# FTA Fiscal Year 2017 Apportionments, Allocations, Program Information and Interim Guidance

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URL: https://www.frixlaw.com/law-library/documents/fr%3A2017-01194

## Record

- **Collection:** Federal Register
- **Document type:** Notice
- **Published:** January 19, 2017
- **Citation:** 82 FR 6692

## Text

DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
FTA Fiscal Year 2017 Apportionments, Allocations, Program Information and Interim Guidance

AGENCY:

Federal Transit Administration (FTA), DOT.

ACTION:

Notice.

SUMMARY:

This notice provides interim guidance for programs in FY 2017, announces the apportionments and allocations for programs authorized and funded by the Further Continuing and Security Assistance Appropriations Act, 2017 (Pub. L. 114-254) and provides contract authority, and describes future plans for several competitive programs. The notice also includes locations of FY 2017 apportionment tables and unobligated (or carryover) funds allocated under the competitive 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.transit.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.transit.dot.gov
to receive email notifications when new information is available.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Overview

II. FY 2017 Funding for FTA Programs

A. Funding Based on the Further Continuing and Security Assistance Appropriations Act, 2017 (Pub. L. 114-254)

B. Oversight Takedown

C. FY 2017 Formula Apportionments: Data and Methodology

III. FY 2017 Program Highlights and Changes

A. Focus Areas

IV. FY 2017 Program-Specific Information

A. Metropolitan 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

R. Paul S. Sarbanes Transit in Parks Program (49 U.S.C. 5320)

V. FTA Policy and Procedures for FY 2017 Grants

A. Automatic Pre-Award Authority To Incur Project Costs

B. Letter of No Prejudice (LONP) Policy

C. FY 2017 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 existing FTA program statutes (49 U.S.C. 5301,
et. seq.
) and changes resulting from 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 notice of funding availability through April 28, 2017 by the Further Continuing and Security Assistance Appropriations Act, 2017 (Pub. L. 114-254) contract authority for FTA formula and competitive programs pursuant to the Further Continuing and Security Assistance Appropriations Act, 2017 (Pub. L. 114-254) (“Continuing Appropriations Act”).

For each FTA program, FTA has provided information on the FY 2017 authorized funding levels, the basis for apportionment or allocation of funds, requirements specific to the program, the period of availability of funds, and other program information. A separate section provides information on pre-award authority as well as other requirements and guidance applicable to FTA programs and grant administration. Finally, the notice includes referred to tables on FTA's Web site that show $5,323,087,320 in new contract authority apportioned through April 28, 2017 and approximately $1.04 billion in unobligated or carryover contract authority that is available in FY 2017 from prior years.

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 2017 Funding for FTA Programs

A. Funding Based on the Further Continuing and Security Assistance Appropriations Act, 2017

The Further Continuing and Security Assistance Appropriations Act, 2017 (Pub. L. 114-254) makes new funding available for FY 2017 available through April 28, 2017. At approximately seven twelfths of the FY 2016 level.

Current funding availability for each program is identified in section IV of this notice and in Table 1 located on FTA's FY 2017 Apportionment Web page:
www.transit.dot.gov/funding/apportionments.

B. Oversight Takedown

The FAST Act modified section 5338(f) 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.

C. FY 2017 Formula Apportionments: Data and Methodology

1. Apportionment Tables

FTA is publishing apportionment tables on its Web site for each program that reflects the funding level in the continuing resolution appropriations less oversight take-downs, as applicable. Tables displaying the funds available to eligible states, tribes, and urbanized areas have been posted to
http://www.transit.dot.gov/funding/apportionments.
This Web site contains a page listing the apportionment and allocation tables for FY 2017 as well as links to prior year formula apportionment notices and tables and the National Transit Database (NTD) and Census data used to calculate the FY 2017 apportionments.

2. National Transit Database and Census Data Used in the FY 2017 Apportionments

Consistent with past practices, the calculations for sections 5307, 5311, including 5311(j) (Tribal Transit), 5329, 5337, and 5339 programs rely on the most-recent transit service data reported to the (NTD), which for FY 2017 is the 2015 report year. In some cases where an apportionment is based on the age of the system, the age is calculated as of September 30, 2016, the last day before FY 2017 began. Any recipient or beneficiary of either section 5307 or Rural Areas Formula Program program funds is required to report to the NTD. Additionally, a number of transit operators report to the FTA's NTD on a voluntary basis. For the 2015 report year, the NTD includes data from 866 reporters in urbanized areas, 836 of which reported operating transit service. The NTD also includes data from 1,551 providers of rural transit service, which includes 134 Indian Tribes providing transit service.

The 2010 Census data is used to determine population and population density for sections 5303, 5305, 5307 and 5339 as well as rural population and rural land area for Rural Areas Formula Program. The formulas for sections 5307, 5311, and 5311(j) include tiers where funding is allocated on the basis of the number of persons living in poverty, and the section 5310 formula program allocates funding on the basis of the population of older adults and people with disabilities. The Census Bureau no longer publishes decennial census data on persons living in poverty and persons with disabilities. As a result, since FY 2013, FTA used the data for these populations available via the Census' American Community Survey (ACS). The NTD and census data that FTA used to calculate the apportionments associated with this notice can be found on FTA's Web site:
www.transit.dot.gov/funding/apportionments.

The FY 2017 apportionments use data on low-income persons, persons with disabilities, and older adults from the 2010-2014 ACS five-year data set, which was published in December 2015. This data represent the most recent five-year ACS estimates that are available as of October 1st for the year being apportioned. As was the case in prior years, data on low-income persons comes from ACS Table B17024, “Age by Ratio of Income to Poverty in the Last Twelve Months,” and data on people with disabilities under 65 years old comes from ACS Table S1810, “Disability Characteristics.” Data on older adults (over 65 years old) comes from ACS Table B01001, “Sex by Age.”

III. FY 2017 Program Highlights and Changes

A. Focus Areas

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

Section 207 of title 23, United States Code establishes a Tribal Transportation Self-Governance Program (Self Governance Program). 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. A Negotiated Proposed Rulemaking to implement this program is under development.

2. Public Transportation Innovation

FTA's research mission is to advance public transportation innovation by leading multi-dimensional research, development, demonstration, deployment, and technical assistance projects for the transit industry that improves riders' experiences and enhances public transit's effectiveness, efficiency, quality, and safety. FTA's Office of Research, Demonstration, and Innovation sought industry input on a five year research strategic plan. The result was an affirmation of FTA's research strategic goals to improve safety, enhance mobility, promote asset management, and expand asset innovation. These goals directly address and support the six primary purposes of U.S. DOT's transportation research and development program as defined in Section 6503 of the FAST Act as follows:

• Improving mobility of people and goods;

• Reducing congestion;

• Promoting safety;

• Improving the durability and extending the life of transportation infrastructure;

• Preserving the environment; and

• Preserving the existing transportation system.

Going forward, FTA will continue to prioritize research investments based upon these goals. FTA expects to publish its Research Strategic Plan in FY 2017.

3. Shared Mobility

Shared Mobility continues to remain a key focus area within FTA's Public Transportation Innovation program. The definition of personal mobility is changing due to social and cultural trends combined with the powerful tools in handheld smartphones and related transportation technology innovations. New mobility concepts and solutions like bike-sharing, car-sharing, car-hailing, and innovative demand-response bus services are now possible and more convenient because of these developments. This gives travelers new, flexible and personally tailored transportation options. Many of these services are emerging in proximity to high-capacity transit corridors with land uses and activities that create the market

for new services. Supported by smart policies, the interaction between public transportation and these emerging services can create improved travel choices.

To support personal mobility innovation, (FTA) recently allocated $8 million for 11 projects through the innovative Mobility on Demand (MOD) Sandbox Demonstration program using FTA research funds (Public Transportation Innovation/Public Transportation Innovation). The projects carried out by transit agencies will test new ideas in personal mobility and integrated multimodal transportation networks. From that MOD program solicitation process, and from dialogue with other stakeholders, FTA has identified questions about funding eligibility under Federal public transportation law for FTA grant programs, like the Urbanized Area and Rural formula programs, as well as compliance with federal requirements, such as the Americans with Disabilities Act (ADA), related to mobility on demand generally and, particularly, to electronic hailing of vehicles such as taxis or other transportation network company (TNC) vehicles.

