransit service, during peak service hours may receive operating assistance in an amount not to exceed 50 percent of the share of the apportionment that is attributable to such systems within the urbanized area, as measured by vehicle revenue hours.

ii. Public transportation systems that operate 75 or fewer buses in fixed route service or demand response, excluding ADA complementary paratransit service, during peak service hours may receive operating assistance in an amount not to exceed 75 percent of the share of the apportionment that is attributable to such systems within the urbanized area, as measured by vehicle revenue hours.

iii. A list of eligible recipients and their maximum operating assistance amounts for FY 2016 is shown in Table 3-A. FTA identified the systems eligible to use this provision and their maximum amounts for FY 2016 using data from the NTD for reporting year 2014. Operating assistance requires a 50 percent local match.

In accordance with section 5307(a)(2), FTA has calculated a fixed annual cap on operating assistance for each eligible agency that provides service in a large UZA. The cap is determined by dividing the UZA's apportionment by the total number of vehicle revenue hours reported from all public transportation operators and from all transit modes in the UZA, and then by multiplying this quotient by the number of bus vehicle revenue hours operated in the UZA by the eligible system. The result is the proportional share of the apportionment that is attributable to the qualifying system, as measured by vehicle revenue hours. This cap is calculated based on the FY 2016 apportionment for an eligible provider's UZA. Eligible systems operating in more than one UZA over 200,000 in population will receive separate operating caps from each UZA in which the system operates. The FY 2016 Apportionment Table 3A includes all eligible general public demand response operators.

In determining the amount of operating assistance available for specific systems in urbanized areas under the Special Rule, public transportation systems may execute a written agreement with one or more other public transportation systems within the urbanized area to allocate funds by a method other than by measuring vehicle revenue hours. Systems within the urbanized area may combine their individual operating assistance caps and allocate the combined funds using a method that is agreed upon by all of the systems. The method used should be documented in a written agreement, signed by all parties, and transmitted to FTA as a part of the split letter.

b. Equipment and Facilities Maintenance

Section 5307(c) is amended to require recipients to maintain equipment and facilities in accordance with the recipient's transit asset management plan.

c. Associated Transit Improvements

Designated recipients in UZAs with populations of 200,000 or more are no longer required to expend not less than one percent of the section 5307 funds apportioned to the UZA be set aside for associated transit improvements. Designated recipients must still submit an annual report listing projects carried out in the preceding year with these funds as part of the Federal fiscal year's final quarterly progress report in TrAMS. The report should include the following elements: (1) Grantee name; (2) UZA name and number; (3) FTA project number; (4) associated transit improvement category; (5) brief description of improvement and progress towards project implementation; (6) activity line item code from the approved budget; and (7) amount awarded by FTA for the project. The list of associated transit improvement categories and activity line item (ALI) codes may be found in the table of Scope and ALI codes in TrAMS.

It is the responsibility of the recipients in a UZA to identify associated transit improvement projects that will receive funding from the Urbanized Area Formula Program.

d. Increased Cap on Spending for ADA Paratransit Service

As under previous authorizations, recipients that are in compliance with the requirements of the ADA may use 10 percent of their annual formula apportionment for ADA paratransit service, funded at an 80 percent Federal share. The FAST Act increases the spending cap for ADA paratransit service to 20 percent of a recipient's annual formula apportionment under certain conditions. See sections III.D. and V.D for more information on this provision.

e. Eligibility for Safety Certification Training

Effective May 2015, FTA established an Interim Safety Certification Training Program. Recipients of section 5307 funds are permitted to use not more than 0.5 percent of their formula funds under the Urbanized Area Formula Program to pay not more than eighty percent of the cost of participation for an employee who is directly responsible for safety oversight to participate in public transportation safety certification training. The interim program will remain in place until the effective date of the final rule. FTA published a Notice of Proposed Rulemaking (NPRM) for this program on December 3, 2015. Comments were due on February 1, 2016.

