FTA Fiscal Year 1996 Apportionments and Allocations

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

Appropriations Act, 1996 (Pub. L. 104-50), signed into law by President

Clinton on November 15, 1995, provides fiscal year 1996 appropriations

for the Federal Transit Administration transit assistance programs.

Based upon this Act, this Notice contains a comprehensive list of

apportionments/allocations of the various transit programs.

This Notice includes the apportionment of fiscal year 1996 funds

for the Urbanized Area Formula Program, the Nonurbanized Area Formula

Program, the Elderly and Persons with Disabilities Program, the Capital

Program for Fixed Guideway Modernization, the Metropolitan Planning

Program and the State Planning and Research Program, based on the 1996

DOT Appropriations Act and Federal transit laws. This Notice also

contains the allocations of funds for the New Starts and Bus categories

under the Capital Program. Statutory limitations on the use of

operating assistance are also included in this Notice. For the first

time, this Notice also includes the funding level authorized by the

Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA) for

each program.

In addition, the FTA policy regarding pre-award authority to incur

project costs, as well as other pertinent information, 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 codified citations.

FOR FURTHER INFORMATION CONTACT: The appropriate FTA Regional

Administrator for grant specific information and issues; Janet Lynn

Sahaj, Director, Office of Resource Management and State Programs,

(202) 366-2053, for general information about the Urbanized Area

Formula Program (49 U.S.C. 5307), the Nonurbanized Area Formula Program

(49 U.S.C. 5311), the Elderly and Persons with Disabilities Program (49

U.S.C. 5310), or the Capital Program (49 U.S.C. 5309); or Sam

Zimmerman, Director, Office of Planning Operations, (202) 366-2360, for

general information concerning the Metropolitan Planning Program (49

U.S.C. 5303) and State Planning and Research Program (49 U.S.C.

5313(b)).

Supplementary Information:

Table of Contents

I. Codification of Federal Transit Laws

II. Background

III. Overview of Appropriations for Grant Programs

A. General

B. ISTEA Authorized Program Levels

C. Project Management Oversight

IV. Departmental Initiatives

A. Livable Communities Initiative

B. Intelligent Transportation Systems

C. Expanded Capital Eligibility

D. FTA Home Page on Internet

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

A. Total Urbanized Area Formula Apportionments

B. Data Used for Urbanized Area Formula Apportionments, and

Fiscal Year 1995 Apportionment Adjustment

C. Adjustments for Energy and Operating Efficiencies

D. Repayment of Temporary Matching Fund Waivers

E. Urbanized Area Formula Fiscal Year 1996 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

VI. Nonurbanized Area Formula Program (49 U.S.C. 5311) and Rural

Transit Assistance Program (RTAP) (49 U.S.C. 5311(b)(2)

A. Nonurbanized Area Formula Program

B. RTAP Program

VII. Elderly and Persons With Disabilities Program (49 U.S.C. 5310)

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

Transit Purposes (Title 23, U.S.C.)

A. Transfer Process

B. Matching Share for Flexible Funds

C. Other Funds Transferred to FTA

IX. Capital Program (49 U.S.C. 5309)

A. Fixed Guideway Modernization

B. New Starts

C. Bus

a. Fiscal Year 1996 Allocations

b. Fiscal Year 1997 FTA Priorities for Allocation of

Discretionary Bus Funds

D. Capital Program Circular

X. Unit Values of Data for Section 5307 Urbanized Area Formula

Program, Section 5311 Nonurbanized Area Formula Program, and Section

5309(m)(1)(A) Fixed Guideway Modernization Formula

XI. Metropolitan Planning Program (49 U.S.C. 5303) and State

Planning and Research Program (49 U.S.C. 5313(b))