FTA has prepared answers to Frequently Asked Questions (FAQs) to address the eligibility and Federal requirement questions. This information is posted on the FTA Web site at
https://www.transit.dot.gov/shared-mobility.
FTA will use information from the MOD Sandbox projects and related efforts, such as the recently launched online dialogue, to continue the discussion with agency stakeholders and to address questions regarding innovative practices and shared-ride, on-demand mobility services as they emerge. FTA encourages your participation in this online discussion. Stakeholders can also send comments and questions to
TransitInnovations@dot.gov.

4. Bus Testing Facility (49 U.S.C. 5318)

On August 1, 2016, FTA issued its final rule to implement minimum performance standards, a scoring system, and a pass/fail threshold for new model transit buses procured with FTA financial assistance authorized under 49 U.S.C. Chapter 53. Consistent with 49 U.S.C. 5318(e), FTA recipients are prohibited from using FTA financial assistance to procure new bus models, that were not previously tested, that have not met the minimum performance standards established by this rule. The standards and scoring system address the following categories: Structural integrity, safety, maintainability, reliability, fuel economy, emissions, noise, and performance. Buses must meet a minimum performance standard in each of these categories in order to receive an overall passing score and be eligible for purchase using FTA financial assistance. Buses can achieve higher scores with higher performance in each category, and the final rule establishes a numerical scoring system based on a 100-point scale so that buyers can more effectively compare vehicles.

The final rule was effective on October 31, 2016. FTA's Web site has additional information, resources, and a link to sign up for email notices about the Bus Testing Program at:
www.transit.dot.gov/research-innovation/bus-testing.

5. FY 2017 Competitive Programs Funding and Schedule

FTA will issue Notices of Funding Opportunities (NOFO) in FY 2017 for the programs listed in the following chart. Additional information about each competitive program is in section III of this notice.

FY 2017 competitive programs
Statute 49 U.S.C.

2017 Authorized funding level
(in millions)

Timeline for
notification of
awards

Passenger Ferry Grant Program
5307
$30.0
Summer 2017.

Rides to Wellness Demonstration and Innovative Coordinated Access and Mobility Grants
FAST Section 3006(b)
3.0
Summer 2017.

Tribal Transit
5311(c)(1)(A)
5.0
Spring 2017.

Grants for Buses and Bus Facilities Competitive Program
5339
228.0
Summer 2017.

Low or No Emission Grants Competitive Program
5339
55.0
Spring 2017.

Pilot Program to D Planning
MAP-21 Section 2005(b)
10.0
Fall 2017.

IV. FY 2017 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, Planning Assistance and Standards. 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 MPO 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 MPOs 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, economic feasibility, performance-based planning; 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 information or questions on the Metropolitan Planning program, please contact Victor Austin at (202) 366-2996 or victor.austin@dot.gov.

1. Authorized Amounts

Federal transit law authorizes $110,347,597 in FY 2017 to provide financial assistance for metropolitan planning needs under section 5305. Under the Further Continuing Appropriations Act, $62,042,888 is available through April 28, 2017.

2. FY 2017 Funding Availability

In FY 2017, $62,042,888 is available for the period October 1, 2016 through April 28, 2017 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 $61,732,673 as shown in the table below, after the deduction for oversight (authorized by section 5338).

Metropolitan Planning Program—FY 2017

Total Appropriation available through April 28, 2017
$62,042,888

Oversight Deductions
(310,214)

Total Apportioned
61,732,673

3. Basis for Formula Apportionment

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 its 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 2017 plus three additional fiscal years. Accordingly, funds apportioned in FY 2017 must be obligated in grants by September 30, 2020. Any FY 2017 apportioned funds that remain unobligated at the close of business on September 30, 2020, will revert to FTA for reapportionment under the Metropolitan Planning Program.

6. Other Program Information

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. The FAST Act sections 5303 and 5304 as noted below:

• New emphasis is placed on intercity transportation, including intercity buses and intermodal facilities that support intercity transportation, and commuter vanpool providers.

•
The selection and role of the transit representation on MPO policy boards in large urbanized areas is clarified. 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 Final Rule on Statewide and Nonmetropolitan Transportation Planning and Metropolitan Transportation Planning (81 FR, 3404, May 27, 2016).

• The scope of the planning process adds two new planning factors, in addition to the eight pre-existing factors established under prior law. The two new factors are: (1) Improve the resiliency and reliability of the transportation system, and reduce the vulnerability of the existing transportation infrastructure to natural disasters, and (2) enhance travel and tourism.

• 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.

• Plans must place greater emphasis on the congestion management process. MPOs that serve transportation management areas must 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 long-range statewide transportation plan and metropolitan transportation plan must include a description of the performance measures and performance targets. State DOTs and MPOs are also required to provide a system performance report evaluating the condition and performance of the transportation system.

In the Final Rule on Statewide and Nonmetropolitan Transportation Planning and Metropolitan Transportation Planning, FHWA and FTA make the statewide, metropolitan, and nonmetropolitan transportation planning regulations consistent with current statutory requirements. The final rule establishes the following: (1) A new mandate for States and MPOs to take a performance-based approach to planning and programming; (2) a new emphasis on the nonmetropolitan transportation planning process, by requiring States to have a higher level of involvement with nonmetropolitan local officials and providing a process for the creation of RTPOs; (3) implementation of the afore mentioned statutory requirement for a structural change to the membership of the larger MPOs; (4) a new framework for voluntary scenario

planning; (5) a new authority for the integration of the planning and environmental review processes; and (6) a process for programmatic mitigation plans.

Among the most significant charges is the new mandate for 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, DOT will 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. After May 27, 2018, a State's and MPO's long-range plans, STIPs, and TIPs must reflect performance targets and plans according to the provisions of the final rule.

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, Planning Assistance and Standards. 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 or questions on the State Planning and Research program, please contact Victor Austin at (202) 366-2996 or victor.austin@dot.gov.

1. Authorized Amounts

Federal transit law authorizes $23,051,336 in FY 2017, to provide financial assistance for statewide planning and other technical assistance activities under section 5305. Under the Continuing Appropriations Act of 2017, $12,960,603 is available through April 28, 2017. As specified in law, this represents the 17.28 percent of the amounts available for section 5305 that are allocated to the Statewide Planning and Research program.

2. FY 2017 Funding Availability

In FY 2017, $12,960,603 is available for the period October 1, 2016 through April 28, 2017 to the State Planning and Research Program (section 5305(e)). The total amount apportioned for the State Planning and Research Program (SPRP) is $12,895,800 as shown in the table below, after the deduction for oversight (authorized by section 5338).

Statewide Planning Program—FY 2017

Total Appropriation Available through April 28, 2017
$12,960,603

Oversight Deductions
(64,803)

Total Apportioned
12,895,800

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

3. Basis for Formula Apportionment

Of the amount authorized for 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, performance-based planning, 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 2017 plus three additional fiscal years. Accordingly, funds apportioned in FY 2017 must be obligated in grants by September 30, 2020. Any FY 2017 apportioned funds that remain unobligated at the close of business on September 30, 2020 will revert to FTA for reapportionment under the State Planning and Research program.

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

The Urbanized Area Formula Program provides financial assistance to designated recipients in urbanized areas (UZAs) for capital investments in public transportation systems, planning, job access and reverse commute projects, and, in some cases, operating assistance. FTA apportions funds for this program through a statutory formula. Of the amount authorized for Section 5307 each year, $30 million is set aside for the competitive Passenger Ferry Grant Program (Ferry program), as authorized under 49 U.S.C., 5307(h). The Ferry program offers financial assistance to public ferry systems in urbanized areas for capital projects. Projects are selected annually through a funding competition. Additionally 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 0.5 percent apportionment to States for the State Safety Oversight Program is provided in section IV.M. of this notice.

For more information or questions on the
Urbanized Area Formula Program,
contact Tara Clark at (202) 366-2623 or
tara.clark@dot.gov.
For more information on the
Ferry Program,
contact Vanessa Williams at (202) 366-4818 or
vanessa.williams@dot.gov.

1. Authorized Amounts

Federal transit law authorizes $4,629,683,814 in FY 2017 to provide financial assistance for urbanized areas under section 5307. Under the Continuing Appropriations Act of 2017, $2,604,058,475 is available through April 28, 2017.