D. Fixed Guideway Capital Investment Grant Program (49 U.S.C. 5309)

The Capital Investment Grant (CIG) Program includes four types of eligible projects—New Starts projects, Small Starts projects, Core Capacity Improvement projects, and Programs of Interrelated Projects. Funding is provided for construction of: (1) New fixed guideway systems or extensions to existing fixed guideway systems such as rapid rail (heavy rail), commuter rail, light rail, trolleybus (using overhead catenary), cable car, passenger ferries, and bus rapid transit operating on an exclusive transit lane for the majority of the corridor length that also includes 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 service for a substantial part of weekdays and weekends; (2) corridor-based bus rapid transit service that does not operate on an exclusive transit lane but includes 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; (3) projects that expand the capacity by at least 10 percent of an existing fixed guideway corridor that is at capacity today or will be in five years; and (4) programs of two or more projects as described above that have logical connectivity with one another and will all begin construction in a reasonable timeframe.

Projects become candidates for funding under the Capital Investment Grant 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. For

Programs of Interrelated Projects, the steps in the process depend on the combination of project types included. 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 an expedited grant agreement that defines the scope of the project and specifies the Federal commitment to the project.

For more information about the Capital Investment Grant program contact Elizabeth Day, Office of Capital Project Development, at (202) 366-5159 or
elizabeth.day@dot.gov
. For information about published allocations contact Eric Hu, Office of Transit Programs, at (202) 366-0870 or
eric.hu@dot.gov.

1. Authorized Amounts

The FAST Act authorizes $2,301,785,760 for FY 2016 through FY 2020 for the Capital Investment Grant program.

Fiscal year
2016
2017
2018
2019
2020

Funds Authorized
$2,301,785,760
$2,301,785,760
$2,301,785,760
$2,301,785,760
$2,301,785,760

2. FY 2016 Funding Availability

Although the program is authorized at $2,301,785,760 for FY 2016, the Appropriations Act makes $2,177,000,000 available for the section 5309 program for FY 2016. After the oversight deduction, $2,155,230,000 is available for eligible projects under the program.

Name of Program—FY 2016

Total Appropriation
$2,177,000,000

Oversight Deduction
(21,770,000)

Total Apportioned
2,155,230,000

3. Basis for Allocation

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

4. Eligible Expenses

See beginning of section D above.

5. Requirements

FTA will be completing a rulemaking and interim policy guidance documents for the Capital Investment Grant program to implement the changes made in FAST. Project sponsors should reference the FTA Web site at
www.fta.dot.gov
for the most current Capital Investment Grant program policy guidance to learn what is required to enter and advance through the program. Grant-related guidance is found in FTA Circular 9300.1B, Capital Investment Grant 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 the FAST Act.

6. Period of Availability

The FAST Act shortened the period of availability for section 5309 capital investment grant program funds from five years to four years, which is the fiscal year in which the amount is made available plus three additional years. Therefore, funds for a project identified in FY 2016 must be obligated for the project by September 30, 2019. Section 5309 funds that remain unobligated after four fiscal years to the projects for which they were originally designated may be made available for other section 5309 projects.

7. What's New and Other Program Highlights

a. New Starts and Core Capacity

The FAST Act amended the Capital Investment Grant Program (CIG) by changing slightly the eligibility parameters for New and Small Starts projects as described below, allowing joint intercity rail/public transportation projects to be eligible, limiting the maximum CIG share for New Starts projects to 60 percent, and clarifying how Programs of Interrelated Projects are to be evaluated and rated.

Under 49 U.S.C. 5309, as amended by the FAST Act, New Starts projects are defined as projects with a total capital cost of $300 million or greater or that are seeking $100 million or more in section 5309 funding. Previously, these thresholds were $250 million and $75 million respectively. Eligible New Starts projects are new fixed-guideway systems, such as rapid rail (heavy rail), commuter rail, light rail, streetcars, trolleybus (using overhead catenary), cable car, passenger ferries, and fixed guideway bus rapid transit, or an extension of any of these systems. Fixed guideway bus rapid transit is defined as operating on an exclusive transit lane for the majority of the corridor length and that also includes 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 service for a substantial part of weekdays and weekends.

