FTA Fiscal Year 1997 Apportionments and Allocations

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

Appropriations Act, 1997 (Pub. L. 104-205 ), signed into law by

President Clinton on September 30, 1996, provides fiscal year 1997

appropriations for the Federal Transit Administration transit

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

comprehensive list of apportionments and allocations of the various

transit programs.

This Notice includes the apportionment of fiscal year 1997 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 1997

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. As in fiscal

year 1996, 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.

For the first time, for information purposes, this Notice also

contains the estimated state apportionment of fiscal year 1997 funds

for the Federal Highway Administration (FHWA) Metropolitan Planning

Program and State Planning and Research Program.

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; Melton Baxter,

Manager, Urbanized Area Formula Program and FTA Apportionments, 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 Robert Stout, Director, Office of Planning

Operations, (202) 366-6385, 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

B. Intelligent Transportation Systems

C. ADA Paratransit Service Implementation

D. Consolidated Planning Grant

E. Transit Oriented Development

F. 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

C. Adjustments for Energy and Operating Efficiencies

D. Designation of New Urbanized Area

E. Urbanized Area Formula Fiscal Year 1997 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. Rural Transit Assistance Program (RTAP)

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

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

Program,, Section 5311 Nonurbanized Area Formula Programs, 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. FHWA Metropolitan Planning Program and State Planning and

Research Program

E. 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

1997 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 1997 appropriations and ISTEA authorizations for grant

programs

2. FTA FY 1997 section 5307 urbanized area formula

apportionments and ISTEA authorized levels

3. FTA FY 1997 section 5311 nonurbanized area formula

apportionments, section 5311(b) rural transit assistance program

(RTAP) allocatons, and ISTEA authorized levels

4. FTA FY 1997 section 5310 elderly and persons with

disabilities apportionments and ISTEA authorized levels

5. FTA FY 1997 section 5309(m)(1)(A) fixed guideway

modernization formula apportionments and ISTEA authorized levels

6. FTA FY 1997 section 5309 new start allocations

7. FTA FY 1997 section 5309(m)(1)(C) bus allocations

8. FTA FY 1997 section 5303 Metropolitan Planning Program and

section 5313(b) state planning and research program

9. FHWA FY 1997 Metropolitan Planning Program and FY 1997 State

Planning and Research Program

10. Federal Transit Administration--Unit values of data--FY 1997

formula grant 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.

[[Page 52501]]

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. Additional provisions enacted after

that date, and revisions to title 49, chapter 53, will be reflected in

subsequent legislation now being considered in Congress. This Notice

accordingly uses the new form of citation. Listed below are the most

commonly used citations:

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

Subject 49 U.S.C. section

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

Capital Program.......................... 5309

Metropolitan Planning Program............ 5303

Urbanized Area Formula Program........... 5307

Transit Employee Protective Certification 5333(b)

National Transit Database................ 5335

Elderly and Persons with Disabilities 5310

Program.

Nonurbanized Area Formula Program........ 5311

Rural Transit Assistance Program (RTAP).. 5311(b)(2)

State Planning and Research Program...... 5313(b)

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

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 1997 DOT

Appropriations Act and Bus fund allocations in the accompanying

Conference Report are also included in this Notice.

III. Overview of Appropriations for Grant Programs

A. General

In fiscal year 1997, the appropriation for the Urbanized Area

Formula Program and the Nonurbanized Area Formula Program is

$2,093,143,761. Of this amount, 94.50 percent ($1,978,020,854) is made

available to the Urbanized Area Formula Program, and 5.50 percent

($115,122,907) 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 Tra Transit Assistance Program

(RTAP); $56,041,239 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 $1,900,000,000 for the

Capital Program. Of the Capital Program amount, $760,000,000 is for

Fixed Guideway Modernization, $760,000,000 is for New Starts, and

$380,000,000 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

As in fiscal year 1996, FTA is publishing the formula apportionment

and allocation tables that compare the maximum program level proposed

in the ISTEA authorization law for fiscal year 1997 and the actual

program funds appropriated by Congress for fiscal year 1997. 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 Program

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

year 1997, 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

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 incorporates on-site

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

conveniences. Well-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

1996, 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

[[Page 52502]]

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. ITS technologies improve

transit operating efficiency and make transit customer-friendly and

easier to use.