A. Metropolitan Planning Urbanized Area Program

B. State Planning and Research Program

C. Data Used for Metropolitan Planning and State Planning and

Research Apportionments

D. Planning Emphasis Areas (PEAs)

XII. Period of Availability of Funds

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

A. Background

B. Current Coverage

C. Conditions

D. Environmental and Other Requirements

XIV. Electronic Grant Making and Management Initiatives: Fiscal Year

1996 and Beyond

A. Background

B. On-Line Grantee Program

C. Electronic Grant Making and Management (EGMM)

D. Electronic Signature of Certifications and Assurances

E. Future EGMM Expansion

XV. Quarterly Approval of Grants

XVI. Grant Application Procedures

Tables

1. FTA FY 1996 Appropriations and ISTEA Authorizations for Grant

Programs

2. FTA FY 1996 Section 5307 Urbanized Area Formula

Apportionments and ISTEA Authorized Levels

3. FTA FY 1996 Section 5311 Nonurbanized Area Formula

Apportionments, Section 5311(b) Rural Transit Assistance Program

(RTAP) Allocations, and ISTEA Authorized Levels

4. FTA FY 1996 Section 5310 Elderly and Persons With

Disabilities Apportionments and ISTEA Authorized Levels

5. FTA FY 1996 Section 5309(m)(1)(A) Fixed Guideway

Modernization Formula Apportionments and ISTEA Authorized Levels

6. FTA FY 1996 Section 5309(m)(1)(B) New Start Allocations and

ISTEA Authorized Levels

7. FTA FY 1996 Section 5309(m)(1)(C) Bus Allocations and ISTEA

Authorized Levels

8. FTA FY 1996 Section 5303 Metropolitan Planning and Section

5313(b) State Planning and Research Apportionments, and ISTEA

Authorized Levels

9. Unit Values of Data--FTA FY 1996 Section 5307 Urbanized Area

Formula, Section 5311 Nonurbanized Area Formula, and Section

5309(m)(1)(A) Fixed Guideway Modernization Formula Apportionments

I. Codification of Federal Transit Laws

On July 5, 1994, President Clinton signed Public Law 103-272, which

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

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

1992, as amended (the Act), without substantive changes to programs.

The original meaning of the Act's provisions are unchanged by this

codification, even though the new Public Law 103-272 language, in some

instances, differs from that of the Act. The codification now includes

laws enacted through July 5, 1994.

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Additional 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. Listed below are the most commonly used citations:

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Subject 49 U.S.C. section Former Federal Transit Act citation

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

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

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

Transit Employee Protective 5333(b) Section 13(c)

Certification.

National Transit Database*............. 5335 Section 15

Elderly and Persons with Disabilities 5310 Section 16

Program.

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

Rural Transit Assistance Program (RTAP) 5311(b)(2) Section 18(h)

State Planning and Research Program.... 5313(b) Section 26(a)(2)

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

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

Governors for capital and operating assistance in nonurbanized areas.

The Elderly and Persons with Disabilities Program funds are apportioned

by statutory formula to the Governors to provide capital assistance to

organizations providing transportation service for the elderly and

persons with disabilities. 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 for the Metropolitan Planning Program are apportioned by a

statutory formula to the Governors for allocation by them to

Metropolitan Planning Organizations (MPOs) in urbanized areas or

portions thereof. Appropriated funds for the State Planning and

Research Program also are apportioned to States by a statutory formula.

New Start funds identified for specific projects in the 1996 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 1996, the appropriation for the Urbanized Area

Formula Program and the Nonurbanized Area Formula Programs is

$2,001,315,905. Of this amount, 94.50 percent ($1,891,243,530) is made

available to the Urbanized Area Formula Program, and 5.50 percent

($110,072,375) is made available to the Nonurbanized Area Formula

Program. The other program appropriations contained in this Notice are

as follows: $4,500,000 for the Rural Transit Assistance Program (RTAP);

$51,609,095 for the Elderly and Persons with Disabilities Program;

$39,500,000 for the Metropolitan Planning Program; $8,250,000 for the

State Planning and Research Program; and $1,665,000,000 for the Capital

Program. Of the Capital Program amount, $666,000,000 is for Fixed

Guideway Modernization, $666,000,000 is for New Starts, and

$333,000,000 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. ISTEA Authorized Program Levels

For the first time, FTA is publishing the formula apportionment and

allocation tables that compare the maximum program level proposed in

the ISTEA authorization law for fiscal year 1996 and the actual program

funds appropriated by Congress for fiscal year 1996. The first set of

columns shows the actual appropriation as apportioned for this fiscal

year, and the second set of columns shows the authorization level. The

funding level available to an urbanized area or State for obligation is

the appropriated amount as apportioned to the area. The authorized

level does not represent funds that are actually available during the

fiscal year. Rather, it reflects the maximum dollar amount authorized

in ISTEA for which funds can be appropriated by Congress for a

particular fiscal year.

C. Project Management Oversight

49 U.S.C. 5327 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 Program, the Nonurbanized

Area Formula Program, the National Capital Transportation Act, as

amended, 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 the

Urbanized Area Formula Program, the Nonurbanized Area Formula Programs

and the National Capital Transportation Act, as amended, for fiscal

year 1996, and three-quarters of one percent of Capital Program funds

have been reserved for these purposes before apportionment of the

funds.

IV. Departmental Initiatives

A. Livable Communities Initiative

The FTA developed the Livable Communities Initiative to encourage a

stronger link between transit and communities. FTA is promoting the

development of community-sensitive transit facilities and services in

order to increase transit ridership, improve personal mobility and

enhance the quality of life in communities. Active community

involvement in the planning and design process is essential in

developing more community-sensitive transit, and planning methods need

to be more responsive to community concerns.

Community-sensitive transit is customer-friendly, community-

oriented and designed to function effectively within the community.