Small Starts projects are defined as projects with a total capital cost less than $300 million and that are seeking less than $100 million in section 5309 funding. Previously, these thresholds were $250 million and $75 million respectively. Eligible Small Starts projects are those mentioned for the New Starts program, as well as corridor-based bus rapid transit projects that do not operate on a separated fixed guideway but include features that emulate the services provided by rail fixed guideway including defined stations, traffic signal priority for public transit vehicles, and short headway bi-directional services for a substantial part of weekdays. The previous authorization also required substantial, bi-directional service on weekends for corridor-based bus rapid transit projects but the FAST Act amended 49 U.S.C. 5309 to remove that requirement.

Core Capacity Improvement projects are defined as substantial, corridor-based investments in existing fixed guideway systems that are at capacity today or will be in five years. A Core Capacity Improvement project must increase the capacity of the existing fixed guideway system in the corridor by at least 10 percent. Core Capacity projects cannot include elements designed to maintain a state of good repair. This was not changed from the eligibility under MAP-21.

Additionally, the FAST Act amends section 5309 to define a Program of Interrelated Projects as the simultaneous development of two or more New Starts projects, Small Starts projects, or Core Capacity projects or any combination thereof. The projects in the Program must have logical connectivity to one another and construction must begin on the projects in the Program in a reasonable timeframe. Programs of Interrelated Projects may also include non-federally funded projects, which can count as match toward the overall Program. FTA is required to evaluate and rate a Program of Interrelated Projects as a whole rather than rating the individual projects in the Program. The FAST Act amended the evaluation

criteria in 49 U.S.C. 5309(i) that FTA must use when developing the ratings, indicating that if the Program of Interrelated Projects includes a combination of project types, the New Starts criteria should be used. Annually FTA must review the Program of Interrelated Projects to ensure it is adhering to its schedule.

The number of steps in the process for projects has not changed. 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. FTA must evaluate and rate projects seeking section 5309 funding according to statutorily defined criteria at various steps in the process. There is a new provision that allows for an optional early rating for Small Starts projects after the completion of the National Environmental Policy Act (NEPA). FTA will implement amendments to 49 U.S.C. 5309 through rule-making and future policy guidance, which will be developed through a notice and comment process.

b. Expedited Project Delivery for Capital Investment Grants Pilot Program

The FAST Act repealed the pilot program with a similar name authorized under MAP-21 and replaced it with this new pilot program at section 3005(b) of the Fast Act. Eligible projects for the pilot program include New Starts, Small Starts, or Core Capacity improvement projects that have not yet received a full funding grant agreement. However the definitions of New Starts, Small Starts, and Core Capacity differ slightly from those used in the Capital Investment Grant program.

A New Starts project under the pilot program is defined as a project with a total capital cost of $300 million or greater or that is seeking $75 million or more in funding from the pilot program. A Small Starts project under the pilot program is defined as a project with a total capital cost less than $300 million and that is seeking less than $75 million in funding from the pilot program. A Core Capacity Improvement project under the pilot program is defined as a substantial, corridor-based investment in an existing fixed guideway system that is at capacity today or will be in five years. The Core Capacity Improvement project must increase the capacity of the existing fixed guideway system in the corridor by at least 10 percent. It can include elements designed to maintain a state of good repair.

The FAST Act allows for up to eight projects to be selected for the pilot program. Projects must be supported at least in part through a public-private partnership, but must be operated and maintained by employees of an existing provider of fixed guideway or bus rapid transit services in the area. The maximum Federal funding provided to projects selected for the pilot program is 25 percent.

The FAST Act also requires that FTA determine a proposed pilot project is justified based on its mobility improvements, environmental benefits, congestion relief, economic development effects, and estimated ridership and that it is supported by an acceptable degree of local financial commitment. FTA will publish guidance in a future
Federal Register
notice describing the process for project sponsors to apply to FTA for consideration as a pilot project.

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 apportioned to direct recipients: States for rural (under 50,000) and small urban areas (50,000-200,000); and designated recipients chosen by the Governor of the State for large urban areas (populations of 200,000 or more); or a State or local governmental entity that operates a public transportation service. The 5310 program provides capital and operating assistance for improving the mobility for seniors and individuals with disabilities by removing barriers to transportation service and expanding transportation mobility options. This program supports transportation services planned, designed, and carried out to meet the special transportation needs of seniors and individuals with disabilities in all areas.

