FTA Fiscal Year 1995 Apportionments and Allocations; Notice DEPARTMENT OF TRANSPORTATION

SUMMARY: The Department of Transportation (DOT) and Related Agencies

Appropriations Act, 1995 (Pub. L. 103-331), signed into law by

President Clinton on September 30, 1994, provides fiscal year 1995

appropriations for the Federal Transit Administration's transit

assistance programs. Based upon this Act, this Notice contains a

comprehensive list of apportionments/allocations of the various funding

programs.

This Notice includes the apportionment of fiscal year 1995 funds

for the Urbanized Area Formula and Nonurbanized Area Formula Programs,

the Elderly and Persons with Disabilities Program, the Interstate

Substitute Transit Program (23 U.S.C. 103(e)(4)), the Capital Program

including Fixed Guideway Modernization, the Metropolitan Planning

Program and State Planning and Research Program, based on the 1995 DOT

Appropriations Act and Federal transit laws. This Notice also contains

the allocations for the statutorily required funding for New Starts and

Bus under the Capital Program. Statutory limitations on the use of

operating assistance are also included in this Notice, as well as other

pertinent information.

In addition, an expanded FTA policy regarding pre-award authority

to incur project costs is included in this Notice.

Public Law 103-272, signed by President Clinton on July 5, 1994,

codifies Federal transit laws under title 49, chapter 53 of the United

States Code. This Notice uses the new form of citation followed by the

former Federal Transit Act, as amended (FTA Act), citation in

parenthesis.

FOR FURTHER INFORMATION CONTACT: The appropriate FTA Regional

Administrator for grant specific information and issues; Janet Lynn

Sahaj, Chief, Resource Management and State Programs Division, Office

of Capital and Formula Assistance, (202) 366-2053, for general

information about the Urbanized Area Formula and Nonurbanized Area

Formula Programs, the Elderly and Persons with Disabilities Program,

the Capital Program (formerly Sections 9, 18, 16, 3) or the 23 U.S.C.

103(e)(4) Interstate Substitute Transit Program; or Sam Zimmerman,

Director, Office of Planning, (202) 366-2360, for general information

concerning the Metropolitan Planning and State Planning and Research

Programs (formerly Sections 8 and 26(a)(2)).

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Codification of Federal Transit Laws

II. Background

III. Overview of Appropriations for Grant Programs

A. General

B. Livable Communities Initiative

C. 1996 Summer Olympic Games

D. Project Management Set-Aside

IV. Urbanized Area Formula Program (Formerly Section 9)

A. Total Urbanized Area Formula Apportionments

B. Data Used for Urbanized Area Formula Apportionments

C. Adjustments for Energy and Operating Efficiencies

D. Repayment of Temporary Matching Fund Waivers

E. Urbanized Area Formula Fiscal Year 1995 Apportionments to

Governors

F. Urbanized Area Formula Operating Assistance Limitations

G. Statewide Operating Assistance Limitations

H. Designated Transportation Management Areas

I. Urbanized Area Formula Funds Used for Highway Purposes

V. Nonurbanized Area Formula Program (Formerly Section 18) and Rural

Transit Assistance (RTAP) Program

A. Nonurbanized Area Formula Program

B. RTAP Program

VI. Elderly and Persons with Disabilities Program (Formerly Section

16)

VII. Title 23 Interstate Substitute Transit Program

VIII. Surface Transportation Program ``Flexible'' Funds Used for

Transit Purposes

A. Transfer Process

B. Matching Share for Flexible Funds

C. Other Funds Transferred to FTA

IX. Capital Program (Formerly Section 3)

A. Fixed Guideway Modernization

B. New Starts

C. Bus

X. Unit Values of Data for Urbanized Area Formula and Nonurbanized

Area Formula and Programs, and Fixed Guideway Modernization Formula

XI. Metropolitan Planning and State Planning and Research Programs

(Formerly Sections 8 and 26(a)(2))

A. Metropolitan Planning Urbanized Area Program

B. State Planning and Research Program

C. Data Used for Metropolitan Planning and State Planning and

Research Apportionments

XII. Period of Availability of Funds

XIII. Notice and Pre-Award Authority to Incur Project Costs

A. Background

B. Expanded Coverage

C. Conditions

D. Environmental and Other Requirements

XIV. Electronic Grant Making and Management (EGMM) Initiative:

Fiscal Year 1995 and Beyond

XV. Quarterly Approval of Grants

XVI. Grant Application Procedures

Tables

1. FTA Fiscal Year 1995 Appropriations for Grant Programs

2. FTA Fiscal Year 1995 Urbanized Area Formula Apportionments

(Formerly Section 9)

3. FTA Fiscal Year 1995 Nonurbanized Area Formula Apportionments

(Formerly Section 18) and Rural Transit Assistance Program (RTAP)

Allocations

4. FTA Fiscal Year 1995 Elderly and Persons with Disabilities

Apportionments (Formerly Section 16)

5. FTA Fiscal Year 1995 Interstate Substitute Tranist Apportionments

6. FTA Fiscal Year 1995 Fixed Guideway Modernization Formula

Apportionments

7. FTA Fiscal Year 1995 New Start Allocations

8. FTA Fiscal Year 1995 Bus Allocations

9. FTA Fiscal Year 1995 Metropolitan Planning and State Planning and

Research Apportionments (Formerly Sections 8 and 26(a)(2))

10. Unit Values of Data--FTA Fiscal Year 1995 Urbanized Area Formula

and Nonurbanized Area Formula Programs, and Fixed Guideway

Modernization Formula Apportionments (Formerly Sections 9, 18, and

3)

I. Codification of Federal Transit Laws

On July 5, 1995, President Clinton signed Public Law 103-272, which

codifies Federal transit laws under title 49, chapter 53 of the United

States Code. The enactment of Public Law 103-272 repeals the FT Act

without substantive change, which means that the original meaning of

the FT Act provisions are unchanged by this codification, even though

the new language in some instances differs from that of the FT Act. The

codification includes laws enacted through June 30, 1993. Provisions

enacted after that date, and revisions to title 49, chapter 53, will be

reflected in subsequent legislation now being drafted in Congress. This

Notice accordingly uses the new form of citation followed by the

relevant FT Act citation in parentheses. Listed below are the most

commonly used citations:

------------------------------------------------------------------------

49 U.S.C.

Federal Transit Act Sec. Subject

------------------------------------------------------------------------

Section 3.................... 5309...... Capital Program.