ITS represents a significant step in the advancement of transit

technology, and demonstration projects of the past few years have

proven that significant benefits are possible. These initial successes

have set the stage for the broader ITS deployments being developed

today. As transit ITS expands from research and demonstration to full-

scale implementation, transit operators around the country are

recognizing that ITS offers as much--if not more--to the transit

industry as it does to other transportation modes.

ITS improves transit operational efficiency in a variety of ways.

In Kansas City, 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 introduction of Smart Cards in the Metropolitan Atlanta Rapid

Transit Authority rail stations is estimated to save $2.4 million in

annual cash handling costs. Several transit operators are also

exploring the use of ITS vehicle location technology to assist with

Americans with Disabilities Act (ADA) compliance by coordinating timed

transfers between fixed-route and paratransit services.

ITS improves customer service in a variety of ways. For example, at

bus stops: letting customers know if the bus just left or is about to

arrive; on board vehicles: using in-vehicle signs and enunciator

systems informing passengers of upcoming stops; at transfer points:

sending hold notification to vehicles so passengers do not miss their

transfers; during emergencies: using an emergency response system to

direct immediate help to vehicles in distress; and at the farebox:

enabling patrons to use a common fare card for all transit services in

a region.

It is important that transit agencies consider the application of

these ITS technologies as current planning and capital programs are

developed. Authorities planning to purchase equipment such as radios,

in-vehicle signs, fare boxes, passenger counters or any other

electronic hardware, should consider the gains from integrating state-

of-the-art technologies.

Applications of ITS technologies are enhanced if they are

integrated among multiple transit agencies and with ITS traffic

management systems. 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, an ``Intelligent Transportation

Infrastructure'' of technology will be created providing maximum

benefits to all travelers, including those who use transit within

metropolitan areas.

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, design, acquisition, deployment and operation of ITS

systems and to recognize the great potential of transit ITS

applications. These organizations are also encouraged to ensure that

transit ITS is fully integrated among transit agencies and with other

ITS applications such as traffic management and traffic information

systems. It is important that decision makers keep their options open

in specifying and procuring ITS systems so future enhancements and

modal integrations may be readily added onto systems without costly

modifications.

It is critical that consideration of ITS technologies occur within

the context of the planning process, which includes long range

planning, regional planning studies, corridor and subarea studies

(major investment studies), preliminary engineering, operations

planning and management systems. These considerations should be

reflected in the transportation plan, the Transportation Improvement

Program, and Unified Planning Work Program. Central to this process is

the identification of problems and their underlying causes so that

appropriate solutions can be found. ITS strategies should be considered

along with traditional alternatives which address transportation

problems. In this way the costs and benefits of ITS and other

strategies can be assessed so that the optimum mix of solutions can be

determined.

For further information, please contact the appropriate FTA

Regional Administrator.

C. ADA Paratransit Service Implementation

Reduction of Paperwork for ADA Paratransit Plan Updates. To reduce

paperwork and the administrative burden of regulation, on May 21, 1996

(see 61 Federal Register 25409), the DOT amended its regulation, 49 CFR

Part 37, implementing the transportation provisions of the Americans

with Disabilities Act of 1990 (ADA). The DOT eliminated the annual ADA

paratransit plan update submission requirement, 49 CFR Section

37.135(c), for those systems that have fully implemented ADA

paratransit service. In 1996, almost all of the 530 systems report full

implementation. ADA paratransit service is to be fully implemented by

January 26, 1997. Full implementation means that all of the six ADA

paratransit service requirements listed in Section 37.131 (service

area, response time, fares, trip purpose, hours/days of service, and

capacity constraints) have been met. If the transit authority has fully

implemented these requirements, an annual update or progress report is

no longer required. Further, the public hearing on the annual plan

update is no longer required. All that is required of an FTA grantee is

to complete the fiscal year 1997 Annual List of Certifications and

Assurances, Category I, part G, which is an Assurance of

Nondiscrimination on the Basis of Disability. However, if the ADA

[[Page 52503]]

paratransit service requirements will not be met by January 26, 1997,

an applicant for funding must notify the appropriate FTA regional

office in writing, submit a 1997 plan update to FTA by January 26,

1997, and submit a temporary time extension request to FTA to continue

to remain eligible for federal funding. As of October 1, 1996, the FTA

has not received any requests for a temporary time extension based on

undue financial burden during the last three years.