This program provides funds to: (1) Serve the special needs of transit-dependent populations beyond traditional public transportation service, where public transportation is insufficient, inappropriate, or unavailable; (2) projects that exceed the requirements of the Americans with Disabilities Act (ADA); (3) project that improve access to fixed route service and decrease reliance on complementary paratransit; and (4) projects that are alternatives to public transportation. For more information about the section 5310 program, contact
Danielle Nelson, Office of Transit Programs, at (202) 366-2160 or Danielle.Nelson@dot.gov.

1. Authorized Amounts

The FAST Act authorizes $264,949,400 in FY 2016, $271,208,388 in FY 2017, $277,090,764 in FY 2018, $283,146,188 in FY 2019 and $289,074,688 in FY 2020 for the Enhanced Mobility of Seniors and Individuals with Disabilities formula program. These amounts include funding for the discretionary pilot program as shown below.

Fiscal year
2016
2017
2018
2019
2020

5310 Formula Grants
$262,949,400
$268,208,388
$273,840,764
$279,646,188
$285,574,688

Discretionary Pilot Program
2,000,000
3,000,000
3,250,000
3,500,000
3,500,000

5310 Total
264,949,400
271,208,388
277,090,764
283,146,188
289,074,688

2. FY 2016 Funding Availability

In FY 2016, $262,949,400 is available for formula funding and $2,000,000 for the discretionary pilot program. Total available funding for the section 5310 Program for FY 2016 is $263,634,653 after the oversight deduction as shown in the table below.

Section 5310 Formula Program—FY 2016

Total Appropriation
$262,949,400

Oversight Deductions (oversight 0.5%)
(1,314,747)

Total Apportioned
261,634,653

Discretionary Pilot Program
2,000,000

Total Apportioned
263,634,653

3. Basis for Formula Apportionment

Sixty percent of the funds are apportioned among designated recipients for urbanized areas with a population of 200,000 or more

individuals. Twenty percent of the funds are apportioned among the States for their urbanized areas with a population of at least 50,000 but less than 200,000. Twenty percent of the funds are apportioned among the States for their rural areas, areas with a population less than 50,000. Census Data on Older Adults and People with Disabilities is used for the Section 5310 Enhanced Mobility of Older Adults and People with Disabilities Apportionments. To view the Section 5310 table which displays the amounts apportioned under the Enhanced Mobility of Seniors and Individuals with Disabilities Program click here:
http://www.fta.dot.gov/12853_13935.html
.

Under the section 5310 formula, funds are allocated using Census data on seniors (
i.e.,
persons 65 and older) and people with disabilities. However, beginning in 2010, the Census Bureau stopped collecting this demographic information on as part of its decennial census. Data on seniors and people with disabilities is now only available from the American Community Survey (ACS), which is conducted and published on a rolling basis. FTA's FY 2016 section 5310 apportionments incorporate ACS data published in December 2014. Data on seniors comes from the ACS 2009-2013 five-year data set, Table B01001, “Sex by Age”. Data on persons with disabilities comes from the ACS 2009-2013 five-year data set, Table S.1810, “Disability Characteristics.”

4. Eligible Expenses

At least 55 percent of program funds must be used on capital or “traditional” 5310 project such as buses and vans; wheelchair lifts, ramps, and securement devices; transit-related information technology systems including scheduling/routing/one-call systems; and mobility management programs. The acquisition of transportation services under a contract, lease, or other arrangement is also eligible. Both capital and operating costs associated with contracted service are eligible capital expenses. User-side subsidies are considered one form of eligible arrangement. Funds may be requested for contracted services covering a time period of more than one year. The capital eligibility of acquisition of services is limited to the section 5310 program.

The remaining 45 percent is for additional “traditional” and other “nontraditional” projects. This includes projects eligible under the former 5317 New Freedom program, described as: Capital and operating expenses for new public transportation services and alternatives beyond those required by the ADA, designed to assist individuals with disabilities and seniors.