Customer-friendly transit provides readily available information,

safety and security measures. Real time customer information,

monitoring devices, help zones and improved lighting are illustrative

characteristics. Community-oriented transit makes its transfer points

both origins and destinations of trips through the provision of on-site

services such as child care, public safety, health care and retail

conveniences. Well

[[Page 58142]]

designed transit, from the perspective of more livable communities,

improves pedestrian access, increases the person-carrying capacity of

local transportation networks, and reflects the aesthetic and historic

character of communities. More community-sensitive transit may result

in increased transit ridership, reduced single occupant vehicle trips

and improved air quality. In fiscal year 1995, FTA awarded a number of

capital grants to implement projects which reflected the

characteristics of community-sensitive transit.

The Livable Communities Initiative recognizes the important role

that local land use and transportation policy can play in improving the

effectiveness of transit. These are important tools in promoting

transit facilities and services which help to make communities more

livable. Mixed use development around transportation nodes combined

with parking management, priority access for transit vehicles and

transit pass programs can significantly reduce auto trips and increase

transit ridership. FTA is asking transit agencies to work with local

governments, employers and the business community in implementing

transit supportive land use and transportation strategies through the

metropolitan planning process.

FTA urges grantees to incorporate the concepts of the Livable

Communities Initiative into the planning and capital projects financed

with Federal assistance identified in this Notice and funds transferred

as permitted by the flexible funding provisions of ISTEA. In addition,

FTA urges grantees to consider incorporating quality design and art

into transit projects funded with FTA assistance. FTA Circular

C9400.1A, Design and Art and Transit Projects, June 9, 1995 provides

more detail on this matter.

B. Intelligent Transportation Systems

The Department of Transportation is actively promoting the

development of Intelligent Transportation Systems (ITS) which apply

advanced computer, communication, information and navigation

technologies to surface transportation systems. ITS technologies

improve customer service and make accurate information available to the

traveling public, thus enabling travelers to make more informed

transportation decisions, thereby improving the operational efficiency

of transit services.

Customer services are improved through real-time information on bus

and train arrival, reducing the stress of waiting for vehicles to

arrive; in-vehicle signs and enunciator systems which inform passengers

of upcoming stops and other relevant information; hold notification to

vehicles at change-mode points; emergency response systems which

decrease delays in responding to problems; and easier access through

the use of electronic fare cards which eliminate specialized passes,

cash fares or tokens. For example, the Milwaukee County Transit

Authority reports on-time schedule adherence improved from 90 percent

to 94 percent, thus increasing customer service reliability.

Operational efficiency of transit operations can also be improved

using these technologies. Automatic Vehicle Location technology has

helped the Kansas City Area Transit Authority decrease capital costs by

approximately $1.8 million and operating costs by $400,000 annually.

The planned introduction of Smart Cards in the Metropolitan Atlanta

Rapid Transit Authority rail stations as estimated will save

approximately $2.4 million in annual cash handling costs.

It is important that transit agencies consider the application of

these more advanced technologies as current planning and capital

programs are developed. Authorities planning to purchase equipment such

as radios, in-vehicle signs, etc. should consider the inclusion of

state-of-the-art technologies in their programs.

Applications of these technologies are fully enhanced if the

transit systems are compatible with similar technologies introduced in

traffic management systems being acquired by city traffic departments.

Traveler information systems for all customers are enhanced by

providing both transit and highway information. Such systems include

data which is readily and freely shared between the transit and highway

ITS systems.

By integrating these systems, a ``Core Infrastructure'' of

technology will be created providing maximum benefits to all travelers,

and specifically to those who use transit within metropolitan areas.

Elements of these systems are currently being purchased.

As requests for funding assistance are received by the FTA and

other USDOT modal administrations, they will be reviewed with an intent

toward ensuring that all surface transportation modes using or planning

ITS systems share data to realize the fullest advantages of these

systems. Metropolitan Planning Organizations, state Departments of

Transportation, and transit authorities are encouraged to cooperate in

the planning of ITS systems to ensure that they are able to share data

and are expandable to accept new applications with minimal additional

cost. It is important that decision makers keep their options open in

specifying and procuring ITS systems so future enhancements may be

readily added onto systems without costly conversion or modification.

To achieve the full benefits of ITS in metropolitan areas, it is

important that the component elements be able to ``talk'' with each

other and thereby share data.

In specifying and procuring ITS systems FTA urges grantees to

incorporate the ability to share data between highway and transit

elements and to keep future expansion options open.

For further information, please contact the appropriate FTA

Regional Administrator.

C. Expanded Capital Eligibility

Bus Overhaul: Effective March 31, 1996, bus overhauls will be

eligible for capital assistance. At FTA's request, the 1996 DOT

Appropriations Act amended 49 U.S.C 5302(a)(1)(B) and (C) to remove the

requirement that bus rehabilitation or bus remanufacturing must extend

the economic life of the bus. This change is intended to encourage the

maintenance and improvement of bus rolling stock assets. Such overhaul

work can be contracted out or performed directly by transit personnel,

and will apply to all revenue service buses. FTA intends to issue

guidance regarding the implementation of bus overhauls as a capital

expenditure.