Section 8.................... 5303...... Metropolitan Planning

Program.

Section 9.................... 5307...... Urbanized Area Formula

Program.

Section 13(c)................ 5333(b)... Labor Protection

Certification.

Section 16................... 5310...... Elderly and Persons with

Disabilities Program.

Section 18................... 5311...... Nonurbanized Area Formula

Program.

Section 26(a)(2)............. 5313/5314. State Planning and Research.

------------------------------------------------------------------------

II. Background

Urbanized Area Formula Program funds are apportioned by statutory

formula to urbanized areas and to the Governors to provide capital,

operating and planning assistance in urbanized areas. Nonurbanized Area

Formula Program funds are apportioned by statutory formula to the

States for capital and operating assistance in nonurbanized areas.

Elderly and Persons with Disabilities Program funds are apportioned by

statutory formula to the States to provide capital assistance to

organizations providing transportation service for elderly persons and

persons with disabilities. Interstate Substitute Transit funds are

apportioned by formula to areas that have withdrawn planned interstate

routes. Fixed Guideway Modernization Formula funds are apportioned by

statutory formula to specified urbanized areas for capital improvements

in rail and other fixed guideways. Funds appropriated under the

Metropolitan Planning Program are apportioned by a statutory formula to

the States for allocation by them to Metropolitan Planning

Organizations (MPOs) in urbanized areas or portions thereof.

Appropriated funds under the State Planning and Research Program also

are apportioned to States by a statutory formula. New Start earmarks in

the 1995 DOT Appropriations Act and all Bus fund allocations in its

accompanying Conference Report are also included in this Notice.

III. Overview of Appropriations for Grant Programs

A. General

In fiscal year 1995, the appropriation for the Urbanized Area

Formula and Nonurbanized Area Formula Programs is $2,416,847,844. Of

this amount, 94.50 percent ($2,283,921,213) is made available to the

Urbanized Area Formula Program; and 5.50 percent ($132,926,631) is made

available to the Nonurbanized Area Formula Program. The other program

appropriations contained in this Notice are as follows: $4,612,500 for

the Rural Transit Assistance Program (RTAP); $59,152,156 for the

Elderly and Persons with Disabilities Program; $41,512,500 for the

Metropolitan Planning Program; $8,475,000 for the State Planning and

Research Program; $48,030,000 for the Interstate Substitute Transit

Program; and $1,725,000,000 for the Capital Program. Of the Capital

Program amount, $725,000,000 is for Fixed Guideway Modernization,

$646,670,000 is for New Starts and $353,330,000 is for Bus.

Table 1 displays the amounts appropriated for these programs,

including adjustments and final apportionment/allocation amounts. The

text following this table provides a narrative explanation for the

funding levels and other factors affecting these apportionments/

allocations.

B. Livable Communities Initiative

FTA urges that grantees incorporate to the extent possible the

concepts of ``livable communities'' into the transit and planning

projects funded with Federal assistance being made available by this

Notice and funds transferred from highway programs. The Livable

Communities Initiative recognizes that transit programs can be

instrumental in shaping the nature of community development and

represent an important tool for enhancing the vitality of individual

communities and neighborhoods served by our regional transit systems.

Transit facilities and stations can become energetic local activity

centers providing convenient shopping, business, and educational

opportunities as well as other needed social services like health and

day care. They can serve as focal points for attractive mixed used

development. Transit services, appropriately sized to community needs,

can bind the community together and provide an environmentally

attractive alternative to automobile travel and a safe and affordable

means of transport for those who might otherwise find it difficult to

have full access to community activities.

Livable communities concepts include: (1) Careful coordination of

transit planning with community development planning leading to

neighborhoods where housing, schools, and parks are within easy walking

distance of user-friendly transit that links residents with local

social and economic services and jobs; (2) alternatives to the

automobile such as transit, pedestrian, and bicycle access and

operational improvements such as guaranteed ride home services,

neighborhood shuttles, and user-friendly fare collection systems that

encourage transit use; (3) mixed-use neighborhoods with residential

areas complemented by office and commercial development, green or open

spaces, and public services (also transit facilities such as major bus

stops or train stations are designed to include , other enterprises

that are useful to transit passengers, e.g., day care centers); (4)

safe, secure, and customer-friendly streets, transit facilities, and

pedestrian walkways; and (5) full community participation in the

decision-making process by neighborhood organizations, small and

minority businesses, and interested individuals.

FTA will soon be issuing guidance on the Livable Communities

Initiative. This initiative will highlight and demonstrate the benefits

of livable communities by providing technical assistance along with a

limited amount of funding for planning and capital grants.

C. 1996 Summer Olympic Games

The 1995 DOT Appropriations Act has made available $16,000,000 for

costs associated with unique transportation requirements of the

Centennial Olympic Games and Paralympic Games, which will take place in

Atlanta, Georgia, in summer 1996. These funds will be used for the

round-trip delivery costs and preparation of roughly 2,000 buses being

made available by transit authorities around the country to support the

unique transportation requirements of the Olympic and Paralympic Games.