D. Consolidated Planning Grant (CPG)

Beginning in fiscal year 1997, FTA and FHWA will offer the states

the opportunity to participate in a pilot Consolidated Planning Grant

(CPG) program. This concept is consistent with the American Association

of State Highway and Transportation Officials policy endorsing

consolidation of FHWA and FTA planning funds and with comments received

from our customers during ISTEA outreach meetings.

A consolidated grant will accomplish three important goals. First,

it will result in one set of grant application and reporting procedures

and one billing process, thereby streamlining the program. Second, the

non-mode-specific nature of a consolidated grant will enhance the

multimodal approach to transportation planning envisioned in ISTEA and

the joint planning regulations. Finally, as the two agencies move

toward greater streamlining, the cooperative effort required for

unified delivery will reduce duplication of effort and increase FHWA

and FTA staff time available for customer service.

In response to suggestions to streamline and consolidate the

highway and transit planning programs, FTA and FHWA will initiate a

pilot program to demonstrate this consolidated grant concept and invite

the states' participation in the pilot. The CPG is intended to

incorporate some of the most ``customer-friendly'' aspects of the FTA

and FHWA separate processes. Under this pilot, the State's FHWA

Metropolitan Planning funds and, at a State's request, the planning

portion of FHWA's State Planning and Research funds and other Title 23,

USC funds that may be used for metropolitan and statewide planning

(i.e. Minimum Allocation, Funding Restoration, National Highway System

(NHS), and/or STP), would be made available to FTA, similar to the

process used for flexible STP funds. For information purposes,

estimates of the FHWA Metropolitan Planning funds and the FHWA State

Planning and Research funds, 75% of which is available for planning,

are included in Table 9. The FHWA funds would be combined with FTA's

counterpart planning funds and awarded electronically as a consolidated

grant through FTA's Electronic Grant Making and Management (EGMM)

System. States would submit a single claim for reimbursement to FTA.

FHWA/FTA oversight and administrative responsibilities will be mutually

agreed to by the affected field offices. Currently, all states are

connected to the FTA Grants Management Information System which

supports EGMM. EGMM software, training and support are available at no

cost for any state wishing to utilize EGMM to apply for and receive

consolidated planning grant funds.

Both the FTA and the FHWA view this pilot as a critical element in

our efforts to ``redefine government'' and provide better customer

service. We will receive expressions of interest through either the FTA

Regional Office or FHWA Division Office.

E. Transit-Oriented Development

FTA is encouraging local governments and transit agencies to

implement transit-oriented development around transit sites. This type

of development includes mixed uses, carefully managed parking and good

pedestrian access, and is within easy walking distance of the transit

facilities.

Transit-Oriented Development on property owned by transit agencies

promotes transit use and provides a source of income for transit

operations. For example, some transit agencies lease air rights or

ground space at transit stations for retail centers, day care

facilities or news stands. To facilitate greater opportunities for

joint development at transit sites, DOT has approved individual

exceptions to the Federal government's Common Grant Rule for transit

agencies in Washington, D.C.; Portland, Oregon; and Atlanta, Georgia.

These three pilots may now involve the sell of unneeded property for

transit-oriented development on that property, and use the income for

transit-related capital and operational purposes.

F. 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 FTA program

circulars (Section 5309 Capital Program: Grant Application

Instructions--C9300.1, September 29, 1995; Section 18 Program

Guidance--9040.1C (now Section 5311 Nonurbanized Area Formula Program),

November 3, 1992; Section 16 Capital Assistance Program Guidance,

9070.1C, (now Section 5310 Elderly and Persons with Disabilities

Program), December 23, 1992; Grant Management Guidelines, C5010.1B,

September 7, 1995; and Third Party Contracting Requirements, C4220.1D,

April 15, 1996) are contained therein.

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

following address: http://www.fta.dot.gov.

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

A. Total Urbanized Area Formula Apportionments

In addition to the appropriated fiscal year 1997 Urbanized Area

Formula funds of $1,978,020,854, the apportionment also includes

$8,031,253 in deobligated funds 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 project management

oversight is reserved ($9,890,104), the amount appropriated for this

program is $1,968,130,750. The funds to be reapportioned, described in

the previous paragraph, have then been added. Thus, the total amount

apportioned for this program is $1,976,162,003.

B. Data Used for Urbanized Area Formula Apportionments

Data from the 1995 National Transit Database (49 U.S.C. 5335)

Report Year submitted in late 1995 and early 1996 have been used to

calculate the fiscal year 1997 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.