2. FY 2017 Funding Availability

Under the Further Continuing and Security Assistance Appropriations Act, 2017, only $2,604,058,475 is available for the Urbanized Area Formula program for the period of October 1, 2016 through April 28, 2017. The total amount apportioned to urbanized areas is $2,817,580,866, 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 Ferry 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 2017

Total Appropriation available thru April 28,2017

a
$2,604,058,475

Oversight Deduction
(19,530,439)

Ferry Competitive Program
(17,211,583)

State Safety Oversight Program
(13,020,292)

Section 5340 High Density States
151,441,543

Section 5340 Growing States
111,800,668

Total Apportioned
2,817,538,371

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 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.

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.

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 2017 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).

a. Section 5307—Urbanized Area Formula

For UZAs between 50,000 and 199,999 in population, the Urbanized Area Formula is based on population and population density. For UZAs with populations of 200,000 or 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. 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.

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 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 for the 2015 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 2017 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. More information on this program and its formula is found in section IV.P. of this notice.

d. 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. 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 2010-2014. This information is updated by the Census Bureau annually.

4. Requirements

The maximum Federal share for the Urbanized Area Formula Program, including the Ferry Program, is 80 percent, or 85 percent for the net project cost of acquiring vehicles (including clean-fuel or alternative fuel) for the purpose of complying with or maintaining compliance with the Clean Air Act (CAA) or the Americans with Disabilities Act (ADA) of 1990. The maximum Federal share is 90 percent of the net project cost for acquiring vehicle-related equipment or facilities (including clean-fuel or alternative-fuel vehicle-related equipment or facilities) for the purpose of complying with or maintaining compliance with the CAA or ADA.

Program guidance for the Urbanized Area Formula Program is found in FTA Circular 9030.1E, Urbanized Area Formula Program: Program Guidance and Application Instructions, dated January 16, 2014, and is supplemented by additional information and changes provided in this notice and that may be posted to the Urbanized Area Formula Grants program 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.

5. Period of Availability

Funds made available under the Urbanized Area Formula Program are available for obligation during the year of apportionment plus five additional years. Accordingly, funds apportioned in FY 2017 must be obligated by September 30, 2022. Any FY 2017 apportioned funds that remain unobligated at the close of business on September 30, 2022 will revert to FTA for reapportionment under the Urbanized Area Formula Program.

Funds allocated under the Ferry program follow the same period of availability as section 5307. Accordingly, funds allocated in FY 2017 must be obligated by September 30, 2022. Any of the funds allocated in FY 2017 that remain unobligated at the close of business on September 30, 2022 will revert to FTA for reallocation under the Ferry program.

6. Other Program Information

a. Special Rule for Operating Assistance in Large Urbanized Areas

The special rule at 49 U.S.C. 5307(a)(2) makes recipients in urbanized areas with populations of 200,000 or above that operate 100 or fewer buses in fixed route service or general public demand response service during peak hours, excluding ADA complementary paratransit service, eligible 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 general public 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 2017 is shown in Table 3-A. FTA identified the systems eligible to use this provision and their maximum amounts for FY 2017 using data from the NTD for reporting year 2015. 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 2017 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 2017 Apportionment Table 3A includes all eligible general public demand response operators. Systems that operate more than 100 buses in general public demand response service, and which do not operate any fixed-route service are not eligible for operating assistance under this provision. Systems that only operate ADA complimentary paratransit are not eligible for operating assistance under this provision.

Systems that operate more than 100 buses in fixed route service are not eligible for operating assistance under this provision. Systems that operate 100 or fewer fixed route buses are eligible, regardless of the number of demand response vehicles they operate.

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 operating assistance cap for the urbanized area does not change as a result of any agreement between two or more systems. The method used to allocate the funds must be documented in a written agreement, signed by the participating parties, and transmitted to FTA as part of the split letter.

b. Eligibility of Substitute Transit Service as a Capital Project

The cost of operating substitute service (
i.e.
a bus bridge) is an eligible capital project expense when incidental to a scheduled capital maintenance, rehabilitation, or construction project on an existing system. Eligible substitute service must be temporary, scheduled, and the costs defined in the grant agreement for the capital project. Substitute service costs are not an eligible capital project expense in conjunction with emergency maintenance, operating incidents, or other contingency operations, including emergency operations associated with an emergency or a disaster.

c. Prohibition on Funding for Art and Non-Functional Landscaping

While formerly eligible for Urbanized Area Formula Program funds as a “Transit Enhancement” (the precursor to Associated Transit Improvement), at 49 U.S.C. 5323 (h) now prohibits the use of FTA funds for the “incremental costs of incorporating art or non-functional landscaping into facilities, including the costs of an artist on the design team.” This prohibition applies to the creation, production, or installation of artworks, defined as objects intended for a primarily aesthetic purpose, or the involvement of artists in the development of a capital project. However, FTA does not interpret the law to exclude or generally prohibit the functional and aesthetic design of transit stations or related facilities, including designs intended to minimize adverse visual effects on the surrounding community. Transit facilities and surrounding landscape designs should incorporate aesthetic considerations, including but not limited to decisions regarding the use of light, shape, color, materials, the use of space, and the historic setting to achieve a functional and welcoming public transit facility.

FTA will not require grantees to assess the often indeterminate incremental costs associated with functional design elements, including, but not limited to, the use of different types or colors of paint or tile, wayfinding elements intended to direct passengers or staff, or different or alternate construction materials in the design of a transit facility.

Recipients may continue to use local funds for art in association with transit capital projects, but such expenditures may not be counted towards the local

share of a project cost, and should not be included in the grant award.

With regard to landscaping, FTA recognizes that landscaping is a functional element of many transit facilities. For example, landscaping can be used to aid in the absorption or drainage of rainwater, prevention of erosion, support of structures on a steep grade, minimization of noise impacts, protection of habitat, provision of shade in hot climates, channeling of pedestrian or vehicle traffic, definition of useable or unsafe spaces, and many other purposes. In interpreting the term “functional landscaping” under this provision of law, FTA draws a similar distinction, as with art, between functionally appropriate landscape design and landscape elements installed primarily for visual or aesthetic appeal.

For additional information see the Art and Non-Functional Landscaping frequently asked questions posted on the Urbanized Area Formula Grants Web page.

d. Employee Training Expenses

Costs associated with employee training may be eligible for Urbanized Area Formula Program funding as operating expenses, as preventive maintenance expenses, or as provided for under the following provisions. A recipient may fund training expenses as an operating expense under Section 5307, where allowed, at a 50 percent Federal share.

i.
Under Section 5314(b), up to 0.5 percent of the program a recipient's section 5307, 5337, and 5339 funds may be used for human resources and workforce development activities at an 80 percent Federal cost share, including the cost of administering a training program. Eligible activities include:

• Various public transportation training programs;

• Outreach programs for targeted groups to increase public transportation employment for veterans, women, individuals with disabilities, and minorities;

• Development of training partnerships with key stakeholders including community colleges, workforce development boards, and other industry groups;

• Development of apprenticeships, on-the-job-training, and instructional training for public transportation; maintenance and operations occupations;

• Improve safety, security, and emergency preparedness in local public transportation system through improved safety culture and workforce communication with first responders and the riding public. And other activities approved by FTA that address human resource needs as they apply to public transportation activities.

ii.
Under Section 5314(c), up to 0.5 percent of Section 5307, 5337, and 5339 funds are available to a state or public transportation authority recipient in a fiscal year to use for tuition and direct educational expenses at the National Transit Institute for education and training of state and local transportation employees, at a federal share not to exceed 80 percent. States may also use these funds for training State and local transportation agency employees through grants and contracts with public and private agencies, and other institutions and individuals with prior FTA approval.

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 Inter-related 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 in an existing fixed guideway corridor that is at capacity today or will be in five years; and (4) programs of two or more interrelated projects as described above that have logical connectivity with one another and will all begin construction in a reasonable timeframe.

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

Federal transit law authorizes $2,301,785,760 in FY 2017, to provide financial assistance under section 5309. Under the Continuing Appropriations Act of 2017, $1,241,314,889 is available through April 28, 2017.

2. FY 2017 Funding Availability

In FY 2017, $1,241,314,889 is available for the period October 1, 2016 through April 28, 2017 to the Fixed Guideway Capital Investment Grant Program. The total amount available for projects is $1,228,901,740 as shown in the table below, after the deduction for oversight (authorized by section 5338).

Capital Investment Grants (New Starts)—FY 2017

Total Appropriation Available through April 28, 2017
$1,241,314,889

Oversight Deduction
(12,413,149)

Total Apportioned
1,228,901,740

3. Basis for Allocation

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

4. Requirements

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 a Small Starts grant agreement (SSGA) that defines the scope of the project and specifies the Federal commitment to the project.