5. Requirements

a. Eligible Recipients

Eligible recipients include States for rural and small urban areas and designated recipients chosen by the Governor of the State for large urban areas; or a State or local governmental entity that operates a public transportation service. For urbanized areas less than 200,000 in population and in the rural areas, the State is the designated recipient for section 5310. Current section 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 urbanized areas over 200,000 in population, the recipient charged with administering the section 5310 Program must be officially designated in accordance with the planning process, by the Governor of a State, responsible local officials, and publicly owned operators of public transportation prior to grant award (See definition of designated recipient, 49 U.S.C. 5302(4)). 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; and ensuring that all subrecipients comply with Federal requirements.

Although FTA will only award grants to the eligible recipients for the program, there are other entities eligible to receive funding as subrecipients. These include private nonprofit agencies, public bodies approved by the state to coordinate services for seniors and people with disabilities, or public bodies which certify to the Governor that no nonprofit organizations or associations are readily available in an area to provide the service.

b. 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. Funds provided under other Federal programs (other than those of the DOT, 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 for funds provided under section 5310, and revenue from service contracts may be used as local match.

c. Planning and Consultation

The coordinated planning provision requires that all projects be included in the local coordinated human service-public transportation plan.

FTA requires the following elements, at a minimum, be included in the plans:

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

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

iii. 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,

iv. 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 adopted with representation from seniors, individuals with disabilities, representatives of public, private, nonprofit transportation and human services providers, and other members of the public. Recipients must certify that projects were selected from this process and must make reference to the plan in the program of projects, which is described below.

d. State and Project Management Plans

FTA will continue to require States, designated recipients, and State or local governmental entities that operate a public transportation service who are responsible for implementing the section 5310 program to document their approach to managing the program. 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.

e. 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 9070.1G,
Enhanced Mobility of Seniors and Individuals with Disabilities Program Guidance and Application Instructions,
dated July 7, 2014.

6. 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 2016 must be obligated in grants by September 30, 2018. Any FY 2016 apportioned funds that remain unobligated at the close of business on September 30, 2018 will revert to FTA for reapportionment among the States and urbanized areas.

7. What's New and Other Program Highlights

Under the FAST Act, 49 U.S.C. 5310(a) is amended to allow a State or local governmental entity that operates a public transportation service and is eligible to receive direct grants under 5311 or 5307 to be a direct recipient for Section 5310 funds.

The FAST Act amends Section 5310 to require FTA to collect best practices for dissemination to the public transportation industry related to innovation, program models, new service delivery options, performance measure findings, and transit cooperative research program reports. FTA will undertake these activities through the National Aging and Disability Transportation Center (NADTC).

Recipients may continue to use a competitive selection process to select projects, but it is not required. A State may transfer apportioned funds between small urbanized areas and 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 (rural and small urbanized area) to any area within the state if a statewide program for section 5310 is established. There are no administrative or statutory provisions to permit transferring section 5310 funds to other FTA programs nor is there a provision for large urbanized areas to transfer their funds to the State.

Section 5310 program recipients may continue to partner with meal delivery programs such as the OAA-funded meal programs (to find local programs, visit:
www.Eldercare.gov
) and the USDA Summer Food Service Program
http://www.fns.usda.gov/sfsp/summer-food-service-program-sfsp
. Transit service providers receiving 5310 funds may coordinate and assist in providing meal delivery services on a regular basis as long as this does not conflict with the provision of transit services.

Program Guidance is found in FTA Circular 9070.1G, Enhanced Mobility of Seniors and Individuals with Disabilities Program Guidance and Application Instructions, dated July 7, 2014. FTA is in the process of updating the program circular to incorporate changes resulting from the FAST Act.

Section 3006(b) of the FAST Act creates a new discretionary pilot program for innovative coordinated access and mobility that is discussed in section III of this notice. The Federal share is 80% for capital projects and 50% for operating assistance. Match can come from other Federal (non-DOT) funds. A report will be made available by December 31 of each year on the pilot program. The report will include a detailed description of the activities carried out under the pilot program, and an evaluation of the program, including an evaluation of the performance measures.