Associated Capital Maintenance Items: FTA has revised the procedure

for determining whether spare parts to be acquired under the Urbanized

Area Formula Program and the Capital Program are eligible for capital

funding. Under 49 U.S.C. 5307(b)(4), certain spare parts are considered

an eligible capital expense if these items cost at least one-half of

one percent of the current fair market value of the rolling stock on

which the items are to be used. Previously, FTA required that the

current fair market value of rolling stock for which the equipment is

to be used was the cost of new rolling stock. Consistent with the

statute, FTA has revised the method of determining the current fair

market value of rolling stock that serves as the basis for the spare

parts eligibility calculation. It is now based on the current average

vehicle value of a recipient's fleet of vehicles. Spare parts to be

purchased for a bus fleet are eligible for capital funding if they cost

at least one-half of one percent of the straight line depreciated value

of the average fleet vehicle or the depreciated value of a comparable

bus of the same age and type.

[[Page 58143]]

D. FTA Home Page on the Internet

FTA in its efforts to provide better customer service and broaden

the availability of FTA information has established an FTA Home Page on

the Internet. This apportionment Notice as well as recently issued FTA

circulars (Section 5309 Capital Program: Grant Application

Instructions--C9300.1, September 29, 1995; Grant Management Guidelines,

C5010.1B, September 7, 1995; and Third Party Contracting Requirements,

C4220.1C, October 1, 1995) will be contained therein.

The FTA Home Page may be reached through the DOT Home Page at the

following address: http://www.dot.gov. Once in the DOT Home Page, click

on the ``Browse the DOT Administrations'' button and then scroll down

to FTA and click. The FTA Home Page may also be accessed by using the

worldwide web (www). The FTA direct www address is: http://www.dot.gov/

dotinfo/fta/index.html.

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

A. Total Urbanized Area Formula Apportionments

In addition to the appropriated fiscal year 1996 Urbanized Area

Formula funds of $1,891,243,530, the apportionment also includes

$1,030,920 in deobligated funds authorized by 49 U.S.C. 5308 which have

become available for reapportionment for the Urbanized Area Formula

Program as provided by 49 U.S.C. 5336(i).

Table 2 displays the amount apportioned for the Urbanized Area

Formula Program. After the one-half percent for oversight is reserved

($9,456,218), the amount appropriated for this program is

$1,881,787,312. The funds to be reapportioned, described in the

previous paragraph, were then added. Thus, the total amount apportioned

for this program is $1,882,818,232.

B. Data Used for Urbanized Area Formula Apportionments, and Fiscal Year

1995 Apportionment Adjustment

Data from the 1994 National Transit Database (49 U.S.C. 5335)

Report Year submitted in late 1994 and early 1995 have been used to

calculate the fiscal year 1996 Urbanized Area Formula apportionments

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

population density figures used in calculating the Urbanized Area

Formula are from the 1990 Census.

An adjustment has been made to the apportionment for one urbanized

area because of a correction to data from the 1993 National Transit

Database that were used to compute the fiscal year 1995 Urbanized Area

Formula apportionments published in the Federal Register of October 12,

1994 (59 FR 51758). The difference between the corrected apportionment

and the previously published apportionment resulted in a decrease, and

the necessary adjustment has been made to the area's apportionment for

fiscal year 1996.

C. Adjustments for Energy and Operating Efficiencies

49 U.S.C. 5336(b)(2)(E) provides that, if a recipient of Urbanized

Area Formula Program funds 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(b)(2)(A)(i) 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 1996 Urbanized Area Formula apportionment

reflect the amount the recipient would have received without the

reductions in mileage.

D. Repayment of Temporary Matching Fund Waivers

In accordance with the Temporary Matching Fund Waiver provision

authorized by 49 U.S.C. 5307(i)(3) grantees were able to request a

Federal share of 100 percent up to the area's total apportionment. Four

grants or amendments were awarded which employed 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

were to be repaid by March 30, 1994. If not repaid, the amount owed

would be deducted from the area's fiscal years 1995 and 1996 Urbanized

Area Formula apportionments.

All affected grantees opted to have their future apportionments

reduced rather than repay funds. 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 amount of the project's original local share that was waived. Of

the calculated amount determined for repayment, 50 percent was deducted

from the fiscal year 1995 Urbanized Area Formula apportionment. The

remaining 50 percent is deducted from fiscal year 1996. The dollar

amounts published in this Notice reflect these fiscal year 1996

adjustments, and the affected areas have been so advised.

E. Urbanized Area Formula Fiscal Year 1996 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 in Section H, funds attributed to an urbanized area

under 200,000 in population, located 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 1996 limitations on the amount of Urbanized Area

Formula funds that may be used for operating assistance are shown on

Table 2 with the fiscal year 1996 apportionment.