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

[[Page 52504]]

accordance with this provision. Accordingly, the revenue vehicle miles

used in the Urbanized Area Formula database to calculate the fiscal

year 1997 Urbanized Area Formula apportionment reflect the amount the

recipient would have received without the reductions in mileage.

D. Designation of New Urbanized Area

In fiscal year 1996, Flagstaff, Arizona, was designated an

urbanized area by a special census review. This newly urbanized area is

included for the first time in the Arizona Governor's apportionment for

urbanized areas under 200,000 in population and is no longer eligible

for inclusion in Section 5311 grants obligated in fiscal year 1997 and

beyond.

E. Urbanized Area Formula Fiscal Year 1997 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 1997 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 1997 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 1995,

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

calendar year 1995 CPI increase for all urban consumers is 2.5 percent.

This increase was applied against the base operating assistance

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

addition, Flagstaff, Arizona, the new urbanized area designated by

special census, has been given an operating assistance limitation of

two-thirds of its apportionment, consistent with the provision of 49

U.S.C. 5336(d)(1).

These adjustments result in an overall national fiscal year 1997

authorized operating assistance limitation level of $1,140,989,706.

However, the 1997 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 1997 DOT

Appropriations Act and Federal transit laws. Therefore, the higher

operating assistance limitation as authorized under Federal transit

laws ($1,140,990,224) was reduced to the $400,000,000 required by the

1997 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 operating assistance limitation of

$85,791 for Flagstaff, Arizona (a newly designated urbanized area) was

then added, thereby increasing the fiscal year 1997 level for these

areas to $93,035,594. The remaining $306,964,406 of the $400,000,000

was prorated to urbanized areas above 200,000 in population, as

authorized by the 1997 DOT Appropriations Act.

Consistent with the 1997 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, 1996, 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

[[Page 52505]]

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:

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

Small urbanized area included in TMA

Designated TMA boundaries

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

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).

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

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.

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 1997 Nonurbanized Area Formula apportionments to

the states totaling $116,158,383 are displayed in Table 3. Of the

$115,122,907 appropriated, one-half percent ($575,615) was reserved for

project management oversight. In addition to the current appropriation,

the funds available for apportionment included $1,611,091 consisting of

deobligated funds from fiscal years prior to 1994.

The population figures used in calculating these apportionments are

from the 1990 Census. The database for the State of Arizona has been

adjusted to account for Flagstaff, Arizona, a newly designated

urbanized area that is no longer eligible for Nonurbanized Area Formula

grants.

The Nonurbanized Formula Program provides 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 1997

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 1997 Nonurbanized Area Formula grant

applications must reflect this level of programming for intercity bus

or include a certification from the Governor.

B. Rural Transit Assistance Program (RTAP)

The fiscal year 1997 RTAP allocations to the States totaling

$4,566,568 are also displayed on Table 3. This amount includes

$4,500,000 in fiscal year 1997 appropriated funds, and $66,568 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. Elderly and Persons With Disabilities Program (49 U.S.C. 5310)

A total of $56,059,007 is apportioned to the States for fiscal year

1997 for the Elderly and Persons with Disabilities Program. In addition

to the fiscal year 1997 appropriation of $56,041,239 the fiscal year

1997 apportionment also includes $17,768 in prior year unobligated

funds which have become available for reapportionment for 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 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.

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

[[Page 52506]]

(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

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 1997, $760,000,000 was

appropriated for fixed guideway modernization. After deducting the

three-quarter percent for oversight ($5,700,000), $754,300,000 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 1997 appropriation for New Starts is 760,000,000.

In addition, Congress reprogrammed $56,956,000 in unobligated New

Starts funds originally appropriated in fiscal years 1992 and 1995,

yielding an overall total of $816,956,000. This entire amount was

allocated to projects specified in the 1997 DOT Appropriations Act.

After applying the three-quarter percent reduction to the appropriated

amount ($760,000,000) for project management oversight, $811,256,000

remains available for allocation. The amount of the project management

oversight reduction ($5,700,000) is subtracted on a prorata basis from

all 54 projects specified in the 1997 legislation. The final allocation

for these projects is contained in Table 6 of this Federal Register

Notice. Also provided in the table are prior year unobligated

allocations for New Starts.

C. Bus

The fiscal year 1997 appropriation for Bus is $380,000,000 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 ($2,850,000), $377,150,000 remains

available for projects. The Conference Report accompanying the 1997 DOT

Appropriations Act earmarked all of the fiscal year 1997 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.