In addition, Section 3006(c) of the FAST Act includes Coordinated Mobility, which requires that FTA implement recommendations made by the Interagency Transportation Coordination Council on Access and Mobility (CCAM) 2005 Report to the President relating to the implementation of Executive Order No. 13330 (49 U.S.C. 101) including publishing an updated strategic plan and developing a cost-sharing policy. The cost-sharing policy must be developed in compliance with applicable Federal laws for use by grantees of Federal programs funded by members of the CCAM. The cost allocation model developed under this section will facilitate local coordination efforts and include: Eligibility requirements; service delivery requirements; and reimbursement requirements.

F. Formula Grants for Rural Areas 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. 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. For more information about the Formula Grants for Rural Areas program, contact
Marianne Stock, Office of Transit Programs, at (202) 366-2677 or Marianne.stock@dot.gov.

1. Authorized Amounts

The FAST Act authorizes $619,956,600 in FY 2016, $632,355,120 in FY2017, $645,634,578 in FY2018, $659,322,031 in FY2019, and $673,299,658 in 2020 to provide financial assistance for rural areas under section 5311.

Fiscal year
2016
2017
2018
2019
2020

Funds Authorized
$619,956,000
$632,355,120
$645,634,578
$659,322,031
$673,299,658

In addition to the funds made available to States under section 5311, approximately 16 percent of the funds authorized for the new section 5340 Growing States and High Density States formula factors will be apportioned to States for use in rural areas.

Funding for oversight, the Rural Transportation Assistance Program (RTAP), Tribal Transit Program, and the Appalachian Development Public Transportation Assistance Program will be deducted before amounts are apportioned to the States.

2. FY 2016 Funding Availability

In FY 2016, $619,956,000 is available for the section 5311 program for the period October 1, 2015 through September 30, 2016.

Formula Grants for Rural Areas Program—FY 2016

Total Appropriation
$619,956,000

Oversight Deductions
(3,099,780)

RTAP Takedown
(12,399,120)

Tribal Takedown
(35,000,000)

Appalachian Takedown
(20,000,000)

Section 5340 Growing States
77,353,084

Total Apportioned
626,810,184

Table 12 displays the amounts apportioned to the States under the Formula Grants for Rural Areas Program.

3. Basis for Formula Apportionment

The FAST Act made no changes to the formula for the Rural Areas Program. FTA apportions section 5311 funds to the states by a statutory formula using the latest available U.S. decennial census data. 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 individuals factors. 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. Before FTA apportions Section 5311 funds to the states, FTA subtracts funding from the total available amounts for the Appalachian Development Transportation Assistance Program, the Tribal Transit Program, the Rural Transportation Assistance Program (RTAP), and FTA oversight activities.

Data from the Rural Module of the National Transit Database (NTD) 2014 Report Year was used for this apportionment, including data from directly-reporting Indian tribes. Data from public transportation systems that reported to the Annual (Urbanized Area) Module, and that was not attributable to an urbanized area, was also included. The section 5311 program includes three takedowns: The Appalachian Development Public Transportation Assistance Program; the Rural Transit Assistance Program (RTAP); and the Tribal Transit Program. These separate programs are described in the sections that follow.

4. Eligible Expenses

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 under 50,000 in population. 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. Job access and reverse commute projects are also eligible under this program.

a. Intercity Bus Transportation

Each State must continue to spend no less than 15 percent of its annual Rural Areas Formula apportionment for the development and support of intercity bus transportation, unless it can certify, after consultation with affected intercity bus service providers, that the intercity bus service needs of the State are adequately being met. FTA continues to encourage consultation with other stakeholders, such as communities affected by loss of intercity service. The FAST Act amended the intercity bus service match requirement in 49 U.S.C. 5311(g)(3) and now allows the cost of an unsubsidized portion of privately provided intercity bus service that connects feeder service, including all operating and capital costs of such service whether or not offset by revenue from such service to be used as in-kind local match for the intercity bus projects. FTA will update the Section 5311program circular to include this change.

b. State Administration

The FAST Act did not change the amount available to States for administration, planning, and technical assistance. States may elect to use up to 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.

c. Eligibility for Safety Certification Training

Recipients of section 5311 funds are permitted to use not more than 0.5 percent of their formula funds under the Rural Areas program to pay not more than eighty percent of the cost of participation for an employee who is directly responsible for safety oversight to participate in public transportation safety certification training. Safety certification training program requirements are established in accordance with section 5329.