The operating assistance limitations for all urbanized areas have

been adjusted by 49 U.S.C. 5336(d)(2) 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 1994,

published by the Department of Labor (DOL), establishes that the

calendar year 1994 CPI increase for all urban consumers is 2.7 percent.

This increase was applied against the base operating assistance

limitation calculated in accordance with 49 U.S.C. 5336(d)(2).

This adjustment results in an overall national fiscal year 1996

authorized operating assistance limitation level of $1,112,922,445.

However, the 1996 DOT Appropriations Act limits the nationwide

availability for operating assistance to a maximum of $400,000,000.

Further, it maintains the level of transit operating assistance to

urbanized areas of less than 200,000 in population at seventy-five

percent of the amount of operating assistance such areas received in

fiscal year 1995. Accordingly, the operating assistance limitation

published in this Notice takes into account both the 1996 DOT

Appropriations Act and Federal transit laws. Therefore, the higher

operating assistance limitation as authorized under Federal transit

laws

[[Page 58144]]

($1,112,922,445) was reduced to the $400,000,000 required by the 1996

DOT Appropriations Act by taking a pro rata reduction across all

categories of grantees. Further, the operating assistance limitation to

urbanized areas less than 200,000 in population was adjusted to

$92,949,803 or seventy-five percent of the amount of their fiscal year

1995 level of $123,933,070. The remaining $307,050,197 of the

$400,000,000 was prorated to urbanized areas above 200,000 in

population, as authorized by the 1996 DOT Appropriations Act.

Consistent with the 1996 Conference Report, the Secretary hereby

directs each area of 1,000,000 or more in population to give priority

consideration to the impact of reductions in operating assistance on

smaller transit authorities operating within the area, and to consider

the needs and resources of such transit authorities when the limitation

is distributed among all transit authorities operating in the area.

G. Statewide Operating Assistance Limitations

49 U.S.C. 5307(f) 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. However, the amount of operating assistance provided for

another State or local transportation agency within the affected

urbanized areas may not be reduced.

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. 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, 1995, 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

combined and designated as one TMA.

Guidance for setting the boundaries of TMAs is contained in the

joint transportation planning regulations codified at 23 CFR part 450

and 49 CFR part 613. In some cases, the TMA boundaries which have been

established by the MPO for the designated TMA also include one or more

urbanized areas with less than 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 with less than 200,000 in population is restricted.

As required by 49 U.S.C. 5307(a)(2), a recipient(s) must be

designated to dispense the Urbanized Area Formula funds attributable to

TMAs. Those urbanized 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 with less

than 200,000 in population that may receive TMA designation

independently, or those with less than 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 Program Management, Federal

Transit Administration, 400 7th Street, SW., Washington, DC 20590, no

later than July 1 of each fiscal year. To date, FTA has been notified

of the following urbanized areas with less than 200,000 in population

that are included within the planning boundaries of designated TMAs:

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Designated TMA Small urbanized area included in TMA boundaries

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

Dallas-Fort Worth, Texas.................... Denton, Texas; Lewisville, Texas.

Houston, Texas.............................. Galveston, Texas; Texas City, Texas.

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).

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I. Urbanized Area Formula Funds Used for Highway Purposes

Urbanized Area Formula funds apportioned to a TMA, except for those

amounts which can be used for the payment of operating expenses, 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 (ADA) 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 its intent to

program FTA funds for highway purposes.

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VI. Nonurbanized Area Formula Program (49 U.S.C. 5311) and Rural

Transit Assistance Program (RTAP) (49 U.S.C. 5311(b)(2))

A. Nonurbanized Area Formula Program

The fiscal year 1996 Nonurbanized Area Formula apportionments total

$111,152,194. The Governor's apportionments are displayed on Table 3. A

total of $110,072,375 is appropriated for the Nonurbanized Area Formula

Program. After deducting the one-half percent for oversight ($550,362),

the fiscal year 1996 apportionment also includes $1,630,181 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.

The population figures used in calculating these apportionments are

from the 1990 Census. The apportionments for the States of Illinois and

Oklahoma have been adjusted to compensate for incorrect population

figures used in the fiscal year 1995 apportionments.

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

1996 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 1996 Nonurbanized Area Formula grant

applications must reflect this level of programming for intercity bus

or include a certification from the Governor.

B. RTAP Program

The fiscal year 1996 RTAP allocations to the States totaling

$4,571,903 are also displayed on Table 3. This amount includes

$4,500,000 in fiscal year 1996 appropriated funds, and $71,903 in prior

year deobligated funds which have become available for reallocation for

this program. 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.

VII. Section 5310 Elderly and Persons With Disabilities Program

A total of $51,703,234 is apportioned to the States for fiscal year

1996 for the Elderly and Persons with Disabilities Program. In addition

to the fiscal year 1996 appropriation of $51,609,095, the fiscal year

1996 apportionment also includes $94,139 in prior year unobligated

funds which have become available for reapportionment for the Elderly

and Persons with Disabilities Program. The apportionment for

Connecticut is adjusted to restore fiscal year 1995 funds which were

not obligated due to an administrative error. 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 by 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 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. 3

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

Transit Purposes (Title 23, U.S.C.)