5. Period of Availability

Funds for the Fixed Guideway Capital Investment Grant Program remain

available for obligation for four years, which includes the fiscal year in which the funds are allocated to projects plus three additional years.

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

The Section 5310 Enhanced Mobility of Seniors and Individuals with Disabilities Program provides formula funding to states for the purpose of meeting the transportation needs of older adults and people with disabilities when the transportation service provided is unavailable, insufficient, or inappropriate to meet these needs. The program aims to improve mobility for seniors and individuals with disabilities by removing barriers to transportation service and expanding transportation mobility options.

The Pilot Program for Innovative Coordinated Access and Mobility Program (Pilot Program) open to Section 5310 recipients—was established by Section 3006(b) of the
FAST Act.
The purpose of the program is to assist in financing innovative projects for the transportation disadvantaged that improve the coordination of transportation services and non-emergency medical transportation (NEMT) services, including, for example, the deployment of coordination technology, and projects that create or increase access to community One-Call/One-Click Centers.

For more information or questions on the Enhanced Mobility of Seniors and Individuals with Disabilities program, please contact Kelly Tyler at (202) 366-3120 or
Kelly.Tyler@dot.gov.

1. Authorized Amounts

Federal transit law authorizes $268,208,388 in FY 2017 to provide formula funding to states for the purpose of meeting the transportation needs of older adults and people with disabilities. The law also authorizes $3 million for the competitive Pilot Program. Under the Further Continuing and Security Assistance Appropriations Act, 2017, $150,859,185 is available through April 28, 2017 for the formula program.

2. FY 2017 Funding Availability

The total available funding for projects under the Section 5310 formula program for FY 2017 is $150,104,889 after the oversight deduction as shown in the table below.

Section 5310 Formula Program—FY 2017

Total Appropriation Available through April 28, 2017)
$150,859,185

Oversight Deductions (oversight 0.5%)
( 754,296)

Total Apportioned
150,104,889

Competitive Pilot Program
1,147,439

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 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 rural areas, defined as 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. FY 2017 Apportionments Table 8 displays the amounts apportioned under the Enhanced Mobility of Seniors and Individuals with Disabilities Program.

Under the section 5310 formula, funds are allocated using Census data on older adults (
i.e.,
persons 65 and older) and people with disabilities. However, beginning in 2010, the Census Bureau stopped collecting this demographic information 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 2017 section 5310 apportionments incorporate ACS data published in December, 2015. Data on seniors comes from the ACS 2010-2014 five-year data set, Table B01001, “Sex by Age. Data on persons with disabilities comes from the ACS 2010-2014 five-year data set, Table S.1810, “Disability Characteristics.”

4. Requirements

At least 55 percent of program funds must be used on capital projects such as buses and vans; wheelchair lifts, ramps, and securement devices or transit-related information technology systems including scheduling/routing/one-call systems. Mobility management programs are also defined as capital projects for purposes of this provision. The acquisition of transportation services under a contract, lease, or other arrangement is also eligible; both the capital and operating costs associated with contracted service are eligible capital expenses for purposes of this provision. The capital eligibility of acquisition of services is limited to the section 5310 program. The remaining 45 percent of a recipient's 5310 funds can be used for capital or operating.

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. A State or local governmental entity that operates a public transportation service may be a direct recipient for Section 5310 funds.

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 the definition of designated recipient, 49 U.S.C. 5302(4)). Designated recipients are responsible for administering the program. Eligible subrecipients 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

Capital assistance is provided at 80 percent Federal share; 20 percent local share. Operating assistance requires a 50 percent local match. Funds provided under other Federal programs (other than those of the DOT, with the exception of the Federal Lands Transportation Program 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. 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.

d. State and Project Management Plans

States, designated recipients, and State or local governmental entities that operate a public transportation service that are responsible for implementing the section 5310 program are required to document their approach to managing the program. The Management Plans serve as the basis for FTA management reviews of the program, and 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, see 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.

5. Period of Availability

For Enhanced Mobility of Seniors and Individuals with Disabilities Program funds apportioned under this notice, the period of availability is three years, which includes the year of apportionment plus two additional years. Accordingly, funds apportioned in FY 2017 must be obligated in grants by September 30, 2019. Any FY 2017 apportioned funds that remain unobligated at the close of business on September 30, 2019 will revert to FTA for reapportionment among the States and urbanized areas.

6. Other Program Information

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. Section 5310 funds may not be transferred to other FTA programs. Section 5310 funds apportioned to large urbanized areas may not be transferred to other areas. Section 5310 program recipients may 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. Section 3006(b) of the FAST Act creates a new competitive 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. Local Match can come from other Federal (non-DOT) funds.

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 Rural Areas Formula Program, 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, please contact Élan Flippin at (202) 366-3800 or Elan.flippin@dot.gov.

1. Authorized Amounts

Federal transit law authorizes $632,355,120 in FY 2017 to provide financial assistance for rural areas under Rural Areas Formula Program.

2. FY 2017 Funding Availability

Under the Further Continuing Security Assistance Appropriations Act, 2017, $317,012,628 is available through April 28, 2017 to the Rural Area Programs which includes $44,378,969 for Growing States. The total amount apportioned to the program is $359,613,193 as shown in the table below, after the deduction for oversight (authorized by section 5338).

Formula Grants for Rural Areas Program—FY 2017

Total Appropriation Available Through April 28, 2017
$317,012,628

Oversight Deductions
(1,778,404)

Section 5340 Growing States
44,421,465

Total Apportioned
359,655,689

3. Basis for Formula Apportionment

FTA apportions Rural Areas Formula Program funds to the states by a statutory formula using the latest available U.S. decennial census data. The majority of Rural Formula Program 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 Program funds (16.85 percent) are apportioned based on land area, vehicle revenue miles, and low-income individual 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 National Transit Database (NTD) 2015 Report Year was used for this apportionment, including data from directly-reporting Indian tribes. Data from public transportation systems that reported as urbanized area systems, but that was not attributable to an urbanized area, was also included. The Rural Areas Formula Program 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. Requirements

The Rural Areas Formula 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 Rural Areas Formula Program funds are in addition to those awarded to the State under section 5305 and must be used specifically for the needs of rural areas.

a. Intercity Bus Transportation

Each State must spend no less than 15 percent of its annual Rural Areas Formula Program 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 met. FTA encourages consultation with other stakeholders, such as communities affected by loss of intercity service. 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 may be used as in-kind local match for the intercity bus projects. FTA is updating the Rural Areas Formula Program program circular to include this change.

b. State Administration

States may elect to use up to 10 percent of their apportionment at 100 percent Federal share to administer the Rural Areas Formula Program 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. Other Requirements

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 Rural Areas Formula Program capital projects and 62.5 percent of the sliding scale capital match ratio for operating projects. No longer exists

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 Formula Program is found in FTA Circular 9040.1G,
Formula Grants for Rural Areas: Program Guidance and Application Instructions,
dated November 24, 2014, and is supplemented by additional information that may be posted to FTA's Web page.

5. Period of Availability

Rural Areas Formula Program 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 Formula Program funds apportioned in this notice are available for obligation during FY 2017 plus two additional years. Any FY 2017 apportioned funds that remain unobligated at the close of business on September 30, 2019 will revert to FTA for reapportionment under the Rural Areas program.

6. Other Program Information

Revenue from the sale of advertising and concessions may be used as local match.

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

This program provides funding to assist in the design and implementation of training and technical assistance projects, research, and other support services tailored to meet the needs of transit operators in rural areas.
For more information about Rural Transportation Assistance Program (RTAP), please contact Élan Flippin at (202) 366-3800 or Elan.flippin@dot.gov.

1. Authorized Amounts

There is a two percent takedown from the funds made available for RTAP. Of the remaining amount, 15 percent is reserved for the National RTAP program. The remainder is available for allocation to the States.

Federal Transit Law authorizes $12,647,102 in FY 2017 to provide technical assistance.

2. FY 2017 Funding Availability

Under the Further Continuing and Security Assistance Appropriations Act, 2017 $7,113,616 is available through April 28, 2017 to the RTAP Program. The total amount apportioned for RTAP is $6,046,574 as shown in the table below, after the deduction for National RTAP.