5. Requirements

The program requirements under this section are generally unchanged, with the exception of the cross-cutting requirements mentioned in section III.D. of this notice and specific subsections outlined below.

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. This is not changed under the current authorization.

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 9040.1G,
Formula Grants for Rural Areas: Program Guidance and Application Instructions,
dated October 24, 2014, and is supplemented by additional information and changes provided in this notice 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 FAST Act amendments to 49 U.S.C. 5311.

The following subsections outline several important program requirements and changes that apply specifically to the section 5311 program.

6. Period of Availability

Section 5311 funds remain available to states for obligation for three Federal fiscal years, beginning with the year of apportionment plus two additional years. The Rural Areas program funds apportioned in this notice are available for obligation during FY 2016 plus two additional years. Any FY 2016 apportioned funds that remain unobligated at the close of business on September 30, 2018 will revert to FTA for reapportionment under the Rural Areas program.

7. What's New and Other Program Highlights

Revenue from the sale of advertising and concessions may be used as local match. The capital and operating costs, with no revenue offset, of an unsubsidized portion of privately provided intercity bus service that connects feeder service can be used as in-kind local match for the intercity bus projects.

G. Rural Transportation Assistance Program (49 U.S.C. 5311(b)(3))

This program is not changed in the FAST Act and continues to provide 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 Rural Transportation Assistance Program (RTAP) contact
Marianne Stock, Office of Transit Programs, at (202) 366-2677 or

marianne.stock@dot.gov
.

1. Authorized Amounts

The Fast Act authorizes a two percent takedown from the funds appropriated for section 5311 for RTAP. Of this amount, 15 percent is reserved for the National RTAP program. The remainder is available for allocation to the States.

The Fast Act authorizes the following amounts to carry out this program for fiscal years 2016-2020.

Fiscal year
2016
2017
2018
2019
2020

Funds Authorized
$12,399,120
$12,647,102
$12,912,692
$13,186,441
$134,659,93

2. FY 2016 Funding Availability

In FY 2016, $12,399,120 is available for the section 5311 RTAP program. After the reservation for the National RTAP program, a total of $10,539,252 is available for allocation to the States, as shown in the table below.

Rural Transportation Assistance Program—FY 2016

Total Appropriation
$12,399,120

National RTAP
−1,859,868

Total Apportioned
10,539,252

Table 12 shows the FY 2016 RTAP allocations to the States.

3. Basis for Formula Apportionment

FTA will continue to allocate 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.

4. Eligible Expenses

Eligible expenses include 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.

5. 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.

6. Period of Availability

The section 5311 RTAP funds apportioned in this notice are available for obligation in FY 2016 plus two additional years, consistent with that established for the section 5311 program.

7. What's New and Other Program Highlights

The National RTAP project is administered by cooperative agreement and re-competed at five-year intervals. In July of 2014, FTA awarded a cooperative agreement to Neponset Valley Transportation Management Association to administer the National RTAP Program. 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.

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

This program continues 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 2013 Apportionments page. For more information about the Appalachian Development Public Transportation Assistance Program, contact
Marianne Stock, Office of Transit Programs, at (202) 366-2677 or

marianne.stock@dot.gov
.

1. Authorized Amounts

The FAST Act authorizes $20 million in each of FY 2016 through FY 2020 as a take-down under the section 5311 program to support public transportation in the Appalachian region.

Fiscal year
2016
2017
2018
2019
2010

Funds Authorized
$20,000,000
$20,000,000
$20,000,000
$20,000,000
$20,000,000

2. FY 2016 Funding Availability

A total of $20,000,000 is available for the Appalachian Development program for FY 2016, as shown below.

Appalachian Development Public Transportation Assistance Program—FY 2016

Total Appropriation
$20,000,000

Total Apportioned
20,000,000

3. Basis for Formula Apportionment

FTA apportions the funds using percentages established under section 9.5(b) of the Appalachian Regional Commission Code (subtitle IV of title 40). Allocations are 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 are produced at approximate five year intervals. Allocations contain upper and lower limits in amounts determined by the Commission and are made in accordance with legislative instructions.