D. Project Management Set-Aside

49 U.S.C. 5327 (formerly Section 23 of the FT Act), allows the

Secretary of Transportation to use not more than one-half of one

percent of the funds made available under the Capital Program, the

Urbanized Area Formula and Nonurbanized Area Formula Programs, the

National Capital Transportation Act, as amended, and the Interstate

Substitute Transit Program, and an additional one-quarter of one

percent of Capital Program funds, to contract with any person to

oversee the construction of any major project under these statutory

programs and to conduct safety, procurement, management and financial

reviews and audits. Therefore, one-half of one percent of the funds

appropriated for fiscal year 1995 for the programs noted above, and

three-quarters of one percent of Capital Program funds have been

reserved for this purpose before apportionment of the funds.

IV. Urbanized Area Formula Program (Formerly Section 9)

A. Total Urbanized Area Formula Apportionments

In addition to the appropriated fiscal year 1995 Urbanized Area

Formula funds of $2,283,921,213, the apportionment also includes

$24,351,386 in deobligated Urbanized Area Formula funds (including

formerly Section 5 formula funds) which have become available for

reapportionment under the Urbanized Area Formula Program as provided

for under 49 U.S.C. 5336(i) (formerly section 9(o)).

Table 2 displays the amount apportioned for the Urbanized Area

Formula Program. After the one-half percent set-aside ($11,419,606),

the amount appropriated under this program is $2,272,501,607. The funds

to be reapportioned, described in the previous paragraph, were then

added. Thus, the total amount apportioned for this program is

$2,296,852,993.

B. Data Used for Urbanized Area Formula Apportionments

Data from the 1993 National Transit Database (Section 15) Report

Year submitted in late 1993 and early 1994 have been used to calculate

the fiscal year 1995 Urbanized Area Formula apportionments for

urbanized areas over 200,000 in population. The population and

population density figures used in calculating the Urbanized Area

Formula are from the 1990 Census.

C. Adjustments for Energy and Operating Efficiencies

49 U.S.C. 5336(b)(2) (formerly section 9(b)(4) of the FT Act)

provides that, if a recipient under this section demonstrates to the

satisfaction of the Secretary that energy or operating efficiencies

would be achieved by actions that reduce revenue vehicle miles but

provide the same frequency of revenue service to the same number of

riders, the recipient's apportionment under 49 U.S.C. 5336 (formerly

Section 9(b)(2)(A)) shall not be reduced as a result of such actions.

One recipient has submitted data acceptable to FTA in accordance with

this provision. Accordingly, the revenue vehicle miles used in the

Urbanized Area Formula database to calculate the fiscal year 1995

Urbanized Area Formula apportionment reflect the amount the recipient

would have received without the reductions in mileage.

D. Repayment of Temporary Matching Fund Waivers

Under the Temporary Matching Fund Waiver provision authorized at 49

U.S.C. 5307(i)(3) (formerly Section 9(g)(3)), grantees have been able

to request a Federal share of 100 percent up to the area's total

apportionment. Four grants or amendments have been awarded which employ

the temporary waiver of local matching funds for Urbanized Area Formula

grants approved in fiscal years 1992 and 1993. The local share amounts

for these grants had to be repaid by March 30, 1994. If not repaid, the

amount owed will be deducted from the area's fiscal years 1995 and 1996

Urbanized Area Formula apportionments.

All affected grantees have opted to have their future

apportionments reduced rather than pay back funds. Accordingly, the FTA

is reducing the areas' future apportionments to reflect the amount

owed. The local share payment amount for each project was determined by

dividing the project's total disbursement amount through September 30,

1994, by the project's total Federal capital obligations. The

calculated percentage was then applied to the project's original local

share waived amount. Of the calculated amount determined for repayment,

50 percent has been deducted from the fiscal year 1995 Urbanized Area

Formula apportionment. The remaining 50 percent will be deducted in

fiscal year 1996. The dollar amounts published in this Notice reflect

these fiscal year 1995 adjustments, and the affected areas have been so

advised.

E. Urbanized Area Formula Fiscal Year 1995 Apportionments to Governors

The total Urbanized Area Formula apportionment to the Governor for

use in areas under 200,000 in population for each State is shown on

Table 2. Table 2 also contains the total apportionment amount

attributable to each of the urbanized areas within the State. The

Governor may determine the allocation of funds among the urbanized

areas under 200,000 in population with one exception. As further

discussed below, funds attributed to an urbanized area under 200,000,

which is within the planning boundaries of a transportation management

area, must be obligated in that area.

F. Urbanized Area Formula Operating Assistance

Limitations

The fiscal year 1995 limitations on the amount of Urbanized Area

Formula funds that may be used for operating assistance are included in

Table 2 with the fiscal year 1995 apportionment.

The operating assistance limitations for all urbanized areas have

been increased under 49 U.S.C. 5336(d)(2) (formerly section 9(k)(2)(B)

of the FT Act) to reflect the increase in the Consumer Price Index

(CPI) for all urban consumers during the most recent calendar years.

The CPI Detailed Report, December 1993, published by the Department of

Labor (DOL), indicates the calendar year 1993 CPI increase for all

urban consumers is 2.7 percent. This increase was applied against the

base operating assistance limitation calculated under 49 U.S.C.

5336(d)(2) (formerly section 9(k)(2)(A) of the FT Act).

This increase results in an overall national fiscal year 1995

authorized operating assistance limitation level of $1,083,663,529.

However, the 1995 DOT Appropriations Act limits the nationwide

availability for operating assistance to a maximum of $710,000,000.