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 in transit projects, are

transferred from the FHWA to FTA after which FTA approves the project

and awards a grant. Flexible funds designated for transit projects must

result from the local and state planning and programming process, and

must be included 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, the State agency notifies FHWA that the funds are

to be used for transit purposes and requests that the funds 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

for one of the three existing formula programs--Urbanized Area, Elderly

and Persons with Disabilities, or Nonurbanized Area.

The flexible funds are then treated as FTA formula funds, although

they retain a special identifying code. They may be used for any

purpose eligible under these FTA programs except for operating

expenses. 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 the 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.

Secondly, 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 third instance

includes the 100 percent Federal safety projects; however, these are

subject to a nationwide ten percent program limitation.

C. Other Funds Transferred to FTA

Certain demonstration projects authorized in 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

[[Page 58146]]

Starts, or Fixed Guideway Modernization) for obligation and are

administered as Capital projects.

IX. Capital Program (49 U.S.C. 5309)

A. Fixed Guideway Modernization

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 1996, $666,000,000 was

appropriated for fixed guideway modernization. After deducting the

three-quarter percent for oversight ($4,995,000), $661,005,000 is

available for apportionment to the specified urbanized areas for Fixed

Guideway Modernization funding.

Table 5 displays these apportionments. Fixed Guideway Modernization

funds apportioned for this section must be used for capital projects to

modernize or improve fixed guideway systems.

All urbanized areas with fixed guideway systems that 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 National Transit Database 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 one mile or

less of fixed guideway mileage under the National Transit Database are

not included.

B. New Starts

The fiscal year 1996 appropriation for New Starts is $666,000,000.

In addition, Congress reprogrammed $21,361,250 in unobligated New Start

funds originally provided in fiscal year 1993, for a total of

$687,361,250. The entire amount was allocated to projects specified

within the 1996 DOT Appropriations Act. The actual amount of

unobligated fiscal year 1993 New Start funds available for

reprogramming is only $18,361,250, thereby reducing the total amount

available in fiscal year 1996 to $684,361,250. This amount is further

reduced by $4,995,000 (three quarter percent of $666,000,000 for

oversight), leaving $679,366,250 available for allocation to areas. The

reductions were prorated against all projects. Table 6 displays the

allocations by area and also shows prior year unobligated allocations

for New Starts.

C. Bus

a. Fiscal Year 1996 Allocations

The fiscal year 1996 appropriation for Bus is $333,000,000 for the

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

for the construction of bus-related facilities. After deducting the

three-quarter percent for oversight ($2,497,500), $330,502,500 remains

available for projects. The Conference Report accompanying the 1996 DOT

Appropriations Act earmarked all of the fiscal year 1996 Bus funds to

specified states or localities for bus and bus-related projects. In

three instances where funds were earmarked to States, the funds were

further suballocated to local entities within these states. The

Conference Report also includes the multi-year ISTEA earmarks. In

addition, the conferees direct those transit systems in the State of

New York receiving Bus discretionary allocations in areas over 200,000

population for the express purpose of providing fixed-route transit

services, to purchase alternative fueled buses.

Because the three-quarter percent for oversight was subtracted from

the amount appropriated, each bus project identified in the Conference

Report receives three-quarter percent less than the funding level

contained in the report. No funds remain available for discretionary

allocation by the Federal Transit Administrator. Table 7 displays the

allocations of the fiscal year 1996 Bus funds by area and also shows

prior year unobligated earmarks for the Bus Program.

b. Fiscal Year 1997 FTA Priorities for Allocation of Discretionary Bus

Funds

FTA is opposed to the congressional earmarking of the discretionary

bus program because it tends to favor certain areas year after year and

limits the ability of the Administration to focus these resources to

address critical national bus needs, including a backlog of grant

applications to the FTA for discretionary bus funding totalling over

$488 million. The FTA has established two priority areas for the use of

capital bus funds, and as future funds are available for allocation,

the FTA Administrator will follow these priorities: (1) Bus replacement

for transit systems with significantly overaged transit fleets; and (2)

projects that would assist areas in meeting the fixed route bus and

paratransit requirements under the ADA.

Overaged Bus Transit fleets. The Federal useful life standard for

full sized transit buses is 12 years, meaning that the FTA will not

participate in the replacement of a standard transit bus that has not

met its 12 year useful life. The national average age for bus fleets is

8.3 years, which is well above the six year national average required

to maintain the national transit bus fleet at 12 years. Some individual

transit systems are operating bus fleets significantly above the

national average. It is an Administration priority to use discretionary

resources to assist such areas where formula capital resources

available are also being used for bus replacement purposes but are

insufficient to meet all of the bus replacement needs.