4. 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.

Appalachian program funds that cannot be used for operating may be used for a highway project under certain circumstances. States should contact their regional office if they intend to request a transfer. Additional information about the requirements for this section can be found in Chapter VII of FTA Circular 9040.1G,
Formula Grants for Rural Areas: Program Guidance and Application Instructions,
dated October 24, 2014.

5. 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.

I. Formula Grants for Public Transportation on Indian Reservations Program (49 U.S.C. 5311(j))

The Public Transportation on Indian Reservations Program or Tribal Transit Program (TTP) totals $35 million, of which $30 million is for a formula program and $5 million is for a discretionary grant program. It is funded as a takedown from funds made available for the section 5311 program. Formula factors include vehicle revenue miles and the number of low-income individuals residing on tribal lands (American Indian Areas, Alaska Native Areas, and Hawaiian Home Lands). More information on the Discretionary program can be found in section III.6 of this notice. Eligible direct recipients are Federally recognized Indian tribes and Alaskan Native Villages providing public transportation in rural areas. The TTP funds are to be allocated for grants to eligible recipients for any purpose eligible under section 5311, which includes capital, operating, planning, job access and reverse commute projects. 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. Authorized Funding

Under the FAST Act, $35 million is authorized in in each of FY 2016-FY 2020. Five million will be allocated on a competitive basis and $30 million will be allocated by formula.

2. FY 2016 Funding Availability

In FY 2016, $30,000,000 is made available by formula as shown in the table below.

Formula Grants for Public Transportation on Indian Reservations Program—FY 2016

Total Appropriation
$30,000,000

Total Apportioned
30,000,000

3. Basis for Allocation

Funding is allocated by formula and distributed to eligible Indian tribes providing public transportation on tribal lands. The formula apportionment shown in Table 9 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 2009-2013 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 tribal lands (American Indian Areas, Alaska Native Areas, and Hawaiian Home Lands) on which more than 1,000 low income individuals reside. If more than one tribe provides public transportation services on tribal lands in a single Tribal Statistical area, and the tribes cannot determine how to allocate Tier 3 funds, FTA will allocate the funds based on the relative portion of transit (as defined by unlinked passenger trips) operated by each tribe, as reported to the National Transit Database.

4. 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 TTP formula apportionments. To be considered in the FY 2016 formula apportionments, tribes should have submitted their reports to the NTD no later than April 30, 2015; voluntary reporting to the NTD is also encouraged. Additionally, to be considered for the FY 2017 formula apportionment funds, tribes need to submit their reports to the NTD no later than April 30, 2016. Tribes needing assistance with reporting to the NTD should contact the NTD Helpline at 1-888-252-0936 or
NTDHelp@dot.gov
.

5. Period of Availability

Funding for the TTP is 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 2016 formula funds that remain unobligated at the close of business on September 30, 2018 will revert to FTA for reapportionment under the TTP.

6. What's New and Other Program Highlights

The FAST Act establishes a Tribal Transportation Self Governance Program (Self Governance). The Self Governance Program establishes specific criteria for determining eligibility for a tribe to participate in the program. DOT will develop rulemaking and the implementation of this program in consultation with tribal representatives and other interested stakeholders. See section III. 6 of this notice for more information.

The funds set aside for the TTP 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.

TTP grantees must comply with all applicable Federal statutes, regulations, executive orders, FTA circulars, and other Federal requirements in carrying out the project supported by the FTA grant. To assist tribes with understanding these requirements, FTA regularly conducts Tribal Transit Technical Assistance Workshops, and expects to offer several workshops in FY2016. FTA has also expanded its technical assistance to tribes receiving

funds under this program. In FY15, FTA implemented the Tribal Transit Technical Assistance Assessments initiative. Through these assessments, FTA collaborates with tribal transit leaders to review processes and identify areas in need of improvement and then assist with solutions to ad

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A2016-02821. Public record. Not legal advice.