Accordingly, the operating assistance limitation published in this

Notice takes into account both the 1995 DOT Appropriations Act and

Federal transit laws. Therefore, the higher operating assistance

limitation under Federal transit laws ($1,083,663,529) has been reduced

to the $710,000,000 required by the 1995 DOT Appropriations Act by

taking a pro rata reduction across all categories of grantees.

G. Statewide Operating Assistance Limitations

49 U.S.C. 5307(a)(2) (formerly section 9(m)(1) of the FT Act)

specifies that in any case in which a statewide agency or

instrumentality is responsible under State laws for the financing,

construction and operation, directly, by lease, contract or otherwise,

of public transportation services, and when such statewide agency or

instrumentality is the designated recipient of FTA funds, and when the

statewide agency or instrumentality provides service among two or more

urbanized areas, the statewide agency or instrumentality shall be

allowed to apply for operating assistance up to the combined total

permissible amount of all urbanized areas in which it provides service,

regardless of whether the amount for any particular urbanized area is

exceeded.

H. Designated Transportation Management Areas

All urbanized areas over 200,000 in population have been designated

as transportation management areas (TMAs), in accordance with 49 U.S.C.

5305 (formerly section 8(i)(1) of the FT Act). These designations were

formally made in a Federal Register Notice dated May 18, 1992 (57 FR

21160), signed by the Federal Highway Administrator and the Federal

Transit Administrator. Additional areas may be designated as TMAs upon

the request of the Governor and the MPO designated for such area or the

affected local officials. As of October 1, 1994, two additional TMAs

have been formally designated: Petersburg, Virginia, comprised solely

of the Petersburg, Virginia, urbanized area; and Santa Barbara, Santa

Maria, and Lompoc, California, which were designated as one TMA.

Guidance for setting the boundaries of TMAs is contained in the

joint transportation planning regulations published in the Federal

Register on October 28, 1993 (58 FR 58040). In some cases, the TMA

boundaries which have been established by the MPO for the designated

TMA also include one or more urbanized areas under 200,000 in

population. Where this situation exists, the discretion of the Governor

to allocate urbanized area formula program ``Governor's Apportionment''

funds for urbanized areas under 200,000 in population is restricted.

49 U.S.C. 5307(a)(2) was modified by the Intermodal Surface

Transportation Efficiency Act of 1991 (ISTEA) to require that a

recipient(s) be designated to dispense the Urbanized Area Formula funds

attributable to TMAs. Those areas that do not already have a designated

recipient must name one and notify the appropriate FTA regional office

of the designation. This would include those urbanized areas under

200,000 in population that may receive TMA designation independently,

or those under 200,000 in population which are currently included

within the boundaries of a larger designated TMA. In both cases, the

Governor would only have discretion to allocate Governor's

Apportionment funds attributable to areas which are outside of

designated TMA boundaries. In order for the FTA and Governors to know

which urbanized areas under 200,000 in population are included within

the boundaries of an existing TMA, and so that they can be identified

in future Federal Register notices, each MPO whose TMA planning

boundaries include these smaller urbanized areas is asked to identify

such areas to the FTA. This notification should be made in writing to

the Associate Administrator for Grants Management, Federal Transit

Administration, 400 7th Street, SW, Washington, DC 20590, no later than

July 1 of each fiscal year. In fiscal year 1994, MPOs notified FTA that

the following urbanized areas under 200,000 in population are included

within the planning boundary of a designated TMA:

------------------------------------------------------------------------

Small urbanized area included in

Designated TMA TWA boundaries

------------------------------------------------------------------------

Baltimore, Maryland................ Annapolis, Maryland.

Philadelphia, Pennsylvania......... Pottstown, Pennsylvania.

Pittsburgh, Pennsylvania........... Monessen, Pennsylvania,

Steubenville-Weirton, OH-WV-PA (PA

portion).

Seattle, Washington................ Bremerton, Washington.

Washington, DC-MD-VA............... Frederick, Maryland (MD portion).

------------------------------------------------------------------------

I. Urbanized Area Formula Funds Used for Highway Purposes

Urbanized Area Formula funds apportioned to a TMA which cannot be

used for the payment of operating expenses (i.e., capital funds) are

also available for highway projects if the following three conditions

are met: (1) Such use must be approved by the MPO after appropriate

notice and opportunity for comment and appeal are provided to affected

transit providers; (2) in the determination of the Secretary, such

funds are not needed for investments required by the Americans with

Disabilities Act of 1990; and (3) funds may be available for highway

projects under title 23, U.S.C., only if funds used for the State or

local share of such highway projects are eligible to fund either

highway or transit projects.

Urbanized Area Formula funds which are designated for highway

projects will be transferred to and administered by the Federal Highway

Administration (FHWA). The MPO should notify FTA of their intent to

program FTA funds for highway purposes.

V. Nonurbanized Area Formula Program (Formerly Section 18) and Rural

Transit Assistance (RTAP) Program

A. Nonurbanized Area Formula Program

The fiscal year 1995 Nonurbanized Area Formula apportionments total

$132,752,946. The State apportionments are displayed on Table 3. A

total of $132,926,631 is appropriated for the Nonurbanized Area Formula

Program. After the one-half percent set-aside ($664,633), the fiscal

year 1995 apportionment also includes $490,948 in prior year

deobligated funds which have become available for reapportionment under

this program. These funds provide capital, operating and administrative

assistance for areas less than 50,000 in population.

Each State must spend no less than 15 percent of its fiscal year

1995 Nonurbanized Area Formula apportionment for the development and

support of intercity bus transportation, unless the Governor certifies

to the Secretary that the intercity bus service needs of the State are

being adequately met. Fiscal year 1995 Nonurbanized Area Formula grant

applications must reflect this level of programming for intercity bus

or include a certification from the Governor. The population figures

used in calculating these apportionments are from the 1990 Census.