Because the three-quarter percent for project management 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 1997

Bus funds by area and also shows prior year unobligated earmarks for

the Bus Program.

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

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

[[Page 52507]]

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 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 1997 Metropolitan Planning apportionments to States

for MPOs to be used in urbanized areas total $40,172,643. This amount

includes $39,500,000 in fiscal year 1997 apportioned funds, and

$672,643 in prior year deobligated funds which have become available

for reallocation for this program. A basic allocation of 80 percent of

this amount $32,138,114 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 $8,034,529 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 1997 apportionments for the State Planning and

Research Program total $8,279,228. This amount includes $8,250,000 in

fiscal year 1997 apportioned funds, and $29,228 in prior year

deobligated funds which have become available for reallocation to this

program. Final State apportionments for this program are also contained

on Table 8. This is the sixth 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. FHWA Metropolitan Planning Program and State Planning and Research

Program

For information purposes, the estimated State apportionments for

the FHWA Metropolitan Planning Program and State Planning and Research

Program are contained in Table 9.

E. 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. These remain in effect until changed, which is expected some time

during early fiscal year 1997.

The PEAs currently under development will highlight program

objectives identified jointly by FTA and FHWA including, but not

limited to: ITS, multimodalism, innovative services, innovative

financing, partnering, and the need for community sensitive

transportation planning that considers social, environmental, economic,

land-use and other quality of life factors early in the 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 1997. Any of these apportioned funds unobligated at the

close of business on September 30, 2000, 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 1997. Any such funds remaining unobligated at the

close of business on September 30, 1999, 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,

1997. 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 Cost

A. Background

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

administration of its programs. To this end, the agency 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. Current Coverage

In fiscal year 1997, authority to incur costs for Fixed Guideway

Modernization Formula, Metropolitan

[[Page 52508]]

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 1997 FTA funds apportioned in this Notice for the programs

listed above. 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 year 1997, provided that the projects are included in a

Federally approved STIP. Pre-award authority applies to flexible funds

prior to transfer to FTA if the conditions below are met. This pre-

award authority also applies to Capital 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 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 1997 and Beyond

A. Background

As a result of the National Performance Review and the FTA

strategic planning process, the FTA will continue to implement a series

of automation improvements in the planning, development, 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 graphic user 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, user-friendly, 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 enables grantee agencies to access the

FTA Grants Management Information System (GMIS) data base via a toll

free telephone connection. With this access grantee agencies can

inquire about grant and fund status, file required financial and

narrative grant status reports and make annual certifications and

assurances through GMIS. Over 480 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. During Fiscal Year

1996, 34 grantee agencies participated in the FTA EGMM program. These

grantees utilized EGMM 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

a toll free telephone connection. Any agency interested in

participating in the EGMM program should contact the appropriate FTA

Regional Office.

D. Electronic Signature of Certifications and Assurances

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

regulations to obtain specific certifications and assurances for its

programs. Annually, since fiscal year 1995, FTA compiled the

certifications and assurances applicable to the FTA programs into one

document published in the Federal Register. Grantees are able to sign

one document annually certifying to all the certifications and

assurances applicable to FTA grants. During fiscal year 1997, we

encourage all EGMM grantee participants and on-line grantee

participants to provide this certification electronically, completely

eliminating paper certification.

E. Future EGMM Activities

There are two initiatives in the development stages that FTA hopes

will

[[Page 52509]]

result in more efficient and effective customer service.

(1) The FTA is working with the FHWA to develop single agency

delivery of metropolitan and state planning funds utilizing the FTA

EGMM grant delivery system. FTA and FHWA will pilot test the concept of

a consolidated planning grant during fiscal year 1997.

(2) FTA has contracted for the development of graphic user

interface software in order to make interface with the EGMM system more

user friendly.

We appreciate and look forward to the continued support of our

grantees agencies as we seek additional ways to improve delivery of the

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 from

the Department of Labor (DOL) 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, 1996.

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 revised editions of the Grant

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

Contracting Requirements, C4220.1D, April 15, 1996. Copies of circulars

are available from FTA Regional Offices. Circulars are also available

on the FTA Home Page on the Internet.

Issued on: September 30, 1996.

Gordon J. Linton,

Administrator.

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[FR Doc. 96-25248 Filed 10-4-96; 8:45 am]

BILLING CODE 4910-57-C