ADA Requirements for Bus Systems. It is also an Administration

priority to assist public transit systems to come into full compliance

with the ADA. This means using bus capital funds to purchase accessible

fixed-route buses as well as paratransit vehicles. This emphasis is

particularly important in light of the January 26, 1997, deadline for

full compliance with the ADA paratransit service requirements.

Other Considerations. In the allocation of funding according to the

priorities discussed above, consideration will be given to applications

which are complete and have met all Federal requirements and to areas

that have programmed all of their formula resources. Consideration will

also be given to an equitable distribution of funds among areas of

different sizes, as well as to a geographic distribution of funding.

Fiscal Year 1997 Capital Bus Funding Requests. FTA invites transit

authorities to submit applications for fiscal year 1997 capital bus

funding during fiscal year 1996, with the realization that funds

appropriated by Congress in FY 1997 may again be fully earmarked. The

information acquired by FTA in this application process will be fully

shared with appropriations committees during the fiscal year 1997

appropriations process to assist them in their decision-making.

D. Capital Program Circular

FTA has issued a new circular (Section 5309 Capital Program Grant

Application Instructions, C9300.1, September 29, 1995) to provide

program information and guidance in the preparation of grant

applications for the Capital Program.

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X. Unit Values of Data for the Section 5307 Urbanized Area Formula and

Section 5311 Nonurbanized Area Formula Programs, and Section

5309(m)(1)(A) 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 9. To determine how a particular apportionment amount was

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

data from the National Transit Database by these unit values.

XI. Metropolitan Planning Program (49 U.S.C. 5303) and State Planning

and Research Program (49 U.S.C. 5313(b))

A. Metropolitan Planning Urbanized Area Program

The fiscal year 1996 Metropolitan Planning apportionments to States

for MPOs to be used in urbanized areas total $39,500,000. A basic

allocation of 80 percent of this amount ($31,600,000) is distributed to

the States based on the State's urbanized area population for

subsequent State distribution to each urbanized area, or parts thereof,

within each State. A supplemental allocation of the remaining 20

percent ($7,900,000) is also provided to the States based on an FTA

administrative formula to address planning needs in the larger, more

complex urbanized areas. Table 8 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 the appropriate FTA Regional

Office for prior approval.

B. State Planning and Research Program

The fiscal year 1996 apportionments for the State Planning and

Research Program total $8,250,000. Final State apportionments for this

program are also contained on Table 8. This is the fifth 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 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.

D. Planning Emphasis Areas (PEAs)

The PEAs are aids to the States and MPOs in the development of

planning work programs. They are advisory and are intended to serve

FTA, FHWA, and the rest of the Department as a means of helping to meet

national transportation needs and implementing national transportation

policy. The last PEAs were issued by the FTA and the FHWA on July 11,

1994, for Federal fiscal years 1994 and 1995. These remain in effect

until changed, which is expected some time during the first quarter of

fiscal year 1996.

The PEAs currently under development will address common problems

that have been identified during ongoing reviews of metropolitan (and

State) planning processes and will also highlight program objectives

identified in FTA and FHWA strategic plans. These include, but are not

limited to, financial planning/innovative financing, public

participation/environmental justice, transportation data/modeling,

Intelligent Transportation Systems, multimodalism, and the need for

community sensitive transportation that considers social,

environmental, economic, land-use and other quality of life factors

early in the transportation planning and development process.

XII. 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 1996. Any of these apportioned funds unobligated at the

close of business on September 30, 1999, 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 1996. Any such funds remaining unobligated at the

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

reapportionment among the States under the Nonurbanized Area Formula

Program. Funds allocated to States under the Elderly and Persons with

Disabilities Program in this Notice must be obligated by September 30,

1996. Any such funds remaining unobligated as of this date will revert

to FTA for reapportionment among the States under the Elderly and

Persons with Disabilities Program. The 1996 DOT Appropriations Act

includes a provision requiring that fiscal year 1996 New Starts and Bus

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

1998, shall be made available for other discretionary projects within

the respective categories of the Capital Program. Similar provisions in

the 1994 and 1995 DOT Appropriations Acts required that fiscal year

1994 Bus and New Start funds that are not obligated by September 30,

1996, shall also be made available for other discretionary Bus or New

Start projects, respectively, and fiscal year 1995 Bus and New Start

funds unobligated by September 30, 1997, shall be made available for

other discretionary Bus or New Start projects, respectively.

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. Because this provision worked so well to reduce

the paperwork burden on both the grantee and FTA regional offices in

[[Page 58148]]

fiscal year 1995, FTA further broadened this authority.

B. Current Coverage

In fiscal year 1996, authority to incur costs for Fixed Guideway

Modernization Formula, Metropolitan Planning, Urbanized Area Formula,

Elderly and Persons with Disabilities, Nonurbanized Area Formula, and

State Planning and Research in advance of possible future Federal

participation applies to fiscal year 1996 FTA funds apportioned in this

Notice for the programs listed above, as well as funds to be

apportioned in fiscal year 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 1996 and 1997, provided that the

projects are included in a Federally approved STIP. The flexible funds

do not have to be transferred to FTA before the authority can be used.