B. RTAP Program

The fiscal year 1995 RTAP allocations to the States totaling

$4,612,500 are also displayed on Table 3. The funds are allocated to

the States to undertake research, training, technical assistance, and

other support services to meet the needs of transit operators in

nonurbanized areas. These funds are to be used in conjunction with the

States' administration of the Nonurbanized Area Formula Program.

VI. Elderly and Persons With Disabilities Program (Formerly Section 16)

A total of $59,152,156 is apportioned to the States for fiscal year

1995 under the Elderly and Persons with Disabilities Program. Table 4

shows each State's apportionment.

The formula for apportioning these funds uses 1990 Census

population data for persons aged sixty-five and over and for persons

with disabilities.

The funds provide capital assistance for transportation for elderly

persons and persons with disabilities. Eligible capital expenses may

include, at the option of the recipient, the acquisition of

transportation services under a contract, lease, or other arrangement.

While the assistance is intended primarily for private non-profit

organizations, public bodies that coordinate services for the elderly

and persons with disabilities, or any public body that certifies to the

State that non-profit organizations in the area are not readily

available to carry out the service, may receive these funds.

These program funds may be transferred by the Governor to

supplement the Urbanized Area Formula or Nonurbanized Area Formula

capital funds during the last 90 days of the fiscal year.

VII. Title 23 Interstate Substitute Transit Program

A total of $48,030,000 is appropriated for the Interstate

Substitute Transit Program. Of that amount, $9,500,000 is earmarked for

a substitute transit project in Milwaukee, Wisconsin. The balance of

$38,530,000 is appropriated for other transit projects which have been

substituted for withdrawn interstate highway segments. The funds are

apportioned by formula which reflects the remaining costs to complete

each withdrawal area's substitute transit projects. After the one-half

percent set-aside ($192,585), $38,337,415 of the $38,530,000 remains

for projects. This completes the funding for the Interstate Substitute

Transit Program for these withdrawal areas. Table 5 displays the

apportionment of these funds.

In addition to the funds directly appropriated for Interstate

Substitute Transit projects, Substitute Highway funds apportioned to a

withdrawal area may be transferred from FHWA to FTA to be used for

transit projects.

VIII. Surface Transportation Program ``Flexible'' Funds Used for

Transit Purposes

A. Transfer Process

``Flexible'' DOT funds, such as Surface Transportation Program

(STP) funds, Congestion Mitigation and Air Quality (CMAQ) funds, or

others, which are designated for use on transit projects, are

transferred from the FHWA to FTA for project approval. Flexible funds

programmed for transit projects must result from the local and state

planning and programming process, and must be contained in an approved

State Transportation Improvement Program (STIP) before the funds can be

transferred. In order to initiate the transfer process, the grantee

must submit a completed application to the FTA Regional Office, and

must notify the state highway/transportation agency that it has

submitted an application which requires a transfer of funds. Once the

state highway/transportation agency determines that the state has

sufficient obligation authority, it must notify FHWA that the funds are

to be used for transit purposes and request that they be obligated by

FHWA as a transfer project to FTA. The flexible funds transferred to

FTA will be placed in an urbanized area or state account under one of

the three existing formula programs--Urbanized Area, Elderly and

Persons with Disabilities, or Nonurbanized Area.

They are then treated as FTA formula funds, although they will

retain a special identifying code. The flexible funds may be used for

any non-operating purpose eligible under these FTA programs. All FTA

requirements are applicable to transferred funds. Flexible funds should

be combined with regular FTA formula funds in a single annual grant

application.

B. Matching Share for Flexible Funds

The provisions of Title 23, U.S.C. regarding the non-Federal share

apply to Title 23 funds used for transit projects. Thus, flexible funds

transferred to FTA retain the same matching share that such funds would

have if used for highway purposes and administered by the FHWA.

There are three instances in which a higher than 80 percent Federal

share would be maintained. First, in States with large areas of Indian

and certain public domain lands, and National Forests, parks and

monuments, the local share for highway projects is determined by a

sliding scale rate, calculated based on the percentage of public lands

within that state. This sliding scale, which permits a greater Federal

share, but not to exceed 95 percent, is applicable to transit projects

funded with flexible funds in these public land states. FHWA develops

the sliding scale matching ratios for the increased Federal share.

Additionally, commuter carpooling and vanpooling projects and

transit safety projects using flexible funds administered by FTA may

retain the same 100 percent Federal share that would be allowed for

ride-sharing or safety projects administered by the FHWA. The 100

percent safety projects are subject to a nationwide ten percent program

limitation.

C. Other Funds Transferred to FTA

Certain demonstration projects authorized under Title 23 are

specified to be used for transit projects and are more appropriately

administered by FTA. In such cases, FHWA has transferred the funds to

FTA for administration. Since these funds are not STP flexible funds,

they are transferred into the appropriate Capital Program category

(Bus, New Starts, or Fixed Guideway Modernization) for obligation and

are administered as Capital projects.

IX. Capital Program (Formerly Section 3)

A. Fixed Guideway Modernization Formula

Fixed Guideway Modernization funds are allocated by formula.

Statutory percentages were established to allocate the first

$497,700,000 to 11 fixed guideway areas. The next $70,000,000 is

allocated one-half to these 11 urbanized areas and one-half to other

urbanized areas with fixed guideways which are at least seven years old

on the basis of the Urbanized Area Formula Program fixed guideway tier

formula factors. The remaining funds are allocated to all of these

urbanized areas as one universe. For fiscal year 1995, $725,000,000 was

appropriated for fixed guideway modernization. After the three-quarter

percent set-aside ($5,437,500), $719,562,500 is available for

apportionment to the specified urbanized areas for Fixed Guideway

Modernization funding.