Rural Transportation Assistance Program—FY 2017

Total Appropriation Available through April 28, 2017
$7,113,616

National RTAP (15%)
(1,067,042)

Total Apportioned
6,046,574

3. Basis for Formula Apportionment

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

4. Requirements

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.

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.

5. Period of Availability

The RTAP funds apportioned in this notice are available for obligation in FY 2017 plus two additional years, consistent with that established for the Rural Areas Formula Program Rural Program.

6. Other Program Information

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 the 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 Transportation Research Board 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 is a take-down under the Rural Areas Formula 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 State allocations are shown in the Rural Areas Formula program table posted on FTA's Web site on the FY 2017 Apportionments page. For more information about the Appalachian

Development Public Transportation Assistance Program, please contact
Élan Flippin at (202) 366-3800 or Elan.flippin@dot.gov.

1. Authorized Amounts

Federal transit law authorizes $20 million in each of FY 2016 through FY 2020 as a take-down under the Rural Areas Formula Program to support public transportation in the Appalachian region.

2. FY 2017 Funding Availability

Under the Further Continuing and Security Assistance Appropriations Act, 2017 $11,474,389 is available through April 28, 2017.

Appalachian Development Public Transportation Assistance Program Funds FY 2017

Total Appropriation Available through April 28, 2017
$11,474,389

Total Apportioned
11,474,389

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 the Rural Areas Formula Program to support public transportation in the Appalachian region. Funds can be applied for in the State's annual Rural Areas Formula Program 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 November 24, 2014.

5. Period of Availability

Appalachian Program funds are available for three years, which includes the year of apportionment plus two additional years, consistent with that established for the Rural Areas Formula 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 competitive grant program. It is funded as a takedown from funds made available for the section Rural Areas Formula Program. Formula factors include vehicle revenue miles and the number of low-income individuals residing on tribal lands (defined as American Indian Areas, Alaska Native Areas, and Hawaiian Home Lands). Eligible direct recipients are Federally recognized Indian tribes and Alaskan Native Villages providing public transportation in rural areas. The TTP funds are allocated for grants to eligible recipients for any purpose eligible under Rural Areas Formula Program, which includes capital, operating, planning, and 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 Amounts

Federal transit law authorizes $35 million in FY 2017 ($30 million for formula and $5 million for the competitive program).

2. FY 2017 Funding Availability

Under the Further Continuing and Security Assistance Appropriations Act, 2017 $15,080,181 is available for the formula program and $5 million for the competitive program through April 28, 2017 as shown below.

Formula Grants for Public Transportation on Indian Reservations Program FY 2017

Total Appropriation (formula)
$15,080,181

Total Apportioned (competitive)
5,000,000

Total Apportioned
20,080,181

3. Basis for Formula Apportionment

Funding is allocated by formula and distributed to eligible Indian tribes providing public transportation on tribal lands. The formula apportionment shown in Table 10 is based on a statutory formula which includes three tiers. Tiers 1 and 2 are based on data reported to NTD by Indian tribes; Tier 3 is based on 2010-2014 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 eligible 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 Rural Areas Formula Program to support public transportation on Indian Reservations in rural areas. Funds allocated under the competitive 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 competitive 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 recipients or beneficiaries all section 5311 funds. This reporting requirement 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 2017 formula apportionments, tribes should have submitted their reports to the NTD no later than April 30, 2016; voluntary reporting to the NTD is also encouraged. Additionally, to be considered for the FY 2018 formula apportionment funds, tribes need to submit their reports to the NTD no later than April 30, 2017. Tribes needing assistance with reporting to the NTD

should contact the NTD Helpline at1-888-252-0936 or
NTDHelp@dot.gov.

5. Period of Availability

Funding for the TTP is available for three years, which includes the year of apportionment plus two additional years, consistent with that established for the Rural Areas Formula Program. Any FY 2017 formula funds that remain unobligated at the close of business on September 30, 2019 will revert to FTA for reapportionment under the TTP.

6. Other Program Information

Section 207 of title 23, United States Code establishes a Tribal Transportation Self-Governance Program (Self Governance Program). The Self Governance Program will establish specific criteria for determining eligibility for a tribe to participate in the program. A Negotiated Rulemaking to implement this program in consultation with tribal representatives and other interested stakeholders is under development.

The funds set aside for the TTP are not meant to replace or reduce funds that Indian tribes receive from States through the Rural Areas Formula 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 Rural Areas Formula Program application or maybe 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. FTA has also expanded its technical assistance to tribes receiving funds under this program. In FY 2015, 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 address these needs—all in a supportive and mutually beneficial manner. These assessments include discussions of compliance areas pursuant to the Master Agreement, a site visit, promising practices reviews, and technical assistance from FTA and its contractors. FTA will post information about upcoming workshops to its Web site and will disseminate information about the reviews through its Regional offices. FTA has regional tribal transit liaisons in each of the FTA Regional Offices that are available to assist tribes with applying for and managing FTA grants. Tribes are encouraged to work directly with their regional tribal transit liaison.

J. Public Transportation Innovation (49 U.S.C. 5312)

Public Transportation Innovation is FTA's research program. Within this section, are several different activities that comprise three distinct programs: (a) A Research, Development, Demonstration, Deployment, & Evaluation program (49 U.S.C. 5312(b-e)); (b) a Low or No Emission Vehicle Component Assessment Program (LoNo-CAP) (49 U.S.C. 5312(h)); and (c) a Transit Cooperative Research Program (49 U.S.C. 5312(i)).
For more information about the Public Transportation Innovation program, contact Edwin Rodriguez, Office of Research, Demonstration and Innovation at (202) 366-0671 or edwin.rodriguez@dot.gov.

1. Authorized Amounts

Federal transit law authorizes $48 million for FY 2017 for the Public Transportation Innovation program.

2. FY 2017 Funding Availability

Under the Further Continuing and Security Assistance Appropriations Act, 2017 $16,064,145 is available through April 28, 2017 shown in the table below.

Public Transportation Innovation Apportioned Thru April 28, 2017

Research, Development, Demonstration, Deployment, & Evaluation
$11,474,389

Low or No Emission Vehicle Component Testing
1,721,158

Transit Cooperative Research Program (TCRP)
2,868,597

Total Apportioned
16,064,145

3. Basis for Formula Apportionment

Public Transportation Innovation funds are allocated according to the authorized purposes and amounts described above, and then remaining amounts are subject to competitive allocations where not specifically authorized. For FY 2017, FTA intends to fund projects and activities consistent with its Research Strategic Plan and in support of three major areas: Asset Innovation and Management, Mobility, and Safety. Projects may be selected through Notices of Funding Opporunity (NOFO) or Requests for Proposals (RFPs), or sole-sourced. Potential recipients can register to receive notification of funding availability under this program on
Grants.gov
.

FTA awards an annual cooperative agreement to the National Academies of Science to administer the TCRP. For the LoNo-CAP, proposals were due November 28, 2016 and FTA expects to announce the selected testing facility or facilities in January 2017.

4. Requirements

Eligible expenses include activities involving (a) Research, Innovation, Development, Demonstration, Deployment, Evaluation; (b) Low or No Emission Vehicle Component Testing; and (c) Transit Cooperative Research.

The Government share of the cost of a project carried out under FTA's Research, Development, Deployment, and Demonstration program shall not exceed 80 percent; the remaining 20 percent of the costs can be met with in-kind resources. In some cases, FTA may require a higher non-Federal share if FTA determines a recipient would obtain a clear and direct financial benefit from the project, or if the non-Federal share is an evaluation factor under a competitive selection process.

However, for the LoNo-CAP, the Government share is 50 percent; the remaining 50 percent of the costs will be paid by amounts recovered through the fees established by the testing facilities. There is no match requirement for the TCRP.

Application instructions and program management guidelines are set forth in FTA Circular C 6100.1E, Technology Development and Deployment, “Research, Technical Assistance and Training Program: Application Instructions and Program Management Guidelines” dated May 11, 2015.

All research recipients are required to work with FTA to develop approved Statements of Work. FTA will be updating the Circular for the Research Program during FY 2017.

5. Period of Availability

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

6. Other Program Information

FTA publishes an annual Research Report on projects, evaluations, and benefits of its research portfolio. The FY2015 Report is posted on FTA's Web

site, with the FY2016 report expected in February 2017. Section 6019(b) of the FAST Act establishes new requirements for annual modal research plans in 49 U.S.C. 6501. The FY 2016 plans are posted on DOT's Web site.