This pre-award authority also applies to Bus funds identified in this

Notice. The pre-award authority does not apply to Capital New Start

funds.

C. Conditions

Similar to the FTA 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 funds to which this authority applies, the authority

expires with the lapsing of fiscal year 1997 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 part 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 part 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

part 51) also must be fully met before the project may be advanced with

non-Federal funds.

Similarly, the requirement that a project be included in a

transportation improvement program, 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 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.

XIV. Electronic Grant Making and Management Initiatives: Fiscal Year

1996 and Beyond

A. Background

As a result of the National Performance Review and the FTA

strategic planning process, the FTA is implementing a series of

automation improvements in the grant making and management process

which are designed to improve customer service and efficiency of

program delivery. Known as the Electronic Grant Making and Management

(EGMM) initiative, steps are underway to provide a streamlined

electronic interface between grantees and FTA which will allow complete

electronic application submission, review, approval, and management of

all grants. The ultimate goal is to have in place a fully electronic,

paperless process for awarding and managing Federal transit assistance

programs involving grants and cooperative agreements.

B. On-Line Grantee Program

The On-Line Grantee Program is now available to all grantee

agencies to enable them to access the FTA Grants Management Information

System (GMIS) data base via a toll free telephone connection. This

program was initially designed to permit grantees to inquire about the

status of grants only, but has now been expanded to all registered

grantees for filing their required quarterly financial status and

narrative progress reports and to make annual certifications and

assurances through GMIS. Over 470 of FTA's approximately 700 grantees

are currently ``on line''.

C. Electronic Grant Making and Management (EGMM)

This initiative streamlines the entire FTA grant making and

management process through a paperless electronic grant application,

review, approval, acceptance and management process. The Department of

Labor has agreed to participate in the program and receive requests for

Transit Employee Protective Certification of projects, as well as issue

the Transit Employee Protective Certifications electronically for the

EGMM pilot program participants.

During fiscal year 1995, 22 grantee agencies participated in the

FTA EGMM pilot program. The pilot grantees successfully tested and

utilized the EGMM system to electronically develop, submit, and manage

their grants during the full life cycle of the grant via grantee

computer station connections to the FTA GMIS computer using a modem and

toll free telephone connection. FTA is continuing to implement the EGMM

system during fiscal year 1996 through the inclusion of additional

grantee agencies. Any transit agency interested in participating in any

aspect of the EGMM program should contact the appropriate FTA Regional

Office.

[[Page 58149]]

D. Electronic Signature of Certifications and Assurances

The FTA is required by 49 U.S.C. 5307 as well as other laws and

regulations to obtain specific certifications and assurances for its

programs. In fiscal year 1995, FTA compiled the certifications and

assurances applicable to the FTA programs into one document published

in the Federal Register. Grantees are now able to sign one document

annually certifying to all the certifications and assurances applicable

to FTA grants. During fiscal year 1996, all EGMM grantee participants

and on-line grantee participants will be able to provide this

certification electronically, completely eliminating paper

certification.

E. Future EGMM Expansion

FTA has several activities under consideration to expand the

functional content of EGMM, including the following: an enhanced

distributive PC-based system, a mechanism to facilitate electronic

submission, review, approval and management of statewide transportation

improvement programs; electronic development, review, approval and

management of unified planning work programs; and a more comprehensive

electronic library system.

Through these initiatives, FTA hopes to more effectively and

efficiently serve our customers. We appreciate and look forward to the

continued support of our grantee agencies as we look for additional

ways to improve delivery of the mass transit program.

XV. Quarterly 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, and State Planning and Research grants are processed on a

quarterly basis. This includes 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 Transit Employee Protective Certification will be

approved before the end of the quarter. There are only two factors

which would delay FTA approval of the project beyond the end of a

quarter. First is a failure by DOL to issue a Transit Employee

Protective 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, 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, applications 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.

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, 1995.

XVI. 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; Elderly and Persons with Disabilities--

C9070.1C, December 23, 1992; and Section 5309 Capital Program: Grant

Application Instructions--C9300.1, September 29, 1995. 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 Metropolitan Planning, and

State Planning and Research funds may be obtained from each FTA

Regional Office. Also available are newly revised editions of the Grant

Management Guidelines, C5010.1B, September 7, 1995; and Third Party

Contracting Requirements, C4220.1C, October 1, 1995. Copies of

circulars are available from FTA Regional Offices, and revised

circulars are also available on the FTA Home Page on the Internet.

Issued on November 17, 1995.

Gordon J. Linton,

Administrator.

BILLING CODE 4910-57-P

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[FR Doc. 95-28803 Filed 11-21-95; 11:07 am]

BILLING CODE 4910-57-C