Table 6 displays these apportionments. Fixed Guideway Modernization

funds apportioned under this section must be used for capital projects

to modernize or improve fixed guideway systems.

All urbanized areas with fixed guideway systems which are at least

seven years old are eligible to receive Fixed Guideway Modernization

funds. A request for the start-up service dates for fixed guideways has

been incorporated into the Section 15 data reporting system to ensure

that all eligible fixed guideway data is included in the calculation of

these apportionments. A threshold level of more than one mile of fixed

guideway is required to receive Fixed Guideway Modernization funds.

Therefore, urbanized areas reporting less than one mile of fixed

guideway mileage under Section 15 are not included.

B. New Starts

The fiscal year 1995 appropriation for New Starts is $646,670,000.

These funds are entirely earmarked for projects specified within the

1995 DOT Appropriations Act. After the three-quarter percent set-aside

($4,850,025), $641,819,975 remains available for allocation to areas.

Table 7 displays the allocations by area and also shows prior year

unobligated earmarks for New Starts.

C. Bus

The fiscal year 1995 appropriation for Bus is $353,330,000 for the

purchase of buses, bus-related equipment and paratransit vehicles, and

for the construction of bus-related facilities. After the three-quarter

percent set-aside ($2,649,975) for project management oversight,

$350,680,025 remains available for projects. The ISTEA earmarked

$12,000,000 in Bus funding for two bus projects in fiscal year 1995.

The Conference Report accompanying the 1995 DOT Appropriations Act

earmarked an additional $316,330,000 to specified states or localities

for bus and bus-related capital projects. FTA administrative commitment

of fiscal year 1995 funds to one full funding grant agreement totals

$1,700,000. Thus, $20,650,025 remains available for discretionary

allocation by the Federal Transit Administrator. Table 8 displays the

allocations of earmarked fiscal year 1995 Bus funds by area and also

shows prior year unobligated earmarks for the Bus Program.

X. Unit Values of Data for the Urbanized Area Formula and Nonurbanized

Area Formula Programs, and Fixed Guideway Modernization Formula

For technical assistance purposes, the dollar unit values of data

derived from the computations of the Urbanized Area Formula and

Nonurbanized Area Formula Programs, and the Fixed Guideway

Modernization Formula apportionments are included in this Notice on

Table 10. To determine how a particular apportionment amount was

developed, areas may multiply their population, population density, and

Section 15 data by these unit values.

XI. Metropolitan Planning and State Planning and Research Programs

(Formerly Sections 8 and 26(a)(2))

A. Metropolitan Planning Urbanized Area Program

The fiscal year 1995 Metropolitan Planning apportionments to States

for MPOs to be used in urbanized areas total $41,512,500. A basic

allocation of 80 percent of this amount ($33,210,000) is distributed to

the States based on urbanized area population for State distribution to

each urbanized area, or parts thereof, within each State. A

supplemental allocation of the remaining 20 percent ($8,302,500) is

also provided to the States based on an FTA administrative formula to

address planning needs in the larger, more complex urbanized areas.

Table 9 contains the final State apportionments for the combined basic

and supplemental allocations. Each State, in cooperation with the MPOs,

must develop an allocation formula for the combined apportionment which

distributes these funds to MPOs representing urbanized areas, or parts

thereof, within the State. This formula, which must be approved by the

FTA, must ensure to the maximum extent practicable that no MPO is

allocated less than the amount it received by administrative formula

under the Metropolitan Planning Program in fiscal year 1991 (minimum

MPO allocation). Each State formula must include a provision for the

minimum MPO allocation. Where the State and MPOs desire to use a new

formula not previously approved by FTA, it must be submitted to FTA for

prior approval.

B. State Planning and Research Program

The fiscal year 1995 apportionments for the State Planning and

Research Program total $8,475,000. Final State apportionments for this

program are also contained on Table 9. This is the fourth year of a

consolidated program which is apportioned to the States for the purpose

of such activities as planning, technical studies and assistance,

demonstrations, management training, and cooperative research. In

addition, a State may authorize a portion of these funds to be used to

supplement planning funds allocated by the State to its urbanized

areas, as the respective State deems appropriate.

C. Data Used for Metropolitan Planning and State Planning and Research

Apportionments

Population data from the 1990 Census is used in calculating these

apportionments. The Metropolitan Planning funding provided to urbanized

areas in each State by administrative formula in fiscal year 1991 was

used as a ``hold harmless'' base in calculating funding to each State.

Please note that while the fiscal year 1995 apportionment amount

remains unchanged from the fiscal year 1994 apportionment, an

adjustment has been made to more accurately reflect the distribution of

population within a particular bi-state urbanized area. This adjustment

may result in a slight change to each State's individual apportionment

from the fiscal year 1994 amount.

XI. Period of Availability of Funds

The funds apportioned under the Urbanized Area Formula Program,

Fixed Guideway Modernization Formula, Metropolitan Planning and State

Planning and Research Programs in this Notice will remain available to

be obligated by FTA to recipients for three (3) fiscal years following

fiscal year 1995. Any of these apportioned funds unobligated at the

close of business on September 30, 1998, will revert to FTA for

reapportionment under these respective programs. Funds apportioned to

nonurbanized areas under the Nonurbanized Area Formula Program,

including RTAP funds, will remain available for two (2) fiscal years

following fiscal year 1995. Any such funds remaining unobligated at the

close of business on September 30, 1997, will revert to FTA for

reapportionment among the States. Funds allocated to States under the

Elderly and Persons with Disabilities Program in this Notice must be

obligated by September 30, 1995. Any such funds remaining unobligated

as of this date will revert to FTA for reapportionment among the

States. Fiscal year 1995 Title 23 Interstate Substitute Transit funds

are available until expended. The 1995 DOT Appropriations Act includes

a provision requiring that fiscal year 1995 New Starts and Bus funds

not obligated for their original purpose as of September 30, 1997,

shall be made available for other discretionary projects. A similar

provision in the 1994 DOT Appropriations Act required that fiscal year

1994 and prior year Bus and New Start funds that are not obligated by

September 30, 1996, shall also be made available for other

discretionary projects.