For the new LoNo-CAP (5312(h)), FTA solicited proposals for the LoNo-CAP in the Fall of 2016, with selection(s) expected in January 2017. Per the statute, FTA only considered proposals from “institutions of higher education” as defined in section 1002 of title 20, U.S.C., the Higher Education Act of 1965. Eligible institution(s) of higher education must have capacity to carry out transportation-related advanced component testing and evaluation, with laboratories capable of testing and evaluation, and direct access to or a partnership with a testing facility capable of emulating real-world circumstances in order to test low or no emission components.

LoNo-CAP differs from the Bus Testing Program (Section 5318) in that LoNo-CAP testing is voluntary; it will only test components, and it will not assign passing or failing scores. The LoNo component testing performed under LoNo-CAP complements the Section 5318 Bus Testing Program, under which FTA will continue to test complete buses as a condition of eligibility for FTA grant funding. Eligible activities under LoNo-CAP include testing and assessing voluntarily submitted Lo-No components for transit buses, publishing the results of these LoNo component assessments, and preparing an annual report to Congress summarizing the results of the component assessments.
For more information on the LoNo-CAP, please contact Marcel Belanger at marcel.belanger@dot.gov or visit: https://www.transit.dot.gov/research-innovation/lonocap.

TCRP is a cooperative effort of three organizations: FTA; the National Academies, acting through the Transportation Research Board (TRB); and the Transit Development Corporation, Inc. (TDC), a nonprofit educational and research organization established by the American Public Transportation Association (APTA). FTA funds the TCRP through a cooperative agreement and it is governed by an independent board—the TCRP Oversight and Project Selection (TOPS) Committee. The TOPS Committee sets priorities to decide what research studies will be undertaken and annually selects projects. The FY 2017 selected projects can be found at
http://www.trb.org/TCRP. For more information about TCRP, please contact Faith Hall at faith.hall@dot.gov.

Pursuant to the Small Business Innovation Development Act, a portion of the 5312 funds must be set aside for the Department's SBIR program to address high priority research that will demonstrate innovative, economic, accurate, and durable technologies, devices, applications, or solutions to significantly improve current transit-related service including transit vehicle operation, safety, infrastructure and environmental sustainability, mobility, rider experience, or broadband communication. Information on current and past SBIR projects can be found on the DOT SBIR Web site.

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

The Technical Assistance and Workforce Development program, 49 U.S.C. 5314, provides assistance to: (1) Carry out technical assistance activities that enable more effective and efficient delivery of transportation services, foster compliance with Federal laws, and improve public transportation service; (2) develop standards and best practices for the transit industry; and (3) address public transportation workforce needs through research, outreach, training and the implementation of a frontline workforce grant program, and conduct training and educational programs in support of the public transportation industry.

For more information or questions about the Technical Assistance and Workforce Development programs, please contact Edwin Rodriguez, Office of Research, Demonstration, and Innovation at (202) 366-0671 or Edwin.rodriguez@dot.gov.

1. Authorized Amounts

The Technical Assistance and Workforce Development Program is at $14 million in FY 2017. Under the Further Continuing and Security Assistance Appropriations Act, 2017 $5,163,475 is authorized through April 28, 2017 as shown in the table below.

2. FY 2017 Funding Availability

Technical Assistance and Workforce Development Funds Available Thru April 28, 2017

Technical Assistance, Standards Development & Human Resource Training
$2,294,878

National Transit Institute
2,868,597

Total Appropriated
5,163,475

3. Basis for Formula Apportionment

Under the Technical Assistance and Workforce Development Program, $2,868,597 is available for the NTI. The remaining $2,294,878 will be allocated in support of FTA and USDOT strategic goals for technical assistance, standards development, and workforce development. Projects may be selected through sole source, Notices of Funding Opportunity (NOFO) or Requests for Proposals (RFPs). Potential recipients can register to receive notification of funding availability under this program on
Grants.gov
. Once selected, FTA enters into cooperative agreements, grants, contracts, or other agreements to award funds and manage the projects carried out under this section.

4. Requirements

Eligible expenses include activities involving: (a) Technical assistance; (b) standards development; and (c) human resources and training, including workforce development programs and activities. Eligible technical assistance activities may include activities to support: (a) Compliance with the ADA; (b) compliance with coordinating planning and human services transportation; (c) meeting the transportation needs of elderly individuals; (d) increasing transit ridership in coordination with MPOs and other entities, particularly around transit-oriented development; (e) addressing transportation equity with regard to the effect that transportation planning, investment, and operations have for low-income and minority individuals; (f) facilitating best practices to promote bus driver safety; (g): compliance with Buy America requirements and pre- and post-award audits; (h) assisting with the development and deployment of low and no emission vehicles or components for vehicles; (i) and other technical assistance activities that are necessary to advance the interests of public transportation.

Eligible standards development activities include the development of voluntary and consensus-based standards and best practices by the industry including those needed for safety, fare collection, intelligent transportation systems, accessibility, procurement, security, asset management, operations, maintenance, vehicle propulsion, communications, and vehicle electronics.

Eligible human resources and training activities include (a) employment training programs; (b) outreach programs to increase employment for veterans, females, individuals with

disabilities, and minorities in public transportation; (c) research on public transportation personnel and training needs; (d) training and assistance for veteran and minority business opportunities; and (e) consensus-based national training standards and certifications in partnership with industry stakeholders. FTA funding directly allocated for these eligible purposes must be done through a competitive frontline workforce development program as required by section 5314. Should FTA allocate funds for these purposes, it will advertise the available funding in a Notice of Funding Opportunity (NOFO) on
Grants.gov
and on its Web site. In the meantime, recipients of funds under sections 5307, 5337, and 5339 may 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.

The Government's share of the cost of a project carried out using a grant under this section shall not exceed 80 percent. However, for the human resources and training, including the Innovative Public Transportation Frontline Workforce Development Program, the Government's share cannot exceed 50 percent. The Federal share for other types of awards will be stated in the agreement. In some cases, FTA may require a higher non-Federal share if FTA determines a recipient would obtain a clear and direct financial benefit from the project, or if the non-Federal share is an evaluation factor under a competitive selection process.

The non-Government share of the cost of a project carried out under these sections (Technical Assistance and Standards and Technical Assistance and Training) may be derived from in-kind contributions as defined in the most current version of FTA Circular 5010, “Award Management Guidelines” found on FTA's Circular Web page at
http://www.fta.dot.gov/circulars
). Application instructions and program management guidelines are set forth in FTA Circular 6100.1E, “Research, Technical Assistance and Training Programs: Application Instructions and Program Management Guidelines” dated May 11, 2015.

All research recipients are required to work with FTA to develop approved statements of work. There is no match requirement for the National Transit Institute.

5. Period of Availability

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

6. Other Program Information

FTA publishes an annual report to Congress on the technical assistance and standards activities that receive assistance under this section. Additionally, FTA must report annually on the Frontline Workforce Development Program. These reports can be found on FTA's Web site.

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

FTA's Emergency Relief (ER) Program is authorized to provide funding for public transportation expenses incurred as a result of an emergency or major disaster. No funding was provided in the Further Continuing and Security Assistance Appropriations Act, 2017 for this program.

In the event funds are appropriated to this program to assist in responding to a publicly declared emergency or disaster, eligible expenses will include emergency operating expenses, such as evacuations, rescue operations, and expenses incurred to protect assets in advance of a disaster, as well as capital projects to protect, repair, reconstruct, or replace equipment and facilities of a public transportation system that the Secretary determines is in danger of suffering serious damage or has suffered serious damage as a result of an emergency. Additionally, transit agencies in the affected areas may request relief from certain FTA administrative and regulatory requirements for costs incurred in support of evacuations, rescue efforts, and the efficient shut down and resumption of transit services during and after the storm. Requests for relief from these requirements may be submitted to FTA's Emergency Relief Docket at
https://www.regulations.gov/.
The docket number for calendar year 2017 is FTA-2017-0001.

FTA also encourages transit agencies in affected areas to become familiar with FTA's Emergency Relief Program Manual, available at
transit.dot.gov/emergencyrelief.
Should funding be made available by Congress through FTA's Emergency Relief Program, or at FEMA's direction, FTA will work with agencies to assess the impacts of the storm, including emergency operations and any potential damages to transit rolling stock or facilities.