XIII. Notice of Pre-Award Authority to Incur Project Costs

A. Background

FTA is engaged in an ongoing effort to streamline and simplify the

administration of its programs. To this end, the agency has expanded

the authority extended to grantees to incur costs for operating

assistance projects prior to grant award to cover planning and capital

costs as well. In fiscal year 1994 FTA extended this authority to non-

operating projects funded with current year apportioned formula funds.

This automatic pre-award spending authority permitted a grantee to

incur costs on an eligible transit capital or planning project without

prejudice to possible future Federal participation in the cost of the

project or projects.

B. Expanded Coverage

Because this provision has worked so well to reduce the paperwork

burden on both the grantee and FTA regional offices, effective as of

October 1, 1994, the FTA is further broadening this authority.

Authority to incur costs for Fixed Guideway Modernization Formula,

Metropolitan Planning, Urbanized Area Formula, Elderly and Persons with

Disabilities, Nonurbanized Area Formula, State Planning and Research,

and Title 23 Interstate Substitute Transit projects in advance of

possible future Federal participation is extended to apply to fiscal

year 1995 FTA funds apportioned in this Notice for the programs listed

above, as well as funds to be apportioned in fiscal years 1996 and

1997. Carryover amounts for these programs are also included in this

authority. This pre-award authority is also extended to projects

intended to be funded with STP or CMAQ funds transferred to FTA in

fiscal years 1995 and 1996, provided that the projects are contained in

an approved STIP. The flexible funds would no longer have to be

transferred to FTA before the authority could be used. The two-year

limit for these flexible funds corresponds to the more rigorous

financial constraint contained in the metropolitan planning regulation

for non-attainment and maintenance areas. The authority does not apply

to New Starts or Bus.

C. Conditions

Similar to FTA's Letter of No Prejudice (LONP) authority, the

conditions under which this authority may be utilized are specified

below:

(1) This pre-award authority is not a legal or moral commitment

that the project(s) will be approved for FTA assistance or that the FTA

will obligate Federal funds. Furthermore, it is not a legal or moral

commitment that all items undertaken by the applicant will be eligible

for inclusion in the project(s).

(2) All FTA statutory, procedural, and contractual requirements

must be met.

(3) No action will be taken by the grantee which prejudices the

legal and administrative findings which the Federal Transit

Administrator must make in order to approve a project.

(4) Local funds expended by the grantee pursuant to and after the

date of this authority will be eligible for credit toward local match

or reimbursement if the FTA later makes a grant for the project(s) or

project amendment(s).

(5) The Federal amount of any future FTA assistance to the grantee

for the project will be determined on the basis of the overall scope of

activities and the prevailing statutory provisions with respect to the

Federal-local match ratio at the time the funds are obligated.

(6) For regular FTA formula funds to which this authority applies,

the authority expires with the lapsing of fiscal year 1997 funds. For

flexible funds transferred from FHWA, the authority expires with the

lapsing of fiscal year 1996 funds.

D. Environmental and Other Requirements

FTA emphasizes that all of the Federal grant requirements must be

met for the project to remain eligible for Federal funding. Some of

these requirements must be met before pre-award costs are incurred,

notably the requirements of the National Environmental Policy Act

(NEPA). Compliance with NEPA and other environmental laws or executive

orders (e.g., protection of parklands, wetlands, historic properties)

must be completed before state or local funds are advanced for a

project expected to be subsequently funded with FTA funds. Depending on

which class the project is included under in FTA's environmental

regulations (23 CFR 771) the grantee may not advance the project beyond

planning and preliminary engineering before FTA has approved either a

categorical exclusion (refer to 23 CFR 771.117(d)), a finding of no

significant impact, or a final environmental impact statement. The

conformity requirements of the Clean Air Act (40 CFR 51) also must be

fully met before the project may be advanced with non-Federal funds.

Similarly, Federal procurement procedures, as well as the whole

range of Federal requirements, must be followed for projects in which

Federal funding will be sought in the future. Failure to follow any

such requirements could make the project ineligible for Federal

funding. In short, this increased administrative flexibility requires a

grantee to make certain that no Federal requirements are circumvented

thereby. If a grantee has questions or concerns regarding the

environmental requirements, or any other Federal requirements that must

be met before incurring costs, it should contact the appropriate

regional office.

Before an applicant may incur costs either for activities expected

to be funded by Bus or New Start funds, or for activities requiring

funding beyond fiscal year 1997, it must first obtain a written LONP

from the FTA. To obtain an LONP, a grantee must submit a written

request accompanied by adequate information and justification to the

appropriate FTA regional office. FTA will consider the request in light

of its ``Letter of No Prejudice Policy'' (47 FR 46956, October 21,

1982).