While Congress has not provided funding for this program in FY 2017, so far recipients of FTA funding affected by a declared emergency or disaster are authorized to use funds apportioned under sections 5307 and 5311 for emergency purposes under the provisions of FTA's Emergency Relief Program. Recipients are advised that formula funds disbursed to a grantee for emergency purposes will not be replaced or restored in the event that funding is subsequently made available through FTA under the ER Program or by the Federal Emergency Management Agency (FEMA).

In the event of a disaster affecting a public transportation system, the affected recipient should contact its FTA Regional Office as soon as practicable to determine whether Emergency Relief Program funds are available, and to notify FTA that it plans to seek reimbursement for emergency operations and/or repairs that have already taken place or are in process. If Emergency Relief funds are unavailable the recipient may seek reimbursement from FEMA. Properly documented costs for which the grantee has not received reimbursement from FEMA may later be reimbursed by grants made either from Emergency Relief Program funding (if appropriated) or from sections 5307 and 5311 program funding, once the eligible recipient formally applies to FTA for reimbursement and FTA determines that the expenses are eligible for emergency relief.

More information on the Emergency Relief Program and FTA's response to Hurricane Sandy is available on the FTA Web site at
https://www.transit.dot.gov/funding/grant-programs/emergency-relief-program/emergency-relief-program.

For more information or questions on this program, please contact Adam Schildge
at 202-366-0778 or www.adam.schildge@dot.gov.

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

The State Safety Oversight Formula Program provides funding to support States with rail fixed guideway public transportation systems (rail transit systems) to develop and carry out State Safety Oversight (SSO) Programs consistent with the requirements of 49 U.S.C. 5329.

For more information or questions on the Public Transportation Safety program, please contact Maria Wright at (202) 366-5922 or maria1.wright@dot.gov.

1. Authorized Amounts

Federal transit law authorizes $23,148,419 in FY 2017 to provide funding to support States in developing and carrying out the SSO Program.

2. FY 2017 Funding Availability

Under the Further Continuing and Security Assistance Appropriations Act, 2017 $13,020,292 is available through April 28, 2017 for the period October 1, 2016 through April 28, 2017 for the State Safety Oversight (SSO) program as shown in the table below.

Public Transportation Safety Program Funds Apportioned Thru April 28, 2017

Total Appropriation
$13,020,292

Total Apportioned
13,020,292

3. Basis for Formula Apportionment

FTA will continue to allocate funds to the States by an administrative formula, which is detailed in the
Federal Register
notice apportioning SSO Formula Grant Program FY 2013 and FY 2014 funds (Mar. 10, 2014). Grant funds for the SSO program are apportioned to eligible States using a three-tier formula based on statutory requirements, which apportion sixty percent (60%) of available funds based rail transit system passenger miles (PMT), vehicle revenue miles (VRM), and directional route miles (DRM), twenty percent (20%) of available funds equally to each eligible State, and twenty percent (20%) based on the number of rail transit systems in each state.

4. Requirements

FTA requires each applicant to demonstrate in its grant application that its proposed grant activities will develop, lead to, or carry out a State Safety Oversight program that meets the requirements under 49 U.S.C. 5329(e). Grant funds may be used for program operational and administrative expenses, including employee training activities. Please see the
Federal Register
notice which apportioned SSO Formula Grant Program FY 2013 and FY 2014 funds (79 FR 13380, Mar. 10, 2014) for more information.

5. Period of Availability

SSO Formula Grant Program funds are available for the year of apportionment plus two additional years. Any FY 2017 funds that remain unobligated at the close of business on September 30, 2019 will revert to FTA for reapportionment under the SSO Formula Grant Program.

6. Other Program Information

Section 5329 authorizes FTA to temporarily assume oversight of a rail transit safety system, under certain circumstances. FTA also has the authority to issue restrictions and prohibitions to address unsafe conditions or practices. On August 11, 2016, FTA published a final rule to set procedures for FTA's administration of the Public Transportation Safety Program. The final rule provides procedures whereby FTA may: (1) Require a recipient to use Chapter 53 funds to correct safety violations identified by the Administrator or a State Safety Oversight Agency before such funds are used for any other purpose, or (2) withhold up to than 25 percent of funds apportioned under 49 U.S.C. 5307 from a recipient when the Administrator has evidence that the recipient has engaged in a pattern or practice of serious safety violations, or has otherwise refused to comply with the Public Transportation Safety Program, or any regulation or directive issued under those laws for which the Administrator exercises enforcement authority for safety.

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

The State of Good Repair Program provides financial assistance to designated recipients in Urbanized Areas (UZAs) with fixed guideway and high intensity motorbus systems for capital investments that maintain, rehabilitate, and replace aging transit assets and bring fixed guideway and high intensity motorbus systems into a state of good repair. FTA apportions funds for this program through a statutory formula using data reported to the National Transit Database (NTD).

For more information or questions on the State of Good Repair program, please contact Eric Hu at (202) 366-0870 or erichu@dot.gov.

1. Authorized Amounts

Federal transit law authorizes $2,549,670,000 in FY 2017 for the State of Good Repair Program.

2. FY 2017 Funding Availability

Under the Further Continuing and Security Assistance Appropriations Act, 2017 $1,438,314,657 is available through April 28, 2017. The total amount apportioned is $1,423,931,511 after the deduction for oversight as shown in the table below, after the deduction for oversight (authorized by section 5338).

State of Good Repair Program Funds Apportioned FY 2017

Total Appropriation Available through April 28, 2017
$1,438,314,657

Oversight Deductions
(14,383,147)

Total Apportioned
1,423,931,511

3. Basis for Formula Apportionment

FTA apportions State of Good Repair Program funds according to a statutory formula. Funds are apportioned to urbanized areas with high intensity fixed guideway and high intensity motorbus systems that have been in operation for at least seven years. This means that only segments of high intensity fixed guideway and high intensity motorbus systems that entered into revenue service on or before September 30, 2009 are included in the formula, as identified in the NTD. Funds apportioned to urbanized areas with high intensity fixed guideway and motorbus systems are determined by two equal elements: (1) The proportion of the amount an urbanized area would have received in FY 2011 to the total amount apportioned to all urbanized areas in the FY 2011 Fixed Guideway Modernization program using the fixed guideway definition defined in prior law; and (2) the proportion of vehicle revenue miles of an urbanized area to the total vehicle revenue miles of all urbanized areas and the proportion of directional route miles of an urbanized area to the total directional miles of all urbanized areas. 97.15 percent of the total appropriation is apportioned to the fixed guideway tier, the remaining 2.85 percent is apportioned to the high-intensity motorbus tier.

4. Requirements

In addition to the program guidance found in the FTA Circular 5300.1, “State of Good Repair Grants Program: Guidance and application Instructions” all recipients will need to comply with the rule issued under section 5326 for the Transit Asset Management plan (TAM).

5. Period of Availability

The State of Good Repair Program funds apportioned in this notice are available for obligation during FY 2017 plus three additional years. Accordingly, funds apportioned in FY 2017 must be obligated in grants by September 30, 2020. Any FY 2017 apportioned funds that remain unobligated at the close of business on September 30, 2020 will revert to FTA for reappointment under the State of Good Repair Program.

6. Other Program Information

In July 2016, FTA published a Final Rule for Transit Asset Management (81 FR 48890, July 26, 2016). Grantees must have a TAM plan in place by October 1, 2018. Beginning in FY 2019 all projects funded under the State of Good Repair Program must appear in the investment prioritization of the grantees TAM plan.

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

The Grants for Buses and Bus Facilities Program provides financial assistance to states and designated recipients for capital investments in public transportation systems to replace, rehabilitate and purchase buses and related equipment and to construct bus-related facilities, including technological changes or innovations to modify low or no emission vehicles or facilities. Funding is provided through formula allocations and competitive grants. A sub-program, the Low- or No-Emission Vehicle Program, provides competitive grants for bus and bus facility projects that support low and zero-emission vehicles.

For more information or questions on the Grants for Buses and Bus Facilities Program, please contact Vanessa Williams at (202) 366-4818 or vanessa.williams@dot.gov. For information or questions regarding the competitive Low or No Emissions Grant Program, contact Tara Clark at (202) 366-2623 or tara.clark@dot.gov.

1. Authorized Amounts

Federal transit law authorizes $719,960,000 in FY 2017, to provide financial assistance for the Grants for Buses and Bus Facilities Program.

2. Funding Availability

Under the Continuing Appropriations Act of 2017, $399,193,992 is available through April 28, 2017. After the 0.75 percent take-down for oversight, $396,200,037 is available after the deduction for oversight, as shown in the table below.