XIV. Electronic Grant Making and Management (EGMM) Initiative--Fiscal

Year 1995 and Beyond

As a result of the National Performance Review and the FTA

strategic planning process, the FTA has two initiatives designed to

improve customer service and efficiency of program delivery: (1) On-

Line Grantee Program--available to all grantee agencies which can

access the FTA Grants Management Information System (GMIS) mainframe

computer system via a toll free phone connection. This program was

initially designed for ``inquiry only'' purposes. However, this program

will be expanded on a case-by-case basis to allow grantees to make

annual certifications and assurances through GMIS and conduct required

quarterly financial status and narrative grant progress reporting. (2)

Electronic Grant Making and Management Pilot Program--participation in

the fiscal year 1995 pilot program is limited to the 21 grantee

agencies (including Greater Hartford Transit District, Massachusetts

Bay Transportation Authority, Central New York Regional Transportation

Authority, New York Metropolitan Transportation Authority, Baltimore

Mass Transit Administration, Lehigh and North Hampton Transit

Authority, City of Montgomery Area Transit System, Hillsborough Area

Regional Transit Authority, Chicago Transit Authority, Central Ohio

Transit Authority, Metropolitan Transportation Authority of Harris

County, New Mexico State Highway and Transportation Department, Bi-

State Development Agency--St. Louis, Missouri Highway and

Transportation Department, Montana Department of Transportation, Denver

Regional Transportation District, City and County of San Francisco--

Public Utilities Commission, Los Angeles County Metropolitan

Transportation Authority, King County Department of Metropolitan

Services, Washington State Department of Transportation, and National

Easter Seal Society). During the pilot program (October 1, 1994 through

September 30, 1995) these grantees will apply for and manage grants at

their computer stations connected to the FTA GMIS computer using a

modem and toll free phone connection. The purpose of this initiative is

to streamline the FTA grant making and management process through a

paperless electronic grant application, review, approval, acceptance

and management process. DOL has agreed to participate in the program

and receive requests for Labor Protection Certification under 49 U.S.C.

5333(b) of projects as well as issue Labor Protection Certifications

electronically for the EGMM Pilot Program participants.

Quarterly evaluation will be conducted of both the On-Line Grantee

Program and the EGMM Pilot Program. Also during fiscal year 1995 FTA

will implement the annual certifications and assurances for all

grantees in which one signature will replace the continued validity

statement and separate certifications and assurances. All EGMM grantee

participants and On-Line Grantee participants on a case-by-case basis

will be able to provide these certifications electronically. In

preparation of the EGMM initiative, FTA has already issued a Master

Agreement that replaces Part I and portions of Part II of the current

FTA grant agreement.

Upon the completion of the EGMM Pilot Program of fiscal year 1995,

FTA intends to expand the EGMM Program to include additional grantee

agencies during fiscal year 1996. FTA also has several activities under

consideration to expand the functional content of EGMM. The kinds of

activities under consideration include a mechanism to facilitate

electronic statewide transportation improvement programs, electronic

unified planning work programs, and an electronic library. The FTA

would like your comments and suggestions on additional areas FTA could

facilitate electronic interface to better serve our customers. Please

write your regional office with your suggestions on the FTA EGMM Pilot

Program and On-Line Grantee Program.

XV. Quartley Approval of Grants

The FTA has established a quarterly approval and release cycle for

processing grants. All Urbanized Area Formula, Nonurbanized Area

Formula, Elderly and Persons with Disabilities, Capital, Metropolitan

Planning, State Planning and Research, and Title 23 Interstate

Substitute Transit grants are processed on a quarterly basis. This

includes Urbanized Area Formula, Nonurbanized Area Formula, or Elderly

and Persons with Disabilities grants using STP or CMAQ funds.

If completed applications are submitted to the appropriate FTA

Regional Office no later than the first business day of the quarter,

FTA will award grants by the last business day of the quarter.

In order to expedite the grant approval process within the

quarterly approval structure, grants which are complete and have

received the required Labor Protection Certification may be approved

before the end of the quarter. Applications for the first quarter

should be submitted to the FTA Regional Office within five business

days of this Notice. The first-quarter grants will be released on or

before December 30, 1994. There are only two factors which would delay

FTA's approval of the project beyond the end of a quarter. First is a

failure by DOL to issue a Labor Protection Certification where such

certification is a prerequisite to a grant approval, and second is the

failure of FHWA to actually transfer flexible funds.

For an application to be considered complete, all required

activities such as inclusion of the project in a locally approved

Transportation Improvement Program (TIP), a Federally approved State

Transportation Improvement Program (STIP), intergovernmental reviews,

environmental reviews, all applicable civil rights, anti-drug, and

clean air requirements, and submission of all requisite certifications

and documentation must be completed. The application must be in

approvable form with all required documentation and submissions on

hand, except for the Labor Protection Certification which is issued by

DOL. Incomplete applications will not be processed, but if the missing

components are supplied, will be considered in the next quarter.

It is the policy of FTA to expedite grant application reviews and

speed program delivery by reducing the number of grant applications. To

this end, FTA strongly encourages grant applicants to submit only one

application per fiscal year for each formula program. The single

application should contain the fiscal year's capital (including

flexible funds), planning and operating elements.

XV. Grant Application Procedures

All applications for FTA funds should be submitted to the

appropriate FTA Regional Office. Formula grant applications should be

prepared in conformance with the following FTA Circulars: Urbanized

Area Formula--C9030.1A, September 18, 1987; Nonurbanized Area Formula--

C9040.1C, November 3, 1992; and Elderly and Persons with Disabilities--

C9070.1C, December 23, 1992. Applications for STP ``flexible'' fund

grants should be prepared in the same manner as the apportioned funds

under the Urbanized Area Formula, Nonurbanized Area Formula, or Elderly

and Persons with Disabilities Programs. Guidance on preparation of

applications for Capital, Metropolitan Planning, State Planning and

Research, and Title 23 funds may be obtained from each FTA Regional

Office. Copies of circulars are also available from Regional Offices.

Issued on: October 5, 1994.

Gordon J. Linton,

Administrator.

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[FR Doc. 94-25160 Filed 10-11-94; 8:45 am]

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