Grants for Buses and Bus Facilities—FY 2017

Total Appropriation (Formula)
$245,437,180

Oversight Deduction
(1,840,779)

Total Apportioned (Formula)
243,596,401

Total Appropriation (Low No Competition)
31,554,570

Oversight Deduction
(236,659)

Total to be Allocated (Competition)
31,317,910

Total Appropriation (Bus Competition)
122,202,243

Oversight Deduction
(916,517)

Total to be Allocated (Competition)
121,285,726

3. Basis for Formula Apportionment

Buses and Bus Facilities Program formula funds are apportioned to States, territories, and designated recipients based on a statutory formula. Under the National Distribution, each State is allocated $1.0 million and each territory is allocated $286,860 for use anywhere in the State or territory for each of fiscal years 2016 through 2020. The remainder of the available funding is then apportioned to UZAs based on population, vehicle revenue miles, and passenger miles using the same apportionment formula and allocation process as the Urbanized Area Formula Program. Funds for UZAs under 200,000 in population are apportioned to the State for allocation to eligible recipients within such areas of the State at the Governor's discretion. Funds for UZAs with populations of 200,000 or more are apportioned directly to one or more designated recipient(s) within each UZA for allocation to eligible projects and recipients within the UZA.

FTA allocates funds under the competitive section 5339(b) and 5339(c) programs on an annual basis based on a notice of funding opportunity, which contains detailed guidance on applicant eligibility, project eligibility, evaluation criteria, and application requirements.

4. Requirements

Eligible recipients for section 5339(a) formula grants include: (1) Designated recipients that allocate funds to fixed route bus operators, and (2) States local governmental entities that operate fixed route bus service. Eligible subrecipients to include public agencies or private nonprofit organizations engaged in public transportation, including those providing services open to a segment of the general public, as defined by age, disability, or low income. The definition of eligible recipients applies to funding apportioned in previous fiscal years that remain available for obligation. The requirements of the Urbanized Area Formula Program apply to recipients of section 5339 funds within an urbanized area. The requirements of Rural Areas Formula Program apply to recipients of section 5339 funds within rural areas.

Under prior law, only designated recipients were eligible direct recipients of section 5339(a) funds. Given that State and local government entities that operate fixed route service are now eligible direct recipients of section 5339(a) funds. FTA does not require designated recipients to maintain program management plans (PMPs) if they do not manage any sub-awards of section 5339 funds.

For additional program requirements, refer to FTA Circular 5100, “Bus and Bus Facilities Formula Program: Guidance and Application Instructions.”

5. Period of Availability

The Bus and Bus Facilities Program formula funds apportioned in this notice are available for obligation during FY 2017 plus three additional years. Accordingly, funds apportioned in FY 2017 must be obligated in grants by September 30, 2020. Any FY 2017 apportioned funds that remain unobligated at the close of business on September 30, 2020 will revert to FTA for reapportionment under the Bus and Bus Facilities Formula Program. Competitive program funds authorized under sections 5339(b) and 5339(c) follow the same period of availability.

6. Other Program Information

Although it does not provide additional funding, as authorized under section 5339(a)(9), FTA has established a pilot program to allow designated recipients in urbanized areas between 200,000 and 1 million in population to elect to pool their Bus and Bus Facilities Program formula allocations with other designated recipients within their respective states. The purpose of this provision is to allow for the transfer of formula funding within a State in a manner that supports the transit asset management plans of the participating designated recipients. A State that intends to participate in this pilot program beginning in FY 2018 must submit a request to establish a State Pool to its FTA Regional Office by August 31, 2017. The request must identify the urbanized areas that will participate in the pool for FY 2018, and must include a letter from each participating designated recipient, and from any affected eligible recipients of section 5339(a) funds within the urbanized area, indicating their intention to participate in this pooling provision for FY 2017. An urbanized area that participates in a State Pool must contribute its entire section 5339(a) apportionment for the fiscal years in which it participates in the pool. A designated recipient for a multistate area may participate in only one State Pool. A State that does not establish a State Pool in FY 2018 may

choose to begin participating in this provision in a future fiscal year, but should be aware that the benefits of pooling program funds will be diminished over a shorter duration. For FY 2018, the request must specify the proposed distribution of the pooled funding and must provide a detailed explanation of how this distribution will support the transit asset management plans of each participating designated recipient, including any eligible recipients to which the designated recipient will allocate funding. Upon approval, FTA will make the requested amounts of program funding available to the urbanized areas as directed in the request. A State that elects to participate in this pilot program will be required to develop an allocation plan for the period of fiscal years 2018 through 2020 that ensures that a designated recipient participating in the State's pool receives under the program an amount of funds that equals the amount of funds that would have otherwise been available to the designated recipient for that period pursuant to the formulas provided. The amounts in the State Pool will be apportioned separately from funds apportioned to the State under the Governor's Apportionment for urbanized areas under 200,000 in population, and will be made available directly by FTA to the participating urbanized areas, as directed in the approved allocation plan. An allocation plan may be revised for future fiscal years, provided that it remains compliant with the requirement to ensure equity over the period the pool is in effect. Approved requests to establish a State Pool for the specified UZAs will remain in effect until cancelled at the request of the State or one or more designated recipients. If a State or designated recipient elects to end its participation in this pooling provision in any future fiscal year, FTA will adjust the formula allocations so that the total amount that each affected urbanized area has received over the fiscal years in which it participated, plus the following apportionment, equals the amount it would have received over this period had it not participated in the State pool. Adjustments will be made using the formula apportionment factors used for each of the affected fiscal years. After the pools are determined, FTA will publish a supplementary table showing the participating UZAs, the State total, and the amounts for each UZA for FY 2017. In future years, the States must provide the amounts determined by August 31 (in an updated allocation plan), so that FTA can publish the breakdowns and make the funds available in the Apportionment Notice.

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

Federal transit law authorizes the use of formula factors to distribute additional funds to the section 5307 and Rural Areas Formula Program programs for growing states and high density states. FTA will continue to publish single urbanized and rural apportionments that show the total amount for section 5307 and 5311 programs that includes section 5340 apportionments for these programs.

For more information or questions on this program, please contact Tara Clark at (202) 366-2623 or
tara.clark@dot.gov.

1. Authorized Amounts

Federal transit law authorizes $544,433,788 for apportionment in FY 2017 for the Growing States and High Density States Formula factors.

2. FY 2017 Funding Availability

Under the Further Continuing and Security Assistance Appropriations Act, 2017 $307,663,675 is available through April 28, 2017.

Growing states and high density states formula factors available thru April 28, 2017
2017

Growing States
$156,222,132

High Density States
151,441,543

Total Apportioned
307,663,675

3. Basis for Formula Apportionment

Under the Growing States portion of the section 5340 formula, FTA projects each State's 2025 population by comparing each State's apportionment year population (as determined by the Census Bureau) to the State's 2010 Census population and extrapolating to 2025 based on each State's rate of population growth between 2010 and the apportionment year. Each State receives a share of Growing States funds on the basis of its projected 2025 population relative to the nationwide projected 2025 population.

Once each State's share is calculated, funds attributable to that State are divided into an urbanized area allocation and a non-urbanized area allocation on the basis of the percentage of each State's 2010 Census population that resides in urbanized and non-urbanized areas. Urbanized Areas receive portions of their State's urbanized area allocation on the basis of the 2010 Census population in that urbanized area relative to the total 2010 Census population in all urbanized areas in the State. These amounts are added to the Urbanized Area's section 5307 apportionment.

The States' rural area allocation is added to the allocation that each State receives under the Rural Areas Formula Program Formula Grants for Rural Areas program.

The High Density States portion of the section 5340 formula are allocated to urbanized areas in States with a population density equal to or greater than 370 persons per square mile. Based on this threshold and 2010 Census data, the States that qualify are Maryland, Delaware, Massachusetts, Connecticut, Rhode Island, New York and New Jersey. The amount of funds provided to each of these seven States is allocated on the basis of the population density of the individual State relative to the population density of all seven States. Once funds are allocated to each State, funds are then allocated to urbanized areas within the States on the basis of an individual urbanized area's population relative to the population of all urbanized areas in that State.

Q. Washington Metropolitan Area Transit Authority Grants

Section 601 of the Passenger Rail Investment and Improvement Act of 2008 (PRIIA) authorized an a

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A2017-01194. Public record. Not legal advice.